Document:

Exhibit 10.1

 

VALMONT 1996 STOCK PLAN

 

SECTION 1

 

NAME AND PURPOSE

 

1.1           Name.  The
name of the plan shall be the Valmont 1996 Stock Plan (the “Plan”).

 

1.2.          Purpose of Plan. The purpose of the Plan is to
foster and promote the long-term financial success of the Company and increase
stockholder value by (a) motivating superior performance by means of stock
incentives, (b) encouraging and providing for the acquisition of an ownership
interest in the Company by Employees and (c) enabling the Company to
attract and retain the services of a management team responsible for the
long-term financial success of the Company.

 

SECTION 2

 

DEFINITIONS

 

2.1           Definitions. 
Whenever used herein, the following terms shall have the respective
meanings set forth below:

 

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

 

(b)                                 “Award” means
any Option, Stock Appreciation Right, Restricted Stock, Stock Bonus, or any
combination thereof, including Awards combining two or more types of Awards in
a single grant.

 

(c)                                  “Board” means
the Board of Directors of the Company.

 

(d)                                 “Code” means
the Internal Revenue Code of 1986, as amended.

 

(e)                                  “Committee”
means the Compensation Committee of the Board, which shall consist of two or
more members, each of whom shall be “disinterested persons” within the meaning
of Rule 16b-3 as promulgated under the Act.

 

(f)                                    “Company” means
Valmont Industries, Inc., a Delaware corporation (and any successor
thereto) and its Subsidiaries.

 

(g)                                 “Director Award”
means an award of Stock and an annual Award of a Nonstatutory Stock Option
granted to each Eligible Director pursuant to Section 7.1 without any
action by the Board or the Committee.

 

 

(h)                                 “Eligible
Director” means a person who is serving as a member of the Board and who is not
an Employee.

 

(i)                                     “Employee”
means any employee of the Company or any of its Subsidiaries.

 

(j)                                     “Fair Market
Value” means, on any date, the average of the high and low sales prices of the
Stock as reported on the National Association of Securities Dealers Automated
Quotation system (or on such other recognized market or quotation system on
which the trading prices of the Stock are traded or quoted at the relevant
time) on such date.  In the event that
there are no Stock transactions reported on such system (or such other system)
on such date, Fair Market Value shall mean the average of the high and low sale
prices on the immediately preceding date on which Stock transactions were so
reported.

 

(k)                                  “Option” means
the right to purchase Stock at a stated price for a specified period of time.
For purposes of the Plan, an Option may be either (i) an Incentive Stock
Option within the meaning of Section 422 of the Code or (ii) a
Nonstatutory Stock Option.

 

(l)                                     “Participant”
means any Employee designated by the Committee to participate in the Plan.

 

(m)                               “Plan” means
the Valmont 1996 Stock Plan, as in effect from time to time.

 

(n)                                 “Restricted
Stock” shall mean a share of Stock granted to a Participant subject to such
restrictions as the Committee may determine.

 

(o)                                 “Stock” means the
Common Stock of the Company, par value $1.00 per share.

 

(p)                                 “Stock
Appreciation Right” means the right, subject to such terms and conditions as
the Committee may determine, to receive an amount in cash or Stock, as
determined by the Committee, equal to the excess of (i) the Fair Market
Value, as of the date such Stock Appreciation Right is exercised, of the number
shares of Stock covered by the Stock Appreciation Right being exercised over (ii) the
aggregate exercise price of such Stock Appreciation Right.

 

(q)                                 “Stock Bonus”
means the grant of Stock as compensation from the Company, which may be in lieu
of cash salary or

 

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bonuses otherwise payable to
the Participant or in addition to such cash compensation.

 

(r)                                    “Subsidiary”
means any corporation or partnership in which the Company owns, directly or
indirectly, 50% or more of the total combined voting power of all classes of
stock of such corporation or of the capital interest or profits interest of such
partnership.

 

2.2           Gender and Number. 
Except when otherwise indicated by the context, words in the masculine
gender used in the Plan shall include the feminine gender, the singular shall
include the plural, and the plural shall include the singular.

 

SECTION 3

 

ELIGIBILITY AND PARTICIPATION

 

Except as otherwise provided
in Section 7.1, the only persons eligible to participate in the Plan shall
be those Employees selected by the Committee as Participants.

 

SECTION 4

 

POWERS OF THE COMMITTEE

 

4.1           Power to Grant. 
The Committee shall determine the Participants to whom Awards shall be
granted, the type or types of Awards to be granted, and the terms and
conditions of any and all such Awards. The Committee may establish different
terms and conditions for different types of Awards, for different Participants
receiving the same type of Awards, and for the same Participant for each Award
such Participant may receive, whether or not granted at different times.

 

4.2           Administration. 
The Committee shall be responsible for the administration of the Plan.
The Committee, by majority action thereof, is authorized to prescribe, amend,
and rescind rules and regulations relating to the Plan, to provide for
conditions deemed necessary or advisable to protect the interests of the
Company, and to make all other determinations necessary or advisable for the
administration and interpretation of the Plan in order to carry out its
provisions and purposes. Determinations, interpretations, or other actions made
or taken by the Committee pursuant to the provisions of the Plan shall be
final, binding, and conclusive for all purposes and upon all persons.
Notwithstanding anything else contained in the Plan to the contrary, neither
the Committee nor the Board shall have any discretion regarding whether an
Eligible Director receives a

 

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Director Award pursuant to Section 7.1
or regarding the terms of any such Director Award, including, without
limitation, the number of shares subject to any such Director Award.

 

SECTION 5

 

STOCK SUBJECT TO PLAN

 

5.1           Number. 
Subject to the provisions of Section 5.3, the number of shares of
Stock subject to Awards (including Director Awards) under the Plan may not
exceed 800,000 shares of Stock. The shares to be delivered under the Plan may
consist, in whole or in part, of treasury Stock or authorized but unissued
Stock, not reserved for any other purpose. The maximum number of shares of
Stock with respect to which Awards may be granted to any one Employee under the
Plan is 40% of the aggregate number of shares of Stock available for Awards
under Section 5.1.

 

5.2           Cancelled, Terminated or Forfeited Awards.  Any shares of Stock subject to an Award which
for any reason are cancelled, terminated or otherwise settled without the
issuance of any Stock shall again be available for Awards under the Plan.

 

5.3           Adjustment in Capitalization. In the event of any
Stock dividend or Stock split, recapitalization (including, without limitation,
the payment of an extraordinary dividend), merger, consolidation, combination,
spin-off, distribution of assets to stockholders, exchange of shares, or other
similar corporate change, (i) the aggregate number of shares of Stock
available for Awards under Section 5.1 and (ii) the number of shares
and exercise price with respect to Options and the number, prices and dollar
value of other Awards, may be appropriately adjusted by the Committee, whose
determination shall be conclusive. If, pursuant to the preceding sentence, an
adjustment is made to the number of shares of Stock authorized for issuance
under the Plan, a corresponding adjustment shall be made with respect to
Director Awards granted pursuant to Section 7.1.

 

SECTION 6

 

STOCK OPTIONS

 

6.1           Grant of Options. 
Options may be granted to Participants at such time or times as shall be
determined by the Committee.  Options
granted under the Plan may be of two types: (i) Incentive Stock Options
and (ii) Nonstatutory Stock Options. The Committee shall have complete
discretion in determining the number of Options, if any, to be granted to a
Participant. Each Option shall be evidenced by an Option agreement that shall
specify the type of Option granted, the exercise price, the

 

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duration of the Option, the number of shares
of Stock to which the Option pertains, the exercisability (if any) of the
Option in the event of death, retirement, disability or termination of
employment, and such other terms and conditions not inconsistent with the Plan
as the Committee shall determine.

 

6.2           Option Price. 
Nonstatutory Stock Options and Incentive Stock Options granted pursuant
to the Plan shall have an exercise price which is not less than the Fair Market
Value on the date the Option is granted.

 

6.3           Exercise of Options.  Options awarded to a Participant under the
Plan shall be exercisable at such times and shall be subject to such
restrictions and conditions as the Committee may impose, subject to the
Committee’s right to accelerate the exercisability of such Option in its
discretion. Notwithstanding the foregoing, no Option shall be exercisable for
more than ten years after the date on which it is granted.

 

6.4           Payment.  The
Committee shall establish procedures governing the exercise of Options, which
shall require that written notice of exercise be given and that the Option
price be paid in full in cash or cash equivalents, including by personal check,
at the time of exercise or pursuant to any arrangement that the Committee shall
approve. The Committee may, in its discretion, permit a Participant to make
payment (i) in Stock already owned by the Participant valued at its Fair
Market Value on the date of exercise (if such Stock has been owned by the
Participant for at least six months) or (ii) by electing to have the
Company retain Stock which would otherwise be issued on exercise of the Option,
valued at its Fair Market Value on the date of exercise. As soon as practicable
after receipt of a written exercise notice and full payment  of the exercise price, the Company shall
deliver to the Participant a certificate or certificates representing the
acquired shares of Stock.

 

6.5           Incentive Stock Options.  Notwithstanding anything in the Plan to the
contrary, no term of this Plan relating to Incentive Stock Options shall be
interpreted, amended or altered, nor shall any discretion or authority granted
under the Plan be so exercised, so as to disqualify the Plan under Section 422
of the Code, or, without the consent of any Participant affected thereby, to
cause any Incentive Stock Option previously granted to fail to qualify for the
Federal income tax treatment afforded under Section 421 of the Code.  In furtherance of the foregoing, (i) the
aggregate Fair Market Value of shares of Stock (determined at the time of grant
of each Option) with respect to which Incentive Stock Options are exercisable
for the first time by an Employee during any calendar year shall not exceed
$100,000 or such other amount as may be required by the Code, (ii) an
Incentive Stock Option may not be exercised more than three months following

 

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termination of employment (except as the
Committee may otherwise determine in the event of death or disability), and (iii) if
the Employee receiving an Incentive Stock Option owns Stock possessing more
than 10% of the total combined voting power of all classes of Stock of the
Company, the exercise price of the Option shall be at least 110% of Fair Market
Value and the Option shall not be exercisable after the expiration of five
years from the date of grant.

 

6.6           Replacement
Options.  The Committee may grant a
replacement option (a “Replacement Option”) to any Employee who exercises all
or part of an option granted under this Plan using Qualifying Stock (as herein
defined) as payment for the purchase price. 
A Replacement Option shall grant to the Employee the right to purchase,
at the Fair Market Value as of the date of said exercise and grant, the number
of shares of stock equal to the sum of the number of whole shares (i) used
by the Employee in payment of the purchase price for the option which was
exercised and (ii) used by the Employee in connection with applicable
withholding taxes on such transaction.  A
Replacement Option may not be exercised for six months following the date of
grant, and shall expire on the same date as the option which it replaces.  Qualifying Stock is stock which has been
owned by the Employee for at least six months prior to the date of exercise and
has not been used in a stock-for-stock swap transaction within the preceding
six months.

 

SECTION 7

 

DIRECTOR AWARDS

 

7.1           Amount of Award.  Each Eligible Director shall receive a
non-discretionary Award of 1,000 shares of stock each year; such Award shall be
made annually on the date of and following completion of the Company’s annual
stockholders’ meeting (commencing with the 1996 annual stockholders’ meeting).
Each Eligible Director shall be issued a common stock certificate for such
number of shares. Termination of the director’s services for any reason other
than (i) death, (ii) retirement from the Board at mandatory
retirement age, or (iii) resignation or failure to stand for re-election,
in any such case with the prior approval of the Board, will result in
forfeiture of the Stock. If the Stock is forfeited, the director shall return
the number of forfeited shares of Stock, or equivalent value, to the Company.
The number of shares of Stock awarded to an Eligible Director annually shall be
appropriately adjusted in the event of any stock changes as described in Section 5.3.
In addition, each Eligible Director shall receive a non-discretionary Award of
a Nonqualified Stock Option for 2,000 shares of Stock exercisable at the Fair
Market Value of the Company’s common stock on the

 

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date of grant; such Award shall be made annually on the date of and
following completion of the Company’s annual stockholders’ meeting (commencing
with the 1996 annual stockholders’ meeting). The number of nonqualified options
awarded to a director shall be appropriately adjusted in the event of any stock
changes as described in Section 5.3.

 

7.2           No Other Awards.  An Eligible Director shall not receive any
other Award under the Plan.

 

SECTION 8

 

STOCK APPRECIATION RIGHTS

 

8.1           SAR’s In Tandem
with Options.  Stock Appreciation
Rights may be granted to Participants in tandem with any Option granted under
the Plan, either at or after the time of the grant of such Option, subject to
such terms and conditions, not inconsistent with the provisions of the Plan, as
the Committee shall determine. Each Stock Appreciation Right shall only be
exercisable to the extent that the corresponding Option is exercisable, and
shall terminate upon termination or exercise of the corresponding Option.  Upon the exercise of any Stock Appreciation
Right, the corresponding Option shall terminate.

 

8.2           Other Stock
Appreciation Rights.  Stock
Appreciation Rights may also be granted to Participants separately from any
Option, subject to such terms and conditions, not inconsistent with the
provisions of the Plan, as the Committee shall determine.

 

SECTION 9

 

RESTRICTED STOCK

 

9.1           Grant of
Restricted Stock.  The Committee may
grant Restricted Stock to Participants at such times and in such amounts, and
subject to such other terms and conditions not inconsistent with the Plan as it
shall determine.  Each grant of
Restricted Stock shall be subject to such restrictions, which may relate to
continued employment with the Company, performance of the Company, or other
restrictions, as the Committee may determine. Each grant of Restricted Stock
shall be evidenced by a written agreement setting forth the terms of such
Award.

 

9.2           Removal of
Restrictions.  The Committee may
accelerate or waive such restrictions in whole or in part at any time in its
discretion.

 

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SECTION 10

 

STOCK BONUSES

 

10.1  Grant of Stock Bonuses.  The Committee may grant a Stock Bonus to a
Participant at such times and in such amounts, and subject to such other terms
and conditions not inconsistent with the Plan, as it shall determine.

 

SECTION 11

 

AMENDMENT, MODIFICATION, AND TERMINATION OF PLAN

 

11.1         General.  The Board may from time to time amend, modify
or terminate any or all of the provisions of the Plan, subject to the
provisions of this Section 11.1. 
The Board may not change the Plan in a manner which would prevent
outstanding Incentive Stock Options granted under the Plan from being Incentive
Stock Options without the consent of the optionees concerned. Furthermore, the
Board may not make any amendment which would (i) materially modify the
requirements for participation in the Plan, (ii) increase the number of
shares of Stock subject to Awards under the Plan pursuant to Section 5.1, (iii) materially
increase the benefits accruing to Participants under the Plan, or (iv) make
any other amendments which would cause the Plan not to comply with Rule 16b-3
under the Act, in each case without the approval of the Company’s
stockholders.  No amendment or
modification shall affect the rights of any Employee with respect to a
previously granted Award, nor shall any amendment or modification affect the
rights of any Eligible Director pursuant to a previously granted Director
Award.

 

11.2         Termination of Plan.  No further Options shall be granted under the
Plan subsequent to December 31, 2005, or such earlier date as may be
determined by the Board.

 

SECTION 12

 

MISCELLANEOUS PROVISIONS

 

12.1         Nontransferability
of Awards.  No Awards granted under
the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and
distribution.  All rights with respect to
Awards granted to a Participant under the Plan shall be exercisable during the
Participant’s lifetime only by such

 

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Participant and all rights with respect to any Director Awards granted
to an Eligible Director shall be exercisable during the Director’s lifetime
only by such Eligible Director.

 

12.2         Beneficiary
Designation.  Each Participant under
the Plan may from time to time name any beneficiary or beneficiaries (who may
be named contingent or successively) to whom any benefit under the Plan is to
be paid or by whom any right under the Plan is to be exercised in case of his
death. Each designation will revoke all prior designations by the same
Participant shall be in a form prescribed by the Committee, and will be
effective only when filed in writing with the Company.  In the absence of any such designation,
Awards outstanding at death may be exercised by the Participant’s surviving
spouse, if any, or otherwise by his estate.

 

12.3         No  Guarantee of Employment or Participation.  Nothing in the Plan shall interfere with or
limit in any way the right of the Company or any Subsidiary to terminate any
Participant’s employment at any time, nor confer upon any Participant any right
to continue in the employ of the Company or any Subsidiary. No Employee shall
have a right to be selected as a Participant, or, having been so selected, to
receive any future Awards.

 

12.4         Tax Withholding.  The Company shall have the power to withhold,
or require a Participant or Eligible Director to remit to the Company, an
amount sufficient to satisfy federal, state, and local withholding tax
requirements on any Award under the Plan, and the Company may defer issuance of
Stock until such requirements are satisfied. The Committee may, in its
discretion, permit a Participant to elect, subject to such conditions as the
Committee shall impose, (i) to have shares of Stock otherwise issuable
under the Plan withheld by the Company or (ii) to deliver to the Company
previously acquired shares of Stock, in each case having a Fair Market Value
sufficient to satisfy all or part of the Participant’s estimated total federal,
state and local tax obligation associated with the transaction.

 

12.5         Change of Control.  On the date of a Change of Control, all
outstanding options and stock appreciation rights shall become immediately
exercisable and all restrictions with respect to Restricted Stock shall
lapse.  “Change of Control” shall mean:

 

(i)                                    The acquisition
(other than from the Company) by any person, entity or “group”, within the
meaning of Section 13(d)(3) or 14(d)(2) of the Act (excluding
any acquisition or holding by (i) the Company or its subsidiaries, (ii) any
employee benefit plan of the Company or its subsidiaries which acquires
beneficial ownership of voting securities of the Company and (iii) Robert
B. Daugherty, his successors and assigns and any

 

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tax-exempt entity established by him) of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Act) of 50% or more of
either the then outstanding shares of common stock or the combined voting power
of the Company’s then outstanding voting securities entitled to vote generally
in the election of directors; or

 

(ii)                                 Individuals
who, as of the date hereof, constitute the Board (as of the date hereof the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board,
provided that any person becoming a director subsequent to the date hereof
whose election, or nomination for the election by the Company’s stockholders,
was approved by a vote of at least a majority of the directors then comprising
the Incumbent Board shall be, for purposes of this Plan, considered as though
such person were a member of the Incumbent Board; or

 

(iii)                              Approval by the
stockholders of the Company of a reorganization, merger or consolidation, in
each case, with respect to which persons who were the stockholders of the
Company immediately prior to such reorganization, merger or consolidation do
not, immediately thereafter, own more than 50% of the combined voting power
entitled to vote generally in the election of directors of the reorganized,
merged or consolidated company’s then outstanding voting securities, or a
liquidation or dissolution of the Company or of the sale of all or
substantially all of the assets of the Company.

 

12.6         Company Intent.  The Company intends that the Plan comply in
all respects with Rule 16b-3 under the Act, and any ambiguities or
inconsistencies in the construction of the Plan shall be interpreted to give
effect to such intention.

 

12.7         Requirements of
Law.  The granting of Awards and the
issuance of shares of Stock shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or securities
exchanges as may be required.

 

12.8         Effective Date.  The Plan shall be effective upon its adoption
by the Board subject to approval by the Company’s stockholders at the 1996
annual stockholders’ meeting.

 

12.9         Governing Law.  The Plan, and all agreements hereunder, shall
be construed in accordance with and governed by the laws of the State of
Delaware.

 

10Exhibit 10.2

 

VALMONT 1999 STOCK PLAN

 

SECTION 1

 

NAME AND PURPOSE

 

1.1 Name. The name of the
plan shall be the Valmont 1999 Stock Plan (the “Plan”).

 

1.2.  Purpose of Plan.  The purpose of the Plan is to foster and
promote the long-term financial success of the Company and increase stockholder
value by (a)  motivating 
superior  performance  by 
means  of  stock 
incentives,  (b) encouraging  and providing for the  acquisition of an ownership  interest in the Company by  Employees 
and (c)  enabling  the  Company to attract and retain the services of
a management team responsible for the long-term financial success of the
Company.

 

SECTION 2

 

DEFINITIONS

 

2.1  Definitions. 
Whenever used herein,  the
following terms shall have the respective meanings set forth below:

 

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

 

b.                                      “Award” means
any Option, Stock Appreciation Right, Restricted Stock, Stock Bonus, or any
combination thereof, including Awards combining two or more types  of 
Awards  in a single grant.

 

c.                                       “Board” means
the Board of Directors of the Company.

 

d.                                      “Code” means
the Internal Revenue Code of 1986, as amended.

 

e.                                       “Committee”
means the Compensation Committee of the Board, which shall consist of two or
more members, each of whom shall be a “non-employee  director” within the meaning of Rule 16b-3
as promulgated under the Act.

 

f.                                         “Company” means
Valmont Industries, Inc., a Delaware corporation (and any successor
thereto) and its Subsidiaries.

 

g.                                      “Director  Award” 
means an award of Stock and an annual Award of a  Nonstatutory 
Stock  Option  granted 
to  each  Eligible Director pursuant  to Section  7.1  without any action by the Board or the
Committee.

 

h.                                      “Eligible  Director” means a person who is serving as a
member of the Board and who is not an Employee.

 

i.                                          “Employee”  means any 
employee  of the  Company or any of its Subsidiaries.

 

j.                                          “Fair
Market  Value”  means, 
on any date,  the average of the
high and low  sales  prices of the 
Stock as  reported  on the National Association of Securities
Dealers Automated Quotation system (or on such other recognized market or
quotation system on which the trading prices of the Stock are traded or quoted
at 

 

 

the relevant time) on such date.  In the event that there are no Stock transactions  reported on such system (or such other
system) on such date, Fair Market Value shall mean the average of the high and
low sale prices on the immediately preceding date on which Stock transactions
were so reported.

 

k.                                       “Option”  means the right to purchase Stock at a stated
price for a specified period of time. 
For purposes of the Plan, an Option may be either (i) an Incentive
Stock Option within the meaning of Section 422 of the Code or (ii) a
Nonstatutory Stock Option.

 

l.                                          “Participant”  means any Employee  designated by the Committee to participate in
the Plan.

 

m.                                    “Plan”  means the Valmont  1999 Stock Plan,  as in effect from time to time.

 

n.                                      “Restricted
Stock” shall mean a share of Stock granted to a Participant subject to such
restrictions as the Committee may determine.

 

o.                                      “Stock” means
the Common Stock of the Company, par value $1.00 per share.

 

p.                                      “Stock
Appreciation Right” means the right, subject to such terms and conditions as
the Committee may determine, to receive an amount in cash or Stock, as  determined 
by the Committee, equal to the excess of (i) the Fair Market Value,
as of the date such Stock Appreciation Right is exercised, of the number shares
of Stock covered by the Stock Appreciation Right being exercised over (ii) the
aggregate exercise price of such Stock Appreciation Right.

 

q.                                      “Stock Bonus”
means the grant of Stock as  compensation
from the Company in lieu of cash salary or bonuses otherwise payable to the
Participant.

 

r.                                         “Subsidiary”
means any corporation or partnership in which the Company owns, directly or
indirectly, 50% or more of the total combined 
voting  power  of 
all  classes  of 
stock  of  such corporation or of the capital  interest or profits interest of such
partnership.

 

2.2 Gender and Number.  Except when otherwise indicated by the
context, words in the  masculine  gender 
used in the Plan  shall  include 
the  feminine gender,  the singular shall include the plural, and
the plural shall include the singular.

 

SECTION 3

 

ELIGIBILITY AND PARTICIPATION

 

Except as otherwise  provided in Section 7.1, the only
persons eligible to participate in the Plan shall be those Employees selected
by the Committee as Participants.

 

SECTION 4

 

POWERS OF THE COMMITTEE

 

4.1 Power to Grant.  The Committee shall determine the  Participants to whom Awards shall be granted,
the type or types of Awards to be granted, and the terms and  conditions 
of 

 

 

any
and all such Awards.  The  Committee may establish different  terms and 
conditions  for different  types of Awards,  for different Participants receiving the same
type of Awards, and for the same Participant for each Award such  Participant 
may  receive,  whether or not granted at different times.

 

4.2  Administration.  The 
Committee  shall  be 
responsible  for  the administration  of the Plan. 
The  Committee,  by majority 
action  thereof,  is authorized to prescribe,  amend, 
and rescind rules and regulations 
relating to the Plan, to provide for conditions deemed necessary or
advisable to protect the interests  of
the  Company,  and to make all other  determinations  necessary or advisable  for the 
administration  and  interpretation  of the Plan in order to carry out its
provisions and purposes. Determinations, interpretations, or other actions made
or taken by the  Committee  pursuant to the  provisions of the Plan shall be final,
binding, and conclusive for all purposes and upon all persons.

 

SECTION 5

 

STOCK SUBJECT TO PLAN

 

5.1 Number.  Subject to the  provisions 
of Section  5.3, the number of shares of Stock subject to Awards
(including Director Awards) under the Plan may not exceed  1,700,000 shares of Stock. The shares to be
delivered under the Plan may consist,  in
whole or in part, of treasury  Stock or
authorized but unissued Stock, not reserved for any other purpose. The maximum
number of shares of Stock with respect to which 
Awards may be granted to any one Employee  under the Plan is 40% of the  aggregate 
number of shares of Stock 
available  for Awards under Section 5.1.

 

5.2  Cancelled, 
Terminated  or Forfeited  Awards. 
Any shares of Stock subject to an Award which for any reason are cancelled,  terminated or otherwise settled  without the issuance of any
Stock shall again be  available  for Awards under the Plan. In the event a
Participant  pays the exercise price of
an Option pursuant to Section 6.4 by transferring or having withheld
shares of stock, only the net number of Shares 
shall be  considered  utilized 
under the Plan and the balance shall again be available for Award under
the Plan.

 

5.3 Adjustment in
Capitalization. In the event of any Stock dividend or Stock split,
recapitalization (including,  without
limitation, the payment of an extraordinary 
dividend),  merger,  consolidation,  combination, 
spin-off, distribution  of assets
to  stockholders,  exchange of shares,  or other similar corporate  change, 
(i) the  aggregate  number of shares of Stock  available for Awards under  Section 5.1 and (ii) the number of
shares and exercise  price with respect
to Options and the number,  prices and
dollar value of other Awards, may be 
appropriately  adjusted  by the 
Committee,  whose  determination 
shall  be conclusive. If, pursuant
to the preceding sentence, an adjustment is made to the number  of 
shares  of  Stock 
authorized  for  issuance 
under  the  Plan, 
a corresponding  adjustment  shall be made with respect to Director Awards
granted pursuant to Section 7.1.

 

SECTION 6

 

STOCK OPTIONS

 

6.1 Grant of Options.  Options may be granted to  Participants 
at such time or times as shall be determined by the Committee. Options
granted under the Plan may be of two types: 
(i)  Incentive  Stock  Options and (ii)  Nonstatutory Stock
Options. The Committee shall have complete discretion in determining the number
of Options, if any, to be granted to a Participant.  

 

 

Each
Option shall be evidenced by an Option 
agreement that shall specify the type of Option granted, the exercise
price, the duration of the Option, the number of shares of Stock to which the  Option 
pertains,  the  exercisability  (if any) of the Option in the event of
death,  retirement,  disability or termination of employment,  and such other terms and conditions not inconsistent
with the Plan as the Committee shall determine. 
Options may also be granted in replacement of or upon  assumption of options  previously 
issued by  companies  acquired 
by the Company by merger or stock 
purchase,  and any options so
replaced or assumed may have the same terms including exercise price as the
options so replaced or assumed.

 

6.2 Option  Price.  Nonstatutory 
Stock  Options  and 
Incentive  Stock Options  granted 
pursuant to the Plan shall have an exercise price which is not less than
the Fair Market Value on the date the Option is granted.

 

6.3 Exercise of
Options.  Options  awarded to a 
Participant  under the Plan  shall 
be  exercisable  at 
such  times  and 
shall  be  subject 
to  such restrictions  and 
conditions  as  the 
Committee  may  impose, 
subject  to the Committee’s  right 
to  accelerate  the 
exercisability  of such  Option 
in its discretion. 
Notwithstanding  the
foregoing,  no Option shall be
exercisable for more than ten years after the date on which it is granted.

 

6.4 Payment.  The Committee 
shall establish  procedures  governing the exercise of Options,  which shall 
require  that  written 
notice of exercise be given  and
that the  Option  price be paid in full in cash or cash  equivalents, including  by 
personal  check,  at the 
time of  exercise  or 
pursuant  to any arrangement  that 
the  Committee  shall 
approve.  The  Committee 
may,  in its discretion,  permit a Participant  to make payment (i) in Stock already
owned by the Participant valued at its Fair Market Value on the date of
exercise (if such Stock has been  owned
by the  Participant  for at least six  months) 
or (ii) by electing to have the Company  retain 
Stock which would  otherwise  be issued on exercise of the Option, valued
at its Fair Market Value on the date of exercise. As soon as  practicable 
after  receipt  of a written 
exercise  notice and full payment
of the exercise  price,  the Company shall deliver to the  Participant a certificate  or 
certificates  representing  the acquired 
shares of Stock.  The Committee
may permit a Participant  to elect to pay
the exercise  price upon the exercise of
an Option by authorizing a third party to sell shares of Stock (or a sufficient
portion of the shares) acquired upon exercise of the Option and remit to
the  Company a  sufficient 
portion  of the sale  proceeds 
to pay the entire exercise price and any required tax withholding
resulting from such exercise.

 

6.5 Incentive  Stock Options.  Notwithstanding  anything in the Plan to the contrary,  no term of this Plan relating to Incentive
Stock Options shall be interpreted, 
amended or altered,  nor shall any
discretion or authority granted under the Plan be so exercised,  so as to disqualify  the Plan under Section 422 of the Code,
or, without the consent of any 
Participant  affected  thereby, 
to cause any Incentive Stock Option 
previously  granted to fail to
qualify for the Federal income tax treatment afforded under Section 421 of
the Code.

 

6.6 Replacement Options. The
Committee may grant a replacement option (a “Replacement  Option”) to any  Employee who 
exercises  all or part of an
option granted under this Plan using 
Qualifying  Stock (as herein  defined) as payment for the purchase  price. 
A  Replacement  Option shall grant to the Employee the right
to purchase,  at the Fair Market Value as
of the date of said exercise and grant, 
the  number of shares of
stock  equal to the sum of the  number of whole shares (i) used by the
Employee in payment of the purchase 
price for the option which was exercised and (ii) used by the
Employee in connection  with applicable
withholding taxes on such transaction. A Replacement Option may not be
exercised for six months following the date of grant, and shall expire on the
same date as the option which it 

 

 

replaces.  Qualifying Stock is stock which has been
owned by the  Employee  for at least six months prior to the date of
exercise and has not been used in a stock-for-stock swap transaction within the
preceding six months.

 

SECTION 7

 

DIRECTOR AWARDS

 

7.1  Amount 
of  Award.  Each 
Eligible  Director  shall 
receive  a non-discretionary  Award of 2,000 shares of stock each year;
such Award shall be made  annually
on the date of and following  completion
of the Company’s  annual stockholders’  meeting (commencing with the 1999 annual
stockholders’  meeting). Each  Eligible 
Director  shall be issued a
common  stock  certificate 
for such number of shares. 
Termination of the  director’s  services for any reason other than (i) death,  (ii) retirement from the Board at
mandatory  retirement age, or (iii) resignation
or failure to stand for re-election, in any such case with the prior  approval of the Board,  will result in  forfeiture 
of the Stock.  If the Stock is
forfeited,  the director shall return the
number of forfeited shares of Stock, 
or  equivalent  value, 
to the  Company.  The 
number of shares of Stock awarded to an Eligible Director annually shall
be appropriately  adjusted in the event
of any stock  changes as  described 
in Section  5.3.  In  addition, 
each Eligible Director shall receive a non-discretionary Award of a
Nonqualified  Stock  Option for 4,000  shares of Stock  exercisable 
at the Fair Market  Value of the  Company’s 
common  stock on the date of
grant;  such Award shall be made annually
on the date of and following  completion
of the Company’s annual  stockholders’  meeting 
(commencing  with the 1999
annual  stockholders’ meeting).  The number of 
nonqualified  options  awarded to a director  shall be appropriately adjusted in the event
of any stock changes as described in Section 5.3.

 

7.2 No Other Awards.  An Eligible 
Director  shall not receive any
other Award under the Plan.

 

SECTION 8

 

STOCK APPRECIATION RIGHTS

 

8.1 SAR’s In Tandem  with 
Options.  Stock  Appreciation 
Rights  may be granted to
Participants in tandem with any Option granted under the Plan, either at or
after  the time of the grant of such  Option, 
subject  to such  terms and conditions,  not inconsistent  with the provisions of the Plan, as the
Committee shall determine.  Each Stock
Appreciation Right shall only be exercisable to the extent that the  corresponding 
Option is exercisable,  and shall
terminate upon termination or exercise of the 
corresponding  Option.  Upon the exercise of any Stock Appreciation
Right, the corresponding Option shall terminate.

 

8.2 Other Stock
Appreciation  Rights. Stock Appreciation
Rights may also be granted to Participants separately from any Option, subject
to such terms and conditions,  not
inconsistent  with the provisions of the
Plan, as the Committee shall determine.

 

SECTION 9

 

RESTRICTED STOCK

 

9.1 Grant of Restricted  Stock. The Committee may grant Restricted
Stock to  Participants  at such times and in such  amounts, 
and subject to such other terms and 

 

 

conditions
not inconsistent with the Plan as it shall determine.  Each grant of 
Restricted  Stock  shall be 
subject to such 
restrictions,  which may relate to
continued employment with the Company, 
performance of the Company, or other 
restrictions,  as the Committee
may  determine.  Each grant of Restricted Stock shall be
evidenced by a written  agreement setting
forth the terms of such Award. A maximum of 20% of the shares of Stock  available for issuance under the Plan may be
issued as Restricted Stock.

 

9.2 Removal of
Restrictions.  The Committee may
accelerate or waive such restrictions in whole or in part at any time in its
discretion.

 

SECTION 10

 

STOCK BONUSES

 

10.1 Grant of Stock
Bonuses.  The Committee may grant a Stock
Bonus to a Participant  at such times and
in such amounts,  and subject to such
other terms and conditions not inconsistent with the Plan, as it shall
determine.

 

SECTION 11

 

AMENDMENT, MODIFICATION, AND
TERMINATION OF PLAN

 

11.1 General. The Board may
from time to time amend, modify or terminate any or all of the  provisions 
of the Plan,  subject to the  provisions 
of this Section 11.1.  The
Board may not change the Plan in a manner which would prevent outstanding  Incentive Stock Options granted under the
Plan from being Incentive Stock Options without the consent of the optionees
concerned.  Furthermore,  the Board 
may not  make  any 
amendment  which  would  (i) 
materially  modify  the requirements for participation in the
Plan or (ii) increase the number of shares of Stock  subject to Awards under the Plan pursuant to Section 5.1,
in each case without the approval of a majority of the  outstanding 
shares of Stock entitled to vote 
thereon.  No amendment or  modification 
shall affect the rights of any Employee with respect to a
previously  granted Award, nor shall any
amendment or modification affect the rights of any Eligible Director pursuant
to a previously granted Director Award.

 

11.2  Termination of Plan. No further Options shall
be granted under the Plan  subsequent to December 31,
2009, or such earlier date as may be determined by the Board.

 

SECTION 12

 

MISCELLANEOUS PROVISIONS

 

12.1  Nontransferability  of Awards. Except as otherwise provided by
the Committee, no Awards granted under the Plan may be sold,  transferred, 
pledged, assigned,  or otherwise
alienated or hypothecated,  other than by
will or by the laws of descent and distribution.

 

12.2 Beneficiary  Designation. 
Each Participant under the Plan may from time to time name any
beneficiary or beneficiaries  (who may be
named contingent or successively) to whom any benefit under the Plan is to be
paid or by whom any right under the Plan is to be exercised in case of his
death.  Each  designation will revoke all prior  designations by the same  Participant 
shall be in a form prescribed by the 
Committee,  and will be effective  only when filed in writing with the Company.
In the absence of any such designation, 
Awards outstanding 

 

 

at
death  may be  exercised 
by the  Participant’s  surviving 
spouse,  if any,  or otherwise by his estate.

 

12.3 No Guarantee of  Employment or 
Participation.  Nothing in the
Plan shall  interfere  with or 
limit  in any way the  right 
of the  Company  or any Subsidiary to terminate  any 
Participant’s  employment at any
time,  nor confer upon any  Participant 
any right to continue in the employ of the Company or any Subsidiary. No
Employee shall have a right to be selected as a Participant,  or, having been so selected, to receive any
future Awards.

 

12.4 Tax Withholding.  The Company shall have the power to
withhold,  or require a Participant  or Eligible 
Director to remit to the Company, 
an amount sufficient to satisfy federal, 
state, and local withholding tax requirements on any Award under the
Plan, and the Company may defer issuance of Stock until such requirements  are 
satisfied.  The Committee  may, in its 
discretion,  permit a Participant
to elect,  subject to such conditions as
the Committee shall impose, (i) to have shares of Stock  otherwise 
issuable  under the Plan withheld
by the Company or (ii) to deliver to the Company  previously 
acquired shares of Stock, in each case having a Fair Market Value
sufficient to satisfy all or part of the Participant’s estimated total federal,
state and local tax obligation associated with the transaction.

 

12.5  Change of Control.  On the date of a Change of Control, all
outstanding options and stock appreciation rights shall become immediately
exercisable and all restrictions with respect to Restricted Stock shall lapse. “Change
of Control” shall mean:

 

i.                                          The acquisition
(other than from the Company) by any person, entity or  “group”, within the meaning of Section 13(d)(3) or
14(d)(2) of the Act (excluding any acquisition or holding by (i) the
Company or its subsidiaries, (ii) any employee benefit plan of the Company
or its  subsidiaries which acquires
beneficial ownership of voting securities of the Company and (iii) Robert B.
Daugherty, his successors and assigns and any tax-exempt entity established by
him) of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Act) of 50% or more of either the then outstanding shares of common
stock or the combined voting power of the Company’s then outstanding voting securities
entitled to vote generally in the election of directors; or

 

ii.                                       Individuals
who, as of the date hereof, constitute the Board (as of the date hereof the  “Incumbent 
Board”) cease for any reason to 
constitute  at least a majority of
the Board,  provided that any person  becoming a director  subsequent 
to the date  hereof whose
election,  or nomination for the election
by the Company’s stockholders,  was  approved by a vote of at least a majority of the
directors then  comprising the Incumbent
Board shall be, for purposes of this Plan, 
considered  as though such person
were a member of the Incumbent Board; or

 

iii.                                    Approval by the
stockholders of the Company of a reorganization, merger or  consolidation, in each case, with respect to
which persons who were the stockholders of the Company immediately prior to
such reorganization, merger or consolidation do not, immediately thereafter,
own more than 50% of the combined voting power entitled to vote generally in
the election of directors of the reorganized, merged or  consolidated company’s then outstanding
voting securities, or a 

 

 

liquidation or dissolution of the Company or
of the sale of all or substantially all of the assets of the Company.

 

12.6  Company Intent.  The Company 
intends that the Plan comply in all respects with Rule 16b-3 under
the Act, and any  ambiguities or  inconsistencies in the  construction 
of the Plan shall be 
interpreted  to give  effect to such intention.

 

12.7  Requirements of Law.  The 
granting of Awards and the issuance of shares of Stock shall be subject
to all applicable laws, rules, and regulations, and to such approvals by
any  governmental  agencies or securities exchanges as may be
required.

 

12.8  Effective Date.  The Plan shall be effective upon its adoption
by the Board subject to approval by the Company’s  stockholders 
at the 1999 annual stockholders’ meeting.

 

12.9 Governing Law. The
Plan,  and all  agreements 
hereunder,  shall be construed in
accordance with and governed by the laws of the State of Delaware.

 

AMENDMENT NO. 1 TO THE

VALMONT 1999 STOCK PLAN

 

Effective April 26,
2004, Section 5.2 of the Valmont 1999 Stock Plan is amended and restated
in its entirety to read as follows:

 

“5.2 Cancelled, Terminated or Forfeited Awards. Any shares of Stock
subject to an Award which for any reason are cancelled, terminated or otherwise
settled without the issuance of any Stock shall again be available for Awards
under the Plan. In the event a Participant pays the exercise price of an Option
pursuant to Section 6.4 by transferring or having withheld shares of
stock, only the net number of Shares shall be considered utilized under the
Plan and the balance shall again be available for Award under the Plan.
Notwithstanding the immediately preceding sentence, the number of shares
available for Awards under the Plan shall not be increased by the number of any
previously issued shares surrendered in connection with the exercise of an
Award, more than ten years after the date of the most recent shareholder
approval of the Plan.”

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