Document:

Execution
Copy

     

    U.S.
Concrete, Inc.

    2925
Briarpark, Suite 1050

    Houston,
Texas  77042

    

    August
16, 2010

    

    
      	
              To:

            	
              The
      holders of U.S. Concrete, Inc.’s (the “Company”)
      8.375% Senior Subordinated Notes due 2014 (the “Existing
      Notes”) identified on the signature pages
  hereto:

            

    

     

    This
letter agreement (this “Agreement”)
sets forth the terms and conditions on which Monarch Capital Master Partners LP,
Monarch Cayman Fund Ltd., Monarch Debt Recovery Master Fund Ltd., Monarch
Opportunities Master Fund Ltd. and Oakford MF Limited (the “Monarch
Funds”), York Credit Opportunities Master Fund, L.P. and York Credit
Opportunities Fund, L.P. (the “York
Funds”) and Whitebox Convertible Arbitrage Partners, LP, Whitebox
Combined Partners, LP and Whitebox Hedged High Yield Partners, LP (the “Whitebox
Funds”) has agreed with the Company to participate in the transactions
described herein, which will include an offering (the “Subscription
Offer”) to all Eligible Holders (as defined below) of the right to
subscribe to purchase for cash a new series of convertible debt securities to be
issued by the Company known as the 9.5% Convertible Secured Notes due 2015 of
the Company (the “Convertible
Notes”), the proceeds of which will be used by the Company to repay
indebtedness under that certain Revolving Credit, Term Loan and Guarantee
Agreement among the Company, certain affiliates thereof (the “Guarantors”),
JPMorgan Chase Bank, N.A. and the lenders parties thereto (the “DIP Credit
Facility”), for working capital and for general corporate
purposes.  Each of the Monarch Funds, the York Funds and the Whitebox
Funds are referred to herein as a “Put Option
Party” and together as the “Put Option
Parties.”  Capitalized terms used, but not defined, herein have
the meaning given to such terms in the Supplement to the Disclosure Statement of
the Company (the form of which is attached hereto as Exhibit A, the “Supplement”).

     

    In
exchange for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the Company and each Put Option Party intending to
be legally bound, hereby agrees as follows:

     

    
      	
              1.

            	
              Subscription Offer and
      Put Option.

            

    

     

    Section
1.01            Subscription
Offer.

     

    (a)           As
described in the Supplement, the Company intends to commence the Subscription
Offer by offering to each holder of an Existing Note that is (i) an
institutional investor that is an “accredited investor” (as that term is defined
in Rule 501(a)(1), (2), (3) or (7) of Regulation D promulgated under the
Securities Act of 1933, as amended (the “Securities
Act”)), or (ii) a “qualified institutional buyer,” or QIB, as that term
is defined in Rule l44A under the Securities Act (each, an “Eligible
Holder” and, collectively, the “Eligible
Holders”), including the Put Option Parties, the opportunity to purchase
an aggregate principal amount of Convertible Notes (at par) up to the amount
equal to the product (rounded down to the nearest ($1,000)) of (x) a fraction,
the numerator of which is the aggregate principal amount of Existing Notes held
by such Eligible Holder as of the close of business on July 30, 2010 (the “Record
Date”) for the Subscription Offer, and the denominator of which is the
aggregate principal amount of all Existing Notes outstanding (other than those
held by the Company) and (y) $55.0 million, representing the aggregate
principal amount of Convertible Notes offered in the Subscription Offer (such
product, the “Pro Rata
Amount”).  The portion of an Eligible Holder’s Pro Rata Amount
which it subscribes to purchase is its “Subscription
Amount” and the purchase price to be paid in respect of such Subscription
Amount is the “Subscription
Payment.”  An Eligible Holder may not subscribe to purchase
more than its Subscription Amount in the Subscription Offer.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)           The
purchase and sale of the Convertible Notes will be made in accordance with, and
subject to the terms and conditions set forth in, the Note Purchase Agreement
(in the form attached hereto as Exhibit B, the “Purchase
Agreement”). The Company expressly reserves the right to waive any term
or condition of the Purchase Agreement to the extent permitted under Section 2.01 and as
permitted under the Purchase Agreement.  Each Eligible Holder electing
to purchase Convertible Notes in accordance with and subject to the terms and
conditions set forth in the Purchase Agreement is referred to herein as an
“Electing
Holder” and together, the “Electing
Holders” and the aggregate amount of Convertible Notes which the Electing
Holders validly elect to purchase (including the amounts to be purchased by the
Put Option Parties pursuant to Section 1.02 but excluding the amounts to
be purchased by the Put Option Parties pursuant to Section 1.03) as of
the Subscription Offer Expiration Time (as defined in the Supplement), is
referred to herein as the “Aggregate
Participation Amount;” provided
that  the Aggregate Participation Amount shall not include any
Subscription Amount for which an Eligible Holder (or its broker or nominee) has
not delivered its Subscription Payment on or prior to the close of business on
the business day immediately following the Subscription Acceptance Notice in
accordance with the terms of its Subscription Certificate and the terms of the
Subscription Offer described in the Supplement.  The Company expressly
reserves the right to reject any Eligible Holder’s election to purchase
Convertible Notes, as set forth on its subscription certificate (in the form
attached to the Purchase Agreement as Exhibit A thereto, the “Subscription
Certificate”).

     

    Section
1.02           Put Option Party
Participation.  Subject to the satisfaction or waiver of the
terms and conditions set forth herein, in the Supplement and in the Purchase
Agreement, each Put Option Party hereby agrees to, as an Eligible Holder,
purchase from the Company in connection with the Subscription Offer an aggregate
principal amount of Convertible Notes equal to such Put Option Party’s Pro Rata
Amount at a purchase price in cash equal to 100% of the aggregate principal
amount of such Convertible Notes.

    
      
         

      

      
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    Section
1.03            Put
Option.

     

    (a)           Subject
to the satisfaction or waiver of the terms and conditions set forth herein and
in the Purchase Agreement, each Put Option Party hereby grants to the Company a
put option (collectively, the “Put
Option”), pursuant to which such Put Option Party agrees to purchase from
the Company, upon the Company’s exercise of the Put Option, an aggregate
principal amount of Convertible Notes (in addition to the Convertible Notes
purchased by such Put Option Party in accordance with Section 1.02 above)
(the “Put
Participation Amount” and collectively, the “Put
Participation”) equal to such Put Option Party’s Put Percentage (as
defined below) multiplied
by the difference of (i) $55.0 million and (ii) the Aggregate
Participation Amount (such difference, the “Subscription
Deficiency”), at a purchase price payable in cash equal to 100% of the
aggregate principal amount of such Convertible Notes (the “Put
Payment”); provided that in the
event the Put Participation Amount plus the Subscription Amount for the York
Funds equals an amount that is less than $10.0 million, the Put
Participation Amount plus the Subscription Amount for the Monarch Funds and the
Whitebox Funds shall be reduced equally between them and allocated to the York
Funds (as part of its Put Participation Amount) until such time as the York
Funds’ aggregate Put Participation Amount is at least
$10.0 million.  Each Put Option Party hereby acknowledges and
agrees that it shall become a party to the Purchase Agreement (and bound by the
terms and conditions thereof) as of the Subscription Acceptance Date (as defined
below).

     

    (b)           The
aggregate “Put
Percentage” for the Monarch Funds shall be 33.3%, the aggregate “Put
Percentage” for the York Funds shall be 33.3% and the aggregate “Put
Percentage” for the Whitebox Funds shall be 33.3% (subject to adjustment
as described below), allocated among the relevant funds as set forth on the
signature pages hereto. In the event any Electing Holder or any Put Option Party
fails to purchase any portion of its allocated portion of Convertible Notes in
accordance with the terms of this Agreement and the Purchase Agreement (whether
in accordance with Section 1.01, 1.02 or 1.03(a)) (each a
“Defaulting
Party”), the Subscription Deficiency shall be increased to reflect the
failure of each Defaulting Party to purchase such Convertible Notes and each Put
Option Party which is not a Defaulting Party (each a “Non-Defaulting
Put Option Party”) will be obligated to purchase its pro rata share of
any such increase (the “Remaining
Convertible Notes”), calculated by multiplying a percentage (the
numerator of which is such Non-Defaulting Put Option Party’s Put Percentage and
the denominator of which is the sum of the Put Percentages for all
Non-Defaulting Put Option Parties) by the number of Remaining Convertible Notes;
provided, that
the Put Option Party’s Put Percentage shall be adjusted accordingly; provided further, that in no
event shall any Put Option Party be obligated to purchase Convertible Notes
(including any Remaining Convertible Notes) in excess of such Put Option Party’s
Maximum Backstop Amount.  The “Maximum Backstop
Amount” for the Monarch Funds collectively (on a several and not joint
basis) shall be $18.33 million and for the Monarch Funds severally shall be
according to the percentages set forth on the signature pages
hereto.  The “Maximum Backstop
Amount” for the York Funds collectively (on a several and not joint
basis) shall be $18.33 million and for the York Funds severally shall be
according to the percentages set forth on the signature pages
hereto.  The “Maximum Backstop
Amount” for the Whitebox Funds collectively (on a several and not joint
basis) shall be $18.33 million and for the Whitebox Funds severally shall be
according to the percentages set forth on the signature pages
hereto.

     

    (c)           As
consideration for the Put Option, the Company shall pay to the Put Option
Parties an aggregate amount of $1,100,000.00 (the “Put Fee”)
payable at the Closing (as defined below).  The Put Fee shall be
allocated (the “Put Fee
Allocation”) to each Put Option Party based on such Put Option Party’s
Put Percentage.

    
      
         

      

      
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    Section
1.04            Purchase
Agreement.

     

    (a)           (i)
By executing and returning the Subscription Certificate to the Wells Fargo Bank,
National Association, as subscription agent (the “Subscription Agent”)
prior to the Subscription Offer Expiration Time in accordance with the terms of
the Subscription Certificate, each Electing Holder (including the Put Option
Parties) will become a party to and bound by the terms and conditions of the
Purchase Agreement as of the date on which the Company delivers the Subscription
Acceptance Notice (as defined in the Supplement), setting forth the Company’s
acceptance of such Electing Holder’s election to purchase Convertible Notes, to
the Subscription Agent and the Put Option Parties (such date, the “Subscription
Acceptance Date”); provided, that each such Electing Holder (other than
the Put Option Parties) must deliver its Subscription Payment to Wells Fargo
Bank, National Association, as escrow agent, no later than the close of business
on the business day immediately following the Subscription Acceptance Date (the
“Subscription Acceptance
Deadline”).  If any Electing Holder (other than the Put Option
Parties) fails to make such payment by the Subscription Acceptance Deadline,
such Electing Holder’s subscription shall be null and void and the Subscription
Deficiency shall be increased by the amount of Convertible Notes which such
Electing Holder had elected to purchase (as set forth on such Electing Holder’s
Subscription Certificate).  Each Electing Holder shall become
obligated, as of the Subscription Acceptance Date, to purchase the Subscription
Amount of Convertible Notes provided for in such Electing Holder’s Subscription
Certificate, in accordance with the terms of the Purchase Agreement and the
Subscription Acceptance Notice.

     

    (b)           In
the event the Company elects not to accept any Electing Holder’s election to
purchase Convertible Notes (in accordance with the Subscription Acceptance
Notice) or fails to deliver the Subscription Acceptance Notice by the
Subscription Acceptance Deadline (as defined in the Supplement), such Electing
Holder shall not become a party to or bound by the terms and conditions of the
Purchase Agreement.

     

    (c)           On
the business day following the Subscription Acceptance Date, to the extent there
is a Subscription Deficiency the Company may exercise the Put Option by
delivering to each Put Option Party a notice (the “Put
Election”) setting forth (i) the Subscription Deficiency, (ii) the Put
Participation Amounts for all Put Option Parties, if any, and (iii) instructions
for such Put Option Party to deliver its Subscription Payment and Put
Participation Payment, if any, to the Subscription Agent as soon as practicable
(but, in any event, no later than the close of business on the business day
prior to the Closing Date (as defined below)) in accordance with the
instructions provided in the Put Election.  Upon delivery of the Put
Election, each Put Option Party shall become obligated, in the event of any
Subscription Deficiency, to purchase Convertible Notes in an amount equal to its
Put Participation Amount calculated in accordance with Section
1.03.  For the avoidance of doubt, each Put Option Party shall
become obligated to purchase its Pro Rata Amount of Convertible Notes in
accordance with Section 1.02 on the
Subscription Acceptance Date.

     

    (d)           The
Company shall not obtain control over or any interest in the funds provided (or
to be provided) to the Subscription Agent pursuant to the Subscription Offer
until the closing of the Subscription Offer on the Closing Date (the “Closing”).

     

    (e)           The
Closing shall occur on the date (the “Closing
Date”) set forth on the notice delivered by the Company to the
Subscription Agent and the Put Option Parties setting forth the satisfaction or
waiver of all closing conditions set forth in the Purchase Agreement (the “Closing Date
Notice”). No later than one business day prior to the Closing Date, the
Put Option Parties shall deliver to the Company notice of the names in which the
Securities shall be registered and DTC participant account information for the
deposit of the Securities and account information or wire instructions for
payment of the Put Fee.

    
      
         

      

      
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    (f)           The
consummation of the sale and purchase of the Convertible Notes at the Closing
will take place in accordance with the terms, conditions and provisions of the
Purchase Agreement, this Agreement (solely with respect to the Put Option
Parties), the Supplement and the Subscription Certificate.

     

    
      	
              2.

            	
              Documentation and
      Conditions

            

    

     

    Section
2.01          Documentation.

     

    (a)           The
Company and the Put Option Parties hereby covenant to one another to use their
commercially reasonable efforts to perform their respective obligations under
this Agreement and to take such actions as may be reasonably necessary to
consummate the Subscription Offer on the terms and conditions as set forth in
the Supplement and related documentation.

     

    (b)           In
addition to the Supplement, the Subscription Offer shall be effected by, and
subject to the terms and conditions of, (i) the Purchase Agreement,
(ii) the Indenture (in the form attached hereto as Exhibit C, the “Indenture”),
(iii) the Security Agreement (as defined in the Supplement) (iv) the
Intercreditor Agreement (as defined in the Supplement), and (v) the Registration
Rights Agreement (in the form attached hereto as Exhibit D, the “Registration
Rights Agreement” and collectively with the Purchase Agreement, the
Indenture, the Security Agreement and the Intercreditor Agreement, as they may
be modified, waived or amended in accordance with this Agreement and the terms
thereof, the “Definitive
Documentation”).  Subject to the following sentence, the
Company may modify, amend or waive any of the provisions of the Definitive
Documentation (or forms thereof), or enter into any agreement having a similar
effect, only with the prior consent of Put Option Parties.

     

    (c)           The
Company agrees to conduct the Subscription Offer in compliance with the terms of
the Supplement and the Subscription Certificate and reserves the right to amend,
modify or waive any of the terms and conditions of the Supplement and the
Subscription Certificate; provided, that the
Company may not, without the consent of the Put Option Parties, amend, modify or
waive any of the defined terms contained in the Supplement or the Subscription
Certificate which are also used in this Agreement, to the extent such amendment,
modification or waiver would alter the meaning of such defined term as used
herein in a manner that would be adverse to the Put Option Parties.

     

    Section
2.02          Conditions.

     

    The
obligations of each Put Option Party to subscribe for and purchase Convertible
Notes at the Closing that constitute its share of any Subscription Deficiency,
calculated in accordance with Section 1.03, is
subject to satisfaction (or waiver by each Non-Defaulting Put Option Party) of
each of the following conditions, on or prior to the Closing:

    
      
         

      

      
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    (a)           not
later than August 18, 2010, the entry of an order by the Bankruptcy Court in the
Chapter 11 Cases, in form and substance reasonably satisfactory to the Put
Option Parties, (i) approving the letter agreement, dated as of July 20, 2010
(the “Purchase
Letter”), by and among the Company and the Put Option Parties and (ii)
otherwise authorizing the Debtors (as defined in the Plan) to execute, perform
and incur their obligations under the Purchase Letter, including the payment of
fees and expenses and the provision of indemnities as set forth
therein;

     

    (b)           each
of the representations set forth in Section 4.02 shall be
true and correct in all material respects, except for representations and
warranties made as of a specified date, which shall be true and correct only as
of the specified date;

     

    (c)           the
Company and each of the Guarantors shall have complied in all material respects
with all covenants, agreements and conditions required by this Agreement and the
Definitive Documentation to which it is a party to be performed, satisfied or
complied with by the Company or the Guarantors on or prior to the Closing
Date;

     

    (d)           there
not having occurred a dismissal or conversion of any Chapter 11 Case to a case
under Chapter 7 of the Bankruptcy Code or the appointment of a Chapter 11
trustee in any Chapter 11 Case;

     

    (e)           no
provision of the Plan (as filed with the Bankruptcy Court) having been amended,
supplemented or otherwise modified in any respect in a manner materially adverse
to the Put Option Parties without the consent of the Put Option Parties (such
consent not to be unreasonably withheld or delayed);

     

    (f)           the
order of the Bankruptcy Court confirming the Plan (the “Confirmation
Order”) by the Bankruptcy Court in the Cases having become a final order,
in full force and effect without reversal, modification or stay; the Plan shall
have been consummated on the terms and conditions set forth therein, as amended
and in effect as of the date of the Confirmation Order;

     

    (g)           the
Company shall provide evidence to the Put Option Parties, in form and substance
reasonably satisfactory to the Put Option Parties, if available, that
substantially concurrently with the issuance of the Convertible Notes all
obligations under the DIP Credit Facility (other than contingent obligations not
then due and payable) will have been repaid in full, all commitments under the
DIP Credit Facility will have been terminated and all liens and security
interests related to the DIP Credit Facility will have been terminated or
released;

     

    (h)           except
to the extent disclosed by the Company in any filing made by the Company with
the Securities and Exchange Commission (the “SEC”)
prior to July 20, 2010, in the Plan or in writing to the Put Option Parties on
July 20, 2010, (i) there not occurring or becoming known to the Put Option
Parties any events, developments, conditions or circumstances (each, an “Event”)
that, individually or in the aggregate, have had or could reasonably be expected
to have a material adverse effect on the business, operations, property,
condition (financial or otherwise) or prospects of the Company and its direct
and indirect subsidiaries, taken as a whole (or the reorganized Company and its
direct and indirect subsidiaries, taken as a whole), and (ii) no material
assets of the Debtors having been sold or agreed to be sold outside of the
ordinary course of business from and after the date hereof;

    
      
         

      

      
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    (i)      
     (i) the Company and the Put Option Parties having
entered into the Definitive Documentation and the Company shall have delivered
executed versions of the Definitive Documentation to the Put Option Parties on
the Closing Date and (ii) on the Effective Date (A) there not being any
event or condition which constitutes an event of default, or which upon notice,
lapse of time, or both would constitute an event of default, under the
Definitive Documentation and (B) the Definitive Documentation being in full
force and effect;

     

    (j)       
    the payment of the fees and reimbursement of
out-of-pocket costs and expenses as set forth herein, in the Plan and pursuant
to that certain letter, dated as of February 22, 2010 (the “Expense
Agreement”),
between the Company and Paul, Weiss, Rifkind, Wharton & Garrison LLP
(“Paul
Weiss”), regarding payment by the Company of fees and expenses to Paul
Weiss as counsel to a group formed by certain holders of the Existing Notes, in
accordance with the terms hereof and thereof; provided, that the
Put Option Parties shall cause Paul Weiss to provide the Company with an
estimate of its fees and expenses through the Closing Date at least two (2)
business days prior to the Closing Date;

     

    (k)           the
Effective Date and the Closing Date shall occur on or prior to October 1,
2010;

     

    (l)         
  as of the date of the Supplement and on the Closing Date, the
materials to be used in connection with the Subscription Offer regarding the
Company, its subsidiaries and the Convertible Notes (which include the
Supplement), for distribution to other holders of the Existing Notes, when
furnished and taken as a whole, are complete and correct in all material
respects and do not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements contained therein, in
light of the circumstances under which such statements are made, not
misleading;

     

    (m)           the
following shall be true and correct: each of the Company’s filings with the SEC
since January 1, 2010 is, as of its respective filing date, complete and correct
in all material respects and does not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements contained
therein, in light of the circumstances under which such statements are made, not
misleading; and

     

    (n)           substantially
concurrently with the issuance of the Convertible Notes (i) the Debtors and
the lenders under the Company’s new revolving exit facility, as contemplated in
the Supplement (the “Revolving
Facility”), will have entered into the definitive documentation for the
Revolving Facility and any related documentation and reasonably satisfactory to
the Put Option Parties, (ii) all conditions to borrowing under the
Revolving Facility will have been satisfied or waived (provided that if such
waiver could reasonably be expected to be adverse in any material respect to the
interests of the Put Option Parties, the Put Option Parties shall have consented
to such waiver) on or prior to the Effective Date and (iii) on the
Effective Date (y) there has not been any event or condition which
constitutes an event of default, or which upon notice, lapse of time, or both
would become an event of default, under the Revolving Facility and (z) the
Revolving Facility being in full force and effect.

    
      
         

      

      
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              3.

            	
              Termination.

            

    

     

    Section
3.01          Termination.  Unless
earlier terminated in accordance with the terms of this Agreement, this
Agreement shall terminate upon the earliest to occur of:

     

    (a)           the
mutual written agreement of the Company and the Put Option Parties;

     

    (b)           written
notice by the Company to the Put Option Parties after October 1, 2010 (the
“Drop Dead
Date”); provided that the Company shall not be entitled to terminate this
Agreement pursuant to this Section 3.01(b) if it
is then in material breach of its obligations under this Agreement;

     

    (c)           written
notice by the Put Option Parties after the Drop Dead Date; provided that the Put
Option Parties shall not be entitled to terminate this Agreement pursuant to
this Section
3.01(c) if the Put Option Parties are then in material breach of their
obligations under this Agreement;

     

    (d)           10
days after the Put Option Parties have delivered written notice to the Company
that the Company has materially breached this Agreement, if such breach remains
uncured at the conclusion of such 10-day period; provided that in no
event shall this cure period limit the right of the Put Option Parties to
terminate after the Drop Dead Date; or

     

    (e)           10
days after the Company has delivered notice to the Put Option Parties that the
Put Option Parties have materially breached this Agreement, if such breach
remains uncured at the conclusion of such 10-day period; provided that in no
event shall this cure period limit the right of the Company to terminate after
the Drop Dead Date.

     

    Section
3.02          Withdrawal.  If
this Agreement is terminated in accordance with its terms at any time,
including, but not limited to, following the Subscription Offer Expiration Time,
all Subscription Certificates executed and delivered to the Subscription Agent
pursuant to Section
1.04 shall automatically and without further action be deemed to be
withdrawn and cancelled and of no further force or effect.  Each of
the parties hereto agrees to execute and deliver such further documentation as
may be reasonably requested by any other party to evidence such
withdrawal and cancellation.

     

    Section
3.03          Effect of
Termination.

     

    (a)           Except
to the extent specified in this Agreement, upon termination of this Agreement in
accordance with its terms, all rights and obligations of the parties hereunder
shall terminate automatically and shall become null and void and no party hereto
shall have any liability to any other party hereto following termination of this
Agreement; provided that this
Section 3.03(a)
shall in no way limit any liabilities any party may have to another party
pursuant to this Agreement, the Purchase Agreement or any other agreement or
instrument to which such party is a party or is otherwise bound); provided, further, that no
termination of this Agreement shall relieve any breaching party for damages
arising from the breach of this Agreement.

     

    (b)           Notwithstanding
anything to the contrary herein, the following provisions shall survive any
termination of this Agreement in accordance with their terms: Section 3.02, Section 3.03, Section 5.02 through
Section 5.09
(inclusive), Section
5.11, Section
5.13(a), and Section
5.14.

    
      
         

      

      
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              4.

            	
              Representations,
      Warranties and Covenants.

            

    

     

    Section
4.01          Representations and
Warranties of the Put Option Parties.  Each of the Put Option
Parties represents and warrants, on behalf of itself, to the other parties that
the following statements are true, correct and complete as of the date
hereof:

     

    (a)           Organization;
Powers.  Each Put Option Party is duly organized, validly
existing, and in good standing under the laws of the jurisdiction of its
organization or formation, as applicable.  Each Put Option Party has
all requisite power and authority to enter into this Agreement and the
Definitive Documentation to which it is a party, and to perform and comply with
all of the terms, covenants, and conditions to be performed and complied with by
it hereunder and thereunder.

     

    (b)           Authorization;
Enforceability.  The entry into and performance of this
Agreement and the Definitive Documentation to which it is a party have been duly
authorized by all necessary actions on the part of such Put Option
Party.  This Agreement has been duly entered into and constitutes the
legal, valid, and binding obligation of such Put Option Party, enforceable
against it in accordance with its terms except as the enforceability of this
Agreement may be affected by bankruptcy, insolvency, or similar laws affecting
creditors’ rights generally, and by judicial discretion in the enforcement of
equitable remedies.

     

    (c)           No
Conflicts.  The execution, delivery and performance by such Put
Option Party of this Agreement and the Registration Rights Agreement and the
consummation by such Put Option Party of the transactions contemplated hereby
and thereby will not (i) result in a violation of the organizational documents
of such Put Option Party or (ii) conflict with, or constitute a default (or an
event which with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture or instrument to which such Put Option
Party is a party, or (iii) result in a violation of any law, rule, regulation,
order, judgment or decree (including federal and state securities laws)
applicable to such Put Option Party, except in the case of clauses (ii) and
(iii) above, for such conflicts, defaults, rights or violations which would not,
individually or in the aggregate, reasonably be expected to have a material
adverse effect on the ability of such Put Option Party to perform its
obligations hereunder.

     

    (d)           Ownership.  Each
Put Option Party is, as of the Record Date, (i) (A) the sole beneficial owner
having the power to vote and dispose of the aggregate principal amount of
Existing Notes set forth opposite its name on its signature page hereto; and (B)
entitled (for its own account or for the account of other persons or entities
claiming through any of them) to all of the rights and economic benefits of such
Existing Notes; or (ii) otherwise entitled to act on behalf of such Existing
Notes and/or the beneficial owner or owners and/or investment advisor or manager
thereof.

    
      
         

      

      
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    (e)           Accredited Investor
Status.  Each Put Option Party acknowledges that (i) it is
either (A) a “qualified institutional buyer” within the meaning of Rule 144A
promulgated by the SEC under the Securities Act or (B) an institutional investor
that is an “accredited investor,” within the meaning of Rule 501(a)(1), (2), (3)
and (7) promulgated by the SEC under the Securities Act, (ii) it is acquiring
the Convertible Notes to be issued to it hereunder for its own account, for
investment, and not with a view to or for sale in connection with any
distribution thereof in violation of the registration provisions of the
Securities Act or the rules and regulations promulgated thereunder and (iii) it
is aware that an investment in the Securities involves economic risk and that it
may lose its entire investment in the Convertible Notes. Such Put Option Party
further acknowledges that the Convertible Notes are “restricted securities”
under the federal securities laws, have not been registered under the Securities
Act or any state securities or “blue sky” laws and may not be offered or sold
except pursuant to an effective registration statement thereunder or an
exemption from registration under the Securities Act and applicable state
securities laws.  Such Put Option Party further acknowledges that it
has adequate information concerning the business and affairs of the Company to
make an informed decision regarding the purchase of Convertible Notes
contemplated hereby and has independently and without reliance upon the Company,
or the Company’s advisors, and based upon such information such Put Option Party
has deemed appropriate, made its own analysis and decision to enter into the
Definitive Documentation to which it is a party, except that such Put Option
Party has relied upon the representations, warranties, agreements and covenants
of the Company contained in this Agreement and the information provided in the
Supplement. Such Put Option Party understands that nothing in the Supplement,
Definitive Documentation or any other materials presented by or on behalf of the
Company or its subsidiaries to such Put Option Party in connection with the
purchase of the Convertible Notes constitutes legal, tax or investment
advice.  Such Put Option Party has sought such accounting, legal and
tax advice as it has considered necessary to make an informed investment
decision with respect to its acquisition of the Convertible Notes.

     

    (f)         
  Legend.  Such
Put Option Party understands that upon the original issuance thereof, and until
such time as the same is no longer required under applicable requirements of the
Securities Act or applicable state securities laws, the certificates or other
instruments representing the Convertible Notes and all certificates or other
instruments issued in exchange therefor or in substitution thereof, including
the shares of the common stock of the Company, par value $0.001 per share (the
“Common
Stock”) issued upon conversion of the Convertible Notes, shall bear the
legend(s) set forth in the Indenture, and that the Company will make a notation
on its records and give instructions to the trustee under the Indenture in order
to implement the restrictions on transfer of the Convertible Notes, set forth
and described therein.

     

    (g)           General
Solicitation.  Such Put Option Party is not purchasing the
Convertible Notes as a result of any advertisement, article, notice or other
communication regarding the Convertible Notes published in any newspaper,
magazine or similar media or broadcast over television or radio or presented at
any seminar or any other general advertisement.

     

    (h)           Reliance on
Exemptions.  Such Put Option Party understands that the
Convertible Notes are being offered and sold to it in reliance on specific
exemptions from the registration requirements of United States federal and state
securities laws and that the Issuer Parties are relying in part upon the truth
and accuracy of, and such Put Option Party’s compliance with, the
representations, warranties, agreements, acknowledgments and understandings of
such Put Option Party set forth herein in order to determine the availability of
such exemptions and the eligibility of such Buyer to acquire the Convertible
Notes.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (i)         
  No
Governmental Review.  Such Put Option Party understands that no
United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Securities
or the fairness or suitability of the investment in the Securities, nor have
such authorities passed upon or endorsed the merits of the offering of the
Convertible Notes.

     

    (j)     
      Residency.  For
purposes of U.S. securities laws, such Put Option Party is a resident of the
jurisdiction set forth on its signature page to this Agreement.

     

    Section
4.02         Representations, Warranties
and Covenants of the Company. The Company represents and warrants to the
Put Option Parties that the following statements are true, correct and complete
as of the date hereof, except as has been previously disclosed in (i) the
Supplement, or (ii) any report, schedule, form, statement or other document
required to be filed by the Company with the SEC pursuant to the reporting
requirements of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), filed with the SEC prior to the date of this
Agreement:

     

    (a)           Organization;
Powers.  The Company is a corporation duly organized, validly
existing, and in good standing under the laws of the State of
Delaware.  The Company has all requisite power and authority (i) to
own, lease and operate its properties and to conduct its business as described
in the Supplement; (ii) to execute and deliver this Agreement and the Definitive
Documentation to which it is a party and (iii) to perform and comply with all of
the terms, covenants, and conditions to be performed and complied with by the
Company hereunder and thereunder.  The Company is duly qualified to
transact business in each jurisdiction in which the nature of its business makes
such qualification necessary, except where the failure to be so qualified would
not impair or hinder the ability of the Company to perform its obligations under
this Agreement or the Definitive Documentation to which it is a
party.

     

    (b)           Authorization;
Enforceability.  The execution, delivery, and performance of
this Agreement and the other Definitive Documentation by the Company have been
duly authorized by all necessary actions on the part of the
Company.  This Agreement and each other Definitive Document has been
or will be on the Closing Date, as applicable, duly executed and delivered by
the Company and constitutes or will constitute on the Closing Date, as
applicable, the legal, valid, and binding obligation of the Company, enforceable
against it in accordance with its terms except as the enforceability of this
Agreement may be affected by bankruptcy, insolvency, or similar laws affecting
creditors’ rights generally, and by judicial discretion in the enforcement of
equitable remedies.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (c)           Government Approvals; No
Conflicts.  The execution and delivery by each the Company of
this Agreement and the Definitive Documentation and the performance by the
Company of its obligations under this Agreement and the Definitive Documentation
and the consummation of the Transactions, including its issuance of the
Convertible Shares (with or without the giving of notice, the lapse of time, or
both): (i) subject to the approval of the Bankruptcy Court and approval of the
Plan, do not require the consent of any third party (including any federal,
state or local governmental authority, including any court or administrative or
regulatory agency (a “Governmental
Authority”)); (ii) subject to the approval of the Bankruptcy Court and
approval of the Plan, will not conflict with any provision of the Company’s
certificate of incorporation or bylaws; (iii) subject to the approval of the
Bankruptcy Court and approval of the Plan, will not violate, result in a breach
of, or contravene any applicable common law and any applicable statute,
ordinance, code, or other law, rule, regulation, order, technical or other
standard, requirement, or procedure enacted, adopted, promulgated, or applied by
any Governmental Authority, including the terms of any license or permit and any
applicable order, decree, or judgment that may have been handed down, adopted,
or imposed by any Governmental Authority, in each case as in effect on the date
of this Agreement applicable to the Company (other than any filings required
under federal or state securities laws to be made by the Closing Date, or to the
extent permitted by applicable laws, thereafter); and (iv) except with respect
to the DIP Credit Facility, will not violate, conflict with, result in a
material breach of any terms of, constitute grounds for termination of,
constitute a default under (nor has any event occurred that, with notice or
passage of time or both, would constitute a default under), or result in the
acceleration of any performance required by the terms of, any mortgage,
indenture, lease, contract, agreement, or similar instrument to which the
Company is a party or by which the Company or its properties may be bound
legally.

     

    (d)           Issuance of
Securities. The Convertible Notes and the shares of Common Stock into
which the Convertible Notes are convertible (the “Conversion
Shares”) to be issued under the Purchase Agreement, when issued, sold and
delivered in accordance with the terms of the Purchase Agreement, will each be
duly and validly issued, fully paid and nonassessable and will be free of
restrictions on transfer other than restrictions on transfer under applicable
state and federal securities laws and entitled to the benefits provided by the
Indenture. The Conversion Shares, when issued, sold and delivered as provided in
the Purchase Agreement, will be free and clear of all liens, encumbrances,
equities or claims and the Company will have reserved an adequate amount of the
Common Stock for issuance of Conversion Shares upon conversion of the
Convertible Notes as of the Closing.

     

    (e)           Investment Company
Status.  The Company is not, and after giving effect to the
offering and sale of the Convertible Notes and the application of the proceeds
thereof, the Company will not be, an “investment company” as defined in, or
subject to regulation under, the Investment Company Act of 1940, as amended, and
the rules and regulations of the SEC promulgated thereunder.

     

    (f)           Margin
Regulations.  Neither the issuance, sale and delivery of the
Convertible Notes nor the application of the proceeds thereof by the Company
will result in a violation of Section 7 of the  Exchange Act,
Regulations T, U or X of the Board of Governors of the Federal Reserve System or
any other regulation of such Board of Governors.

     

    (g)           No General Solicitation or
Directed Selling Efforts.  None of the Company or any of its
affiliates (as defined in Rule 501(b) of Regulation D) or any person or entity
acting on its or their behalf, has (i) engaged directly or indirectly in any
form of general solicitation or general advertising (within the meaning of Rule
502(c) of Regulation D) in connection with the offering of the Convertible Notes
or in any manner involving a public offering within the meaning of Section 4(2)
of the Securities Act or (ii) engaged in any directed selling efforts within the
meaning of Regulation S, and all such persons will comply with the offering
restrictions requirement of Regulation S. Except for this Agreement and the
other Definitive Documentation, the Company has not entered, and will not enter,
into any arrangement or agreement with respect to the distribution of the
Convertible Notes.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    (h)           QIBs and Accredited
Investors.  The Company has not offered or sold any of the
Convertible Notes to any person or entity whom it reasonably believes is not (i)
a “qualified institutional buyer” as defined in Rule 144A or (ii) an
institutional “accredited investor” (as defined in clauses (1), (2), (3) and (7)
of Rule 501(a) of Regulation D).

     

    (i)            Untrue Statements or
Omissions.  The Supplement did not, as of the date thereof, and
will not, as of the Closing Date, contain any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.  In addition, each of the Company’s filings with the SEC
since January 1, 2010 is, as of its respective filing date, complete and correct
in all material respects and does not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements contained
therein, in light of the circumstances under which such statements are made, not
misleading.

     

    
      	
              5.

            	
              Miscellaneous
      Matters.

            

    

     

    Section
5.01           Specific
Performance.  It is understood and agreed by each of the
parties hereto that money damages would not be a sufficient remedy for any
material breach of this Agreement by any party and each non-breaching party
shall be entitled to specific performance and injunctive relief or other
equitable relief as a remedy for any such breach.  This provision is
without prejudice to any other rights or remedies, whether at law or in equity,
that any party hereto may have against any other party hereto for any failure to
perform its obligations under this Agreement.

     

    Section
5.02           Entire Agreement and
Severability.  This Agreement (including the Schedules and
Exhibits hereto), together with the Definitive Documentation, constitutes the
entire agreement among the parties with respect to the subject matter of this
Agreement and supersedes all prior agreements and understandings, other than the
Purchase Letter and the Expense Agreement; provided, that the
indemnification provisions contained in the Purchase Letter are superseded by
this Agreement.   If any provision of this Agreement or the
application of any such provision to any person, entity or circumstance is held
invalid, illegal or unenforceable in any respect by a court of competent
jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision of this Agreement, and this Agreement shall be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision or portion of any provision had never been contained
herein and there had been contained herein instead such valid, legal and
enforceable provisions as would most nearly accomplish the intent and purpose of
such invalid, illegal or unenforceable provision.

     

    Section
5.03            Amendments.  Except
as set forth in Sections 2.01(b) and
2.01(c), this
Agreement may not be amended except by an instrument in writing signed by the
Company and each Put Option Party.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    Section
5.04           Successors and
Assigns.  This Agreement and all of the provisions hereof shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors.  Each Put Option Party may assign its rights
and obligations hereunder (including its Put Participation Amount), in whole or
in part, to any of its affiliates (including related funds) and to any proposed
investor reasonably satisfactory to the Company; provided, that no
such assignment shall release such Put Option Party of its obligation to
purchase its respective portion of the Convertible Notes at the Closing pursuant
to the Put Option, if exercised by the Company, or pursuant to Section
1.02.

     

    Section
5.05           Third Party
Beneficiaries.  The parties intend that there shall be no third
party beneficiaries of or to this Agreement, and nothing in this Agreement,
express or implied, shall give to any person or entity, other than the parties
hereto, the Indemnified Parties and any successor thereto, any benefit or any
legal or equitable right, remedy, or claim under this Agreement.

     

    Section
5.06           Notices.  Any
notice required or desired to be served, given or delivered under this Agreement
shall be in writing, and shall be deemed to have been validly served, given or
delivered to the person set forth below (a) if sent by registered or certified
mail in the United States, return receipt requested, upon actual receipt; (b) if
sent by reputable overnight air courier (such as United Parcel Service or
Federal Express), one (1) business day after being so sent; (c) if sent by
telecopy or facsimile transmission (and receipt is confirmed), when transmitted
at or before 5:00 p.m. local time at the location of receipt on a business day,
and if received after 5:00 p.m. or on a day other than a business day, on the
next following business day, but only if also sent by reputable overnight air
courier within one (1) business day following transmission; or (d) if otherwise
actually personally delivered, when so delivered, in the case of any of the
preceding clauses, as follows:

     

    
      	
               
      

            	
              (a)

            	
              if
      to the Company, to:

            

    

     

    
      U.S.
Concrete, Inc.

    

    
      2925
Briarpark, Suite 500

    

    
      Houston,
TX  77042

    

    
      Attention:      
General
Counsel

    

    
      Facsimile:      (713)
499-6201

    

     

    
      with a
copy to (for informational purposes only):

    

     

    
      Kirkland &
Ellis LLP

    

    
      300 N.
LaSalle Street

    

    
      Chicago,
IL  60654

    

    
      Attention:    
Carol
Anne Huff, Esq.

    

    
      Facsimile:    (312)
862-2200

    

     

    
      	
               
      

            	
              (b)

            	
              if
      to the Put Option Parties, to:

            

    

     

    
      	
               
      

            	
              the
      Put Option Parties at the addresses set forth on the signature pages
      hereto or as otherwise provided in writing to the
  Company.

            

    

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              with
      a copy to (for informational purposes
only):

            

    

    

    
      Paul,
Weiss, Rifkind, Wharton & Garrison LLP

    

    
      1285
Avenue of the Americas

    

    
      New York,
NY 10019-6064

    

    
      Attention:  Tracey
A. Zaccone, Esq.

    

    
      Facsimile:  (212)
492-0085

    

     

    or such
other address or to the attention of such other person as the recipient party
shall have specified by prior written notice to the sending party.

     

    Section
5.07          Headings.  The
headings of this Agreement are for reference only and shall not limit or
otherwise affect the meaning hereof.

     

    Section
5.08          Governing Law; Jurisdiction;
Waiver of Jury Trial.

     

    (a)           This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York, without regard to internal conflicts of law principles
that may apply to this Agreement in any other jurisdiction.  Each of
the parties hereto hereby irrevocably and unconditionally submits to the
nonexclusive jurisdiction and venue of the Bankruptcy Court, and in the event
that the Bankruptcy Court does not have or declines to exercise jurisdiction or
there is a reason to believe that it would not have or would decline to exercise
jurisdiction, to the nonexclusive jurisdiction and venue of any New York State
court or Federal court of the United States of America located in New York City
in the Borough of Manhattan, but solely in any action or proceedings arising out
of or relating to this Agreement or the Transactions.  Each of the
parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law.

     

    (b)           Each
party hereto irrevocably waives, to the fullest extent permitted by applicable
law, (i) any right to trial by jury in any action, proceeding or counterclaim
(whether based on contract, tort or otherwise) arising out of or relating to
this Agreement or the Transactions and (ii) any objection that it may now or
hereafter have to the laying of venue of any such action, proceeding or
counterclaim in the Bankruptcy Court or the state or federal courts located in
New York City in the Borough of Manhattan.

     

    Section
5.09          Several, Not Joint,
Obligations.  The agreements, representations, liabilities and
obligations of the parties under this Agreement are, in all respects, several
and not joint.

     

    Section
5.10          Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed to be an original, but all of which together shall constitute one and the
same instrument.  This Agreement may be executed in facsimile form or
in portable document format (pdf).

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    Section
5.11          Professional
Advice.  Each of the parties hereto has received independent
legal and professional advice from advisors of its choice with respect to the
provisions hereof and the advisability of entering into the agreements set forth
herein.  Prior to the execution hereof, each of the parties hereto and
their applicable advisors reviewed this Agreement and the Exhibits
hereto.

     

    Section
5.12          Further
Assurances.  The parties hereto shall do and perform or cause
to be done and performed all such further acts and things and shall execute and
deliver such other agreements, certificates, instruments and documents as any
other party hereto may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
Transactions in accordance with the terms and conditions hereof.

     

    Section
5.13          Costs, Fees and Expenses;
Indemnification; Limitation on Damages.

     

    (a)           In
consideration of the Put Option, the Company agrees to reimburse the Put Option
Parties (promptly following written demand, including documentation reasonably
supporting such request) for all reasonable and out-of-pocket costs, fees and
expenses incurred by or on behalf of the Put Option Parties in connection with
the negotiations, preparation, executing and delivery of the Definitive
Documentation and the consummation of the Transactions, including but not
limited to, the reasonable out-of-pocket fees and expenses of one primary
counsel for the Put Option Parties and necessary local counsel.

     

    (b)           The
Company further agrees to indemnify and hold harmless the Put Option Party, each
of their affiliates and each of their and their affiliates’ respective officers,
directors, partners, shareholders, trustees, controlling persons, employees,
agents, advisors, attorneys and representatives (each, an “Indemnified
Party”) from and against any and all claims, damages, losses, liabilities
and related reasonable out-of-pocket costs and expenses (including, without
limitation, reasonable fees and disbursements of one counsel for the Indemnified
Parties, except to the extent an actual conflict exists among them) that may be
incurred by or asserted or awarded against any Indemnified Party, in each case
arising out of or in connection with or relating to the Transactions, this
Agreement or the transactions contemplated hereby, any use made or proposed to
be made with the proceeds of the Convertible Notes, or any claim, litigation,
investigation or proceeding relating to any of the foregoing, regardless of
whether any Indemnified Party is a party thereto, and shall reimburse (promptly
following written demand, including documentation reasonably supporting such
request) each Indemnified Party on demand for all reasonable legal and other
out-of-pocket expenses incurred by it in connection with investigating,
preparing to defend or defending, or providing evidence in or preparing to serve
or serving as witness with respect to, any lawsuit, investigation, claim or
other proceeding relating to any of the foregoing (including, without
limitation, in connection with the enforcement of the indemnification
obligations set forth herein), irrespective of whether the transactions
contemplated hereby are consummated, except to the extent such claim, damage,
loss, liability, or expense is (i) found in a final non-appealable judgment by a
court of competent jurisdiction to have resulted from the gross negligence or
willful misconduct of such Indemnified Party or any of its affiliates or its or
its affiliates’ respective officers, directors, partners, shareholders,
trustees, controlling persons, employees, agents, advisors, attorneys or
representatives or (ii) solely relating to or arising from a dispute between or
among the Indemnified Parties.

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    (c)           If
any Indemnified Party shall receive an indemnification payment in respect of any
claim, damage, loss, liability or expense pursuant to Sections 5.13(a) and
5.13(b) and
such claim, damage, loss, liability or expense is found by a final
non-appealable judgment by a court of competent jurisdiction to have resulted
from the gross negligence or willful misconduct of such Indemnified Party or any
of its affiliates or its or its affiliates’ respective officers, directors,
partners, shareholders, trustees, controlling persons, employees, agents,
advisors, attorneys or representatives, then such Indemnified Party shall refund
the amount received by it in respect of such indemnification in excess of that
amount to which it is entitled under the terms of Sections 5.13(a) and
5.13(b).  In
no event, however, shall any Indemnified Party be liable to the Company or any
of the Company’s affiliates on any theory of liability for any special,
indirect, consequential or punitive damages.

     

    (d)           The
Company will not enter into any settlement of any lawsuit, claim or other
proceeding arising out of the Transactions without the consent of the Put Option
Parties unless such settlement (i) includes an explicit and unconditional
release from the party bringing such lawsuit, claim or other proceeding of all
Indemnified Parties and (ii) does not include a statement as to or an admission
of fault, culpability or a failure to act by or on behalf of any Indemnified
Party.  No Indemnified Party shall be liable to the Company or any of
its affiliates for any damages arising from the use by unauthorized persons of
any information made available to the Put Option Parties by the Company or any
of its representatives through electronic, telecommunications or other
information transmission systems that is intercepted by such
persons.

     

    (e)           Notwithstanding
the foregoing, neither the Company nor any of its affiliates shall have any
liability for any settlement of any lawsuit, claim or other proceeding arising
out of this Agreement or the transactions contemplated hereby if such settlement
is entered into without the prior written consent of the Company, not to be
unreasonably withheld.

     

    Section
5.14          Time of
Essence.  Time is of the essence with respect to all provisions
of this Agreement.

     

    *     *     *     *     *

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties have duly executed and delivered this Agreement as
of the date first written above.

    

    
      
        	 
      	
                U.S.
      CONCRETE, INC.

              
	 
      	 
      
	 
      	
                By:

              	

                /s/
      Michael W. Harlan

              	 
      
	 
      	
                Name:
      Michael
      W. Harlan

              
	 
      	
                Its:
      CEO and President

              

      

    

     

    Signature
Page to the U.S. Concrete, Inc. Support Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      
        
          	 
      	
                  MONARCH
      DEBT RECOVERY MASTER

                  FUND
      LTD

                
	 
      	
                  MONARCH
      OPPORTUNITIES MASTER

                  FUND
      LTD

                
	 
      	
                  MONARCH
      CAPITAL MASTER PARTNERS

                  LP

                
	 
      	
                  MONARCH
      CAYMAN FUND LTD

                
	 
      	
                  OAKFORD
      MF LIMITED

                
	 
      	 
      
	 
      	
                  By:
      Monarch Alternative Capital LP, its

                  Investment
      Advisor

                
	 
      	 
      
	 
      	
                  By:

                	

                  /s/
      Michael A. Weinstock

                	 
      
	 
      	
                  Name:
      Michael A. Weinstock

                
	 
      	
                  Its:
      Principal

                
	
                  Address:

                   

                  Monarch
      Alternative Capital LP

                  535
      Madison Ave.

                  New
      York, NY 10022

                  Attention:  Michael
      Gillin

                  Phone:  212-554-1743

                  Fax:  866-741-3564

                  E-mail:  michael.gillin@monarchlp.com

                   

                  $12,273,000        

                  Aggregate
      Principal Amount of Existing Notes held

                  by
      the Monarch Funds as of the Record Date

                   

                  The
      Put Participation Amount shall be allocated among

                  the
      Monarch Funds as follows (percentages represent

                  percentages
      of the aggregate commitment of the

                  Monarch
      Funds):

                

        

      

    

    

    
      
        
          
            
              
                
                  	
                          Monarch
      Debt Recovery Master Fund Ltd.

                        	 	 	47.4	%
	
                          Monarch
      Opportunities Master Fund Ltd.

                        	 	 	27.1	%
	
                          Monarch
      Capital Master Partners LP

                        	 	 	19.7	%
	
                          Monarch
      Cayman Fund Ltd.

                        	 	 	1.9	%
	
                          Oakford
      MF Limited

                        	 	 	3.9	%

                

              

            

          

        

      

    

     

    Signature
Page to the U.S. Concrete, Inc. Support Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      
        	 
      	
                WHITEBOX
      CONVERTIBLE ARBITRAGE

                PARTNERS,
      LP

              
	 
      	
                WHITEBOX
      COMBINED PARTNERS, LP

              
	 
      	
                WHITEBOX
      HEDGED HIGH YIELD PARTNERS, LP

              
	 
      	 
      
	 
      	
                By:
      Whitebox Advisors, LLC, its Investment

                Advisor

              
	 
      	 
      
	 
      	
                By:

              	/s/
      Mark Strefling	 
      
	 
      	
                Name:
      Mark Strefling

              
	 
      	
                Its:
      Chief Legal Officer

              

      

    

    
      
        	
                Address:

                 

                Whitebox
      Advisors, LLC

                3033
      Excelsior Blvd., Suite 300

                Minneapolis,
      MN 55416

                Attention:
      Jake Mercer

                Phone:  612-253-6049

                Fax:  612-253-6149

                E-mail:  jmercer@whiteboxadvisors.com

                 

                $13,230,000        

                Aggregate
      Principal Amount of Existing Notes held

                by
      the Whitebox Funds as of the Record Date

                 

                The
      Put Participation Amount shall be allocated among

                the
      Whitebox Funds as follows (percentages represent

                percentages
      of the aggregate commitment of the

                Whitebox
      Funds):

              

      

    

    

    
      
        
          	
                  Whitebox
      Convertible Arbitrage Partners, LP

                	 	 	23.5	%
	
                  Whitebox
      Combined Partners, LP

                	 	 	53.1	%
	
                  Whitebox
      Hedged High Yield Partners, LP

                	 	 	23.4	%

        

      

    

     

    Signature
Page to the U.S. Concrete, Inc. Support Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      
        	 
      	
                YORK
      CREDIT OPPORTUNITIES MASTER

                FUND,
      L.P.

              
	 
      	 
      
	 
      	
                By:  York
      Credit Opportunities Domestic

                Holdings,
      LLC, its General Partner

              
	 
      	 
      
	 
      	 
      
	 
      	
                By:

              	/s/
      Adam J. Semler	 
      
	 
      	
                Name:
      Adam J. Semler

              
	 
      	
                Its:
      Chief Operating Officer

              
	 
      	 
      
	 
      	
                YORK
      CREDIT OPPORTUNITIES FUND,

                L.P.

              
	 
      	 
      
	 
      	
                By:  York
      Credit Opportunities Domestic

                Holdings,
      LLC, its General Partner

              
	 
      	 
      
	 
      	 
      
	 
      	
                By:

              	/s/
      Adam J. Semler	 
      
	 
      	
                Name:
      Adam J. Semler

              
	 
      	
                Its:
      Chief Operating Officer

              

      

    

    
      
        	
                Address:

                 

                York
      Capital Management Global Advisors, LLC

                767
      Fifth Ave., 17th Floor

                New
      York, NY 10153

                Attention:  CFO/Chief
      Investment Counsel

                Phone:  212-710-6595

                Fax:  212-300-1355

                E-mail:  operations@yorkcapital.com

                 

                $29,325,000        

                Aggregate
      Principal Amount of Existing Notes held

                by
      the York Funds as of the Record Date

                 

                The
      Put Participation Amount shall be allocated

                among
      the York Funds as follows (percentages represent

                percentages
      of the aggregate commitment of the York Funds):

                 

              

      

    

    

    
      
        
          	
                  York
      Credit Opportunities Master Fund, L.P.

                	 	 	65.22	%
	
                  York
      Credit Opportunities Fund, L.P.

                	 	 	34.78	%

        

      

    

     

    Signature
Page to the U.S. Concrete, Inc. Support Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    Supplement

     

    

      CONFIDENTIAL

       

      OFFERING
SUPPLEMENT TO THE DISCLOSURE STATEMENT

       

      U.S.
CONCRETE, INC.

       

      Subscription
Offer to Purchase $55,000,000 of

      9.5%
Convertible Secured Notes due 2015

      

      
        
          

        

         

      

      
        
          
            	
                    The Subscription Offer will
      expire at 5:00 p.m., New York City time, on August 26, 2010, unless
      extended by us, which time we refer to herein as the “Subscription Offer
      Expiration Time.”  The Subscription Offer is also subject to
      certain other significant conditions.

                  

          

        

      

      
         

      

      Upon the
terms and subject to the conditions set forth in this Supplement (this
“Supplement”) to the Disclosure Statement Relating to the Joint Plan of
Reorganization of U.S. Concrete, Inc., et al., pursuant to Chapter 11 of the
United States Bankruptcy Code (the “Disclosure Statement”), we are offering to
eligible holders of our 8.375% Senior Subordinated Notes due 2014 (the “Existing
Notes”) as of July 30, 2010 (the “Record Date”) the opportunity to subscribe to
purchase an aggregate of $55,000,000 in principal amount of our 9.5% Convertible
Secured Notes due 2015 (the “Convertible Notes”), convertible into shares of the
common stock of our successor, par value $0.001 per share (the “Common
Stock”), at an offering price of 100.0% (the “Subscription Offer”), in
connection with our joint plan of reorganization (the “Plan”).  We
will use proceeds from the Subscription Offer to repay indebtedness under our
Revolving Credit, Term Loan and Guarantee Agreement with certain of our
affiliates, JPMorgan Chase Bank, N.A. and the lenders parties thereto (the “DIP
Credit Facility”), for working capital and for general corporate
purposes.  Eligible holders of the Existing Notes that subscribe to
purchase Convertible Notes (each, an “electing holder”) may elect to subscribe
to purchase up to the amount (with a minimum subscription of $1,000 and in
minimum incremental multiples of $1,000 above $1,000 or if less, the full
amount) equal to their pro rata portion of the Convertible Notes (the principal
amount of Existing Notes held by such electing holder as of the Record Date as a
percentage of the $272,567,000 principal amount of outstanding Existing Notes as
of the Record Date, excluding the principal amount of Existing Notes owned by
the Company as of such date).  The amount of Convertible Notes that an
electing holder subscribes to purchase is its “Subscription
Amount.”  The Subscription Amount of any electing holder may not be
greater than its pro rata portion of the Convertible Notes.

       

      By
causing its broker, dealer or other nominee to return a fully completed
subscription certificate, in the form attached hereto as Exhibit A (the
“Subscription Certificate”), to Wells Fargo Bank, National Association, as
subscription agent (in such capacity, the “Subscription Agent”), each electing
holder will agree to participate in the Subscription Offer and become party to
and be bound by, as of the Subscription Acceptance Date (as defined below), the
Note Purchase Agreement, in the form attached hereto as Exhibit B (the
“Purchase Agreement”), under which such electing holder will agree to purchase
its Subscription Amount of Convertible Notes, and the Registration Rights
Agreement, in the form attached hereto as Exhibit C (the
“Registration Rights Agreement”), pursuant to which the holders of the
Convertible Notes will have certain registration rights with respect to the
Convertible Notes and the Common Stock into which the Convertible Notes may be
converted.  Three (3) holders of Existing Notes (each a “Purchasing
Party”) and certain of their affiliates are parties to the Support Agreement,
pursuant to which the Purchasing Parties have agreed to purchase their pro rata
share of the Convertible Notes and have granted a put option (the “Put Option”)
to U.S. Concrete, Inc. (“U.S. Concrete”), as described below.

       

      We have
negotiated the terms of the Subscription Offer with the Purchasing Parties, who
collectively represent approximately 20% of the aggregate principal amount of
the outstanding Existing Notes as of the Record Date.  The Purchasing
Parties granted the Put Option to U.S. Concrete pursuant to the terms of a
Support and Backstop Agreement, dated August 16, 2010 (the “Support Agreement”),
by and among U.S. Concrete and the Purchasing Parties.  Upon U.S.
Concrete’s exercise of the Put Option, each Purchasing Party and its designated
affiliates will be required to purchase up to $18.33 million in aggregate
principal amount of the Convertible Notes in the event that $55.0 million
of Convertible Notes are not otherwise subscribed for purchase by eligible
holders of the Existing Notes.

       

      
        (cover
continued on next page)

         

      

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      See
“Risk Factors” beginning on page 14 of this Supplement to read about important
factors you should consider before participating in the Subscription
Offer.

       

      We have
not registered the Convertible Notes under the Securities Act of 1933, as
amended (the “Securities Act”), or the securities laws of any other
jurisdiction.  We are relying on Section 4(2) of the Securities Act
and Regulation D Rule 506 promulgated thereunder to exempt the Subscription
Offer from the registration requirements of the Securities Act and applicable
state securities laws.  We have distributed to each holder of Existing
Notes an eligibility questionnaire (each an “Eligibility Questionnaire”)
requesting certification that it is a “qualified institutional buyer,” or QIB,
as that term is defined in Rule l44A under the Securities Act, or that it is an
institutional “accredited investor” as that term is defined in Rule 501(a)(1),
(2), (3) or (7) under the Securities Act.

       

      Only
holders of Existing Notes who have completed and returned the Eligibility
Questionnaire, certifying that they are QIBs or institutional accredited
investors (whom we refer to herein as eligible holders), are authorized to
receive and review this Supplement and to participate in the Subscription
Offer.

       

      Neither
the Securities and Exchange Commission (the “SEC”) nor any state securities
commission has approved or disapproved of the Convertible Notes or this
transaction, passed upon the merits or fairness of this transaction or passed
upon the adequacy or accuracy of this Supplement.  Any representation
to the contrary is a criminal offense.

       

      Neither
we, nor Wells Fargo Bank, National Association, in its capacity as Subscription
Agent or as escrow agent (in such capacity, the “Escrow Agent”), nor U.S. Bank
National Association, as settlement agent (in such capacity, the “Settlement
Agent”) or as trustee under the indenture governing the Convertible Notes (in
such capacity, the “Trustee”), nor any of their affiliates makes any
recommendation as to whether or not you should participate in the Subscription
Offer.  You must make your own decision as to whether to participate
in the Subscription Offer, and if so, the principal amount of Convertible Notes
to subscribe for purchase, if any.

       

      Any
questions or requests for assistance or for additional copies of this Supplement
or the letter of transmittal or any related documents, may be directed to the
Subscription Agent, at its telephone number or address set forth below and on
the back cover of this Supplement.  You may also contact your broker,
dealer, commercial bank, trust company or other nominee for assistance
concerning the Subscription Offer.

       

      
        (cover
continued on next page)

      

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      The
Subscription Agent and the Escrow Agent for the Subscription Offer
is:

       

      Wells
Fargo Bank, National Association

       

      45
Broadway, 14th Floor

      Attention:  Corporate
Trust Services; Matthew Sherman - Vice President

      New York,
New York  10006

      Matthew.Sherman@wellsfargo.com
and Lindsey.Widdis@wellsfargo.com

      

      Call
Direct: (212) 515-1565

      

      By
Facsimile (for Eligible Institutions only): (212) 509-1716

      Confirm
Facsimile Transmission:  (212) 515-1573

       

      The
Settlement Agent for the Subscription Offer is:

       

      U.S.
Bank National Association

       

      150
Fourth Avenue North, 2nd Floor

      Nashville,
Tennessee 37219

      Attention:
Corporate Trust Services

      

      Call
Direct:  (615) 251-0733

      

      The date
of this Supplement is August 16, 2010.

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      IMPORTANT
DATES

       

      Holders
of Existing Notes should take note of the following important dates in
connection with the Subscription Offer:

       

      
        	
                
                  Date or Time

                

              	 	
                
                  Calendar Date and Time

                

              	 	
                
                  Event

                

              
	 	 	 	 	 
	
                Subscription
      Offer Expiration Time

              	 	
                5:00
      p.m., New York City time, on August 26, 2010, unless extended by
      us.

                 

              	 	
                The
      time by which each eligible holder that wishes to purchase Convertible
      Notes must have caused its broker, custodian bank or other nominee to
      validly deliver its Subscription Certificate designating its Subscription
      Amount to the Subscription Agent, which Subscription Certificate must be
      completed by such broker, custodian bank or other nominee.

                  

                You
      will not be able to revoke, withdraw or otherwise cancel a previously
      delivered Subscription Certificate after the Subscription Offer Expiration
      Time; provided that the Purchasing Parties may not revoke, withdraw or
      otherwise cancel their Subscription Materials at any time, except to the
      extent permitted by the Support Agreement.

                 

              
	
                Subscription
      Acceptance Date

              	 	
                The
      date on which we deliver notice of acceptance of  all, any or
      none of the Subscription Certificates (the “Subscription Acceptance
      Notice”) to the Subscription Agent, which date shall be August 26, 2010
      unless you are otherwise notified (the “Subscription Acceptance Date”);
      provided, that we shall provide notice on the Subscription Acceptance Date
      to any holder who has validly submitted and not withdrawn a Subscription
      Certificate as of the Subscription Offer Expiration Time if we do not
      accept such Subscription Certificate.

              	 	
                If
      we have not earlier terminated the Subscription Offer, we will deliver the
      Subscription Acceptance Notice to the Subscription Agent on the
      Subscription Acceptance Date setting forth the Subscription Certificates
      which we have accepted.  Upon the delivery of the Subscription
      Acceptance Notice to the Subscription Agent, each eligible holder that has
      submitted and not withdrawn a Subscription Certificate as of the
      Subscription Offer Expiration Time shall (unless otherwise notified by us
      on the Subscription Acceptance Date) (i) automatically become a party to
      the Purchase Agreement as of the Subscription Acceptance Date and
      thereafter be bound by the terms and conditions thereof, (ii) become
      obligated to purchase the Convertible Shares which it subscribed to
      purchase, as set forth on its Subscription Certificate and (iii) will
      agree to be bound by the terms and conditions of the Registration Rights
      Agreement on the Convertible Notes Closing Date (as defined
      below).

              

      

       

      
        
           

        

        
          i

          
            

          

        

        
           

        

      

       

      
        	
                
                  Date or Time

                

              	 	
                
                  Calendar Date and Time

                

              	 	
                
                  Event

                

              
	 
      	 	 
      	 	
                 

                Furthermore,
      upon our delivery of a Put Election (as defined below) to the Purchasing
      Parties on the business day following the Subscription Acceptance Date,
      each Purchasing Party shall become obligated, upon delivery of the Put
      Election, to purchase its Put Participation Amount (as defined below), if
      any.

                 

              
	
                Subscription
      Payment Deadline

              	 	
                5:00
      p.m., New York City time on the business day immediately following the
      Subscription Acceptance Date, which date shall be August 27, 2010 unless
      you are otherwise notified about a change to the Subscription Acceptance
      Date.

              	 	
                Each
      eligible holder participating in the Subscription Offer must cause its
      broker, dealer or custodian bank to deliver full payment for such eligible
      holder’s Subscription Amount (the “Subscription Payment” and collectively
      with the Subscription Certificate, the “Subscription Materials”) to the
      Escrow Agent on the business day immediately following the Subscription
      Acceptance Date (the “Subscription Payment Deadline”); provided that the
      Purchasing Parties shall deliver their Subscription Payment and full
      payment for their Put Participation Amount (the “Put Participation
      Payment”), if any, as soon as practicable (but, in any event, no later
      than 5:00 p.m., New York City time on the business day immediately prior
      to the Convertible Notes Closing Date (the “Purchasing Party Payment
      Deadline”)).

                 

              
	
                Convertible
      Notes Closing Date

              	 	
                The
      closing date for the Subscription Offer set forth on the notice (the
      “Closing Date Notice”) of the waiver or satisfaction of the closing
      conditions set forth in the Purchase Agreement (other than those that by
      their terms will be fulfilled at the closing of the Subscription Offer),
      which we deliver to the Subscription Agent and the Purchasing Parties on
      or after the Subscription Acceptance Date.

                 

              	 	
                On
      or after the Subscription Acceptance Date, we shall deliver the Closing
      Date Notice to the Subscription Agent and the Purchasing Parties, setting
      forth the closing date for the Subscription Offer (the “Convertible Notes
      Closing Date”), which shall be the same date as the date on which the Plan
      becomes effective (the “Effective Date”) and which shall occur at least
      two (2) business days after our delivery of the Closing Date Notice to the
      Subscription Agent and the Purchasing Parties.  The Convertible
      Notes Closing Date is expected to occur on August 31,
  2010.

              

      

      
        
           

        

        
          ii

          
            

          

        

        
           

        

      

      TABLE
OF CONTENTS

      

      
        
          
            	 
      	 	
                    Page

                  
	
                    SUPPLEMENT
      SUMMARY

                  	 	
                    1

                  
	
                    RISK
      FACTORS

                  	 	
                    14

                  
	
                    USE
      OF PROCEEDS

                  	 	
                    32

                  
	
                    CAPITALIZATION

                  	 	
                    33

                  
	
                    MANAGEMENT

                  	 	
                    34

                  
	
                    DESCRIPTION
      OF CAPITAL STOCK

                  	 	
                    38

                  
	
                    THE
      SUBSCRIPTION OFFER

                  	 	
                    42

                  
	
                    DESCRIPTION
      OF CERTAIN OTHER INDEBTEDNESS

                  	 	
                    50

                  
	
                    THE
      SUPPORT AGREEMENT

                  	 	
                    52

                  
	
                    THE
      REGISTRATION RIGHTS AGREEMENT

                  	 	
                    55

                  
	
                    THE
      INTERCREDITOR AGREEMENT

                  	 	
                    57

                  
	
                    CERTAIN
      U.S. FEDERAL INCOME TAX CONSIDERATIONS

                  	 	
                    62

                  
	
                    TRANSFER
      RESTRICTIONS

                  	 	
                    67

                  
	
                    BOOK-ENTRY;
      DELIVERY AND FORM

                  	 	
                    69

                  
	
                    LEGAL
      MATTERS

                  	 	
                    72

                  
	
                    INDEPENDENT
      REGISTERED PUBLIC ACCOUNTING FIRM

                  	 	
                    72

                  
	
                    FORM
      OF SUBSCRIPTION CERTIFICATE

                  	 	
                    A-1

                  
	
                    FORM
      OF PURCHASE AGREEMENT

                  	 	
                    B-1

                  
	
                    FORM
      OF REGISTRATION RIGHTS AGREEMENT

                  	 	
                    C-1

                  
	
                    FORM
      OF CONVERTIBLE NOTES INDENTURE

                  	 	
                    D-1

                  

          

        

      

      

      In making
your investment decision, you should rely only on the information contained in
this Supplement or to which this Supplement refers you.  We have not
authorized anyone to provide you with different information.  We are
not making an offer of the Convertible Notes in any state or other jurisdiction
where the offers are not permitted.  You should not assume that the
information provided in this Supplement is accurate as of any date other than
the date on the front cover of this Supplement.

       

      This
Supplement is submitted on a confidential basis to QIBs and to institutional
accredited investors, based on certifications made and submitted to the
Subscription Agent on their Eligibility Questionnaires, for informational use
solely in connection with the consideration of the Subscription
Offer.  Its use for any other purpose is not
authorized.  Distribution of this Supplement to any person other than
the offeree and any person retained to advise such offeree with respect to its
participation in the Subscription Offer is unauthorized, and any disclosure of
any of its contents, without our prior written consent, is
prohibited.  Each prospective participant in the Subscription Offer,
by accepting delivery of this Supplement, agrees to the foregoing and to make no
copies or reproductions of this Supplement or any documents referred to in this
Supplement in whole or in part (other than publicly available
documents).

       

      In making
an investment decision, prospective participants in the Subscription Offer must
rely on their own examination of us and the terms of the Subscription Offer,
including the merits and risks involved.  Prospective participants in
the Subscription Offer should not construe anything in this Supplement as legal,
business or tax advice.  Each prospective participant in the
Subscription Offer should consult its own advisors as needed to make its
investment decision and to determine whether it is legally permitted to
participate in the Subscription Offer under applicable laws and
regulations.  Participants in the Subscription Offer should be aware
that they may be required to bear the financial risks of an investment in the
Convertible Notes for an indefinite period of time.

       

      This
Supplement contains summaries which we believe to be accurate with respect to
certain documents, but reference is made to the actual documents themselves for
complete information.  All such summaries are qualified in their
entirety by such reference.  Copies of documents referred to in this
Supplement and attached hereto will be made available to prospective
participants in the Subscription Offer at no cost upon request to
us.  We urge you to request and review such documents because it is
these documents, and not the summaries provided herein, that will define your
rights and obligations to the extent you become a party thereto in connection
with the transactions contemplated hereby.

      
        
           

        

        
          iii

          
            

          

        

        
           

        

      

      We and
other sources identified herein have provided the information contained in this
Supplement.  Although the Purchasing Parties have agreed to the terms
of the Subscription Offer, the Purchasing Parties make no representation or
warranty, express or implied, as to the accuracy or completeness of the
information contained in this Supplement.

       

      NON-GAAP
FINANCIAL MEASURES

       

      The
information in this Supplement relates to an offering that is exempt from
registration under the Securities Act. We believe that our financial statements
and other financial data contained or incorporated by reference in this
Supplement have been prepared in a manner that complies, in all material
respects, with the regulations published by the SEC and are consistent with
current practice with the exception of the presentation of certain non-GAAP
financial measures (as defined below), including EBITDA (as defined below) and
free cash flow.  SEC rules regulate the use in filings with the SEC of
“non-GAAP financial measures” such as EBITDA and free cash flow that are derived
on the basis of methodologies other than in accordance with accounting
principles generally accepted in the United States of America
(“GAAP”).

       

      EBITDA
and free cash flow are not measurements recognized under GAAP.  EBITDA
is defined as earnings before income taxes, interest and
depreciation.  We define free cash flow as net cash provided by
operating activities less purchases of property, plant and equipment (net of
disposals).  EBITDA and free cash flow should not be considered as
alternatives to revenues, net earnings (loss) or any other performance measures
derived in accordance with GAAP, or as alternatives to cash flow from operating
activities as measures of our liquidity. Our management uses free cash flow in
managing our business because we consider it to be an important indicator of our
ability to service our debt and generate cash for acquisitions and other
strategic investments.  We believe free cash flow may provide users of
our financial information an additional meaningful comparison between current
results and results in prior operating periods.

       

      EBITDA
and free cash flow have limitations as analytical tools and you should not
consider them in isolation, or as substitutes for analysis of our results of
operations under GAAP.

       

      OUR
CHAPTER 11 REORGANIZATION

       

      On April
29, 2010 (the “Petition Date”), U.S. Concrete and 43 of its subsidiaries
(collectively with U.S. Concrete, the “Debtors”) filed voluntary petitions for
reorganization under Chapter 11 of the United States Bankruptcy Code (the
“Bankruptcy Code”) in the United States Bankruptcy Court for the District of
Delaware (the “Bankruptcy Court”).  The Bankruptcy Court confirmed the
Plan on July 29, 2010.  We currently anticipate that the Debtors will
emerge from Chapter 11 of the Bankruptcy Code by October 1, 2010 and the closing
of the Subscription Offer will occur on the Effective Date.  We expect
that our balance sheet will be deleveraged significantly, including as a result
of the satisfaction in full of all outstanding indebtedness under our
debtor-in-possession financing (the “DIP Credit Facility”) through the issuance
of the Convertible Notes and borrowings under our new $75.0 million asset-based
revolving credit facility (the “Revolving Facility”), the exchange of the
Existing Notes for equity in Reorganized U.S. Concrete and a full recovery to
holders of General Unsecured Claims (as defined in the Plan), once the Plan
becomes effective.  When we use the term “Old U.S. Concrete” in this
Supplement, we are referring to U.S. Concrete prior to the Effective Date and
when we use the terms “Reorganized U.S. Concrete” and “Reorganized Debtors” in
this Supplement, we are referring to U.S. Concrete and the Debtors,
respectively, on and after the Effective Date.

       

      WHERE
YOU CAN FIND MORE INFORMATION

       

      We file
annual, quarterly and current reports, information statements and other
information with the SEC.  The public may read and copy any materials
we file with the SEC at the SEC’s Public Reference Room at 100 F Street, N.E.,
Washington, D.C. 20549.  The public may obtain information on the
operation of the Public Reference Room by calling the SEC at
1-800-SEC-0330.  The SEC also maintains an Internet site that contains
reports, proxy and information statements, and other information regarding
issuers that file electronically with the SEC.  The address of that
site is http://www.sec.gov.

      
        
           

        

        
          iv

          
            

          

        

        
           

        

      

      We make
available free of charge our Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q, Current Reports on Form 8-K and any amendments to those reports filed
or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”) on the Investor Relations section of
our website at www.us-concrete.com.  Such material is made available
through our website as soon as reasonably practicable after we electronically
file the material with, or furnish it to, the SEC.  The information
contained on our website does not constitute part of this
Supplement.

       

      In
addition, we have agreed that so long as the Convertible Notes constitute
restricted securities within the meaning of Rule 144(a)(3) under the Securities
Act and we are not subject to the information requirements of the Exchange Act,
we will make available, upon request, to any beneficial owner and any
prospective purchaser of Convertible Notes the information required pursuant to
Rule 144A.

       

      INCORPORATION
BY REFERENCE

       

      This
Supplement “incorporates by reference” information that we have filed with the
SEC under the Exchange Act.  This means that we are disclosing
important information to you by referring you to those
documents.  Information contained in any subsequently filed document,
to the extent it modifies information in this Supplement or in any document
incorporated by reference in this Supplement, will automatically update and
supersede the information originally in this Supplement or incorporated by
reference in this Supplement.

       

      We
incorporate by reference the documents listed below (filed under SEC File Number
000-26025) and any future filings by it with the SEC under Sections 13(a),
13(c), 14 or 15(d) of the Exchange Act (other than portions of these documents
that are furnished under item 2.02 or Item 7.01 of a Current Report on Form 8-K,
unless otherwise indicated therein) after the date of this Supplement and prior
to the termination of the Subscription Offer:

       

      
        	
                 
      

              	
                •

              	
                the
      Disclosure Statement;

              

      

       

      
        	
                 
      

              	
                •

              	
                Annual
      Report on Form 10-K for the fiscal year ended December 31, 2009, filed on
      March 16, 2010 (the “2009 10-K);

              

      

       

      
        	
                 
      

              	
                •

              	
                Definitive
      Proxy Statement on Schedule 14A for the 2010 Annual Meeting, filed on
      March 23, 2010;

              

      

       

      
        	
                 
      

              	
                •

              	
                Current
      Reports on Form 8-K filed on May 12, 2010, July 22, 2010, July 28, 2010,
      July 29, 2010, July 30, 2010 and August 6, 2010;
  and

              

      

       

      
        	
                 
      

              	
                •

              	
                Quarterly
      Report on Form 10-Q for the fiscal quarter ended June 30, 2010, filed on
      August 9, 2010 (the “June 2010
10-Q”).

              

      

       

      Any
statement contained herein or contained in a document incorporated by reference
herein shall be deemed to be modified or superseded for purposes of this
Supplement to the extent that a statement contained herein or in any other
subsequently filed document which also is incorporated by reference herein
modifies or supersedes such statement.

       

      You
should rely only on the information contained in this document or to which we
have referred you.  We have not authorized anyone to provide you with
information that is inconsistent with information contained in this document or
any document incorporated herein.  The statements made in this
Supplement are current as of the date of this Supplement, and delivery of this
Supplement or the related materials at anytime does not imply that the
information herein or therein is correct as of any subsequent
date.  If any material change occurs during the period that this
Supplement is required to be delivered, we will disclose such material change by
means of a supplement or amendment to this Supplement, SEC filing or press
release.

      
        
           

        

        
          v

          
            

          

        

        
           

        

      

      You may
request a copy of these filings at no cost, by contacting our Investor Relations
Department:

       

      U.S.
Concrete, Inc.

      Attn:
Investor Relations

      2925
Briarpark, Suite 1050

      Houston,
TX  77042

       

      FORWARD-LOOKING
STATEMENTS

       

      This
Supplement contains (and incorporates by reference) various statements,
including those that express a belief, expectation or intention and those that
are not statements of historical fact, that are “forward-looking statements”
under the Private Securities Litigation Reform Act of 1995.  These
statements may include projections, analyses and estimates (including those set
forth in the Disclosure Statement) concerning our business strategies, revenues,
income, cash flows, capital requirements and enterprise value. Forward-looking
statements generally use words such as “estimate,” “project,” “predict,”
“believe,” “expect,” “anticipate,” “plan,” “forecast,” “budget,” “goal” or other
words that convey the uncertainty of future events or outcomes. In addition,
sometimes we will specifically describe a statement as being a forward-looking
statement and refer to this cautionary statement.

       

      Those
forward-looking statements speak only as of the date on the front cover of this
Supplement. We expressly disclaim any obligation to update or revise those
statements, whether as a result of new information, future events or otherwise,
except as applicable law may require us to do so, and we caution you not to rely
unduly on them. We have based those forward-looking statements on our current
expectations and assumptions about future events, which may prove to be
inaccurate.  Furthermore, the estimated enterprise value for the
Reorganized Debtors (as set forth in the Disclosure Statement) does not purport
to be an estimate of the post-reorganization market value.  Such
trading value, if any, may be materially different from the valuations set forth
in the Disclosure Statement.

       

      While our
management considers those expectations and assumptions to be reasonable, they
are inherently subject to significant business, economic, competitive,
regulatory and other risks, contingencies and uncertainties, most of which are
difficult to predict and many of which are beyond our control. Therefore, actual
results may differ materially and adversely from those expressed in any
forward-looking statements.  Factors that might cause or contribute to
such differences include, but are not limited to, those we discuss in this
Supplement under the heading “Risk Factors” and in other reports we file with
the SEC.  The factors we discuss in this Supplement are not
necessarily all the important factors that could affect
us.  Unpredictable or unknown factors we have not discussed in this
Supplement also could have material adverse effects on actual results of matters
that are the subject of our forward-looking statements.  We do not
intend to update our description of important factors each time a potential
important factor arises.  We advise our existing and potential
security holders that they should (1) be aware that important factors to which
we do not refer in this Supplement could affect the accuracy of our
forward-looking statements and (2) use caution and common sense when considering
our forward-looking statements.

      
        
           

        

        
          vi

          
            

          

        

        
           

        

      

       

      
        
          

        

      

      SUPPLEMENT
SUMMARY

       

      The
following summary is qualified in its entirety by the more detailed information
included in this Supplement and incorporated into this Supplement by
reference.  Because this is a summary, it may not contain all the
information that may be important to you.  You should read the entire
Supplement, as well as the information incorporated by reference, before making
an investment decision.  Except as otherwise stated or required by the
context, the terms “we,” “us,” “the Company” and “our” and refer to U.S.
Concrete and its consolidated subsidiaries, whether before or after the
Effective Date, as applicable.

       

      The
Company

       

      We are a
major producer of ready-mixed concrete, precast concrete products and
concrete-related products in select markets in the United States.  We
operate our business through our ready-mixed concrete and concrete-related
products segment and our precast products concrete segment.  We are a
leading producer of ready-mixed concrete or precast concrete products in
substantially all the markets in which we have
operations.  Ready-mixed and precast concrete products are important
building materials that are used in a vast majority of commercial, residential
and public works construction projects.

       

      All of
our operations are in (and all of our sales are made within) the United
States.  We operate principally in Texas, California, New Jersey/New
York and Michigan, with those states representing 35%, 30%, 15% and 9%,
respectively, of our consolidated revenues from continuing operations for the
year ended December 31, 2009.  According to publicly available
industry information, those states represented an aggregate of 31.4% of the
consumption of ready-mixed concrete in the United States in 2009 (Texas, 13.7%,
California, 10.4%,  New Jersey/New York, 5.3% and Michigan,
2.0%).  Our consolidated revenues from continuing operations for the
year ended December 31, 2009 were $534.5 million, of which we derived
approximately 89.3% from our ready-mixed concrete and concrete-related products
segment and 10.7% from our precast concrete products segment.  For
more  information on our consolidated revenues and results of
operations for the years ended December 31, 2009, 2008 and 2007 and our
consolidated total assets as of December 31, 2009 and 2008, see our Consolidated
Financial Statements included in this report.

       

      As of
March 15, 2010, we had 125 fixed and 11 portable ready-mixed concrete plants,
seven precast concrete plants and seven producing aggregates facilities
(including 27 fixed ready-mixed concrete plants operated by our 60%-owned
Michigan subsidiary).  During 2009, these plants and facilities
produced approximately 4.5 million cubic yards of ready-mixed concrete and
3.0 million tons of aggregates.  We also own two aggregates
facilities that we lease to third parties and retain a royalty on production
from those facilities.

       

      Our
ready-mixed concrete and concrete-related products segment engages principally
in the formulation, preparation and delivery of ready-mixed concrete to the job
sites of our customers.  We also provide services intended to reduce
our customers’ overall construction costs by lowering the installed, or
“in-place,” cost of concrete. These services include the formulation of mixtures
for specific design uses, on-site and lab-based product quality control, and
customized delivery programs to meet our customers’ needs. Our marketing efforts
primarily target concrete sub-contractors, general contractors, governmental
agencies, property owners and developers and home builders whose focus extends
beyond the price of ready-mixed concrete to product quality, on-time delivery
and reduction of in-place costs.  To a lesser extent, this segment is
also engaged in the mining and sale of aggregates and the resale of building
materials, primarily to our ready-mixed concrete customers.  These
businesses are generally complementary to our ready-mixed concrete operations
and provide us opportunities to cross-sell various products in markets where we
sell both ready-mixed concrete and concrete-related products.  We
provide our ready-mixed concrete and concrete-related products from our
continuing operations in north and west Texas, northern California, New Jersey,
New York, Washington, D.C., Michigan and Oklahoma.

       

      Our
precast concrete products segment produces precast concrete products at seven
plants in three states, with five plants in California, one in Arizona and one
in Pennsylvania.  Our customers choose precast technology for a
variety of architectural applications, including free-standing walls used for
landscaping, soundproofing and security walls, panels used to clad a building
façade and storm water drainage.  Our operations also specialize in a
variety of finished products, among which are utility vaults, manholes, catch
basins, highway barriers, curb inlets, pre-stressed bridge girders, concrete
piles and custom-designed architectural products.

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      

      For
financial information regarding our reporting segments, including revenue and
operating income (loss) for the years ended December 31, 2009, 2008 and 2007,
see Note 14 to our Consolidated Financial Statements included in the 2009
10-K.

       

      U.S.
Concrete is a Delaware corporation which was incorporated in 1997.  We
began operations in 1999, which is the year we completed our initial public
offering.

       

      The
Restructuring

       

      On April
29, 2010, the Debtors filed voluntary petitions in the Bankruptcy Court seeking
relief under the provisions of Chapter 11 of Title 11 of the Bankruptcy
Code.  The Chapter 11 cases are being jointly administered under the
caption In re U.S. Concrete, Inc., et al., Case No. 10-11407 (the “Chapter 11
Cases”).  The Debtors continue to operate their businesses and manage
their properties as debtors in possession under the jurisdiction of the
Bankruptcy Court and in accordance with the applicable provisions of the
Bankruptcy Code.

       

      The
Bankruptcy Court confirmed the Plan on July 29, 2010.  We currently
anticipate that the Debtors will emerge from Chapter 11 of the Bankruptcy Code
(the “Emergence”) by October 1, 2010.  We will issue the Convertible
Notes substantially concurrently with the Emergence, on the Effective
Date.  We expect that our balance sheet will be deleveraged
significantly, including as a result of the satisfaction in full of all
outstanding indebtedness under the DIP Credit Facility through the issuance of
the Convertible Notes and borrowings under the Revolving Facility, the exchange
of the Existing Notes for equity in Reorganized U.S. Concrete and a full
recovery to holders of General Unsecured Claims (as defined in the Plan), once
the Plan becomes effective.

       

      For
additional information regarding the events leading to the filing of the Chapter
11 Cases with the Bankruptcy Court, the Plan and the restructuring of the
Debtors pursuant to the Chapter 11 Cases (the “Restructuring”), please see the
Disclosure Statement (which is incorporated by reference
herein).  Please also see “Description of Certain Other Indebtedness”
for a description of the Revolving Facility, which we will enter into in
connection with the Emergence, as part of the Restructuring.

       

      The
Subscription Offer

       

      We are
offering to eligible holders of the Existing Notes the opportunity to subscribe
to purchase an aggregate of $55,000,000 in principal amount of the Convertible
Notes.  Pursuant to the Support Agreement (and subject to the terms
contained therein), the Purchasing Parties have granted the Put Option to U.S.
Concrete pursuant to which U.S. Concrete has the right, upon notice to the
Purchasing Parties, to require each Purchasing Party and its designated
affiliates to purchase up to $18.33 million in aggregate principal amount
of the Convertible Notes in the event that $55.0 million of Convertible
Notes are not otherwise subscribed for purchase by eligible holders of the
Existing Notes.  If no Convertible Notes are subscribed for by
eligible holders, the Purchasing Parties, upon notice by U.S. Concrete in
connection with exercise of the Put Option, will be required to purchase
$55.0 million in aggregate principal amount of the Convertible Notes in
accordance with the Support Agreement.

       

      Recent
Developments

       

      As
described in our Current Report on Form 8-K filed with the SEC on August 6,
2010, we entered into a redemption agreement with Superior Materials Holdings,
LLC, our Michigan joint venture (“Superior”), and Edw. C. Levy Co. on August 5,
2010 (the “Redemption Agreement”) providing for the redemption of our interest
in Superior upon the satisfaction of the conditions set forth in the Redemption
Agreement.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

      Summary
of Subscription Offer

       

      The
following is a summary of the terms of the Subscription Offer.

       

      
        
          
            	
                    Subscription
      Offer

                  	 	
                    Upon
      the terms and subject to the conditions set forth in this Supplement, we
      are offering eligible holders of Existing Notes the opportunity to
      subscribe to purchase an aggregate of $55,000,000 in principal amount of
      Convertible Notes at an offering price of 100%.  Eligible
      holders of Existing Notes that subscribe to purchase Convertible Notes may
      elect to subscribe to purchase up to the amount (with a minimum
      subscription of $1,000 and in minimum incremental multiples of $1,000
      above $1,000 or if less, the full amount) equal to the product (rounded
      down to the nearest $1,000) of (a) a fraction, the numerator of which is
      the aggregate principal amount of Existing Notes held by such eligible
      holder as of the Record Date, and the denominator of which is
      $272,567,000, which is the aggregate principal amount of all Existing
      Notes outstanding as of the Record Date (excluding the aggregate principal
      amount of Existing Notes owned by the Company as of such date) and (b)
      $55,000,000, which is the aggregate principal amount of Convertible Notes
      to be offered in the Subscription Offer (such product, the “Pro Rata
      Portion”).  You may not subscribe for more than your Pro Rata
      Portion.

                  
	 	 	 
	
                    Holders
      Eligible to Participate in Subscription Offer

                  	 	
                    We
      will conduct the Subscription Offer in accordance with the applicable
      requirements of the Securities Act, and the rules and regulations of the
      SEC thereunder.  Prior to distribution of this Supplement, we
      distributed to each holder of Existing Notes an Eligibility Questionnaire
      requesting certification that it is a QIB or an institutional accredited
      investor.  Only holders of Existing Notes that are QIBs or
      institutional accredited investors, based on certifications made in their
      Eligibility Questionnaires, are eligible to receive this Supplement and
      participate in the Subscription Offer by completing their Subscription
      Certificates, in accordance with the directions set forth
      thereon.

                  

          

        

      

      

      
        
          
            	
                    Purchase
      Agreement

                  	 	
                    The
      purchase of Convertible Notes by electing holders will be made pursuant to
      the Purchase Agreement.  The issuance and sale of the
      Convertible Notes under the Purchase Agreement is subject to certain
      significant conditions, as described in “Subscription Offer—Purchase
      Agreement”

                     

                    As
      of the Subscription Acceptance Date (as defined below), each eligible
      holder that submitted a Subscription Certificate which we accepted (as set
      forth on the Subscription Acceptance Notice) shall automatically become a
      party to and bound by the terms and conditions of the Purchase Agreement
      and shall be obligated to purchase the Convertible Shares which it
      subscribed to purchase, as set forth on its Subscription
      Certificate.  We shall provide notice on the Subscription
      Acceptance Date to any holder that validly submitted and did not withdraw
      a Subscription Certificate as of the Subscription Offer Expiration Time if
      we elect not to accept such Subscription Certificate.  We currently expect to
      deliver the Subscription Acceptance Notice on Thursday, August 26,
      2010 (the “Subscription Acceptance Date”).

                     

                    Except
      as described below in “—Purchasing Party Specific Subscription
      Instructions,” each eligible holder set forth on the Subscription
      Acceptance Notice shall also be responsible for causing its broker, dealer
      or other nominee to deliver its Subscription Payment to the Escrow Agent
      in accordance with the directions set forth in the Subscription
      Certificate on or prior to 5:00 p.m. New York City time on the business
      day immediately following the Subscription Acceptance Date (the
      “Subscription Payment Deadline”).  We currently expect
      for the Subscription Payment Deadline to occur on Friday, August 27,
      2010.  All eligible holders participating in the
      Subscription Offer that are not Purchasing Parties shall be obligated to
      cause their broker, dealer or other nominee to deliver their Subscription
      Payment by the Subscription Payment Deadline.  We currently expect
      for the Convertible Notes Closing Date to occur on Tuesday, August 31,
      2010.

                  

          

        

      

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      
        

      

      
        
          
            
              
                
                  	 
      	 	
                          Any
      subscription for which the Escrow Agent does not receive the related
      Subscription Payment on or prior to the Subscription Payment Deadline
      shall be null and void as such time.

                           

                          Prior
      to U.S. Concrete’s delivery of the Subscription Acceptance Notice to the
      Subscription Agent, (i) the Purchase Agreement shall not constitute a
      binding obligation of U.S. Concrete, the guarantors, or any eligible
      holder and (ii) none of U.S. Concrete, the guarantors, nor any eligible
      holder shall have any rights or obligations under the Purchase
      Agreement.

                        
	 	 	 
	
                          Support
      Agreement

                        	 	
                          Pursuant
      to the terms of the Support Agreement, the Purchasing Parties have agreed
      to purchase their Pro Rata Portion of the Convertible Notes and have
      granted the Put Option to U.S. Concrete.  Upon exercise by U.S.
      Concrete of the Put Option, each Purchasing Party and its designated
      affiliates will be required to purchase up to $18.33 million in
      aggregate principal amount of the Convertible Notes in the event that
      eligible holders of the Existing Notes have not subscribed to purchase
      $55.0 million of Convertible Notes.  We have agreed to pay
      an aggregate commitment fee of $1,100,000 to the Purchasing Parties for
      their grant of the Put Option, with such fee earned, due and payable upon
      the issuance of the Convertible Notes on the Convertible Notes Closing
      Date.  See “The Support Agreement.”

                        
	 	 	 
	
                          Subscription
      Offer Expiration Time; Extensions

                        	 	
                          The Subscription Offer
      will expire at 5:00 p.m. New York City time on Thursday, August 26,
      2010 (the “Subscription Offer Expiration Time”), unless extended or
      earlier terminated by us.  We may extend or terminate the
      Subscription Offer Expiration Time at any time and for any reason in our
      sole discretion.  We are under no obligation to accept any
      subscriptions made during the Subscription Offer.

                        
	 	 	 
	
                          Subscription
      Acceptance Date; Extensions

                        	 	
                          Upon
      or following the Subscription Offer Expiration Time, we may accept any,
      all or none of the Subscription Certificates delivered to the Subscription
      Agent by the Subscription Offer Expiration Time in accordance with the
      terms of the Subscription Certificate, by delivering a Subscription
      Acceptance Notice to the Subscription Agent.  Upon delivery of
      the Subscription Acceptance Notice, the eligible holders associated with
      the accepted Subscription Certificates (as set forth on the Subscription
      Acceptance Notice) shall (i) automatically become parties to and bound by
      the terms and conditions of the Purchase Agreement and the Registration
      Rights Agreement and (ii) become obligated to purchase the Convertible
      Shares which they subscribed to purchase, as set forth on the related
      Subscription Certificates.  U.S. Concrete will not be under any
      obligation to accept any Subscription Certificates; provided, that we
      shall notify the eligible holder associated with any Subscription
      Certificate validly delivered and not withdrawn as of the Subscription
      Offer Expiration Time if we do not accept such Subscription Certificate on
      the Subscription Acceptance
Date.

                        

                

              

            

          

        

      

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      
        

      

      
        
          
            
              
                	
                        Revocation
      and Withdrawal Rights

                      	 	
                        You
      may not revoke, withdraw or otherwise cancel previously delivered
      Subscription Materials after the Subscription Offer Expiration
      Time.   The Subscription Parties may not revoke, withdraw
      or otherwise cancel previously delivered Subscription Materials at any
      time, except to the extent permitted by the Support
    Agreement.

                      
	 	 	 
	
                        Method
      of Subscription

                      	 	
                        Except
      as set forth below in “—Purchasing Party Specific Subscription
      Instructions,” you may subscribe to purchase Convertible Notes by causing
      your broker, custodian bank or other nominee to deliver the following
      materials: (i) to the Subscription Agent, your properly completed and
      executed Subscription Certificate with any required signature guarantees
      or other supplemental documentation, for actual receipt prior to the
      Subscription Offer Expiration Time and (ii) to the Escrow Agent, your
      Subscription Payment in accordance with the instructions accompanying the
      Subscription Certificate, for actual receipt prior to the Subscription
      Payment Deadline.  You must deliver your Subscription
      Certificate and your Subscription Payment to your broker, custodian bank
      or other nominee in accordance with instructions provided by such entity
      so that such broker, custodian bank or other nominee has sufficient time
      to complete your Subscription Certificate and deliver it, on your behalf,
      to the Subscription Agent on or prior to the Subscription Offer Expiration
      Time and to deliver such amounts on your behalf to the Escrow Agent prior
      to the applicable deadline.

                         

                        By
      having its broker, custodian bank or other nominee deliver its
      Subscription Certificate in accordance with the instructions set forth
      herein, on the Subscription Certificate and with the instructions
      previously delivered to such broker, custodian bank or other nominee, each
      electing holder for which U.S. Concrete has accepted its subscription
      will, at the Subscription Acceptance Date, become party to and be bound by
      the terms and conditions of (i) the Purchase Agreement and (ii) the
      Registration Rights Agreement.  If such broker, custodian bank
      or other nominee, however, fails to deliver any portion of the
      Subscription Payment or the Put Participation Payment, if applicable, for
      any such electing holder on or prior to the applicable deadline, the
      related subscription shall be void as of such
      deadline.   As discussed below, U.S. Concrete shall be able
      to exercise all of its rights and remedies under the Support Agreement in
      the event the Escrow Agent does not receive the full Subscription Payment
      and full Put Participation Payment, if any, for each Purchasing Party by
      the Purchasing Party Payment Deadline.

                         

                        We
      provide more details on how to exercise subscription rights under “The
      Subscription Offer.”

                      
	 	 	 
	
                        Purchasing
      Party Specific Subscription Instructions

                      	 	
                        If
      you are a Purchasing Party, you shall cause your broker, custodian bank or
      other nominee to deliver the following materials: (i) to the Subscription
      Agent, your properly completed and executed Subscription Certificate with
      any required signature guarantees or other supplemental documentation, for
      actual receipt prior to the Subscription Offer Expiration Time and (ii) to
      the Escrow Agent, your Subscription Payment and Put Participation Payment,
      if any, in accordance with the instructions accompanying the Subscription
      Certificate, for actual receipt prior to 5:00 p.m. New York City time on
      the business day immediately prior to the Convertible Notes Closing Date
      (the “Purchasing Party Payment Deadline”).  We currently expect
      for the Purchasing Party Payment Deadline to occur Monday, August 30,
      2010.   U.S. Concrete shall be able to exercise all
      of its rights and remedies under the Support Agreement in the event any
      Purchasing Party fails to deliver any portion of its Subscription Payment
      or Put Participation Payment, if any, by the Purchasing Party Payment
      Deadline.

                         

                        We
      provide more details about the Subscription Offer and the related
      mechanics under “The Subscription
Offer.”

                      

              

            

          

        

      

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      
        

      

      
        
          
            	
                    Subscription
      Agent; Escrow Agent

                  	 	
                    The
      Subscription Agent and Escrow Agent for the Subscription Offer is Wells
      Fargo Bank, National Association.  The address for delivery to
      Wells Fargo Bank, National Association is: Wells Fargo Bank, National
      Association, 45 Broadway, 14th
      Floor, New York, New York  10006.  Your must instruct
      your broker, custodian bank or other nominee to (i) complete your
      Subscription Certificate and deliver such Subscription Certificate to the
      Subscription Agent and (ii) deliver your Subscription Payment and Put
      Participation Payment, if applicable, to the Escrow Agent, in each case in
      accordance with the instructions set forth herein, in the Subscription
      Certificate and in the instructions previously delivered to your broker,
      custodian bank or other nominee.

                  
	 	 	 
	
                    Settlement
      Agent

                  	 	
                    The
      Settlement Agent for the Subscription Offer is U.S. Bank National
      Association.  You should call U.S. Bank National Association at
      (615) 251-0733 with any questions regarding delivery of the Convertible
      Notes..

                  

          

        

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      

      Summary
of Terms of the Convertible Notes

       

      The
following is a summary of some of the terms of the Convertible
Notes.

       

      
        
          
            	
                    Issuer

                  	 	
                    U.S.
      Concrete, Inc.

                  
	 
      	 	 
      
	
                    Securities
      Offered

                  	 	
                    $55,000,000
      in aggregate principal amount of the Convertible Notes.

                  
	 
      	 	 
      
	
                    Maturity
      Date

                  	 	
                    The
      fifth anniversary of the original date of issuance (the “Maturity
      Date”).

                  
	 
      	 	 
      
	
                    Interest
      Rates and Payment Dates

                  	 	
                    The
      Convertible Notes will bear interest at 9.5% per year (calculated using a
      360-day year consisting of twelve 30-day months), payable quarterly in
      cash in arrears.

                  
	 
      	 	 
      
	
                    Use
      of Proceeds

                  	 	
                    We
      intend to use the proceeds from the issuance and sale of Convertible Notes
      to repay the DIP Credit Facility, for working capital and for general
      corporate purposes.

                  
	 
      	 	 
      
	
                    Conversion
      Rights

                  	 	
                    The
      Convertible Notes will be convertible, at the option of the holder, at any
      time on or prior to maturity, into shares of Common Stock, at an initial
      conversion rate of 95.23809524 shares of Common Stock per $1,000 principal
      amount of Convertible Notes (as may be adjusted from time to time, the
      “conversion rate”).  Holders of Convertible Notes shall have the
      right to convert all or any portion of their Convertible Notes into the
      number of shares of Common Stock equal to the principal amount of the
      Convertible Notes to be converted divided by the conversion rate then in
      effect.

                     

                    The
      conversion rate is subject to adjustment to prevent dilution resulting
      from stock splits, stock dividends, combinations or similar
      events.  There will be no limitation as to the principal amount
      of the Convertible Notes you can convert at any time.

                     

                    In
      connection with any such conversion, holders of the Convertible Notes to
      be converted shall also have the right to receive accrued and unpaid
      interest on such Convertible Notes to the date of conversion (the “Accrued
      Interest”).  We may elect to pay the Accrued Interest in cash or
      in shares of Common Stock.  If we elect to satisfy our
      obligation to pay the Accrued Interest in shares, the number of shares
      issuable shall be determined by dividing the Accrued Interest by 95% of
      the trailing 10-day volume-weighted average price of the Common
      Stock.

                     

                    See
      “Description of Common Stock” for information regarding certain terms of
      the Common Stock.

                  

          

        

      

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      
        

      

      
        
          
            
              	
                      Additional
      Conversion Rights

                    	 	
                      If
      the closing price of the Common Stock exceeds 150% of the Conversion Price
      (as defined below) then in effect for at least 20 trading days during any
      consecutive 30-day trading period (the “Conversion Event”), we may
      provide, at our option,  written notice (the “Conversion Event
      Notice”) of the occurrence of the Conversion Event to each holder of
      Convertible Notes in accordance with the indenture governing the
      Convertible Notes (in the form attached hereto as Exhibit D, the
      “Convertible Notes Indenture”) and file a press release or Form 8-K with
      the SEC regarding the occurrence of the Conversion
      Event.  “Conversion Price” means, per share of Common Stock,
      $1,000 divided by the applicable conversion rate, subject to
      adjustment.  As of the date of the Convertible Notes Indenture,
      the Conversion Price will be approximately $10.50.  Except as
      set forth in an Election Notice (as defined below), the right to convert
      Convertible Notes with respect to the occurrence of the Conversion Event
      shall terminate on the date that is 46 days following the date of the
      Conversion Event Notice (the “Conversion Termination Date”), such that you
      shall have a 45-day period in which to convert your Convertible Notes up
      to the amount of the Conversion Cap (as defined below).  Any
      Convertible Notes not converted prior to the Conversion Termination Date
      as a result of the Conversion Cap shall be, at your election and upon
      written notice to U.S. Concrete (the “Election Notice”), converted into
      shares of Common Stock on a date or dates prior to the date that is 180
      days following the Conversion Termination Date (such date or dates to be
      specified in your Election Notice).  A holder shall deliver an
      Election Notice specifying its election with respect to the Conversion
      Event on or prior to the Conversion Termination Date.  As used
      herein, “Conversion Cap” means the number of shares of Common Stock into
      which the Convertible Notes are convertible and that would cause the
      related holder to “beneficially own” (as such term is used in the Exchange
      Act) more than 9.9% of the Common Stock at any time
      outstanding.

                       

                      Any
      Convertible Notes not otherwise converted prior to the Conversion
      Termination Date or specified for conversion in an Election Notice shall
      be redeemable, in whole or in part, at U.S. Concrete’s election at any
      time prior to maturity at par plus accrued and unpaid interest thereon to
      the Conversion Termination Date.

                       

                      Interest
      on all Convertible Notes shall cease to accrue on the Conversion
      Termination Date and the covenants and related events of default contained
      in the Convertible Notes Indenture shall cease to be of any force and
      effect on the Conversion Termination Date (other than U.S. Concrete’s
      obligation to covert, redeem or pay at maturity Convertible
      Notes).  The collateral securing the Convertible Notes and the
      guarantees of U.S. Concrete’s obligations thereunder and under the
      Convertible Notes Indenture shall be released on the Conversion
      Termination Date.

                       

                      If
      the Conversion Event occurs on or prior to the second anniversary of the
      original issue date of the Convertible Notes (the “Issue Date”), in
      addition to the shares issuable upon conversion or amounts received upon
      redemption, as applicable, the holders of the Convertible Notes shall have
      a right to receive upon conversion, redemption or
      maturity, as
      applicable, the lesser of: (i) the aggregate amount of interest
      that would be payable from the Conversion Termination Date through the
      second anniversary of the Issue Date (including any accrued and unpaid
      interest on such Convertible Notes to the Conversion Termination Date (or
      conversion date, if earlier)) and (ii) an aggregate amount equal to 15
      months of interest (including any accrued and unpaid interest on such
      Convertible Notes to the Conversion Termination Date (or conversion date,
      if earlier)) (the amounts in clauses (i) and (ii), the “Cash Conversion
      Amount”).  We may elect to pay the Cash Conversion Amount in
      cash or in shares of Common Stock.  If we elect to satisfy our
      obligation to pay the Cash Conversion Amount in shares, the number of
      shares issuable shall be determined by dividing the Cash Conversion Amount
      by 95% of the trailing 10-day volume-weighted average price of the Common
      Stock from the Conversion Termination Date.

                       

                      We
      shall pay the Cash Conversion Amount as follows:  (i) on the
      Conversion Termination Date for all Convertible Notes converted prior to
      such date, (ii) on the date or dates specified in the Election Notice, if
      any, and (iii) on the date of the redemption or at maturity, as
      applicable, for all other Convertible
Notes.

                    

            

          

        

      

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      
        

      

      
        
          
            	
                    Fundamental
      Change of Control Make Whole; Repurchase Right

                  	 	
                    Upon
      the occurrence of a Fundamental Change of Control (as defined below), in
      addition to any conversion rights the holders of Convertible Notes may
      have, each holder of Convertible Notes will have (i) a make-whole
      provision calculated as provided in Schedule I to the draft Convertible
      Notes Indenture attached hereto as Exhibit D
      pursuant to which each holder may be entitled to additional shares of
      Common Stock upon conversion (the “Make Whole Premium”), and (ii) an
      amount equal to the interest on such Convertible Notes that would have
      been payable from the date of the occurrence of such Fundamental Change of
      Control (the “Fundamental Change of Control Date”) through the third
      anniversary of the Issue Date, plus any accrued and unpaid interest from
      the Issue Date to the Fundamental Change of Control Date (the amount in
      this clause (ii), the “Make Whole Payment” and collectively with the Make
      Whole Premium, the “Fundamental Change of Control Make
      Whole”).  We may elect to pay the Make Whole Payment in cash or
      in shares of Common Stock.  If we elect to satisfy our
      obligation to make the Make Whole Payment in Common Stock, the number of
      shares issuable shall be determined by (A) if the Fundamental Change of
      Control is a merger or consolidation described in clause (i) of the
      related definition (as set forth below) and all of the Common Stock as of
      such Fundamental Change of Control Date is exchanged for stock of the
      acquirer, dividing the Make Whole Payment by the implied price per share
      for the Common Stock in connection with such Fundamental Change of
      Control, with such shares being treated the same as all other shares of
      Common Stock in such Fundamental Change of Control and (B) in all other
      cases, dividing the Make Whole Payment by 95% of the trailing 10-day
      volume-weighted average price of the Common Stock immediately prior to
      such Fundamental Change of Control.

                     

                    In
      lieu of the foregoing, upon the occurrence of a Fundamental Change of
      Control, the holders of Convertible Notes shall have the right to require
      us to repurchase their Convertible Notes in cash at par plus accrued and
      unpaid interest thereon.

                     

                    A
      “Fundamental Change of Control” shall be deemed to occur at such time as:
      (i) Reorganized U.S. Concrete consolidates with or merges with or into
      another person (other than any subsidiary of Reorganized U.S. Concrete or
      a merger for the purpose of changing Reorganized U.S. Concrete’s
      jurisdiction of incorporation) and its outstanding voting securities are
      reclassified into, converted for or converted into the right to receive
      any other property or security, or Reorganized U.S. Concrete sells,
      conveys, transfers or leases all or substantially all of its properties
      and assets to any person (other than its subsidiary); provided that
      the foregoing shall not constitute a fundamental change of control: (A) if
      persons that beneficially own Reorganized U.S. Concrete’s voting
      securities immediately prior to the transaction own, directly or
      indirectly, a majority of the voting securities of the surviving or
      transferee person immediately after the transaction in substantially the
      same proportion as their ownership of Reorganized U.S. Concrete’s voting
      securities immediately prior to the transaction or (B) if (1) at
      least 90% of the consideration paid for the Common Stock (and cash
      payments pursuant to dissenter’s appraisal rights) in the merger or
      consolidation consists of common stock of a U.S. or non-U.S. company
      traded on a national securities exchange (or which will be traded or
      quoted when issued or exchanged in connection with such transaction) and
      (2) the market capitalization of the acquirer is at least equal to or
      greater than the market capitalization of Reorganized U.S. Concrete on the
      trading day immediately preceding the day on which such merger or
      consolidation is publicly announced; (ii) any “person” or “group” (as such
      terms are used for purposes of Sections 13(d) and 14(d) of the Exchange
      Act, whether or not applicable), other than Reorganized U.S. Concrete or
      any of its subsidiaries or any employee benefit plan of it or such
      subsidiary, is or becomes the “beneficial owner,” directly or indirectly,
      of more than 50% of the total voting power in the aggregate of all classes
      of Reorganized U.S. Concrete’s capital stock then outstanding and entitled
      to vote generally in elections of directors; or (iii) during any period of
      12 consecutive months after the date of Issue Date, persons who at the
      beginning of such 12 month period constituted Reorganized U.S. Concrete’s
      Board of Directors (the “Board”), together with any new persons whose
      election was approved by a vote of a majority of the persons then still
      comprising the Board who were either members of the Board at the beginning
      of such period or whose election, designation or nomination for election
      was previously so approved, cease for any reason to constitute a majority
      of the Board.

                  

          

        

      

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      
        

      

      
        
          
            
              
                	 
      	 	
                        A
      Purchaser Party (as defined below) shall not be entitled to receive a
      Fundamental Change of Control Make Whole upon the occurrence of a
      Fundamental Change of Control if (i) such Fundamental Change of Control is
      a merger, consolidation or sale with or into such Purchaser Party or any
      member of any “group” of which such Purchaser Party is a member or any of
      their respective affiliates; (ii) such Fundamental Change of Control is a
      transaction specified in clause (ii) of the Fundamental Change of Control
      definition and such Purchaser Party or any of its affiliates is a “person”
      or member of a “group” for purposes of such clause (ii); or (iii) the
      nominees of any such Purchaser Party or any member of any “group” which
      such Purchaser Party is a member or any of their respective affiliates
      constitute one or more of the new board members effecting such Fundamental
      Change of Control.  A “Purchaser Party” means any beneficial
      owner who acquired Convertible Notes from the issuer on the Issue
      Date.

                      
	 	 	 
	
                        Redemption

                      	 	
                        Other
      than as provided under “Additional Conversion Rights” with respect to the
      Conversion Event, we will not have the right to redeem the Convertible
      Notes.

                      
	 	 	 
	
                        Ranking

                      	 	
                        The
      Convertible Notes and the guarantees thereof will be the issuer’s and the
      guarantors’ senior secured obligations and will:

                         

                        ·    
      rank senior in right of payment to any of the issuer’s and the
      guarantors’ existing and future subordinated indebtedness,

                         

                        ·    
      rank equally in right of payment with all of the issuer’s and the
      guarantors’ existing and future senior indebtedness;

                         

                        ·    
      be effectively subordinated to all of our obligations under the
      Revolving Facility, to the extent of the value of collateral securing
      those obligations on a first-priority basis;

                         

                        ·    
      rank effectively senior in right of payment to any of the issuer’s
      and the guarantors’ unsecured indebtedness to the extent of the value of
      the collateral for the Convertible Notes; and

                         

                        ·   
      be structurally subordinated in right of payment to all existing
      and future indebtedness and other liabilities of the issuer’s
      non-guarantor subsidiaries.

                      
	 	 	 
	
                        Guarantees

                      	 	
                        The
      Convertible Notes will be guaranteed by each of our existing and future
      direct or indirect domestic restricted subsidiaries (other than certain
      immaterial restricted subsidiaries) and any other of our subsidiaries that
      guarantee the Revolving Facility (collectively, the
      “guarantors”).

                      

              

            

          

        

      

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      
        

      

      
        
          
            	
                    Collateral

                  	 	
                    The
      Convertible Notes and related guarantees will be secured by first-priority
      liens on certain of the property and assets directly owned by U.S.
      Concrete and each of the guarantors, including material owned real
      property, fixtures, intellectual property, capital stock of subsidiaries
      and certain equipment, subject to permitted liens (including a
      second-priority lien in favor of the administrative agent under the
      Revolving Facility (the “Revolving Facility Agent”)) and certain
      exceptions (as described in the security documents governing the
      Convertible Notes (collectively, the “Convertible Notes Security
      Documents”)).  Obligations under the Revolving Facility and
      those in respect of hedging and cash management obligations owed to the
      lenders (and their affiliates) a party to the Revolving Facility
      (collectively, the “Revolving Facility Obligations”) will be secured by a
      second-priority lien on such collateral.

                     

                    The
      Convertible Notes and related guarantees will also be secured by a
      second-priority lien on the assets of the issuer and the guarantors
      securing the Revolving Facility Obligations on a first-priority basis,
      including, inventory (including as extracted collateral), accounts,
      certain specified mixture trucks, chattel paper, general intangibles
      (other than collateral securing the Convertible Notes on a first-priority
      basis), instruments, documents, cash, deposit accounts, securities
      accounts, commodities accounts, letter of credit rights and all supporting
      obligations and related books and records and all proceeds and products of
      the foregoing, subject to permitted liens and certain exceptions, as
      described in the Convertible Notes Security Documents.

                     

                    A
      material portion of the collateral which secures the Convertible Notes
      will secure the Revolving Facility Obligations on a first-priority basis
      and will secure the Convertible Notes on a second-priority
      basis.  The remaining collateral which secures the Convertible
      Notes (on a first-priority basis) will secure obligations under the
      Revolving Facility Obligations on a second-priority basis.  See
      “Risk Factors—Risks Related to the Convertible Notes and the Common
      Stock—There may not be sufficient collateral to pay all or any of the
      Convertible Notes.”

                  
	 	 	 
	
                    Intercreditor
      Agreement

                  	 	
                    Upon
      the issuance of the Convertible Notes, U.S. Concrete and the guarantors
      will enter into an intercreditor agreement with the collateral agent under
      the Convertible Notes Security Documents (the “Collateral Agent”) and the
      Revolving Facility Agent (the “Intercreditor Agreement”).

                     

                    The
      Intercreditor Agreement will set forth the terms on which the Revolving
      Facility Agent and the Collateral Agent are permitted to receive, hold,
      administer, maintain, enforce and distribute the proceeds of their
      respective liens upon the collateral.  The Intercreditor
      Agreement grants (i) to the Revolving Facility Agent, the exclusive right
      to enforce rights, exercise remedies (including setoff) and make
      determinations regarding the release, disposition, or restrictions of the
      collateral which secures the Revolving Facility Obligations on a
      first-priority basis and (ii) to the Collateral Agent under the
      Convertible Notes Security Documents, the exclusive right to enforce
      rights, exercise remedies (including setoff) and make determinations
      regarding the release, disposition, or restrictions of the collateral
      which secures the Convertible Notes on a first-priority basis, in each
      case subject to limitations described therein, which limitations shall
      include an access right of the Revolving Facility Agent to exercise
      remedies in respect of its assets located on real property on which the
      Collateral Agent has a first-priority lien under the Convertible Notes
      Security Documents.

                  

          

        

        

          
            
               

            

            
              11

              
                

              

            

            
               

            

          

        

      

      
        

      

      
        
          
            
              	 
      	 	
                      See
      “Description of Intercreditor Agreement” for information regarding certain
      terms of the Intercreditor Agreement.

                    
	 	 	 
	
                      Certain
      Covenants

                    	 	
                      The
      Convertible Notes Indenture will, among other things, limit the issuer’s
      ability and the ability of the issuer’s restricted subsidiaries to, among
      other things:

                       

                      ·    
      incur additional indebtedness or issue disqualified stock or
      preferred stock;

                       

                      ·    
      pay dividends or make other distributions or repurchase or redeem
      the issuer’s stock or subordinated indebtedness or make
      investments;

                       

                      ·    
      sell assets and issue capital stock of the issuer’s restricted
      subsidiaries;

                       

                      ·    
      incur liens;

                       

                      ·    
      enter into agreements restricting the issuer’s restricted
      subsidiaries’ ability to pay dividends;

                       

                      ·    
      enter into transactions with affiliates;

                       

                      ·    
      consolidate, merge or sell all or substantially all of our assets;
      and

                       

                      ·    
      designate the issuer’s subsidiaries as unrestricted
      subsidiaries.

                       

                      These
      covenants are subject to important exceptions and qualifications, which
      are described in the Convertible Notes Indenture.

                    
	 	 	 
	
                      Registration
      Rights

                    	 	
                      Under
      the Registration Rights Agreement, we will agree to use our commercially
      reasonable efforts to:

                       

                      ·        
      file a registration statement for a shelf registration on Form S-1
      with the SEC covering the resale by the Electing Holders (as defined
      below) of Convertible Notes that are Registrable Securities (as defined
      below) as of such date, on a delayed or continuous basis (the “Notes Form
      S-1 Shelf”), by the first business day following the date that is 366 days
      following the Issue Date (the “Notes Registration Deadline”);

                       

                      ·        
      cause the Notes Form S-1 Shelf to be declared effective by the SEC
      as soon as practicable following the filing of such registration
      statement;

                       

                      ·        
      file a registration statement for a shelf registration on Form S-1
      with the SEC covering the resale of shares of Common Stock that constitute
      Registrable Securities by the Electing Holders, on a delayed or continuous
      basis (the “Common Stock Form S-1 Shelf” and collectively with the Notes
      Form S-1 Shelf, the “Form S-1 Shelf Registration Statements”), within 180
      days of the Issue Date (the “Common Stock Registration Deadline”);
      and

                       

                      ·        
      convert each of the Registration Statements on Form S-1 (or similar
      long form) into a registration statement for a shelf registration on Form
      S-3 (a “Form S-3 Shelf Registration Statement” and collectively with the
      Form S-1 Shelf Registration Statements, the “Shelf Registration
      Statements”) as soon as practicable after U.S. Concrete becomes eligible
      to use Form S-3.

                    

            

          

        

      

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      

      
        
          
            
              
                
                  	 
      	 	
                          As
      used herein, “Registrable Securities” means any and all (i) Convertible
      Notes, (ii) shares of Common Stock issued upon conversion of the
      Convertible Notes and (iii) shares of Common Stock which may be issued by
      U.S. Concrete in order to pay interest and/or premiums and/or other
      amounts to the Holders (as defined below) in accordance with the
      provisions of the Convertible Notes Indenture.  Registrable
      Securities will cease to be Registrable Securities when (w) a registration
      statement covering such Registrable Securities has been declared effective
      under the Securities Act by the SEC and such Registrable Securities have
      been disposed of pursuant to such effective registration statement, (x)
      such securities (other than Registrable Securities that are Convertible
      Notes) have been disposed of in accordance with Rule 144 promulgated under
      the Securities Act, (y) the entire amount of Registrable Securities held
      by any Holder may be sold by such Holder, in the opinion of counsel
      reasonably satisfactory to U.S. Concrete, without any limitation as to
      volume, manner of sale or information requirements pursuant to Rule 144
      promulgated under the Securities Act or (z) they have ceased to be
      outstanding.    See “The Registration Rights
      Agreement.”

                           

                          As
      used herein, “Holder” means each person for so long as it holds any
      Registrable Securities and each of its successors and assigns and direct
      and indirect transferees who beneficially own (as such term is defined
      under and determined pursuant to Rules 13d-3 and 13d-5 promulgated under
      the Exchange Act) Registrable Securities. “Electing Holder” means a Holder
      of Registrable Securities who provided U.S. Concrete with a “Notice and
      Questionnaire” (in the form attached as Annex A to the Registration Rights
      Agreement and in accordance with the terms and conditions of the
      Registration Rights Agreement).

                           

                          We
      are required to pay special interest if we fail to file the Notes Form S-1
      Shelf by the Notes Registration Deadline or the Common Stock Form S-1
      Shelf by the Common Stock Registration Deadline, with respect to any
      Registrable Securities that are Convertible Notes and are Restricted
      Securities (as defined in the Convertible Notes Indenture).  See
      “The Registration Rights Agreement.”

                        
	 	 	 
	
                          Transfer
      Restrictions

                        	 	
                          The
      Convertible Notes have not been registered under the Securities Act and
      may not be offered or sold in the U.S. or to, or for the account or
      benefit of, U.S. persons, except in accordance with an applicable
      exemption from the registration requirements of the Securities
      Act.  The Convertible Notes are being offered and issued only to
      QIBs and institutional accredited investors.  See “Transfer
      Restrictions.”

                        
	 	 	 
	
                          Absence
      of Public Market

                        	 	
                          The
      Convertible Notes are a new issue of securities for which there is no
      established public market.  We do not intend to have the
      Convertible Notes listed on a national securities
  exchange.

                        
	 	 	 
	
                          Book-Entry
      Form

                        	 	
                          The
      Convertible Notes will be issued only in book-entry form, which means that
      they are represented by one more permanent global securities registered in
      the name of The Depositary Trust Company or its nominee.  The
      global securities are deposited with the Trustee as custodian for the
      depositary.  See “Book-Entry; Delivery and
  Form.”

                        
	 	 	 
	
                          Trustee/Collateral
      Agent

                        	 	
                          U.S.
      Bank National
Association

                        

                

              

            

          

        

      

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      RISK
FACTORS

       

      Participating in the Subscription
Offer involves risks.  You should carefully consider the following
risks.  You should also consider the other information contained in
this Supplement and the documents incorporated by reference into this Supplement
(including the risk factors contained in the Disclosure Statement, the 2009 10-K
and the June 2010 10-Q and any other documents we file with the SEC after the
date of this Supplement) before purchasing any Convertible Notes.  The
risks described below and in these other documents are not the only ones we
face.  Additional risks and uncertainties not presently known to us or
that we currently believe to be immaterial could also impair our business,
operating results or financial condition.

       

      Risks
Related to US Concrete’s Recently Completed Reorganization

       

      Substantially
concurrently with the issuance of the Convertible Notes, we will emerge from
Chapter 11 reorganization.

       

      We sought
protection under Chapter 11 of the Bankruptcy Code on April 29,
2010.  The Bankruptcy Court approved the Plan on July 29, 2010 and we
will have emerged from bankruptcy immediately prior to issuing the Convertible
Notes.  Notwithstanding this anticipated emergence, we have incurred
operating and net losses in connection with operating our business, and may
continue to experience losses. We realized a net loss from continuing operations
of $94.9 million for the fiscal year ended December 31, 2009, a net loss
from continuing operations of $135.9 million for the fiscal year ended
December 31, 2008 and a net loss of $65.1 million for the fiscal year ended
December 31, 2007.  Notwithstanding our anticipated emergence from
Chapter 11, we may not be able to achieve or sustain operating profitability in
the future.

       

      We
continue to be highly leveraged and to have substantial indebtedness relative to
our cash flow.

       

      Once the
Plan becomes effective, our balance sheet will be significantly deleveraged,
including as a result of the satisfaction in full of all outstanding
indebtedness under the DIP Credit Facility through the issuance of the
Convertible Notes and borrowings under the Revolving Facility and the exchange
of the Existing Notes for equity in Reorganized U.S. Concrete.

       

      Despite
the anticipated satisfaction of these claims, we will remain highly leveraged.
This amount of leverage may have important consequences for us,
including:

       

      
        	
                 
      

              	
                •

              	
                placing
      us at a competitive disadvantage compared to our competitors that have
      less debt; and

              

      

       

      
        	
                 
      

              	
                •

              	
                making
      it difficult for us to obtain additional financing in the future for
      working capital, capital expenditures and other
  purposes.

              

      

       

      We cannot
assure you that we will be able to reduce our level of indebtedness or generate
sufficient cash flow to service our debt (including with respect to the
Convertible Notes) and meet our capital expenditure requirements. To the extent
we are unable to do so, we would need to seek additional financing, reduce our
level of capital expenditures or take other steps, such as disposing of assets.
We cannot assure you that any such financing would be available on acceptable
terms or that asset sales could be accomplished in a manner acceptable to
us.

       

      Our
adoption of “fresh start” accounting makes comparisons of our financial position
and results of operations with those of prior periods more
difficult.

       

      We will implement “fresh start”
accounting and reporting in accordance with SOP 90−7 upon our emergence from
Chapter 11 on the Effective Date.  “Fresh start” accounting requires
us to re−value our assets and liabilities based upon their estimated fair
values. Adopting “fresh start” accounting will result in material adjustments to
the historical carrying amount of U.S. Concrete’s assets and liabilities. We
engaged an independent expert to compute the fair market value of our assets and
to assist in the allocation of our reorganization value and in determining the
fair market value of our property and equipment and intangible assets. The fair
values of the assets as determined for “fresh start” reporting are based on
estimates of anticipated future cash flow as generated from each market and
applying business valuation techniques. Liabilities existing on the Effective
Date are stated at the present values of amounts to be paid discounted at
appropriate rates. The determination of fair values of assets and liabilities is
subject to significant estimation and assumptions. As a result, the consolidated
financial statements for periods after our emergence from bankruptcy are not
comparable to our consolidated financial statements for the periods prior to our
emergence from bankruptcy, which were prepared on an historical cost basis. The
application of “fresh start” accounting will make it more difficult to compare
our post−emergence operations and results to those in pre−emergence periods and
could therefore adversely affect trading in and the liquidity of our
securities.

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      Business
Risks

       

      Further
tightening of mortgage lending or mortgage financing requirements could
adversely affect the residential construction market and prolong the downturn
in, or further reduce, the demand for new home construction which began in 2006
and has had a negative effect on our sales volumes and revenues.

       

      Since
2006, the mortgage lending and mortgage finance industries experienced
significant instability due to, among other things, defaults on subprime loans
and adjustable rate mortgages.  In light of these developments,
lenders, investors, regulators and other third parties have questioned the
adequacy of lending standards and other credit requirements for several loan
programs made available to borrowers in recent years.  This has led to
reduced investor demand for mortgage loans and mortgage-backed securities,
reduced market values for those securities, tightened credit requirements,
reduced liquidity, increased credit risk premiums and regulatory
actions.  Deterioration in credit quality among subprime and other
loans has caused many lenders to eliminate subprime mortgages and other loan
products that do not conform to Fannie Mae, Freddie Mac, FHA or VA
standards.  Fewer loan products and tighter loan qualifications in
turn make it more difficult for some categories of borrowers to finance the
purchase of new homes.  In general, these developments have been a
significant factor in the downturn of, and have delayed any general improvement
in, the housing market.

       

      Approximately
19% of our 2009 revenue was from residential construction
contractors.  Further tightening of mortgage lending or mortgage
financing requirements could adversely affect the availability to obtain credit
for some borrowers and prolong the downturn in, or further reduce the demand
for, new home construction, which could have a material adverse effect on our
business and results of operations in 2010.  A further downturn in new
home construction could also adversely affect our customers focused in this
industry segment, possibly resulting in slower payments, higher default rates in
our accounts receivable, and an overall increase in working
capital.

       

      The
global financial crisis may impact our business and financial condition in ways
that we currently cannot predict.

       

      The
unprecedented and continuing credit crisis and related turmoil in the global
financial system may have an impact on our business and our financial
condition.  In particular, the cost of capital has increased
substantially while the availability of funds from the capital markets has
diminished significantly.  Accordingly, our ability to access the
capital markets may be restricted or be available only on unfavorable
terms.  Limited access to the capital markets could adversely impact
our ability to take advantage of business opportunities or react to changing
economic and business conditions and could adversely impact our ability to
execute our long-term growth strategy.  Ultimately, we may be required
to reduce our future capital expenditures substantially.  Such a
reduction could have a material adverse effect on our revenues, income from
operations and cash flows.

       

      If one or
more of the lenders under the Revolving Facility were to become unable or
unwilling to perform their obligations under that facility, our borrowing
capacity could be reduced.  Our inability to borrow additional amounts
under our senior secured credit facility could limit our ability to fund our
future operations and growth.

       

      The
current economic situation could have an impact on our suppliers and our
customers, causing them to fail to meet their obligations to us, which could
have a material adverse effect on our revenues, income from operations and cash
flows.  The uncertainty and volatility of the global financial crisis
may have further impacts on our business and financial condition that we
currently cannot predict or anticipate.

       

      There
are risks related to our internal growth and operating strategy.

       

      Our
ability to generate internal growth will be affected by, among other factors,
our ability to:

       

      
        	
                 
      

              	
                •

              	
                attract
      new customers; and

              

      

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                •

              	
                differentiate
      ourselves in a competitive market by emphasizing new product development
      and value added sales and marketing; hiring and retaining employees; and
      reducing operating and overhead
expenses.

              

      

       

      One key
component of our operating strategy is to operate our businesses on a
decentralized basis, with local or regional management retaining responsibility
for day-to-day operations, profitability and the internal growth of the
individual business.  If we do not implement and maintain proper
overall business controls, this decentralized operating strategy could result in
inconsistent operating and financial practices and our overall profitability
could be adversely affected.

       

      Our
inability to achieve internal growth could materially and adversely affect our
business, financial condition, results of operations and cash
flows.

       

      Our
operating results may vary significantly from one reporting period to another
and may be adversely affected by the seasonal and cyclical nature of the markets
we serve.

       

      The
ready-mixed concrete and precast concrete businesses are seasonal.  In
particular, demand for our products and services during the winter months are
typically lower than in other months because of inclement winter
weather.  In addition, sustained periods of inclement weather or
permitting delays could postpone or delay projects over geographic regions of
the United States, and consequently, could adversely affect our business,
financial condition, results of operations and cash flows.  The
relative demand for our products is a function of the highly cyclical
construction industry.  As a result, our revenues may be adversely
affected by declines in the construction industry generally and in our local
markets.  Our results also may be materially affected by:

       

      
        	
                 
      

              	
                •

              	
                the level of residential and
      commercial construction in our regional markets, including reductions in
      the demand for new residential housing construction below current or
      historical levels;

              

      

       

      
        	
                 
      

              	
                •

              	
                the availability of funds for
      public or infrastructure construction from local, state and federal
      sources;

              

      

       

      
        	
                 
      

              	
                •

              	
                unexpected
      events that delay or adversely affect our ability to deliver concrete
      according to our customers’
requirements;

              

      

       

      
        	
                 
      

              	
                •

              	
                changes
      in interest rates and lending
standards;

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      changes in mix of our customers and business, which result in periodic
      variations in the margins of jobs performed during any particular
      quarter;

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      timing and cost of acquisitions and difficulties or costs encountered when
      integrating acquisitions;

              

      

       

      
        	
                 
      

              	
                •

              	
                the budgetary spending patterns
      of customers;

              

      

       

      
        	
                 
      

              	
                •

              	
                increases
      in construction and design costs;

              

      

       

      
        	
                 
      

              	
                •

              	
                power
      outages and other unexpected
delays;

              

      

       

      
        	
                 
      

              	
                •

              	
                our
      ability to control costs and maintain
quality;

              

      

       

      
        	
                 
      

              	
                •

              	
                employment
      levels; and

              

      

       

      
        	
                 
      

              	
                •

              	
                regional
      or general economic conditions.

              

      

       

      As a
result, our operating results in any particular quarter may not be indicative of
the results that you can expect for any other quarter or for the entire
year.  Furthermore, negative trends in the ready-mixed concrete
industry or in our geographic markets could have material adverse effects on our
business, financial condition, results of operations and cash
flows.

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      We
may be unsuccessful in continuing to carry out our strategy of growth through
acquisitions.

       

      One of
our principal growth strategies has been to increase our revenues and the
markets we serve and to continue selectively entering new geographic markets
through the acquisition of additional ready-mixed concrete, precast concrete
products, aggregates products and related businesses.  We may be
unable to grow through acquisitions due to constraints in the Revolving Facility
and the Convertible Notes, including restrictions on our ability to make
investments and incur debt to fund acquisitions.  Even if we are able
to conduct acquisitions, we may not be able to acquire suitable acquisition
candidates at reasonable prices and on other reasonable terms for a number of
reasons, including the following:

       

      
        	
                 
      

              	
                •

              	
                the
      acquisition candidates we identify may be unwilling to
    sell;

              

      

       

      
        	
                 
      

              	
                •

              	
                we
      may not have sufficient capital to pay for acquisitions;
    and

              

      

       

      
        	
                 
      

              	
                •

              	
                competitors
      in our industry may outbid us.

              

      

       

      In
addition, there are risks associated with the acquisitions we
complete.  We may face difficulties integrating the newly acquired
businesses into our operations efficiently and on a timely basis.  We
also may experience unforeseen difficulties managing the increased scope,
geographic diversity and complexity of our operations or mitigating contingent
or assumed liabilities, potentially including liabilities we do not
anticipate.

       

      We
may lose business to competitors who underbid us, and we may be otherwise unable
to compete favorably in our highly competitive industry.

       

      Our
competitive position in a given market depends largely on the location and
operating costs of our plants and prevailing prices in that
market.  Generally, our products are price-sensitive.  Our
prices are subject to changes in response to relatively minor fluctuations in
supply and demand, general economic conditions and market conditions, all of
which are beyond our control.  Because of the fixed-cost nature of our
business, our overall profitability is sensitive to minor variations in sales
volumes and small shifts in the balance between supply and
demand.  Price is the primary competitive factor among suppliers for
small or simple jobs, principally in residential
construction.  However, timeliness of delivery and consistency of
quality and service, as well as price, are the principal competitive factors
among suppliers for large or complex jobs.  Concrete manufacturers
like us generally obtain customer contracts through local sales and marketing
efforts directed at general contractors, developers, governmental agencies and
homebuilders.  As a result, we depend on local
relationships.  We generally do not have any long-term sales contracts
with our customers.

       

      Our
competitors range from small, owner-operated private companies to subsidiaries
or operating units of large, vertically integrated manufacturers of cement and
aggregates.  Our vertically integrated competitors generally have
greater manufacturing, financial and marketing resources than we have, providing
them with competitive advantages.  Competitors having lower operating
costs than we do or having the financial resources to enable them to accept
lower margins than we do will have competitive advantages over us for jobs that
are particularly price-sensitive.  Competitors having greater
financial resources or less financial leverage than we do to invest in new mixer
trucks, build plants in new areas or pay for acquisitions also will have
competitive advantages over us.

       

      We
depend on third parties for concrete equipment and supplies essential to operate
our business.

       

      We rely
on third parties to sell or lease property, plant and equipment to us and to
provide supplies, including cement and other raw materials, necessary for our
operations.  We cannot assure you that our favorable working
relationships with our suppliers will continue in the future.  Also,
there have historically been periods of supply shortages in the concrete
industry, particularly in a strong economy.

       

      If we are
unable to purchase or lease necessary properties or equipment, our operations
could be severely impacted.  If we lose our supply contracts and
receive insufficient supplies from other third parties to meet our customers’
needs or if our suppliers experience price increases or disruptions to their
business, such as labor disputes, supply shortages or distribution problems, our
business, financial condition, results of operations and cash flows could be
materially adversely affected.

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

      In 2006,
cement prices rose at rates similar to those experienced in 2005 and 2004, as a
result of strong domestic consumption driven largely by historic levels of
residential construction that did not abate until the second half of
2006.  During 2007, 2008 and 2009, residential construction slowed
significantly, which resulted in a decline in the demand for ready-mixed
concrete.  Cement prices remained relatively flat in 2009, while
cement supplies were at levels that indicated a very low risk of cement
shortages in our markets.  Should demand increase substantially beyond
our current expectations, we could experience shortages of cement in future
periods, which could adversely affect our operating results, through both
decreased sales and higher cost of raw materials.

       

      Governmental
regulations, including environmental regulations, may result in increases in our
operating costs and capital expenditures and decreases in our
earnings.

       

      A wide
range of federal, state and local laws, ordinances and regulations apply to our
operations, including the following matters:

       

      
        	
                 
      

              	
                •

              	
                land
      usage;

              

      

       

      
        	
                 
      

              	
                •

              	
                street
      and highway usage;

              

      

       

      
        	
                 
      

              	
                •

              	
                noise
      levels; and

              

      

       

      
        	
                 
      

              	
                •

              	
                health,
      safety and environmental matters.

              

      

       

      In many
instances, we must have various certificates, permits or licenses in order to
conduct our business.  Our failure to maintain required certificates,
permits or licenses or to comply with applicable governmental requirements could
result in substantial fines or possible revocation of our authority to conduct
some of our operations.  Delays in obtaining approvals for the
transfer or grant of certificates, permits or licenses, or failure to obtain new
certificates, permits or licenses, could impede the implementation of our
acquisition program.

       

      Governmental
requirements that impact our operations include those relating to air quality,
solid waste management and water quality.  These requirements are
complex and subject to frequent change.  They impose strict liability
in some cases without regard to negligence or fault and may expose us to
liability for the conduct of or conditions caused by others, or for our acts
that complied with all applicable requirements when we performed
them.  Our compliance with amended, new or more stringent
requirements, stricter interpretations of existing requirements, or the future
discovery of environmental conditions may require us to make unanticipated
material expenditures.  In addition, we may fail to identify or obtain
indemnification from environmental liabilities of acquired
businesses.  We generally do not maintain insurance to cover
environmental liabilities.

       

      Our
operations are subject to various hazards that may cause personal injury or
property damage and increase our operating costs.

       

      Operating
mixer trucks, particularly when loaded, exposes our drivers and others to
traffic hazards.  Our drivers are subject to the usual hazards
associated with providing services on construction sites, while our plant
personnel are subject to the hazards associated with moving and storing large
quantities of heavy raw materials.  Operating hazards can cause
personal injury and loss of life, damage to or destruction of property, plant
and equipment and environmental damage.  Although we conduct training
programs designed to reduce these risks, we cannot eliminate these
risks.  We maintain insurance coverage in amounts we believe are in
accord with industry practice; however, this insurance may not be adequate to
cover all losses or liabilities we may incur in our operations, and we may not
be able to maintain insurance of the types or at levels we deem necessary or
adequate or at rates we consider reasonable.  A partially or
completely uninsured claim, if successful and of sufficient magnitude, could
have a material adverse effect on us.

       

      The
insurance policies we maintain are subject to varying levels of
deductibles.  Losses up to the deductible amounts are accrued based on
our estimates of the ultimate liability for claims incurred and an estimate of
claims incurred but not reported.  If we were to experience insurance
claims or costs above our estimates, our business, financial condition, results
of operations and cash flows might be materially and adversely
affected.

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

      The
departure of key personnel could disrupt our business. 

       

      We depend
on the efforts of our executive officers and, in many cases, on senior
management of our businesses.  Our success will depend on retaining
our senior-level managers and officers.  We need to insure that key
personnel are compensated fairly and competitively to reduce the risk of
departure of key personnel to our competitors or other industries.  To
the extent we are unable to attract and retain qualified management personnel,
our business, financial condition, results of operations and cash flows could be
materially and adversely affected.  We do not carry key personnel life
insurance on any of our employees.

       

      We
may be unable to attract and retain qualified employees.

       

      Our
ability to provide high-quality products and services on a timely basis depends
on our success in employing an adequate number of skilled plant managers,
technicians and drivers.  Like many of our competitors, we experience
shortages of qualified personnel from time to time.  We may not be
able to maintain an adequate skilled labor force necessary to operate
efficiently and to support our growth strategy, and our labor expenses may
increase as a result of a shortage in the supply of skilled
personnel.

       

      Collective
bargaining agreements, work stoppages and other labor relations matters may
result in increases in our operating costs, disruptions in our business and
decreases in our earnings.

       

      As of
March 15, 2010, approximately 36%, or 845, of our employees were covered by
collective bargaining agreements, which expire between 2010 and
2013.  Our inability to negotiate acceptable new contracts or
extensions of existing contracts with these unions could cause work stoppages by
the affected employees.  In addition, any new contracts or extensions
could result in increased operating costs attributable to both union and
nonunion employees.  If any such work stoppages were to occur, or if
other of our employees were to become represented by a union, we could
experience a significant disruption of our operations and higher ongoing labor
costs, which could materially adversely affect our business, financial
condition, results of operations and cash flows.  In addition, the
coexistence of union and nonunion employees may impede our ability to integrate
our operations efficiently.  Also, labor relations matters affecting
our suppliers of cement and aggregates could adversely impact our business from
time to time.

       

      We
contribute to 18 multiemployer pension plans.  During 2006, the
“Pension Protection Act of 2006” (the “PPA”) was signed into law.  For
multiemployer defined benefit plans, the PPA establishes new funding
requirements or rehabilitation requirements, creates additional funding rules
for plans that are in endangered or critical status, and introduces enhanced
disclosure requirements to participants regarding a plan’s funding
status.  The Worker, Retiree and Employer Recovery Act of 2008 (the
“WRERA”) was enacted in late 2008 and provided some funding relief to defined
benefit plan sponsors affected by recent market conditions.  The WRERA
allowed multiemployer plan sponsors to elect to freeze their current fund status
at the same funding status as the preceding plan year (for example, a calendar
year plan that was not in critical or endangered status for 2008 was able to
elect to retain that status for 2009), and sponsors of multiemployer plans in
endangered or critical status in plan years beginning in 2008 or 2009 were
allowed a three-year extension of funding improvement or rehabilitation plans
(extended the timeline for these plans to accomplish their goals from 10 years
to 13 years, or from 15 years to 18 years for seriously endangered
plans).  Additionally, if we were to withdraw partially or completely
from any plan that is underfunded, we would be liable for a proportionate share
of that plan’s unfunded vested benefits.  Based on the information
available from plan administrators, we believe that our portion of the
contingent liability in the case of a full or partial withdrawal from or
termination of several of these plans or the inability of plan sponsors to meet
the funding or rehabilitation requirements would be material to our business
financial condition, results of operations and cash flows.

       

      Our
overall profitability is sensitive to price changes and minor variations in
sales volumes.

       

      Generally,
our products are price-sensitive.  Prices for our products are subject
to changes in response to relatively minor fluctuations in supply and demand,
general economic conditions and market conditions, all of which are beyond our
control.  Because of the fixed-cost nature of our business, our
overall profitability is sensitive to price changes and minor variations in
sales volumes.

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

      We
may incur material costs and losses as a result of claims our products do not
meet regulatory requirements or contractual specifications.

       

      Our
operations involve providing products that must meet building code or other
regulatory requirements and contractual specifications for durability,
stress-level capacity, weight-bearing capacity and other
characteristics.  If we fail or are unable to provide products meeting
these requirements and specifications, material claims may arise against us and
our reputation could be damaged.  In the past, we have had significant
claims of this kind asserted against us that we have resolved.  There
currently are claims, and we expect that in the future there will be additional
claims, of this kind asserted against us.  If a significant
product-related claim or claims are resolved against us in the future, that
resolution may have a material adverse effect on our business, financial
condition, results of operations and cash flows.

       

      Risks
Related to the Convertible Notes and the Common Stock

       

      Our
substantial indebtedness could adversely affect our financial condition and
prevent us from fulfilling our obligations under the notes.

       

      We will
have, on an as adjusted basis giving effect to this offering and the application
of the net proceeds therefrom and the consummation of the Restructuring,
approximately $55.0 million of outstanding senior indebtedness represented
by the Convertible Notes.  The Revolving Facility will provide for
aggregate borrowings up to $75.0 million.  We anticipate that we
will have approximately $9.0 million drawn under the Revolving Facility as of
the Emergence, calculated on a pro forma basis for outstanding bankruptcy
related financing and professional fees at the Emergence.  As a
result, we will be a highly leveraged company. This level of indebtedness could
have important consequences to you, including the following:

       

      
        	
                 
      

              	
                •

              	
                it
      will limit our ability to borrow money or sell stock to fund our working
      capital, capital expenditures, acquisitions and debt service
      requirements;

              

      

       

      
        	
                 
      

              	
                •

              	
                our
      interest expense could increase if interest rates in general increase
      because a substantial portion of our indebtedness bears interest at
      floating rates;

              

      

       

      
        	
                 
      

              	
                •

              	
                it
      may limit our flexibility in planning for, or reacting to, changes in our
      business and future business
opportunities;

              

      

       

      
        	
                 
      

              	
                •

              	
                we
      are more highly leveraged than some of our competitors, which may place us
      at a competitive disadvantage;

              

      

       

      
        	
                 
      

              	
                •

              	
                it
      may make us more vulnerable to a downturn in our business or the
      economy;

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      debt service requirements of our indebtedness could make it more difficult
      for us to make payments on the Convertible
  Notes;

              

      

       

      
        	
                 
      

              	
                •

              	
                a
      substantial portion of our cash flow from operations will be dedicated to
      the repayment of our indebtedness, including indebtedness we may incur in
      the future, and will not be available for other purposes;
    and

              

      

       

      
        	
                 
      

              	
                •

              	
                there
      would be a material adverse effect on our business and financial condition
      if we were unable to service our indebtedness or obtain additional
      financing, as needed.

              

      

       

      We
may not be able to generate sufficient cash flows to meet our debt service
obligations.

       

      Our
ability to make payments on and to refinance our indebtedness, including the
Convertible Notes, and to fund planned capital expenditures will depend on our
ability to generate cash from our operations’ in the future.  This, to
a certain extent, is subject to general economic, financial, competitive,
legislative, regulatory and other factors that are beyond our
control.

       

      Our
business may not generate sufficient cash flow from operations and future
sources of capital under the Revolving Facility or otherwise may not be
available to us in an amount sufficient to enable us to pay our indebtedness,
including the Convertible Notes, or to fund our other liquidity needs. If we
complete an acquisition, our debt service requirements could increase. We may
need to refinance or restructure all or a portion of our indebtedness, including
the Convertible Notes, on or before maturity. We may not be able to refinance
any of our indebtedness, including the Revolving Facility and the Convertible
Notes, on commercially reasonable terms, or at all. If we cannot service our
indebtedness, we may have to take actions such as selling assets, seeking
additional equity or reducing or delaying capital, expenditures, strategic
acquisitions, investments and alliances.  We may not be able to effect
such actions, if necessary, on commercially reasonable terms, or at
all.

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

      The
Convertible Notes Indenture and the Revolving Facility will restrict our ability
to operate our business and to pursue our business strategies.

       

      The
Revolving Facility and the Convertible Notes Indenture notes limit our ability,
among other things, to:

       

      
        	
                 
      

              	
                •

              	
                incur
      additional indebtedness or issue disqualified stock or preferred
      stock;

              

      

       

      
        	
                 
      

              	
                •

              	
                pay
      dividends or make other distributions or repurchase or redeem the issuer’s
      stock or subordinated indebtedness or make
  investments;

              

      

       

      
        	
                 
      

              	
                •

              	
                with
      respect to the Revolving Facility, make voluntary payments on any
      indebtedness;

              

      

       

      
        	
                 
      

              	
                •

              	
                sell
      assets and issue capital stock of the issuer’s restricted
      subsidiaries;

              

      

       

      
        	
                 
      

              	
                •

              	
                incur
      liens;

              

      

       

      
        	
                 
      

              	
                •

              	
                enter
      into agreements restricting the issuer’s restricted subsidiaries’ ability
      to pay dividends, make loans to other U.S. Concrete entities or restrict
      the ability to provide liens;

              

      

       

      
        	
                 
      

              	
                •

              	
                enter
      into transactions with affiliates;

              

      

       

      
        	
                 
      

              	
                •

              	
                consolidate,
      merge or sell all or substantially all of our assets;
  and

              

      

       

      
        	
                 
      

              	
                •

              	
                with
      respect to the Convertible Notes Indenture, designate the issuer’s
      subsidiaries as unrestricted
subsidiaries.

              

      

       

      Our
failure to comply with the covenants contained in the agreement governing the
Revolving Facility or our other debt agreements, including as a result of events
beyond our control, could result in an event of default which could materially
and adversely affect our operating results and our financial
condition.

       

      The
Revolving Facility contains certain financial covenants. In addition, the
Revolving Facility requires us to comply with various operational and other
covenants. If there were an event of default under any of our debt instruments
that was not cured or waived, the holders of the defaulted debt could cause all
amounts outstanding with respect to the debt to be due and payable immediately.
Our assets and cash flow may not be sufficient to fully repay borrowings under
our outstanding debt instruments, either upon maturity or if accelerated upon an
event of default. If we were required to repurchase the Convertible Notes or any
of our other debt securities upon a change of control, we may not be able to
refinance or restructure the payments on those debt securities.

       

      If, as or
when required, we are unable to repay, refinance or restructure our indebtedness
under, or amend the covenants contained in, the Revolving Facility, the lenders
thereunder could elect to terminate their commitments thereunder, cease making
further loans and institute foreclosure proceedings against the collateral which
secures our obligations under the Revolving Facility on a first-priority basis,
which also secures the Convertible Notes on a second-priority
basis.  Any such actions could force us into bankruptcy or liquidation
again.

       

      There
may not be sufficient collateral to pay all or any of the Convertible
Notes.

       

      The
Revolving Facility Obligations are secured by first-priority liens on certain of
our assets, including, inventory (including, as extracted collateral), accounts,
certain equipment, chattel paper, general intangibles (other than collateral
securing the Convertible Notes on a first-priority basis), instruments, cash,
deposits accounts, securities accounts, letter of credit rights and all
supporting obligations. The Convertible Notes and related guarantees will have a
second-priority lien on such assets.  The Convertible Notes will also
be secured by first-priority liens on substantially all of the other property
and assets directly owned by the Company and the guarantors, including material
owned real property, fixtures, intellectual property, capital stock of
subsidiaries and certain equipment.  The Revolving Facility
Obligations will be secured by a second-priority lien on such
assets.

      
        
           

        

        
          21

          
            

          

        

        
           

        

      

      With
respect to the assets that secure the Revolving Facility Obligations on a
first-priority basis, the Convertible Notes will be effectively junior to these
obligations to the extent of the value of those assets. The rights of the
holders of the Convertible Notes with respect to the collateral securing the
Convertible Notes will be limited pursuant to the terms of the Intercreditor
Agreement. Under the Intercreditor Agreement, the lenders under the Revolving
Facility will have the ability to restrict your right to proceed against the
collateral over which the Revolving Facility Agent has a first-priority lien,
subject to certain limitations and exceptions.

       

      The
collateral that secures the Revolving Facility Obligations on a first-priority
basis secures the Convertible Notes on a second-priority basis and will be
subject to any and all exceptions, defects, encumbrances, liens and other
imperfections as may be or have been accepted by the lenders under the Revolving
Facility and any other holders of first-priority liens on such collateral from
time to time, whether existing on or after the date the Convertible Notes are
issued. The existence of such exceptions, limitations, imperfections and liens
could adversely affect the value of the collateral securing the Convertible
Notes as well as the ability of the Collateral Agent to realize or foreclose on
such collateral.

       

      The value
at any time of the collateral securing the Convertible Notes will depend on
market and other economic conditions, including the availability of suitable
buyers. By their nature, some or all of the pledged assets may be illiquid and
may have no readily ascertainable market value. The value of the assets pledged
as collateral for the Convertible Notes could be impaired in the future as a
result of changing economic conditions, our failure to implement our business
strategy, competition or other future trends. In the event of a foreclosure,
liquidation, bankruptcy or similar proceeding, the proceeds from any sale or
liquidation of the collateral may not be sufficient to pay our obligations under
the Convertible Notes, in full or at all, together with our obligations under
any other indebtedness that is secured on an equal and ratable basis by a
first-priority lien on the collateral.

       

      Accordingly,
there may not be sufficient collateral to pay all of the amounts due on the
Convertible Notes. Any claim for the difference between the amount, if any,
realized by holders of the Convertible Notes from the sale of collateral
securing the Convertible Notes and the obligations under the Convertible Notes
will rank equally in right of payment with all of our other unsecured
unsubordinated indebtedness and other obligations, including trade
payables.

       

      To the
extent that third parties enjoy prior liens, such third parties may have rights
and remedies with respect to the property subject to such liens that, if
exercised, could adversely affect the value of the collateral.  The
Convertible Notes Indenture will not require that we maintain the current level
of collateral or maintain a specific ratio of indebtedness to asset
values.  Releases of collateral from the liens securing the
Convertible Notes will be permitted under some circumstances (as discussed
below).

       

      The
Convertible Notes Security Documents generally allow us and our subsidiaries to
remain in possession of, retain exclusive control over, to freely operate, and
to collect, invest and dispose of any income from, the collateral securing the
Convertible Notes. In addition, to the extent we sell any assets that constitute
collateral, the proceeds from any such sale will be subject to the
first-priority or second-priority lien, as applicable, securing the Convertible
Notes to which the underlying assets were subject.  In addition, if we
sell any of our assets which constitute collateral securing the Convertible
Notes and, with the proceeds from such sale, purchase assets which would not
constitute collateral, the holders of the Convertible Notes would not receive a
security interest in such purchased assets.

       

      There
are circumstances, other than repayment or discharge of the Convertible Notes,
under which the collateral securing the Convertible Notes and guarantees will be
released automatically, without your consent or the consent of the
Trustee.

       

      Under
various circumstances, all or a portion of the collateral may be released,
including:

       

      
        	
                 
      

              	
                •

              	
                in
      whole or in part, as applicable, as to all or any portion of property
      subject to such liens which have been taken by eminent domain,
      condemnation or other similar
circumstances;

              

      

       

      
        	
                 
      

              	
                •

              	
                in
      whole upon:

              

      

       

      
        
           

        

        
          22

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                o

              	
                satisfaction
      and discharge of the Convertible Notes Indenture or as otherwise set forth
      in the Convertible Notes Indenture;

              

      

       

      
        	
                 
      

              	
                o

              	
                a
      legal defeasance or covenant defeasance of the Convertible Notes Indenture
      as described in the Convertible Notes Indenture;
  or

              

      

       

      
        	
                 
      

              	
                o

              	
                the
      Conversion Termination Date;

              

      

       

      
        	
                 
      

              	
                •

              	
                in
      part, as to any property that (i) is sold, transferred or otherwise
      disposed of by us or any subsidiary guarantor (other than to us or another
      subsidiary guarantor) in a transaction not prohibited by the Convertible
      Notes Indenture at the time of such sale, transfer or disposition or (ii)
      is owned or at any time acquired by a subsidiary guarantor that has been
      released from its guarantee in accordance with the Convertible Notes
      Indenture, concurrently with the release of such guarantee;
      and

              

      

       

      
        	
                 
      

              	
                •

              	
                in
      part, in accordance with the applicable provisions of the Convertible
      Notes Security Documents.

              

      

       

      In
addition, the guarantee of a subsidiary guarantor will be released in connection
with a sale or merger of such subsidiary guarantor in a transaction not
prohibited by the Convertible Notes Indenture.

       

      The
Intercreditor Agreement limits the rights of the holders of the Convertible
Notes and their control with respect to the collateral securing the Convertible
Notes.

       

      Under the
terms of the Intercreditor Agreement, at any time that obligations that have the
benefit of the first-priority liens are outstanding, any actions that may be
taken in respect of the related collateral, including the ability to cause the
commencement of enforcement proceedings against such collateral and to control
the conduct of such proceedings, and the approval of amendments to and waivers
of past defaults under, the collateral documents, will be at the direction of
the collateral agent for the related obligations.  The Revolving
Facility Agent will direct all such actions with respect to the collateral
securing the Revolving Facility Obligations thereunder on a first-priority
basis, for so long as such Revolving Facility Obligations are outstanding.  As a result, the
Collateral Agent under the Convertible Notes Security Documents will not have
the ability to control or direct such actions with respect to such collateral,
even if the rights of the holders of Convertible Notes are adversely
affected.  Additionally, to the extent such collateral is released
from securing the first-priority lien obligations, the second-priority liens
securing the Convertible Notes will also automatically be released to the extent
the holders of the Convertible Notes are obligated to release such liens under
the Convertible Notes Indenture.

       

      The
imposition of certain permitted liens will cause the assets on which such liens
are imposed to be excluded from the collateral securing the Convertibles Notes
and the guarantees.  There are also certain other categories of
property that are also excluded from the collateral.

       

      The
Convertible Notes Indenture will permit liens in favor of third parties to
secure additional debt, including purchase money indebtedness and capitalized
lease obligations, and any equipment subject to such liens will be automatically
excluded from the collateral securing the Convertible Notes and the guarantees
to the extent the agreements governing such indebtedness prohibit additional
liens.  Our ability to incur purchase money indebtedness and
capitalized lease obligations is subject to the limitations as described in the
Convertible Notes Indenture.  In addition, certain categories of
assets are excluded from the collateral securing the Convertible Notes and the
guarantees, as described in the Convertible Notes Security
Documents.  Excluded assets include, but are not limited to, among
other things, leaseholds (except to the extent required to perfect a security
interest in as-extracted collateral included in the collateral) and the proceeds
thereof.  If an event of default occurs and the Convertible Notes are
accelerated, the Convertible Notes and the guarantees will rank equally with the
holders of other unsubordinated and unsecured indebtedness of the relevant
entity with respect to such excluded property.

      
        
           

        

        
          23

          
            

          

        

        
           

        

      

      The
Convertible Notes are not secured by the capital stock of Superior or its
subsidiaries and a portion of the capital stock of any foreign
subsidiaries.  In addition, the pledge of the securities of our
subsidiaries that secures the Convertible Notes will exclude capital stock or
any other securities of any of our subsidiaries in excess of the maximum amount
of such capital stock or securities that could be included in the collateral
without creating a requirement to file separate financial statements with the
SEC for that subsidiary.

       

      The
Convertible Notes are secured by a pledge of the stock and other securities of
our subsidiaries held by U.S. Concrete or the guarantors, other than (i)
Superior and its subsidiaries and (ii) securities in excess of 66% of the issued
and outstanding equity interests of our foreign subsidiaries.  Under
the SEC regulations in effect as of the Issue Date, if the par value, book value
as carried by us or market value (whichever is greatest) of the capital stock,
other securities or similar ownership interests of a subsidiary of U.S. Concrete
pledged as part of the collateral is greater than or equal to 20% of the
aggregate principal amount of the Convertible Notes then outstanding, such a
subsidiary would be required to provide separate financial statements to the
SEC. Therefore, the Convertible Notes Indenture and the Convertible Notes
Security Agreement will provide that any capital stock and other securities of
any of U.S. Concrete subsidiaries will be excluded from the collateral to the
extent the inclusion of such capital stock in the collateral would cause such
subsidiary to file separate financial statements with the SEC pursuant to Rule
3-16 of Regulation S-X.  It may be more difficult, costly and time
consuming for holders of the Convertible Notes to foreclose on the assets of a
subsidiary than to foreclose on its capital stock or other securities, so the
proceeds realized upon any such foreclosure could be significantly less than
those that would have been received upon any sale of the capital stock or other
securities of such subsidiary.

       

      State
law may limit the ability of the Collateral Agent to foreclose on the real
property and improvements and leasehold interests included in the
collateral.

       

      The
Convertible Notes will be secured by, among other things, liens owned on owned
real property and improvements located in the States of California, New Jersey,
Pennsylvania and Texas.  The laws of those states may limit the
ability of the Trustee and the holders of the Convertible Notes to foreclose on
the improved real property collateral located in those states.  Laws
of those states govern the perfection, enforceability and foreclosure of
mortgage liens against real property interests which secure debt obligations
such as the Convertible Notes.  These laws may impose procedural
requirements for foreclosure different from and necessitating a longer time
period for completion than the requirements for foreclosure of security
interests in personal property.  Debtors may have the right to
reinstate defaulted debt (even if it has been accelerated) before the
foreclosure date by paying the past due amounts and a right of redemption after
foreclosure.  Governing laws may also impose security first and one
form of action rules which can affect the ability to foreclose or the timing of
foreclosure on real and personal property collateral regardless of the location
of the collateral and may limit the right to recover a deficiency following a
foreclosure.

       

      The
holders of the Convertible Notes, the Trustee and the Collateral Agent also may
be limited in their ability to enforce a breach of the “no liens”
covenant.  Some decisions of state courts have placed limits on a
lenders’ ability to accelerate debt secured by real property upon breach of
covenants prohibiting the creation of certain junior liens or leasehold estates
may need to demonstrate that enforcement is reasonably necessary to protect
against impairment of the lender’s security or to protect against an increased
risk of default.  Although the foregoing court decisions may have been
preempted, at least in part, by certain federal laws, the scope of such
preemption, if any, is uncertain.  Accordingly, a court could prevent
the Trustee, the Collateral Agent and the holders of the Convertible Notes from
declaring a default and accelerating the Convertible Notes by reason of a breach
of this covenant, which could have a material adverse effect on the ability of
holders to enforce the covenant.

       

      Your
rights in the collateral may be adversely affected by the failure to perfect
security interests in certain collateral acquired in the future.

       

      Applicable
law requires that certain property and rights acquired after the grant of a
general security interest can only be perfected at the time such property and
rights are acquired and identified.  The Trustee or the Collateral
Agent may not monitor and we may not inform the Trustee or the Collateral Agent
of any future acquisition of property and rights that constitute collateral and
the necessary action may not be to properly perfect the security interest in
such after acquired collateral. The Collateral Agent has no obligation to
monitor the acquisition of additional property or rights that constitute
collateral or the perfection of any security interest in favor of the
Convertible Notes against third parties.

      
        
           

        

        
          24

          
            

          

        

        
           

        

      

      The
collateral is subject to casualty risks and potential environmental
liabilities.

       

      We intend
to maintain insurance or otherwise insure against hazards in a manner
appropriate and customary for our business.  There are, however,
certain losses, including those due to fires, earthquakes, severe weather
conditions and other natural disasters, that may be uninsurable or not
economically insurable, in whole or in part.  Insurance proceeds may
not compensate us fully for our losses.  If there is a complete or
partial loss of any of the pledged collateral, the insurance proceeds may not be
sufficient to satisfy all of our secured obligations, including the Convertible
Notes, the related guarantees and the Revolving Facility.

       

      In the
event of a total or partial loss to any of our facilities, certain items of
equipment or inventory may not be easily replaced.  Accordingly, even
though there may be insurance coverage, the extended period needed to
manufacture or obtain replacement units or inventory could cause significant
delays.

       

      Moreover,
the Collateral Agent or the Revolving Facility Agent, as applicable, may need to
evaluate the impact of potential liabilities before determining to foreclose on
collateral consisting of real property because secured creditors that hold a
security interest in real property may be held liable under environmental laws
for the costs of remediating the release or threatened release of hazardous
substances at such real property.  Consequently, such agent may
decline to foreclose on such collateral or exercise remedies in respect thereof
if it does not receive indemnification to its satisfaction from the holders of
the Convertible Notes and/or the creditors under the Revolving Facility, as
applicable.

       

      Federal
and state statutes allow courts, under specific circumstances, to void
guarantees and require holders of the Convertible Notes to return payments
received from guarantors.

       

      Under the
federal bankruptcy law and comparable provisions of state fraudulent transfer
laws, a guarantee could be voided, or claims in respect of a guarantee could be
subordinated to all other debts of that guarantor, if the guarantor at the time
it incurred the indebtedness evidenced by its guarantee:

       

      
        	
                 
      

              	
                •

              	
                received
      less than reasonably equivalent value or fair consideration for the
      incurrence of its guarantee and was insolvent or rendered insolvent by
      reason of such incurrence;

              

      

       

      
        	
                 
      

              	
                •

              	
                was
      engaged in a business or transaction for which the guarantor’s remaining
      assets constituted unreasonably small capital;
  or

              

      

       

      
        	
                 
      

              	
                •

              	
                intended
      to incur, or believed that it would incur, debts beyond its ability to pay
      those debts as they mature.

              

      

       

      The
measures of insolvency for purposes of these fraudulent transfer laws will vary
depending upon the law applied in any proceeding to determine whether a
fraudulent transfer has occurred. Generally, however, a guarantor would be
considered insolvent if:

       

      
        	
                 
      

              	
                •

              	
                the
      sum of its debts, including contingent liabilities, was greater than the
      fair saleable value of all of its
assets;

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      present fair saleable value of its assets was less than the amount that
      would be required to pay its probable liability on its existing debts,
      including contingent liabilities, as they become absolute and mature;
      or

              

      

       

      
        	
                 
      

              	
                •

              	
                it
      could not pay its debts as they become
due.

              

      

       

      We cannot
assure you as to what standard a court would apply in determining whether a
guarantor would be considered to be insolvent. If a court determined that a
guarantor was insolvent after giving effect to the guarantee, it could void the
guarantee of the Convertible Notes by a guarantor and require you to return any
payments received from such guarantor.

      
        
           

        

        
          25

          
            

          

        

        
           

        

      

      Bankruptcy
laws may limit your ability to realize value from the collateral.

       

      The right
of the Collateral Agent to repossess and dispose of the collateral upon the
occurrence of an event of default under the Convertible Notes Indenture is
likely to be significantly impaired by applicable bankruptcy law if a bankruptcy
case were to be commenced by or against us before the Collateral Agent
repossessed and disposed of the collateral. Upon the commencement of a case
under the Bankruptcy Code, a secured creditor such as the Collateral Agent is
prohibited from repossessing its security from a debtor in a bankruptcy case, or
from disposing of security repossessed from such debtor, without bankruptcy
court approval, which may not be given. Moreover, the Bankruptcy Code permits
the debtor to continue to retain and use collateral even though the debtor is in
default under the applicable debt instruments, provided that the secured
creditor is given “adequate protection.” The meaning of the term “adequate
protection” may vary according to circumstances, but it is intended in general
to protect the value of the secured creditor’s interest in the collateral as of
the commencement of the bankruptcy case and may include cash payments or the
granting of additional security if and at such times as the bankruptcy court in
its discretion determines that the value of the secured creditor’s interest in
the collateral is declining during the pendency of the bankruptcy case. A
bankruptcy court may determine that a secured creditor may not require
compensation for a diminution in the value of its collateral if the value of the
collateral exceeds the debt it secures.

       

      In view
of the lack of a precise definition of the term “adequate protection” and the
broad discretionary power of a bankruptcy court, it is impossible to
predict:

       

      
        	
                 
      

              	
                •

              	
                how
      long payments under the Convertible Notes could be delayed following
      commencement of a bankruptcy case;

              

      

       

      
        	
                 
      

              	
                •

              	
                whether
      or when the Collateral Agent could repossess or dispose of the
      collateral;

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      value of the collateral at the time of the bankruptcy petition;
      or

              

      

       

      
        	
                 
      

              	
                •

              	
                whether
      or to what extent holders of the Convertible Notes would be compensated
      for any delay in payment or loss of value of the collateral through the
      requirement of “adequate
protection.”

              

      

       

      In
addition, the Intercreditor Agreement provides that, in the event of a
bankruptcy, the Collateral Agent may not object to a number of important matters
with respect to the first-priority collateral of the lenders under the Revolving
Facility following the filing of a bankruptcy petition so long as any obligation
under the Revolving Facility is outstanding.  After such a filing, the
value of such collateral securing the Convertible Notes could materially
deteriorate and you would be unable to raise an objection. The right of the
holders of obligations secured by first-priority liens on the collateral to
foreclose upon and sell the collateral upon the occurrence of an event of
default also would be subject to limitations under applicable bankruptcy laws if
we or any of our subsidiaries become subject to a bankruptcy
proceeding.

       

      Any
disposition of the collateral during a bankruptcy case would also require
permission from the bankruptcy court. Furthermore, in the event a bankruptcy
court determines the value of the collateral is not sufficient to repay all
amounts due in respect of the Revolving Facility Obligations and the Convertible
Notes, the holders of the Convertible Notes would hold a secured claim to the
extent of the value of the collateral to which the holders of the Convertible
Notes are entitled (after the application of proceeds of the collateral securing
Revolving Facility Obligations on a first-priority basis) and unsecured claims
with respect to such shortfall.  The Bankruptcy Code only permits the
payment and accrual of post−petition interest, costs and attorney’s fees to a
secured creditor during a debtor’s bankruptcy case to the extent the value of
its collateral is determined by the bankruptcy court to exceed the aggregate
outstanding principal amount of the obligations secured by the
collateral.

       

      Any
future pledge of collateral may be avoidable in bankruptcy.

       

      Any
future pledge of collateral in favor of the Trustee or the Collateral Agent,
including pursuant to any security documents delivered after the date of the
Convertible Notes Indenture pertaining to the Convertible Notes, may be
avoidable by the pledgor (a debtor in possession) or by its trustee in
bankruptcy if certain events or circumstances exist or occur, including, among
others, if (i) the pledgor is insolvent at the time of the pledge, (ii) the
pledge permits the holders of the Convertible Notes to receive a greater
recovery than if the pledge had not been given; and (iii) a bankruptcy
proceeding in respect of the pledgor is commenced within 90 days following the
pledge, or, in certain circumstances, a longer period.

      
        
           

        

        
          26

          
            

          

        

        
           

        

      

      Lien
searches may not reveal all liens on the collateral.

       

      We cannot
guarantee that the lien searches on the collateral securing the Convertible
Notes will reveal any or all existing liens on such collateral.  Any
such existing lien, including undiscovered liens, could be significant, could be
prior in ranking to the liens securing the Convertible Notes and could have an
adverse effect on the ability of the Collateral Agent to realize or foreclose
upon the collateral securing the Convertible Notes.

       

      Security
over all of the collateral may not be in place upon the date of issuance of the
Second Lien Notes or may not be perfected on such date.

       

      Certain
security interests covering certain collateral, including mortgages on real
property and related documentation, control agreements covering deposit accounts
and securities accounts, and intellectual property security agreements covering
trademarks may not be in place on the date of issuance of the Convertible Notes
or may be not be perfected on such date.  Any issues that we are not
able to resolve in connection with the execution, delivery, filing and
recordation, as applicable, of such mortgages and documentation related to such
other security interests may negatively impact the value of the collateral. To
the extent a security interest in certain collateral is perfected following the
date of the Convertible Notes Indenture, it might be avoidable in bankruptcy.
See above “—Any future pledge of collateral might be avoidable in
bankruptcy.”

       

      The
conversion rate of the Convertible Notes may not be adjusted for all dilutive
events.

       

      The
conversion rate of the Convertible Notes is subject to adjustment for specified
events, like the issuance of shares of Common Stock to the Management Equity
Incentive Plan or upon the exercise of the New Warrants or stock dividends on
the Common Stock, stock splits, combinations or similar events.  The
conversion rate will not be adjusted for other events, such as the issuance of
Common Stock for cash, that may adversely affect the trading price of the
Convertible Notes or the Common Stock.  We cannot assure you that an
event that adversely affects the value of the Convertible Notes, but does not
result in an adjustment to the conversion rate, will not occur.

       

      Upon
conversion of any Convertible Notes, we may pay cash in lieu of issuing shares
of Common Stock or a combination of cash and shares of Common Stock for the
Accrued Interest associated with such Convertible Notes.  Therefore,
holders of Convertible Notes may receive no shares of Common Stock or fewer
shares of Common Stock than the number of shares of Common Stock into which the
Accrued Interest is convertible.

       

      We have
the right to satisfy the Accrued Interest portion of our conversion obligations
to converting holders by issuing shares of Common Stock, by paying the cash
value of the Accrued Interest or a combination thereof.  Accordingly,
upon conversion of all or a portion of the Convertible Notes, holders may
receive fewer shares of Common Stock relative to the conversion value of the
Convertible Notes (including the amount of the Accrued
Interest).  Further, our liquidity may be reduced to the extent we
choose to deliver cash rather than shares of Common Stock to satisfy our Accrued
Interest payment obligations, if any, in connection with the conversion of any
Convertible Notes.

       

      If
you do not convert your Convertible Notes following receipt of a Conversion
Event Notice, your Convertible Notes will no longer be convertible after the
45th day following the date of such Conversion Event Notice.  Any
Convertible Notes outstanding after termination of such conversion rights, will
likely be illiquid, will no longer bear interest and will be redeemable by the
Company at par plus accrued interest to the Conversion Termination Date at any
time prior to maturity.

       

      Following
the occurrence of the Conversion Event and the delivery of a Conversion Event
Notice to holders of the Convertible Notes, any Convertible Notes not converted
into Common Stock prior to the 45th day following the date of such Conversion
Event Notice will cease to be convertible (subject to certain exceptions related
to Convertible Notes that cannot be converted in full due to the Conversion
Cap).  After such 45th day, the Convertible Notes will cease to accrue
interest and the collateral securing the Convertible Notes and the guarantees
will be released.  The Company may, after such date, redeem any
remaining Convertible Notes at any time prior to maturity but there is no
guarantee the Company would elect to do so.    After such
45th day, substantially all of the restrictive covenants in the Convertible
Notes Indenture and certain events of default contained therein will be
eliminated.  The elimination of these covenants and other provisions
will permit the Company to take certain actions that could increase the credit
risks with respect to the Company, adversely affect the market price and credit
rating of the remaining Convertible Notes or otherwise be materially adverse to
the interest of holders of Convertible Notes, which would otherwise not have
previously been permitted pursuant to the Convertible Notes
Indenture.

      
        
           

        

        
          27

          
            

          

        

        
           

        

      

      Holders
who do not convert will have limited liquidity due to the small number of
Convertible Notes that are likely to remain outstanding, will no longer receive
interest on their Convertible Notes and may be required to hold their
Convertible Notes until maturity.

       

      An
event that adversely affects the value of the Convertible Notes may occur, and
that event may not constitute a Fundamental Change of Control.

       

      Some
significant restructuring transactions may not constitute a Fundamental Change
of Control, in which case we would not be obligated to repurchase the
Convertible Notes or pay the Fundamental Change of Control Make
Whole.

       

      Upon the
occurrence of a Fundamental Change of Control, you have the right to require us
to repurchase your Convertible Notes.  Alternatively, you have the
right to receive the Fundamental Change of Control Make
Whole.  However, the definition of “Fundamental Change of Control” is
limited to only certain transactions or events.  Therefore, the
fundamental change of control provisions will not afford protection to holders
of the Convertible Notes in the event of other transactions or events that do
not constitute a Fundamental Change of Control but that could nevertheless
adversely affect the Convertible Notes.  For example, transactions
such as leveraged recapitalizations, refinancings, restructurings, or
acquisitions initiated by us may not constitute a Fundamental Change of Control
requiring us to repurchase the Convertible Notes or pay the Fundamental Change
of Control Make Whole.  In the event of any such transaction, the
holders would not have the right to require us to repurchase the Convertible
Notes or to pay the Fundamental Change of Control Make Whole, even though each
of these transactions could increase the amount of our indebtedness, or
otherwise adversely affect our capital structure or any credit ratings or
otherwise adversely affect the value of the Convertible Notes.

       

      We
may not be able to repurchase Convertible Notes or pay in cash amounts
contemplated under the Convertible Notes Indenture upon the occurrence of
certain events.

       

      Upon the
occurrence of a Fundamental Change of Control, the holders of the Convertible
Notes will require us to pay the Fundamental Change of Control Make Whole, which
consists of the Make Whole Premium and the Make Whole Payment, or to repurchase
Convertible Notes, at par plus accrued and unpaid interest
thereon.  If applicable, we may elect to pay the Make Whole Payment
portion of the Fundamental Change of Control Make Whole in cash or in shares of
Common Stock.   Furthermore, upon the occurrence of a Conversion
Event on or prior to the second anniversary of the Issue Date, in addition to
the shares issued upon conversion or amounts received upon redemption, as
applicable, the holders of the Convertible Notes will have the right to receive
the Cash Conversion Amount, which we may elect to pay in cash or shares of
Common Stock.

       

      It is
possible that we will not have sufficient funds at the time of the occurrence of
a Fundamental Change of Control or Conversion Event to make any required
repurchase of Convertible Notes or to pay the Make Whole Payment in cash, in
connection with the occurrence of a Fundamental Change of Control, or to pay the
Cash Conversion Amount in cash, in connection with the occurrence of a
Conversion Event.  In addition, we have, and may in the future incur,
other indebtedness with similar change of control provisions permitting other
creditors to accelerate or to require us to repurchase our indebtedness upon the
occurrence of similar events or on some specific dates.

      
        
           

        

        
          28

          
            

          

        

        
           

        

      

      Holders
of Convertible Notes will not be entitled to any rights with respect to the
Common Stock but will be subject to any changes made with respect to the Common
Stock.

       

      Holders
of the Convertible Notes will not be entitled to any rights with respect to the
Common Stock, including voting rights and rights to receive any dividends or
other distributions on the Common Stock (except that holders of the Convertible
Notes will have the right to have the conversion rate adjusted in certain
circumstances), but will be subject to all changes affecting the Common
Stock.  Holders of Convertible Notes will only be entitled to rights
as a holder of Common Stock if and when we deliver shares of Common Stock in
connection with conversion of the Convertible Notes.  For example, in
the event that an amendment is proposed to the Amended and Restated Certificate
of Incorporation of Reorganized U.S. Concrete (the “Charter”) or the Third
Amended and Restated Bylaws of Reorganized U.S. Concrete (the “Bylaws”)
requiring stockholder approval and the record date for determining the
stockholders of record entitled to vote on the amendment occurs prior to
delivery of Common Stock on conversion, those converting holders of Convertible
Notes will not be entitled to vote on the amendment, although they will
nevertheless be subject to any changes in the powers, preferences or special
rights of holders of Common Stock effected as a result of the
amendment.

       

      We
anticipate that the Common Stock will be traded on an over-the-counter market
and the price of the Convertible Notes may fluctuate significantly because of
risks of trading in an over-the-counter market, which may make it difficult for
holders to resell the Convertible Notes or the Common Stock issuable upon
conversion of the Convertible Notes when desired or at attractive
prices.

       

      U.S.
Concrete’s securities were delisted by the NASDAQ Stock Market (“NASDAQ”) on May
10, 2010, and trading of U.S. Concrete’s common stock was suspended as of the
opening of business on such date, in accordance with NASDAQ’s Listing Rules
5101, 5110(b) and 1M-5101-1.  Shares of U.S. Concrete’s common stock
are only traded in the over-the-counter market as a result of the delisting by
NASDAQ.  We anticipate that the shares of Common Stock into which the
Convertible Notes will be convertible will only trade in the over-the-counter
market.  The market price of the Convertible Notes will be affected
significantly by the market price of the Common Stock.

       

      Securities
traded in the over-the-counter market generally have significantly less
liquidity than securities traded on a national securities exchange, due to
factors such as a reduction in the number of investors that will consider
investing in the securities, the number of market makers in the securities,
reduction in securities analyst and news media coverage and lower market prices
than might otherwise be obtained.  As a result, holders of shares of
Common Stock may find it difficult to resell their shares at prices quoted in
the market or at all.  Furthermore, because of the limited market and
generally low volume of trading in the Common Stock that could occur, the share
price of the Common Stock (and the market price of the Convertible Notes) could
be more likely to be affected by broad market fluctuations, general market
conditions, fluctuations in our operating results, changes in the markets
perception of our business, and announcements made by us, our competitors or
parties with whom we have business relationships.

       

      Future
sales and issuances of Common Stock could adversely affect its price and/or our
ability to raise capital, which could affect the trading price of the
Convertible Notes.

       

      Pursuant
to the Plan, all of Old U.S. Concrete’s existing equity securities, including
shares of common stock and stock options, will be extinguished upon the
Effective Date.  U.S. Concrete will issue New Warrants to the holders
of all such equity securities.  Furthermore, holders of the Existing
Notes will be issued shares of Common Stock in exchange for their Existing
Notes.  As required by the Plan:

       

      
        	
                 
      

              	
                •

              	
                Reorganized
      U.S. Concrete is expected to issue approximately 11.9 million shares of
      Common Stock;

              

      

       

      
        	
                 
      

              	
                •

              	
                Reorganized
      U.S. Concrete will issue the Convertible Notes which are currently
      convertible into a total of approximately 5.2 million shares of Common
      Stock as of the Issue Date (subject to anti-dilution adjustments described
      herein and in the Convertible Notes Indenture) at any time by the holders
      of the Convertible Notes;

              

      

       

      
        	
                 
      

              	
                •

              	
                Reorganized
      U.S. Concrete expects to issue New Warrants to holders of Old U.S.
      Concrete’s common stock in two tranches: Class A Warrants to purchase
      approximately 1.5 million shares of Common Stock and Class B Warrants to
      purchase approximately 1.5 million shares of Common Stock;
    and

              

      

       

      
        	
                 
      

              	
                •

              	
                Approximately
      2.2 million shares of Common Stock are expected to be reserved for
      issuance under the Management Equity Incentive
  Plan.

              

      

       

      
        
           

        

        
          29

          
            

          

        

        
           

        

      

      The
shares of Common Stock available for sale on the open market could increase
materially if a significant portion of the Convertible Notes is converted into
Common Stock.  The “market overhang” from the New Warrants may
adversely affect the market for the Common Stock.

       

      In
addition, we may issue additional equity securities in the future.  We
are authorized under the Charter to issue preferred stock in one or more series
without stockholder approval which may give other stockholders dividend, voting
and liquidation rights, among other rights, which may be superior to the rights
of holders of Common Stock.  Any such series of preferred stock could
contain dividend rights, conversion rights, voting rights, terms of redemption,
redemption prices, liquidation preferences or other rights superior to the
rights of holders of Common Stock.  In addition, we can issue
additional Common Stock without stockholder approval.  We are also
authorized to issue, without stockholder approval, securities convertible into
either shares of Common Stock or preferred stock.  If we issue
additional equity securities, the price of the Common Stock and, in turn, the
price of the Convertible Notes may be materially and adversely
affected.

       

      Our
ability to pay cash dividends and repurchase Common Stock is
limited.

       

      The
Revolving Facility and the Convertible Notes substantially restrict the payment
of cash dividends and the repurchase of Common Stock by us.

       

      Applicable
accounting rules relating to the conversion features of the Convertible Notes
may result in increased non-cash interest expense and may cause volatility in
our results of operations due to the requirement to adjust any derivative
liability associated with the conversion features to fair value each
quarter.

       

      The
conversion features contained within the Convertible Notes may be deemed to be
an embedded derivative under ASC Topic 815, Derivatives and Hedging (“ASC 815”).
In accordance with ASC 815, an embedded derivative related to the conversion
features may require bifurcation from the debt component of the Convertible
Notes and a separate valuation. If bifurcation is required, we would recognize
the embedded derivative as a liability on our balance sheet, measure it at its
estimated fair value and recognize changes in its estimated fair value within
our results of operations each quarter. With the assistance of a third party, we
would estimate the fair value of the embedded derivative primarily using the
Black-Scholes model and other valuation methodologies. The Black-Scholes model
and other valuation methodologies are complex and require significant judgments.
Additionally, given the volatility of our stock price and the stock price of
other comparable retailers, which have a direct impact on our valuation, future
changes in the estimated fair value of the conversion features of the
Convertible Notes may have a material impact on our results of operations. As a
result of any required bifurcation of the embedded derivative related to the
conversion features of the Convertible Notes under ASC 815, the carrying value
of the Convertible Notes at issuance would be less than the $55 million face
value of the Convertible Notes. The difference between the face value and the
carrying value of the Convertible Notes as of the date of issuance would be
reflected as an increase to our interest expense using the effective interest
rate method over the term of the Convertible Notes. This discount accretion
would result in a significantly higher rate of noncash interest expense within
our results of operations over the stated interest rate of the Convertible Notes
and a corresponding decrease to our net income.

       

       Holders
of the Convertible Notes may be required to recognize income for tax purposes
without a corresponding receipt of cash.

       

      Holders
of the Convertible Notes may be treated as receiving a constructive distribution
(which may be taxed as a dividend or subject to U.S. withholding taxes) as a
result of certain adjustments to the conversion rate of the Convertible
Notes.  A constructive distribution may give rise to taxable income
without a corresponding receipt of cash, resulting in an out-of-pocket tax
payment for some U.S. holders of the Convertible Notes and some non-U.S.
holders.  See “Certain U.S. Federal Income Tax
Considerations.”  We particularly urge potential purchasers of
Convertible Notes to consult their own tax advisor regarding the tax
consequences of adjustments to the conversion rate of the Convertible
Notes.

      
        
           

        

        
          30

          
            

          

        

        
           

        

      

       The
Internal Revenue Service may challenge the status of the Convertible Notes as
debt for U.S. federal income tax purposes.

       

      The
status of the Convertible Notes as debt for U.S. federal income tax purposes
depends on a number of factors.  While we intend to take the position
that the Convertible Notes are debt for this purpose, there can be no assurance
that the U.S. Internal Revenue Service (the “IRS”) will not successfully
challenge this position.  If the Convertible Notes were not treated as
debt for U.S. federal income tax purposes could be materially different than
those described under “Certain U.S. Federal Income Tax
Considerations.”

       

      The
ability to transfer the Convertible Notes may be limited by the absence of an
active trading market.

       

      We will
offer and sell the Convertible Notes to eligible investors in reliance on an
exemption from registration under the United States federal and applicable state
securities laws.  There is no active trading market for the
Convertible Notes and we cannot predict whether an active trading market will
develop.  We do not currently intend to list the Convertible Notes for
trading on any stock exchange or market.  Holders of the Convertible
Notes may be required to bear the risk of their investment for an indefinite
period of time.  Historically, the market for non-investment grade
debt has been subject to substantial volatility, which could adversely affect
the prices at which you may sell your Convertible Notes.  In addition,
subsequent to their initial issuance, the Convertible Notes may trade at a
discount from their initial offering price, depending upon prevailing interest
rates, the market for similar notes, our operating performance and other
factors.

       

      The
Convertible Notes and the shares of Common Stock issuable upon conversion of the
Convertible Notes will be subject to restrictions on transfer.

       

      The
Convertible Notes and the shares of Common Stock issuable upon conversion of the
Convertible Notes have not be registered under the Securities Act or any state
securities laws.  Absent registration, both the Convertible Notes and
the shares of Common Stock issuable upon conversion of the Convertible Notes may
be offered or sold only in transactions that are not subject to, or that are
exempt from, the registration requirements of the Securities Act and applicable
state securities laws.

       

      Under the
Registration Rights Agreement, we are required to use our commercially
reasonable efforts to (i) file the Notes Form S-1 Shelf by the Notes
Registration Date, (ii) cause the Notes Form S-1 Shelf to be declared effective
by the SEC as soon as practicable following the filing of such registration
statement, (iii) file the Common Stock Form S-1 Shelf within 180 days of the
Issue Date and (iv) convert each of the Form S-1 Shelf Registration Statements
on Form S-1 (or similar long form) into the Form S-3 Shelf Registration
Statement as soon as practicable after U.S. Concrete becomes eligible to use
Form S-3.  However, we cannot assure you that we will be successful in
having any Shelf Registration Statement declared effective, and any such
registration statement may not be available to holders at all
times.

       

      Rating
agencies may provide unsolicited ratings on the Convertible Notes that could
cause the market value or liquidity of the Convertible Notes to
decline.

       

      We have
not requested a rating of the Convertible Notes from any rating agency and
believe it is unlikely that the Convertible Notes will be
rated.  However, if one or more rating agencies rate the Convertible
Notes and assign the Convertible Notes a rating lower than the rating expected
by investors, or reduces their rating in the future, the market price or
liquidity of the Convertible Notes could be harmed.

      
        
           

        

        
          31

          
            

          

        

        
           

        

      

      USE
OF PROCEEDS

       

      The net
proceeds of the offering of the Convertible Notes, after deducting the
$1,100,000 commitment fee to be paid to the Purchasing Parties upon issuance of
the Convertible Notes to eligible holders of the Existing Notes, will be
$53.9 million.  This amount does not include the legal and other
professional fees and expenses associated with the Subscription Offer which will
further reduce the net proceeds of the offering.   We intend to
use the net proceeds from the Subscription Offer to repay outstanding
indebtedness under the DIP Credit Facility, for working capital and for general
corporate purposes.

       

      The DIP
Credit Facility, which enabled the Debtors, during the pendency of the Chapter
11 Cases, to (i) pay off the Prepetition Secured Credit Agreement Obligations
(as defined in the Plan), (ii) pay vendors in the ordinary course of business,
(iii) fund fees and expenses of the Chapter 11 Cases and (iv) fund their
operational needs, provides for the entire principal amount of the loans be
repaid on the maturity date of May 3, 2011 (such date may be extended an
additional three months to August 3, 2011 at U.S. Concrete’s option subject to
the satisfaction of certain conditions precedent).   However, the
DIP Credit Facility must be repaid in full and the commitments thereunder must
be terminated upon emergence of the Debtors from Chapter 11.  Any
failure to repay such amounts or terminate such commitments, in accordance with
the terms of the DIP Credit Facility, would constitute an event of default
thereunder.

       

      
        
           

        

        
          32

          
            

          

        

        
           

        

      

      CAPITALIZATION

       

      The
following table sets forth our total debt as of June 30, 2010 on an actual basis
and on a pro forma basis to give effect to the Restructuring (including entry
into the Revolving Facility), the Subscription Offer, the issuance and sale of
the Convertible Notes, and the application of the net proceeds therefrom as
contemplated in this Supplement.  This information should be read in
conjunction with “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” and the historical consolidated financial statements
and related notes included in the June 2010 10-Q and the Plan.

       

      
        
          
            
              
                
                  
                    	 
      	 	
                            As of June 30, 2010

                          	 
	 
      	 	
                            Actual

                          	 	 	
                            Pro Forma

                          	 
	 
      	 	
                            (dollars in thousands)

                          	 
	 
      	 	
                            (Unaudited)

                          	 
	 
      	 	 	 	 	 	 
	
                            Debt
      (including current portion):

                          	 	 	 	 	 	 
	
                            Existing
      Credit Facilities:

                          	 	 	 	 	 	 
	
                            DIP
      Credit Facility

                          	 	$	48,973	 	 	$	—	 
	
                            Notes
      payable and other financing

                          	 	 	1,354	 	 	 	1,354	 
	
                            Revolving
      Facility(1)

                          	 	 	—	 	 	 	—	 
	
                            Existing
      Notes(2)(3)

                          	 	 	285,756	 	 	 	—	 
	
                            Convertible
      Notes(4)

                          	 	 	—	 	 	 	55,000	 
	
                            Total
      debt(5)

                          	 	$	336,083	 	 	$	56,354	 

                  

                

              

            

          

        

      

      
        
          

        

      

      
      

      
        	
                (1)

              	
                The
      Revolving Facility will provide for aggregate borrowings of up to
      $75.0 million.  We anticipate that approximately
      $9.0 million will be drawn under the Revolving Facility as of the
      Emergence, calculated on a pro forma basis for outstanding bankruptcy
      related financing and professional fees at the
  Emergence.

              

      

       

      
        	
                (2)

              	
                Holders
      of the Existing Notes will receive their Pro Rata Share (as defined in the
      Plan) of the equity of Reorganized U.S. Concrete (subject to dilution by
      amounts reserved under the Management Equity Incentive Plan and the New
      Warrants).

              

      

       

      
        	
                (3)

              	
                Liabilities
      subject to compromise represent unsecured pre-petition Existing Note
      obligations of the Debtors that are subject to impairment as part of the
      Plan and as a result, are subject to settlement at lesser
      amounts.  Such liabilities are classified separately from other
      liabilities in U.S. Concrete’s Condensed Consolidated Balance Sheets
      incorporated by reference herein as “Liabilities subject to
      compromise.”  The principal amount of the Existing Notes has
      been deemed to be an allowed claim and, as such, the unamortized debt
      discounts and deferred financing costs have been written off to adjust the
      debt balances to the amount of the allowed claim.  Accrued
      interest on the Existing Notes has been included through the Petition Date
      which is also deemed an allowed claim and no interest has been accrued
      after such date.

              

      

       

      
        	
                (4)

              	
                Reflects
      the aggregate principal amount and does not give effect to the bifurcation
      and separate valuation of any potential embedded derivative under ASC
      815.

              

      

       

      
        	
                (5)

              	
                Excludes
      capital leases and obligations under the Superior Materials, LLC secured
      credit facility due 2010.

              

      

       

      
        
           

        

        
          33

          
            

          

        

        
           

        

      

      MANAGEMENT

       

      Directors
and Executive Officers

       

      After the
consummation of the Subscription Offer and as of the Effective Date, our
directors, executive officers and other key employees are expected to be as
follows:

      

      
        	
                
                  Name

                

              	 	
                
                  Age (1)

                

              	 	
                
                  Position

                

              
	
                Michael
      W. Harlan

              	 	
                49

              	 	
                Director,
      President and Chief Executive Officer

              
	
                M.
      Terry Green

              	 	
                62

              	 	
                Senior
      Vice President — Operations

              
	
                Gary
      J. Konnie

              	 	
                56

              	 	
                Vice
      President — Human Resources

              
	
                Curt
      M. Lindeman

              	 	
                39

              	 	
                Vice President, General
      Counsel and
      Corporate Secretary

              
	
                Wallace
      H. Johnson

              	 	
                61

              	 	
                Vice
      President — Marketing and Sales

              
	
                Douglas
      W. McLaughlin

              	 	
                51

              	 	
                Vice
      President — Precast Division

              
	
                Michael
      L. Gentoso

              	 	
                56

              	 	
                Regional
      Vice President — Atlantic Region

              
	
                Jeff
      L. Davis

              	 	
                56

              	 	
                Vice
      President and General Manager  — Central Concrete Supply Co.,
      Inc.

              
	
                Jeffrey
      D. Spahr

              	 	
                62

              	 	
                Vice
      President and General Manager  — Superior Materials Holdings,
      LLC

              
	
                Jeffrey
      W. Roberts

              	 	
                43

              	 	
                Vice
      President and General Manager  — Ingram Concrete,
      LLC

              
	
                Kent
      D. Cauley

              	 	
                39

              	 	
                Corporate
      Controller

              
	
                Eugene
      Davis

              	 	
                55

              	 	
                Chairman
      of Board

              
	
                Kurt
      M. Cellar

              	 	
                40

              	 	
                Director

              
	
                Michael
      D. Lundin

              	 	
                50

              	 	
                Director

              
	
                Robert
      M. Rayner

              	 	
                63

              	 	
                Director

              
	
                Colin
      M. Sutherland

              	 	
                54

              	 	
                Director

              

      

       

      
        
          	
                  (1)

                	
                  As
      of March 23, 2010

                

        

      

       

      Mr. 
Harlan has served as U.S.
Concrete’s President and Chief Executive Officers since 2007, and as one of U.S.
Concrete’s directors since 2006.  Previously, he served as one of U.S.
Concrete’s directors from 1999 to 2003.  From 2003 through 2007,
Mr. Harlan served as U.S. Concrete’s Executive Vice President and Chief
Operating Officer.  Mr. Harlan served as U.S. Concrete’s Chief
Financial Officer from 1998 to 2004, as Senior Vice President from 1998 to 2003,
and as Corporate Secretary from 1998 to 1999.   Mr. Harlan
is also a director and Chairman of the audit committee of Waste Connections,
Inc., a publicly traded solid waste services firm.

       

      Mr. 
Green has served as our
Senior Vice President — Operations since 2005, and served as Vice President —
Operational Integration from 1999 through 2005. Mr. Green has managed the
operations of ready-mixed concrete producers and other transportation-related
businesses for over 20 years. From 1998 until 1999, he served as Vice
President of Maintenance for Armellini Express Lines, Inc. From 1989 until 1998,
Mr. Green served as Director of Maintenance, Equipment and Purchasing for
the concrete products division of Southdown, Inc. From 1980 until 1989,
Mr. Green held various positions with Kraft, Inc., serving as Private Fleet
Operations Manager from 1988 until 1989.

       

      Mr. Konnie has served as our Vice President —
Human Resources since 2004. Mr. Konnie has over 30 years of human
resources management experience. From 2002 through 2004, Mr. Konnie served
as Senior Vice President of Human Resources of El Paso Corporation, a provider
of natural gas and related energy products. From 1999 through 2002, he served as
El Paso’s Vice President of Human Resources, and, from 1998 through 1999, he
served as El Paso’s Director of Human Resources. From 1996 through 1998,
Mr. Konnie served as Vice President of Human Resources for Meridian
Aggregates Company, a producer of construction aggregates. Prior to 1996,
Mr. Konnie held various human resources positions with Rio Tinto plc,
Burlington Resources Inc., Boise Cascade, LLC and General Motors
Corporation.

      
        
           

        

        
          34

          
            

          

        

        
           

        

      

      Mr.  Lindeman has served
as U.S. Concrete’s Vice President and General Counsel since 2007, and as
Corporate Secretary since 2006.  From 2006 to 2007, Mr. Lindeman
served as U.S. Concrete’s Assistant General Counsel.  From 2002
through 2006, Mr. Lindeman was self employed as an attorney representing
various companies, including U.S. Concrete.  From 1999 through 2002,
he served as Senior Counsel for Coach USA, Inc., a passenger transportation
company.  In 1999, Mr. Lindeman served as counsel for Coral
Energy, L.P., a wholesale natural gas and power marketing and trading company
affiliated with Shell Oil Company.  From 1997 to 1999, he served as an
attorney with Shook, Hardy & Bacon L.L.P.

       

      Mr. Johnson has served as our Vice President —
Marketing and Sales since 2004. Mr. Johnson has over 30 years of
experience in the construction supply industry. From 2002 through 2004,
Mr. Johnson served as Vice President of Sales and Marketing of Systech
Inc., a provider of software systems for the ready-mixed concrete and aggregate
industries. From 2001 through 2002, he served as Director of Sales of Buildpoint
Corp., a provider of online bid management services for general contractors that
Construction Software Technologies, Inc. acquired in 2004. From 1977 through
2001, Mr. Johnson served in various sales and sales management positions
within the construction products division of W. R. Grace & Co., a
global specialty chemicals and materials company, including from 1996 through
2001 as regional sales manager and from 1993 through 1996 as North American
sales manager.

       

      Mr. McLaughlin has
served as our Vice President — Precast Division since 2007. From 1999 through
2007, he served as Vice President and General Manager of San Diego Precast
Concrete, Inc., a company we acquired in 1999. From 1996 through 1999,
Mr. McLaughlin was President of San Diego Precast Concrete. With
34 years of experience in the precast industry, Mr. McLaughlin has
worked in various operations positions. Mr. McLaughlin is a founding member
of the California Precast Concrete Association and has served on its Board of
Directors for seven years, including two terms as President. In addition, he has
served on the Board of Directors and Executive Committee for the National
Precast Concrete Association, where he has chaired several committees. He is
also a founding member of the Patrons Group for the Concrete Industry Management
Program at Arizona State University.

       

      Mr. Gentoso has served
as our Vice President — Atlantic Region since 2007. From 1998 through 2007, he
served as Vice President and General Manager of Eastern Concrete Materials, Inc.
(“Eastern”), a company we acquired in 2001. Mr. Gentoso has been with
Eastern or its predecessors since 1991, serving as Vice President of Operations
from 1995 through September 1998, and Vice President of Finance from
March 1991 through September 1995. From 1980 through 1991,
Mr. Gentoso was employed with the BOC Group PLC, where he held various
positions of increasing responsibility in the accounting and finance
departments, including Vice President Ohmeda Medical Equipment, Controller
Ohmeda Infant Care Division, Controller Ohmeda Medical Equipment, Manager,
Financial Planning & Plant Accounting Airco Welding Equipment, and
Manager Financial Accounting BOC Group Inc. Mr. Gentoso is the current
President of the New Jersey Concrete & Aggregates Association and is a
trustee on the TENJ Pension and Welfare Funds in New Jersey.

       

      Mr. Jeff Davis has
served as Vice President and General Manager of Central since 2005. From 2001 to
2005, Mr. Davis served as Vice President of Operations of Central. Prior to
joining U.S. Concrete in 2001, Mr. Davis served as Vice President Concrete
for Cadman Inc., a Lehigh Heidelberg Cement Company, operating in the Seattle,
Washington market. Mr. Davis has 35 years of experience in the ready
mix concrete, aggregate and cement industry, serving in various sales and
operational roles. Mr. Davis is a past President and Board member of the
Washington Concrete and Aggregate Producers Association, past President and
Board member of the Idaho Concrete and Aggregate Producers Association, member
of the American Concrete Institute, Chairman of the 1997 American Concrete
Institute Convention National, and former Chairman of the NRMCA Environmental
Task Group of the OES Committee.

       

      Mr. Spahr has served as
President and General Manager of Superior since 2007. From 2003 through 2007,
Mr. Spahr served as President of U.S.C. Michigan Inc., a subsidiary of U.S.
Concrete. From 1995 through 2003, he served as President of Fendt Transit Mix,
Inc., a company we acquired in 1999 as the regional platform company for
continued growth in Michigan. From 1978 through 1995, Mr. Spahr served in
various positions of increasing responsibility, including general manager and
chief executive officer of the concrete anchoring systems and parts division of
Day Industries, Inc., a manufacturer of automotive and other OEM products.
Mr. Spahr has over 20 years of management and manufacturing experience
and was past Chairman of the Michigan Concrete Association.

       

      Mr. Roberts has served
as the Vice President and General Manager of Ingram Concrete, LLC since 2006.
From 1994 through 2006, Mr. Roberts held various positions of increasing
responsibility for Ingram, including Vice President of Sales and Operations from
2003 through 2006, Sales and Operations Manager from 1997 through 2003, and
Quality Control Manager from 1994 through 1997. From 1993 to 1994, he served as
the Quality Control Manager for Campbell Concrete. From 1990 to 1993,
Mr. Roberts served as Technical Sales Representative for Cormix
Construction Chemicals (formerly Gifford Hill Chemical), with sales
responsibility in southeast Texas. From 1989 to 1990, he served as Sales
Representative and Quality Control Assistant for Gifford-Hill Concrete in Ft.
Worth, Texas. Mr. Roberts also serves as a director on the board of the
Texas Aggregate and Concrete Association.

      
        
           

        

        
          35

          
            

          

        

        
           

        

      

      Mr. Cauley has served as
our Corporate Controller since November 2008. From 2004 through
October 2008, Mr. Cauley served as Vice President and Controller of
Grey Wolf, Inc., a provider of turnkey and contract oil and gas land drilling
services in the United States. From 2003 through 2004, he served as Assistant
Controller, and from 2000 through 2003, he served as Financial Reporting Manager
for Grey Wolf. Prior to joining Grey Wolf, Mr. Cauley was employed by
Ernst & Young LLP. Mr. Cauley is a certified public
accountant.

       

      Mr. Eugene Davis will
begin serving as the Chairman of the Board as of the Effective
Date.  Mr. Davis has been the Chairman of the Atlas Air Worldwide
Holdings, Inc. (“Altas Air”) Board of Directors and a member of Atlas Air’s
Audit and Compensation Committees since July 2004 and of Atlas Air’s Nominating
and Governance Committee since its establishment in March 2006. Mr. Davis is
Chairman and Chief Executive Officer of PIRINATE Consulting Group, LLC, a
privately held consulting firm specializing in turnaround management, merger and
acquisition consulting and hostile and friendly takeovers, proxy contests and
strategic planning advisory services for domestic and international public and
private business entities. Since forming PIRINATE in 1997, Mr. Davis has
advised, managed, sold, liquidated and served as a Chief Executive Officer,
Chief Restructuring Officer, Director, Committee Chairman and Chairman of the
Board of a number of businesses operating in diverse sectors such as
telecommunications, automotive, manufacturing, high-technology, medical
technologies, metals, energy, financial services, consumer products and
services, import-export, mining and transportation and logistics. Previously,
Mr. Davis served as President, Vice Chairman and Director of Emerson Radio
Corporation and Chief Executive Officer and Vice Chairman of Sport Supply Group,
Inc. He began his career as an attorney and international negotiator with Exxon
Corporation and Standard Oil Company (Indiana) and as a partner in two
Texas-based law firms, where he specialized in corporate/securities law,
international transactions and restructuring advisory. Mr. Davis holds a
bachelor’s degree from Columbia College, a master of international affairs
degree (MIA) in international law and organization from the School of
International Affairs of Columbia University, and a Juris Doctorate from
Columbia University School of Law. Mr. Davis is also a member of the Board of
Directors of Knology, Inc., DEX One Corp., Ambassadors International Inc.,
Rural/Metro Corp, Spectrum Brands, Inc. and TerreStar Corporation. Within the
last five years, Mr. Davis has served as a Director of American Commercial
Lines, Inc., Delta Airlines, Inc., Haights Cross Communications, Inc., SeraCare
Life Sciences Inc., Solutia, Inc., Atari, Inc., Exide Technologies, IPCS, Inc.,
Knology Broadband, Inc., Oglebay Norton Company, Tipperary Corporation, McLeod
Communications, Footstar, Inc., PRG Schultz International, Inc., Silicon
Graphics, Inc., Foamex, Inc., Ion Broadcasting, Viskase Companies, Inc. and
Media General, Inc.  As a result of these and other professional
experiences, coupled with his strong leadership qualities, Mr. Davis possesses
particular knowledge and experience in the areas of strategic planning, mergers
and acquisitions, finance, accounting, capital structure and board practices of
other corporations.

       

      Mr. Cellar will begin
serving as a director on the Board as of the Effective Date.  Since
January 2008, Mr. Cellar has been a consultant and board member to companies in
a variety of industries as well as a private investor.  From 1999 to
2008 Mr. Cellar worked for the hedge fund Bay Harbour Management,
L.C.  He was partner and portfolio manager from 2003 until his
departure.  During his tenure at Bay Harbour, the fund won many
investor awards including The Absolute Return “Hedge Fund of the Year” award in
2006.  Prior to Bay Harbour, Mr. Cellar was with the private equity
firm Remy Investors.  Before that, he was a strategy consultant at
LEK/Alcar.  He is currently a director of Aventine Renewable Energy,
Hawaiian Telcom, Home Buyers Warranty, Penn Traffic, RCN (NASDAQ:RCNI) and Six
Flags Entertainment (NYSE: Six).  He previously served as the lead
director of Telcove Inc. (f/k/a Adelphia Business Solutions) and the Chairman of
its Compensation Committee from 2004 to 2006 and as the Chairman of the board of
directors of Harwood Lumber Manufacturing, Inc. from 1999 to
2007.  Mr. Cellar has a Masters in Business Administration from the
Wharton School of Business and a BA in Economics/Business from the University of
California, Los Angeles.  Mr. Cellar is a Chartered Financial
Analyst.

       

      Mr. Lundin will begin
serving as a director on the Board as of the Effective Date.  He also
serves as the Non-Executive Chairman and a member of the Audit Committee of each
of Broder Brothers and Euromax.  Mr. Lundin is also a director of Rand
Logistics (and a member of its Audit Committee), Avtron, Inc. (and a member of
its Compensation Committee) and the Cleveland Sight Center (and the Chairman of
its Planning Committee and a member of its Executive Committee).  He
served as a director of World Technologies, Inc. (from 2008 to 2009), Oglebay
Norton Company (from 2002 to 2008) and United Shipping Alliance (from 2001 to
2006).  Since June 2008, he has served as the Head of Operations,
Chairman North Coast Minerals with Resilience Capital
Partners.  Previously, Mr. Lundin was the President and Chief
Executive Officer of Oglebay Norton Company from December 2002 to February 2008,
where he also served as the Chief Operations Officer and the President of the
Great Lakes Mineral Division and the Michigan Limestone Operations.

       

      
        
           

        

        
          36

          
            

          

        

        
           

        

      

      Mr. Rayner will begin
serving as a director on the Board as of the Effective Date.  Mr.
Rayner has served as the Chairman of the board of directors of TestEquity LLC
(TE), an Evercore portfolio company (“Test Equity”), since May 2010 and a member
of TestEquity’s board of directors since October 2009.  Mr. Rayner has
also served as a member of the board of directors of Industrial Insulation Group
(IIG) LLC since March 2010.  Previously, he served as the President
and Chief Executive Officer of Specialty Products & Insulation Co.
(SPI), a leading national distributor of insulation and architectural products,
from March 2004 to September 2009.  Prior to joining SPI, Mr. Rayner
was the President and Chief Operating Officer of Essroc Corp. (“Essroc”), the
U.S. operations of a global cement company, from 1994 to early
2002.  He had previously served as the Chief Financial Officer and
President of the Construction Materials Division of Essroc.  Prior to
joining Essroc, for twelve years, Mr. Rayner held various domestic and
international positions in corporate finance, treasury and international
business at Pepsi Co., Inc. and before that he was a consulting civil engineer
in the U.K. for six years   In 2001, Mr. Rayner was elected by
his peers as the Chairman of the Board of the Portland Cement Association, the
non-profit organization for the cement producers in the United States and
Canada.  Mr. Rayner holds a civil engineering degree from Bristol
University, England and is a professional member of the U.K. Institution of
Civil Engineers.  He has a Masters in Business Administration in
finance from the London Business School and a Diploma in International
Management from London Business School, New York University and Hautes Etudes
Commerciales, France.

       

      Mr. Sutherland will begin
serving as a director on the Board as of the Effective Date.  He has
been a Corporate Development Consultant with Armtec Infrastructure Income Fund
since July 2010.  Previously, Mr. Sutherland served as the Executive
Vice President of KCV Cement from March 2007 to April 2010 and as the Vice
President, Business Development, Integration & Strategy at Holcin (US) Inc.
from August 2003 to February 2007.  He also served as the Vice
President, Cementitious Materials with Lafarge S.A. from September 2001 to July
2003.  Mr. Sutherland holds a Bachelor of Commerce degree from the
Queen’s University.  He has also pursued graduate studies at the
Wharton School of Business.

      
        
           

        

        
          37

          
            

          

        

        
           

        

      

      DESCRIPTION
OF CAPITAL STOCK

       

      Common
Stock

       

      As of the
Emergence, the Charter will authorize the issuance of 100,000,000 shares of
Common Stock, par value $0.001 per share, and
10,000,000 shares of preferred stock, par value $0.001 per share (the “Preferred
Stock”).

       

      The
Convertible Notes shall be convertible into shares of Common Stock, in
accordance with the terms set forth herein.  As of the Effective Date
and after consummation of the transactions contemplated in the Plan (including
the Subscription Offer), we expect to have (1) issued approximately 11.9 million
shares of Common Stock (all of which then will be outstanding and
nonassessable), (2) reserved approximately 3.0 million shares of Common Stock
for issuance pursuant to the New Warrants and (3) reserved approximately 2.2
million shares of Common Stock for issuance under the Management Equity
Incentive Plan, (4) reserved no less than 5.2 million shares of Common Stock for
issuance upon conversion of the Convertible Notes offered hereby and (5) issued
0 shares of Preferred Stock.  The Board does not intend to seek the
approval of our stockholders before we issue any of our currently authorized
stock, unless law or the applicable rules of any stock exchange or market
otherwise require.  Within 30 days of the Effective Date, we intend to
issue restricted stock units and warrants to management representing
approximately 4% of the Common Stock on a fully diluted basis (as described
below under “—Management Warrants”).

       

      Each
share of Common Stock (1) will have one vote on all matters voted upon by the
stockholders of Reorganized U.S. Concrete; provided, however, that, except as
otherwise required by law, holders of Common Stock, as such, shall not be
entitled to vote on any amendment to the Charter (including any certificate of
designations relating to any series of Preferred Stock) that relates solely to
the terms of one or more outstanding series of Preferred Stock if the holders of
such affected series are entitled, either separately or together with the
holders of one or more other such series, to vote thereon pursuant to the
Charter (including any certificate of designations relating to any series of
Preferred Stock), (2) affords no cumulative voting or preemptive rights and (3)
is not convertible, redeemable, assessable or entitled to the benefits of any
sinking or repurchase fund.  Holders of Common Stock will be entitled
to dividends in such amounts and at such times as the Board in its discretion
may declare out of funds legally available therefor, subject to the preferences
that may apply to any shares of preferred stock outstanding at the
time.

       

      Preferred
Stock

       

      Pursuant
to the Charter, we are authorized to issue “blank check” preferred stock, which
may be issued from time to time in one or more series upon authorization by the
Board.  The Board, without further approval of the stockholders, is
authorized to fix the dividend rights and terms, conversion rights, voting
rights, redemption rights and terms, liquidation preferences, and any other
rights, preferences and restrictions applicable to each series of the Preferred
Stock.  The issuance of Preferred Stock, while providing flexibility
in connection with possible acquisitions and other corporate purposes could,
among other things, adversely affect the voting power of the holders of the
Common Stock and, under certain circumstances, make it more difficult for a
third party to gain control of us, discourage bids for the Common Stock at a
premium or otherwise affect the market price of the Common Stock.

       

      Anti-takeover
Effects of the Charter and the Bylaws

       

      Some
provisions of the Charter and the Bylaws may be deemed to have an anti-takeover
effect and may delay or prevent a tender offer or takeover attempt that a
stockholder might consider to be in its best interest, including those attempts
that might result in a premium over the market price for the shares held by
stockholders.

      
        
           

        

        
          38

          
            

          

        

        
           

        

      

      These
provisions include:

       

      Board
vacancies

       

      The
Charter authorizes the Board to fill vacant directorships or increase the size
of the Board, which may deter a stockholder from removing incumbent directors
and simultaneously gaining control of the Board by filling the vacancies created
by this removal with its own nominees.

       

      Cumulative
voting

       

      The
Charter does not authorize our stockholders the right to cumulative voting in
the election of directors. As a result, stockholders may not aggregate their
votes for a single director.

       

      Special
meeting of stockholders

       

      The
Charter provides that special meetings of our stockholders may be only be called
by the Chairman of the Board or by the Board pursuant to a resolution a majority
of the Board approves by an affirmative vote.

       

      Authorized
but unissued shares

       

      Our
authorized but unissued shares of Common Stock and Preferred Stock are available
for future issuance without stockholder approval. These additional shares may be
utilized for a variety of corporate purposes, including future public offerings
to raise additional capital, corporate acquisitions and employee benefit plans.
The existence of authorized but unissued shares of Common Stock and Preferred
Stock could render more difficult or discourage an attempt to obtain control of
a majority of the Common Stock by means of a proxy contest, tender offer, merger
or otherwise.

       

      Section
203 of the Delaware General Corporation Law

       

      On the
Effective Date, we do not expect to be subject to Section 203 of the Delaware
General Corporation Law (as amended, the “DGCL”) because we do not expect to
have a class of voting stock that is listed on a national securities exchange or
held of record by more than 2,000 stockholders and we have not elected by a
provision in our original Charter or any amendment thereto to be governed by
Section 203 of the DGCL. Unless we adopt an amendment to the Charter by action
of our stockholders expressly electing not to be governed by Section 203 of the
DGCL, we would generally become subject to Section 203 of the DGCL at such time
that we have a class of voting stock that is either listed on a national
securities exchange or held of record by more than 2,000 stockholders, except
that the restrictions contained in Section 203 of the DGCL would not apply if
the business combination is with an interested stockholder who became an
interested stockholder before the time that we have a class of voting stock that
is either listed on a national securities exchange or held of record by more
than 2,000 stockholders.

       

      In
general, Section 203 of the DGCL prohibits a publicly held Delaware corporation
from engaging in various ‘‘business combination’’ transactions with any
‘‘interested stockholder’’ for a period of three (3) years after the date of the
transaction in which the person became an ‘‘interested stockholder,’’
unless:

       

      
        	
                 
      

              	
                •

              	
                the
      transaction is approved by the board of directors prior to the date the
      interested stockholder obtained such
status,

              

      

       

      
        	
                 
      

              	
                •

              	
                upon
      consummation of the transaction which resulted in the stockholder becoming
      an ‘‘interested stockholder,’’ the ‘‘interested stockholder’’ owned at
      least 85% of the voting stock of the corporation outstanding at the time
      the transaction commenced, excluding specified shares,
  or

              

      

       

      
        	
                 
      

              	
                •

              	
                on
      or subsequent to such date the ‘‘business combination’’ is approved by the
      board of directors and authorized at an annual or special meeting of the
      stockholders by the affirmative vote of at least 66 2/3% of the
      outstanding voting stock which is not owned by the ‘‘interested
      stockholder.’’

              

      

       

      
        
           

        

        
          39

          
            

          

        

        
           

        

      

      A
‘‘business combination’’ includes mergers, asset sales and other transactions
resulting in financial benefit to a stockholder. An ‘‘interested stockholder’’
is a person who is the owner of 15% or more of the outstanding voting stock of
the corporation or is an affiliate or associate of the corporation and was the
owner of 15% of more of the outstanding voting stock at any time within the
three (3) years immediately prior to the date of determination, and the
affiliates and associates of any such person.  If we become subject to
Section 203 of the DGCL, the statute could prohibit or delay mergers or other
takeover or change in control attempts with respect to us and, accordingly, may
discourage attempts to acquire us.

       

      Transfer
Agent

       

      American
Stock Transfer & Trust Company, LLC is the transfer agent for the
Common Stock.

       

      Indemnification
of Directors and Officers

       

      The
Bylaws provide that each person who was or is made or is threatened to be made a
party or is otherwise involved in any action, suit or proceeding, whether civil,
criminal, administrative or investigative, by reason of the fact that he, or a
person for whom he is the legal representative, is or was a director or officer
of Reorganized U.S. Concrete or, while a director or officer of Reorganized U.S.
Concrete, is or was serving at the request of Reorganized U.S. Concrete as a
director, officer, employee or agent of another corporation or of a partnership,
joint venture, trust, enterprise or nonprofit entity, including service with
respect to employee benefit plans, is indemnified and held harmless, to the
fullest extent permitted by applicable law, against all liability and loss
suffered and expenses (including attorneys’ fees) reasonably incurred by such
person.

       

      The
rights conferred in the Bylaws includes the right to have Reorganized U.S.
Concrete pay the expenses (including attorneys’ fees) incurred in defending any
such proceeding in advance of its final disposition, provided, however, that, to
the extent required by law, such payment of expenses in advance of the final
disposition of the proceeding shall be made only upon receipt of an undertaking
by the indemnitee to repay all amounts advanced if it should be ultimately
determined that such indemnitee is not entitled to be indemnified under the
Bylaws or otherwise.

       

      The
Charter provides that no director of Reorganized U.S. Concrete shall be
personally liable to the corporation or its stockholders for monetary damages
for a breach of fiduciary duty as a director, subject to certain
exceptions.

       

      New
Warrants

       

      As of the
Effective Date and after consummation of the transactions contemplated in the
Plan, we expect to have issued the New Warrants in two tranches: Class A
Warrants to purchase an aggregate of approximately 1.5 million shares of Common
Stock (the “Class A Warrants”) and Class B Warrants to purchase an aggregate of
approximately 1.5 million shares of Common Stock (the “Class B
Warrants”).  Pursuant to the Plan, on the Effective Date, all existing
shares of common stock of Old U.S. Concrete outstanding prior to the Effective
Date (the “Old Common Stock”) will be cancelled pursuant to the Plan and we will
issue the Class A Warrants and Class B Warrants to holders of Old Common Stock
pro rata based on a holder’s stock ownership as of the Effective
Date.

       

      In
connection with the issuance of the Class A Warrants, we will enter into a Class
A Warrant Agreement (the “Class A Warrant Agreement”) with American Stock
Transfer & Trust Company, LLC, as warrant agent.  Subject to
the terms of the Class A Warrant Agreement, holders of Class A Warrants will be
entitled to purchase shares of Common Stock at an exercise price of $22.69 per
share.  In connection with the issuance of the Class B Warrants, we
will enter into a Class B Warrant Agreement (the “Class B Warrant Agreement”
and, together with the Class A Warrant Agreement, the “Warrant Agreements”) with
American Stock Transfer & Trust Company, as warrant
agent.  Subject to the terms of the Class B Warrant Agreement, holders
of Class B Warrants will be entitled to purchase shares of Common Stock at an
exercise price of $26.68 per share.  Subject to the terms of the
Warrant Agreements, both classes of New Warrants will have a seven−year term and
will expire at 5:00 p.m., New York City time, on the seventh anniversary of the
Effective Date.  The New Warrants may be exercised for cash or on a
net issuance basis.

      
        
           

        

        
          40

          
            

          

        

        
           

        

      

      If, at
any time before the expiration date of the New Warrants, we pay or declare a
dividend or make a distribution on the Common Stock payable in shares of our
capital stock, subdivide or combine our outstanding shares of Common Stock into
a greater or lesser number of shares or issue any shares of our capital stock by
reclassification of Common Stock, then the exercise price and number of shares
issuable upon exercise of the New Warrants will be adjusted so that the holders
of the New Warrants will be entitled to receive the aggregate number and kind of
shares that they would have received as a result of the event if their New
Warrants had been exercised immediately before the event.  In
addition, if we distribute to holders of the Common Stock in an Extraordinary
Distribution (defined in each Warrant Agreement to include assets, securities or
warrants to purchase securities), then the exercise price of the New Warrants
will be decreased by the amount of cash and/or the fair market value of any
securities or assets paid or distributed on each share of Common Stock; however,
no adjustment to the exercise price will be made if, at the time of an
Extraordinary Distribution, we make the same distribution to holders of New
Warrants as it makes to holders of Common Stock pro rata based on the number of
shares of Common Stock for which the New Warrants are exercisable.

       

      In the
event of a Fundamental Change (defined in each Warrant Agreement to include
transactions such as a mergers, consolidations, sales of assets, tender offers,
exchange officers, reorganizations, reclassifications, compulsory share
exchanges or liquidations in which all or substantially all of the outstanding
Common Stock is converted into or exchanged for stock, other securities, cash or
assets), if the consideration paid consists 90% or more of publicly traded
securities, each holder of a New Warrant will have the right upon any subsequent
exercise to receive the kind and amount of stock, other securities, cash and
assets that such holder would have received if the New Warrant had been
exercised immediately prior to such Fundamental Change.  If a
Fundamental Change occurs (other than a Fundamental Change in which the
consideration paid consists at least 90% of publicly traded securities), then
each holder of a New Warrant will be entitled to receive an amount equal to the
Fair Market Value (as defined in each of the Warrant Agreements) of their New
Warrant on the date the Fundamental Change is consummated.  For
purposes of a Fundamental Change, Fair Market Value of a New Warrant shall be
determined based on such factors as the person making the determination shall
consider relevant, including but not limited to the factors set forth in the
applicable Warrant Agreement, but if the consideration per share of Common Stock
exceeds the exercise price of a New Warrant, the fair market value of the New
Warrant shall be deemed to equal the greater of (a) the excess of such
consideration per share over the exercise price or (b) an amount equal to the
fair market value of the New Warrant as determined in accordance with the first
clause of this sentence and calculated as of the consummation of the Fundamental
Change.

       

      No
adjustment in the exercise price of New Warrants shall be required unless such
adjustment would require an increase or decrease of at least $0.05 in the
exercise price; provided that any adjustments that are not required to be made
shall be carried forward and taken into account in any subsequent
adjustment.

       

      Management
Warrants

       

      Warrants
to purchase 0.35020 shares of Common Stock will be issued in respect of each
award granted under the Management Equity Incentive Plan (whether granted in the
form of an option or restricted stock unit); provided, that the total number of
restricted stock units or options, as the case may be, receiving such warrants
shall not exceed 623,221 for the restricted stock or options issued to
management, the Board and employees within 30 days of the Effective Date
pursuant to the terms of the Management Equity Incentive Plan, assuming each
such restricted stock unit or option represents one share of Common
Stock.  The warrants will become exercisable (i) upon the delivery of
a Conversion Event Notice by U.S. Concrete, (ii) upon the occurrence of a
Fundamental Change of Control or (iii) when holders of Convertible Notes
representing 25% of the aggregate principal amount of the Convertible Notes
outstanding as of the Convertible Notes Closing Date have elected to convert
their Convertible Notes into shares of Common Stock (an “Optional Conversion
Trigger Event”), and in each case, will be exercisable by a holder thereof at an
exercise price of $.01 per share (x) in connection with our delivery of a
Conversion Event Notice, at any time following the date of the Conversion Event
Notice to the close of business on the business day immediately preceding the
Conversion Termination Date, (y) in connection with the occurrence of a
Fundamental Change of Control, at any time following the Fundamental Change of
Control Date to the Maturity Date and (z) in connection with an Optional
Conversion Trigger Event, at any time following the occurrence of such Optional
Conversion Trigger Event to the Maturity Date.  The warrants shall not
be detachable from such restricted stock unit, option or other
award.

      
        
           

        

        
          41

          
            

          

        

        
           

        

      

      THE
SUBSCRIPTION OFFER

       

      Purpose
of the Subscription Offer

       

      In
connection with the Restructuring, eligible holders of the Existing Notes as of
the Record Date will be granted the right to subscribe to purchase their pro
rata share of the Convertible Notes (calculated based on the aggregate amount of
Existing Notes outstanding as the Record Date, minus the aggregate principal
amount of Existing Notes owned by the Company as of such date).  We
intend to use net proceeds from the Subscription Offer for the issuance and sale
of the Convertible Notes to repay the DIP Credit Facility, for working capital
and for general corporate purposes.  Pursuant to and subject to the
terms and conditions of the Support Agreement, the Purchasing Parties have
committed to purchase their Pro Rata Portion of the Convertible Notes and any
Convertible Notes not otherwise purchased in the Subscription Offer, in
connection with our exercise of the Put Option, such that we shall issue and
sell $55,000,000 in aggregate principal amount of the Convertible
Notes.  See “The Support Agreement.”

       

      Terms
of the Subscription Offer

       

      Upon the
terms and subject to the conditions set forth in this Supplement, we are
offering eligible holders of Existing Notes the opportunity to purchase an
aggregate of $55,000,000 in principal amount of Convertible Notes at an offering
price of 100%.  Eligible holders are those that previously certified
to the Subscription Agent their status as a QIB or institutional accredited
investor on their Eligibility Questionnaires, in accordance with the
instructions set forth on the Eligibility Questionnaire.  Only
eligible holders should have received a copy of this Supplement and a
Subscription Certificate.  Eligible holders of Existing Notes that
subscribe to purchase Convertible  Notes may elect to subscribe to
purchase up to the amount (with a minimum subscription of $1,000 and in minimum
incremental multiples of $1,000 above $1,000 or if less, the full amount) equal
to their respective Pro Rata Portion, which is equal to the product (rounded
down to the nearest $1,000) of (a) a fraction, the numerator of which is the
aggregate principal amount of Existing Notes held by such holder as of the
Record Date, and the denominator of which is $272,567,000, which is the
aggregate principal amount of all Existing Notes outstanding as of the Record
Date (excluding the aggregate principal amount of Existing Notes owned by the
Company as of such date) and (b) $55,000,000, which is the aggregate principal
amount of Convertible Notes to be offered in the Subscription
Offer.  The Purchasing Parties will purchase Convertible Notes in
excess of their Pro Rata Portion to the extent that the eligible holders do not
subscribe to purchase $55,000,000 of Convertible Notes in the aggregate and we
exercise the Put Election.  Eligible holders of Convertible Notes that
are not a party to the Support Agreement will not be able to subscribe to
purchase Convertible Notes in excess of their Pro Rata Portion.

       

      Each
electing, eligible holder (including the Purchasing Parties) must cause its
broker, custodian bank or other nominee to deliver its Subscription Certificate
to the Subscription Agent prior to the Subscription Offer Expiration
Time.  At the Subscription Acceptance Date, each electing holder of
Existing Notes for which U.S. Concrete has accepted its subscription will (i)
enter into and become bound by the terms and conditions of the Purchase
Agreement pursuant to which such holder will purchase its Subscription Amount of
Convertible Notes and, if applicable, its Put Participation Amount and (ii)
agree to be bound by the terms and conditions of the Registration Rights
Agreement effective as of the Convertible Notes Closing Date.  Each
such electing holder must cause its broker, dealer or other nominee to deliver
its Subscription Payment and Put Participation Payment, if applicable, on or
prior to the Subscription Payment Deadline or the Purchasing Party Payment
Deadline, as applicable.  We are, however, under no obligation to
accept any Subscription Certificates or any subscriptions made during the
Subscription Offer; provided, that we shall notify the electing holder
associated with any Subscription Certificate validly delivered and not withdrawn
as of the Subscription Offer Expiration Time if we do not accept such
Subscription Certificate on the Subscription Acceptance Date.

      
        
           

        

        
          42

          
            

          

        

        
           

        

      

      Purchase
Agreement

       

      Each
electing holder associated with a Subscription Certificate set forth on the
Subscription Acceptance Notice will become party to and be bound by the terms
and conditions of the Purchase Agreement as of the Subscription Acceptance
Date.

       

      U.S.
Concrete’s obligation to issue and sell Convertible Notes pursuant to the
Purchase Agreement is subject to satisfaction of the following
conditions:

       

      
        	
                 
      

              	
                •

              	
                the
      order confirming the Plan (the “Confirmation Order”) by the Bankruptcy
      Court in the Chapter 11 Cases shall have become a final order, in full
      force and effect without reversal, modification or stay and the
      consummation of the Plan on the terms and conditions set forth therein, as
      amended and in effect as of the date of the Confirmation
      Order;

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      Effective Date and the Convertible Notes Closing Date shall occur no later
      than October 1, 2010;

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      Purchasing Parties shall have deposited funds as provided in the Purchase
      Agreement and in the Support Agreement sufficient to satisfy in full their
      obligation under the Support Agreement and the transactions contemplated
      by the Support Agreement shall occur concurrently with the closing of the
      Subscription Offer;

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      Subscription Agent shall have received a fully executed Subscription
      Certificate for each eligible holder purchasing Convertible Notes in the
      Subscription Offer (including the Purchasing Parties, each a
      “Buyer”);

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      Trustee shall have executed and delivered the Convertible Notes Indenture
      and it shall have become binding on and enforceable against the
      Trustee;

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      parties to the Convertible Notes Security Documents, other than U.S.
      Concrete or the guarantors, shall have executed and delivered the
      Convertible Notes Security Documents and the Convertible Notes Security
      Documents shall be binding on and enforceable against the parties thereto
      other than U.S. Concrete and the
guarantors;

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      parties to the Intercreditor Agreement, other than U.S. Concrete or the
      guarantors, shall have executed and delivered to U.S. Concrete the
      Intercreditor Agreement and the Intercreditor Agreement shall be binding
      on and enforceable against the parties thereto other than U.S. Concrete
      and the guarantors;

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      Revolving Facility credit agreement shall have been executed and delivered
      by all requisite parties (other than U.S. Concrete and the guarantors) and
      be binding on and enforceable against all parties thereto (other than U.S.
      Concrete and the guarantors), all conditions to funding thereunder shall
      have been satisfied with the closing of the Transactions (as defined in
      the Purchase Agreement), all obligations under the DIP Credit Facility
      (other than contingent obligations not then due and payable) will have
      been repaid in full, all commitments under the DIP Credit Facility will
      have been terminated and all liens and security interests related to the
      DIP Credit Facility will have been terminated or
  released;

              

      

       

      
        	
                 
      

              	
                •

              	
                no
      legal action or litigation shall have been taken or instituted, or
      threatened by a third party, which seeks to (or does) restrain, prevent or
      otherwise impose conditions on the Transactions which individually or in
      the aggregate could reasonably be expected to result in a Material Adverse
      Effect (as defined in the Purchase Agreement) or that would materially and
      adversely affect the consummation of the
  Transactions;

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      representations and warranties of each Buyer contained in the Transaction
      Documents (as defined in the Purchase Agreement) to which such Buyer is a
      party shall be true and correct in all material respects (other than those
      representations and warranties that are qualified by “materiality” or
      “material adverse effect”, which shall be true and correct in all
      respects) as of the date when made and as of the Convertible Notes Closing
      Date as though made at that time (except for representations and
      warranties that speak as of a specific date, which shall be true and
      correct as of such specified date), and each Buyer shall have performed,
      satisfied and complied in all material respects with the covenants,
      agreements and conditions required by the Purchase Agreement to be
      performed, satisfied or complied with by such Buyer at or prior to the
      Convertible Notes Closing Date;

              

      

       

      
        
           

        

        
          43

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                •

              	
                no
      action shall have been taken and no statute, rule, regulation or order
      shall have been enacted, adopted or issued by any federal, state or
      foreign governmental or regulatory authority of competent jurisdiction
      that would, as of the Convertible Notes Closing Date, render impossible
      the issuance or sale of the Convertible Notes or the consummation of the
      Transactions; and

              

      

       

      
        	
                 
      

              	
                •

              	
                no
      injunction or order of any federal, state or foreign court shall have been
      issued that would, as of the Convertible Notes Closing Date, prevent the
      issuance or sale of the Convertible
Notes.

              

      

       

      The obligation of each Buyer to
purchase Convertible Notes at the Convertible Notes Closing is subject to
satisfaction of the following conditions:

       

      
        	
                 
      

              	
                •

              	
                the
      representations and warranties of U.S. Concrete and the guarantors
      (collectively, the “Issuer Parties”) set forth in Section 3 of the
      Purchase Agreement shall be true and correct in all material respects
      (other than those representations and warranties that are qualified by
      “materiality” or “material adverse effect,” which shall be true and
      correct in all respects) as of the date of the Purchase Agreement and as
      of the Convertible Notes Closing Date as though made at that time (except
      for representations and warranties that speak as of a specific date, which
      shall be true and correct as of such specified
  date),

              

      

       

      
        	
                 
      

              	
                •

              	
                each
      of the Issuer Parties shall have performed, satisfied and complied in all
      material respects with the covenants, agreements and conditions required
      by the Purchase Agreement and the Transaction Documents to which it is a
      party to be performed, satisfied or complied with by such Issuer Party at
      or prior to the Convertible Notes Closing
Date;

              

      

       

      
        	
                 
      

              	
                •

              	
                there
      shall not have occurred a dismissal or conversion of any Chapter 11 Case
      to a case under chapter 7 of the Bankruptcy Code or the appointment of a
      chapter 11 trustee in any Chapter 11
Case;

              

      

       

      
        	
                 
      

              	
                •

              	
                no
      provision of the Plan (as filed with the Bankruptcy Court) shall have been
      amended, supplemented or otherwise modified any respect in a manner
      materially adverse to the Buyers without the consent of the Buyers (such
      consent not to be unreasonably withheld or
  delayed);

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      Confirmation Order by the Bankruptcy Court in the Chapter 11 Cases shall
      have become a final order, in full force and effect without reversal,
      modification or stay; the Plan shall have been consummated on the terms
      and conditions set forth in the Purchase Agreement, as amended and in
      effect as of the date of the Confirmation
Order;

              

      

       

      
        	
                 
      

              	
                •

              	
                U.S.
      Concrete shall provide evidence to the Buyers, in form and substance
      reasonably satisfactory to the Buyers that substantially concurrently with
      the issuance of the Convertible Notes all obligations under the DIP Credit
      Facility (other than contingent obligations not then due and payable) have
      been repaid in full, all commitments under the DIP Credit Facility have
      been terminated and all liens and security interests related to the DIP
      Credit Facility have been terminated or
  released;

              

      

       

      
        	
                 
      

              	
                •

              	
                except
      to the extent disclosed by U.S. Concrete in any filing made by U.S.
      Concrete with the SEC prior to July 20, 2010, in the Plan or in writing to
      the Purchasing Parties on July 20, 2010, (i) there shall not have occurred
      or become known to the Buyers any events, developments, conditions or
      circumstances that, individually or in the aggregate, have had or could
      reasonably be expected to have a Material Adverse Effect and (ii) no
      material assets of the Debtors shall have been sold or agreed to be sold
      outside of the ordinary course of business from and after the date of the
      Purchase Agreement;

              

      

       

      
        	
                 
      

              	
                •

              	
                (i)
      the Issuer Parties shall have entered into the Transaction Documents and
      U.S. Concrete shall have delivered the executed versions of the
      Transaction Documents to the Purchasing Parties on the Convertible Notes
      Closing Date, and (ii) on the Effective Date, (A) there not being any
      event or condition which constitutes an event of default, or which upon
      notice, lapse of time, or both would constitute an event of default, under
      the Transaction Documents and (B) the Transaction Documents being in full
      force and effect;

              

      

       

      
        
           

        

        
          44

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                •

              	
                the
      payment of the fees and reimbursement of out-of-pocket costs and expenses
      as set forth in the Purchaser Letter, the Plan and the letter, dated as of
      February 22, 2010, between U.S. Concrete and Paul, Weiss, Rifkind, Wharton
      & Garrison LLP (“Paul Weiss”) regarding payment by U.S. Concrete of
      fees and expenses to Paul Weiss as counsel to a group formed by certain
      holders of the Existing Notes (the “Expense Agreement”), in accordance
      with the terms hereof and thereof; provided, that the Purchasing Parties
      shall cause Paul Weiss to provide U.S. Concrete with an estimate of its
      fees and expenses through the Convertible Notes Closing Date at least two
      (2) business days prior to the Convertible Notes Closing
    Date;

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      Effective Date and the Convertible Notes Closing Date shall occur on or
      prior to October 1, 2010;

              

      

       

      
        	
                 
      

              	
                •

              	
                as
      of the date of this Supplement and on the Convertible Notes Closing Date,
      the materials to be used in connection with the Subscription Offer
      regarding U.S. Concrete, its subsidiaries and the Convertible Notes, for
      distribution to other holders of the Existing Notes, when furnished and
      taken as a whole, shall be complete and correct in all material respects
      and shall not contain any untrue statement of a material fact or omit to
      state a material fact necessary to make the statements contained therein,
      in light of the circumstances under which such statements are made, not
      misleading;

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      following shall be true and correct: each of U.S. Concrete’s filings with
      the SEC since January 1, 2010 is, as of its respective filing date,
      complete and correct in all material respects and does not contain any
      untrue statement of a material fact or omit to state a material fact
      necessary to make the statements contained therein, in light of the
      circumstances under which such statements are made, not
      misleading;

              

      

       

      
        	
                 
      

              	
                •

              	
                substantially
      concurrently with the issuance of the Convertible Notes, the Debtors and
      the lenders under the Revolving Facility (i) having entered into the
      definitive documentation for the Revolving Facility and any related
      documentation and reasonably satisfactory to the Buyers and (ii) all
      conditions to borrowing under the Revolving Facility shall be satisfied or
      waived (provided that if such waiver could reasonably be expected to be
      adverse in any material respect to the interests of the Purchasing
      Parties, the Purchasing Parties shall have consented to such waiver) on or
      prior to the Effective Date, and (iii) on the Effective Date (y) there
      shall not be any event or condition which constitutes an event of default,
      or which upon notice, lapse of time, or both would become an event of
      default, under the Revolving Facility and (z) the Revolving Facility shall
      be in full force and effect;

              

      

       

      
        	
                 
      

              	
                •

              	
                on
      the Convertible Notes Closing Date, the Purchasing Parties shall have
      received, and the Trustee shall be entitled to rely on, an opinion
      from Kirkland & Ellis LLP, counsel to the Issuer Parties, dated as of
      the Convertible Notes Closing Date and addressed to the Purchasing
      Parties, in form and substance reasonably satisfactory to the Purchasing
      Parties;

              

      

       

      
        	
                 
      

              	
                •

              	
                on
      the Convertible Notes Closing Date, the Purchasing Parties shall have
      received, and the Trustee shall be entitled to rely on, (i) an opinion
      from Baker Botts L.L.P., Texas counsel to the Issuer Parties, dated as of
      the Convertible Notes Closing Date addressed to the Purchasing Parties, in
      form and substance reasonably satisfactory to the Purchasing Parties, and
      (ii) opinions from any other counsel to the Issuer Parties, dated as of
      the Convertible Notes Closing Date and addressed to the Purchasing
      Parties, as are delivered in connection with the Revolving
      Facility;

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      Purchasing Parties shall have received an officers’ certificate and
      secretary certificate of each of the Issuer Parties, dated the Convertible
      Notes Closing Date, signed on behalf of each Issuer Party with respect to
      the matters contemplated in the Purchase
  Agreement;

              

      

       

      
        	
                 
      

              	
                •

              	
                on
      the Convertible Notes Closing Date, the Purchasing Parties shall have
      received (i) the Convertible Notes Security Documents to the extent and in
      the manner provided for in the Convertible Notes Indenture and the
      Convertible Notes Security Documents and as described herein, in each case
      executed by the parties thereto, (ii) evidence that all of the liens
      on the collateral other than those liens permitted by the Convertible
      Notes Indenture and the applicable Convertible Notes Security Documents
      have been released, terminated or arrangements to further release or
      terminate have been made (which with respect to any mortgages currently
      encumbering any of the collateral, shall be deemed satisfied so long as
      the title insurer is irrevocably committed to issue lender’s title
      insurance policies insuring that the holders of the Convertible Notes have
      a first priority lien on the real estate Collateral (subject to permitted
      liens as described in the Convertible Notes Indenture and Convertible
      Notes Security Documents)) and (iii) all documents necessary to establish
      that the Collateral Agent for the benefit of the holders of the Securities
      (as defined in the Purchase Agreement) will have a perfected
      first-priority security interest or lien on the Collateral (as defined in
      the Purchase Agreement) (subject to permitted liens as described in the
      Convertible Notes Indenture and the Convertible Notes Security Documents),
      as contemplated in the Purchase Agreement and in this Supplement, shall
      have been delivered to the Collateral
Agent;

              

      

       

      
        
           

        

        
          45

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                •

              	
                on
      the Convertible Notes Closing Date, the Purchasing Parties shall have
      received the Convertible Notes executed by U.S. Concrete and the
      Guarantees executed by the guarantors, and the Securities shall be in full
      force and effect at all times from and after the Convertible Notes Closing
      Date; and

              

      

       

      
        	
                 
      

              	
                •

              	
                all
      governmental, shareholder or third party consents, if any, necessary for
      the consummation of the Transaction having been
  obtained.

              

      

       

      This
summary of the Purchase Agreement is qualified in its entirety by the full text
of the Purchase Agreement, the form of which is attached hereto as Exhibit
B.  A copy of any exhibit referred to in the Purchase Agreement
may be obtained by contacting our Investor Relations Department at the address
set forth under the caption “Incorporation by Reference.”

       

      The
Support Agreement

       

      Pursuant
to the terms of the Support Agreement, the Purchasing Parties have agreed,
subject to the terms and conditions set forth therein, to subscribe to purchase
on an aggregate basis up to $55,000,000 in principal amount of the Convertible
Notes in the event that such Convertible Notes are not otherwise subscribed for
purchase by eligible holders of the Existing Notes.  See “The Support
Agreement.”

       

      Expiration
and Extensions; Amendments and Termination

       

      Unless
otherwise provided in the Support Agreement, you may subscribe to purchase
Convertible Notes at any time prior to the Subscription Offer Expiration Time by
having your broker, custodian bank or other nominee submit your Subscription
Certificate to the Subscription Agent on or prior to the Subscription Offer
Expiration Time.  If you or your broker, custodian bank or other
nominee use mail for your Subscription Certificate, we recommend that you use
insured, registered mail, return receipt requested.  In order to
participate in the Subscription Offer, you must also cause your broker,
custodian bank or other nominee to deliver your Subscription Payment and Put
Participation Payment, if applicable, to the Escrow Agent on or prior to the
Subscription Payment Deadline or the Purchasing Party Payment Deadline, as
applicable, unless we notify you on the Subscription Acceptance Date that we
have not accepted your subscription .

       

      We may
extend the Subscription Offer Expiration Time or terminate the Subscription
Offer at any time in our sole discretion. We will extend the Subscription Offer
Expiration Time as required by applicable law, and may choose to extend it if we
decide to give eligible holders more time to elect to subscribe to purchase
Convertible Notes. If we elect to extend the previously scheduled Subscription
Offer Expiration Time, we will issue a press release announcing such extension
no later than 9:00 a.m., New York City time, on the business day following the
previously scheduled Subscription Offer Expiration Time and shall provide the
Subscription Agent with written notice of any such extension.

       

      We
reserve the right, in our sole discretion, to amend or modify the terms of the
Subscription Offer.  If we amend the Subscription Offer in a manner
that we determine constitutes a material or significant change, we will extend
the Subscription Offer Expiration Time so that it remains open for a period that
provides the holders a reasonable time to review and evaluate the change after
it is communicated to holders.  The exact length of such extension
will depend upon the significance of the amendment.

       

      Without
limiting the manner in which we may choose to make a public announcement of any
delay, extension, amendment or termination of the Subscription Offer, we will
comply with applicable securities laws by disclosing any such amendment by means
of a supplement to this Supplement that we distribute to the holders of the
Existing Notes.  We will have no other obligation to publish,
advertise or otherwise communicate any such public announcement other than by
making a timely release through any appropriate news agency.

      
        
           

        

        
          46

          
            

          

        

        
           

        

      

      Method
of Subscription

       

      You must
properly complete and execute Section 1 of your Subscription Certificate with
any required signature guarantees or other supplemental documentation and
deliver your Subscription Payment and Put Participation Payment, if applicable,
to your broker, custodian bank or other nominee in accordance with the
instructions set forth herein, in the Subscription Certificate and the
instructions previously delivered by your broker, custodian bank or other
nominee.  Upon receipt of your Subscription Certificate, your broker,
custodian bank or other nominee must review and verify certain information set
forth in Section 1 of your Subscription Certificate, complete Section 2 of your
Subscription Certificate and return it to the Subscription Agent on or prior to
the Subscription Offer Expiration Time.  Your broker, custodian bank
or other nominee must actually receive your partially completed Subscription
Certificate and your Subscription Payment and Put Participation Payment, if
applicable, in sufficient time to enable such entity to complete and deliver
your Subscription Certificate prior to the Subscription Offer Expiration
Time.  Your broker, custodian bank or other nominee must deliver your
Subscription Payment and Put Participation Payment, if any, to the Escrow Agent
on or prior to the Subscription Payment Deadline or the Purchasing Party Payment
Deadline, as applicable.

       

      Your
subscription to purchase Convertible Notes will not be considered delivered
unless the Subscription Agent actually receives from your broker, custodian bank
or other nominee all of the required documents (including the fully completed
Subscription Certificate).  Furthermore, your subscription shall be
null and void as of the Subscription Payment Deadline or the Purchasing Party
Payment Deadline, as applicable, if your broker, custodian bank or other nominee
has not delivered your Subscription Payment and Put Participation Payment, if
applicable, to the Escrow Agent as of such time.  U.S. Concrete shall
be able to exercise all rights and remedies under the Support Agreement in the
event any Purchasing Party fails to cause the delivery of any portion of its
Subscription Amount and Put Participation Amount, if any, by the Purchasing
Party Payment Deadline.

       

      Delivery
of Subscription Materials

       

      You
should deliver your Subscription Certificate and all related documents to your
broker, custodian bank or other nominee in accordance with directions previously
provided by such entity as soon as possible in order to provide such broker,
custodian bank or other nominee with sufficient time to complete your
Subscription Certificate and deliver it, on your behalf, by one of the methods
described below prior to the Subscription Offer Expiration Time; provided, that
any subscription materials sent via electronic mail should be sent to both of
the email addresses set forth below:

       

      By
First Class Mail, Hand, Express Mail, Overnight Courier or Electronic
Mail:

      

      Wells
Fargo Bank, National Association

      45
Broadway, 14th Floor

      Attention:  Corporate
Trust Services; Matthew Sherman - Vice President

      New York,
New York  75202

      Matthew.Sherman@wellsfargo.com
and Lindsey.Widdis@wellsfargo.com

      

      You
should contact your broker, custodian bank or other nominee if you have not
received instructions for delivery of your Subscription Certificate or your
Subscription Payment and Put Participation Payment, if applicable, to such
broker, custodian bank or other nominee. We are not responsible if you do not
receive such directions from your broker, custodian bank or nominee or if you
receive them without sufficient time to respond.  Furthermore, we are
not responsible if your broker, custodian bank or nominee fails to complete your
Subscription Certificate or deliver it or your Subscription Payment and Put
Participation Payment, if applicable, by the applicable deadline.

       

      You, your
broker, custodian bank or other nominee may call the Subscription Agent at (212)
515-1565 with questions regarding your Subscription Materials.  You,
your broker, custodian or other nominee may call the Settlement Agent at (615)
251-0733 with questions regarding the process of settling the Convertible Notes
for which you have subscribed at the Convertible Notes Closing.

      
        
           

        

        
          47

          
            

          

        

        
           

        

      

      Delivery
to an address or by any method other than as set forth above will not constitute
valid delivery.  Furthermore, your Subscription Certificate shall not
be complete until it is duly completed by your broker, custodian bank or other
nominee.

       

      Calculation
of Amount Subscribed for Purchase

       

      If you do
not indicate the aggregate principal amount of Convertible Notes that you wish
to subscribe to purchase, then you will be deemed to have subscribed to purchase
the amount of Convertible Notes into which the Subscription Payment you
delivered to the Escrow Agent is divisible.

       

      SIGNATURE
GUARANTEE MAY BE REQUIRED

       

       YOUR
SIGNATURE ON EACH SUBSCRIPTION CERTIFICATE MUST BE GUARANTEED BY AN ELIGIBLE
INSTITUTION, NAMELY A MEMBER FIRM OF A DOMESTIC STOCK EXCHANGE OR A COMMERCIAL
BANK OR TRUST COMPANY OR A SAVINGS BANK OR CREDIT UNION, SUBJECT TO STANDARDS
AND PROCEDURES ADOPTED BY THE SUBSCRIPTION AGENT, UNLESS:

       

      
        	
                 
      

              	
                •

              	
                YOUR
      SUBSCRIPTION CERTIFICATE PROVIDES THAT CONVERTIBLE NOTES ARE TO BE
      REGISTERED TO THE HOLDER NAMED ON YOUR ELIGIBILITY QUESTIONNAIRE;
      OR

              

      

       

      
        	
                 
      

              	
                •

              	
                YOU
      ARE AN ELIGIBLE GUARANTOR INSTITUTION (AS DEFINED UNDER RULE 17ad-15 OF
      THE EXCHANGE ACT).

              

      

       

      Provision
of Notice to Beneficial Owners

       

      If you
are a broker, a trustee or a depositary for securities who holds Existing Notes
for the account of others as of 5:00 p.m., New York City time as of the Record
Date, you should notify the respective beneficial owners of such Existing Notes
of the Subscription Offer as soon as possible to find out their intentions with
respect to electing to subscribe to purchase Convertible Notes. Any beneficial
owner of Existing Notes as of the Record Date that desires to participate in the
Subscription Offer must first complete and submit (or cause its representative
or nominee to prepare and submit) an Eligibility Questionnaire, certifying that
it is a QIB or institutional accredited investor, to the Subscription Agent in
accordance with the instructions set forth thereon before receiving this
Supplement or the Subscription Certificate.  You should obtain
instructions from any eligible beneficial owner with respect to its election to
subscribe to purchase Convertible Notes and delivery of its Subscription Payment
and Put Participation Payment, if applicable, as set forth in the instructions
we have provided to you, for your distribution to beneficial
owners.  You should complete the appropriate Subscription Certificates
and submit them to the Subscription Agent and the  Subscription
Payments and Put Participation Payments, if applicable, to the Escrow Agent, in
accordance with instructions we have previously provided to you.

       

      Instructions
for Completing Your Subscription Certificate

       

      You
should read and follow the instructions accompanying the Subscription
Certificate carefully.

       

      You are
responsible for the method of delivery of your Subscription Certificate to the
Subscription Agent and Subscription Payment and Put Participation Payment, if
applicable, to the Escrow Agent, in each case, whether by you, your broker,
custodian bank or other nominee. If you or your broker, custodian bank or other
nominee send your Subscription Certificate by mail, we recommend that you send
them by registered mail, properly insured, with return receipt requested. Your
broker, custodian bank or other nominee should allow a sufficient number of days
to ensure delivery to the Subscription Agent prior to the Subscription Offer
Expiration Time.

       

      Determinations
Regarding Subscriptions to Purchase Convertible Notes

       

      We will
decide all questions concerning the timeliness, validity, form and eligibility
of the election of your subscription to purchase Convertible Notes and any such
determinations by us will be final and binding. We, in our sole discretion, may
waive, in any particular instance, any defect or irregularity, or permit, in any
particular instance, a defect or irregularity to be corrected within such time
as we may determine. We will not be required to make uniform determinations in
all cases. We may reject your subscription to purchase Convertible Notes because
of any defect or irregularity. We will not accept any subscription to purchase
Convertible Notes until all irregularities have been waived by us or cured by
you within such time as we decide, in our sole discretion.

      
        
           

        

        
          48

          
            

          

        

        
           

        

      

      Neither
us nor the Subscription Agent will be under any duty to notify you, your broker,
custodian bank or other nominee of any defect or irregularity in connection with
your submission of Subscription Certificates nor will be liable for failure to
notify you or any such entity of any defect or irregularity. We reserve the
right to reject your subscription to purchase if your method of subscription is
not in accordance with the terms of the Subscription Offer. We will also not
accept your subscription to purchase Convertible Notes if our issuance of the
Convertible Notes to you could be deemed unlawful under applicable
law.

       

      Questions
about the Subscription Offer

       

      If you,
your broker, custodian bank or other nominee have any questions or require
assistance regarding the method of subscription or requests for additional
copies of this Supplement or the instructions as to the use of the Subscription
Certificate, please contact Wells Fargo Bank, National Association, the
Subscription Agent, at (212) 515-1565.

       

      Subscription
Agent, Escrow Agent and Settlement Agent

       

      We have
appointed Wells Fargo Bank, National Association to act as the Subscription
Agent and the Escrow Agent for the Subscription Offer. We have appointed U.S.
Bank National Association to act as the Settlement Agent for the Subscription
Offer.  We will pay certain fees and all reasonable and out-of-pocket
expenses of the Subscription Agent, the Escrow Agent and the Subscription Agent
related to their acting in such roles in connection with the Subscription Offer
and have also agreed to indemnify such agents from losses, liabilities, costs,
damages and expenses that it may incur in connection with the Subscription
Offer.  However, all commissions, fees and expenses (including
brokerage commission and fees and transfer taxes) incurred in connection with
the subscription to and the purchase of the Convertible Notes will be for the
account of the person subscribing to and purchasing the Convertible Notes, and
none of such commissions, fees or expenses will be paid by us, the Subscription
Agent, the Escrow Agent or the Settlement Agent.

       

      Revocation,
Withdrawal or Cancellation of Subscription Certificates

       

      Unless
you are a party to the Support Agreement, you may revoke, withdraw or otherwise
cancel your previously delivered Subscription Certificate at any time prior to
the Subscription Offer Expiration Time. To do so, please cause your broker,
custodian bank or other nominee to deliver a written notice of withdrawal to the
Subscription Agent stating:

       

      
        	
                 
      

              	
                •

              	
                the
      name of the holder; and

              

      

       

      
        	
                 
      

              	
                •

              	
                a
      statement that the holder is withdrawing its subscription to purchase
      Convertible Notes.

              

      

       

      Your
notice of withdrawal must be received by the Subscription Agent no later than
the Subscription Offer Expiration Time.

      
        
           

        

        
          49

          
            

          

        

        
           

        

      

      DESCRIPTION
OF CERTAIN OTHER INDEBTEDNESS

       

      The
final terms of the Revolving Facility have not been agreed upon and may be
different from those described below.  Any such differences may be
material.

       

      Revolving
Credit Facility

       

      U.S.
Concrete will enter into the Revolving Facility contemporaneously with the
consummation of the Convertible Notes offering.  Up to $30 million of
the Revolving Facility is available for the issuance of letters of credit, and
any such issuance of letters of credit will reduce the amount available for
loans under the Revolving Facility.  Advances under the Revolving
Facility are limited by a borrowing base of (a) 85% of eligible accounts
receivable plus (b) the lesser of (i) 85% of the appraised net orderly
liquidation value of eligible inventory and (ii) 50% of the eligible
inventory  plus (c) the lesser of (i) $15,000,000 and (ii) the sum of
(A) 85% of the appraised net orderly liquidation value of eligible trucks plus
(B) 80% of the cost of newly acquired eligible trucks since the date of the
latest appraisal of eligible trucks minus (C) the depreciation amount applicable
to eligible trucks since the date of the latest appraisal of eligible trucks
minus (d) such reserves as JPMorgan Chase Bank, N.A., as administrative agent
(in such capacity, the “Administrative Agent”) may establish from time to time
in its permitted discretion.  In addition, prior to the delivery of
U.S. Concrete’s financial statements for the fiscal quarter ended September 30,
2011, there will be an availability block (the “Availability Block”) of
$15,000,000 and after such date, unless the fixed charge coverage ratio for any
trailing twelve month period is greater than or equal to 1.00:1.00, there will
be an Availability Block of $15,000,000, to be increased monthly by $1,000,000
up to a maximum of $20,000,000.  Beginning with the fiscal month in
which the Availability Block is eliminated and with respect to each fiscal month
thereafter, at any time that availability under the Revolving Facility is less
than $15,000,000, U.S. Concrete must maintain a fixed charge coverage ratio of
at least 1.00:1.00 until availability is greater than or equal to $15,000,000
for a period of 30 consecutive days.

       

      Proceeds
of the loans under the Revolving Facility shall be used (i) for operating
expenses, working capital and other general corporate purposes of U.S. Concrete
and its subsidiaries, (ii) to pay transaction costs, fees and expenses in
connection with the Revolving Facility, the Plan and the transactions
contemplated thereby and to fund payments required to be made under and in
accordance with the Plan and (iii) on the Effective Date, to repay in full the
obligations outstanding under the DIP Credit Facility.

       

      At U.S.
Concrete’s option, loans may be maintained from time to time at an interest rate
equal to the Eurodollar-based rate (“LIBOR”) or the applicable domestic rate
(“CB Floating Rate”) which shall be the greater of (x) the interest rate per
annum publicly announced from time to time by JPMorgan Chase Bank, N.A. as its
prime rate and (y) the interest rate per annum equal to the sum of 1.0% per
annum plus the adjusted LIBOR rate for a one month interest period, in each case
plus the applicable margin. The applicable margin on loans is 2.75% in the case
of loans bearing interest at the CB Floating Rate and 3.75% in the case of loans
bearing interest at the LIBOR rate. Issued and outstanding letters of credit are
subject to a fee equal to the applicable margin then in effect for LIBOR loans,
a fronting fee equal to 0.20% per annum on the stated amount of such letter of
credit, and customary charges associated with the issuance and administration of
letters of credit.  U.S. Concrete also will pay a commitment fee on
undrawn amounts under the Revolving Facility in an amount equal to 0.75% per
annum.  Upon any event of default, at the direction of the required
lenders under the Revolving Facility, all outstanding loans and the amount of
all other obligations owing under the Revolving Facility will bear interest at a
rate per annum equal to 2.0% plus the rate otherwise applicable to such loans or
other obligations.

       

      The
Revolving Facility will mature four years after the Effective Date (the
“Revolving Facility Maturity Date”).  Loans are due and payable in
full on the Revolving Facility Maturity Date.  Outstanding borrowings
under the Revolving Facility are prepayable, and the commitments under the
Revolving Facility may be permanently reduced, without penalty. There are
mandatory prepayments of principal in connection with (i) the incurrence of
certain indebtedness, (ii) certain equity issuances and (iii) certain asset
sales or other dispositions (including as a result of casualty or condemnation),
subject to reinvestment provisions for asset sales, casualty and
condemnation.  Mandatory prepayments are applied to repay outstanding
loans without a corresponding permanent reduction in commitments under the
Revolving Facility.

      
        
           

        

        
          50

          
            

          

        

        
           

        

      

      The
Revolving Facility requires U.S. Concrete and its subsidiaries to comply with
customary affirmative and negative covenants, and contains customary events of
default.

       

      All
obligations under the Revolving Facility (including obligations in respect of
banking services and swap agreements with the lenders and their affiliates) will
be (a) unconditionally guaranteed by the all of U.S. Concrete’s existing and
future U.S. subsidiaries (other than Superior and its direct and indirect
subsidiaries) and (b) secured by (i) a first-priority perfected lien (subject to
certain exceptions) in substantially all of U.S. Concrete’s and such guarantors’
present and after acquired inventory (including as-extracted collateral),
accounts, certain specified mixer trucks, chattel paper, deposit accounts,
securities accounts, commodities accounts, letter of credit rights, cash and
cash equivalents, general intangibles (other than intellectual property and
equity in subsidiaries), instruments, documents, supporting obligations and
related books and records and all proceeds and products of the foregoing and
(ii) a perfected second-priority lien  (subject to certain exceptions)
on substantially all other present and after acquired property (including,
without limitation, material owned real estate).

      
        
           

        

        
          51

          
            

          

        

        
           

        

      

      THE
SUPPORT AGREEMENT

       

      We have
entered into the Support Agreement with the Purchasing Parties in connection
with the Subscription Offer.  Pursuant to the terms of the Support
Agreement, the Purchasing Parties have agreed to purchase on an aggregate basis
up to $55,000,000 of the Convertible Notes not otherwise subscribed for purchase
by eligible holders of the Existing Notes.

       

      Put
Option

       

      Subject
to the terms and conditions of the Support Agreement, this Supplement and the
Purchase Agreement, each Purchasing Party has agreed to subscribe to purchase
its Pro Rata Portion of the Convertible Notes.  The Purchasing Parties
have also granted the Put Option to U.S. Concrete which U.S. Concrete may
exercise by delivering a written notice to each Purchasing Party (a “Put
Election”) setting forth the (i) the difference between $55.0 million and
the amount of Convertible Notes which eligible holders of Existing Notes have
subscribed to purchase as of the Subscription Offer Expiration Time (including
the Pro Rata Portion to be purchased by each Purchasing Party, such difference,
the “Aggregate Put Participation Amount”), (ii) each Purchasing Party’s share of
the Aggregate Put Participation Amount, if any, and (iii) instructions for such
Purchasing Party to deliver its Subscription Payment and its share of the
Aggregate Put Participation Amount, if any, to the Escrow Agent as soon as
practicable (but, in any event, no later than the Purchasing Party Payment
Deadline) in accordance with the instructions provided in the Put
Election.  The share of the Aggregate Put Participation Amount
allocated to each Purchasing Party and its designated affiliates shall equal
33.33% of the Aggregate Put Participation Amount (the “Put Participation
Amount”).

       

      Our
Obligations

       

      We have
agreed to conduct the Subscription Offer in compliance with the terms of this
Supplement and the Subscription Certificate.

       

      Conditions

       

      The
consummation of the transactions contemplated by the Support Agreement will be
subject to the satisfaction of the following conditions:

       

      
        	
                 
      

              	
                •

              	
                not
      later than August 18, 2010, the entry of an order by the Bankruptcy Court
      in the Chapter 11 Cases, in form and substance reasonably satisfactory to
      the Purchasing Parties, (i) approving the Purchase Letter and (ii)
      otherwise authorizing the Debtors to execute, perform and incur their
      obligations under the Purchase Letter, including the payment of fees and
      expenses and the provision of indemnities as set forth
      therein;

              

      

       

      
        	
                 
      

              	
                •

              	
                each
      of the representations set forth in Section 4.02 of the Support Agreement
      shall be true and correct in all material respects, except for
      representations and warranties made as of a specified date, which shall be
      true and correct only as of the specified
date;

              

      

       

      
        	
                 
      

              	
                •

              	
                U.S.
      Concrete and each of the guarantors shall have complied in all material
      respects with all covenants, agreements and conditions required by the
      Support Agreement and the Definitive Documentation to which they are a
      party to be performed, satisfied or complied with by U.S. Concrete or the
      guarantors on or prior to the Convertible Notes Closing
    Date;

              

      

       

      
        	
                 
      

              	
                •

              	
                there
      not having occurred a dismissal or conversion of any Chapter 11 Case to a
      case under Chapter 7 of the Bankruptcy Code or the appointment of a
      Chapter 11 trustee in any Chapter 11
Case;

              

      

       

      
        	
                 
      

              	
                •

              	
                no
      provision of the Plan (as filed with the Bankruptcy Court) having been
      amended, supplemented or otherwise modified in any respect in a manner
      materially adverse to the Purchasing Parties without the consent of the
      Purchasing Parties (such consent not to be unreasonably withheld or
      delayed);

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      Confirmation Order by the Bankruptcy Court in the Chapter 11 Cases having
      become a final order, in full force and effect without reversal,
      modification or stay; the Plan shall have been consummated on the terms
      and conditions set forth therein, as amended and in effect as of the date
      of the Confirmation Order;

              

      

       

      
        
           

        

        
          52

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                •

              	
                U.S.
      Concrete shall provide evidence to the Purchasing Parties, in form and
      substance reasonably satisfactory to the Purchasing Parties, if available,
      that substantially concurrently with the issuance of the Convertible Notes
      all obligations under the DIP Credit Facility (other than contingent
      obligations not then due and payable) have been repaid in full, all
      commitments under the DIP Credit Facility have been terminated and all
      liens and security interests related to the DIP Credit Facility have been
      terminated or released;

              

      

       

      
        	
                 
      

              	
                •

              	
                except
      to the extent disclosed by U.S. Concrete in any filing made by U.S.
      Concrete with the SEC prior to July 20, 2010, in the Plan or in
      writing to the Purchasing Parties on July 20, 2010, (i) there not
      occurring or becoming known to the Purchasing Parties any events,
      developments, conditions or circumstances that, individually or in the
      aggregate, have had or could reasonably be expected to have a material
      adverse effect on the business, operations, property, condition (financial
      or otherwise) or prospects of U.S. Concrete and its direct and indirect
      subsidiaries, taken as a whole (or the Reorganized Debtors and its direct
      and indirect subsidiaries, taken as a whole), and (ii) no material
      assets of the Debtors having been sold or agreed to be sold outside of the
      ordinary course of business from and after the date of the Support
      Agreement;

              

      

       

      
        	
                 
      

              	
                •

              	
                (i)
      U.S. Concrete and the Purchasing Parties having entered into the
      Definitive Documentation (as defined in the Support Agreement) and U.S.
      Concrete shall have delivered executed versions of the Definitive
      Documentation to the Purchasing Parties on the Convertible Notes Closing
      Date and (ii) on the Effective Date (A) there not being any event or
      condition which constitutes an event of default, or which upon notice,
      lapse of time, or both would constitute an event of default, under the
      Definitive Documentation and (B) the Definitive Documentation being
      in full force and effect;

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      payment of the fees and reimbursement of out-of-pocket costs and expenses
      as set forth in the Support Agreement, in the Plan and pursuant to the
      Expense Agreement; provided, that the Purchasing Parties shall cause Paul
      Weiss to provide U.S. Concrete with an estimate of its fees and expenses
      through the Convertible Notes Closing Date at least two (2) business days
      prior to the Convertible Notes Closing
Date;

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      Effective Date and the Convertible Notes Closing Date shall occur on or
      prior to October 1, 2010;

              

      

       

      
        	
                 
      

              	
                •

              	
                as
      of the date of this Supplement and on the Convertible Notes
      Closing, the materials to be used in connection with the Subscription
      Offer regarding U.S. Concrete, its subsidiaries and the Convertible Notes
      (which include this Supplement), for distribution to other holders of the
      Existing Notes, are, when furnished and taken as a whole, are complete and
      correct in all material respects and do not contain any untrue statement
      of a material fact or omit to state a material fact necessary to make the
      statements contained therein, in light of the circumstances under which
      such statements are made, not
misleading;

              

      

       

      
        	
                 
      

              	
                •

              	
                the
      following shall be true and correct: each of U.S. Concrete’s filings with
      the SEC since January 1, 2010 is, as of its respective filing date,
      complete and correct in all material respects and does not contain any
      untrue statement of a material fact or omit to state a material fact
      necessary to make the statements contained therein, in light of the
      circumstances under which such statements are made, not misleading;
      and

              

      

       

      
        	
                 
      

              	
                •

              	
                substantially
      concurrently with the issuance of the Convertible Notes (i) the
      Debtors and the lenders under the Revolving Facility will have entered
      into the definitive documentation for the Revolving Facility and any
      related documentation and reasonably satisfactory to the Purchasing
      Parties and (ii) all conditions to borrowing under the Revolving
      Facility will have been satisfied or waived (provided that if such waiver
      could reasonably be expected to be adverse in any material respect to the
      interests of the Purchasing Parties, the Purchasing Parties shall have
      consented to such waiver) on or prior to the Effective Date, and
      (iii) on the Effective Date (y) there has not been any event or
      condition which constitutes an event of default, or which upon notice,
      lapse of time, or both would become an event of default, under the
      Revolving Facility and (z) the Revolving Facility being in full force
      and effect.

              

      

       

      
        
           

        

        
          53

          
            

          

        

        
           

        

      

      Amendments,
Modifications and Waivers

       

      Except at
set forth in this paragraph, we may modify, amend or waive the provisions of the
Support Agreement only with the written consent of each Purchasing
Party.  Notwithstanding the foregoing, we may modify, amend or waive
any of the provisions of the forms of the Purchase Agreement, the Convertible
Notes Indenture, the Convertible Notes Security Agreement and the Registration
Rights Agreement (collectively the “Definitive Documentation”) or enter into any
agreement having a similar effect, with the prior consent of the Purchasing
Parties.  Furthermore, we may not, without the consent of the
Purchasing Parties, amend, modify or waive any of the defined terms contained in
this Supplement or the Subscription Certificate which are also used in the
Support Agreement, to the extent such amendment, modification or waiver would
alter the meaning of such defined term as used in the Support Agreement in a
manner that would be adverse to the Purchasing Parties.

       

      Termination

       

      The
Support Agreement will terminate upon the earliest to occur of:

       

      
        	
                 
      

              	
                •

              	
                the
      mutual written agreement of U.S. Concrete and the Purchasing
      Parties;

              

      

       

      
        	
                 
      

              	
                •

              	
                written
      notice by U.S. Concrete to the Purchasing Parties after October 1, 2010
      (the “Drop Dead Date”); provided that U.S. Concrete shall not be entitled
      to terminate the Support Agreement pursuant to this provision if it is
      then in material breach of its obligations under the Support
      Agreement;

              

      

       

      
        	
                 
      

              	
                •

              	
                written
      notice by the Purchasing Parties to U.S. Concrete after the Drop Dead
      Date; provided that the Purchasing Parties shall not be entitled to
      terminate the Support Agreement pursuant to this provision if they are
      then in material breach of their obligations under the Support
      Agreement;

              

      

       

      
        	
                 
      

              	
                •

              	
                10
      days after the Purchasing Parties have delivered written notice to U.S.
      Concrete that U.S. Concrete has materially breached the Support Agreement,
      if such breach remains uncured at the conclusion of such 10 day period;
      provided, that in no event shall such cure period limit the right of the
      Purchasing Parties to terminate after the Drop Dead Date;
    or

              

      

       

      
        	
                 
      

              	
                •

              	
                10
      days after U.S. Concrete has delivered written notice to the Purchasing
      Parties that the Purchasing Parties have materially breached the Support
      Agreement, if such breach remains uncured at the conclusion of such 10 day
      period; provided, that in no event shall such cure period limit the right
      of U.S. Concrete to terminate after the Drop Dead
  Date.

              

      

       

      Fees

       

      As
consideration for the Put Option, we are paying an aggregate amount of
$1,100,000 to the Purchasing Parties and reimbursing the Purchasing Parties for
their out-of-pocket costs and expenses, in accordance with the terms of the
Support Agreement, the Expense Agreement and the Plan.

      
        
           

        

        
          54

          
            

          

        

        
           

        

      

      THE
REGISTRATION RIGHTS AGREEMENT

       

      The
following description is a summary of the material provisions of the
Registration Rights Agreement. It does not restate such agreement in its
entirety.  A copy of the Registration Rights Agreement is attached
hereto as Exhibit
C.  We urge you to read the Registration Rights Agreement in
its entirety because it, and not this description, defines your registration
rights as holders of the Convertible Notes.

       

      We, the
guarantors of the Convertible Notes and the eligible holders of Existing Notes
who return a Subscription Certificate to the Subscription Agent will agree, as
of the Subscription Acceptance Date, to be bound by the terms and conditions of
the Registration Rights Agreement as of the Convertible Notes Closing
Date.

       

      Pursuant
to the Registration Rights Agreement, we will agree to use our commercially
reasonable efforts to file with the SEC the Notes Form S-1 Shelf by the Notes
Registration Deadline covering the resale of Registrable Securities by Electing
Holders, and to cause such registration statement to become effective as soon as
practicable following such filing.  We will also agree to use our
commercially reasonable efforts to file with the SEC the Common Stock Form S-1
Shelf within 180 days following the Issue Date covering the resale of all shares
of Common Stock that constitute Registrable Securities by Electing
Holders.  Furthermore, if U.S. Concrete proposes to file any
registration statement pursuant to the Securities Act with respect to an
underwritten offering of any of its securities for its own account (other than a
registration statement on Form S-4 or S-8) (a “Piggyback Takedown”), U.S.
Concrete shall give prompt written notice to all Holders of Registrable
Securities of its intention to effect such a Piggyback Takedown.  U.S.
Concrete shall include in the Piggyback Takedown, as applicable, all Registrable
Securities that constitute Common Stock with respect to which U.S. Concrete has
received written requests for inclusion therein within five (5) days after
sending such written notice; provided, that if a Piggyback Takedown is an
underwritten primary registration on behalf of U.S. Concrete and the managing
underwriters for such Piggyback Takedown advise U.S. Concrete in their
reasonable opinion that the number of securities requested to be included in
such Piggyback Takedown exceeds the number which can be sold in an orderly
manner in such offering within a price range acceptable to U.S. Concrete, U.S.
Concrete shall include in such Piggyback Takedown the number which can be sold
in the following order of priority: (1) first, the securities which U.S.
Concrete proposes to sell, (2) second, the Registrable Securities requested to
be included in such Piggyback Takedown (pro rata among the Holders of such
Registrable Securities on the basis of the number of Registrable Securities
requested to be included therein by each such Holder) and (3) third, other
securities requested to be included in such Piggyback Takedown.  In
connection with any Piggyback Takedown, no Holder who beneficially owns (as such
term is defined under and determined pursuant to Rule 13d-3 promulgated under
the Exchange Act) 5% or more of the outstanding shares of Common Stock on a as
converted basis, shall effect any public sale or distribution of any securities
convertible into or exchangeable or exercisable for such securities, without
prior written approval from U.S. Concrete, and subject to reasonable and
customary exceptions to be agreed upon, during the seven (7) days prior to and
the 90-day period beginning on the date of pricing such Piggyback Takedown (such
period, which may be extended in accordance with the terms of the Registration
Rights Agreement, the “Lock-Up Period”), except as a part of such Piggyback
Takedown and (i) unless the underwriters managing such Piggyback Takedown
otherwise agree and (ii) only if such Lock-Up Period is applicable on
substantially similar terms to U.S. Concrete and the executive officers and
directors of U.S. Concrete.  Each Holder requesting to sell
Registrable Securities in connection with a Piggyback Takedown must execute a
lock-up agreement in favor of U.S. Concrete’s underwriters to such effect,
subject to reasonable and customary exceptions as may be agreed to by the
Holders and the underwriters.

       

      Upon the
effectiveness of a Shelf Registration Statement, we will, as promptly as
practicable after the date on which a proper Notice and Questionnaire is
received, and in any event within 10 business days after such Notice and
Questionnaire is received (or within 5 business days after the expiration of a
Suspension Period (as defined below) if such Notice and Questionnaire is
received during such Suspension Period), if required by applicable law, file
with the SEC a post-effective amendment to such Shelf Registration Statement or
prepare, and if required by applicable law, file a supplement to the related
prospectus or a supplement or amendment to any document incorporated therein by
reference or file any other required document so that the Electing Holder
delivering such Notice and Questionnaire is named a selling security holder in
such Shelf Registration Statement and the related prospectus in such a manner as
to permit such Electing Holder to deliver such prospectus to purchasers of
Registrable Securities in accordance with applicable law.   If we
file a post-effective amendment to any Shelf Registration Statement and such
amendment is not automatically effective, we shall use commercially reasonable
efforts to cause such post-effective amendment to be declared or to otherwise
become effective under the Securities Act as promptly as practicable; provided,
that in no event shall we be required to make more than one such filing in any
20 business day period and if such Shelf Registration Statement is not an
automatic shelf-registration statement, we shall not be required to make more
than one such filing in any calendar quarter.  U.S. Concrete shall not
be under any obligation to name any Holder that is not an Electing Holder as a
selling securityholder in any Shelf Registration Statement.

      
        
           

        

        
          55

          
            

          

        

        
           

        

      

      Notwithstanding anything to the
contrary, upon written notice to Holders of Registrable Securities, (x) we may
suspend, for a period of time, the use of any Shelf Registration Statement or
prospectus if the Board determines in its good faith judgment, after
consultation with counsel, that such Shelf Registration Statement or prospectus
may contain an untrue statement of a material fact or omits any fact necessary
to make the statements contained therein not misleading and (y) we shall not be
required to amend or supplement any Shelf Registration Statement, any related
prospectus or any document incorporated therein by reference if the Board
determines in its good faith judgment that such amendment would reasonably be
expected to have a material adverse effect on any proposal or plan of U.S.
Concrete to effect a merger, acquisition, disposition, financing,
reorganization, recapitalization or similar transaction, in each case that is
material to U.S. Concrete (in case of each clause (x) and (y), a “Suspension
Period”); provided, that (i) there are no more than two Suspension Periods in
any 12-month period, (ii) the duration of all Suspension Periods may not exceed
90 days in the aggregate in any 12-month period and (iii) we shall use our good
faith efforts to amend the applicable Shelf Registration Statement and/or
prospectus and correct such untrue statement or omission as soon as reasonably
practicable.

       

      The
Registration Rights Agreement will provide that, if:

       

      (1) the
Common Stock Form S-1 is not filed by the Common Stock Registration Deadline or
the Notes Form S-1 Shelf is not filed by the Notes Registration Deadline;
or

       

      (2) any
registration statement required by the Registration Rights Agreement is filed
and declared effective but shall thereafter cease to be effective or fail to be
usable for its intended purpose for more than 45 days (each such event referred
to in clauses (1) and (2) above, a “Registration Default”),

       

      except as
specifically permitted in the Registration Rights Agreement, including during
any applicable Suspension Period, then we will pay special interest to each
Holder of Registrable Securities for the period of occurrence of such
Registration Default(s) until such time as no Registration Default is in effect,
subject to the restrictions set forth in the following paragraph.

       

      With
respect to the first 90-day period immediately following the occurrence of the
first Registration Default, special interest will be paid in an amount equal to
0.25% per annum of the principal amount of entitled securities outstanding;
provided, that the amount of the special interest will increase by an additional
0.25% per annum with respect to each subsequent 90-day period during which such
Registration Default continues, but in no event shall such increase exceed 1.0%
per annum; provided, further, that such special interest shall only be payable
with respect to such Registrable Securities that are Convertible Notes and
constitute Restricted Securities (within the meaning of Rule 144(a)(3) under the
Securities Act); provided, that the Trustee shall be entitled to request and
conclusively rely on an opinion of counsel with respect to whether any
Convertible Note constitutes a Restricted Security.  The accrual of
such special interest will be the exclusive remedy of Holders under the
Registration Rights Agreement with respect to any Registration
Defaults.

       

      We will
pay all accrued special interest semi-annually in arrears on the next scheduled
interest payment date of the Convertible Notes set forth in the Convertible
Notes Indenture to Holders of record of the applicable Convertible Notes on the
applicable dates of record set forth in the Convertible Notes
Indenture.  We shall have no obligation to pay special interest to any
person that is not a Holder of Convertible Notes that constitute Restricted
Securities as of the applicable record date, notwithstanding whether such person
was a Holder of such securities as of the occurrence of the related Registration
Default.

       

      Following
the cure of all Registration Defaults, the accrual of special interest will
cease; provided, that upon the occurrence of a new Registration Default, special
interest may again commence accruing in accordance with the foregoing provisions
(as described in the Registration Rights Agreement).

      
        
           

        

        
          56

          
            

          

        

        
           

        

      

      THE
INTERCREDITOR AGREEMENT

       

      On the date of the Convertible Notes
Indenture, the issuer and the guarantors will enter into the Intercreditor
Agreement.  The Intercreditor Agreement will set forth the terms of
the relationship between the holders of the Revolving Facility Obligations (as
defined below) and the holders of Convertible Notes Obligations (as defined
below).   The final terms of the Intercreditor Agreement have not
been agreed upon and may be different from those described below.  Any
such differences may be material.

      

      Restrictions
on Claims Subject to Priority Treatment

       

      The Intercreditor Agreement shall
provide that the holders of the Revolving Facility Obligations shall be entitled
to a first priority lien (subject to certain exceptions) on the ABL Priority
Collateral to secure (a) up to $86,250,000 of the principal amount of revolving
loans and letters of credit, plus (b) interest, indemnities, fees, expenses and
other obligations incurred under the Revolving Facility and the documents,
agreements and instruments governing the Revolving Facility (collectively, the
“Revolving Documents”), plus (c) cash management obligations and obligations in
respect of hedging arrangements owed to a lender under the Revolving Facility or
any affiliate of a Lender (the “Revolving Facility Obligations”).  The
holders of Convertible Notes Obligations shall be entitled to a first priority
lien (subject to certain exceptions) on the Notes Priority Collateral to secure
the principal, interest, fees and other obligations incurred by U.S. Concrete
and its subsidiaries under the Convertible Note Documents (collectively, the
“Convertible Notes Obligations”).  The holders of the Revolving
Facility Obligations shall also be entitled to a second priority lien (subject
to certain exceptions) on the Notes Priority Collateral to secure the Revolving
Facility Obligations.  The holders of the Convertible Notes
Obligations shall also be entitled to a second priority lien (subject to certain
exceptions) on the ABL Priority Collateral to secure the Convertible Notes
Obligations.

      

      Restrictions
on Enforcement of Liens

       

      The Intercreditor Agreement shall
provide that so long as the Revolving Facility Obligations or Convertible Notes
Obligations, as applicable, remain outstanding, whether or not any insolvency or
liquidation proceeding has been commenced by or against the issuer or any other
guarantor, the Collateral Agent, the holders of the Convertible Notes, the
Revolving Facility Agent and holders of Revolving Facility Obligations will not,
as applicable, exercise or seek to exercise any rights or remedies (including
setoff) with respect to any Collateral in respect of which such Person does not
have a first priority lien.

      

      The Intercreditor Agreement shall
provide that the Revolving Facility Agent (on behalf of the holders of the
Revolving Facility Obligations) or Collateral Agent (on behalf of the holders of
the Convertible Notes Obligations), as applicable, shall have the exclusive
right, to enforce rights, exercise remedies (including setoff) and make
determinations regarding the release and disposition with respect to the
Collateral in which the Revolving Facility Agent or the Collateral Agent, as
applicable, has a first priority secured lien, without any consultation with or
the consent of such other Person, subject to limitations and exceptions set
forth in the Intercreditor Agreement.

      

      The Intercreditor Agreement shall
provide that, until the repayment in full and termination of the Revolving
Facility Obligations has occurred, the Collateral Agent and the holders of the
Convertible Notes Obligations shall not take any action that would hinder,
delay, limit or prohibit any exercise of remedies under the Revolving Facility
or other Revolving Documents with respect to the ABL Priority Collateral,
including any collection, sale, lease, exchange, transfer or other disposition
of the ABL Priority Collateral, whether by foreclosure or otherwise, or that
would challenge or contest such lien or that would subordinate the priority of
the liens securing the Revolving Facility Obligations in respect of the ABL
Priority Collateral to the liens securing the Convertible Notes Obligations or
make the liens on the ABL Priority Collateral securing the Convertible Notes
Obligations equal ranking to the liens securing the Revolving Facility
Obligations therein.

      
        
           

        

        
          57

          
            

          

        

        
           

        

      

      The Intercreditor Agreement shall
provide that, until the repayment in full and termination of the Convertible
Notes Obligations has occurred, the Revolving Facility Agent and the holders of
the Revolving Facility Obligations shall not take any action that would hinder,
delay, limit or prohibit any exercise of remedies under the Convertible Notes or
other Convertible Notes Security Documents with respect to the Notes Priority
Collateral, including any collection, sale, lease, exchange, transfer or other
disposition of the Notes Priority Collateral, whether by foreclosure or
otherwise, or that would challenge or contest such lien or that would
subordinate the priority of the liens securing the Convertible Notes Obligations
in respect of the Notes Priority Collateral to the liens securing the Revolving
Facility Obligations or make the liens on the Notes Priority Collateral securing
the Revolving Facility Obligations equal ranking to the liens securing the
Convertible Notes Obligations therein; provided, that the Intercreditor
Agreement shall provide the Revolving Facility Agent the right of access to the
Notes Priority Collateral to process and prepare the ABL Priority Collateral for
sale and to sell or remove the ABL Priority Collateral for a period of 120 days
from the earlier of (i) the Revolving Facility Agent giving written notice to
the Collateral Agent of its election to request access to any parcel or item of
Notes Priority Collateral and (ii) the Revolving Facility Agent receiving
written notice from the Collateral Agent that the Collateral Agent has acquired
control or possession of relevant Notes Priority Collateral or has, through the
exercise of remedies or otherwise, sold such Notes Priority Collateral to any
third party purchaser.

       

      Insolvency
or Liquidation Proceedings

       

      Until the repayment in
full  and termination of the Revolving Facility Obligations has
occurred, if U.S. Concrete or any other guarantor shall be subject to any
insolvency or liquidation proceeding and the Revolving Facility Agent (acting at
the direction of the requisite holders of Revolving Facility Obligations)
permits:

      

      
        	
                 
      

              	
                (1)

              	
                the
      use of cash collateral constituting ABL Priority Collateral;
      or

              

      

      

      
        	
                 
      

              	
                (2)

              	
                U.S.
      Concrete or any other guarantor to obtain financing, whether from the
      holders of Revolving Facility Obligations or any other third party under
      applicable bankruptcy law secured by the Collateral (each, a
      “Post-Petition ABL Financing”);

              

      

      

      then the Collateral Agent and the
holders of Convertible Notes Obligations agree:

      

      
        	
                 
      

              	
                (a)

              	
                that
      they will be deemed to have consented to (and will not oppose or raise any
      objection to or contest (or join with or support any third party opposing,
      objecting to or consenting) as a result of failure to provide adequate
      protection) such use of cash collateral or Post-Petition ABL Financing,
      subject to the limitations and exceptions set forth in the Intercreditor
      Agreement; and

              

      

      

      
        	
                 
      

              	
                (b)

              	
                to
      the extent the liens on the ABL Priority Collateral securing the Revolving
      Facility Obligations are subordinated to or pari passu with such
      Post-Petition ABL Financing, the liens securing the Convertible Notes
      Obligations on such ABL Priority Collateral shall be deemed to be
      subordinated to (i) the liens securing such Post-Petition ABL Financing
      (and all obligations relating thereto) to the same extent and on the same
      terms and conditions as the liens securing the Convertible Notes
      Obligations are subordinated to the liens securing the Revolving Facility
      Obligations, (ii) any adequate protection provided to the Revolving
      Facility Agent or the holders of Revolving Facility Obligations and (iii)
      “carve-out” for professional and customary fees and expenses agreed to by
      the Revolving Facility Agent or the holders of Revolving Facility
      Obligations and approved by the relevant bankruptcy
  court.

              

      

      

      Until the repayment in full and
termination of the Convertible Notes Obligations has occurred, if U.S. Concrete
or any other guarantor shall be subject to any insolvency or liquidation
proceeding and the Collateral Agent (acting at the direction of the requisite
holders of Convertible Notes obligations) permits:

      

      
        	
                 
      

              	
                (1)

              	
                the
      use of cash collateral constituting Notes Priority Collateral;
      or

              

      

      

      
        	
                 
      

              	
                (2)

              	
                U.S.
      Concrete or any other guarantor to obtain financing, whether from the
      holders of Convertible Notes Obligations or any other third party under
      applicable bankruptcy law secured by the Collateral (each, a
      “Post-Petition Notes Financing”);

              

      

      

      then the Revolving Facility Agent and
the holders of Revolving Facility Obligations agree:

      

      
        	
                 
      

              	
                (a)

              	
                that
      they will be deemed to have consented to (and will not oppose or raise any
      objection to or contest (or join with or support any third party opposing,
      objecting to or contesting)) such use of cash collateral or Post-Petition
      Notes Financing, subject to the limitations and exceptions set forth in
      the Intercreditor Agreement; and

              

      

       

      
        
           

        

        
          58

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                 (b)

              	
                to
      the extent the liens on the Notes Priority Collateral securing the
      Convertible Notes Obligations are subordinated to or pari passu with such
      Post-Petition Notes Financing, the liens securing the Revolving Facility
      Obligations on such Notes Priority Collateral shall be deemed to be
      subordinated to (i) the liens securing such Post-Petition Notes Financing
      (and all obligations relating thereto) to the same extent and on the same
      terms and conditions as the liens securing the Revolving Facility
      Obligations are subordinated to the loans securing the Convertible Notes
      Obligations, (ii) any adequate protection provided to the Collateral Agent
      or the holders of Convertible Notes Obligations and (iii) “carve-out” for
      professional and customary fees and expenses agreed to by the Collateral
      Agent or the holders of Convertible Notes Obligations and approved by the
      relevant bankruptcy court.

              

      

      

      Each of the Revolving Facility Agent,
the holders of the Revolving Facility Obligations, the Collateral Agent and the
holders of Convertible Notes agree that they will raise no objection or oppose a
sale or other disposition of any Collateral free and clear of its second
priority liens or other claims under Section 363 of the Bankruptcy Law if the
holder of the first priority secured lien in such Collateral has consented to
such sale or disposition of such assets and the Person holding a second priority
lien in the Collateral will be deemed to have consented under Section 363 of the
United States Bankruptcy Code (and otherwise) to any sale supported by the
Person holding the first priority secured lien in such Collateral and to have
released their liens in such assets; provided, that the Revolving Facility Agent
must receive at least 60 days prior notice of any sale of real property
..

      

      Until the repayment in full of the
Revolving Facility Obligations, the Collateral Agent and holders of Convertible
Notes Obligations agree that none of them shall seek relief from the automatic
stay of Section 362(a) of the Bankruptcy Law or from any other stay in any
insolvency or liquidation proceeding in respect of the ABL Priority Collateral,
without the prior written consent of the Revolving Facility Agent and shall
provide at least at least 30 days written notice prior to seeking any such
relief with respect to the Collateral (unless otherwise
agreed).  Until the repayment in full of the Convertible Notes
Obligations, the Revolving Facility Agent and holders of Revolving Facility
Obligations agree that none of them shall seek relief from the automatic stay of
Section 362(a) of the Bankruptcy Law or from any other stay in any insolvency or
liquidation proceeding in respect of the Notes Priority Collateral, without the
prior written consent of the Collateral Agent and shall provide at least at
least 30 days written notice prior to seeking any such relief with respect to
the Collateral (unless otherwise agreed).

      

      The Collateral Agent, the holders of
Convertible Notes, the Revolving Facility Agent and the holders of the Revolving
Facility Obligations agree that none of them shall oppose, object to or contest
(or join with or support any third party opposing, objecting to or contesting)
(i) any request by such Person for adequate protection in any insolvency or
liquidation proceeding (or any granting of such request) in respect of the
Collateral in which such Person has a first priority secured lien or (ii) any
objection by the such Person to any motion, relief, action or proceeding based
on such Person claiming a lack of adequate protection in respect of the
Collateral in which such Person has a first priority secured lien.

      

      Order
of Application

       

      The Intercreditor Agreement will
provide that, (i) any proceeds of any ABL Priority Collateral pursuant to the
enforcement of the Revolving Facility or any Revolving Document or the exercise
of any remedial provision thereunder, shall be applied (in each case until such
amounts are satisfied in full):  first, to the costs and
expenses of the Revolving Facility Agent and the holders of the Revolving
Facility Obligations in connection with such enforcement; second, to the Revolving
Facility Obligations in such order as specified in the Revolving Facility
(excluding any amounts in excess of the cap on Revolving Facility Obligations);
third, to the
Convertible Notes Obligations; and fourth, to any amounts in
excess of the cap on Revolving Facility Obligations, and (ii) any proceeds of
any Convertible Notes Collateral pursuant to the enforcement of the Convertible
Notes or any Convertible Notes Security Document or the exercise of any remedial
provision thereunder, shall be applied (in each case until such amounts are
satisfied in full):  first, to the costs and
expenses of the Collateral Agent and the holders of the Convertible Notes
Obligations in connection with such enforcement; second, to the Convertible
Notes Obligations in such order as specified in the Convertible Notes; and third, to the Revolving
Facility Obligations (including any amounts in excess of the cap on Revolving
Facility Obligations).  To the extent any excess proceeds remain after
the above application, the Revolving Facility Agent or Collateral Agent, as
applicable, shall deliver to such other Person any proceeds of such Collateral
held by it in the same form as received, with any necessary endorsements or as a
court of competent jurisdiction may otherwise direct.

      
        
           

        

        
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      Release
of Liens on Collateral

       

      The Intercreditor Agreement will
provide that the (i) second priority lien held by the Collateral Agent, on
behalf of the holders of the Convertible Notes Obligations, on the ABL Priority
Collateral shall be automatically released upon the release, sale or disposition
of the ABL Priority Collateral which results in a release of the lien granted to
the Revolving Facility Agent, on behalf of the holders of the Revolving Facility
Obligations under the Revolving Documents and (ii) second priority lien held by
the Revolving Facility Agent, on behalf of the holders of the Revolving Facility
Obligations, on the Notes Priority Collateral shall be automatically released
upon the release, sale or disposition of the Notes Priority Collateral which
results in a release of the lien granted to the Collateral Agent, on behalf of
the holders of the Convertible Notes Obligations under the Convertible Notes
Indenture and Convertible Notes Security Documents.  In order to
effect such foregoing releases, the parties shall promptly execute and deliver
any release documents and instruments as the other shall request.

      

      Amendment
of Convertible Notes Security Documents

       

      The Intercreditor Agreement shall
provide that in the event the Revolving Facility Agent or the other holders of
Revolving Facility Obligations and the relevant guarantors enter into any
amendment, waiver or consent in respect of any guarantee or any security or
collateral document with respect to the Revolving Documents for the purpose of
adding to, or deleting from, or waiving or consenting to any departures from any
provisions of, any guarantee or any security or collateral document with respect
to the Revolving Documents or changing in any manner the rights of the Revolving
Facility Agent, the other holders of Revolving Facility Obligations, U.S.
Concrete or any other guarantor thereunder, then to the extent such amendment,
waiver or consent is with respect to the ABL Priority Collateral, it shall apply
automatically to any comparable provision of the Convertible Notes Indenture and
the comparable Convertible Notes Security Document without the consent of the
Collateral Agent or the holders of the Convertible Notes Obligations and without
any action by the Collateral Agent, U.S. Concrete or any other guarantor,
provided, that, (i) no such amendment, waiver or consent shall have the effect
of removing assets except to the extent that a release of such lien is permitted
by the Intercreditor Agreement; and (ii) notice of such amendment, waiver or
consent shall have been given to the Collateral Agent no later than 30 days
thereafter (although the failure to give any such notice shall in no way affect
the effectiveness of any such amendment, waiver or consent).

      

      The Intercreditor Agreement shall
provide that in the event the Collateral Agent or the other holders of
Convertible Notes Obligations and the relevant guarantors enter into any
amendment, waiver or consent in respect of any guarantee or any security or
collateral document with respect to the Convertible Notes Indenture and/or the
Convertible Notes Security Documents for the purpose of adding to, or deleting
from, or waiving or consenting to any departures from any provisions of, any
guarantee or any security or collateral document with respect to the Convertible
Notes Indenture and/or the Convertible Notes Security Documents or changing in
any manner the rights of the Collateral Agent, the other holders of Convertible
Notes Obligations, U.S. Concrete or any other guarantor thereunder, then to the
extent such amendment, waiver or consent is with respect to the Notes Priority
Collateral, it shall apply automatically to any comparable provision of the
Revolving Documents without the consent of the Revolving Facility Agent or the
holders of the Revolving Facility Obligations and without any action by the
Revolving Facility Agent, U.S. Concrete or any other guarantor, provided, that,
(i) no such amendment, waiver or consent shall have the effect of removing
assets except to the extent that a release of such lien is permitted by the
Intercreditor Agreement; and (ii) notice of such amendment, waiver or consent
shall have been given to the Revolving Facility Agent no later than 30 days
thereafter (although the failure to give any such notice shall in no way affect
the effectiveness of any such amendment, waiver or consent).

      

      “ABL
Priority Collateral” shall have the meaning set forth in the Intercreditor
Agreement.

       

      “Notes
Priority Collateral” shall have the meaning set forth in the Intercreditor
Agreement.

      
        
           

        

        
          60

          
            

          

        

        
           

        

      

      “Collateral”
shall mean collectively the ABL Priority Collateral and the Notes Priority
Collateral.

       

      Purchase
Option

       

      If an
event of default has occurred and is continuing and remains uncured or unwaived
for at least 30 days with respect to the Revolving Facility Obligation or the
Convertible Notes Obligations, as the case may be, then all or a portion of the
holders of the Revolving Facility Obligations or of  the holders of
the Convertible Notes Obligations, as the case may be, shall have the option at
any time upon 5 business days’ notice given (i) to the Collateral Agent (in the
case of the holders of the Revolving Facility Obligations) to purchase all of
the Convertible Notes Obligations or (ii) to the Revolving Facility Agent (in
the case of the holders of the Convertible Notes Obligations) to purchase all of
the Revolving Facility Obligations, such purchase to be consummated in either
case within 20 days after notice of election of such option.  The
purchase price shall be equal to the full amount of all Revolving Facility
Obligations or Convertible Notes Obligations, as applicable, then outstanding
and unpaid (including principal, interest, fees and expenses but excluding, any
prepayment, make whole payment, termination or similar fees) and, with respect
to the purchase of the Revolving Facility Obligations, shall include the
delivery of cash collateral to the Revolving Facility Agent, in a manner and in
such amounts as the Revolving Facility Agent determines is reasonably necessary
to provide security for any issued and outstanding letter of credit, hedging
obligations and cash management obligations comprising part of the Revolving
Facility Obligations.

      
        
           

        

        
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      CERTAIN
U.S. FEDERAL INCOME TAX CONSIDERATIONS

       

      The
following is a summary of certain U.S. federal income tax considerations to U.S.
Holders (as defined below) regarding the ownership and disposition (including a
conversion into Common Stock) of the Convertible Notes to the extent acquired in
connection with the Subscription Offer and the ownership and disposition of
Common Stock received upon a conversion of the Convertible Notes.

       

      This
summary is also not a complete analysis of all of the potential tax
considerations relevant to U.S. Holders of the Convertible Notes or the Common
Stock received upon their conversion. This summary is based on the provisions of
the Code, the applicable Treasury Regulations promulgated thereunder, judicial
authority and current administrative rulings and practice, all of which are
subject to change, possibly on a retroactive basis. There can be no assurance
that the IRS will not challenge one or more of the tax consequences described
herein, and we have not obtained, nor do we intend to obtain, a ruling from the
IRS with respect to such consequences.

       

      This
summary deals only with beneficial owners of Convertible Notes that hold
Convertible Notes or Common Stock (as the case may be) as “capital assets”
within the meaning of Section 1221 of the Code. This summary does not deal with
all aspects of U.S. federal income taxation that might be relevant to particular
holders in light of their personal investment circumstances or special status,
nor does it address tax considerations applicable to investors that may be
subject to special tax rules, such as banks, financial institutions, tax−exempt
organizations, S corporations, partnerships or other pass−through entities,
insurance companies, broker−dealers, dealers or traders in securities or
currencies, certain U.S. expatriates or former long−term residents of the United
States, taxpayers subject to the alternative minimum tax, individual retirement
accounts or other tax−deferred accounts, traders in securities that elect to use
a mark−to−market method of accounting for their securities holdings, insurance
companies, real estate investment trusts, regulated investment companies,
persons that hold Convertible Notes or Common Stock as a position in a
“straddle,” or as part of a synthetic security or “hedge,” “conversion
transaction,” “constructive sale” or other integrated investment, or U.S.
Holders that have a “functional currency” other than the U.S. dollar or Non−U.S.
Holders (as defined below), except as described below.  Moreover, it
does not discuss the effect of any other U.S. federal tax laws (such as estate
and gift tax laws) or applicable state, local or foreign tax laws.

       

      As used
herein, a “U.S. Holder,” means a beneficial owner of Convertible Notes or Common
Stock that is, for U.S. federal income tax purposes: (1) an individual citizen
or resident of the United States, (2) a corporation created or organized under
the laws of the United States, any state thereof or the District of Columbia,
(3) an estate, the income of which is subject to U.S. federal income taxation
regardless of its source, or (4) a trust if either (a) a U.S. court is able to
exercise primary supervision over the trust’s administration and one or more
United States persons have the authority to control all of the trust’s
substantial decisions or (b) it has a valid election in effect to be treated as
a United States person. A “Non−U.S. Holder” means a beneficial owner of
Convertible Notes or Common Stock that is, for U.S. federal income tax purposes,
an individual, corporation, estate or trust that is not a U.S.
Holder.

       

      If an
entity that is classified as a partnership for U.S. federal income tax purposes
is a beneficial owner of Convertible Notes or Common Stock, the tax treatment of
a partner in the partnership generally will depend upon the status of the
partner and the activities of the partnership. Partnerships and other entities that
are classified as partnerships for U.S. federal income tax purposes and persons
holding Convertible Notes or Common Stock through a partnership or other entity
classified as a partnership for U.S. federal income tax purposes are urged to
consult their own tax advisors.

       

      THE
FOLLOWING DISCUSSION IS FOR GENERAL INFORMATION ONLY AND IS NOT INTENDED TO BE
TAX ADVICE. INVESTORS SHOULD CONSULT THEIR OWN TAX ADVISORS WITH RESPECT TO THE
APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS
AS WELL AS ANY TAX CONSEQUENCES ARISING UNDER OTHER U.S. FEDERAL TAX LAWS OR THE
LAWS OF ANY STATE, LOCAL OR FOREIGN TAXING JURISDICTION OR UNDER ANY APPLICABLE
TAX TREATY.

      
        
           

        

        
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      Characterization
of the Convertible Notes as Debt

       

      The U.S.
federal income tax consequences to the holders of the Convertible Notes will
depend upon the treatment of the Convertible Notes as debt for U.S. federal
income tax purposes. The status of the Convertible Notes as debt for U.S.
federal income tax purposes depends upon a number of factors. We intend to take
the position that the Convertible Notes are debt for U.S. federal income tax
purposes, and the holders of the Convertible Notes will agree to be bound by
such treatment. The balance of this discussion assumes that the Convertible
Notes will be respected as debt for U.S. federal income tax purposes. There can
be no assurance that the IRS will not successfully challenge this
position.

       

      Tax
Consequences to U.S. Holders

       

      Interest
Income on the Convertible Notes

       

      Stated
Interest

       

      Assuming
that the Convertible Notes are not treated as contingent payment debt
instruments under applicable Treasury regulations (as described under
“—Additional Interest” below), payments of interest made to a U.S. Holder in
respect of the Convertible Notes, including any accrued and unpaid interest
deemed to have been paid upon conversion, will be subject to United States
federal income tax as ordinary income when received or accrued, in accordance
with such U.S. Holder s regular method of tax accounting for United States
federal income tax purposes.  It is expected that the Convertible
Notes will be issued to investors in this offering at a price equal to their
face amount, and therefore will not be issued with “original issue discount,” or
“OID,” for United States federal income tax purposes.  If, contrary to
current expectations, the Convertible Notes are issued with OID that is equal to
or greater than a specified de minimis amount, then the Convertible Notes will
be issued with OID for United States federal income tax
purposes.   If the Convertible Notes are issued with OID, then a
U.S. Holder generally will be required to include the OID in income as ordinary
interest income, on a constant-yield basis over the term of the Convertible
Notes, in advance of the receipt of the cash attributable to that
income.  The remainder of this discussion assumes that the Convertible
Notes will not be issued with OID.

       

      Under
certain circumstances, including upon a fundamental change in control or upon a
conversion of the Convertible Notes to Common Stock at certain times and at
certain prices, we may be required to pay additional interest on the Convertible
Notes.  Although the issue is not free from doubt, we intend to take
the position that the possibility of such additional payments does not result in
the Convertible Notes being treated as contingent payment debt instruments under
the applicable Treasury regulations.  If we become obligated to pay
additional interest, then we intend to take the position that such amounts will
be treated as ordinary interest income and taxed as described under “—Stated
Interest” above.  Our position is not binding on the
IRS.  If the IRS takes a contrary position to that described above, a
U.S. Holder may be required to accrue interest income based upon a “comparable
yield,” regardless of the holder’s method of accounting.  The
“comparable yield” is the yield at which we would issue a fixed rate
non-convertible debt instrument with no contingent payments, but with terms and
conditions similar to those of the Convertible Notes; that yield would be higher
than the stated coupon on the Convertible Notes.  In addition, any
gain on the sale, exchange, retirement or other taxable disposition of the
Convertible Notes (including any gain realized on the conversion of a
Convertible Note) would be recharacterized as ordinary income.  U.S.
Holders should consult their own tax advisors regarding the tax consequences of
the Convertible Notes being treated as contingent payment debt
instruments.  The remainder of this discussion assumes that the
Convertible Notes are not treated as contingent payment debt
instruments.

       

      Sale, Exchange, Redemption or
Retirement of the Convertible Notes

       

      Upon a
sale, conversion, exchange, redemption or retirement of a Convertible Note for
cash or our common stock, a U.S. Holder will generally recognize capital gain or
loss equal to the difference between the amount realized on the sale,
conversion, exchange, redemption or retirement (including the fair market value
of our common stock received, if any) and such U.S. Holder’s adjusted tax basis
in the Convertible Note. A U.S. Holder’s adjusted tax basis in a Convertible
Note will generally be equal to the U.S. Holder’s purchase price for the
Convertible Note. Such capital gain or loss will be long-term capital gain or
loss if the U.S. Holder has held the Convertible Note for more than one year at
the time of sale or exchange.  Generally, long-term capital gain for
certain non-corporate U.S. Holders, including individuals, is eligible for a
reduced rate of taxation. The amount deductible in respect of a capital loss is
subject to certain limitation.

      
        
           

        

        
          63

          
            

          

        

        
           

        

      

      Conversion
of Convertible Notes into Shares of Common Stock

       

      A U.S.
Holder should not recognize gain or loss on the exchange of Convertible Notes
for shares of Common Stock upon conversion, except to the extent of the fair
market value of any shares of Common Stock received with respect to accrued but
unpaid interest, which should be treated as ordinary interest income to the
extent not previously included in income. With respect to any cash received in
lieu of a fractional share of Common Stock, the U.S. Holder would be treated as
if the fractional share had been issued and then redeemed for cash (and would
recognize capital gain or loss in an amount equal to the difference between (i)
the amount of cash received in lieu of the fractional share and (ii) the portion
of the U.S. Holder’s adjusted tax basis in the new Convertible Notes that is
allocated to the fractional share). Gain or loss recognized should be long−term
capital gain or loss if the U.S. Holder’s holding period for the Convertible
Notes exceeds one year. In the case of certain non−corporate U.S. Holders
(including individuals), long−term capital gains are generally eligible for a
reduced rate of taxation. The deductibility of capital losses is subject to
limitation. The U.S. Holder should have an aggregate tax basis in the shares of
Common Stock received in the conversion equal to the aggregate tax basis of the
Convertible Notes converted (less any basis allocable to any fractional share
deemed received in the conversion). The holding period for shares of Common
Stock received by the U.S. Holder upon conversion of the Convertible Notes
should include the U.S. Holder’s holding period for the Convertible Notes
surrendered in the conversion. The tax treatment of the receipt of any
additional interest paid upon conversion of the new Convertible Notes is unclear
and U.S. Holders are urged to consult their own tax advisors regarding the tax
treatment of any such payment.

       

      Constructive
Distributions in Respect of Convertible Notes

       

      The terms
of the Convertible Notes allow for changes in the conversion rate of the
Convertible Notes in certain circumstances. A change in conversion rate that
allows holders to receive more shares of Common Stock on conversion may increase
the holders’ proportionate interests in our earnings and profits or assets. In
that case, the holders would be treated as though they received a distribution
in the form of shares of our Common Stock. Such a constructive stock
distribution could be taxable to the holders, although they would not actually
receive any cash or other property.  Not all changes in conversion
rate that allow holders to receive more shares of Common Stock on conversion,
however, increase the holders’ proportionate interests in Reorganized U.S.
Concrete. For instance, a change in conversion rate simply could prevent the
dilution of the holders’ interests upon a stock split or other change in capital
structure. Changes of this type, if made by a bona fide, reasonable adjustment
formula, are not treated as constructive stock distributions. Conversely, if an
event occurs that dilutes the holders’ interests and the conversion rate is not
adjusted, the resulting increase in the proportionate interests of our
stockholders could be treated as a taxable stock distribution to them. Any
taxable constructive stock distributions resulting from a change to, or failure
to change, the conversion rate generally would be treated like a distribution
paid in cash or other property.  Such constructive distribution would
be treated as a taxable dividend to the recipient to the extent of our current
or accumulated earnings and profits, with any excess treated as a non−taxable
return of capital or as capital gain.

       

      Distributions
on Shares of Common Stock

       

      In
general, any distribution in respect of the shares of Common Stock will
constitute a dividend for U.S. federal income tax purposes to the extent of our
current or accumulated earnings and profits, as determined under U.S. federal
income tax principles. If holding period requirements are met, dividends paid to
non−corporate holders (with respect to taxable years beginning no later than
December 31, 2010) generally will qualify for the reduced tax rate on qualified
dividend income. Dividends will be eligible for the dividends received deduction
if the U.S. Holder is an otherwise qualifying corporate holder that meets the
holding period and other requirements for the dividends received deduction. To
the extent that a U.S. Holder receives a distribution on shares of Common Stock
that would otherwise constitute a dividend for U.S. federal income tax purposes,
but that exceeds our current and accumulated earnings and profits, the
distribution will be treated first as a non−taxable return of capital, which
reduces the holder’s tax basis in the shares of Common Stock. Any distribution
in excess of the holder’s tax basis in the shares of Common Stock will be
treated as capital gain and as long−term capital gain if the holder’s holding
period exceeds one year.

       

      
        
           

        

        
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      Sale,
Exchange or Other Taxable Disposition of Shares of Common Stock

       

      A U.S.
Holder generally will recognize capital gain or loss on a sale, exchange or
other taxable disposition of shares of Common Stock. A U.S. Holder’s gain or
loss will equal the difference between the amount realized by the holder and the
holder’s adjusted tax basis in the share of Common Stock. The amount realized by
a U.S. Holder will equal the amount of any cash and the fair market value of any
other property received for the shares of Common Stock. The gain or loss
recognized by a U.S. Holder on a sale or exchange of the shares of Common Stock
will be long−term capital gain or loss if the holder’s holding period for the
shares of Common Stock exceeds one year.

       

      Information
Reporting and Backup Withholding

       

      A U.S.
Holder may be subject to information reporting and backup withholding tax
(currently at a rate of 28%) on payments of (i) interest and principal on the
Convertible Notes, (ii) proceeds (including additional interest) from the sale
or other disposition (including a redemption or conversion) of the Convertible
Notes or the shares of Common Stock and (iii) dividends on the Common Stock.
Certain holders (including, among others, corporations and certain tax−exempt
organizations) are generally not subject to information reporting and backup
withholding. A U.S. Holder generally will be subject to information reporting
and backup withholding if such holder is not otherwise exempt and such
holder:

       

      
        	
                 
      

              	
                ·

              	
                fails
      to furnish in the manner required its taxpayer identification number, or
      TIN, which, for an individual, is ordinarily his or her social security
      number,

              

      

       

      
        	
                 
      

              	
                ·

              	
                furnishes
      an incorrect TIN,

              

      

       

      
        	
                 
      

              	
                ·

              	
                is
      notified by the IRS that it has failed to properly report payments of
      interest or dividends, or

              

      

       

      
        	
                 
      

              	
                ·

              	
                fails
      to certify, under penalties of perjury, that it has furnished a correct
      TIN and that the IRS has not notified the U.S. Holder that it is subject
      to backup withholding.

              

      

       

      Backup
withholding is not an additional tax. Any amounts withheld may be credited
against a holder’s U.S. federal income tax liability and may entitle such holder
to a refund, provided such holder timely furnishes certain information to the
IRS. Holders should consult with their own tax advisors regarding the
application of backup withholding to their particular situation, the
availability of an exemption from backup withholding and the procedure for
obtaining such an exemption, if available.

       

      Certain
Tax Consequences to Non−U.S. Holders

       

      Treatment
of the Convertible Notes

       

      Subject
to the discussion below regarding backup withholding, payments received in
respect of the Convertible Notes by a Non−U.S. Holder, including OID and
payments of interest, will be exempt from U.S. federal income or withholding
tax, provided that: (i) such Non−U.S. Holder does not own, actually or
constructively, 10% or more of the total combined voting power of all classes of
our stock entitled to vote, and is not a controlled foreign corporation related,
directly or indirectly, to us through stock ownership; (ii) such Non−U.S. Holder
certifies on an IRS Form W−8BEN (or successor form), under penalties of perjury,
that it is not a United States person and provides its name and address or
otherwise satisfies applicable documentation requirements; and (iii) such
payments are not effectively connected with the conduct by such Non−U.S. Holder
of a trade or business in the United States (or, where a tax treaty applies, are
not attributable to a U.S. permanent establishment).

       

      Any gain
realized upon the sale, exchange or other taxable disposition of Convertible
Notes generally will not be subject to U.S. federal income tax unless: (i) that
gain is effectively connected with the conduct of a trade or business in the
United States by the Non−U.S. Holder (and, where a tax treaty applies, is
attributable to a U.S. permanent establishment); or (ii) the Non−U.S. Holder is
an individual who is present in the United States for 183 days or more in the
taxable year of that disposition and certain other conditions are met. In
addition, accrued but unpaid interest (or OID) not previously included in income
is not treated as gain subject to these rules, but rather is subject to the
rules regarding interest (and OID) described in the preceding paragraph If a
Non−U.S. Holder of the Convertible Notes is engaged in a trade or business in
the United States, and if interest (including OID) on the Convertible Notes is
effectively connected with the conduct of such trade or business (and, where a
tax treaty applies, is attributable to a U.S. permanent establishment), the
Non−U.S. Holder, although exempt from the U.S. federal withholding tax discussed
above, generally will be subject to regular U.S. federal income tax on interest
and on any gain realized on the sale, exchange, or other taxable disposition of
Convertible Notes in the same manner as if it were a U.S. Holder. In lieu of the
certificate described above, such Non−U.S. Holder will be required to provide to
the withholding agent a properly executed IRS Form W−8ECI (or successor form) in
order to claim an exemption from withholding tax. In addition, if such Non−U.S.
Holder is a foreign corporation, it may be subject to a branch profits tax equal
to 30% (or such lower rate provided by an applicable tax treaty) of its
effectively connected earnings and profits for the taxable year, subject to
certain adjustments.

      
        
           

        

        
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      Shares
of Common Stock

       

      Any
dividends paid to a Non−U.S. Holder with respect to the shares of Common Stock
(and any deemed dividends resulting from certain adjustments, or the failure to
make certain adjustments, to the number of shares of Common Stock to be issued
upon conversion of Convertible Notes, as discussed in “—U.S.
Holders—Constructive Distributions in Respect of Convertible Notes” above) will
be subject to U.S. federal withholding tax at a 30% rate or such lower rate as
may be specified by an applicable tax treaty. Because a constructive
distribution deemed received by a Non−U.S. Holder would not give rise to any
cash from which any applicable withholding tax could be satisfied, we may
set−off any such withholding tax against any cash payments of interest payable
on the Convertible Notes.

       

      Dividends
that are effectively connected with the conduct of a trade or business within
the United States (and, where a tax treaty applies, are attributable to a U.S.
permanent establishment) are not subject to U.S. federal withholding tax, but
instead are subject to U.S. federal income tax on a net income basis at
applicable graduated individual or corporate rates. Such a Non−U.S. Holder will
be required to provide to the withholding agent a properly executed IRS Form
W−8ECI (or successor form) in order for effectively connected income to be
exempt from U.S. federal withholding tax. In addition, if such a Non−U.S. Holder
is a foreign corporation, it may be subject to a branch profits tax of 30% (or
such lower rate provided by an applicable treaty) of its effectively connected
earnings and profits for the taxable year, subject to certain
adjustments.

       

      Any gain
realized upon the sale, exchange or other taxable disposition of shares of
Common Stock generally will not be subject to U.S. federal income tax unless:
(i) that gain is effectively connected with the conduct of a trade or business
in the United States by the Non−U.S. Holder (and, where a tax treaty applies, is
attributable to a U.S. permanent establishment); or (ii) the Non−U.S. Holder is
an individual who is present in the United States for 183 days or more in the
taxable year of that disposition and certain other conditions are
met.

       

      Information
Reporting and Backup Withholding

       

      In
general, a Non−U.S. Holder will not be subject to backup withholding tax and
information reporting with respect to payments made by us with respect to the
Convertible Notes or the shares of Common Stock if the Non−U.S. Holder has
provided to the withholding agent an IRS Form W−8BEN or IRS Form W−8ECI (or
successor form) described above and such withholding agent does not have actual
knowledge or reason to know that such Non−U.S. Holder is a United States person.
In addition, no backup withholding will be required regarding the proceeds of
the sale of Convertible Notes or shares of Common Stock made within the United
States or conducted through certain U.S. financial intermediaries if the payor
receives that statement described above and does not have actual knowledge or
reason to know that the Non−U.S. Holder is a United States person or the
Non−U.S. Holder otherwise establishes an exemption.

      
        
           

        

        
          66

          
            

          

        

        
           

        

      

      TRANSFER
RESTRICTIONS

       

      The
Convertible Notes have not been registered under the Securities Act and may not
be offered or sold in the U.S. or to, or for the account or benefit of, U.S.
persons, except in accordance with an applicable exemption from the registration
requirements of the Securities Act.  The Convertible Notes are being
offered and issued only to QIBs and to institutional accredited
investors.

       

      Each
holder of Existing Notes that submits a Subscription Certificate will be deemed
to represent, warrant, and agree as follows:

       

      (1)           it
has received and reviewed this Supplement and the Disclosure
Statement;

       

      (2)           it
is not an “affiliate” (as defined under Rule 144 of the Securities Act) of
us;

       

      (3)           it
is the beneficial owner (as defined below) of, or a duly authorized
representative of one or more such beneficial owners of, the Existing
Notes;

       

      (4)           it
is, or if it is acting on behalf of a beneficial owner of the Existing Notes, it
has received a written certification from such beneficial owner (dated as of a
specific date on or since the close of such beneficial owner’s most recent
fiscal year) to the effect that such beneficial owner is (a) a QIB and is
acquiring the Convertible Notes for its own account or for a discretionary
account or accounts on behalf of one or more QIBs (as to which it has been
instructed and has the authority to make the statements contained herein) or (b)
an institutional accredited investor acquiring the Convertible Notes for its own
account or for a discretionary account or accounts on behalf of one or more
institutional accredited investors (as to which it has been instructed and has
the authority to make the statements contained herein);

       

      (5)           it
acknowledges that the Convertible Notes have not been registered under the
Securities Act and may not be sold except as permitted below;

       

      (6)           it
understands and agrees on its own behalf and on behalf of any beneficial owner
for which it is acting (a) that the Convertible Notes are being offered only in
a transaction not involving any public offering within the meaning of the
Securities Act, and (b) that (1) the Convertible Notes may be offered, resold,
pledged or otherwise transferred, only (i) so long as such security is eligible
for resale pursuant to Rule 144A, in the United States to a person whom the
seller reasonably believes is a qualified institutional buyer (as defined in
Rule 144A under the Securities Act) in a transaction meeting the requirements of
Rule 144A, (ii) outside the United States in an offshore transaction in
accordance with Rule 904 under the Securities Act, (iii) pursuant to an
exemption from registration under the securities act provided by Rule 144
thereunder (if available) or (iv) pursuant to an effective registration
statement under the Securities Act, in each of cases (i) through (iv) in
accordance with any applicable securities laws of any state of the United
States, and (2) the holder will, and each subsequent holder is required to,
notify any purchaser of any Convertible Notes from it of the resale restrictions
referred to in clause (1) above;

       

      (7)           it
understands that each Convertible Note will bear a legend substantially to the
following effect unless we determine otherwise in compliance with applicable
law:

       

      “This
note (or its predecessor) was originally issued in a transaction exempt from
registration under the United States Securities Act of 1933 (the “Securities
Act”), and this note may not be offered, sold or otherwise transferred in the
absence of such registration or an applicable exemption
therefrom.  Each purchaser of this note is hereby notified that the
seller of this note may be relying on the exemption from the provisions of
Section 5 of the Securities Act provided by Rule 144A
thereunder.

      
        
           

        

        
          67

          
            

          

        

        
           

        

      

      The
holder of this note agrees for the benefit of the issuer and the guarantors that
(a) this note may be offered, resold, pledged or otherwise transferred, only (i)
so long as such security is eligible for resale pursuant to Rule 144A, in the
United States to a person whom the seller reasonably believes is a qualified
institutional buyer (as defined in Rule 144A under the Securities Act) in a
transaction meeting the requirements of rule 144A, (ii) outside the United
States in an offshore transaction in accordance with Rule 904 under the
Securities Act, (iii) pursuant to an exemption from registration under the
securities act provided by Rule 144 thereunder (if available) or (iv) pursuant
to an effective registration statement under the Securities Act, in each of
cases (i) through (iv) in accordance with any applicable securities laws of any
state of the United States, and (b) the holder will, and each subsequent holder
is required to, notify any purchaser of this note from it of the resale
restrictions referred to in (a) above.

       

      This note
is a Global Note within the meaning of the Indenture hereinafter referred to and
is registered in the name of a Depositary or a nominee of a Depositary or a
successor Depositary.  This note is not exchangeable for notes
registered in the name of a person other than the Depositary or its nominee
except in the limited circumstances described in the indenture, and no transfer
of this note (other than a transfer of this note as a whole by the Depositary to
a nominee of the Depositary or by a nominee of the Depositary to the Depositary
or another nominee of the Depositary) may be registered except in the limited
circumstances described in the Indenture.

       

      Unless
this certificate is presented by an authorized representative of the Depositary
Trust Company, a New York Corporation (“DTC”), to the issuer or its agent for
registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested
by an authorized representative of DTC (and any payment is made to Cede &
Co. or to such other entity as is requested by an authorized representative of
DTC), any transfer, pledge or other use hereof for value or otherwise by or to
any person is wrongful inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

       

      Transfers
of this Global Note shall be limited to transfers in whole, but not in part, to
nominees of Cede & Co. or to a successor thereof or such successor’s nominee
and transfers of portions of this Global Note shall be limited to transfers made
in accordance with the restrictions set forth in Section 2.16 of the
Indenture.”

       

      (8)           it
acknowledges that (a) none of us, the Subscription Agent, or any person acting
on behalf of any of the foregoing has made any statement, representation or
warranty, express or implied, to it with respect to us or the offer or sale of
any securities, other than the information included in this Supplement (as
supplemented to the Subscription Offer Expiration Time), and (b) any information
it desires concerning us or any other matter relevant to its decision to
subscribe to purchase Convertible Notes (including a copy of this Supplement and
the Disclosure Statement) is or has been made available to it;
and

       

      (9)           it
(a) is able to act on its own behalf in the transactions contemplated by this
Supplement, (b) has such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of its prospective
investment in the Convertible Notes, and (c) (or the account for which it is
acting) has the ability to bear the economic risks of its prospective investment
in the Convertible Notes and can afford the complete loss of such
investment;

       

      (10)           it
understands that we, the Subscription Agent and others will rely upon the truth
and accuracy of the foregoing acknowledgement, representations and agreements
and agrees that if any of the acknowledgements, representations and warranties
made by its submission of the Subscription Certificate are, at any time prior to
the completion of the Subscription Offer, no longer accurate, it shall promptly
notify us.  If it is acquiring the Convertible Notes as a fiduciary or
agent for one or more investor accounts, it represents that it has sole
investment discretion with respect to each such account and it has full power to
make the foregoing acknowledgements, representations and agreements on behalf of
such account.

       

      The
representations and warranties and agreements of a holder of Existing Notes
committing to purchase Convertible Notes, shall be deemed to be repeated and
reconfirmed on and as of the Subscription Offer Expiration Time and the
Subscription Acceptance Date.  For purposes of this section, the
beneficial owner of any Existing Notes shall mean any holder that exercises sole
investment discretion with respect to such Existing Notes.

      
        
           

        

        
          68

          
            

          

        

        
           

        

      

      BOOK-ENTRY;
DELIVERY AND FORM

       

      General

       

      The
Convertible Notes are being offered and issued only:

       

      
        	
                 
      

              	
                •

              	
                to
      QIBs as defined by Rule 144A (“Rule 144A Notes”),
  or

              

      

       

      
        	
                 
      

              	
                •

              	
                to
      institutional accredited investors as defined in Rule 501(a)(1), (2), (3)
      or (7) under the Securities Act (“Rule 501(a)
  Notes”).

              

      

       

      Convertible
Notes will be issued in fully registered global form in minimum denominations of
$1,000 and integral multiples of $1,000 in excess of $1,000.  Rule
144A Notes initially will be represented by a single permanent global note (the
“Rule 144A Global Note”).  Rule 501(a) Notes will be represented by a
single permanent global note (the “501(a) Global Note” and, together with the
Rule 144A Global Notes, the “Global Notes”).

       

      The
Global Notes will be deposited upon issuance with the Trustee, as custodian for
The Depository Trust Company (“DTC”), in New York, New York, and registered in
the name of DTC or its nominee for credit to an account of a direct or indirect
participant in DTC (including the Euroclear System (“Euroclear”) or Clearstream
Banking, S.A. (“Clearstream”)), as described below under “—Depository
Procedures.”

       

      Except as
set forth below, the Global Notes may be transferred, in whole and not in part,
only to another nominee of the depository or to a successor of the depository or
its nominee.  Beneficial interests in the Global Notes may not be
exchanged for securities in certificated form except in the limited
circumstances described below under “Exchange of Global Notes for Certificated
Notes.”

       

      The
Convertible Notes will be subject to certain restrictions on transfer and will
bear restrictive legends as described under “Transfer
Restrictions.”  In addition, transfers of beneficial interests in the
Global Notes will be subject to the applicable rules and procedures of DTC and
its direct or indirect participants, which may change from time to
time.

       

      Depository
Procedures

       

      The
following is a description of the operations and procedures of DTC. These
operations and procedures are solely within the control of DTC and are subject
to changes by it. We take no responsibility for these operations and procedures
and urge investors to contact the system or their participants directly to
discuss these matters.

       

      DTC has
advised us that DTC is a limited-purpose trust company created to hold
securities for its participating organizations (collectively, the
“Participants”) and to facilitate the clearance and settlement of transactions
in those securities between the Participants through electronic book-entry
changes in accounts of its Participants. The Participants include securities
brokers and dealers, banks, trust companies, clearing corporations and certain
other organizations. Access to DTC’s system is also available to other entities
such as banks, brokers, dealers and trust companies that clear through or
maintain a custodial relationship with a Participant, either directly or
indirectly (collectively, the “Indirect Participants”). Persons who are not
Participants may beneficially own securities held by or on behalf of DTC only
through the Participants or the Indirect Participants. The ownership interests
in, and transfers of ownership interests in, each security held by or on behalf
of DTC are recorded on the records of the Participants and Indirect
Participants.

       

      DTC has
also advised us that, pursuant to procedures established by it:

       

      
        	
                 
      

              	
                •

              	
                upon
      deposit of the Global Notes, DTC will credit the accounts of the
      Participants designated by the registrar with portions of the principal
      amount of the Global Notes; and

              

      

       

      
        	
                 
      

              	
                •

              	
                ownership
      of these interests in the Global Notes will be shown on, and the transfer
      of ownership of these interests will be effected only through, records
      maintained by DTC (with respect to the Participants) or by the
      Participants and the Indirect Participants (with respect to other owners
      of beneficial interest in the Global
Notes).

              

      

       

      
        
           

        

        
          69

          
            

          

        

        
           

        

      

      All
interests in a Global Note may be subject to the procedures and requirements of
DTC.

       

      The laws
of some states require that certain Persons take physical delivery in definitive
form of securities that they own. Consequently, the ability to transfer
beneficial interests in a Global Note to such Persons will be limited to that
extent. Because DTC can act only on behalf of the Participants, which in turn
act on behalf of the Indirect Participants, the ability of a Person having
beneficial interests in a Global Note to pledge such interests to Persons that
do not participate in the DTC system, or otherwise take actions in respect of
such interests, may be affected by the lack of a physical certificate evidencing
such interests.

       

      EXCEPT AS
DESCRIBED BELOW, OWNERS OF INTEREST IN THE GLOBAL NOTES WILL NOT HAVE SECURITIES
REGISTERED IN THEIR NAMES, WILL NOT RECEIVE PHYSICAL DELIVERY OF SECURITIES IN
CERTIFICATED FORM AND WILL NOT BE CONSIDERED THE REGISTERED OWNERS OR “HOLDERS”
THEREOF UNDER THE INDENTURE FOR ANY PURPOSE.

       

      Payments
in respect of the principal of, and interest and premium, if any, on a Global
Note registered in the name of DTC or its nominee will be payable to DTC in its
capacity as the registered holder under the respective indenture. Under the
terms of the Convertible Notes Indenture, we and the Trustee will treat the
Persons in whose names the Convertible Notes, including the Global Notes, are
registered as the owners of the Convertible Notes for the purpose of receiving
payments and for all other purposes. Consequently, neither we, nor the Trustee
nor any agent of us or the Trustee has or will have any responsibility or
liability for:

       

      
        	
                 
      

              	
                •

              	
                any
      aspect of DTC’s records or any Participant’s or Indirect Participant’s
      records relating to or payments made on account of beneficial ownership
      interest in the Global Notes or for maintaining, supervising or reviewing
      any of DTC’s records or any Participant’s or Indirect Participant’s
      records relating to the beneficial ownership interests in the Global
      Notes; or

              

      

       

      
        	
                 
      

              	
                •

              	
                any
      other matter relating to the actions and practices of DTC or any of its
      Participants or Indirect
Participants.

              

      

       

      DTC has
advised us that its current practice, upon receipt of any payment in respect of
securities such as the Convertible Notes (including principal and interest), is
to credit the accounts of the relevant Participants with the payment on the
payment date unless DTC has reason to believe it will not receive payment on
such payment date. Each relevant Participant is credited with an amount
proportionate to its beneficial ownership of an interest in the principal amount
of the relevant security as shown on the records of DTC. Payments by the
Participants and the Indirect Participants to the beneficial owners of
Convertible Notes will be governed by standing instructions and customary
practices and will be the responsibility of the Participants or the Indirect
Participants and will not be the responsibility of DTC, the Trustee or us.
Neither we nor the trustee will be liable for any delay by DTC or any of the
Participants or the Indirect Participants in identifying the beneficial owners
of the Convertible Notes, and we and the trustee may conclusively rely on and
will be protected in relying on instructions from DTC or its nominee for all
purposes.

       

      Transfers
between the Participants will be effected in accordance with DTC’s procedures,
and will be settled in same-day funds.

       

      DTC has
advised us that it will take any action permitted to be taken by a holder of
Convertible Notes only at the direction of one or more Participants to whose
account DTC has credited the interests in the Global Notes and only in respect
of such portion of the aggregate principal amount of the Convertible Notes as to
which such Participant or Participants has or have given such direction.
However, if there is an Event of Default under the Convertible Notes Indenture,
DTC reserves the right to exchange the Global Notes for legended notes in
certificated form, and to distribute such notes to its
Participants.

      
        
           

        

        
          70

          
            

          

        

        
           

        

      

      Although
DTC has agreed to the preceding procedures to facilitate transfers of interests
in the Global Notes among participants in DTC, it is under no obligation to
perform or to continue to perform such procedures, and may discontinue such
procedures at any time. Neither we nor the Trustee nor any of their respective
agents will have any responsibility for the performance by DTC or its
participants or indirect participants of its obligations under the rules and
procedures governing its operations.

       

      Exchange
of Global Notes for Certificated Securities

       

      A Global
Note is exchangeable for definitive Convertible Notes in registered certificated
form (“Certificated Securities”) if:

       

      
        	
                 
      

              	
                •

              	
                DTC
      (a) notifies us that it is unwilling or unable to continue as depository
      for the Global Notes or (b) has ceased to be a clearing agency registered
      under the Exchange Act and, in either case, we fail to appoint a successor
      depository;

              

      

       

      
        	
                 
      

              	
                •

              	
                we,
      at our option and subject to the procedures of DTC, elect to exchange the
      Global Notes (in whole but not in part) for definitive securities and
      deliver a written notice to such effect to the Trustee;
  or

              

      

       

      
        	
                 
      

              	
                •

              	
                there
      has occurred and is continuing a Default or Event of Default with respect
      to the Convertible Notes (each as defined in the Convertible Notes
      Indenture).

              

      

       

      
        	
              	
                •

              	
                In
      addition, beneficial interests in a Global Note may be exchanged for
      Certificated Securities upon prior written notice given to the Trustee by
      or on behalf of DTC in accordance with the respective indenture. In all
      cases, Certificated Securities delivered in exchange for any Global Note
      or beneficial interests in Global Notes will be registered in the names,
      and issued in any approved denominations, requested by or on behalf of the
      depository (in accordance with its customary procedures) and will bear the
      applicable restrictive legend referred to in “Transfer Restrictions,”
      unless that legend is not required by applicable
  law.

              

      

       

      
        
           

        

        
          71

          
            

          

        

        
           

        

      

      LEGAL
MATTERS

       

      The
validity of the Convertible Notes will be passed upon on our behalf by
Kirkland & Ellis LLP, a limited liability partnership that includes
professional corporations, Chicago, Illinois.

       

      INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM

       

      The
consolidated financial statements incorporated in this Supplement by reference
to the 2009 10-K, and the effectiveness of internal control over financial
reporting as of December 31, 2009 have been audited by PricewaterhouseCoopers
LLP, an independent registered public accounting firm, as stated in their report
incorporated herein by reference to the 2009 10-K, which contains an explanatory
paragraph relating to the Company’s ability to continue as a going concern as
described in Note 1 to the financial statements to the 2009
10-K.

      
        
           

        

        
          72

          
            

          

        

        
           

        

      

      Exhibit
A

       

      Form
of Subscription Certificate

       

      See the
Attached

      

      Pursuant
to the terms of the Support Agreement, we are permitted to amend, modify or
waive any of the terms and conditions of the Subscription Certificate, the form
of which is attached hereto; provided, that we must obtain the prior consent of
Purchasing Parties to amend, modify or waive any of the terms contained in the
Support Certificate that are also used in the Support Agreement, to the extent
such amendment, modification or waiver would alter the meaning of such defined
term as used in the Support Agreement in a manner that would be adverse to the
Purchasing Parties.

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      Exhibit
B

       

      Form
of Purchase Agreement

       

      See the
Attached

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      Exhibit
C

       

      Form
of Registration Rights Agreement

      

      See the
Attached

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      Exhibit
D

       

      Form
of Convertible Notes Indenture

      

      See the
Attached

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      SUPPLEMENT
TO THE DISCLOSURE STATEMENT

       

      
        
          	
                  U.S.
      CONCRETE, INC.

                
	 
	
                  Subscription
      Offer to Purchase $55,000,000 of

                  9.5%
      Convertible Secured Notes due
2015

                

        

      

      
         

        
          

        

      

       

      Questions,
requests for assistance and requests for additional copies of
this Supplement, any documents incorporated by reference into this Supplement or
the accompanying attachments should be directed to the Subscription Agent at the
telephone number or the email addresses set forth below.  Questions
regarding the settlement mechanics for the issuance of the Convertible Notes
should be directed to the Settlement Agent at the telephone number set forth
below.  No Subscription Materials should be sent to the Settlement
Agent.  You may also contact your broker, dealer, commercial bank,
trust company or other nominee for assistance concerning the Subscription
Offer.

       

      
        

      

       

      The
Subscription Agent for the Subscription Offer is:

       

      Wells
Fargo Bank, National Association

       

      45
Broadway, 14th Floor

      New York,
New York  10006

      Attention:
Corporate Trust Services; Matthew Sherman - Vice President

      Matthew.Sherman@wellsfargo.com
and Lindsey.Widdis@wellsfargo.com

      

      Call
Direct:  (212) 515-1565

      

      By
Facsimile (for Eligible Institutions only): (212) 509-1716

      Confirm
Facsimile Transmission:  (212) 515-1573

       

      The
Settlement Agent for the Subscription Offer is:

       

      U.S.
Bank National Association

       

      150
Fourth Avenue North, 2nd Floor

      Nashville,
Tennessee 37219

      Attention:
Corporate Trust Services

      

      Call
Direct:  (615) 251-0733

       

        
          

        

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
B

     

    Form of Purchase
Agreement

     

    

      NOTE
PURCHASE AGREEMENT

       

      This Note Purchase Agreement
(this “Agreement”), dated as
of the Subscription Acceptance Date (as defined in herein), is by and among U.S.
Concrete, Inc., a Delaware corporation with its principal executive offices
currently located at 2925 Briarpark, Suite 1050, Houston, TX 77042 (the “Company”), the direct
and indirect domestic subsidiaries of the Company signatory hereto
(individually, a “Guarantor,” and
collectively, the “Guarantors;” the
Guarantors and the Company are sometimes referred to herein collectively as the
“Issuer
Parties” and each, an “Issuer Party”) and
the investors listed on the Schedule of Subscription Parties attached as Annex I (the “Subscription
Parties”) that have properly completed and returned a Subscription
Certificate (a “Subscription
Certificate”) in the form attached as Exhibit A hereto and
each of the investors set forth on Annex II (the “Put Option Parties,”
and together with the Subscription Parties, the “Buyers”) party to
that certain Support Agreement (as defined below).  The Company, the
Buyers and the Guarantors are sometimes referred to herein collectively as the
“Parties” and
each of them, individually, as a “Party.”

       

      Whereas:

       

      A.           The
Company and its affiliated debtors and debtors-in-possession (collectively, the
“Debtors”),
each the subject of a voluntary case (the “Cases”) under chapter
11 of title 11 of the United States Code (the “Bankruptcy Code”) in
the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”)
will be reorganized pursuant to a joint plan of reorganization (the “Plan”).

       

      B.           The
Company and each Buyer are entering into and delivering this Agreement in
reliance upon the exemption from securities registration afforded by Section
4(2) of the Securities Act of 1933, as amended (the “Securities Act”), and
Rule 506 of Regulation D (“Regulation D”) as
promulgated by the U.S. Securities and Exchange Commission (the “SEC”) under the
Securities Act.

       

      C.           The
Company has authorized a new series of convertible secured notes of the Company
titled 9.5% Convertible Secured Notes due 2015 (the “Convertible Notes”)
convertible into shares of the common stock of the Company, par value $0.001 per
share (the “Common
Stock”; and the shares of Common Stock into which the Convertible Notes
are convertible are sometimes referred to herein as the “Conversion Shares”),
in connection with the Plan. The Convertible Notes will be issued in accordance
with the terms of that certain indenture (as may be amended, modified or
supplemented from time to time, the “Convertible Notes
Indenture”) to be entered into among the Company, the Guarantors, U.S.
Bank National Association, as trustee (in such capacity, the “Trustee”) and
collateral agent (in such capacity, the “Collateral
Agent”).

       

      D.           Each
Guarantor will fully and unconditionally guarantee the Convertible Notes,
pursuant to the terms of the Convertible Notes Indenture, as the purchase of the
Convertible Notes by the Buyers will benefit the Company and Guarantors, both
individually and as a whole.  The guarantees to be entered into by the
Guarantors pursuant to the Convertible Notes Indenture are referred to herein as
the “Guarantees,” and the
Convertible Notes, the Conversion Shares and the Guarantees are sometimes
referred to herein collectively as the “Securities.”

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      E.           The
Company and the Put Option Parties have entered into (i) a letter agreement
dated July 20, 2010 (the “Purchaser Letter”)
with respect to the initial terms and conditions of the Convertible Notes and
(ii) an agreement dated August 16, 2010 (the “Support Agreement”)
pursuant to which each such Put Option Party has agreed to, among other things,
purchase (or cause its designated affiliates to purchase) up to one-third of the
Aggregate Principal Amount (as defined below) upon the exercise by the Company
of the Put Option (as defined therein).

       

      F.           The
Issuer Parties have prepared an Offering Supplement to the Disclosure Statement,
dated as of August 16, 2010 (including all documents incorporated by reference
therein, the “Offering
Memorandum”), with respect to the offering of the Securities (the “Subscription Offer”
and, together with the transactions contemplated hereby and by the Support
Agreement, the “Transactions”).

       

      G.           Each
Buyer wishes to purchase, and the Company wishes to sell, upon and subject to
the terms and conditions set forth in this Agreement, the Subscription Amount
(as such term is defined in the Offering Memorandum) of the Securities. The
Subscription Amount of any Buyer shall not be greater than its pro rata portion
of the Convertible Notes, although the Put Option Parties may be required to
purchase additional Securities in accordance with terms of the Support
Agreement.  The aggregate principal amount of the Securities to be
issued in the Subscription Offer shall be $55,000,000 (the “Aggregate Principal
Amount”).

       

      H.           Each
Buyer, by virtue of the execution and delivery of its Subscription Certificate
by such Buyer and its dealer, broker or other nominee to the Subscription Agent
(as defined below) by the Subscription Offer Expiration Time, will, upon the
Company’s acceptance of such Subscription Certificate, become a party to this
Agreement and the Registration Rights Agreement, substantially in the form
attached hereto as Exhibit B (the “Registration Rights
Agreement”), pursuant to which the Issuer Parties will agree to file with
the SEC, under the circumstances set forth therein, one or more shelf
registration statements pursuant to Rule 415 of the Securities Act relating to
the sale by certain holders of the Convertible Notes and Conversion
Shares.

       

      I.   
        Concurrently with the closing of
the purchase and sale of the Securities hereunder, the Issuer Parties will enter
into a revolving credit facility among the Company, certain affiliates thereof,
JPMorgan Chase Bank, N.A. as administrative agent (“Administrative
Agent”) and the lenders party thereto and any related documents (the
“Revolving
Facility”).

       

      J. 
          The Issuer Parties
will secure their obligations under the Securities by (i) first-priority liens
on substantially all of the assets of the Company and each of the Guarantors,
including material owned real property and material owned quarries and related
assets, subject to permitted liens (including a second-priority lien in favor of
the collateral agent under the Revolving Facility) and certain exceptions as
described in the Convertible Notes Security Agreement (the “First Lien
Collateral”); and (ii) a second-priority lien on the assets of the
Company and the Guarantors securing the Revolving Facility on a first-priority
basis, subject to permitted liens and certain exceptions, as described in the
Convertible Notes Security Agreement (the “Second Lien
Collateral,” and together with the First Lien Collateral, the “Collateral”).  In
connection with the Transactions, (a) the Issuer Parties and the Collateral
Agent will enter into the Convertible Notes Security Agreement to be dated as of
the Closing Date (the “Convertible Notes Security
Agreement”), providing for, among other things, the grant of a security
interest in the Collateral as security for the Issuer Parties’ obligations under
the Securities and other documents and instruments (including, for the avoidance
of doubt, mortgages) evidencing or creating or purporting to create a security
interest in favor of the Trustee and the Collateral Agent (the “Other Security
Documents”) and, together with the Convertible Notes Security Agreement,
the “Security
Documents”) and (b) the Administrative Agent under the Revolving Facility
and the Collateral Agent will enter into an Intercreditor Agreement to be dated
the Closing Date, which Intercreditor Agreement shall be acknowledged by the
Company (the “Intercreditor
Agreement”).

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

      K.           This
Agreement, the Convertible Notes, the Guarantees, the Convertible Notes
Indenture, the Registration Rights Agreement, the Security Documents, the
Support Agreement, the Intercreditor Agreement, and the Subscription
Certificates as each of them may be amended, modified or supplemented from time
to time, are sometimes referred to herein collectively as the “Transaction
Documents” and each, a “Transaction
Document.”

       

      L.
           Capitalized
terms used but not defined herein shall have the meaning given to such terms in
the Offering Supplement.

       

      NOW, THEREFORE, in
consideration of the mutual covenants, agreements, representations and
warranties contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, and intending to be
legally bound, the Parties hereby agree as follows:

       

      1.           PURCHASE
AND SALE OF THE SECURITIES

       

      (a)           Purchase and Sale of the
Securities at Closing.  Subject to the satisfaction (or waiver,
as provided herein) of the conditions set forth in Section 5 and
Section 6
below, on the Closing Date (as defined below), the Company agrees to issue and
sell to each Buyer and each Buyer severally, but not jointly, agrees to purchase
from the Company, the respective aggregate principal amount of Convertible Notes
set forth in the Subscription Certificate executed by such Buyer (subject to
reduction as described in the Offering Memorandum); provided that, to the
extent the Company does not receive Subscription Certificates providing for the
purchase of at least the Aggregate Principal Amount on or prior to the
Subscription Offer Expiration Time, each of the Put Option Parties also agrees
to purchase its respective Put Percentage (as defined in the Support Agreement)
of Convertible Notes (subject to the provisions of the Support
Agreement).  The purchase and sale of the Securities on the terms and
subject to the conditions set forth in this Agreement is referred to herein as
the “Closing.”  The
Guarantors agree to execute, and deliver to the Trustee, the Guarantees on
account of the Convertible Notes issued and sold on the Closing
Date.

       

      (b)           Purchase
Price.  Each Buyer shall pay $1,000 for each $1,000 of
principal amount of the Securities to be purchased (the “Purchase Price”) by
such Buyer at the Closing.

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

      (c)           Closing
Date.  The Closing shall take place at the offices of
Kirkland & Ellis LLP, 300 N. LaSalle, Chicago, Illinois 60654, at 9:00
a.m., Chicago time, on the date (the “Closing Date”) set
forth on the notice (the “Closing Date Notice”)
delivered by the Company to Wells Fargo Bank, National Association, as
subscription agent for the Subscription Offer (the “Subscription Agent”)
and the Put Option Parties setting forth the satisfaction or waiver of all
closing conditions set forth in this Agreement (other than those that by their
terms will be satisfied on the Closing Date).  The Closing Date shall
occur on the effective date (the “Effective Date”) of
the Plan and shall occur no earlier than the second business day after the
Company’s delivery of the Closing Date Notice.

       

      (d)           Form of
Payment.  Upon the satisfaction (or waiver, as provided herein)
of the conditions set forth in Section 5 and
Section 6
below, the Securities shall be delivered by the Issuer Parties to the Buyers
through the facilities of The Depository Trust Company (“DTC”) against payment
of the Purchase Price therefor.  Each Buyer (other than the Put Option
Parties) shall deliver its Subscription Payment to its broker or nominee, who
shall deliver such payment to Wells Fargo Bank, National Association, as escrow
agent for the Subscription Offer (the “Escrow Agent”) not
later than one business day following the Subscription Acceptance Date in
accordance with the terms of its Subscription Certificate and the terms of the
Subscription Offer described in the Offering Memorandum.  Each Put
Option Party shall deliver its Subscription Payment and the applicable Put
Participation Amount (as defined in the Support Agreement) to the Escrow Agent
as soon as practicable after the Company’s delivery of the Put Election, in
accordance with the terms of the Support Agreement, but in no event later than
the business day immediately preceding the Closing Date.

       

      2.           REPRESENTATIONS
AND WARRANTIES OF THE BUYERS.

       

      Each
Buyer represents and warrants, on behalf of itself only and not with respect to
any other Parties, to the other Parties that the following statements are true,
correct and complete as of the date hereof:

       

      (a)           Organization;
Powers.  Such Buyer is duly organized, validly existing, and in
good standing under the laws of the jurisdiction of its organization or
formation, as applicable.  Such Buyer has all requisite power and
authority to enter into this Agreement and the Transaction Documents to which it
is a party, and to perform and comply with all of the terms, covenants, and
conditions to be performed and complied with by it hereunder and
thereunder.

       

      (b)           Authorization;
Enforceability.  The entry into and performance of this
Agreement and the Transaction Documents to which it is a party by it have been
duly authorized by all necessary actions on the part of such
Buyer.  This Agreement has been duly entered into and constitutes the
legal, valid, and binding obligation of such Buyer, enforceable against it in
accordance with its terms except as the enforceability of this Agreement may be
affected by bankruptcy, insolvency, or similar laws affecting creditors’ rights
generally, and by judicial discretion in the enforcement of equitable
remedies.

       

      (c)           No
Conflicts.  The execution, delivery and performance by such
Buyer of this Agreement and the Registration Rights Agreement and the
consummation by such Buyer of the transactions contemplated hereby and thereby
will not (i) result in a violation of the organizational documents of such Buyer
or (ii) conflict with, or constitute a default (or an event which with notice or
lapse of time or both would become a default) under, or give to others any
rights of termination, amendment, acceleration or cancellation of, any
agreement, indenture or instrument to which such Buyer is a party, or (iii)
result in a violation of any law, rule, regulation, order, judgment or decree
(including federal and state securities laws) applicable to such Buyer, except
in the case of clauses (ii) and (iii) above, for such conflicts, defaults,
rights or violations which would not, individually or in the aggregate,
reasonably be expected to have a material adverse effect on the ability of such
Buyer to perform its obligations hereunder.

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

      (d)           Ownership.  Such
Buyer is, as of the Record Date, (i) (A) the sole beneficial owner and/or the
investment advisor, authorized representative, or manager for the beneficial
owner of Existing Notes having the power to vote and dispose of the Existing
Notes indicated on such Buyer’s Subscription Certificate on behalf of such
beneficial owner; and (B) entitled (for its own account or for the account of
other persons or entities claiming through any of them) to all of the rights and
economic benefits of such Existing Notes; or (ii) otherwise entitled to act on
behalf of such Existing Notes and/or the beneficial owner or owners and/or
investment advisor or manager thereof.

       

      (e)           Accredited Investor
Status.  Such Buyer acknowledges that (i) it is either
(A) a “qualified institutional buyer” within the meaning of Rule 144A
promulgated by the SEC under the Securities Act or (B) an institutional
investor that is an “accredited investor,” within the meaning of Rule 501(a)(1),
(2), (3) and (7) promulgated by the SEC under the Securities Act, (ii) it is
acquiring the Securities to be issued to it hereunder for its own account, for
investment, and not with a view to or for sale in connection with any
distribution thereof in violation of the registration provisions of the
Securities Act or the rules and regulations promulgated thereunder and (iii) it
is aware that an investment in the Securities involves economic risk and that it
may lose its entire investment in the Securities. Such Buyer further
acknowledges that the Securities are “restricted securities” under the federal
securities laws, have not been registered under the Securities Act or any state
securities or “blue sky” laws and may not be offered or sold except pursuant to
an effective registration statement thereunder or an exemption from registration
under the Securities Act and applicable state securities laws.  Such
Buyer further acknowledges that it has adequate information concerning the
business and affairs of the Company to make an informed decision regarding the
purchase of Securities contemplated hereby and has independently and without
reliance upon the Company, or the Company’s advisors, and based upon such
information such Buyer has deemed appropriate, made its own analysis and
decision to enter into the Transaction Documents to which it is a party, except
that such Buyer has relied upon the representations, warranties, agreements and
covenants of the Issuer Parties contained in this Agreement and the information
provided in the Offering Memorandum. Such Buyer understands that nothing in the
Offering Memorandum, Transaction Documents or any other materials presented by
or on behalf of the Company or its subsidiaries to such Buyer in connection with
the purchase of the Securities constitutes legal, tax or investment
advice.  Such Buyer has sought such accounting, legal and tax advice
as it has considered necessary to make an informed investment decision with
respect to its acquisition of the Securities.

       

      (f)           Legend.  Such
Buyer understands that upon the original issuance thereof, and until such time
as the same is no longer required under applicable requirements of the
Securities Act or applicable state securities laws, the certificates or other
instruments representing the Convertible Notes and all certificates or other
instruments issued in exchange therefor or in substitution thereof, including
the Common Stock issued upon conversion of the Convertible Notes, shall bear the
legend(s) set forth in the Convertible Notes Indenture, and that the Company
will make a notation on its records and give instructions to the Trustee in
order to implement the restrictions on transfer of the Convertible Notes, set
forth and described therein.

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

      (g)           General
Solicitation.  Such Buyer is not purchasing the Securities as a
result of any advertisement, article, notice or other communication regarding
the Securities published in any newspaper, magazine or similar media or
broadcast over television or radio or presented at any seminar or any other
general advertisement.

       

      (h)           Reliance on
Exemptions.  Such Buyer understands that the Securities are
being offered and sold to it in reliance on specific exemptions from the
registration requirements of United States federal and state securities laws and
that the Issuer Parties are relying in part upon the truth and accuracy of, and
such Buyer’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of such Buyer set forth herein in order to
determine the availability of such exemptions and the eligibility of such Buyer
to acquire the Securities.

       

      (i)           No Governmental
Review.  Such Buyer understands that no United States federal
or state agency or any other government or governmental agency has passed on or
made any recommendation or endorsement of the Securities or the fairness or
suitability of the investment in the Securities, nor have such authorities
passed upon or endorsed the merits of the offering of the
Securities.

       

      (j)           Residency.  For
purposes of U.S. securities laws, such Buyer is a resident of the jurisdiction
specified on such Buyer’s Eligibility Questionnaire, which it previously
submitted to the Subscription Agent in accordance with the terms of the Offering
Memorandum.

       

      3.           REPRESENTATIONS
AND WARRANTIES OF THE ISSUER PARTIES.

       

      The
Issuer Parties jointly and severally represent and warrant to each Buyer as set
forth below, except as has been previously disclosed in (i) the Offering
Memorandum or (ii) any report, schedule, form, statement or other document
required to be filed by the Company with the SEC pursuant to the reporting
requirements of the Securities Exchange Act of 1934, as amended, filed with the
SEC prior to the date of this Agreement:

       

      (a)           Organization;
Powers.  Such Issuer Party is duly organized, validly existing,
and in good standing under the laws of the jurisdiction of its organization or
formation, as applicable.  Such Issuer Party has all requisite power
and authority (i) to own, lease and operate its properties and to conduct its
business as described in the Offering Memorandum; (ii) to execute and
deliver this Agreement and the Transaction Documents to which it is a party and
(iii) to perform and comply with all of the terms, covenants, and conditions to
be performed and complied with by such Issuer Party hereunder and
thereunder.  Such Issuer Party is duly qualified to transact business
in each jurisdiction in which the nature of its business makes such
qualification necessary, except where the failure to be so qualified would not
impair or hinder the ability of such Issuer Party to perform its obligations
under this Agreement or the Transaction Documents to which it is a
party.

      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

      (b)           Authorization;
Enforceability.  The execution, delivery, and performance of
this Agreement and the other Transaction Documents by such Issuer Party have
been duly authorized by all necessary actions on the part of such Issuer
Party.  This Agreement and each other Transaction Document has been or
will be on the Closing Date, as applicable, duly executed and delivered by such
Issuer Party and constitutes or will constitute on the Closing Date, as
applicable, the legal, valid, and binding obligation of such Issuer Party,
enforceable against it in accordance with its terms except as the enforceability
of this Agreement may be affected by bankruptcy, insolvency, or similar laws
affecting creditors’ rights generally, and by judicial discretion in the
enforcement of equitable remedies.

       

      (c)           Government Approvals; No
Conflicts.  The execution and delivery by each Issuer Party of
this Agreement and the Transaction Documents and the performance by each Issuer
Party of its obligations under this Agreement and the Transaction Documents and
the consummation of the Transactions, including its issuance of the Convertible
Shares (with or without the giving of notice, the lapse of time, or both): (i)
subject to the approval of the Bankruptcy Court and approval of the Plan, do not
require the consent of any third party (including any federal, state or local
governmental authority, including any court or administrative or regulatory
agency (a “Governmental
Authority”); (ii) subject to the approval of the Bankruptcy Court and
approval of the Plan, will not conflict with any provision of such Issuer
Party’s certificate of incorporation, certificate of formation, bylaws,
operating agreement or other organizational documents; (iii) subject to the
approval of the Bankruptcy Court and approval of the Plan, will not violate,
result in a breach of, or contravene any applicable common law and any
applicable statute, ordinance, code, or other law, rule, regulation, order,
technical or other standard, requirement, or procedure enacted, adopted,
promulgated, or applied by any Governmental Authority, including the terms of
any license or permit and any applicable order, decree, or judgment that may
have been handed down, adopted, or imposed by any Governmental Authority, in
each case as in effect on the date of this Agreement applicable to such Issuer
Party (other than any filings required under federal or state securities laws to
be made by the Closing Date, or to the extent permitted by applicable laws,
thereafter); and (iv) except with respect to the revolving credit, term
loan and guarantee agreement, effective as of May 3, 2010 among the Company, the
Guarantors, JPMorgan Chase Bank and the lenders party thereto (the “DIP Facility”), will
not violate, conflict with, result in a material breach of any terms of,
constitute grounds for termination of, constitute a default under (nor has any
event occurred that, with notice or passage of time or both, would constitute a
default under), or result in the acceleration of any performance required by the
terms of, any mortgage, indenture, lease, contract, agreement, or similar
instrument to which such Issuer Party is a party or by which such Issuer Party
or its properties may be bound legally.

       

      (d)           Issuance of
Securities. The Securities, when issued, sold and delivered as provided
herein, will each be duly and validly issued, fully paid and nonassessable and
will be free of restrictions on transfer other than restrictions on transfer
under applicable state and federal securities laws and entitled to the benefits
provided by the Convertible Notes Indenture.  The Conversion Shares,
when issued, sold and delivered as provided herein, will be free and clear of
all liens, encumbrances, equities or claims and the Company will have reserved
an adequate amount of the Common Stock for issuance of Conversion Shares upon
conversion of the Convertible Notes as of the Closing.

      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

      (e)           Investment Company
Status.  Each of the Issuer Parties is not, and after giving
effect to the offering and sale of the Convertible Notes and the application of
the proceeds thereof, each of the Issuer Parties will not be, an “investment
company” as defined in, or subject to regulation under, the Investment Company
Act of 1940, as amended, and the rules and regulations of the SEC promulgated
thereunder.

       

      (f)           Margin
Regulations.  Neither the issuance, sale and delivery of the
Convertible Notes nor the application of the proceeds thereof by the Company
will result in a violation of Section 7 of the  Exchange Act,
Regulations T, U or X of the Board of Governors of the Federal Reserve System or
any other regulation of such Board of Governors.

       

      (g)           No General Solicitation or
Directed Selling Efforts.  None of the Company or any of its
affiliates (as defined in Rule 501(b) of Regulation D) or any person or entity
acting on its or their behalf, has (i) engaged directly or indirectly in any
form of general solicitation or general advertising (within the meaning of Rule
502(c) of Regulation D) in connection with the offering of the Securities or in
any manner involving a public offering within the meaning of Section 4(2) of the
Securities Act or (ii) engaged in any directed selling efforts within the
meaning of Regulation S, and all such persons will comply with the offering
restrictions requirement of Regulation S.  Except for this Agreement
and the other Transaction Documents, the Company has not entered, and will not
enter, into any arrangement or agreement with respect to the distribution of the
Securities.

       

      (h)          QIBs and Accredited
Investors.  The Company has not offered or sold any of the
Securities to any person or entity whom it reasonably believes is not (i) a
“qualified institutional buyer” as defined in Rule 144A or (ii) an institutional
“accredited investor” (as defined in clauses (1), (2), (3) and (7) of Rule
501(a) of Regulation D).

       

      (i)
           Untrue Statements or
Omissions.  The Offering Memorandum did not, as of the date
thereof, and will not, as of the Closing Date, contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.  In addition, each of the Company’s filings with
the SEC since January 1, 2010 is, as of its respective filing date, complete and
correct in all material respects and does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
contained therein, in light of the circumstances under which such statements are
made, not misleading.

       

      4.           COVENANTS
OF THE PARTIES.

       

      (a)           Reasonable Best
Efforts.  Each Party shall use its reasonable best efforts to
timely satisfy each of the conditions to be satisfied by it as provided in Section 5 and Section 6, as
applicable, of this Agreement.

       

      (b)           Form D and Blue
Sky.  The Company shall file a Form D with respect to the
Securities as required under Regulation D.  The Company shall take all
necessary action in order to obtain an exemption for or to qualify the
Securities for sale to the Buyers at the Closing pursuant to this Agreement
under applicable securities or “Blue Sky” laws of the states of the United
States (or to obtain an exemption from such qualification).

      
        
           

        

        
          -8-

          
            

          

        

        
           

        

      

      (c)           Reservation of
Shares. The Company shall take all actions necessary to at all times have
authorized, and reserved for the purpose of issuance, no less than one hundred
five percent (105%) of the number of shares of Common Stock (the “Reservation Amount”)
issuable upon conversion of all of the Convertible Notes without regard to any
limitations on conversions or exercise.

       

      (d)           Use of
Proceeds.  The proceeds of the Securities shall be used only
(i) to pay off indebtedness under the DIP Facility and (ii) for working capital
and for general corporate purposes

       

      (e)           DTC. The Company
shall cause the Securities to be eligible for clearance and settlement through
the facilities of DTC.

       

      (f)           No Resales by the
Company.  The Company shall not, and shall use its reasonable
best efforts to not permit any of its affiliates (as defined in Rule 144 under
the Securities Act) to, resell any of the Securities that have been acquired by
any of them, except for Securities purchased by the Company or any of its
affiliates and resold in a transaction registered under the Securities
Act.

       

      (g)           No
Stabilization.  None of the Issuer Parties will take, directly
or indirectly, any action designed to or that could reasonably be expected to
cause or result in any stabilization or manipulation of the price of any
security of the Company to facilitate the sale or resale of the
Securities.

       

      (h)           Offering Memorandum.
The Company shall prepare an Offering Memorandum in a form approved by the Put
Option Parties (such approval not to be unreasonably withheld) and shall not
make any amendment or supplement to the Offering Memorandum which shall
reasonably be disapproved by the Put Option Parties.

       

      
        	
                 
      

              	
                5.

              	
                CONDITIONS
      TO THE COMPANY’S OBLIGATION TO SELL, AND THE GUARANTORS’ OBLIGATION TO
      GUARANTEE, THE CONVERTIBLE NOTES.

              

      

       

      The
obligation of the Company hereunder to issue and sell the Convertible Notes to
each Buyer at the Closing, and the Guarantors’ obligations to guarantee the
Convertible Notes, are subject to the satisfaction, at or before the Closing, of
each of the following conditions, provided that these
conditions are for the sole benefit of the Issuer Parties and may be waived by
the Issuer Parties at any time in their sole discretion by providing each Buyer
with prior written notice thereof:

       

      (a)           the
order confirming the Plan (the “Confirmation Order”)
by the Bankruptcy Court in the Chapter 11 Cases shall have become a final order,
in full force and effect without reversal, modification or stay and the Plan
shall have been consummated on the terms and conditions set forth therein, as
amended and in effect as of the date of the Confirmation Order;

       

      (b)           the
Effective Date and the Closing Date shall occur no later than October 1,
2010;

      
        
           

        

        
          -9-

          
            

          

        

        
           

        

      

      (c)           the
Put Option Parties shall have deposited funds as provided herein and in the
Support Agreement sufficient to satisfy in full their obligation under the
Support Agreement and the transactions contemplated by the Support Agreement
shall occur concurrently with the Closing of the Subscription
Offer;

       

      (d)           the
Subscription Agent shall have received a fully executed Subscription Certificate
for each Buyer;

       

      (e)           the
Trustee shall have executed and delivered the Convertible Notes Indenture and it
shall have become binding on and enforceable against the Trustee;

       

      (f)           the
parties to the Security Documents, other than the Company and the Guarantors,
shall have executed and delivered the Security Documents and the Security
Documents shall be binding on and enforceable against the parties thereto other
than the Company and the Guarantors;

       

      (g)          the
parties to the Intercreditor Agreement, other than the Company and the
Guarantors, shall have executed and delivered to the Company the Intercreditor
Agreement and the Intercreditor Agreement shall be binding on and enforceable
against the parties thereto other than the Company and the
Guarantors;

       

      (h)          the
Revolving Facility credit agreement shall have been executed and delivered by
all requisite parties (other than the Company and the Guarantors) and be binding
on and enforceable against all parties thereto (other than the Company and the
Guarantors), all conditions to funding thereunder shall have been satisfied with
the closing of the Transactions, all obligations under the DIP Facility (other
than contingent obligations not then due and payable) will have been repaid in
full, all commitments under the DIP Facility will have been terminated and all
liens and security interests related to the DIP Facility will have been
terminated or released;

       

      (i)           no
legal action or litigation shall have been taken or instituted, or threatened by
a third party, which seeks to (or does) restrain, prevent or otherwise impose
conditions on the Transactions which individually or in the aggregate could
reasonably be expected to result in a Material Adverse Effect (as defined below)
or that would materially and adversely affect the consummation of the
Transactions;

       

      (j)           the
representations and warranties of each Buyer contained in the Transaction
Documents to which such Buyer is a party shall be true and correct in all
material respects (other than those representations and warranties that are
qualified by “materiality” or “material adverse effect”, which shall be true and
correct in all respects) as of the date when made and as of the Closing Date as
though made at that time (except for representations and warranties that speak
as of a specific date, which shall be true and correct as of such specified
date), and each Buyer shall have performed, satisfied and complied in all
material respects with the covenants, agreements and conditions required by this
Agreement to be performed, satisfied or complied with by such Buyer at or prior
to the Closing Date;

       

      (k)           no
action shall have been taken and no statute, rule, regulation or order shall
have been enacted, adopted or issued by any federal, state or foreign
governmental or regulatory authority of competent jurisdiction that would, as of
the Closing Date, render impossible the issuance or sale of the Securities or
the consummation of the Transactions; and

      
        
           

        

        
          -10-

          
            

          

        

        
           

        

      

      (l)           no
injunction or order of any federal, state or foreign court shall have been
issued that would, as of the Closing Date, prevent the issuance or sale of the
Securities.

       

      
        	
                 
      

              	
                6.

              	
                CONDITIONS
      TO EACH BUYER’S OBLIGATION TO PURCHASE THE SECURITIES AT THE
      CLOSING.

              

      

       

      The
obligation of each Buyer hereunder to purchase the Securities at the Closing is
subject to the satisfaction, at or before the Closing, of each of the following
conditions, provided that these
conditions are for each Buyer’s sole benefit and may be waived by such Buyer at
any time in its sole discretion by providing the Company with prior written
notice thereof:

       

      (a)           each
of the representations set forth in Section 3 shall be
true and correct in all material respects (other than those representations and
warranties that are qualified by “materiality” or “material adverse effect”,
which shall be true and correct in all respects) as of the date of this
Agreement and as of the Closing Date as though made at that time (except for
representations and warranties made as of a specified date, which shall be true
and correct only as of the specified date);

       

      (b)           each
of the Issuer Parties shall have performed, satisfied and complied in all
material respects with all covenants, agreements and conditions required by this
Agreement and the Transaction Documents to which it is a party to be performed,
satisfied or complied with by such Issuer Party at or prior to the Closing
Date;

       

      (c)           there
shall not have occurred a dismissal or conversion of any Case to a case under
chapter 7 of the Bankruptcy Code or the appointment of a chapter 11 trustee in
any Case;

       

      (d)           no
provision of the Plan (as filed with the Bankruptcy Court) shall have been
amended, supplemented or otherwise modified in any respect in a manner
materially adverse to the Buyers without the consent of the Buyers (such consent
not to be unreasonably withheld or delayed);

       

      (e)           the
Confirmation Order by the Bankruptcy Court in the Cases shall have become a
final order, in full force and effect without reversal, modification or stay;
the Plan shall have been consummated on the terms and conditions set forth
herein, as amended and in effect as of the date of the Confirmation
Order;

       

      (f)           the
Company shall provide evidence to the Buyers, in form and substance reasonably
satisfactory to the Buyers, that substantially concurrently with the issuance of
the Convertible Notes all obligations under the DIP Facility (other than
contingent obligations not then due and payable) will have been repaid in full,
all commitments under the DIP Facility will have been terminated and all liens
and security interests related to the DIP Facility will have been terminated or
released;

      
        
           

        

        
          -11-

          
            

          

        

        
           

        

      

      (g)           except
to the extent disclosed by the Company in any filing made by the Company with
the Securities and Exchange Commission (the “SEC”) prior to July
20, 2010, in the Plan or in writing to the Put Option Parties on July 20, 2010,
(i) there shall not have occurred or become known to the Buyers any events,
developments, conditions or circumstances that, individually or in the
aggregate, have had or could reasonably be expected to have a material adverse
effect on the business, operations, property, condition (financial or otherwise)
or prospects of the Company and its direct and indirect subsidiaries, taken as a
whole (or the reorganized Company and its direct and indirect subsidiaries,
taken as a whole) (a “Material Adverse
Effect”) and (ii) no material assets of the Debtors shall have been
sold or agreed to be sold outside of the ordinary course of business from and
after the date hereof;

       

      (h)           (i)
the Company and the Guarantors shall have entered into the Transaction Documents
and the Company shall have delivered the executed versions  of the
Transaction Documents to the Put Option Parties on the Closing Date and (ii) on
the Effective Date, (A) there not being any event or condition which constitutes
an event of default, or which upon notice, lapse of time, or both would
constitute an event of default, under the Transaction Documents and (B) the
Transaction Documents being in full force and effect;

       

      (i)           the
payment of the fees and reimbursement of out-of-pocket costs and expenses as set
forth in the Purchaser Letter, the Plan and the letter, dated as of February 22,
2010, between the Company and Paul, Weiss, Rifkind, Wharton & Garrison LLP
(“Paul Weiss”)
regarding payment by the Company of fees and expenses to Paul Weiss as counsel
to a group formed by certain holders of the Existing Notes (the “Expense Agreement”),
in accordance with the terms hereof and thereof; provided, that the
Put Option Parties shall cause Paul Weiss to provide the Company with an
estimate of its fees and expenses through the Closing Date at least two (2)
business days prior to the Closing Date;

       

      (j)
           the Effective
Date and the Closing Date shall occur on or prior to October 1,
2010;

       

      (k)          as
of the date of the Offering Memorandum and on the Closing Date, the materials to
be used in connection with the Subscription Offer regarding the Company, its
subsidiaries and the Convertible Notes, for distribution to eligible holders of
the Existing Notes, when furnished and taken as a whole, shall be complete and
correct in all material respects and shall not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
contained therein, in light of the circumstances under which such statements are
made, not misleading;

       

      (l)           the
following shall be true and correct: each of the Company’s filings with the SEC
since January 1, 2010 is, as of its respective filing date, complete and correct
in all material respects and does not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements contained
therein, in light of the circumstances under which such statements are made, not
misleading;

      
        
           

        

        
          -12-

          
            

          

        

        
           

        

      

      (m)         substantially
concurrently with the issuance of the Convertible Notes, the Debtors and the
lenders under the Revolving Facility (i) having entered into the definitive
documentation for the Revolving Facility and any related documentation and
reasonably satisfactory to the Buyers and (ii) all conditions to borrowing under
the Revolving Facility shall be satisfied or waived (provided that if such
waiver could reasonably be expected to be adverse in any material respect to the
interests of the Put Option Parties, the Put Option Parties shall have consented
to such waiver) on or prior to the Effective Date, and (iii) on the Effective
Date (y) there shall not be any event or condition which constitutes an
event of default, or which upon notice, lapse of time, or both would become an
event of default, under the Revolving Facility and (z) the Revolving Facility
shall be in full force and effect;

       

      (n)          on
the Closing Date, the Put Option Parties shall have received and the Trustee
shall be entitled to rely on an opinion from Kirkland & Ellis LLP, counsel
to the Issuer Parties, dated as of the Closing Date and addressed to the Put
Option Parties, in form and substance reasonably satisfactory to the Put Option
Parties;

       

      (o)          on
the Closing Date, the Put Option Parties shall have received and the Trustee
shall be entitled to rely on (i) an opinion from Baker Botts L.L.P., Texas
counsel to the Issuer Parties, dated as of the Closing Date and addressed to the
Put Option Parties, in form and substance reasonably satisfactory to the Put
Option Parties and (ii) opinions from any other counsel to the Issuer Parties,
dated as of the Closing Date and addressed to the Put Option Parties, as are
delivered in connection with the Revolving Facility;

       

      (p)           the
Put Option Parties shall have received a certificate of each of the Issuer
Parties, dated the Closing Date, signed on behalf of each Issuer Party by, in
the case of the Company, its Chairman of the Board, President or any Vice
President, or in the case of each other Issuer Party by an authorized officer of
such Issuer Party, to the effect that:

       

      (i)           the
representations and warranties of such Issuer Party contained in this Agreement
are true and correct in all material respects on and as of the date hereof and
on and as of the Closing Date (unless such representations and warranties relate
to a specified date), and such Issuer Party has performed all covenants and
agreements and satisfied all conditions on its part to be performed or satisfied
hereunder at or prior to the Closing Date (unless otherwise
waived);

       

      (ii)          at
the Closing Date, since the date hereof or since the date of the most recent
financial statements in the Offering Memorandum (exclusive of any amendment or
supplement thereto after the date hereof), no event or development has occurred,
and no information has become known to such officer, that, individually or in
the aggregate, has or would be reasonably likely to have a Material Adverse
Effect; and

       

      (iii)          the
sale of the Securities hereunder has not been enjoined (temporarily or
permanently);

       

      (q)           the
Put Option Parties shall have received a certificate of each of the Issuer
Parties, dated the Closing Date, signed on behalf of each Issuer Party by a
respective Secretary or Assistant Secretary, which shall include, among other
things, (x) charter or by-laws or similar constitutive documents of such Issuer
Party, (y) resolutions authorizing the issuance of the Convertible Notes or the
Guarantees, as applicable, and (z) such other information as the Put Option
parties may reasonably require;

      
        
           

        

        
          -13-

          
            

          

        

        
           

        

      

      (r)           on
the Closing Date, the Put Option Parties shall have received (i) the Security
Documents to the extent and in the manner provided for in the Convertible Notes
Indenture and the Security Documents and as described in the Offering
Memorandum, in each case executed by the parties thereto, (ii) evidence
that all of the liens on the Collateral other than those liens permitted by the
Convertible Notes Indenture and the applicable Security Documents have been
released, terminated or arrangements to further release or terminate have been
made (which with respect to any mortgages currently encumbering any of the
Collateral, shall be deemed satisfied so long as the title insurer is
irrevocably committed to issue lender’s title insurance policies insuring that
the holders of the Securities have a first priority lien on the real estate
Collateral (subject to permitted liens as described in the Convertible Notes
Indenture and Security Documents)) and (iii) all documents necessary to
establish that the Collateral Agent for the benefit of the holders of the
Securities will have a perfected first priority security interest or lien on the
Collateral (subject to permitted liens as described in the Convertible Notes
Indenture and the Security Documents), as contemplated herein and in the
Offering Memorandum, shall have been delivered to the Collateral
Agent;

       

      (s)           on
the Closing Date, the Put Option Parties shall have received the Convertible
Notes executed by the Company and the Guarantees executed by the Guarantors, and
the Securities shall be in full force and effect at all times from and after the
Closing Date; and

       

      (t)           all
governmental, shareholder or third party consents, if any, necessary for the
consummation of the Transaction having been obtained.

       

      7.           EFFECTIVENESS
AND TERMINATION.

       

      (a)           This
Agreement shall become effective only upon the Company’s acceptance of the
applicable Subscription Certificates following the Subscription Offer Expiration
Time (such time, the “Subscription Acceptance
Time”) and in accordance with the terms and conditions set forth in the
Offering Memorandum.  Prior to the Company’s acceptance of a
Subscription Certificate with respect to such Buyer, other than with respect to
a Put Option Party, (i) this Agreement shall not constitute a binding obligation
of the Company, the Guarantors or such Buyer and (ii) none of the Company, the
Guarantors or such Buyer shall have any rights or obligations under this
Agreement.  Each Buyer agrees that upon the Company’s acceptance of
such Buyer’s Subscription Certificate following the Subscription Offer
Termination Date, such Buyer (including the Put Option Parties) shall
automatically become a party to this Agreement and thereafter be bound by the
terms and conditions of hereof.  The Company’s acceptance of a
Subscription Certificate shall be evidenced solely by the Company providing the
Subscription Agent notice that such Subscription Certificate has been accepted,
and the Company shall not be deemed to have accepted a Subscription Certificate
in absence of such notice.

       

      (b)           This
Agreement shall terminate:

       

      (i)           upon
the mutual written agreement of the Company and the Buyers who have collectively
subscribed to purchase a majority of the aggregate principal amount of
Convertible Notes offered pursuant to the Subscription Offer (the “Requisite Buyers”),
provided that
such Requisite Buyers shall include each of the Put Option
Parties;

      
        
           

        

        
          -14-

          
            

          

        

        
           

        

      

      (ii)          upon
written notice by the Company to the Buyers after October 1, 2010 (the “Drop Dead Date”);
provided that
the Company shall not be entitled to terminate this Agreement pursuant to this
Section
7(b)(iii) if it is then in material breach of its obligations under this
Agreement;

       

      (iii)         upon
written notice by the Put Option Parties after the Drop Dead Date; provided that
the Put Option Parties shall not be entitled to terminate this Agreement
pursuant to this Section 7(b)(iv) if
the Put Option Parties are then in material breach of their obligations under
this Agreement;

       

      (iv)         10
days after the Requisite Buyers have delivered written notice to the Company
that the Company has materially breached this Agreement, if such breach remains
uncured at the conclusion of such 10-day period; provided that in no
event shall this cure period limit the right of the Requisite Buyers to
terminate after the Drop Dead Date; provided further that such
Requisite Buyers shall include each of the Put Option Parties; or

       

      (v)          10
days after the Company has delivered notice to the Buyers that the Buyers have
materially breached this Agreement, if such breach remains uncured at the
conclusion of such 10-day period; provided that in no
event shall this cure period limit the right of the Company to terminate after
the Drop Dead Date.

       

      (c)           Except
to the extent specified in this Agreement, upon termination of this Agreement in
accordance with its terms, all rights and obligations of the Parties shall
terminate automatically and shall become null and void and no Party shall have
any liability to any other Party following termination of this Agreement; provided that this
Section 7(c)
shall in no way limit any liabilities or obligations any Party may have to
another Party pursuant to the Support Agreement or any other agreement or
instrument to which such Party is a party or is otherwise bound); provided, further, that no
termination of this Agreement shall relieve any Party in breach of its
obligations under this Agreement for damages arising from the breach of this
Agreement.

       

      (d)           Notwithstanding
anything to the contrary herein, the provisions of Section 8, Section 9 and
Section 10
shall survive termination.

       

      8.           EXPENSES.

       

      Whether
or not the transactions contemplated in this Agreement are consummated or this
Agreement is terminated, the Company agrees to pay or cause to be paid all
expenses incident to the performance of its respective obligations under this
Agreement, including: (i) the fees, disbursements and expenses of the Company’s
counsel and accountants; (ii) all costs and expenses incurred by the Company or
its subsidiaries in connection with the issuance and delivery of the Securities,
including any necessary issue, transfer or other stamp taxes payable thereon;
(iii) the costs and charges of any transfer agent, registrar or depositary; (iv)
the fees and expenses of the Trustee, including the reasonable fees and
disbursements of counsel for the Trustee in connection with the Convertible
Notes Indenture and the Securities, (v) all fees and expenses (including
reasonable fees and expenses of counsel) of the Company in connection with
approval of the Convertible Notes by DTC for “book entry” transfer and (vi) all
other costs and expenses incurred by the Company in connection with the
performance of the its obligations hereunder for which provision is not
otherwise made in this Section 8. It is
understood that, except as provided in Section 9, the
Company shall have no obligation under this Agreement to pay any of the Buyers’
costs and expenses, including fees and disbursements of their counsel, or any
issue, transfer or other stamp taxes payable on resale of any of the Securities
by the Buyers; provided, that the
Company shall be required to pay certain expenses and fees to the Put Option
Parties and their counsel pursuant to the Expense Agreement and the Purchaser
Letter.

      
        
           

        

        
          -15-

          
            

          

        

        
           

        

      

      9.           INDEMNIFICATION.

       

      (a)           The
Issuer Parties, jointly and severally, agree to indemnify and hold harmless the
Buyers, each of their affiliates and each of their and their affiliates’
respective officers, directors, partners, shareholders, trustees, controlling
persons, employees, agents, advisors, attorneys and representatives (each, an
“Indemnified
Party”) from and against any and all claims, damages, losses, liabilities
and related reasonable out-of-pocket costs and expenses (including, without
limitation, reasonable fees and disbursements of one counsel for the Indemnified
Parties, except to the extent an actual conflict exists among them) that may be
incurred by or asserted or awarded against any Indemnified Party, in each case
arising out of or in connection with or relating to the Transactions, this
Agreement or the transactions contemplated hereby, any use made or proposed to
be made with the proceeds of the Convertible Notes, or any claim, litigation,
investigation or proceeding relating to any of the foregoing, regardless of
whether any Indemnified Party is a party thereto, and shall reimburse (promptly
following written demand, including documentation reasonably supporting such
request) each Indemnified Party on demand for all reasonable legal and other
out-of-pocket expenses incurred by it in connection with investigating,
preparing to defend or defending, or providing evidence in or preparing to serve
or serving as witness with respect to, any lawsuit, investigation, claim or
other proceeding relating to any of the foregoing (including, without
limitation, in connection with the enforcement of the indemnification
obligations set forth herein), irrespective of whether the transactions
contemplated hereby are consummated, except to the extent such claim, damage,
loss, liability, or expense is (i) found in a final non-appealable judgment by a
court of competent jurisdiction to have resulted from the gross negligence or
willful misconduct of such Indemnified Party or any of its affiliates or its or
its affiliates’ respective officers, directors, partners, shareholders,
trustees, controlling persons, employees, agents, advisors, attorneys or
representatives or (ii) solely relating to or arising from a dispute between or
among the Indemnified Parties.

       

      (b)           If
any Indemnified Party shall receive an indemnification payment in respect of any
claim, damage, loss, liability or expense pursuant to Section 9 and such
claim, damage, loss, liability or expense is found by a final non-appealable
judgment by a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of such Indemnified Party or any of its
affiliates or its or its affiliates’ respective officers, directors, partners,
shareholders, trustees, controlling persons, employees, agents, advisors,
attorneys or representatives, then such Indemnified Party shall refund the
amount received by it in respect of such indemnification in excess of that
amount to which it is entitled under the terms of Section
9.  In no event, however, shall any Indemnified Party be liable
to the Issuer Parties or any of an Issuer Party’s affiliates on any theory of
liability for any special, indirect, consequential or punitive
damages.

      
        
           

        

        
          -16-

          
            

          

        

        
           

        

      

      (c)           The
Issuer Parties will not enter into any settlement of any lawsuit, claim or other
proceeding arising out of the Transactions without the consent of a majority of
the Buyers unless such settlement (i) includes an explicit and unconditional
release from the party bringing such lawsuit, claim or other proceeding of all
Indemnified Parties and (ii) does not include a statement as to or an admission
of fault, culpability or a failure to act by or on behalf of any Indemnified
Party.  No Indemnified Party shall be liable to the Issuer Parties or
any of their affiliates for any damages arising from the use by unauthorized
persons of any information made available to the Buyers by the Issuer Parties or
any of their representatives through electronic, telecommunications or other
information transmission systems that is intercepted by such
persons.

       

      (d)           Notwithstanding
the foregoing, no Issuer Party nor any of its affiliates shall have any
liability for any settlement of any lawsuit, claim or other proceeding arising
out of this Agreement or the transactions contemplated hereby if such settlement
is entered into without the prior written consent of such Issuer Party, not to
be unreasonably withheld.

       

      10.         MISCELLANEOUS.

       

      (a)           Governing Law; Jurisdiction;
Waiver of Jury Trial.

       

      (i)           This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York, without regard to internal conflicts of law principles
that may apply to this Agreement in any other jurisdiction.  Each of
the Parties hereby irrevocably and unconditionally submits to the nonexclusive
jurisdiction and venue of the Bankruptcy Court, and in the event that the
Bankruptcy Court does not have or declines to exercise jurisdiction or there is
a reason to believe that it would not have or would decline to exercise
jurisdiction, to the nonexclusive jurisdiction and venue of any New York State
court or Federal court of the United States of America located in New York City
in the Borough of Manhattan, but solely in any action or proceedings arising out
of or relating to this Agreement or the Transactions.  Each of the
Parties agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law.

       

      (ii)          Each
Party irrevocably waives, to the fullest extent permitted by applicable law, (A)
any right to trial by jury in any action, proceeding or counterclaim (whether
based on contract, tort or otherwise) arising out of or relating to this
Agreement or the Transactions and (B) any objection that it may now or hereafter
have to the laying of venue of any such action, proceeding or counterclaim in
the Bankruptcy Court or the state or federal courts located in New York City in
the Borough of Manhattan.

       

      (b)           Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed to be an original, but all of which together shall constitute one and the
same instrument.  This Agreement may be executed in facsimile form or
in portable document format (pdf).

      
        
           

        

        
          -17-

          
            

          

        

        
           

        

      

      (c)           Professional
Advice.  Each of the Parties has received independent legal and
professional advice from advisors of its choice with respect to the provisions
hereof and the advisability of entering into the agreements set forth
herein.  Prior to the execution hereof, each of the Parties and their
applicable advisors reviewed this Agreement and the Exhibits
hereto.

       

      (d)           Headings.  The
headings of this Agreement are for convenience of reference and shall not form
part of, or affect the interpretation of, this Agreement.

       

      (e)           Severability.  If
any provision of this Agreement is prohibited by law or otherwise determined to
be invalid or unenforceable by a court of competent jurisdiction, the provision
that would otherwise be prohibited, invalid or unenforceable shall be deemed
amended to apply to the broadest extent that it would be valid and enforceable,
and the invalidity or unenforceability of such provision shall not affect the
validity of the remaining provisions of this Agreement so long as this Agreement
as so modified continues to express, without material change, the original
intentions of the parties as to the subject matter hereof and the prohibited
nature, invalidity or unenforceability of the provision(s) in question does not
substantially impair the respective expectations or reciprocal obligations of
the parties or the practical realization of the benefits that would otherwise be
conferred upon the parties.  The parties will endeavor in good faith
negotiations to replace the prohibited, invalid or unenforceable provision(s)
with a valid provision(s), the effect of which comes as close as possible to
that of the prohibited, invalid or unenforceable provision(s).

       

      (f)           Entire Agreement;
Amendments.  This Agreement (including the recitals, annexes,
exhibits and schedules hereto), the other Transaction Documents, the Support
Agreement and the Expense Agreement supersede all other prior oral or written
agreements between the Buyers, the Company, their affiliates and persons or
entities acting on their behalf with respect to the matters discussed herein,
and this Agreement, the other Transaction Documents, the Support Agreement and
the instruments referenced herein and therein contain the entire understanding
of the parties with respect to the matters covered herein and therein and,
except as specifically set forth herein or therein, neither the Company nor any
Buyer makes any representation, warranty, covenant or undertaking with respect
to such matters.  No provision of this Agreement may be amended other
than by an instrument in writing signed by the Company and the holders of at
least a majority of the Aggregate Principal Amount, and any amendment to this
Agreement made in conformity with the provisions of this Section 10(f) shall
be binding on all Buyers and holders of Securities as applicable; provided, however, that any
amendment or modification to this Agreement which would (i) amend the Purchase
Price shall require the consent of each Buyer or (ii) materially and adversely
affect a Buyer in a manner disproportionate to the other Buyers shall require
the consent of such Buyer.  No provision hereof may be waived other
than by an instrument in writing signed by the party against whom enforcement is
sought.

       

      (g)           Notices.  Any
notices, consents, waivers or other communications required or permitted to be
given under the terms of this Agreement must be in writing and will be deemed to
have been delivered:  (i) upon receipt, when delivered personally;
(ii) upon receipt, when sent by facsimile (provided confirmation of transmission
is mechanically or electronically generated and kept on file by the sending
party); or (iii) one business day after deposit with an overnight courier
service, in each case properly addressed to the party to receive the
same.  The addresses and facsimile numbers for such communications
shall be:

      
        
           

        

        
          -18-

          
            

          

        

        
           

        

      

      If to the Company or to a
Guarantor, to:

       

      U.S.
Concrete, Inc.

      2925
Briarpark, Suite 1050

      Houston,
Texas  77042

      
        	
                 
      

              	
                Telephone:

              	
                (713)
      499-6200

              

      

      
        	
                 
      

              	
                Facsimile:

              	
                (713)
      499-6201

              

      

      
        	
                 
      

              	
                Attention:

              	
                General
      Counsel

              

      

       

      With
a copy to (for information purposes only):

       

      Kirkland &
Ellis LLP

      300 North
LaSalle Street

      Chicago,
Illinois  60654

      
        	
                 
      

              	
                Telephone:

              	
                (312)
      862-2163

              

      

      
        	
                 
      

              	
                Facsimile:

              	
                (312)
      862-2200

              

      

      
        	
                 
      

              	
                Attention:

              	
                Carol
      Anne Huff, Esq.

              

      

       

      If to a
Buyer:

       

      To its
address and facsimile number set forth on the Schedule of Buyers, with copies to
such Buyer’s representatives as set forth in Column (5) of the Schedule of
Buyers.

       

      In
each case, with a copy to (for informational purposes only):

       

      Paul,
Weiss, Rifkind, Wharton & Garrison LLP

      1285
Avenue of the Americas

      New York,
New York 10019

      
        	
                 
      

              	
                Telephone:

              	
                (212)
      373-3085

              

      

      
        	
                 
      

              	
                Facsimile:

              	
                (212)
      757-3990

              

      

      
        	
                 
      

              	
                Attention:

              	
                Tracey
      Zaccone, Esq.

              

      

       

      or to
such other address, facsimile number and/or email address to the attention of
such other person or entity as the recipient party has specified by written
notice given to each other party five (5) days prior to the effectiveness of
such change.  Written confirmation of receipt (A) given by the
recipient of such notice, consent, waiver or other communication, (B)
mechanically or electronically generated by the sender’s facsimile machine
containing the time, date, recipient facsimile number and an image of the first
page of such transmission or (C) provided by an overnight courier service shall
be rebuttable evidence of personal service, receipt by facsimile or receipt from
an overnight courier service in accordance with clause (i), (ii) or (iii) above,
respectively.

      
        
           

        

        
          -19-

          
            

          

        

        
           

        

      

      (h)           Successors and
Assigns.  This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and assigns, including
any purchasers of the Securities pursuant to this Agreement.  The
Company shall not assign this Agreement or any rights or obligations hereunder
without the prior written consent of the holders of at least a majority of the
Aggregate Principal Amount.  A Buyer may assign some or all of its
rights hereunder to an affiliate of such Buyer with the prior written consent of
the Company or as otherwise provided in the Support Agreement, in which event
such assignee shall be deemed to be a Buyer hereunder with respect to such
assigned rights.

       

      (i) 
          No Third Party
Beneficiaries.  This Agreement is intended for the benefit of
the parties hereto and their respective permitted successors and assigns, and is
not for the benefit of, nor may any provision hereof be enforced by, any other
person or entity other than the Indemnified Parties.

       

      (j)   
        Further
Assurances.  The Parties shall do and perform or cause to be
done and performed all such further acts and things and shall execute and
deliver such other agreements, certificates, instruments and documents as any
other party hereto may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
Transactions in accordance with the terms and conditions hereof.

       

      (k)           No Strict
Construction.  The language used in this Agreement will be
deemed to be the language chosen by the parties to express their mutual intent,
and no rules of strict construction will be applied against any
party.

       

      (l)           Remedies.  Each
Buyer and each holder of the Securities shall have all rights and remedies set
forth in the Transaction Documents and all rights and remedies which such
holders have been granted at any time under any other agreement or contract and
all of the rights which such holders have under any law.  Any person
or entity having any rights under any provision of this Agreement shall be
entitled to enforce such rights specifically (without posting a bond or other
security), to recover damages by reason of any breach of any provision of this
Agreement and to exercise all other rights granted by
law.  Furthermore, each Issuer Party recognizes that in the event that
it fails to perform, observe or discharge any or all of its obligations under
the Transaction Documents, any remedy at law may prove to be inadequate relief
to the Buyers.  Each Issuer Party therefore agrees that the Buyers
shall be entitled to temporary and permanent injunctive relief in any such case,
including specific performance, without the necessity of proving actual damages
and without posting a bond or other security, and that the Issuer Parties shall
pay or reimburse the Buyers for all costs and expenses, including reasonable
attorneys’ fees, incurred by the Buyers (or their agents or representatives) in
connection therewith.

       

      (m)          Several, Not Joint,
Obligations. The agreements, representations, liabilities and obligations
of the parties under this Agreement are, in all respects, several and not
joint.

       

      (n
)         Time of
Essence.  Time is of the essence with respect to all provisions
of this Agreement.

       

      *  *  *  *  *  *

      
        
           

        

        
          -20-

          
            

          

        

        
           

        

      

      IN WITNESS WHEREOF, the
Company and each Guarantor has caused its respective signature page to this Note
Purchase Agreement to be duly executed as of the date first written
above.

       

      
        
          
            	 
      	
                    COMPANY:

                  
	 	 
	 
      	
                    U.S.
      CONCRETE, INC.

                  
	 
      	 
      
	 
      	
                    By:

                  	 
      
	 
      	 
      	
                    Name:

                  
	 
      	 
      	
                    Title:

                  

          

        

      

       

      Signature
Page to Note Purchase Agreement

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        
          
            
              
                	 
      	
                        GUARANTORS:

                      
	 
      	 
      
	 
      	
                        ALBERTA
      INVESTMENTS, INC.

                      
	 
      	
                        ALLIANCE
      HAULERS, INC.

                      
	 
      	
                        AMERICAN
      CONCRETE PRODUCTS, INC.

                      
	 
      	
                        ATLAS
      REDI-MIX, LLC

                      
	 
      	
                        ATLAS-TUCK
      CONCRETE, INC.

                      
	 
      	
                        BEALL
      CONCRETE ENTERPRISES, LLC

                      
	 
      	
                        BEALL
      INDUSTRIES, INC.

                      
	 
      	
                        BEALL
      MANAGEMENT, INC.

                      
	 
      	
                        BUILDERS’
      REDI-MIX, LLC

                      
	 
      	
                        BWB,
      INC. OF MICHIGAN

                      
	 
      	
                        CENTRAL
      CONCRETE SUPPLY CO., INC.

                      
	 
      	
                        CENTRAL
      PRECAST CONCRETE, INC.

                      
	 
      	
                        HAMBURG
      QUARRY LIMITED LIABILITY

                      
	 
      	
                        COMPANY

                      
	 
      	
                        INGRAM
      CONCRETE, LLC

                      
	 
      	
                        MG,
      LLC

                      
	 
      	
                        REDI-MIX
      CONCRETE, L.P.

                      
	 
      	
                        REDI-MIX
      GP, LLC

                      
	 
      	
                        REDI-MIX,
      LLC

                      
	 
      	
                        SAN
      DIEGO PRECAST CONCRETE, INC.

                      
	 
      	
                        SIERRA
      PRECAST, INC.

                      
	 
      	
                        SMITH
      PRE-CAST, INC.

                      
	 
      	
                        SUPERIOR
      CONCRETE MATERIALS, INC.

                      
	 
      	
                        U.S.
      CONCRETE ON-SITE, INC.

                      
	 
      	
                        USC
      MANAGEMENT CO., LLC

                      
	 
      	
                        USC
      PAYROLL, INC.

                      
	 
      	
                        USC
      TECHNOLOGIES, INC.

                      
	 
      	 
      
	 
      	
                        By:

                      	 
      
	 
      	 
      	
                        Name:

                      
	 
      	 
      	
                        Title:

                      
	 
      	 
      
	 
      	
                        BRECKENRIDGE
      READY MIX, INC.

                      
	 
      	 
      
	 
      	
                        By:

                      	 
      
	 
      	 
      	
                        Name:

                      
	 
      	 
      	
                        Title:

                      

              

            

          

        

      

      

      Signature
Page to Note Purchase Agreement

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        
          
            
              
                
                  
                    	 
      	
                            KURTZ
      GRAVEL COMPANY

                          
	 
      	
                            SUPERIOR
      HOLDINGS, INC.

                          
	 
      	
                            TITAN
      CONCRETE INDUSTRIES, INC.

                          
	 
      	 
      
	 
      	
                            By:

                          	 
      
	 
      	 
      	
                            Name:

                          
	 
      	 
      	
                            Title:

                          
	 
      	 
      
	 
      	
                            RIVERSIDE
      MATERIALS, LLC

                          
	 
      	 
      
	 
      	
                            By:

                          	 
      
	 
      	 
      	
                            Name:

                          
	 
      	 
      	
                            Title:

                          
	 
      	 
      
	 
      	
                            EASTERN
      CONCRETE MATERIALS, INC.

                          
	 
      	 
      
	 
      	
                            By:

                          	 
      
	 
      	 
      	
                            Name:

                          
	 
      	 
      	
                            Title:

                          
	 
      	 
      
	 
      	
                            LOCAL
      CONCRETE SUPPLY & EQUIPMENT, LLC

                          
	 
      	
                            MASTER
      MIX CONCRETE, LLC

                          
	 
      	
                            MASTER
      MIX, LLC

                          
	 
      	
                            NYC
      CONCRETE MATERIALS, LLC

                          
	 
      	
                            PEBBLE
      LANE ASSOCIATES, LLC

                          
	 
      	 
      
	 
      	
                            By:

                          	 
      
	 
      	 
      	
                            Name:

                          
	 
      	 
      	
                            Title:

                          
	 
      	 
      
	 
      	
                            USC
      ATLANTIC, INC.

                          
	 
      	 
      
	 
      	
                            By:

                          	 
      
	 
      	 
      	
                            Name:

                          
	 
      	 
      	
                            Title:

                          

                  

                

              

            

          

        

      

      

      Signature
Page to Note Purchase Agreement

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        
          
            
              
                	 
      	
                        USC
      MICHIGAN, INC.

                      
	 
      	 
      
	 
      	
                        By:

                      	 
      
	 
      	 
      	
                        Name:

                      
	 
      	 
      	
                        Title:

                      
	 
      	 
      
	 
      	
                        CONCRETE
      XXXIII ACQUISITION, INC.

                      
	 
      	
                        CONCRETE
      XXXIV ACQUISITION, INC.

                      
	 
      	
                        CONCRETE
      XXXV ACQUISITION, INC.

                      
	 
      	
                        CONCRETE
      XXXVI ACQUISITION, INC.

                      
	 
      	 
      
	 
      	
                        By:

                      	 
      
	 
      	 
      	
                        Name:

                      
	 
      	 
      	
                        Title:

                      
	 
      	 
      
	 
      	
                        CONCRETE
      ACQUISITION III, LLC

                      
	 
      	
                        CONCRETE
      ACQUISITION IV, LLC

                      
	 
      	
                        CONCRETE
      ACQUISITION V, LLC

                      
	 
      	
                        CONCRETE
      ACQUISITION VI, LLC

                      
	 
      	 
      
	 
      	
                        By:

                      	 
      
	 
      	 
      	
                        Name:

                      
	 
      	 
      	
                        Title:

                      

              

            

          

        

      

      

      Signature
Page to Note Purchase Agreement

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Annex
I

      

      SCHEDULE OF SUBSCRIPTION
PARTIES

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Annex
II

      SCHEDULE OF PUT OPTION
PARTIES

      

      The
Monarch Funds

      

      Monarch
Capital Master Partners LP

      

      Monarch
Cayman Fund Ltd.

      

      Monarch
Debt Recovery Master Fund Ltd.

      

      Monarch
Opportunities Master Fund Ltd.

      

      Oakford
MF Limited

      

      The
Whitebox Funds

      

      Whitebox
Convertible Arbitrage Partners, LP

      

      Whitebox
Combined Partners, LP

      

      Whitebox
Hedged High Yield Partners, LP

      

      The
York Funds

      

      York
Credit Opportunities Master Fund, L.P.

      

      York
Credit Opportunities Fund, L.P.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
A

       

      FORM
OF SUBSCRIPTION CERTIFICATE

      

      [Attached]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
B

      

      FORM
OF REGISTRATION RIGHTS AGREEMENT

      

      [Attached]

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
C

     

    Form of
Indenture

     

    
       

      
        
          	
                    

                

        

      

       

      U.S.
CONCRETE, INC.

      as
Issuer,

       

      the
GUARANTORS named herein,

      as
Guarantors,

       

      and

       

      U.S. BANK
NATIONAL ASSOCIATION,

      as
Trustee and Noteholder Collateral Agent

       

        
          

        

         

      

      INDENTURE

       

      
        

      

      Dated as
of
[                ],
2010 

        

      

      

      9.5%
Convertible Secured Notes due 2015

       

      Reference
is made to the Intercreditor Agreement dated as of
[              ],
2010, among JPMorgan Chase Bank, N.A. as Bank Collateral Agent, U.S. Bank
National Association, as Trustee and Noteholder Collateral Agent, U.S. Concrete,
Inc. and each Guarantor (the “Intercreditor
Agreement”).  Notwithstanding anything to the contrary contained
herein, each Holder, by its acceptance of a Note, (a) consents to the
subordination of Liens provided for in the Intercreditor Agreement,
(b) agrees that it will be bound by and will take no actions contrary to
the provisions of the Intercreditor Agreement, (c) authorizes and instructs
the Trustee and Noteholder Collateral Agent to enter into the Intercreditor
Agreement as Trustee and Noteholder Collateral Agent and on behalf of such
Holder and (d) agrees that this Indenture and the other Note Documents are
subject to the terms, conditions and provisions of the Intercreditor
Agreement.  The foregoing provisions are intended as an inducement to
the lenders under the Credit Agreement to extend credit and such lenders are
intended third party beneficiaries of such provisions and the provisions of the
Intercreditor Agreement.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      CROSS-REFERENCE
TABLE

       

      
        
          
            
              
                	
                        Trust Indenture Act

                      	 	
                        Indenture

                      
	
                        Section

                      	 	
                        Section

                      
	 
      	 
      	 	 
      
	
                        310

                      	
                        (a)(1)

                      	 	
                        9.10

                      
	 
      	
                        (a)(2)

                      	 	
                        9.10

                      
	 
      	
                        (a)(3)

                      	 	
                        N.A.

                      
	 
      	
                        (a)(4)

                      	 	
                        N.A.

                      
	 
      	
                        (a)(5)

                      	 	
                        9.08;
      9.10

                      
	 
      	
                        (b)

                      	 	
                        9.08;
      9.10; 14.02

                      
	 
      	
                        (c)

                      	 	
                        N.A.

                      
	
                        311

                      	
                        (a)

                      	 	
                        9.11

                      
	 
      	
                        (b)

                      	 	
                        9.11

                      
	 
      	
                        (c)

                      	 	
                        N.A.

                      
	
                        312

                      	
                        (a)

                      	 	
                        2.05

                      
	 
      	
                        (b)

                      	 	
                        14.03

                      
	 
      	
                        (c)

                      	 	
                        14.03

                      
	
                        313

                      	
                        (a)

                      	 	
                        9.06

                      
	 
      	
                        (b)(1)

                      	 	
                        9.06;
      12.02

                      
	 
      	
                        (b)(2)

                      	 	
                        9.06;
      12.02

                      
	 
      	
                        (c)

                      	 	
                        9.06;
      14.02

                      
	 
      	
                        (d)

                      	 	
                        9.06

                      
	
                        314

                      	
                        (a)

                      	 	
                        6.06;
      6.18; 14.02

                      
	 
      	
                        (b)

                      	 	
                        N.A.

                      
	 
      	
                        (c)(1)

                      	 	
                        9.02;
      14.04; 14.05

                      
	 
      	
                        (c)(2)

                      	 	
                        9.02;
      14.04; 14.05

                      
	 
      	
                        (c)(3)

                      	 	
                        N.A.

                      
	 
      	
                        (d)

                      	 	
                        12.02;
      12.03; 12.05

                      
	 
      	
                        (e)

                      	 	
                        N.A.

                      
	 
      	
                        (f)

                      	 	
                        N.A.

                      
	
                        315

                      	
                        (a)

                      	 	
                        9.01(b);
      9.02(a)

                      
	 
      	
                        (b)

                      	 	
                        9.05;
      14.02

                      
	 
      	
                        (c)

                      	 	
                        9.01

                      
	 
      	
                        (d)

                      	 	
                        8.05;
      9.01(c)

                      
	 
      	
                        (e)

                      	 	
                        8.11

                      
	
                        316

                      	
                        (a)(last
      sentence)

                      	 	
                        2.09

                      
	 
      	
                        (a)(1)(A)

                      	 	
                        8.05

                      
	 
      	
                        (a)(1)(B)

                      	 	
                        8.04

                      
	 
      	
                        (a)(2)

                      	 	
                        11.02

                      
	 
      	
                        (b)

                      	 	
                        8.07

                      
	 
      	
                        (c)

                      	 	
                        11.05

                      
	
                        317

                      	
                        (a)(1)

                      	 	
                        8.08

                      
	 
      	
                        (a)(2)

                      	 	
                        8.09

                      
	 
      	
                        (b)

                      	 	
                        2.04

                      
	
                        318

                      	
                        (a)

                      	 	
                        14.01

                      
	 
      	
                        (c)

                      	 	
                        14.01

                      

              

            

          

        

      

       

      
        
          

        

      

      N.A.
means Not Applicable

       

      
        Note:    
This Cross-Reference Table shall not, for any purpose, be deemed to be a part of
this Indenture.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      TABLE OF
CONTENTS

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        	 
      	 	 
      	
                                                Page

                                              
	 	 
	
                                                ARTICLE
      ONE DEFINITIONS AND INCORPORATION BY REFERENCE

                                              	
                                                1

                                              
	
                                                SECTION
      1.01.

                                              	 	
                                                Definitions

                                              	
                                                1

                                              
	
                                                SECTION
      1.02.

                                              	 	
                                                Other
      Definitions

                                              	
                                                37

                                              
	
                                                SECTION
      1.03.

                                              	 	
                                                Incorporation
      by Reference of Trust Indenture Act

                                              	
                                                39

                                              
	
                                                SECTION
      1.04.

                                              	 	
                                                Rules
      of Construction

                                              	
                                                39

                                              
	 	 
	
                                                ARTICLE
      TWO THE NOTES

                                              	
                                                40

                                              
	
                                                SECTION
      2.01.

                                              	 	
                                                Form
      and Dating

                                              	
                                                40

                                              
	
                                                SECTION
      2.02.

                                              	 	
                                                Execution,
      Authentication and Denomination

                                              	
                                                41

                                              
	
                                                SECTION
      2.03.

                                              	 	
                                                Registrar
      and Paying Agent

                                              	
                                                42

                                              
	
                                                SECTION
      2.04.

                                              	 	
                                                Paying
      Agent to Hold Assets in Trust

                                              	
                                                43

                                              
	
                                                SECTION
      2.05.

                                              	 	
                                                Holder
      Lists

                                              	
                                                43

                                              
	
                                                SECTION
      2.06.

                                              	 	
                                                Transfer
      and Exchange

                                              	
                                                43

                                              
	
                                                SECTION
      2.07.

                                              	 	
                                                Replacement
      Notes

                                              	
                                                44

                                              
	
                                                SECTION
      2.08.

                                              	 	
                                                Outstanding
      Notes

                                              	
                                                44

                                              
	
                                                SECTION
      2.09.

                                              	 	
                                                Treasury
      Notes

                                              	
                                                45

                                              
	
                                                SECTION
      2.10.

                                              	 	
                                                Temporary
      Notes

                                              	
                                                45

                                              
	
                                                SECTION
      2.11.

                                              	 	
                                                Cancellation

                                              	
                                                45

                                              
	
                                                SECTION
      2.12.

                                              	 	
                                                Defaulted
      Interest

                                              	
                                                45

                                              
	
                                                SECTION
      2.13.

                                              	 	
                                                Cusip
      Numbers

                                              	
                                                46

                                              
	
                                                SECTION
      2.14.

                                              	 	
                                                Deposit
      of Moneys

                                              	
                                                46

                                              
	
                                                SECTION
      2.15.

                                              	 	
                                                Book-Entry
      Provisions for Global Notes

                                              	
                                                46

                                              
	
                                                SECTION
      2.16.

                                              	 	
                                                Special
      Transfer and Exchange Provisions

                                              	
                                                47

                                              
	 	 
	
                                                ARTICLE
      THREE PURCHASE AT OPTION OF HOLDERS UPON  A FUNDAMENTAL CHANGE
      OF

                                              	 
	 	 	CONTROL	52
	
                                                SECTION
      3.01.

                                              	 	
                                                Purchase
      at the Option of Holders upon a Fundamental Change of
    Control

                                              	
                                                52

                                              
	
                                                SECTION
      3.02.

                                              	 	
                                                Fundamental
      Change of Control Issuer Notice

                                              	
                                                54

                                              
	
                                                SECTION
      3.03.

                                              	 	
                                                Effect
      of Fundamental Change of Control Purchase Notice;
    Withdrawal

                                              	
                                                56

                                              
	
                                                SECTION
      3.04.

                                              	 	
                                                Deposit
      of Fundamental Change of Control Purchase Price

                                              	
                                                57

                                              
	
                                                SECTION
      3.05.

                                              	 	
                                                Notes
      Purchased in Whole or in Part; Repayment to the Issuer

                                              	
                                                57

                                              
	 	 
	
                                                ARTICLE
      FOUR REDEMPTION

                                              	
                                                58

                                              
	
                                                SECTION
      4.01.

                                              	 	
                                                Redemption
      at the Option of the Issuer

                                              	
                                                58

                                              
	
                                                SECTION
      4.02.

                                              	 	
                                                Payment
      of Cash Conversion Amount in Shares of Common Stock

                                              	
                                                60

                                              
	
                                                SECTION
      4.03.

                                              	 	
                                                No
      other Redemption Rights

                                              	
                                                60

                                              
	 	 
	
                                                ARTICLE
      FIVE CONVERSION

                                              	
                                                60

                                              
	
                                                SECTION
      5.01.

                                              	 	
                                                Right
      to Convert

                                              	
                                                60

                                              
	
                                                SECTION
      5.02.

                                              	 	
                                                Conversion
      Procedure

                                              	
                                                60

                                              

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      
        
           

        

        
          -ii-

          
            

          

        

        
           

        

      

      

      
        
          
            
              
                
                  
                    
                      	
                              SECTION
      5.03.

                            	 	
                              Settlement
      upon Conversion

                            	
                              62

                            
	
                              SECTION
      5.04.

                            	 	
                              Adjustment
      of Conversion Rate

                            	
                              63

                            
	
                              SECTION
      5.05.

                            	 	
                              Effect
      of Reclassification, Consolidation, Merger or Sale

                            	
                              73

                            
	
                              SECTION
      5.06.

                            	 	
                              Adjustments
      of Prices

                            	
                              74

                            
	
                              SECTION
      5.07.

                            	 	
                              Adjustment
      Upon Fundamental Change of Control

                            	
                              74

                            
	
                              SECTION
      5.08.

                            	 	
                              Conversion
      Event; Termination of Conversion Rights

                            	
                              77

                            
	
                              SECTION
      5.09.

                            	 	
                              Taxes
      on Shares Issued

                            	
                              82

                            
	
                              SECTION
      5.10.

                            	 	
                              Reservation
      of Shares; Shares to be Fully Paid; Compliance with Governmental
      Requirements

                            	
                              82

                            
	
                              SECTION
      5.11.

                            	 	
                              Responsibility
      of Trustee

                            	
                              83

                            
	
                              SECTION
      5.12.

                            	 	
                              Notice
      to Holders Prior to Certain Actions

                            	
                              84

                            
	
                              SECTION
      5.13.

                            	 	
                              Conversion
      Cap

                            	
                              85

                            
	
                              SECTION
      5.14.

                            	 	
                              General
      Provisions Applicable to Conversion

                            	
                              85

                            
	 	 
	
                              ARTICLE
      SIX COVENANTS

                            	
                              86

                            
	
                              SECTION
      6.01.

                            	 	
                              Payment
      of Notes

                            	
                              86

                            
	
                              SECTION
      6.02.

                            	 	
                              Maintenance
      of Office or Agency

                            	
                              86

                            
	
                              SECTION
      6.03.

                            	 	
                              Corporate
      Existence

                            	
                              86

                            
	
                              SECTION
      6.04.

                            	 	
                              Payment
      of Taxes

                            	
                              87

                            
	
                              SECTION
      6.05.

                            	 	
                              Maintenance
      of Properties

                            	
                              87

                            
	
                              SECTION
      6.06.

                            	 	
                              Compliance
      Certificate; Notice of Default

                            	
                              87

                            
	
                              SECTION
      6.07.

                            	 	
                              Waiver
      of Stay, Extension or Usury Laws

                            	
                              88

                            
	
                              SECTION
      6.08.

                            	 	
                              Limitations
      on Additional Indebtedness

                            	
                              88

                            
	
                              SECTION
      6.09.

                            	 	
                              Limitations
      on Restricted Payments

                            	
                              92

                            
	
                              SECTION
      6.10.

                            	 	
                              Limitations
      on Liens

                            	
                              95

                            
	
                              SECTION
      6.11.

                            	 	
                              Limitations
      on Asset Sales

                            	
                              95

                            
	
                              SECTION
      6.12.

                            	 	
                              Limitations
      on Transactions with Affiliates

                            	
                              99

                            
	
                              SECTION
      6.13.

                            	 	
                              Limitations
      on Dividend and Other Restrictions Affecting Restricted
      Subsidiaries

                            	
                              101

                            
	
                              SECTION
      6.14.

                            	 	
                              Additional
      Note Guarantees

                            	
                              103

                            
	
                              SECTION
      6.15.

                            	 	
                              Further
      Assurances

                            	
                              104

                            
	
                              SECTION
      6.16.

                            	 	
                              Reports
      to Holders

                            	
                              105

                            
	
                              SECTION
      6.17.

                            	 	
                              Limitations
      on Designation of Unrestricted Subsidiaries

                            	
                              106

                            
	
                              SECTION
      6.18.

                            	 	
                              Limitation
      on the Issuance or Sale of Equity Interests of Restricted
      Subsidiaries

                            	
                              107

                            
	
                              SECTION
      6.19.

                            	 	
                              Information
      Regarding Collateral

                            	
                              107

                            
	
                              SECTION
      6.20.

                            	 	
                              Impairment
      of Security Interest

                            	
                              107

                            
	
                              SECTION
      6.21.

                            	 	
                              Insurance

                            	
                              108

                            
	
                              SECTION
      6.22.

                            	 	
                              Consolidated
      Secured Debt Ratio

                            	
                              108

                            
	 	 
	
                              ARTICLE
      SEVEN SUCCESSOR CORPORATION

                            	
                              109

                            
	
                              SECTION
      7.01.

                            	 	
                              Mergers,
      Consolidations, Etc

                            	
                              109

                            
	 	 
	
                              ARTICLE
      EIGHT DEFAULT AND REMEDIES

                            	
                              111

                            
	
                              SECTION
      8.01.

                            	 	
                              Events
      of Default

                            	
                              111

                            
	
                              SECTION
      8.02.

                            	 	
                              Acceleration

                            	
                              113

                            
	
                              SECTION
      8.03.

                            	 	
                              Other
      Remedies

                            	
                              114

                            

                    

                  

                

              

            

          

        

      

      
        
           

        

        
          -iii-

          
            

          

        

        
           

        

      

      

      
        
          
            
              
                
                  
                    
                      
                        	
                                SECTION
      8.04.

                              	 	
                                Waiver
      of Past Defaults

                              	
                                114

                              
	
                                SECTION
      8.05.

                              	 	
                                Control
      by Majority

                              	
                                114

                              
	
                                SECTION
      8.06.

                              	 	
                                Limitation
      on Suits

                              	
                                115

                              
	
                                SECTION
      8.07.

                              	 	
                                Rights
      of Holders to Receive Payment

                              	
                                115

                              
	
                                SECTION
      8.08.

                              	 	
                                Collection
      Suit by Trustee

                              	
                                115

                              
	
                                SECTION
      8.09.

                              	 	
                                Trustee
      May File Proofs of Claim

                              	
                                116

                              
	
                                SECTION
      8.10.

                              	 	
                                Priorities

                              	
                                116

                              
	
                                SECTION
      8.11.

                              	 	
                                Undertaking
      for Costs

                              	
                                116

                              
	 	 
	
                                ARTICLE
      NINE TRUSTEE

                              	
                                117

                              
	
                                SECTION
      9.01.

                              	 	
                                Duties
      of Trustee

                              	
                                117

                              
	
                                SECTION
      9.02.

                              	 	
                                Rights
      of Trustee

                              	
                                118

                              
	
                                SECTION
      9.03.

                              	 	
                                Individual
      Rights of Trustee

                              	
                                119

                              
	
                                SECTION
      9.04.

                              	 	
                                Trustee’s
      Disclaimer

                              	
                                119

                              
	
                                SECTION
      9.05.

                              	 	
                                Notice
      of Default

                              	
                                120

                              
	
                                SECTION
      9.06.

                              	 	
                                Reports
      by Trustee to Holders

                              	
                                120

                              
	
                                SECTION
      9.07.

                              	 	
                                Compensation
      and Indemnity

                              	
                                120

                              
	
                                SECTION
      9.08.

                              	 	
                                Replacement
      of Trustee

                              	
                                121

                              
	
                                SECTION
      9.09.

                              	 	
                                Successor
      Trustee by Merger, Etc

                              	
                                122

                              
	
                                SECTION
      9.10.

                              	 	
                                Eligibility;
      Disqualification

                              	
                                122

                              
	
                                SECTION
      9.11.

                              	 	
                                Preferential
      Collection of Claims Against the Issuer

                              	
                                123

                              
	
                                SECTION
      9.12.

                              	 	
                                Notice
      of Payment of Additional Interest

                              	
                                123

                              
	 	 
	
                                ARTICLE
      TEN DISCHARGE OF INDENTURE; DEFEASANCE

                              	
                                123

                              
	
                                SECTION
      10.01.

                              	 	
                                Termination
      of the Issuer’s Obligations

                              	
                                123

                              
	
                                SECTION
      10.02.

                              	 	
                                Legal
      Defeasance and Covenant Defeasance

                              	
                                124

                              
	
                                SECTION
      10.03.

                              	 	
                                Conditions
      to Legal Defeasance or Covenant Defeasance

                              	
                                125

                              
	
                                SECTION
      10.04.

                              	 	
                                Application
      of Trust Money

                              	
                                127

                              
	
                                SECTION
      10.05.

                              	 	
                                Repayment
      to the Issuer

                              	
                                127

                              
	
                                SECTION
      10.06.

                              	 	
                                Reinstatement

                              	
                                127

                              
	 	 
	
                                ARTICLE
      ELEVEN AMENDMENTS, SUPPLEMENTS AND WAIVERS

                              	
                                128

                              
	
                                SECTION
      11.01.

                              	 	
                                Without
      Consent of Holders

                              	
                                128

                              
	
                                SECTION
      11.02.

                              	 	
                                With
      Consent of Holders

                              	
                                129

                              
	
                                SECTION
      11.03.

                              	 	
                                Compliance
      with the Trust Indenture Act

                              	
                                131

                              
	
                                SECTION
      11.04.

                              	 	
                                Revocation
      and Effect of Consents

                              	
                                131

                              
	
                                SECTION
      11.05.

                              	 	
                                Notation
      on or Exchange of Notes

                              	
                                131

                              
	
                                SECTION
      11.06.

                              	 	
                                Trustee
      to Sign Amendments, Etc.

                              	
                                132

                              
	 	 
	
                                ARTICLE
      TWELVE SECURITY DOCUMENTS

                              	
                                132

                              
	
                                SECTION
      12.01.

                              	 	
                                Collateral
      and Security Documents

                              	
                                132

                              
	
                                SECTION
      12.02.

                              	 	
                                Recordings
      and Opinions

                              	
                                133

                              
	
                                SECTION
      12.03.

                              	 	
                                Release
      of Collateral

                              	
                                134

                              
	
                                SECTION
      12.04.

                              	 	
                                Certificates
      of the Trustee

                              	
                                136

                              
	
                                SECTION
      12.05.

                              	 	
                                Suits
      to Protect the Collateral

                              	
                                136

                              
	
                                SECTION
      12.06.

                              	 	
                                Authorization
      of Receipt of Funds by the Trustee Under the Security
      Documents

                              	
                                136

                              

                      

                    

                  

                

              

            

          

        

      

      
        
           

        

        
          -iv-

          
            

          

        

        
           

        

      

      

      
        
          
            
              
                
                  
                    
                      	
                              SECTION
      12.07.

                            	 	
                              Purchaser
      Protected

                            	
                              137

                            
	
                              SECTION
      12.08.

                            	 	
                              Powers
      Exercisable by Receiver or Trustee

                            	
                              137

                            
	
                              SECTION
      12.09.

                            	 	
                              Release
      Upon Termination of the Issuer’s Obligations

                            	
                              137

                            
	
                              SECTION
      12.10.

                            	 	
                              Noteholder
      Collateral Agent

                            	
                              138

                            
	
                              SECTION
      12.11.

                            	 	
                              Compensation
      and Indemnity

                            	
                              142

                            
	
                              SECTION
      12.12.

                            	 	
                              Intercreditor
      Agreement, Collateral Agreement and Other Security
    Documents

                            	
                              142

                            
	 	 
	
                              ARTICLE
      THIRTEEN NOTE GUARANTEE

                            	
                              143

                            
	
                              SECTION
      13.01.

                            	 	
                              Unconditional
      Guarantee

                            	
                              143

                            
	
                              SECTION
      13.02.

                            	 	
                              Subordination

                            	
                              144

                            
	
                              SECTION
      13.03.

                            	 	
                              Limitation
      on Guarantor Liability

                            	
                              144

                            
	
                              SECTION
      13.04.

                            	 	
                              Execution
      and Delivery of Note Guarantee

                            	
                              144

                            
	
                              SECTION
      13.05.

                            	 	
                              Release
      of a Guarantor

                            	
                              145

                            
	
                              SECTION
      13.06.

                            	 	
                              Waiver
      of Subrogation

                            	
                              146

                            
	
                              SECTION
      13.07.

                            	 	
                              Immediate
      Payment

                            	
                              146

                            
	
                              SECTION
      13.08.

                            	 	
                              No
      Set-Off

                            	
                              147

                            
	
                              SECTION
      13.09.

                            	 	
                              Guarantee
      Obligations Absolute

                            	
                              147

                            
	
                              SECTION
      13.10.

                            	 	
                              Note
      Guarantee Obligations Continuing

                            	
                              147

                            
	
                              SECTION
      13.11.

                            	 	
                              Note
      Guarantee Obligations Not Reduced

                            	
                              147

                            
	
                              SECTION
      13.12.

                            	 	
                              Note
      Guarantee Obligations Reinstated

                            	
                              147

                            
	
                              SECTION
      13.13.

                            	 	
                              Note
      Guarantee Obligations Not Affected

                            	
                              148

                            
	
                              SECTION
      13.14.

                            	 	
                              Waiver

                            	
                              149

                            
	
                              SECTION
      13.15.

                            	 	
                              No
      Obligation to Take Action Against the Issuers

                            	
                              149

                            
	
                              SECTION
      13.16.

                            	 	
                              Dealing
      with the Issuer and Others

                            	
                              149

                            
	
                              SECTION
      13.17.

                            	 	
                              Default
      and Enforcement

                            	
                              150

                            
	
                              SECTION
      13.18.

                            	 	
                              Acknowledgment

                            	
                              150

                            
	
                              SECTION
      13.19.

                            	 	
                              Costs
      and Expenses

                            	
                              150

                            
	
                              SECTION
      13.20.

                            	 	
                              No
      Merger or Waiver; Cumulative Remedies

                            	
                              150

                            
	
                              SECTION
      13.21.

                            	 	
                              Survival
      of Note Guarantee Obligations

                            	
                              150

                            
	
                              SECTION
      13.22.

                            	 	
                              Note
      Guarantee in Addition to Other Guarantee Obligations

                            	
                              151

                            
	
                              SECTION
      13.23.

                            	 	
                              Severability

                            	
                              151

                            
	
                              SECTION
      13.24.

                            	 	
                              Successors
      and Assigns

                            	
                              151

                            
	 	 
	
                              ARTICLE
      FOURTEEN MISCELLANEOUS

                            	
                              151

                            
	
                              SECTION
      14.01.

                            	 	
                              Trust
      Indenture Act Controls

                            	
                              151

                            
	
                              SECTION
      14.02.

                            	 	
                              Notices

                            	
                              151

                            
	
                              SECTION
      14.03.

                            	 	
                              Communications
      by Holders with Other Holders

                            	
                              152

                            
	
                              SECTION
      14.04.

                            	 	
                              Certificate
      and Opinion as to Conditions Precedent

                            	
                              152

                            
	
                              SECTION
      14.05.

                            	 	
                              Statements
      Required in Certificate or Opinion

                            	
                              153

                            
	
                              SECTION
      14.06.

                            	 	
                              Rules
      by Paying Agent or Registrar

                            	
                              153

                            
	
                              SECTION
      14.07.

                            	 	
                              Legal
      Holidays

                            	
                              153

                            
	
                              SECTION
      14.08.

                            	 	
                              Governing
      Law

                            	
                              153

                            
	
                              SECTION
      14.09.

                            	 	
                              No
      Adverse Interpretation of Other Agreements

                            	
                              154

                            
	
                              SECTION
      14.10.

                            	 	
                              No
      Recourse Against Others

                            	
                              154

                            
	
                              SECTION
      14.11.

                            	 	
                              Successors

                            	
                              154

                            
	
                              SECTION
      14.12.

                            	 	
                              Duplicate
      Originals

                            	
                              154

                            

                    

                  

                

              

            

          

        

      

      
        
           

        

        
          -v-

          
            

          

        

        
           

        

      

      

      
        
          
            
              	
                      SECTION
      14.13.

                    	 	
                      Severability

                    	
                      154

                    
	
                      SECTION
      14.14.

                    	 	
                      Senior
      Indebtedness

                    	
                      154

                    
	
                      SECTION
      14.15.

                    	 	
                      Intercreditor
      Agreement Governs

                    	
                      154

                    
	
                      SECTION
      14.16.

                    	 	
                      Intercreditor
      Agreement, Collateral Agreement and Security Documents

                    	
                      155

                    
	
                      SECTION
      14.17.

                    	 	
                      Calculations

                    	
                      155

                    
	
                      SECTION
      14.18.

                    	 	
                      Waiver
      of Jury Trial

                    	
                      155

                    
	
                      SECTION
      14.19.

                    	 	
                      Force
      Majeure.

                    	
                      155

                    
	 
      	 	 
      	 
      
	
                      Signatures

                    	
                      S-1

                    

            

          

        

      

      

      
        
          	
                  Exhibit
      A

                	 	
                  -

                	
                  Form
      of Note

                
	
                  Exhibit
      B

                	 	
                  -

                	
                  Form
      of Notation of Subsidiary Guarantee

                
	
                  Exhibit
      C

                	 	
                  -

                	
                  Form
      of Legends

                
	
                  Exhibit
      D

                	 	
                  -

                	
                  Form
      of Certificate To Be Delivered in Connection with Transfers of Temporary
      Regulation S Global Note

                
	
                  Exhibit
      E

                	 	
                  -

                	
                  Form
      of Certificate To Be Delivered in Connection with Transfers to Non-QIB
      Accredited Investors

                
	
                  Exhibit
      F

                	 	
                  -

                	
                  Form
      of Certificate To Be Delivered in Connection with Transfers Pursuant to
      Regulation S

                
	
                  Exhibit
      G

                	 	
                  -

                	
                  Common
      Stock Legend

                
	
                  Exhibit
      H

                	 	
                  -

                	
                  Form
      of Conversion Event Notice

                
	
                  Exhibit
      I

                	 	
                  -

                	
                  Form
      of Fundamental Change of Control Purchase Notice

                
	
                  Exhibit
      J

                	 	
                  -

                	
                  Form
      of Election Notice

                
	
                  Schedule
      I

                	 	
                  -

                	
                  Reference
      Table for Calculation of Additional Shares

                
	
                  Schedule
      II

                	 	
                  -

                	
                  Net
      Book Values of Real
Properties

                

        

      

       

      
        	
                Note:

              	
                This
      Table of Contents shall not, for any purpose, be deemed to be part of this
      Indenture.

              

      

      
        
           

        

        
          -vi-

          
            

          

        

        
           

        

      

      INDENTURE
dated as of
[           ], 2010 among
U.S. Concrete, Inc., a Delaware corporation (the “Issuer”), and each of the
guarantors named herein and from time to time a party hereto (each, a “Guarantor” and together, the
“Guarantors”), and U.S.
Bank National Association, a national banking association, as Trustee (the
“Trustee”).

       

      The
Issuer has duly authorized the creation of an issue of 9.5% Convertible Secured
Notes due 2015 and, to provide therefor, the Issuer and the Guarantors have duly
authorized the execution and delivery of this Indenture.  All things
necessary to make the Notes, when duly issued and executed by the Issuer and
authenticated and delivered hereunder, the valid and binding obligations of the
Issuer and to make this Indenture a valid and binding agreement of the Issuer
and the Guarantors has been done.

       

      For and
in consideration of the premises and the purchase of the Notes by the Holders
thereof, the parties hereto covenant and agree, for the equal and proportionate
benefit of all Holders, as follows:

       

      ARTICLE ONE

       

      DEFINITIONS
AND INCORPORATION BY REFERENCE

       

      
        	
                SECTION 1.01.

              	
                Definitions.

              

      

       

      Set forth
below are certain defined terms used in this Indenture.

       

      “10-day VWAP” means the average
of the daily volume weighted average price of the Issuer’s Common Stock on the
national securities exchange or over-the-counter market (e.g., OTC Bulletin
Board or Pink OTC Markets Inc.) on which the Common Stock is then listed or
quoted for trading as reported by Bloomberg L.P. (based on the Trading Day from
9:30 a.m. (New York City time) to 4:02 p.m. (New York City
time)) for the relevant 10 consecutive Trading Days when such formula is
used.

       

      “144A Global Note” has the
meaning given to such term in Section 2.01.

       

      “ABL Collateral” means “ABL
Priority Collateral” as defined in the Intercreditor Agreement.

       

      “ABL Debt” means all
Indebtedness and letters of credit of the Issuer or any Subsidiary of the Issuer
outstanding under any ABL Facility and all other Obligations under any ABL
Facility (including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization of the Issuer or any Subsidiary of the Issuer,
regardless of whether or not a claim for post-filing interest is allowed in such
proceedings).

       

      “ABL Facility” means one or
more debt facilities (including the Credit Agreement), indentures or commercial
paper facilities or other agreements, in each case with banks or other lenders
or investors providing for credit loans, notes, receivables financing (including
through the sale of receivables to such lenders or to special purpose entities
formed to borrow from such lenders against such receivables) or letters of
credit, in each case, as amended, restated, amended and restated, modified,
supplemented, renewed, refunded, replaced, restructured or refinanced in whole
or in part from time to time (including any agreement extending the maturity
thereof or increasing the amount of available borrowings thereunder or adding
additional borrowers or guarantors thereunder), whether by the same or any other
agent, lender or group of lenders (or any affiliate of such agent, lender or
group of lenders).

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      “Acquired Indebtedness” means
(1) with respect to any Person that becomes a Restricted Subsidiary after
the Issue Date, Indebtedness of such Person and its Subsidiaries existing at the
time such Person becomes a Restricted Subsidiary whether or not incurred in
connection with, or in contemplation of, such Person becoming a Restricted
Subsidiary and (2) with respect to the Issuer or any Restricted Subsidiary,
any Indebtedness of a Person (other than the Issuer or a Restricted Subsidiary)
existing at the time such Person is merged with or into the Issuer or a
Restricted Subsidiary, or Indebtedness expressly assumed by the Issuer or any
Restricted Subsidiary in connection with the acquisition of an asset or assets
from another Person, whether or not such Indebtedness was incurred by such other
Person in connection with, or in contemplation of, such merger or
acquisition.

       

      “Additional Interest” has the
meaning set forth in the Registration Rights Agreement.

       

      “Additional Shares” has the
meaning specified in Section 5.07.

       

      “Affiliate” of any Person means
any other Person which directly or indirectly controls or is controlled by, or
is under direct or indirect common control with, the referent
Person.  For purposes of Section 6.12 only, Affiliates shall be
deemed to include, with respect to any Person, any other Person (1) which
beneficially owns 10% or more of any class of the Voting Stock of the referent
Person or (2) of which 10% or more of the Voting Stock is beneficially
owned by the referenced Person.  For purposes of this definition and
the definition of “Permitted Holder,” “control” of a Person shall
mean the power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise.

       

      “Agent” means any Registrar or
Paying Agent.

       

      “amend” means to amend,
supplement, restate, amend and restate, renew , replace or otherwise modify; and
“amendment” shall have a
correlative meaning.

       

      “asset” means any asset or
property.

       

      “Asset Acquisition”
means

       

      (1)           An
Investment by the Issuer or any Restricted Subsidiary of the Issuer in any other
Person if, as a result of such Investment, such Person shall become a Restricted
Subsidiary of the Issuer, or shall be merged with or into the Issuer or any
Restricted Subsidiary of the Issuer, or

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

       

      (2)           The
acquisition by the Issuer or any Restricted Subsidiary of the Issuer of all or
substantially all of the assets of any other Person or any division or line of
business of any other Person.

       

      “Asset Sale” means any sale,
issuance, conveyance, transfer, lease, assignment or other disposition by the
Issuer or any Restricted Subsidiary to any Person other than the Issuer or any
Restricted Subsidiary (including by means of a sale and leaseback transaction or
a merger or consolidation or sale of Equity Interests of any Restricted
Subsidiary (other than directors’ qualify shares)) (collectively, for purposes
of this definition, a “transfer”), in one transaction
or a series of related transactions, of any assets of the Issuer or any of its
Restricted Subsidiaries other than in the ordinary course of
business.  For purposes of this definition, the term “Asset Sale”
shall not include:

       

      (1)           Transfers
of cash or Cash Equivalents;

       

      (2)           Transfers
of assets (including Equity Interests) that are governed by, and made in
accordance with, Section 7.01 or any transfer that constitutes a
Fundamental Change of Control under this Indenture;

       

      (3)           Permitted
Investments and Restricted Payments permitted under
Section 6.09;

       

      (4)           The
creation or realization of any Lien permitted under this Indenture;

       

      (5)           Transfers
of surplus, damaged, worn-out or obsolete equipment or assets that, in the
Issuer’s reasonable judgment, are no longer used or useful in the business of
the Issuer or its Restricted Subsidiaries;

       

      (6)           Sales
or grants of licenses or sublicenses to use the patents, trade secrets, know-how
and other intellectual property, and licenses, leases or subleases of other
assets, of the Issuer or any Restricted Subsidiary to the extent not materially
interfering with the business of the Issuer and the Restricted
Subsidiaries;

       

      (7)           Any
transfer or series of related transfers that, but for this clause, would be
Asset Sales, if after giving effect to such transfers, the aggregate Fair Market
Value of the assets transferred in such transaction or any such series of
related transactions does not exceed $5.0 million;

       

      (8)           To
the extent allowable under Section 1031 of the Internal Revenue Code of
1986, any exchange of assets for like property (excluding any boot thereon) for
use in a business similar to that of the Issuer or any Restricted Subsidiary;
provided, that if any
property that is so disposed is Collateral, the Issuer or the applicable
Restricted Subsidiary will provide Liens on such exchanged for like property
under and in accordance with this Indenture and the Security
Documents;

       

      (9)           The
unwinding of any Hedging Obligations;

       

      (10)         Any
sale and leaseback transactions permitted by this Indenture;

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

       

      (11)         Any
issuance or sale of Equity Interests in, or Indebtedness or other securities of,
an Unrestricted Subsidiary;

       

      (12)         The
lease or sublease of any real or personal property in the ordinary course of
business;

       

      (13)         The
transfer, sale or other disposition resulting from any condemnation or other
taking of, any property or assets of the Issuer or any Restricted
Subsidiary;

       

      (14)         Any
sale or transfer of any interest in the Excluded Joint Venture; and

       

      (15)         Termination
of leases and subleases.

       

      “Asset Sale Proceeds Account”
means one or more deposit accounts or securities accounts holding the proceeds
of any sale or disposition of any Notes Collateral.

       

      “Attributable Debt” means
in respect of a sale and leaseback transaction means, at the time of
determination, the present value of the obligation of the lessee for net rental
payments during the remaining term of the lease included in such sale and
leaseback transaction including any period for which such lease has been
extended or may, at the option of the lessor, be extended.  Such
present value shall be calculated using a discount rate equal to the rate of
interest implicit in such transaction, determined in accordance with GAAP; provided, however, that if
such sale and leaseback transaction results in a Capitalized Lease Obligation,
the amount of Indebtedness represented thereby will be determined in accordance
with the definition of “Capitalized Lease Obligations.”

       

      “Bank Collateral Agent” means
JPMorgan Chase Bank, N.A. and any successor under the Credit Agreement, or if
there is no Credit Agreement, the “Collateral Agent” designated pursuant to the
terms of any ABL Facility.

       

      “Banking Services” means each
and any of the following bank services provided to the Issuer or any Subsidiary
by any lender under an ABL Facility or any of its Affiliates:  (a)
credit cards for commercial customers (including, without limitation,
“commercial credit cards” and purchasing cards), (b) stored value cards and (c)
treasury management services (including, without limitation, controlled
disbursement, automated clearinghouse transactions, return items, overdrafts and
interstate depository network services).

       

      “Banking Services Obligations”
of a Person means any and all obligations of such Person, whether absolute or
contingent and howsoever and whensoever created, arising, evidenced or acquired
(including all renewals, extensions and modifications thereof and substitutions
therefor) in connection with Banking Services.

       

       “Bankruptcy Law” means Title 11
of the United States Code, as amended, or any similar federal or state law for
the relief of debtors.

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

      “Board of Directors” means,
with respect to any Person, (i) in the case of any corporation, the board
of directors of such Person, (ii) in the case of any limited liability
company, the board of managers of such Person, (iii) in the case of any
partnership, the Board of Directors of the general partner of such Person and
(iv) in any other case, the functional equivalent of the foregoing or, in
each case, other than for purposes of the definition of “Fundamental Change of
Control,” any duly authorized committee of such body.

       

      “Business Day” means a day
other than a Saturday, Sunday or other day on which banking institutions in the
City of New York are authorized or required by law to close.

       

      “Capital Stock” means, with
respect to any Person, any and all shares of stock of a corporation, partnership
interests or other equivalent interests (however designated, whether voting or
non-voting and in such Person’s equity, entitling the holder to receive a share
of the profits and losses, and a distribution of assets, after liabilities, of
such Person).

       

      “Capitalized Lease” means a
lease required to be capitalized for financial reporting purposes in accordance
with GAAP.

       

      “Capitalized Lease Obligations”
of any Person means the obligations of such Person to pay rent or other amounts
under a Capitalized Lease, and the amount of such obligation shall be the
capitalized amount thereof determined in accordance with GAAP.

       

      “Cash Equivalents”
means:

       

      (1)          Marketable
obligations issued or directly and fully guaranteed or insured by the United
States or any agency or instrumentality thereof (provided, that the full faith
and credit of the United States is pledged in support thereof), maturing within
360 days of the date of acquisition thereof;

       

      (2)          Demand
and time deposits and certificates of deposit or acceptances, maturing within
360 days of the date of acquisition thereof, of any financial institution that
is a member of the Federal Reserve System having combined capital and surplus
and undivided profits of not less than $500 million and is assigned at least a
“B” rating by Thomson Financial BankWatch;

       

      (3)          Readily
marketable direct obligations (or certificates representing an ownership
interest in such obligations) of any state of the United States of America
(including any agency or instrumentality thereof) for the payment of which the
full faith and credit of such state is pledged and which are not callable or
redeemable at the issuer’s option, provided that:

       

      (i)           the
long-term debt of such state is rated, at the time of the Investment, “A-3” or
“A-” or higher according to Moody’s or S&P (or such similar equivalent
rating by at least one “nationally recognized statistical rating organization”
(as defined in Rule 436 under the Securities Act)); and

       

      (ii)          such
obligations mature not more than one year from the date of acquisition
thereof;

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

       

      (4)           Commercial
paper maturing no more than 270 days from the date of creation thereof issued by
a corporation that is not the Issuer or an Affiliate of the Issuer, and is
organized under the laws of any State of the United States or the District of
Columbia and rated at least A-1 by S&P or at least P-1 by
Moody’s;

       

      (5)           Repurchase
obligations with a term of not more than 30 days for underlying securities of
the types described in clause (1) above entered into with any commercial bank
meeting the specifications of clause (2) above; and

       

      (6)           Investments
in money market or other mutual funds substantially all of whose assets comprise
securities of the types described in clauses (1) through (5) above.

       

      “Close of Business” means
5:00 p.m. New York City time.

       

      “Collateral” means all the
assets and properties subject to the Liens created by the Security Documents
(which shall not include Excluded Assets).

       

      “Collateral Agreement” means
the Collateral Agreement dated the Issue Date (as amended, amended and restated,
supplemented renewed, refunded, replaced, restructured or otherwise modified
from time to time, whether by the same or any other agent, lender or group of
lenders (or any affiliate of such agent, lender or group of lenders) among the
Issuer, the Guarantors party thereto and the Noteholder Collateral
Agent.

       

      “Common Stock” means the common
stock, $0.001 par value per share, of the Issuer as it exists on the date of
this Indenture or any other shares of capital stock of the Issuer into which the
Common Stock shall be reclassified or changed or, in the event of a merger,
consolidation or other similar transaction involving the Issuer that is
otherwise permitted hereunder in which the Issuer is not the surviving
corporation, the common stock, common equity interests or depositary shares or
other certificates representing common equity interests of such surviving
corporation or its direct or indirect parent corporation.

       

      “Consolidated Amortization
Expense” for any period means the amortization expense and depletion
expense of the Issuer and the Restricted Subsidiaries for such period,
determined on a consolidated basis in accordance with GAAP.

       

      “Consolidated Cash Flow” for
any period means, without duplication, the sum of the amounts for such period
of

       

      (1)           Consolidated
Net Income, plus

       

      (2)           In
each case only to the extent (and in the same proportion) deducted in
determining Consolidated Net Income and with respect to the portion of
Consolidated Net Income attributable to any Restricted Subsidiary only if a
corresponding amount would be permitted at the date of determination to be
distributed to the Issuer by such Restricted Subsidiary without prior approval
(that has not been obtained), pursuant to the terms of its charter and all
agreements (other than any municipal loan or related agreements entered into in
connection with the incurrence of industrial revenue bonds), instruments,
judgments, decrees, orders, statutes, rules and governmental regulations
applicable to such Restricted Subsidiary or its stockholders,

      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

       

      (a)          Consolidated
Income Tax Expense,

       

      (b)          Consolidated
Amortization Expense (but only to the extent not included in Consolidated
Interest Expense),

       

      (c)          Consolidated
Depreciation Expense,

       

      (d)          Consolidated
Interest Expense,

       

      (e)          Restructuring
Expenses, and

       

      (f)           All
other non-cash items reducing the Consolidated Net Income (excluding any
non-cash charge that results in an accrual of a reserve for cash charges in any
future period) for such period,

       

      in each
case determined on a consolidated basis in accordance with GAAP, minus

       

      (3)           The
aggregate amount of all non-cash items, determined on a consolidated basis, to
the extent such items increased Consolidated Net Income for such period
(excluding (i) the accrual of revenue consistent with past practice and (ii)
reversals of prior accruals on reserves for cash items previously included in
the calculation of Consolidated Cash Flow, in each case in accordance with
GAAP).

       

      “Consolidated Depreciation
Expense” for any period means the depreciation expense of the Issuer and
the Restricted Subsidiaries for such period, determined on a consolidated basis
in accordance with GAAP.

       

      “Consolidated Income Tax
Expense” for any period means the provision for taxes of the Issuer and
the Restricted Subsidiaries for such period, determined on a consolidated basis
in accordance with GAAP.

       

      “Consolidated Interest Expense”
for any period means the sum, without duplication, of the total interest expense
(less interest income) of the Issuer and the Restricted Subsidiaries for such
period, determined on a consolidated basis in accordance with GAAP and including
without duplication,

       

      (1)           Imputed
interest on Capitalized Lease Obligations,

       

      (2)           Commissions,
discounts and other fees and charges owed with respect to letters of credit
securing financial obligations, bankers’ acceptance financing and receivables
financings,

       

      (3)           The
net costs associated with Hedging Obligations,

       

      (4)           The
interest portion of any deferred payment obligations,

      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

       

      (5)           All
other non-cash interest expense,

       

      (6)           Capitalized
interest,

       

      (7)           The
product of (a) all dividend payments on any series of Disqualified Equity
Interests of the Issuer or any Preferred Stock of any Restricted Subsidiary
(other than any such Disqualified Equity Interests or any Preferred Stock held
by the Issuer or a Wholly Owned Restricted Subsidiary or to the extent paid in
Qualified Equity Interests), multiplied by (b) a
fraction, the numerator of which is one and the denominator of which is one
minus the then current
combined federal, state and local statutory tax rate of the Issuer and the
Restricted Subsidiaries, expressed as a decimal,

       

      (8)           All
interest payable with respect to discontinued operations, and

       

      (9)           All
interest on any Indebtedness described in clause (7) or (8) of the definition of
“Indebtedness”; provided, that such interest
shall be included in Consolidated Interest Expense only to the extent that the
amount of the related Indebtedness is reflected on the balance sheet of the
Issuer or any Restricted Subsidiary,

       

      less, to the extent included
in such total interest expense, (A) the amortization during such period of
capitalized financing costs associated with the Transactions and (B) the
amortization during such period of other capitalized financing
costs.

       

      Consolidated
Interest Expense shall be calculated excluding unrealized gains and losses with
respect to Hedging Obligations.

       

      “Consolidated Net Income” for
any period means the net income (or loss) of the Issuer and the Restricted
Subsidiaries for such period determined on a consolidated basis in accordance
with GAAP; provided,
that there shall be excluded from such net income (or loss) (to the extent
otherwise included therein), without duplication:

       

      (1)           The
net income (or loss) of any Person (other than a Restricted Subsidiary) in which
any Person other than the Issuer and the Restricted Subsidiaries has an
ownership interest, except to the extent that cash in an amount equal to any
such income has actually been received by the Issuer or any of its Wholly Owned
Restricted Subsidiaries during such period;

       

      (2)           Except
to the extent includible in the consolidated net income of the Issuer pursuant
to the foregoing clause (1) or otherwise in accordance with the definition of
Consolidated Secured Debt Ratio, the net income (or loss) of any Person that
accrued prior to the date that (a) such Person becomes a Restricted
Subsidiary or is merged into or consolidated with the Issuer or any Restricted
Subsidiary or (b) the assets of such Person are acquired by the Issuer or
any Restricted Subsidiary;

      
        
           

        

        
          -8-

          
            

          

        

        
           

        

      

      (3)           The
net income of any Restricted Subsidiary during such period to the extent that
the declaration or payment of dividends or similar distributions by such
Restricted Subsidiary of that income at the date of determination is not
permitted, directly or indirectly by operation of the terms of its charter or
any agreement (other than any municipal loan or related agreements entered into
in connection with the incurrence of industrial revenue bonds), instrument,
judgment, decree, order, statute, rule or governmental regulation applicable to
that Subsidiary or its stockholders during such period, unless otherwise waived,
except that the Issuer’s equity in a net loss of any such Restricted Subsidiary
for such period shall be included in determining Consolidated Net
Income;

       

      (4)           Net
income (loss) from disposed or discontinued operations and any gain (or loss) in
disposal of discontinued operations;

       

      (5)           Any
gain (or loss), together with any related provisions for taxes on any such gain
(or the tax effect of any such loss), realized during such period by the Issuer
or any Restricted Subsidiary upon (a) the acquisition of any securities, or
the extinguishment of any Indebtedness, of the Issuer or any Restricted
Subsidiary or (b) any Asset Sale (including for purposes of this clause (5)
any asset sale contemplated by clause (14) of the definition of Asset Sale) by
the Issuer or any Restricted Subsidiary;

       

      (6)           Gains
and losses due solely to fluctuations in currency values and the related tax
effects according to GAAP;

       

      (7)           Unrealized
gains and losses with respect to Hedging Obligations;

       

      (8)           The
cumulative effect of any change in accounting principles;

       

      (9)           Any
amortization or write-offs of debt issuance or deferred financing costs,
premiums and prepayment penalties, and all other costs and expenses, in each
case, paid or charged during such period to the extent attributable to the
Transactions;

       

      (10)         Gains
and losses realized upon the refinancing of any Indebtedness of the Issuer or
any Restricted Subsidiary;

       

      (11)         Any
extraordinary, nonrecurring or unusual gain (or extraordinary, nonrecurring or
unusual loss), together with any related provision for taxes on any such
extraordinary, nonrecurring or unusual gain (or the tax effect of any such
extraordinary, nonrecurring or unusual loss) (including, other than for purposes
of Section 6.09, any Restructuring Expenses, any expenses or charges
related to any issuance of Equity Interests, Investments, acquisition,
disposition, recapitalization or issuance, repayment, refinancing, amendment or
modification of Indebtedness) realized by the Issuer or any Restricted
Subsidiary during such period;

       

      (12)         Non-cash
compensation charges or other non-cash expenses or charges arising from the
grant of or issuance or repricing of Equity Interests or other equity-based
awards or any amendment or substitution of any such Equity Interests or other
equity-based awards;

       

      (13)         Any
goodwill or asset impairment charges or write-offs subsequent to the Issue Date
or amortization of other intangibles, in each case in accordance with
GAAP;

      
        
           

        

        
          -9-

          
            

          

        

        
           

        

      

       

      (14)         Any
expenses or reserves for liabilities to the extent that the Issuer or any
Restricted Subsidiary is entitled to indemnification therefor under binding
agreements; provided,
that any liabilities for which the Issuer or such Restricted Subsidiary is not
actually indemnified shall reduce Consolidated Net Income in the period in which
it is determined that the Issuer or such Restricted Subsidiary will not be
indemnified;

       

      (15)         Any
restoration to income of any contingency reserve, except to the extent that
provisions for such reserve was made out of Consolidated Net Income accrued at
any time following the Issue Date;

       

      (16)         Any
charges or credits relating to the adoption of fresh start accounting
principles;

       

      (17)         Without
duplication of clause (5) above, any net after-tax gains or losses (less all
fees and expenses or charges relating thereto) attributable to the early
extinguishment of Indebtedness, Hedging Obligations or other derivative
instruments entered in relation to the Indebtedness extinguished;
and

       

      (18)         Any
gain or loss resulting from mark-to-market requirement of any derivative
security, including the Notes.

       

      In
addition, any return of capital with respect to an Investment that increased the
Restricted Payments Basket pursuant to Section 6.09(a)(ii)(4) or decreased
the amount of Investments outstanding pursuant to clause (16) the definition of
“Permitted Investments” shall be excluded from Consolidated Net Income for
purposes of calculating the Restricted Payments Basket.

       

      “Consolidated Net Tangible
Assets” means the aggregate amount of assets of the Issuer (less
applicable reserves and other properly deductible items) after deducting
therefrom (to the extent otherwise included therein) (a) all current
liabilities (other than the obligations under this Indenture or current
maturities of long-term Indebtedness), and (b) all goodwill, trade names,
trademarks, patents, unamortized debt discount and expense and other like
intangibles, all as set forth on the books and records of the Issuer and the
Restricted Subsidiaries on a consolidated basis and in accordance with
GAAP.

       

      “Consolidated Secured Debt
Ratio” means, as of any date of determination, the ratio of
(a) consolidated total Indebtedness of the Issuer and its Restricted
Subsidiaries on the date of determination that constitutes the Notes, any Other
Pari Passu Lien Obligations and any indebtedness incurred under the Credit
Agreement (including any letters of credit issued thereunder) to (b) the
aggregate amount of Consolidated Cash Flow for the then most recent four fiscal
quarters for which internal financial statements of the Issuer and its
Restricted Subsidiaries are available (the “Four-Quarter Period”) ending
on or prior to the relevant date of determination (the “Relevant Determination
Date”).  For purposes of this definition, Consolidated Cash
Flow shall be calculated after giving effect on a pro forma basis for the period
of such calculation to:

      
        
           

        

        
          -10-

          
            

          

        

        
           

        

      

       

      (1)           The
incurrence of any Indebtedness or the issuance of any Preferred Stock of the
Issuer or any Restricted Subsidiary (and the application of the proceeds
thereof) and any repayment, repurchase, redemption, defeasance or other
discharge of Indebtedness or redemption of other Preferred Stock (and the
application of the proceeds therefrom) (other than the incurrence or repayment
of Indebtedness in the ordinary course of business for working capital purposes
pursuant to any revolving credit arrangement) occurring during the Four-Quarter
Period or at any time subsequent to the last day of the Four-Quarter Period and
on or prior to the Relevant Determination Date, as if such incurrence,
repayment, repurchase or redemption, defeasance or other discharge of or
issuance, as the case may be (and the application of the proceeds thereof),
occurred on the first day of the Four-Quarter Period; and

       

      (2)           Any
Asset Sale or Asset Acquisition (including, without limitation, any Asset
Acquisition giving rise to the need to make such calculation as a result of the
Issuer or any Restricted Subsidiary (including any Person who becomes a
Restricted Subsidiary as a result of such Asset Acquisition) incurring Acquired
Indebtedness and also including any Consolidated Cash Flow occurring during the
Four-Quarter Period or at any time subsequent to the last day of the
Four-Quarter Period and on or prior to the Relevant Determination Date, as if
such Asset Sale or Asset Acquisition (including the incurrence of, or assumption
or liability for, any such Indebtedness or Acquired Indebtedness) occurred on
the first day of the Four-Quarter Period.

       

      For
purposes of this definition, whenever pro forma effect is to be given to any pro
forma event, the pro forma calculations will be made on a basis that is
consistent with Article 11 of Regulation S-X under the Securities Act and
shall include, for the avoidance of doubt, synergies, operating improvements,
operating expense reductions and other cost savings to the extent allowable,
calculated in accordance with Article 11 of Regulation S-X under the Securities
Act.  If any Indebtedness bears a floating rate of interest and is
being given pro forma effect, the interest on such Indebtedness will be
calculated as if the rate in effect on the Relevant Determination Date had been
the applicable rate for the entire period (taking into account any Hedging
Obligations applicable to such Indebtedness if such Hedging Obligations have a
remaining term in excess of 12 months as of the Relevant Determination
Date).

       

      “Contribution Indebtedness”
means Indebtedness of the Issuer or any Restricted Subsidiary in an aggregate
principal amount equal to the product of (i) the aggregate amount of cash
contributions (other than Excluded Contributions, Restricted Payments made
pursuant to Section 6.09(b)(ii) or Disqualified Stock) or cash contributed
by the Issuer or a Restricted Subsidiary of the Issuer) made to the common
equity capital of the Company or any Restricted Subsidiary after the Issue Date
multiplied by (ii) 0.50.

       

      “Conversion Agent” means the
Trustee or such other office or agency designated by the Issuer where the Notes
may be presented for conversion.

       

      “Conversion Event” shall be
deemed to occur on the first Trading Day following the date that the closing
price of the Issuer’s Common Stock (as reported by Bloomberg L.P.) for at least
20 Trading Days in a period of 30 consecutive Trading Days exceeds 150% of the
Conversion Price.

      
        
           

        

        
          -11-

          
            

          

        

        
           

        

      

       

      “Conversion Price” means, per
share of Common Stock, $1,000 divided by the applicable Conversion Rate, subject
to adjustment as set forth herein.

       

      “Conversion Rate” means
initially 95.23809524 shares of Common Stock per $1,000 principal amount of
Notes, subject to adjustment as set forth herein.

       

      “Corporate Trust Office” means
the corporate trust office of the Trustee located at 150 Fourth Avenue
North, 2nd Floor,
Nashville, Tennessee 37219, Attention: Corporate Trust Department, or such other
office, designated by the Trustee by written notice to the Issuer, at which at
any particular time its corporate trust business shall be
administered.

       

      “Credit Agreement” means the
Credit Agreement dated the Issue Date by and among the Issuer, as Borrower,
JPMorgan Chase Bank, N.A, as administrative agent, and JPMorgan Securities Inc.,
as Sole Book-runner and Lead Arranger, Wells Fargo Capital Finance, LLC, as
Documentation Agent and Lead Arranger, the lenders named therein, including any
notes, guarantees, collateral and security documents, instruments and agreements
executed in connection therewith, and in each case as amended, restated, amended
and restated, supplemented, extended, renewed, refunded, replaced, restructured
or refinanced in whole or in part from time to time.

       

      “Custodian” means any receiver,
trustee, assignee, liquidator or similar official under any Bankruptcy
Law.

       

      “Default” means (1) any
Event of Default or (2) any event, act or condition that, after notice or
the passage of time or both, would be an Event of Default.

       

      “Depositary” means The
Depository Trust Company, New York, New York, or a successor thereto
registered under the Exchange Act or other applicable statute or
regulation.

       

      “Designated Preferred Stock”
means preferred stock of the Issuer (other than Disqualified Equity Interests)
that is issued for cash (other than to the Issuer or any of its Subsidiaries or
an employee stock plan or trust established by the Issuer or any of its
Subsidiaries) and is so designated as Designated Preferred Stock, pursuant to an
Officers’ Certificate, on the date of issuance thereof, the cash proceeds of
which are excluded from the calculation set forth in Section 6.09(a)(ii)(2)
hereof.

       

      “Discharge of ABL Debt” means
(a) the payment in cash of all obligations outstanding and unpaid under the ABL
Facility (including, without limitation, principal, interest, break-funding and
increased cost reimbursement, fees and expenses) and the cash collateralization
or other satisfactory arrangement of letters of credit then outstanding
thereunder, in each case, contemporaneously with or after the termination or
expiration of commitments under such ABL Facility and (b) the payment in cash or
cash collateralization of Swap Obligations and Banking Services Obligations that
are secured by a Lien on ABL Collateral.

      
        
           

        

        
          -12-

          
            

          

        

        
           

        

      

      “Disqualified Equity Interests”
of any Person means any class of Equity Interests of such Person that, by its
terms, or by the terms of any related agreement or of any security into which it
is convertible, puttable or exchangeable, is, or upon the happening of any event
or the passage of time would be, required to be redeemed by such Person, whether
or not at the option of the holder thereof, or matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, in whole or in
part, on or prior to the date which is 91 days after the final Maturity Date of
the Notes; provided,
however, that any class
of Equity Interests of such Person that, by its terms, authorizes such Person to
satisfy in full its obligations with respect to the payment of dividends or upon
maturity, redemption (pursuant to a sinking fund or otherwise) or repurchase
thereof or otherwise by the delivery of Equity Interests that are not
Disqualified Equity Interests, and that is not convertible, puttable or
exchangeable for Disqualified Equity Interests or Indebtedness, will not be
deemed to be Disqualified Equity Interests so long as such Person satisfies its
obligations with respect thereto solely by the delivery of Equity Interests that
are not Disqualified Equity Interests; provided, further, however, that any Equity
Interests that would not constitute Disqualified Equity Interests but for
provisions thereof giving holders thereof (or the holders of any security into
or for which such Equity Interests is convertible, exchangeable or exercisable)
the right to require the Issuer to redeem such Equity Interests upon the
occurrence of a change in control or an asset sale occurring prior to the 91st
day after the final Maturity Date of the Notes shall not constitute Disqualified
Equity Interests if the change in control or asset sale provisions applicable to
such Equity Interests are no more favorable to such holders than the provisions
set forth in Article Three and Section 6.11 respectively, and such
Equity Interests provide that the Issuer will not redeem any such Equity
Interests pursuant to such provisions prior to the Issuer’s purchase of the
Notes as required pursuant to the provisions set forth in Article Three and
6.11 respectively.

       

      “Equity Interests” of any
Person means (1) any and all shares or other equity interests (including
common stock, preferred stock, limited liability company interests and
partnership interests) in such Person and (2) all rights to purchase,
warrants or options (whether or not currently exercisable), participations or
other equivalents of or interests in (however designated) such shares or other
interests in such Person.

       

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

       

      “Excluded Assets” means
(a) Excluded Equity, (b) those assets that would constitute ABL
Collateral but as to which the Bank Collateral Agent shall not have required a
lien or security interest (other than such forbearance by the Bank Collateral
Agent after the Discharge of ABL Debt, (c) any Trademark (as defined in the
Collateral Agreement) applications filed in the United States Patent and
Trademark Office on the basis of any Grantor’s, as applicable, “intent-to-use”
such trademark, unless and until acceptable evidence of use of the Trademark (as
defined in the Collateral Agreement) has been filed with the United States
Patent and Trademark Office pursuant to Section 1(c) or Section 1(d)
of the Lanham Act (15 U.S.C. 1051, et seq.), provided that any such
Trademark (as defined in the Collateral Agreement) applications shall
automatically be included in the Collateral upon the filing of acceptable
evidence of use of such Trademark (as defined in the Collateral Agreement),
(d) Equipment (as defined in the Collateral Agreement) and the related
accessions and proceeds owned by any Grantor that is subject to a purchase money
Lien or a Capital Lease to the extent such purchase money Lien or Capital Lease
is a Permitted Lien if the contract to other agreement in which such Lien is
granted (or in the documentation providing for such Capital Lease or purchase
money lien) prohibits or requires the consent of any Person other than a Grantor
as a condition to the creation of any other Lien on such Equipment, (e) any
interest in any real property (other than Material Real Property), including
without limitation any leasehold interests (other than solely to the extent
required to create and perfect a security interest in as-extracted collateral
which is part of the ABL Collateral), (f) any assets the perfection of
which would require notation of a lien on a certificate of title (other than
solely to the extent such assets are part of the ABL Collateral) and
(g) Special Property other than the following:

      
        
           

        

        
          -13-

          
            

          

        

        
           

        

      

       

      (a)           The
right to receive any payment of money (including Accounts, General Intangibles
and Payment Intangibles) or any other rights referred to in Sections 9-406,
9-407, 9-408, 9-409 of the UCC to the extent that such Sections of the UCC
are effective to limit the prohibitions or restrictions which make such property
“Special Property”; and

       

      (b)           Any
Proceeds, substitutions or replacements of any Special Property (unless such
Proceeds, substitutions or replacements would constitute Special
Property).

       

      “Excluded Contributions” means
the net cash proceeds or Cash Equivalents received by the Issuer after the Issue
Date from:

       

      (1)           contributions
to its common equity capital; and

       

      (2)           the
sale (other than to the Issuer or to a Subsidiary of the Issuer or to any
management equity plan or stock option plan or any other management or employee
benefit plan or agreement of the Issuer or any Subsidiary of the Issuer) of
Qualified Equity Interests (other than Disqualified Stock and Designated
Preferred Stock) of the Issuer;

       

      in each
case designated as Excluded Contributions pursuant to an Officers’ Certificate,
the proceeds of which are excluded from the calculation set forth in
Section 6.09(a)(ii)(2) hereof.

       

      “Excluded Equity” means Equity
Interests solely to the extent:

       

      (a)           In
excess of 66% of the issued and outstanding voting Equity Interests of any
Foreign Subsidiary;

       

      (b)           Equity
Interests issued by the Excluded Joint Venture; or

       

      (c)           The
inclusion of such Equity Interests in the Collateral would require separate
financial statements for a Subsidiary of the Issuer to be filed with the SEC (or
any successor federal agency) pursuant to Rule 3-16 of Regulation S-X
(or any successor law or regulation), as in effect from time to
time.

       

      “Excluded Joint Venture” means
Superior Materials Holdings LLC and its direct and indirect
Subsidiaries.

       

      “Ex-Dividend Date” means the
first date on which the Common Stock trade on the applicable exchange or in the
applicable market, regular way, without the right to receive the relevant
issuance or distribution.

      
        
           

        

        
          -14-

          
            

          

        

        
           

        

      

       

      “Fair Market Value” means, with
respect to any asset, the price (after taking into account any liabilities
relating to such asset) that would be negotiated in an arm’s-length transaction
for cash between a willing seller and a willing and able buyer, neither of which
is under any compulsion to complete the transaction.  Fair Market
Value (other than of any asset with a public trading market) in excess of $5.0
million shall be determined by the Board of Directors of the Issuer acting
reasonably and in good faith and shall be evidenced by a board resolution
delivered to the Trustee.  Fair Market Value (other than of any asset
with a public trading market) in excess of $20.0 million shall be determined by
an Independent Financial Advisor, which determination shall be evidenced by an
opinion addressed to the Board of Directors of the Issuer and delivered to the
Trustee.

       

      “Foreign Subsidiary” means any
Restricted Subsidiary of the Issuer which is not organized under the laws of
(x) the United States or any state thereof or (y) the District of
Columbia.

       

      “Four-Quarter Period” has the
meaning given to such term in the definition of “Consolidated Secured Debt
Ratio.”

       

      “Fundamental Change of Control” will be
deemed to occur at such time as:

       

      (i)            The
Issuer consolidates with or merges with or into another Person (other than any
Subsidiary of the Issuer and its outstanding Voting Stock is reclassified into,
converted for or converted into the right to receive any other property or
security, or the Issuer sells, conveys, transfers or leases all or substantially
all of its properties and assets to any Person (other than its Subsidiary);
provided, that the
foregoing shall not constitute a Fundamental Change of Control if
(x) Persons that beneficially own the Issuer’s Voting Stock immediately
prior to the transaction own, directly or indirectly, a majority of the Voting
Stock of the surviving or transferee Person immediately after the transaction in
substantially the same proportion as their ownership of the Issuer’s Voting
Stock immediately prior to the transaction or (y) such transaction is a
consolidation, merger or sale, lease, conveyance or other disposition the
purpose of which is to effect the Issuer’s redomiciling;

       

      (ii)           Any
“person” or “group”, other than the Issuer or any of its Subsidiaries or any
employee benefit plan of the Issuer or such Subsidiary, is or becomes the
“beneficial owner,” directly or indirectly, of more than 50% of the total voting
power in the aggregate of all classes of the Issuer’s capital stock then
outstanding and entitled to vote generally in elections of directors;
or

       

      (iii)          During
any period of 12 consecutive months after the Issue Date, Persons who at the
beginning of such 12 month period constituted the Issuer’s Board of Directors,
together with any new Persons whose election was approved by a vote of a
majority of the Persons then still comprising its Board of Directors who were
either members of the Board of Directors at the beginning of such period or
whose election, designation or nomination for election was previously so
approved, cease for any reason to constitute a majority of the Issuer’s Board of
Directors.

      
        
           

        

        
          -15-

          
            

          

        

        
           

        

      

       

      For
purposes of this definition, (i) ”beneficial owner” is used as defined in
Rules 13d-3 and 13d-5 under the Exchange Act, (ii) ”group” has the meaning
it has in Sections 13(d) and 14(d) of the Exchange Act and
(iii) ”person” is used with the same meaning as that used within Rule 13d-3
under the Exchange Act, in each case whether or not applicable.

       

      A
“Fundamental Change of Control” shall be deemed not to have occurred in the case
of a merger or consolidation described in clause (i) of the definition of
Fundamental Change of Control if (x) at least 90% of the consideration paid
for the Issuer’s Common Stock (other than cash payments for fractional shares
and cash payments pursuant to dissenter’s appraisal rights) in the merger or
consolidation consists of common stock of a United States or non-United States
company traded on a United States national securities exchange (or which will be
so traded or quoted when issued or exchanged in connection with such
transaction) and (y) the market capitalization of the acquiror in such
merger or consolidation is at least equal to or greater than the market
capitalization of the Issuer on the Trading Day immediately preceding the day on
which such merger or consolidation is publicly announced.

       

      “GAAP” means generally accepted
accounting principles set forth in the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as may be
approved by a significant segment of the accounting profession of the United
States, as in effect on the Issue Date.

       

      “Grantors” means the Issuer and
the Guarantors.

       

      “guarantee” means a direct or
indirect guarantee by any Person of any Indebtedness of any other Person and
includes any obligation, direct or indirect, contingent or otherwise, of such
Person:  (1) to purchase or pay (or advance or supply funds for
the purchase or payment of) Indebtedness of such other Person (whether arising
by virtue of partnership arrangements, or by agreements to keep-well, to
purchase assets, goods, securities or services (unless such purchase
arrangements are on arm’s-length terms and are entered into in the ordinary
course of business), to take-or-pay, or to maintain financial statement
conditions or otherwise); or (2) entered into for purposes of assuring in
any other manner the obligee of such Indebtedness of the payment thereof or to
protect such obligee against loss in respect thereof (in whole or in part);
“guarantee,” when used
as a verb, and “guaranteed” have correlative
meanings.

       

      “Guarantors” means
(1) each Restricted Subsidiary of the Issuer on the Issue Date (other than
any Foreign Subsidiaries and the Excluded Joint Venture) and (2) each other
Person that is required to, or at the election of the Issuer does, become a
Guarantor by the terms of this Indenture after the Issue Date, in each case,
until such Person is released from its Note Guarantee in accordance with the
terms of this Indenture.

       

      “Hedging Obligations” of any
Person means the obligations of such Person under swap, cap, collar, forward
purchase or similar agreements or arrangements dealing with interest rates,
currency exchange rates or commodity prices, either generally or under specific
contingencies.

      
        
           

        

        
          -16-

          
            

          

        

        
           

        

      

       

      “Holder” means any registered
holder, from time to time, of the Notes.

       

      “incur” means, with respect to
any Indebtedness or Obligation, incur, create, issue, assume, guarantee or
otherwise become directly or, indirectly liable, contingently or otherwise, with
respect to such Indebtedness or Obligation; provided, that (1) the
Indebtedness of a Person existing at the time such Person became a Restricted
Subsidiary shall be deemed to have been incurred by such Restricted Subsidiary
and (2) the accrual of interest, the accretion of original issue discount
or the accretion or accumulation of dividends on any Equity Interests shall not
be deemed to be an incurrence of Indebtedness.

       

      “Indebtedness” of any Person at
any date means, without duplication:

       

      (1)           All
liabilities, contingent or otherwise, of such Person for borrowed
money;

       

      (2)           All
obligations of such Person evidenced by bonds, debentures, notes, other similar
instruments or letters of credit (or reimbursement obligations with respect
thereto);

       

      (3)           All
reimbursement obligations of such Person in respect of letters of credit,
letters of guaranty, bankers’ acceptances and similar credit
transactions;

       

      (4)           All
obligations of such Person to pay the deferred and unpaid purchase price of
property or services due more than 60 days after such property is acquired or
services completed, except trade payables and accrued expenses incurred by such
Person in the ordinary course of business in connection with obtaining goods,
materials or services;

       

      (5)           The
amount of all Disqualified Equity Interests of such Person calculated in
accordance with GAAP (whether classified as debt, equity or
mezzanine);

       

      (6)           All
Capitalized Lease Obligations of such Person or Attributable Debt in respect of
sale and leaseback transactions;

       

      (7)           All
Indebtedness of others secured by a Lien on any asset of such Person, whether or
not such Indebtedness is assumed by such Person;

       

      (8)           All
Indebtedness of others guaranteed by such Person to the extent of such
guarantee; provided,
that Indebtedness of the Issuer or its Subsidiaries that is guaranteed by the
Issuer or the Issuer’s Subsidiaries shall only be counted once in the
calculation of the amount of Indebtedness of the Issuer and its Subsidiaries on
a consolidated basis;

       

      (9)           To
the extent not otherwise included in this definition, Hedging Obligations of
such Person;

       

      (10)         All
obligations of such Person under conditional sale or other title retention
agreements relating to assets purchased by such Person, except trade payables
incurred by such Person in the ordinary course of business; and

      
        
           

        

        
          -17-

          
            

          

        

        
           

        

      

       

      (11)         Indebtedness
of any partnership in which such Person is a general partner (other than to the
extent that the instrument or agreement evidencing such Indebtedness expressly
provides that such Indebtedness is recourse only to the partnership and not to
the general partner).

       

      The
amount of any Indebtedness which is incurred at a discount to the principal
amount at maturity thereof as of any date shall be deemed to have been incurred
at the accreted value thereof as of such date.  The amount of
Indebtedness of any Person at any date shall be the outstanding balance at such
date of all unconditional obligations as described above, the maximum liability
of such Person for any such contingent obligations at such date and, in the case
of clause (7), the lesser of (a) the Fair Market Value of any asset subject
to a Lien securing the Indebtedness of others on the date that the Lien attaches
and (b) the amount of the Indebtedness secured.

       

      Notwithstanding
the foregoing, Indebtedness shall not include any liability for Federal, state,
local or other taxes owed or owing to any governmental entity.

       

      “Indenture” means this
Indenture, as amended or supplemented from time to time in accordance with the
terms hereof.

       

      “Independent Financial Advisor”
means an accounting, appraisal or investment banking firm of nationally
recognized standing that is, in the reasonable judgment of the Issuer’s Board of
Directors, disinterested and independent with respect to the Issuer and its
Affiliates.

       

      “Institutional Accredited
Investor” or “IAI” means an “accredited
investor” with the meaning of Rule 501(a)(1), (2), (3) or (7) under the
Securities Act.

       

      “Intercreditor Agreement” means
the Intercreditor Agreement dated as of the Issue Date among the Bank Collateral
Agent, the Trustee, the Noteholder Collateral Agent, the Issuer and each
Guarantor, as it may be amended, amended and restated, modified, supplemented,
extended, renewed or replaced from time to time in accordance with the Indenture
or other intercreditor agreements among the Trustee, the Noteholder Collateral
Agent, an agent for lenders providing an ABL Facility from time to time, in each
case as it may be amended, modified, supplemented, extended, renewed or
replaced.

       

      “interest” means, with respect
to the Notes, unless the context requires otherwise, interest and Additional
Interest, if any, on the Notes.

       

      “Interest Payment Date” means
the Stated Maturity of an installment of interest on the Notes and shall mean
each ____, ____, ____ and ____ of each year.

       

      “Investments” of any Person
means, with respect to any Person, all direct or indirect investments by such
Person in other Persons (including Affiliates) in the form of:

       

      (1)           All
loans, advances or capital contributions or other credit extensions constituting
Indebtedness of such other Person, and any guarantee of Indebtedness of any
other Person;

      
        
           

        

        
          -18-

          
            

          

        

        
           

        

      

       

      (2)           All
purchases (or other acquisitions for consideration) by such Person of
Indebtedness, Equity Interests or other securities of any other Person (other
than any such purchase that constitutes a Restricted Payment of the type
described in clause (2) of the definition thereof);

       

      (3)           All
other items that would be classified as investments on a balance sheet of such
Person prepared in accordance with GAAP; and

       

      (4)           The
Designation of any Subsidiary as an Unrestricted Subsidiary.

       

      Except as
otherwise expressly specified in this definition, the amount of any Investment
(other than an Investment made in cash) shall be the Fair Market Value thereof
on the date such Investment is made.  The amount of Investment
pursuant to clause (4) shall be the Designation Amount determined in accordance
with Section 6.17.  If the Issuer or any Restricted Subsidiary
sells or otherwise disposes of any Equity Interests of any Restricted
Subsidiary, or any Restricted Subsidiary issues any Equity Interests, in either
case, such that, after giving effect to any such sale or disposition, such
Person is no longer a Restricted Subsidiary, the Issuer shall be deemed to have
made an Investment on the date of any such sale or other disposition equal to
the Fair Market Value of the Equity Interests of and all other Investments in
such Restricted Subsidiary retained.  Notwithstanding the foregoing,
purchases or redemptions of Equity Interests of the Issuer shall be deemed not
to be Investments.

       

      “Issue Date” means the date on
which the Notes are originally issued.

       

      “Last Reported Sale Price” of
Common Stock on any Trading Day means the closing sale price per share (or if no
closing sale price is reported, the average of the bid and ask prices or, if
more than one, the average of the average bid and the average ask prices) on
that day as reported on the principal United States securities exchange on which
shares of Common Stock are then traded.  If the Common Stock is not
listed for trading on a United States national securities exchange on the
relevant date, the “Last Reported Sale Price” of Common Stock will be the last
quoted bid price per share of Common Stock in the over-the-counter market on the
relevant date as reported by the OTC Bulletin Board or Pink OTC Markets Inc. or
similar organization on which the Common Stock is then quoted.  If the
Common Stock is not so quoted, the “Last Reported Sale Price” of Common Stock
will be as determined by a United States nationally recognized securities dealer
retained by the Issuer for that purpose.  The “Last Reported Sale
Price” of Common Stock will be determined without reference to extended or after
hours trading.

       

      “Lien” means, with respect to
any asset, any mortgage, deed of trust, lien (statutory or other), pledge,
charge, security interest or other encumbrance of any kind or nature in respect
of such asset, whether or not filed, recorded or otherwise perfected under
applicable law, including any conditional sale or other title retention
agreement.

       

      “Material Real Property” means
any owned real property (or any interest in owned real property) having a net
book value in excess of $700,000.

       

      “Maturity Date” means
[              ],
2015.

      
        
           

        

        
          -19-

          
            

          

        

        
           

        

      

       

      “Maximum ABL Debt Amount” means, on any date of
determination, the amount of (i) (1) the aggregate principal amount of ABL Debt
then outstanding (with letters of credit being deemed to have a principal amount
equal to the maximum potential liability of the Issuer and the Restricted
Subsidiaries thereunder) which principal amount shall not exceed $80.0
million less (2) to the
extent a permanent repayment and/or commitment reduction is required thereunder
as a result of the application, the aggregate amount of Net Available Proceeds
applied to repayments under the Credit Agreement in accordance with
Section 6.11, plus
(ii) the aggregate amount of all then outstanding Banking Services
Obligations and the then applicable net aggregate obligation amount of all then
outstanding Swap Obligations incurred with any lender under an ABL Facility (or
an affiliate of such lender), in the case of each of the obligations under this
clause (ii), to the extent secured under any ABL Facility, plus (iii) all accrued and
unpaid interest accruing in
respect of or attributable to, but only in respect of or attributable to, the
aggregate principal amount of ABL Debt at any one time not to exceed the amount
referred to in clause (i) above, fees, indemnities (other than unasserted,
contingent indemnity obligations) and other obligations (other than principal
and interest) relating to the foregoing.

       

      “Moody’s” means Moody’s
Investors Service, Inc. and its successors.

       

      “Mortgages” means mortgages,
deeds of trust, leasehold mortgages, assignments of leases and rents,
modifications and other security documents delivered pursuant to
Section 6.15.

       

      “Net Available Proceeds” means,
with respect to any Asset Sale, the proceeds thereof in the form of cash or Cash
Equivalents, net of

       

      (1)           Brokerage
commissions and other fees and expenses (including fees, discounts and expenses
of legal counsel, accountants, investment banks, consultants and placement
agents) of such Asset Sale;

       

      (2)           Provisions
for taxes payable as a result of such Asset Sale (after taking into account any
available tax credits or deductions and any tax sharing
arrangements);

       

      (3)           Amounts
required to be paid to any Person (other than the Issuer or any Restricted
Subsidiary) owning a beneficial interest in the assets subject to the Asset Sale
or having a Lien thereon;

       

      (4)           Payments
of unassumed liabilities (not constituting Indebtedness) relating to the assets
sold at the time of, or within 30 days after the date of, such Asset
Sale;

       

      (5)           Appropriate
amounts to be provided by the Issuer or any Restricted Subsidiary, as the case
may be, as a reserve required in accordance with GAAP against any adjustment in
the sale price of such asset or assets or liabilities associated with such Asset
Sale and retained by the Issuer or any Restricted Subsidiary, as the case may
be, after such Asset Sale, including pensions and other postemployment benefit
liabilities, liabilities related to environmental matters and liabilities under
any indemnification obligations associated with such Asset Sale, all as
reflected in an Officers’ Certificate delivered to the Trustee; provided, however, that any amounts
remaining after adjustments, revaluations or liquidations of such reserves shall
constitute Net Available Proceeds; and

      
        
           

        

        
          -20-

          
            

          

        

        
           

        

      

       

      (6)           Any
portion of the purchase price from an Asset Sale placed in escrow (whether as a
reserve for adjustment of the purchase price, or for satisfaction of indemnities
in respect of such Asset Sale) in accordance with GAAP; provided, however, that the termination
of any such escrow, Net Available Proceeds shall be increased by the amount of
any portion of funds released from escrow to the Issuer or any Restricted
Subsidiary.

       

      “Non-Recourse Indebtedness”
means:

       

      (1)           As
to which neither the Issuer nor any Restricted Subsidiary (a) provides
credit support of any kind (including any undertaking, agreement or instrument
that would constitute Indebtedness), (b) is directly or indirectly liable
as a guarantor or otherwise, or (c) constitutes the lender;

       

      (2)           No
default with respect to which would permit upon notice, lapse of time or both
any holder of any other Indebtedness of the Issuer or any Restricted Subsidiary
to declare a default on such other Indebtedness or cause the payment of the
Indebtedness to be accelerated or payable prior to its Stated Maturity;
and

       

      (3)           As
to which the lenders have been notified or acknowledged in writing that they
will not have any recourse to the stock (other than the stock of an Unrestricted
Subsidiary pledged by the Issuer or any Restricted Subsidiary) or assets of the
Issuer and the Restricted Subsidiaries.

       

      “Non-U.S. Person” has the
meaning assigned to such term in Regulation S.

       

      “Note Documents” means the
Notes, the Notes Guarantees, the Indenture, the Security Documents, the
Registration Rights Agreement and the Intercreditor Agreement.

       

      “Note Guarantee” means the
guarantee by each Guarantor of the Issuer’s payment obligations under this
Indenture and the Notes, executed pursuant to this Indenture.

       

      “Noteholder Collateral Agent”
means U.S. Bank National Association, as Noteholder Collateral Agent, and any
successor thereto in such capacity.

       

      “Noteholder Secured Parties”
means the Trustee, Noteholder Collateral Agent, each Holder and each other
holder of, or obligee in respect of, any obligations in respect of the Notes
outstanding at such time and the beneficiaries of each indemnification
obligation undertaken by a Note Party under any Note Document.

       

      “Note Parties” means the Issuer
and the Guarantors.

       

      “Notes” means, collectively,
the Issuer’s 9.5% Convertible Secured Notes due 2015 issued in accordance with
Section 2.02 treated as a single class of securities under this Indenture,
as amended or supplemented from time to time in accordance with the terms of
this Indenture.

      
        
           

        

        
          -21-

          
            

          

        

        
           

        

      

       

      “Notes Collateral” means
substantially all of the assets (excluding all Excluded Assets) that are owned
or hereafter acquired by the Issuer or by any Guarantor to the extent pledged or
required to be pledged to secure the Notes on a first-priority basis in favor of
the Noteholder Secured Parties in accordance with the Intercreditor Agreement,
this Indenture and the Security Documents, including, to the extent constituting
Collateral, all to the extent owned or hereafter acquired by the Issuer or by
any Guarantor, (i) Equity Interests in any Subsidiary of the Issuer, (ii)
Material Real Property, (iii) Equipment (other than mixer trucks), (iv)
Intellectual Property, (v) other Collateral to the extent not constituting
ABL Collateral and (v) Proceeds of Notes Collateral, including the Asset Sale
Proceeds Account; provided that after the
Discharge of ABL Debt secured by the ABL Collateral and subject to the terms,
conditions and provisions of the Intercreditor Agreement, this Indenture and the
Security Documents, all Collateral shall constitute Notes
Collateral.  All capitalized terms used in this definition and not
otherwise defined in this Indenture shall have the meaning attributed thereto in
the Uniform Commercial Code for the State of New York.

       

      “Obligation” means any
principal (when due, upon acceleration, upon redemption, upon mandatory
repayment or repurchase pursuant to a mandatory offer to purchase or otherwise),
premium, interest, penalties, fees, indemnification, reimbursements, costs,
expenses, damages and other liabilities payable under the documentation
governing any Indebtedness, including all interest accrued or accruing after the
commencement of any bankruptcy, insolvency or reorganization or similar case or
proceeding at the contract rate (including, without limitation, any contract
rate applicable upon default) specified in the relevant documentation, whether
or not the claim for such interest is allowed as a claim in such case or
proceeding.

       

      “Offering Memorandum” means the
offering memorandum of the Issuer relating to the offering of the Notes dated
August 16, 2010 (including any documents incorporated by reference
therein).

       

      “Officer” means any of the
following of the Issuer:  the Chairman of the Board of Directors, the
Chief Executive Officer, the Chief Financial Officer, the President, any Vice
President, the Treasurer or the Secretary.

       

      “Officers’ Certificate” means a
certificate signed by two Officers.

       

      “Open of Business” means
9:00 a.m. New York City time.

       

      “Opinion of Counsel” means a
written opinion from legal counsel who is reasonably acceptable to the
Trustee.  The counsel may be an employee of, or counsel to, the
Issuer, a Guarantor or the Trustee.

      
        
           

        

        
          -22-

          
            

          

        

        
           

        

      

      “Other Pari Passu Lien
Obligations” means any other Refinancing Indebtedness that refinances or
refunds (or successive refinancings and refundings) any Notes and all
Obligations with respect to such Indebtedness; provided, that such
Indebtedness shall (a) have a stated maturity date that is equal to or
longer than the Notes, (b) contain terms and covenants that are no more
restrictive than the terms and covenants under the Notes, (c) contain terms
and covenants that are more restrictive than the terms and covenants under the
Notes so long as prior to or substantially simultaneously with the issuance of
any such Indebtedness, the Notes and the Indenture are amended to contain any
such more restrictive terms and covenants and (d) be secured by an interest
in the Collateral that ranks pari passu or junior to the
security interest and Liens of the Noteholder Collateral Agent in the Collateral
for the benefit of the Noteholder Secured Parties.

       

      “Pari Passu Indebtedness” means
any Indebtedness of the Issuer or any Guarantor that ranks pari passu in right of payment
with the Notes or the Note Guarantees, as applicable.

       

      “Perfection Certificate” shall
mean any Perfection Certificate substantially in the form delivered on the Issue
Date.

       

      “Permanent Regulation S Global
Note” has the meaning given to such term in
Section 2.01.

       

      “Permitted Business” means the
businesses engaged in by the Issuer and its Subsidiaries on the Issue Date as
described in the Offering Memorandum and businesses that are reasonably related
thereto, reasonable extensions thereof or necessary or desirable to facilitate
any such business, and any unrelated business to the extent that it is not
material in size as compared with the Issuer’s business as a whole.

       

      “Permitted Investment”
means:

       

      (1)           (i) Investments
by the Issuer or any Guarantor in (a) any Restricted Subsidiary that is a
Guarantor or (b) any Person that will become immediately after such
Investment a Restricted Subsidiary that is a Guarantor or that will merge or
consolidate into the Issuer or any Restricted Subsidiary that is a Guarantor and
(ii) Investments by any Restricted Subsidiary that is not a Guarantor in
any other Restricted Subsidiary;

       

      (2)           Investments
in the Issuer by any Restricted Subsidiary;

       

      (3)           Hedging
Obligations incurred in compliance with Section 6.08;

       

      (4)           Cash
and Cash Equivalents;

       

      (5)           Receivables
and trade credit owing to the Issuer or any Restricted Subsidiary if created or
acquired in the ordinary course of business and payable or dischargeable in
accordance with customary trade terms; provided, however, that such
trade terms may include such concessionary trade terms as the Issuer or any such
Restricted Subsidiary deems reasonable under the circumstances;

       

      (6)           Investments
in securities of trade creditors or customers received upon foreclosure or
pursuant to any plan of reorganization or similar arrangement upon the
bankruptcy or insolvency of such trade creditors or customers;

      
        
           

        

        
          -23-

          
            

          

        

        
           

        

      

       

      (7)           Investments
made by the Issuer or any Restricted Subsidiary as a result of consideration
received in connection with an Asset Sale made in compliance with
Section 6.11;

       

      (8)           Lease,
utility and other similar deposits in the ordinary course of
business;

       

      (9)           Investments
made by the Issuer or a Restricted Subsidiary for consideration consisting only
of Qualified Equity Interests;

       

      (10)         Stock,
obligations or securities received in settlement of debts created in the
ordinary course of business and owing to the Issuer or any Restricted Subsidiary
or in satisfaction of judgments;

       

      (11)         Guarantees
of Indebtedness permitted to be incurred under this Indenture;

       

      (12)         Advances,
loans, rebates and extensions of credit to suppliers, customers and vendors in
the ordinary course of business in an aggregate amount, together with the
aggregate amount of Indebtedness under clause (xiii) of the definition of
“Permitted Indebtedness” not to exceed $2.5 million at any time
outstanding;

       

      (13)         Payroll,
travel, relocation, commission and similar advances to cover matters that are
expected at the time of such advances ultimately to be treated as operating
expenses for accounting purposes and that are made in the ordinary course of
business;

       

      (14)         Investments
in existence on the Issue Date (including Investments in the Excluded Joint
Venture) or made pursuant to binding commitments existing on the Issue Date and
any Investment consisting of an extension, modification, renewal, replacement,
refunding or refinancing of any Investment existing on, or made pursuant to a
binding commitment existing on the Issue Date; provided that the amount of
such Investment may be increased (a) as required by the terms of such Investment
as in existence on the date of this Indenture or (b) as may otherwise be
permitted under this Indenture;

       

      (15)         Prepaid
expenses, negotiable instruments held for collection and workers’ compensation,
performance and other similar deposits in the ordinary course of
business;

       

      (16)         Investments
in an aggregate amount not to exceed, at any one time outstanding, not to exceed
the greater of $5.0 million and 2.5% of Consolidated Net Tangible Assets at the
time of such Investment (with each Investment being valued as of the date made
and without regard to subsequent changes in value);

       

      (17)         Investments
by the Issuer and its Restricted Subsidiaries consisting of deposits, prepayment
and other credits to suppliers or landlords made in the ordinary course of
business, including such Investments in connection with the entry into any new
hauling arrangements contemplated as of  the date of this
Indenture;

      
        
           

        

        
          -24-

          
            

          

        

        
           

        

      

      (18)         Any
Investment acquired by the Issuer or any of its Restricted Subsidiaries
(a) in exchange for any other Investment or accounts receivable held by the
Issuer or any such Restricted Subsidiary in connection with or as a result of a
bankruptcy, workout, reorganization or recapitalization of the Issuer of such
other Investment or accounts receivable, or (b) as a result of a
foreclosure by the Issuer or any of its Restricted Subsidiaries with respect to
any secured Investment or other transfer of title with respect to any secured
Investment in default;

       

      (19)         Any
Investment by the Issuer or a Restricted Subsidiary of the Issuer in a Person
engaged in a Permitted Business (other than an Investment in an Unrestricted
Subsidiary) having an aggregate Fair Market Value, taken together with all other
Investments made pursuant to this clause (19) that are at the time outstanding,
not to exceed the greater of (a) $15.0 million and (b) 10% of Consolidated Net
Tangible Assets at the time of such Investment (with the Fair Market Value of
each Investment being measured at the time made and without giving effect to
subsequent changes in value), at any one time outstanding; provided, however, that if any
Investment pursuant to this clause (19) is made in any Person that is not a
Restricted Subsidiary of the Issuer at the date of the making of such Investment
and such Person becomes a Restricted Subsidiary of the Issuer after such date,
such Investment shall thereafter be deemed to have been made pursuant to clause
(1) above and shall cease to have been made pursuant to this clause (19) for so
long as such Person continues to be a Restricted Subsidiary;

       

      (20)         Investments
consisting of the licensing, sublicensing or contribution of intellectual
property pursuant to joint marketing arrangements with other
Persons;

       

      (21)         Investments
acquired after the date of this Indenture as a result of the acquisition by the
Issuer or any Restricted Subsidiary of the Issuer of another Person, including
by way of a merger, amalgamation or consolidation with or into the Issuer or any
of its Restricted Subsidiaries in a transaction that is not prohibited by
Article Seven hereof after the date of this Indenture to the extent that
such Investments were not made in contemplation of such acquisition, merger,
amalgamation or consolidation and were in existence on the date of such
acquisition, merger, amalgamation or consolidation;

       

      (22)         Investments
consisting of purchases and acquisitions of inventory, supplies, materials and
equipment or purchases of contract rights or licenses of intellectual property
or leases, in each case, in the ordinary course of business;

       

      (23)         Any
acquisition of assets or Equity Interests solely in exchange for, or out of the
net cash proceeds received from, the issuance of Equity Interests (other than
Disqualified Stock) of the Issuer or any contribution to the common equity of
the Issuer; provided
that the amount of any such net cash proceeds that are utilized for any such
Investment pursuant to this clause (23) will be excluded from
Section 6.09(a)(ii)(4);

       

      (24)         Investments
by the Issuer or any Restricted Subsidiary in the Excluded Joint Venture in an
aggregate amount not to exceed $7.0 million; and

       

      (25)         For
purposes of this definition, in the event that a proposed Investment (or portion
thereof) meets the criteria of more than one of the categories of Permitted
Investments described in clause (1) through (24) above, or is otherwise
entitled to be incurred or made pursuant to Section 6.09, the Issuer will
be entitled to classify, or later reclassify, such Investment (or portion
thereof) in one or more of such categories set forth above or pursuant to
Section 6.09.

      
        
           

        

        
          -25-

          
            

          

        

        
           

        

      

       

      The
amount of Investments outstanding at any time pursuant to clause (16) above
shall be deemed to be reduced:

       

      (a)           Upon
the disposition or repayment of or return on any Investment made pursuant to
clause (16) above, as the case may be, by an amount equal to the return of
capital with respect to such Investment to the Issuer or any Restricted
Subsidiary (to the extent not included in the computation of Consolidated Net
Income); and

       

      (b)           Upon
a Redesignation of an Unrestricted Subsidiary as a Restricted Subsidiary, by an
amount equal to the lesser of (x) the Fair Market Value of the Issuer’s
proportionate interest in such Subsidiary immediately following such
Redesignation, and (y) the aggregate amount of Investments in such
Subsidiary that increased (and did not previously decrease) the amount of
Investments outstanding pursuant to clause (16).

       

      “Permitted Liens” means the
following types of Liens:

       

      (1)           Liens
on the Collateral securing the ABL Debt not to exceed the Maximum ABL Debt
Amount and Banking Services Obligations and Swap Obligations (whose priority
shall be governed by the Intercreditor Agreement);

       

      (2)           Liens
for taxes, assessments or governmental charges or claims either (a) not
delinquent or (b) contested in good faith by appropriate proceedings and as
to which the Issuer or the Restricted Subsidiaries shall have set aside on its
books such reserves or other appropriate provisions as may be required pursuant
to GAAP;

       

      (3)           Statutory
Liens of landlords and Liens of carriers, warehousemen, mechanics, suppliers,
materialmen, repairmen and other Liens imposed by law incurred in the ordinary
course of business for sums not yet delinquent or being contested in good faith,
if such reserve or other appropriate provision, if any, as shall be required by
GAAP shall have been made in respect thereof;

       

      (4)           Liens
incurred or deposits made in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other types of social
security, or to secure the performance of tenders, statutory obligations, surety
and appeal bonds, bids, leases, government contracts, performance and
return-of-money bonds and other similar obligations (exclusive of obligations
for the payment of borrowed money);

       

      (5)           Liens
upon specific items of inventory or other goods and proceeds of any Person
securing such Person’s obligations in respect of bankers’ acceptances issued or
created for the account of such Person to facilitate the purchase, shipment or
storage of such inventory or other goods;

      
        
           

        

        
          -26-

          
            

          

        

        
           

        

      

       

      (6)           Judgment
Liens not giving rise to a Default so long as such Liens are adequately bonded
and any appropriate legal proceedings which may have been duly initiated for the
review of such judgment have not been finally terminated or the period within
which the proceedings may be initiated has not expired, which are being
contested in good faith and for which adequate reserves have been made to the
extent required by GAAP;

       

      (7)           Survey
exceptions, easements, rights-of-way, zoning restrictions, non-monetary
encumbrances and other similar charges, restrictions or encumbrances in respect
of real property or immaterial imperfections of title which do not, in the
aggregate, impair in any material respect the ordinary conduct of the business
of the Issuer and the Restricted Subsidiaries taken as a whole;

       

      (8)           Liens
securing reimbursement obligations with respect to letters of credit which
encumber documents and other assets relating to such letters of credit and
products and proceeds thereof;

       

      (9)           Liens
encumbering deposits made to secure obligations arising from statutory,
regulatory, contractual or warranty requirements of the Issuer or any Restricted
Subsidiary, including rights of offset and setoff;

       

      (10)         (A) Bankers’
Liens, rights of setoff and other similar Liens existing solely with respect to
cash and Cash Equivalents on deposit in one or more accounts maintained by the
Issuer or any Restricted Subsidiary, in each case granted in the ordinary course
of business in favor of the bank or banks with which such accounts are
maintained, securing amounts owing to such bank with respect to cash management
and operating account arrangements, including those involving pooled accounts
and netting arrangements; provided, that in no case
shall any such Liens secure (either directly or indirectly) the repayment of any
Indebtedness; and (B) Liens (i) of a collection bank arising under
Section 4-208 of the Uniform Commercial Code (or equivalent statutes) on
items in the course of collection and (ii) in favor of a banking
institution arising as a matter of law encumbering deposits (including the right
of set-off) and which are within the general parameters customary in the banking
industry;

       

      (11)         Leases
or subleases granted to others that do not materially interfere with the
ordinary course of business of the Issuer or any Restricted
Subsidiary;

       

      (12)         Liens
arising from filing precautionary Uniform Commercial Code financing statements
regarding leases;

       

      (13)         Liens
securing the Notes outstanding on the Issue Date, and Liens securing Other Pari
Passu Lien Obligations, the Note Guarantees relating thereto and any Obligations
with respect to such Notes, Other Pari Passu Liens Obligations and Note
Guarantees; provided,
that such Liens with respect to Other Pari Passu Lien Obligations do not extend
to any additional assets not securing the Notes;

       

      (14)         Liens
existing on the Issue Date securing Indebtedness outstanding on the Issue
Date;

      
        
           

        

        
          -27-

          
            

          

        

        
           

        

      

       

      (15)         Liens
in favor of the Issuer or a Guarantor;

       

      (16)         Liens
securing Indebtedness and related obligations (including Hedging Obligations and
cash management obligations incurred in the ordinary course and not for
speculative purposes) permitted pursuant to clauses (iv) or (viii)(a) of
Section 6.08(b) and Refinancing Indebtedness of such, in each case, to the
extent such Liens in respect of Hedging Obligations are subject to the
Intercreditor Agreement or another intercreditor agreement substantially
consistent with and no less favorable to the Holders in any material respect
than the Intercreditor Agreement and treated as “ABL Priority Liens” (as defined
in the Intercreditor Agreement) under the applicable intercreditor
agreement;

       

      (17)         Liens
securing Purchase Money Indebtedness and Capitalized Lease Obligations; provided, that such Liens
shall not extend to any asset other than the specified asset being financed and
additions and improvements thereon;

       

      (18)         Liens
securing Indebtedness permitted to be incurred under Section 6.08(b)(xi);
provided, that the
Liens securing such Indebtedness (i) are solely on acquired property or Equity
Interests of the acquired entity, and the proceeds thereof or (ii) do not extend
to assets not subject to such Lien at the time of acquisition (other than
improvements thereon) and are no more favorable to the lienholders than those
securing such Indebtedness prior to the incurrence of such Indebtedness by the
Issuer or a Restricted Subsidiary;

       

      (19)         Liens,
other than those securing Indebtedness permitted to be incurred under
Section 6.08, on assets of a Person existing at the time such Person is
acquired or merged with or into or consolidated with the Issuer or any such
Restricted Subsidiary (and not created in anticipation or contemplation
thereof);

       

      (20)         Liens
to secure Refinancing Indebtedness of Indebtedness secured by Liens referred to
in the foregoing clauses (13), (16) ,(17), (18), (19) and this clause (20);
provided, that such
Liens (i) do not extend to any additional assets (other than improvements
thereon and replacements thereof and proceeds) and (ii) are of the same priority
as any such Liens prior to such refinancing;

       

      (21)         Liens
in favor of customs and revenue authorities arising as a matter of law to secure
payment of customs duties in connection with the importation of
goods;

       

      (22)         Liens
with respect to obligations that do not in the aggregate exceed $5.0 million at
any one time outstanding;

       

      (23)         Liens
encumbering property or assets under construction arising from progress or
partial payments by a customer of the Issuer or any of its Restricted
Subsidiaries relating to such property or assets;

       

      (24)         Liens
on property of, or on shares of stock or Indebtedness of, any Person existing at
the time (A) such Person becomes a Restricted Subsidiary of the Issuer or
(B) such Person or such property is acquired by the Issuer or any
Restricted Subsidiary; provided, that such Liens do
not extend to any other assets of the Issuer or any Restricted Subsidiary and
such Lien secures only those obligations which it secures on the date of such
acquisition (and extensions, renewals, refinancings and replacements
thereof);

      
        
           

        

        
          -28-

          
            

          

        

        
           

        

      

       

      (25)         Liens
solely on any cash earnest money deposits made by the Issuer or any of its
Restricted Subsidiaries in connection with any letter of intent or purchase
agreement permitted under this Indenture;

       

      (26)         Liens
encumbering reasonable customary initial deposits and margin deposits and
similar Liens attaching to brokerage accounts incurred in the ordinary course of
business and not for speculative purposes;

       

      (27)         Liens
on insurance policies and proceeds thereof, or other deposits, to secure
insurance premium financings;

       

      (28)         Liens
on cash, Cash Equivalents or other property arising in connection with the
defeasance, discharge or redemption of Indebtedness;

       

      (29)         Liens
arising out of conditional sale, title retention, consignment or similar
arrangements for the sale of goods entered into in the ordinary course of
business;

       

      (30)         Customary
Liens granted in favor of a trustee (including the Trustee) to secure fees and
other amounts owing to such trustee under an indenture or other agreement
pursuant to which Indebtedness not prohibited by this Indenture is issued
including this Indenture;

       

      (31)         Liens
on assets or the Capital Stock of Foreign Subsidiaries securing Indebtedness of
Foreign Subsidiaries to the extent not pledged as Notes Collateral;
and

       

      (32)         (i)
With respect to real property owned by the Issuer or applicable Restricted
Subsidiary, Liens encumbering any leases or subleases of real property leased to
a third party and not incurred in connection with Indebtedness, which do not
materially distract from the use of the property subject thereto and that do
not, in the aggregate, impair in any material respect the ordinary conduct of
the business of the Issuer and the Restricted Subsidiaries, taken as a whole and
(ii) with respect to any real property leased by the Issuer or any Restricted
Subsidiary, any Liens on the title of such property not created by the Issuer or
the Restricted Subsidiary, as applicable.

       

      For
purposes of determining compliance with this definition, (a) Permitted
Liens need not be incurred solely by reference to one category of Permitted
Liens described above but are permitted to be incurred in part under any
combination thereof and (b) in the event that a Lien (or any portion
thereof) meets the criteria of one or more categories of Permitted Liens
described above, the Issuer shall, in its sole discretion, classify (or later
reclassify) such item of Permitted Liens (or any portion thereof) in any manner
that complies with this definition and will only be required to include the
amount and type of such item of Permitted Liens in one of the above clauses and
such Lien will be treated as having been incurred pursuant to only one of such
clauses.

      
        
           

        

        
          -29-

          
            

          

        

        
           

        

      

       

      “Person” means any individual,
corporation, partnership, limited liability company, joint venture, incorporated
or unincorporated association, joint-stock company, trust, unincorporated
organization or government or other agency or political subdivision thereof or
other entity of any kind.

       

      “Plan of Liquidation” with
respect to any Person, means a plan that provides for, contemplates or the
effectuation of which is preceded or accompanied by (whether or not
substantially contemporaneously, in phases or
otherwise):  (1) the sale, lease, conveyance or other disposition
of all or substantially all of the assets of such Person otherwise than as an
entirety or substantially as an entirety; and (2) the distribution of all
or substantially all of the proceeds of such sale, lease, conveyance or other
disposition of all or substantially all of the remaining assets of such Person
to holders of Equity Interests of such Person.

       

      “Preferred Stock” means, with
respect to any Person, any and all preferred or preference stock or other equity
interests (however designated) of such Person whether now outstanding or issued
after the Issue Date.

       

      “principal” means, with respect
to the Notes, the principal of, and premium, if any, on the Notes.

       

      “Private Placement Legend”
means the legends initially set forth on the Notes in the form set forth in
Exhibit C.

       

      “Purchase Money Indebtedness”
means Indebtedness, including Capitalized Lease Obligations, of the Issuer or
any Restricted Subsidiary, in each case, incurred for the purpose of financing
all or any part of the purchase price, lease or mortgage financing (including
such Indebtedness as lessee) of property, plant or equipment used in the
business of the Issuer or any Restricted Subsidiary or the cost of installation,
construction or improvement thereof, and the payment of any sales or other taxes
associated therewith; provided, however, that
(1) the amount of such Indebtedness shall not exceed such purchase price or
cost and payment and (2) such Indebtedness shall be incurred within one
year after such acquisition of such asset by the Issuer or such Restricted
Subsidiary or such installation, construction or improvement.

       

      “Purchaser Group” means Monarch
Alternative Capital LP, Whitebox Advisors, LLC and York Capital Management
Global Advisors, LLC, in each case including any of their respective related
funds and Affiliates.

       

      “Purchaser Party” means any
beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange
Act) who acquired Notes from the Issuer on the Issue Date.

       

      “Qualified Equity Interests”
means Equity Interests of the Issuer other than Disqualified Equity Interests;
provided, that such
Equity Interests shall not be deemed Qualified Equity Interests to the extent
sold or owed to a Subsidiary of the Issuer or financed, directly or indirectly,
using funds (1) borrowed from the Issuer or any Subsidiary of the Issuer
until and to the extent such borrowing is repaid or (2) contributed,
extended, guaranteed or advanced by the Issuer or any Subsidiary of the Issuer
(including, without limitation, in respect of any employee stock ownership or
benefit plan).

      
        
           

        

        
          -30-

          
            

          

        

        
           

        

      

       

      “Qualified Institutional Buyer”
or “QIB” shall have the
meaning specified in Rule 144A under the Securities Act.

       

      “Record Date” means the
applicable Record Date specified in the Notes; provided, that if any such
date is not a Business Day, the Record Date shall be the first day immediately
succeeding such specified day that is a Business Day.

       

      “redeem” means to redeem,
repurchase, purchase, defease, retire, discharge or otherwise acquire or retire
for value; and “redemption” shall have a
correlative meaning.

       

      “Redemption Date,” when used
with respect to any Note to be redeemed, means the date fixed for such
redemption pursuant to this Indenture and the Notes.

       

      “Redemption Price,” when used
with respect to any Note to be redeemed, means the price fixed for such
redemption, payable in immediately available funds, pursuant to this Indenture
and the Notes.

       

      “refinance” means to refinance,
repay, prepay, replace, renew, refund, redeem, defease or retire.

       

      “Refinancing Indebtedness”
means Indebtedness of the Issuer or a Restricted Subsidiary issued in exchange
for, or the proceeds from the issuance and sale or disbursement of which are
used to redeem, extend, renew, replace, defease, refund or refinance in whole or
in part, any Indebtedness of the Issuer or any Restricted Subsidiary (the “Refinanced Indebtedness”);
provided
that:

       

      (1)           The
principal amount (or accreted value, in the case of Indebtedness issued at a
discount) of the Refinancing Indebtedness does not exceed the principal amount
(or accreted value, as the case may be) of the Refinanced Indebtedness plus the
amount of accrued and unpaid interest on the Refinanced Indebtedness, any
premiums and defeasance costs paid to the holders of the Refinanced Indebtedness
and reasonable expenses incurred in connection with the incurrence of the
Refinancing Indebtedness;

       

      (2)           The
Refinancing Indebtedness is the obligation of the same Person as that of the
Refinanced Indebtedness;

       

      (3)           If
the Refinanced Indebtedness was subordinated in right of payment to the Notes or
the Note Guarantees, as the case may be, then such Refinancing Indebtedness, by
its terms, is subordinate in right of payment to the Notes or the Note
Guarantees, as the case may be, at least to the same extent as the Refinanced
Indebtedness, and if the Refinanced Indebtedness was pari passu in right of
payment with the Notes or the Note Guarantees, as the case may be, then the
Refinancing Indebtedness ranks pari passu with, or is
subordinated in right of payment to, the Notes or the Note Guarantees, as the
case may be;

      
        
           

        

        
          -31-

          
            

          

        

        
           

        

      

      (4)           The
Refinancing Indebtedness has a final Stated Maturity either (a) no earlier
than the Refinanced Indebtedness being repaid or amended or (b) after the
Maturity Date of the Notes; provided, that (x) if
the Refinancing Indebtedness is subordinated in right of payment to the Notes or
the Note Guarantees, then such Refinancing Indebtedness shall have a final
Stated Maturity after the Maturity Date of the Notes and (y) if the
Refinancing Indebtedness is with respect to Refinanced Indebtedness that was
Subordinated Indebtedness, then such Refinancing Indebtedness shall have a
maturity date no earlier than the Maturity Date of the Notes; and

       

      (5)           The
portion, if any, of the Refinancing Indebtedness that is scheduled to mature on
or prior to the Maturity Date of the Notes has a Weighted Average Life to
Maturity at the time such Refinancing Indebtedness is incurred that is equal to
or greater than the Weighted Average Life to Maturity of the portion of the
Refinanced Indebtedness being repaid that is scheduled to mature on or prior to
the Maturity Date of the Notes; provided, that (x) if
the Refinancing Indebtedness is subordinated in right of payment to the Notes or
the Note Guarantees, then no portion of such Refinancing Indebtedness shall
mature until after the Maturity Date of the Notes and (y) if the
Refinancing Indebtedness is with respect to Refinanced Indebtedness that was
Subordinated Indebtedness, then no portion of such Refinancing Indebtedness
shall mature before the Maturity Date of the Notes.

       

      “Registration Rights Agreement”
means the Registration Rights Agreement dated as of the Issue Date among the
Issuer, the Guarantors and the Purchaser Parties.

       

      “Regulation D” means Regulation
D under the Securities Act.

       

      “Regulation S” means
Regulation S under the Securities Act.

       

      “Relevant Determination Date”
has the meaning given to such term in the definition of “Consolidated Secured
Debt Ratio.”

       

      “Requirement of Law” means,
collectively, any and all requirements of any governmental authority including
any and all laws, ordinances, rules, regulations or similar statutes or case
law.

       

      “Responsible Officer” means,
when used with respect to the Trustee, any officer in the Corporate Trust Office
of the Trustee to whom any corporate trust matter is referred because of such
officer’s knowledge of and familiarity with the particular subject and shall
also mean any officer who shall have direct responsibility for the
administration of this Indenture.

       

      “Restricted Payment” means any
of the following:

       

      (1)           The
declaration or payment of any dividend or any other distribution on Equity
Interests of the Issuer or any Restricted Subsidiary or any payment made to the
direct or indirect holders (in their capacities as such) of Equity Interests of
the Issuer or any Restricted Subsidiary, including, without limitation, any
payment in connection with any merger or consolidation involving the Issuer but
excluding (a) dividends or distributions payable solely in Qualified Equity
Interests or through accretion or accumulation of such dividends on such Equity
Interests, (b) in the case of Restricted Subsidiaries, dividends or
distributions payable to the Issuer or to a Restricted Subsidiary (provided that such dividends
or distributions be to the Issuer or a Guarantor if made by a Guarantor),
(c) any dividend or other distribution for which an adjustment of the
Conversion Rate is made in accordance with Article Five and (d) any
dividend, distribution or interest payment made to a Holder of Notes or Common
Stock issuable upon conversion of the Notes in accordance with this
Indenture;

      
        
           

        

        
          -32-

          
            

          

        

        
           

        

      

       

      (2)           The
redemption of any Equity Interests of the Issuer or any Restricted Subsidiary,
or any equity holder of the Issuer, including, without limitation, any payment
in connection with any merger or consolidation involving the Issuer but
excluding any such Equity Interests held by the Issuer or any Restricted
Subsidiary;

       

      (3)           Any
Investment other than a Permitted Investment; or

       

      (4)           Any
prepayment with respect to or redemption, repurchase, retirement, defeasance or
other acquisition for consideration of principal or sinking fund payment, as the
case may be, in respect of Subordinated Indebtedness, in each case prior to the
scheduled payment date or maturity or prior to any scheduled repayment of
principal or sinking fund payment.

       

      “Restricted Security” means a
Note that constitutes a “Restricted Security” within the meaning of Rule
144(a)(3) under the Securities Act; provided, however, that the Trustee
shall be entitled to request and conclusively rely on an Opinion of Counsel with
respect to whether any Note constitutes a Restricted Security.

       

      “Restricted Subsidiary” means
any Subsidiary of the Issuer other than an Unrestricted
Subsidiary.  As of the Issue Date, all Subsidiaries of the Issuer
shall be Restricted Subsidiaries.

       

      “Restructuring Expenses” means
losses, expenses and charges incurred in connection with restructuring within
the Issuer and/or one or more Restricted Subsidiaries, including in connection
with integration of acquired businesses or Persons, disposition of one or more
Subsidiaries or businesses, exiting of one or more lines of businesses and
relocation, disposition or consolidation of facilities, including severance,
curtailments or modifications of pension plans, lease termination and other
non-ordinary-course, non-operating costs and expenses in connection
therewith.

       

      “Rule 144A” means
Rule 144A under the Securities Act.

       

      “S&P” means Standard &
Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc., and its
successors.

       

      “SEC” means the United States
Securities and Exchange Commission.

       

      “Secretary’s Certificate” means
a certificate signed by the Secretary of the Issuer.

       

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

      
        
           

        

        
          -33-

          
            

          

        

        
           

        

      

       

      “Security Documents” means the
Collateral Agreement and any security agreements, pledge agreements, mortgages,
collateral assignments and related agreements, in each case as amended,
supplemented, restated, renewed, refunded, replaced, restructured, repaid,
refinanced or otherwise modified from time to time, creating the security
interests in the property and assets (other than Excluded Assets) of each
Grantor.

       

      “Shelf Registration Statement”
has the meaning assigned to it in the Registration Rights
Agreement.

       

      “Significant Subsidiary” means
(1) any Restricted Subsidiary that would be a “significant subsidiary” as
defined in Regulation S-X promulgated pursuant to the Securities Act as
such Regulation is in effect on the Issue Date and (2) any Restricted
Subsidiary that, when aggregated with all other Restricted Subsidiaries that are
not otherwise Significant Subsidiaries and as to which any event described in
clause (xi) or (xii) under Section 8.01 has occurred and is continuing, or
which are being released from their Note Guarantees (in the case of clause (x)
of Section 11.02(b), would constitute a Significant Subsidiary under clause
(1) of this definition.

       

      “Special Property”
means:

       

      (a)           Any
contract, General Intangible, permit, lease or license held by any Grantor that
validly prohibits the creation by such Grantor of a security interest
therein;

       

      (b)           Any
contract, General Intangible, permit, lease or license held by any Grantor to
the extent that any Requirement of Law applicable thereto prohibits the creation
of a security interest therein;

       

      (c)           Any
contract, General Intangible, permit, lease or license held by any Grantor to
the extent that the creation by such Grantor of a security interest therein is
permitted only with the consent of another party, if the requirement to obtain
such consent is legally enforceable and such consent has not been
obtained;

       

      (d)           Any
property owned on the date hereof or acquired after the date hereof by any
Grantor that is subject to a Lien permitted by either clause (14), (18), (19) or
(20) of the definition of Permitted Liens if the contract or agreement pursuant
to which such Lien is granted validly prohibits the creation of any other Lien
on such property or requires the consent of another party to create such Lien,
if the requirement to obtain such consent is legally enforceable and such
consent has not been obtained.

       

      provided, however, that to the extent
such property constitutes Special Property due to a prohibition on the creation
of any security interest or other Lien in the relevant permit, lease, license,
contract or other agreement or by Requirement of Law applicable thereto, then in
each case described in clauses (a), (b), (c) or (d) of this definition, such
property shall constitute “Special Property” only to the extent and for so long
as such permit, lease, license, contract or other agreement or Requirement of
Law applicable thereto validly prohibits the creation of a security interest or
Lien on such property in favor of the Noteholder Collateral Agent or such
permit, lease, license, contract, other agreement or Requirement of Law validly
requires any consent not obtained thereunder in order for the Issuer or a
Guarantor to create a security interest therein and, upon the termination or
waiver of such prohibition or requirement (howsoever occurring), such property
shall cease to constitute “Special Property.”

      
        
           

        

        
          -34-

          
            

          

        

        
           

        

      

       

      “Stated Maturity” means, with
respect to any installment of interest or principal on any Indebtedness, the
date on which such payment of interest or principal is scheduled to be paid in
the documentation governing such Indebtedness, and shall not include any
contingent obligations to repay, redeem or repurchase any such interest or
principal prior to the date originally scheduled for the payment
thereof.

       

      “Subordinated Indebtedness”
means Indebtedness of the Issuer or any Restricted Subsidiary that is expressly
subordinated in right of payment to the Notes or the Note Guarantees,
respectively.  For the avoidance of doubt, (i) unsecured Indebtedness
is not subordinated to secured Indebtedness merely because it is unsecured and
(ii) senior Indebtedness is not subordinated Indebtedness merely because it has
a junior lien priority with respect to the same collateral.

       

      “Subsidiary” means, with
respect to any Person:

       

      (1)           Any
corporation, limited liability company, association or other business entity of
which more than 50% of the total voting power of the Equity Interests entitled
(without regard to the occurrence of any contingency) to vote in the election of
the Board of Directors thereof are at the time owned or controlled, directly or
indirectly, by such Person or one or more of the other Subsidiaries of that
Person (or a combination thereof); and

       

      (2)           Any
partnership (a) the sole general partner or the managing general partner of
which is such Person or a Subsidiary of such Person or (b) the only general
partners of which are such Person or of one or more Subsidiaries of such Person
(or any combination thereof).

       

      Unless
otherwise specified, “Subsidiary” refers to a Subsidiary of the
Issuer.  The Excluded Joint Venture shall not be a Subsidiary of the
Issuer or any Restricted Subsidiary for purposes of this Indenture.

       

      “Swap Agreements” means any
agreement with respect to any swap, forward, future or derivative transaction or
option or similar agreement involving, or settled by reference to, one or more
rates, currencies, commodities, equity or debt instruments or securities, or
economic, financial or pricing indices or measures of economic, financial or
pricing risk or value or any similar transaction or any combination of these
transactions; provided
that no phantom stock or similar plan providing for payments only on account of
services provided by
current or former directors, officers, employees or consultants of the Issuer or
any Subsidiaries shall be a Swap Agreement.

       

      “Swap Obligations” of a Person
means any and all obligations of such Person, whether absolute or contingent and
howsoever and whensoever created, arising, evidenced or acquired (including all
renewals, extensions and modifications thereof and substitutions therefor),
under any and all Swap Agreements.

      
        
           

        

        
          -35-

          
            

          

        

        
           

        

      

       

      “Temporary Regulation S Global
Note” has the meaning given to such term in
Section 2.01.

       

      “Total Leverage Ratio” means,
as of any date of determination, the ratio of (a) consolidated total
Indebtedness (excluding the Capitalized Lease Obligations, Purchase Money
Indebtedness and Non-Recourse Indebtedness) of the Issuer and its Restricted
Subsidiaries to (b) the aggregate amount of Consolidated Cash Flow for the
then most recent four fiscal quarters for which internal financial statements of
the Issuer and its Restricted Subsidiaries are available, in each case with such
pro forma and other adjustments to such consolidated total Indebtedness and
Consolidated Cash Flow as are consistent with the adjustment provisions set
forth in the definition of Consolidated Secured Debt Ratio.

       

      “Trading Day” means a day
during which trading in securities generally occurs on the principal United
States securities exchange on which the Common Stock is then listed or, if the
Common Stock is not listed on a United States national securities exchange, then
on the principal other market on which the Common Stock is then traded or
quoted.

       

      “Transactions” means,
collectively, (a) the execution, delivery and performance by the Issuer and
the Guarantors of the Indenture, Collateral Agreement, Intercreditor Agreement
and other related documents to which they are a party and the issuance of the
Notes thereunder, (b) the execution, delivery and performance the Issuer
and the Subsidiaries party thereto of the Credit Agreement, Intercreditor
Agreement and related security documents on the Issue Date and borrowing
thereunder, (c) restructuring of the Issuer pursuant to the plan of
reorganization to be confirmed and consummated in one or more voluntary cases
under Chapter 11 of the Bankruptcy Code to be commenced by the Issuer in the
United States Bankruptcy Court for the District of Delaware and (d) the
payment of related fees and expenses.

       

      “Trust Indenture Act” or “TIA” means the Trust Indenture
Act of 1939, as amended.

       

      “Trustee” means the party named
as such in this Indenture until a successor replaces it in accordance with the
provisions of this Indenture and thereafter means such successor.

       

      “Uniform Commercial Code” or
“UCC” means the Uniform
Commercial Code as in effect in the relevant jurisdiction from time to
time.  Unless otherwise specified, references to the Uniform
Commercial Code herein refer to the New York Uniform Commercial
Code.

       

      “Unrestricted Subsidiary” means
(1) any Subsidiary that at the time of determination shall be designated an
Unrestricted Subsidiary by the Board of Directors of the Issuer in accordance
with Section 6.17 and (2) any Subsidiary of an Unrestricted
Subsidiary.

       

      “U.S. Government Obligations”
means direct non-callable obligations of, or obligations guaranteed by, the
United States of America for the payment of which guarantee or obligations the
full faith and credit of the United States of America is
pledged.

      
        
           

        

        
          -36-

          
            

          

        

        
           

        

      

       

      “U.S. Legal Tender” means such
coin or currency of the United States of America that at the time of payment
shall be legal tender for the payment of public and private debts.

       

      “Voting Stock” with respect to
any Person, means securities of any class of Equity Interests of such Person
entitling the holders thereof (whether at all times or only so long as no senior
class of stock or other relevant equity interest has voting power by reason of
any contingency) to vote in the election of members of the Board of Directors of
such Person.

       

      “Weighted Average Life to
Maturity” when applied to any Indebtedness at any date, means the number
of years obtained by dividing (1) the sum of the products obtained by
multiplying (a) the amount of each then remaining installment, sinking
fund, serial maturity or other required payment of principal, including payment
at final maturity, in respect thereof by (b) the number of years
(calculated to the nearest one-twelfth) that will elapse between such date and
the making of such payment by (2) the then outstanding principal amount of
such Indebtedness.

       

      “Wholly Owned Restricted
Subsidiary” means a Restricted Subsidiary of which 100% of the Equity
Interests (except for directors’ qualifying shares or certain minority interests
owned by other Persons solely due to local law requirements that there be more
than one stockholder, but which interest is not in excess of what is required
for such purpose) are owned directly by the Issuer or through one or more Wholly
Owned Restricted Subsidiaries.

       

      
        	
                SECTION 1.02.

              	
                Other
      Definitions.

              

      

       

      
        
          	
                  Term

                	 
      	
                  Section

                
	
                  144A
      Global Note

                	 
      	
                  Section 2.01

                
	
                  acceleration
      declaration

                	 
      	
                  Section
      8.02

                
	
                  Accrued
      Interest

                	 
      	
                  Section
      5.03(b)

                
	
                  Additional
      Shares

                	 
      	
                  Section
      5.07(b)

                
	
                  Affiliate
      Transaction

                	 
      	
                  Section
      6.12(a)

                
	
                  Authentication
      Order

                	 
      	
                  Section
      2.02

                
	
                  Cap
      Conversion Dates

                	 
      	
                  Section
      5.08(c)

                
	
                  Cash
      Conversion Amount

                	 
      	
                  Section
      5.08(e)

                
	
                  Cash
      Conversion Payment Date

                	 
      	
                  Section
      5.08(i)

                
	
                  Conversion
      Cap

                	 
      	
                  Section
      5.13

                
	
                  Conversion
      Date

                	 
      	
                  Section
      5.02(a)(iv)

                
	
                  Conversion
      Event

                	 
      	
                  Section
      5.08(a)

                
	
                  Conversion
      Event Notice

                	 
      	
                  Section
      5.08(a)

                
	
                  Conversion
      Notice

                	 
      	
                  Section
      5.02(a)(i)

                
	
                  Conversion
      Payment Date

                	 
      	
                  Section
      5.02(b)

                
	
                  Conversion
      Termination Date

                	 
      	
                  Section
      5.08(b)

                
	
                  Covenant
      Defeasance

                	 
      	
                  Section
      10.02(c)

                
	
                  Deposit
      Bank

                	 
      	
                  Section
      4.01(b)(vii)

                
	
                  Designation

                	 
      	
                  Section
      6.17(a)

                
	
                  Designation
      Amount

                	 
      	
                  Section
      6.17(a)(ii)

                
	
                  Distributed
      Assets

                	 
      	
                  Section
      5.04(d)(v)

                

        

      

      
        
           

        

        
          -37-

          
            

          

        

        
           

        

      

      

      
        
          	
                  Term

                	 
      	
                  Section

                
	
                  Effective
      Date

                	 
      	
                  Section
      5.07(c)

                
	
                  Election
      Notice

                	 
      	
                  Section
      5.08(c)

                
	
                  Event
      of Default

                	 
      	
                  Section
      8.01

                
	
                  Excess
      Proceeds

                	 
      	
                  Section
      6.11(d)(iii)

                
	
                  Expiration
      Date

                	 
      	
                  Section
      5.04(f)

                
	
                  Expiration
      Time

                	 
      	
                  Section
      5.04(f)

                
	
                  Four
      Quarter Period

                	 
      	
                  Section
      5.04(f)

                
	
                  Fundamental
      Change of Control Issuer Notice

                	 
      	
                  Section
      3.01(b)

                
	
                  Fundamental
      Change of Control Purchase Date

                	 
      	
                  Section
      3.01(a)

                
	
                  Fundamental
      Change of Control Purchase Notice

                	 
      	
                  Section
      3.01(c)(i)

                
	
                  Fundamental
      Change of Control Purchase Price

                	 
      	
                  Section
      3.01(a)

                
	
                  Global
      Notes

                	 
      	
                  Section
      2.01

                
	
                  Guarantee
      Obligations

                	 
      	
                  Section
      13.01

                
	
                  Guarantors

                	 
      	
                  Preamble

                
	
                  IAI
      Global Note

                	 
      	
                  Section
      2.01

                
	
                  indenture
      securities

                	 
      	
                  Section
      1.03

                
	
                  indenture
      security holder

                	 
      	
                  Section
      1.03

                
	
                  indenture
      to be qualified

                	 
      	
                  Section
      1.03

                
	
                  indenture
      trustee

                	 
      	
                  Section
      1.03

                
	
                  institutional
      trustee

                	 
      	
                  Section
      1.03

                
	
                  Issuer

                	 
      	
                  Preamble

                
	
                  Legal
      Defeasance

                	 
      	
                  Section
      10.02(b)

                
	
                  Make
      Whole Payment

                	 
      	
                  Section
      5.07(f)

                
	
                  Net
      Proceeds Offer

                	 
      	
                  Section

                
	
                  Net
      Proceeds Payment Date

                	 
      	
                  Section

                
	
                  Net
      Proceeds Surplus

                	 
      	
                  Section
      6.11(f)

                
	
                  obligor

                	 
      	
                  Section
      1.03

                
	
                  Offered
      Price

                	 
      	
                  Section
      6.11(e)(ii)

                
	
                  Pari
      Passu Indebtedness Price

                	 
      	
                  Section
      6.11(e)(ii)

                
	
                  Participants

                	 
      	
                  Section
      2.15(a)

                
	
                  Paying
      Agent

                	 
      	
                  Section
      2.03

                
	
                  Payment
      Amount

                	 
      	
                  Section
      6.11(e)(i)

                
	
                  Permanent
      Regulation S Global Note,

                	 
      	
                  Section
      2.01

                
	
                  Permitted
      Indebtedness

                	 
      	
                  Section
      6.08(b)

                
	
                  Physical
      Notes

                	 
      	
                  Section
      2.01

                
	
                  Premises

                	 
      	
                  Section
      6.15

                
	
                  Public
      Spin-Off

                	 
      	
                  Section
      5.04(d)(v)

                
	
                  Public
      Spin-Off Valuation Period

                	 
      	
                  Section
      5.04(d)(v)

                
	
                  Redemption
      Price

                	 
      	
                  Section
      4.01(a)

                
	
                  Redesignation

                	 
      	
                  Section
      6.17(d)

                
	
                  Reference
      Property

                	 
      	
                  Section
      5.05(b)

                
	
                  Registrar

                	 
      	
                  Section
      2.03

                
	
                  Regulation S
      Global Note

                	 
      	
                  Section
      2.01

                
	
                  Relevant
      Determination Date

                	 
      	
                  Section
      1.01

                
	
                  Remaining
      Notes

                	 
      	
                  Section
      5.08(g)

                

        

      

      
        
           

        

        
          -38-

          
            

          

        

        
           

        

      

      

      
        
          	
                  Term

                	 
      	
                  Section

                
	
                  Restricted
      Payments Basket

                	 
      	
                  Section
      6.09(a)(ii)

                
	
                  Share
      Price

                	 
      	
                  Section
      5.07(c)

                
	
                  Successor

                	 
      	
                  Section
      7.01(a)(i)(2)

                
	
                  Temporary
      Regulation S Global Note

                	 
      	
                  Section
      2.01

                
	
                  Trigger
      Event

                	 
      	
                  Section
      5.04(d)(v)

                
	
                  Trustee

                	 
      	
                  Preamble

                

        

      

      

      
        	
                SECTION 1.03.

              	
                Incorporation by
      Reference of Trust Indenture Act.

              

      

       

      Whenever
this Indenture refers to a provision of the Trust Indenture Act, such provision
is incorporated by reference in, and made a part of, this
Indenture.  The following Trust Indenture Act terms used in this
Indenture have the following meanings:

       

      “indenture securities”
means the Notes.

       

      “indenture security
holder” means a Holder.

       

      “indenture to be
qualified” means this Indenture.

       

      “indenture trustee” or
“institutional
trustee” means the Trustee.

       

      “obligor” on the
indenture securities means the Issuer, any Guarantor or any other obligor on the
Notes.

       

      All other
Trust Indenture Act terms used in this Indenture that are defined by the Trust
Indenture Act, defined by Trust Indenture Act reference to another statute or
defined by SEC rule and not otherwise defined herein have the meanings assigned
to them therein.

       

      
        	
                SECTION 1.04.

              	
                Rules of
      Construction.

              

      

       

      Unless
the context otherwise requires:

       

      (i)           A
term has the meaning assigned to it;

       

      (ii) 
        An accounting term not otherwise
defined has the meaning assigned to it in accordance with GAAP;

       

      (iii)         “or”
is not exclusive;

       

      (iv)         Words
in the singular include the plural, and words in the plural include the
singular;

       

      (v)   
      Provisions apply to successive events and
transactions;

       

      (vi)         “herein,”
“hereof” and other words of similar import refer to this Indenture as a whole
and not to any particular Article, Section or other
subdivision;

      
        
           

        

        
          -39-

          
            

          

        

        
           

        

      

       

      (vii)       The
words “including,” “includes” and similar words shall be deemed to be followed
by “without limitation” and

       

      (viii)      Capitalized
words used in the definition of Notes Collateral and Excluded Assets shall be
deemed to have the meanings attributed thereto in the Uniform Commercial Code
for the State of New York.

       

      ARTICLE TWO

       

      THE
NOTES

       

      
        	
                SECTION 2.01.

              	
                Form and
      Dating.

              

      

       

      The Notes
and the Trustee’s certificate of authentication shall be substantially in the
form of Exhibit A
hereto.  The Notes may have notations, legends or endorsements
required by law, stock exchange rule or usage.  The Issuer shall
approve the form of the Notes and any notation, legend or endorsement on them,
which approval can be evidenced by execution thereof.  Each Note shall
be dated the date of its issuance and show the date of its
authentication.  Each Note shall have an executed Note Guarantee from
each of the Guarantors existing on the Issue Date endorsed thereon substantially
in the form of Exhibit B.

       

      The terms
and provisions contained in the Notes and the Note Guarantees shall constitute,
and are hereby expressly made, a part of this Indenture and, to the extent
applicable, the Issuer, the Guarantors and the Trustee, by their execution and
delivery of this Indenture, expressly agree to such terms and provisions and to
be bound thereby.

       

      Notes
will be offered and sold in the United States in reliance on Regulation
D.  Notes offered and sold to “Qualified Institutional Buyers” as
defined in Rule 144A shall be issued initially in the form of one or more
permanent global Notes in registered form, substantially in the form set forth
in Exhibit A (each
a “144A Global Note”),
deposited with the Trustee, as custodian for the Depositary, duly executed by
the Issuer (and having an executed Note Guarantee from each of the Guarantors
endorsed thereon) and authenticated by the Trustee as hereinafter provided and shall bear the
legends set forth in Exhibit C.

       

      Notes
offered and sold to Institutional Accredited Investors shall be issued initially
in the form of one or more permanent global Notes in registered form,
substantially in the form set forth in Exhibit A (the
“IAI Global Note”),
deposited with the Trustee, as custodian for the Depositary, duly executed by
the Issuer (and having an executed Note Guarantee from each of the Guarantors
endorsed thereon) and authenticated by the Trustee as hereinafter provided and shall bear the
legends set forth in Exhibit C.

      
        
           

        

        
          -40-

          
            

          

        

        
           

        

      

      Notes
offered and sold in offshore transactions in reliance on Regulation S shall
be issued initially in the form of a single temporary global Note in registered
form, substantially in the form of Exhibit A (the
“Temporary Regulation S
Global Note”), deposited with the Trustee, as custodian for the
Depositary, duly executed by the Issuer (and having an executed Note Guarantee
from each of the Guarantors endorsed thereon) and authenticated by the Trustee
as hereinafter provided
and shall bear the legends set forth in Exhibit C.  Reasonably
promptly following the date that is 40 days after the later of the commencement
of the offering of the Notes in reliance on Regulation S and the Issue Date,
upon receipt by the Trustee and the Issuer of a duly executed certificate
certifying that the Holder of the beneficial interest in the Temporary
Regulation S Global Note is a Non-U.S. Person, substantially in the form of
Exhibit D
from the Depositary, a single permanent global Note in registered form
substantially in the form of Exhibit A (the
“Permanent Regulation S
Global Note,” and together with the Temporary Regulation S Global
Note, the “Regulation S
Global Note” and together with the 144A Global Note and the IAI Global
Note, the “Global
Notes”) duly executed by the Issuer (and having an executed Note
Guarantee from each of the Guarantors endorsed thereon) and authenticated by the
Trustee as hereinafter provided shall be deposited
with the Trustee, as custodian for the Depositary, and the Registrar shall
reflect on its books and records the cancellation of the Temporary Regulation S
Global Note and the issuance of the Permanent Regulation S Global
Note.

       

      The
aggregate principal amount of the Global Notes may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as
custodian for the Depositary, as hereinafter provided.  Notes
issued in exchange for interests in a Global Note pursuant to Section 2.16
may be issued in the form of permanent certificated Notes in registered form in
substantially the form set forth in Exhibit A and
bearing the applicable legends, if any (the “Physical Notes”).

       

      
        	
                SECTION 2.02.

              	
                Execution,
      Authentication and Denomination.

              

      

       

      One
Officer of the Issuer (who shall have been duly authorized by all requisite
corporate actions) shall sign the Notes for such Issuer by manual or facsimile
signature.  One Officer of a Guarantor (who shall have been duly
authorized by all requisite corporate actions) shall sign the Note Guarantee for
such Guarantor by manual or facsimile signature.

       

      If an
Officer whose signature is on a Note or Note Guarantee, as the case may be, was
an Officer at the time of such execution but no longer holds that office at the
time the Trustee authenticates the Note, the Note shall nevertheless be
valid.

       

      A Note
(and the Note Guarantees in respect thereof) shall not be valid until an
authorized signatory of the Trustee manually signs the certificate of
authentication on the Note.  The signature shall be conclusive
evidence that the Note has been authenticated under this Indenture.

       

      The
aggregate principal amount of Notes that may be authenticated and delivered
under this Indenture is limited to $55,000,000, except for Notes authenticated
and delivered upon registration of, or in exchange for, or in lieu of, other
Notes pursuant to Section 2.06, Section 2.07, and
Section 2.10.

       

      The Notes
shall be known and designated as the “9.5% Convertible Senior Notes due 2015” of
the Issuer.  The principal amount shall be payable at the Maturity
Date.

      
        
           

        

        
          -41-

          
            

          

        

        
           

        

      

      The
Trustee shall authenticate the Notes on the Issue Date upon a written order
of the Company in the form of a certificate of an Officer of the Company (an
“Authentication
Order”).  The Authentication Order shall specify the amount of
Notes to be authenticated and the date on which the Notes are to be
authenticated and whether the Notes are to be issued as certificated Notes or
Global Notes or such other information as the Trustee may reasonably
request.

       

      The
Trustee may appoint an authenticating agent reasonably acceptable to the Issuer
to authenticate Notes.  Unless otherwise provided in the appointment,
an authenticating agent may authenticate Notes whenever the Trustee may do
so.  Each reference in this Indenture to authentication by the Trustee
includes authentication by such agent.  An authenticating agent has
the same rights as an Agent to deal with the Issuer and Affiliates of the
Issuer.  The Trustee shall have the right to decline to authenticate
and deliver any Notes under this Indenture if the Trustee, being advised by
counsel, determines that such action may not lawfully be taken or if the Trustee
in good faith shall determine that such action would expose the Trustee to
personal liability.

       

      The Notes
shall be issuable only in registered form without coupons in denominations of
$1,000 and integral multiples thereof.

       

      
        	
                SECTION 2.03.

              	
                Registrar and Paying
      Agent.

              

      

       

      The
Issuer shall maintain or cause to be maintained an office or agency in the
Borough of Manhattan, The City of New York, where (a) Notes may be
presented or surrendered for registration of transfer or for exchange (“Registrar”), (b) Notes
may, subject to Section 2 of the Notes, be presented or surrendered for
payment (“Paying Agent”)
and (c) notices and demands to or upon the Issuer in respect of the Notes
and this Indenture may be served.  The Issuer may also from time to
time designate one or more other offices or agencies where the Notes may be
presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided, however, that no such
designation or rescission shall in any manner relieve the Issuer of its
obligation to maintain or cause to be maintained an office or agency in the
Borough of Manhattan, The City of New York, for such
purposes.  The Issuer may act as Registrar or Paying Agent, except
that for the purposes of Article Ten, neither the Issuer nor any Affiliate
of the Issuer shall act as Paying Agent.  The Registrar shall keep a
register of the Notes and of their transfer and exchange and the entries in such
register shall be conclusive as to the ownership of each of the Notes, absent
manifest error.  The Issuer, upon notice to the Trustee, may have one
or more co-registrars and one or more additional paying agents reasonably
acceptable to the Trustee.  The term “Registrar” includes any
co-registrar and the term “Paying Agent” includes any additional paying
agent.  The Issuer initially appoints the Trustee as Registrar and
Paying Agent until such time as the Trustee has resigned or a successor has been
appointed.

       

      The
Issuer shall enter into an appropriate agency agreement with any Agent not a
party to this Indenture, which agreement shall implement the provisions of this
Indenture that relate to such Agent.  The Issuer shall notify the
Trustee, in advance, of the name and address of any such Agent.  If
the Issuer fails to maintain a Registrar or Paying Agent, the Trustee shall act
as such.

      
        
           

        

        
          -42-

          
            

          

        

        
           

        

      

       

      
        	
                SECTION 2.04.

              	
                Paying Agent to Hold
      Assets in Trust.

              

      

       

      The
Issuer shall require each Paying Agent other than the Trustee or the Issuer or
any Subsidiary to agree in writing that, subject to Article Twelve, each
Paying Agent shall hold in trust for the benefit of Holders or the Trustee all
assets held by the Paying Agent for the payment of principal of, or interest on,
the Notes (whether such assets have been distributed to it by the Issuer or any
other obligor on the Notes), and shall notify the Trustee of any Default by the
Issuer (or any other obligor on the Notes) in making any such
payment.  The Issuer at any time may require a Paying Agent to
distribute all assets held by it to the Trustee and account for any assets
disbursed and the Trustee may at any time during the continuance of any payment
Default, upon written request to a Paying Agent, require such Paying Agent to
distribute all assets held by it to the Trustee and to account for any assets
distributed.  Upon distribution to the Trustee of all assets that
shall have been delivered by the Issuer to the Paying Agent, the Paying Agent
shall have no further liability for such assets.

       

      
        	
                SECTION 2.05.

              	
                Holder
      Lists.

              

      

       

      The
Trustee shall preserve in as current a form as is reasonably practicable the
most recent list available to it of the names and addresses of
Holders.  If the Trustee is not the Registrar, the Issuer shall
furnish to the Trustee at least seven (7) Business Days prior to each
Interest Payment Date and at such other times as the Trustee may request in
writing a list, in such form and as of such date as the Trustee may reasonably
require, of the names and addresses of Holders, which list may be conclusively
relied upon by the Trustee.

       

      
        	
                SECTION 2.06.

              	
                Transfer and
      Exchange.

              

      

       

      Subject
to Sections 2.15 and 2.16, when Notes are presented to the Registrar with a
request to register the transfer of such Notes or to exchange such Notes for an
equal principal amount of Notes of other authorized denominations, the Registrar
shall register the transfer or make the exchange as requested if its
requirements for such transaction are met; provided, however, that the Notes
surrendered for transfer or exchange shall be duly endorsed or accompanied by a
written instrument of transfer in form satisfactory to the Issuer and the
Registrar, duly executed by the Holder thereof or his or her attorney duly
authorized in writing.  To permit registrations of transfers and
exchanges, the Issuer shall execute and the Trustee shall authenticate Notes at
the Registrar’s request.  No service charge shall be made for any
registration of transfer or exchange, but the Issuer may require payment of a
sum sufficient to cover any transfer tax or similar governmental charge payable
in connection therewith.

       

      Without
the prior written consent of the Issuer, the Registrar shall not be required to
register the transfer of or exchange of any Note (i) during a period
beginning at the opening of business 15 days before the mailing of a notice of
redemption of Notes and ending at the Close of Business on the day of such
mailing, (ii) selected for redemption in whole or in part pursuant to
Article Five, except the unredeemed portion of any Note being redeemed in
part, and (iii) beginning at the opening of business on any Record Date and
ending on the Close of Business on the related Interest Payment
Date.

      
        
           

        

        
          -43-

          
            

          

        

        
           

        

      

      Any
Holder of a beneficial interest in a Global Note shall, by acceptance of such
beneficial interest, agree that transfers of beneficial interests in such Global
Notes may be effected only through a book-entry system maintained by the Holder
of such Global Note (or its agent) in accordance with the applicable legends
thereon, and that ownership of a beneficial interest in the Note shall be
required to be reflected in a book-entry system.

       

      
        	
                SECTION 2.07.

              	
                Replacement
      Notes.

              

      

       

      If a
mutilated Note is surrendered to the Trustee or if the Holder of a Note claims
that the Note has been lost, destroyed or wrongfully taken, the Issuer shall
issue and the Trustee shall authenticate a replacement Note if the Trustee’s
requirements are met.  Such Holder must provide an indemnity bond or
other indemnity, sufficient in the judgment of both the Issuer and the Trustee,
to protect the Issuer, the Trustee or any Agent from any loss which any of them
may suffer if a Note is replaced.  The Issuer may charge such Holder
for its reasonable out-of-pocket expenses in replacing a Note pursuant to this
Section 2.07, including reasonable fees and expenses of counsel and of the
Trustee.

       

      Every
replacement Note is an additional obligation of the Issuer and every replacement
Note Guarantee shall constitute an additional obligation of the Guarantor
thereof.

       

      The
provisions of this Section 2.07 are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of lost, destroyed or wrongfully taken Notes.

       

      
        	
                SECTION 2.08.

              	
                Outstanding
      Notes.

              

      

       

      Notes
outstanding at any time are all the Notes that have been authenticated by the
Trustee except those cancelled by it, those delivered to it for cancellation and
those described in this Section as not outstanding.  A Note does
not cease to be outstanding because the Issuer, the Guarantors or any of their
respective Affiliates hold the Note (subject to the provisions of
Section 2.09).

       

      If a Note
is replaced pursuant to Section 2.07 (other than a mutilated Note
surrendered for replacement), it ceases to be outstanding unless a Responsible
Officer of the Trustee receives proof satisfactory to it that the replaced Note
is held by a bona fide
purchaser.  A mutilated Note ceases to be outstanding upon surrender
of such Note and replacement thereof pursuant to Section 2.07.

       

      If the
principal amount of any Note is considered paid under Section 6.01, it
ceases to be outstanding and interest ceases to accrue.  If on a
Redemption Date or the Maturity Date the Trustee or Paying Agent (other than the
Issuer or an Affiliate thereof) holds U.S. Legal Tender or U.S. Government
Obligations sufficient to pay all of the principal and interest due on the Notes
payable on that date, then on and after that date such Notes cease to be
outstanding and interest on them ceases to accrue.

      
        
           

        

        
          -44-

          
            

          

        

        
           

        

      

       

      
        	
                SECTION 2.09.

              	
                Treasury
      Notes.

              

      

       

      In
determining whether the Holders of the required principal amount of Notes have
concurred in any direction, waiver or consent, Notes owned by the Issuer or any
of its Affiliates shall be disregarded, except that, for the purposes of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Notes that a Responsible Officer of the
Trustee actually knows are so owned shall be disregarded.

       

      
        	
                SECTION 2.10.

              	
                Temporary
      Notes.

              

      

       

      Until
definitive Notes are ready for delivery, the Issuer may prepare and the Trustee
shall authenticate temporary Notes.  Temporary Notes shall be
substantially in the form of definitive Notes but may have variations that the
Issuer considers appropriate for temporary Notes.  Without
unreasonable delay, the Issuer shall prepare and the Trustee shall authenticate
definitive Notes in exchange for temporary Notes.  Until such
exchange, temporary Notes shall be entitled to the same rights, benefits and
privileges as definitive Notes.  Notwithstanding the foregoing, so
long as the Notes are represented by a Global Note, such Global Note may be in
typewritten form.

       

      
        	
                SECTION 2.11.

              	
                Cancellation.

              

      

       

      The
Issuer at any time may deliver Notes to the Trustee for
cancellation.  The Registrar and the Paying Agent shall forward to the
Trustee any Notes surrendered to them for transfer, exchange or
payment.  The Trustee, or at the direction of the Trustee, the
Registrar or the Paying Agent (other than the Issuer or a Subsidiary), and no
one else, shall cancel and, at the written direction of the Issuer, shall
dispose of all Notes surrendered for transfer, exchange, payment or cancellation
in accordance with its customary procedures.  Subject to
Section 2.07, the Issuer may not issue new Notes to replace Notes that it
has paid or delivered to the Trustee for cancellation.  If the Issuer
or any Guarantor shall acquire any of the Notes, such acquisition shall not
operate as a redemption or satisfaction of the Indebtedness represented by such
Notes unless and until the same are surrendered to the Trustee for cancellation
pursuant to this Section 2.11.

       

      
        	
                SECTION 2.12.

              	
                Defaulted
      Interest.

              

      

       

      If the
Issuer defaults in a payment of interest on the Notes, it shall pay the
defaulted interest, plus (to the extent lawful) any interest payable on the
defaulted interest, in any lawful manner.  The Issuer may pay the
defaulted interest to the persons who are Holders on a subsequent special record
date, which date shall be the fifteenth day next preceding the date fixed by the
Issuer for the payment of defaulted interest or the next succeeding Business Day
if such date is not a Business Day.  At least 15 days before any such
subsequent special record date, the Issuer shall mail to each Holder, with a
copy to the Trustee, a notice that states the subsequent special record date,
the payment date and the amount of defaulted interest, and interest payable on
such defaulted interest, if any, to be paid.

      
        
           

        

        
          -45-

          
            

          

        

        
           

        

      

       

      
        	
                SECTION 2.13.

              	
                Cusip
      Numbers.

              

      

       

      The
Issuer in issuing the Notes may use “CUSIP” numbers, and if so, the Trustee
shall use the “CUSIP” numbers in notices of redemption or exchange as a
convenience to Holders; provided, however, that any such notice
may state that no representation is made as to the correctness or accuracy of
the “CUSIP” numbers printed in the notice or on the Notes, and that reliance may
be placed only on the other identification numbers printed on the
Notes.  The Issuer will promptly notify the Trustee of any change in
the “CUSIP” numbers.

       

      
        	
                SECTION 2.14.

              	
                Deposit of
      Moneys.

              

      

       

      Subject
to Section 2 of the Notes, prior to 11:00 a.m. New York City time
on each Interest Payment Date, Maturity Date, Redemption Date, Fundamental
Change of Control Payment Date, Conversion Payment Date, Conversion Termination
Date and Net Proceeds Payment Date, the Issuer shall have deposited with the
Paying Agent in immediately available funds money sufficient to make cash
payments, if any, due on such Interest Payment Date, Maturity Date, Redemption
Date, Fundamental Change of Control Payment Date, Conversion Payment Date,
Conversion Termination Date and Net Proceeds Payment Date, as the case may be,
in a timely manner which permits the Paying Agent to remit payment to the
Holders on such Interest Payment Date, Maturity Date, Redemption Date,
Fundamental Change of Control Payment Date, Conversion Payment Date, Conversion
Termination Date and Net Proceeds Payment Date, as the case may be.

       

      
        	
                SECTION 2.15.

              	
                Book-Entry Provisions
      for Global Notes.

              

      

       

      (a)           General.  The
Global Notes initially shall (i) be registered in the name of the
Depositary or the nominee of such Depositary, (ii) be delivered to the
Trustee as custodian for such Depositary and (iii) bear legends as set
forth in Exhibit C, as
applicable.

       

      Members
of, or participants in, the Depositary (“Participants”) shall have no
rights under this Indenture with respect to any Global Note held on their behalf
by the Depositary, or the Trustee as its custodian, or under the Global Note,
and the Depositary may be treated by the Issuer, the Trustee and any agent of
the Issuer or the Trustee as the absolute owner of the Global Note for all
purposes whatsoever.  Notwithstanding the foregoing, nothing herein
shall prevent the Issuer, the Trustee or any agent of the Issuer or the Trustee
from giving effect to any written certification, proxy or other authorization
furnished by the Depositary or impair, as between the Depositary and
Participants, the operation of customary practices governing the exercise of the
rights of a Holder of any Note.

      
        
           

        

        
          -46-

          
            

          

        

        
           

        

      

      (b)          Global
Notes.  Transfers of Global Notes shall be limited to transfers
in whole, but not in part, to the Depositary, its successors or their respective
nominees.  Interests of beneficial owners in the Global Notes may be
transferred or exchanged for Physical Notes in accordance with the rules and
procedures of the Depositary and the provisions of Section 2.16; provided, that in no event
shall a beneficial interest in a Global Note be credited, or a Physical Note
which is not a Restricted Security be issued, to a Person who is an affiliate
(as defined in Rule 144 under the Securities Act) of the
Issuer.  In addition, Physical Notes shall be transferred to all
beneficial owners in exchange for their beneficial interests in Global Notes if
(i) the Depositary notifies the Issuer that it is unwilling or unable to
act as Depositary for any Global Note, the Issuer so notifies the Trustee in
writing and a successor Depositary is not appointed by the Issuer within 90 days
of such notice or (ii) the Issuer, at its option, and subject to the
procedures of the Depositary, notifies the Trustee in writing that it elects to
cause the issuance of the Notes in the form of Physical Notes under this
Indenture.  Upon any issuance of a Physical Note in accordance with
this Section 2.15(b) the Trustee is required to register such Physical Note
in the name of, and cause the same to be mailed to, such person or persons (or
the nominee of any thereof).  All such Physical Notes shall bear the
applicable legends, if any.

       

      (c)          Transfer or Exchange of a
Position of the Beneficial Interest in a Global Note.  In
connection with any transfer or exchange of a portion of the beneficial interest
in a Global Note to beneficial owners pursuant to paragraph (b) of this
Section 2.15, the Registrar shall (if one or more Physical Notes are to be
issued) reflect on its books and records the date and a decrease in the
principal amount of such Global Note in an amount equal to the principal amount
of the beneficial interest in the Global Note to be transferred, and the Issuer
shall execute, and the Trustee shall authenticate and deliver, one or more
Physical Notes of authorized denominations in an aggregate principal amount
equal to the principal amount of the beneficial interest in the Global Note so
transferred.

       

      (d)          Transfer of a Global Note as
an Entirety.  In connection with the transfer of a Global Note
as an entirety to beneficial owners pursuant to paragraph (b) of this
Section 2.15, such Global Note shall be deemed to be surrendered to the
Trustee for cancellation, and (i) the Issuer shall execute, (ii) the
Guarantors shall execute notations of Note Guarantees on and (iii) the
Trustee shall upon written instructions from the Issuer authenticate and
deliver, to each beneficial owner identified by the Depositary in exchange for
its beneficial interest in such Global Note, an equal aggregate principal amount
of Physical Notes of authorized denominations.

       

      (e)          Physical
Notes.  Any Physical Note constituting a Restricted Security
delivered in exchange for an interest in a Global Note pursuant to paragraph (b)
or (c) of this Section 2.15 shall, except as otherwise provided by
Section 2.16, bear the Private Placement Legend.

       

      (f)           Proxies.  The
Holder of any Global Note may grant proxies and otherwise authorize any Person,
including Participants and Persons that may hold interests through Participants,
to take any action which a Holder is entitled to take under this Indenture or
the Notes.

       

      
        	
                SECTION 2.16.

              	
                Special Transfer and
      Exchange Provisions.

              

      

       

      (a)          Transfers to Non-QIB
Institutional Accredited Investors.  The following provisions
shall apply with respect to the registration of any proposed transfer of a
Restricted Security to any Institutional Accredited Investor which is not a
QIB:

      
        
           

        

        
          -47-

          
            

          

        

        
           

        

      

      (i)           The
Registrar shall register the transfer of any Restricted Security, whether or not
such Note bears the Private Placement Legend, if (x) the requested transfer
is after the expiration of the applicable holding period with respect thereto
set forth in Rule 144(d) of the Securities Act; provided, however, that neither the
Issuer nor any Affiliate of the Issuer has held any beneficial interest in such
Note, or portion thereof, at any time on or prior to the expiration of the
applicable holding period with respect thereto set forth in Rule 144(d) of the
Securities Act or (y) the proposed transferee has delivered to the
Registrar a certificate substantially in the form of Exhibit E hereto
and any legal opinions and certifications as may be reasonably requested by the
Trustee and the Issuer;

       

      (ii)           If
the proposed transferee is a Participant and the Notes to be transferred consist
of Physical Notes which after transfer are to be evidenced by an interest in the
IAI Global Note, upon receipt by the Registrar of the Physical Note and
(x) written instructions given in accordance with the Depositary’s and the
Registrar’s procedures and (y) the certificate, if required, referred to in
clause (y) of paragraph (i) above (and any legal opinion or other
certifications), the Registrar shall register the transfer and reflect on its
books and records the date and an increase in the principal amount of the IAI
Global Note in an amount equal to the principal amount of Physical Notes to be
transferred, and the Registrar shall cancel the Physical Notes so transferred;
and

       

      (iii)           If
the proposed transferor is a Participant seeking to transfer an interest in a
Global Note, upon receipt by the Registrar of (x) written instructions
given in accordance with the Depositary’s and the Registrar’s procedures and
(y) the certificate, if required, referred to in clause (y) of
paragraph (i) above, the Registrar shall register the transfer and reflect
on its books and records the date and (A) a decrease in the principal
amount of the Global Note from which such interests are to be transferred in an
amount equal to the principal amount of the Notes to be transferred and
(B) an increase in the principal amount of the IAI Global Note in an amount
equal to the principal amount of the Notes to be transferred.

       

      (b)          Transfers to
QIBs.  The following provisions shall apply with respect to the
registration of any proposed transfer of a Restricted Security to a
QIB:

       

      (i)           The
Registrar shall register the transfer of any Restricted Security, whether or not
such Note bears the Private Placement Legend, if (x) the requested transfer
is after the expiration of the applicable holding period with respect thereto
set forth in Rule 144(d) of the Securities Act; provided, however, that neither the
Issuer nor any Affiliate of the Issuer has held any beneficial interest in such
Note, or portion thereof, at any time on or prior to the expiration of the
applicable holding period with respect thereto set forth in Rule 144(d) of the
Securities Act or (y) such transfer is being made by a proposed transferor
who has checked the box provided for on the applicable Global Note stating, or
has otherwise advised the Issuer and the Registrar in writing, that the sale has
been made in compliance with the provisions of Rule 144A to a transferee who has
signed the certification provided for on the applicable Global Note stating, or
has otherwise advised the Issuer and the Registrar in writing, that it is
purchasing the Note for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a QIB
within the meaning of Rule 144A, and is aware that the sale to it is being made
in reliance on Rule 144A and acknowledges that it has received such information
regarding the Issuer as it has requested pursuant to Rule 144A or has determined
not to request such information and that it is aware that the transferor is
relying upon its foregoing representations in order to claim the exemption from
registration provided by Rule 144A;

      
        
           

        

        
          -48-

          
            

          

        

        
           

        

      

       

      (ii)           If
the proposed transferee is a Participant and the Notes to be transferred consist
of Physical Notes which after transfer are to be evidenced by an interest in the
144A Global Note, upon receipt by the Registrar of the Physical Note and written
instructions given in accordance with the Depositary’s and the Registrar’s
procedures, the Registrar shall register the transfer and reflect on its book
and records the date and an increase in the principal amount of the 144A Global
Note in an amount equal to the principal amount of Physical Notes to be
transferred, and the Registrar shall cancel the Physical Notes so transferred;
and

       

      (iii)           If
the proposed transferor is a Participant seeking to transfer an interest in the
IAI Global Note or the Regulation S Global Note, upon receipt by the
Registrar of written instructions given in accordance with the Depositary’s and
the Registrar’s procedures, the Registrar shall register the transfer and
reflect on its books and records the date and (A) a decrease in the
principal amount of the IAI Global Note or the Regulation S Global Note, as
the case may be, in an amount equal to the principal amount of the Notes to be
transferred and (B) an increase in the principal amount of the 144A Global
Note in an amount equal to the principal amount of the Notes to be
transferred.

       

      (c)          Transfers of Interests in
the Temporary Regulation S Global Note.  The following
provisions shall apply with respect to the registration of any proposed transfer
of interests in the Temporary Regulation S Global Note:

       

      (i)           The
Registrar shall register the transfer of an interest in the Temporary
Regulation S Global Note, whether or not such Global Note bears the Private
Placement Legend if the proposed transferor has delivered to the Registrar a
certificate substantially in the form of Exhibit E
stating, among other things, that the proposed transferee is a Non-U.S. Person
(except for a transfer to a Purchaser Party);

       

      (ii)           If
the proposed transferee is a Participant, upon receipt by the Registrar of the
documents referred to in clause (i)(x) above, if required, and instructions
given in accordance with the Depositary’s and the Registrar’s procedures, the
Registrar shall reflect on its books and records the date and amount of such
transfer of an interest in the Temporary Regulation S Global
Note.

       

      (d)          Transfers to Non-U.S.
Persons.  The following provisions shall apply with respect to
any transfer of a Restricted Security to a Non-U.S. Person under Regulation
S:

       

      (i)           The
Registrar shall register any proposed transfer of a Restricted Security to a
Non-U.S. Person upon receipt of a certificate substantially in the form of Exhibit F from
the proposed transferor and such certifications, legal opinions and other
information as the Trustee or the Issuer may reasonably request;
and

      
        
           

        

        
          -49-

          
            

          

        

        
           

        

      

       

      (ii)           (a)
If the proposed transferor is a Participant holding a beneficial interest in the
Rule 144A Global Note or the IAI Global Note or the Note to be transferred
consists of Physical Notes, upon receipt by the Registrar of (x) the
documents required by paragraph (i) and (y) instructions in accordance
with the Depositary’s and the Registrar’s procedures, the Registrar shall
reflect on its books and records the date and a decrease in the principal amount
of the Rule 144A Global Note or the IAI Global Note, as the case may be, in an
amount equal to the principal amount of the beneficial interest in the Rule 144A
Global Note or the IAI Global Note, as the case may be, to be transferred or
cancel the Physical Notes to be transferred, and (b) if the proposed
transferee is a Participant, upon receipt by the Registrar of instructions given
in accordance with the Depositary’s and the Registrar’s procedures, the
Registrar shall reflect on its books and records the date and an increase in the
principal amount of the Permanent Regulation S Global Note in an amount
equal to the principal amount of the Rule 144A Global Note, the IAI Global Note
or the Physical Notes, as the case may be, to be transferred.

       

      (e)           Restrictions on Transfer and
Exchange of Global Notes.  Notwithstanding any other provisions
of this Indenture, a Global Note may not be transferred as a whole except by the
Depositary to a nominee of the Depositary or by a nominee of the Depositary to
the Depositary or another nominee of the Depositary or by the Depositary or any
such nominee to a successor Depositary or a nominee of such successor
Depositary.

       

      (f)           Private Placement
Legend.  Upon the transfer, exchange or replacement of Notes
not bearing the Private Placement Legend unless otherwise required by applicable
law, the Registrar shall deliver Notes that do not bear the Private Placement
Legend.  Upon the transfer, exchange or replacement of Notes bearing
the Private Placement Legend, the Registrar shall deliver only Notes that bear
the Private Placement Legend unless (i) there is delivered to the Trustee
an Opinion of Counsel reasonably satisfactory to the Issuer and the Trustee to
the effect that neither such legend nor the related restrictions on transfer are
required in order to maintain compliance with the provisions of the Securities
Act or (ii) such Note has been offered and sold (including pursuant to the
Shelf Registration Statement) pursuant to an effective registration statement
under the Securities Act.

       

      (g)           General.  By
its acceptance of any Note bearing the Private Placement Legend, each Holder of
such a Note acknowledges the restrictions on transfer of such Note set forth in
this Indenture and in the Private Placement Legend and agrees that it will
transfer such Note only as provided in this Indenture.

       

      The
Registrar shall retain copies of all letters, notices and other written
communications received pursuant to Section 2.15 or Section 2.16 as
long as there are any Notes outstanding.  The Issuer shall have the
right to inspect and make copies of all such letters, notices or other written
communications at any reasonable time upon the giving of reasonable written
notice to the Registrar.

      
        
           

        

        
          -50-

          
            

          

        

        
           

        

      

      The
Trustee shall have no obligation or duty to monitor, determine or inquire as to
compliance with any restrictions on transfer imposed under this Indenture or
under applicable law with respect to any transfer of any interest in any Note
(including any transfers between or among Depositary Participants or beneficial
owners of interests in any Global Note) other than to require delivery of such
certificates and other documentation or evidence as are expressly required by,
and to do so if and when expressly required by the terms of, this Indenture, and
to examine the same to determine substantial compliance as to form with the
express requirements hereof.

       

      The
Trustee shall have no responsibility for the actions or omissions of the
Depositary, or the accuracy of the books and records of the
Depositary.

       

      (h)           Cancellation and/or
Adjustment of Global Note.  At such time as all beneficial
interests in a particular Global Note have been exchanged for Physical Notes or
a particular Global Note has been redeemed, repurchased or canceled in whole and
not in part, each such Global Note shall be returned to or  retained
and canceled by the Trustee in accordance with Section 2.11
hereof.  At any time prior to such cancellation, if any beneficial
interest in a Global Note is exchanged for or transferred to a Person who will
take delivery thereof in the form of a beneficial interest in another Global
Note or for Physical Notes, the principal amount of Notes represented by such
Global Note shall be reduced accordingly and an endorsement shall be made on
such Global Note by the Trustee or by the Depositary at the direction of the
Trustee to reflect such reduction; and if the beneficial interest is being
exchanged for or transferred to a Person who will take delivery thereof in the
form of a beneficial interest in another Global Note, such other Global Note
shall be increased accordingly and an endorsement shall be made on such Global
Note by the Trustee or by the Depositary at the direction of the Trustee to
reflect such increase.

       

      (i)           Automatic Exchange from
Global Note Constituting a Restricted Security or Physical Note Constituting a
Restricted Security to Global Note Which Is Not a Restricted
Security.  At the option of the Issuer and upon compliance with
the following procedures, beneficial interests in a Global Note constituting a
Restricted Security or Physical Note constituting a Restricted Security shall be
exchanged for beneficial interests in a Global Note, which is not a Restricted
Security.  In order to effect such exchange, the Issuer shall provide
written notice to the Trustee instructing the Trustee to (i) direct the
depositary to transfer the specified amount of the outstanding beneficial
interests in a particular Global Note constituting a Restricted Security or
Physical Note constituting a Restricted Security to a Global Note, which is not
a Restricted Security, and provide the depositary with all such information as
is necessary for the depositary to appropriately credit and debit the relevant
Holder accounts and (ii) provide prior written notice to all Holders of the
applicable Global Note constituting a Restricted Security or Physical Note
constituting a Restricted Security of such exchange, which notice must include
the date such exchange is proposed to occur, the CUSIP number of the relevant
Global Note constituting a Restricted Security or Physical Note constituting a
Restricted Security and the CUSIP number of the Global Note, which is not a
Restricted Security, into which such Holders’ beneficial interests will be
exchanged.  As a condition to any such exchange pursuant to this
Section 2.16(i), the Trustee shall be entitled to receive from the Issuer, and
rely upon conclusively without any liability, an Officers’ Certificate and an
Opinion of Counsel to the Issuer, in form and in substance reasonably
satisfactory to the Trustee, to the effect that such transfer of beneficial
interests to the Global Note, which is not a Restricted Security, shall be
affected in compliance with the Securities Act.  The Issuer may
request from Holders such information it reasonably determines is required in
order to be able to deliver such Officers’ Certificate and Opinion of
Counsel.  Upon such exchange of beneficial interests pursuant to this
Section 2.16(i), the Registrar shall reflect on its books and records the date
of such transfer and a decrease and increase, respectively, in the principal
amount of the applicable Global Note constituting a Restricted Security or
Physical Note constituting a Restricted Security and the Global Note, which is
not a Restricted Security, respectively, equal to the principal amount of
beneficial interests transferred.  Following any such transfer
pursuant to this Section 2.16(i) of all of the beneficial interests in a Global
Note constituting a Restricted Security or Physical Note constituting a
Restricted Security, such Global Note constituting a Restricted Security or
Physical Note constituting a Restricted Security shall be
cancelled.

      
        
           

        

        
          -51-

          
            

          

        

        
           

        

      

       

      (j)          Transfer of Securities Held
by Affiliates.  Notwithstanding anything to the contrary in
this Section 2.16 any certificate (i) evidencing a Note that has been
transferred to an Affiliate (as defined in Rule 405 of the Securities Act) of
the Issuer, as evidenced by a notation on the certificate of transfer or
certificate of exchange for such transfer or in the representation letter
delivered in respect thereof, or (ii) evidencing a Note that has been acquired
from an Affiliate (other than by an Affiliate) in a transaction or a chain of
transactions not involving any public offering, as evidenced by a notation on
the certificate of transfer or certificate of exchange for such transfer or in
the representation letter delivered in respect thereof, shall, until one year
after the last date on which either the Issuer or any Affiliate of the Issuer
was an owner of such Note, in each case, be in the form of a permanent Physical
Note and bear the Private Placement Legend subject to the restrictions in this
Section 2.16.  The Registrar shall retain copies of all letters,
notices and other written communications received pursuant to this Section
2.16(j).  The Issuer, at its sole cost and expense, shall have the
right to inspect and make copies of all such letters, notices or other written
communications at any reasonable time upon the giving of reasonable advance
written notice to the Trustee.

       

      ARTICLE THREE

       

      PURCHASE
AT OPTION OF HOLDERS UPON

      A
FUNDAMENTAL CHANGE OF CONTROL

       

      
        	
                SECTION 3.01.

              	
                Purchase at the Option
      of Holders upon a Fundamental Change of Control.

              

      

       

      (a)          Generally. If there
shall occur a Fundamental Change of Control at any time prior to the Maturity
Date of the Notes, then each Holder shall have the right, at such Holder’s
option, to require the Issuer to purchase all of such Holder’s Notes, or any
portion thereof in principal amount that is equal to $1,000 or an integral
multiple thereof, on a date specified by the Issuer that is not less than 25
Business Days nor more than 30 Business Days after the Fundamental Change of
Control, subject to extension to comply with applicable law (the “Fundamental Change of Control
Purchase Date”), at a purchase price in cash equal to 100% of the
principal amount thereof, together with accrued and unpaid interest thereon to,
but excluding, the Fundamental Change of Control Purchase Date (the “Fundamental Change of Control
Purchase Price”), subject to the satisfaction by the Holder of the
requirements set forth in Section 3.01(c); provided, however, if the
Fundamental Change of Control Purchase Date occurs after a Record Date and on or
prior to the Interest Payment Date to which it relates, the Issuer will pay
accrued and unpaid interest to the Holder of record as of the corresponding
Record Date and the Fundamental Change of Control Purchase Price payable to the
Holder of such Note will be 100% of the principal amount of such
Note.

      
        
           

        

        
          -52-

          
            

          

        

        
           

        

      

       

      (b)          Delivery of Fundamental Change of
Control Issuer Notice. On or before the 5th calendar day after the
occurrence of a Fundamental Change of Control, the Issuer shall deliver or cause
to be delivered to all Holders of record of the Notes as of such date at their
addresses shown in the register for the Notes a notice as set forth in
Section 3.02 (the “Fundamental Change of
Control Issuer Notice”) with respect
to such Fundamental Change of Control.  The Issuer shall also deliver
a copy of the Fundamental Change of Control Issuer Notice to the Trustee, the
Conversion Agent and the Paying Agent at such time as it is mailed to Holders of
Notes.  Simultaneously with providing such Fundamental Change of
Control Issuer Notice, the Issuer shall publicly announce the relevant
information through a reputable national newswire in the United States, file
such press release with the SEC on Form 8-K and make such information available
on the Issuer’s website.

       

      No
failure of the Issuer to give the foregoing notices and no defect therein shall
limit any Holder’s purchase rights or affect the validity of the proceedings for
the purchase of the Notes pursuant to this Section 3.01.

       

      (c)          Delivery of Fundamental
Change of Control Purchase Notice By Holders. For Notes to be purchased
at the option of the Holder, the Holder must deliver to the Paying Agent, at any
time after the occurrence of the Fundamental Change of Control and prior to
Close of Business, on the Business Day immediately preceding the Fundamental
Change of Control Purchase Date,

       

      (i)           A
duly completed notice (the “Fundamental Change of Control
Purchase Notice”) in the form set forth on Exhibit I
hereto, which must specify:

       

      (1)           If
the Notes are Physical Notes, the certificate numbers of the Holder’s Notes to
be delivered for purchase or if such Notes are not Physical Notes, the Holder’s
notice must comply with the appropriate procedures of the Depositary and its
direct and indirect participants;

       

      (2)           The
portion of the principal amount of the Holder’s Notes to be purchased, which
must be $1,000 or an integral multiple thereof; and

       

      (3)           That
the Holder’s Notes are to be purchased by the Issuer pursuant to the applicable
provisions of the Notes and this Indenture.

       

      (4)           Delivery
or book-entry transfer of the Notes to the Trustee (or other Paying Agent
appointed by the Issuer) at any time after delivery of the Fundamental Change of
Control Purchase Notice (together with all necessary endorsements) at the
applicable Corporate Trust Office of the Trustee (or other Paying Agent
appointed by the Issuer), such delivery being a condition to receipt by the
Holder of the Fundamental Change of Control Purchase Price therefor; provided, that such
Fundamental Change of Control Purchase Price shall be so paid pursuant to this
Section 3.01 only if the Notes so delivered to the Trustee (or other Paying
Agent appointed by the Issuer) shall conform in all respects to the description
thereof in the related Fundamental Change of Control Purchase Notice and no
written notice of withdrawal in accordance and complying with Section 3.03
shall have been received by the Paying Agent at any time prior to the Close of
Business on the Business Day immediately preceding the Fundamental Change of
Control Purchase Date.

      
        
           

        

        
          -53-

          
            

          

        

        
           

        

      

       

      All
questions as to the validity, eligibility (including time of receipt) and
acceptance of Notes for purchase shall be determined by the Issuer, whose
determination shall be final and binding absent manifest error.  The
Issuer shall purchase from the Holder thereof, pursuant to this
Section 3.01, a portion of a Note, if the principal amount of such portion
is $1,000 or an integral multiple thereof. Provisions of this Indenture that
apply to the purchase of all of a Note shall apply to the purchase of such
portion of such Note.  The Paying Agent shall promptly notify the
Issuer of the receipt by it of any Fundamental Change of Control Purchase Notice
or written notice of withdrawal thereof.

       

      (d)          No Payment During Events of
Default.  Notwithstanding the foregoing, no Notes may be
purchased by the Issuer at the option of the Holders pursuant to this
Section 3.01 if an Event of Default has occurred and is continuing other
than an Event of Default that is cured by the payment of the Fundamental Change
of Control Purchase Price on the Fundamental Change of Control Purchase
Date.

       

      Any
purchase by the Issuer contemplated pursuant to the provisions of this
Section 3.01 shall be consummated by the delivery to the Trustee of the
consideration to be received by the Holder promptly following the later of the
Fundamental Change of Control Purchase Date or the time of the book-entry
transfer or delivery of the Notes.

       

      
        	
                SECTION 3.02.

              	
                Fundamental Change of
      Control Issuer Notice.

              

      

       

      (a)          The Fundamental Change of
Control Issuer Notice.  The Fundamental Change of Control
Issuer Notice shall:

       

      (i)           State
the Fundamental Change of Control Purchase Price including the amount of
interest accrued and unpaid per $1,000 principal amount of Notes to, but
excluding, the Fundamental Change of Control Purchase Date and the Fundamental
Change of Control Purchase Date to which the Fundamental Change of Control
Issuer Notice relates;

       

      (ii)          State
the event constituting the Fundamental Change of Control and the Effective Date
of the Fundamental Change of Control;

       

      (iii)         State
whether the Fundamental Change of Control Purchase Price will be paid in
cash;

       

      (iv)        State
that Holders must exercise their right to elect purchase prior to Close of
Business on the Business Day immediately preceding the Fundamental Change of
Control Purchase Date by sending a Fundamental Change of Control Purchase Notice
to the Paying Agent;

       

      (v)         State
the name and address of the Paying Agent;

      
        
           

        

        
          -54-

          
            

          

        

        
           

        

      

       

      (vi)        State
that Notes must be surrendered to the Paying Agent to collect the Fundamental
Change of Control Purchase Price;

       

      (vii)       State
that a Holder may withdraw its Fundamental Change of Control Purchase Notice in
whole or in part at any time prior to Close of Business on the Business Day
immediately preceding the Fundamental Change of Control Purchase Date by
delivering a valid written notice of withdrawal in accordance with
Section 3.03;

       

      (viii)      State
that the Notes are then convertible, the Conversion Rate and any adjustments to
the Conversion Rate resulting from the Fundamental Change of Control transaction
(pursuant to Section 3.01) and expected changes in cash, shares or other
property deliverable upon conversion of the Notes as a result of the occurrence
of the Fundamental Change of Control;

       

      (ix)         State
that if Notes are converted in connection with a Fundamental Change of Control
(rather than repurchased) a Holder shall be entitled to receive Additional
Shares and a Make Whole Payment (as defined in Section 5.07(b) and
Section 5.07(f));

       

      (x)          State
the number of Additional Shares and Make Whole Payment that would be payable as
a result of such Fundamental Change of Control transaction, if any, if the Notes
are converted in connection with such Fundamental Change of  Control
(rather than repurchased);

       

      (xi)         State
that for Notes to be converted in connection with a Fundamental Change of
Control, Notes must be converted at any time on or after the Effective Date of
the Fundamental Change of Control but prior to the Close of Business on the
Fundamental Change of Control Purchase Date;

       

      (xii)        State
that Notes as to which a Fundamental Change of Control Purchase Notice has been
given by a Holder may be converted and the Additional Shares and Make Whole
Payment received only if a Fundamental Change of Control Purchase Notice is not
given or is withdrawn in accordance with the terms of this Indenture;
and

       

      (xiii)       State
the CUSIP number of the Notes.

       

      (b)          Other
Matters.  A Fundamental Change of Control Issuer Notice may be
given by the Issuer or, at the Issuer’s request, the Trustee shall give such
Fundamental Change of Control Issuer Notice in the Issuer’s name and at the
Issuer’s expense; provided, that the text of
the Fundamental Change of Control Issuer Notice shall be prepared by the
Issuer.

       

      The
Issuer will, to the extent required, (i) comply with the provisions of
Rule 13e-4 and Rule 14e-1 (or any successor provision) and any other
tender offer rules under the Exchange Act that may be applicable at the time of
the purchase of the Notes, (ii) file the related Schedule TO (or any
successor schedule, form or report) under the Exchange Act and
(iii) otherwise comply with all federal and state securities laws so as to
permit the rights and obligations under Section 3.01 to be exercised in the
time and in the manner specified in Section 3.01.

      
        
           

        

        
          -55-

          
            

          

        

        
           

        

      

       

      Notwithstanding
the foregoing, the Issuer will not be required to make an offer to purchase the
Notes pursuant to this Article Three after the Maturity Date or after the
Conversion Termination Date.

       

      No
failure of the Issuer to give the foregoing notices and no defect therein shall
limit any Holder’s purchase rights or affect the validity of the proceedings for
the purchase of Notes pursuant to this Section 3.02.

       

      
        	
                SECTION 3.03.

              	
                Effect of Fundamental
      Change of Control Purchase Notice; Withdrawal.

              

      

       

      (a)          Right to Receive Fundamental
Change of Control Purchase Price.  Upon receipt by the Paying
Agent of the Fundamental Change of Control Purchase Notice specified in
Section 3.01(c), the Holder of the Notes in respect of which such
Fundamental Change of Control Purchase Notice was given shall (unless such
Fundamental Change of Control Purchase Notice is validly withdrawn in accordance
with Section 3.03(b)) thereafter be entitled to receive solely the
Fundamental Change of Control Purchase Price with respect to such
Notes.  Such Fundamental Change of Control Purchase Price shall be
paid to such Holder, subject to receipt of funds and/or the Notes by the Paying
Agent, promptly following the later of (x) the Fundamental Change of
Control Purchase Date with respect to such Notes (provided the Holder has
satisfied the conditions in Section 3.01(a)) and (y) the time of
book-entry transfer or delivery of such Notes to the Paying Agent by the Holder
thereof in the manner required by Section 3.01.  The Notes in
respect of which a Fundamental Change of Control Purchase Notice has been given
by the Holder thereof may not be converted pursuant to Article Five hereof
on or after the date of delivery of such Fundamental Change of Control Purchase
Notice unless such Fundamental Change of Control Purchase Notice has first been
validly withdrawn pursuant to Section 3.03(b).

       

      (b)          Withdrawal of Fundamental
Change of Control Purchase Notice.  A Fundamental Change of
Control Purchase Notice may be withdrawn (in whole or in part) by means of a
written notice of withdrawal delivered to the Paying Agent at any time prior to
Close of Business time on the Business Day immediately preceding the Fundamental
Change of Control Purchase Date, specifying:

       

      (i)           If
the Notes are Physical Notes, the certificate numbers of the withdrawn Notes, or
if such Notes are not Physical Notes, the notice must comply with appropriate
procedures of the Depositary and its direct and indirect
participants;

       

      (ii)          The
principal amount of the Notes with respect to which notice of withdrawal is
being submitted, which must be $1,000 or integral multiples thereof;
and

       

      (iii)         The
principal amount, if any, of such Notes which remains subject to the original
Fundamental Change of Control Purchase Notice and which has been or will be
delivered for purchase by the Issuer, which must be $1,000 or integral multiples
thereof.

       

      If a
Fundamental Change of Control Purchase Notice is properly withdrawn, the Issuer
shall not be obligated to purchase the Notes  listed on the
Fundamental Change of Control Purchase Notice nor pay the Fundamental Change of
Control Purchase Price therefor.

      
        
           

        

        
          -56-

          
            

          

        

        
           

        

      

       

      
        	
                SECTION 3.04.

              	
                Deposit of Fundamental
      Change of Control Purchase Price.

              

      

       

      (a)          Deposit of
Funds.  No later than 11:00 a.m. New York City time
on the Fundamental Change of Control Purchase Date, the Issuer shall deposit
with the Paying Agent (or, if the Issuer or a Subsidiary or an Affiliate of
either of them is acting as the Paying Agent, shall segregate and hold in trust
as provided herein) an amount in cash (in immediately available funds if
deposited on such Fundamental Change of Control Purchase Date) sufficient to pay
the Fundamental Change of Control Purchase Price, of all the Notes or portions
thereof that are to be purchased as of the Fundamental Change of Control
Purchase Date.  The Issuer shall promptly notify the Trustee in
writing of the amount of any deposits of cash made pursuant to this
Section 3.04.  The Issuer shall be entitled to make any deposit
of funds contemplated by this Section 3.04 under arrangements designed to
permit such funds to generate interest or other income for the Issuer, and the
Issuer shall be entitled to receive all interest and other income earned by any
funds while such funds shall be deposited as contemplated by this
Article Three, provided, that the Issuer
shall maintain on deposit funds sufficient to satisfy all payments which the
deposit arrangement shall have been established to satisfy.

       

      (b)          Interest shall cease to
Accrue.  If on the Fundamental Change of Control Purchase Date
the Paying Agent holds funds sufficient to pay the Fundamental Change of Control
Purchase Price of the Notes that Holders have elected to require the Issuer to
purchase in accordance with Section 3.01(a), then, as of the Fundamental
Change of Control Purchase Date, (i) such Notes will cease to be
outstanding and interest will cease to accrue thereon and (ii) all other
rights of the Holder in respect thereof will terminate (other than the right to
receive the Fundamental Change of Control Purchase Price and previously accrued
and unpaid interest upon delivery or transfer of such Notes).  This
will be the case whether or not book-entry transfer of the Notes has been made
or the Notes have been delivered to the Paying Agent.

       

      
        	
                SECTION 3.05.

              	
                Notes Purchased in
      Whole or in Part; Repayment to the Issuer.

              

      

       

      (a)          Notes Purchased in Whole or
in Part.  Any Note that is to be purchased, whether in whole or
in part, shall be surrendered at the office of the Paying Agent (with, if the
Issuer or the Trustee so requires, due endorsement by, or a written instrument
of transfer in form satisfactory to the Issuer and the Trustee duly executed by,
the Holder thereof or such Holder’s attorney duly authorized in writing) and the
Issuer shall execute and the Trustee shall authenticate and deliver to the
Holder of such Note, without service charge, a new Note or Notes, of any
authorized denomination as requested by such Holder in aggregate principal
amount equal to, and in exchange for, the portion of the principal amount of the
Note so surrendered which is not purchased; provided, that in no event
shall a Note of a principal amount of $1,000 or less be redeemed in
part.

       

      (b)          Repayment to the
Issuer.  The Paying Agent shall return to the Issuer any cash
that remains unclaimed, together with interest, if any, thereon, held by it for
the payment of the Fundamental Change of Control Purchase Price; provided, that to the extent
that the aggregate amount of cash deposited by the Issuer pursuant to
Section 3.04 exceeds the aggregate Fundamental Change of Control Purchase
Price of the Notes or portions thereof which the Issuer is obligated to purchase
as of the Fundamental Change of Control Purchase Date, then as soon as
practicable following the Fundamental Change of Control Purchase Date, the
Paying Agent shall return any such excess to the Issuer.

      
        
           

        

        
          -57-

          
            

          

        

        
           

        

      

       

      ARTICLE FOUR

       

      REDEMPTION

       

      
        	
                SECTION 4.01.

              	
                Redemption at the
      Option of the Issuer.

              

      

       

      (a)          Redemption at the Option of
the Issuer Following Conversion Termination Date.  Notes may
not be redeemed by the Issuer in whole or in part at any time, except as
provided in this Article Four.  On or after the Conversion
Termination Date, the Issuer may, at its option, redeem outstanding Notes, in
whole or in part, out of funds legally available therefor, at any time or from
time to time, subject to the notice provisions and provisions for partial
redemption described below, at a price (the “Redemption Price”) equal to
100% of  the principal amount thereof, plus accrued and unpaid
interest, if any, to, but excluding, the Conversion Termination Date, plus, the
Cash Conversion Amount, if any, in respect of the Notes to be redeemed; provided, that Notes subject
to redemption under this Article Four shall not include any Notes specified
for conversion pursuant to an Election Notice as described in
Section 5.08(c).  Subject to the Conversion Cap and
Section 4.02, the Issuer may elect to pay the Cash Conversion Amount, in
whole or in part, in shares of its Common Stock.

       

      (b)          Notice of
Redemption.  In case the Issuer shall desire to exercise the
right to redeem the Notes pursuant to this Section 4.01, it shall fix a
date for redemption, and it, or at its request (which request must be delivered
to the Trustee at least ten (10) Business Days prior to the date the
Trustee is requested to give notice as described below unless a shorter period
is agreed to by the Trustee) the Trustee in the name of and at the expense of
the Issuer, shall mail or cause to be mailed a notice of such redemption at
least fifteen (15) and not more than forty-five (45) days prior to the
Redemption Date to the Holders of the Notes to be redeemed.  In any
case, failure to give notice to a Holder or any defect in the notice to the
Holder of any Notes designated for redemption shall not affect the validity of
the proceedings for the redemption of any other Note.

       

      In
addition to any information required by law, each such notice of redemption
shall specify the following:

       

      (i)           The
principal amount of Notes to be redeemed,

       

      (ii)          The
date fixed for redemption;

       

      (iii)         The
Redemption Price at which such Notes are to be redeemed (including the Cash
Conversion Amount);

       

      (iv)       
 The place or places of payment, and that payment will be made upon
presentation and surrender of the physical certificate or certificates
representing such Notes;

      
        
           

        

        
          -58-

          
            

          

        

        
           

        

      

       

      (v)          That
the Redemption Price, will be paid as specified in said notice and whether the
Cash Conversion Amount will be paid in cash or in shares of Common Stock or a
combination of cash and shares of Common Stock, and if payable all or in part in
Common Stock, the method of calculating the amount of Common Stock to be
delivered on the applicable payment date;

       

      (vi)         That
interest on such Notes ceased to accrue as of the Conversion Termination Date in
accordance with this Indenture, and

       

      (vii)    
   The right to convert such Notes  expired on the
Conversion Termination Date in accordance with this Indenture.

       

      On or
prior to the date fixed for redemption specified in the notice of redemption
given as provided in this Section 4.01(b), the Issuer will deposit with a
bank or trust company having an office or agency in the Borough of Manhattan,
The City of New York and having a combined capital and surplus of at least
$50,000,000 (the “Deposit
Bank”) an amount in cash sufficient to redeem on the date fixed for
redemption all the Notes so called for redemption at the appropriate Redemption
Price, together with the Cash Conversion Amount, if any; provided, that if such
payment is made on the date fixed for redemption it must be received by the
Deposit Bank by 11:00 a.m. New York City time, on such
date.  The Issuer shall be entitled to make any deposit of funds
contemplated by this Section 4.01 under arrangements designed to permit
such funds to generate interest or other income for the Issuer, and the Issuer
shall be entitled to receive all interest and other income earned by any funds
while such funds shall be deposited as contemplated by this Article Four,
provided, that the
Issuer shall maintain on deposit funds sufficient to satisfy all payments which
the deposit arrangement shall have been established to satisfy. If the
conditions precedent to the disbursement of any funds deposited by the Issuer
pursuant to this Article Four shall not have been satisfied within two
years after the establishment of such funds, then (i) such funds shall be
returned to the Issuer upon its request, (ii) after such return, such funds
shall be free of any trust which shall have been impressed upon them,
(iii) the person entitled to the payment for which such funds shall have
been originally intended shall have the right to look only to the Issuer for
such payment, subject to applicable escheat laws, and (iv) the trustee
which shall have held such funds shall be relieved of any responsibility for
such funds upon the return of such funds to the Issuer.

       

      If fewer
than all the outstanding Notes are to be redeemed, Notes to be redeemed shall be
selected by the Issuer from outstanding Notes not previously called for
redemption by lot or pro rata (as near as may be) or by any other equitable
method determined by the Issuer in its sole discretion.

       

      (c)          Payment of Redemption
Price.  If notice of redemption has been given as above provided, on and after the
date fixed for redemption (unless the Issuer shall default in the payment of the
Redemption Price, together with the Cash Conversion Amount), such Notes shall be
deemed no longer outstanding and the Holders thereof shall have no right in
respect of such Notes except the right to receive the Redemption Price thereof
and the Cash Conversion Amount, if any.

      
        
           

        

        
          -59-

          
            

          

        

        
           

        

      

       

      If fewer
than all Notes represented by any certificate are redeemed, a new certificate
shall be issued representing the unredeemed Notes without cost to the Holder
thereof.

       

      
        	
                SECTION 4.02.

              	
                Payment of Cash
      Conversion Amount in Shares of Common Stock.

              

      

       

      Subject
to the Conversion Cap, the Issuer may elect to pay the Cash Conversion Amount by
delivery of shares of its Common Stock if and only if the conditions of
Section 5.08(f) have been satisfied.

       

      
        	
                SECTION 4.03.

              	
                No other Redemption
      Rights.

              

      

       

      No
sinking fund, mandatory redemption or other similar provision shall apply to the
Notes.

       

      ARTICLE FIVE

       

      CONVERSION

       

      
        	
                SECTION 5.01.

              	
                Right to
      Convert.

              

      

       

      (a)          Conversion.  Subject
to and upon compliance with the provisions of this Indenture, each Holder shall
have the right, at such Holder’s option, at any time to convert the principal
amount of its Notes, or any portion of such principal amount which is $1,000 or
an integral multiple thereof, into shares of Common Stock; provided, that a Holder’s
right to convert Notes shall terminate upon the occurrence of a Conversion Event
as provided in Section 5.08.

       

      Notwithstanding
the foregoing, if a Holder of Notes has submitted Notes for purchase under
Article Three, the Holder may convert such Notes only if the Holder first
withdraws its Fundamental Change of Control Purchase Notice pursuant to
Section 3.03(b).

       

      (b)          Conversion in Whole or in
Part.  Provisions of this Indenture that apply to conversion of
all of a Note also apply to conversion of a portion of a Note.

       

      
        	
                SECTION 5.02.

              	
                Conversion
      Procedure.

              

      

       

      (a)          Conversion
Notice.  Each Note shall be convertible at the office of the
Conversion Agent.  In order to exercise the conversion right with
respect to any interest in Global Notes, the Holder must complete the
appropriate instruction form for conversion pursuant to the Depositary’s
book-entry conversion program, furnish appropriate endorsements and transfer
documents if required by the Issuer or the Trustee or Conversion Agent and any
transfer taxes if required pursuant to Section 5.09. In order to exercise
the conversion right with respect to any Physical Notes, the Holder of any such
Notes to be converted, in whole or in part, shall:

       

      (i)           Complete
and manually sign the conversion notice provided on the back of the Note (the
“Conversion Notice”) or
facsimile of the Conversion Notice;

      
        
           

        

        
          -60-

          
            

          

        

        
           

        

      

       

      (ii)          Deliver
such notice, which is irrevocable, and the Note to a Conversion
Agent;

       

      (iii)         If
required, furnish appropriate endorsements and transfer documents;
and

       

      (iv)        If
required, pay any transfer or similar tax.

       

      The date
on which the Holder satisfies all of the applicable requirements set forth above
is the “Conversion
Date.”

       

      (b)          Conversion Payment
Date.  As soon as practicable, but in any event within five (5)
Business Days, or ten (10) Business Days in the case of the application of the
Conversion Cap calculation pursuant to Section 5.13, immediately following
the Conversion Date (the “Conversion Payment Date”), the
Issuer shall issue and shall deliver to Holder at the office of the Conversion
Agent, a certificate or certificates for the number of full shares of Common
Stock issuable in respect of such conversion in accordance with the provisions
of this Article Five including payment of the Accrued Interest in
accordance with Section 5.03. In case any Notes of a denomination greater
than $1,000 shall be surrendered for partial conversion, the Issuer shall
execute and the Trustee shall authenticate and deliver to the Holder of the
Notes so surrendered, without charge to such Holder, new Notes in authorized
denominations in an aggregate principal amount equal to the unconverted portion
of the surrendered Notes.

       

      Each
conversion shall be deemed to have been effected as to any such Notes (or
portion thereof) on the date on which the requirements set forth above in
Section 5.02(a) have been satisfied as to such Notes (or portion thereof);
provided, however, that
the person in whose name any certificate or certificates for shares of Common
Stock shall be issuable upon such conversion shall be deemed to have become as
of the relevant Conversion Date the Holder of record of the shares of Common
Stock represented thereby; provided, further, that in case of any
such surrender on any date when the share transfer books of the Issuer shall be
closed, the Person or Persons in whose name the certificate or certificates for
such shares are to be issued shall be deemed to have become the record Holder
thereof for all purposes on the next day on which such share transfer books are
open, but such conversion shall be at the Conversion Rate in effect on the date
upon which such Notes shall be surrendered.  All shares of Common
Stock delivered upon conversion of the Notes will, upon delivery, be duly
authorized, validly issued and fully paid and non assessable, free and clear of
all Liens and not subject to any preemptive rights.

       

      (c)          Trustee.  Upon
the conversion of an interest in Global Notes, the Trustee (or other Conversion
Agent appointed by the Issuer) shall make a notation on such Global Notes as to
the reduction in the principal amount represented thereby. The Issuer shall
notify the Trustee in writing of any conversions of Notes effected through any
Conversion Agent other than the Trustee.

       

      (d)          Legend.  Each
share certificate representing shares of Common Stock issued upon conversion of
the Notes that are Restricted Notes shall bear the legend in substantially the
form of Exhibit G
hereto.

      
        
           

        

        
          -61-

          
            

          

        

        
           

        

      

      

       

      
        	
                SECTION 5.03.

              	
                Settlement upon
      Conversion.

              

      

       

      (a)          Number of
Shares.  With respect to any conversion of Notes, the Issuer
shall, subject to the provisions of this Article Five, deliver to
converting Holders, in respect of each $1,000 principal amount of Notes being
converted, a number of shares of Common Stock equal to the then Conversion
Rate.

       

      (b)          Payment of Accrued
Interest.  Upon conversion, on the Conversion Payment Date,
Holders shall receive separate cash payment for accrued and unpaid interest to,
but excluding, the applicable Conversion Date (the “Accrued Interest”), unless
such conversion occurs between a Record Date and the Interest Payment Date to
which it relates, in which case the following shall apply.  If Notes
are converted after the Close of Business on a Record Date for the payment of
interest but prior to the Open of Business on the related Interest Payment Date,
Holders of such Notes at the Close of Business on such Record Date will receive
in cash the interest payable on such Notes on the corresponding Interest Payment
Date notwithstanding the conversion.

       

      (c)          Payment of Accrued Interest
in Shares of Common Stock.  The Issuer may elect to pay the
Accrued Interest to any Holder by delivery of shares of its Common Stock if and
only if the following conditions have been satisfied:

       

      (i)           The
shares of Common Stock deliverable in payment of the Accrued Interest shall have
a fair market value as of the Conversion Date of not less than the Accrued
Interest;

       

      For
purposes of this Section 5.03(c), the fair market value of shares of Common
Stock shall be determined by the Issuer and shall be equal to 95% of the average
of the 10-day VWAP of the Common Stock for the 10 consecutive Trading Days
immediately preceding the Conversion Date.  The Issuer shall provide
such Holder written notice prior to the Conversion Payment Date that it will pay
all or a portion of the Accrued Interest in shares of Common Stock.

       

      (ii)          Payment
of the Accrued Interest may not be made in Common Stock unless such stock is, or
shall have been, approved for listing on the United States national securities
exchange on which the Issuer’s Common Stock may then be listed prior to the
Conversion Payment Date; provided that the foregoing
restriction shall not apply if the Issuer’s Common Stock is not then so listed
on a United States national securities exchange;

       

      (iii)         All
shares of Common Stock which may be issued will be issued out of the Issuer’s
authorized but unissued Common Stock and, will upon issue, be duly and validly
issued and fully paid and non-assessable free of any preemptive rights;
and

       

      (iv)         Payment
of the Accrued Interest may not be made in Common Stock to any Person to the
extent such payment would cause such Person to become a “beneficial owner” (as
determined pursuant to Section 13 of the Exchange Act) of securities of the
Issuer in excess of the Conversion Cap as provided in Section 5.13; provided, that the foregoing
shall not prevent the Issuer from making a payment in Common Stock to any other
Person.

      
        
           

        

        
          -62-

          
            

          

        

        
           

        

      

       

      If all
the conditions set forth above are not satisfied, the Accrued Interest shall be
paid by the Issuer only in cash.

       

      (d)           No Fractional
Shares.  The Issuer shall not issue fractional shares upon
conversion of Notes.  If multiple Notes shall be surrendered for
conversion at one time by the same Holder, the number of full shares which shall
be issuable upon conversion (and the number of fractional shares, if any, for
which cash shall be delivered) shall be computed on the basis of the aggregate
principal amount of the Notes (or specified portions thereof to the extent
permitted hereby) so surrendered.  If any fractional share would be
issuable upon the conversion of any Notes, the Issuer shall make payment an
amount in cash for the current market value of the fractional
shares.  The current market value of a fractional share shall be
determined (calculated to the nearest 1/1000th of a share) by multiplying the
Last Reported Sale Price of the Common Stock on the relevant Conversion Date by
such fractional share and rounding the product to the nearest whole
cent.  The Issuer shall not issue fractional shares upon payment of
Accrued Interest.  If any fractional share would be issuable upon such
payment, the Issuer shall make payment in an amount of such fractional share in
cash.

       

      (e)           Satisfaction of
Conversion.  By delivery to the Holder of the full number of
shares of Common Stock, together with any cash payment for fractional shares,
issuable upon conversion, and amounts equal to the Accrued Interest, whether
paid in cash or in shares of Common Stock in accordance with
Section 5.03(c), the Issuer will be deemed to satisfy in full its
obligation to pay the principal amount of the Notes and all accrued and unpaid
interest to, but not including, the Conversion Date.

       

      
        	
                SECTION 5.04.

              	
                Adjustment of
      Conversion Rate.

              

      

       

      The
Conversion Rate shall be adjusted from time to time by the Issuer as
follows:

       

      (a)           Dividends and
Distributions.  In case the Issuer shall, at any time or from
time to time while any of the Notes are outstanding, pay a dividend in shares of
Common Stock or make a distribution in shares of Common Stock, in each case, to
all or substantially all holders of Common Stock, the Conversion Rate will be
adjusted based on the following formula:

       

      CR1 = CR0 x OS1 / OS0

       

      Where

       

      CR0 = the
Conversion Rate in effect at Close of Business on the Trading Day immediately
preceding the Ex-Dividend Date for such dividend or distribution;

       

      CR1 = the
Conversion Rate in effect immediately after the Open of Business on the
Ex-Dividend Date for such dividend or distribution;

      
        
           

        

        
          -63-

          
            

          

        

        
           

        

      

       

      OS0 = the
number of shares of Common Stock outstanding at Close of Business on the Trading
Day immediately preceding the Ex-Dividend Date for such dividend or
distribution; and

       

      OS1 = the
number of shares of Common Stock that would be outstanding immediately after the
Open of Business on the Ex-Dividend Date and solely as a result of and giving
effect to such dividend or distribution.

       

      Any
adjustment made pursuant to this Section 5.04(a) shall become effective
immediately prior to Open of Business on the Ex-Dividend Date for such dividend
or distribution. If any dividend or distribution that is the subject of this
Section 5.04(a) is declared but not so paid or made, the Conversion Rate
shall be readjusted, effective as of the date the Issuer publicly announces its
decision not to make such dividend or distribution, to the Conversion Rate that
would then be in effect if such dividend or distribution had not been declared.
For purposes of this Section 5.04(a), the number of shares of Common Stock
outstanding at Close of Business on the Trading Day immediately preceding the
Ex-Dividend Date for such dividend or distribution shall not include shares of
Common Stock held in treasury. The Issuer will not pay any dividend or make any
distribution on Common Stock held in treasury.

       

      (b)           Subdivisions and
Combinations.  In case outstanding shares of Common Stock shall
be subdivided into a greater number of shares of Common Stock or combined into a
smaller number of shares of Common Stock (in each case, other than in connection
with a Fundamental Change of Control), the Conversion Rate will be adjusted
based on the following formula:

       

      CR1 = CR0 x OS1 / OS0

       

      Where

       

      CR0 = the
Conversion Rate in effect at Close of Business on the Trading Day immediately
preceding the effective date of such subdivision or combination;

       

      CR1 = the
Conversion Rate in effect immediately after the Open of Business on the
effective date of such subdivision or combination;

       

      OS0 = the
number of shares of Common Stock outstanding at Close of Business on the Trading
Day immediately preceding the effective date of such subdivision or combination;
and

       

      OS1 = the
number of shares of Common Stock that would be outstanding immediately after the
Open of Business on the effective date of such subdivision or combination, and
solely as a result of and giving effect to, such subdivision or
combination.

       

      
        
           

        

        
          -64-

          
            

          

        

        
           

        

      

      Any
adjustment made pursuant to this Section 5.04(b) shall become effective
immediately prior to Open of Business on the effective date of such subdivision
or combination.  If any subdivision or combination that is the subject
of this Section 5.04(b) is declared but not so made, the Conversion Rate
shall be readjusted, effective as of the date the Issuer publicly announces its
decision not to effect such subdivision or combination to the Conversion Rate
that would then be in effect if such subdivision or combination had not been
declared.  For purposes of this Section 5.04(b), the number of
shares of Common Stock outstanding at Close of Business on the Trading Day
immediately preceding the effective date of such subdivision or combination for
such subdivision or combination shall not include shares of Common Stock held in
treasury.

       

      (c)           Rights, Warrants or
Options.  In case the Issuer shall issue rights (other than
rights issued pursuant to a stockholder rights plan, and then in accordance with
Section 5.04(n)), warrants or options to all or substantially all holders
of Common Stock entitling them to purchase, for a period expiring within 60
calendar days of the date of issuance, Common Stock at an aggregate price per
share less than the average of the Last Reported Sale Prices of Common Stock
during the 10 consecutive Trading Day period ending on the Trading Day
immediately preceding the time of announcement of the distribution, the
Conversion Rate will be adjusted based on the following formula:

       

      CR1 = CR0 x (OS0 + X)/
(OS0
+Y)

       

      Where

       

      CR0 = the
Conversion Rate in effect at Close of Business on the Trading Day immediately
preceding the Ex-Dividend Date for such issuance;

       

      CR1 = the
Conversion Rate in effect immediately after the Open of Business on the
Ex-Dividend Date for such issuance;

       

      OS0 = the
number of shares of Common Stock outstanding at Close of Business on the Trading
Day immediately preceding the Ex-Dividend Date for such issuance;

       

      X = the
total number of shares of Common Stock issuable pursuant to such rights,
warrants or options; and

       

      Y = the
number of shares of Common Stock equal to the quotient of (x) the aggregate
price payable to exercise such rights, warrants or options divided by
(y) the average of the Last Reported Sale Prices of Common Stock during the
10 consecutive Trading Day period ending on the Trading Day immediately
preceding the date of announcement of the issuance of such rights, warrants or
options.

      
        
           

        

        
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      Any
adjustment made pursuant to this Section 5.04(c) shall become effective
immediately prior to Open of Business on the Ex-Dividend Date for such issuance.
In the event that such rights, warrants or options described in this
Section 5.04(c) are not so issued, the Conversion Rate shall be readjusted,
effective as of the date the Issuer publicly announces its decision not to issue
such rights, warrants or options to the Conversion Rate that would then be in
effect if such issuance had not been declared. To the extent that such rights,
warrants or options are not exercised prior to their expiration or shares of
Common Stock are otherwise not delivered pursuant to such rights, warrants or
options upon the exercise of such rights, warrants or options the Conversion
Rate shall be readjusted to the Conversion Rate that would then be in effect had
the adjustments made upon the issuance of such rights, warrants or options been
made on the basis of the delivery of only the number of shares of Common Stock
actually delivered. In determining the aggregate price payable to exercise such
rights, warrants or options there shall be taken into account any consideration
received by the Issuer for such rights, warrants or options and the value of
such consideration (if other than cash, to be determined in good faith by the
Issuer’s Board of Directors). For purposes of this Section 5.04(c), the
number of shares of Common Stock outstanding at Close of Business on the Trading
Day immediately preceding the Ex-Dividend Date for such issuance shall not
include shares of Common Stock held in treasury. The Issuer will not issue any
rights, warrants or options in respect of shares of Common Stock held in
treasury.

       

      (d)          Other Distributions; Public
Spin-Off.  In case the Issuer shall, by dividend or otherwise,
distribute to all or substantially all holders of its outstanding Common Stock,
evidences of the Issuer’s indebtedness or assets, including securities but
excluding:

       

      (i)           Any
dividends or distributions referred to in Section 5.04(a)
above;

       

      (ii)           Shares
delivered in connection with subdivisions of Common Stock referred to in
Section 5.04(b) above;

       

      (iii)           Any
rights, warrants or options referred to in Section 5.04(c)
above;

       

      (iv)           Any
dividends or distributions referred to in Section 5.04(e) below; and,
or

       

      (v)           Any
Public Spin-Offs to which the provisions set forth below in this
Section 5.04(d) applies;

       

      (any of
the foregoing hereinafter in this Section 5.04(d) called the “Distributed Assets”), the
Conversion Rate will be adjusted based on the following formula:

       

      CR1 = CR0 x (SP0 / (SP0 –
FMV))

       

      Where

       

      CR0 = the
Conversion Rate in effect at Close of Business on the Trading Day immediately
preceding the Ex-Dividend Date for such distribution;

       

      CR1 = the
Conversion Rate in effect on the Ex-Dividend Date for such
distribution;

       

      SP0 = the
average of the Last Reported Sale Prices of Common Stock during the 10
consecutive Trading Day period ending on the Trading Day immediately preceding
the Ex-Dividend Date for such distribution; and

      
        
           

        

        
          -66-

          
            

          

        

        
           

        

      

       

      FMV = the
Fair Market Value (as determined in good faith by the Issuer’s Board of
Directors) on the Ex-Dividend Date for such distribution of the Distributed
Assets so distributed, expressed as an amount per share of Common
Stock.

       

      If the
transaction that gives rise to an adjustment pursuant to this
Section 5.04(d) is, however, one pursuant to which the payment of a
dividend or other distribution on Common Stock consists of shares of Capital
Stock of any class or series of, or similar equity interests in, a Subsidiary or
other business unit of the Issuer (i.e., a “spin-off”) that are, or when issued,
will be, traded or listed on The Nasdaq Global Market, the Nasdaq Global Select
Market, the New York Stock Exchange or any other United States national
securities exchange or market (a “Public Spin-Off”), the
Conversion Rate will be adjusted based on the following formula:

       

      CR1 = CR0 x
(FMV0
+ MP0)
/ MP0

       

      Where

       

      CR0 = the
Conversion Rate in effect at Close of Business on the Trading Day immediately
preceding the Ex-Dividend Date for such distribution;

       

      CR1 = the
Conversion Rate in effect on the Ex-Dividend Date for such
distribution;

       

      FMV0 = the
average of the Last Reported Sale Prices of the Distributed Assets applicable to
one share of Common Stock during the 10 consecutive Trading Day period
commencing on and including the effective date of the Public Spin-Off (the
“Public Spin-Off Valuation
Period”); and

       

      MP0 = the
average of the Last Reported Sale Prices of Common Stock during the Public
Spin-Off Valuation Period.

       

      Any
adjustment made pursuant to this Section 5.04(d) shall become effective
immediately prior to Open of Business on the 10th Trading
Day from and including the date of the spin-off; provided that in respect of
any conversion within 10 Trading Days following the effective date of a
spin-off, references in this paragraph (d) to 10 Trading Days shall be
deemed replaced with such lesser number of Trading Days as have elapsed between
the effective Date of such spin-off and the Conversion Date with respect to the
applicable Conversion Rate.  If any dividend or distribution of the
type described in this Section 5.04(d) is declared but not so paid or made,
the Conversion Rate shall be immediately readjusted, effective as of the date
the Issuer publicly announces its decision not to pay such dividend or
distribution, to the Conversion Rate that would then be in effect if such
dividend or distribution had not been declared.  If an adjustment to
the Conversion Rate is required pursuant to this Section 5.04(d) during any
settlement period in respect of Notes that have been tendered for conversion,
delivery of the related conversion consideration will be delayed to the extent
necessary in order to complete the calculations provided for in this
Section 5.04(d).

      
        
           

        

        
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      Rights,
warrants or options distributed by the Issuer to all holders of Common Stock
entitling the holders thereof to subscribe for or purchase shares of the
Issuer’s Capital Stock (either initially or under certain circumstances), which
rights, warrants or options, until the occurrence of a specified event or events
(“Trigger Event”):
(i) are deemed to be transferred with such shares of Common Stock;
(ii) are not exercisable; and (iii) are also issued in respect of
future issuances of shares of Common Stock, shall be deemed not to have been
distributed for purposes of this Section 5.04 (and no adjustment to the
Conversion Rate under this Section 5.04 will be required) until the
occurrence of the earliest Trigger Event, whereupon such rights, warrants or
options shall be deemed to have been distributed and an appropriate adjustment
(if any is required) to the Conversion Rate shall be made under this
Section 5.04(d), except as set forth in Section 5.04(n). If any such
rights, warrants or options are subject to events, upon the occurrence of which
such rights, warrants or options become exercisable to purchase different
securities, evidences of indebtedness or other assets, then the date of the
occurrence of any and each such event shall be deemed to be the date of
distribution and Trigger Date with respect to new rights, warrants or options
with such rights (and a termination or expiration of the existing rights,
warrants or options without exercise by any of the holders thereof), except as
set forth in Section 5.04(n). In addition, except as set forth in
Section 5.04(n), in the event of any distribution (or deemed distribution)
of rights, warrants or options, or any Trigger Event or other event (of the type
described in the preceding sentence) with respect thereto that was counted for
purpose of calculating a distribution amount for which an adjustment to the
Conversion Rate under this Section 5.04 was made (including any adjustment
contemplated by Section 5.04(n)), (1) in the case of any such rights,
warrants or options that shall all have been redeemed or repurchased without
exercise by any holders thereof, the Conversion Rate shall be readjusted upon
such final redemption or repurchase to give effect to such distribution or
Trigger Event, as the case may be, as though it were a cash distribution, equal
to the per share redemption or repurchase price received by a holder or holders
of Common Stock with respect to such rights, warrants or options (assuming such
holder had retained such rights, warrants or options), made to all holders of
Common Stock as of the date of such redemption or repurchase, and (2) in
the case of such rights, warrants or options that shall have expired or been
terminated without exercise by any holders thereof, the Conversion Rate shall be
readjusted as if such rights, warrants or options had not been
issued.

       

      No
adjustment to the Conversion Rate shall be made pursuant to this
Section 5.04(d) in respect of rights, warrants or options distributed or
deemed distributed on any Trigger Event to the extent that such rights, warrants
or options are actually distributed or reserved by the Issuer for distribution
to Holders of Notes upon conversion by such Holders of Notes to Common
Stock.

       

      (e)           Cash
Distributions.  In case the Issuer shall pay a dividend or
otherwise distribute to all or substantially all holders of its Common Stock a
dividend or other distribution of exclusively cash excluding any dividend
or distribution in connection with the liquidation, dissolution or winding up of
the Issuer, whether voluntary or involuntary, the Conversion Rate will be
adjusted based on the following formula:

       

      CR1 = CR0 x (SP0 / (SP0 –
C))

      
        
           

        

        
          -68-

          
            

          

        

        
           

        

      

       

      Where

       

      CR0 = the
Conversion Rate in effect at Close of Business on the Trading Day immediately
preceding the Ex-Dividend Date for such distribution;

       

      CR1 = the
Conversion Rate in effect immediately after the Open of Business on the
Ex-Dividend Date for such distribution;

       

      SP0 = the
average of the Last Reported Sale Prices of Common Stock during the 10
consecutive Trading Day period ending on the Trading Day immediately preceding
the Ex-Dividend Date for such distribution; and

       

      C = the
amount in cash per share of Common Stock the Issuer distributes to holders of
Common Stock.

       

      Any
adjustment made pursuant to this Section 5.04(e) shall become effective
immediately prior to Open of Business on the Ex-Dividend Date for such dividend
or distribution. If any dividend or distribution of the type described in this
Section 5.04(e) is declared but not so paid or made, the Conversion Rate
shall be immediately readjusted, effective as of the date the Issuer publicly
announces its decision not to pay such dividend or distribution, to the
Conversion Rate that would then be in effect if such dividend or distribution
had not been declared.

       

      (f)           Tender Offers and Exchange
Offers.  In case of purchases of Common Stock pursuant to a
tender offer or exchange offer made by the Issuer or any Subsidiary of the
Issuer for all or any portion of Common Stock, to the extent that the Fair
Market Value of cash and any other consideration included in the payment per
share of Common Stock exceeds the Last Reported Sale Price of Common Stock on
the Trading Day next succeeding the last date on which tenders or exchanges may
be made pursuant to such tender offer or exchange offer (the “Expiration Date”), as it may
be amended, the Conversion Rate will be adjusted based on the following
formula:

       

      CR1 = CR0 x (AC +
(SP1 x
OS1))
/ (SP1
x OS0)

       

      Where

       

      CR0 = the
Conversion Rate in effect at Close of Business on the Trading Day immediately
following the Expiration Date;

       

      CR1 = the
Conversion Rate in effect immediately after the Open of Business on the second
Trading Day immediately following the Expiration Date;

       

      AC = the
Fair Market Value (as determined in good faith by the Issuer’s Board of
Directors), on the Expiration Date, of the aggregate value of all cash and any
other consideration paid or payable for Common Stock validly tendered or
exchanged and not withdrawn as of the Expiration Date;

      
        
           

        

        
          -69-

          
            

          

        

        
           

        

      

       

      OS1 = the
number of shares of Common Stock outstanding immediately after the last time
tenders or exchanges may be made pursuant to such tender offer or exchange offer
(the “Expiration Time”)
(after giving effect to such tender or exchange offer);

       

      OS0 = the
number of shares of Common Stock outstanding immediately before the Expiration
Time (prior to giving effect to such tender or exchange offer); and

       

      SP1 = the
average of the Last Reported Sale Prices of Common Stock during the 10
consecutive Trading Day period commencing on, and including, the Trading Day
immediately after the Expiration Date.

       

      Any
adjustment pursuant to this Section 5.04(f) shall become effective
immediately following the Open of Business on the second Trading Day immediately
following the Expiration Date.  If the Issuer or one of its
Subsidiaries is obligated to purchase Common Stock pursuant to any such tender
or exchange offer, but the Issuer or such Subsidiary is permanently prevented by
applicable law from effecting any such purchases or all such purchases are
rescinded, the Conversion Rate shall be readjusted to be the Conversion Rate
that would then be in effect if such tender or exchange offer had not been made.
Except as set forth in the preceding sentence, if the application of this
Section 5.04(f) to any tender offer or exchange offer would result in a
decrease in the Conversion Rate, no adjustment shall be made for such tender
offer or exchange offer under this Section 5.04(f). If an adjustment to the
Conversion Rate is required pursuant to this Section 5.04(f) during any
settlement period in respect of Notes that have been tendered for conversion,
delivery of the related conversion consideration will be delayed to the extent
necessary in order to complete the calculations provided for in this
Section 5.04(f).

       

      (g)          No
Adjustment.  In cases where the Fair Market Value of
Distributed Assets and cash, other than with respect to a Public Spin-Off, as to
which Section 5.04(d) and 5.04(e) apply, applicable to one share of Common
Stock, distributed to holders of Common Stock:

       

      (i)           Equals
or exceeds the average of Last Reported Sale Prices of Common Stock during the
10 consecutive Trading Day period ending on the Trading Day immediately
preceding the Ex-Dividend Date for such distribution, or

       

      (ii)           The
average of the Last Reported Sale Prices of Common Stock during the 10
consecutive Trading Day period ending on the Trading Day immediately preceding
the Ex-Dividend Date for such distribution exceeds the Fair Market Value of such
Distributed Assets or cash so distributed by less than $1.00,

       

      rather
than being entitled to an adjustment in the Conversion Rate, the Holder of a
Note will be entitled to receive upon conversion, in addition to Common Stock,
the Distributed Assets or cash, as applicable, that such Holder would have been
entitled to receive if such Holder had been a record holder of Common Stock (on
an as converted basis at the then applicable Conversion Rate) on the Record Date
for determining the stockholders entitled to receive the
distribution.

      
        
           

        

        
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      (h)           Increases to Conversion
Rate.  In addition to those Conversion Rate adjustments
required by Sections 5.04(a), 5.04(b), 5.04(c), 5.04(d), 5.04(e) and 5.04(f), to
the extent permitted by applicable law and subject to the applicable rules of
any stock exchange on which the Issuer’s Common Stock is listed at the relevant
time, the Issuer from time to time may increase the Conversion Rate by a
specified amount for a period of at least 20 Business Days, if the increase is
irrevocable during the period and the Issuer’s Board of Directors shall have
made a determination that such increase would be in the best interest of the
Issuer, which determination shall be conclusive. Whenever the Conversion Rate is
increased pursuant to the preceding sentence, the Issuer shall mail to Holders
of record of the Notes a notice of increase, which notice will be given at least
15 calendar days prior to the effective date of any such increase, and such
notice shall state the increased Conversion Rate and the period during which it
will be in effect.

       

      To the
extent permitted by applicable law and subject to the applicable rules of any
stock exchange on which the Issuer’s Common Stock is listed at the relevant
time, the Issuer may also (but is not required to) to make such increases to the
Conversion Rate, in addition to those required by Sections 5.04(a), 5.04(b),
5.04(c), 5.04(d), 5.04(e) and 5.04(f), as the Issuer’s Board of Directors
considers to be advisable to avoid or diminish any income tax to holders of
Common Stock resulting from any dividend or distribution of Common Stock (or
rights to acquire Common Stock) or from any event treated as such for income tax
purposes.

       

      The
Issuer shall not take any voluntary action to increase the Conversion Rate of
the Notes pursuant to this Section 5.04(h) without complying, if
applicable, with the shareholder approval rules of any stock exchange on which
the Issuer’s Common Stock is listed at the relevant time.

       

      (i)           Calculations; No Further
Adjustments.  All calculations under this Article Five
shall be made by the Issuer and not by the Trustee or Conversion Agent, and
shall be made to the nearest cent or to the nearest one-ten thousandth
(1/10,000th) of a share of Common Stock, as the case may be.  The
Conversion Rate shall not be adjusted except as specifically set forth in this
Section 5.04.  Without limiting the foregoing, the Conversion
Rate shall not be adjusted for (A) the issuance of any shares of Common
Stock pursuant to any present or future plan providing for the reinvestment of
dividends or interest payable on the Issuer’s securities or the investment of
additional optional amounts in shares of Common Stock under any plan;
(B) the issuance of any shares of Common Stock or options or rights to
purchase such shares pursuant to any of the Issuer’s present or future employee,
director, trustee or consultant benefit plans, employee agreements or
arrangements or programs including the Management Incentive Plan; (C) a
change in the par value of Common Stock or (D) the issuance of shares of
Common Stock or any securities convertible into or exchangeable or exercisable
for shares of the Issuer’s Common Stock or rights to purchase shares of Common
Stock or such convertible, exchangeable or exercisable securities or the payment
of cash upon repurchase or redemption thereof, except as otherwise provided in
this Section 5.04.

      
        
           

        

        
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      (j)           Announcement of
Adjustments.  Whenever the Conversion Rate is adjusted as
herein provided, the Issuer will publicly announce through a reputable national
newswire in the United States the relevant information, file such press release
with the SEC on Form 8-K and make this information available on the Issuer’s
website. In addition, the Issuer shall promptly file with the Trustee and any
Conversion Agent other than the Trustee an Officers’ Certificate setting forth
the Conversion Rate after such adjustment and setting forth a brief statement of
the facts requiring such adjustment. Unless and until a Trust Officer of the
Trustee shall have received such Officers’ Certificate, the Trustee and the
Conversion Agent (provided the Conversion Agent
is not the Issuer) shall not be deemed to have knowledge of any adjustment of
the Conversion Rate and may assume that the last Conversion Rate of which each
had knowledge is still in effect. Promptly after delivery of such certificate,
the Issuer shall prepare a notice of such adjustment of the Conversion Rate
setting forth the adjusted Conversion Rate and the date on which each adjustment
became effective and shall mail such notice of such adjustment of the Conversion
Rate to each Holder of each Note at its last address appearing on the register
of the Holders, within 20 calendar days after execution thereof. Failure to
deliver such notice shall not affect the legality or validity of any such
adjustment.

       

      (k)           Calculation of Shares
Outstanding; Treasury Stock.  For purposes of this
Section 5.04, the number of shares of Common Stock at any time outstanding
shall not include shares of Common Stock held in the treasury of the Issuer but
shall include shares of Common Stock issuable in respect of scrip certificates
issued in lieu of fractions of shares of Common Stock. The Issuer will not pay
any dividend or make any distribution on Common Stock held in the treasury of
the Issuer.

       

      (l)           Participation of Holders in
Distribution.  Notwithstanding any of the foregoing clauses in
this Section 5.04, the applicable Conversion Rate will not be adjusted
pursuant to this Section 5.04 if the Holders of the Notes are permitted to
participate (as a result of holding the Notes and contemporaneously with holders
of Common Stock) in any of the transactions that would otherwise give rise to
adjustment pursuant to this Section 5.04 as if such Holders of the Notes
held a number of shares of Common Stock equal to the applicable Conversion Rate
one Business Day prior to the effective date of the applicable transaction,
multiplied by the principal amount (expressed in thousands) of Notes held by
such Holder, without having to convert their Notes.

       

      (m)          Limitation or
Adjustment.  In no event shall the Conversion Price be reduced
below $0.01, subject to adjustment for share splits and combination and similar
events.

       

      (n)           Rights
Plan.  If the Issuer has in effect a rights plan while any
Notes remain outstanding, Holders of Notes shall receive, upon a conversion of
such Notes, in addition to such shares of Common Stock, rights under the
Issuer’s stockholder rights plan unless, prior to such conversion, the rights
have expired, terminated or been redeemed or unless the rights have separated
from Common Stock.  If the rights provided for in any rights plan that
the Issuer’s Board of Directors may adopt have separated from the Common Stock
in accordance with the provisions of the rights plan so that Holders of Notes
would not be entitled to receive any rights in respect of Common Stock that the
Issuer delivers upon conversion of Notes, the Issuer shall adjust the conversion
rate at the time of separation as if the Issuer had distributed to all holders
of the Issuer’s Common Stock, shares of Capital Stock, evidences of indebtedness
or other assets or property in accordance with Section 5.04(d), subject to
readjustment upon the subsequent expiration, termination or redemption of such
rights.

      
        
           

        

        
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                SECTION 5.05.

              	
                Effect of
      Reclassification, Consolidation, Merger or Sale.

              

      

       

      If any of
the following events occur:

       

      (a)          Any
recapitalization, reclassification or change of the outstanding shares of Common
Stock (other than a change in par value, or from par value to no par value, or
from no par value to par value, or as a result of a subdivision or combination),
or

       

      (b)          Any
consolidation, merger or combination of the Issuer with or into another Person,
or any sale, lease, transfer, conveyance or other disposition of all or
substantially all of the Issuer’s assets and those of the Issuer’s Subsidiaries
taken as a whole to any other Person or Persons (other than to one or more of
its subsidiaries), in each case, as a result of which holders of all or
substantially all of the Common Stock receive stock, other securities or other
property or assets (including cash or any combination thereof) with respect to
or in exchange for such Common Stock, the Issuer or the successor or purchasing
corporation, as the case may be, shall execute with the Trustee a supplemental
indenture (which shall comply with the Trust Indenture Act as in force at the
date of execution of such supplemental indenture, if such supplemental indenture
is then required to so comply) providing that from and after the effective date
of such transaction each such Note shall, without the consent of any Holders of
Notes, become convertible into, in lieu of the Common Stock otherwise
deliverable, the same type (in the same proportion) of the consideration that
the holders of Common Stock received in such reclassification, change,
consolidation, merger, sale, lease, transfer, conveyance or other disposition
(such consideration, the “Reference Property”). In all
cases, the conditions relating to conversion of Notes specified herein
(including in Sections 5.01 and 5.02, in each case, to the extent
applicable, and Section 5.04) (modified as appropriate in the good faith
judgment of the Issuer’s Board of Directors to apply properly to the Reference
Property in lieu of Common Stock), the provisions of Section 5.03 relating
to the Issuer’s satisfaction of the conversion obligation upon conversion of
Notes and the provisions of Section 5.13 relating to the Conversion Cap
shall continue to apply following such transaction.  If such
transaction also constitutes a Fundamental Change of Control, a Holder
converting Notes in connection with such Fundamental Change of Control will be
entitled to receive Additional Shares and the Make Whole Payment in accordance
with Section 5.07 in the Fundamental Change of Control.  If such
transaction causes Common Stock to be converted into the right to receive more
than a single type of consideration (determined based in part upon any form of
stockholder election), the Reference Property shall be deemed to be the kind and
amount of consideration elected to be received by a majority of shares of Common
Stock voted for such an election (if electing between two types of
consideration) or a plurality of shares of Common Stock voted for such an
election (if electing between more than two types of consideration), as the case
may be. The Issuer may not become a party to any such transaction unless its
terms are consistent with the foregoing. Such supplemental indenture shall
provide for adjustments that shall be as nearly equivalent as may be practicable
to the adjustments provided for in this Article Five, as determined in good
faith by the Issuer or successor or purchasing corporation.

      
        
           

        

        
          -73-

          
            

          

        

        
           

        

      

      If, in
the case of any such reclassification, change, consolidation, merger, sale,
lease, transfer, conveyance or other disposition, the stock or other securities
and assets received thereupon by a holder of Common Stock includes shares of
stock or other securities and assets of a corporation other than the successor
or purchasing corporation, as the case may be, in such reclassification, change,
consolidation, merger, sale, lease, transfer, conveyance or other disposition,
then such supplemental indenture shall also be executed by such other
corporation and shall contain such additional provisions to protect the
interests of the Holders of the Notes as the Issuer’s Board of Directors shall
reasonably consider necessary by reason of the foregoing, including to the
extent practicable the provisions providing for the conversion rights set forth
in this Article Five.

       

      The
Issuer shall cause notice of the execution of such supplemental indenture to be
mailed or delivered to each Holder, at the address of such Holder as it appears
on the register of the Notes maintained by the Registrar, within 20 calendar
days after execution thereof. Simultaneously with providing such notice, the
Issuer shall announce through a reputable national newswire in the United States
the relevant information and make this information available on the Issuer’s
website. Failure to deliver such notice shall not affect the legality or
validity of such supplemental indenture.

       

      The
foregoing provisions of this Section 5.05 shall similarly apply to
successive reclassifications, changes, consolidations, mergers, sales, leases,
transfers, conveyances or other dispositions.

       

      If this
Section 5.05 applies to any event or occurrence, Section 5.04 shall
not apply.

       

      None of
the foregoing provisions shall affect the right of a Holder of Notes to convert
such Holder’s Notes into shares of Common Stock at any time, subject to
Section 5.08.

       

      
        	
                SECTION 5.06.

              	
                Adjustments of
      Prices.

              

      

       

      Whenever
any provision of this Indenture requires a calculation of the Last Reported Sale
Prices over a span of multiple days, the Issuer will make appropriate
adjustments determined by the Issuer or its agents to account for any adjustment
to the Conversion Rate that becomes effective, or any event requiring an
adjustment to the Conversion Rate where the Ex-Dividend Date of the event
occurs, at any time during the period from which such prices are to be
calculated.  Such adjustments will be effective as of the effective
date of the adjustment to the Conversion Rate.

       

      
        	
                SECTION 5.07.

              	
                Adjustment Upon
      Fundamental Change of Control.

              

      

       

      (a)          In
connection with any Fundamental Change of Control, the Issuer shall provide to
the Holders of the Notes and the Trustee the notice in respect of such
Fundamental Change of Control as contemplated by
Section 3.01(a).

       

      (b)          If
and only to the extent a Holder converts its Notes in connection with a
Fundamental Change of Control, the Issuer will (i) increase the Conversion
Rate for the Notes so surrendered for conversion by a number of additional
shares of Common Stock (the “Additional Shares”) as
described below and (ii) pay to such Holder the Make Whole Payment (as
defined in Section 5.07(f)).  The Issuer shall use it best
efforts to obtain stockholder approval if necessary in connection with the
issuance of Additional Shares as promptly as practicable.  A
conversion of Notes shall be deemed for these purposes to be “in connection
with” such Fundamental Change of Control if the notice of conversion of the
Notes is received by the Conversion Agent during the period from the Effective
Date of the Fundamental Change of Control to Close of Business on the Business
Day immediately preceding the related Fundamental Change of Control Purchase
Date.

      
        
           

        

        
          -74-

          
            

          

        

        
           

        

      

       

      (c)          The
number of Additional Shares, if any, by which the Conversion Rate will be
increased will be determined by reference to the table attached as Schedule I
hereto, based on the date on which the Fundamental Change of Control becomes
effective (the “Effective
Date”) and the price (the “Share Price”) paid (or deemed
paid) per share of Common Stock in the Fundamental Change of Control. If the
Holders of the Common Stock receive only cash in a Fundamental Change of
Control, the Share Price will be the cash amount paid per share of Common Stock.
Otherwise, the Share Price shall be the 10-day VWAP preceding the Effective Date
of such Fundamental Change of Control.

       

      (d)          The
Share Prices set forth in the column headings of the table in Schedule I
hereto shall be adjusted as of any date on which the Conversion Rate of the
Notes is otherwise adjusted. The adjusted Share Prices shall equal the Share
Prices applicable immediately prior to such adjustment, multiplied by a
fraction, the numerator of which is the Conversion Rate immediately prior to
such adjustment giving rise to the share price adjustment and the denominator of
which is the Conversion Rate as so adjusted. The number of Additional Shares set
forth in such table shall be adjusted in the same manner as the Conversion Rate
as set forth in Section 5.04.

       

      (e)          The
exact Share Prices and Effective Dates may not be set forth in the table in
Schedule I, in
which case:

       

      (i)           If
the Share Price is between two Share Price amounts in the table or the Effective
Date is between two Effective Dates in the table, the number of Additional
Shares by which the Conversion Rate will be increased will be determined by a
straight-line interpolation between the number of Additional Shares set forth
for the higher and lower Share Price amounts and the earlier and later Effective
Dates, as applicable, based on a 365-day year.

       

      (ii)           If
the Share Price is greater than $28.00 per share (subject to adjustment as set
forth in clause (d) of this Section 5.07), no Additional Shares will
be added to the Conversion Rate.

       

      (iii)           If
the Share Price is less than $6.21 per share (subject to adjustment as set forth
in clause (d) of this Section 5.07), no Additional Shares will be
added to the Conversion Rate.

       

      Notwithstanding
the foregoing, in no event shall the total number of Additional Shares added to
the Conversion Rate exceed 65.793 per $1,000 principal amount of Notes, subject
to adjustments in the same manner as the Conversion Rate as set forth in
Section 5.04 as set forth in clause (c) of this
Section 5.07.

      
         

      

      
        
           

        

        
          -75-

          
            

          

        

        
           

        

      

       

      (f)          In
connection with a Fundamental Change of Control, and if and only to the extent a
Holder converts its Notes in connection with such Fundamental Change of Control,
in addition to the payment of the Additional Shares, the Issuer will be required
to make an additional payment to such Holders in cash (the “Make Whole Payment”), which
Make Whole Payment shall equal the total amount of interest that would have
accrued and become payable on such Notes from, but excluding, the Effective Date
through and including [       ],
20131 (but
including any accrued and unpaid interest on the Notes from the Issue Date
through and including the Effective Date).  The Make Whole Payment
shall be made on the applicable Conversion Payment Date.

       

      (g)          A
Purchaser Party shall not be entitled to receive Additional Shares or the Make
Whole Payment upon a Fundamental Change of Control, notwithstanding any
conversion of such Purchaser Party’s Notes, if such Fundamental Change of
Control (i) is a merger, consolidation or sale with or into such Purchaser
Party, or any member of any “group” of which such Purchaser Party is a member or
any of their respective Affiliates; (ii) is a transaction specified in
clause (ii) of the definition of “Fundamental Change of Control” if such
Purchaser Party or any of its Affiliates is a “person” or a member of a “group”
for purposes of such definition or (iii) if the nominees of any such
Purchaser Party, or any member of any “group” of which such Purchaser Party is a
member or any of their respective Affiliates constitutes one or more of new
members of the Board of Directors effecting such Fundamental Change of
Control.

       

      For
purposes of this Section 5.08(g), “group” has the meaning it has in
Sections 13(d) and 14(d) of the Exchange Act and “person” is used with the
same meaning as that used within Rule 13d-3 under the Exchange Act, in each case
whether or not applicable.

       

      (h)          The
Issuer will notify Holders, the Trustee and the Conversion Agent of the
anticipated Effective Date of any Fundamental Change of Control on or prior to
the later of (i) 10 calendar days prior to such Effective Date and
(ii) 10 calendar days following the date on which the Issuer becomes aware
(or should have become aware) of such anticipated Effective Date.  The
Issuer shall publicly announce such information through a reputable national
newswire in the United States, file such press release with the SEC on Form 8-K
and shall make such information available on the Issuer’s website.

       

      (i)           Notwithstanding
Section 5.07(f), the Issuer may elect to pay the Make Whole Payment in
shares of Common Stock if and only if the following conditions shall have been
satisfied:

       

      (i)           The
shares of Common Stock deliverable in payment of the Make Whole Payment shall
have a fair market value as of the Conversion Date of not less than the Make
Whole Payment.

       

      
        
          

        

        
          
            	
                    1

                  	
                    NTD:  Insert
      third anniversary of closing
date.

                  

          

        

      

       

      
        
           

        

        
          -76-

          
            

          

        

        
           

        

      

      For
purposes of this Section 5.07(i), the fair market value of shares of Common
Stock shall be determined by the Issuer and shall be equal to 95% of the average
of the 10-day VWAP of the Common Stock for the 10 consecutive Trading Days
immediately preceding the Effective Date; provided, that if the
Fundamental Change of Control is a merger or consolidation pursuant to clause
(i) of the definition of Fundamental Change of Control and all of the
Issuer’s Common Stock is exchanged for common stock of the acquiror (or
successor entity) in such Fundamental Change of Control, the number of shares of
Issuer Common Stock issuable hereunder shall be determined by dividing the Make
Whole Payment by the implied price per share paid for the Issuer Common Stock in
such Fundamental Change of Control, with such resulting shares of Issuer Common
Stock being treated in the same manner as all other shares of Issuer Common
Stock in such Fundamental Change of Control (e.g., exchanged for shares of
Common Stock or other property of such acquiror (or successor) in the same
proportion as Issuer Common Stock in such Fundamental Change of
Control);

       

      (ii)           Payment
of the Make Whole Payment may not be made in Common Stock unless such stock is,
or shall have been, approved for listing on a United States national securities
exchange on which the Issuer’s Common Stock may then be listed prior to the date
of payment of the Make Whole Payment; provided that the foregoing
restriction shall not apply if the Issuer’s Common Stock is not then so listed
on a United States national securities exchange;

       

      (iii)           All
shares of Common Stock which may be issued will be issued out of authorized but
unissued common stock and will upon issue, be duly issued, fully paid and
non-assessable, free and clear of all preemptive rights; and

       

      (iv)           Payment
of the Make Whole Payment may not be made in Common Stock (or securities of the
acquiror (or successor)) to any Person to the extent such payment would cause
such Person to become a “beneficial owner” (as determined pursuant to Section 13
of the Exchange Act) of securities of the Issuer in excess of the Conversion Cap
as provided in Section 5.13; provided, that the foregoing
shall not prevent the Issuer from making a payment in Common Stock to any other
Person.

       

      In
connection with the payment of the Make Whole Payment in shares of Common Stock,
no fractional shares or scrip representing fractional shares shall be issued
upon conversion of the Notes.  If any fractional shares or scrip would
be so issuable, the Issuer shall make a payment of the remaining Make Whole
Payment in cash.

       

      If all
the conditions set forth above are not satisfied, the Make Whole Payment shall
be paid by the Issuer only in cash.

       

      
        	
                SECTION 5.08.

              	
                Conversion Event;
      Termination of Conversion Rights.

              

      

       

      (a)          Conversion
Event.  If the Last Reported Sale Price of the Common Stock for
at least 20 Trading Days in a period of 30 consecutive Trading Days equals or
exceeds 150% of the Conversion Price (a “Conversion Event”), the Issuer
may, at its option, deliver or cause to be delivered to all Holders of the Notes
at their address shown in the register for the Notes, a notice as set forth
below (the “Conversion Event
Notice”) with respect to such Conversion Event at any time within 20
Business Days of such Conversion Event.  The Issuer shall also deliver
a copy of the Conversion Event Notice to the Trustee, the Conversion Agent and
the Paying Agent at such time as is mailed to Holders of
Notes.  Simultaneously with providing such Conversion Event Notice,
the Issuer shall publicly announce the relevant information through a reputable
national newswire in the United States, file such press release with the SEC on
Form 8-K and make such information available on the Issuer’s
website.

      
        
           

        

        
          -77-

          
            

          

        

        
           

        

      

       

      No
failure of the Issuer to deliver the foregoing notices and no defect therein
shall limit a Holders rights hereunder or affect the validity of the proceedings
pursuant to this Section 5.08.

       

      (b)          Termination of Conversion
Rights.  Except as set forth by a Holder in an Election Notice
(as defined below), a Holder’s right to convert Notes shall automatically
terminate, with no further action of the Issuer or any Holder, immediately prior
to the Open of Business on the date that is 46 days following the date of the
Conversion Event Notice (the “Conversion Termination
Date”).  A Holder may convert its Notes at any time in
connection with a Conversion Event during the 45-day period from the date of the
Conversion Event Notice to the Close of Business on the Business Day immediately
preceding the Conversion Termination Date.  A conversion of Notes
shall be deemed for these purposes to be in connection with a Conversion Event
if notice of conversion is received by the Conversion Agent during the period
from the date of the Conversion Event Notice to the Close of Business on the
Business Day immediately preceding the Conversion Termination Date.

       

      (c)          Notes Not Converted due to
Conversion Cap; Election Notice.  Any Notes not converted prior
to the Conversion Termination Date as a result of the Conversion Cap shall be,
at such Holder’s election, upon written notice to the Issuer delivered by such
Holder (an “Election
Notice”), converted into shares of Common Stock of the Issuer on a date
(or dates) prior to the date that is 180 days following the Conversion
Termination Date (such date or dates as specified in the Election Notice, the
“Cap Conversion
Dates”).  A Holder shall deliver an Election Notice to the
Issuer so specifying its election to convert Notes that could not have otherwise
been converted due to the Conversion Cap at any time prior to the Conversion
Termination Date.  An Election Notice shall be in the form attached as
Exhibit J.

       

      (d)          Conversion Event
Notice.  The Conversion Event Notice delivered by the Issuer
shall be in the form set forth on Exhibit H hereto
and shall state the amount of the Cash Conversion Amount and whether the payment
of the Cash Conversion Amount shall be made in cash, shares of Common Stock or a
combination of cash and shares of Common Stock and the method of calculating the
Cash Conversion Amount payment.

       

      In
addition to any other information provided by the Issuer, a Conversion Event
Notice shall:

       

      (i)           State
the events constituting the Conversion Event and the Conversion Rate then
applicable to the Notes;

       

      (ii)          State
that the right to convert Notes shall terminate immediately prior to the Open of
Business on the date that is 46 days following the date of Conversion Event
Notice;

      
        
           

        

        
          -78-

          
            

          

        

        
           

        

      

       

      (iii)         State
that holders may convert Notes up to the Conversion Cap at any time prior to the
Close of Business on the Business Day immediately preceding the Conversion
Termination Date;

       

      (iv)   
     State that any Holders who cannot convert the full
amount of their Notes prior to the Conversion Termination Date due to the
Conversion Cap may send an Election Notice to the Issuer in the form attached as
an exhibit to such conversion Event Notice (which shall be in the form of Exhibit J
hereof) and may elect to convert such Notes on any date or dates prior to the
date that is 180 days following the Conversion Termination Date.

       

      (v)          State
that except for Notes specified for conversion pursuant to an Election Notice,
any Notes not otherwise converted prior to the Conversion Termination Date may
be redeemed at the option of the Issuer at any time in accordance with
Article Four and shall also state the Redemption Price
therefor;

       

      (vi)         State
that interest shall cease to accrue on all Notes as of the Conversion
Termination Date;

       

      (vii)        State
that certain covenants (to be specified in such Conversion Event Notice)
contained in the Indenture shall cease to have any further force or effect as of
the Conversion Termination Date and shall state such other provisions of this
Indenture that shall no longer apply, including release of Collateral securing
the Notes in accordance with Section 12.09; and

       

      (viii)       State
the amount of the Cash Conversion Amount, if any, payable on all Notes as a
result of the Conversion Event and the dates which such Cash Conversion Amount
may be paid.

       

      (e)          Cash Conversion
Amount.  If a Conversion Event occurs on or prior to
[          ]2,
in addition to shares of Common Stock issuable upon conversion of the Notes
prior to the Conversion Termination Date, or amounts received upon redemption of
the Notes or upon maturity thereof, the Issuer will be required to make an
additional payment in cash (the “Cash Conversion Amount”) in
respect of the Notes.  The Cash Conversion Amount shall be equal to
the lesser of: (i) the aggregate amount of interest payable from (and
including) the Conversion Termination Date to and including
[         ], 2012 and (ii) an
aggregate amount equal to 15 months of interest on the Notes (in each case
including any accrued and unpaid interest on the Notes from the Issue Date to
and including the Conversion Termination Date (or applicable Conversion Date, if
earlier).

       

      (f)          Payment of Cash Conversion
Amount in Shares of Common Stock.  Notwithstanding
Section 5.08(e), the Issuer may elect to pay the Cash Conversion Amount by
delivery of shares of its Common Stock if and only if the following conditions
have been satisfied:

       

      
        
          

      

      
        
          	
                  2

                	
                  NTD:  Insert
      second anniversary of the Issue
Date.

                

        

      

      
        
           

        

        
          -79-

          
            

          

        

        
           

        

      

       

      (i)           The
shares of Common Stock deliverable in payment of the Cash Conversion Amount
shall have a fair market value as of the Conversion Termination Date of not less
than the Cash Conversion Amount.

       

      For
purposes of this Section 5.08(f), the fair market value of shares of Common
Stock shall be determined by the Issuer and shall be equal to 95% of the average
of the 10-day VWAP of the Common Stock for the 10 consecutive Trading Days
immediately preceding the Conversion Termination Date.  The Issuer
shall provide such Holder written notice prior to the applicable Cash Conversion
Payment Date (as defined below) that it will pay all or a portion of the Cash
Conversion Amount in shares of Common Stock.

       

      (ii)          Payment
of the Cash Conversion Amount may not be made in Common Stock unless such stock
is, or shall have been, approved for listing on the United States national
securities exchange on which the Issuer’s Common Stock may then be listed prior
to the Conversion Payment Date; provided that the foregoing
restriction shall not apply if the Issuer’s Common Stock is then not so listed
on a United States national securities exchange;

       

      (iii)         All
shares of Common Stock which may be issued will be issued out of the Issuer’s
authorized but unissued Common Stock and, will upon issue, be duly and validly
issued and fully paid and non-assessable free of any preemptive rights;
and

       

      (iv)         Payment
of the Cash Conversion Amount may not be made to any Holder in Common Stock to
the extent such payment would cause such Person to become a “beneficial owner”
(as determined pursuant to Section 13 of the Exchange Act) of securities of the
Issuer in excess of the Conversion Cap as provided in Section 5.13; provided, that the foregoing
shall not prevent the Issuer from making a payment in Common Stock to any other
Person.

       

      In
connection with the payment of the Cash Conversion Amount in shares of Common
Stock, no fractional shares or scrip representing fractional shares shall be
issued upon conversion of the Notes.  If any fractional shares or
scrip otherwise would be so issuable, the Issuer shall make a payment of the
remaining Cash Conversion Amount in cash.

       

      If all of
the conditions set forth in this Section 5.08(f) are not satisfied in
accordance with the terms thereof, the Cash Conversion Amount shall be paid by
the Issuer only in cash.

       

      (g)           Effect of Conversion
Termination Date.  On and after the Conversion Termination
Date, interest shall cease to accrue on the Notes.  In addition, and
after the Conversion Termination Date, the following provisions of this
Indenture shall cease to have any further force and effect with respect to any
Notes not converted in connection with a Conversion Event (whether prior to the
Conversion Termination Date or pursuant to an Election Notice) (the “Remaining
Notes”):

      
        
           

        

        
          -80-

          
            

          

        

        
           

        

      

       

      (i)           Article Three
(Purchase at Option of Holders upon a Fundamental Change of
Control)

       

      (ii)          Article Five
(Conversion (other than this Section 5.08, and paragraph five of
Section 5.10, Section 5.13, Section 5.14 and
Section 5.16)

       

      (iii)         Section 6.04
(Payment of Taxes)

       

      (iv)   
     Section 6.05 (Maintenance of
Properties)

       

      (v)      
   Section 6.06 (Compliance Certificate; Notice of
Default)

       

      (vi)    
    Section 6.07 (Waiver of Stay, Extension or Usury
Laws)

       

      (vii)     
  Section 6.08 (Limitations on Additional
Indebtedness)

       

      (viii)    
  Section 6.09 (Limitations on Restricted Payments)

       

      (ix)         Section 6.10
(Limitations on Liens)

       

      (x)          Section 6.11
(Limitations on Asset Sales)

       

      (xi)         Section 6.12
(Limitations on Transactions with Affiliates)

       

      (xii)        Section 6.13
(Limitations on Dividend and Other Restrictions Affecting Restricted
Subsidiaries)

       

      (xiii)       Section 6.14
(Additional Note Guarantees)

       

      (xiv)       Section 6.15
(Further Assurances)

       

      (xv)    
   Section 6.16 (Reports to Holders)

       

      (xvi)       Section 6.17
(Limitations on Designation of Unrestricted Subsidiaries)

       

      (xvii)      Section 6.18
(Limitation on the Issuance or Sale of Equity Interests of Restricted
Subsidiaries)

       

      (xviii)     Section 6.19
(Information Regarding Collateral)

       

      (xix)       Section 6.20
(Impairment of Security Interest)

       

      (xx)       
Section 6.21 (Insurance)

       

      (xxi)       Article Seven
(Successor Corporation)

       

      (xxii)      Section 8.01
(Events of Default) (other than clauses (i), (ii), (vi), (xi) and (xii) 
thereof).

      
        
           

        

        
          -81-

          
            

          

        

        
           

        

      

       

      With
respect to the outstanding Remaining Notes, the Issuer and the Guarantors may
omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or
by reason of any reference in any such covenant to any other provision herein or
in any other document and such omission to comply shall not constitute an Event
of Default under Section 8.01 hereof, but, except as specified above, the
remainder of this Indenture and such  Remaining Notes shall be
unaffected thereby.

       

      (h)          Remaining
Notes may be redeemed in whole or in part at the option of the Issuer at any
time or from time to time following the Conversion Termination Date in
accordance with Article Four.

       

      (i)          The
Issuer shall pay the Cash Conversion Amount as follows (each, a “Cash Conversion Payment
Date”):

       

      (i)           On
the Conversion Termination Date for all Notes converted during the period from
the date of the Conversion Event Notice to the Close of Business on the Business
Day immediately preceding the Conversion Termination Date;

       

      (ii)           On
the date or dates specified for conversion in an Election Notice;
and

       

      (iii)          On
the date of redemption or at maturity, as applicable for any Remaining
Notes.

       

      
        	
                SECTION 5.09.

              	
                Taxes on Shares
      Issued.

              

      

       

      Any issue
of share certificates on conversions of Notes shall be made without charge to
the converting Holder for any documentary, transfer, stamp or any similar tax in
respect of the issue thereof, and the Issuer shall pay any and all documentary,
stamp or similar issue or transfer taxes that may be payable in respect of the
issue or delivery of shares of Common Stock on conversion of Notes pursuant
hereto. The Issuer shall not, however, be required to pay any such tax which may
be payable in respect of any transfer involved in the issue and delivery of
shares in any name other than that of the Holder of any Notes converted, and the
Issuer shall not be required to issue or deliver any such share certificate
unless and until the person or persons requesting the issue thereof shall have
paid to the Issuer the amount of such tax or shall have established to the
satisfaction of the Issuer that such tax has been paid.

       

      
        	
                SECTION 5.10.

              	
                Reservation of Shares;
      Shares to be Fully Paid; Compliance with Governmental
      Requirements.

              

      

       

      The
Issuer shall at all times maintain out of its authorized but unissued shares of
Common Stock enough shares to permit the issuance of shares of Common Stock upon
the conversion, in accordance herewith, of all of the Notes.  The
shares of Common Stock due upon conversion of a Global Note shall be delivered
by the Issuer in accordance with the Depositary’s customary
practices.  All shares of Common Stock which may be issued upon
conversion of the Notes shall be validly issued, fully paid and non-assessable
and shall be free of preemptive or similar rights and free from all liens,
taxes, charges or adverse changes.

      
        
           

        

        
          -82-

          
            

          

        

        
           

        

      

       

      Before
taking any action that would cause an adjustment increasing the Conversion Rate
to an amount that would cause the Conversion Price to be reduced below the then
par value, if any, of the shares of Common Stock issuable upon conversion of the
Notes, the Issuer will take all corporate action which may, in the opinion of
its counsel, be necessary in order that the Issuer may validly and legally issue
shares of such Common Stock at such adjusted Conversion Price.

       

      The
Issuer covenants to take all such actions as may be required for the payment in
accordance herewith of shares of Common Stock, if any, deliverable upon the
conversion of any Notes, including the acceptance of such shares of Common Stock
into the book-entry system maintained by the Depositary. Without limiting the
generality of the foregoing, the Issuer further covenants that, (i) if any
shares of Common Stock to be provided for the purpose of conversion of Notes
hereunder require registration with or approval of any governmental authority
under any federal or state law before such shares may be validly issued upon
conversion, the Issuer will in good faith and as expeditiously as possible, to
the extent then permitted by the rules and interpretations of the Commission (or
any successor thereto), endeavor to secure such registration or approval, as the
case may be and (ii) if at any time Common Stock shall be listed on any
national securities exchange or automated quotation system, the Issuer will, if
permitted by the rules of such exchange or automated quotation system, list and
keep listed, so long as Common Stock shall be so listed on such exchange or
automated quotation system, all shares of Common Stock issuable upon conversion
of the Notes; provided,
that if the rules of such exchange or automated quotation system permit the
Issuer to defer the listing of such shares of Common Stock until the first
conversion of the Notes into Common Stock in accordance with the provisions of
this Indenture, the Issuer covenants to list such shares of Common Stock
issuable upon conversion of the Notes in accordance with the requirements of
such exchange or automated quotation system at such time.

       

      
        	
                SECTION 5.11.

              	
                Responsibility of
      Trustee.

              

      

       

      The
Trustee and any other Conversion Agent shall not at any time be under any duty
or responsibility to any Holder to determine the Conversion Rate or whether any
facts exist which may require any adjustment of the Conversion Rate, or with
respect to the nature or extent or calculation of any such adjustment when made,
or with respect to the method employed, or herein or in any supplemental
indenture provided to be employed, in making the same. The Trustee and any other
Conversion Agent shall not be accountable with respect to the validity or value
(or the kind or amount) of any Common Stock, or of any securities or property,
which may at any time be issued or delivered upon the conversion of any Notes;
and the Trustee and any other Conversion Agent make no representations with
respect thereto. Neither the Trustee nor any Conversion Agent shall be
responsible for any failure of the Issuer to issue, transfer or deliver any
shares of Common Stock or share certificates or other securities or property or
cash upon the surrender of any Notes for the purpose of conversion or to comply
with any of the duties, responsibilities or covenants of the Issuer contained in
this Article Five. Without limiting the generality of the foregoing,
neither the Trustee nor any Conversion Agent shall be under any responsibility
to determine the correctness of any provisions contained in any supplemental
indenture entered into pursuant to Section 5.05 relating either to the kind
or amount of shares of stock or securities or property (including cash)
receivable by Holders upon the conversion of their Notes after any event
referred to in such Section 5.05 or to any adjustment to be made with
respect thereto, but, may accept as conclusive evidence of the correctness of
any such provisions, and shall be protected in relying upon, the Officers’
Certificate (which the Issuer shall be obligated to file with the Trustee prior
to the execution of any such supplemental indenture) with respect
thereto.

      
        
           

        

        
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                SECTION 5.12.

              	
                Notice to Holders
      Prior to Certain Actions.

              

      

       

      In
case:

       

      (a)          The
Issuer shall pay a dividend (or any other distribution) on shares of Common
Stock that would require an adjustment in the Conversion Rate pursuant to
Section 5.06; or

       

      (b)          The
Issuer shall issue rights, warrants or options to the holders of all or
substantially all of the shares of Common Stock to subscribe for or purchase any
shares of any class of Capital Stock or any other rights or warrants;
or

       

      (c)          Of
any reclassification or change of the outstanding shares of Common Stock (other
than change in par value, or from par value to no par value, or from no par
value to par value, or as a result of a subdivision or combination), or of any
consolidation or merger of the Issuer with or into another Person, or any sale,
lease, transfer, conveyance or other disposition of all or substantially all of
the Issuer’s assets and those of the Issuer’s Subsidiaries taken as a whole to
any other Person or Persons; or

       

      (d)          Liquidation,
dissolution or winding up of the Issuer, whether voluntary or
involuntary;

       

      then, in
each case, the Issuer shall cause to be filed with the Trustee and the
Conversion Agent and to be mailed to each Holder at such Holder’s address
appearing on register of Holders as promptly as practicable but in any event at
least 30 days prior to the applicable date hereinafter specified, a notice
stating (x) the date on which a record is to be taken for the purpose of
such dividend or distribution of Common Stock rights, warrants, cash or other
assets, debt securities or rights to purchase the Issuer’s securities, or, if a
record is not to be taken, the date as of which the holders of Common Stock of
record to be entitled to such dividend, distribution or rights are to be
determined, or (y) the date on which such reclassification, change,
consolidation, merger, sale, lease, transfer, conveyance or other disposition or
liquidation, dissolution or winding up is expected to become effective or occur,
and the date as of which it is expected that holders of Common Stock of record
shall be entitled to exchange their shares of Common Stock for securities or
other property deliverable upon such reclassification, consolidation, merger,
sale, transfer, dissolution, liquidation or winding up. Failure to give such
notice, or any defect therein, shall not affect the legality or validity of such
dividend, distribution, reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding up.

      
        
           

        

        
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                SECTION 5.13.

              	
                Conversion
      Cap.

              

      

       

      Notwithstanding
anything to the contrary in this Indenture, (a) a Person or any Affiliate
thereof holding the Notes shall not be entitled to convert any Notes (and the
Issuer shall not so convert any Notes), (b) the Issuer shall not be
entitled to settle any cash payments owing to any Person of Notes in shares of
its Common Stock and (iii) shares of any acquiror (or successor) shall not
be issued upon conversion pursuant to the adjustment mechanisms contained in
Section 5.05 in connection with a transaction governed by Section 5.05
or upon a Fundamental Change of Control to the extent, and only to the extent,
such conversion, share settlement or issuance would cause such Person, together
with its Affiliates, to become a beneficial owner (as determined pursuant to
Section 13 of the Exchange Act and Rules 13d-3 and 13d-5 thereunder)
of more than 9.9% of the issued and outstanding shares of Common Stock (or such
equivalent shares of an acquiror or successor) (the “Conversion
Cap”).  The Issuer shall, within three Business Days of
delivery by a Holder of a Conversion Notice, notify such Holder in writing of
(i) the number of shares of Common Stock that would be issuable to such
Holder if such conversion requested in such Conversion Notice were effected in
full and (ii) the number of issued and outstanding shares of Common Stock
of the Issuer as of the most recent date such information is available to the
Issuer.  Whereupon, within three Business Days of such notice, the
Issuer shall issue to such Holder the number of shares of Common Stock issuable
upon conversion up to the Conversion Cap.  In connection with the
performance of this Section 5.13, such Holder agrees to furnish to the Issuer
any information reasonably requested by the Issuer in connection with the
Conversion Cap amount calculations.  Notwithstanding anything to the
contrary, to the extent any such issuance would cause a Holder or an Affiliate
thereof to be a “beneficial owner” of more than 9.9% of the issued and
outstanding shares of Common Stock (or successor shares), such conversion, share
settlement or issuance upon conversion as the case may be shall be void and of
no effect.  The limitations set forth in this Section 5.13 may
not be waived at any time by any Holder.  Any acquiror (or successor)
or the Issuer shall expressly assume the obligations of the Issuer in this
Section 5.13 with respect to the Notes in connection with any transaction
governed by Section 5.05 or otherwise in connection with a Fundamental
Change of Control.

       

      
        	
                SECTION 5.14.

              	
                General Provisions
      Applicable to Conversion.

              

      

       

      (a)          Provisions
of this Indenture that apply to conversion of all of a Note also apply to
conversion of a portion of a Note.

       

      A Holder
of Notes is not entitled to any rights of a holder of Common Stock until such
Holder has converted its Notes, and only to extent such Notes are deemed to have
been converted into shares of Common Stock pursuant to this
Section 5.14.

      
        
           

        

        
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      ARTICLE SIX

       

      COVENANTS

       

      
        	
                SECTION 6.01.

              	
                Payment of
      Notes.

              

      

       

      The
Issuer shall pay the principal of (and premium, if any) and interest on the
Notes in the manner provided in the Notes, the Registration Rights Agreement and
this Indenture.  An installment of principal of, or interest on, the
Notes shall be considered paid on the date it is due if the Trustee or Paying
Agent (other than the Issuer or an Affiliate thereof) holds on that date U.S.
Legal Tender designated for and sufficient to pay the
installment.  Interest on the Notes will be computed on the basis of a
360-day year comprised of twelve 30-day months.

       

      The
Issuer shall pay interest on overdue principal (including, without limitation,
post petition interest in a proceeding under any Bankruptcy Law), and overdue
interest, to the extent lawful, at the rate equal to 2% per annum in excess of the
then applicable rate on the Notes.

       

      
        	
                SECTION 6.02.

              	
                Maintenance of Office
      or Agency.

              

      

       

      The
Issuer shall maintain in the Borough of Manhattan, The City of New York,
the office or agency required under Section 2.03 (which may be an office of
the Trustee or an affiliate of the Trustee or Registrar).  The Issuer
shall give prompt written notice to the Trustee of the location, and any change
in the location, of such office or agency.  If at any time the Issuer
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the address of the Trustee set
forth in Section 14.02.

       

      The
Issuer may also from time to time designate one or more other offices or
agencies where the Notes may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations.  The
Issuer will give prompt written notice to the Trustee of any such designation or
rescission and of any change in the location of any such other office or
agency.

       

      The
Issuer hereby initially designates U.S. Bank National Association, located at
100 Wall Street, New York, NY 10005, Attention:  Corporate
Trust, as such office of the Issuer in accordance with
Section 2.03.

       

      
        	
                SECTION 6.03.

              	
                Corporate
      Existence.

              

      

       

      Except as
otherwise permitted by Article Seven, the Issuer shall do or cause to be
done all things reasonably necessary to preserve and keep in full force and
effect its corporate existence and the corporate, partnership or other existence
of each of its Restricted Subsidiaries in accordance with the respective
organizational documents of each such Restricted Subsidiary and the material
rights (charter and statutory) and material franchises of the Issuer and each of
its Restricted Subsidiaries; provided, however, that the Issuer
shall not be required to preserve any such right, franchise or corporate
existence with respect to itself or any Restricted Subsidiary, if the loss
thereof would not, individually or in the aggregate, have a material adverse
effect on the Issuer and the Guarantors, taken as a whole.

      
        
           

        

        
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                SECTION 6.04.

              	
                Payment of
      Taxes.

              

      

       

      The
Issuer and the Guarantors shall, and shall cause each of the Restricted
Subsidiaries to, pay or discharge or cause to be paid or discharged, before the
same shall become delinquent, (a) all material taxes, assessments and
governmental charges levied or imposed upon it or any of the Restricted
Subsidiaries or upon the income, profits or property of it or any of the
Restricted Subsidiaries and (b) all lawful claims for labor, materials and
supplies which, in each case, if unpaid, might by law become a liability or Lien
upon the property of it or any of the Restricted Subsidiaries which would
reasonably be expected to have a material adverse effect on the Issuer and the
Guarantors taken as a whole; provided, however, that the Issuer and
the Guarantors shall not be required to pay or discharge or cause to be paid or
discharged any such tax, assessment, charge or claim whose amount the
applicability or validity is being contested in good faith by appropriate
actions and for which appropriate provision has been made, or any such tax,
assessment, charge or claim that would not reasonably be expected to have a
material adverse effect on the Issuer and the Guarantors taken as a
whole.

       

      
        	
                SECTION 6.05.

              	
                Maintenance of
      Properties.

              

      

       

      The
Issuer shall cause all material properties owned by or leased by it or any of
its Restricted Subsidiaries used or useful to the conduct of its business or the
business of any of its Restricted Subsidiaries to be maintained and kept in
normal condition, repair and working order and supplied with all necessary
equipment and shall cause to be made all repairs, renewals, replacements, and
betterments thereof, all as in its judgment may be necessary, so that the
business carried on in connection therewith may be conducted at all times in a
commercially productive manner; provided, however, that nothing in this
Section 6.05 shall prevent the Issuer or any of its Restricted Subsidiaries
from discontinuing the use, operation or maintenance of any of such properties,
or disposing of any of them, if such discontinuance or disposal is desirable in
the conduct of the business of the Issuer or any such Restricted Subsidiary, and
if such discontinuance or disposal would not, individually or in the aggregate,
have a material adverse effect on the ability of the Issuer or the Guarantors to
perform each of their respective obligations hereunder; provided, further, that nothing in this
Section 6.05 shall prevent the Issuer or any of its Restricted Subsidiaries
from discontinuing or disposing of any properties to the extent otherwise
permitted by this Indenture.

       

      
        	
                SECTION 6.06.

              	
                Compliance
      Certificate; Notice of Default.

              

      

       

      (a)          The
Issuer shall deliver to the Trustee, within 120 days after the close of each
fiscal year, an Officers’ Certificate stating that a review of the activities of
the Issuer and its Subsidiaries has been made under the supervision of the
signing Officers with a view to determining whether the Issuer and the
Guarantors have kept, observed, performed and fulfilled their obligations under
this Indenture and further stating, as to each such Officer signing such
certificate, that to the best of such Officer’s knowledge, the Issuer and the
Guarantors during such preceding fiscal year has kept, observed, performed and
fulfilled each and every such covenant and no Default occurred during such year
and at the date of such certificate there is no Default that has occurred and is
continuing or, if such signers do know of such Default, the certificate shall
specify such Default and what action, if any, the Issuer is taking or proposes
to take with respect thereto.  The Officers’ Certificate shall also
notify the Trustee should the Issuer elect to change the manner in which it
fixes the fiscal year end.

      
        
           

        

        
          -87-

          
            

          

        

        
           

        

      

       

      (b)           The
Issuer shall deliver to the Trustee promptly and in any event within 15 days
after any Officer of the Issuer becomes aware of the occurrence of any Default
in an Officers’ Certificate specifying the Default and what action, if any, the
Issuer is taking or proposes to take with respect thereto.

       

      
        	
                SECTION 6.07.

              	
                Waiver of Stay,
      Extension or Usury Laws.

              

      

       

      The
Issuer and each Guarantor covenants (to the extent permitted by applicable law)
that it will not at any time insist upon, plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay or extension law or any
usury law or other law that would prohibit or forgive such Issuer or such
Guarantor from paying all or any portion of the principal of and/or interest on
the Notes or the Note Guarantee of any such Guarantor as contemplated herein,
wherever enacted, now or at any time hereafter in force, or which may affect the
covenants or the performance of this Indenture, and (to the extent permitted by
applicable law) each hereby expressly waives all benefit or advantage of any
such law, and covenants that it will not hinder, delay or impede the execution
of any power herein granted to the Trustee, but will suffer and permit the
execution of every such power as though no such law had been
enacted.

       

      
        	
                SECTION 6.08.

              	
                Limitations on
      Additional Indebtedness.

              

      

       

      (a)          The
Issuer will not, and will not permit any Restricted Subsidiary to, directly or
indirectly, incur any Indebtedness.

       

      (b)          Notwithstanding
Section 6.08(a), the Issuer and the Restricted Subsidiary shall be
permitted to incur “Permitted Indebtedness”.  Each of the following
shall be permitted (the “Permitted
Indebtedness”):

       

      (i)           Indebtedness
of the Issuer or any Guarantor under the ABL Facility in an aggregate principal
amount at any time outstanding not to exceed $80.0 million (with letters of
credit being deemed to have a principal amount equal to the maximum potential
liability of the Issuer or such Guarantor) less, to the extent a
permanent repayment and/or commitment reduction is required thereunder as a
result of such application, the aggregate amount of Net Available Proceeds
applied to repayments under the Credit Agreement in accordance with
Section 6.11;

       

      (ii)          The
Notes issued on the Issue Date and the Note Guarantees in respect
thereof;

       

      (iii)         Indebtedness
of the Issuer and the Restricted Subsidiaries to the extent outstanding on the
Issue Date (other than Indebtedness referred to in clauses (i) and (ii)
above, and immediately following the Issue Date after giving effect to the
intended use of proceeds of the Notes);

      
        
           

        

        
          -88-

          
            

          

        

        
           

        

      

       

      (iv)         Indebtedness
under Hedging Obligations (including Swap Obligations) of the Issuer or any
Restricted Subsidiary in the ordinary course and not for the purpose of
speculation;

       

      (v)          Indebtedness
of the Issuer owed to a Restricted Subsidiary and Indebtedness of any Restricted
Subsidiary owed to the Issuer or any other Restricted Subsidiary; provided, however, (a) that upon
any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or such
Indebtedness being owed to any Person other than the Issuer or a Restricted
Subsidiary, the Issuer or such Restricted Subsidiary, as applicable, shall be
deemed to have incurred Indebtedness not permitted by this clause (v);
(b) any such Indebtedness made by a Note Party shall be evidenced by a
promissory note pledged to the Noteholder Collateral Agent for the ratable
benefit of the Noteholder Secured Parties pursuant to the Collateral Agreement;
and (c) any such Indebtedness made by Note Parties to Subsidiaries that are
not Guarantors is either a Permitted Investment or permitted by
Section 6.09;

       

      (vi)     
   Indebtedness in respect of bid, performance, surety bonds,
statutory, appeal, export or import, indemnities, customs or revenue bonds or
similar instruments in the ordinary course of business and workers’ compensation
claims, self-insurance obligations and bankers acceptances issued for the
account of the Issuer or any Restricted Subsidiary in the ordinary course of
business, including guarantees or obligations of the Issuer or any Restricted
Subsidiary with respect to letters of credit supporting such bid, performance,
surety bonds and workers’ compensation claims, self-insurance obligations and
bankers acceptances;

       

      (vii)     
  Purchase Money Indebtedness incurred by the Issuer or any Restricted
Subsidiary, and Refinancing Indebtedness thereof, in an aggregate amount not to
exceed at any time outstanding the greater of $20.0 million and 12.5% of
Consolidated Net Tangible Assets at the time of the incurrence;

       

      (viii)      
Indebtedness arising from (a) the honoring by a bank or other financial
institution of a check, draft or similar instrument inadvertently (except in the
case of daylight overdrafts) drawn against insufficient funds in the ordinary
course of business; provided, however, that such
Indebtedness is extinguished within five (5) Business Days of incurrence and (b)
without duplication of clause (a), Banking Services Obligations;

       

      (ix)         Indebtedness
arising in connection with endorsement of instruments for deposit in the
ordinary course of business;

       

      (x)          Refinancing
Indebtedness with respect to Indebtedness incurred pursuant to clause
(ii), (iii), (xi) or (xii) of this Section 6.08(b) or this clause
(x);

      
        
           

        

        
          -89-

          
            

          

        

        
           

        

      

      (xi)         (A)
Acquired Indebtedness of the Issuer or any Restricted Subsidiary, and (B)
Indebtedness incurred by the Issuer or any Restricted Subsidiary in
contemplation of, or in connection with, or to provide all or any part of the
funds or credit support utilized to consummate, the transaction or series of
related transactions pursuant to which such Person became a Subsidiary of or was
otherwise acquired by the Issuer or a Restricted Subsidiary or was merged with
or into or consolidated with the Issuer or a Restricted Subsidiary of the
Issuer; provided that
such Indebtedness shall not exceed the greater of $15.0 million or 10% of the
Consolidated Net Tangible Assets at the time of incurrence; and

       

      (xii)        Acquired
Indebtedness of the Issuer or any Restricted Subsidiary assumed or acquired in
connection with a transaction governed by, and effected in accordance with,
Section 7.01(a) (except to the extent such Acquired Indebtedness was
incurred in connection with or in contemplation of such
acquisition);

       

      (xiii)       Indemnification,
adjustment of purchase price, earn-out or similar obligations, in each case,
incurred or assumed in connection with the acquisition or disposition of any
business or assets of the Issuer or any Restricted Subsidiary or Equity
Interests of a Restricted Subsidiary, other than guarantees of Indebtedness
incurred by any Person acquiring all or any portion of such business, assets or
Capital Stock for the purpose of financing any such acquisition; provided, that the maximum
aggregate liability in respect of all such obligations outstanding under this
clause (xiii) shall at no time exceed (a) in the case of an
acquisition, $5.0 million (provided that the amount of
such liability shall be deemed to be the amount thereof, if any, reflected on
the balance sheet of the Issuer or any Restricted Subsidiary (e.g., the amount of such
liability shall be deemed to be zero if no amount is reflected on such balance
sheet)) and (b) in the case of a disposition, the gross proceeds actually
received by the Issuer and the Restricted Subsidiaries in connection with such
disposition;

       

      (xiv)       Any
other Indebtedness of the Issuer or any Restricted Subsidiary if, after giving
effect thereto, the Total Leverage Ratio does not exceed 5.00:1.00;

       

      (xv)        Indebtedness of the
Issuer or any Restricted Subsidiary incurred in the ordinary course of
business under guarantees of Indebtedness of suppliers, licensees, franchisees
or customers in an aggregate amount, together with the aggregate amount of
Investments under clause (12) of the definition of “Permitted Investments,” not
to exceed $5.0 million at any time outstanding;

       

      (xvi)       The
issuance by any of the Issuer’s Restricted Subsidiaries to the Issuer or to any
of its Restricted Subsidiaries of shares of preferred stock; provided, however, that:

       

      (1)           any
subsequent issuance or transfer of Equity Interests that results in any such
preferred stock being held by a Person other than the Issuer or a Restricted
Subsidiary of the Issuer; and

       

      (2)           any
sale or other transfer of any such preferred stock to a Person that is not
either the Issuer or a Restricted Subsidiary of the Issuer, will be deemed, in
each case, to constitute an issuance of such preferred stock by such Restricted
Subsidiary that was not permitted by this clause (xvi)

      
        
           

        

        
          -90-

          
            

          

        

        
           

        

      

       

      (xvii)      (A)
The guarantee by the Issuer or any Restricted Subsidiary of the Issuer of
Indebtedness of the Issuer or a Restricted Subsidiary of the Issuer, in each
case, to the extent that the guaranteed Indebtedness was permitted to be
incurred by another provision of this Section 6.08  and (B)
guarantees by the Issuer or any Restricted Subsidiary of the Issuer provided to
the Excluded Joint Venture to the extent permitted by clause (24) of the
definition of “Permitted Investments”;

       

      (xviii)     Contribution
Indebtedness;

       

      (xix)       The
incurrence by the Issuer or any Restricted Subsidiary of Indebtedness consisting
of obligations to pay insurance premiums in an amount not to exceed the annual
premiums in respect of such insurance premiums at any one time
outstanding;

       

      (xx)        Indebtedness
related to unfunded pension fund and other employee benefit plan obligations and
liabilities to the extent they are permitted to remain unfunded under applicable
law;

       

      (xxi)       Indebtedness
supported by one or more letters of credit issued under the ABL Facility in
accordance with clause (i); provided that the amount of
Indebtedness permitted to be incurred under this clause (xxi) supported by any
such letter(s) of credit shall not exceed the amount of such letter(s) of
credit;

       

      (xxii)      Indebtedness
issued by the Issuer or any Guarantor to current or former officers, directors
and employees, their respective estates, spouses or former spouses to finance
the purchase or redemption of Equity Interests of Company or any of its direct
or indirect parent companies permitted by Section 6.09(b)(iv) hereof not in
excess of $2.0 million at any time outstanding;

       

      (xxiii)     The
incurrence by the Issuer or any Restricted Subsidiary of additional Indebtedness
or the issuance by the Issuer of Disqualified Stock or the issuance by any
Restricted Subsidiary of preferred stock in an aggregate principal amount (or
accreted value, as applicable) or liquidation value at any time outstanding,
including all Indebtedness incurred to renew, refund, refinance, replace,
defease or discharge any Indebtedness or liquidation value incurred pursuant to
this clause (xxii), not to exceed $5.0 million; and

       

      (xxiv)     Indebtedness
of the Issuer or any Restricted Subsidiaries in an amount not to exceed $1.5
million and incurred in connection with the sale of the Excluded Joint Venture;
provided that any such
Indebtedness shall be unsecured.

      
        
           

        

        
          -91-

          
            

          

        

        
           

        

      

      (c)           For
purposes of determining compliance with this Section 6.08, in the event
that an item of Indebtedness meets the criteria of more than one of the
categories of Permitted Indebtedness described in clauses (i) through (xxiv)
above, the Issuer shall classify and may reclassify, in its sole discretion,
such item of Indebtedness and may divide, classify and reclassify such
Indebtedness in more than one of the types of Indebtedness described, except
that Indebtedness incurred under the Credit Agreement on the Issue Date by the
Issuer or any Guarantor shall be deemed to have been incurred under clause (i)
above.  In addition, for purposes of determining any particular amount
of Indebtedness under this covenant, guarantees, Liens or letter of credit
obligations supporting Indebtedness otherwise included in the determination of
such particular amount shall not be included so long as incurred by a Person
that could have incurred such Indebtedness.

       

      
        	
                SECTION 6.09.

              	
                Limitations on
      Restricted Payments.

              

      

       

      (a)           The
Issuer will not, and will not permit any Restricted Subsidiary to, directly or
indirectly, make any Restricted Payment if at the time of such Restricted
Payment:

       

      (i)           A
Default shall have occurred and be continuing or shall occur as a consequence
thereof; or

       

      (ii)           The
amount of such Restricted Payment, when added to the aggregate amount of all
other Restricted Payments made after the Issue Date (other than Restricted
Payments made pursuant to clause (ii), (iii), (iv), (v), (vi), (viii), (ix) or
(x) of Section 6.09(b)), exceeds the sum (the “Restricted Payments Basket”)
of (without duplication):

       

      (1)           50%
of Consolidated Net Income for the period (taken as one accounting period) from
the beginning of the first fiscal quarter commencing after the Issue Date to the
end of the Issuer’s most recently ended fiscal quarter for which consolidated
financial statements are available (or, if such Consolidated Net Income shall be
a deficit, minus 100% of such aggregate deficit), plus

       

      (2)           Subject
to Section 6.09(b)(ii), 100% of the aggregate net cash proceeds received by
the Issuer and 100% of the Fair Market Value at the time of receipt of assets
other than cash, if any, received by the Issuer, either (x) as
contributions to the common equity of the Issuer after the Issue Date or
(y) from the issuance and sale of Qualified Equity Interests after the
Issue Date, other than (a) any such proceeds or assets received from a
Subsidiary of the Issuer; (b) Excluded Contributions; or
(c) Designated Preferred Stock, plus

       

      (3)           The
aggregate amount by which Indebtedness (other than any Subordinated
Indebtedness) incurred by the Issuer or any Restricted Subsidiary subsequent to
the Issue Date is reduced on the Issuer’s balance sheet upon the conversion or
exchange (other than by a Subsidiary of the Issuer) into Qualified Equity
Interests (less the amount of any cash, or the fair value of assets, distributed
by the Issuer or any Restricted Subsidiary upon such conversion or exchange
(other than payments of interest with respect thereto), plus

       

      (4)           In
the case of the disposition or repayment of or return on any Investment that was
treated as a Restricted Payment made after the Issue Date, an amount (to the
extent not included in the computation of Consolidated Net Income) equal to the
lesser of (i) 100% of the aggregate amount received by the Issuer or any
Restricted Subsidiary in cash or other property (valued at the Fair Market Value
thereof) as the return of capital with respect to such Investment and
(ii) the amount of such Investment that was treated as a Restricted
Payment, plus

      
        
           

        

        
          -92-

          
            

          

        

        
           

        

      

       

      (5)           Upon
a Redesignation of an Unrestricted Subsidiary as a Restricted Subsidiary, the
lesser of (i) the Fair Market Value of the Issuer’s proportionate interest
in such Subsidiary immediately following such Redesignation, and (ii) the
aggregate amount of the Issuer’s Investments in such Subsidiary to the extent
such Investments reduced the Restricted Payments Basket and were not previously
repaid or otherwise reduced.

       

      (b)          The
foregoing provisions will not prohibit:

       

      (i)           The
payment by the Issuer or any Restricted Subsidiary of any dividend or the
consummation of any redemption within 60 days after the date of declaration of
the dividend or giving or any redemption notice, if on the date of declaration
or notice, the payment or redemption would have complied with the provisions of
this Indenture;

       

      (ii)           The
making of any Restricted Payment in exchange for, or out of or with the net cash
proceeds of the substantially concurrent issuance and sale (other than to a
Subsidiary of the Issuer) of, Qualified Equity Interests of the Issuer or from
the substantially concurrent contribution of common equity capital to the
Issuer; provided, that
net cash proceeds from the issuance and sale of Qualified Equity Interests or
from contributions to equity capital of the Issuer under this clause (ii) shall
not be included for purpose of calculating amounts under
Section 6.09(a)(ii)(2);

       

      (iii)           The
redemption of Subordinated Indebtedness of the Issuer or any Restricted
Subsidiary (a) in exchange for, or out of the proceeds of the substantially
concurrent issuance and sale of, Qualified Equity Interests, (b) in
exchange for, or out of the proceeds of the substantially concurrent incurrence
of, Refinancing Indebtedness permitted to be incurred under Section 6.08
and the other terms of this Indenture;

       

      (iv)           Payments
by the Issuer to redeem Equity Interests of the Issuer held by officers,
directors or employees or former officers, directors or employees (or their
transferees, estates or beneficiaries under their estates), upon their death,
disability, retirement, severance or termination of employment or service; provided, that the aggregate
cash consideration paid for all such redemptions shall not exceed the sum of
(A) $2.0 million during any calendar year (with unused amounts being
available to be used in the following calendar year, but not in any succeeding
calendar year) plus (B) the amount of any net cash proceeds received by or
contributed to the Issuer from the issuance and sale after the Issue Date of
Qualified Equity Interests of the Issuer to its officers, directors or employees
that have not been applied to the payment of Restricted Payments pursuant to
this clause (iv), plus (C) the net cash proceeds of any “key-man” life
insurance policies that have not been applied to the payment of Restricted
Payments pursuant to this clause (iv);

      
        
           

        

        
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      (v)           Payments
of cash, dividends, distributions, advances or other Restricted Payments by the
Issuer or any Restricted Subsidiary to allow the payment of cash in lieu of the
issuance of fractional shares or upon the purchase, redemption or acquisition of
fractional shares, including in connection with (i) the exercise of options
or warrants, (ii) the conversion or exchange of Equity Interests,
(iii) stock dividends, splits or combinations or business combinations, or
(iv) the conversion of the Notes or any payment made with respect
thereto;

       

      (vi)          Repurchases
of Equity Interests (i) deemed to occur upon the exercise of stock options
or other similar stock-based awards under equity plans of the Issuer or any of
the Issuer’s Restricted Subsidiaries, warrants or other Equity Interests to the
extent such Equity Interests represent a portion of the exercise price of those
stock options, other similar stock-based awards under equity plans of the Issuer
or any Restricted Subsidiary, warrants or other Equity Interests or (ii) in
connection with a gross up for tax withholding related to such Equity
Interests;

       

      (vii)         Additional
Restricted Payments of $5.0 million;

       

      (viii)        Restricted
Payments that are made with Excluded Contributions;

       

      (ix)          The
redemption, of Indebtedness that is contractually subordinated to the Notes
pursuant to provisions similar to those described in Section 3.01 or
Section 6.11 hereof; provided that, prior to such
redemption, the Issuer (or a third party to the extent permitted by this
Indenture) has made a Change of Control Offer or Asset Sale Offer, as the case
may be, with respect to the Notes as a result of such Fundamental Change of
Control or Asset Sale, as the case may be, and has repurchased all Notes validly
tendered and not withdrawn in connection with such Fundamental Change of Control
Offer or Asset Sale Offer, as the case may be;

       

      (x)           The
distribution, as a dividend or otherwise, of shares of Capital Stock of, or
Indebtedness owed to the Issuer or a Restricted Subsidiary of the Issuer by,
Unrestricted Subsidiaries;

       

      (xi)          Any
Restricted Payment made in connection with the Transactions;

       

      (xii)         Payments
and distributions to dissenting stockholders pursuant to applicable law,
pursuant to or in connection with a consolidation, merger or transfer of all or
substantially all of the assets of the Issuer and its Restricted Subsidiaries
taken as a whole that complies with the terms of this Indenture, including
Article Seven hereof; or

       

      (xiii)         Repurchases
of the Notes;

       

      provided, that (a) in
the case of any Restricted Payment pursuant to clause (iii)(c) above, no Default
shall have occurred and be continuing or occur as a consequence thereof and
(b) no issuance and sale of Qualified Equity Interests pursuant to clause
(ii), (iii) or (iv)(B) above shall increase the Restricted Payments
Basket.

       

      
        
           

        

        
          -94-

          
            

          

        

        
           

        

      

       

      For
purposes of determining compliance with this Section 6.09, in the event
that a Restricted Payment meets the criteria of more than one of the categories
of Restricted Payments described in clauses (i) through (xiii) of
Section 6.09(b) hereof, or is entitled to be incurred pursuant to
Section 6.09(a) hereof, the Issuer will be entitled to classify such
Restricted Payment (or portion thereof) on the date of its payment or later
reclassify such Restricted Payment (or portion thereof) in any manner that
complies with this Section 6.09.

       

      
        	
                SECTION 6.10.

              	
                Limitations on
      Liens.

              

      

       

      The
Issuer shall not, and shall not permit any Restricted Subsidiary to, directly or
indirectly, create, incur, assume or permit or suffer to exist any Lien of any
nature whatsoever against any assets of the Issuer or any Restricted Subsidiary
(including Equity Interests of a Restricted Subsidiary but excluding Equity
Interests or assets of the Excluded Joint Venture), whether owned at the Issue
Date or thereafter acquired, or any proceeds therefrom, or assign or otherwise
convey any right to receive income or profits therefrom securing any
Indebtedness (other than Permitted Liens).

       

      
        	
                SECTION 6.11.

              	
                Limitations on Asset
      Sales.

              

      

       

      (a)          The
Issuer will not, and will not permit any Restricted Subsidiary to, directly or
indirectly, consummate any Asset Sale unless:

       

      (i)           The
Issuer or such Restricted Subsidiary receives consideration at the time of such
Asset Sale at least equal to the Fair Market Value of the assets included in
such Asset Sale;

       

      (ii)           Either
at least 75% of the total consideration received in such Asset Sale consists of
cash or Cash Equivalents; and

       

      (iii)           With
respect to any Asset Sale of any Notes Collateral, the Net Available Proceeds
from such Asset Sale are paid directly by the purchaser thereof to an Asset Sale
Proceeds Account over which the Noteholder Collateral Agent has a fully
perfected first-priority lien (subject to Permitted Liens) pursuant to
arrangements reasonably satisfactory to the Noteholder Collateral Agent for
application in accordance with this Section 6.11.

       

      (b)          For
purposes of clause (ii) of Section 6.11(a), the following shall be deemed
to be cash:

       

      (i)           The
amount (without duplication) of any Indebtedness (other than Subordinated
Indebtedness) of the Issuer or such Restricted Subsidiary that is expressly
assumed by the transferee in such Asset Sale and with respect to which the
Issuer or such Restricted Subsidiary, as the case may be, is unconditionally
released by the holder of such Indebtedness,

       

      (ii)           The
amount of any obligations received from such transferee that are within 90 days
converted by the Issuer or such Restricted Subsidiary to cash (to the extent of
the cash actually so received), and

       

      
        
           

        

        
          -95-

          
            

          

        

        
           

        

      

      (iii)           The
Fair Market Value of (i) any assets (other than securities) received by the
Issuer or any Restricted Subsidiary to be used by it in the Permitted Business,
(ii) Equity Interests in a Person that is a Restricted Subsidiary or in a
Person engaged in a Permitted Business that shall become a Restricted Subsidiary
immediately upon the acquisition of such Person by the Issuer or (iii) a
combination of (i) and (ii).

       

      (c)          If
at any time any non-cash consideration received by the Issuer or any Restricted
Subsidiary, as the case may be, pursuant to Section 6.11(b)(ii) above in
connection with any Asset Sale is repaid or converted into or sold or otherwise
disposed of for cash (other than interest received with respect to any such
non-cash consideration), then the date of such repayment, conversion or
disposition shall be deemed to constitute the date of an Asset Sale hereunder
and the Net Available Proceeds thereof shall be applied in accordance with this
Section 6.11.

       

      (d)          If
the Issuer or any Restricted Subsidiary engages in an Asset Sale, the Issuer or
such Restricted Subsidiary shall, by no later than 12 months following the later
of the consummation thereof and the Issuer’s or Restricted Subsidiary’s receipt
of the Net Available Proceeds, have applied all or any of the Net Available
Proceeds therefrom to:

       

      (i)           If
such Net Available Proceeds are proceeds of an Asset Sale of any asset that
constitutes Collateral, prepay permanently or repay permanently any Indebtedness
secured by such Collateral Security Documents; provided, that if such Net
Available Proceeds are proceeds of an Asset Sale of ABL Collateral, such Net
Available Proceeds shall be applied as required under the ABL
Facility;

       

      (ii)           If
such Net Available Proceeds are proceeds of any Asset Sale (other than an Asset
Sale of Collateral), to permanently reduce any Other Pari Passu Indebtedness;
provided, however, that if any Pari
Passu Indebtedness is so reduced, the Issuer will equally and ratably reduce
Indebtedness under the Notes by making an offer to all holders of Notes to
purchase at a purchase price equal to 100% of the principal amount thereof, plus
accrued and unpaid interest, if any, the pro rata principal amount of the Notes;
or

       

      (iii)           (A)
invest in the purchase of assets (other than securities) to be used by the
Issuer or any Restricted Subsidiary in, or make capital expenditure with respect
to, the Permitted Business, (B) acquire Equity Interests in a Person that
is a Guarantor or in a Person engaged in a Permitted Business that shall become
a Guarantor immediately upon the consummation of such acquisition or (C) a
combination of (A) and (B).  The Issuer will be deemed to have
complied with the provisions set forth in clause (d) of this
Section 6.11 if (i) within 365 days after the Asset Sale that
generated the Net Available Proceeds, the Issuer (or the applicable Restricted
Subsidiary) has entered into and not abandoned or rejected a binding agreement
to acquire all or substantially all of the assets of, or any Equity Interests of
another Permitted Business or to make a capital expenditure or acquire other
assets that are used or useful in a Permitted Business or to make a capital
expenditure or acquire other assets that are used or useful in a Permitted
Business and that acquisition or capital expenditure is thereafter completed
within 180 days after the end of such 365-day period or (ii) in the event
such binding agreement described in the preceding clause (i) is canceled or
terminated for any reason before such Net Available Proceeds are applied, the
Issuer (or the applicable Restricted Subsidiary) enters into another such
binding commitment within 180 days of such cancellation or termination of the
prior binding commitment; provided that if any second
binding commitment is later canceled or terminated for any reason or not entered
into before such Net Available Proceeds are applied within 180 days of such
second binding commitment, then such Net Available Proceeds shall constitute
Excess Proceeds (as defined
below).  In addition, during the period following the entering into of
a binding agreement with respect to an Asset Sale and prior to the consummation
thereof (which period cannot exceed 365 days), cash (whether or not actual Net
Available Proceeds of such Asset Sale) used for the purposes described in
subclause (A), (B) and (C) of this clause (iii) that are
designated as uses in accordance with this clause (iii), and not previously
or subsequently so designated in respect of any other Asset Sale, shall be
deemed to be Net Available Proceeds applied in accordance with this
clause (iii).

       

      
        
           

        

        
          -96-

          
            

          

        

        
           

        

      

       

      The
amount of Net Available Proceeds not applied or invested as provided in this
Section 6.11(d) will constitute “Excess Proceeds.”

       

      (e)          When
the aggregate amount of Excess Proceeds equals or exceeds $15.0 million, the
Issuer will be required to make an offer to purchase from all Holders and, if
applicable, make an offer to purchase or redeem any Other Pari Passu Lien
Obligations of the Issuer the provisions of which require the Issuer to do so
with the proceeds from any Asset Sales, in an aggregate principal amount of
Notes and such Other Pari Passu Lien Obligations equal to the amount of such
Excess Proceeds as follows:

       

      (i)           The
Issuer will (a) make an offer to purchase (a “Net Proceeds Offer”) to all
Holders in accordance with the procedures set forth in this Indenture, and
(b)  make an offer to purchase or redeem any such Other Pari Passu Lien
Obligations (and permanently reduce the related loan commitment (if any) in an
amount equal to the principal amount so redeemed), pro rata in proportion to the
respective principal amounts of the Notes and such other Indebtedness required
to be redeemed or purchased, the maximum principal amount of Notes and Other
Pari Passu Lien Obligations that may be purchased or redeemed out of the amount
(the “Payment Amount”)
of such Excess Proceeds;

       

      (ii)          The
offer price for the Notes will be payable in cash in an amount equal to 100% of
the principal amount of the Notes tendered pursuant to a Net Proceeds Offer,
plus accrued and unpaid interest thereon, if any, to the date such Net Proceeds
Offer is consummated (the “Offered Price”), in accordance
with the procedures set forth in this Indenture and the redemption price for
such Other Pari Passu Lien Obligations (the “Pari Passu Indebtedness
Price”) shall be as set forth in the related documentation governing such
Indebtedness;

       

      (iii)         If
the aggregate Offered Price of Notes validly tendered and not withdrawn by
Holders thereof exceeds the pro rata portion of the
Payment Amount allocable to the Notes, Notes to be purchased will be selected on
a pro rata basis;
and

       

      
        
           

        

        
          -97-

          
            

          

        

        
           

        

      

      (iv)         Upon
completion of such Net Proceeds Offer in accordance with the foregoing
provisions, the amount of Excess Proceeds with respect to which such Net
Proceeds Offer was made shall be deemed to be zero, if applicable, and released
from the Asset Sale Proceeds Account.

       

      (f)          To
the extent that the sum of the aggregate Offered Price of Notes tendered
pursuant to a Net Proceeds Offer and the aggregate Pari Passu Indebtedness Price
paid to the holders of such Other Pari Passu Lien Obligations is less than the
Payment Amount relating thereto (such difference constituting a “Net Proceeds Surplus”), the
Issuer may use the Net Proceeds Surplus, or a portion thereof, for general
corporate purposes, subject to the provisions of this Indenture.

       

      (g)          Upon
the commencement of a Net Proceeds Offer, the Issuer shall send, by first class
mail, a notice to the Trustee and to each Holder at is registered
address.  The notice shall contain all instructions and materials
necessary to enable such Holder to tender Notes pursuant to the Net Proceeds
Offer.  Any Net Proceeds Offer shall be made to all
Holders.  The notice, which shall govern the terms of the Net Proceeds
Offer, shall state:

       

      (i)           That
the Net Proceeds Offer is being made pursuant to this Section;

       

      (ii)          The
Payment Amount, the Offered Price, and the date on which Notes tendered and
accepted for payment shall be purchased, which date shall be at least 30 days
and not later than 60 days from the date such notices is mailed (the “Net Proceeds Payment
Date”);

       

      (iii)         That
any Notes not tendered or accepted for payment shall continue to accrue
interest;

       

      (iv)         That,
unless the Issuer defaults in making such payment, any Notes accepted for
payment pursuant to the Net Proceeds Offer shall cease to accrue interest on and
after the Net Proceeds Payment Date;

       

      (v)          That
Holders electing to have any Notes purchased pursuant to any Net Proceeds Offer
shall be required to surrender the Notes, with the form entitled “Option of
Holder to Elect Purchase” on the reverse of the Note completed, or transfer by
book-entry transfer, to the Issuer, a Depositary, if appointed by the Issuer, or
the Paying Agent at the address specified in the notice at least three days
before the Net Proceeds Payment Date;

       

      (vi)         That
Holders shall be entitled to withdraw their election if the Issuer, the
Depositary or the Paying Agent, as the case may be, receives, not later than the
Net Proceeds Payment Date, a notice setting forth the name of the Holder, the
principal amount of the Note the Holder delivered for purchase and a statement
that such Holder is withdrawing his election to have such Note
purchased;

       

      
        
           

        

        
          -98-

          
            

          

        

        
           

        

      

      (vii)        That
if the aggregate principal amount of Notes surrendered by Holders exceeds the
Payment Amount, the Issuer shall select the Notes to be purchased on a pro rata basis (with such
adjustments as may be deemed appropriate by the Issuer so that only Notes in
denominations of $1,000, or integral multiples thereof, shall be purchased);
and

       

      (viii)       That
Holders whose Notes were purchased only in part shall be issued new Notes equal
in principal amount to the unpurchased portion of the Notes surrendered (or
transferred by book-entry).

       

      (h)         On
the Net Proceeds Payment Date, the Issuer shall, to the extent
lawful:  (1) accept for payment all Notes or portions thereof
properly tendered pursuant to the Net Proceeds Offer, subject to pro ration if
the aggregate Notes tendered exceed the Payment Amount allocable to the Notes;
(2) deposit with the Paying Agent U.S. Legal Tender equal to the lesser of
the Payment Amount allocable to the Notes and the amount sufficient to pay the
Offered Price in respect of all Notes or portions thereof so tendered; and
(3) deliver or cause to be delivered to the Trustee the Notes so accepted
together with an Officers’ Certificate stating the aggregate principal amount of
Notes or portions thereof being repurchased by the Issuer.  The Issuer
shall publicly announce the results of the Net Proceeds Offer on the Net
Proceeds Payment Date.

       

      (i)          The
Paying Agent shall promptly mail to each Holder of Notes so tendered the Offered
Price for such Notes, and the Trustee shall promptly authenticate pursuant to an
Authentication Order and mail (or cause to be transferred by book-entry) to each
Holder a new Note equal in principal amount to any unrepurchased portion of the
Notes surrendered, if any; provided, that each such new
Note shall be in principal amount of $1,000 or an integral multiple
thereof.  However, if the Net Proceeds Payment Date is on or after an
interest Record Date and on or before the related Interest Payment Date, any
accrued and unpaid interest shall be paid to the Person in whose name a Note is
registered at the Close of Business on such Record Date, and no Additional
Interest shall be payable to Holders who tender Notes pursuant to the Net
Proceeds Offer.

       

      (j)          The
Issuer will comply with applicable tender offer rules, including the
requirements of Rule 14e-1 under the Exchange Act and any other applicable laws
and regulations in connection with the purchase of Notes pursuant to a Net
Proceeds Offer.  To the extent that the provisions of any securities
laws or regulations conflict with the provisions of this Section 6.11, the
Issuer shall comply with the applicable securities laws and regulations and will
not be deemed to have breached its obligations under this Section 6.11 by
virtue of this compliance.

       

      
        	
                SECTION 6.12.

              	
                Limitations on
      Transactions with Affiliates.

              

      

       

      (a)          The
Issuer will not, and will not permit any Restricted Subsidiary to, directly or
indirectly, in one transaction or a series of related transactions, sell, lease,
transfer or otherwise dispose of any of its assets to, or purchase any assets
from, or enter into any contract, agreement, understanding, loan, advance or
guarantee with, or for the benefit of, any Affiliate (an “Affiliate Transaction”),
unless:

       

      
        
           

        

        
          -99-

          
            

          

        

        
           

        

      

      (i)           Such
Affiliate Transaction is on terms that are no less favorable to the Issuer or
the relevant Restricted Subsidiary than those that would have been obtained in a
comparable transaction at such time on an arm’s-length basis by the Issuer or
that Restricted Subsidiary from a Person that is not an Affiliate of the Issuer
or that Restricted Subsidiary; and

       

      (ii)           The
Issuer delivers to the Trustee:

       

      (x)          With
respect to any Affiliate Transaction involving aggregate value in excess of
$5.0 million, an Officers’ Certificate certifying that such Affiliate
Transaction complies with clause (1) above and (x) a Secretary’s
Certificate which sets forth and authenticates a resolution that has been
adopted by a majority of the directors of the Issuer who are disinterested with
respect to such Affiliate Transaction, approving such Affiliate Transaction or
(y) if there are no such disinterested directors, a written opinion
described in clause (y) below; and

       

      (y)          With
respect to any Affiliate Transaction involving aggregate value of $10.0 million
or more, the certificates described in the preceding clause (x) and a
written opinion as to the fairness of such Affiliate Transaction to the Issuer
or such Restricted Subsidiary from a financial point of view issued by an
Independent Financial Advisor to the Board of Directors of the
Issuer.

       

      (b)          The
foregoing restrictions shall not apply to:

       

      (i)           Transactions
exclusively between or among (a) the Issuer and one or more Restricted
Subsidiaries or (b) Restricted Subsidiaries;

       

      (ii)          Reasonable
director, officer and employee compensation (including bonuses) and other
benefits (including retirement, health, stock option and other benefit plans),
indemnification arrangements, compensation, employment and severance agreements,
in each case approved by the Board of Directors;

       

      (iii)         The
entering into of a tax sharing agreement, or payments pursuant thereto, between
the Issuer and/or one or more Subsidiaries, on the one hand, and any other
Person with which the Issuer or such Subsidiaries are required or permitted to
file a consolidated tax return or with which the Issuer or such Subsidiaries are
part of a consolidated group for tax purposes, on the other hand, which payments
by the Issuer and the Restricted Subsidiaries are not in excess of the tax
liabilities that would have been payable by them on a stand-alone
basis;

       

      (iv)         Any
Restricted Payments which are made in accordance with Section 6.09, any
Permitted Investment or any Permitted Lien;

       

      (v)          Entering
into an agreement that provides registration rights to the shareholders of the
Issuer or amending any such agreement with shareholders of the Issuer and the
performance of such agreements;

       

      
        
           

        

        
          -100-

          
            

          

        

        
           

        

      

       

      (vi)         Any
transaction with a joint venture or similar entity which would constitute an
Affiliate Transaction solely because the Issuer or a Restricted Subsidiary owns
an equity interest in or otherwise controls such joint venture or similar
entity; provided, that
no Affiliate of the Issuer or any of its Subsidiaries other than the Issuer or a
Restricted Subsidiary shall have a beneficial interest in such joint venture or
similar entity;

       

      (vii)        Any
merger, consolidation or reorganization of the Issuer with an Affiliate, solely
for the purposes of (a) reorganizing to facilitate an initial public
offering of securities of the Issuer or any holding company of the Issuer,
(b) forming a holding company or (c) reincorporating the Issuer in a
new jurisdiction;

       

      (viii)       (a)
Any agreement in effect on the Issue Date and disclosed in the Offering
Memorandum, as in effect on the Issue Date or as thereafter amended or replaced
in any manner, that, taken as a whole, is not more adverse to the interests of
the Holders in any material respect than such agreement as it was in effect on
the Issue Date or (b) any transaction pursuant to any agreement referred to
in the immediately preceding clause (a);

       

      (ix)          Any
contributions to the common equity capital of the Issuer;

       

      (x)        
  Pledges of Equity Interests of Unrestricted
Subsidiaries;

       

      (xi)         The
Transactions and/or the payment of any reasonable fees or expenses to the extent
incurred as of the Issue Date in connection therewith if documented as of Issue
Date;

       

      (xii)        Transactions
with an Affiliate where the only consideration paid is Qualified Equity
Interests of the Issuer;

       

      (xiii)       Payment
of loans (or cancellation of loans) to employees or consultants in the ordinary
course of business in aggregate amount not to exceed $2.0 million;
or

       

      (xiv)       Supply
and purchase contracts with joint ventures entered into the ordinary course of
business consistent with past practice.

       

      
        	
                SECTION 6.13.

              	
                Limitations on
      Dividend and Other Restrictions Affecting Restricted
      Subsidiaries.

              

      

       

      The
Issuer will not, and will not permit any Restricted Subsidiary to, directly or
indirectly, create or otherwise cause or permit to exist or become effective any
consensual encumbrance or consensual restriction on the ability of any
Restricted Subsidiary to:

       

      (a)          Pay
dividends or make any other distributions on or in respect of its Equity
Interests;

       

      
        
           

        

        
          -101-

          
            

          

        

        
           

        

      

       

      (b)         Make
loans or advances or pay any Indebtedness or other obligation owed to the Issuer
or any other Restricted Subsidiary; or

       

      (c)          Transfer
any of its assets to the Issuer or any other Restricted Subsidiary;

       

      except
for:

       

      (i)           Encumbrances
or restrictions existing under or by reason of applicable law, regulation or
order;

       

      (ii)          Encumbrances
or restrictions existing under, or otherwise required by or imposed pursuant to
the terms of Note Documents;

       

      (iii)         Non-assignment
provisions of any contract or any lease entered into in the ordinary course of
business;

       

      (iv)         Encumbrances
or restrictions existing under or required by or otherwise imposed pursuant to
the terms of agreements existing on the date of this Indenture (including,
without limitation, the Credit Agreement) as in effect on that
date;

       

      (v)          Restrictions
relating to any Lien permitted under this Indenture imposed by the holder of, or
otherwise required by or imposed pursuant to the terms of such
Lien;

       

      (vi)         Restrictions
imposed under any agreement to sell assets permitted under this Indenture to any
Person pending the closing of such sale;

       

      (vii)        Any
instrument governing Acquired Indebtedness, which encumbrance or restriction is
not applicable to any Person, or the properties or assets of any Person, other
than the Person or the properties or assets of the Person so
acquired;

       

      (viii)       Any
other agreement governing Indebtedness entered into after the Issue Date that
contains encumbrances and restrictions that are not materially more restrictive,
taken as a whole, with respect to any Restricted Subsidiary than those in effect
on the Issue Date with respect to that Restricted Subsidiary pursuant to
agreements in effect on the Issue Date;

       

      (ix)         
Customary provisions in partnership agreements, limited liability company
organizational governance documents, joint venture, asset sale and stock sale
agreements and other similar agreements entered into in the ordinary course of
business that restrict the transfer of ownership interests in such partnership,
limited liability company, joint venture or similar Person;

       

      (x)           Purchase
Money Indebtedness incurred in compliance with Section 6.08 that impose
restrictions of the nature described in clause (c) above on the assets
acquired;

       

      
        
           

        

        
          -102-

          
            

          

        

        
           

        

      

      (xi)          Restrictions
on cash or other deposits or net worth imposed by suppliers or landlords under
contracts entered into in the ordinary course of business;

       

      (xii)         Encumbrances
or restrictions contained in security agreements or mortgages securing
Indebtedness of a Restricted Subsidiary to the extent such encumbrances or
restrictions restrict the transfer of assets subject to such security agreements
or mortgages;

       

      (xiii)        Encumbrances
or restrictions contained in Indebtedness of Foreign Subsidiaries, or municipal
loan or related agreements entered into in connection with the incurrence of
industrial revenue bonds, permitted to be incurred under this Indenture; provided, that any such
encumbrances or restrictions are ordinary and customary with respect to the type
of Indebtedness being incurred under the relevant circumstances and do not, in
the good faith judgment of the Board of Directors of the Issuer, materially
impair the Issuer’s ability to make payment on the Notes when due;
and

       

      (xiv)        Any
encumbrances or restrictions imposed by any amendments or refinancings of the
contracts, instruments or obligations referred to in clauses (i) through (xiii)
above; provided, that
such amendments or refinancings are no more materially restrictive, taken as a
whole, with respect to such encumbrances and restrictions than those prior to
such amendment or refinancing.

       

      
        	
                SECTION 6.14.

              	
                Additional Note
      Guarantees.

              

      

       

      (a)          The
Issuer shall cause each Subsidiary (including any newly formed or newly acquired
Subsidiary or newly designated Restricted Subsidiary) (other than any designated
Unrestricted Subsidiary, Foreign Subsidiary or the Excluded Joint Venture) to,
within twenty (20) days of its acquisition, formation or designation
to:

       

      (i)           In
case of a newly formed or newly acquired Subsidiary, be designated as a
Restricted Subsidiary;

       

      (ii)          Execute
and deliver to the Trustee (a) a supplemental indenture pursuant to which
such Restricted Subsidiary shall unconditionally guarantee all of the Issuer’s
obligations under the Notes and this Indenture, (b) a notation of guarantee
in respect of its Note Guarantee, in each case in form and substance reasonably
satisfactory to the Trustee;

       

      (iii)         Pledge
its assets and have it stock pledged as Collateral pursuant to the Security
Documents and execute and deliver to the Trustee (a) a supplement to the
Collateral Agreement, (b) a supplement to the Intercreditor Agreement and
(c) other applicable Security Documents, in each case in form and substance
reasonably satisfactory to the Trustee; and

       

      (iv)         Deliver
to the Trustee one or more opinions of counsel that such documents required by
Section 6.14(a)(i), (x) have been duly authorized, executed and
delivered by such Restricted Subsidiary and (y) constitute a valid and
legally binding obligation of such Restricted Subsidiary in accordance with
their terms.

       

      
        
           

        

        
          -103-

          
            

          

        

        
           

        

      

      Thereafter,
such Restricted Subsidiary shall be a Guarantor for all purposes of this
Indenture.

       

      (b)          Notwithstanding
Section 6.14(a), a Guarantor will be automatically and unconditionally
released and discharged from its obligations under its Note Guarantee, this
Indenture and the Registration Rights Agreement under the circumstances set
forth in Section 13.05.  The form of the Note Guarantee is
attached hereto as Exhibit B.

       

      
        	
                SECTION 6.15.

              	
                Further
      Assurances.

              

      

       

      To the
extent required by applicable law or the Security Documents, or upon reasonable
request of the Trustee, the Issuer shall, and shall cause each Guarantor to, at
their sole expense, subject to the terms, conditions and provisions of the
Intercreditor Agreement, and the Security Documents
promptly:  (1) execute, acknowledge and deliver such Security
Documents, the Intercreditor Agreement, instruments, financing statements,
certificates, notices and other documents, make such filings, recordations and
take such other actions as may be reasonably required by applicable law or as
may be reasonably necessary or advisable to create and perfect, protect, assure,
transfer, confirm or enforce first priority and second priority (as applicable)
Liens and security interests in respect of the Collateral (including, without
limitation, the filing of financing statements under the Uniform Commercial
Code, and customary short-form security agreements with respect to Intellectual
Property with the U.S. Patent and Trademark Office and the U.S. Copyright Office
and recording of Mortgages on each Material Real Property or other real property
constituting Collateral); and (2) subject to the terms, conditions and
provisions of the Intercreditor Agreement and the Security Documents,
promptly deliver to the Noteholder Collateral Agent certificates, if any,
representing the capital stock and membership interests of the
Guarantors.  In addition, from time to time, the Issuer will
reasonably promptly secure the obligations under the Indenture, Security
Documents and Intercreditor Agreement by pledging or creating, or causing to be
pledged or created, perfected security interests with respect to the Collateral,
in each case to the extent reasonably requested by the Trustee, and in
accordance with the Security Documents (including the Intercreditor
Agreement).  Such security interests and Liens will be created under
the Security Documents in form and substance reasonably satisfactory to the
Trustee, and the Issuer shall deliver or cause to be delivered to Trustee all
such instruments and documents (including certificates, legal opinions, title
insurance policies and lien searches) as the Trustee shall reasonably request to
evidence compliance with this covenant.  The Issuer agrees to provide
promptly after reasonable request by the Trustee such evidence as to the
perfection and priority status of each such security interest and
Lien.  In furtherance of the foregoing, the Issuer will give prompt
notice to the Trustee of the acquisition by it or any of the Guarantors after
the Issue Date of any new Material Real Property.  With respect to any
fee interest in any Material Real Property located in the United
States (individually and collectively, the “Premises”) owned by the Issuer
or a Guarantor on the Issue Date or acquired by the Issuer or a Guarantor after
the Issue Date, the Issuer or Guarantor shall, in case of properties
existing on the Issue Date, within 75 days after the Issue Date and, in case of
future acquired properties, within 75 days of such acquisition, as applicable,
deliver to the Noteholder Collateral Agent the following documents and
instruments with respect to any such acquired Material Real Property that does
not constitute an Excluded Asset:

       

      
        
           

        

        
          -104-

          
            

          

        

        
           

        

      

      (a)          The
Issuer shall deliver to the Noteholder Collateral Agent, as mortgagee, fully
executed counterparts of Mortgages duly executed by the Issuer or the applicable
Guarantor, together with evidence of the completion (or reasonably satisfactory
arrangements for the completion) of all recordings and filings of such Mortgages
(and payment of any taxes or fees in connection therewith) as may be reasonably
necessary to create a valid, perfected Lien against the properties purported to
be covered thereby;

       

      (b)          The
Issuer shall deliver to the Noteholder Collateral Agent, at the Issuer’s sole
cost and expense, mortgagee’s title insurance policies in favor of the
Noteholder Collateral Agent, as mortgagee for the ratable benefit of itself and
the Holders of the Notes in an amount equal to 110% of the net book value of the
applicable Material Real Property (such net book value for each Material Real
Property existing as of the Issue Date is set forth on Schedule II), and in
the form necessary, with respect to the property purported to be covered by such
Mortgage, to insure that that the interests created by the Mortgage constitute
valid Liens thereon free and clear of all Liens other than Permitted Liens, and
such policies shall also include, to the extent available, such other advisable
lenders’ endorsements and shall be accompanied by evidence of the payment in
full of all premiums thereon; and

       

      (c)          The
Issuer shall, or shall cause the Guarantors to, deliver to the Noteholder
Collateral Agent, at the Issuer’s sole cost and expense, with respect to each
such Material Real Property, (i) corporate and local law Opinions of
Counsel, as the Noteholder Collateral Agent or the Trustee shall reasonably
request (which opinions shall confirm, among other things, the due
authorization, execution and delivery and the enforceability of such Mortgages
in accordance with their terms), (ii)  ALTA surveys in form and substance
reasonably acceptable to the title company to cause the title company to remove
the standard survey exception and to issue a survey endorsement with respect to
each of the title policies referenced in Section 6.15(b), and
(iii) such affidavits that the title company shall reasonably request in
connection with the issuance of the title policies referenced in
Section 6.15(b).

       

      
        	
                SECTION 6.16.

              	
                Reports to
      Holders.

              

      

       

      Whether
or not required by the SEC, so long as any Notes are outstanding, the Issuer
will furnish to the Holders of Notes, or file electronically with the SEC
through the SEC’s Electronic Data Gathering, Analysis and Retrieval System (or
any successor system), within the time periods that would be applicable to the
Issuer if it were subject to Section 13(a) or 15(d) of the Exchange
Act:

       

      (i)           All
quarterly and annual financial and other information that would be required to
be contained in a filing with the SEC on Forms 10-Q and 10-K if the Issuer were
required to file these Forms; and

       

      (ii)          All
current reports that would be required to be filed with the SEC on Form 8-K if
the Issuer were required to file these reports.

       

      In
addition, whether or not required by the SEC, the Issuer will file a copy of all
of the information and reports referred to in clauses (i) and (ii) above with
the SEC for public availability within the time periods specified in the SEC’s
rules and regulations (unless the SEC will not accept the filing) and make the
information available to securities analysts and prospective investors upon
request.

       

      
        
           

        

        
          -105-

          
            

          

        

        
           

        

      

      Notwithstanding
anything to the contrary, the Issuer will be deemed to have complied with its
obligations in the preceding two paragraphs following the filing of the Shelf
Registration Statement and prior to the effectiveness thereof if the Shelf
Registration Statement includes the information specified in clause (i) above at
the times it would otherwise be required to file such Forms.  If any
direct or indirect parent of the Issuer has complied with the reporting
requirements of Section 13 or 15(d) of the Exchange Act, if applicable, and
has furnished the Holders of Notes, or filed electronically with the SEC’s
Electronic Data Gathering, Analysis and Retrieval System (or any successor
system), the reports described herein with respect to such parent (including any
financial information required by Regulation S-X relating to the Issuer and
the Guarantors), the Issuer shall be deemed to be in compliance with the
provisions of this Section 6.16.

       

      The
Issuer and the Guarantors have agreed that, for so long as any Notes remain
outstanding, the Issuer will furnish to the Holders and to securities analysts
and prospective investors, upon their request, the information required to be
delivered pursuant to Rule 144A(d)(4) under the Securities Act.  Until
the filing of the Shelf Registration Statement, nothing herein shall be
construed to require the Issuer to include in any such reports any information
specified in Rule 3-10 or 3-16 of Regulation S-X.

       

      
        	
                SECTION 6.17.

              	
                Limitations on
      Designation of Unrestricted Subsidiaries.

              

      

       

      (a)          The
Issuer may designate any Subsidiary (including any newly formed or newly
acquired Subsidiary) of the Issuer as an “Unrestricted Subsidiary” under this
Indenture (a “Designation”) only
if:

       

      (i)           No
Default shall have occurred and be continuing at the time of or after giving
effect to such Designation; and

       

      (ii)          Either
(A) the Subsidiary to be so Designated has total assets of $1,000 or less;
or (B) the Issuer would be permitted to make, at the time of such
Designation, (x) a Permitted Investment or (y) an Investment pursuant
to Section 6.09(a), in either case, in an amount (the “Designation Amount”) equal to
the Fair Market Value of the Issuer’s proportionate interest in such Subsidiary
on such date.

       

      (b)          No
Subsidiary shall be Designated as an “Unrestricted Subsidiary” if such
Subsidiary or any of its Subsidiaries owns (i) (A) any Equity Interests
(other than Qualified Equity Interests) of the Issuer or (B) any Equity
Interests of any Restricted Subsidiary that is not a Subsidiary of the
Subsidiary to be so Designated or (ii) is a Person with respect to which neither
the Issuer nor any Restricted Subsidiary has any direct or indirect obligations
(A) to subscribe for additional Equity Interests or (B) to maintain or
preserve the Person’s financial condition or cause the Person to achieve any
specified levels of operating results, unless such obligation is a Permitted
Investment or is otherwise permitted under Section 6.09.

       

      
        
           

        

        
          -106-

          
            

          

        

        
           

        

      

      (c)          If,
at any time, any Unrestricted Subsidiary fails to meet the requirements of
Section 6.17(a) and (b) as an Unrestricted Subsidiary, it shall
thereafter cease to be an Unrestricted Subsidiary for purposes of this Indenture
and any Indebtedness of the Subsidiary and any Liens on assets of such
Subsidiary shall be deemed to be incurred by a Restricted Subsidiary as of the
date and, if the Indebtedness is not permitted to be incurred under
Section 6.08 or the Lien is not permitted under Section 6.10, the
Issuer shall be in default of the applicable Section.

       

      (d)          The
Issuer may redesignate an Unrestricted Subsidiary as a Restricted Subsidiary (a
“Redesignation”) only
if:

       

      (i)           No
Default shall have occurred and be continuing at the time of and after giving
effect to such Redesignation; and

       

      (ii)          All
Liens, Indebtedness and Investments of such Unrestricted Subsidiary outstanding
immediately following such Redesignation would, if incurred or made at such
time, have been permitted to be incurred or made for all purposes of this
Indenture.

       

      (e)          All
Designations and Redesignations must be evidenced by resolutions of the Board of
Directors of the Issuer, delivered to the Trustee, certifying compliance with
the foregoing provisions.

       

      
        	
                SECTION 6.18.

              	
                Limitation on the
      Issuance or Sale of Equity Interests of Restricted
      Subsidiaries.

              

      

       

      [RESERVED]

       

      
        	
                SECTION 6.19.

              	
                Information Regarding
      Collateral.

              

      

       

      (a)          The
Issuer will furnish to the Noteholder Collateral Agent and the Trustee, with
respect to the Issuer or any Guarantor, prompt written notice at least fifteen
(15) days prior to any change in such Person’s (i) corporate name,
(ii) jurisdiction of organization or formation, (iii) identity or
corporate structure or (iv) Federal Taxpayer Identification
Number.  The Issuer also agrees promptly to notify the Noteholder
Collateral Agent and the Trustee if any material portion of the Collateral is
damaged or destroyed.

       

      (b)          Each
year, at the time of delivery of the annual financial statements with respect to
the preceding fiscal year, the Issuer shall deliver to the Trustee a certificate
of a financial officer setting forth the information required pursuant to the
Perfection Certificate or confirming that there has been no change in such
information since the date of the prior delivered Perfection
Certificate.

       

      
        	
                SECTION 6.20.

              	
                Impairment of Security
      Interest.

              

      

       

      The
Issuer will not, and will not permit any of its Restricted Subsidiaries to, take
or knowingly or negligently omit to take, any action which action or omission
would reasonably be expected to have the result of materially impairing the
security interest with respect to the Collateral for the benefit of Noteholder
Secured Parties, except as expressly permitted by Articles Eleven or Twelve, the
Security Documents or the Intercreditor Agreement.

       

      
        
           

        

        
          -107-

          
            

          

        

        
           

        

      

       

      
        	
                SECTION 6.21.

              	
                Insurance.

              

      

       

      (a)         The
Issuer and Guarantors (x) will cause any insurance policies covering any
Collateral to be endorsed or otherwise amended to include a customary lender’s
loss payable endorsement, in form and substance reasonably satisfactory to the
Trustee, which endorsement shall provide that, from and after the Issue Date,
subject to the terms, conditions and provisions of the Intercreditor Agreement,
if the insurance carrier shall have received written notice from the Trustee of
the occurrence and continuance of an Event of Default, the insurance carrier
shall pay all proceeds otherwise payable to the Grantors under such policies
directly to the Trustee during the continuance of an Event of Default;
(y) cause each such policy to provide that it shall not be canceled,
modified or not renewed (i) by reason of nonpayment of premium upon not
less than 10 days’ prior written notice thereof by the insurer to the Trustee
(giving the Trustee the right to cure defaults in the payment of premiums) or
(ii) for any other reason upon not less than 30 days’ prior written notice
thereof by the insurer to the Trustee; (c) will deliver to the Trustee,
prior to the cancellation, modification or nonrenewal of any such policy of
insurance, a draft copy of a renewal or replacement policy (or other evidence of
renewal of a policy previously delivered to the Trustee) and reasonably promptly
thereafter deliver a duplicate original copy of such policy together with
evidence reasonably satisfactory to the Trustee of payment of the premium as
required by such insurance.

       

      (b)         The
Grantors will notify the Trustee promptly whenever any separate insurance
concurrent in form or contributing in the event of loss with that required to be
maintained under this covenant is taken out by any Grantor; and promptly deliver
to the Trustee a duplicate copy of such policy or policies.

       

      
        	
                SECTION 6.22.

              	
                Consolidated Secured
      Debt Ratio.

              

      

       

      Commencing
April 1, 2012, the Issuer will not permit the Consolidated Secured Debt Ratio as
at the last day of each fiscal month for any period set forth below to
exceed:

       

      
        
          
            
              	
                      Period

                    	 	
                      Consolidated

                      Secured Debt Ratio

                    
	
                       

                      April
      1, 2012 — March 31, 2013

                    	 	
                       

                      7.50
      : 1.00

                    
	
                      April
      1, 2013 — March 31, 2014

                    	 	
                      7.00
      : 1.00

                    
	
                      April
      1, 2014 — March 31, 2015

                    	 	
                      6.75
      : 1.00

                    
	
                      April
      1, 2015 — and thereafter

                    	 	
                      6.50
      : 1.00

                    

            

          

        

      

       

      
        
           

        

        
          -108-

          
            

          

        

        
           

        

      

      

      ARTICLE SEVEN

       

      SUCCESSOR
CORPORATION

       

      
        	
                SECTION 7.01.

              	
                Mergers,
      Consolidations, Etc.

              

      

       

      (a)          The
Issuer will not, directly or indirectly, in a single transaction or a series of
related transactions, (i) consolidate or merge with or into another Person
(other than a merger with an Affiliate solely for the purpose of and with the
effect of changing the Issuer’s jurisdiction of incorporation to another State
of the United States or forming a holding company for the Issuer (provided that such holding
company becomes a Guarantor)), or sell, lease, transfer, convey or otherwise
dispose of or assign all or substantially all of the assets of the Issuer or the
Issuer and the Restricted Subsidiaries (taken as a whole) or (ii) adopt a
Plan of Liquidation unless, in either case:

       

      (i)           Either:

       

      (1)           The
Issuer will be the surviving or continuing Person; or

       

      (2)           The
Person formed by or surviving such consolidation or merger or to which such
sale, lease, conveyance or other disposition shall be made (or, in the case of a
Plan of Liquidation, any Person to which assets are transferred) (collectively,
the “Successor”) is a
corporation, limited liability company or limited partnership organized and
existing under the laws of any State of the United States or the District of
Columbia, and the Successor expressly assumes, by supplemental indenture,
security documents and intercreditor agreement in form and substance reasonably
satisfactory to the Trustee, all of the obligations of the Issuer under the
Notes, this Indenture, the applicable Security Documents, the Intercreditor
Agreement and the Registration Rights Agreement; provided, that if such Person
is a limited liability company or a partnership, such Person will form a Wholly
Owned Restricted Subsidiary that is a corporation and cause such Subsidiary to
become a co-issuer of the Notes; and

       

      (ii)           Immediately
prior to and immediately after giving effect to such transaction and the
assumption of the obligations as set forth in clause (i)(B) above and the
incurrence of any Indebtedness to be incurred in connection therewith, and the
use of any net proceeds therefrom on a pro forma basis, no Default shall have
occurred and be continuing.

       

      For
purposes of this Section 7.01(a), any Indebtedness of the Successor which
was not Indebtedness of the Issuer immediately prior to the transaction shall be
deemed to have been incurred in connection with such transaction.

       

      (b)         
Except as provided in Section 13.05, no Guarantor may consolidate with or
merge with or into (whether or not such Guarantor is the surviving Person)
another Person, unless:

       

      (i)           Either:

       

      
        
           

        

        
          -109-

          
            

          

        

        
           

        

      

       

      (1)           Such
Guarantor will be the surviving or continuing Person; or

       

      (2)           The
Person formed by or surviving any such consolidation or merger assumes, by
supplemental indenture, security documents and intercreditor agreement in form
and substance reasonably satisfactory to the Trustee, all of the obligations of
such Guarantor under the Note Guarantee of such Guarantor, this Indenture, the
applicable Security Documents, the Intercreditor Agreement and the Registration
Rights Agreement, and is a corporation, limited liability company or limited
partnership organized and existing under the laws of any State of the United
States or the District of Columbia; and

       

      (ii)           Immediately
after giving effect to such transaction, no Default shall have occurred and be
continuing.

       

      (c)          For
purposes of the foregoing, the transfer (by lease, assignment, sale or
otherwise, in a single transaction or series of transactions) of all or
substantially all of the properties or assets of one or more Restricted
Subsidiaries, the Equity Interests of which constitute all or substantially all
of the properties and assets of the Issuer, will be deemed to be the transfer of
all or substantially all of the properties and assets of the
Issuer.

       

      (d)         Upon
any consolidation, combination or merger of the Issuer or a Guarantor, or any
transfer of all or substantially all of the assets of the Issuer in accordance
with the foregoing, in which the Issuer or such Guarantor is not the continuing
obligor under the Notes or its Note Guarantee, except as provided in
Section 13.05, the surviving entity formed by such consolidation or into
which the Issuer or such Guarantor is merged or the Person to which the
conveyance, lease or transfer is made will succeed to, and be substituted for,
and may exercise every right and power of, the Issuer or such Guarantor under
this Indenture, the Notes, the Note Guarantees, the Security Documents and
Intercreditor Agreement with the same effect as if such surviving entity had
been named therein as the Issuer or such Guarantor and, except in the case of a
lease, the Issuer or such Guarantor, as the case may be, will be released from
the obligation to pay the principal of and interest on the Notes or in respect
of its Note Guarantee, as the case may be, and all of the Issuer’s or such
Guarantor’s other obligations and covenants under the Notes, this Indenture and
its Note Guarantee, if applicable.

       

      (e)          Notwithstanding
the foregoing, any Restricted Subsidiary may consolidate with, merge with or
into or convey, transfer or lease, in one transaction or a series of
transactions, all or substantially all of its assets to the Issuer or another
Restricted Subsidiary; provided, that if any party
to any such transaction is a Note Party, the surviving entity, as the case may
be, shall be a Note Party.

       

      
        
           

        

        
          -110-

          
            

          

        

        
           

        

      

      

      ARTICLE EIGHT

       

      DEFAULT
AND REMEDIES

       

      
        	
                SECTION 8.01.

              	
                Events of
      Default.

              

      

       

      Each of
the following is an “Event of
Default”:

       

      (i)           Failure
by the Issuer to pay interest on any of the Notes when it becomes due and
payable and the continuance of any such failure for thirty (30)
days;

       

      (ii)          Failure
by the Issuer to pay the principal on any of the Notes when it becomes due and
payable, whether at Stated Maturity, upon redemption, upon a Fundamental Change
of Control Purchase Date, upon acceleration or otherwise;

       

      (iii)         Failure
by the Issuer to comply with its obligations to convert Notes in accordance with
this Indenture upon exercise of a Holder’s conversion right herein and such
failure continues for a period of ten (10) days;

       

      (iv)         Failure
by the Issuer to provide a Fundamental Change of Control Notice to Holders in
accordance with the terms of this Indenture and such failure continues for a
period of ten (10) days;

       

      (v)          Failure
by the Issuer to issue Additional Shares or make the relevant Make Whole Payment
in accordance with this Indenture and such failure continues for a period of ten
(10) days;

       

      (vi)         Failure
by the Issuer to pay the Cash Conversion Amount in accordance with this
Indenture and such failure continues for a period of fifteen (15)
days;

       

      (vii)        Failure
by the Issuer to comply with Section 7.01 or in respect of its obligations
to purchase Notes upon a Fundamental Change of Control as described in
Section 3.01 (whether or not such compliance is prohibited by the
subordination provisions of this Indenture);

       

      (viii)       Failure
by the Issuer or any Guarantor (A) to comply with any other agreement or
covenant in this Indenture (other than Section 6.22), the Security
Documents or the Intercreditor Agreement and continuance of this failure for 60
days after notice of the failure has been given to the Issuer by the Trustee or
by the Holders of at least 25% of the aggregate principal amount of the Notes
then outstanding and (B) to comply with the covenant provided in
Section 6.22 and continuance of this failure to comply for 30 days after
notice of the failure has been given to the Issuer by the Trustee or by Holders
of at least 25% of the aggregate principal amount of the Notes then
outstanding;

       

      
        
           

        

        
          -111-

          
            

          

        

        
           

        

      

       

      (ix)          Event
of default under any mortgage, indenture or other instrument or agreement under
which there is issued Indebtedness of the Issuer or any Restricted Subsidiary,
whether such Indebtedness now exists or is incurred after the Issue Date, if
such event of default is a default relating to a failure to pay at stated
maturity thereof or would enable or permit the holder or holders thereof or any
trustee or agent on their behalf to cause such Indebtednesss to become due and
payable prior to scheduled maturity and such event of default continues for a
period of twenty (20) days,  provided, that the principal
amount of such Indebtedness, together with any other Indebtedness with respect
to which a default has occurred and is continuing, aggregates $10.0 million or
more;

       

      (x)           One
or more final non-appealable judgments or orders that exceed $10.0 million in
the aggregate (net of amounts covered by insurance or bonded) for the payment of
money have been entered by a court or courts of competent jurisdiction against
the Issuer or any Restricted Subsidiary and such judgment or judgments have not
been satisfied, stayed, annulled, discharged or rescinded within 60 days after
the applicable judgment becomes final and non-appealable;

       

      (xi)          The
Issuer or any Significant Subsidiary pursuant to or within the meaning of any
Bankruptcy Law:

       

      (1)           Commences
a voluntary case,

       

      (2)           Consents
to the entry of an order for relief against it in an involuntary
case,

       

      (3)           Consents
to the appointment of a Custodian of it or for all or substantially all of its
assets, or

       

      (4)           Makes
a general assignment for the benefit of its creditors;

       

      (xii)         A
court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

       

      (1)           Is
for relief against the Issuer or any Significant Subsidiary as debtor in an
involuntary case,

       

      (2)           Appoints
a Custodian of the Issuer or any Significant Subsidiary or a Custodian for all
or substantially all of the assets of the Issuer or any Significant Subsidiary,
or

       

      (3)           Orders
the liquidation of the Issuer or any Significant Subsidiary,

       

      and the
order or decree remains unstayed and in effect for 60 consecutive
days;

       

      (xiii)        Any
Note Guarantee of any Significant Subsidiary ceases to be in full force and
effect (other than in accordance with the terms of such Note Guarantee and this
Indenture) or is declared null and void and unenforceable or found to be invalid
or any Guarantor denies its liability under its Note Guarantee (other than by
reason of release of a Guarantor from its Note Guarantee in accordance with the
terms of this Indenture and the Note Guarantee); or

       

      
        
           

        

        
          -112-

          
            

          

        

        
           

        

      

       

      (xiv)       Any
security interest and Lien purported to be created by any Security Document with
respect to any Collateral, individually or in the aggregate, having a fair
market value in excess of $5.0 million at any time shall cease to be in full
force and effect, or shall cease to give the Noteholder Collateral Agent, for
the benefit of the applicable Noteholder Secured Parties, the Liens, rights,
powers and privileges purported to be created and granted thereby (including a
perfected first priority security interest in and Lien on, all of the Collateral
thereunder (except as otherwise expressly provided in the Indenture, the
Intercreditor Agreement or Security Documents)) in favor of the Noteholder
Collateral Agent, or shall be asserted by the Issuer or any other Guarantor not
to be, (or any action shall be taken by the Issuer or any Guarantor to
discontinue unless otherwise permitted) a valid, perfected, first priority
(except as otherwise expressly provided in the Indenture, the Intercreditor
Agreement or Security Documents) security interest in or Lien on the Collateral
covered thereby; except in each case to the extent that any such loss of
perfection or priority results from the failure of the Trustee or Noteholder
Collateral Agent to maintain possession of certificates actually delivered to it
representing securities pledged under the Security Documents) or take other
actions required to maintain the creation, perfection or priority of such
security interest and Lien.

       

      
        	
                SECTION 8.02.

              	
                Acceleration.

              

      

       

      If an
Event of Default specified in clause (xi) or (xii) of Section 8.01 with
respect to the Issuer occurs, all outstanding Notes shall become due and payable
without any further action or notice.  If an Event of Default (other
than an Event of Default specified in clause (xi) or (xii) of Section 8.01
with respect to the Issuer) shall have occurred and be continuing under this
Indenture, the Trustee, by written notice to the Issuer, or the Holders of at
least 25% in aggregate principal amount of the Notes then outstanding, by
written notice to the Issuer and the Trustee, may declare (an “acceleration declaration”) all
amounts owing under the Notes to be due and payable immediately.  Upon
such acceleration declaration, the aggregate principal of and accrued and unpaid
interest on the outstanding Notes shall become due and payable immediately;
provided, however, that after such
acceleration, but before a judgment or decree based on acceleration, the Holders
of a majority in aggregate principal amount of such outstanding Notes may
rescind and annul such acceleration:

       

      (i)           If
the rescission would not conflict with any judgment or decree;

       

      (ii)          If
all existing Events of Default have been cured or waived except nonpayment of
principal and interest that has become due solely because of this
acceleration;

       

      (iii)         To
the extent the payment of such interest is lawful, interest on overdue
installments of interest and overdue principal, which has become due otherwise
than by such declaration of acceleration, has been paid;

       

      
        
           

        

        
          -113-

          
            

          

        

        
           

        

      

       

      (iv)         If
the Issuer has paid to the Trustee its reasonable compensation and reimbursed
the Trustee of its expenses, disbursements and advances; and

       

      (v)          In
the event of a cure or waiver of an Event of Default of the type set forth in
Section 8.01(xi) or (xii), the Trustee shall have received an Officers’
Certificate and an Opinion of Counsel that such Event of Default has been cured
or waived.

       

      No such
rescission shall affect any subsequent Default or impair any right consequent
thereto.

       

      
        	
                SECTION 8.03.

              	
                Other
      Remedies.

              

      

       

      Subject
to the terms, conditions, and provisions of the Intercreditor Agreement, an
Event of Default occurs and is continuing, the Trustee may pursue any available
remedy by proceeding at law or in equity to collect the payment of principal of,
or interest on, the Notes or to enforce the performance of any provision of the
Notes or this Indenture.

       

      The
Trustee may maintain a proceeding even if it does not possess any of the Notes
or does not produce any of them in the proceeding.  A delay or
omission by the Trustee or any Holder in exercising any right or remedy accruing
upon an Event of Default shall not impair the right or remedy or constitute a
waiver of or acquiescence in the Event of Default.  No remedy is
exclusive of any other remedy.  All available remedies are cumulative
to the extent permitted by law.

       

      
        	
                SECTION 8.04.

              	
                Waiver of Past
      Defaults.

              

      

       

      Subject
to Sections 2.09, 8.07 and 11.02, the Holders of a majority in principal
amount of the outstanding Notes (which may include consents obtained in
connection with a tender offer or exchange offer of Notes) by notice to the
Trustee may waive an existing Default and its consequences, except a continuing
Default in the payment of principal of, or interest on, any Note as specified in
Section 8.01(i) or (ii); provided, however, that the Holders of
a majority in aggregate principal amount of the then-outstanding Notes may
rescind an acceleration and its consequences, including any related payment
default that resulted from such acceleration.  The Issuer shall
deliver to the Trustee an Officers’ Certificate stating that the requisite
percentage of Holders have consented to such waiver and attaching copies of such
consents.  When a Default is waived, it is cured and
ceases.

       

      
        	
                SECTION 8.05.

              	
                Control by
      Majority.

              

      

       

      The
Holders of not less than a majority in principal amount of the outstanding Notes
may direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee or exercising any trust or power conferred on
it.  Subject to Section 9.01, however, the Trustee may refuse to
follow any direction that conflicts with any law or this Indenture, that the
Trustee determines may be unduly prejudicial to the rights of another Holder, or
that may involve the Trustee in personal liability; provided, that the Trustee
may take any other action deemed proper by the Trustee which is not inconsistent
with such direction.

       

      
        
           

        

        
          -114-

          
            

          

        

        
           

        

      

      In the
event the Trustee takes any action or follows any direction pursuant to this
Indenture, the Trustee shall be entitled to indemnification against any loss or
expense caused by taking such action or following such direction.

       

      
        	
                SECTION 8.06.

              	
                Limitation on
      Suits.

              

      

       

      No Holder
will have any right to institute any proceeding with respect to this Indenture
or for any remedy thereunder, unless the Trustee:

       

      (i)           has
failed to act for a period of 60 days after receiving written notice of a
continuing Event of Default by such Holder and a request to act by Holders of at
least 25% in aggregate principal amount of Notes outstanding;

       

      (ii)          has
been offered indemnity satisfactory to it in its reasonable judgment;
and

       

      (iii)         has
not received from the Holders of a majority in aggregate principal amount of the
outstanding Notes a direction inconsistent with such request.

       

      However,
such limitations do not apply to a suit instituted by a Holder of any Note for
enforcement of payment of the principal of or interest on such Note on or after
the due date therefor (after giving effect to the grace period specified in
Section 8.01(i)).

       

      A Holder
may not use this Indenture to prejudice the rights of another Holder or to
obtain a preference or priority over such other Holder.

       

      
        	
                SECTION 8.07.

              	
                Rights of Holders to
      Receive Payment.

              

      

       

      Notwithstanding
any other provision of this Indenture, the right of any Holder to receive
payment of principal of, and interest on, a Note, on or after the respective due
dates therefor, or to bring suit for the enforcement of any such payment on or
after such respective dates, shall not be impaired or affected without the
consent of the Holder.

       

      
        	
                SECTION 8.08.

              	
                Collection Suit by
      Trustee.

              

      

       

      If a
Default in payment of principal or interest specified in Section 8.01(i) or
(ii) occurs and is continuing, the Trustee may recover judgment in its own name
and as trustee of an express trust against the Issuer or any other obligor on
the Notes for the whole amount of principal and accrued interest and fees
remaining unpaid, together with interest on overdue principal and, to the extent
that payment of such interest is lawful, interest on overdue installments of
interest, in each case at the rate per annum borne by the Notes
and such further amount as shall be sufficient to cover the costs and expenses
of collection, including the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel.

       

      
        
           

        

        
          -115-

          
            

          

        

        
           

        

      

      
        	
                SECTION 8.09.

              	
                Trustee May File
      Proofs of Claim.

              

      

       

      The
Trustee may file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any
claim for the compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel) and the Holders allowed in any judicial proceedings
relating to the Issuer, their creditors or their property and shall be entitled
and empowered to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute the same, and any Custodian in
any such judicial proceedings is hereby authorized by each Holder to make such
payments to the Trustee and, in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agent and counsel, and any other amounts due the
Trustee under Section 9.07.  Nothing herein contained shall be
deemed to authorize the Trustee to authorize or consent to or accept or adopt on
behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.  The Trustee shall be entitled to participate as a member
of any official committee of creditors in the matters as it deems necessary or
advisable.

       

      
        	
                SECTION 8.10.

              	
                Priorities.

              

      

       

      If the
Trustee or Noteholder Collateral Agent collects any money or property pursuant
to this Article Eight, it shall pay out the money or property (subject to
the Intercreditor Agreement) in the following order:

       

      First:  to
the Trustee and Noteholder Collateral Agent for amounts due under
Section 9.07 or Section 12.11;

       

      Second:  to
Holders for interest accrued on the Notes, ratably, without preference or
priority of any kind, according to the amounts due and payable on the Notes for
interest;

       

      Third:  to
Holders for principal amounts due and unpaid on the Notes, ratably, without
preference or priority of any kind, according to the amounts due and payable on
the Notes for principal; and

       

      Fourth:  to
the Issuer or, if applicable, the Guarantors, as their respective interests may
appear.

       

      The
Trustee, upon prior notice to the Issuer, may fix a record date and payment date
for any payment to Holders pursuant to this Section 8.10.

       

      
        	
                SECTION 8.11.

              	
                Undertaking for
      Costs.

              

      

       

      In any
suit for the enforcement of any right or remedy under this Indenture or in any
suit against the Trustee or Noteholder Collateral Agent for any action taken or
omitted by it as Trustee or Noteholder Collateral Agent, a court in its
discretion may require the filing by any party litigant in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys’ fees and expenses,
against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant.  This
Section 8.11 does not apply to a suit by the Trustee or Noteholder
Collateral Agent, a suit by a Holder pursuant to Section 8.07, or a suit by
a Holder or Holders of more than 10% in principal amount of the outstanding
Notes.

       

      
        
           

        

        
          -116-

          
            

          

        

        
           

        

      

       

      ARTICLE NINE

       

      TRUSTEE

       

      
        	
                SECTION 9.01.

              	
                Duties of
      Trustee.

              

      

       

      (a)          If
a Default has occurred and is continuing, the Trustee shall exercise such of the
rights and powers vested in it by this Indenture and use the same degree of care
and skill in their exercise as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.

       

      (b)          Except
during the continuance of a Default:

       

      (i)           The
Trustee need perform only those duties as are specifically set forth herein or
in the Trust Indenture Act and no duties, covenants, responsibilities or
obligations shall be implied in this Indenture against the Trustee.

       

      (ii)           In
the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed
therein, upon certificates (including Officers’ Certificates) or opinions
(including Opinions of Counsel and opinions relating to fair market value)
furnished to the Trustee and conforming to the requirements of this
Indenture.  However, in the case of any such certificates or opinions
which by any provision hereof are specifically required to be furnished to the
Trustee, the Trustee shall examine the certificates and opinions to determine
whether or not they conform to the requirements of this Indenture.

       

      (c)          Notwithstanding
anything to the contrary herein, the Trustee may not be relieved from liability
for its own negligent action, its own negligent failure to act, or its own
willful misconduct, except that:

       

      (i)           This
paragraph does not limit the effect of Section 9.01(b).

       

      (ii)           The
Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it is proved that the Trustee was negligent in
ascertaining the pertinent facts.

       

      (iii)           The
Trustee shall not be liable with respect to any action it takes or omits to take
in good faith in accordance with a direction received by it pursuant to
Section 8.05.

      
        
           

        

        
          -117-

          
            

          

        

        
           

        

      

       

      (d)          No
provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of
its duties hereunder or to take or omit to take any action under this Indenture
or take any action at the request or direction of Holders if it shall have
reasonable grounds for believing that repayment of such funds is not assured to
it.

       

      (e)          Whether
or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to this
Section 9.01.

       

      (f)          The
Trustee shall not be liable for interest on any money received by it except as
the Trustee may agree in writing with the Issuer.  Money held in trust
by the Trustee need not be segregated from other funds except to the extent
required by law.

       

      (g)          In
the absence of bad faith, negligence or willful misconduct on the part of the
Trustee, the Trustee shall not be responsible for the application of any money
by any Paying Agent other than the Trustee.

       

      
        	
                SECTION 9.02.

              	
                Rights of
      Trustee.

              

      

       

      Subject
to Section 9.01:

       

      (a)          The
Trustee may rely conclusively on any resolution, certificate (including any
Officers’ Certificate), statement, instrument, opinion (including any Opinion of
Counsel), notice, request, direction, consent, order, bond, debenture, or other
paper or document believed by it to be genuine and to have been signed or
presented by the proper Person.  The Trustee need not investigate any
fact or matter stated in the document.

       

      (b)          Before
the Trustee acts or refrains from acting, it may require an Officers’
Certificate and an Opinion of Counsel, which shall conform to the provisions of
Section 14.05.  The Trustee shall not be liable for any action it
takes or omits to take in good faith in reliance on such Officers’ Certificate
or Opinion of Counsel.

       

      (c)          The
Trustee may act through its attorneys and agents and shall not be responsible
for the misconduct or negligence of any agent (other than an agent who is an
employee of the Trustee) appointed with due care.

       

      (d)          The
Trustee shall not be liable for any action it takes or omits to take in good
faith which it reasonably believes to be authorized or within its rights or
powers under this Indenture.

       

      (e)          The
Trustee may consult with counsel of its selection and the advice or opinion of
such counsel as to matters of law shall be full and complete authorization and
protection from liability in respect of any action taken, omitted or suffered by
it hereunder in good faith and in accordance with the advice or opinion of such
counsel.

       

      (f)          The
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request, order or direction of any of the
Holders pursuant to the provisions of this Indenture, unless such Holders shall
have offered to the Trustee reasonable security or indemnity satisfactory to it
against the costs, expenses and liabilities which may be incurred therein or
thereby.

       

      
        
           

        

        
          -118-

          
            

          

        

        
           

        

      

       

      (g)         The
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate (including any Officers’ Certificate),
statement, instrument, opinion (including any Opinion of Counsel), notice,
request, direction, consent, order, bond, debenture, or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit and, if the Trustee
shall determine to make such further inquiry or investigation, it shall be
entitled, upon reasonable notice to the Issuer, to examine the books, records,
and premises of the Issuer, personally or by agent or attorney at the sole cost
of the Issuer.

       

      (h)    
     The Trustee shall not be required to give any bond
or surety in respect of the performance of its powers and duties
hereunder.

       

      (i)          
The permissive rights of the Trustee to do things enumerated in this Indenture
shall not be construed as duties.

       

      (j)           Except
with respect to Section 6.01 and 6.06, the Trustee shall have no duty to
inquire as to the performance of the Issuer with respect to the covenants
contained in Article Six.  In addition, the Trustee shall not be
deemed to have knowledge of an Event of Default except (i) any Default or
Event of Default occurring pursuant to Sections 6.01, 8.01(i) or 8.01(ii)
or (ii) any Default or Event of Default of which the Trustee shall have
received written notification.

       

      (k)          The
rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and
shall be enforceable by, the Trustee in each of its capacities hereunder, and to
each agent, custodian and other Person employed to act hereunder.

       

      (l)           Delivery
of reports to the Trustee pursuant to Section 6.16 hereof shall not
constitute actual knowledge of, or notice to, the Trustee of the information
contained therein.

       

      
        	
                SECTION 9.03.

              	
                Individual Rights of
      Trustee.

              

      

       

      The
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuer, its Subsidiaries or its
respective Affiliates with the same rights it would have if it were not
Trustee.  Any Agent may do the same with like
rights.  However, the Trustee must comply with Sections 9.10 and
9.11.

       

      
        	
                SECTION 9.04.

              	
                Trustee’s
      Disclaimer.

              

      

       

      The
Trustee shall not be responsible for and makes no representation as to the
validity or adequacy of this Indenture or the Notes, it shall not be accountable
for the Issuer’s use of the proceeds from the Notes, and it shall not be
responsible for any statement of the Issuer in this Indenture or any document
issued in connection with the sale of Notes or any statement in the Notes other
than the Trustee’s certificate of authentication.  The Trustee makes
no representations with respect to the effectiveness or adequacy of this
Indenture.

       

      
        
           

        

        
          -119-

          
            

          

        

        
           

        

      

       

      
        	
                SECTION 9.05.

              	
                Notice of
      Default.

              

      

       

      If a
Default occurs and is continuing and the Trustee receives actual notice of such
Default, the Trustee shall mail to each Holder notice of the uncured Default
within 30 days after such Default occurs.  Except in the case of a
Default in payment of principal of, or interest on, any Note, including an
accelerated payment and the failure to make a payment on the Change of Control
Payment Date pursuant to a Change of Control Offer or the Net Proceeds Payment
Date pursuant to a Net Proceeds Offer, or a Default in complying with the
provisions of Article Seven, the Trustee may withhold the notice if and so
long as the Board of Directors, the executive committee, or a trust committee of
directors and/or Responsible Officers, of the Trustee in good faith determines
that withholding the notice is in the interest of the Holders.

       

      
        	
                SECTION 9.06.

              	
                Reports by Trustee to
      Holders.

              

      

       

      Within 60
days after each
[             ],
beginning with
[            ],
2011, the Trustee shall, to the extent that any of the events described in Trust
Indenture Act § 313(a) occurred within the previous twelve months, but not
otherwise, mail to each Holder a brief report dated as of such date that
complies with Trust Indenture Act § 313(a).  The Trustee also
shall comply with Trust Indenture Act §§ 313(b), 313(c) and
313(d).

       

      A copy of
each report at the time of its mailing to Holders shall be mailed to the Issuer
and filed with the SEC and each securities exchange, if any, on which the Notes
are listed.

       

      The
Issuer shall notify the Trustee if the Notes become listed on any securities
exchange or of any delisting thereof and the Trustee shall comply with Trust
Indenture Act § 313(d).

       

      
        	
                SECTION 9.07.

              	
                Compensation and
      Indemnity.

              

      

       

      The
Issuer shall pay to the Trustee from time to time such compensation as the
Issuer and the Trustee shall from time to time agree in writing for its services
hereunder.  The Trustee’s compensation shall not be limited by any law
on compensation of a trustee of an express trust.  The Issuer shall
reimburse the Trustee upon request for all reasonable disbursements, expenses
and advances (including reasonable fees and expenses of counsel) incurred or
made by it in addition to the compensation for its services, except any such
disbursements, expenses and advances as may be attributable to the Trustee’s
negligence, bad faith or willful misconduct.  Such expenses shall
include the reasonable fees and expenses of the Trustee’s agents and
counsel.

       

      
        
           

        

        
          -120-

          
            

          

        

        
           

        

      

       

      The
Issuer shall indemnify each of the Trustee or any predecessor Trustee and its
agents for, and hold them harmless against, any and all loss, damage, claims
including taxes (other than taxes based upon, measured by or determined by the
income of the Trustee), liability or expense (including reasonable fees and
expenses of counsel) incurred by them except for such actions to the extent
caused by any negligence, bad faith or willful misconduct on their part, arising
out of or in connection with the acceptance or administration of this trust
including the reasonable costs and expenses of defending themselves against or
investigating any claim or liability in connection with the exercise or
performance of any of the Trustee’s rights, powers or duties hereunder
(including the costs and expenses of enforcing this Indenture against the Issuer
or the Guarantors (including this Section 9.07)).  The Trustee
shall notify the Issuer promptly of any claim asserted against the Trustee or
any of its agents for which it may seek indemnity, provided, however, that the failure to
so notify the Issuer shall not relieve the Issuer of any liability that it may
have to the Trustee hereunder (except to the extent that the Issuer is
materially prejudiced or otherwise forfeits substantive rights or defenses by
reason of such failure).  The Issuer shall defend the claim and the
Trustee shall cooperate in the defense.  The Trustee and its agents
subject to the claim may have separate counsel and the Issuer shall pay the
reasonable fees and expenses of such counsel; provided, however, that the Issuer will
not be required to pay such fees and expenses if there is no conflict of
interest between the Issuer and the Trustee and its agents subject to the claim
in connection with such defense as reasonably determined by the
Trustee.  The Issuer need not pay for any settlement made without its
written consent, which consent shall not be unreasonably withheld or
delayed.  The Issuer need not reimburse any expense or indemnify
against any loss or liability to the extent incurred by the Trustee through the
Trustee’s negligence, bad faith or willful misconduct.

       

      To secure
the Issuer’s payment obligations in this Section 9.07, the Trustee shall
have a Lien prior to the Notes against all money or property held or collected
by the Trustee, in its capacity as Trustee, except money or property held in
trust to pay principal and interest on particular Notes.

       

      When the
Trustee incurs expenses or renders services after a Default specified in
Section 8.01(xi) or (xii) occurs, such expenses and the compensation for
such services shall be paid to the extent allowed under any Bankruptcy
Law.

       

      Notwithstanding
any other provision in this Indenture, the foregoing provisions of this
Section 9.07 shall survive the satisfaction and discharge of this Indenture
or the appointment of a successor Trustee.

       

      
        	
                SECTION 9.08.

              	
                Replacement of
      Trustee.

              

      

       

      The
Trustee may resign at any time by so notifying the Issuer in
writing.  The Holders of a majority in principal amount of the
outstanding Notes may remove the Trustee by so notifying the Issuer and the
Trustee and may appoint a successor Trustee.  The Issuer may remove
the Trustee if:

       

      (i)           The
Trustee fails to comply with Section 9.10;

       

      (ii)          The
Trustee is adjudged a bankrupt or an insolvent;

       

      (iii)         A
receiver or other public officer takes charge of the Trustee or its property;
or

       

      (iv)         The
Trustee becomes incapable of acting.

       

      
        
           

        

        
          -121-

          
            

          

        

        
           

        

      

       

      If the
Trustee resigns or is removed or if a vacancy exists in the office of Trustee
for any reason, the Issuer shall notify each Holder of such event and shall
promptly appoint a successor Trustee.  Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount of
the Notes may appoint a successor Trustee to replace the successor Trustee
appointed by the Issuer.

       

      A
successor Trustee shall deliver a written acceptance of its appointment to the
retiring Trustee and to the Issuer.  Immediately after that, the
retiring Trustee shall transfer, after payment of all sums then owing to the
Trustee pursuant to Section 9.07, all property held by it as Trustee to the
successor Trustee, subject to the Lien provided in Section 9.07, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture.  A successor Trustee shall mail notice of its
succession to each Holder.

       

      If a
successor Trustee does not take office within 60 days after the retiring Trustee
resigns or is removed, the retiring Trustee, the Issuer or the Holders of at
least 10% in principal amount of the outstanding Notes may petition any court of
competent jurisdiction for the appointment of a successor Trustee at the expense
of the Issuer.

       

      If the
Trustee fails to comply with Section 9.10, any Holder may petition any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.

       

      Notwithstanding
replacement of the Trustee pursuant to this Section 9.08, the Issuer’s
obligations under Section 9.07 shall continue for the benefit of the
retiring Trustee.

       

      
        	
                SECTION 9.09.

              	
                Successor Trustee by
      Merger, Etc.

              

      

       

      If the
Trustee consolidates with, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation, the
resulting, surviving or transferee corporation without any further act shall, if
such resulting, surviving or transferee corporation is otherwise eligible
hereunder, be the successor Trustee; provided, that such
corporation shall be otherwise qualified and eligible under this
Article Nine.

       

      
        	
                SECTION 9.10.

              	
                Eligibility;
      Disqualification.

              

      

       

      This
Indenture shall always have a Trustee who satisfies the requirement of Trust
Indenture Act §§ 310(a)(1), 310(a)(2) and 310(a)(5).  The Trustee
shall have a combined capital and surplus of at least $50.0 million as set forth
in its most recent published annual report of condition.  The Trustee
shall comply with Trust Indenture Act § 310(b); provided, however, that there shall be
excluded from the operation of Trust Indenture Act § 310(b)(1) any
indenture or indentures under which other securities, or certificates of
interest or participation in other securities, of the Issuer are outstanding, if
the requirements for such exclusion set forth in Trust Indenture Act
§ 310(b)(1) are met.  The provisions of Trust Indenture Act
§ 310 shall apply to the Issuer and any other obligor of the
Notes.

       

      
        
           

        

        
          -122-

          
            

          

        

        
           

        

      

      
        	
                SECTION 9.11.

              	
                Preferential
      Collection of Claims Against the Issuer.

              

      

       

      The
Trustee, in its capacity as Trustee hereunder, shall comply with Trust Indenture
Act § 311(a), excluding any creditor relationship listed in Trust Indenture
Act § 311(b).  A Trustee who has resigned or been removed shall
be subject to Trust Indenture Act § 311(a) to the extent
indicated.

       

      
        	
                SECTION 9.12.

              	
                Notice of Payment of
      Additional Interest.

              

      

       

      In the
event that the Issuer is required to pay Additional Interest pursuant to the
terms of the Registration Rights Agreement, the Issuer shall provide a written
notice to the Trustee of the Issuer’s obligation to pay Additional Interest no
later than 15 days prior to the next Interest Payment Date, which notice shall
set forth the amount of the Additional Interest to be paid by the
Issuer.  The Trustee shall not at any time be under any duty or
responsibility to any Holders to determine whether Additional Interest is
payable and the amount thereof.

       

      ARTICLE TEN

       

      DISCHARGE
OF INDENTURE; DEFEASANCE

       

      
        	
                SECTION 10.01.

              	
                Termination of the
      Issuer’s Obligations.

              

      

       

      The
Issuer may terminate its obligations under the Notes, this Indenture and the
Security Documents and the obligations of the Guarantors under the Note
Guarantees, this Indenture and the Security Documents and this Indenture and the
Security Documents shall cease to be of further effect, except those obligations
referred to in the penultimate paragraph of this Section 10.01,
if:

       

      (i)           All
the Notes that have been authenticated and delivered (except lost, stolen or
destroyed Notes which have been replaced or paid and Notes for whose payment
money has been deposited in trust or segregated and held in trust by the Issuer
and thereafter repaid to the Issuer or discharged from this trust) have been
delivered to the Trustee for cancellation, or

       

      (ii)           (a)  All
Notes not delivered to the Trustee for cancellation otherwise have become due
and payable, will become due and payable, or may be called for redemption,
within one year and the Issuer has irrevocably deposited or caused to be
deposited with the Trustee funds in trust sufficient to pay and discharge the
entire Indebtedness (including all principal and accrued interest) on the Notes
not theretofore delivered to the Trustee for cancellation,

       

      (1)           The
Issuer has paid all sums then due and payable by it under this Indenture,
and

       

      (2)           The
Issuer has delivered irrevocable instructions to the Trustee to apply the
deposited money toward the payment of the Notes at maturity or on the Redemption
Date, as the case may be.

       

      
        
           

        

        
          -123-

          
            

          

        

        
           

        

      

      In
addition, the Issuer must deliver an Officers’ Certificate and an Opinion of
Counsel stating that all conditions precedent to satisfaction and discharge have
been complied with.

       

      In the
case of clause (ii) of this Section 10.01, and subject to the next sentence
and notwithstanding the foregoing paragraph, the Issuer’s obligations in
Sections 2.05, 2.06, 2.07, 2.08, Article Five, 6.01, 6.02, 6.03 (as to
legal existence of the Issuer only), 9.07, 10.05 and 10.06 shall survive until
the Notes are no longer outstanding pursuant to the last paragraph of
Section 2.08.  After the Notes are no longer outstanding, the
Issuer’s obligations in Sections 9.07, 10.05 and 10.06 shall
survive.

       

      After
such delivery or irrevocable deposit, the Trustee upon request shall acknowledge
in writing the discharge of the Issuer’s obligations under the Notes and this
Indenture except for those surviving obligations specified above.

       

      
        	
                SECTION 10.02.

              	
                Legal Defeasance and
      Covenant Defeasance.

              

      

       

      (a)          The
Issuer may, at its option and at any time, elect to have either paragraph
(b) or (c) below be applied to all outstanding Notes upon compliance
with the conditions set forth in Section 10.03.

       

      (b)          Upon
the Issuer’s exercise under Section 10.02(a) hereof of the option
applicable to this Section 10.02(b), the Issuer and the Guarantors shall,
subject to the satisfaction of the conditions set forth in Section 10.03,
be deemed to have been discharged from their obligations with respect to all
outstanding Notes, Note Guarantees and the Security Documents on the date the
conditions set forth below are satisfied (hereinafter, “Legal
Defeasance”).  For this purpose, Legal Defeasance means that
the Issuer and the Guarantors shall be deemed to have paid and discharged the
entire Indebtedness represented by the outstanding Notes, the Note Guarantees,
this Indenture and the Security Documents which shall thereafter be deemed to be
“outstanding” only for the purposes of Section 10.04 hereof and the other
Sections of this Indenture referred to in (i)and (ii)below, and to have
satisfied all its other obligations under such Notes and this Indenture and the
Guarantors shall be deemed to have satisfied all of their obligations under the
Note Guarantees, this Indenture and the Security Documents (and the Trustee and
the Noteholder Collateral Agent, on demand of and at the expense of the Issuer,
shall execute proper instruments acknowledging the same), except for the
following provisions which shall survive until otherwise terminated or
discharged hereunder:

       

      (i)           The
rights of Holders of outstanding Notes to receive, solely from the trust fund
described in Section 10.04 hereof, and as more fully set forth in such
Section 10.04, payments in respect of the principal of, premium, if any,
and interest on such Notes when such payments are due;

       

      (ii)          The
Issuer’s obligations with respect to such Notes under Article Two and
Section 6.02 hereof;

       

      
        
           

        

        
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      (iii)           The
rights, powers, trusts, duties and immunities of the Trustee and Noteholder
Collateral Agent hereunder and the Issuer’s and Guarantors’ obligations in
connection therewith; and

       

      (iv)           The
provisions of this Article Ten applicable to Legal Defeasance.

       

      Subject
to compliance with this Article Ten, the Issuer may exercise its option
under this Section 10.02(b) notwithstanding the prior exercise of its
option under Section 10.02(c) hereof.

       

      (c)          Upon
the Issuer’s exercise under paragraph (a) hereof of the option applicable
to this paragraph (c), the Issuer and the Guarantors shall, subject to the
satisfaction of the conditions set forth in Section 10.03 hereof, be
released from their respective obligations under the covenants contained in
ARTICLE Three (solely with rights to the Holders purchase option upon a
Fundamental Change of Control), Sections 6.03 (other than with respect to
the legal existence of the Issuer), 6.04, 6.05 and 6.08 through 6.21 and
ARTICLES Seven, Twelve and Thirteen hereof and the Security Documents with
respect to the outstanding Notes on and after the date the conditions set forth
in Section 10.03 are satisfied (hereinafter, “Covenant Defeasance”), and the
Notes shall thereafter be deemed not “outstanding” for the purposes of any
direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall
continue to be deemed “outstanding” for all other purposes hereunder (it being
understood that such Notes shall not be deemed outstanding for accounting
purposes).  For this purpose, Covenant Defeasance means that, with
respect to the outstanding Notes, the Issuer and the Guarantors may omit to
comply with and shall have no liability in respect of any term, condition or
limitation set forth in any such covenant, whether directly or indirectly, by
reason of any reference elsewhere herein to any such covenant or by reason of
any reference in any such covenant to any other provision herein or in any other
document and such omission to comply shall not constitute an Event of Default
under Section 8.01 hereof, but, except as specified above, the remainder of
this Indenture and such Notes shall be unaffected thereby.  In
addition, upon the Issuer’s exercise under paragraph (a) hereof of the
option applicable to this paragraph (c), subject to the satisfaction of the
conditions set forth in Section 10.03 hereof, clauses (vii), (viii), (ix),
(x), (xiii) and (xiv) of Section 8.01 hereof shall not constitute Events of
Default.

       

      
        	
                SECTION 10.03.

              	
                Conditions to Legal
      Defeasance or Covenant Defeasance.

              

      

       

      The
following shall be the conditions to the application of either
Section 10.02(b) or 10.02(c) hereof to the outstanding Notes:

       

      (i)           The
Issuer must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders, U.S. Legal Tender, U.S. Government Obligations or a combination
thereof, in such amounts as will be sufficient (without reinvestment), in the
opinion of a nationally recognized firm of independent public accountants
selected by the Issuer, to pay the principal of and interest on the Notes on the
stated date for payment or on the Redemption Date of the principal or
installment of principal of or interest on the Notes,

       

      
        
           

        

        
          -125-

          
            

          

        

        
           

        

      

       

      (ii)           In
the case of Legal Defeasance, the Issuer shall have delivered to the Trustee an
Opinion of Counsel in the United States confirming that:

       

      (1)           The
Issuer has received from, or there has been published by the Internal Revenue
Service, a ruling, or

       

      (2)           Since
the date of this Indenture, there has been a change in the applicable United
States federal income tax law,

       

      in either
case to the effect that, and based thereon this Opinion of Counsel shall confirm
that, the Holders will not recognize income, gain or loss for United States
federal income tax purposes as a result of such Legal Defeasance and will be
subject to United States federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such Legal
Defeasance had not occurred,

       

      (iii)           In
the case of Covenant Defeasance, the Issuer shall have delivered to the Trustee
an Opinion of Counsel in the United States reasonably acceptable to the Trustee
confirming that the Holders will not recognize income, gain or loss for United
States federal income tax purposes as a result of such Covenant Defeasance and
will be subject to United States federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if the Covenant
Defeasance had not occurred,

       

      (iv)           No
Default shall have occurred and be continuing on the date of such deposit (other
than a Default resulting from the borrowing of funds to be applied to such
deposit),

       

      (v)           The
Legal Defeasance or Covenant Defeasance shall not result in a breach or
violation of, or constitute a Default under this Indenture or a default under
any other material agreement or instrument to which the Issuer or any of its
Subsidiaries is a party or by which the Issuer or any of its Subsidiaries is
bound (other than any such Default or default resulting solely from the
borrowing of funds to be applied to such deposit),

       

      (vi)           The
Issuer shall have delivered to the Trustee an Officers’ Certificate stating that
the deposit was not made by it with the intent of preferring the Holders over
any other of its creditors or with the intent of defeating, hindering, delaying
or defrauding any other of its creditors or others, and

       

      (vii)           The
Issuer shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that the conditions provided for in, in the
case of the Officers’ Certificate, clauses (i) through (vi) and, in the case of
the Opinion of Counsel, clauses (ii) and/or (iii) and (v) of this
Section 10.03 have been complied with.

       

      
        
           

        

        
          -126-

          
            

          

        

        
           

        

      

       

      
        	
                SECTION 10.04.

              	
                Application of Trust
      Money.

              

      

       

      The
Trustee or Paying Agent shall hold in trust U.S. Legal Tender and U.S.
Government Obligations deposited with it pursuant to this Article Ten, and
shall apply the deposited U.S. Legal Tender and the money from U.S. Government
Obligations in accordance with this Indenture to the payment of the principal of
and the interest on the Notes.  The Trustee shall be under no
obligation to invest said U.S. Legal Tender and U.S. Government Obligations,
except as it may agree with the Issuer.

       

      The
Issuer shall pay and indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against the U.S. Legal Tender and U.S. Government
Obligations deposited pursuant to Section 10.03 or the principal and
interest received in respect thereof, other than any such tax, fee or other
charge which by law is for the account of the Holders of the outstanding
Notes.

       

      Anything
in this Article Ten to the contrary notwithstanding, the Trustee shall
deliver or pay to the Issuer from time to time upon the Issuer’s request any
U.S. Legal Tender and U.S. Government Obligations held by it as provided in
Section 10.03 which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof that would then be
required to be deposited to effect an equivalent Legal Defeasance or Covenant
Defeasance.

       

      
        	
                SECTION 10.05.

              	
                Repayment to the
      Issuer.

              

      

       

      The
Trustee and the Paying Agent shall pay to the Issuer upon request any money held
by them for the payment of principal or interest that remains unclaimed for two
years; provided, that
the Trustee or such Paying Agent, before being required to make any payment, may
at the expense of the Issuer cause to be published once in a newspaper of
general circulation in the City of New York or mail to each Holder entitled
to such money notice that such money remains unclaimed and that after a date
specified therein which shall be at least 30 days from the date of such
publication or mailing any unclaimed balance of such money then remaining will
be repaid to the Issuer.  After payment to the Issuer, Holders
entitled to such money must look to the Issuer for payment as general creditors
unless an applicable law designates another Person.

       

      
        	
                SECTION 10.06.

              	
                Reinstatement.

              

      

       

      If the
Trustee or Paying Agent is unable to apply any U.S. Legal Tender and U.S.
Government Obligations in accordance with this Article Ten by reason of any
legal proceeding or by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, or if the funds deposited with the Trustee to effect Covenant
Defeasance are insufficient to pay the principal of, and interest on, the Notes
when due, the Issuer’s obligations under this Indenture, and the Notes shall be
revived and reinstated as though no deposit had occurred pursuant to this
Article Ten until such time as the Trustee or Paying Agent is permitted to
apply all such U.S. Legal Tender and U.S. Government Obligations in accordance
with this Article Ten; provided, that if the Issuer
has made any payment of interest on, or principal of, any Notes because of the
reinstatement of its obligations, the Issuer shall be subrogated to the rights
of the Holders of such Notes to receive such payment from the U.S. Legal Tender
and U.S. Government Obligations held by the Trustee or Paying
Agent.

       

      
        
           

        

        
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      ARTICLE ELEVEN

       

      AMENDMENTS,
SUPPLEMENTS AND WAIVERS

       

      
        	
                SECTION 11.01.

              	
                Without Consent of
      Holders.

              

      

       

      (a)          Subject
to Section 11.03, the Issuer and the Trustee and the Noteholder Collateral
Agent together, may amend or supplement this Indenture, the Notes, the Note
Guarantees or any other Note Documents without notice to or consent of any
Holder:

       

      (i)           To
cure any ambiguity, defect or inconsistency;

       

      (ii)          To
provide for uncertificated Notes in addition to or in place of certificated
Notes;

       

      (iii)         To
provide for the assumption of the Issuer’s obligations to the Noteholder Secured
Parties in the case of a merger, consolidation or sale of all or substantially
all of the assets, in accordance with Article Seven;

       

      (iv)         To
release any Guarantor from any of its obligations under its Note Guarantee or
this Indenture (to the extent permitted by this Indenture);

       

      (v)          To
add any Subsidiary of the Issuer as a Guarantor;

       

      (vi)         To
make any change that would provide additional rights or benefits to the Holders
or would not materially adversely affect the rights of any Holder;

       

      (vii)        In
the case of this Indenture, to comply with requirements of the SEC in order to
effect or maintain the qualification of this Indenture under the Trust Indenture
Act;

       

      (viii)       To
add additional assets as Collateral or otherwise enter into additional or
supplemental Security Documents;

       

      (ix)          To
release Collateral from the Lien pursuant to the Indenture, the Security
Documents and the Intercreditor Agreement when permitted or required by such
agreements;

       

      (x)           To
make, complete or confirm any grant of Collateral permitted or required by this
Indenture or any of the Security Documents or to the extent required under the
Intercreditor Agreement, to conform any Security Documents to reflect amendments
or other modifications to comparable provisions under ABL Facility security
documents; or

       

      
        
           

        

        
          -128-

          
            

          

        

        
           

        

      

       

      (xi)           To
amend the Intercreditor Agreement pursuant to Section 10.5 thereof or otherwise
enter into an Intercreditor Agreement in respect of an ABL Facility permitted
hereby;

       

      provided, that the Issuer has
delivered to the Trustee and Noteholder Collateral Agent an Opinion of Counsel
and an Officers’ Certificate, each stating that such amendment or supplement
complies with the provisions of this Section 11.01.

       

      (b)          After
an amendment, supplement or waiver under this Section 11.01 becomes
effective, the Issuer shall mail to the Holders affected thereby a notice
briefly describing the amendment, supplement or waiver.  Any failure
of the Issuer to mail such notice, or any defect therein, shall not, however, in
any way impair or affect the validity of any such amendment, supplement or
waiver.

       

      
        	
                SECTION 11.02.

              	
                With Consent of
      Holders.

              

      

       

      (a)          Subject
to Sections 8.07 and 11.03, the Issuer, the Guarantors and the Trustee and
Noteholder Collateral Agent together, with the written consent (which may
include consents obtained in connection with a tender offer or exchange offer
for Notes) of the Holder or Holders of at least a majority in aggregate
principal amount of the Notes then outstanding may amend or supplement this
Indenture, the Notes or the Note Guarantees or other Note Documents, without
notice to any other Holders.  Subject to Sections 8.07 and 11.03,
the Holder or Holders of a majority in aggregate principal amount of the
outstanding Notes may waive compliance with any provision of this Indenture, the
Notes or the Note Guarantees or the other Note Documents without notice to any
other Holders;

       

      (b)          Notwithstanding
Section 11.02(a), without the consent of each Holder affected, no amendment
or waiver may:

       

      (i)           Reduce,
or change the maturity, of the principal of any Note;

       

      (ii)          Reduce
the rate of or extend the time for payment of interest on any Note;

       

      (iii)         Reduce
any amounts payable upon redemption, conversion or any Fundamental Change of
Control or Conversion Event or change the date on, or the circumstances under,
which any Notes are subject to redemption or purchase (other than provisions of
Article Three and Section 6.11, except that if a Fundamental Change of
Control has occurred, no amendment or other modification of the obligation of
the Issuer to repurchase the Notes upon a Fundamental Change of Control shall be
made without the consent of each Holder of the Notes affected);

       

      (iv)         Reduce
the Fundamental Change of Control Purchase Price, the number of Additional
Shares or Make Whole Payment in connection with a Fundamental Change of Control
or the Cash Conversion Amount in connection with a Conversion Event or amend or
modify in any manner adverse to the Holders the Issuer’s obligations to make
such payments;

       

      
        
           

        

        
          -129-

          
            

          

        

        
           

        

      

      (v)          Make
any Note payable in money or currency other than that stated in the
Notes;

       

      (vi)         Expressly
subordinate in right of payment such Note or any Note Guarantee to any other
Indebtedness of the Issuer or any Guarantor;

       

      (vii)        Reduce
the percentage of Holders necessary to consent to an amendment or waiver to this
Indenture or the Notes;

       

      (viii)       Waive
a continuing default in the payment of principal of or premium or interest on
any Notes (except a rescission of acceleration of the Notes by the Holders
thereof as provided in this Indenture and a waiver of the payment default that
resulted from such acceleration);

       

      (ix)          Impair
the rights of Holders to receive payments of principal of or interest on the
Notes on or after the due date therefor or to institute suit for the enforcement
of any payment on the Notes;

       

      (x)           Release
any Guarantor that is a Significant Subsidiary from any of its obligations under
its Note Guarantee or this Indenture, except as permitted by this
Indenture;

       

      (xi)         
Make any change in these amendment and waiver provisions; or

       

      (xii)         Make
any change that adversely affects the conversion rights of any Holder of the
Notes, including any change to the provisions set forth in Article
Five.

       

      In
addition, without the consent of the Holders of at least 662⁄3% in principal
amount of the Notes then outstanding, (a) no amendment to this Indenture,
the Notes, the Note Guarantees or other Note Documents may release all or
substantially all of the Collateral from the Liens securing the Notes and
(b) no amendment to, or waiver of, the provisions of this Indenture, the
Notes, the Note Guarantees or other Note Documents may alter the priority of the
Liens securing the Collateral in any manner that adversely affects the rights of
the Holders of the Notes, in each case other than in accordance with the terms
of the applicable Note Documents.

       

      (c)          It
shall not be necessary for the consent of the Holders under this
Section 11.02 to approve the particular form of any proposed
amendment, supplement or waiver but it shall be sufficient if such consent
approves the substance thereof.

       

      (d)          A
consent to any amendment, supplement or waiver under this Indenture by any
Holder given in connection with an exchange (in the case of an exchange offer)
or a tender (in the case of a tender offer) of such Holder’s Notes will not be
rendered invalid by such tender or exchange.

       

      (e)          After
an amendment, supplement or waiver under this Section 11.02 becomes
effective, the Issuer shall mail to the Holders affected thereby a notice
briefly describing the amendment, supplement or waiver.  Any failure
of the Issuer to mail such notice, or any defect therein, shall not, however, in
any way impair or affect the validity of any such amendment, supplement or
waiver.

      
        
           

        

        
          -130-

          
            

          

        

        
           

        

      

       

      
        	
                SECTION 11.03.

              	
                Compliance with the
      Trust Indenture Act.

              

      

       

      From the
date on which this Indenture is qualified under the Trust Indenture Act, every
amendment, waiver or supplement of this Indenture, the Notes or the Note
Guarantees shall comply with the Trust Indenture Act as then in
effect.

       

      
        	
                SECTION 11.04.

              	
                Revocation and Effect
      of Consents.

              

      

       

      Until an
amendment, waiver or supplement becomes effective, a consent to it by a Holder
is a continuing consent by the Holder and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as the consenting Holder’s Note,
even if notation of the consent is not made on any Note.  However, any
such Holder or subsequent Holder may revoke the consent as to his Note or
portion of his Note by notice to the Trustee or the Issuer received before the
date on which the Trustee receives an Officers’ Certificate certifying that the
Holders of the requisite principal amount of Notes have consented (and not
theretofore revoked such consent) to the amendment, supplement or
waiver.

       

      The
Issuer may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to consent to any amendment, supplement or
waiver, which record date shall be prior to the first solicitation of such
consent.  If a record date is fixed, then notwithstanding the last
sentence of the immediately preceding paragraph, those Persons who were Holders
at such record date (or their duly designated proxies), and only those Persons,
shall be entitled to revoke any consent previously given, whether or not such
Persons continue to be Holders after such record date.  No such
consent shall be valid or effective for more than 120 days after such record
date.  The Issuer shall inform the Trustee in writing of the fixed
record date if applicable.

       

      After an
amendment, supplement or waiver becomes effective, it shall bind every Holder,
unless it makes a change described in any of clauses (i) through (xii) of
Section 11.02(b), in which case, the amendment, supplement or waiver shall
bind only each Holder of a Note who has consented to it and every subsequent
Holder of a Note or portion of a Note that evidences the same debt as the
consenting Holder’s Note; provided, that any such
waiver shall not impair or affect the right of any Holder to receive payment of
principal of, and interest on, a Note, on or after the respective due dates
therefor, or to bring suit for the enforcement of any such payment on or after
such respective dates without the consent of such Holder.

       

      
        	
                SECTION 11.05.

              	
                Notation on or
      Exchange of Notes.

              

      

       

      If an
amendment, supplement or waiver changes the terms of a Note, the Issuer may
require the Holder of the Note to deliver it to the Trustee.  The
Issuer shall provide the Trustee with an appropriate notation on the Note about
the changed terms and cause the Trustee to return it to the Holder at the
Issuer’s expense.  Alternatively, if the Issuer or the Trustee so
determines, the Issuer in exchange for the Note shall issue, and the Trustee
shall authenticate, a new Note that reflects the changed
terms.  Failure to make the appropriate notation or issue a new Note
shall not affect the validity and effect of such amendment, supplement or
waiver.

       

      
        
           

        

        
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                SECTION 11.06.

              	
                Trustee to Sign
      Amendments, Etc.

              

      

       

      The
Trustee and the Noteholder Collateral Agent shall execute any amendment,
supplement or waiver authorized pursuant to this Article Eleven; provided, that the Trustee
and the Noteholder Collateral Agent may, but shall not be obligated to, execute
any such amendment, supplement or waiver which affects the Trustee’s or
Noteholder Collateral Agent’s own rights, duties or immunities under this
Indenture.  The Trustee and Noteholder Collateral Agent shall be
entitled to receive, and shall be fully protected in relying upon, an Opinion of
Counsel and an Officers’ Certificate each stating that the execution of any
amendment, supplement or waiver authorized pursuant to this Article Eleven
is authorized or permitted by this Indenture and that such amendment is the
legal, valid and binding obligation of the Issuer enforceable against the Issuer
in accordance with its terms and complies with the provisions of this
Indenture.  Such Opinion of Counsel shall be at the expense of the
Issuer.

       

      ARTICLE TWELVE

       

      SECURITY
DOCUMENTS

       

      
        	
                SECTION 12.01.

              	
                Collateral and
      Security Documents.

              

      

       

      The due
and punctual payment of the principal of and interest on the Notes when and as
the same shall be due and payable, whether on an Interest Payment Date, at
maturity, by acceleration, repurchase, redemption or otherwise, and interest on
the overdue principal of and interest on the Notes and payment of all other
Obligations of the Issuer and the Guarantors to the Holders, the Trustee or the
Noteholder Collateral Agent under this Indenture, the Notes, the Intercreditor
Agreement and the Security Documents, according to the terms hereunder or
thereunder, shall be secured by (i) first-priority Liens and security
interests on the Notes Collateral, subject to Permitted Liens and
(ii) second-priority Liens and security interests in the ABL Collateral,
subject to the first-priority Liens and security interests securing Obligations,
Swap Obligations and Banking Services Obligations, incurred under the ABL
Facilities or in respect of Swap Obligations and Banking Services Obligations
with lenders (or their Affiliates) under the ABL Facilities up to the Maximum
ABL Debt Amount and Permitted Liens, in each case as provided in the Security
Documents which the Issuer and the Guarantors, as the case may be, have entered
into as reasonably requested by the Noteholder Collateral Agent hereafter
delivered as required or permitted by this Indenture, the Collateral Documents
and the Intercreditor Agreement.  The Trustee and the Issuer hereby
acknowledge and agree that the Noteholder Collateral Agent holds the Collateral
in trust for the benefit of the Noteholder Secured Parties, in each case
pursuant to the terms of the Security Documents and the Intercreditor
Agreement.  Each Holder, by accepting a Note, consents and agrees to
the terms of the Security Documents (including the provisions providing for the
possession, use, release and foreclosure of Collateral) and the Intercreditor
Agreement as the same may be in effect or may be amended from time to time in
accordance with their terms and this Indenture and the Intercreditor Agreement,
and authorizes and directs the Noteholder Collateral Agent to enter into the
Security Documents and the Intercreditor Agreement and to perform its
obligations and exercise its rights thereunder in accordance therewith; provided, however, that if any of the
provisions of the Security Documents limit, qualify or conflict with the duties
imposed by the provisions of the TIA (if this Indenture is qualified under the
TIA), the TIA shall control.  The Issuer shall deliver to the
Noteholder Collateral Agent copies of all documents pursuant to the Security
Documents, and will do or cause to be done all such acts and things as may be
reasonably required by the next sentence of this Section 12.01, to assure
and confirm to the Noteholder Collateral Agent the security interest in the
Collateral contemplated hereby, by the Security Documents or any part thereof,
as from time to time constituted, so as to render the same available for the
security and benefit of this Indenture and of the Notes secured hereby,
according to the intent and purposes herein expressed.  The Issuer
shall, and shall cause the Subsidiaries of the Issuer to, use its commercially
reasonable efforts to take any and all actions reasonably required to cause the
Security Documents to create and maintain, as security for the Obligations, a
valid and enforceable, except as enforceability thereof may be limited by
bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium or other
similar laws affecting creditors’ rights generally and general principles of
equity (regardless of whether such enforceability is considered in a proceeding
at law or in equity), perfected Lien and security interest (subject to Permitted
Liens) in and on all of the Collateral (subject to the terms of the
Intercreditor Agreement), in favor of the Noteholder Collateral Agent for the
benefit of the Secured Parties, in each case subject to and in accordance with
the terms of the Security Documents.

       

      
        
           

        

        
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                SECTION 12.02.

              	
                Recordings and
      Opinions.

              

      

       

      (a)          To
the extent applicable (if this Indenture is qualified under the TIA), the Issuer
will cause TIA § 313(b), relating to reports, and TIA § 314(d),
relating to the release of property or securities subject to the Lien of the
Security Documents, to be complied with.

       

      (b)          Any
release of Collateral permitted by Section 12.03 hereof will be deemed not
to impair the Liens under this Indenture, the Collateral Agreement and the other
Security Documents in contravention thereof. Any certificate or opinion required
by TIA § 314(d) may be made by an officer or legal counsel, as applicable,
of the Issuer except in cases where TIA § 314(d) requires that such
certificate or opinion be made by an independent Person, which Person will be an
independent engineer, appraiser or other expert selected by or reasonably
satisfactory to the Trustee.

       

      (c)          Notwithstanding
anything to the contrary in this Section 12.02, the Issuer will not be
required to comply with all or any portion of TIA § 314(d) if it reasonably
determines that under the terms of TIA § 314(d) or any interpretation or
guidance as to the meaning thereof of the SEC and its staff, including “no
action” letters or exemptive orders, all or any portion of TIA § 314(d) is
inapplicable to any release or series of releases of Collateral.  In
addition, and without limiting the generality of the foregoing, the Subsidiaries
of the Issuer may, among other things, without any release or consent by the
Trustee (and without the delivery of any Officers’ Certificate or any other
documents under this Indenture, except as specified in this
Section 12.02(c), but otherwise in compliance with the covenants of this
Indenture and the Security Documents, conduct ordinary course activities with
respect to the Collateral including, without limitation (i) selling or
otherwise disposing of, in any transaction or series of related transactions,
any property subject to the Liens and security interests created by this
Indenture or any of the Security Documents which has become worn out, defective
or obsolete or not used or useful in the business; (ii) abandoning,
terminating, canceling, releasing or making alterations in or substitutions of
any leases or contracts subject to the Liens and security interests created by
the Security Documents; (iii) surrendering or modifying any franchise,
license or permit subject to the Liens and security interests created by the
Security Documents which it may own or under which it may be operating;
(iv) altering, repairing, replacing or changing the location or position of
and adding to its structures, machinery, systems, equipment, fixtures and
appurtenances; (v) granting a license of any intellectual property;
(vi) selling, transferring or otherwise disposing of inventory in the
ordinary course of business; (vii) collecting accounts receivable in the
ordinary course of business or selling, liquidating, factoring or otherwise
disposing of accounts receivable in the ordinary course of business;
(viii) making cash payments (including for the repayment of Indebtedness or
interest and in connection with the Issuer’s cash management activities) from
cash that is at any time part of the Collateral in the ordinary course of
business that are not otherwise prohibited by this Indenture or the Security
Documents; and (ix) abandoning any intellectual property which is no longer used
or useful in the Issuer’s business.  The Issuer must deliver to the
Trustee within 30 calendar days following the end of each fiscal year (or such
later date as the Trustee shall agree), an Officers’ Certificate to the effect
that all releases and withdrawals during the preceding fiscal year (or since the
date of this Indenture, in the case of the first such certificate) in which no
release or consent of the Trustee was obtained in the ordinary course of the
Issuer’s and its Subsidiaries’ business were not prohibited by this
Indenture.  Notwithstanding any of the foregoing to the contrary, the
Trustee shall execute and deliver to the Issuer all documents reasonably
requested to evidence any such releases of Collateral.  In addition,
in lieu of releasing the Liens created by any of the Mortgages, the Trustee or
Collateral Agent will, at the request of the Issuer, to the extent necessary to
facilitate future savings of mortgage recording tax in states that impose such
taxes, assign such Liens to any such new lender or collateral
agent.

       

      
        
           

        

        
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                SECTION 12.03.

              	
                Release of
      Collateral.

              

      

       

      (a)          Subject
to Section 12.02 hereof, Collateral may be released from the Lien and
security interest created by the Security Documents at any time or from time to
time in accordance with the provisions of the Security Documents, the
Intercreditor Agreement or as provided hereby.  The Issuer and the
Guarantors will be entitled to a release of property and other assets included
in the Collateral from the Liens securing the Notes, and the Trustee (subject to
its receipt of an Officer Certificate and Opinion of Counsel as provided below)
shall release, or instruct the Noteholder Collateral Agent to release, as
applicable, the same from such Liens at the Issuer’s sole cost and expense,
under one or more of the following circumstances:

       

      (i)           To
enable the Issuer or any Guarantor to sell, exchange or otherwise dispose of any
of the Collateral to the extent not prohibited under
Section 6.11;

       

      (ii)          In
the case of a Guarantor that is released from its Guarantee with respect to the
Notes, the release of the property and assets of such Guarantor;

       

      (iii)         Pursuant
to an amendment or waiver in accordance with Article Nine of this
Indenture;

       

      
        
           

        

        
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      (iv)         Pursuant
to the terms of the Intercreditor Agreement; or

       

      (v)          If
the Notes have been discharged or defeased pursuant to Section 10.01 or
Section 10.02; provided, that in the case of
any release in whole pursuant to clauses (i), (ii) and (iii) above, all amounts
owing at such time to the Trustee under this Indenture, the Notes, the Notes
Guarantees, the Security Documents and the Intercreditor Agreement have been
paid.

       

      Upon
receipt of an Officers’ Certificate and an Opinion of Counsel certifying that
all conditions precedent under the Indenture and the Security Documents (and TIA
Section 314(d) (if this Indenture is qualified under the TIA)), if any, to
such release have been met and any necessary or proper instruments of
termination, satisfaction or release prepared by the Issuer, the Trustee shall,
or shall cause the Noteholder Collateral Agent, to execute, deliver or
acknowledge (at the Issuer’s expense) such instruments or releases to evidence
the release of any Collateral permitted to be released pursuant to this
Indenture or the Security Documents or the Intercreditor Agreement. Neither the
Trustee nor the Noteholder Collateral Agent shall be liable for any such release
undertaken in good faith in reliance upon any such Officer Certificate or
Opinion of Counsel, and notwithstanding any term hereof or in any Security
Document to the contrary, the Trustee and Noteholder Collateral Agent shall not
be under any obligation to release any such Lien and security interest, or
execute and deliver any such instrument of release, satisfaction or termination,
unless and until it receives such Officer Certificate and Opinion of
Counsel.

       

      Notwithstanding
any provision to the contrary herein, upon the request of the Issuer accompanied
by an Officers’ Certificate and Opinion of Counsel (that each action is in
compliance with the terms of this Indenture, Intercreditor Agreement and the
Security Documents) the Trustee shall instruct the Noteholder Collateral Agent
to execute and deliver UCC financing statement amendments or releases (which
shall be in form and substance reasonably satisfactory to the Noteholder
Collateral Agent and prepared by the Issuer or such Grantor) solely to the
extent necessary to delete property or assets not required to be subject to a
Lien under the Security Documents from the description of assets in any
previously filed financing statements. If requested in writing by the Issuer or
any Grantor, the Trustee shall instruct the Noteholder Collateral Agent to
execute and deliver such documents, instruments or statements (which shall be
prepared in form and substance reasonably satisfactory to the Noteholder
Collateral Agent and by the Issuer or such Grantor) and to take such other
action as the Issuer may reasonably request to evidence or confirm that such
property or assets not required to be subject to a Lien under the Security
Documents described in the immediately preceding sentence has  been
released from the Liens of each of the Security Documents. The Noteholder
Collateral Agent shall execute and deliver such documents, instruments and
statements and shall take all such actions promptly upon receipt of such
instructions from the Issuer, any Grantor or the Trustee.

       

      
        
           

        

        
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                SECTION 12.04.

              	
                Certificates of the
      Trustee.

              

      

       

      In the
event that the Issuer wishes to release Collateral in accordance with this
Indenture, the Security Documents and the Intercreditor Agreement at a time when
the Trustee is not itself also the Noteholder Collateral Agent and the Issuer
has delivered the certificates and documents required by the Security Documents
and Section 12.03 hereof, and, based on an Opinion of Counsel pursuant to
Section 14.04, will deliver a certificate to the Noteholder Collateral
Agent setting forth such determination.  The Trustee, however, shall
have no duty to confirm the legality, genuineness, accuracy, contents or
validity of such documents (or any signature appearing therein), its sole duty
being to certify its receipt of such documents which, on their face (and
assuming that they are what they purport to be), conform to § 314(d) of the
TIA.

       

      
        	
                SECTION 12.05.

              	
                Suits to Protect the
      Collateral.

              

      

       

      Subject
to the provisions of Article Nine hereof and the terms, conditions and
provisions of the Intercreditor Agreement, the Trustee in its sole discretion
and without the consent of the Holders, on behalf of the Holders, may or may
direct the Noteholder Collateral Agent to take all actions it deems necessary or
appropriate in order to:

       

      (a)          Enforce
any of the terms of the Security Documents; and

       

      (b)         Collect
and receive any and all amounts payable in respect of the obligations
hereunder.

       

      Subject
to the terms, conditions and provisions of this Indenture and the Security
Documents and the Intercreditor Agreement, the Trustee shall have power to
institute and to maintain such suits and proceedings as it may deem expedient to
prevent any impairment of the Collateral by any acts which may be unlawful or in
violation of any of the Security Documents or this Indenture, and such suits and
proceedings as the Trustee, in its sole discretion, may deem expedient to
preserve or protect its interests and the interests of the Holders in the
Collateral (including power to institute and maintain suits or proceedings to
restrain the enforcement of or compliance with any legislative or other
governmental enactment, rule or order that may be unconstitutional or otherwise
invalid if the enforcement of, or compliance with, such enactment, rule or order
would impair the Lien on the Collateral or be prejudicial to the interests of
the Holders or the Trustee). Nothing in this Section 12.05 shall be
considered to impose any such duty or obligation to act on the part of the
Trustee.

       

      
        	
                SECTION 12.06.

              	
                Authorization of
      Receipt of Funds by the Trustee Under the Security
      Documents.

              

      

       

      Subject
to the terms, conditions and provisions of the Intercreditor Agreement, the
Trustee is authorized to receive any funds for the benefit of the Holders
distributed under the Security Documents, and to make further distributions of
such funds to the Holders according to the provisions of this
Indenture.

       

      
        
           

        

        
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                SECTION 12.07.

              	
                Purchaser
      Protected.

              

      

       

      In no
event shall any purchaser in good faith of any property purported to be released
hereunder be bound to ascertain the authority of the Noteholder Collateral Agent
or the Trustee to execute the release or to inquire as to the satisfaction of
any conditions required by the provisions hereof for the exercise of such
authority or to see to the application of any consideration given by such
purchaser or other transferee; nor shall any purchaser or other transferee of
any property or rights permitted by this Article Twelve to be sold be under
any obligation to ascertain or inquire into the authority of the Issuer or the
applicable Guarantor to make any such sale or other transfer.

       

      
        	
                SECTION 12.08.

              	
                Powers Exercisable by
      Receiver or Trustee.

              

      

       

      In case
the Collateral shall be in the possession of a receiver or trustee, lawfully
appointed, the powers conferred in this Article Twelve upon the Issuer or a
Guarantor with respect to the release, sale or other disposition of such
property may be exercised by such receiver or trustee, and an instrument signed
by such receiver or trustee shall be deemed the equivalent of any similar
instrument of the Issuer or a Guarantor or of any officer or officers thereof
required by the provisions of this Article Twelve; and if the Trustee shall
be in the possession of the Collateral under any provision of this Indenture,
then such powers may be exercised by the Trustee.

       

      
        	
                SECTION 12.09.

              	
                Release Upon
      Termination of the Issuer’s Obligations.

              

      

       

      In the
event that the Issuer delivers to the Trustee, in form and substance reasonably
acceptable to it, an Officers’ Certificate certifying that (i) payment in
full of the principal of, together with accrued and unpaid interest on, the
Notes and all other Obligations under this Indenture, the Guarantees and the
Security Documents that are due and payable at or prior to the time such
principal, together with accrued and unpaid interest, are paid, (ii) the
Issuer shall have discharged its obligations under Section 10.01 or
exercised its legal defeasance option or its covenant defeasance option under
Section 10.02, in each case in compliance with the provisions of
Article Ten, or (iii) with respect to Remaining Notes only, a
Conversion Event has occurred, the Trustee shall deliver to the Issuer and the
Noteholder Collateral Agent a notice stating that the Trustee, on behalf of the
Holders, disclaims and gives up any and all rights it has in or to the
Collateral (other than with respect to funds held by the Trustee pursuant to
Article Ten), and any rights it has under the Security Documents, and upon
receipt by the Noteholder Collateral Agent of such notice, the Noteholder
Collateral Agent shall be deemed not to hold a Lien in the Collateral on behalf
of the Trustee and shall do or cause to be done all acts reasonably necessary or
reasonably requested by the Issuer to evidence the release of such Lien as soon
as is reasonably practicable or otherwise deliver any such Collateral to the
applicable Guarantor (including without limitation, execution and filing of Lien
releases, instruments, documents and return of any Collateral then in its
possession).

       

      
        
           

        

        
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                SECTION 12.10.

              	
                Noteholder Collateral
      Agent.

              

      

       

      (a)          The
Trustee and each of the Holders by acceptance of the Notes hereby designates and
appoints the Noteholder Collateral Agent as its agent under this Indenture, the
Collateral Agreement, the Security Documents and the Intercreditor Agreement and
the Trustee and each of the Holders by acceptance of the Notes hereby
irrevocably authorizes the Noteholder Collateral Agent to take such action on
its behalf under the provisions of this Indenture, the Collateral Agreement, the
Security Documents and the Intercreditor Agreement and to exercise such powers
and perform such duties as are expressly delegated to the Noteholder Collateral
Agent by the terms of this Indenture, the Collateral Agreement, the Security
Documents and the Intercreditor Agreement, together with such powers as are
reasonably incidental thereto.  The Noteholder Collateral Agent agrees
to act as such on the express conditions contained in this
Section 12.10.  Notwithstanding any provision to the contrary
contained elsewhere in this Indenture, the Collateral Agreement, the Security
Documents and the Intercreditor Agreement, the Noteholder Collateral Agent shall
not have any duties or responsibilities, except those expressly set forth
herein, nor shall the Noteholder Collateral Agent have or be deemed to have any
fiduciary relationship with the Trustee, any Holder or any Grantor, and no
implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Indenture, the Collateral Agreement, the
Security Documents and the Intercreditor Agreement or otherwise exist against
the Noteholder Collateral Agent.  Without limiting the generality of
the foregoing sentence, the use of the term “agent” in this Indenture with
reference to the Noteholder Collateral Agent is not intended to connote any
fiduciary or other implied (or express) obligations arising under agency
doctrine of any applicable law.  Instead, such term is used merely as
a matter of market custom, and is intended to create or reflect only an
administrative relationship between independent contracting
parties.  Except as expressly otherwise provided in this Indenture,
the Noteholder Collateral Agent shall have and may use its sole discretion with
respect to exercising or refraining from exercising any discretionary rights or
taking or refraining from taking any actions which the Noteholder Collateral
Agent is expressly entitled to take or assert under this Indenture, the
Collateral Agreement, the Security Documents and the Intercreditor Agreement,
including the exercise of remedies pursuant to Article Eight, and any
action so taken or not taken shall be deemed consented to by the Trustee and the
Holders.

       

      (b)          The
Noteholder Collateral Agent may execute any of its duties under this Indenture,
the Security Documents or the Intercreditor Agreement by or through agents,
employees, attorneys-in-fact or through its Related Persons and shall be
entitled to advice of counsel concerning all matters pertaining to such
duties.  The Noteholder Collateral Agent shall not be responsible for
the negligence or misconduct of any agent, employee, attorney-in-fact or Related
Person that it selects as long as such selection was made without negligence or
willful misconduct (other than any employee).

       

      (c)           None
of the Noteholder Collateral Agent, any of its respective Related Persons shall
(i) be liable for any action taken or omitted to be taken by any of them
under or in connection with this Indenture or the transactions contemplated
hereby (except for its own gross negligence, willful misconduct or bad faith) or
under or in connection with the Collateral Agreement, any Security Document or
Intercreditor Agreement or the transactions contemplated thereby (except for its
own gross negligence, bad faith or willful misconduct), or (ii) be
responsible in any manner to any of the Trustee or any Holder for any recital,
statement, representation, warranty, covenant or agreement made by the Issuer or
any Grantor or Affiliate of any Grantor, or any officer or Related Person
thereof, contained in this or any Indenture, or in any certificate, report,
statement or other document referred to or provided for in, or received by the
Noteholder Collateral Agent under or in connection with, this or any other
Indenture, the Collateral Agreement, the Security Documents or the Intercreditor
Agreement, or the validity, effectiveness, genuineness, enforceability or
sufficiency of this or any other Indenture, the Collateral Agreement, the
Security Documents or the Intercreditor Agreement, or for any failure of any
Grantor or any other party to this Indenture, the Collateral Agreement, the
Security Documents or the Intercreditor Agreement to perform its obligations
hereunder or thereunder.  None of the Noteholder Collateral Agent or
any of its respective Related Persons shall be under any obligation to the
Trustee or any Holder to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this or any
other Indenture, the Collateral Agreement, the Security Documents or the
Intercreditor Agreement or to inspect the properties, books, or records of any
Grantor or any Grantor’s Affiliates.

       

      
        
           

        

        
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      (d)         The
Noteholder Collateral Agent shall be entitled to rely, and shall be fully
protected in relying, upon any writing, resolution, notice, consent,
certificate, affidavit, letter, facsimile, or telephone message, statement, or
other document or conversation believed by it in good faith to be genuine and
correct and to have been signed, sent, or made by the proper Person or Persons,
and upon advice and statements of legal counsel (including, without limitation,
counsel to any Grantor), independent accountants and other experts and advisors
selected by the Noteholder Collateral Agent.  The Noteholder
Collateral Agent shall be fully justified in failing or refusing to take any
action under this or any other Indenture, the Security Documents or the
Intercreditor Agreement unless it shall first receive such advice or concurrence
of the Trustee as it deems appropriate and, if it so requests, it shall first be
indemnified to its reasonable satisfaction by the Holders against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action.  The Noteholder Collateral Agent
shall in all cases be fully protected in acting, or in refraining from acting,
under this or any other Indenture, the Security Documents or the Intercreditor
Agreement in accordance with a request or consent of the Trustee and such
request and any action taken or failure to act pursuant thereto shall be binding
upon all of the Holders.

       

      (e)         The
Noteholder Collateral Agent shall not be deemed to have knowledge or notice of
the occurrence of any Default or Event of Default, unless the Noteholder
Collateral Agent shall have received written notice from the Trustee or a
Grantor referring to this Indenture, describing such Default or Event of Default
and stating that such notice is a “notice of default.”  The Noteholder
Collateral Agent shall take such action with respect to such Default or Event of
Default as may be requested by the Trustee in accordance with Article Eight
(subject to Section 12.10); provided, however, that unless and
until the Noteholder Collateral Agent has received any such request, the
Noteholder Collateral Agent may (but shall not be obligated to) take such
action, or refrain from taking such action, with respect to such Default or
Event of Default as it shall deem advisable.

       

      (f)          U.S.
Bank National Association and its respective Affiliates (and any successor
Noteholder Collateral Agent and its affiliates) may make loans to, issue letters
of credit for the account of, accept deposits from, acquire equity interests in
and generally engage in any kind of banking, trust, financial advisory,
underwriting, or other business with any Grantor and its Affiliates as though it
was not the Noteholder Collateral Agent hereunder and without notice to or
consent of the Trustee.  The Trustee and the Holders acknowledge that,
pursuant to such activities, U.S. Bank National Association or its respective
Affiliates (and any successor Noteholder Collateral Agent and its affiliates)
may receive information regarding any Grantor or its Affiliates (including
information that may be subject to confidentiality obligations in favor of any
such Grantor or such Affiliate) and acknowledge that the Noteholder Collateral
Agent shall not be under any obligation to provide such information to the
Trustee or the Holders. Nothing herein shall impose or imply any obligation on
the part of the U.S. Bank National Association (or any successor Noteholder
Collateral Agent) to advance funds.

       

      
        
           

        

        
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      (g)         The
Noteholder Collateral Agent may resign at any time upon thirty (30) days prior
written notice to the Trustee and the Grantors, such resignation to be effective
upon the acceptance of a successor agent to its appointment as Noteholder
Collateral Agent.  If the Noteholder Collateral Agent resigns under
this Indenture, the Trustee, subject to the consent of the Issuer (which shall
not be unreasonably withheld and which shall not be required during a continuing
Event of Default), shall appoint a successor Noteholder Collateral
Agent.  If no successor noteholder collateral agent is appointed prior
to the intended effective date of the resignation of the Noteholder Collateral
Agent (as stated in the notice of resignation), the Noteholder Collateral Agent
may appoint, after consulting with the Trustee, subject to the consent of the
Issuer (which shall not be unreasonably withheld and which shall not be required
during a continuing Event of Default), a successor noteholder collateral
agent.  If no successor noteholder collateral agent is appointed and
consented to by the Issuer pursuant to the preceding sentence within thirty (30)
days after the intended effective date of resignation (as stated in the notice
of resignation) the Noteholder Collateral Agent shall be entitled to petition a
court of competent jurisdiction to appoint a successor.  Upon the
acceptance of its appointment as successor noteholder collateral agent
hereunder, such successor noteholder collateral agent shall succeed to all the
rights, powers and duties of the retiring Noteholder Collateral Agent, and the
term “Noteholder Collateral Agent” shall mean such successor noteholder
collateral agent, and the retiring Noteholder Collateral Agent’s appointment,
powers and duties as the Noteholder Collateral Agent shall be
terminated.  After the retiring Noteholder Collateral Agent’s
resignation hereunder, the provisions of this 12.10 (and Section 12.11)
shall continue to inure to its benefit and the retiring Noteholder Collateral
Agent shall not by reason of such resignation be deemed to be released from
liability as to any actions taken or omitted to be taken by it while it was the
Noteholder Collateral Agent under this Indenture.

       

      (h)         The
Trustee shall initially act as Noteholder Collateral Agent and shall be
authorized to appoint co-Noteholder Collateral Agents as necessary in its sole
discretion. Except as otherwise explicitly provided herein or in the Security
Documents or the Intercreditor Agreement, neither the Noteholder Collateral
Agent nor any of its respective officers, directors, employees or agents or
other Related Persons shall be liable for failure to demand, collect or realize
upon any of the 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 other Person or to take any other action whatsoever with regard to the
Collateral or any part thereof.  The Noteholder Collateral Agent shall
be accountable only for amounts that it actually receives as a result of the
exercise of such powers, and neither the Noteholder Collateral Agent nor any of
its officers, directors, employees or agents shall be responsible for any act or
failure to act hereunder, except for its own willful misconduct, gross
negligence or bad faith.

       

      (i)         The
Trustee, as such and as Noteholder Collateral Agent, is authorized and directed
to (i) enter into the Collateral Agreement and the Security Documents,
(ii) enter into the Intercreditor Agreement, (iii) bind the Holders on
the terms as set forth in the Collateral Agreement and the Security Documents
and the Intercreditor Agreement and (iv) perform and observe its
obligations under the Collateral Agreement and the Security Documents and the
Intercreditor Agreement.

       

      
        
           

        

        
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      (j)          
The Trustee agrees that it shall not (and shall not be obliged to), and shall
not instruct the Noteholder Collateral Agent to, unless specifically requested
to do so by a majority of the Holders, take or cause to be taken any action to
enforce its rights under this Indenture or against any Grantor, including the
commencement of any legal or equitable proceedings, to foreclose any Lien on, or
otherwise enforce any security interest in, any of the Collateral.

       

      If at any
time or times the Trustee shall receive (i) by payment, foreclosure,
set-off or otherwise, any proceeds of Collateral or any payments with respect to
the Obligations arising under, or relating to, this Indenture, except for any
such proceeds or payments received by the Trustee from the Noteholder Collateral
Agent pursuant to the terms of this Indenture, or (ii) payments from the
Noteholder Collateral Agent in excess of the amount required to be paid to the
Trustee pursuant to Article Eight, the Trustee shall promptly turn the same
over to the Noteholder Collateral Agent, in kind, and with such endorsements as
may be required to negotiate the same to the Noteholder Collateral
Agent.

       

      (k)          The
Trustee is each Holder’s agent for the purpose of perfecting the Holders’
security interest in assets which, in accordance with Article 9 of the
Uniform Commercial Code can be perfected only by possession.  Should
the Trustee obtain possession of any such Collateral, upon request from the
Issuer, the Trustee shall notify the Noteholder Collateral Agent thereof, and,
promptly upon the Noteholder Collateral Agent’s request therefor shall deliver
such Collateral to the Noteholder Collateral Agent or otherwise deal with such
Collateral in accordance with the Noteholder Collateral Agent’s
instructions.

       

      (l)          
The Noteholder Collateral Agent shall have no obligation whatsoever to the
Trustee or any of the Holders to assure that the Collateral exists or is owned
by any Grantor or is cared for, protected, or insured or has been encumbered, or
that the Noteholder Collateral Agent’s Liens have been properly or sufficiently
or lawfully created, perfected, protected, maintained or enforced or are
entitled to any particular priority, or to determine whether all or the
Grantor’s property constituting collateral intended to be subject to the Lien
and security interest of the Security Documents has been properly and completely
listed or delivered, as the case may be, or the genuineness, validity,
marketability or sufficiency thereof or title thereto, or to exercise at all or
in any particular manner or under any duty of care, disclosure, or fidelity, or
to continue exercising, any of the rights, authorities, and powers granted or
available to the Noteholder Collateral Agent pursuant to this Indenture, any
Security Document or the Intercreditor Agreement, it being understood and agreed
that in respect of the Collateral, or any act, omission, or event related
thereto, the Noteholder Collateral Agent may act in any manner it may deem
appropriate, in its sole discretion given the Noteholder Collateral Agent’s own
interest in the Collateral and that the Noteholder Collateral Agent shall have
no other duty or liability whatsoever to the Trustee or any Holder as to any of
the foregoing.

       

      (m)         No
provision of this Indenture, the Collateral Agreement, the Intercreditor
Agreement or any Security Document shall require the Noteholder Collateral Agent
(or the Trustee) to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder or
thereunder or to take or omit to take any action hereunder or thereunder or take
any action at the request or direction of Holders (or the Trustee in the case of
the Noteholder Collateral Agent) if it shall have reasonable grounds for
believing that repayment of such funds is not assured to it.

       

      
        
           

        

        
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      (n)          The
Noteholder Collateral Agent (i) shall not be liable for any action it takes
or omits to take in good faith which it reasonably believes to be authorized or
within its rights or powers, or for any error of judgment made in good faith by
a Responsible Officer, unless it is proved that the Noteholder Collateral Agent
was grossly negligent in ascertaining the pertinent facts, (ii) shall not
be liable for interest on any money received by it except as the Noteholder
Collateral Agent may agree in writing with the Issuer (and money held in trust
by the Noteholder Collateral Agent need not be segregated from other funds
except to the extent required by law) and (iii) may consult with counsel of
its selection and the advice or opinion of such counsel as to matters of law
shall be full and complete authorization and protection from liability in
respect of any action taken, omitted or suffered by it in good faith and in
accordance with the advice or opinion of such counsel. The grant of permissive
rights or powers to the Noteholder Collateral Agent shall not be construed to
impose duties to act.

       

      (o)          Neither
the Noteholder Collateral Agent nor the Trustee shall be liable for delays or
failures in performance resulting from acts beyond its control.  Such
acts shall include but not be limited to acts of God, strikes, lockouts, riots,
acts of war, epidemics, governmental regulations superimposed after the fact,
fire, communication line failures, computer viruses, power failures, earthquakes
or other disasters.  Neither the Noteholder Collateral Agent nor the
Trustee shall be liable for any indirect, special or consequential damages
(included but not limited to lost profits) whatsoever, even if it has been
informed of the likelihood thereof and regardless of the form of
action.

       

      
        	
                SECTION 12.11.

              	
                Compensation and
      Indemnity.

              

      

       

      The
Noteholder Collateral Agent shall be entitled to the compensation and indemnity
set forth in Section 9.07 (with the references to the Trustee therein being
deemed to refer to the Noteholder Collateral Agent).

       

      
        	
                SECTION 12.12.

              	
                Intercreditor
      Agreement, Collateral Agreement and Other Security
      Documents.

              

      

       

      The
Trustee and Noteholder Collateral Agent is each hereby directed and authorized
to execute and deliver the Intercreditor Agreement, the Collateral Agreement and
any other Security Documents in which it is named as a party.  It is
hereby expressly acknowledged and agreed that, in doing so, the Trustee and the
Noteholder Collateral Agent are not responsible for the terms or contents of
such agreements, or for the validity or enforceability thereof, or the
sufficiency thereof for any purpose. Whether or not so expressly stated therein,
in entering into, or taking (or forbearing from) any action under pursuant to,
the Intercreditor Agreement, the Collateral Agreement or any other Security
Documents, the Trustee and Noteholder Collateral Agent each shall have all of
the rights, immunities, indemnities and other protections granted to it under
this Indenture (in addition to those that may be granted to it under the terms
of such other agreement or agreements).

      
        
           

        

        
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      ARTICLE THIRTEEN

       

      NOTE
GUARANTEE

       

      
        	
                SECTION 13.01.

              	
                Unconditional
      Guarantee.

              

      

       

      Subject
to the provisions of this Article Thirteen, each of the Guarantors hereby,
jointly and severally, unconditionally and irrevocably guarantees to each Holder
of a Note authenticated and delivered by the Trustee and to the Trustee and the
other Noteholder Secured Parties and their respective successors and assigns,
irrespective of the validity and enforceability of this Indenture, the Notes,
the other Note Documents or the obligations of the Issuer or any other
Guarantors to the Holders or the Trustee or the other Noteholder Secured Parties
hereunder or thereunder:  (a) (x) the due and punctual payment of
the principal of, premium, if any, and interest on the Notes when and as the
same shall become due and payable, whether at maturity, upon redemption or
repurchase, by acceleration or otherwise, (y) the due and punctual payment
of interest on the overdue principal and (to the extent permitted by law)
interest, if any, on the Notes and (z) the due and punctual payment and
performance of all other obligations of the Issuer and all other obligations of
the other Guarantors (including under the Note Guarantees) under the Note
Documents, in each case, to the Holders, the Trustee or the other Noteholder
Secured Parties hereunder or thereunder (including amounts due the Trustee or
the Noteholder Collateral Agent under Section 9.07 or Section 12.11,
respectively, hereof), all in accordance with the terms hereof and thereof
(collectively, the “Guarantee
Obligations”); and (b) in case of any extension of time of payment
or renewal of any Notes or any of such other obligations, the due and punctual
payment and performance of Guarantee Obligations in accordance with the terms of
the extension or renewal, whether at maturity, upon redemption or repurchase, by
acceleration or otherwise.  Failing payment when due of any amount so
guaranteed, or failing performance of any other obligation of the Issuer to the
Holders under this Indenture, under the Notes or under the other Note Documents,
for whatever reason, each Guarantor shall be obligated to pay, or to perform or
cause the performance of, the same immediately.  A Default under this
Indenture, the Notes or the other Note Documents shall constitute an event of
default under the Note Guarantees, and shall entitle the Holders of Notes to
accelerate the obligations of the Guarantors thereunder in the same manner and
to the same extent as the obligations of the Issuer.

       

      Each of
the Guarantors hereby agrees that its obligations hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of the
Notes, this Indenture or the Note Documents, the absence of any action to
enforce the same, any waiver or consent by any Holder of the Notes with respect
to any provisions hereof or thereof, any release of any other Guarantor, the
recovery of any judgment against the Issuer, any action to enforce the same,
whether or not a Note Guarantee is affixed to any particular Note, or any other
circumstance which might otherwise constitute a legal or equitable discharge or
defense of a Guarantor.  To the fullest extent permitted by law, each
of the Guarantors hereby waives the benefit of diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or bankruptcy
of the Issuer, any right to require a proceeding first against the Issuer,
protest, notice and all demands whatsoever and covenants that its Note Guarantee
shall not be discharged except by complete performance of the obligations
contained in the Notes, this Indenture and this Note Guarantee and the other
Note Documents.  This Note Guarantee is a guarantee of payment and not
of collection.  If any Holder or the Trustee or the Noteholder
Collateral Agent is required by any court or otherwise to return to the Issuer
or to any Guarantor, or any custodian, trustee, liquidator or other similar
official acting in relation to the Issuer or such Guarantor, any amount paid by
the Issuer or such Guarantor to the Trustee or such Holder, this Note Guarantee,
to the extent theretofore discharged, shall be reinstated in full force and
effect.  Each Guarantor further agrees that, as between it, on the one
hand, and the Holders of Notes and the Trustee and the Noteholder Collateral
Agent, on the other hand, (a) subject to this Article Thirteen, the
maturity of the obligations guaranteed hereby may be accelerated as provided in
Article Eight for the purposes of this Note Guarantee, notwithstanding any
stay, injunction or other prohibition preventing such acceleration in respect of
the obligations guaranteed hereby, and (b) in the event of any acceleration
of such obligations as provided in Article Eight hereof, such obligations
(whether or not due and payable) shall forthwith become due and payable by the
Guarantors for the purpose of this Note Guarantee.

       

      
        
           

        

        
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          SECTION 13.02.    Subordination.

        

         

        The
Issuer and each Guarantor hereby agree that all Indebtedness and other monetary
obligations owed by it to the Issuer or any Restricted Subsidiary of the Issuer
shall be fully subordinated to the indefeasible payment in full in cash of the
obligations with respect to the Note Documents.

         

        
          SECTION 13.03.    Limitation on Guarantor
Liability.

        

         

        Each
Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it
is the intention of all such parties that the Note Guarantee of such Guarantor
not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy
Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act
or any similar federal, foreign or state law to the extent applicable to any
Note Guarantee.  To effectuate the foregoing intention, the Trustee,
the Holders and the Guarantors hereby irrevocably agree that the obligations of
such Guarantor under its Note Guarantee and this Article Thirteen shall be
limited to the maximum amount as will, after giving effect to all other
contingent and fixed liabilities of such Guarantor (including any guarantee
under the Credit Agreement)  that are relevant under such laws, and
after giving effect to any collections from, rights to receive contribution from
or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under this Article Thirteen, result in
the obligations of such Guarantor under its Note Guarantee not constituting a
fraudulent transfer or conveyance.  Each Guarantor that makes a
payment for distribution under its Note Guarantee is entitled to a contribution
from each other Guarantor in a pro rata amount based on the
adjusted net assets of each Guarantor.

         

        
          SECTION 13.04.    Execution and Delivery of
Note Guarantee.

        

         

        To
further evidence its Note Guarantee set forth in Section 13.01, each
Guarantor hereby agrees that a notation of such Note Guarantee, substantially in
the form of Exhibit B
hereto, shall be endorsed on each Note authenticated and delivered by the
Trustee.  Such Note Guarantee shall be executed on behalf of each
Guarantor by either manual or facsimile signature of one Officer or other person
duly authorized by all necessary corporate action of each Guarantor who shall
have been duly authorized to so execute by all requisite corporate
action.  The validity and enforceability of any Note Guarantee shall
not be affected by the fact that it is not affixed to any particular
Note.

        
          
             

          

          
            -144-

            
              

            

          

          
             

          

        

        Each of
the Guarantors hereby agrees that its Note Guarantee set forth in
Section 13.01 shall remain in full force and effect notwithstanding any
failure to endorse on each Note a notation of such Note Guarantee.

         

        If an
Officer of a Guarantor whose signature is on this Indenture or a Note Guarantee
no longer holds that office at the time the Trustee authenticates the Note on
which such Note Guarantee is endorsed or at any time thereafter, such
Guarantor’s Note Guarantee of such Note shall nevertheless be
valid.

         

        The
delivery of any Note by the Trustee, after the authentication thereof hereunder,
shall constitute due delivery of any Note Guarantee set forth in this Indenture
on behalf of each Guarantor.

         

        
          SECTION 13.05.    Release of a
Guarantor

        

         

        A
Guarantor shall be released from its obligations under its Note Guarantee and
its obligations under this Indenture and the Registration Rights
Agreement:

         

        (i)         In
the event of a sale or other disposition of all or substantially all of the
assets of such Guarantor, by way of merger, consolidation or otherwise; provided, that Net Available
Proceeds of such sale or other disposition are applied in accordance with the
applicable provisions of this Indenture, including without limitation
Section 6.11 hereof; or

         

        (ii)    
   in connection with any sale or other disposition of Capital
Stock of that Guarantor to a Person that is not (either before or after giving
effect to such transaction) the Company or a Restricted Subsidiary of the
Company, if the sale or other disposition does not violate Section 6.11
hereof and the Guarantor ceases to be a Restricted Subsidiary of the Company as
a result of the sale or other disposition;

         

        (iii)       If
such Guarantor is designated as an Unrestricted Subsidiary or otherwise ceases
to be a Restricted Subsidiary, in each case in accordance with the provisions of
this Indenture, upon effectiveness of such designation or when it first ceases
to be a Restricted Subsidiary, respectively; or

         

        (iv)       If
the Issuer exercises its legal defeasance option or its covenant defeasance
option pursuant to Section 10.02 and 10.03, if the Issuer’s obligations
under the Indenture are discharged in accordance Section 10.01 or with
respect to Remaining Notes, if a Conversion Event has occurred.

         

        The
Trustee shall execute an appropriate instrument prepared by the Issuer
evidencing the release of a Guarantor from its obligations under its Note
Guarantee upon receipt of a request by the Issuer or such Guarantor accompanied
by an Officers’ Certificate and an Opinion of Counsel certifying as to the
compliance with this Section 13.05; provided, however, that the legal
counsel delivering such Opinion of Counsel may rely as to matters of fact on one
or more Officers’ Certificates of the Issuer.

        
          
             

          

          
            -145-

            
              

            

          

          
             

          

        

        Except as
set forth in Articles Six and Seven and this Section 13.05, nothing
contained in this Indenture or in any of the Notes shall prevent any
consolidation or merger of a Guarantor with or into the Issuer or another
Guarantor or shall prevent any sale or conveyance of the property of a Guarantor
as an entirety or substantially as an entirety to the Issuer or another
Guarantor.

         

        
          SECTION 13.06.     Waiver of
Subrogation.

        

         

        Until
this Indenture is discharged and all of the Notes are discharged and paid in
full, each Guarantor hereby irrevocably waives and agrees not to exercise any
claim or other rights which it may now or hereafter acquire against the Issuer
or any other Guarantor that arise from the existence, payment, performance or
enforcement of the Issuer’s obligations or any other Guarantor’s obligations, in
each case under the Notes or this Indenture or the other Note Documents and such
Guarantor’s obligations under this Note Guarantee and this Indenture or the
other Note Documents, in any such instance including, without limitation, any
right of subrogation, reimbursement, exoneration, contribution, indemnification,
and any right to participate in any claim or remedy of the Holders or other
Noteholder Secured Parties against the Issuer or any other Guarantor, whether or
not such claim, remedy or right arises in equity, or under contract, statute or
common law, including, without limitation, the right to take or receive from the
Issuer or any other Guarantor, directly or indirectly, in cash or other assets
or by set-off or in any other manner, payment or security on account of such
claim or other rights.  If any amount shall be paid to any Guarantor
in violation of the preceding sentence and any amounts owing to the Trustee or
the Holders of Notes or other Noteholder Secured Parties under the Notes, this
Indenture, the other Note Documents or any other document or instrument
delivered under or in connection with such agreements or instruments, shall not
have been paid in full, such amount shall have been deemed to have been paid to
such Guarantor for the benefit of, and held in trust for the benefit of, the
Trustee or the Holders or the other Noteholder Secured Parties and shall
forthwith be paid to the Trustee for the benefit of itself or such Holders or
other Noteholder Secured Parties to be credited and applied to the obligations
in favor of the Trustee or the Holders or other Noteholder Secured Parties, as
the case may be, whether matured or unmatured, in accordance with the terms of
this Indenture.  Each Guarantor acknowledges that it will receive
direct and indirect benefits from the financing arrangements contemplated by
this Indenture and that the waiver set forth in this Section 13.06 is
knowingly made in contemplation of such benefits.

         

        
          SECTION 13.07.     Immediate
Payment.

        

         

        Each
Guarantor agrees to make immediate payment to the Trustee on behalf of the
Holders of all Guarantee Obligations owing or payable to the respective Holders
upon receipt of a demand for payment therefor by the Trustee to such Guarantor
in writing.

        
          
             

          

          
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          SECTION 13.08.     No
Set-Off.

        

         

        Each
payment to be made by a Guarantor hereunder in respect of the Guarantee
Obligations shall be payable in the currency or currencies in which such
Guarantee Obligations are denominated, and, to the fullest extent permitted by
law, shall be made without set-off, counterclaim, reduction or diminution of any
kind or nature.

         

        
          SECTION 13.09.    Guarantee Obligations
Absolute.

        

         

        The
obligations of each Guarantor hereunder are and shall be absolute and
unconditional and any monies or amounts expressed to be owing or payable by each
Guarantor hereunder which may not be recoverable from such Guarantor on the
basis of a Note Guarantee shall be recoverable from such Guarantor as a primary
obligor and principal debtor in respect thereof.

         

        
          SECTION 13.10.    Note Guarantee Obligations
Continuing.

        

         

        The
obligations of each Guarantor hereunder shall be continuing and shall remain in
full force and effect until all such obligations have been paid and satisfied in
full.  Each Guarantor agrees with the Trustee that it will from time
to time deliver to the Trustee suitable acknowledgments of this continued
liability hereunder and under any other instrument or instruments in such form
as counsel to the Trustee may advise and as will prevent any action brought
against it in respect of any default hereunder being barred by any statute of
limitations now or hereafter in force and, in the event of the failure of a
Guarantor so to do, it hereby irrevocably appoints the Trustee the attorney and
agent of such Guarantor to make, execute and deliver such written acknowledgment
or acknowledgments or other instruments as may from time to time become
necessary or advisable, in the judgment of the Trustee on the advice of counsel,
to fully maintain and keep in force the liability of such Guarantor
hereunder.

         

        
          SECTION 13.11.    Note Guarantee Obligations
Not Reduced.

        

         

        The
obligations of each Guarantor hereunder shall not be satisfied, reduced or
discharged solely by the payment of such principal, premium, if any, interest,
fees and other monies or amounts as may at any time prior to discharge of this
Indenture pursuant to Article Ten be or become owing or payable under or by
virtue of or otherwise in connection with the Notes or this Indenture or the
other Note Documents.

         

        
          SECTION 13.12.    Note Guarantee Obligations
Reinstated.

        

         

        The
obligations of each Guarantor hereunder shall continue to be effective or shall
be reinstated, as the case may be, if at any time any payment which would
otherwise have reduced the obligations of any Guarantor hereunder (whether such
payment shall have been made by or on behalf of the Issuer or by or on behalf of
a Guarantor) is rescinded or reclaimed from any of the Holders upon the
insolvency, bankruptcy, liquidation or reorganization of the Issuer or any
Guarantor or otherwise, all as though such payment had not been
made.  If demand for, or acceleration of the time for, payment by the
Issuer or any other Guarantor is stayed upon the insolvency, bankruptcy,
liquidation or reorganization of the Issuer or such Guarantor, all such
Indebtedness otherwise subject to demand for payment or acceleration shall
nonetheless be payable by each Guarantor as provided herein.

        
          
             

          

          
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          SECTION 13.13.    Note Guarantee Obligations
Not Affected.

        

         

        To the
fullest extent permitted by law, the obligations of each Guarantor hereunder
shall not be affected, impaired or diminished in any way by any act, omission,
matter or thing whatsoever, occurring before, upon or after any demand for
payment hereunder (and whether or not known or consented to by any Guarantor or
any of the Holders) which, but for this provision, might constitute a whole or
partial defense to a claim against any Guarantor hereunder or might operate to
release or otherwise exonerate any Guarantor from any of its obligations
hereunder or otherwise affect such obligations, whether occasioned by default of
any of the Holders or otherwise, including, without limitation:

         

        (a)      Any
limitation of status or power, disability, incapacity or other circumstance
relating to the Issuer or any other Person, including any insolvency,
bankruptcy, liquidation, reorganization, readjustment, composition, dissolution,
winding-up or other proceeding involving or affecting the Issuer or any other
Person;

         

        (b)      Any
irregularity, defect, unenforceability or invalidity in respect of any
Indebtedness or other obligation of the Issuers or any other Person under this
Indenture, the Notes, other Note Documents or any other document or
instrument;

         

        (c)      Any
failure of the Issuer or any other Guarantor, whether or not without fault on
its part, to perform or comply with any of the provisions of this Indenture, the
Notes, other Note Documents or any Note Guarantee, or to give notice thereof to
a Guarantor;

         

        (d)      The
taking or enforcing or exercising or the refusal or neglect to take or enforce
or exercise any right or remedy from or against the Issuer or any other Person
or their respective assets or the release or discharge of any such right or
remedy;

         

        (e)      The
granting of time, renewals, extensions, compromises, concessions, waivers,
releases, discharges and other indulgences to the Issuer or any other
Person;

         

        (f)      Any
change in the time, manner or place of payment of, or in any other term of, any
of the Notes, or any other amendment, variation, supplement, replacement or
waiver of, or any consent to departure from, any of the Notes or this Indenture,
including, without limitation, any increase or decrease in the principal amount
of or premium, if any, or interest on any of the Notes;

         

        (g)      Any
change in the ownership, control, name, objects, businesses, assets, capital
structure or constitution of the Issuer or a Guarantor;

         

        (h)      Any
merger or amalgamation of the Issuer or a Guarantor with any Person or
Persons;

         

        (i)    
  The occurrence of any change in the laws, rules, regulations or
ordinances of any jurisdiction by any present or future action of any
governmental authority or court amending, varying, reducing or otherwise
affecting, or purporting to amend, vary, reduce or otherwise affect, any of the
Guarantee Obligations or the obligations of a Guarantor under its Note
Guarantee; and

        
          
             

          

          
            -148-

            
              

            

          

          
             

          

        

        (j)   
   Any other circumstance, including release of a Guarantor
pursuant to Section 13.05 (other than by complete, irrevocable payment)
that might otherwise constitute a legal or equitable discharge or defense of the
Issuer under this Indenture or the Notes or of a Guarantor in respect of its
Note Guarantee hereunder.

         

        
          SECTION 13.14.    Waiver.

        

         

        Without
in any way limiting the provisions of Section 13.01, each Guarantor hereby
waives notice of acceptance hereof, notice of any liability of any Guarantor
hereunder, notice or proof of reliance by the Holders upon the obligations of
any Guarantor hereunder, and diligence, presentment, demand for payment on the
Issuer, protest, notice of dishonor or non-payment of any of the Guarantee
Obligations, or other notice or formalities to the Issuer or any Guarantor of
any kind whatsoever.

         

        
          SECTION 13.15.    No Obligation to Take Action
Against the Issuers.

        

         

        Neither
the Trustee nor any other Person shall have any obligation to enforce or exhaust
any rights or remedies against the Issuer or any other Person or any property of
the Issuer or any other Person before the Trustee is entitled to demand payment
and performance by any or all Guarantors of their liabilities and obligations
under their Note Guarantees or under this Indenture.

         

        
          SECTION 13.16.    Dealing with the Issuer and
Others.

        

         

        The
Holders, without releasing, discharging, limiting or otherwise affecting in
whole or in part the obligations and liabilities of any Guarantor hereunder and
without the consent of or notice to any Guarantor, may

         

        (a)      Grant
time, renewals, extensions, compromises, concessions, waivers, releases,
discharges and other indulgences to the Issuer or any other Person;

         

        (b)      Take
or abstain from taking security or collateral from the Issuer or from perfecting
security or collateral of the Issuers;

         

        (c)      Release,
discharge, compromise, realize, enforce or otherwise deal with or do any act or
thing in respect of (with or without consideration) any and all collateral,
mortgages or other security given by the Issuer or any third party with respect
to the obligations or matters contemplated by this Indenture or the
Notes;

         

        (d)      Accept
compromises or arrangements from the Issuer;

         

        (e)      Apply
all monies at any time received from the Issuer or from any security upon such
part of the Guarantee Obligations as the Holders may see fit or change any such
application in whole or in part from time to time as the Holders may see fit;
and

        
          
             

          

          
            -149-

            
              

            

          

          
             

          

        

        (f)     
 Otherwise deal with, or waive or modify their right to deal with, the
Issuers and all other Persons and any security as the Holders or the Trustee may
see fit.

         

        
          SECTION 13.17.    Default and
Enforcement.

        

         

        If any
Guarantor fails to pay in accordance with Section 13.07 hereof, subject to
the terms, conditions and provisions of the Intercreditor Agreement, the Trustee
may proceed in its name as trustee hereunder in the enforcement of the Note
Guarantee of any such Guarantor and such Guarantor’s obligations thereunder and
hereunder by any remedy provided by law, whether by legal proceedings or
otherwise, and to recover from such Guarantor the obligations.

         

        
          SECTION 13.18.    Acknowledgment.

        

         

        Each
Guarantor hereby acknowledges communication of the terms of this Indenture and
the Notes and consents to and approves of the same.

         

        
          SECTION 13.19.    Costs and
Expenses.

        

         

        Each
Guarantor shall pay promptly following written demand (including documentation
reasonably supporting such demand) by the Trustee or Noteholder Collateral Agent
any and all reasonable costs, fees and expenses (including, without limitation,
reasonable legal fees on a solicitor and client basis) incurred by the Trustee
or Noteholder Collateral Agent, its agents, advisors and counsel or any of the
Holders in enforcing any of their rights under any Note Guarantee.

         

        
          SECTION 13.20.    No Merger or Waiver;
Cumulative Remedies.

        

         

        No Note
Guarantee shall operate by way of merger of any of the obligations of a
Guarantor under any other agreement, including, without limitation, this
Indenture.  No failure to exercise and no delay in exercising, on the
part of the Trustee or the Holders, any right, remedy, power or privilege
hereunder or under this Indenture or the Notes, shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power or
privilege hereunder or under this Indenture or the Notes preclude any other or
further exercise thereof or the exercise of any other right, remedy, power or
privilege.  The rights, remedies, powers and privileges in the Note
Guarantee and under this Indenture, the Notes and any other document or
instrument between a Guarantor and/or the Issuers and the Trustee are cumulative
and not exclusive of any rights, remedies, powers and privilege provided by
law.

         

        
          SECTION 13.21.    Survival of Note Guarantee
Obligations.

        

         

        Without
prejudice to the survival of any of the other obligations of each Guarantor
hereunder, the obligations of each Guarantor under Section 13.01 shall
survive the payment in full of the Guarantee Obligations and shall be
enforceable against such Guarantor, to the fullest extent permitted by law,
without regard to and without giving effect to any defense, right of offset or
counterclaim available to or which may be asserted by the Issuers or any
Guarantor.

        
          
             

          

          
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          SECTION 13.22.    Note Guarantee in Addition
to Other Guarantee Obligations.

        

         

        The
obligations of each Guarantor under its Note Guarantee and this Indenture are in
addition to and not in substitution for any other obligations to the Trustee or
to any of the Holders in relation to this Indenture or the Notes and any
guarantees or security at any time held by or for the benefit of any of
them.

         

        
          SECTION 13.23.    Severability.

        

         

        Any
provision of this Article Thirteen which is prohibited or unenforceable in
any jurisdiction shall not invalidate the remaining provisions and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction unless its removal
would substantially defeat the basic intent, spirit and purpose of this
Indenture and this Article Thirteen.

         

        
          SECTION 13.24.    Successors and
Assigns.

        

         

        Each Note
Guarantee shall be binding upon and inure to the benefit of each Guarantor and
the Trustee and the other Holders and other Noteholder Secured Parties and their
respective successors and permitted assigns, except that no Guarantor may assign
any of its obligations hereunder or thereunder, except as permitted by
Article Seven.

         

        ARTICLE FOURTEEN

         

        MISCELLANEOUS

         

        
          SECTION 14.01.    Trust Indenture Act
Controls.

        

         

        If this
Indenture is qualified under the TIA and any provision of this Indenture limits,
qualifies, or conflicts with another provision which is required or deemed to be
included in this Indenture by the TIA, such required or deemed provision shall
control.

         

        
          SECTION 14.02.    Notices.

        

         

        Any
notices or other communications required or permitted hereunder shall be in
writing, and shall be sufficiently given if made by hand delivery, by telex, by
nationally recognized overnight courier service, by telecopier or registered or
certified mail, postage prepaid, return receipt requested, addressed as
follows:

         

        if to the
Issuer or a Guarantor:

         

        c/o U.S.
Concrete, Inc.

        2925
Briarpark, Suite 1050

        Houston,
TX 77042

        Attention:  General
Counsel

         

        Telephone:    

        Facsimile:    

        
          
             

          

          
            -151-

            
              

            

          

          
             

          

        

        if to the
Trustee or Noteholder Collateral Agent:

         

        U.S. Bank
National Association

        150
Fourth Avenue North, 2nd
Floor

        Nashville,
Tennessee  37219

        Attention:  Corporate
Trust Department – U.S. Concrete

         

        Facsimile:    615-251-0737

         

        With a
copy to:

         

        U.S. Bank
National Association

        100 Wall
Street

        New York,
NY  10005

        Attention:  Corporate
Trust Department – U.S. Concrete

         

        Facsimile:    615-251-0737

         

        Each of
the Issuer and the Trustee and Noteholder Collateral Agent by written notice to
each other such Person may designate additional or different addresses for
notices to such Person.  Any notice or communication to the Issuer and
the Trustee and Noteholder Collateral Agent, shall be deemed to have been given
or made as of the date so delivered if personally delivered; when replied to;
when receipt is acknowledged, if telecopied; five (5) calendar days after
mailing if sent by registered or certified mail, postage prepaid (except that a
notice of change of address shall not be deemed to have been given until
actually received by the addressee); and next Business Day if by nationally
recognized overnight courier service.

         

        Any
notice or communication mailed to a Holder shall be mailed to him by first class
mail or other equivalent means at his address as it appears on the registration
books of the Registrar and shall be sufficiently given to him if so mailed
within the time prescribed.

         

        Failure
to mail a notice or communication to a Holder or any defect in it shall not
affect its sufficiency with respect to other Holders.  If a notice or
communication is mailed in the manner provided above, it is duly given, whether
or not the addressee receives it.

         

        
          SECTION 14.03.    Communications by Holders
with Other Holders.

        

         

        Holders
may communicate pursuant to Trust Indenture Act § 312(b) with other Holders
with respect to their rights under this Indenture, the Notes or the Note
Guarantees.  The Issuer, the Trustee, the Registrar and any other
Person shall have the protection of Trust Indenture Act
§ 312(c).

         

        
          SECTION 14.04.    Certificate and Opinion as
to Conditions Precedent.

        

         

        Upon any
request or application by the Issuer to the Trustee to take any action under
this Indenture, the Issuer shall furnish to the Trustee at the request of the
Trustee:

        
          
             

          

          
            -152-

            
              

            

          

          
             

          

        

        (i)       
 An Officers’ Certificate, in form and substance reasonably satisfactory to
the Trustee, stating that, in the opinion of the signers, all conditions
precedent to be performed or effected by the Issuer, if any, provided for in
this Indenture relating to the proposed action have been complied with;
and

         

        (ii)      
 An Opinion of Counsel stating that, in the opinion of such counsel, all
such conditions precedent have been complied with.

         

        
          SECTION 14.05.    Statements Required in
Certificate or Opinion.

        

         

        Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture, other than the Officers’ Certificate required by
Section 6.06, shall include:

         

        (i)   
     A statement that the Person making such
certificate or opinion has read such covenant or condition;

         

        (ii)    
   A brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based;

         

        (iii)    
  A statement that, in the opinion of such Person, he has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with or satisfied; and

         

        (iv)     
 A statement as to whether or not, in the opinion of each such Person, such
condition or covenant has been complied with; provided, however, that with respect to
matters of fact, an Opinion of Counsel may rely on an Officers’ Certificate or
certificates of public officials.

         

        
          SECTION 14.06.    Rules by Paying Agent or
Registrar.

        

         

        The
Paying Agent or Registrar may make reasonable rules and set reasonable
requirements for their functions.

         

        
          SECTION 14.07.    Legal
Holidays.

        

         

        If a
payment date is not a Business Day, payment may be made on the next succeeding
day that is a Business Day.

         

        
          SECTION 14.08.    Governing
Law.

        

         

        THIS
INDENTURE, THE NOTES AND THE NOTE GUARANTEES WILL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

        
          
             

          

          
            -153-

            
              

            

          

          
             

          

        

        
          SECTION 14.09.    No Adverse Interpretation of
Other Agreements.

        

         

        This
Indenture may not be used to interpret another indenture, loan or debt agreement
of any of the Issuer or any of its Subsidiaries.  Any such indenture,
loan or debt agreement may not be used to interpret this Indenture.

         

        
          SECTION 14.10.    No Recourse Against
Others.

        

         

        No
director, officer, employee, incorporator, stockholder, member or manager of the
Issuer or any Guarantor shall have any liability for any obligations of the
Issuer under the Notes or this Indenture or of any Guarantor under its Note
Guarantee or this Indenture or for any claim based on, in respect of, or by
reason of, such obligations or their creation.  Each Holder of Notes
by accepting a Note waives and releases all such liability.  Such
waiver and release are part of the consideration for issuance of the
Notes.

         

        
          SECTION 14.11.    Successors.

        

         

        All
agreements of the Issuer and the Guarantors in this Indenture, the Notes and the
Note Guarantees shall bind their respective successors.  All
agreements of the Trustee and Noteholder Collateral Agent in this Indenture
shall bind their respective successors.

         

        
          SECTION 14.12.    Duplicate
Originals.

        

         

        All
parties may sign any number of copies of this Indenture.  Each signed
copy or counterpart shall be an original, but all of them together shall
represent the same agreement.

         

        
          SECTION 14.13.    Severability.

        

         

        To the
extent permitted by applicable law, in case any one or more of the provisions in
this Indenture, in the Notes or in the Note Guarantees shall be held invalid,
illegal or unenforceable, in any respect for any reason, the validity, legality
and enforceability of any such provision in every other respect and of the
remaining provisions shall not in any way be affected or impaired thereby, it
being intended that all of the provisions hereof shall be enforceable to the
full extent permitted by law.

         

        
          SECTION 14.14.    Senior
Indebtedness.

        

         

        The
Issuer and each Guarantor hereby designate the obligations with respect to the
Note Documents as senior Indebtedness which is senior in right of payment in
full in cash to any subordinated Indebtedness of the Issuer or any
Guarantor.

         

        
          SECTION 14.15.    Intercreditor Agreement
Governs.

        

         

        Reference
is made to the Intercreditor Agreement.  Notwithstanding anything to
the contrary contained herein, each Holder, by its acceptance of a Note,
(a) consents to the subordination of Liens provided for in the
Intercreditor Agreement, (b) agrees that it will be bound by and will take
no actions contrary to the provisions of the Intercreditor Agreement,
(c) authorizes and instructs the Trustee and Noteholder Collateral Agent to
enter into the Intercreditor Agreement as Trustee and Noteholder Collateral
Agent, respectively, and on behalf of such Holder and (d) agrees this
Indenture and the other Note Documents are subject to the terms, conditions and
provisions of the Intercreditor Agreement.  The foregoing provisions
are intended as an inducement to the lenders under the Credit Agreement to
extend credit and such lenders are intended third party beneficiaries of such
provisions and the provisions of the Intercreditor Agreement.

        
          
             

          

          
            -154-

            
              

            

          

          
             

          

        

        
          SECTION 14.16.    Intercreditor Agreement,
Collateral Agreement and Security Documents.

        

         

        In the
event of any conflict between (a) this Indenture (on the one hand) and
(b) the Intercreditor Agreement, the Collateral Agreement and the Security
Documents (on the other hand), the provisions of the Intercreditor Agreement,
the Collateral Agreement and the Security Documents shall control.

         

        
          SECTION 14.17.    Calculations.

        

         

        Except as
otherwise provided herein, the Issuer (or its agents) will be responsible for
making all calculations called for under this Indenture or the
Notes.  The Issuer (or its agents) will make all such calculations in
good faith and, absent manifest error, its calculations will be final and
binding on Holders.  The Issuer (or its agents) upon request will
provide a schedule of its calculations to each of the Trustee and the Conversion
Agent, and each of the Trustee and Conversion Agent is entitled to rely
conclusively upon the accuracy of such calculations without independent
verification.  The Trustee will deliver a copy of such schedule to any
Holder upon the written request of such Holder.

         

        
          SECTION 14.18.    Waiver of Jury
Trial.

        

         

        EACH OF
THE ISSUER, THE GUARANTORS, THE NOTEHOLDER COLLATERAL AGENT AND THE TRUSTEE
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF
RELATING TO THE INDENTURE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

         

        
          SECTION 14.19.    Force
Majeure.

        

         

        In no
event shall the Trustee or the Noteholder Collateral Agent be responsible or
liable for any failure or delay in the performance of its obligations under this
Indenture arising out of or caused by, directly or indirectly, forces beyond its
reasonable control, including without limitation strikes, work stoppages,
accidents, acts of war or terrorism, civil, or military disturbances, nuclear or
natural catastrophes or acts of God, and interruptions, loss or malfunctions of
utilities, communications or computer (software or hardware)
services.

        
          
             

          

          
            -155-

            
              

            

          

          
             

          

        

        SIGNATURES

         

        IN
WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly
executed all as of the date first written above.

         

        
          
            
              	 
      	
                      U.S.
      CONCRETE, INC., as Issuer

                    
	 
      	 
      	 
      
	 
      	
                      By: 

                    	 
      
	 
      	 
      	
                      Name:

                    
	 
      	 
      	
                      Title:

                    
	 
      	 
      
	 
      	
                      Guarantors:

                    

            

          

        

         

        
          
            
              	 
      	
                      ALBERTA
      INVESTMENTS, INC.

                    
	 
      	
                      ALLIANCE
      HAULERS, INC.

                    
	 
      	
                      AMERICAN
      CONCRETE PRODUCTS, INC.

                    
	 
      	
                      ATLAS
      REDI-MIX, LLC

                    
	 
      	
                      ATLAS-TUCK
      CONCRETE, INC.

                    
	 
      	
                      BEALL
      CONCRETE ENTERPRISES, LLC

                    
	 
      	
                      BEALL
      INDUSTRIES, INC.

                    
	 
      	
                      BEALL
      MANAGEMENT, INC.

                    
	 
      	
                      BUILDERS’
      REDI-MIX, LLC

                    
	 
      	
                      BWB,
      INC. OF MICHIGAN

                    
	 
      	
                      CENTRAL
      CONCRETE SUPPLY CO., INC.

                    
	 
      	
                      CENTRAL
      PRECAST CONCRETE, INC.

                    
	 
      	
                      HAMBURG
      QUARRY LIMITED LIABILITY
COMPANY

                    
	 
      	
                      INGRAM
      CONCRETE, LLC

                    
	 
      	
                      MG,
      LLC

                    
	 
      	
                      REDI-MIX
      CONCRETE, L.P.

                    
	 
      	
                      REDI-MIX
      GP, LLC

                    
	 
      	
                      REDI-MIX,
      LLC

                    
	 
      	
                      SAN
      DIEGO PRECAST CONCRETE, INC.

                    
	 
      	
                      SIERRA
      PRECAST, INC.

                    
	 
      	
                      SMITH
      PRE-CAST, INC.

                    
	 
      	
                      SUPERIOR
      CONCRETE MATERIALS, INC.

                    
	 
      	
                      U.S.
      CONCRETE ON-SITE, INC.

                    
	 
      	
                      USC
      MANAGEMENT CO., LLC

                    
	 
      	
                      USC
      PAYROLL, INC.

                    
	 
      	
                      USC
      TECHNOLOGIES, INC.

                    

            

          

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        
          
            
              
                
                  
                    
                      	 
      	
                              By: 

                            	 
      
	 
      	 
      	
                              Name:

                            
	 
      	 
      	
                              Title:

                            
	 
      	 
      	 
      
	 
      	
                              BRECKENRIDGE
      READY MIX, INC.

                            
	 
      	 
      	 
      
	 
      	
                              By:

                            	 
      
	 
      	 
      	
                              Name:

                            
	 
      	 
      	
                              Title:

                            
	 
      	 
      	 
      
	 
      	
                              KURTZ
      GRAVEL COMPANY

                            
	 
      	
                              SUPERIOR
      HOLDINGS, INC.

                            
	 
      	
                              TITAN
      CONCRETE INDUSTRIES, INC.

                            
	 
      	 
      	 
      
	 
      	
                              By:

                            	 
      
	 
      	 
      	
                              Name:

                            
	 
      	 
      	
                              Title:

                            
	 
      	 
      	 
      
	 
      	
                              RIVERSIDE
      MATERIALS, LLC

                            
	 
      	 
      	 
      
	 
      	
                              By:

                            	 
      
	 
      	 
      	
                              Name:

                            
	 
      	 
      	
                              Title:

                            
	 
      	 
      	 
      
	 
      	
                              EASTERN
      CONCRETE MATERIALS, INC.

                            
	 
      	 
      	 
      
	 
      	
                              By:

                            	 
      
	 
      	 
      	
                              Name:

                            
	 
      	 
      	
                              Title:

                            
	 
      	 
      	 
      
	 
      	
                              LOCAL
      CONCRETE SUPPLY & EQUIPMENT,
LLC

                            
	 
      	
                              MASTER
      MIX CONCRETE, LLC

                            
	 
      	
                              MASTER
      MIX, LLC

                            
	 
      	
                              NYC
      CONCRETE MATERIALS, LLC

                            
	 
      	
                              PEBBLE
      LANE ASSOCIATES,
LLC

                            

                    

                  

                

              

            

          

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        
          
            
              
                
                  
                    
                      
                        	 
      	
                                By: 

                              	 
      
	 
      	 
      	
                                Name:

                              
	 
      	 
      	
                                Title:

                              
	 
      	 
      
	 
      	
                                USC
      ATLANTIC, INC.

                              
	 
      	 
      	 
      
	 
      	
                                By: 

                              	 
      
	 
      	 
      	
                                Name:

                              
	 
      	 
      	
                                Title:

                              
	 
      	 
      	 
      
	 
      	
                                USC
      MICHIGAN, INC.

                              
	 
      	 
      	 
      
	 
      	
                                By:

                              	 
      
	 
      	 
      	
                                Name:

                              
	 
      	 
      	
                                Title:

                              
	 
      	 
      
	 
      	
                                CONCRETE
      XXXIII ACQUISITION, INC.

                              
	 
      	
                                CONCRETE
      XXXIV ACQUISITION, INC.

                              
	 
      	
                                CONCRETE
      XXXV ACQUISITION, INC.

                              
	 
      	
                                CONCRETE
      XXXVI ACQUISITION, INC.

                              
	 
      	 
      	 
      
	 
      	
                                By:

                              	 
      
	 
      	 
      	
                                Name:

                              
	 
      	 
      	
                                Title:

                              
	 
      	 
      
	 
      	
                                CONCRETE
      ACQUISITION III, LLC

                              
	 
      	
                                CONCRETE
      ACQUISITION IV, LLC

                              
	 
      	
                                CONCRETE
      ACQUISITION V, LLC

                              
	 
      	
                                CONCRETE
      ACQUISITION VI, LLC

                              
	 
      	 
      	 
      
	 
      	
                                By:

                              	 
      
	 
      	 
      	
                                Name:

                              
	 
      	 
      	
                                Title:

                              

                      

                    

                  

                

              

            

          

        

         

        [Indenture]

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        
          
            
              	 
      	
                      U.S.
      BANK NATIONAL ASSOCIATION,

                    
	 
      	
                      as
      Trustee and Noteholder Collateral Agent

                    
	 
      	 
      	 
      
	 
      	 
      	
                      By: 

                    	 
      
	 
      	 
      	 
      	
                      Name:

                    
	 
      	 
      	 
      	
                      Title:

                    

            

          

        

         

        [Indenture]

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        EXHIBIT
A

         

        [Insert
the Global Note Legend, if applicable pursuant to the provisions of the
Indenture]

         

        [Insert
the Private Placement Legend, if applicable pursuant to the provisions of the
Indenture]

         

        U.S.
CONCRETE, INC.

        9.5%
Convertible Secured Notes 2015

         

        
          
            	 
      	
                    CUSIP
      No.

                  
	
                    No.________

                  	
                    $_________

                  

          

        

         

        
          U.S.
CONCRETE, INC., a Delaware corporation (the “Issuer”), for value received
promises to pay to ____________ or its registered assigns, the principal sum of
                         
[or such other amount as is provided in a schedule attached hereto]3 on
[       ], 2015.

        

         

        Interest
Payment
Dates:  [          ],
[          ],
[          ]  and
[         ], commencing
[             ],
2010.

         

        Record
Dates:  [          ],
[          ],
[          ]  and
[         ].

         

        Reference
is made to the further provisions of this Note contained herein, which will for
all purposes have the same effect as if set forth at this place.

         

        
          
            

          

        

        
          
            	
                    3

                  	
                    This
      language should be included only if the Note is issued in global
      form.

                  

          

          

            
              
                 

              

              
                A-1

                
                  

                

              

              
                 

              

            
 

        

        IN
WITNESS WHEREOF, the Issuer has caused this Note to be signed manually or by
facsimile by its duly authorized officer.

         

        Dated:  [            ],
201_

         

        
          
            
              
                	 
      	
                        U.S.
      CONCRETE, INC., as Issuer

                      
	 
      	 
      
	 
      	
                        By:  

                      	 
      
	 
      	 
      	
                        Name:

                      
	 
      	 
      	
                        Title:

                      

              

            

          

        

         

        
          
             

          

          
            A-2

            
              

            

          

          
             

          

        

        FORM OF
TRUSTEE’S CERTIFICATE OF AUTHENTICATION

         

        This is
one of the 9.5% Convertible Secured Notes due 2015 described in the
within-mentioned Indenture.

         

        Dated:  [           ],
201_

         

        
          
            	 
      	
                    U.S.
      BANK NATIONAL ASSOCIATION,

                  
	 
      	
                    as
      Trustee

                  
	 
      	 
      	 
      
	 
      	
                    By:  

                  	
                      

                  
	 
      	 
      	
                    Authorized
      Signatory

                  

          

        

        
          
             

          

          
            A-3

            
              

            

          

          
             

          

        

        (Reverse
of Note)

         

        9.5%
Convertible Secured Notes due 2015

         

        Capitalized
terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.  All references to
“interest” herein, unless the context requires otherwise, shall include
“Additional Interest.”

         

        1.     Interest.  U.S.
Concrete, Inc., a Delaware corporation (the “Issuer”) promises to pay
interest on the principal amount of this Note at 9.5% per annum from
[          ], 2010 until
maturity.  The Issuer will pay interest quarterly on
[        ],
[        ],
[          ] and
[          ] of each year, or
if any such day is not a Business Day, on the next succeeding Business Day (each
an “Interest Payment
Date”), commencing
[           ],
2010.  Interest on the Notes will accrue from the most recent date to
which interest has been paid or, if no interest has been paid, from the date of
original issuance.  The Issuer shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal and premium, if any, from time to time on demand to the extent lawful
at the rate equal to 2% per
annum in excess of the then applicable rate on the Notes; it shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest (without regard to any
applicable grace periods) from time to time on demand at the same rate to the
extent lawful.  Interest will be computed on the basis of a 360-day
year of twelve 30-day months.

         

        2.     Method of
Payment.  The Issuer will pay interest on the Notes to the
Persons who are registered Holders of Notes at the Close of Business on the
[       ],
[           ],
[                   ]
or
[                ]
next preceding the Interest Payment Date (each a “Record Date”), even if such
Notes are canceled after such record date and on or before such Interest Payment
Date, except as provided in Section 2.12 of the Indenture with respect to
defaulted interest.  The Notes will be issued in denominations of
$1,000 and integral multiples thereof.  The Issuer shall pay
principal, premium, if any, and interest on the Notes in such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public and private debts (“U.S. Legal
Tender”).  Principal, premium, if any, and interest on the
Notes will be payable at the office or agency of the Issuer maintained for such
purpose except that, at the option of the Issuer, the payment of interest may be
made by check mailed to the Holders of the Notes at their respective addresses
set forth in the register of Holders of Notes; provided, that for Holders
that have given wire transfer instructions to the Issuer at least three Business
Days prior to the applicable payment date, the Issuer will make all payments of
principal, premium and interest by wire transfer of immediately available funds
to the accounts specified by the Holders thereof.  Until otherwise
designated by the Issuer, the Issuer’s office or agency in New York will be
the office of the Trustee maintained for such purpose.

         

        3.     Paying Agent and
Registrar.  Initially, U.S. Bank National Association, the
Trustee under the Indenture, will act as Paying Agent and
Registrar.  The Issuer may change any Paying Agent or Registrar
without notice to any Holder.  Except as provided in the Indenture,
the Issuer or any of their Subsidiaries may act in any such
capacity.

        
          
             

          

          
            A-4

            
              

            

          

          
             

          

        

        4.  Indenture.  The
Issuer issued the Notes under an Indenture dated as of
[                        ],
2010 (“Indenture”) by
and among the Issuer, the Guarantors, the Trustee and Collateral
Agent.  The terms of the Notes include those stated in the Indenture
and those made part of the Indenture by reference to the Trust Indenture Act of
1939, as amended (15 U.S. Code §§ 77aaa-77bbbb) (the “Trust Indenture
Act”).  The Notes are subject to all such terms, and Holders
are referred to the Indenture and the Trust Indenture Act for a statement of
such terms.

         

        5.     Conversion.

         

        (a)     Optional Conversion.
Subject to and in compliance with the provisions of the Indenture (including
without limitation the conditions of conversion of this Note set forth in the
Indenture), the Holder hereof has the right, at its option, to convert the
principal amount hereof or any portion of such principal which is $1,000 or an
integral multiple thereof, into shares of Common Stock at the applicable
Conversion Rate.  The initial Conversion Rate is 95.23809524 shares of
Common Stock $1,000 principal amount of the Notes (equivalent to a Conversion
Price of approximately $10.50), subject to adjustment in certain events
described in the Indenture. Upon conversion, the Issuer will issue shares of
Common Stock as set forth in the Indenture. No fractional shares will be issued
upon any conversion, but an adjustment and payment in cash will be made, as
provided in the Indenture, in respect of any fraction of a share which would
otherwise be issuable upon the surrender of any Notes for
conversion.  Notes in respect of which a Holder is exercising its
right to require repurchase on a Fundamental Change of Control Purchase Date may
be converted only if such Holder withdraws its election to exercise such right
in accordance with the terms of the Indenture.

         

        (b)     Termination of Conversion
Right Upon Occurrence of a Conversion Event.  Subject to and in
compliance with the provisions of the Indenture (including without limitation
the conditions of conversion of this Note set forth in the Indenture), upon
occurrence of a Conversion Event the right to convert Notes shall terminate as
of 5:00 p.m. New York City time on the date that is 45 days following
the date the Issuer shall send notice of the occurrence of the Conversion Event
(the “Conversion Event
Notice”).  The Conversion Termination Date shall be the date
that is 46 days following the Conversion Event Notice.  Any Notes not
converted prior to the Conversion Termination Date as a result of the Conversion
Cap (specified in (e) below), may, at such Holder’s option, be converted into
shares of the Common Stock on a date or dates prior to the date that is 180 days
following the Conversion Event Termination Date provided that a Holder must send
an election notice (an “Election Notice”) specifying
such later conversion to the Issuer prior to the Conversion Termination
Date.  Any Notes not converted in connection with a Conversion Event
may be redeemed, in whole or in part, at the Issuer’s option at any time prior
to the Maturity Date in accordance with Paragraph 7 hereof.

         

        If a
Conversion Event occurs on or prior to the second anniversary of the Issue Date,
in addition to the shares of Common Stock issuable  upon conversion or
any amounts received upon redemption or at maturity, the Holders shall receive
an amount in cash equal to the Cash Conversion Amount (which, at the election of
the Issuer and subject to satisfaction of certain conditions specified in the
Indenture, may be paid in shares of Common Stock).

         

        As of the
Conversion Termination Date, the interest on the Notes shall cease to accrue,
certain covenants and certain other provisions shall no longer have any force or
effect as specified in the Indenture and the Collateral securing the Notes and
Note Guarantees shall be released.

        
          
             

          

          
            A-5

            
              

            

          

          
             

          

        

        (c)     Conversion in Connection
with the Fundamental Change of Control.  If a Holder converts
its Notes in connection with a Fundamental Change of Control, the Issuer shall
(i) increase the Conversion Rate for the Notes so surrendered for
conversion by a number of Additional Shares of Common Stock as described in the
Indenture and (ii) pay to such Holder in cash the Make Whole Payment equal
to the total amount of interest that would have accrued and become payable on
such Notes from, but excluding, the Effective Date through, and including,
[             ],
20134 (but including
any accrued and unpaid interest on the Notes from the Issue Date through and
including the Effective Date).  The Make Whole Payment shall be made
on the applicable Conversion Payment Date.  Notwithstanding the above
and subject to satisfaction of certain conditions specified in the Indenture, at
the election of the Issuer, the Make Whole Payment may be paid in shares of its
Common Stock.

         

        (d)     Payment of Accrued
Interest.  Upon conversion and without duplication, Holders
shall receive a separate cash payment for Accrued Interest, which, at the
election of the Issuer (subject to satisfaction of certain conditions specified
in the Indenture), may be paid in shares of its Common Stock.

         

        (e)     Conversion
Cap.  Notwithstanding anything to the contrary in this Note and
the Indenture, (i) a “beneficial owner” (as determined pursuant to
Section 13 of the Exchange Act) of the Notes shall not be entitled to
convert any Notes, (ii) the Issuer shall not be entitled to settle any cash
payments owing to any beneficial owner of Notes in shares of its Common Stock
and (iii) shares of any acquiror (or successor) shall not be issued upon
conversion pursuant to the adjustment mechanism contained in the Indenture or in
connection with a transaction governed by the provisions of the Indenture or
upon a Fundamental Change of Control  to the extent, and only to the
extent, such conversion or share settlement would cause such Person, together
with its Affiliates, to become a beneficial owner  of more than 9.9%
of the issued and outstanding shares of Common Stock (or such equivalent shares
of an acquiror or a successor) (the “Conversion
Cap”).

         

        6.     Repurchase at the Option of
Holder

         

        (a)     Upon a Fundamental Change of
Control. Subject to and in compliance with the provisions of the
Indenture (including without limitation the conditions of conversion of this
Note set forth in Paragraph 5), upon occurrence of a Fundamental Change of
Control, the Holders shall have a right to require the Issuer to repurchase all
or a portion of their Notes at 100% of their principal amount, plus accrued and
unpaid interest, if any, thereon to but excluding the Fundamental Change of
Control Purchase Date.

         

        (b)     From Net Proceeds of Certain
Sales and Dispositions.  The Issuer is, subject to certain
conditions and exceptions, obligated to make an offer to purchase Notes at 100%
of their principal amount, plus accrued and unpaid interest, if any, thereon to
the date of repurchase, with certain net cash proceeds of certain sales or other
dispositions of assets in accordance with the Indenture.

        
           

          
            

        

        
          
            	
                    4

                  	
                    NTD: Insert
      third anniversary of the closing
date.

                  

          

          

            
              
                 

              

              
                A-6

                
                  

                

              

              
                 

              

            
 

        

        7.  
    Redemption at the Option of
the Issuer. On or after the Conversion Termination Date, the Issuer may,
at its option, redeem the Notes, in whole or in part, out of funds legally
available therefor, at any time or from time to time, subject to the notice
provisions and provisions for partial redemption described in the Indenture, at
a price (the “Redemption
Price”) equal to 100% of the principal amount thereof, plus accrued and
unpaid interest, if any, to the date fixed for redemption (the “Redemption Date”) plus the
Cash Conversion Amount; provided, that the Issuer may
redeem only such Notes not otherwise specified for conversion pursuant to an
Election Notice.  The Issuer shall pay the Redemption Price in respect
of such Notes subject to redemption on the Redemption Date in accordance with
the provisions of the Indenture.  The Issuer may elect to pay the Cash
Conversion Amount, in whole or in part, in shares of its Common
Stock.

         

        8. 
     Notice of
Redemption.  Notice of redemption will be mailed by first class
mail at least 15 days but not more than 45 days before the Redemption Date to
each Holder of Notes to be redeemed at its registered address.  Notes
in denominations larger than $1,000 may be redeemed in part.  If any
Note is to be redeemed in part only, the notice of redemption that relates to
such Note shall state the portion of the principal amount thereof to be
redeemed.  A new Note in principal amount equal to the unredeemed
portion thereof will be issued in the name of the Holder thereof upon
cancellation of the original Note.  On and after the Redemption Date
interest ceases to accrue on Notes or portions thereof called for
redemption.

         

        9. 
     Mandatory
Redemption.  The Issuer shall
not be required to make any sinking fund, mandatory redemption or other similar
payments with respect to the Notes.

         

        10.     Denominations, Transfer,
Exchange.  The Notes are in registered form without coupons in
denominations of $1,000 and integral multiples thereof.  The transfer
of Notes may be registered and Notes may be exchanged as provided in the
Indenture.  The Registrar and the Trustee may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents and the
Issuer may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture.  The Issuer and the Registrar are not
required to transfer or exchange any Note selected for
redemption.  Also, the Issuer and the Registrar are not required to
transfer or exchange any Notes for a period of 15 days before a selection of
Notes to be redeemed.

         

        11.     Persons Deemed
Owners.  The registered Holder of a Note may be treated as its
owner for all purposes.

         

        12.     Amendment, Supplement and
Waiver.  The Note Documents may be amended or supplemented only
as provided in the Indenture.

        
          
             

          

          
            A-7

            
              

            

          

          
             

          

        

        13.     Defaults and
Remedies.  If a Default occurs and is continuing, the Trustee
or the Holders of at least 25% in principal amount of the then outstanding Notes
generally may declare all the Notes to be due and payable
immediately.  Notwithstanding the foregoing, in the case of a Default
arising from certain events of bankruptcy or insolvency as set forth in the
Indenture, with respect to the Issuer, all outstanding Notes will become due and
payable without further action or notice.  Holders of the Notes may
not enforce the Indenture, the Security Documents, Intercreditor Agreement or
the Notes except as provided in the Indenture.  Subject to certain
limitations, Holders of a majority in principal amount of the then outstanding
Notes may direct the Trustee or Noteholder Collateral Agent in its exercise of
any trust or power.  The Trustee and Noteholder Collateral Agent may
withhold from Holders of the Notes notice of any continuing Default (except a
Default relating to the payment of principal or interest including an
accelerated payment or the failure to make a payment on the Fundamental Change
of Control Purchase Date, or payment in connection with a Conversion Event, on
the Net Proceeds Payment Date pursuant to a Net Proceeds Offer or a Default in
complying with the provisions of Article Seven of the Indenture) if they
determine that withholding notice is in their interest.  The Holders
of a majority in aggregate principal amount of the Notes then outstanding by
notice to the Trustee may on behalf of the Holders of all of the Notes waive any
existing Default and its consequences under the Indenture except a continuing
Default in the payment of interest on, or the principal of, or the premium on,
the Notes.

         

        14.     Restrictive
Covenants.  The Indenture contains certain covenants that,
among other things, limit the ability of the Issuer and its Restricted
Subsidiaries to make restricted payments, to incur indebtedness, to create
liens, to sell assets, to permit restrictions on dividends and other payments by
Restricted Subsidiaries of the Issuer, to consolidate, merge or sell all or
substantially all of its assets or to engage in transactions with
affiliates.  The limitations are subject to a number of important
qualifications and exceptions.  The Issuer must annually report to the
Trustee on compliance with such limitations and other provisions in the
Indenture.

         

        15.     No Recourse Against
Others.  No director, officer, employee, incorporator,
stockholder, member or manager of the Issuer or any Guarantor shall have any
liability for any obligations of the Issuer under the Notes or the Indenture, or
of any Guarantor under its Note Guarantee or the Indenture or for any claim
based on, in respect of, or by reason of, such obligations or their
creation.  Each Holder of Notes by accepting a Note waives and
releases all such liability.  The waiver and release are part of the
consideration for issuance of the Notes.

         

        16.     Note
Guarantees.  This Note will be entitled to the benefits of
certain Note Guarantees made for the benefit of the
Holders.  Reference is hereby made to the Indenture for a statement of
the respective rights, limitations of rights, duties and obligations thereunder
of the Guarantors, the Trustee and the Holders.

         

        17.     Security
Interest.  The Notes will be secured, to the extent and in the
manner provided in the Security Documents, by (i) a first priority Lien on
the Notes Collateral (subject to Permitted Liens), and (ii) a second
priority Lien on the ABL Collateral (subject to Permitted
Liens).  Each Holder of Notes, by its acceptance of a Note, consents
and agrees to the terms of each Security Document and the Intercreditor
Agreement, authorizes and directs the Trustee to appoint U.S. Bank National
Association as Noteholder Collateral Agent on the Issue Date and directs the
Noteholder Collateral Agent to enter into the Security Documents and the
Intercreditor Agreement, and authorizes and empowers each of the Trustee and the
Noteholder Collateral Agent to bind the Holders of Notes as set forth in the
Security Documents and the Intercreditor Agreement and to perform its respective
obligations and exercise its respective rights and powers
thereunder.  In the event of any conflict between (a) the
Indenture (on the one hand) and (b) the Intercreditor Agreement and the
Security Documents (on the other hand), the provisions of the Intercreditor
Agreement and Security Documents shall control unless such compliance would
violate the TIA.

        
          
             

          

          
            A-8

            
              

            

          

          
             

          

        

        18.     Trustee Dealings with the
Issuer.  Subject to certain terms, the Trustee or Noteholder
Collateral Agent under the Indenture, in its individual or any other capacity,
may become the owner or pledgee of Notes and may otherwise deal with the Issuer,
their Subsidiaries or their respective Affiliates as if it were not the Trustee
or Noteholder Collateral Agent.

         

        19.     Authentication.  This
Note shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent.

         

        20.     Abbreviations.  Customary
abbreviations may be used in the name of a Holder or an assignee, such
as:  TEN COM (= tenants in common), TEN ENT (= tenants by the
entirety), JT TEN (= joint tenants with right of survivorship and not as tenants
in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors
Act).

         

        21.     Additional Rights of Holders
of Restricted Global Notes and Restricted Definitive Notes.  In
addition to the rights provided to Holders of Notes under the Indenture, Holders
of Registrable Securities (as defined in the Registration Rights Agreement) will
have all the rights set forth in the Registration Rights Agreement dated as of
[          ], 2010, among the
Issuer, the Guarantors and the other parties named on the signature pages
thereof (the “Registration
Rights Agreement”).

         

        22.     CUSIP
Numbers.  Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Issuer has caused
CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers
in notices of redemption as a convenience to Holders.  No
representation is made as to the accuracy of such numbers either as printed on
the Notes or as contained in any notice of redemption and reliance may be placed
only on the other identification numbers placed thereon.

         

        23.     Governing
Law.  This
Note shall be governed by, and construed in accordance with, the laws of the
State of New York.

         

        The
Issuer will furnish to any Holder upon written request and without charge a copy
of the Note Documents.

        
          
             

          

          
            A-9

            
              

            

          

          
             

          

        

        ASSIGNMENT
FORM

         

        I or we
assign and transfer this Note to

         

          
            

          

        

        
           

          
            

          

        

        (Print or
type name, address and zip code of assignee or transferee)

         

        
          
            

          

        

        (Insert
Social Security or other identifying number of assignee or
transferee)

         

        and
irrevocably appoint _______________________________________ agent to transfer
this Note on the books of the Issuer.  The agent may substitute
another to act for him.

         

        
          
            
              
                	
                        Dated:  _________________

                      	
                        Signed:  

                      	
                          
      

                      
	 
      	 
      	
                        (Sign
      exactly as name appears on

                      
	 
      	 
      	
                        the
      other side of this
Note)

                      

              

            

          

        

         

        
          
            
              	
                      Signature
      Guarantee:

                    	
                        

                    
	 
      	
                      Participant
      in a recognized Signature Guarantee Medallion Program (or other signature
      guarantor program reasonably acceptable to the
  Trustee)

                    

            

          

        

         

        In
connection with any transfer of this Note occurring prior to the date which is
the date following the expiration of the applicable holding period set forth in
Rule 144(d) of the Securities Act of this Note, the undersigned confirms that it
has not utilized any general solicitation or general advertising in connection
with the transfer and is making the transfer pursuant to one of the
following:

         

        [Check
One]

         

        
          	
                  (1)
      o

                	
                  to
      the Issuer or a subsidiary thereof;
or

                

        

         

        
          	
                  (2)
      o

                	
                  to
      a person who the transferor reasonably believes is a “qualified
      institutional buyer” pursuant to and in compliance with Rule 144A under
      the Securities Act of 1933, as amended (the “Securities Act”);
      or

                

        

         

        
          	
                  (3)
      o

                	
                  to
      an institutional “accredited investor” (as defined in Rule 501(a)(1), (2),
      (3) or (7) under the Securities Act) that has furnished to the
      Trustee a signed letter containing certain representations and agreements
      (the form of which letter can be obtained from the Trustee);
      or

                

        

         

        
          	
                  (4)
      o

                	
                  outside
      the United States to a non-“U.S. person” as defined in Rule 902 of
      Regulation S under the Securities Act in compliance with Rule 904 of
      Regulation S under the Securities Act;
or

                

        

         

        
          
             

          

          
            A-10

            
              

            

          

          
             

          

        

        
          	
                  (5)
      o

                	
                  pursuant
      to the exemption from registration provided by Rule 144 under the
      Securities Act or pursuant to another exemption available under the
      Securities Act; or

                

        

         

        
          	
                  (6)
      o

                	
                  pursuant
      to an effective registration statement under the Securities
      Act.

                

        

         

        and
unless the box below is checked, the undersigned confirms that such Note is not
being transferred to an “affiliate” of the Issuer as defined in Rule 144 under
the Securities Act (an “Affiliate”):

         

         ̈ The transferee is an
Affiliate of the Issuer.

         

        Unless
one of the foregoing items (1) through (6) is checked, the Trustee will
refuse to register any of the Notes evidenced by this certificate in the name of
any person other than the registered Holder thereof; provided, however, that if item (3),
(4) or (5) is checked, the Issuer or the Trustee may require, prior to
registering any such transfer of the Notes, in their sole discretion, such
written legal opinions, certifications (including an investment letter in the
case of box (3) or (4)) and other information as the Trustee or the Issuer
has reasonably requested to confirm that such transfer is being made pursuant to
an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act.

         

        If none
of the foregoing items (1) through (6) are checked, the Trustee or
Registrar shall not be obligated to register this Note in the name of any person
other than the Holder hereof unless and until the conditions to any such
transfer of registration set forth herein and in Section 2.16 of the
Indenture shall have been satisfied.

         

        
          
            
              	
                      Dated:
      _____________

                    	
                      Signed:  

                    	
                        

                    
	 
      	 
      	
                      (Sign
      exactly as name appears on the other

                    
	 
      	 
      	
                      side
      of this Note)

                    

            

          

        

         

        Signature
Guarantee:
_____________________________________________________________

         

        
          
            	 
      	
                    Participant
      in a recognized Signature Guarantee Medallion Program (or other signature
      guarantor program reasonably acceptable to the
  Trustee)

                  

          

        

        

        TO BE
COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED

         

        The
undersigned represents and warrants that it is purchasing this Note for its own
account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a “qualified institutional buyer”
within the meaning of Rule 144A under the Securities Act and is aware that the
sale to it is being made in reliance on Rule 144A and acknowledges that it has
received such information regarding the Issuer as the undersigned has requested
pursuant to Rule 144A or has determined not to request such information and that
it is aware that the transferor is relying upon the undersigned’s foregoing
representations in order to claim the exemption from registration provided by
Rule 144A.

         

        
          
            	
                    Dated:
      _____________

                  	
                      

                  
	 
      	
                    NOTICE:  

                  	
                    To
      be executed by an executive
officer

                  

          

        

         

        
          
             

          

          
            A-11

            
              

            

          

          
             

          

        

        OPTION OF
HOLDER TO ELECT PURCHASE

         

        If you
want to elect to have this Note purchased by the Issuer pursuant to
Article Three or Section 6.11 of the Indenture, check the appropriate
box:

         

        Article Three                                           Section 6.11

         

        If you
want to elect to have only part of this Note purchased by the Issuer pursuant to
Article Three or Section 6.11 of the Indenture, state the amount (in
denominations of $1,000 and integral multiples
thereof):  $___________

         

        
          
            
              	
                      Dated:  _________________

                    	
                      Signed:  

                    	 
      
	 
      	 
      	
                      (Sign
      exactly as name

                    
	 
      	 
      	
                      appears
      on the other

                    
	 
      	 
      	
                      side
      of this Note)

                    

            

          

        

         

        
          
            
              	
                      Signature
      Guarantee:

                    	
                         

                    
	 
      	
                      Participant
      in a recognized Signature Guarantee Medallion Program (or other signature
      guarantor program reasonably acceptable to the
  Trustee)

                    

            

          

        

         

        
          
             

          

          
            A-12

            
              

            

          

          
             

          

        

        CONVERSION
NOTICE

         

        If you
want to convert this Note into Common Stock of the Issuer, check the box:  ̈

         

        To
convert only part of this Note, state the principal amount to be converted
(which must be $1,000 or an integral multiple of thereof):

         

        $                                      
5

         

        State the
principal amount of the Notes held not subject to conversion
$________.

         

        State the
aggregate number of shares of Common Stock of the Issuer beneficially owned as
of the date of this notice __________.

         

        The
Issuer and the Trustee shall be entitled to rely upon the representation
herein.  The Issuer shall not be in breach of any provision of the
Indenture or the Note with respect to shares of Common Stock issued in reliance
on such information and shall have no liability (and shall be indemnified by the
undersigned for any liability) as a result of the issuance of any shares of
Common Stock to the undersigned in excess of the Conversion Cap issued in
reliance on such information.

         

        If you
want the share certificate, if any, made out in another
person’s name, fill in the form below:

         

        (Insert
other person’s social security or tax ID no.)

         

        (Print or
type other person’s name, address and zip code)

         

        Date:_____________________________          Signed:_________________________

         

        (Sign
exactly as your name appears on the other side of this Note)

         

        Signature
Guarantee:

         

        NOTE:
Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other
“signature guarantee program” as may be determined by the Registrar in addition
to, or in substitution for, STAMP, all in accordance with the Securities
Exchange Act of 1934, as amended.

        
           

          
            

          

        

        
           

          
            	
                    5

                  	
                    NTD:  State
      the (1) principal amount of Notes held not subject to conversion and (2)
      aggregate number of shares of common stock of the Issuer held as of the
      date of this notice.

                  

          

          

            
              
                 

              

              
                A-13

                
                  

                

              

              
                 

              

            

          

           

        

      

      SCHEDULE
OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE6

       

      The
following exchanges of a part of this Global Note for an interest in another
Global Note or for a Physical Note, or exchanges of a part of another Global
Note or Physical Note for an interest in this Global Note, have been
made:

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	
                                              Date of Exchange

                                            	 	
                                              Amount of decrease in

                                              Principal Amount of

                                              this Global Note

                                            	 	
                                              Amount of increase in

                                              Principal Amount of

                                              this Global Note

                                            	 	
                                              Principal Amount of

                                              this Global Note

                                              following such decrease

                                              (or increase)

                                            	 	
                                              Signature of

                                              authorized officer of

                                              Trustee or Note

                                              Custodian

                                            
	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

        

      
        
          

        

      

      
        
          	
                  6

                	
                  This
      schedule should be included only if the Note is issued in global
      form.

                

        

         

        
          
            
               

            

            
              A-14

              
                

              

            

            
               

            

          

        

         

        EXHIBIT
B

      

       

      NOTE
GUARANTEE

       

      For value received, each of the undersigned
(including any successor Person under the Indenture) hereby unconditionally
guarantees, jointly and severally, to the extent set forth in the Indenture (as
defined below) to the Holder of this Note the payment of principal, premium, if
any, and interest on this Note in the amounts and at the times when due and
interest on the overdue principal, premium, if any, and interest, if any, of
this Note when due, if lawful, and, to the extent permitted by law, the payment
or performance of all other obligations of the Issuer under the Indenture or the
Notes or other Note Documents, to the Holder of this Note and the Trustee and
other Noteholder Secured Parties, all in accordance with and subject to the
terms and limitations of this Note, the Indenture, including Article Thirteen
thereof, and this Note
Guarantee.  This Note Guarantee will become effective in accordance
with Article Thirteen of the Indenture and its terms shall be evidenced
therein.  The validity and enforceability of any Note Guarantee shall
not be affected by the fact that it is not affixed to any particular
Note.

       

      Capitalized
terms used but not defined herein shall have the meanings ascribed to them in
the Indenture dated as of
[           ], 2010,
among U.S. Concrete, Inc., a Delaware corporation (the “Issuer”), the Guarantors
named therein and U.S. Bank National Association, as trustee (the “Trustee”), as
amended or supplemented (the “Indenture”).

       

      The
obligations of the undersigned to the Holders of Notes and to the Trustee
pursuant to this Note Guarantee and the Indenture are expressly set forth
in Article Thirteen of the Indenture and reference is hereby made to
the Indenture for the precise terms of the Note Guarantee and all of the other
provisions of the Indenture to which this Note Guarantee relates.

       

      No
director, officer, employee, incorporator, stockholder, member or manager of any
Guarantor, as such, shall have any liability for any obligations of such
Guarantors under such Guarantors’ Note Guarantee or the Indenture or for any
claim based on, in respect of, or by reason of, such obligation or its
creation.

       

      This Note Guarantee shall be governed
by, and construed in accordance with, the laws of the State of
New York.

       

      This Note
Guarantee is subject to release upon the terms set forth in the
Indenture.

      
        
           

        

        
          B-1

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, each Guarantor has caused its Note Guarantee to be duly
executed.
 

      
        
          
            	
                    Date:

                  	 
      
	 
      	 
      
	 
      	
                    [                           ]

                  
	 
      	 
      	 
      
	 
      	
                    By:

                  	 
      
	 
      	 
      	
                    Name:

                  
	 
      	 
      	
                    Title:

                  

          

        

      
 

      
        
           

        

        
          B-2

          
            

          

        

        
           

        

      

      EXHIBIT
C

       

      FORM
OF LEGENDS

       

      Each
Global Note and Physical Note that constitutes a Restricted Security shall bear
the following legend (the “Private Placement Legend”) on the face thereof until
the expiration of the applicable holding period with respect thereto set forth
in Rule 144(d) of the Securities Act, unless otherwise agreed by the Issuer and
the Holder thereof or if such legend is no longer required by Section
2.16(f) of the Indenture:

       

      This
note (or its predecessor) was originally issued in a transaction exempt from
registration under the United States Securities Act of 1933 (the “Securities
Act”), and this note may not be offered, sold or otherwise transferred in the
absence of such registration or an applicable exemption
therefrom.  Each purchaser of this note is hereby notified that the
seller of this note may be relying on the exemption from the provisions of
Section 5 of the Securities Act provided by Rule 144A
thereunder.

       

      The
holder of this note agrees for the benefit of the Issuer and the Guarantors that
(a) this note may be offered, resold, pledged or otherwise transferred,
only (i) so long as such security is eligible for resale pursuant to Rule
144A, in the United States to a person whom the seller reasonably believes is a
qualified institutional buyer (as defined in Rule 144A under the Securities Act)
in a transaction meeting the requirements of rule 144A, (ii) outside the
United States in an offshore transaction in accordance with Rule 904 under the
Securities Act, (iii) pursuant to an exemption from registration under the
securities act provided by Rule 144 thereunder (if available) or
(iv) pursuant to an effective registration statement under the Securities
Act, in each of cases (i) through (iv) in accordance with any
applicable securities laws of any state of the United States, and (b) the
holder will, and each subsequent holder is required to, notify any purchaser of
this note from it of the resale restrictions referred to in
(a) above.

       

      Each
Global Note authenticated and delivered hereunder shall also bear the following
legend:

       

      This
note is a Global Note within the meaning of the Indenture hereinafter referred
to and is registered in the name of a Depositary or a nominee of a Depositary or
a successor Depositary.  This note is not exchangeable for notes
registered in the name of a person other than the Depositary or its nominee
except in the limited circumstances described in the indenture, and no transfer
of this note (other than a transfer of this note as a whole by the Depositary to
a nominee of the Depositary or by a nominee of the Depositary to the Depositary
or another nominee of the Depositary) may be registered except in the limited
circumstances described in the Indenture.

      
        
           

        

        
          C-1

          
            

          

        

        
           

        

      

      Unless
this certificate is presented by an authorized representative of the Depositary
Trust Company, a New York Corporation (“DTC”), to the Issuer or its agent
for registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested
by an authorized representative of DTC (and any payment is made to Cede &
Co. or to such other entity as is requested by an authorized representative of
DTC), any transfer, pledge or other use hereof for value or otherwise by or to
any person is wrongful inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

       

      Transfers
of this Global Note shall be limited to transfers in whole, but not in part, to
nominees of Cede & Co. or to a successor thereof or such successor’s nominee
and transfers of portions of this Global Note shall be limited to transfers made
in accordance with the restrictions set forth in Section 2.16 of the
Indenture.

       

      Each
Temporary Regulation S Global Note shall also bear the following
legend:

       

      This
note (or its predecessor) was originally issued in a transaction originally
exempt from registration under the U.S. Securities Act of 1933, as amended (the
“Securities Act”), and may not be transferred in the United States or to, or for
the account or benefit of, any U.S. person except pursuant to an available
exemption from the registration requirements of the securities act and all
applicable state securities laws. terms used above have the meanings given to
them in Regulation S under the Securities Act.

      
        
           

        

        
          C-2

          
            

          

        

        
           

        

      

      EXHIBIT
D

       

      FORM
OF CERTIFICATE TO BE DELIVERED IN CONNECTION WITH

      TRANSFERS
OF TEMPORARY REGULATION S GLOBAL NOTE

       

      ___________________,_______

       

      U.S. Bank
National Association

      60
Livingston Avenue

      1st Floor
– Bond Drop Window

      St. Paul,
MN  55107

      Attn.:
Corporate Trust Department – U.S. Concrete

       

      
        	
                 
      

              	
                Re:

              	
                U.S.
      Concrete, Inc. (the “Issuer”)

              

      

      
        	
                 
      

              	
                9.5% Convertible
      Secured Notes due 2015 (the
“Notes”)

              

      

       

      Dear
Sirs:

       

      This
letter relates to U.S. $ ______________ principal amount of Notes represented by
a certificate (the “Legended
Certificate”) which bears a legend outlining restrictions upon transfer
of such Legended Certificate.  Pursuant to Section 2.16(c) of the
Indenture (the “Indenture”) dated as of
[                        ],
2010 relating to the Notes, we hereby certify that we are (or we will hold such
securities on behalf of) a person outside the United States (or to a Purchaser
Party (as defined in the Indenture)) to whom the Notes could be transferred in
accordance with Rule 904 of Regulation S promulgated under the U.S.
Securities Act of 1933, as amended.

       

      You, as
Trustee, the Issuer, counsel for the Issuer and others are entitled to rely upon
this letter and are irrevocably authorized to produce this letter or a copy
hereof to any interested party in any administrative or legal proceedings or
official inquiry with respect to the matters covered hereby.  Terms
used in this letter have the meanings set forth in
Regulation S.

       

      
        
          
            
              
                
                  
                    
                      	 
      	
                              Very
      truly yours,

                            
	 	 
	 
      	
                              [Name
      of Holder]

                            
	 	 
	 
      	
                              By:

                            	 
      
	 
      	 
      	
                              Authorized
      Signature

                            

                    

                  

                

              

            

          

        

      

      
        
           

        

        
          D-1

          
            

          

        

        
           

        

      

      EXHIBIT
E

       

      FORM
OF CERTIFICATE TO BE

      DELIVERED
IN CONNECTION WITH

      TRANSFERS
TO NON-QIB INSTITUTIONAL ACCREDITED INVESTORS

       

      [                  ],
[     ]

       

      U.S. Bank
National Association

      60
Livingston Avenue

      1st Floor
– Bond Drop Window

      St. Paul,
MN  55107

      Attn.:
Corporate Trust Department – U.S. Concrete

       

      Ladies
and Gentlemen:

       

      In
connection with our proposed purchase of 9.5% Convertible Secured Notes due 2015
(the “Notes”) of U.S.
CONCRETE, INC., a Delaware corporation (the “Issuer”), we confirm
that:

       

      1.           We
understand that any subsequent transfer of the Notes is subject to certain
restrictions and conditions set forth in the Indenture relating to the Notes
(the “Indenture”) and the undersigned agrees to be bound by, and not to resell,
pledge or otherwise transfer the Notes except in compliance with, such
restrictions and conditions and the Securities Act of 1933, as amended (the
“Securities Act”), and all applicable state securities laws.

       

      2.           We
understand that the offer and sale of the Notes have not been registered under
the Securities Act, and that the Notes may not be offered, sold, pledged or
otherwise transferred except as permitted in the following
sentence.  We agree, on our own behalf and on behalf of any accounts
for which we are acting as hereinafter stated, that if we should sell, offer,
pledge or otherwise transfer any Notes, we will do so only (i) to the
Issuer or any of its subsidiaries, (ii) so long as such security is
eligible for resale pursuant to Rule 144A, inside the United States in a
transaction meeting the requirements of Rule 144A under the Securities Act to a
person who we reasonably believe to be a “qualified institutional buyer” (as
defined in Rule 144A under the Securities Act), (iii) inside the United
States to an institutional “accredited investor” (as defined below) that is
purchasing at least $250,000 of Notes for its own account or for the account of
an institutional accredited investor and who, prior to such transfer, furnishes
(or has furnished on its behalf by a U.S. broker-dealer) to the Trustee (as
defined in the Indenture) a signed letter containing certain representations and
agreements relating to the restrictions on transfer of the Notes (the form of
which letter can be obtained from the Trustee), (iv) outside the United
States to a person that is not a U.S. person (as defined in Rule 902 under the
Securities Act) in accordance with Regulation S promulgated under the Securities
Act, (v) pursuant to the exemption from registration provided by Rule 144
under the Securities Act (if available) or another available exemption under the
Securities Act or (vi) pursuant to an effective registration statement
under the Securities Act, and we further agree to provide to any person
purchasing any of the Notes from us a notice advising such purchaser that
resales of the Notes are restricted as stated herein.

      
        
           

        

        
          E-1

          
            

          

        

        
           

        

      

      3.           We
are not acquiring the Notes for or on behalf of, and will not transfer the Notes
to, any pension or welfare plan (as defined in Section 3 of the Employee
Retirement Income Security Act of 1974, as amended) or plan (as defined in
Section 4975 of the Internal Revenue Code of 1986, as amended), except as
permitted in the Section entitled “Notice to Investors” of the Offering
Memorandum.

       

      4.           We
understand that, on any proposed resale of any Notes, we will be required to
furnish to the Trustee and the Issuer such certification, legal opinions and
other information as the Trustee and the Issuer may reasonably require to
confirm that the proposed sale complies with the foregoing
restrictions.  We further understand that the Notes purchased by us
will bear a legend to the foregoing effect.

       

      5.           We
are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2),
(3) or (7) of Regulation D under the Securities Act) and have such
knowledge and experience in financial and business matters as to be capable of
evaluating the merits and risks of our investment in the Notes, and we and any
accounts for which we are acting are each able to bear the economic risk of our
or their investment, as the case may be.

       

      6.           We
are acquiring the Notes purchased by us for our account or for one or more
accounts (each of which is an institutional “accredited investor”) as to each of
which we exercise sole investment discretion.

      
        
           

        

        
          E-2

          
            

          

        

        
           

        

      

      You, as
Trustee, the Issuer, counsel for the Issuer and others are entitled to rely upon
this letter and are irrevocably authorized to produce this letter or a copy
hereof to any interested party in any administrative or legal proceeding or
official inquiry with respect to the matters covered hereby.

       

      
        
          
            
              
                
                  
                    
                      	 
      	
                              Very
      truly yours,

                            
	 	 
	 
      	
                              [Name
      of Transferee]

                            
	 	 
	 
      	
                              By:

                            	 
      
	 
      	 
      	
                              Name:

                            
	 
      	 
      	
                              Title:

                            

                    

                  

                

              

            

          

        

      

      
        
           

        

        
          E-3

          
            

          

        

        
           

        

      

      EXHIBIT
F

       

      FORM
OF CERTIFICATE TO BE DELIVERED

      IN
CONNECTION WITH TRANSFERS

            PURSUANT
TO REGULATION S  

       

      [                ],
[     ]

       

      U.S. Bank
National Association

      60
Livingston Avenue

      1st Floor
– Bond Drop Window

      St. Paul,
MN  55107

      Attn.:
Corporate Trust Department – U.S. Concrete

       

      
        	
                 
      

              	
                Re:

              	
                U.S.
      Concrete, Inc. (the “Issuer”)

              

      

      
        	
                 
      

              	
                9.5% Convertible
      Secured Notes due 2015 (the
“Notes”)

              

      

       

      Ladies
and Gentlemen:

       

      In
connection with our proposed sale of
$[        ] aggregate principal amount
of the Notes, we confirm that such sale has been effected pursuant to and in
accordance with Regulation S under the U.S. Securities Act of 1933, as amended
(the “Securities Act”), and, accordingly, we represent that:

       

      (1)           the
offer of the Notes was not made to a person in the United States;

       

      (2)           either
(a) at the time the buy offer was originated, the transferee was outside
the United States or we and any person acting on our behalf reasonably believed
that the transferee was outside the United States, or (b) the transaction
was executed in, on or through the facilities of a designated offshore
securities market and neither we nor any person acting on our behalf knows that
the transaction has been prearranged with a buyer in the United
States;

       

      (3)           no
directed selling efforts have been made in the United States in contravention of
the requirements of Rule 903(b) or Rule 904(b) of Regulation S, as
applicable;

       

      (4)           the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act; and

       

      (5)           we
have advised the transferee of the transfer restrictions applicable to the
Notes.

       

      
        
          
          

        

        
          F-1

          
            

          

        

        
          
          

        

      

       

      You, as
Trustee, the Issuer, counsel for the Issuer and others are entitled to rely upon
this letter and are irrevocably authorized to produce this letter or a copy
hereof to any interested party in any administrative or legal proceedings or
official inquiry with respect to the matters covered hereby.  Terms
used in this certificate have the meanings set forth in Regulation
S.

       

      
        
          
            
              
                
                  
                    
                      
                        	 
      	
                                Very
      truly yours,

                              
	 	 
	 
      	
                                [Name
      of Transferor]

                              
	 	 
	 
      	
                                By:

                              	 
      
	 
      	 
      	
                                Authorized
      Signatory

                              

                      

                    

                  

                

              

            

          

        

      

       

      
        
           

        

        
          F-2

          
            

          

        

        
           

        

      

      EXHIBIT
G

       

      COMMON
STOCK LEGEND

       

      THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY NOR
ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE OFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
REGISTRATION UNDER THE SECURITIES ACT. BY ITS ACQUISITION HEREOF, OR OF A
BENEFICIAL INTEREST HEREIN, THE HOLDER:

       

      (1) REPRESENTS
THAT IT AND ANY ACCOUNT FOR WHICH IT IS ACTING IS A “QUALIFIED INSTITUTIONAL
BUYER” (WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT) AND THAT IT
EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT,
AND

       

      (2) AGREES
FOR THE BENEFIT OF U.S. CONCRETE, INC. (THE “COMPANY”) THAT IT WILL NOT OFFER,
SELL, PLEDGE OR OTHERWISE TRANSFER THIS SECURITY OR ANY BENEFICIAL INTEREST
HEREIN PRIOR TO DATE THAT IS THE LATER OF (X) ONE YEAR AFTER THE LAST
ORIGINAL ISSUE DATE HEREOF OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE
144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THEREUNDER, AND
(Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAW,
EXCEPT:

       

      (A) TO
THE COMPANY OR ANY SUBSIDIARY THEREOF, OR

       

      (B) PURSUANT
TO A REGISTRATION STATEMENT WHICH HAS BEEN BECOME EFFECTIVE UNDER THE SECURITIES
ACT, OR

       

      (C) FOR
SO LONG AS THE SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A
PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER AS DEFINED IN
RULE 144A THAT IS PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING
MADE IN RELIANCE ON RULE 144A, ALL IN COMPLIANCE WITH RULE 144A, OR

       

      (D) PURSUANT
TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, INCLUDING RULE 144, IF AVAILABLE.

      
        
           

        

        
          G-1

          
            

          

        

        
           

        

      

      PRIOR TO
ANY OFFER, SALE, PLEDGE OR TRANSFER PURSUANT TO CLAUSE (2)(D) ABOVE THE COMPANY
AND THE TRUSTEE RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM IN
ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH
THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION IS
MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT.

      
        
           

        

        
          G-2

          
            

          

        

        
           

        

      

      EXHIBIT
H

       

      FORM
OF CONVERSION EVENT NOTICE

       

      _______________, ____

      [Name of
the Holder]

      [Address
of the Holder]

       

      
        	
                 
      

              	
                Re:

              	
                U.S.
      Concrete, Inc. (the “Issuer”)

              

      

      
        	
                 
      

              	
                9.5% Convertible
      Secured Notes due 2015 (the
“Notes”)

              

      

       

      Dear
Sirs;

       

      This is a
Conversion Event Notice as defined in Section 5.08 of the Indenture dated as of
[        ], 2010 (the “Indenture”) among the Issuer,
the guarantors from time to time party thereto and U.S. Bank National
Association, as Trustee.  Terms used but not defined herein shall have
the meanings ascribed to them in the Indenture.

       

      We hereby
notify you that

       

      1.           On
[            ]7,
[                 ]8 occurred, which
constitutes the Conversion Event pursuant to the Indenture;

       

      2.           The
Conversion Rate applicable to the Notes is
[             ]9;

       

      3.           The
right to convert Notes will terminate on
[                  ],
the date that is 46 days following the date of this Conversion Event Notice (the
“Conversion Termination
Date”);

       

      4.           Holders
may convert Notes up to the Conversion Cap at any time prior to the Close of
Business on
[                  ],
the Business Day immediately preceding the Conversion Termination
Date;

       

      5.           Any
Holders who cannot convert the full amount of their Notes prior to the
Conversion Termination Date due to the Conversion Cap may send an Election
Notice to us in the form attached hereto (Exhibit J to the Indenture) and
may elect to convert Notes on any date or dates prior to the date that is 180
days following the Conversion Termination Date;

       

        
          

      

      
         

        
          	
                  7

                	
                  Insert
      the date of the Conversion Event.

                

        

         

      

      
        
          	
                  8

                	
                  Describe
      Conversion Event.

                

        

         

      

      
        
          	
                  9

                	
                  Insert
      Conversion Rate.

                

        

        

          
            
               

            

            
              H-1

              
                

              

            

            
               

            

          

        

         

      

      6.           Except
as otherwise provided in an Election Notice, any Notes not otherwise converted
prior to the Conversion Termination Date may be redeemed at our option in
accordance with Article Four of the Indenture;

       

      7.           Interest
shall cease to accrue on all Notes as of (but not including) the Conversion
Termination Date;

       

      8.           The
following covenants
[                              ]
contained in the Indenture shall cease to have any further force or effect as of
the Conversion Termination Date and the following provisions of the Indenture
shall no longer apply
[                      ]
and the Collateral securing the Notes and the Note Guarantees will be released;
and

       

      9.           The
Cash Conversion Amount payable on all Notes as a result of the Conversion Event
is $[          ] and will be
paid on
[            ].

       

      
        
          
            
              
                
                  	 
      	
                          U.S.
      CONCRETE, INC.

                        
	 	 
	 
      	
                          By:

                        	 
      
	 
      	 
      	
                          Name:

                        
	 
      	 
      	
                          Title:

                        

                

              

            

            

              
                
                   

                

                
                  H-2

                  
                    

                  

                

                
                   

                

              

            

          

        

      

       

      EXHIBIT
I

       

      FORM
OF FUNDAMENTAL CHANGE OF CONTROL PURCHASE NOTICE

       

      _______________, ____

      U.S. Bank
National Association

      60
Livingston Avenue

      1st Floor
– Bond Drop Window

      St. Paul,
MN  55107

      Attn.:
Corporate Trust Department – U.S. Concrete

       

      
        	
                 
      

              	
                Re:

              	
                U.S.
      Concrete, Inc. (the “Issuer”)

              

      

      
        	
                 
      

              	
                9.5% Convertible
      Secured Notes due 2015 (the
“Notes”)

              

      

       

      Dear
Sirs:

       

      This is a
Fundamental Change of Control Purchase Notice as defined in Section 3.01(c)
of the Indenture dated as of [        ],
2010 (the “Indenture”)
among the Issuer, the guarantors from time to time party thereto and U.S. Bank
National Association, as Trustee.  Terms used but not defined herein
shall have the meanings ascribed to them in the Indenture.

       

      Certificate
No(s). of Notes:                                           

       

      (if
Physical Notes)

       

      I intend
to deliver the following aggregate principal amount of Notes for purchase by the
Issuer pursuant to Section 3.01 of the Indenture (in minimum denomination
of $1,000 and integral multiples thereof):

       

      $                                     

       

      I hereby
certify that I am [      ] / am not
[      ] a Purchaser Party (as defined in the
Indenture).

       

      I hereby
agree that the Notes will be purchased as of the Fundamental Change of Control
Purchase Date pursuant to the terms and conditions thereof and of the
Indenture.

       

      Signed:
________________

      
        
           

        

        
          I-1

          
            

          

        

        
           

        

      

      EXHIBIT
J

       

      FORM OF ELECTION
NOTICE

       

      U.S.
Concrete, Inc.

      [                  ]

      [                  ]

      T:  [                         ]

      F:  [                         ]

      Attention:
[                         ]

       

      
        	
                 
      

              	
                Re:

              	
                9.5% Convertible
      Secured Notes due 2015 (the
“Notes”)

              

      

       

      Dear
Sirs:

       

      This is a
Election Notice as defined in Section 5.08(c) of the Indenture dated as of
[        ], 2010 (the “Indenture”) among U.S.
Concrete, Inc. (the “Issuer”), the guarantors from time to time party thereto
and U.S. Bank National Association, as Trustee.  Terms used but not
defined herein shall have the meanings ascribed to them in the
Indenture.

       

      Certificate
No(s). of Notes:                                           

       

      (if
certificated)

       

      I intend
to deliver the following aggregate principal amount of Notes for conversion by
the Issuer pursuant to Section 5.08 of the Indenture (in minimum
denomination of $1,000 and integral multiples thereof):

       

      $                                     

       

      and
request such Notes to be converted into the shares of Common Stock on the Issuer
on [          ].

       

      As of the
date hereof I am the beneficial owner of
[                 ]
of shares of Common Stock.

       

      Signed:
________________
 

      
        
           

        

        
          J-1

          
            

          

        

        
           

        

      

      Schedule
I

       

      Reference Table for
Calculation of Additional Shares

       

      
        The
following table sets forth the number of Additional Shares of the Issuer’s
Common Stock to be added to the Conversion Rate per $1,000 principal amount of
Notes in connection with an   "Adjustment
Upon Fundamental Change of Control"
 

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        	
                                                                Valuation Date

                                                              	 	
                                                                STOCK PRICE

                                                              	 
	 
      	 	
                                                                $6.21

                                                              	 	 	
                                                                $7.00

                                                              	 	 	
                                                                $10.50

                                                              	 	 	
                                                                $14.00

                                                              	 	 	
                                                                $17.50

                                                              	 	 	
                                                                $21.00

                                                              	 	 	
                                                                $24.50

                                                              	 	 	
                                                                $28.00

                                                              	 
	
                                                                8/31/2010

                                                              	 	 	65.793	 	 	 	53.181	 	 	 	23.631	 	 	 	11.808	 	 	 	6.225	 	 	 	3.320	 	 	 	1.715	 	 	 	0.806	 
	
                                                                8/31/2011

                                                              	 	 	65.793	 	 	 	52.584	 	 	 	21.700	 	 	 	9.582	 	 	 	4.328	 	 	 	1.957	 	 	 	0.839	 	 	 	0.296	 
	
                                                                8/31/2012

                                                              	 	 	65.793	 	 	 	51.687	 	 	 	20.025	 	 	 	6.866	 	 	 	0.356	 	 	 	0.000	 	 	 	0.000	 	 	 	0.000	 
	
                                                                8/31/2013

                                                              	 	 	65.793	 	 	 	49.778	 	 	 	17.630	 	 	 	5.804	 	 	 	0.274	 	 	 	0.000	 	 	 	0.000	 	 	 	0.000	 
	
                                                                8/31/2014

                                                              	 	 	65.793	 	 	 	47.619	 	 	 	12.315	 	 	 	3.332	 	 	 	0.147	 	 	 	0.000	 	 	 	0.000	 	 	 	0.000	 
	
                                                                8/31/2015

                                                              	 	 	65.793	 	 	 	47.619	 	 	 	0.000	 	 	 	0.000	 	 	 	0.000	 	 	 	0.000	 	 	 	0.000	 	 	 	0.000	 

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

         

      

      
        
           

        

        
          Schedule I-1

          
            

          

        

        
           

        

      

      Schedule
II

       

      Net Book Values of Real
Properties

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            	
                                                                                                    File No.

                                                                                                  	 	
                                                                                                    Owner or

                                                                                                    Tenant

                                                                                                  	 	
                                                                                                    Property Name and Address(es)

                                                                                                  	 	
                                                                                                    Ownership

                                                                                                  	 	
                                                                                                    State

                                                                                                  	 	
                                                                                                    NBV

                                                                                                  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                                    PROP
      CA02

                                                                                                  	 	
                                                                                                    Central
      Concrete Supply Co., Inc.

                                                                                                  	 	
                                                                                                    S.
      San Francisco office

                                                                                                     

                                                                                                    150
      South Linden Avenue South

                                                                                                    San
      Francisco, California  94080

                                                                                                     

                                                                                                    Westside
      BM Shop and Office:

                                                                                                     

                                                                                                    201-205  South
      Linden Ave. S San Francisco CA

                                                                                                  	 	
                                                                                                    Owned/Leased

                                                                                                  	 	
                                                                                                    CA

                                                                                                  	 	$	3,841,677	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                                    PROP
      CA01

                                                                                                  	 	
                                                                                                    Central
      Concrete Supply Co, Inc.

                                                                                                  	 	
                                                                                                    Hayward
      RM Plant

                                                                                                     

                                                                                                    1844
      West Winton Avenue

                                                                                                    Hayward,
      California  94545

                                                                                                  	 	
                                                                                                    Owned

                                                                                                  	 	
                                                                                                    CA

                                                                                                  	 	$	3,412,805	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                                    PROP
      CA20

                                                                                                  	 	
                                                                                                    Central
      Concrete Supply Co., Inc.

                                                                                                  	 	
                                                                                                    457
      Queens Lane,

                                                                                                    San
      Jose, California

                                                                                                  	 	
                                                                                                    Owned

                                                                                                  	 	
                                                                                                    CA

                                                                                                  	 	
                                                                                                    Included
      in Hayward figure (PROP CA01)

                                                                                                  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                                    PROP  TX07

                                                                                                  	 	
                                                                                                    Beall
      Concrete Enterprises, LLC

                                                                                                  	 	
                                                                                                    Alliance
      Plant

                                                                                                    9.431
      Acres

                                                                                                    Denton,
      County

                                                                                                    13624
      FM 1171

                                                                                                    Roanoke,
      TX

                                                                                                  	 	
                                                                                                    Owned/Leased

                                                                                                  	 	
                                                                                                    TX

                                                                                                  	 	$	2,898,815	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                                    PROP
      TX16

                                                                                                  	 	
                                                                                                    Beall
      Concrete Enterprises, LLC

                                                                                                  	 	
                                                                                                    Part
      of Alliance Plant property 10.438 acres Denton County, Roanoke,
      Texas

                                                                                                  	 	
                                                                                                    Owned/Leased

                                                                                                  	 	
                                                                                                    TX

                                                                                                  	 	
                                                                                                    Included
      in PROP TX07 figure

                                                                                                  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                                    PROP
      CA15

                                                                                                  	 	
                                                                                                    Central
      Concrete Supply Co., Inc.

                                                                                                  	 	
                                                                                                    S.
      San Francisco Plant

                                                                                                     

                                                                                                    1305
      San Mateo Ave. South

                                                                                                    San
      Francisco, California  94080

                                                                                                  	 	
                                                                                                    Owned

                                                                                                  	 	
                                                                                                    CA

                                                                                                  	 	$	2,409,907	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                                    PROP
      CA54

                                                                                                  	 	
                                                                                                    Central
      Precast Concrete, Inc.

                                                                                                  	 	
                                                                                                    15540
      S. McKinley Avenue, Lathrop, CA 95330

                                                                                                  	 	
                                                                                                    Owned

                                                                                                  	 	
                                                                                                    CA

                                                                                                  	 	$	1,997,533	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                                    PROP
      NJ07

                                                                                                  	 	
                                                                                                    Eastern
      Concrete Materials, Inc.

                                                                                                  	 	
                                                                                                    Hamburg
      Quarry

                                                                                                     

                                                                                                     3620
      Route 23

                                                                                                    Hardyston
      Township

                                                                                                    Hamburg,
      New Jersey  (Includes 118 Scenic Lake Drive, Hardyston,
      NJ)

                                                                                                  	 	
                                                                                                    Owned

                                                                                                  	 	
                                                                                                    NJ

                                                                                                  	 	$	1,863,201	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                                    PROP
      TX66

                                                                                                  	 	
                                                                                                    Beall
      Concrete Enterprises, LLC

                                                                                                  	 	
                                                                                                    Chatfield
      Quarry  TX

                                                                                                    Navarro
      County

                                                                                                  	 	
                                                                                                    Owned

                                                                                                  	 	
                                                                                                    TX

                                                                                                  	 	$	1,636,062	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                                    PROP
      TX 73

                                                                                                  	 	
                                                                                                    Redi-Mix,
      LLC

                                                                                                  	 	
                                                                                                    Plant
      #259

                                                                                                     

                                                                                                    Lewisville

                                                                                                    725
      E. College St., Lewisville, TX 75057

                                                                                                  	 	
                                                                                                    Owned

                                                                                                  	 	
                                                                                                    TX

                                                                                                  	 	$	1,441,635	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                                    PROP
      NJ26

                                                                                                  	 	
                                                                                                    Eastern
      Concrete Materials, Inc.

                                                                                                  	 	
                                                                                                    Cedar
      Bridge Quarry

                                                                                                     

                                                                                                    201
      Route 539 South, Barnegat NJ 08005

                                                                                                  	 	
                                                                                                    Owned

                                                                                                  	 	
                                                                                                    NJ

                                                                                                  	 	$	1,318,632	 

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

           

          
            
              
              

            

            
              Schedule
II-1

              
                

              

            

            
              
              

            

          

           

          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      	
                                                                                              File No.

                                                                                            	 	
                                                                                              Owner or

                                                                                              Tenant

                                                                                            	 	
                                                                                              Property Name and Address(es)

                                                                                            	 	
                                                                                              Ownership

                                                                                            	 	
                                                                                              State

                                                                                            	 	
                                                                                              NBV

                                                                                            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                              PROP
      TX65

                                                                                            	 	
                                                                                              Beall
      Concrete Enterprises, LLC

                                                                                            	 	
                                                                                              Prosper

                                                                                               

                                                                                              706
      S. Dallas Parkway, Collin County

                                                                                            	 	
                                                                                              Owned

                                                                                            	 	
                                                                                              TX

                                                                                            	 	$	1,272,970	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                              PROP
      TX42

                                                                                            	 	
                                                                                              Redi-Mix,
      LLC

                                                                                            	 	
                                                                                              Plant
      #260

                                                                                               

                                                                                              Frisco.
      Batch Plant

                                                                                              14703
      Lebanon Road, Frisco, TX 75035

                                                                                            	 	
                                                                                               Owned

                                                                                            	 	
                                                                                              TX

                                                                                            	 	$	1,172,726	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                              PROP
      PA01

                                                                                            	 	
                                                                                              Eastern
      Concrete Materials, Inc.

                                                                                            	 	
                                                                                              3369
      Paxtonville Road, Middleburg, PA

                                                                                            	 	
                                                                                              Owned

                                                                                            	 	
                                                                                              PA

                                                                                            	 	$	1,155,836	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                              PROP
      TX41

                                                                                            	 	
                                                                                              Ingram
      Concrete, LLC

                                                                                            	 	
                                                                                              HWY
      126 & FM 1085 Noodle, TX

                                                                                            	 	
                                                                                              Owned

                                                                                            	 	
                                                                                              TX

                                                                                            	 	$	1,096,477	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                              PROP
      TX43

                                                                                            	 	
                                                                                              Alberta
      Investments, Inc.

                                                                                               

                                                                                            	 	
                                                                                              Brownwood
      Office, P.O. Box 1166 - 76084,

                                                                                               

                                                                                              4301
      Danhill Drive, Brownwood, TX

                                                                                            	 	
                                                                                              Owned

                                                                                            	 	
                                                                                              TX

                                                                                            	 	$	1,026,411	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                              PROP
      TX11

                                                                                            	 	
                                                                                              Ingram
      Concrete, LLC

                                                                                            	 	
                                                                                              6222
      East  I-20 West

                                                                                              Willow
      Park, Texas 76088

                                                                                            	 	
                                                                                              Owned

                                                                                            	 	
                                                                                              TX

                                                                                            	 	$	1,021,768	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                              PROP
      CA16

                                                                                            	 	
                                                                                              Central
      Concrete Supply Co., Inc.

                                                                                            	 	
                                                                                              Brentwood
      Plant

                                                                                               

                                                                                              11911
      Brentwood Blvd.

                                                                                              Byron,
      California  94514

                                                                                            	 	
                                                                                              Owned

                                                                                            	 	
                                                                                              CA

                                                                                            	 	$	1,003,741	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                              PROP
      TX32

                                                                                            	 	
                                                                                              Ingram
      Concrete, LLC

                                                                                            	 	
                                                                                              Midland
      Plant,

                                                                                               

                                                                                              2608
      N. FM 1788, P.O. Box 60425,

                                                                                              Midland
      TX 79707

                                                                                            	 	
                                                                                              Owned

                                                                                            	 	
                                                                                              TX

                                                                                            	 	$	916,295	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                              PROP
      TX62

                                                                                            	 	
                                                                                              Ingram
      Concrete, LLC

                                                                                            	 	
                                                                                              Ingram
      Sand & Gravel Quarry

                                                                                               

                                                                                              4989
      N. FM 199, Somervell County, TX

                                                                                            	 	
                                                                                              Owned

                                                                                            	 	
                                                                                              TX

                                                                                            	 	$	810,289	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	
                                                                                              Ingram
      Concrete, LLC

                                                                                            	 	
                                                                                              5235
      Christoval Road

                                                                                              San
      Angelo

                                                                                            	 	
                                                                                              Owned

                                                                                            	 	
                                                                                              TX

                                                                                            	 	$	747,150	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                              PROP
      NJ04

                                                                                            	 	
                                                                                              Eastern
      Concrete Materials, Inc.

                                                                                            	 	
                                                                                              86
      Yellowbrook Rd.

                                                                                              Howell,
      New Jersey

                                                                                            	 	
                                                                                              Owned

                                                                                            	 	
                                                                                              NJ

                                                                                            	 	$	731,836	 

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

        

          
            
               

            

            
              Schedule II-2

              
                

              

            

            
               

            

          

        

      

    

     

    EXHIBIT
D

     

    Form of Registration Rights
Agreement

     

    
       

      REGISTRATION
RIGHTS AGREEMENT

       

      by and
among

       

      U.S.
CONCRETE, INC.

       

      the
GUARANTORS named herein

       

      and the
HOLDERS party hereto

      
         

        
          
            

          

        

        Dated:  August __,
2010

        
          
            

          

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      TABLE OF
CONTENTS

       

      
        
          
            
              
                
                  
                    	 
      	 
      	 	
                            Page

                          
	 
      	 
      	 	 
      
	
                            1.(a)

                          	
                            Definitions

                          	 	
                            1

                          
	 
      	
                            (b)

                          	
                            Interpretation

                          	 	
                            6

                          
	 
      	 
      	 
      	 	 
      
	
                            2.

                          	
                            General;
      Securities Subject to this Agreement

                          	 	
                            7

                          
	 
      	
                            (a)

                          	
                            Grant
      of Rights

                          	 	
                            7

                          
	 
      	
                            (b)

                          	
                            Transfer
      of Registration Rights

                          	 	
                            7

                          
	 
      	 
      	 
      	 	 
      
	
                            3.

                          	
                            Shelf
      Registrations

                          	 	
                            7

                          
	 
      	
                            (a)

                          	
                            Filings

                          	 	
                            7

                          
	 
      	
                            (b)

                          	
                            Additional
      Electing Holders

                          	 	
                            8

                          
	 
      	
                            (c)

                          	
                            Suspension
      Periods

                          	 	
                            8

                          
	 
      	
                            (d)

                          	
                            Other
      Registration Rights

                          	 	
                            9

                          
	 
      	
                            (e)

                          	
                            Additional
      Interest and Liquidated Damages

                          	 	
                            9

                          
	 
      	 
      	 
      	 	 
      
	
                            4.

                          	
                            Piggyback
      Takedowns

                          	 	
                            10

                          
	 
      	
                            (a)

                          	
                            Right
      to Piggyback

                          	 	
                            10

                          
	 
      	
                            (b)

                          	
                            Priority
      on Primary Piggyback Takedowns

                          	 	
                            10

                          
	 
      	
                            (c)

                          	
                            Selection
      of Underwriters

                          	 	
                            10

                          
	 
      	 
      	 
      	 	 
      
	
                            5.

                          	
                            Holdback
      Agreements

                          	 	
                            10

                          
	 
      	
                            (a)

                          	
                            Restrictions
      on Public Sale by Holders

                          	 	
                            10

                          
	 
      	 
      	 
      	 	 
      
	
                            6.

                          	
                            Registration
      Procedures

                          	 	
                            11

                          
	 
      	
                            (a)

                          	
                            Obligations
      of the Company

                          	 	
                            11

                          
	 
      	
                            (b)

                          	
                            Additional
      Obligations of the Company

                          	 	
                            12

                          
	 
      	
                            (c)

                          	
                            Seller
      Requirements

                          	 	
                            15

                          
	 
      	 
      	 
      	 	 
      
	
                            7.

                          	
                            Registration
      Expenses

                          	 	
                            16

                          
	 
      	 
      	 	 
      
	
                            8.

                          	
                            Indemnification;
      Contribution

                          	 	
                            16

                          
	 
      	
                            (a)

                          	
                            Indemnification
      by the Company

                          	 	
                            16

                          
	 
      	
                            (b)

                          	
                            Indemnification
      by Holders

                          	 	
                            17

                          
	 
      	
                            (c)

                          	
                            Conduct
      of Indemnification Proceedings

                          	 	
                            17

                          
	 
      	
                            (d)

                          	
                            Contribution

                          	 	
                            18

                          
	 
      	 
      	 
      	 	 
      
	
                            9.

                          	
                            Participation
      in Underwritten Offering/Sale of Registrable Securities

                          	 	
                            19

                          
	 
      	 
      	 	 
      
	
                            10.

                          	
                            Rule
      144 and Rule 144A; Other Exemptions

                          	 	
                            19

                          
	 	 	 	 
	
                            11.

                          	
                            Miscellaneous

                          	 	
                            20

                          
	 
      	
                            (a)

                          	
                            Stock
      Splits, etc.

                          	 	
                            20

                          
	 
      	
                            (b)

                          	
                            No
      Inconsistent Agreements

                          	 	
                            20

                          
	 
      	
                            (c)

                          	
                            Remedies

                          	 	
                            20

                          
	 
      	
                            (d)

                          	
                            Amendments
      and Waivers

                          	 	
                            20

                          

                  

                

              

            

          

        

      
 

      
        
           

        

        
          i

          
            

          

        

        
           

        

      

      

      
        
          
            
              
                	 
      	 
      	 	
                        Page

                      
	 
      	 
      	 
      	 	 
      
	 
      	
                        (e)

                      	
                        Notices

                      	 	
                        20

                      
	 
      	
                        (f)

                      	
                        Successors
      and Assigns

                      	 	
                        21

                      
	 
      	
                        (g)

                      	
                        Headings

                      	 	
                        21

                      
	 
      	
                        (h)

                      	
                        GOVERNING
      LAW

                      	 	
                        21

                      
	 
      	
                        (i)

                      	
                        Jurisdiction

                      	 	
                        21

                      
	 
      	
                        (j)

                      	
                        WAIVER
      OF JURY TRIAL

                      	 	
                        22

                      
	 
      	
                        (k)

                      	
                        Severability

                      	 	
                        22

                      
	 
      	
                        (l)

                      	
                        Rules
      of Construction

                      	 	
                        22

                      
	 
      	
                        (m)

                      	
                        Entire
      Agreement

                      	 	
                        22

                      
	 
      	
                        (n)

                      	
                        Further
      Assurances

                      	 	
                        23

                      
	 
      	
                        (o)

                      	
                        FWP
      Consent

                      	 	
                        23

                      
	 
      	
                        (p)

                      	
                        Other
      Agreements

                      	 	
                        23

                      
	 
      	 
      	 
      	 	 
      
	
                        Annex
      A

                      	
                        Notice
      and Questionnaire

                      	 	
                        A-1

                      

              

            

          

        

      

       

      
        
           

        

        
          ii

          
            

          

        

        
           

        

      

      REGISTRATION
RIGHTS AGREEMENT

       

      THIS
REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made
as of August __, 2010, by and among U.S. Concrete, Inc., a Delaware
corporation (the “Company”), each of
the direct and indirect domestic subsidiaries of the Company identified on the
signature page hereto (collectively, the “Guarantors”) and any
parties purchasing Notes (as defined below) pursuant to the Note Purchase
Agreement (as defined below) (each a “Holder” and
collectively, the “Holders”).

       

      WHEREAS,
in connection with the Plan of Reorganization of the Company under Chapter 11 of
the United States Bankruptcy Code, the Company has issued $55,000,000 aggregate
principal amount of its 9.5% Convertible Secured Notes due 2015 (the “Notes”) (i) to
certain parties subscribing to purchase Notes pursuant to the Note Purchase
Agreement dated as of the date hereof (the “Note Purchase
Agreement”) and (ii) to certain parties pursuant to that certain
Support Agreement, dated as of August 13, 2010, by and among the Company
and the put option parties named therein.  The Notes are issued
pursuant to the Indenture and are convertible into shares of Common Stock of the
Company in accordance with the terms set forth in the Indenture;
and

       

      WHEREAS,
the parties hereto desire to provide for, among other things, the grant of
registration rights with respect to the Registrable Securities (as hereinafter
defined).

       

      NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth
herein and for good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereto agree as follows:

       

      1.           (a)           Definitions.  As
used in this Agreement, and unless the context requires a different meaning, the
following terms have the meanings indicated:

       

      “Additional Interest”
has the meaning set forth in Section 3(e) hereof.

       

      “Affiliate” means,
with respect to a Person, any other Person which directly or indirectly controls
or is controlled by, or is under direct or indirect common control with, the
referent Person.

       

      “Automatic Shelf Registration
Statement” means an “automatic shelf registration statement” as defined
in Rule 405 promulgated under the Securities Act.

       

      “Beneficial Owner” has
the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under
the Exchange Act, except that in calculating the beneficial ownership of any
particular “person” (as that term is used in Section 13(d)(3) of the
Exchange Act), such “person” will be deemed to have beneficial ownership of all
securities that such “person” has the right to acquire by conversion or exercise
of other securities, whether such right is currently exercisable or is
exercisable only after the passage of time.  The terms “beneficially owns”
and beneficially
owned” have a corresponding meaning.

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      “Board of Directors”
means the board of directors of the Company (or any duly authorized committee
thereof).

       

      “Business Day” means
any day other than a Saturday, Sunday or other day on which commercial banks in
the State of New York are authorized or required by law or executive order
to close.

       

      “Commission” means the
United States Securities and Exchange Commission or any successor governmental
agency.

       

      “Common Stock” means
(i) the common stock, par value $0.001 per share, of the Company,
(ii) any securities of the Company or any successor or assign of the
Company into which such stock is reclassified or reconstituted or into which
such stock is converted or otherwise exchanged in connection with a combination
of shares, recapitalization, merger, sale of assets, consolidation or other
reorganization or otherwise or (iii) any securities received as a dividend
or distribution in respect of the securities described in clauses (i) and (ii)
above.

       

      “Common Stock Form S-1
Shelf” has the meaning set forth in Section 3(a)
hereof.

       

      “Common Stock Registration
Deadline” has the meaning set forth in Section 3(a)
hereof.

       

      “Company” has the
meaning set forth in the preamble to this Agreement.

       

      “control” (including,
with correlative meanings, the terms “controlling,” “controlled by” and “under
common control with”) means, unless otherwise noted, the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ownership of voting securities, by
contract or otherwise.

       

      “Conversion Price” has
the meaning set forth in the Indenture.

       

      “Counsel to the
Holders” means, with respect to any Piggyback Takedown, one (1) counsel
selected by the Holders of a Majority of the Registrable Securities requested to
be included in such Piggyback Takedown.

       

      “Disclosure Package”
means, with respect to any offering of Registrable Securities, (i) the
preliminary Prospectus, (ii) each Free Writing Prospectus and
(iii) all other information, in each case, that is deemed, under
Rule 159 promulgated under the Securities Act, to have been conveyed to
purchasers of securities at the time of sale of such securities (including,
without limitation, a contract of sale).

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      “Electing Holder”
means a Holder of Registrable Securities who provided the Company with a Notice
and Questionnaire.

       

      “Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations
of the Commission thereunder.

       

      “FINRA” means the
Financial Industry Regulatory Authority.

       

      “Form S-1 Shelf Registration
Statements” has the meaning set forth in Section 3(a)
hereof.

       

      “Form S-3 Shelf Registration
Statement” has the meaning set forth in Section 3(a)
hereof.

       

      “Free Writing
Prospectus” means any “free writing prospectus” as defined in
Rule 405 promulgated under the Securities Act.

       

      “Hedging Counterparty”
means a broker-dealer registered under Section 15(b) of the Exchange Act or
an Affiliate thereof.

       

      “Hedging Transaction”
means any transaction involving a security linked to the Registrable Securities
or any security that would be deemed to be a “derivative security” (as defined
in Rule 16a-1(c) promulgated under the Exchange Act) with respect to the
Registrable Securities or transaction (even if not a security) which would (were
it a security) be considered such a derivative security, or which transfers some
or all of the economic risk of ownership of the Registrable Securities,
including, without limitation, any forward contract, equity swap, put or call,
put or call equivalent position, collar, non-recourse loan, sale of an
exchangeable security or similar transaction.  For the avoidance of
doubt, the following transactions shall be deemed to be Hedging
Transactions:

       

      (i)           transactions
by a Holder in which a Hedging Counterparty engages in short sales of
Registrable Securities pursuant to a Prospectus and may use Registrable
Securities to close out its short position;

       

      (ii)         transactions
pursuant to which a Holder sells short Registrable Securities pursuant to a
Prospectus and delivers Registrable Securities to close out its short
position;

       

      (iii)        transactions
by a Holder in which the Holder delivers, in a transaction exempt from
registration under the Securities Act, Registrable Securities to the Hedging
Counterparty who will then publicly resell or otherwise transfer such
Registrable Securities pursuant to a Prospectus or an exemption from
registration under the Securities Act; and

       

      (iv)        a
loan or pledge of Registrable Securities to a Hedging Counterparty who may then
become a selling stockholder and sell the loaned securities or, in an event of
default in the case of a pledge, sell the pledged securities, in each case, in a
public transaction pursuant to a Prospectus.

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      “Holder” and “Holders” shall mean
each Person for so long as it holds any Registrable Securities and each of its
successors and assigns and direct and indirect transferees who Beneficially Own
Registrable Securities.

       

      “Holder Free Writing
Prospectus” means each Free Writing Prospectus prepared by or on behalf
of the relevant Holder or used or referred to by such Holder in connection with
the offering of Registrable Securities.

       

      “Indemnified Party”
has the meaning set forth in Section 8(c) hereof.

       

      “Indemnifying Party”
has the meaning set forth in Section 8(c) hereof.

       

      “Indenture” means the
indenture, dated as of the date hereof, as amended or supplemented from time to
time, among the Company, the Guarantors and the Trustee.

       

      “Issue Date” means the
date of the original issuance of the Notes.

       

      “Liability” has the
meaning set forth in Section 8(a) hereof.

       

      “Lock-Up Period” has
the meaning set forth in Section 5(a)(i) hereof.

       

      “Notes” has the
meaning set forth in the preamble to this Agreement.

       

      “Note Registration
Deadline” has the meaning set forth in Section 3(a) hereof..

       

      “Notes Shelf Registration
Statement” has the meaning set forth in Section 3(a)
hereof.

       

      “Notice and
Questionnaire” means a written notice delivered to the Company in the
form attached as Annex A hereto.

       

      “Person” means any
individual, firm, corporation, partnership, limited liability company, trust,
incorporated or unincorporated association, joint venture, joint stock company,
limited liability company, government (or an agency or political subdivision
thereof) or other entity of any kind, and shall include any successor (by merger
or otherwise) of such entity.

       

      “Piggyback Takedown”
has the meaning set forth in Section 4(a) hereof.

       

      “Prospectus” means the
prospectus related to any Registration Statement (whether preliminary or final
or any prospectus supplement, including, without limitation, a prospectus or
prospectus supplement that discloses information previously omitted from a
prospectus filed as part of an effective registration statement in reliance on
Rule 415, 430A, 430B or 430C under the Securities Act, as amended or
supplemented by any amendment or prospectus supplement), including
post-effective amendments, and all materials incorporated by reference in such
prospectus.

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      “Registrable
Securities” means any and all (i) Notes, (ii) shares of Common
Stock issuable or issued upon conversion of the Notes and (iii) shares of Common
Stock issued by the Company in order to pay interest and/or premiums and/or
other amounts to the Holders in accordance with the provisions of the
Indenture.  Registrable Securities held by any Holder will cease to be
Registrable Securities, when (A) a Registration Statement covering such
Registrable Securities has been declared effective under the Securities Act by
the Commission and such Registrable Securities have been disposed of pursuant to
such effective Registration Statement, (B) such securities (other than
Registrable Securities that are Notes) have been disposed of pursuant to
Rule 144 promulgated under the Securities Act, (C) the entire amount
of the Registrable Securities held by any Holder may be sold by such Holder, in
the opinion of counsel reasonably satisfactory to the Company, without any
limitation as to volume, manner of sale or information requirements pursuant to
Rule 144 promulgated under the Securities Act or (D) they have ceased
to be outstanding.

       

      “Registration Default”
has the meaning set forth in Section 3(e) hereof.

       

      “Registration
Expenses” means all expenses (other than underwriting discounts and
commissions) arising from or incident to the registration of the sale of
Registrable Securities in compliance with this Agreement, including, without
limitation, (i) Commission, stock exchange, FINRA (including, without
limitation, fees, charges and disbursements of counsel in connection with FINRA
registration) and other registration and filing fees, (ii) all fees and
expenses incurred in connection with complying with any securities or blue sky
laws (including, without limitation, fees, charges and disbursements of counsel
in connection with blue sky qualifications of the Registrable Securities),
(iii) all printing, messenger and delivery expenses, (iv) the fees,
charges and disbursements of counsel to the Company and of its independent
public accountants and any other accounting and legal fees, charges and expenses
incurred by the Company (including, without limitation, any expenses arising
from any special audits or “comfort letters” required in connection with or
incident to any registration), (v) with respect to the shares of Common
Stock that are Registrable Securities, the fees and expenses incurred in
connection with the listing of the Registrable Securities on any national
securities exchange if the Common Stock of the Company is then so listed, and
(vi) reasonable fees, charges and disbursements of Counsel to the Holders
in connection with any Piggyback Takedown.

       

      “Registration
Statement” means any registration statement filed pursuant to the
Securities Act.

       

      “Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations of the
Commission promulgated thereunder.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      “Selling Expenses”
means all expenses (including any underwriting fees, discounts, selling
commissions and stock transfer taxes) applicable to all Registrable Securities
registered by the Holders other than Registration Expenses.

       

      “Shelf” has the
meaning set forth in Section 3(a) hereof.

       

      “Shelf Registration”
means a registration of securities pursuant to a Registration Statement filed
with the Commission in accordance with and pursuant to Rule 415 promulgated
under the Securities Act (or any successor rule in effect).

       

      “Shelf Registration
Statements” has the meaning set forth in Section 3(a)
hereof.

       

      “Suspension Period”
has the meaning set forth in Section 3(c) hereof.

       

      “TIA” means Trust
Indenture Act of 1939, as amended.

       

      “Trustee” means U.S.
Bank National Association, until a successor replaces it in accordance with the
applicable provisions of the Indenture and thereafter means the successor
serving under the Indenture.

       

      “underwritten
offering” of securities means a public offering of securities registered
under the Securities Act in which an underwriter, placement agent or other
intermediary participates in the distribution of such securities.

       

      (b)        Interpretation.  Unless
otherwise noted:

       

      (i)           All
references to laws, rules, regulations and forms in this Agreement shall be
deemed to be references to such laws, rules, regulations and forms, as amended
from time to time or, to the extent replaced, the comparable successor laws,
rules, regulations and forms thereto in effect at the time.

       

      (ii)          All
references to agencies, self-regulatory organizations or governmental entities
in this Agreement shall be deemed to be references to the comparable successor
thereto.

       

      (iii)         All
references to agreements and other contractual instruments shall be deemed to be
references to such agreements or other instruments as they may be amended,
waived, supplemented or modified from time to time.

       

      (iv)         All
references to any amount of securities (including Registrable Securities) shall
be deemed to be a reference to such amount measured on an as-converted or
as-exercised basis.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      2.           General; Securities Subject
to this Agreement.

       

      (a)         Grant of
Rights.  The
Company hereby grants registration rights with respect to the Registrable
Securities to the Holders upon the terms and conditions set forth in this
Agreement.

       

      (b)         Transfer of Registration
Rights.  Any
Registrable Securities that are pledged or made the subject of a Hedging
Transaction, which Registrable Securities are not ultimately disposed of by the
Holder pursuant to such pledge or Hedging Transaction shall be deemed to remain
“Registrable Securities,” notwithstanding the release of such pledge or the
completion of such Hedging Transaction.

       

      3.           Shelf
Registrations.

       

      (a)         Filings.  The
Company shall use its commercially reasonable efforts to file on or prior to
[       ], 20111 (the
“Note Registration
Deadline”) a Registration Statement for a Shelf Registration on Form S-1
covering the resale by the Electing Holders of all the Notes that constitute
Registrable Securities as of such date, on a delayed or continuous basis (the
“Notes Form S-1
Shelf”).  The Company shall use commercially reasonable efforts
to cause the registration statement to become effective as soon as practicable
following such filing.  The Company shall use its commercially
reasonable efforts to file on or prior to
[       ], 20112 (the
“Common Stock
Registration Deadline”) a Registration Statement for a Shelf Registration
on Form S-1 covering the resale of all the shares of Common Stock that
constitute Registrable Securities by the Electing Holders, on a delayed or
continuous basis (the “Common Stock Form S-1
Shelf” and, together with the Notes Form S-1 Shelf, the “Form S-1 Shelf Registration
Statements”).  The Company shall give written notice of the
filing of each of the Form S-1 Shelf Registration Statements at least fifteen
(15) days prior to filing each such Registration Statement to all Holders of
Registrable Securities and shall include in such Registration Statements all
Registrable Securities of Electing Holders.  Notwithstanding the
foregoing, each Shelf Registration Statement shall be on Form S-3 (or similar
short form) if the Company shall then be eligible to use such form; provided
that the Company shall use its commercially reasonable efforts to convert each
of the Form S-1 Shelf Registration Statements on Form S-1 (or similar long
form) to a Registration Statement for a Shelf Registration on Form S-3 (the
“Form S-3 Shelf
Registration Statement,” and together with the Form S-1 Shelf
Registration Statements, the “Shelf Registration
Statements”) on Form S-3 as soon as practicable after the Company becomes
eligible to use Form S-3.  The Company shall maintain each Shelf
Registration Statement in accordance with the terms hereof.  For the
avoidance of doubt, if all of the Notes have ceased to constitute Registrable
Securities by the Note Registration Deadline, no Notes Form S-1 Shelf shall be
required to be filed.

       

      
        
          

        

      

      
        1 NTD:
Date that is the first Business Day following 366th day following the Issue
Date.

      

      2 NTD:
Date that is 180 days following the Issue Date.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      (b)         Additional Electing
Holders.  From
and after the date a Shelf Registration Statement is initially effective, as
promptly as is practicable after receipt of a proper Notice and Questionnaire,
and in any event within (x) ten (10) Business Days after the date such Notice
and Questionnaire is received by the Company or (y) if a Notice and
Questionnaire is so received during a Suspension Period, five (5) Business Days
after the expiration of such Suspension Period, the Company shall, if required
by applicable law, file with the Commission a post-effective amendment to the
Shelf Registration Statement or prepare and, if required by applicable law, file
a supplement or supplements to the related Prospectus or a supplement or
amendment to any document incorporated therein by reference or file any other
required document so that the Electing Holder is named as a selling
securityholder in the Shelf Registration Statement and the related Prospectus in
such a manner as to permit such Holder to deliver such Prospectus to purchasers
of the Registrable Securities in accordance with applicable law and, if the
Company shall file a post-effective amendment to the Shelf Registration
Statement and such amendment is not automatically effective, use reasonable
efforts to cause such post-effective amendment to be declared or to otherwise
become effective under the Securities Act as promptly as is practicable;
provided that in no event shall the Company be required to make more than one
such filing during any twenty (20) Business Day period and, in addition, if the
Shelf Registration Statement is not an automatic shelf registration statement,
the Company shall not be required to make more than one such filing in any
calendar quarter; provided, further, that if such Notice and Questionnaire is
delivered during a Suspension Period, the Company shall so inform the Holder
delivering such Notice and Questionnaire and shall take the actions set forth
above upon expiration of the Suspension Period in accordance with
Section 3(c).  Notwithstanding anything contained herein to the
contrary, the Company shall be under no obligation to name any Holder that is
not an Electing Holder as a selling securityholder in any Shelf Registration
Statement or related Prospectus; provided, however, that any Holder that becomes
an Electing Holder pursuant to the provisions of this Section 3(b) (whether
or not such Holder was an Electing Holder at the time the Shelf Registration
Statement was declared or otherwise became effective) shall be named as a
selling securityholder in the Shelf Registration Statement or related Prospectus
in accordance with the requirements of this Section (b).

       

      (c)        
Suspension
Periods.  Upon
written notice to the Holders of Registrable Securities, (x) the Company
shall be entitled to suspend, for a period of time, the use of any Registration
Statement or Prospectus if the Board of Directors determines in its good faith
judgment, after consultation with counsel, that the Registration Statement or
any Prospectus may contain an untrue statement of a material fact or omits any
fact necessary to make the statements in the Registration Statement or
Prospectus not misleading and (y) the Company shall not be required to
amend or supplement the Registration Statement, any related Prospectus or any
document incorporated therein by reference if the Board of Directors determines
in its good faith judgment, after consultation with counsel, that such amendment
would reasonably be expected to have a material adverse effect on any proposal
or plan of the Company to effect a merger, acquisition, disposition, financing,
reorganization, recapitalization or similar transaction, in each case that is
material to the Company (in case of each clause (x) and (y), a “Suspension Period”);
provided that (A) there are no more than two (2) Suspension Periods in
any 12-month period, (B) the duration of all Suspension Periods may not
exceed ninety (90) days in the aggregate in any 12-month period, and
(C) the Company shall use its good faith efforts to amend the Registration
Statement and/or Prospectus to correct such untrue statement or omission as soon
as reasonably practicable.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      (d)        Other Registration
Rights.  The
Company represents and warrants that as of the date of this Agreement it is not
a party to, or otherwise subject to, any other agreement granting registration
rights to any other Person with respect to any securities of the
Company.

       

      (e)         Additional Interest and
Liquidated Damages.  Subject
to the Company’s ability to declare Suspension Periods with respect to clause
(ii) below, if (i) the Common Stock Form S-1 Shelf is not filed by the
Common Stock Registration Deadline or the Notes Form S-1 Shelf is not filed by
the Note Registration Deadline, or (ii) any Registration Statement required
by this Agreement is filed and declared effective but shall thereafter cease to
be effective or fail to be usable for its intended purpose for more than 45 days
(each such event referred to in clauses (i) and (ii), a “Registration
Default”), the Company and the Guarantors hereby agree:

       

      (A)        The
Company shall pay additional interest (“Additional Interest”)
to each Holder of Notes that are Registrable Securities over and above the
interest set forth in the title of the Notes for the period of occurrence of
such Registration Default(s) until such time as no Registration Default is in
effect in an amount in cash equal to 0.25% per annum on the aggregate principal
amount of the Notes that are Registrable Securities, which rate shall increase
by 0.25% per annum for each subsequent 90-day period during which such
Registration Default continues, but in no event shall such increase exceed 1.00%
per annum; provided, that such Additional Interest shall only be payable with
respect to such Registrable Securities that are Notes which are Restricted
Securities (as defined in the Indenture).  Following the cure of all
Registration Defaults relating to any particular Notes that are Registrable
Securities, the Additional Interest will cease to accrue from the date of such
cure and the interest rate on the Notes that are Registrable Securities will
revert to the original interest rate born by such Notes; provided, however, that, if
after the date such Additional Interest ceases to accrue, a new Registration
Default shall occur, Additional Interest may again commence accruing pursuant to
the foregoing provisions.

       

      (B)         Any
amounts of Additional Interest will be payable semi-annually in arrears on the
interest payment dates of the Notes set forth in the Indenture to Holders of
record of the applicable Notes on the applicable dates of record set forth in
the Indenture.

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      4.           Piggyback
Takedowns.

       

      (a)         Right to
Piggyback.  If
the Company proposes to file a Registration Statement with respect to an
underwritten offering of any of its securities for its own account (other than a
Registration Statement on Form S-4 or S-8) (a “Piggyback Takedown”)
the Company shall give prompt written notice to all Holders of Registrable
Securities of its intention to effect such Piggyback Takedown.  In the
case of a Piggyback Takedown that is an offering under a Shelf Registration,
such notice shall be given not less than five (5) Business Days prior to the
expected date of commencement of marketing efforts for such Piggyback
Takedown.  In the case of a Piggyback Takedown that is an offering
under a Registration Statement that is not a Shelf Registration Statement, such
notice shall be given not less than five (5) Business Days prior to the expected
date of filing of such Registration Statement.  The Company shall,
subject to the provisions of Section 4(b) below, include in such Piggyback
Takedown, as applicable, all Registrable Securities that constitute Common Stock
with respect to which the Company has received written requests for inclusion
therein within five (5) days after sending the Company’s
notice.  Notwithstanding anything to the contrary contained herein,
the Company may determine not to proceed with any Piggyback Takedown upon
written notice to the Holders of Registrable Securities requesting to include
their Registrable Securities in such Piggyback Takedown.

       

      (b)        Priority on Primary
Piggyback Takedowns.  If
a Piggyback Takedown is an underwritten primary registration on behalf of the
Company, and the managing underwriters for a Piggyback Takedown advise the
Company that in their reasonable opinion the number of securities requested to
be included in such Piggyback Takedown exceeds the number which can be sold in
an orderly manner in such offering within a price range acceptable to the
Company, the Company shall include in such Piggyback Takedown the number which
can be so sold in the following order of priority: (i) first, the
securities the Company proposes to sell, (ii) second, the Registrable
Securities requested to be included in such Piggyback Takedown (pro rata among
the Holders of such Registrable Securities on the basis of the number of
Registrable Securities requested to be included therein by each such Holder),
and (iii) third, other securities requested to be included in such
Piggyback Takedown.

       

      (c)           Selection of
Underwriters.  If
any Piggyback Takedown is an underwritten offering, the Company will have the
sole right to select the investment banker(s) and manager(s) for the
offering.

       

      5.           Holdback
Agreements.

       

      In
connection with any Piggyback Takedown, no Holder who “beneficially owns” (as
such term is defined under and determined pursuant to Rule 13d-3
promulgated under the Exchange Act) five percent (5%) or more of the outstanding
shares of Common Stock on as converted basis, shall effect any public sale or
distribution (including sales pursuant to Rule 144) of equity securities of
the Company, as applicable, or any securities convertible into or exchangeable
or exercisable for such securities, without prior written consent from the
Company, and subject to reasonable and customary exceptions to be agreed, during
the seven (7) days prior to and the 90-day period beginning on the date of
pricing of such Piggyback Takedown (the “Lock-Up Period”),
except as part of the Piggyback Takedown, and (i) unless the underwriters
managing the Piggyback Takedown otherwise agree and (ii) only if such
Lock-Up Period is applicable on substantially similar terms to the Company and
the executive officers and directors of the Company.  If (x) the
Company issues an earnings release or other material news or a material event
relating to the Company and its subsidiaries occurs during the last 17 days of
the Holdback Period or (y) prior to the expiration of the Holdback Period, the
Company announces that it will release earnings results during the 16-day period
beginning upon the expiration of the Holdback Period, then to the extent
necessary for a managing or co-managing underwriter of an underwritten offering
required hereunder to comply with FINRA Rule 2711(f)(4), the Holdback Period
shall be extended until 18 days after the earnings release or the occurrence of
the material news or event, as the case may be (such period the “Holdback
Extension”).  The Company may impose stop-transfer instructions
with respect to its securities that are subject to the forgoing restriction
until the end of such period, including any period of Holdback
Extension.  Each Holder requesting to sell Registrable Securities in
connection with such Piggyback Takedown agrees to execute a lock-up agreement in
favor of the Company’s underwriters to such effect, subject to reasonable and
customary exceptions, and other exceptions as may be agreed by the Holders and
the underwriters, and, in any event, that the Company’s underwriters in
any relevant Piggyback Takedown shall be third party beneficiaries of this
Section 5.  The provisions of this Section 5 will no longer apply to a
Holder once such Holder ceases to hold Registrable Securities.

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      6.           Registration
Procedures.

       

      (a)         Obligations of the
Company.  Whenever
registration of Registrable Securities has been requested pursuant to
Section 3 or Section 4 hereof, the Company
shall use its commercially reasonable efforts to effect the registration and
sale of such Registrable Securities in accordance with the intended method of
distribution thereof and the following provisions shall apply in connection
therewith:

       

      (i)           No
Holder shall be entitled to be named as a selling securityholder in Resale Shelf
Registration Statement as of the time of its initial effectiveness or at any
time thereafter, and no Holder shall be entitled to use the Prospectus for
resales of Registrable Securities at any time, unless such Holder has become and
“Electing Holder” by returning a duly completed and signed Notice and
Questionnaire to the Company by the deadline for response set forth therein and
has provided any other information reasonably requested in writing by the
Company.

       

      (ii)          Each
Electing Holder agrees to furnish promptly to the Company all information
required to be disclosed in order to make information previously furnished to
the Company by such holder not materially misleading and any other information
regarding such holder and the distribution of such holder’s Registrable
Securities as the Company may from time to time reasonably request in
writing.

       

      (iii)         Each
Electing Holder agrees to notify the Company as promptly as practicable of any
inaccuracy or change in information previously furnished by such Electing Holder
to the Company or of the occurrence of any event in either case as a result of
which any Prospectus relating to such registration contains or would contain an
untrue statement of a material fact regarding such Electing Holder or such
Electing Holder’s intended method of disposition of such Registrable Securities
or omits to state any material fact regarding such Electing Holder or such
Electing Holder’s intended method of disposition of such Registrable Securities
required to be stated therein or necessary to make the statements therein not
misleading, and promptly to furnish to the Company (i) any additional
information required to correct and update any previously furnished information
or required so that such Prospectus shall not contain, with respect to such
Electing Holder or the disposition of such Registrable Securities, an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading and
(ii) any other information regarding such Electing Holder and the
distribution of such Registrable Securities as may be required to be disclosed
in the Shelf Registration Statement under applicable law or pursuant to
Commission comments.

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      (b)           Additional Obligations of
the Company.  The
Company will as expeditiously as possible:

       

      (i)           before
filing a Registration Statement or a Prospectus or any amendments or supplements
thereto in connection with any Piggyback Takedown, at the Company’s expense,
furnish to the Electing Holders upon written request from such Electing Holder
whose securities are covered by the Registration Statement, copies of all such
documents, other than documents that are incorporated by reference, proposed to
be filed and such other documents reasonably requested by such Holders, which
documents shall be subject to the review and comments of the Counsel to such
Holders;

       

      (ii)          notify
each Electing Holder of Registrable Securities whose securities are covered by
the Registration Statement of the filing and effectiveness of the Registration
Statement and prepare and file with the Commission such amendments and
supplements to such Registration Statement and the Prospectus used in connection
therewith as may be necessary to keep such Registration Statement effective for
a period ending on the date on which all Registrable Securities have been sold
under the Registration Statement applicable to such Shelf Registration or have
otherwise ceased to be Registrable Securities and notify each Electing Holder of
the filing and effectiveness of such amendments and supplements, and comply with
the provisions of the Securities Act with respect to the disposition of all
securities covered by such Registration Statement during such period in
accordance with the intended methods of disposition by the sellers thereof set
forth in such Registration Statement;

       

      (iii)         furnish
to each Electing Holder selling Registrable Securities without charge, such
number of copies of the applicable Registration Statement, each amendment and
supplement thereto, the Prospectus included in such Registration Statement
(including each preliminary Prospectus, final Prospectus, and any other
Prospectus (including any Prospectus filed under Rule 424, Rule 430A
or Rule 430B promulgated under the Securities Act and any “issuer free
writing prospectus” as such term is defined under Rule 433 promulgated
under the Securities Act)), all exhibits and other documents filed therewith and
such other documents as such seller may reasonably request
including in order to facilitate the disposition of the Registrable Securities
owned by such Holder, and upon request, a copy of any and all transmittal
letters or other correspondence to or received from, the Commission or any other
governmental authority relating to such offer;

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      (iv)         use
its commercially reasonable efforts (A) to register or qualify such
Registrable Securities under such other securities or “blue sky” laws of such
jurisdictions as any seller reasonably requests, (B) to keep such
registration or qualification in effect for so long as such Registration
Statement remains in effect, and (C) to do any and all other acts and
things which may be reasonably necessary or advisable to enable such Electing
Holder to consummate the disposition in such jurisdictions of the Registrable
Securities owned by such Electing Holder (provided that the Company shall not be
required to (A) qualify generally to do business in any jurisdiction where
it would not otherwise be required to qualify but for this subsection,
(B) subject itself to taxation in any such jurisdiction or (C) consent
to general service of process in any such jurisdiction);

       

      (v)          notify
each Electing Holder selling Registrable Securities at any time when a
Prospectus relating to the applicable Registration Statement is required to be
delivered under the Securities Act;

       

      (A)           upon
discovery that, or upon the happening of any event as a result of which, such
Registration Statement, or the Prospectus or Free Writing Prospectus relating to
such Registration Statement, or any document incorporated or deemed to be
incorporated therein by reference contains an untrue statement of a material
fact or omits any fact necessary to make the statements in the Registration
Statement or the Prospectus or Free Writing Prospectus relating thereto not
misleading or otherwise requires the making of any changes in such Registration
Statement, Prospectus, Free Writing Prospectus or document, and, at the request
of any such Electing Holder and subject to the Company’s ability to declare
Suspension Periods pursuant to Section 3(c), the Company shall promptly
prepare a supplement or amendment to such Prospectus or Free Writing Prospectus,
furnish a reasonable number of copies of such supplement or amendment to each
such seller of such Registrable Securities, and file such supplement or
amendment with the Commission so that, as thereafter delivered to the purchasers
of such Registrable Securities, such Prospectus or Free Writing Prospectus as so
amended or supplemented shall not contain an untrue statement of a material fact
or omit to state any fact necessary to make the statements therein not
misleading,

       

      (B)           as
promptly as practicable after the Company becomes aware of any request by the
Commission or any Federal or state governmental authority for amendments or
supplements to a Registration Statement or related Prospectus or Free Writing
Prospectus covering Registrable Securities or for additional information
relating thereto,

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      (C)           as
promptly as practicable after the Company becomes aware of the issuance or
threatened issuance by the Commission of any stop order suspending or
threatening to suspend the effectiveness of a Registration Statement covering
the Registrable Securities or

       

      (D)           as
promptly as practicable after the receipt by the Company of any notification
with respect to the suspension of the qualification or exemption from
qualification of any Registrable Security for sale in any jurisdiction, or the
initiation or threatening of any proceeding for such purpose;

       

      (vi)         use
its commercially reasonable efforts to cause all such Registrable Securities, if
the Company’s Common Stock is then listed on a securities exchange or included
for quotation in a recognized trading market, to continue to be so listed or
included;

       

      (vii)        provide
and cause to be maintained a transfer agent and registrar for all such
Registrable Securities that are Common Stock from and after the effective date
of the applicable Registration Statement;

       

      (viii)       permit
any Electing Holder and Counsel to the Holders, in connection with a Piggyback
Takedown (including, but not limited to, reviewing, commenting on and attending
all meetings), review and comment upon any such Registration Statement and any
Prospectus supplements relating to a Piggyback Takedown, if
applicable;

       

      (ix)         in
the event of the issuance or threatened issuance of any stop order suspending
the effectiveness of a Registration Statement, or of any order suspending or
preventing the use of any related Prospectus or suspending the qualification of
any Registrable Securities included in such Registration Statement for sale in
any jurisdiction, the Company shall use its commercially reasonable efforts
promptly to (i) prevent the issuance of any such stop order, and in the
event of such issuance, to obtain the withdrawal of such order and
(ii) obtain the withdrawal of any order suspending or preventing the use of
any related Prospectus or Free Writing Prospectus or suspending qualification of
any Registrable Securities included in such Registration Statement for sale in
any jurisdiction at the earliest practicable date;

       

      (x)          provide
a CUSIP number for the Registrable Securities prior to the effective date of the
first Registration Statement that includes Registrable Securities;

       

      (xi)         if
requested by any participating Electing Holder promptly include in a Prospectus
supplement or amendment such information as the Holder may reasonably request,
including in order to permit the intended method of distribution of such
securities, and make all required filings of such Prospectus supplement or such
amendment as soon as reasonably practicable after the Company has received such
request;

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      (xii)        in
the case of certificated Registrable Securities, cooperate with the
participating Holders of Registrable Securities and the managing underwriters to
facilitate the timely preparation and delivery of certificates (not bearing any
legends) representing Registrable Securities sold pursuant to a Shelf
Registration Statement;

       

      (xiii)       use
its commercially reasonable efforts to take all other actions necessary to
effect the registration and sale of the Registrable Securities contemplated
hereby;

       

      (xiv)       cause
the Registrable Securities covered by such Registration Statement to be
registered with or approved by such other governmental agencies or authorities,
as may be reasonably necessary by virtue of the business and operations of the
Company to enable the seller or sellers of Registrable Securities to consummate
the disposition of such Registrable Securities;

       

      (xv)        within
the deadlines specified by the Securities Act and the rules promulgated
thereunder, make all required filings of all Prospectuses and Free Writing
Prospectuses with the Commission;

       

      (xvi)       cause
the Indenture to be qualified under the TIA not later than the effective date of
the Notes Form S-1 Shelf; and, in connection therewith, cooperate with the
Trustee and the Holders of the Notes to effect such changes to the Indenture as
may be required for such Indenture to be so qualified in accordance with the
terms of the TIA; and to execute and use its commercially reasonable efforts to
cause the Trustee to execute, all documents that may be required to effect such
changes and all other forms and documents required to be filed with the
Commission to enable such Indenture to be so qualified in a timely manner;
and

       

      (xvii)      within
the deadlines specified by the Securities Act and the rules promulgated
thereunder, make all required filing fee payments in respect of any Registration
Statement or Prospectus used under this Agreement (and any offering covered
thereby).

       

      (c)         Seller
Requirements.  In
connection with any offering under any Registration Statement under this
Agreement, each Electing Holder (i) shall promptly furnish to the Company
in writing such information with respect to such Holder and the intended method
of disposition of its Registrable Securities as the Company may reasonably
request or as may be required by law or regulations for use in connection with
any related Registration Statement or Prospectus (or amendment or supplement
thereto) and all information required to be disclosed in order to make the
information previously furnished to the Company by such Holder not contain a
material misstatement of fact or necessary to cause such Registration Statement
or Prospectus (or amendment or supplement thereto) not to omit a material fact
with respect to such Holder necessary in order to make the statements therein
not misleading; (ii) shall comply with the Securities Act and the Exchange
Act and all applicable state securities laws and comply with all applicable
regulations in connection with the registration and the disposition of the
Registrable Securities; and (iii) shall not use any Free Writing Prospectus
without the prior written consent of the Company.  If any Electing
Holder of Registrable Securities fails to provide such information required to
be included in such Registration Statement by applicable securities laws or
otherwise necessary or desirable in connection with the disposition of such
Registrable Securities in a timely manner after written request therefor, the
Company may exclude such Electing Holder’s Registrable Securities from a
registration under Sections 3 or 4 hereof.

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      Each
Person that has securities registered for resale on a Registration Statement
filed hereunder agrees that, upon receipt of any notice contemplated in
Section 3(c), such Person will forthwith discontinue the disposition of its
Registrable Securities pursuant to the applicable Registration
Statement.

       

      7.           Registration
Expenses.  All
Registration Expenses shall be borne by the Company.  All Selling
Expenses relating to Registrable Securities registered shall be borne by the
Holders of such Registrable Securities pro rata on the basis of the number of
Registrable Securities sold.

       

      8.           Indemnification;
Contribution.

       

      (a)         Indemnification by the
Company.  The
Company agrees to indemnify and hold harmless each Holder, its partners,
directors, officers, Affiliates, stockholders, members, managers, employees,
agents, trustees and each Person who controls (within the meaning of
Section 15 of the Securities Act) such Holder from and against any and all
losses, claims, damages, liabilities and expenses, or any action or proceeding
in respect thereof (including any legal or other expenses reasonably incurred by
them in connection with investigating or defending any such loss, claim, damage,
liability or action, whether or not the indemnified party is a party to any
proceeding) (each, a “Liability” and
collectively, “Liabilities”),
arising out of or based upon (a) any untrue, or allegedly untrue, statement
of a material fact contained in any Disclosure Package, any Registration
Statement, any Prospectus, any Free Writing Prospectus or in any amendment or
supplement thereto; and (b) the omission or alleged omission to state in
any Disclosure Package, any Registration Statement, any Prospectus, any Free
Writing Prospectus or in any amendment or supplement thereto any material fact
required to be stated therein or necessary to make the statements therein not
misleading under the circumstances in which such statements were made; provided,
however, that the Company shall not be held liable in any such case to the
extent that any such Liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission contained
in such Disclosure Package, Registration Statement, Prospectus, Free Writing
Prospectus or such amendment or supplement thereto in reliance upon and in
conformity with information concerning such Holder furnished in writing to the
Company by or on behalf of such Holder expressly for inclusion therein,
including, without limitation, the information furnished to the Company pursuant
to Section 6(c) hereof.  The Company shall also provide customary
indemnities to any underwriters of the Registrable Securities, their officers,
directors and employees and each Person who controls such underwriters (within
the meaning of Section 15 of the Securities Act) to the same extent as provided
above with respect to the indemnification of the Holders of Registrable
Securities.

       

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      (b)        Indemnification by
Holders.  In
connection with any offering in which a Holder is participating pursuant to
Section 3 or 4 hereof, such Holder agrees severally (and not jointly) to
indemnify and hold harmless the Company, its partners, directors, officers,
Affiliates, stockholders, members, managers, employees, agents, trustees, the
other Holders, any underwriter retained by the Company and each Person who
controls the Company, the other Holders or such underwriter (within the meaning
of Section 15 of the Securities Act) to the same extent as the foregoing
indemnity from the Company to the Holders (including indemnification of their
respective partners, directors, officers, Affiliates, stockholders, members,
employees, trustees and controlling Persons), but only to the extent that
Liabilities arise out of or are based upon a statement or alleged statement or
an omission or alleged omission that was made in reliance upon and in conformity
with information with respect to such Holder furnished in writing to the Company
by or on behalf of such Holder expressly for use in such Disclosure Package,
Registration Statement, Prospectus, Free Writing Prospectus or such amendment or
supplement thereto, including, without limitation, the information furnished to
the Company pursuant to Section 6(c) hereof; provided, however, that the
total amount to be indemnified by such Holder pursuant to this Section 8(b)
shall be limited to the net proceeds (after deducting underwriters’ discounts
and commissions) received by such Holder in the offering to which such
Disclosure Package, Registration Statement, Prospectus, Free Writing Prospectus
or such amendment or supplement thereto relates.

       

      (c)         Conduct of Indemnification
Proceedings.  Any
Person entitled to indemnification or contribution hereunder (the “Indemnified Party”)
agrees to give prompt written notice to the indemnifying party (the “Indemnifying Party”)
after the receipt by the Indemnified Party of any written notice of the
commencement of any action, suit, proceeding or investigation or threat thereof
made in writing for which the Indemnified Party intends to claim indemnification
or contribution pursuant to this Agreement; provided, however, that the
failure to so notify the Indemnifying Party shall not relieve the Indemnifying
Party of any Liability that it may have to the Indemnified Party hereunder
(except to the extent that the Indemnifying Party is materially prejudiced or
otherwise forfeits substantive rights or defenses by reason of such
failure).  If notice of commencement of any such action is
given to the Indemnifying Party as above provided, the Indemnifying Party
shall be entitled to participate in and, to the extent it may wish, jointly with
any other Indemnifying Party similarly notified, to assume the defense of such
action at its own expense, with counsel chosen by it and reasonably
satisfactory to such Indemnified Party.  Each Indemnified Party shall
have the right to employ separate counsel in any such action and participate in
the defense thereof, but the reasonable and documented out-of-pocket fees and
expenses of such counsel shall be paid by the Indemnified Party unless
(i) the Indemnifying Party agrees to pay the same, (ii) the
Indemnifying Party fails to assume the defense of such action with counsel
reasonably satisfactory to the Indemnified Party or (iii) the named parties
to any such action (including any impleaded parties) include both the
Indemnifying Party and the Indemnified Party and such parties have been advised
by such counsel that either (x) representation of such Indemnified Party
and the Indemnifying Party by the same counsel would be inappropriate under
applicable standards of professional conduct or (y) there may be one or
more legal defenses available to the Indemnified Party which are different from
or additional to those available to the Indemnifying Party.  In any of
such cases, the Indemnifying Party shall not have the right to assume the
defense of such action on behalf of such Indemnified Party, it being understood,
however, that the Indemnifying Party shall not be liable for the reasonable and
documented out-of-pocket fees and expenses of more than one separate firm of
attorneys (in addition to any local counsel) for all Indemnified Parties and all
such reasonable and documented out-of-pocket fees and expenses shall be
reimbursed as incurred.  No Indemnifying Party shall be liable for any
settlement entered into without its written consent, which consent shall not be
unreasonably withheld.  No Indemnifying Party shall, without the
consent of such Indemnified Party, effect any settlement of any pending or
threatened proceeding in respect of which such Indemnified Party is a party and
indemnity has been sought hereunder by such Indemnified Party, unless such
settlement includes an unconditional release of such Indemnified Party from all
liability for claims that are the subject matter of such
proceeding.  Notwithstanding the foregoing, if at any time an
Indemnified Party shall have requested the Indemnifying Party to reimburse the
Indemnified Party for fees and expenses of counsel as contemplated by this
Section 8, the Indemnifying Party agrees that it shall be liable for any
settlement of any proceeding effected without the Indemnifying Party’s written
consent if (i) such settlement is entered into more than thirty business
days after receipt by the Indemnifying Party of the aforesaid request and
(ii) the Indemnifying Party shall not have reimbursed the Indemnified Party
in accordance with such request or contested the reasonableness of such fees and
expenses prior to the date of such settlement.

       

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

      (d)        Contribution.  If
the indemnification provided for in this Section 8 from the Indemnifying
Party is unavailable to an Indemnified Party hereunder or insufficient to hold
harmless an Indemnified Party in respect of any Liabilities referred to herein,
then each Indemnifying Party, in lieu of indemnifying such Indemnified Party,
shall contribute to the amount paid or payable by such Indemnified Party as a
result of such Liabilities in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party and Indemnified Party in connection
with the actions which resulted in such Liabilities, as well as any other
relevant equitable considerations.  The relative faults of such
Indemnifying Party and Indemnified Party shall be determined by reference to,
among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact, has been made by, or relates to information supplied by,
such Indemnifying Party or Indemnified Party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
action.  The amount paid or payable by a party as a result of the
Liabilities referred to above shall be deemed to include, subject to the
limitations set forth in Sections 8(a), 8(b) and 8(c) hereof, any
reasonable and documented out-of-pocket legal or other fees, charges or expenses
reasonably incurred by such party in connection with any investigation or
proceeding; provided, that the
total amount to be contributed by any Holder shall be limited to the net
proceeds (after deducting the underwriters’ discounts and commissions) received
by such Holder in the offering.

       

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

      The
parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 8(d) were determined by pro rata allocation
or by any other method of allocation which does not take account of
the equitable considerations referred to in the immediately preceding
paragraph.  No Person guilty of fraudulent misrepresentation (within
the meaning of Section 11(e) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent
misrepresentation.

       

      9.           Participation in
Underwritten Offering/Sale of Registrable Securities.

       

      (a)         No
Person may participate in any underwritten offering hereunder unless such Person
(i) agrees to sell such Person’s securities on the basis provided in any
underwriting arrangements in customary form entered into pursuant to this
Agreement and (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements; provided, that the
Holders included in any underwritten registration shall make only those
representations and warranties to the Company or the underwriters as are
customary for similar transactions and such other representations and warranties
that the underwriters may reasonably request that are agreed by any such
Holder.

       

      (b)         Each
Person that has securities registered on a Registration Statement filed
hereunder agrees that, upon receipt of any notice contemplated in Section
3(e)(ii), such Person will forthwith discontinue the disposition of its
Registrable Securities pursuant to the applicable Registration
Statement.

       

      10.         Rule 144 and
Rule 144A; Other Exemptions.  With
a view to making available to the Holders of Registrable Securities the benefits
of Rule 144 and Rule 144A promulgated under the Securities Act and
other rules and regulations of the Commission that may at any time permit a
Holder of Registrable Securities to sell securities of the Company to the public
without registration, the Company covenants that it will (i) file in a
timely manner all reports and other documents required, if any, to be filed by
it under the Securities Act and the Exchange Act and the rules and regulations
adopted thereunder and (ii) make available information necessary to comply
with Rule 144 and Rule 144A, if available with respect to resales of
the Registrable Securities under the Securities Act, at all times, all to the
extent required from time to time to enable such Holder to sell Registrable
Securities without registration under the Securities Act within the limitation
of the exemptions provided by (x) Rule 144 and Rule 144A
promulgated under the Securities Act (if available with respect to resales of
the Registrable Securities), as such rules may be amended from time to time or
(y) any other rules or regulations now existing or hereafter adopted by the
Commission.  Upon the reasonable request of any Holder of Registrable
Securities, the Company will deliver to such Holder a written statement as to
whether it has complied with such information

       

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

      11.         Miscellaneous.

       

      (a)         Stock Splits,
etc.  The
provisions of this Agreement shall be appropriately adjusted for any stock
dividends, splits, reverse splits, combinations recapitalizations and the like
occurring after the date hereof.

       

      (b)        No Inconsistent
Agreements.  The
Company shall not enter into any agreement with respect to its securities that
is inconsistent with the rights granted to the Holders in this
Agreement.

       

      (c)         Remedies.  The
Holders, in addition to being entitled to exercise all rights granted by law,
including recovery of damages, shall be entitled to seek specific performance of
their rights under this Agreement.  All rights and remedies existing
under this Agreement are cumulative to, and not exclusive of, any rights or
remedies available under this Agreement or otherwise.

       

      (d)        Amendments and
Waivers.  This
Agreement may be amended with the consent of the Company and the Company may
take any action herein prohibited, or omit to perform any act herein required to
be performed by it, only if the Company shall have obtained the written consent
of the Holders of at least a majority of the Registrable Securities then
outstanding to such amendment, action or omission to act; provided that no such
amendment, action or omission that adversely affects, alters or changes the
interests of any Holder in a manner different than all other Holders shall be
effective against such Holder without the prior written consent of such
Holder.

       

      No waiver
of any terms or conditions of this Agreement shall operate as a waiver of any
other breach of such terms and conditions or any other term or condition, nor
shall any failure to enforce any provision hereof operate as a waiver of such
provision or of any other provision hereof. No written waiver hereunder, unless
it by its own terms explicitly provides to the contrary, shall be construed to
effect a continuing waiver of the provisions being waived and no such waiver in
any instance shall constitute a waiver in any other instance or for any other
purpose or impair the right of the party against whom such waiver is claimed in
all other instances or for all other purposes to require full compliance with
such provision.  The failure of any party to enforce any provision of
this Agreement shall not be construed as a waiver of such provision and shall
not affect the right of such party thereafter to enforce each provision of this
Agreement in accordance with its terms.

       

      (e)         Notices.  All
notices, demands and other communications provided for or permitted hereunder
shall be made in writing and shall be made by registered or certified
first-class mail, return receipt requested, telecopy, electronic transmission,
courier service or personal delivery:

       

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

      (i)           If
to the Company:

       

      2925
Briarpark, Suite 1050

      Houston,
TX 77042

      Telecopy:
(713) 499-6201

      Attention:
General Counsel

       

      
        	
                 
      

              	
                (ii)

              	
                If
      to any Holder, at its address as it appears in the books and records of
      the Company.

              

      

       

      All such
notices, demands and other communications shall be deemed to have been duly
given when delivered by hand, if personally delivered; when delivered by
courier, if delivered by commercial courier service; five (5) Business Days
after being deposited in the mail, postage prepaid, if mailed; and when receipt
is acknowledged, if telecopied, or electronically transmitted.  Any
party may by notice given in accordance with this Section 12(e) designate
another address or Person for receipt of notices hereunder.

       

      (f)         Successors and
Assigns.  This
Agreement shall inure to the benefit of and be binding upon the successors and
assigns of each of the parties including each Holder of any Registrable
Securities, provided that nothing herein shall be deemed to permit any
assignment, transfer or other disposition of Registrable Securities in violation
of the terms of the Indenture.  If any transferee of any Holder shall
acquire Registrable Securities, in any manner, whether by operation of law or
otherwise, such Registrable Securities shall be held subject to and benefit from
all of the terms of this Agreement, and by taking and holding such Registrable
Securities, such person shall be conclusively deemed to have agreed to be bound
by and to perform all of the terms and provisions of this Agreement and such
person shall be entitled to receive the benefits hereof.

       

      (g)        Headings.  The
headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof.

       

      (h)        GOVERNING
LAW.  THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF.

       

      (i)          Jurisdiction.  Any
action or proceeding against any party hereto relating in any way to this
Agreement or the transactions contemplated hereby may be brought and enforced in
the federal or state courts in the State of New York, and each party, on
behalf of itself and its respective successors and assigns, irrevocably consents
to the jurisdiction of each such court in respect of any such action or
proceeding.  Each party, on behalf of itself and its respective
successors and assigns, irrevocably consents to the service of process in any
such action or proceeding by the mailing of copies thereof by registered or
certified mail, postage prepaid, return receipt requested, to such person or
entity at the address for such person or entity set forth in Section 12(d)
hereof of this Agreement or such other address such person or entity shall
notify the other in writing.  The foregoing shall not limit the right
of any person or entity to serve process in any other manner permitted by law or
to bring any action or proceeding, or to obtain execution of any judgment, in
any other jurisdiction.
 

      
        
           

        

        
          21

          
            

          

        

        
           

        

      

      Each
party, on behalf of itself and its respective successors and assigns, hereby
irrevocably waives any objection that it may now or hereafter have to the laying
of venue of any action or proceeding arising under or relating to this Agreement
or the transactions contemplated hereby in any court located in the State of
New York or located in any other jurisdiction chosen by the Company in
accordance with Section 12(i) hereof.  Each party, on behalf of
itself and its respective successors and assigns, hereby irrevocably waives any
claim that a court located in the State of New York is not a convenient
forum for any such action or proceeding.

       

      Each
party, on behalf of itself and its respective successors and assigns, hereby
irrevocably waives, to the fullest extent permitted by applicable United States
federal and state law, all immunity from jurisdiction, service of process,
attachment (both before and after judgment) and execution to which he might
otherwise be entitled in any action or proceeding relating in any way to this
Agreement or the transactions contemplated hereby in the courts of the State of
New York, of the United States or of any other country or jurisdiction, and
hereby waives any right he might otherwise have to raise or claim or cause to be
pleaded any such immunity at or in respect of any such action or
proceeding.

       

      (j)          WAIVER OF JURY
TRIAL.  EACH
PARTY, ON BEHALF OF ITSELF AND ITS RESPECTIVE SUCCESSORS AND ASSIGNS, HEREBY
IRREVOCABLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
ACTION BASED UPON, OR ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

       

      (k)         Severability.  If
any one or more of the provisions contained herein, or the application thereof
in any circumstance, is held invalid, illegal or unenforceable in any respect
for any reason, the validity, legality and enforceability of any such provision
in every other respect and of the remaining provisions hereof shall not be in
any way impaired.

       

      (l)          Rules of
Construction.  Unless
the context otherwise requires, references to sections or subsections refer to
sections or subsections of this Agreement.  Terms defined in the
singular have a comparable meaning when used in the plural, and vice
versa.

       

      (m)        Entire
Agreement.  This
Agreement is intended by the parties as a final expression of their agreement
and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto with respect to the subject matter contained
herein.  There are no restrictions, promises, representations,
warranties or undertakings with respect to the subject matter contained herein,
other than those set forth or referred to herein.  This Agreement
supersedes all prior agreements and understandings among the parties with
respect to such subject matter.

       

      
        
           

        

        
          22

          
            

          

        

        
           

        

      

      (n)        Further
Assurances.  Each
of the parties shall execute such documents and perform such further acts as may
be reasonably required or desirable to carry out or to perform the provisions of
this Agreement.

       

      (o)        FWP
Consent.  No
Electing Holder shall use a Holder Free Writing Prospectus without the prior
written consent of the Company, which consent shall not be unreasonably
withheld.

       

      (p)        Other
Agreements.  Nothing
contained in this Agreement shall be deemed to be a waiver of, or release from,
any obligations any party hereto may have under, or any restrictions on the
transfer of Registrable Securities or other securities of the Company imposed
by, any other agreement.

       

      [Remainder
of page intentionally left blank]

      
        
           

        

        
          23

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, the undersigned have executed, or have caused to be executed,
this Registration Rights Agreement on the date first written above.

       

      
        
          
            
              
                	 
      	
                        U.S.
      CONCRETE, INC.

                      
	 	 
	 
      	
                        By:

                      	 
      
	 
      	 
      	
                        Name:

                      
	 
      	 
      	
                        Title:

                      
	 
      	 
      
	 
      	
                        GUARANTORS:

                      
	 
      	 
      
	 
      	
                        ALBERTA
      INVESTMENTS, INC.

                      
	 
      	
                        ALLIANCE
      HAULERS, INC.

                      
	 
      	
                        AMERICAN
      CONCRETE PRODUCTS, INC.

                      
	 
      	
                        ATLAS
      REDI-MIX, LLC

                      
	 
      	
                        ATLAS-TUCK
      CONCRETE, INC.

                      
	 
      	
                        BEALL
      CONCRETE ENTERPRISES, LLC

                      
	 
      	
                        BEALL
      INDUSTRIES, INC.

                      
	 
      	
                        BEALL
      MANAGEMENT, INC.

                      
	 
      	
                        BUILDERS’
      REDI-MIX, LLC

                      
	 
      	
                        BWB,
      INC. OF MICHIGAN

                      
	 
      	
                        CENTRAL
      CONCRETE SUPPLY CO., INC.

                      
	 
      	
                        CENTRAL
      PRECAST CONCRETE, INC.

                      
	 
      	
                        HAMBURG
      QUARRY LIMITED LIABILITY

                      
	 
      	
                        COMPANY

                      
	 
      	
                        INGRAM
      CONCRETE, LLC

                      
	 
      	
                        MG,
      LLC

                      
	 
      	
                        REDI-MIX
      CONCRETE, L.P.

                      
	 
      	
                        REDI-MIX
      GP, LLC

                      
	 
      	
                        REDI-MIX,
      LLC

                      
	 
      	
                        SAN
      DIEGO PRECAST CONCRETE, INC.

                      
	 
      	
                        SIERRA
      PRECAST, INC.

                      
	 
      	
                        SMITH
      PRE-CAST, INC.

                      
	 
      	
                        SUPERIOR
      CONCRETE MATERIALS, INC.

                      
	 
      	
                        U.S.
      CONCRETE ON-SITE, INC.

                      
	 
      	
                        USC
      MANAGEMENT CO., LLC

                      
	 
      	
                        USC
      PAYROLL, INC.

                      
	 
      	
                        USC
      TECHNOLOGIES, INC.

                      
	 
      	 
      
	 
      	
                        By:

                      	 
      
	 
      	 
      	
                        Name:

                      
	 
      	 
      	
                        Title:

                      

              

            

          

        

      
 

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        
          
            
              
                
                  
                    	 
      	
                            BRECKENRIDGE
      READY MIX, INC.

                          
	 
      	 
      
	 
      	
                            By:

                          	 
      
	 
      	 
      	
                            Name:

                          
	 
      	 
      	
                            Title:

                          
	 
      	 
      
	 
      	
                            KURTZ
      GRAVEL COMPANY

                          
	 
      	
                            SUPERIOR
      HOLDINGS, INC.

                          
	 
      	
                            TITAN
      CONCRETE INDUSTRIES, INC.

                          
	 
      	 
      
	 
      	
                            By:

                          	 
      
	 
      	 
      	
                            Name:

                          
	 
      	 
      	
                            Title:

                          
	 
      	 
      
	 
      	
                            RIVERSIDE
      MATERIALS, LLC

                          
	 
      	 
      
	 
      	
                            By:

                          	 
      
	 
      	 
      	
                            Name:

                          
	 
      	 
      	
                            Title:

                          
	 
      	 
      
	 
      	
                            EASTERN
      CONCRETE MATERIALS, INC.

                          
	 
      	 
      
	 
      	
                            By:

                          	 
      
	 
      	 
      	
                            Name:

                          
	 
      	 
      	
                            Title:

                          
	 
      	 
      
	 
      	
                            LOCAL
      CONCRETE SUPPLY & EQUIPMENT,

                          
	 
      	
                            LLC

                          
	 
      	
                            MASTER
      MIX CONCRETE, LLC

                          
	 
      	
                            MASTER
      MIX, LLC

                          
	 
      	
                            NYC
      CONCRETE MATERIALS, LLC

                          
	 
      	
                            PEBBLE
      LANE ASSOCIATES, LLC

                          
	 
      	 
      
	 
      	
                            By:

                          	 
      
	 
      	 
      	
                            Name:

                          
	 
      	 
      	
                            Title:

                          

                  

                

              

            

          

        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        
          
            
              
                
                  	 
      	
                          USC
      ATLANTIC, INC.

                        
	 
      	 
      
	 
      	
                          By:

                        	 
      
	 
      	 
      	
                          Name:

                        
	 
      	 
      	
                          Title:

                        
	 
      	 
      
	 
      	
                          USC
      MICHIGAN, INC.

                        
	 
      	 
      
	 
      	
                          By:

                        	 
      
	 
      	 
      	
                          Name:

                        
	 
      	 
      	
                          Title:

                        
	 
      	 
      
	 
      	
                          CONCRETE
      XXXIII ACQUISITION, INC.

                        
	 
      	
                          CONCRETE
      XXXIV ACQUISITION, INC.

                        
	 
      	
                          CONCRETE
      XXXV ACQUISITION, INC.

                        
	 
      	
                          CONCRETE
      XXXVI ACQUISITION, INC.

                        
	 
      	 
      
	 
      	
                          By:

                        	 
      
	 
      	 
      	
                          Name:

                        
	 
      	 
      	
                          Title:

                        
	 
      	 
      
	 
      	
                          CONCRETE
      ACQUISITION III, LLC

                        
	 
      	
                          CONCRETE
      ACQUISITION IV, LLC

                        
	 
      	
                          CONCRETE
      ACQUISITION V, LLC

                        
	 
      	
                          CONCRETE
      ACQUISITION VI, LLC

                        
	 
      	 
      
	 
      	
                          By:

                        	 
      
	 
      	 
      	
                          Name:

                        
	 
      	 
      	
                          Title:

                        

                

              

            

          

        

      
 

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Annex
A

       

      Notice
and Questionnaire

       

      The
undersigned beneficial holder of 9.5% Convertible Secured Notes due 2015 (the
“Notes”) of U.S. Concrete, Inc. (the “Company”) and/or common stock, par value
$0.001 per share, of the Company (including common stock issuable upon the
conversion of the Notes or in order to pay interest and/or premium and/or other
amounts to the Holders in accordance with the provisions of the Indenture) which
are Registrable Securities understands that the Company intends to file or has
filed with the Securities and Exchange Commission (the “Commission”) a
registration statement (the “Resale Shelf Registration Statement”) for the
registration and resale under Rule 415 of the Securities Act of 1933, as
amended (the “Securities Act”), of the Registrable Securities, in accordance
with the terms of the registration rights agreement (the “Registration Rights
Agreement”), among the Company and the Holders named therein. A copy of the
Registration Rights Agreement is available from the Company upon request at the
address set forth below. All capitalized terms not otherwise defined herein
shall have the meaning ascribed thereto in the Registration Rights
Agreement.

       

      Each
beneficial holder of Registrable Securities (each a “beneficial owner”) is
entitled to the benefits of the Registration Rights Agreement. In order to sell,
or otherwise dispose of, any Registrable Securities pursuant to the Resale Shelf
Registration Statement, a beneficial owner of Registrable Securities generally
will be required to be named as a selling securityholder in the related
prospectus, deliver a prospectus to purchasers of Registrable Securities and be
bound by those provisions of the Registration Rights Agreement applicable to
such beneficial owner (including certain indemnification provisions as described
below).  Beneficial owners that do not complete this Notice and
Questionnaire and deliver it to the Company as provided below will not be named
as selling securityholders in the prospectus and, therefore, will not be
permitted to sell any Registrable Securities pursuant to the Resale Shelf
Registration Statement.

       

      Certain
legal consequences arise from being named as a selling securityholder in the
Resale Shelf Registration Statement and the related prospectus. Accordingly,
holders and beneficial owners of Registrable Securities are advised to consult
their own securities law counsel regarding the consequences of being named or
not being named as a selling securityholder in the Resale Shelf Registration
Statement and the related prospectus.

       

      NOTICE

       

      The
undersigned beneficial owner (the “Selling Securityholder”) of Registrable
Securities hereby gives notice to the Company of its intention to sell or
otherwise dispose of Registrable Securities beneficially owned by it and listed
below in Item 3 (unless otherwise specified under such Item 3) pursuant to the
Resale Shelf Registration Statement. The undersigned, by signing and returning
this Notice and Questionnaire, understands that it will be bound by the terms
and conditions of this Notice and Questionnaire and the Registration Rights
Agreement.

       

      
        
           

        

        
          B-1

          
            

          

        

        
           

        

      

      Pursuant
to the Registration Rights Agreement, the undersigned has agreed to indemnify
and hold harmless the Company’s directors and officers and each person, if any,
who controls the Company within the meaning of either Section 15 of the
Securities Act or Section 20 of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), from and against certain losses arising in
connection with statements concerning the undersigned that are made in the 
Resale Shelf Registration Statement or the related prospectus in reliance upon
the information provided in this Notice and Questionnaire.

       

      If the
Selling Securityholder transfers all or any portion of the Registrable
Securities listed in Item 3 below after the date on which such information is
provided to the Company, the Selling Securityholder agrees to notify the
transferee(s) at the time of the transfer of its rights and obligations
under this Notice and Questionnaire and the Registration Rights
Agreement.

       

      QUESTIONNAIRE

       

      Please
respond to every item, even if your response is “none.” If you need more space
for any response, please attach additional sheets of paper. Please be sure to
indicate your name and the number of the item being responded to on each such
additional sheet of paper, and to sign each such additional sheet of paper
before attaching it to this Questionnaire. Please note that you may be asked to
answer additional questions depending on your responses to the following
questions.

       

      If you
have any questions about the contents of this Questionnaire or as to who should
complete this Questionnaire, please contact the General Counsel of the Company
at telephone
number:  [                    ].

       

      The
undersigned hereby provides the following information to the Company and
represents and warrants that such information is accurate and
complete:

       

      
        	
                1.

              	
                Your
      Identity and Background as the Beneficial Owner of the Registrable
      Securities.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Your
      full legal name:

              

      

       

      
        	
                 
      

              	
                (b)

              	
                Your
      business address (including street address) (or residence if no business
      address), telephone number and facsimile
number:

              

      

       

      Address:

       

      Telephone
No.:

       

      Fax
No.:

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                (c)

              	
                Are
      you a broker-dealer registered pursuant to Section 15 of the Exchange
      Act?

              

      

       

      
        	
                 
      

              	
                 ̈

              	
                Yes.

              

      

       

      
        	
                 
      

              	
                 ̈

              	
                No.

              

      

       

      
        	
                 
      

              	
                (d)

              	
                If
      your response to Item 1(c) above is no, are you an “affiliate” of a
      broker-dealer registered pursuant to Section 15 of the Exchange
      Act?

              

      

       

      
        	
                 
      

              	
                 ̈

              	
                Yes.

              

      

       

      
        	
                 
      

              	
                 ̈

              	
                No.

              

      

       

      For the
purposes of this Item 1(d), an “affiliate” of a registered broker-dealer
includes any person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with,
such broker-dealer, and does not include any individuals employed by such
broker-dealer or its affiliates.

       

      
        	
                 
      

              	
                (e)

              	
                Full
      legal name of person through which you hold the Registrable Securities
      (i.e., name of your broker or the DTC participant, if applicable, through
      which your Registrable Securities are
held):

              

      

       

      Name of
Broker:

       

      DTC
No.:

       

      Contact
person:

       

      Telephone
No.:

       

      
        	
                2.

              	
                Your
      Relationship with the Company.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Have
      you or any of your affiliates, officers, directors or principal equity
      holders (owners of 5% or more of the equity securities of the undersigned)
      held any position or office or have you had any other material
      relationship with the Company (or its predecessors or affiliates) within
      the past three years?

              

      

       

      
        	
                 
      

              	
                 ̈

              	
                Yes.

              

      

       

      
        	
                 
      

              	
                 ̈

              	
                No.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                (b)

              	
                If
      your response to Item 2(a) above is yes, please state the nature and
      duration of your relationship with the
Company:

              

      

       

      
        	
                3.

              	
                Your
      Interest in the Registrable
Securities.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                State
      the type and amount of Registrable Securities beneficially owned by
      you:

              

      

       

      State the
CUSIP No(s). of such Registrable Securities beneficially owned by
you:

       

      
        	
                 
      

              	
                 ̈

              	
                Yes.

              

      

       

      
        	
                 
      

              	
                 ̈

              	
                No.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                Other
      than as set forth in your response to Item 3(a) above, do you
      beneficially own any other securities of the
  Company?

              

      

       

      
        	
                 
      

              	
                 ̈

              	
                Yes.

              

      

       

      
        	
                 
      

              	
                 ̈

              	
                No.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                If
      your answer to Item 3(b) above is yes, state the type, the aggregate
      amount and CUSIP No. of such other securities of the Company
      beneficially owned by you:

              

      

       

      Type:

       

      Aggregate
amount:

       

      CUSIP
No.:

       

      
        	
                 
      

              	
                (d)

              	
                Did
      you acquire the securities listed in Item 3(a) above in the ordinary
      course of business?

              

      

       

      
        	
                 
      

              	
                 ̈

              	
                Yes.

              

      

       

      
        	
                 
      

              	
                 ̈

              	
                No.

              

      

       

      
        	
                 
      

              	
                (e)

              	
                At
      the time of your purchase of the securities listed in Item
      3(a) above, did you have any agreements or understandings, direct or
      indirect, with any person to distribute the
  securities?

              

      

       

      
        	
                 
      

              	
                 ̈

              	
                Yes.

              

      

       

      
        	
                 
      

              	
                 ̈

              	
                No.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                (f)

              	
                If
      your response to Item 3(e) above is yes, please describe such
      agreements or understandings:

              

      

       

      
        	
                4.

              	
                Nature
      of your Beneficial Ownership.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Check
      if the beneficial owner set forth in your response to Item 1(a) is
      any of the below:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                A
      reporting company under the Exchange Act.  ̈

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                A
      majority-owned subsidiary of a reporting company under the Exchange Act.
       ̈

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                A
      registered investment fund under the 1940 Act.  ̈

              

      

       

      
        	
                 
      

              	
                (b)

              	
                If
      the beneficial owner of the Registrable Securities set forth in your
      response to Item 1 (a) above is a limited partnership, state the
      names of the general partner(s) of such limited
      partnership:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                With
      respect to each general partner listed in Item 4(b) above who is not
      a natural person and is not publicly-held, name each shareholder (or
      holder of partnership interests, if applicable) of such general partner.
      If any of these named shareholders are not natural persons or
      publicly-held entities, please provide the same information. This process
      should be repeated until you reach natural persons or a publicly-held
      entity.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Name
      your controlling shareholder(s) (the “Controlling Entity”). If the
      Controlling Entity is not a natural person and is not a publicly-held
      entity, name each shareholder of such Controlling Entity. If any of these
      named shareholders are not natural persons or publicly-held entities,
      please provide the same information. This process should be repeated until
      you reach natural persons or a publicly-held
  entity.

              

      

       

      
        	
                 
      

              	
                (i)

              	
                (A) Full
      legal name of Controlling Entity(ies) or natural person(s) who
      has/have sole or shared voting or dispositive power over the Registrable
      Securities:

              

      

       

      (B) Business
address (including street address) (or residence if no business address),
telephone number and facsimile number of such person(s):

       

      Address:

       

      Telephone
No.:

       

      Fax
No.:

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (C) Name
of shareholders:

       

      
        	
                 
      

              	
                (ii)

              	
                (A) Full
      legal name of Controlling
Entity(ies):

              

      

       

      (B) Business
address (including street address) (or residence if no business address),
telephone number and facsimile number of such person(s):

       

      Address:

       

      Telephone
No.:

       

      Fax
No.:

       

      
        	
                 
      

              	
                (iii)

              	
                Name
      of shareholders:

              

      

       

      
        	
                5.

              	
                Plan
      of Distribution.

              

      

       

      Except as
set forth below, the undersigned Selling Securityholder intends to distribute
the Registrable Securities listed above in Item (3) only as follows (if at
all):  All or any portion of such Registrable Securities may be sold
from time to time directly by the undersigned Selling Securityholder or,
alternatively, through one or more underwriters, broker-dealers or
agents.  Such Registrable Securities may be sold in one or more
transactions at fixed prices, at prevailing market prices at the time of sale,
at varying prices determined at the time of sale, or at negotiated
prices.  Such sales may be effected in transactions (which may involve
crosses or block transactions) (i) on any national securities exchange or
quotation service on which the Registrable Securities may be listed or quoted at
the time of sale, (ii) in the over-the-counter market, (iii) in transactions
otherwise than on such exchanges or services or in the over-the-counter market,
or (iv) through the writing of options, whether such options are listed on an
options exchange or otherwise, (v) ordinary brokerage transactions and
transactions in which the broker-dealer solicits purchasers, (vi) block trades
in which the broker-dealer will attempt to sell the shares as agent but may
position and resell a portion of the block as principal to facilitate the
transaction, (vii) purchases by a broker-dealer as principal and resale by the
broker-dealer for its account, (viii) an exchange distribution in accordance
with the rules of the applicable exchange, (ix) privately negotiated
transactions, (x) short sales, (xi) sales pursuant to Rule 144 or Rule 144A,
(xii) broker-dealers may agree with the selling securityholder to sell a
specified number of shares at a stipulated price per share, (xiii) a combination
of any such methods of sale, and (xiv) any other method permitted pursuant to
applicable law.  In connection with sales of the Registrable
Securities or otherwise, the Selling Securityholder may enter into hedging
transactions with broker-dealers, which may in turn engage in short sales of the
Registrable Securities in the course of hedging the positions they
assume.  The Selling Securityholder may also sell Registrable
Securities short and deliver Registrable Securities to close out such short
positions, or loan or pledge Registrable Securities to broker-dealers that in
turn may sell such Registrable Securities.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      State any
exceptions here:

       

      Note: In no event will such
method(s) of distribution take the form of an underwritten offering of the
Registrable Securities without the prior written agreement of the
Company.

       

      The
undersigned acknowledges its obligation to comply with the provisions of the
Exchange Act and the rules thereunder relating to stock manipulation,
particularly Regulation M thereunder (or any successor rules or
regulations), in connection with any offering of Registrable Securities pursuant
to the Registration Rights Agreement. The undersigned agrees that neither it nor
any person acting on its behalf will engage in any transaction in violation of
such provisions.

       

      The
undersigned beneficial owner and selling securityholder hereby acknowledges its
obligations under the Registration Rights Agreement to indemnify and hold
harmless certain persons as set forth therein. Pursuant to the Registration
Rights Agreement, the Company has agreed under certain circumstances to
indemnify the undersigned beneficial owner and selling securityholder against
certain liabilities.

       

      In
accordance with the undersigned’s obligation under the Registration Rights
Agreement to provide such information as may be required by law for inclusion in
the Resale Shelf Registration Statement, the undersigned agrees to promptly
notify the Company of any inaccuracies or changes in the information provided
herein that may occur subsequent to the date hereof at any time while the Resale
Shelf Registration Statement remains effective.

       

      All
notices to the beneficial owner hereunder and pursuant to the Registration
Rights Agreement shall be made in writing to the undersigned at the address set
forth in Item 1(b) of this Notice and Questionnaire.

       

      By
signing below, the undersigned acknowledges that it is the beneficial owner of
the Registrable Securities set forth herein, represents that the information
provided herein is accurate, consents to the disclosure of the information
contained in this Notice and Questionnaire and the inclusion of such information
in the Resale Shelf Registration Statement and the related prospectus. The
undersigned understands that such information will be relied upon by the Company
in connection with the preparation or amendment of the Resale Shelf Registration
Statement and the related prospectus.

       

      Once this
Notice and Questionnaire is executed by the undersigned beneficial owner and
received by the Company, the terms of this Notice and Questionnaire, and the
representations and warranties contained herein, shall be binding on, shall
inure to the benefit of and shall be enforceable by the respective successors,
heirs, personal representatives and assigns of the Company and the undersigned
beneficial owner. This Notice and Questionnaire shall be governed in all
respects by the laws of the State of New York, without giving effect to
rules governing the conflict of laws.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      IN WITNESS WHEREOF, the
undersigned, by authority duly given, has caused this Notice and Questionnaire
to be executed and delivered either in person or by its duly authorized
agent.

       

      
        
          	 
      	
                  NAME
      OF BENEFICIAL OWNER:

                
	 
      	 
      
	 
      	 
      
	 
      	
                  (Please
      Print)

                
	 
      	 
      
	 
      	
                  Signature:   

                	 
      
	 
      	 
      	 
      
	 
      	
                  Date:

                	 
      

        

      

      

      PLEASE
RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE TO U.S. CONCRETE,
INC. AS FOLLOWS:

      

      U.S.
Concrete, Inc.

      2925
Briarpark, Suite 1050

      Houston,
TX 77042

      Telecopy:
(713) 499-6201

      Attention:  General
Counsel

       

      This
Notice and Questionnaire must be returned within ten (10) days after receipt of
the Company’s notice with respect to the filing of a Shelf Registration
Statement pursuant to Section 3 of the Registration Rights Agreement in order to
include Registrable Securities in such Shelf Registration
Statement.Unassociated Document

    LOAN
AGREEMENT

     

    Contract
No.
23101200900001726                     

     

    The
Borrower (Full Name): Heilongjiang Lanxi Sunrise Linen Textile Industry Co.,
Ltd.

    The
Lender (Full Name): Lanxi Branch, Agricultural Bank of China

    Subject
to the related state laws and regulations, the Parties hereto enter into the
following Agreement through negotiation:

     

    ARTICLE 1
LOAN

     

    1. Type
of Loan: short-term loan

    2.
Purpose of Loan: purchase of raw materials

    3.
Amounts and Currency: RMB 3,000,000

    4. Loan
Term:

    a) The
loan term shall be detailed in the following chart:

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                Commencement
      Date

                              	 	
                                Expiration
      

                                Date         
      

                              	 
	
                                Year

                              	 	
                                Month

                              	 	
                                Day

                              	 	 	
                                Amount

                              	 	
                                Year

                              	 	
                                Month

                              	 	
                                Day

                              	 	 	
                                Amount

                              	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                2009

                              	 	
                                March

                              	 	 	18	 	 	RMB	3,000,000	 	
                                2010

                              	 	
                                March

                              	 	 	17	 	 	RMB	3,000,000	 

                      

                    

                  

                

              

            

          

        

      

    

     

    (Supplementary
chart adding related contents, if any, shall be part of this
Agreement)

     

    
      	
              b)

            	
              If
      the amount, commencement or expiration date of loan listed herein is
      inconsistent with those indicated in the loan note, the stipulations of
      loan note shall prevail. Loan note shall be part of this Agreement and
      have the same legal effect.

            

    

     

    
      	
              c)

            	
              If
      any loan hereunder is made in foreign currency, the Borrower shall pay the
      principal and interests in such currency to the
  Lender.

            

    

     

    5.
Lending Rate

     

    Lending
rate for the loan in RMB shall be the following manners:

     

    Fixed
Rate: the rate shall be 30% higher than the base rate, which is 6.903% until the
expiration date.

     

    6. Settle
Interests

     

    The
interest of loan hereunder shall be settled quarterly and the due date for
interest shall be the 20th day of each quarter. Interest shall be paid by the
Borrower at each due date. If the last interest payment date is not the date for
the payment of principal, the remaining interest calculated daily as 1/30 of the
month’s interest rate shall be paid with principal at the date for the payment
of principal.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ARTICLE 2
PRECONDITIONS

     

    The
Lender shall provide the loan hereunder only after:

     

    1. The
bank account, i.e., basic bank account, has been established by the Borrower at
the Lender;

     

    2. The
Borrower has provided the related instruments and fulfilled the appropriate
formalities as required by the Lender;

     

    3. The
Borrower has acquired all approvals, registrations and fulfilled all other
formalities necessary for the loan hereunder if the same is related to the
foreign currency; and

     

    4. The
guarantees or assurances required for the loan hereunder have been fulfilled and
effective pursuant to the related requirements of laws, in addition, the surety
agreement necessary for the loan hereunder, if any, has been concluded and come
into effect.

     

    ARTICLE 3
RIGHTS AND OBLIGATIONS OF THE LENDER

     

    1. The
Lender may be entitled to access the information of the Borrower concerning the
business operation, financial activities, inventory and use of loan and may
require the periodic provision of financial statement or other materials,
instruments or information by the Borrower.

     

    2. the
Lender may be entitled to suspend the provision of loan or require the early
recovery of loan if any event occurred, particularly but not limited to the
events listed in Article 4.7, 4.8, 4.10 herein, which may prejudice the safety
of loan.

     

    3. Any
early-recovered principal, interests, penalties, compound interests and any
other payment due to the Lender may be deducted by the Lender directly from the
bank account of the Borrower.

     

    4. If the
amount paid by the Borrower fails to satisfy the requirements hereunder, the
Lender may, at its sole discretion, use such amount for the payment of
principal, interests, penalties, compound interests or other
expenses.

     

    5.           The
Lender may disclose the breach of the Borrower if the Borrower fails to make the
due payment hereunder.

     

    6.           The
Lender shall provide loan to the Borrower in accordance with this
Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ARTICLE 4
RIGHTS AND OBLIGATIONS OF THE BORROWER

     

    1. The
Borrower may obtain and use loan in accordance with this Agreement.

     

    2. The
Borrower shall make settlement and deposit related to the loan hereunder in the
bank account referred in Article 2 hereof.

     

    3. The
Borrower shall acquire all approvals, registrations and fulfill all other
formalities necessary for the loan hereunder if the same is related to the
foreign currency.

     

    4. The
Borrower shall pay the principal and interests when due. Any renewal to the loan
term shall be subject to the written application at least 15 days prior to the
expiration date and shall be effective only upon the approval of The
Lender.

     

    5. The
Borrower shall use such loan in accordance with this Agreement and may not use
the same for any other purposes.

     

    6. The
Borrower shall provide the complete and accurate financial statement and other
related materials and information to the Lender on a monthly basis, and shall
provide assistances to the inspection made by the Lender on the business
operation, financial activities and the use of loan hereunder.

     

    7. The
prior written notice to and approval by the Lender shall be necessary for the
leasing, joint-stock, partnership, merger, consolidation, separation, joint
venture, assignment of assets, shutting down, dissolution, bankruptcy or any
other activities conducted or threatened to be conducted to or by the Borrower
which may prejudice the safety of loan hereunder.

     

    8. The
prior written notice to the Lender and the appropriate protection measures shall
be necessary for any other events except those listed above, which including but
not limited to the production stopping, suspension of business operation,
cancellation of business licenses, the involvement of illegal activities by the
legal representative or principal of the Borrower, the pending arbitration or
other legal proceedings, the substantial difficulties for business operation and
the deterioration of financial conditions.

     

    9. Any
guarantee or mortgage provided by the Borrower for debts of any third party,
which may prejudice the Repayment of loan hereunder may, be subject to the prior
written notice to and approval by the Lender.

     

    10. The
Borrower may not surreptitiously withdrawn funds, transfer assets or shares to
escape the payment due to the Lender.

     

    11. Any
change to the name, legal representative, address, business scope of the
Borrower shall be notified to the Lender as quickly as
possible.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    12. The
Borrower shall provide other appropriate protection measures at the satisfaction
of the Lender if the warrantor hereunder suspends its business operation or is
shutting down, cancelled of business licenses, bankrupt or suffering losses
which prejudice it’s competent for the guarantee hereunder or the values of
subject matters of guarantee, pledge or lien have been decreased.

     

    13. The
related lawyer fees and costs of transport, insurance, evaluation, registration,
storage, appraisal or notarization hereunder shall be borne by the
Borrower.

     

    ARTICLE 5
EARLY REPAYMENT OF LOAN

     

    The early
repayment of loan shall be subject to the consent of The Lender. If agreed by
The Lender, the interest rate of such early repayment shall be the first of the
following manners:

    [(1) The
interest rate shall be calculated in accordance with the loan term hereunder and
the interest rate agreed by the Parties]

    (2) The
interest rate shall be floated ____ % higher than the base interest rate
stipulated herein during the term of the loan.

     

    ARTICLE 6
LIABILITY

     

    1. If any
losses suffered by the Borrower due to the delay supply of loan by the Lender by
violating the stipulation herein, damages shall be paid to the Borrower in
accordance with the amounts of such loan and the days delayed, the calculation
methods of such damages shall be those used for the calculation of interests for
delay repayment of loan.

     

    2. if the
Borrower fails to repay the due principal by violating the stipulation herein,
the default interest (“default interest of delay”) shall be imposed at the
interest rated agreed by the Parties plus 5% commencing from the due payment
date until the full payment of principal and interest including such default
interest, during such period, if the loan is made in RMB, the interest rate
shall be escalated accordingly when the benchmark interest rate is escalated by
the People’s Bank of China.

     

    3. if the
Borrower fails to use the loan hereunder for the purposes mentioned herein, the
default interest (“default interest of breach”) shall be imposed at the interest
rated agreed by the Parties plus 5 % commencing from the due payment date until
the full payment of principal and interest including such default interest,
during such period, if the loan is made in RMB, the interest rate shall be
escalated accordingly when the benchmark interest rate is escalated by the
People’s Bank of China.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4. The
compound interest may be imposed by the Lender on the interest due and unpaid in
accordance with the rules of the People’s Bank of China. “Compound Interest”
mentioned above include the interest (including the default interest of breach)
due and unpaid occurred during the loan term and the interest (including the
default interest of breach and default interest of delay) due and unpaid
occurred upon the expiration of loan term. The compound rate of the interest due
and unpaid occurred during the loan term shall be calculated on the basis of
interest rate agreed by the Parties during the loan term, and shall be
calculated on the basis of delay repayment upon the expiration of loan
term.

     

    5. If any
provisions herein has been violated by the Borrower, the Lender may be entitled
to require the rectification by the Borrower with the appropriate time limit, to
suspend the supply of loan, to make early recovery of loan supplied, or to
announce that any other loans under any other loan agreement between the Lender
and the Borrower become due immediately or to take any other appropriate
protection measures.

     

    6. If any
of the warrantors violating any provisions under the corresponding surety
agreement entered into by such warrantor, the Lender may suspend the supply of
loan, to make early recovery of loan supplied or take any other appropriate
protection measures.

     

    7. if the
creditor’s rights of the Lender hereunder have to be fulfilled in the form of
arbitration or any other legal proceedings due to the breach of the Borrower,
all expenses suffered by the Lender therefrom, including but not limited to the
lawyer fees, travel expenses or any other costs, shall be indemnified by the
Borrower.

     

    ARTICLE 7
GUARANTEE

     

    The loan
hereunder shall be guaranteed in the form of maximum pledge guarantee with a
separate guarantee agreement to be executed separately.

     

    ARTICLE 8
DISPUTE RESOLUTION

     

    Any
dispute between the Parties arising out of the performance hereof shall be
settled thorough amiable negotiation or in the first of the following
manners:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    1.
Litigation with the exclusive jurisdiction by the People’s Court where the
Lender is incorporated; or

     

    2.
Arbitration in accordance with its arbitration rules.

     

    During
such litigation or arbitration, any other parts of this Agreement unrelated to
such dispute shall be performed uninterrupted.

     

    ARTICLE 9
MISCELLANEOUS

     

    None.

     

    ARTICLE
10 EFFECTIVENESS

     

    This
Agreement shall come into effect on the date signed or sealed by the Parties
hereto.

     

    ARTICLE
11 COPIES

     

    This
Agreement shall be executed in three copies, each Party shall have one and each
warrantor shall have one copy, all those shall have the same legal
effect.

     

    The
Lender has noted that the Borrower shall make thorough reading and comprehensive
understanding on the provisions herein and has made the corresponding
explanation and interpretation at the request of the Borrower. Finally, there is
not any dispute or controversy on this Agreement between the Parties
hereto.

    

    
      
        	
                /s/ GAO Ren

              	 
      
	
                Legal
      Representative: GAO Ren

              	 
      
	
                Heilongjiang
      Lanxi Sunrise Linen Textile Industry Co., Ltd.

              	 
      
	
                Dated:
      March 18, 2009

              	 
      
	 
      	 
      
	
                /s/ ZHAO Yongyang

              	 
      
	
                Legal
      Representative: ZHAO Yongyang

              	 
      
	
                Lanxi
      Branch, Agricultural Bank of China

              	 
      
	
                Dated:
      March 18, 2009

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]