Document:

Exhibit

Senior Executive Incentive Compensation Plan
Plan Description
Introduction
The purpose of the Senior Executive Incentive Compensation Plan is to advance the interests of the Company's stockholders by enhancing the Company's ability to attract, retain and motivate persons who make (or who are expected to make) important contributions to the Company.  Participants do not have any special right to continued employment by the Company because of their participation in the programs described below.  
The plan consists of an annual incentive program, which is referred to as the Short-Term Incentive, or STI, and a three-year incentive program, which is referred to as the Long-Term Incentive, or LTI.  
The STI and the LTI are designed to encourage participants to exert an extra effort to raise the Company's performance to the next level, both in the near term and over the course of several years, and reflect the pay-for-performance philosophy of the Company by linking the opportunity to earn additional compensation to the achievement of Company financial and strategic goals.  
Both the STI and the LTI were adopted by the Compensation Committee of the Board of Directors of the Company (the “Committee”) to begin on January 1, 2018.  The LTI, which involves the issuance of shares of Common Stock, has been adopted under the Sterling Construction Company, Inc. Stock Incentive Plan, which, among other things, provides for stock-based awards.  
______________

    

    
    

Senior Executive Incentive Compensation Plan v1 - Page 1 of 7

The Short-Term Incentive
The STI.
The STI is a program that has one or more annual goals, the achievement of which by the end of the year, is rewarded with a cash payment.  
Each participant in the STI is assigned an STI Target Amount, which is expressed as a percentage of his or her annual base salary Annual base salary means a Participant’s annual rate of pay effective January 1st or a proration (i) as of the first day he or she was eligible for participation in the plan or (ii) the effective date of any adjustment thereto.    in effect.  The STI Target Amount of each participant is set forth in a separate document that is provided to the participant at or before the beginning of the year.  Participants do not necessarily have the same STI Target Amounts.  
The STI goal or goals have three performance or achievement levels expressed as percentages of goal achievement and accordingly the amount of a participant's Target Amount that he or she can earn, namely Threshold performance, Target performance, and Maximum performance.  Achievement below the Threshold results in no payment and performance exceeding the Target is limited to the Maximum.  Target performance is established each year as the level that the Committee believes is reasonably achievable. Pay-outs for performance falling between two levels will be determined by linear interpolation.  
The STI performance goals and the Threshold, Target, and Maximum levels for a given year will be established by the Committee.  
Calculation of STI Payouts.  
At the end of the year, the level of performance of each goal (expressed as a percentage) will be determined from the Company's audited financial statements, or for non-financial goals, by some other objective means determined by the Committee.  
Once the level of performance of each goal has been determined, the payout, if any, to each participant for each goal is determined by multiplying the participant's STI Target Amount -
		
	•
	By his or her annual base salary in effect; then

		
	•
	By the percentage allocated to the particular goal (if there is more than one goal for the year); and then

		
	•
	By the performance level of the goal.

The Long-Term Incentive
The LTI.  
The LTI is a stock award that vests over a three-year period.  Each three-year period, which begins on January 1 of a given year and ends on December 31 of the third year thereafter, is referred to as a Program Cycle.  The LTI consists of two awards made as of the start of the Program Cycle:  
		
	•
	An award to the participant of Time-Based Restricted Stock Units (“RSUs”) that vest ratably over the Program Cycle provided the participant is an employee of the Company on the vesting date; and 

		
	•
	An award to the participant of Performance Share Units (“PSUs”) that vest ratably over the Program Cycle based on the Company achieving a pre-determined performance goal for each year in the Program Cycle and provided the participant is an employee of the Company on the vesting date, or as otherwise provided below (see Termination of Employment). 

Each participant in the LTI is assigned an LTI Target Amount, which is expressed as a percentage of his or her annual base salary in effect.  The LTI Target Amount of each participant is set forth in a separate document that is provided to the participant at or before the beginning of a Program Cycle.  Participants do not necessarily have the same LTI Target Amounts.  
The Time-Based Restricted Stock Units.  
A RSU is an unfunded and unsecured, non-transferable promise by the Company to issue under certain conditions one share of unrestricted Common Stock. RSUs will vest in three substantially equal annual installments on the first, second and third anniversary of the January 1 start date of the Program Cycle, provided that on the vesting date, the participant is still an employee of the Company.

Senior Executive Incentive Compensation Plan v1 - Page 2 of 7

The number of RSUs granted to a participant is computed by multiplying the participant's LTI Target Amount by 50% of his or her annual base salary and then by dividing the result by the closing price per share of the Common Stock on the trading day prior to the grant date (the “Closing Price”). 
The Performance Share Units.  
A PSU is an unfunded and unsecured, non-transferable promise by the Company to issue under certain conditions one share of unrestricted Common Stock.  PSUs will vest in three substantially equal annual installments on the first, second and third anniversary of the January 1 start date of the Program Cycle, based on the extent to which, if at all, the EPS goal is achieved and the participant is still an employee of the Company on the vesting date, or as otherwise provided below (see Termination of Employment).  
The number of PSUs awarded to a participant is computed by multiplying the participant's LTI Target Amount by 50% of his or her annual base salary and then by dividing the result by the Closing Price.  
The pre-determined performance goal and the Threshold, Target, and Maximum performance levels that determine payouts will be provided to participants at each grant.
All awards under the LTI are contingent on the participant signing the Company's form of LTI Award Agreement.  
No un-vested RSUs and no PSUs may be sold, assigned, transferred, pledged or otherwise disposed of or encumbered.  
Continuing Restrictions.  Vested RSUs and shares of Common Stock issued for vested PSUs remain subject to all the restrictions imposed on them by federal and state securities laws, rules and regulations, and by the Company's policies and rules relating to Common Stock.  
Forfeiture.  RSUs and PSUs that fail to vest are automatically forfeited, canceled, and cease to be subject to vesting.  No compensation is paid to a participant for any of his or her RSUs or PSUs that are forfeited.  

Example.  Attached as Appendix A is an example of the documentation that will be provided to a participant in the STI and LTI.
Termination of Employment.  In the event that a participant's employment with the Company terminates before the end of an STI Program Year and an LTI Program Cycle, his or her participation in the STI and LTI will be treated as follows:	
		
	Reason for Termination
	Effect on Participation

	Death or Permanent Disability (as defined in the award agreement)
	STI:  A prorated payout under the STI for the Program Year in which termination occurs will be made on the assumption that the Target performance for that year was met.
RSUs:  All unvested RSUs will vest in full.
PSUs:   PSUs for years in which the participant was an employee will vest based on actual performance.  PSUs for the remaining years will vest on the assumption that the Target performance level was met.  

	Change of Control (COC) (as defined in the Sterling Construction Company, Inc. Stock Incentive Plan)
	STI:  A prorated payout under the STI for the Program Year in which the COC occurs will be made on the assumption that the Target performance level was met.
RSUs:  All unvested RSUs will vest in full.
PSUs:  PSUs for years in which the participant was an employee will vest based on actual performance.  PSUs for the remaining years will vest on the assumption that the Target performance level was met.  

Senior Executive Incentive Compensation Plan v1 - Page 3 of 7

	
		
	Reason for Termination
	Effect on Participation

	Retirement (age 60 with a minimum of 10 years of service; or age 65 with a minimum of 5 years of service, both requiring 6 months written notice.)
	STI:  A prorated payout under the STI for the Program Year in which termination occurs will be made based on the actual level of performance for that year.  
RSUs:  If the participant has been an employee for at least six months since the start of a Program Cycle and executes a one-year non-compete and non-solicitation agreement with the Company, all unvested RSUs will vest in full.    
PSUs:  Provided that the participant executes a one-year non-compete and non-solicitation agreement with the Company, all his or her PSUs will vest in full based on actual performance achieved.   

	Without Cause 
	STI:  A payout under the STI for the Program Year in which termination occurred will be made based on the actual level of performance for that year, but pro-rated for the number of days during the Program Year that the participant was an employee.
RSUs:  All unvested RSUs will vest in full.
PSUs:  All unvested PSUs will be forfeited.

	For Cause (as defined in the award agreement)
	STI:  No payout will be made under the STI.
RSUs:  All unvested RSUs will be forfeited.  
PSUs.  All PSUs will be forfeited.

	Resignation by the Participant
	STI:  No payout will be made under the STI.
RSUs: All unvested RSUs will be forfeited.  
PSUs: All unvested PSUs will be forfeited.

	In a termination of employment, payouts based on the actual performance level achieved will be made at the same time as payouts are made to participants whose employment did not terminate.  Payouts based on the assumption that Target performance was achieved will be made irrespective of whether at the end of the Program Cycle, a greater or lesser performance level was actually achieved.  

Part III:  Terms Affecting Both Programs
Administration of the Programs.  The STI and LTI are both administered by the Committee.  Among other things, the Committee determines those employees who are eligible to participate in the programs; the participants' STI and LTI Target Amounts; the goals and other performance measures; and in the case of more than one goal for a Program Year or Program Cycle, the weighting of those goals.  
The Committee will correct any defects, supply any omissions, and reconcile any inconsistencies in the programs or in any award made under the programs in the manner and to the extent it believes necessary or advisable to implement the programs.  The decisions by the Committee on matters that are not expressly determined by award agreements will be made in the Committee's good faith discretion, including among other things, unusual transactions, acquisitions, and divestitures.  In the event of a conflict between the terms of this summary description and an award agreement, the terms of the award agreement will govern.  In the event of a conflict between this summary description and the Sterling Construction Company, Inc. Stock Incentive Plan, the terms of the Stock Incentive Plan will govern.  
STI - Taxes & Tax Consequences.  
		
	•
	Any payout under the STI will be made in the first quarter of the year following the end of an STI Program Year, but no later than March 15 of the following year.  

		
	•
	Payouts under the STI are treated as supplemental income for federal income tax withholding purposes.  The Company may, to the extent permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to the participant.  

		
	•
	Payouts may also be subject to state income tax withholding, and to any garnishment, levy or other wage 

Senior Executive Incentive Compensation Plan v1 - Page 4 of 7

withholding order affecting the participant.  
		
	•
	Payouts are not eligible for deferral into a participant's Company 401(k) account.  

LTI - Taxes & Tax Consequences.  
		
	•
	Generally, a participant will not recognize taxable income at the time RSUs and PSUs are received, but will recognize taxable income when they vest - that is, when the restrictions on RSUs and PSUs are converted into shares of Common Stock.  

		
	•
	The taxable income recognized by a participant is equal to the fair market value of the converted shares on the vesting date.  The Company may, to the extent permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to the participant.  

		
	•
	The Committee permits participants to satisfy the Company's LTI withholding requirements (but not the STI withholding requirements) by transferring to the Company shares of Common Stock that have vested under the LTI and that have a market value on the last trading day of the Program Cycle equal to the taxes that the Company is required to withhold.  

		
	•
	More information about the tax consequences of participating in the LTI is contained in the Plan Description of the Sterling Construction Company, Inc. Stock Incentive Plan.  

The Company's Claw-Back Policy.  The Company's Incentive Compensation and Claw-Back Policy applies to all payments made under the STI, and all RSUs and PSUs issued under the LTI.  A copy of the Claw-Back Policy is attached as Appendix B to this summary description.  It affects any incentive compensation (cash or stock) that was paid to a participant if the Company subsequently, for whatever reason, restates the financial statements on which all or a portion of that incentive compensation was based.
Change of Control.  A "Change of Control" of the Company is defined in the Sterling Construction Company, Inc. Stock Incentive Plan and generally refers to an acquisition of the Company or of a large portion of the Company through acquisition of shares of Common Stock, acquisition of assets of the Company, a merger, or the like.  
Governing Law.  The provisions of the STI and the LTI are governed by, and interpreted in accordance with, the laws of the State of Delaware, without regard to any of its conflicts of law provisions.  
Compliance with Section 409A of the Code.  The Company intends that the STI, the LTI and each award agreement either (a) complies with Section 409A of the Internal Revenue Code of 1986, as amended, and the guidance thereunder; or (b) is excepted from the provisions of Section 409A.  As a result, the Company has the right to amend the programs or any award agreement, or both, in order to cause them to be in compliance with Section 409A or to qualify for being excepted from the provisions of Section 409A, and to take any other actions under the programs and any award agreement to achieve that compliance or exception.  
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Senior Executive Incentive Compensation Plan v1 - Page 5 of 7

Appendix A
Example of Participant Documentation
[Year]
	
			
	STI

	[Name] Base Salary
	$100,000
	 

	[Name] STI Target Amount
	80% - $80,000
	 

	Goal I - [Year] EBITDA of $______
Goal Weighting:  75%

	Threshold
$______
	Target
$ ______
	Maximum
$ ______

	Payout:         50%
	100%
	200%

	Goal II - [Other]
Goal Weighting:  25%

	Threshold
$______
	Target
$ ______
	Maximum
$ ______

	Payout:         50%
	100%
	200%

	 
	 
	 

	LTI

	LTI Target Amount
	120% - $120,000
	 

	EPS Goal / Weighting:
	 
	 

	Year 1 / 33/3%
	Year 2 / 33.3%
	Year 3 / 33.4%

	Threshold $ _____ per share
	Threshold $ _____ per share
	Threshold $ _____ per share

	Payout:          50%
	50%
	50%

	Target $ _____ per share
	Target $ _____ per share
	Target $ _____ per share

	Payout:          100%
	100%
	100%

	Maximum $ _____ per share
	Maximum $ _____ per share
	Maximum $ _____ per share

	Payout:          200%
	200%
	200%

	RSUs
@ Target: 1,250
	RSUs
@ Target: 1,250
	RSUs
@ Target: 1,250

	PSUs 
@ Target: 1,250
	PSUs
 @ Target: 1,250
	PSUs 
@ Target: 1,250

	EXAMPLE: Closing Price/Share: $16.00
RSUs @ Target:  3,750
PSUs @ Target:  3,750
	 

Senior Executive Incentive Compensation Plan v1 - Page 6 of 7

Appendix B
Sterling Construction Company, Inc.
Incentive Compensation and Claw-Back Policy
		
	1.
	It is the policy of Sterling Construction Company, Inc., including its subsidiaries, (the “Company”) that the amount of any bonus or other incentive compensation (together, "Incentive Compensation") that has already been paid to an employee of the Company (either in cash or in common stock of the Company, or both) that was based on financial statements that are subsequently restated (other than the retroactive changes in accounting as required by GAAP), may, at the sole discretion of the Board of Directors through its Compensation Committee be adjusted either by repayment by the employee to the Company or by making an additional payment to the employee so that the employee will have received no more and no less than the amount that he or she would have received had the financial statements been restated before the amount of the Incentive Compensation was determined.

		
	2.
	If an adjustment is made as a result of the restatement and the Incentive Compensation is shown to have been -

		
	(a)
	Overpaid, the employee shall return the amount of the overpayment within sixty (60) days of a written demand therefor by the Company. 

		
	(b)
	Underpaid, the Company shall pay the amount of the underpayment to the employee within thirty (30) days of the completion of the restatement.  

In the event that any repayment by an employee under this policy involves the re-conveyance to the Company of shares of common stock that have been sold by the employee, the proceeds realized from the sale shall be repaid to the Company.  If the shares shall have been otherwise transferred, or shall have been pledged or encumbered, the employee shall convey to the Company either -   
		
	(i)
	The market value of such shares at the date of such transfer, pledge or encumbrance or at the date the demand for repayment is made, whichever is higher; or 

		
	(ii)
	An equivalent number of shares of common stock of the Company having such market value.  

		
	3.
	Any payment and/or conveyance of shares to the Company under this policy shall be made whether or not the employee required to make the payment or conveyance was culpable with respect to the error, event, act or omission that caused the restatement to be made, but nothing in this policy shall be construed to prevent the Company from pursuing other remedies against the employee if the Company determines that he or she was in fact culpable in any respect.

		
	4.
	In the event of a restatement of the financial statements of the Company due to the action(s) or inaction(s) of an employee subject to paragraph 1 herein, the Board of Directors, through its Compensation Committee, may in its sole discretion seek to recover from any said current or former employee of the Company who received incentive-based compensation (including cash or common stock awarded as compensation) during the 3-year period prior to the date on which the Company is required to prepare a restatement, the excess of what was paid to said employee, including the cancellation and/or recovery of shares of common stock of the Company that were awarded, due to the accounting restatement. 

________________
Adopted by the Board of Directors on January 18, 2011
Amended January 17, 2018
    

Senior Executive Incentive Compensation Plan v1 - Page 7 of 7Exhibit

STERLING CONSTRUCTION COMPANY, INC.
2018 Long-Term Incentive Award Agreement
This Long-Term Incentive Award Agreement (this "Agreement") is made effective as of January 1, 2018 (the "Effective Date") and is entered into between you, [Name of Participant], and Sterling Construction Company, Inc. (the "Company") pursuant to the Company’s 2018 Senior Executive Incentive Compensation Plan, a copy of a description of which has been furnished to you (the “Plan Description.”) The restricted stock units referred to in this Agreement (the “Award”) are issued under the Company’s Stock Incentive Plan, which is incorporated into this Agreement by this reference.  In the event of a conflict between the terms of this Agreement and the Plan Description, the terms of this Agreement will govern.  In the event of a conflict between the Plan Description and the Stock Incentive Plan, the terms of the Stock Incentive Plan will govern.  
By signing this Agreement, you acknowledge that you have received a copy of the Plan Description, the Stock Incentive Plan, and that you accept this award.    
In consideration of the foregoing recitals and the covenants made in this Agreement, you and the Company agree as follows:
		
	1.
	The 2018 Long-Term Incentive.  On January 17, 2018, the Compensation Committee of the Board of Directors of the Company (the "Committee") established the 2018 Senior Executive Incentive Compensation Plan, which includes a Long-Term Incentive (the "LTI") which gives you and other participants the opportunity to earn shares of common stock of the Company.  References in this Agreement to "common stock" mean the Company's common stock, $0.01 par value per share.  The LTI is a stock award that vests over a three-year period. Each three-year period, which begins on January 1st and ends on December 31st is referred to in this Agreement as the "Program Cycle."  The LTI consists of two awards made as part of the Program Cycle, as follows:

		
	(a)
	Restricted Stock Units.  The Company hereby awards to you under the terms and conditions of this Agreement [#,###] restricted stock units.  These shares are referred to in this Agreement as (“RSUs”). Each of the RSUs is an unfunded and unsecured, non-transferable promise, subject to the vesting and other terms and conditions of this Agreement, to issue to you one share of common stock if the RSU vests.    

		
	(i)
	Vesting.  If you are an employee of the Company on each December 31st of the Program Cycle, the Restrictions with respect to one-third of the RSUs will expire, and such RSUs will be converted on a one-to-one basis to vested shares of Common Stock.    If you terminate employment prior to December 31st, your unvested RSUs will be automatically forfeited except as otherwise provided below in Section 3 of this Agreement.

		
	(ii)
	Restrictions on Transfer and Right to Shares.  You may not sell, assign, transfer, pledge or otherwise dispose of, or encumber any of the RSUs, or any of your rights or interests in them except by your will or according to the laws of descent and distribution (the "Restrictions"). You shall not have any right in, to or with respect to any of the shares of Common Stock  (including any voting rights or rights with respect to cash dividends paid on the Common Stock) issuable under the Award until RSUs are converted into shares.  

[Name of Participant] LTI Award Agreement Dated as of January 1, 2018    Page 1 of 5
{N3540571.1}

		
	(b)
	Performance Share Units.  The Company hereby also awards to you under the terms and conditions of this Agreement [#,###] performance share units ("PSUs"), which amount represents the target award (the “Target PSUs”).  Each of the PSUs is an unfunded and unsecured, non-transferable promise, subject to the vesting and other terms and conditions of this Agreement, to issue to you one share of common stock if the PSU vests.  

		
	(i)
	Restrictions on Transfer and Right to Shares.  The PSUs are subject to the same restrictions on transfer and rights to shares as are described above in Section 2(a)(ii) for the RSUs.  

		
	(ii)
	Vesting - Performance Levels.  

		
	(A)
	One-third of the Target PSUs are eligible to be converted into shares of common stock and vest depending on the Company achieving its Earnings Per Share goal (the “EPS Goal”) at each December 31st during the Program Cycle.  

		
	(B)
	The following table shows the percentage of one-third of the Target PSUs that would vest if the Company achieves its EPS Goal during each year in the Program Cycle. Payouts for performance that fall between two levels will be determined by linear interpolation.  Any fractional share that results from the calculations will be rounded up to the next whole share.  As can be seen in the table, it is possible on the one hand for more PSUs to vest than the number of Target PSUs, and at the other extreme, it is possible for none of the Target PSUs to vest.  One-third of the Target PSUs will vest (subject to attainment of the applicable EPS Goal) in the year following the end of each calendar year in the Program Cycle upon the Company’s public release of earnings for the applicable calendar year setting forth the EPS results as of December 31st,. The Company shall calculate the resulting payout percentage based on the EPS results, and any earned shares of Common Stock will be issued to you within [ten] days after vesting. If the applicable threshold EPS Goal is not achieved for a given calendar year in the Program Cycle,  one-third of the Target PSUs will terminate and be forfeited. 

	
				
	Company's EPS Goal 

	 
	2018
	2019
	2020

	Maximum
Payout: 200%
	$1.00 per share
	$1.06 per share
	$1.12 per share

	Target
Payout: 100%
	$0.87 per share
	$0.92 per share
	$0.98 per share

	Threshold
Payout: 50%
	$0.75 per share
	$0.80 per share
	$0.84 per share

		
	2.
	Forfeiture.  

		
	(a)
	Any RSUs or PSUs that do not vest are automatically forfeited, canceled, and cease to be subject to vesting.  

		
	(b)
	No compensation will be paid to you for any of your RSUs or PSUs that are forfeited.  

		
	3.
	Termination of Employment.  In the event your employment with the Company terminates before the end of the Program Cycle, your RSUs and PSUs will be treated as follows: 

[Name of Participant] LTI Award Agreement Dated as of January 1, 2018    Page 2 of 5
{N3540571.1}

	
		
	Reason for Termination
	Effect on Participation

	Death or Permanent Disability (as defined below)
	RSUs:  All unvested RSUs will vest in full.
PSUs:   PSUs for years in which the participant was an employee will vest based on actual performance.  PSUs for the remaining years will vest on the assumption that the Target performance level was met.  

	Change of Control (COC) (as defined in the Sterling Construction Company, Inc. Stock Incentive Plan)
	RSUs:  All unvested RSUs will vest in full.
PSUs:  PSUs for years in which the participant was an employee will vest based on actual performance.  PSUs for the remaining years will vest on the assumption that the Target performance level was met.  

	Retirement (age 60 with a minimum of 10 years of service; or age 65 with a minimum of 5 years of service, both requiring 6 months written notice.)
	RSUs:  If the participant has been an employee for at least six months since the start of a Program Cycle and executes a one-year non-compete and non-solicitation agreement with the Company, all unvested RSUs will vest in full.    
PSUs:  Provided that the participant executes a one-year non-compete and non-solicitation agreement with the Company, all his or her PSUs will vest in full based on actual performance achieved.   

	Without Cause 
	RSUs:  All unvested RSUs will vest in full.
PSUs:  All unvested PSUs will be forfeited.

	For Cause (as defined below)
	RSUs:  All unvested RSUs will be forfeited.  
PSUs.  All PSUs will be forfeited.

	Resignation by the Participant
	RSUs: All unvested RSUs will be forfeited.  
PSUs: All unvested PSUs will be forfeited.

	In a termination of employment, payouts based on the actual performance level achieved will be made at the same time as payouts are made to participants whose employment did not terminate.  Payouts based on the assumption that Target performance was achieved will be made irrespective of whether at the end of the Program Cycle, a greater or lesser performance level was actually achieved.  

		
	(a)
	Cause & Permanent Disability.  For purposes of this Agreement -

		
	(i)
	The term Cause and the terms permanent disability or permanently disabled will have the meanings set forth in any employment agreement between you and the Company that is in effect when your employment terminates.  

		
	(ii)
	If there is no employment agreement between you and the Company then in effect, or if there is an employment agreement in effect, but either or both of those terms are not defined in the agreement -

		
	(A)
	Whether you have become permanently disabled will be determined in the good faith judgement of the Compensation Committee; and  

		
	(B)
	The word Cause will mean the termination of your employment for one or more of the following reasons:

		
	•
	You failed to perform your duties and/or responsibilities in a satisfactory manner after being given written notice of the failure and a reasonable period of time in which to cure the failure.  

		
	•
	You were grossly negligent in the performance of your duties and/or responsibilities.

		
	•
	You refused to perform your duties and/or responsibilities.  

		
	•
	You committed any act of theft or other dishonesty, including, but not limited to any intentional misapplication of the Company's or its affiliates' funds or other property.  

[Name of Participant] LTI Award Agreement Dated as of January 1, 2018    Page 3 of 5
{N3540571.1}

		
	•
	You were convicted of any other criminal activity (other than a traffic violation or a minor misdemeanor.) 

		
	•
	You participated in any activity involving moral turpitude that is or could reasonably be expected to be injurious to the business or reputation of the Company.  

		
	•
	You used alcohol immoderately and/or used non-prescribed narcotics that had the effect of adversely and materially affecting your performance of your duties and/or responsibilities.

		
	•
	You committed a material breach of a Company policy.

		
	4.
	Issuance of RSUs & Converted PSU's.  

		
	(a)
	Your RSUs, as well as any PSUs that vest are converted into shares of common stock, and will in each case be issued to you as a "book entry" in an account in your name at the Company's transfer agent.  You will be advised of the issuance.  

		
	(b)
	When the shares are no longer subject to the Restrictions, you may leave them in your account at the transfer agent; you may have them electronically transferred to your brokerage account; or on written request to the Company's Chief Human Resources Officer, you may have them delivered to you in the form of a paper stock certificate.  

		
	5.
	Other Terms and Conditions.  

		
	(a)
	Continuing Restrictions.  Vested RSUs and shares of common stock issued for vested PSUs remain subject to all restrictions imposed on them by federal and state securities laws, rules and regulations, and by the Company's policies and rules relating to common stock.  

		
	(b)
	Claw-Backs.  All RSUs, PSUs and shares of common stock awarded and/or issued under this Agreement are subject to recovery by the Company under the terms of the Company's Incentive Compensation and Claw-Back Policy.  A copy of the policy is attached as Appendix B to the Plan Description.  

		
	(c)
	Adjustments   Any additional shares of common stock that are issued during the Program Cycle as a result of stock dividends, stock splits or recapitalizations (whether by way of mergers, consolidations, combinations or exchanges of shares or the like) will be subject to the terms and conditions of this Agreement, and are deemed included in the definition of the terms “RSU” and “PSU”.  In the event of any stock dividend, stock split or recapitalization, the number of your remaining unvested RSUs or PSUs will be adjusted appropriately to reflect the event.  

		
	(d)
	Securities & Other Laws.  The Company may require as a pre-condition to the delivery to you of any shares of common stock that they have been duly listed, upon official notice of issuance, upon any national securities exchange or automated quotation system on which the Company's common stock is then listed or quoted; and that either (i) a registration statement under the Securities Act of 1933 (the "Act") relating to the shares is in effect; or (ii) in the opinion of counsel to the Company, the issuance of the shares is exempt from registration under the Act.  You agree to make the undertakings and agreements with the Company that the Company may reasonably require, and to take such other steps, if any, as counsel to the Company considers necessary to comply with any law applicable to the shares.  The shares may be made subject to a stop order or other restriction if counsel for the Company considers it necessary to comply with applicable laws.  

		
	(e)
	Taxes.  You are responsible for any and all taxes that become payable by you by reason of the award and/or vesting of RSUs and PSUs. Prior to the Company issuing shares, you agree to pay to the Company or to make provision satisfactory to the Company for the payment of any taxes required by law to be paid by you, or that are required to be withheld from you by the Company relating to the shares, no later than the date of the event creating the tax liability. To the extent permitted by law, the Company has the right to retain from shares issuable under this Agreement or from salary or any other amounts payable to you, a value sufficient to satisfy any tax-withholding obligation. 

[Name of Participant] LTI Award Agreement Dated as of January 1, 2018    Page 4 of 5
{N3540571.1}

		
	(f)
	Compliance with Section 409A of the Code.  The Company intends that this Agreement either (a) complies with Section 409A of the Internal Revenue Code of 1986, as amended, and the guidance thereunder; or (b) is excepted from the provisions of Section 409A.  As a result, the Company has the right to amend this Agreement and the Plan Description, or both, in order to cause them to be in compliance with Section 409A, or to qualify for being excepted from the provisions of Section 409A, and to take any other actions under the Plan Description and this Agreement to achieve that compliance or exception.  

		
	(g)
	Decisions by the Committee.  Any dispute or disagreement that arises under, or as a result of, or relating to, this Agreement will be resolved by the Committee in its sole and absolute discretion, and any resolution or any other determination by the Committee, and any interpretation by the Committee of the terms and conditions of this Agreement will be final, binding, and conclusive on all persons affected by it.

		
	(h)
	When used in this Agreement, the word "will" is either predictive or is synonymous with the word "shall", meaning "required"; and the word "may" means "permitted."

		
	(i)
	Governing Law.  The provisions of the 2018 Long-Term Incentive and all awards made under this Agreement are governed by, and will be interpreted in accordance with, the laws of the State of Delaware, without regard to any of its conflicts of law provisions.

In Witness Whereof, the parties have signed this Agreement to be effective as of the Effective Date.  
	
		
	Sterling Construction Company, Inc.

By: ____________________________________
Name:
Title:
	

_____________________________________
[Name of Participant]

[Name of Participant] LTI Award Agreement Dated as of January 1, 2018    Page 5 of 5
{N3540571.1}

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