Document:

ex10_9.htm

Exhibit 10.9

	
DATED

	
July 27, 2010

CME Media Services Limited

- and -

Dave Sturgeon

	  	
AMENDED AND RESTATED CONTRACT OF EMPLOYMENT

	  

  

  

  

AMENDED AND RESTATED CONTRACT OF EMPLOYMENT AND STATEMENT OF PARTICULARS PURSUANT TO SECTION 1 OF THE EMPLOYMENT RIGHTS ACT 1996 (the “Contract”)

	
Name and Address of Employer:

	  	
CME Media Services Limited, 5 Fleet Place, London EC4M 7RD, United Kingdom (the “Company”)

	 	 	 
	
Name and Address of Employee:

	  	
Dave Sturgeon, residing at [address redacted]

	 	 	 
	
Date this Contract takes effect:

	  	
August 1, 2010

	
1

	
COMMENCEMENT OF AND CONDITIONS TO EMPLOYMENT

	
1.1

	
Subject to clause 1.2 below, with effect from August 1, 2010 (the “Effective Date”), your contract of employment with the Company dated June 19, 2009 shall be amended and restated as set out in this Contract.  Your period of employment since October 3, 2005 shall count as continuous employment hereunder.

	
1.2

	
You shall establish to the Company’s satisfaction (through production of original documents reasonably requested by us) that you are entitled to live and work in the Czech Republic without any additional approvals. You will notify the Company immediately if you cease to be so entitled at any time during your employment with the Company.

	
1.3

	
You represent and warrant that you are not bound by or subject to any contract, court order, agreement, arrangement or undertaking which in any way restricts or prohibits you from entering into this Contract or performing your duties under it.

	
2

	
JOB TITLE AND DUTIES

	
2.1

	
Your job title is Finance Director of CME Media Services Limited and Deputy Chief Financial Officer of the CME Group reporting to the Chief Financial Officer of the CME Group.   You shall also perform the role of Chief Financial Officer of the broadcast division of the CME Group. For purposes of this Contract, the “CME Group” shall mean Central European Media Enterprises Ltd. (“CME Ltd.”) and/or any Associated Company (as defined below).

	
2.2

	
Your main duties are:

	
  

	
2.2.1

	
management of all aspects of the Company’s financial activities;

	
  

	
2.2.2

	
management and oversight of the group finance and tax functions of the CME Group, including but not limited to directing activities in the areas of financial reporting, accounting and tax for the CME Group;

	
  

	
2.2.3

	
management and oversight of the country and divisional finance operations of the CME Group;

	
  

	
2.2.4

	
acting as statutory director of such entities of the CME Group as may be determined from time to time;

	
  

	
2.2.5

	
undertaking tasks or duties delegated by the Chief Financial Officer of the CME Group from time to time;

  

1

  

	
  

	
2.2.6

	
undertaking such additional tasks in respect of the business of the Company as the President and Chief Executive Officer or the Chief Financial Officer of the CME Group directs from time to time; and

	
  

	
2.2.7

	
travelling to such countries as directed by the President and Chief Executive Officer or the Chief Financial Officer of the CME Group to undertake tasks specified by him.  In addition to your main duties you will be required to carry out such other duties consistent with your position as the Company may from time to time reasonably require.

	
2.3

	
You shall use your best endeavours to promote and protect the interests of the CME Group and shall not do anything that is harmful to those interests.

	
2.4

	
You shall devote the whole of your working time (unless prevented by ill-health or accident or otherwise directed by the Company) to the duties of this Contract and you shall not be directly or indirectly interested or concerned in any manner in any other business (other than holding as a bona-fide personal investment equity in any company whose shares are listed on any recognised exchange or does not otherwise contravene clause 17) except with the Company’s prior written consent. If such consent is given, you must provide the Company with the number of hours worked for any other employer each month.

	
3

	
PLACE OF WORK

You will be based in the Company’s branch office in Prague, Czech Republic. However, it is agreed that your position will require that you spend extensive time travelling for the proper performance of your duties.

	
4

	
REMUNERATION

	
4.1

	
From the Effective Date, your basic salary is CZK 7,800,000 per year, payable monthly in arrears by credit transfer into your bank account after all necessary deductions for relevant taxes and social security payments. Your salary will be reviewed on an annual basis. Any increase is entirely at the Company’s discretion.

	
4.2

	
You shall be entitled to participate in the CME Management Compensation Policy in effect from time to time (the “Policy”). The amount, if any, of any bonus awarded pursuant to the Policy will accrue from the Effective Date and shall be determined by the President and Chief Executive Officer of the CME Group, pursuant to the rules of the Policy. Any bonus awarded will be based on a figure representing 50% of your gross annual salary.

	
5

	
OTHER BENEFITS

	
5.1

	
You are entitled to membership of such insurance schemes (each referred to below as an “insurance scheme”) provided by the Company from time to time, including:

	
  

	
5.1.1

	
a medical and dental expenses insurance scheme providing such cover for you and your spouse/partner and any children under the age of eighteen (18) as the Company may from time to time notify to you;

  

2

  

	
  

	
5.1.2

	
a salary continuance on long-term disability insurance scheme providing such cover for you as the Company may from time to time notify to you; and

	
  

	
5.1.3

	
a life insurance scheme providing such cover for you as the Company may from time to time notify to you.

	
5.2

	
Benefits shall be subject to the terms of any applicable insurance policy and are conditional upon your complying with and satisfying any applicable requirements of the insurers or other benefits provider.  Copies of these rules and policies and particulars of the requirements shall be provided to you on request.  The Company shall not have any liability to pay any benefit to you under any insurance scheme unless it receives payment of the benefit from the insurer under the scheme.

	
5.3

	
Any insurance scheme which is provided for you is also subject to the Company’s right to alter the cover provided or any term of the scheme or to cease to provide (without replacement) the scheme at any time if in the reasonable opinion of the Company your state of health is or becomes such that the Company is unable to insure the benefits under the scheme at the normal premiums applicable.

	
5.4

	
The provision of any insurance scheme or any benefits hereunder does not in any way prevent the Company from lawfully terminating this Contract in accordance with the provisions in clause 9 even if to do so would deprive you of membership of or cover under any such scheme or benefit.

	
5.5

	
For a period of three years from the Effective Date (the “Allowance Period”), the Company shall pay you a monthly rental allowance of CZK 124,000 to be payable in monthly instalments at the same time and by the same method as your salary is paid (the “Monthly Allowance”).

	
6

	
EXPENSES

The Company shall reimburse you for all reasonable expenses incurred by you in the proper performance of your duties under this Contract on production of appropriate receipts in accordance with the CME Group Expenses Policy in effect from time to time.

	
7

	
HOURS OF WORK

Your normal working hours are 40 hours per week Monday to Friday together with such additional hours as may be necessary for the proper performance of your duties. This may include working in the evenings, outside normal office hours, at weekends or on public holidays.  No additional pay or time off will be permitted.

	
8

	
HOLIDAYS

	
8.1

	
You are entitled to 30 days’ holiday per annum (in addition to public holidays).

	
8.2

	
Your entitlement to holiday accrues pro rata on an annual basis as calculated from 1 April until 31 March (inclusive) each year (the “Holiday Year”).

	
8.3

	
On termination, you will be paid only for accrued vacation in the relevant Holiday Year and not for vacation carried over from the previous year.

 

  

3

  

 

	
8.4

	
The Company may also refuse to allow you to take holiday in circumstances where it would be inconvenient to the business of the Company. If, in exceptional circumstances, the Company is forced to cancel holiday previously booked by you, all reasonable and properly documented accommodation, reservation and travel expenses incurred by you in connection therewith up to the date of cancellation that are not otherwise refundable will be reimbursed by the Company.

	
9

	
TERMINATION

	
9.1

	
You may terminate this Contract on giving the Company twelve months’ notice in writing, to expire at any time. The Company is required to give you twelve months’ notice in writing, to expire at any time.

	
9.2

	
In the event you give notice of termination pursuant to this clause 9, the Company may elect to provide you with payment in lieu of notice.  This payment will be  comprised solely of your basic salary (at the rate payable when this option is exercised) in respect of the portion of the notice period remaining at the time the Company exercises this option and any earned but unpaid bonus awarded in accordance with clause 4.2 hereof. All payments made pursuant to this clause 9.2 shall be subject to deductions for income tax and social security contributions as appropriate.  You will not, under any circumstances, have any right to payment in lieu of notice unless the Company has exercised its option to pay in lieu of notice under this clause 9.2.

	
9.3

	
If the Company gives notice of termination (other than Termination for Cause (as defined below)), the Contract will terminate with immediate effect and the Company will make a payment in lieu of notice.  In the event of any such termination without cause by the Company, payment will be comprised of your basic salary (at the rate payable when this option is exercised) and target bonus in respect of the notice period, the Monthly Allowance for a period equal to the lesser of (i) the number of months remaining in the Allowance Period; or (ii) twelve months, together with any accrued bonus as of the notice date and any earned but unpaid bonus awarded in accordance with clause 4.2 hereof. In addition, you shall be entitled to medical and dental insurance as provided in clause 5.1.1 for a period of twelve months following the date on which this Contract is terminated pursuant to this clause 9.3. All payments made pursuant to this clause 9.3 shall be subject to deductions for income tax and social security contributions as appropriate.

	
9.4

	
The Company may terminate this Contract due to Termination for Cause without notice, payment in lieu of notice or any other payment whatsoever. “Termination for Cause”  means your (i) conviction of a felony or entering a plea of nolo contendere (or its equivalent) with respect to a charged felony; (ii) gross negligence, recklessness, dishonesty, fraud, wilful malfeasance or wilful misconduct in the performance of your duties under this Contract; (iii) wilful misrepresentation to the shareholders or directors of CME Ltd. that is injurious to CME Ltd.; (iv) wilful failure without reasonable justification to comply with a reasonable written instruction of the President and Chief Executive Officer or the Chief Financial Officer of the CME Group; or (v) a material breach of your duties or obligations under this Contract. The Company may, in its reasonable judgment, suspend you on full pay during any investigation that the Company may undertake into any fact or circumstance which could lead to your Termination for Cause. Notwithstanding the foregoing, a termination shall not be treated as Termination for Cause unless the Company has delivered a written notice to you stating that it intends to terminate your employment due to Termination for Cause and specifying the basis for such termination.

  

4

  

	
9.5

	
Upon the termination by whatever means of this Contract you shall immediately return to the Company all documents, computer media and hardware, credit cards, mobile phones and communication devices, keys and all other property belonging to or relating to the business of the Company which is in your possession or under your power or control and you must not retain copies of any of the above.

	
10

	
SUSPENSION

	
10.1

	
The Company may suspend you from your duties on full pay to allow the Company to investigate any bona-fide complaint made against you in relation to your employment with the Company.

	
10.2

	
Provided you continue to enjoy your full contractual benefits and receive your pay in accordance with this Contract, the Company may in its absolute discretion do all or any of the following during the notice period or any part of the notice period, after you or the Company have given notice of termination to the other, without breaching this Contract or incurring any liability or giving rise to any claim against it:

	
  

	
10.2.1

	
exclude you from the premises of any company of the CME Group;

	
  

	
10.2.2

	
require you to carry out only specified duties (consistent with your status, role and experience) or to carry out no duties;

	
  

	
10.2.3

	
announce to any of its employees, suppliers, customers and business partners that you have been given notice of termination or have resigned (as the case may be);

	
  

	
10.2.4

	
prohibit you from communicating in any way with any or all of the suppliers, customers, business partners, employees, agents or representatives of the CME Group until your employment has terminated except to the extent that you are authorised by the General Counsel of CME Ltd. in writing; and

	
  

	
10.2.5

	
require you to comply with any other reasonable conditions imposed by the Company.

	
10.3

	
You will continue to be bound by all obligations owed to the Company under this Contract until termination of this Contract in accordance with clause 9 or such later date as provided herein.

	
11

	
CONFIDENTIAL INFORMATION

	
11.1

	
You agree during and after the termination of your employment not to use or disclose to any person (and shall use your best endeavours to prevent the use, publication or disclosure of ) any confidential information:

	
  

	
11.1.1

	
concerning the business of the CME Group and which comes to your knowledge during the course of or in connection with your employment or your holding office with the CME Group; or

  

5

  

	
  

	
11.1.2

	
concerning the business of any client or person having dealings with the CME Group and which is obtained directly or indirectly in circumstances where the CME Group is subject to a duty of confidentiality.

	
11.2

	
For the purposes of clause 11.1 above, information of a confidential or secret nature includes but is not limited to information disclosed to you or known, learned, created or observed by you as a consequence of or through your employment with the Company, not generally known in the relevant trade or industry about any member of the CME Group’s business activities, services and processes, including but not limited to information concerning advertising, sales promotion, publicity, sales data, research, programming and plans for programming, finances, accounting, methods, processes, business plans (including prospective or pending licence applications or investments in licence holders or applicants), client or supplier lists and records, potential client or supplier lists, and client or supplier billing.

	
11.3

	
This clause shall not apply to information which is:

	
  

	
11.3.1

	
used or disclosed in the proper performance of your duties or with the consent of the Company;

	
  

	
11.3.2

	
ordered to be disclosed by a court of competent jurisdiction or otherwise required to be disclosed by law or pursuant to the rules of any applicable stock exchange; or

	
  

	
11.3.3

	
in or comes into the public domain (otherwise than due to a default by you).

	
12

	
INTELLECTUAL PROPERTY

	
12.1

	
You shall assign with full title your entire interest in any Intellectual Property Right (as defined below) to the Company to hold as absolute owner.

	
12.2

	
You shall communicate to the Company full particulars of any Intellectual Property Right in any work or thing created by you and you shall not use, license, assign, purport to license or assign or disclose to any person or exploit any Intellectual Property Right without the prior written consent of the Company.

	
12.3

	
In addition to and without derogation of the covenants imposed by the Law of Property (Miscellaneous Provisions) Act 1994, you shall prepare and execute such instruments and do such other acts and things as may be necessary or desirable (at the request and expense of the Company) to enable the Company (or its nominee) to obtain protection of any Intellectual Property Right vested in the Company in such parts of the world as may be specified by the Company (or its nominee) and to enable the Company to exploit any Intellectual Property Right vested in it to its best advantage.

	
12.4

	
You hereby irrevocably appoint the Company to be your attorney in your name and on your behalf to sign, execute or do any instrument or thing and generally to use your name for the purpose of giving to the Company (or its nominee) the full benefit of the provisions of this clause and a certificate in writing signed by any director or the secretary of the Company that any instrument or act relating to such Intellectual Property Right falls within the authority conferred by this clause shall be conclusive evidence that such is the case in favour of any third party.

	
12.5

	
You hereby waive all of your moral rights (as defined in the Copyright, Designs and Patents Act 1988) in respect of any act by the Company and any act of a third party done with the Company’s authority in relation to any Intellectual Property Right which is or becomes the property of the Company.

  

6

  

	
12.6

	
“Intellectual Property Right” means a copyright, know-how, trade secret and any other intellectual property right of any nature whatsoever throughout the world (whether registered or unregistered and including all applications and rights to apply for the same) which:

	
  

	
12.6.1

	
relates to the business or any product or service of the Company; and

	
  

	
12.6.2

	
is invented, developed, created or acquired by you (whether alone or jointly with any other person) during the period of your employment with the Company;

and for these purposes and for the purposes of the other provisions of this clause 12, references to the Company shall be deemed to include references to any Associated Company (as defined in clause 17.11 below).

	
13

	
COLLECTIVE AGREEMENTS/WORKFORCE AGREEMENTS

There are no collective agreements or workforce agreements applicable to you or which affect your terms of employment.

	
14

	
DATA PROTECTION

	
14.1

	
You acknowledge that the Company will hold personal data relating to you.  Such data will include your employment application, address, references, bank details, performance appraisals, work, holiday and sickness records, next of kin, salary reviews, remuneration details and other records (which may, where necessary, include sensitive data relating to your health and data held for equal opportunities purposes).  The Company will hold such personal data for personnel administration and management purposes and to comply with its obligations regarding the retention of your records.  Your right of access to such data is as prescribed by law.

	
14.2

	
By signing this Contract, you agree that the Company may process personal data relating to you for personnel administration and management purposes and may, when necessary for those purposes, make such data available to its advisors, to third parties providing products and/or services to the Company and as required by law.

	
15

	
CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

Unless the right of enforcement is expressly granted, it is not intended that a third party should have the right to enforce the provisions of this Contract pursuant to the Contracts (Rights of Third Parties) Act 1999.

  

7

  

	
16

	
MONITORING OF COMPUTER SYSTEMS

	
16.1

	
The Company will monitor messages sent and received via the email and voicemail system to ensure that employees are complying with the CME Group’s Information Technology policy in effect from time to time.

	
16.2

	
The Company reserves the right to retrieve the contents of messages for the purpose of monitoring whether the use of the email system is in accordance with the Company’s best practice, whether use of the computer system is legitimate, to find lost messages or to retrieve messages lost due to computer failure, to assist in the investigations of wrongful acts or to comply with any legal obligation.

	
16.3

	
You should be aware that no email or voicemail sent or received through the Company’s system is private.  The Company reserves and intends to exercise its right to review, audit, intercept, access and disclose on a random basis all messages created from it or sent over its computer system for any purpose.  The contents of email or voicemail so obtained by the Company in the proper exercise of these powers may be disclosed without your permission.  You should be aware that the emails or voicemails or any document created on the Company’s computer system, however confidential or damaging, may have to be disclosed in court or other proceedings.  An email which has been trashed or deleted can still be retrieved.

	
16.4

	
The Company further reserves and intends to exercise its right to monitor all use of the internet through its information technology systems, to the extent authorised by law.  By your signature to this Contract, you consent to any such monitoring.

	
17

	
POST-EMPLOYMENT RESTRICTIONS

	
17.1

	
For the duration of your employment with the Company and for a period of six (6) months after the termination thereof for any cause, you shall not:

	
17.2

	
either on your own account or on behalf of any other person, firm or company, directly or indirectly, carry on or be engaged, concerned or interested in any business the same as that of the CME Group or which is competitive with any CME Business (as hereinafter defined) and with which you were actively involved at any time in the twelve months preceding the termination of your employment within the territories in which the CME Group operates or is considering to operate (the “Territory”);

	
17.3

	
seek to do business and/or do business, perform any services or supply any goods or seek to do so, in competition with any company of the CME Group with any person, firm or company who at any time during the twelve months preceding the termination of your employment was a client, customer or supplier of any company of the CME Group and with whom during that period you or another person on your behalf had contact or dealings in the ordinary course of business or were aware of in the course of your employment;

	
17.4

	
interfere or seek to interfere or take such steps as may or are calculated to interfere with the continuance of supplies (whether services or goods) or any rights of purchase, sale, import, distribution or agency enjoyed by or supplied to any company of the CME Group, or the terms on which they are so supplied or enjoyed, from any person, firm or company supplying or offering rights to any company of the CME Group at any time during the period of twelve months prior to such termination;

  

8

  

	
17.5

	
solicit, entice or procure or endeavour to solicit, entice or procure any employee of the CME Group to breach his contract of employment or any person to breach his contract for services with the Company or any Associated Company;

	
17.6

	
in relation to any CME Business in the Territory, solicit, employ, engage or offer or cause to be employed or engaged, whether directly or indirectly, any employee, director or consultant of any company of the CME Group engaged or employed at the date of termination of your employment or at any time during the twelve months preceding such termination who has knowledge of confidential aspects of the business of the CME Group, and with whom, at any time during the period of twelve months prior to such termination, you had material dealings and/or

	
17.7

	
you shall not at any time falsely represent yourself as being connected with or interested in the Company or any Associated Company or in the business of the CME Group.

	
17.8

	
For the duration of your employment with the Company, you shall not, either on your own account or through any other person, firm or company, directly or indirectly,  carry on, accept or be engaged, concerned or interested in, any opportunity (a “Corporate Opportunity”) in Central and Eastern Europe and any other country that CME Ltd. has identified from time to time (i) which is in the line of business of any company of the CME Group from time to time (including, without limitation, securing broadcasting licenses, operating television stations, broadcasting on any distribution platform, selling advertising on any platform, developing and operating internet sites, providing production services, producing programming and other content for broadcast on any platform or for exhibition, distributing or licensing content for exhibition, home entertainment or otherwise, providing other programming services, owning and operating cinemas) (each a “CME Business”) or in any Ancillary Business (ii) which arises or becomes known to you as a result of your employment by the Company, or (iii) in which it can reasonably be expected that the CME Group has an interest or expectancy (including any Ancillary Business) unless (a) you have presented the Corporate Opportunity to the Board of Directors of CME Ltd. in reasonable detail and (b) the Board of Directors has decide not to pursue such Corporate Opportunity after such presentation by you.

For purposes of this clause, “Ancillary Business” means any business or opportunity that is related to any CME Business, can reasonably be expected to a customer or supplier of goods or services of any such CME Business in the usual and ordinary course of business, or is otherwise necessary to support the primary activities of any CME Business.

	
17.9

	
Each of the restrictions in this clause shall be enforceable independently of each other and its validity shall not be affected if any of the others is invalid.  If any of the restrictions is void but would be valid if some part of the restriction were deleted, the restriction in question shall apply with such modification as may be necessary to make it valid.

	
17.10

	
The restrictions set forth in this clause 17 shall not apply if the Company is in breach of this Contract.

	
17.11

	
For the purposes of this Contract, “Associated Company” shall mean a subsidiary (as defined by the Companies Act 1985 as amended) and any other company which is for the time being a holding company (as defined by the Companies Act 1985 as amended) of the Company or another subsidiary of such holding company.

  

9

  

	
18

	
INDEMNITY

	
18.1

	
The Company will indemnify you and pay on your behalf all Expenses (as defined below) incurred by you in any Proceeding (as defined below), whether the Proceeding which gave rise to the right of indemnification pursuant to this Contract occurred prior to or after the date of this Contract provided that you shall promptly notify the Company of such Proceeding and the Company shall be entitled to participate in such Proceeding and, to the extent that it wishes, jointly with you, assume the defence thereof with counsel of its choice.  This indemnification shall not apply if it is determined by a court of competent jurisdiction in a Proceeding that any losses, claims, damages or liabilities arose primarily out of your gross negligence, wilful misconduct or bad faith.

	
18.2

	
The term ”Proceeding” shall include any threatened, pending or completed action, suit or proceeding, or any inquiry or investigation, whether brought in the name of the Company or otherwise and whether of a civil, criminal, administrative or investigative nature, including, but not limited to, actions, suits or proceedings brought under or predicated upon any securities laws, in which you may be or may have been involved as a party or otherwise, and any threatened, pending or completed action, suit or proceeding or any inquiry or investigation that you in good faith believe might lead to the institution of any such action, suit or proceeding or any such inquiry or investigation, by reason of the fact that you are or were serving at the request of the Company as a director, officer or manager of any other Associated Company, whether or not you are serving in such capacity at the time any liability or expense is incurred for which indemnification or reimbursement can be provided under this Contract.

	
18.3

	
The term "Expenses” shall include, without limitation thereto, expenses (including, without limitation, attorneys fees and expenses) of investigations, judicial or administrative proceedings or appeals, damages, judgments, fines, penalties or amounts paid in settlement by or on behalf of you and any expenses of establishing a right to indemnification under this Contract.

	
18.4

	
The Expenses incurred by you in any Proceeding shall be paid by the Company as incurred and in advance of the final disposition of the Proceeding at your written request.  You hereby agree and undertake to repay such amounts if it shall ultimately be decided in a Proceeding that you are not entitled to be indemnified by the Company pursuant to this Contract or otherwise.

	
18.5

	
The indemnification and advancement of Expenses provided by this Contract shall not be deemed exclusive of any other rights to which you may be entitled under the Company’s Articles of Association or the constituent documents of any other Associated Company for which you are serving as a director, officer or manager at the request of the Company, the laws under which the Company was formed, or otherwise, and may be exercised in any order you elect and prior to, concurrently with or following the exercise of any other such rights to which you may be entitled, including pursuant to directors’ and officers’ insurance maintained by the Company, both as to action in official capacity and as to action in another capacity while holding such office, and the exercise of such rights shall not be deemed a waiver of any of the provisions of this Contract.  To the extent that a change in law (whether by statute or judicial decision) permits greater indemnification by agreement than would be afforded under this Contract, it is the intent of the parties hereto that you shall enjoy by this Contract the greater benefit so afforded by such change.  The provisions of this clause shall survive the expiration or termination, for any reason, of this Contract and shall be separately enforceable.

  

10

  

	
19

	
GENERAL

	
19.1

	
You hereby authorise the Company to deduct from any salary payable to you any sums owing by you to the Company.

	
19.2

	
As from the Effective Date, all other agreements or arrangements between you and the Company in effect prior to the Effective Date shall cease to have effect.

	
19.3

	
This Contract shall be governed by and construed in accordance with English law. The parties agree to submit to the non-exclusive jurisdiction of the English courts in respect of any dispute hereunder.

The Company and Dave Sturgeon agree to the terms set out above.

	
Signed as a Deed by CME Media Services Limited acting by:

	 	  
	  	 	  
	  	 	  
	
Oliver Meister, Director

	 	
/s/ Oliver Meister

	  	 	  
	  	 	  
	
Mark Wyllie, Attorney

	 	
/s/ Mark Wyllie

	  	 	  
	
Signed as a Deed by Dave Sturgeon

	 	
/s/ Dave Sturgeon

	  	 	  
	
in the presence of:

	 	  
	  	 	  
	
Witness signature:

	 	

/s/ Kate King

	  	 	  
	
Name:

	 	
K. King

	  	 	  
	
Address:

	 	 
	  	 	  
	  	 	  
	
Occupation:

	 	
Office Manager

 

 

11Execution
Version

     

    J.P.
MORGAN SECURITIES INC.

    270 Park
Avenue

    New York,
New York 10017

     

    JPMORGAN
CHASE BANK, N.A.

    270 Park
Avenue

    New York,
New York 10017

     

    WELLS
FARGO CAPITAL FINANCE, LLC

    2450
Colorado Avenue, Suite 3000W

    Santa
Monica, CA 90404

     

     July
27, 2010

     

    Commitment
Letter

    

    U.S.
Concrete, Inc.

    2925
Briarpark, Suite 1050

    Houston,
Texas 77042

    

    Attention:  Michael
Harlan

     

    Ladies
and Gentlemen:

     

    You have
advised J.P. Morgan Securities Inc. (“JPMorgan”), JPMorgan
Chase Bank, N.A. (“JPMorgan Chase Bank”)
and Wells Fargo Capital Finance, LLC (“Wells Fargo”;
together with JPMorgan and JPMorgan Chase Bank, the “Commitment Parties”)
that U.S. Concrete, Inc. and certain of its subsidiaries ( the “Company” or “you”) (i) have
commenced voluntary cases 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”), (ii) expect the Company and its domestic subsidiaries to be
reorganized pursuant to their Chapter 11 plan of reorganization (the “Plan”), (iii) intend
to obtain a $75,000,000 senior secured revolving credit facility (the “Facility”) and (iv)
intend to obtain $50,000,000 in cash proceeds from the issuance of senior
secured convertible notes (the “Notes”) in a private
placement pursuant to Section 4(2) and Regulation D of the Securities Act, with
such proceeds from clauses (iii) and (iv) being used (x) to refinance the
Company’s outstanding credit facilities and its emergence from Chapter 11 of the
United States Bankruptcy Code and (y) for working capital and general corporate
purposes to the extent permitted by the Definitive Documentation (as defined
herein).  In connection therewith, the Company has requested that
JPMorgan and JPMorgan Chase Bank agree to structure, arrange and syndicate the
Facility.  Capitalized terms used but not defined herein have the
meanings assigned to them in the Term Sheet (as defined below).

     

    Commitment
Letter

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    2

       

    JPMorgan
is pleased to advise you that it is willing to act as joint lead arranger and
sole bookrunner for the Facility, each of JPMorgan Chase Bank and Wells Fargo is
pleased to advise you of its several, but not joint, commitment, upon the
effectiveness of this Commitment Letter, to provide 50% of the Facility, and
Wells Fargo is pleased to advise you that it is willing to act as joint lead
arranger and the documentation agent for the Facility.  This
Commitment Letter and the Summary of Terms and Conditions attached as
Exhibit A hereto (the “Term Sheet”) set
forth the principal terms and conditions on and subject to which each of
JPMorgan Chase Bank and Wells Fargo is willing to make available the
Facility.

     

    It is
agreed that JPMorgan and Wells Fargo will act as the joint lead arrangers in
respect of the Facility (in such capacities, the “Lead Arrangers”),
with JPMorgan having left lead placement in any marketing materials or other
documentation used in connection with the Facility and Wells Fargo having right
lead placement, that JPMorgan will act as the sole bookrunner in respect of the
Facility, that JPMorgan Chase Bank will act as the sole administrative agent in
respect of the Facility and that Wells Fargo will act as the documentation agent
in respect of the Facility.  You agree that, as a condition to the
commitments and agreements hereunder, no other agents, co-agents or arrangers
will be appointed, no other titles will be awarded and no compensation (other
than that expressly contemplated by the Term Sheet and Fee Letters referred to
below) will be paid in connection with the Facility unless you and we shall so
agree.

     

    JPMorgan
intends to syndicate the Facility to a group of financial institutions (together
with JPMorgan Chase Bank and Wells Fargo, the “Lenders”) identified
by JPMorgan in consultation with you.  JPMorgan intends to commence
syndication efforts promptly, and you agree to use commercially reasonable
efforts until the date that is sixty (60) days after the Closing Date of the
Facility to assist JPMorgan in completing a reasonably satisfactory
syndication.  Such assistance shall include (a) your using
commercially reasonable efforts to ensure that the syndication efforts benefit
from the existing banking relationships of you and your subsidiaries,
(b) assisting JPMorgan in one or more meetings or conference calls hosted
by JPMorgan with the Lenders, (c) as set forth in the next paragraph,
assistance from you and your subsidiaries in the preparation of customary
materials to be used in connection with the syndication (collectively, with the
Term Sheet, the “Information
Materials”) and (d) entry into confidentiality agreements with
prospective Lenders that are in form and substance reasonably acceptable to you,
in each case, until the date that is sixty (60) days after the Closing Date of
the Facility.  Each of JPMorgan Chase Bank and Wells Fargo agrees that
neither the commencement nor completion of the syndication of the Facility is a
condition to its commitments hereunder.  Notwithstanding the Lead
Arrangers’ right to syndicate the Facility and receive commitments with respect
thereto, no assignment of commitments of the Commitment Parties on or prior to
the Closing Date shall reduce or release such Commitment Party’s obligation to
fund its entire commitment in the event any assignee of such Commitment Party
shall fail to do so on the Closing Date.

     

    You will
use commercially reasonable efforts to assist JPMorgan in preparing Information
Materials, including confidential information memoranda, for distribution to
prospective Lenders.  If reasonably requested, you also will assist
JPMorgan in preparing an additional version of the Information Materials (the
“Public-Side
Version”) to be used by prospective Lenders’ public-side employees and
representatives (“Public-Siders”) who
do not wish to receive material non-public information (within the meaning of
United States federal securities laws) with respect to you and your subsidiaries
and any of their respective securities (“MNPI”) and who may be
engaged in investment and other market related activities with respect to any
such entity’s securities or loans.  Before distribution of any
Information Materials, you agree to execute and deliver to JPMorgan (i) a letter
in which you authorize distribution of the Information Materials to a
prospective Lender’s employees willing to receive MNPI (“Private-Siders”) and
(ii) a separate letter in which you authorize distribution of the Public-Side
Version to Public-Siders and represent that no MNPI is contained
therein.  You also acknowledge that Commitment Party Public-Siders who
are publishing debt analysts may participate in any meetings held pursuant to
clause (b) of the preceding paragraph; provided that such
analysts shall not publish any information obtained from such meetings (i) until
the syndication of the Facility has been completed upon the making of
allocations by JPMorgan and JPMorgan freeing the Facility to trade or (ii) in
violation of any confidentiality agreement between you and the relevant
Commitment Party.  Except as set forth below, you and we agree that
unless specifically labeled “Public – Contains Public Information”, all
information, documentation or other data disseminated to prospective Lenders
under the Facility in connection with the marketing of the Facility, whether
through an Internet website (including, without limitation, an IntraLinks
workspace), electronically, in presentations at meetings or otherwise, will
contain MNPI concerning the Company or its securities.

     

    Commitment
Letter

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    3

     

    The
Company agrees that the following documents may be distributed to both
Private-Siders and Public-Siders, unless the Company advises JPMorgan in writing
(including by email) within a reasonable time prior to their intended
distribution that such materials should only be distributed to
Private-Siders:  (a) administrative materials prepared by the
Commitment Parties for prospective Lenders (such as a lender meeting invitation,
lender allocation, if any, and funding and closing memoranda) and (b)
notification of changes in the terms of the Facility.  If you advise
JPMorgan that any of the foregoing should be distributed only to Private-Siders,
then Public-Siders will not receive such materials without your
consent.

    

    The
Company hereby authorizes JPMorgan and JPMorgan Chase Bank to distribute draft
and final definitive documentation with respect to the Facility to
Private-Siders and Public-Siders.

     

    JPMorgan,
in its capacity as a Lead Arranger, will manage, in consultation with you, all
aspects of the syndication, including, but not limited to, decisions as to the
selection of institutions to be approached and when they will be approached,
when their commitments will be accepted, which institutions will participate,
the allocation of the commitments among the Lenders and the amount and
distribution of fees among the Lenders.  In its capacity as a Lead
Arranger, JPMorgan will have no responsibility other than to arrange the
syndication as set forth herein and in no event shall any Commitment Party be
subject to any fiduciary or other implied duties
hereunder.  Additionally, the Company acknowledges and agrees that no
Commitment Party is advising the Company as to any legal, tax, investment,
accounting or regulatory matters in any jurisdiction.  The Company
shall consult with its own advisors concerning such matters and shall be
responsible for making its own independent investigation and appraisal of the
transactions contemplated hereby, and the Commitment Parties shall have no
responsibility or liability to the Company with respect thereto.

     

    To assist
JPMorgan in its syndication efforts, you agree to use commercially reasonable
efforts to promptly prepare and provide to JPMorgan all customary information
with respect to you and your subsidiaries, including all financial information
and projections (the “Projections”), as
JPMorgan may reasonably request in connection with the arrangement and
syndication of the Facility.  You hereby represent and covenant that
(a) all written information other than the Projections, budgets, estimates,
forward looking information or general market data (the “Information”) that
has been or will be made available to JPMorgan or JPMorgan Chase Bank by you or
any of your representatives is or will be, when furnished and taken as a whole,
complete and correct in all material respects and does not or will not, when
furnished and taken as a whole, contain any untrue statement of a material fact
or omit to state a material fact necessary in order to make the statements
contained therein not materially misleading in light of the circumstances under
which such statements are made and (b) the Projections that have been or
will be made available to JPMorgan or JPMorgan Chase Bank by you or any of your
representatives have been or will be prepared in good faith based upon
assumptions believed by you to be reasonable (it being understood that
Projections are inherently uncertain and actual results may be materially
different, and no assurance can be given that the projected results will be
realized).  You agree that if at any time prior to the execution of
definitive financing documentation with respect to the Facility any of the
representations in the preceding sentence would be incorrect in any material
respect if the Information and Projections were being furnished, and such
representations were being made, at such time, then you will promptly
supplement, or cause to be supplemented, the Information and Projections so that
such representations will be correct in all material respects at such
time.  You understand that in arranging and syndicating the Facility
JPMorgan and JPMorgan Chase Bank may use and rely on the Information and
Projections without independent verification thereof.

     

    Commitment
Letter

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    4

     

    As
consideration for the commitments and agreements of the Commitment Parties
hereunder, you agree to cause to be paid the nonrefundable fees described in the
Fee Letters dated the date hereof and delivered herewith (the “Fee
Letters”).

     

    Each
Commitment Party’s commitments and agreements hereunder are subject to:
(a) since May 31, 2010, there not occurring or becoming known to such
Commitment Party any event, development or circumstance that has had or could
reasonably be expected to have a material adverse effect on the business,
operations, property or financial condition of you and your subsidiaries, taken
as a whole; (b) such Commitment Party not becoming aware after the date
hereof of any information or other matter (including any matter relating to
financial models and underlying assumptions relating to the Projections)
affecting you and your subsidiaries that is inconsistent in a material and
adverse manner with any such information or other matter disclosed (taken as a
whole) to such Commitment Party prior to the date hereof or would materially impair
the syndication of the Facility; (c) our satisfaction with, and the
approval by the Bankruptcy Court, as necessary, of (1) the Facility and the
transactions contemplated thereby (including the repayment in full of the
obligations outstanding under the DIP Credit Agreement (as defined in the Term
Sheet)) and all definitive documentation in connection therewith, (2) all
actions to be taken, undertakings to be made, obligations to be incurred by the
Company and all liens to be granted by the Company in connection with the
Facility (all such approvals to be evidenced by the entry of one or more orders
of the Bankruptcy Court reasonably satisfactory in form and substance to the
Commitment Parties), which orders shall, among other things, approve the payment
by the Company of all of the fees that are provided for in the Fee Letters and
(3) the Plan; (d) the closing of the Facility on or before September 27, 2010;
(e) the closing of the Notes before, or concurrently with, the closing of the
Facility and (f) the other conditions set forth or referred to in the Term
Sheet.  The terms and conditions of the commitments hereunder and of
the Facility are not limited to those set forth herein and in the Term
Sheet.  Those matters that are not covered by the provisions hereof
and of the Term Sheet are subject to the approval and agreement of the
Commitment Parties and the Company.

     

    This
Commitment Letter shall not become effective until the entry of an order by the
Bankruptcy Court in the cases reasonably satisfactory to the Commitment Parties
(a) approving this Commitment Letter and (b) otherwise authorizing the Company
to execute, perform and incur its obligations under this Commitment Letter,
including the payment of fees and expenses as set forth herein and in the Fee
Letters and the provision of indemnities as set forth herein.

    
       

      Commitment
Letter

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    5

     

    You agree
(a) to indemnify and hold harmless the Commitment Parties, their affiliates
and their respective officers, directors, employees, affiliates, advisors,
agents and controlling persons (each, an “indemnified person”) from and against
any and all losses, claims, damages and liabilities to which any such
indemnified person may become subject arising out of or in connection with this
Commitment Letter, the Fee Letters, the Facility, or the use of the proceeds
thereof or any claim, litigation, investigation or proceeding relating to any of
the foregoing (any of the foregoing, a “Proceeding”),
regardless of whether any indemnified person is a party thereto or whether a
Proceeding is initiated by or on behalf of a third party or you or any of your
affiliates, and to reimburse each indemnified person promptly upon written
demand (including written documentation reasonably supporting such request) for
reasonable and documented out-of-pocket legal or other expenses incurred in
connection with investigating or defending any of the foregoing, provided that the
foregoing indemnity will not, as to any indemnified person, apply to (i) losses,
claims, damages, liabilities or related expenses to the extent they are found by
a final, non-appealable judgment of a court to arise from the willful misconduct
or gross negligence of such indemnified person, any affiliate of such
indemnified person or any officer, director, employee, advisor, agent or
controlling person of such indemnified person or such affiliate or (ii) disputes
solely among indemnified persons, (b) to reimburse each Commitment Party
and its affiliates promptly upon written demand (including written documentation
reasonably supporting such request for all reasonable and documented
out-of-pocket expenses (including due diligence expenses, syndication expenses,
consultant’s fees and expenses, travel expenses, and reasonable fees, charges
and disbursements of one counsel for the Commitment Parties, collectively,
exclusive of any local counsel)) incurred in connection with the Facility and
any related documentation (including, without limitation, this Commitment
Letter, the Fee Letters and the definitive financing documentation) or the
administration, amendment, modification or waiver thereof and (c) to reimburse
each Commitment Party and its affiliates promptly upon written demand (including
written documentation reasonably supporting such request) for all reasonable and
documented out-of-pocket expenses (including reasonable fees, charges and
disbursements of counsel for each of the Commitment Parties) in connection with
the enforcement of the Commitment Letter and the Fee Letters.  No
indemnified person shall be liable for any damages arising from the use by
others of Information or other materials obtained through electronic,
telecommunications or other information transmission systems.  In
addition, no indemnified person shall be liable for any special, indirect,
consequential or punitive damages in connection with this Commitment Letter, the
Fee Letters, the Facility or the use of the proceeds thereof.

     

    It is
understood and agreed that this Commitment Letter shall not constitute or give
rise to any obligation on the part the Commitment Parties or any of their
respective affiliates to provide any financing, except as expressly provided
herein.

     

    You
acknowledge and agree that each Commitment Party and its affiliates (the term
“Commitment Party” as used below in this paragraph being understood to include
such affiliates) may be providing debt financing, equity capital or other
services (including, but not limited to, financial advisory services) to other
persons or entities in respect of which you may have conflicting interests
regarding the transactions described herein and otherwise.  No
Commitment Party will use confidential information obtained from you by virtue
of the transactions contemplated hereby or its other relationships with you in
connection with the performance by such Commitment Party of services for other
companies, and no Commitment Party will furnish any such information to other
companies.  You also acknowledge that no Commitment Party has any
obligation to use in connection with the transactions contemplated hereby, or to
furnish to you, confidential information obtained from other persons or
entities.  You further acknowledge that each of JPMorgan and Wells
Fargo is a full service securities firm and each of JPMorgan and Wells Fargo may
from time to time effect transactions, for its own or its affiliates’ account or
the account of customers, and hold positions in loans, securities or options on
loans or securities of the Company and its affiliates and of other companies
that may be the subject of the transactions contemplated by this Commitment
Letter.

     

    Each
Commitment Party may employ the services of its affiliates in providing certain
services hereunder and, in connection with the provision of such services, may
exchange with such affiliates information concerning you and the other companies
that may be the subject of the transactions contemplated by this Commitment
Letter, and, to the extent so employed, such affiliates shall be entitled to the
benefits afforded such Commitment Party hereunder.

     

    Commitment
Letter

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    6

     

    This
Commitment Letter shall not be assignable by you without the prior written
consent of each Commitment Party (and any purported assignment without such
consent shall be null and void), is intended to be solely for the benefit of the
parties hereto and is not intended to confer any benefits upon, or create any
rights in favor of, any person other than the parties hereto and the indemnified
persons.  This Commitment Letter may not be amended or waived except
by an instrument in writing signed by you and each Commitment
Party.  This Commitment Letter may be executed in any number of
counterparts, each of which shall be an original, and all of which, when taken
together, shall constitute one agreement.  Delivery of an executed
signature page of this Commitment Letter by email or facsimile transmission
shall be effective as delivery of a manually executed counterpart
hereof.  This Commitment Letter and the Fee Letters are the only
agreements that have been entered into among us with respect to the Facility and
set forth the entire understanding of the parties with respect
thereto.

     

    This
Commitment Letter shall be governed by, and construed and interpreted in
accordance with, the laws of the State of New York.  The parties
hereto consent to the non-exclusive jurisdiction and venue of the state or
federal courts located in the City of New York.  Each party hereto
irrevocably waives, to the fullest extent permitted by applicable law, (a) any
objection that it may now or hereafter have to the laying of venue of any such
legal proceeding in the state or federal courts located in the City of New York
and (b) any right it may have to a trial by jury in any suit, action,
proceeding, claim or counterclaim brought by or on behalf of any party related
to or arising out of this Commitment Letter, the Fee Letters, the Term Sheet,
the transactions contemplated hereby or the performance of services
hereunder.

     

    This
Commitment Letter is delivered to you on the understanding that neither this
Commitment Letter, the Term Sheet or the Fee Letters nor any of their terms or
substance shall be disclosed, directly or indirectly, to any other person
(including, without limitation, other potential providers or arrangers of
financing) except (a) to your officers, directors, agents, advisors and
representatives who are directly involved in the consideration of this matter,
(b) as may be compelled or required in a judicial or administrative
proceeding (including in connection with approval by the Bankruptcy Court) or as
otherwise required by law (in which case you agree to (i) inform us promptly
thereof and (ii) use commercially reasonable efforts to maintain the
confidentiality of the compensation arrangements herein and in the Fee Letters
by making any necessary filings either under seal or in redacted form pursuant
to section 107(b) of the Bankruptcy Code or seeking confidential treatment of
such information) and (c) with respect to the Commitment Letter and Term Sheet
only, subject to an agreement to comply with the provisions of this paragraph,
to any advisor or counsel to any informal committee of noteholders or to any
official committee appointed in the bankruptcy cases and to the purchasers (and
their advisors) of the Notes.  Other than as required by law, each of
the Commitment Parties may not, without its prior written consent (not to be
unreasonably withheld, delayed or conditioned), be quoted or referred to in any
document, release or communication prepared, issued or transmitted by the
Company (including any entity controlled by, or under common control with, the
Company or any director, officer, employee or agent thereof).

     

    Each of
the Commitment Parties hereby notifies you that, pursuant to the requirements of
the USA Patriot Act, Title III of Pub. L. 107-56 (signed into law on October 26,
2001) (the “Patriot
Act”), it and each of the Lenders may be required to obtain, verify and
record information that identifies the Company and each Guarantor, which
information includes names and addresses and other information that will allow
such Commitment Party and each of the Lenders to identify the Company and each
Guarantor in accordance with the Patriot Act.  This notice is given in
accordance with the requirements of the Patriot Act and is effective for the
Commitment Parties and each of the
Lenders.

     

    The
compensation, reimbursement, indemnification and confidentiality provisions
contained herein and in the Fee Letters and any other provision herein or
therein which by its terms expressly survives the termination of this Commitment
Letter shall remain in full force and effect regardless of whether definitive
financing documentation shall be executed and delivered and notwithstanding the
termination of this Commitment Letter or the commitments hereunder.

     

    Commitment
Letter

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    7

     

    If the
foregoing correctly sets forth the terms of our agreement as will be submitted
to the Bankruptcy Court for approval, please indicate your acceptance of such
terms and of the Term Sheet and the Fee Letters by returning to us executed
counterparts hereof and of the Fee Letters not later than 5:00 p.m., New
York City time, on July 27, 2010.  The commitments of the Commitment
Parties hereunder and the agreement of JPMorgan hereunder to perform the
services contemplated herein are contingent upon (i) our receiving such executed
counterparts in accordance with the immediately preceding sentence by such date
and (ii) your obtaining Bankruptcy Court approval of this Commitment Letter as
contemplated above by July 30, 2010.  In the event that the initial
borrowing under the Facility does not occur on or before September 27, 2010,
then this Commitment Letter and the commitments hereunder shall automatically
terminate.

     

    We are
pleased to have been given the opportunity to assist you in connection with this
important financing.

     

    [Signature Page
Follows]

     

    Commitment
Letter

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      
        
          
            
              	
                      Very
      truly yours,

                    
	 
	
                      J.P.
      MORGAN SECURITIES INC.

                    
	 
      
	
                      By:

                    	
                      /s/ Raymond Gore

                    
	
                      Name:  Raymond
      Gore

                    
	
                      Title:  Senior
      Vice President

                    
	 
	
                      JPMORGAN
      CHASE BANK, N.A.

                    
	 
      	 
      
	
                      By:

                    	
                      /s/ Thomas M. Vertin

                    
	
                      Name:
      Tomas M. Vertin

                    
	
                      Title:  Senior
      Vice President

                    
	 
	
                      WELLS
      FARGO CAPITAL FINANCE, LLC

                    
	 
      	 
      
	
                      By:

                    	
                      /s/ Sanat Amladi

                    
	
                      Name:  Sanat
      Amladi

                    
	
                      Title:
      Vice
President

                    

            

          

        

      

    

     

    Accepted
and agreed to as of

    the date
first above written:

     

    
      U.S.
CONCRETE, INC.

    

     

    
      
        	
                By:

              	
                /s/ Michael W. Harlan

              
	
                Name: 
      Michael W. Harlan

              
	
                Title:   
      President and Chief Executive
Officer

              

      

    

     

    Commitment
Letter

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    EXHIBIT
A

    

    U.S.
CONCRETE, INC.

    

    Senior
Secured Revolving Credit Facility

    Summary
of Terms and Conditions

    _____________________

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  1.

                                	
                                  PARTIES

                                	 
      
	 
      	 
      	 
      
	 
      	
                                  Borrower:

                                	
                                  U.S.
      Concrete, Inc., as a reorganized Delaware corporation (the “Borrower”)
      pursuant to the Chapter 11 plan of reorganization of the Borrower (the
      “Plan”)
      confirmed by the United States Bankruptcy Court for the District of
      Delaware (the “Bankruptcy
      Court”).

                                
	 
      	 
      	 
      
	 
      	
                                  Guarantors:

                                	
                                  All
      obligations of the Borrower under the Definitive Documentation (the “Obligations”)
      will be unconditionally guaranteed by each of the Borrower’s direct and
      indirect, existing and future, domestic subsidiaries (excluding Superior
      Materials Holdings LLC and its direct and indirect subsidiaries (the
      “Excluded Joint
      Venture”; it being understood that for the purposes of this Term
      Sheet, the term “subsidiary” shall not include the Excluded Joint Venture)
      (collectively, the “Guarantors”;
      the Borrower and the Guarantors, collectively, the “Loan
      Parties”).

                                
	 
      	 
      	 
      
	 
      	
                                  Lead
      Arrangers

                                	
                                  J.P.
      Morgan Securities Inc. and Wells Fargo Capital Finance, LLC (in such
      capacities, the “Lead
      Arrangers”).

                                
	 
      	 
      	 
      
	 
      	
                                  Sole
      Bookrunner:

                                	
                                  J.P.
      Morgan Securities Inc. (in such capacity, the “Bookrunner”).

                                
	 
      	 
      	 
      
	 
      	
                                  Administrative
      Agent:

                                	
                                  JPMorgan
      Chase Bank, N.A. (“JPMorgan Chase
      Bank” and, in such capacity, together with its successors and
      assigns, the “Administrative
      Agent”).

                                
	 
      	 
      	 
      
	 
      	
                                  Documentation
      Agent:

                                	
                                  Wells
      Fargo Capital Finance, LLC (“Wells Fargo”
      and, in such capacity, together with its successors and assigns, the
      “Documentation
      Agent”).

                                
	 
      	 
      	 
      
	 
      	
                                  Lenders:

                                	
                                  A
      syndicate of banks, financial institutions and other entities, including
      JPMorgan Chase Bank and Wells Fargo, arranged by the Bookrunner and
      reasonably acceptable to the Borrower (collectively, the “Lenders”).

                                
	 
      	 
      	 
      
	
                                  2.

                                	
                                  TYPE AND AMOUNT OF
  FACILITY

                                
	 
      	 
      
	 
      	
                                  Type
      and Amount:

                                	
                                  A
      four year revolving asset based loan facility (the “Facility”; the
      commitments under the Facility, the “Commitments”)
      in the principal amount of $75,000,000 (the loans thereunder, the “Loans”).

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        
           

        

        
          A-1

          
            

          

        

        
           

        

      

    

    

    
      
        
          	 
      	
                  Letters
      of Credit:

                	
                  Up
      to $30,000,000 of the Facility shall be available for the issuance of
      letters of credit (the “Letters of
      Credit”) by JPMorgan Chase Bank (in such capacity, the “Issuing
      Lender”) to (i) replace or roll the letters of credit outstanding
      under the DIP Credit Agreement (as defined below) or (ii) otherwise
      support working capital needs or for general corporate purposes of the
      Borrower and the Guarantors.  No Letter of Credit shall have an
      expiration date after the earlier of (a) one year after the date of
      issuance and (b) five business days prior to the Termination
      Date.

                   

                  Drawings
      under any Letter of Credit shall be reimbursed by the Borrower (whether
      with its own funds or with the proceeds of Loans) on the same business
      day.  To the extent that the Borrower does not so reimburse the
      Issuing Lender, the Lenders shall be irrevocably and unconditionally
      obligated to fund participations in the reimbursement obligations on a
      pro rata
      basis.

                
	 
      	 
      	 
      
	 
      	
                  Borrowing
      Base:

                	
                  The
      Definitive Documentation (as defined below) shall contain provisions with
      respect to the borrowing base of the Borrower and the Guarantors (the
      “Borrowing
      Base”) similar to those in the Revolving Credit, Term Loan and
      Guarantee Agreement dated as of May 3, 2010 (as amended, the “DIP Credit
      Agreement”) modified as necessary for financings of this type as
      well as the following provisions:

                   

                  (a)
      cash dominion shall be effective at all times;

                   

                  (b)
      the components of the Borrowing Base in the Definitive Documentation shall
      consist of the following:

                   

                  (1)
      the sum of (i) 85% of all Eligible Accounts (to be mutually defined), (ii)
      the lesser of (x) 85% multiplied by the net
      orderly liquidation value percentage identified in the most recent
      inventory appraisal provided to the Administrative Agent of the Eligible
      Inventory (to be mutually defined) (valued at the lower of cost or market
      on a first-in, first-out basis) and (y) 50% of the Eligible Inventory
      (valued at the lower of cost or market on a first-in, first-out basis),
      (iii) the lesser of (x) $15,000,000 and (y) the product of 85% of the net
      orderly liquidation value of Eligible Trucks (to be mutually defined) and
      (iv) the difference between (x) the product of 80% of the cost of new
      Eligible Trucks and (y) the product of a percentage (to be mutually
      agreed) of the depreciation applicable to Eligible Trucks, in each case
      since the delivery of the last borrowing base certificate, minus (2) any reserves
      imposed by the Administrative Agent in its Permitted
      Discretion.  “Permitted Discretion” means a determination made
      in good faith and in the exercise of reasonable (from the perspective of a
      secured asset based lender) business
judgment.

                

        

      

    

    

    
      
        
           

        

        
          A-2

          
            

          

        

        
           

        

      

    

    

    
      
        
          
            	 
      	 
      	
                    (c)
      Availability shall be defined as an amount equal to (a) the lesser of (i)
      the then effective Commitments and (ii) the Borrowing Base at such time
      minus (b) the sum of (i) the aggregate outstanding amount of borrowings
      under the Facility and the undrawn amount of outstanding Letters of Credit
      issued for the account of the Borrower at such time and (ii) an
      availability reserve in effect in such amount and during such time as
      described in subsections (d) and (e) below (the “Availability
      Reserve”);

                     

                    (d)
      Prior to the delivery of financial statements for the fiscal quarter ended
      September 30, 2011, there will be an Availability Reserve of
      $15,000,000;

                     

                    (e)
      After the delivery of financial statements for the fiscal quarter ended
      September 30, 2011, unless the fixed charge coverage ratio for any
      trailing twelve month period is greater than or equal to 1.0:1.0, there
      will be an Availability Reserve of $15,000,000, plus $1,000,000 for each
      month thereafter, up to a maximum Availability Reserve of $20,000,000,
      such Availability Reserve to remain in effect until the delivery of the
      financial statements for the fiscal month in which the fixed charge
      coverage ratio for the trailing twelve month period is greater than or
      equal to 1.0:1.0;

                     

                    (f)
      The Borrowing Base will be computed monthly by the Borrower and a
      certificate (the “Borrowing Base
      Certificate”) presenting the Borrower’s computation of the
      Borrowing Base will be delivered to the Administrative Agent, provided
      that Borrowing Base Certificates shall be computed and delivered weekly if
      Availability is less than $12,500,000;

                     

                    (g)
      The Administrative Agent (or its designee) may conduct up to three field
      examinations per year at Borrower’s expense if no Event of Default has
      occurred and is continuing; and

                     

                    (h)
      The Administrative Agent (or its designee) may conduct one inventory and
      mixer truck appraisal per year at Borrower’s expense if no Event of
      Default has occurred and is continuing.

                  
	 
      	 
      	 
      
	 
      	
                    Closing
      Date:

                  	
                    The
      closing date (the “Closing Date”)
      shall be the date on which all the events listed under Conditions
      Precedent to Closing Date shall have occurred or been
    waived.

                  
	 
      	 
      	 
      
	 
      	
                    Purpose:

                  	
                    The
      proceeds of the Loans shall be used (a) for operating expenses, working
      capital and other general corporate purposes of the Borrower, the other
      Loan Parties and their respective subsidiaries, (b) to pay transaction
      costs, fees and expenses incurred in connection with the Facility, the
      Plan and the transactions contemplated thereunder and hereby and (c) on
      the Closing Date to repay in full the obligations outstanding under the
      DIP Credit
Agreement.

                  

          

        

      

    

    

    
      
        
           

        

        
          A-3

          
            

          

        

        
           

        

      

    

    

    
      
        
          
            	 
      	
                    Availability:

                  	
                    The
      Facility shall be available on a revolving basis during the period
      commencing on the Closing Date and ending on the date that is four years
      after the Closing Date (the “Maturity
      Date”).

                  
	 
      	 
      	 
      
	 
      	
                    Maturity:

                  	
                    Borrowings
      shall be repaid in full in cash, any outstanding Letters of Credit shall
      be cash collateralized and the Commitments shall terminate, at the earlier
      of (a) the Maturity Date and (b) the acceleration of the Loans in
      accordance with the term of the Facility (such earlier date, the “Termination
      Date”).

                  
	 
      	 
      	 
      
	
                    3.

                  	
                    CERTAIN PAYMENT
  PROVISIONS

                  
	 
      	 
      
	 
      	
                    Fees
      and Interest Rates:

                  	
                    As
      set forth on Annex I.

                  
	 
      	 
      	 
      
	 
      	
                    Optional
      Prepayments and Commitment Reductions:

                  	
                    Loans
      may be prepaid and the Commitments may be reduced by the Borrower in
      minimum amounts to be mutually agreed upon (without premium or penalty but
      subject to customary indemnification for breakage costs in the case of
      prepayment of Eurodollar Loans (as defined below) other than on the last
      day of an interest period).

                  
	 
      	 
      	 
      
	 
      	
                    Mandatory
      Prepayments:

                  	
                    Subject
      to the terms of the Intercreditor Agreement, the following amounts shall
      be applied to prepay the Loans (without a permanent reduction of the
      Commitments):

                  
	 
      	 
      	 
      
	 
      	 
      	
                    (a)  100%
      of the net cash proceeds of any sale or issuance of equity (other than one
      or more exceptions to be mutually agreed) and 100% of the net cash
      proceeds of any incurrence of debt after the Closing Date by the Borrower
      or any of its subsidiaries (other than permitted debt to be mutually
      agreed upon);

                  
	 
      	 
      	 
      
	 
      	 
      	
                    (b)  100%
      of the net cash proceeds of any sale, transfer or other disposition by the
      Borrower or any of its domestic subsidiaries of any assets, except for
      sales of inventory or obsolete or worn-out or uneconomical or surplus
      property in the ordinary course of business and subject to certain other
      customary exceptions (including capacity for reinvestment) to be mutually
      agreed upon; and

                  
	 
      	 
      	 
      
	 
      	 
      	
                    (c)  100%
      of the net insurance or condemnation proceeds or other awards payable in
      connection with the loss, destruction or condemnation of any assets of the
      Borrower or its subsidiaries, but subject to exceptions for repairs,
      restorations, improvements and replacements.

                  
	 
      	 
      	 
      
	 
      	 
      	
                    The
      Loans shall be prepaid and the Letters of Credit shall be cash
      collateralized or replaced to the extent of any shortfall in
      Availability.

                  

          

        

      

    

    

    
      
        
           

        

        
          A-4

          
            

          

        

        
           

        

      

    

    

    
      
        
          	
                  4.

                	
                  PRIORITY AND LIENS

                	
                  All
      borrowings by the Borrower and other Obligations of the Borrower under the
      Facility (and (i) all guaranties by the Guarantors and (ii) any swap
      agreements and cash management arrangements provided by any Lender (or any
      affiliate of a Lender)) shall be secured by (i) a perfected first priority
      lien on substantially all of the Loan Parties’ (a) inventory (including
      as-extracted collateral), accounts, specified mixer trucks, chattel paper,
      general intangibles (other than intellectual property and equity interests
      in subsidiaries), instruments and documents, (b) cash, deposit accounts,
      securities accounts, and letter of credit rights, (c) all supporting
      obligations and books and records, in each case, evidencing, governing,
      relating to, arising out of or securing the foregoing clauses (a) and (b)
      and (d) all proceeds and products thereof (the “Priority
      Collateral”) and (ii) a perfected second priority lien on
      substantially all property of the Loan Parties (other than Priority
      Collateral) (including, without limitation, material owned real estate,
      fixtures and machinery and equipment (other than mixer trucks), patents,
      copyrights, trademarks, tradenames, rights under license agreements, and
      other intellectual property and capital stock of subsidiaries), provided,
      however, that the Loan Parties shall not be required to pledge (i) the
      equity interests of the Excluded Joint Venture, (ii) in excess of 66% of
      the capital stock of their direct foreign subsidiaries or any of the
      capital stock or interests of indirect foreign subsidiaries, (iii)
      licenses, instruments, and agreements to the extent and so long as a
      pledge would violate the terms of such license, instrument or agreement,
      unless such terms are superseded by the Uniform Commercial Code or other
      applicable law, provided, that, the foregoing exclusions shall not be
      construed to limit, impair, or otherwise affect Administrative Agent’s
      continuing security interests in any Loan Party’s rights or interests of
      any Loan Party in (a) monies due or to become due under any described
      license, instrument, or agreement (to the extent not prohibited by such
      license, instrument, or agreement and applicable law), or (b) any proceeds
      from the sale, license, lease, or other disposition of any such license,
      instrument, or agreement, (iv) other assets to the extent the pledge
      thereof is prohibited by applicable law or regulation, (v) real property
      leaseholds (except solely as may be necessary to perfect and enforce the
      Lenders’ security interest in as-extracted collateral), (vi) immaterial
      owned real property, (vii) vehicles of the Loan Parties (other than mixer
      trucks included in the Borrowing Base), and (viii) other assets to the
      extent the Administrative Agent reasonably determines that the cost of
      obtaining such pledge or security interest therein is excessive in
      relation to the benefit thereof and (ix) other property or assets to be
      mutually agreed (collectively, the “Collateral”).

                

        

      

    

    

    
      
        
           

        

        
          A-5

          
            

          

        

        
           

        

      

    

    

    
      
        
          	 
      	 
      	
                  The
      terms and conditions setting forth the relative priorities of the security
      interest in the Collateral that secures (i) the $50,000,000 issuance of
      senior secured convertible notes (the “Notes”) in a
      private placement pursuant to Section 4(2) and Regulation D of the
      Securities Act raised by certain existing holders of the Borrower’s
      existing 8-3/8% Senior Subordinated Notes due 2014 and (ii) the Loans
      shall be set forth in an intercreditor agreement, in form and substance
      satisfactory to the Administrative Agent and Lead Arrangers (the “Intercreditor
      Agreement”).

                
	 
      	 
      	 
      
	
                  5.

                	
                  CERTAIN CONDITIONS

                	 
      
	 
      	 
      	 
      
	 
      	
                  Conditions
      Precedent to the Closing Date:

                	
                  The
      obligations of the Lenders to make Loans under the Facility will be
      subject to satisfaction or waiver by the Lead Arrangers of the following
      conditions precedent:

                   

                  (a)
      The Administrative Agent shall have received (i) executed Definitive
      Documentation reasonably satisfactory to the Administrative Agent and the
      Lead Arrangers and consistent with the terms of the Term Sheet, (ii)
      additional closing documents as are customary for transactions of this
      type or as the Administrative Agent may reasonably request, including but
      not limited to resolutions, incumbency certificates, and organizational
      documents, all in form and substance reasonably acceptable to the
      Administrative Agent, and (iii) each document required for the perfection
      of the liens and pledges on the Collateral securing the Facility,
      including, without limitation, any possessory Collateral and original
      certificates of title;

                   

                  (b)
      The Lenders, the Administrative Agent and the Lead Arrangers shall have
      received all fees and invoiced reasonable out-of-pocket expenses required
      to be paid on or before the Closing Date;

                   

                  (c)
      All government and material third party approvals necessary in connection
      with the execution, delivery and performance of the Definitive
      Documentation by the Loan Parties shall have been obtained on reasonably
      satisfactory terms.  There shall not exist any action,
      investigation, litigation or proceeding pending or threatened in any court
      or before any arbitrator or governmental authority that could reasonably
      be expected to have a material adverse effect on the Loan Parties (taken
      as a whole), the financing or any of the other transactions contemplated
      hereby;

                   

                  (d)
      The Administrative Agent and the Lenders shall have received
      (i) audited consolidated financial statements of the Borrower for the
      three most recent fiscal years, (ii) unaudited consolidated financial
      statements of the Borrower for the fiscal quarter ended June 30, 2010 and
      (iii) if the Closing Date occurs after August 31, 2010, unaudited
      consolidated financial statements of the Borrower for the seven month
      period ended July 31,
2010;

                

        

      

    

    

    
      
        
           

        

        
          A-6

          
            

          

        

        
           

        

      

    

    

    
      	 
      	 
      	
              (e)
      The Administrative Agent and the Lenders shall have received a pro forma
      consolidated balance sheet of the Borrower as at the date of the most
      recent balance sheet delivered pursuant to the preceding paragraph
      prepared to give effect to the consummation of the financings contemplated
      hereby as if such financings had occurred on such date or on the first day
      of such period, as applicable, and consistent in all material respects
      with information previously provided by the Borrower;

               

              (f)
      The Administrative Agent and the Lenders shall have received (i) quarterly
      projections through December 31, 2011 and (ii) annual projections through
      December 31, 2014, in each case, that are reasonably satisfactory to the
      Administrative Agent and the Lenders;

               

              (g)
      No Default or Event of Default under the Definitive Documentation shall
      have occurred and be continuing;

               

              (h)
      Representations and warranties shall be true and correct in all material
      respects;

               

              (i)
      The Administrative Agent shall have received such customary legal opinions
      (including opinions (i) from counsel to the Borrower and
      (ii) from such local counsel as may be reasonably required by the
      Administrative Agent), certificates, lien searches, documents and other
      instruments as are customary for transactions of this type or as it may
      reasonably request;

               

              (j)
      The Administrative Agent shall have received evidence that all insurance
      required to be maintained pursuant to the Definitive Documentation has
      been obtained and is in effect and that the Administrative Agent has been
      named as loss payee or additional insured, as appropriate, under each
      insurance policy with respect to such liability and property
      insurance;

               

              (k)
      The Administrative Agent shall have received at least three days prior to
      the Closing Date all documentation and other information required by bank
      regulatory authorities under applicable “know-your-customer” and
      anti-money laundering rules and regulations, including the Patriot
      Act;

               

              (l)
      The Administrative Agent shall have received mortgages on the material
      owned U.S. real property collateral securing the Facility;

               

              (m)
      The Administrative Agent shall have received a notice of borrowing from
      the Borrower;

               

              (n)
      Each Loan Party shall have executed and delivered definitive financing
      documentation with respect to the Notes (including the Intercreditor
      Agreement), on terms reasonably satisfactory to the Administrative Agent
      and Lead Arrangers;

            

    

    

    
      
        
           

        

        
          A-7

          
            

          

        

        
           

        

      

    

    

    
      
        	 
      	 
      	
                (o)
      The conditions to the effectiveness of the documentation governing the
      Notes shall have been satisfied or waived on terms reasonably satisfactory
      to the Administrative Agent, and concurrently the Borrower shall have
      received $50,000,000 in gross cash proceeds from the issuance of the
      Notes;

                 

                (p)
      The Plan shall be in form and substance reasonably acceptable to the
      Administrative Agent in all material respects and shall have been
      confirmed by a final order entered by the Bankruptcy Court (the “Confirmation
      Order”) in form and substance reasonably acceptable to the
      Administrative Agent in all material respects, which has not been stayed
      by the Bankruptcy Court or by any court having jurisdiction to issue such
      stay.  The Confirmation Order shall have been entered upon
      proper notice to all parties to be bound by the Plan, all as may be
      required by the Bankruptcy Code, the Federal Rules of Bankruptcy
      Procedure, order of the Bankruptcy Court, and any applicable local
      bankruptcy rules.  Moreover, (a) the time to appeal the
      Confirmation Order or to seek review, rehearing or certiorari with respect
      to the Confirmation Order must have expired, (b) unless otherwise waived
      by the Administrative Agent, no appeal or petition for review, rehearing
      or certiorari with respect to the Confirmation Order may be pending and
      (c) the Confirmation Order must otherwise be in full force and
      effect.  The effective date of the Plan shall have occurred or
      shall occur substantially concurrently with the closing of the
      Facility;

                 

                (q)
      Substantially contemporaneously with the Closing Date, the loans under the
      DIP Credit Agreement shall have been repaid in full in cash, all
      commitments relating to the foregoing shall have been terminated and all
      liens and security interests related thereto shall have been terminated or
      released;

                 

                (r)
      The Administrative Agent shall have received a certificate of a financial
      or other responsible officer of the Borrower, stating that (a) the
      Borrower is Solvent (to be mutually defined) and (b) the Loan Parties,
      taken as a whole, are Solvent, in each case, after giving effect to any
      Loans to be made on the Closing Date and Letters of Credit outstanding or
      to be issued on the Closing Date;

                 

                (s)
      After giving effect to the Loans funded and the Letters of Credit, if any,
      issued on the Closing Date, the Availability shall be at least
      $25,000,000;

                 

                (t)
      The Administrative Agent shall have received and the Administrative Agent
      shall be reasonably satisfied with asset appraisals of inventory and mixer
      trucks, and Administrative Agent hereby confirms receipt of such
      appraisals and that such appraisals are satisfactory to the Administrative
      Agent;

              

      

    

    

    
      
        
           

        

        
          A-8

          
            

          

        

        
           

        

      

    

    

    
      
        
          	 
      	 
      	
                  (u)
      The Administrative Agent or its designee shall have conducted a reasonably
      satisfactory field examination of the accounts receivable, inventory and
      related working capital matters and financial information of the Borrower
      and its subsidiaries and of the related data processing and other
      systems.

                   

                  (v)
      The Lead Arrangers shall have received a Borrowing Base Certificate as of
      a date specified by the Administrative Agent prior to the Closing Date
      with customary supporting documentation;

                   

                  (w)
      The corporate structure, capital structure, other material debt
      instruments, material accounts, and governing documents of Borrower and
      its affiliates, shall be reasonably acceptable to the Lead Arrangers;
      and

                   

                  (x)
      The Borrower shall have used commercially reasonable efforts to obtain
      certain landlord and bailee letters in form and substance reasonably
      satisfactory to the Administrative Agent and, to the extent not obtained,
      the Administrative Agent may impose a rent or charges reserve for any such
      location.

                
	 
      	 
      	 
      
	 
      	
                  Conditions
      to Each Extension of Credit:

                	
                  The
      making of each extension of credit shall be conditioned upon (a) the
      accuracy of all representations and warranties in all material respects in
      the documentation (the “Definitive
      Documentation”) with respect to the Facility (including, without
      limitation, the material adverse change and litigation representations),
      (b) there being no default or event of default in existence at the
      time of, or after giving effect to the making of, such extension of credit
      and (c) after giving effect to such extension of credit, Availability is
      not less than zero.

                
	 
      	 
      	 
      
	
                  6.

                	
                  CERTAIN DOCUMENTATION
    MATTERS

                
	 
      	 
      
	 
      	
                  Representations
      and Warranties:

                	
                  The
      Loan Parties shall make the following representations and warranties
      (which shall be subject to exceptions, baskets and carveouts to be
      negotiated): (i) organizational status; (ii) organizational power and
      authority; (iii) due authorization, execution, delivery and
      enforceability; (iv) no violation or conflicts with laws, material
      contracts or charter documents; (v) governmental and third-party
      approvals; (vi) financial statements and projections; (vii) absence of a
      Material Adverse Change (to be mutually defined); (viii) solvency of the
      Loan Parties; (ix) absence of material litigation; (x) true and complete
      disclosure; (xi) use of proceeds and compliance with margin regulations;
      (xii) taxes; (xiii) compliance with laws and regulations (including,
      without limitation, ERISA, environmental laws, general statutes, etc.);
      (xiv) ownership of property; (xv) validity, perfection and (subject to
      liens permitted under the Definitive Documentation) priority of security
      interests under Definitive Documentation; (xvi) inapplicability of
      Investment Company Act; (xvii) employment and labor relations; (xviii)
      capitalization and subsidiaries; (xix) intellectual property; and (xx)
      such other representations as are mutually agreed in the Definitive
      Documentation.

                

        

      

    

    

    
      
        
           

        

        
          A-9

          
            

          

        

        
           

        

      

    

    

    
      
        
          	 
      	
                  Affirmative
      Covenants:

                	
                  Each
      of the Loan Parties (with respect to itself and each of its subsidiaries)
      shall agree to the following affirmative covenants (which shall be subject
      to exceptions, baskets and carveouts to be negotiated): (i) compliance
      with laws and regulations (including, without limitation, ERISA and
      environmental laws); (ii) payment of taxes and other material obligations;
      (iii) maintenance of adequate insurance; (iv) preservation of corporate
      existence, rights (charter and statutory), franchises and permits; (v)
      visitation and inspection rights (subject to frequency and cost
      reimbursement limitations); (vi) keeping of proper books in accordance
      with generally accepted accounting principles; (vii) maintenance of
      properties (subject to casualty, condemnation and wear and tear); (viii)
      further assurances as to perfection and priority of security interests and
      additional guarantors; (ix) notice of defaults, material litigation and
      certain other material events; (x) financial and other reporting
      requirements (including, without limitation, unaudited monthly and
      quarterly and audited annual financials for the Borrower and its
      subsidiaries on a consolidated basis and projections prepared by
      management of the Borrower and provided on an annual basis); (xi) delivery
      of monthly Borrowing Base Certificates (provided that
      Borrowing Base Certificates shall be delivered weekly if Availability is
      less than $12,500,000); (xii) use of proceeds; (xiii) delivery of
      collateral reports, including agings and inventory reports; and (xiv) such
      other affirmative covenants as may be mutually agreed in the Definitive
      Documentation.

                
	 
      	 
      	 
      
	 
      	
                  Financial
      Covenants:

                	
                  Beginning
      with the fiscal month in which the Availability Reserve is eliminated and
      with respect to any fiscal month thereafter in which Availability was at
      any time less than $15,000,000 (any such month, the “Covenant Commencement
      Date”), the Borrower shall maintain a fixed charge coverage ratio
      for the trailing twelve month period of at least 1.0:1.0, determined (i)
      as of the last day of the fiscal month preceding the Covenant Commencement
      Date and (ii) as of the last day of each fiscal month occurring thereafter
      for the trailing twelve month period ending on each such date, until
      Availability is equal to or greater than $15,000,000 for a period of
      thirty (30) consecutive days.    Fixed Charges shall
      be mutually defined in the Definitive Documentation, but in any event
      shall exclude the financed portion of all third-party financed capital
      expenditures.

                

        

      

    

    

    
      
        
           

        

        
          A-10

          
            

          

        

        
           

        

      

    

    

    
      	 
      	
              Negative
      Covenants:

            	
              Each
      of the Loan Parties (with respect to itself and each of its subsidiaries)
      shall agree to the following negative covenants (which shall be subject to
      exceptions, baskets and carveouts to be negotiated): (i) liens (with
      exceptions to include liens granted pursuant to the
      Notes,  purchase money liens, liens securing capital leases or
      other mixer truck financing); (ii) incurrence of debt (with exceptions to
      include the Notes, financing of mixer trucks, intercompany debt and
      certain loans and advances to the Excluded Joint Venture); (iii) mergers
      and consolidations (with exceptions for Permitted Acquisitions (to be
      mutually defined)); (iv) sales, transfers and other dispositions of
      property and assets (with exceptions to include sales of inventory and
      equipment in the ordinary course of business, sales of obsolete or worn
      out assets, sales of non-core assets acquired in a Permitted Acquisition
      and disposition of the Excluded Joint Venture); (v) loans, acquisitions
      and other investments (with exceptions for Permitted Acquisitions and the
      Excluded Joint Venture); (vi) dividends and other distributions to, and
      redemptions and repurchases from, equity holders; (vii) so long as no
      default or Event of Default (as defined below) has occurred and is
      continuing, voluntary prepayments, redemption or repurchases of the Notes
      and certain other debt (with exceptions for (a) up to $2.5 million of
      Notes so long as the Borrower is in pro forma compliance with the fixed
      charge coverage ratio covenant and has Availability of $10 million if
      there is an Availability Reserve or has Availability of $20 million if
      there is no Availability Reserve, in each case, after giving effect
      thereto, (b) up to $2.5 million of other debt so long as the Borrower is
      in pro forma compliance with the fixed charge coverage ratio covenant and
      has Availability of $10 million if there is an Availability Reserve or has
      Availability of $20 million if there is no Availability Reserve, in each
      case, after giving effect thereto and (c) with proceeds of any equity
      issuance); (viii) annual capital expenditures (with carry-forwards to be
      mutually agreed upon); (ix) transactions with affiliates; (x) restrictions
      on distributions, advances and asset transfers by subsidiaries and
      negative pledges; (xi) issuances of certain disqualified equity interests;
      (xii) changes in the nature of business; (xiii) amending organizational
      documents, or amending or otherwise modifying the Notes; (xiv) changes in
      fiscal year; (xv) sale and leaseback transactions; (xvii) hedge
      agreements; and (xvi) such other negative covenants as may be mutually
      agreed in the Definitive
Documentation.

            

    

    

    
      
        
           

        

        
          A-11

          
            

          

        

        
           

        

      

    

    

    
      
        
          	 
      	
                  Events
      of Default:

                	
                  The
      Facility shall be subject to the following events of default (subject to
      materiality exceptions and grace periods to be mutually agreed, except as
      otherwise specified below) (the “Events of
      Default”):  (i) nonpayment of principal or interest when
      due or of fees or other amounts after a grace period to be mutually agreed
      upon; (ii) failure to perform or observe covenants set forth in Definitive
      Documentation, subject, in the case of certain affirmative covenants, to
      notice and an appropriate grace period; (iii) any representation or
      warranty proving to have been incorrect in any material respect when made
      or confirmed; (iv) cross-defaults to other indebtedness in excess of
      $2,500,000; (v) bankruptcy, insolvency proceedings, etc. (with a grace
      period to be mutually agreed for involuntary proceedings); (vi) final
      monetary judgments in excess of $2,500,000 (in excess of insurance
      provided by reputable providers for which coverage has not been
      disclaimed); (viii) customary ERISA defaults; (ix) actual or asserted
      invalidity of Definitive Documentation or impairment of security interests
      in the Collateral; (x) Change of Control (to be mutually defined); (xi)
      cross-defaults to the Notes; and  (xii) such other events of default
      as are mutually agreed in the Definitive Documentation.

                
	 
      	 
      	 
      
	 
      	
                  Voting
      Provisions:

                	
                  The
      Definitive Documentation shall contain the following voting
      provisions:

                   

                  (a)
      Amendments, modifications and waivers with respect to the Definitive
      Documentation shall require the approval of the Lenders holding more than
      50% of the aggregate amount of the Commitments under the Facility or, if
      there are less than three (3) unaffiliated Lenders, all of the Lenders
      (the “Requisite
      Lenders”);

                   

                  (b)
      In addition to the consents required under clause (a) above, the consent
      of each Lender directly affected thereby shall be required for any
      amendments, modifications or waivers that have the effect of (i) except as
      otherwise permitted by the Definitive Documentation, releasing (or consent
      to the assignment or transfer of ) the obligations of any Loan Party under
      the Definitive Documentation or releasing Administrative Agent ‘s lien on
      all or substantially all of the Collateral, (ii) increasing or extending
      such Lender’s Commitment, (iii) subordinating the obligations owed to any
      Lender or any liens securing such obligations, (iv) extending the
      scheduled final maturity of the Loans, (v) waiving or postponing any
      scheduled payment date of principal, interest or fees (other than, for the
      avoidance of doubt, with respect to mandatory prepayments), (vi) reducing
      the principal, rate of interest, fees or other amounts owing under the
      Facility (other than default interest), (vii) changing the definition of
      Requisite Lenders, (viii) reducing the voting and amendment provisions in
      the Definitive Documentation, (ix) altering the pro-rata sharing
      provisions contained in the Definitive Documentation or the application of
      proceeds after an Event of Default and (x) allowing a Loan Party or its
      affiliates to become a permitted assignee; and

                   

                  (c)
      Amendments, modifications and waivers with respect to the Borrowing Base
      and related definitions and provisions, to the extent any such amendment,
      modification or waiver results in more credit being available to Borrower
      based upon the Borrowing Base, shall require the approval of the
      Supermajority Lenders (to be defined as Lenders (other than defaulting
      Lenders) having more than 75% of the aggregate outstanding amount of the
      Commitments).

                

        

      

    

    

    
      
        
           

        

        
          A-12

          
            

          

        

        
           

        

      

    

    

    
      	 
      	
              Other
      Provisions:

            	
              The
      Definitive Documentation shall contain provisions with respect to
      replacement of lenders, defaulting lenders, assignments, participations
      and yield protection similar to those set forth in the DIP Credit
      Agreement, among the Borrower, the guarantors from time to time party
      thereto, the lenders party thereto and JPMorgan Chase Bank, as
      administrative agent for the lenders, modified as necessary and as
      mutually agreed for financings of this type (including a provision that
      the Loans may not be assigned to any Loan Party or its
      affiliates).

            
	 
      	 
      	 
      
	 
      	
              Expenses
      and Indemnification:

            	
              The
      Borrower shall pay (a) all reasonable out-of-pocket expenses of the
      Administrative Agent and the Lead Arrangers associated with the
      syndication of the Facility and the preparation, execution, delivery and
      administration of the Definitive Documentation and any amendment or waiver
      with respect thereto (including the reasonable and out-of-pocket fees,
      disbursements and other charges of one counsel for the Administrative
      Agent and the Lead Arrangers, collectively, exclusive of any local
      counsel) and (b) all reasonable and out-of-pocket expenses of the
      Administrative Agent and the Lenders (including the fees, disbursements
      and other charges of counsel for the Administrative Agent, the Lead
      Arrangers and the Lenders) in connection with the enforcement of the
      Definitive Documentation.

            
	 
      	 
      	 
      
	 
      	 
      	
              The
      Administrative Agent, the Lead Arrangers, the Documentation Agent and the
      Lenders (and their affiliates and their respective officers, directors,
      employees, advisors and agents) will have no liability for, and will be
      indemnified and held harmless against, any losses, claims, damages,
      liabilities or reasonable and out-of-pocket expenses incurred in respect
      of the financing contemplated hereby or the use or the proposed use of
      proceeds thereof, except to the extent they or any of their affiliates or
      their respective officers, directors, employees, advisors and agents are
      found by a final, non-appealable judgment of a court to arise from the
      gross negligence or willful misconduct of the relevant indemnified person,
      or such indemnified person’s affiliates, officers, directors, employees,
      advisors and agents and disputes solely among indemnified
      persons.

            
	 
      	 
      	 
      
	 
      	
              Governing
      Law and Forum:

            	
              The
      Definitive Documentation will provide that the Loan Parties will submit to
      the non-exclusive jurisdiction and venue of any state or federal court of
      competent jurisdiction in the state, county and city of New York, borough
      of Manhattan; the Borrower, the Administrative Agent and the Lenders shall
      waive any right to trial by jury. New York law shall govern the Definitive
      Documentation.

            

    

    

    
      
        
           

        

        
          A-13

          
            

          

        

        
           

        

      

    

    

    
      
        	 
      	
                Counsel
      to the Administrative Agent and the Lead Arrangers (other than Wells Fargo
      Capital Finance, LLC):

              	 	
                Vinson
      & Elkins LLP.

              

      

    

    

    
      
        
           

        

        
          A-14

          
            

          

        

        
           

        

      

    

     

    Annex I

     

    
      
        	
                INTEREST AND CERTAIN
FEES

              
	 
      
	
                Interest
      Rate Options:

              	
                The
      Borrower may elect that the Loans bear interest at a rate per annum equal
      to (a) the CB Floating Rate plus the Applicable Margin or (b) the Adjusted
      LIBO Rate plus the Applicable Margin.

              
	 
      	 
      
	 
      	
                As
      used herein:

              
	 
      	 
      
	 
      	
                “Applicable
      Margin” means (a) 2.75% in the case of CBFR Loans (as defined below)
      and (b) 3.75% in the case of Eurodollar Loans (as defined
      below).

              
	 
      	 
      
	 
      	
                “CB
      Floating Rate” will have the meaning assigned to such term in the DIP
      Credit Agreement.

              
	 
      	 
      
	 
      	
                “Adjusted
      LIBO Rate” will have the meaning assigned to such term in the DIP Credit
      Agreement.

              
	 
      	 
      
	
                Interest
      Payment Dates:

              	
                In
      the case of both Loans bearing interest based upon the CB Floating Rate
      (“CBFR Loans”) and Loans bearing interest based upon the Adjusted LIBO
      Rate (“Eurodollar Loans”), monthly in arrears.

              
	 
      	 
      
	
                Commitment
      Fees:

              	
                The
      Borrower shall pay a commitment fee calculated at a rate per annum equal
      to 0.75% on the average daily unused portion of the Facility, payable
      monthly in arrears.

              
	 
      	 
      
	
                Letter
      of Credit Fees:

              	
                The
      Borrower shall pay a fee on all outstanding Letters of Credit at a per
      annum rate equal to the Applicable Margin then in effect with respect to
      Eurodollar Loans on the face amount of each such Letter of
      Credit.  Such fee shall be shared ratably among the Lenders and
      shall be payable monthly in arrears.

              
	 
      	 
      
	 
      	
                A
      fronting fee equal to 0.20% per annum on the face amount of each Letter of
      Credit shall be payable monthly in arrears to the Issuing Lender for its
      own account.  In addition, customary administrative, issuance,
      amendment, payment and negotiation charges shall be payable to the Issuing
      Lender for its own account.

              
	 
      	 
      
	
                Default
      Rate:

              	
                Upon
      the occurrence and during the continuance of an Event of Default, at the
      direction of the Required Lenders, interest (the “Default Interest”) shall
      accrue on the outstanding amount of the Obligations and shall be payable
      on demand at 2.0% above the then applicable
  rate.

              

      

    

    

    
      
        
           

        

        
          Annex
I-1

          
            

          

        

        
           

        

      

    

    

    
      	
              Rate
      and Fee Basis:

            	
              All
      per annum rates shall be calculated on the basis of a year of 360 days (or
      365/366 days, in the case of CB Floating Rate Loans the interest rate
      payable on which is then based on the Prime Rate (as defined in the DIP
      Credit Agreement), for actual days
elapsed.

            

    

    

    
      
        
           

        

        
          Annex
I-2

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