{"id":40260,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/performance-share-unit-award-agreement-vulcan-materials-co.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"performance-share-unit-award-agreement-vulcan-materials-co","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/performance-share-unit-award-agreement-vulcan-materials-co.html","title":{"rendered":"Performance Share Unit Award Agreement – Vulcan Materials Co."},"content":{"rendered":"

THIS DOCUMENT CONSTITUTES PART OF<\/strong><\/p>\n

\n

A PROSPECTUS COVERING SECURITIES THAT<\/strong><\/p>\n

\n

HAVE BEEN REGISTERED UNDER THE<\/strong><\/p>\n

\n

SECURITIES ACT OF 1933<\/strong><\/p>\n

\n<\/p>\n

VULCAN MATERIALS COMPANY<\/em><\/strong><\/p>\n

\n

PERFORMANCE SHARE UNIT AWARD
\nAGREEMENT<\/em><\/strong><\/p>\n

\n

Terms and Conditions<\/em><\/strong><\/p>\n

\n<\/p>\n\n\n\n
\n

1.<\/strong><\/p>\n<\/td>\n

\n

Definitions<\/em><\/strong>.<\/strong> As used in this Award
\nAgreement the following terms shall have the meanings as follows:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(a)<\/p>\n<\/td>\n

\n

“Award Agreement” means this Performance Share Unit Award Agreement.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(b)<\/p>\n<\/td>\n

\n

“Performance Period” means the three-year period shown on Section 3 of this
\nAward Agreement, except that in the “Event” of the Participant153s death or a
\nchange in control (as defined in regulations or other guidance under Section
\n409A of the Internal Revenue Code of 1986, as amended (the “Code”)), the
\nPerformance Period will be the period covered by the Award Agreement ending on
\nDecember 31st<\/sup> of the calendar year in which the Event occurred.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(c)<\/p>\n<\/td>\n

\n

“Company” means Vulcan Materials Company, a New Jersey corporation.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(d)<\/p>\n<\/td>\n

\n

“Committee” means the Compensation Committee of the Board of Directors.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(e)<\/p>\n<\/td>\n

\n

“Disability” means Permanent and Total Disability whereby the Participant is
\nentitled to long-term disability benefits under the applicable group long-term
\ndisability plan of the Company or a Subsidiary, or, to the extent not eligible
\nto participate in any Company-sponsored plan, under the guidelines of the Social
\nSecurity Administration.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n\n
\n

(f)<\/p>\n<\/td>\n

\n

“Fair Market Value or “FMV” means the closing stock price for a Share on the
\nbusiness day that immediately precedes the Payment Date as reported on a
\nnational securities exchange if the Shares are then being traded on such an
\nexchange or as determined by the Committee if Shares are not so traded.<\/p>\n<\/td>\n<\/tr>\n

\n

(g)<\/p>\n<\/td>\n

\n

“Grant Date” means the date of this Award Agreement.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(h)<\/p>\n<\/td>\n

\n

“Participant” means the name of the employee of the Company or its
\nsubsidiaries or affiliates.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(i)<\/p>\n<\/td>\n

\n

“Payment Date” means the date on which payment is made under this Award
\nAgreement.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(j)<\/p>\n<\/td>\n

\n

“Performance Share Unit” or “PSU” means the equivalent of one share of Common
\nStock.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(k)<\/p>\n<\/td>\n

\n

“Plan” means the Vulcan Materials Company 2006 Omnibus Long-Term Incentive
\nPlan, as amended, or any successor plan, as amended.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(l)<\/p>\n<\/td>\n

\n

“Share” means a share of Common Stock, par value $1.00 per share, of the
\nCompany.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\n\n\n\n
\n

2.<\/em><\/strong><\/p>\n<\/td>\n

\n

Grant and Vesting of PSUs<\/em><\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(a)<\/p>\n<\/td>\n

\n

Grant.<\/u> The Participant is awarded the number of PSUs identified
\nthrough the electronic, on-line grant acceptance process, subject to terms and
\nconditions set forth in the Agreement. Depending on the company153s performance as
\nset forth in Section 3, the participant may earn zero percent (0%) to two
\nhundred percent (200%) of the shares awarded.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(b)<\/p>\n<\/td>\n

\n

Vesting<\/u>. Except as otherwise provided in Section 4, and subject to the
\nCommittee153s discretion set forth in Section 6, the PSUs will become vested on
\nDecember 31, at the end of the Performance Period.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

3.<\/strong><\/p>\n<\/td>\n

\n

Payment of Performance Share Units<\/em><\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(a)<\/p>\n<\/td>\n

\n

Performance Period and Measures.<\/u> The Performance Period for this award
\nbegins on January 1, 2010 and ends on December 31, 2012. The Percentage of the
\naward earned and paid will be established by the Committee based on the
\ncompany153s 3-year average Total Shareholder Return (“TSR”) relative to S&P
\n500 Index as comprised on January 1 of the year of grant. The maximum Percentage
\nmay be decreased but not increased by the Committee. The following table A
\nreflects the goals which performance will be measured for payment of the PSUs
\nawarded.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n\n\n\n\n\n
\n

Performance Share Unit Payment Table<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

TABLE A<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

3-Year Average Total Shareholder Return Percentile
\nRank Relative to S&P 500 Index<\/strong><\/p>\n<\/td>\n

<\/td>\n\n

% of Performance Share Share Units Payable<\/strong>\n<\/p>\n<\/td>\n<\/tr>\n

\n

75th or ><\/p>\n<\/td>\n

<\/td>\n\n

200<\/p>\n<\/td>\n<\/tr>\n

\n

50th<\/p>\n<\/td>\n

<\/td>\n\n

100<\/p>\n<\/td>\n<\/tr>\n

\n

25th or <<\/p>\n<\/td>\n

<\/td>\n\n

0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n<\/p>\n\n\n\n
\n

(b)<\/p>\n<\/td>\n

\n

Units Payable.<\/u> The number of PSUs payable is the shares awarded
\nmultiplied by the TSR Percentage payable. For performance levels falling between
\nthe values as shown above, the Percentages will be determined by interpolation.
\nPayment will be made in stock.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(c)<\/p>\n<\/td>\n

\n

The Value of the Stock Issued as Payment for PSUs Earned.<\/u> The FMV will
\nbe used to determine the basis of the stock payable.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(d)<\/p>\n<\/td>\n

\n

Withholding<\/u>. The Company shall withhold Shares having a Fair Market
\nValue on the date the tax is to be determined equal to the minimum statutory
\namount for federal, state, local, and employment taxes (“Total Tax”) which could
\nbe withheld on the transaction, with respect to any taxable event arising as a
\nresult of this Award Agreement.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(e)<\/p>\n<\/td>\n

\n

Timing of Payment<\/u>. Payment will be made to a Participant between
\nJanuary 1 and March 15 of the calendar year after the calendar year in which the
\nPerformance Period [as defined in Section 1(b)], ends.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(f)<\/p>\n<\/td>\n

\n

Payment Determination<\/u>. The Committee may exercise its discretion to
\nreduce or eliminate payments if the Performance Period average TSR is less than
\nor equal to the 25th percentile.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n

2<\/p>\n

\n

\n\n\n\n
\n

4.<\/strong><\/p>\n<\/td>\n

\n

Termination of Employment.<\/em><\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n\n\n
\n

(a)<\/p>\n<\/td>\n

\n

Termination at age 55 and above.<\/u><\/p>\n<\/td>\n<\/tr>\n

\n

(i)<\/p>\n<\/td>\n

\n

If a Participant terminates from employment at age 55-61, the PSUs will
\nbecome non-forfeitable in accordance with Table B and will be paid in accordance
\nwith Section 3. The Participant may be required to execute a reasonable
\nnon-competition covenant with the Company restricting the Participant from
\ncompeting with the Company in a specified territory for a specified period of
\ntime. If such covenant is required by the Company and is not executed by the
\nParticipant, unvested PSUs will be forfeited and vested PSUs not yet paid as of
\nthe date of such termination will be paid in accordance with Section 3.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n\n\n\n\n
\n

TABLE B<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

If termination at age 55-61 occurs on or after January
\n1<\/strong>st<\/sup><\/strong> of the:<\/strong><\/p>\n<\/td>\n

<\/td>\n\n

The percentage of PSUs<\/strong><\/p>\n

that will become Non-forfeitable is:<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

1st<\/sup> Calendar year following the Grant Date<\/p>\n<\/td>\n

<\/td>\n\n

33%<\/p>\n<\/td>\n<\/tr>\n

\n

2nd<\/sup> Calendar year following the Grant Date<\/p>\n<\/td>\n

<\/td>\n\n

67%<\/p>\n<\/td>\n<\/tr>\n

\n

3rd<\/sup> Calendar year following the Grant Date<\/p>\n<\/td>\n

<\/td>\n\n

100%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n<\/p>\n\n\n\n
\n

(ii)<\/p>\n<\/td>\n

\n

If a Participant terminates from employment at age 62 or later, the PSUs
\nwhich have been held by the Participant until January 1st<\/sup> of the
\ncalendar year following the year of grant, will be deemed to be non-forfeitable
\nand will be paid in accordance with Section 3. The Participant may be required
\nto execute a reasonable non-competition covenant with the Company restricting
\nthe Participant from competing with the Company in a specified territory for a
\nspecified period of time. If such covenant is required by the Company and is not
\nexecuted by the Participant, unvested PSUs will be forfeited and vested PSUs not
\nyet paid as of the date of such termination will be paid in accordance with
\nSection 3.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(b)<\/p>\n<\/td>\n

\n

Disability<\/u>. Upon determination of Disability, as defined in Section
\n1(e), the PSUs granted under this Award Agreement will become non-forfeitable.
\nAll non-forfeitable PSUs will be paid in accordance with Section 3.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(c)<\/p>\n<\/td>\n

\n

Death<\/u>. Upon the death of the Participant, the PSUs granted under this
\nAward Agreement will become non-forfeitable. All non-forfeitable PSUs will be
\npaid to the Participant’s beneficiary or estate in accordance with Section 3.\n<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

3<\/p>\n

\n

\n<\/p>\n\n\n\n
\n

(d)<\/p>\n<\/td>\n

\n

Other Termination<\/u>. Upon voluntary termination prior to age 55, or upon
\ninvoluntary termination for reasons other than death, Disability, or cause as
\ndetermined under Section 4(e), unvested PSUs will be forfeited and vested PSUs
\nnot yet paid as of the date of such termination will be paid in accordance with
\nSection 3.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(e)<\/p>\n<\/td>\n

\n

Termination for Cause<\/u>. If a Participant153s employment is terminated for
\ncause, the PSUs will immediately be forfeited, even with respect to vested PSUs
\nwhich were otherwise non-forfeitable but not yet paid. The Committee shall have
\ncomplete discretion to determine whether a Participant has been terminated for
\ncause. The Committee’s determination shall be final and binding on all persons
\nfor purposes of the Plan and this Award Agreement.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(f)<\/p>\n<\/td>\n

\n

Change in Control of the Company<\/u>. <\/em>Upon a Change in Control of
\nthe Company, as defined in regulations or other guidance under Section 409A of
\nthe Code, the PSUs granted under this Award Agreement will be deemed to be
\nnon-forfeitable. All non-forfeitable PSUs will be paid in accordance with
\nSection 3.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

5.<\/strong><\/p>\n<\/td>\n

\n

Section 16(b) Participants<\/em><\/strong>. Any Participant subject
\nto Section 16(b) reporting shall be governed by same with respect to PSUs.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

6.<\/strong><\/p>\n<\/td>\n

\n

Committee Discretion.<\/em><\/strong> The Committee may, in its
\nsole discretion, amend this Award Agreement to the extent necessary to comply
\nwith any statute, regulation, or other administrative guidance. Notwithstanding
\nany other provision of the Plan or this Award Agreement, the Committee may amend
\nthe Plan or this Award Agreement to the extent permitted by their terms and deem
\nany units granted under this Award non-forfeitable for the events described in
\nSections 4(a) and 4(d). The Committee shall not make any amendment pursuant to
\nthis Section 6 that would cause this Award Agreement, if it is subject to or
\nbecomes subject to Section 409A of the Internal Revenue Code, to fail to satisfy
\nthe requirements of such Section 409A. The Committee has sole discretion to
\nestablish the Comparison Group to be used in evaluating the performance of the
\nCompany in accordance with Section 3(a), and may change the Comparison Group
\nfrom time to time.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

7.<\/strong><\/p>\n<\/td>\n

\n

Entire Agreement; Amendment<\/em><\/strong>. This Award Agreement,
\nThe Memorandum, and the Plan are incorporated herewith and represent the entire
\nunderstanding and agreement between the Company and the Participant, and shall
\nsupersede any prior agreement and understanding between the parties. Except as
\nprovided in Section 6 of this Agreement and subject to any Plan provision, this
\nAward may not be amended or modified except by a written instrument executed by
\nthe parties hereto.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

8.<\/strong><\/p>\n<\/td>\n

\n

Non-Solicitation.<\/em><\/strong> In consideration for this
\nAgreement and notwithstanding any other provision in this Agreement, the
\nParticipant agrees to comply with the non-solicitation covenants set forth
\nbelow:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(a)<\/p>\n<\/td>\n

\n

Non-Solicitation of Customers.<\/u> The Participant acknowledges that while
\nemployed by the Company, the Participant will occupy a position of trust and
\nconfidence and will acquire confidential information about the Company, its
\nsubsidiaries and affiliates, and their clients and customers that is not
\ndisclosed by the Company or any of its subsidiaries or affiliates in the
\nordinary course of business, including trade secrets, data, formulae,
\ninformation concerning customers and other information which is of value to the
\nCompany because it is not generally known. The Participant agrees that during
\nthe period of employment with the Company and for a period of two years after
\nthe date of termination of employment with the Company, regardless of the reason
\nfor termination, the Participant will not, either individually or as an officer,
\ndirector, stockholder, member, partner, agent, consultant or principal of
\nanother business firm, directly or indirectly solicit any customer of the
\nCompany or of its affiliates or subsidiaries.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

4<\/p>\n

\n

\n<\/p>\n\n\n\n
\n

(b)<\/p>\n<\/td>\n

\n

Non-Solicitation of Employees<\/u>. The Participant recognizes that while
\nemployed by the Company, the Participant will possess confidential information
\nabout other employees of the Company and its subsidiaries or affiliates relating
\nto their education, experience, skills, abilities, compensation and benefits,
\nand inter-personal relationships with suppliers to and customers of the Company
\nand its subsidiaries or affiliates. The Participant recognizes that this
\ninformation is not generally known, is of substantial value to the Company and
\nits subsidiaries or affiliates in developing their respective businesses and in
\nsecuring and retaining customers, and will be acquired by the Participant
\nbecause of the Participant153s business position with the Company. The Participant
\nagrees that during the period of employment with the Company and for two years
\nafter the date of termination of employment with the Company, regardless of the
\nreason for termination, the Participant will not, directly or indirectly,
\nsolicit or recruit any employee of the Company or any of its subsidiaries or
\naffiliates for the purpose of being employed by the Participant or by any
\nbusiness, individual, partnership, firm, corporation or other entity on whose
\nbehalf the Participant is acting as an agent, representative or employee and
\nthat the Participant will not convey any such confidential information or trade
\nsecrets about other employees of the Company or any of its subsidiaries or
\naffiliates to any other person except within the scope of the Participant153s
\nduties as an employee of the Company.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n\n\n\n
\n

(c)<\/p>\n<\/td>\n

\n

Remedies<\/u>. If any dispute arises concerning the violation by the
\nParticipant of the covenants described in this Section, an injunction may be
\nissued restraining such violation pending the determination of such controversy,
\nand no bond or other security shall be required in connection therewith. If the
\nParticipant violates any of the obligations in this Section, this Award
\nAgreement will terminate, if it is outstanding, and, in addition, the Company
\nwill be entitled to any appropriate relief, including money damages, equitable
\nrelief, and attorneys153 fees.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n<\/p>\n

5<\/p>\n

\n

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