Document:

Ex-4.37

 

     Exhibit 4.37

     

20 January 2007

Dr Jaques Gonella

JG Consulting AG

Hauptstrasse 16

4132 Muttenz

Switzerland

Dear Jacques

PROTHERICS PLC (THE “COMPANY”) AND YOUR APPOINTMENT
 TO THE BOARD AS A NON-EXECUTIVE DIRECTOR

Following
the recommendation of the nomination committee, the board of the
Company (the “Board”)
is pleased to hear that you have accepted our offer to join the Board as a non-executive director
with effect from 24 January 2007. This letter confirms the main terms of your appointment to this
office. You should be aware that your appointment will have to be ratified by the Company’s
shareholders at the annual general meeting following your appointment, and is subject to the
Company’s articles of association as amended from time to time. If there is a conflict between
the terms of this letter and the articles of association then the articles shall prevail.

DUTIES

	1.	 	You will be informed how the Board is structured and what authorities are delegated to
the Chief Executive and his colleagues.
	 
	2.	 	The Board as a whole is collectively responsible for promoting the success of the
Company by directing and supervising the Company’s affairs. The Board’s role is to:

	 	(a)	 	provide entrepreneurial leadership to the Company within a framework of
prudent and effective controls which enable risk to be assessed and managed;
	 
	 	(b)	 	set the Company’s strategic aims, ensure that the necessary financial and
human resources are in place for the Company to meet its objectives, and review management performance; and

	 	 	 	 	 	 	 
	NORTH AMERICA

	 	EUROPE
	 	AUSTRALASIA
	 	WWW.PROTHERICS.COM
	PROTHERICS INC

	 	PROTHERICS PLC
	 	PROTHERICS AUSTRALASIA P/L
	 	REGISTERED OFFICE:
	5214 MARYLAND WAY

	 	3 CREED COURT
	 	RSD TURRETFIELD RC
	 	PROTHERICS PLC 
	SUITE #405

	 	5 LUDGATE HILL
	 	HOLLAND RD, ROSEDALE
	 	THE HEATH BUSINESS & TECHNICAL PARK
	BRENTWOOD TN 37027 USA

	 	LONDON EC4M 7AA UK
	 	SA 5350 AUSTRALIA
	 	RUNCORN, CHESHIRE WA7 4QX UK 
	Tel: +1 615 327 1027

	 	Tel: +44 (0)20 7246 9950
	 	Tel: +61 (0)8 8524 9700
	 	REGISTERED IN ENGLAND AND WALES 
	 
	 	 	 	 	 	 NO. 2459087

 

 

	 	(c)	 	set the Company’s values and standards and ensure that its obligations
to its shareholders and others are understood and met.

	3.	 	In your role as a non-executive director you are required (with the other non-executives) to:

	 	(a)	 	constructively challenge and contribute to the development of strategy;
	 
	 	(b)	 	scrutinise the performance of management in meeting agreed goals and
objectives and monitor the reporting of performance;
	 
	 	(c)	 	satisfy yourself that financial information is accurate and that financial
controls
and systems of risk management are robust and defensible;
	 
	 	(d)	 	be responsible for determining appropriate levels of remuneration of
executive
directors and have a prime role in appointing, and where necessary removing,
senior management and in succession planning.

	4.	 	You will be required to:

	 	(a)	 	exercise relevant powers under the Company’s memorandum and articles of
association;
	 
	 	(b)	 	perform your duties faithfully, efficiently and diligently and use all
reasonable
endeavours to promote the interests and reputation of the Company;
	 
	 	(c)	 	comply with your fiduciary duties;
	 
	 	(d)	 	report the wrongdoing (including acts of misconduct dishonesty, breaches of
contract, fiduciary duty, company rules or the rules of the relevant regulatory
bodies) whether committed, contemplated or discussed by any other director or
member of staff of the Company and any group company of which you were
aware, to the Board immediately, irrespective of whether this may involve some
degree of self incrimination;
	 
	 	(e)	 	serve on the nomination, audit and remuneration committees of the Board and
attend, wherever possible, all meetings of the committees (committee meetings
may occasionally be scheduled separately from Board meetings);
	 
	 	(f)	 	attend all general meetings of the Company;
	 
	 	(g)	 	attend, wherever possible, all meetings of the Board, which meets on an
agreed
schedule (in 2007, 11 meetings are scheduled). These are mostly at the
Company’s offices at Ludgate Hill, London, with occasional meetings at other
Company locations;
	 
	 	(h)	 	consider all relevant papers in advance of each meeting in order to
ensure that you can play a full part in the work of the Board and its committees;

2

 

	 	(i)	 	bring independent judgement to bear on issues of strategy, policy,
resources, performance and standards of conduct;
	 
	 	(j)	 	make yourself available (on reasonable notice) to provide ad hoc
advice to individual directors of the Company;
	 
	 	(k)	 	provide guidance and direction in planning, developing and enhancing
the future strategic direction of the Company;
	 
	 	(I)	 	share responsibility with the other directors for the effective
control of the Company and with the other non-executive directors for the
supervision of the executive directors; and
	 
	 	(m)	 	comply with the Financial Services Authority’s Model Code for securities
transactions by directors of listed companies and with any code of conduct
relating to securities transactions by directors and specified employees issued
by the Company from time to time.

	5.	 	Overall, the Company anticipates that you will need to spend an average of one day
per month fulfilling your duties after the induction phase. This will include the
board
meetings, annual general meetings, annual strategy meeting and site visits. In
addition
you will be expected to spend an appropriate period of time preparing for each meeting. By accepting this appointment you confirm that you are able to commit sufficient time
to
the role to meet the Company’s expectations.
	 
	6.	 	The Company seeks to adhere to the principles in the Cadbury Report on Corporate
Governance, the Greenbury Report on Directors’ Remuneration, the Hampel Report on
Corporate Governance and the Turnbull Report on Internal Control. You will be
expected to carry out your duties in accordance with the principles set out in these
reports, copies of which are available from the Company Secretary.
	 
	7.	 	The performance of the Board and its committees, and of individual directors, is
evaluated annually.
	 
	8.	 	You shall, in pursuance of your duties hereunder, be entitled to request such
information from the Company, its subsidiary undertakings (as defined in section 258
of
the Companies Act 1985 as amended from time to time) or its or their employees,
consultants or professional advisers as may be reasonably necessary to enable you
to perform your role effectively. The Company shall use its reasonable endeavours
to provide such information promptly.

CONFIDENTIALITY

During the course of your duties you will have access to confidential information
belonging to the Company and its subsidiary undertakings (including, but not limited to,
details of suppliers, customers, margins, know-how, marketing and other relevant business
information). Unauthorised disclosure of this information could seriously damage the
Company. You

3

 

therefore undertake not to use or disclose such information save in pursuance of your duties or
in accordance with any statutory obligation or court or similar order.

Your attention is drawn to the rules relating to the disclosure of price sensitive information
You must not make any statement or do anything which may be a breach of these rules
without prior clearance from the Chairman.

OUTSIDE INTERESTS

The agreement of the chairman should be sought before you accept any new outside interests which
might affect the time you are able to devote to this appointment.

In accordance with the principles set out in the Combined Code you must inform the Board of any
interests which you have, or acquire, which might reasonably be thought to jeopardise  your
independence from the Company.

During your appointment you must not take up any office or employment with, or have any interest
in, any firm or company which is or may be in direct or indirect competition with the Company.

The Board have determined you to be independent, according to the provisions of the Combined
Code.

INSURANCE

During your appointment you will be covered by the Company’s directors’ and officers’ liability
insurance on the terms currently in place for the rest of the Board. The current indemnity limit
is £20 million. A copy of the policy document is available from the Company Secretary. The
Company does not guarantee to maintain this insurance cover after the termination of your
appointment, but you will continue to be covered by the policy or any replacement on the same
basis as the rest of the Board.

APPOINTMENT

Your appointment will commence on 24 January 2007 and is terminable by three months’ notice
from either the Company or yourself. It is envisaged that your appointment will initially be
for a term of one year. The continuation of your appointment depends upon satisfactory
performance and re-election at forthcoming Annual General Meetings. Not withstanding the
aforementioned notice provisions, the Company may terminate your appointment with immediate
effect if you have:

	(a)	 	committed any serious breach or (after warning in writing) any repeated or continued
material breach of your obligations to the Company (which include an obligation not to
breach your fiduciary duties);
	 
	(b)	 	been guilty of any act of dishonesty or serious misconduct or any conduct which (in the
reasonable opinion of the Board) tends to bring you or the Company into disrepute; or

4

 

	(c)	 	been declared bankrupt or have made an arrangement or composition with of for the
benefit of your creditors,

or for any other reason set out in the Company’s articles of association.

All appointments and reappointments to the Board are, of course, subject to the Company’s
articles of association. If you are not re-elected to your position as a director of the Company
by the shareholders at any time and for any reason then this appointment shall terminate
automatically and with immediate effect.

On termination of the appointment you shall only be entitled to such fees as may have accrued to
the date of termination together with reimbursement in the normal way of any expenses properly
incurred prior to that date.

REMUNERATION

The fee is £25,000 per annum (subject to income tax and statutory deductions) and is payable
monthly in arrears. It may be subject to upward review at the discretion of the Company after one
year. If you undertake any special duties beyond those specified in this letter you will not
receive any additional payment unless agreed with the Board in advance.

EXPENSES

The Company will reimburse you for any expenses that you may incur properly and reasonably in
performing your duties and which are properly documented. Such expenses would include reasonable
legal fees if circumstances should arise in which it was necessary for you to seek separate legal
advice about the performance of your duties. In such a situation, you are required to discuss the
issue either with me or with one of your non-executive colleagues in advance.

INDEPENDENT PROFESSIONAL ADVICE

In some circumstances you may think that you need professional advice in the furtherance of your
duties as a director. It may also be appropriate for you to seek advice from independent advisers
at the Company’s expense. A copy of the Board’s agreed procedure under which directors may obtain
such independent advice is available from the Company Secretary. The Company will reimburse the
full cost of any expenditure incurred in accordance with the policy.

DATA PROTECTION

By signing this agreement you consent to the Company holding and processing information about you
which you may provide or which it may acquire during the course of this agreement, providing such
use is in accordance with the Data Protection Act 1998. In particular you consent to the Company
holding and processing:

	(a)	 	personal data relating to you, for administrative and management purposes; and

5

 

	(b)	 	“sensitive personal data” relating to you (as defined in the Data Protection
Act 1998) including, for example:

	 	(i)	 	Your health records and any medical reports given to or obtained by the
Company, for monitoring sick leave and taking decisions as to your fitness to
work;
	 
	 	(ii)	 	your racial or ethnic origin (in order to monitor compliance
with the Race Relations Act 1976);
	 
	 	(iii)	 	any information relating to criminal proceedings in which
you have been involved for compliance with the Company’s legal or regulatory
requirements, for insurance purposes, and in relation to its obligations to
third parties.

You also consent to the Company making such information available to:

	(a)	 	its group companies, offices and (if necessary) customers outside the European
Economic Area in order to further its business interests; and
	 
	(b)	 	its group companies, its offices, those who provide products or services to the
Company, regulatory authorities, governmental or quasi governmental organisations
and potential purchasers of the Company or its business.

THIRD PARTY RIGHTS

The Contracts (Rights of Third Parties) Act 1999 shall not apply to this agreement. No person
other than the parties to this agreement and any group company shall have any rights under it and
it will not be enforceable by any person other than those parties.

Please sign and return the enclosed copy of this letter to confirm your agreement to the above
terms. We will separately also ask you to sign a form 288 for filing at Companies House.

The Company looks forward to working with you in the future.

Yours sincerely

Stuart Wallis

for and on behalf of Protherics Plc

6

 

I, Jacques Gonella, agree to the above terms of appointment as a non-executive director of
Protherics Plc.

	 	 	 	 	 
	Signature:

	 	/s Jacques Gonella
 

	 	  
	 
	 	 	 	 
	Date:

	 	24/2/04	 	 
	 
	 	 	 	 
	In the presence of:	 		 
	 
	 	 	 	 
	Witness signature:

	 	-s- Julie Vickers
 

	 	 
	 
	 	 	 	 
	Witness name:

	 	JULIE VICKERS	 	 
	 
	 	 	 	 
	Witness address:

	 	57 WHITE PARK CLOSE	 	 
	 

	 	MIDDLEWICH	 	 
	 

	 	CHESHIRE	 	 
	 

	 	CWI0 9GB, U.K.	 	 
	 
	 	 	 	 
	Witness occupation:

	 	CHARTERED SECRETARY	 	 

7EX-4.(C) PROFIT SHARING RETIREMENT PLAN

 

EXHIBIT 4(c)

VULCAN MATERIALS COMPANY

401(k) AND PROFIT SHARING RETIREMENT PLAN

Effective July 15, 2007

 

 

VULCAN MATERIALS COMPANY

401(k) AND PROFIT SHARING RETIREMENT PLAN

     THIS AGREEMENT, dated this 13th day of July, 2007, but effective as of July 15, 2007, is made
by VULCAN MATERIALS COMPANY, a New Jersey corporation (hereinafter referred to as the “Company”),

W I T N E S S E T H

     WHEREAS, the Company desires to adopt and maintain the “Vulcan Materials Company 401(k) and
Profit Sharing Retirement Plan for the benefit of certain employees (the “Plan”); and

     NOW, THEREFORE, the Plan is hereby adopted, effective as of July 15, 2007 to read as follows:

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	SECTION 1 DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	1.1 ACCRUED BENEFIT
	 	 	1	 
	1.2 ADJUSTMENT FACTOR
	 	 	1	 
	1.3 ADMINISTRATIVE COMMITTEE
	 	 	1	 
	1.4 ADMINISTRATOR
	 	 	1	 
	1.5 ANNUAL ADDITION
	 	 	1	 
	1.6 ANNUAL COMPENSATION
	 	 	1	 
	1.7 APPEALS COMMITTEE
	 	 	1	 
	1.8 APPLICABLE DIVIDENDS
	 	 	1	 
	1.9 AVERAGE CONTRIBUTION PERCENTAGE
	 	 	1	 
	1.10 AVERAGE DEFERRAL PERCENTAGE
	 	 	2	 
	1.11 BASIC MATCHING CONTRIBUTION ACCOUNT
	 	 	2	 
	1.12 BASIC MATCHING CONTRIBUTIONS
	 	 	2	 
	1.13 BEFORE-TAX CONTRIBUTION
	 	 	2	 
	1.14 BEFORE-TAX CONTRIBUTIONS
	 	 	2	 
	1.15 BENEFICIARY
	 	 	2	 
	1.16 BOARD
	 	 	3	 
	1.17 BONUS MATCHING CONTRIBUTION
	 	 	3	 
	1.18 BONUS MATCHING CONTRIBUTION ACCOUNT
	 	 	3	 
	1.19 CATCH-UP CONTRIBUTIONS
	 	 	3	 
	1.20 CLAIMANT
	 	 	3	 
	1.21 COMPANY
	 	 	3	 
	1.22 COMPANY COMMON STOCK
	 	 	3	 
	1.23 COMPENSATION
	 	 	3	 
	1.24 CONTRIBUTION PERCENTAGE
	 	 	3	 
	1.25 DEFERRAL PERCENTAGE
	 	 	4	 
	1.26 DELEGATE
	 	 	4	 
	1.27 DIRECT ROLLOVER
	 	 	5	 
	1.28 DISABILITY
	 	 	5	 
	1.29 DISTRIBUTEE
	 	 	5	 
	1.30 DIVIDEND PAYOUT ACCOUNT
	 	 	5	 
	1.31 EARNINGS
	 	 	5	 
	1.32 ECONOMIC PROFIT
	 	 	5	 
	1.33 EFFECTIVE DATE OF THE PLAN
	 	 	5	 
	1.34 ELIGIBLE EMPLOYEE
	 	 	5	 
	1.35 ELIGIBLE PARTICIPANT
	 	 	5	 
	1.36 ELIGIBLE RETIREMENT PLAN
	 	 	6	 
	1.37 ELIGIBLE ROLLOVER DISTRIBUTION
	 	 	6	 
	1.38 EMPLOYEE
	 	 	7	 
	1.39 EMPLOYING COMPANY
	 	 	7	 
	1.40 ESOP PLAN
	 	 	7	 
	1.41 EMPLOYING COMPANY DATE
	 	 	7	 
	1.42 EMPLOYMENT SERVICE
	 	 	7	 

i 

 

	 	 	 	 	 
	1.43 EXCESS AGGREGATE CONTRIBUTIONS
	 	 	7	 
	1.44 EXCESS BEFORE-TAX CONTRIBUTIONS
	 	 	7	 
	1.45 EXCESS DEFERRALS
	 	 	7	 
	1.46 HIGHLY COMPENSATED EMPLOYEE
	 	 	7	 
	1.47 INTERNAL REVENUE CODE OR CODE
	 	 	8	 
	1.48 INVESTMENT ACCOUNT
	 	 	8	 
	1.49 LIMITATION YEAR
	 	 	8	 
	1.50 LOAN
	 	 	8	 
	1.51 MAXIMUM BEFORE-TAX PERCENTAGE
	 	 	8	 
	1.52 NORMAL RETIREMENT DATE
	 	 	8	 
	1.53 OPTIONS
	 	 	8	 
	1.54 PARTICIPANT
	 	 	8	 
	1.55 PLAN
	 	 	8	 
	1.56 PLAN YEAR
	 	 	8	 
	1.57 PROFIT SHARING CONTRIBUTION:
	 	 	8	 
	1.59 RELATED EMPLOYER
	 	 	8	 
	1.60 REQUIRED BEGINNING DATE:
	 	 	9	 
	1.61 ROLLOVER ACCOUNT
	 	 	9	 
	1.62 ROLLOVER CONTRIBUTION
	 	 	9	 
	1.63 SAVINGS FUND
	 	 	9	 
	1.64 TERMINATION OF EMPLOYMENT SERVICE
	 	 	9	 
	1.65 TOTAL ACCOUNT
	 	 	9	 
	1.66 TRANSFER ACCOUNT: The Account described in Section
	 	 	9	 
	1.67 TRANSFER CONTRIBUTION
	 	 	9	 
	1.68 TRUSTEE
	 	 	9	 
	 
	 	 	 	 
	SECTION 2 PARTICIPATION IN THE PLAN
	 	 	10	 
	 
	 	 	 	 
	2.1 REQUIREMENTS FOR BECOMING A PARTICIPANT
	 	 	10	 
	2.2 PARTICIPATION
	 	 	10	 
	 
	 	 	 	 
	SECTION 3 SERVICE
	 	 	11	 
	 
	 	 	 	 
	3.1 EMPLOYMENT SERVICE
	 	 	11	 
	 
	 	 	 	 
	SECTION 4 ROLLOVER CONTRIBUTIONS AND TRANSFER CONTRIBUTIONS:
	 	 	13	 
	 
	4.1 ROLLOVER CONTRIBUTIONS:
	 	 	13	 
	4.2 TRANSFER CONTRIBUTIONS:
	 	 	13	 
	 
	 	 	 	 
	SECTION 5 CONTRIBUTIONS BY THE EMPLOYING COMPANIES
	 	 	14	 
	5.1 BEFORE-TAX CONTRIBUTIONS:
	 	 	14	 
	5.2 BASIC AND BONUS MATCHING CONTRIBUTIONS
	 	 	15	 
	5.3 PROFIT SHARING CONTRIBUTIONS
	 	 	16	 
	5.4 MAXIMUM BENEFIT
	 	 	16	 
	5.5 AVERAGE DEFERRAL PERCENTAGE LIMITATION:
	 	 	17	 
	5.6 AVERAGE CONTRIBUTION PERCENTAGE LIMITATION:
	 	 	19	 

ii 

 

	 	 	 	 	 
	5.7 RESTRICTION ON BEFORE-TAX CONTRIBUTIONS:
	 	 	21	 
	 
	 	 	 	 
	SECTION 6 INVESTMENT OPTIONS AND DIRECTIVES
	 	 	24	 
	 
	 	 	 	 
	6.1 INVESTMENTS:
	 	 	24	 
	6.2 VOLUNTARY REALLOCATION OF EXISTING INVESTMENTS:
	 	 	25	 
	6.3 INVESTMENT OF MATCHING CONTRIBUTIONS AND PROFIT SHARING CONTRIBUTIONS:
	 	 	26	 
	6.4 VOTING OR TENDERING COMPANY COMMON STOCK:
	 	 	26	 
	6.5 DIVIDEND REINVESTMENT ELECTIONS
	 	 	27	 
	6.6 INVESTMENT OF DIVIDEND PAYOUT ACCOUNT
	 	 	27	 
	 
	 	 	 	 
	SECTION 7 ALLOCATION AND DETERMINATION OF ACCOUNTS
	 	 	28	 
	 
	 	 	 	 
	7.1 INVESTMENT ACCOUNTS
	 	 	28	 
	7.2 PROFIT SHARING CONTRIBUTION ACCOUNT
	 	 	28	 
	7.3 BEFORE-TAX CONTRIBUTION ACCOUNT
	 	 	28	 
	7.4 BASIC MATCHING CONTRIBUTION ACCOUNT
	 	 	28	 
	7.5 BONUS MATCHING CONTRIBUTION ACCOUNT
	 	 	28	 
	7.6 ROLLOVER ACCOUNT
	 	 	28	 
	7.7 TRANSFER ACCOUNT: A Participant’s Transfer Account value as of any date
will equal the sum of the value of each of his Transfer Investment Accounts
	 	 	28	 
	7.8 DIVIDEND PAYOUT ACCOUNT
	 	 	28	 
	7.9 NOTICE TO PARTICIPANTS
	 	 	28	 
	 
	 	 	 	 
	SECTION 8 DISTRIBUTIONS
	 	 	29	 
	 
	 	 	 	 
	8.1 VALUE OF DISTRIBUTION
	 	 	29	 
	8.2 DIVIDEND DISTRIBUTIONS
	 	 	33	 
	8.3 FORM OF DISTRIBUTION:
	 	 	33	 
	8.4 REQUIRED MINIMUM DISTRIBUTIONS DURING PARTICIPANT’S LIFETIME
	 	 	36	 
	8.5 REQUIRED MINIMUM DISTRIBUTIONS AFTER PARTICIPANT’S DEATH
	 	 	37	 
	8.6 DEFINITIONS FOR SECTION 8
	 	 	39	 
	 
	 	 	 	 
	SECTION 9 SAVINGS FUND
	 	 	41	 
	 
	 	 	 	 
	9.1 ESTABLISHMENT OF SAVINGS FUND
	 	 	41	 
	9.2 BENEFITS LIMITED TO SAVINGS FUND
	 	 	41	 
	9.3 EXPENSES
	 	 	41	 
	9.4 RECOVERY OF EMPLOYING COMPANY CONTRIBUTIONS
	 	 	41	 
	 
	 	 	 	 
	SECTION 10 LOANS
	 	 	43	 
	 
	 	 	 	 
	10.1 ELIGIBILITY FOR LOAN
	 	 	43	 
	10.2 MINIMUM AND MAXIMUM LOAN AMOUNTS
	 	 	43	 

iii 

 

	 	 	 	 	 
	10.3 LOAN DUE DATE
	 	 	43	 
	10.4 LOAN RENEWAL
	 	 	43	 
	10.5 ACCELERATION OF LOAN DUE DATE
	 	 	43	 
	10.6 LOAN DEFAULT
	 	 	44	 
	10.7 LOAN REPAYMENT
	 	 	44	 
	10.8 LOAN INTEREST RATE
	 	 	44	 
	10.9 LOAN FEES
	 	 	44	 
	10.10 GENERAL LOAN CONDITIONS
	 	 	44	 
	10.11 SUSPENSION OF LOAN REPAYMENTS UNDER SECTION 414(U) OF THE INTERNAL REVENUE
CODE
	 	 	45	 
	 
	 	 	 	 
	SECTION 11 ADMINISTRATION OF THE PLAN
	 	 	46	 
	 
	 	 	 	 
	11.1 ADMINISTRATOR
	 	 	46	 
	11.2 DELEGATES
	 	 	46	 
	11.4 ADMINISTRATIVE COMMITTEE
	 	 	47	 
	11.5 CLAIMS AND APPEALS PROCEDURE:
	 	 	48	 
	11.6 INDEMNIFICATION
	 	 	49	 
	11.7 EXPENSES
	 	 	49	 
	11.8 ASSISTANCE
	 	 	49	 
	11.9 MERGER OR CONSOLIDATION
	 	 	50	 
	 
	 	 	 	 
	SECTION 12 PLAN AMENDMENT AND TERMINATION
	 	 	51	 
	 
	 	 	 	 
	12.1 AMENDMENT
	 	 	51	 
	12.2 TERMINATION OR SUSPENSION
	 	 	51	 
	 
	 	 	 	 
	SECTION 13 MISCELLANEOUS PROVISIONS
	 	 	52	 
	 
	 	 	 	 
	13.1 PLAN NOT A CONTRACT OF EMPLOYMENT
	 	 	52	 
	13.2 PAYMENT TO MINORS AND INCOMPETENTS
	 	 	52	 
	13.3 MISSTATEMENTS IN APPLICATION
	 	 	52	 
	13.4 NONALIENATION OF BENEFITS
	 	 	52	 
	13.5 EFFECTIVE TEXT
	 	 	53	 
	13.6 GOVERNING LAW
	 	 	53	 
	13.7 REFERENCE TO GENDER AND NUMBER
	 	 	53	 
	13.8 QUALIFIED MILITARY SERVICE
	 	 	53	 
	 
	 	 	 	 
	SECTION 14 EMPLOYING COMPANIES
	 	 	54	 
	 
	 	 	 	 
	14.1 NORMAL CONDITIONS
	 	 	54	 
	14.2 EMPLOYING COMPANIES
	 	 	54	 
	 
	 	 	 	 
	SECTION 15 TOP-HEAVY PROVISIONS
	 	 	55	 
	 
	 	 	 	 
	15.1 SPECIAL TOP-HEAVY DEFINITIONS
	 	 	55	 
	15.2 MINIMUM CONTRIBUTION REQUIREMENT
	 	 	56	 
	15.3 CHANGE IN THE STATUS OF THE PLAN
	 	 	56	 

iv 

 

	 	 	 	 	 
	SECTION 16 LEASED EMPLOYEES
	 	 	57	 
	 
	 	 	 	 
	16.1 LEASED EMPLOYEES
	 	 	57	 
	 
	 	 	 	 
	SECTION 17 COMPLIANCE WITH FINAL 401(k) AND 401(m) REGULATIONS
	 	 	58	 
	 
	 	 	 	 
	17.1 GENERAL RULES
	 	 	58	 
	17.2 ACTUAL DEFERRAL PERCENTAGE (ADP) TEST
	 	 	58	 
	17.3 ADJUSTMENT TO ADP TEST
	 	 	60	 
	17.4 ACTUAL CONTRIBUTION PERCENTAGE (ACP) TEST
	 	 	61	 
	17.5 ADJUSTMENT TO ACP TEST
	 	 	64	 

v 

 

SECTION 1 DEFINITIONS

The following words and phrases, when used in this Plan, unless the context clearly indicates
otherwise, shall have the following meanings:

	1.1	 	ACCRUED BENEFIT: A Participant’s Total Account at any time, determined as indicated in
Section 1.65 (Total Account).
	 
	1.2	 	ADJUSTMENT FACTOR: The cost of living adjustment factor prescribed by the Secretary of the
Treasury under Section 415(d) of the Code for Plan Years beginning after December 31, 1987.
	 
	1.3	 	ADMINISTRATIVE COMMITTEE: The Administrative Committee as defined in Section 11.4
(Administrative Committee).
	 
	1.4	 	ADMINISTRATOR: The Company.
	 
	1.5	 	ANNUAL ADDITION: With respect to a Participant for any Plan Year, the Annual Addition is the
sum of the following

	 	A.	 	The Basic Matching Contributions made on his behalf for the Plan Year, plus
	 
	 	B.	 	The Bonus Matching Contributions made on his behalf for the Plan Year, plus
	 
	 	C.	 	The Before-Tax Contributions made on his behalf for the Plan Year, plus
	 
	 	D.	 	His share of any Profit Sharing Contribution made for the Plan Year.

	1.6	 	ANNUAL COMPENSATION: The compensation as defined in Section 415(c)(3) of the Code for a
Participant increased by any amounts which are not currently includable in the Participant’s
gross income by reason of Sections 125, 132(f)(4), 402(e)(3), 402(h)(1)(B), 403(b) or 457(b)
of the Code, and Employee contributions described in Code Section 414(h)(2) that are treated
as Employer contributions. A Participant’s Annual Compensation for a Plan Year shall not
exceed $200,000, as adjusted for cost-of-living increases in accordance with Section
401(a)(17)(B) of the Code.
	 
	1.7	 	APPEALS COMMITTEE: A committee consisting of the chief financial officer of the Company, the
chief human resources officer of the Company and the Secretary of the Company.
	 
	1.8	 	APPLICABLE DIVIDENDS: Dividends paid to the Savings Fund with respect to Company Common Stock
held in the Vulcan ESOP Fund and with respect to which a Participant has been given an
election pursuant to Section 6.7 hereof to have such dividends paid to the Trust and (i)
reinvested in additional Company Common Stock or (ii) paid to the Participant in cash.
	 
	1.9	 	AVERAGE CONTRIBUTION PERCENTAGE: The average (expressed as a percentage) of the Contribution
Percentages of the Eligible Participants in a group.

1

 

	1.10	 	AVERAGE DEFERRAL PERCENTAGE: The average (expressed as a percentage) of the Deferral
Percentages of Eligible Participants in a group.
	 
	1.11	 	BASIC MATCHING CONTRIBUTION ACCOUNT: The account described in Section 7.4 (Basic Matching
Contribution Account).
	 
	1.12	 	BASIC MATCHING CONTRIBUTIONS: Contributions made by Employing Companies in accordance with
Section 5.2 (Basic and Bonus Matching Contributions).
	 
	1.13	 	BEFORE-TAX CONTRIBUTION ACCOUNT: The account described in Section 7.3 (Before-Tax
Contribution Account).
	 
	1.14	 	BEFORE-TAX CONTRIBUTIONS: Contributions made by an Employing Company at the election of a
Participant in accordance with Section 5.1 (Before-Tax Contributions).
	 
	1.15	 	BENEFICIARY: The Beneficiary of a Participant who is married at the date of his death shall
be the Participant’s spouse at the date of his death unless

	 	A.	 	The Participant has designated a person or persons (including a trust or a
Participant’s estate) other than his spouse (at the date of his death) as his
Beneficiary by written notice filed with the Administrative Committee in a form
satisfactory to the Administrative Committee,
	 
	 	B.	 	The spouse of the Participant at the date of the Participant’s death has
consented in writing to such designation and has acknowledged the effect of such
designation, and
	 
	 	C.	 	The spouse’s consent to such designation and acknowledgment of the effect of
such designation is witnessed by a Plan representative or a notary public.

	 	 	The Beneficiary of a Participant who is not married at the date of his death shall be the
person or persons (including a trust or a Participant’s estate) last designated by the
Participant by written notice filed with the Administrative Committee in a form
satisfactory to the Administrative Committee, which designation may be changed from time
to time by the Participant by written notice filed with the Administrative Committee in a
form satisfactory to the Administrative Committee. A Participant who designates a
Beneficiary in accordance with the foregoing provisions may also designate one or more
persons (including a trust or the Participant’s estate) as a contingent Beneficiary to
receive any portion of such benefit which has not been paid to the primary Beneficiary at
the time of the primary Beneficiary’s death. A Participant who designates more than one
primary Beneficiary in accordance with the foregoing provisions may specify the sequence
and/or proportion in which payments shall be made to each primary Beneficiary, and in the
absence of any such specification of sequence or proportion, payments shall be made in
equal shares to all named primary Beneficiaries. In the event no Beneficiary (including a
contingent Beneficiary) designated by the Participant is living at the time of the
Participant’s death or in the event a Participant has not designated a Beneficiary at the
time of his death, such

2

 

	 	 	Participant’s spouse at the date of his death shall be deemed to
be his Beneficiary if there is such a spouse and, if there is not such a spouse, the
Participant’s estate shall be deemed to be his Beneficiary.

	1.16	 	BOARD: The Board of Directors of the Company or the Executive Committee thereof.
	 
	1.17	 	BONUS MATCHING CONTRIBUTION: A discretionary matching contribution made by Employing
Companies based upon Economic Profit as described in Section 5.2 (Basic and Bonus Matching
Contributions).
	 
	1.18	 	BONUS MATCHING CONTRIBUTION ACCOUNT: The account described in Section 7.5.
	 
	1.19	 	CATCH-UP CONTRIBUTIONS: Before-Tax Contributions made to the Plan for a Plan Year by a
Participant who has attained age 50 before the close of the Plan Year pursuant to Section 5.1B
of the Plan.
	 
	1.20	 	CLAIMANT: A Participant or Beneficiary who has been denied benefits under the Plan.
	 
	1.21	 	COMPANY: Vulcan Materials Company, a New Jersey corporation, and any corporate successor to
such corporation whether by merger, consolidation, liquidation into a parent corporation, or
otherwise.
	 
	1.22	 	COMPANY COMMON STOCK: Common stock of the Company, or of a corporation owning more than half
of the common stock of the Company.
	 
	1.23	 	COMPENSATION: Except as otherwise expressly provided, “compensation” as defined in Section
415(c)(3) of the Code. The Administrator shall have authority to determine the precise
definition of “Compensation” to be used for a Plan Year provided such definition meets the
requirements of Section 415(c)(3) of the Code. In the case of an Eligible Employee who is not
eligible to participate in the Plan for the entire Plan Year, only Compensation paid after the
earliest date the Eligible Employee could have become a Participant during the Plan Year shall
be taken into account for purposes of Sections 5.3, 5.5 and 5.6. No Participant shall be
deemed to have Compensation for a Plan Year in an amount in excess of $200,000, as adjusted
for cost-of-living increases in accordance with Section 401(a)(17)(B) of the Code.
	 
	1.24	 	CONTRIBUTION PERCENTAGE: The ratio (expressed as a percentage) of the Basic Matching
Contributions and Bonus Matching Contributions made for or on behalf of an Eligible
Participant for the Plan Year to the Eligible Participant’s Compensation for the Plan Year.
The Contribution Percentage for an Eligible Participant who is a Highly Compensated Employee
for a Plan Year and who is eligible to have employee contributions, matching contributions, or
elective contributions allocated to his accounts under two or more plans described in Section
401(a) of the Internal Revenue Code or arrangements described in Section 401(k) of the
Internal Revenue Code that are maintained by one or more of the Related Employers shall be
determined as if all such employee contributions, matching contributions, and elective
contributions were made under a single plan. In the event that this Plan satisfies the
requirements of Section

3

 

	 	 	410(b) of the Internal Revenue Code only if aggregated with one or
more other plans, or if one or more other plans satisfy the requirements of Section 410(b) of
the Internal Revenue Code only if aggregated with this Plan, then the Contribution Percentage
of Eligible Participants shall be determined as if all such plans (including this Plan) were a
single plan.
	 
	1.25	 	DEFERRAL PERCENTAGE: The ratio of the amount of the Before-Tax Contributions to be paid over
to the Savings Fund under the Plan on behalf of an Eligible Participant for a Plan Year to
such Participant’s Compensation for such Plan Year. The Deferral Percentage for an Eligible
Participant who is a Highly Compensated Employee for the Year and who is eligible to have
Before-Tax Contributions allocated to his accounts under two or more plans or arrangements
described in Section 401(k) of the Internal Revenue Code that are maintained by one or more
Related Employers shall be determined as if all such Before-Tax Contributions were made under
a single arrangement. For purposes of determining the Before-Tax Contributions to be taken
into account pursuant to this Section 1.25, the following rules shall apply:

	 	A.	 	Before-Tax Contributions shall be taken into account only to the extent such
Before-Tax Contributions relate to Compensation that, but for the election under
Section 5.1B hereof, either would have been received by the Participant in the Plan
Year or is attributable to services performed by the Participant during the Plan Year
and would have been received by the Participant within 2-1/2 months after the end of the
Plan Year;
	 
	 	B.	 	Before-Tax Contributions shall be taken into account only to the extent such
Before-Tax Contributions are allocated to the Participant as of a date within the Plan
Year. For purposes of this Section 1.25B, a Before-Tax Contribution is considered
allocated as of a date within the Plan Year if the allocation is not contingent on
participation and performance of services after such date and the Before-Tax
Contribution is actually paid over to the trust fund not less than twelve months after
the end of the Plan Year to which such Before-Tax Contribution relates; and
	 
	 	C.	 	Before-Tax Contributions that are made under two or more plans that are
aggregated for purposes of Section 401(a)(4) or Section 410(b) (other than Section
410(b)(2)(A)(ii)) of the Internal Revenue Code shall be treated as made under a single
plan. If two or more plans are permissibly aggregated for purposes of satisfying
Section 401(k) of the Internal Revenue Code, the aggregated plans must also satisfy
Sections 401(a)(4) and 410(b) of the Internal Revenue Code as though they were a single
plan.

	1.26	 	DELEGATE: A person, group of persons (including the Administrative Committee), insurance
company, bank or other institution or organization, to whom responsibility for certain duties
under this Plan has been assigned by the Administrator as indicated in Section 11.2
(Delegates).

4

 

	1.27	 	DIRECT ROLLOVER: A payment by the Plan to the Eligible Retirement Plan specified by the
Distributee.
	 
	1.28	 	DISABILITY: Disabled as a result of a medically determinable physical or mental impairment
which renders a Participant unable to engage in any substantial gainful activity and which can
be expected to result in death or to be of long continued and indefinite duration. Disability
as herein defined shall be determined by the Administrative Committee after medical
examination of a Participant by a physician or physicians approved by the Administrative
Committee.
	 
	1.29	 	DISTRIBUTEE: Any Participant or former Participant, any such Participant’s or former
Participant’s surviving spouse and a Participant’s or former Participant’s spouse or former
spouse who is an alternate payee under a qualified domestic relations order, as defined in
Section 414(p) of the Internal Revenue Code with respect to the interest in the Plan of the
spouse or former spouse.
	 
	1.30	 	DIVIDEND PAYOUT ACCOUNT: The account described in Section 7.8 (Dividend Payout Account).
	 
	1.31	 	EARNINGS: Amounts received by a Participant as an Eligible Employee for personal service
rendered to an Employing Company including all regular pay, overtime pay, premium pay,
short-term incentive pay, commissions, bonuses, the amount of Before-Tax Contributions and the
amount of “pay conversion contributions” as that term is defined in the Vulcan Materials
Company Pay Conversion Plan, to be made on behalf of such Participant under such plans, but
excluding expense allowances, contributions (other than Before-Tax Contributions or “pay
conversion contributions”) by an Employing Company to the Plan, the Retirement Plan and the
Vulcan Materials Company Tax Reduction Act Employee Stock Ownership Plan and distributions
from such plans, vacation pay in lieu of vacation, wellness credits paid under the Company’s
wellness program and “flex credits” under the Vulcan Materials Company Pay Conversion Plan,
payments made under any long-term incentive plan, and other special payments unless
specifically included by the Administrative Committee. No Participant shall be deemed to have
Earnings for a Plan Year in an amount in excess of $200,000 as adjusted by the Commissioner of
Internal Revenue for increases in the cost of living in accordance with the provisions of
Section 401(a)(17) of the Internal Revenue Code.
	 
	1.32	 	ECONOMIC PROFIT: The measure of the Company’s performance established and used by the Board
of Directors to determine the level of Bonus Matching Contributions.
	 
	1.33	 	EFFECTIVE DATE OF THE PLAN: July 15, 2007.
	 
	1.34	 	ELIGIBLE EMPLOYEE: Any Employee of an Employing Company hired on or after July 1, 2007, but
excluding, however, any Employee who (a) is covered by a collective bargaining agreement or
agreements or (b) is accruing benefit service under another tax-qualified retirement plan to
which such Employing Company contributes.
	 
	1.35	 	ELIGIBLE PARTICIPANT: Any Eligible Employee who is eligible to be a Participant, regardless
of whether he is in fact a Participant, and who is otherwise

5

 

	 	 	authorized under the terms of the
Plan to have Before-Tax Contributions, Matching Contributions or Profit Sharing Contributions
made to the Plan on his behalf for the Plan Year. An Eligible Employee shall be considered an
Eligible Participant if he would be eligible to have Before-Tax Contributions made to the Plan
on his behalf but for the suspension of such Contributions due to a distribution, loan, or
election not to participate in the Plan. An Eligible Employee shall be deemed to be an
Eligible Participant notwithstanding the fact that no additional Annual Additions may be made
to such Eligible Employee’s Accounts by reason of Section 415(c)(1) or 415(e) of the Internal
Revenue Code.
	 
	1.36	 	ELIGIBLE RETIREMENT PLAN: Either (i) an individual retirement account described in Section
408(a) of the Internal Revenue Code; (ii) an individual retirement annuity described in
Section 408(b) of the Internal Revenue Code; (iii) an annuity plan described in Section 403(a)
of the Internal Revenue Code; (iv) an annuity contract described in section 403(b) of the
Code; (v) an eligible plan under section 457(b) of the Code which is maintained by a state,
political subdivision of a state, or any agency or instrumentality of a state or political
subdivision of a state and which agrees to separately account for amounts transferred into
such plan from this Plan; or (vi) a qualified trust described in Section 401(a) of the
Internal Revenue Code. The definition of Eligible Retirement Plan shall also apply in the
case of a distribution to a surviving spouse, or to a spouse or former spouse who is the
alternate payee under a qualified domestic relation order, as defined in section 414(p) of the
Code.
	 
	1.37	 	ELIGIBLE ROLLOVER DISTRIBUTION: Any distribution of all or any portion of the balance of a
Distributee’s Account or Accounts other than any of the following:

	 	A.	 	A distribution that is one of a series of substantially equal periodic payments
(not less frequently than annually) made for the life (or life expectancy) of the
Distributee or the joint lives (or joint life expectancies) of the Distributee and the
Distributee’s designated Beneficiary, or for a specified period of ten years or more;
	 
	 	B.	 	A distribution to the extent such distribution is required under Section
401(a)(9) of the Internal Revenue Code; or
	 
	 	C.	 	Any distribution on account of “hardship” (within the meaning of Section
401(k)(2)(B)(i)(IV) of the Internal Revenue Code); or
	 
	 	D.	 	Any portion of a distribution that is not includable in gross income
(determined without regard to the exclusion for net unrealized appreciation with
respect to employer securities).

	 	 	A portion of a distribution shall not fail to be an Eligible Rollover Distribution merely
because the portion consists of after-tax employee contributions which are not includible
in gross income. However, such portion may be transferred only to an individual
retirement
account or annuity described in section 408(a) or (b) of the Code, or to a qualified
defined contribution plan described in section 401(a) or 403(a) of the

6

 

	 	 	Code that agrees to
separately account for amounts so transferred, including separately accounting for the
portion of such distribution which is includible in gross income and the portion of such
distribution which is not so includible.

	1.38	 	EMPLOYEE: Any person employed by an Employing Company or Related Employer.
	 
	1.39	 	EMPLOYING COMPANY: The Company or any Related Employer which adopts the Plan and which is
designated by the Board as an Employing Company, and the corporate successor to the Company or
any such Related Employer whether by merger, consolidation, liquidation into a parent
corporation or otherwise.
	 
	1.40	 	ESOP PLAN: The provisions of this Plan applicable to accounts of Participants invested in
the Vulcan ESOP Fund.
	 
	1.41	 	EMPLOYING COMPANY DATE: The date as of which a company became an Employing Company under the
Plan, as set forth in Section 14 (List of Employing Companies).
	 
	1.42	 	EMPLOYMENT SERVICE: Service as an Employee (including service with two or more Related
Employers or their predecessors, but only in a manner and to the extent authorized by the
Board), as set forth in Section 3.1 (Employment Service).
	 
	1.43	 	EXCESS AGGREGATE CONTRIBUTIONS: With respect to any Plan Year, the excess of the amount of
Basic Matching Contributions and Bonus Matching Contributions made on behalf of Highly
Compensated Employees over the maximum amount permitted under the limitation of Section 5.6
hereof.
	 
	1.44	 	EXCESS BEFORE-TAX CONTRIBUTIONS: With respect to any Plan Year the excess of the amount of
Before-Tax Contributions actually made by or on behalf of a Highly Compensated Employee over
the maximum amount permitted under the limitation of Section 5.5 hereof.
	 
	1.45	 	EXCESS DEFERRALS: The amount of Before-Tax Contributions for a calendar year that the
Participant allocates (or is deemed to have allocated) to the Plan pursuant to the procedure
described at Section 5.6 hereof.
	 
	1.46	 	HIGHLY COMPENSATED EMPLOYEE: Any Employee who -

	 	A.	 	At any time during the current Plan Year or the prior Plan Year owned (or was
considered as owning) more than five percent (5%) of the outstanding stock of an
Employing Company or stock possessing more than five percent (5%) of the total combined
voting power of all stock of an Employing Company, or
	 
	 	B.	 	During the prior Plan Year received Annual Compensation from the Employing
Companies and Related Employers in excess of $80,000, as adjusted by the Secretary of
the Treasury pursuant to Section 415(d) of the Internal Revenue Code.

7

 

	 	C.	 	A former Employee shall be treated as a Highly Compensated Employee if he was a
Highly Compensated Employee when he separated from service or at any time after
attaining age 55.

	1.47	 	INTERNAL REVENUE CODE OR CODE: Internal Revenue Code of 1986, as amended, and regulations
thereunder.
	 
	1.48	 	INVESTMENT ACCOUNT: An account described in Section 7.1 (Investment Accounts).
	 
	1.49	 	LIMITATION YEAR: The Plan Year.
	 
	1.50	 	LOAN: A loan made to a Participant pursuant to the provisions of Section Section 10 (Loans).
	 
	1.51	 	MAXIMUM BEFORE-TAX PERCENTAGE: The percentage (or percentages) from time to time established
by the Administrative Committee pursuant to Section 5.1A (Maximum Before-Tax Percentage) as
the maximum rate (or rates) at which Before-Tax Contributions may be made on behalf of a
Participant (or separate classes of Participants). The initial Maximum Before-Tax Percentage
shall be 35%.
	 
	1.52	 	NORMAL RETIREMENT DATE: The date a Participant attains age 65.
	 
	1.53	 	OPTIONS: The investment alternatives described in Section 6.1 (Investments).
	 
	1.54	 	PARTICIPANT: Anyone who is participating in the Plan as provided in Section 2 (Participation
in the Plan).
	 
	1.55	 	PLAN: Vulcan Materials Company 401(k) and Profit Sharing Retirement Plan, effective July 15,
2007
	 
	1.56	 	PLAN YEAR: The 12-month period beginning each January 1st. The initial Plan Year shall be
the period beginning July 15, 2007 and ending December 31, 2007.
	 
	1.57	 	PROFIT SHARING CONTRIBUTION: A contribution made by an employing company pursuant to Section
5.3 (Profit Sharing Contribution).
	 
	1.58	 	PROFIT SHARING CONTRIBUTION ACCOUNT: The account described in Section 7.2 (Profit Sharing
Contribution Account).
	 
	1.59	 	RELATED EMPLOYER: A corporation which is a member of a controlled group of corporations
(within the meaning of Sections 1563(a)(1), (a)(2) and (a)(3) of the Internal Revenue Code) of
which an Employing Company is also a member and any other trade or business, whether or not
incorporated, which is under “common control” (within the meaning of Section 414(c) of the
Internal Revenue Code) with an Employing Company. If any Employing Company is a member of an
“affiliated service group,” as that term is defined at Section 414(m)(2) of the Internal
Revenue Code, each other member of such

8

 

	 	 	“affiliated service group” (other than a member of
such group which is an Employing Company) shall be a Related Employer.
	 
	1.60	 	REQUIRED BEGINNING DATE: The Participant’s entire interest will be distributed, or begin to
be distributed, to the Participant no later than the Participant’s Required Beginning Date
which for Plan Years commencing after October 30, 1999 shall be:

	 	A.	 	For a Participant who is a 5% owner (as defined in Code § 416), the Required
Beginning Date is April 1 following the calendar year in which the Participant attains
age 70-1/2.
	 
	 	B.	 	For a Participant who is not a 5% owner, the Required Beginning Date is April 1
following the later of (i) the calendar year in which the Participant attains age
70-1/2, and (ii) the calendar year in which the Participant retires.

	 	 	A Participant who attained age 70-1/2 prior to January 1, 1999 may make an irrevocable
election, in such form as the Administrative Committee may provide, to continue to receive
distributions of his Total Account in accordance with this section 1.60 or to defer such
distributions until Termination of Employment Service.
	 
	1.61	 	ROLLOVER ACCOUNT: The Account described in Section 7.6 (Rollover Account).
	 
	1.62	 	ROLLOVER CONTRIBUTION: The taxable amount of a distribution from another qualified
retirement plan, a conduit individual retirement account, an annuity contract described in
section 403(b) of the Code or an eligible plan under section 457(b) of the Code which is
maintained by a state, political subdivision of a state, or any agency or instrumentality of a
state or political subdivision of a state that a Participant contributes to this Plan pursuant
to Section 4.2.
	 
	1.63	 	SAVINGS FUND: The collection of assets of the Plan described in Section 9 (Savings Fund).
	 
	1.64	 	TERMINATION OF EMPLOYMENT SERVICE: As described in Section 3.1B (Termination of Employment
Service).
	 
	1.65	 	TOTAL ACCOUNT: The sum of a Participant’s Basic Matching Contribution Account, Bonus
Matching Contribution Account, Profit Sharing Contribution Account, Rollover Account, Transfer
Account and Before-Tax Contribution Account.
	 
	1.66	 	TRANSFER ACCOUNT: The Account described in Section 7.7 (Transfer Account).
	 
	1.67	 	TRANSFER CONTRIBUTION: A contribution made by a Participant in accordance with Section 4.2
(Transfer Contributions and Rollover Contributions).
	 
	1.68	 	TRUSTEE: The trustee or trustees appointed by the Company to hold and manage the assets of
the Savings Fund, as provided in Section 9 (Savings Fund).

9

 

SECTION 2 PARTICIPATION IN THE PLAN

	2.1	 	REQUIREMENTS FOR BECOMING A PARTICIPANT: The following requirements must be met to become a
Participant in the Plan:

	 	A.	 	Employment: A person must be employed by an Employing Company. Employing
Companies and Employing Company Dates are listed in Section 14 (List of Employing
Companies).
	 
	 	B.	 	Employee Status: A person must be an Eligible Employee.

	2.2	 	PARTICIPATION:

	 	A.	 	Participation Begins: Participation in the Plan for an Eligible Employee
begins on the day such Eligible Employee becomes an Eligible Employee.
	 
	 	B.	 	Participation Ceases: Once a Participant’s Total Account balance is reduced to
zero, his participation in the Plan shall cease.
	 
	 	C.	 	Reentry into Plan Participation: A former Participant whose participation has
ceased in accordance with Section 2.2B (Participation Ceases) will begin participation
in the Plan again on the date on which all of the requirements in Section 2.1 are met
following the date his former participation ceased. Except as otherwise provided in
Section 8.1C, contributions will commence with the first paycheck issued to the
Participant on or after the date the former Participant reenters participation in the
Plan.

10

 

SECTION 3  SERVICE

	3.1	 	EMPLOYMENT SERVICE: Employment Service is determined as follows:

	 	A.	 	Commencement of Accrual of Employment Service:

	 	(1)	 	Employment Service will commence to accrue on a Participant’s
date of hire by an Employing Company or Related Employer and will be measured
in years with proportionate allowance for completed months.
	 
	 	(2)	 	Periods of service with a Related Employer prior to the date it
became a Related Employer shall be excluded from Employment Service except to
the extent authorized by the Board.
	 
	 	(3)	 	Service with a proprietorship, a corporation or a partnership,
all or a part of the assets of which have been acquired by an Employing Company
or Related Employer, or a predecessor of any such proprietorship, corporation
or partnership, may constitute Employment Service, but only in the manner and
to the extent authorized by the Board.

	 	B.	 	Termination of Employment Service:

	 	(1)	 	Employment Service shall terminate on the earlier of (a) or
(b).

	 	(a)	 	The first anniversary of the first day of a
period during which a person remains absent from service (with or
without pay) with an Employing Company or other Related Employer for
any reason other than quit, retirement, discharge, death, or Disability
(e.g., a period of absence for illness which does not constitute a
Disability, leave of absence, layoff, strike, or absence for military
service) unless the person has a legal right to reemployment and
returns to service with the Employing Company or other Related Employer
before the expiration of such reemployment rights.
	 
	 	(b)	 	The day on which an Employee quits, retires, is
discharged, or dies.

	 	(2)	 	For purposes of this Section 3.1B, failure to return to service
with an Employing Company or other Related Employer upon recall from layoff
shall be deemed a quit, and an Employee who is absent from service with an
Employing Company or other Related Employer as a result of Disability shall be
deemed to have quit upon the earlier of his recovery from Disability or
commencement of retirement income under the Retirement Plan.
	 
	 	(3)	 	An Employee whose Employment Service ceases to accrue will
begin to accrue Employment Service again on the date on which he again returns
to

11

 

	 	 	 	work as an Employee. If an Employee who experienced a Termination of
Employment Service described in Section 3.1B is re-employed by an Employing
Company or a Related Employer within 12 months from the earlier of

	 	(a)	 	the date he quit, retired, or was discharged,
or
	 
	 	(b)	 	the date on which the Employee was first absent
from service for a reason other than quit, retirement, or discharge,
his Employment Service shall be deemed to include the period from the
earlier of (a) or (b) above to the date of his re-employment.

	 	C.	 	Forfeiture of Employment Service: Accrued Employment Service is never
forfeited.

12

 

SECTION 4 ROLLOVER CONTRIBUTIONS AND TRANSFER CONTRIBUTIONS:

	4.1	 	ROLLOVER CONTRIBUTIONS:
	 
	 	 	A Participant who receives a distribution from a qualified plan that would be an Eligible
Rollover Distribution if received from this Plan, other than a distribution received by a
beneficiary from such qualified plan, a conduit individual retirement account, an annuity
contract described in section 403(b) of the Code or an eligible plan under section 457(b) of
the Code which is maintained by a state, political subdivision of a state, or any agency or
instrumentality of a state or political subdivision of a state may roll over all or any part
of such taxable portion of the such distribution. The Administrative Committee will adopt
such procedures, and may require such information from the Participant who desires to make a
Rollover Contribution, as it considers necessary to determine whether the proposed rollover
or direct plan transfer will meet the requirements of this section. The Administrative
Committee may require the Participant to submit a written certification that the
distribution he received is an Eligible Rollover Distribution made from another qualified
plan, a conduit individual retirement account, an annuity contract described in section
403(b) or an eligible plan under section 457(b) of the Code. As soon as practicable after
receipt, the Rollover Contribution will be deposited in the Trust Fund and will be credited
to the Participant’s Rollover Account. In the event the Administrative Committee discovers
that a Participant has made a Rollover Contribution to the Plan which fails to comply with
this section, the Administrative Committee will refund the Contribution and all earnings
attributable to it as soon as practicable. The Administrative Committee will in good faith
rely on the representations made by the Participant in his application to make a Rollover
Contribution and will not be held accountable for any misrepresentation therein unless the
Administrative Committee has actual knowledge of such misrepresentation.
	 
	4.2	 	TRANSFER CONTRIBUTIONS:
	 
	 	 	If An Eligible Employee was previously a participant in another defined contribution plan
maintained by the Company, the accounts maintained for such Eligible Employee may be
transferred to this Plan following the date such Eligible Employee becomes a Participant if
the Participant so elects. In the event of any plan to plan transfers described in this
Section 4.2B, the accounts so transferred shall be transferred to the corresponding accounts
in such other plan.

13

 

SECTION 5 CONTRIBUTIONS BY THE EMPLOYING COMPANIES

	5.1	 	BEFORE-TAX CONTRIBUTIONS:

	 	A.	 	Maximum Before-Tax Percentage:
	 
	 	 	 	The Maximum Before-Tax Percentage with respect to any Participant is equal to 35%.
The Administrative Committee may from time to time establish a different Maximum
Before-Tax Percentage for Participants who are Highly Compensated Employees that in
its judgment appears desirable or necessary in view of the restrictions imposed by
Section 401(k) of the Internal Revenue Code; provided that the Maximum Before-Tax
Percentage so established shall not be higher than the Maximum Before-Tax Percentage
provided under Section 5.1A(1) for Participants who are not Highly Compensated
Employees. The Administrative Committee shall notify all Participants who are
Highly Compensated Employees of any increase or decrease in the Maximum Before-Tax
Percentage and the date as of which such changes are effective. In the event of a
decrease in the Maximum Before-Tax Percentage, the rate at which Before-Tax
Contributions are being made on behalf of such Highly Compensated Employees will be
automatically reduced, if necessary, to comply with the lower maximum.
	 
	 	B.	 	Election: Subject to Section 5.4 (Maximum Benefit) and Section 5.6
(Restrictions on Before-Tax Contributions), a Participant may elect to have his
Earnings reduced by any whole percentage from 1% to the Maximum Before-Tax Percentage
applicable to him and have the amount of such reduction contributed to the Plan by his
Employing Company on his behalf as deferred compensation, with such contribution being
known as a Before-Tax Contribution. Additionally, all Employees who are eligible to
make Before-Tax Contributions under this Plan and who have attained age 50 before the
close of the Plan Year shall be eligible to make Catch-Up Contributions in accordance
with, and subject to the limitations of, section 414(v) of the Code. Such Catch-Up
Contributions shall not be taken into account for purposes of the provisions of the
Plan implementing the required limitations of sections 402(g) and 415 of the Code. If
such an election is made, the amount of Earnings otherwise payable to the Participant
each payday will be reduced by the appropriate percentage, and the amount of the
reduction will be contributed to the Plan by his Employing Company as a Before-Tax
Contribution.
	 
	 	C.	 	Negative Election: Beginning as of the first paycheck issued to a Participant
on or after the 30th day after the date such Participant’s negative election
notice is issued pursuant to subsection (ii) below, the Employer will automatically
reduce the Compensation of each Participant except for those Participants who timely
make a contrary election under subsection (i) below. All amounts deferred under the
provisions of this Section 5.1 are treated as Before-Tax Contributions for all purposes
under the Plan.

     (i) Participant’s contrary election. A Participant may at
any time elect not to defer any Compensation, to defer an

14

 

amount which
is different from the negative election amount in accordance with the
otherwise applicable provisions of Section 5.1 of the Plan, or to
begin deferrals as soon as administratively possible. A Participant’s
contrary election generally is effective as promptly as
administratively practicable following the Participant’s contrary
election. A Participant’s contrary election continues in effect until
subsequently changed pursuant to this Section 5.1.

     (ii) Negative election notice. The Administrator shall
provide a notice to each Eligible Employee subject to this Section
5.1C which explains the effect of the negative election and a
Participant’s right to make a contrary election, including the
procedure and timing applicable to the contrary election. The
Administrator shall provide the notice to an Eligible Employee as
promptly as practicable following such Eligible Employee’s date of
employment.

	 	D.	 	Change in Rate: A Participant may elect to change the rate (including a change
to zero) at which he is having Before-Tax Contributions made with such change effective
as promptly as practicable. A Participant who is also a Participant in the Vulcan
Materials Company Unfunded Supplemental Benefit Plan for Salaried Employees may not
make a change hereunder that would cause a violation of Section 409A of the Code.
	 
	 	E.	 	Automatic Temporary Suspension: Before-Tax Contributions made on behalf of a
Participant will automatically be suspended when a withdrawal is made from a
Participant’s Before-Tax Contribution Account prior to a Termination of Employment, as
described in Section 8.1C(4)(b).
	 
	 	F.	 	Elections for Before-Tax Contributions: Elections to have Before-Tax
Contributions made or to change the rate at which Before-Tax Contributions shall be
made via a toll-free number provided by the Administrative Committee. Elections will
be effective as promptly as practicable.
	 
	 	G.	 	Termination of Before-Tax Contributions: Before-Tax Contributions will
automatically be terminated as of the first day of a period during which a Participant
remains absent from service with an Employing Company or other Related Employer due to
quitting, retirement, discharge, death, or Disability, and no Before-Tax Contribution
shall be made with respect to any Earnings paid to such Participant after such date.
In the event such a Participant again becomes an Eligible Employee, he may again elect
to have Before-Tax Contributions made on his behalf pursuant to Section 5.1B.

	5.2	 	BASIC AND BONUS MATCHING CONTRIBUTIONS: Each Employing Company expects to make Basic
Matching Contributions to match the Before-Tax Contributions made by it with respect to its
Participants equal to 100% of a Participant’s Before-Tax Contributions that do not exceed 4%
of his monthly Earnings.

15

 

	 	 	The matching ratio at which an Employing Company will make Matching Contributions may from
time to time be increased or decreased by duly adopted resolution of the Board of Directors
of such Employing Company with respect to Basic Matching Contributions to be made by such
Employing Company after the date such resolution is adopted. Such Basic Matching
Contributions shall be made at such times as determined by the Board of Directors of each
Employing Company, but shall be made at least monthly subject to the provisions of Section
12.2 (Termination or Suspension). In addition to the Basic Matching Contributions described
above, each Employing Company may make an additional Bonus Matching Contribution equal to a
percentage of a Participant’s Before-Tax Contributions of a Participant who is an Eligible
Participant on the last day of the Plan Year which in the aggregate exceed 4% but which do
not exceed 6% of his Earnings for the portion the Plan Year in which he was an Eligible
Participant. Any such additional Bonus Matching Contribution shall be made prior to the due
date (including extensions) for filing the Employing Company’s federal income tax return for
the year in which the Plan Year ends.
	 
	5.3	 	PROFIT SHARING CONTRIBUTIONS: Prior to the due date (including extensions thereof) for
filing the consolidated or separate federal income tax return of an Employing Company for a
Plan Year, such Employing Company shall make a Profit Sharing Contribution equal to 3% of the
Compensation of each Participant, unless the Board of Directors determines to make a Profit
Sharing Contribution equal to a greater percentage of Compensation. Any Profit Sharing
Contribution shall be allocated among the Participants in the proportion that the Earnings
paid each such Participant by such Employing Company during the portion of such Plan Year in
which the Participant was an Eligible Participant bears to the aggregate amount of Earnings
paid to all such Participants by such Employing Company during such Plan Year. The Profit
Sharing Contributions pursuant to this Section 5.3 are intended to comply with the provisions
of Section 401(c)(12) of the Internal Revenue Code. In any Plan Year in which the Plan
satisfies such provisions, the provisions of Section 5.5 shall not apply.
	 
	5.4	 	MAXIMUM BENEFIT: In no event shall an Annual Addition to a Participant’s Total Account plus
the amount of any employer contributions, employee contributions and forfeitures allocable to
the Participant’s account under any other defined contribution plan or plans maintained by an
Employing Company, Related Employer, or other trade or business which would be a Related
Employer if the phrase “more than 50%” were substituted for the phrase “at least 80%” each
place it appears in Section 1563(a)(i) of the Internal Revenue Code, plus the amount of
employer contributions attributable to medical benefits allocated either to an account
established on behalf of a Key Employee (as that term is defined in Section 15.1C) pursuant to
Section 419A of the Internal Revenue Code or to any separate account maintained for an
individual as part of his benefit under a pension or annuity plan maintained by an Employing
Company or Related Employer exceed the lesser of:

	 	(1)	 	$40,000, as adjusted for increases in the cost-of-living under section 415(d)
of the Code, or

16

 

	 	(2)	 	100 percent of the participant’s compensation, within the meaning of section
415(c)(3) of the Internal Revenue Code, for the Limitation Year.

	 	 	The compensation limit referred to in (2) shall not apply to any contribution for medical
benefits after separation from service (within the meaning of section 401(h) or section
419A(f)(2) of the Internal Revenue Code) which is otherwise treated as an Annual Addition.
	 
	 	 	If, as a result of the allocation of forfeitures, a reasonable error in estimating a
Participant’s Compensation, or a reasonable error in determining the amount of elective
deferrals that may be made by a Participant under the limits of Section 415 of the Internal
Revenue Code, the amount otherwise allocable to the Accounts of a Participant will exceed
the limitations contained in Section 5.4, then the amounts allocable to such Account shall
be reduced as follows:

	 	(1)	 	First, the amount of unmatched Before-Tax Contributions that are otherwise
allocable to such Participant’s Accounts shall be reduced to the extent necessary so
that such limits are not exceeded.
	 
	 	(2)	 	Next, the amount of Before-Tax Contributions (and any Matching Contributions
referable thereto) shall be reduced to the extent necessary so that such limits are not
exceeded.
	 
	 	(3)	 	The amount of any reduction in Before-Tax Contributions provided for in this
Section 5.4, together with income thereon, shall be distributed to the Participant.
	 
	 	(4)	 	The amount of any reductions in amounts creditable to a Participant’s Accounts
consisting of Matching Contributions shall be held in a Suspense Account and used to
reduce the Matching Contributions in the succeeding Plan Year.

	 	 	For purposes of applying the limitations described in this Section 5.4, compensation paid or
made available during such Limitation Years shall include elective amounts that are not
includible in the gross income of the Participant by reason of Code Section 132(f)(4).
	 
	5.5	 	AVERAGE DEFERRAL PERCENTAGE LIMITATION:

	 	A.	 	Limitations: Notwithstanding anything herein to the contrary, the Average
Deferral Percentage for all Eligible Participants who are Highly Compensated Employees
must bear a relationship to the Average Deferral Percentage for all Eligible
Participants who are Non-Highly Compensated Employees that meets one of the following
tests:

	 	(1)	 	The Average Deferral Percentage for the Eligible Participants
who are Highly Compensated Employees shall not exceed the Average Deferral
Percentage for Eligible Participants who are Non-Highly Compensated Employees
for the Plan Year multiplied by 1.25; or

17

 

	 	(2)	 	The Average Deferral Percentage for Eligible Participants who
are Highly Compensated Employees for the Plan Year shall not exceed the Average
Deferral Percentage for Eligible Participants who are Non-Highly Compensated
Employees for the Plan Year multiplied by two, provided that the Average
Deferral Percentage for Eligible Participants who are Highly Compensated
Employees does not exceed the Average Deferral Percentage for Eligible
Participants who are Non-Highly Compensated Employees by more than two (2)
percentage points.

	 	B.	 	Corrective Actions: In the event the limitation provided for in Section 5.5A
above would otherwise not be met for a Plan Year, the Excess Before-Tax Contributions,
together with income (or loss) thereon as hereinafter determined for such Plan Year
shall be returned to the Highly Compensated Employees to whom such Excess Before-Tax
Contributions are allocated as hereinafter provided.

	 	(1)	 	The amount of the Excess Before-Tax Contributions with respect
to Highly Compensated Employees shall be determined in accordance with the
following leveling method. First, the Deferral Percentage of the Highly
Compensated Employee with the highest Deferral Percentage shall be reduced to
the extent necessary to satisfy the limitation provided for in Section 5.5A or
to cause such Highly Compensated Employee’s Deferral Percentage to equal the
Deferral Percentage of the Highly Compensated Employee with the next highest
Deferral Percentage. Then, this process shall be repeated until the limitation
provided for in Section 5.5A above is met.
	 
	 	(2)	 	The Excess Before-Tax Contributions for such Plan Year as
determined in subparagraph (1) above, shall be allocated using the following
leveling method. First, the Before-Tax Contributions of the Highly Compensated
Employee with the largest amount of Before-Tax Contributions taken into account
in calculating the limitation provided for in Section 5.5A for the Plan Year in
which the excess Before-Tax Contributions are to be reduced shall be allocated
to such Highly Compensated Employee to the extent necessary to allocate all the
Excess Before-Tax Contributions for such Plan Year or to cause such Highly
Compensated Employees’ amount of Before-Tax Contributions to
equal the amount of Before-Tax Contributions of the Highly Compensated
Employee with the next largest amount of Before-Tax Contributions. This
process shall be repeated until all of the Excess Before-Tax Contributions
for such Plan Year are allocated.
	 
	 	(3)	 	The income allocable to Excess Before-Tax Contributions for the
Plan Year is determined by multiplying the income for the Plan Year allocable
to the Participant’s Before-Tax Contribution Account by a fraction, the
numerator of which is the Excess Before-Tax Contributions with respect to the
Participant for the Plan Year and the denominator of which is the

18

 

	 	 	 	balance of
the Participant’s Before-Tax Contribution Account as of the end of the Plan
Year, reduced by the gain allocable to such Before-Tax Contribution Account for
the Plan Year and increased by the loss allocable to the Before-Tax
Contribution Account for the Plan Year. The income allocable to Excess
Before-Tax Contributions for the period between the end of the Plan Year and
the date of a corrective distribution shall be equal to ten percent (10%) of
the income allocable to Excess Before-Tax Contributions for the Plan Year
multiplied by the number of Months that have elapsed since the end of such Plan
Year; provided, that for purposes of determining the number of Months that have
elapsed, a distribution occurring on or before the 15th day of the Month will
be treated as having been made on the last day of the preceding Month and a
distribution occurring after such 15th day of the Month will be treated as
having been made on the last day of such Month. Distributions required hereby
shall, if possible, be made within two and one-half months of the close of the
Plan Year, and must be made prior to the close of the Plan Year following the
Plan Year for which the Excess Before-Tax Contributions were made. Such
distributions must be designated as a distribution of Excess Before-Tax
Contributions (and income).

	 	C.	 	Notwithstanding the foregoing, the amount of Excess Before-Tax Contributions to
be distributed shall be reduced by Excess Deferrals previously distributed for the
taxable year ending in the same Plan Year and Excess Deferrals to be distributed for a
taxable year shall be reduced by Excess Before-Tax Contributions previously distributed
for the Plan Year beginning with or within such taxable year.
	 
	 	D.	 	In the event that Excess Before-Tax Contributions for a Plan Year are returned
to a Highly Compensated Employee pursuant to Section 5.5B above, such Excess Before-Tax
Contributions shall be deemed to consist of Before-Tax Contributions that are not
matched pursuant to the terms of the Plan to the extent thereof. Any Basic or Bonus
Matching Contributions made by the Employer with respect to any remaining Excess
Before-Tax Contributions shall be forfeited, as of December 31 of the Plan Year in
which such Excess Before-Tax Contributions are returned to such Highly Compensated
Employee and used to reduce Basic Matching Contributions in the succeeding Plan Year.

	5.6	 	AVERAGE CONTRIBUTION PERCENTAGE LIMITATION:

	 	A.	 	Limitation: Notwithstanding anything to the contrary herein, the Average
Contribution Percentage for all Eligible Participants who are Highly Compensated
Employees must bear a relationship to the Average Contribution Percentage for all
Eligible Participants who are Non-Highly Compensated Employees that meets one of the
following tests:

	 	(1)	 	The Average Contribution Percentage for Eligible Participants
who are Highly Compensated Employees for the Plan Year shall not exceed the

19

 

	 	 	 	Average Contribution Percentage for Eligible Participants who are Non-Highly
Compensated Employees for the Plan Year multiplied by 1.25; or
	 
	 	(2)	 	The Average Contribution Percentage for Eligible Participants
who are Highly Compensated Employees for the Plan Year shall not exceed the
Average Contribution Percentage for Eligible Participants who are Non-Highly
Compensated Employees for the Plan Year multiplied by 2, provided that the
Average Contribution Percentage for Eligible Participants who are Highly
Compensated Employees does not exceed the Average Contribution Percentage for
Eligible Participants who are Non-Highly Compensated Employees by more than two
(2) percentage points.

	 	B.	 	Corrective Action: In the event the limitation provided for in Section 5.6A
would otherwise not be met for a Plan Year, the Excess Aggregate Contributions,
together with income thereon as hereinafter determined for such Plan Year shall be
returned to the Highly Compensated Employees to whom such Excess Aggregate
Contributions are allocated as hereunder provided.

	 	(1)	 	The amount of the Excess Aggregate Contributions with respect
to Highly Compensated Employees shall be determined in accordance with the
following leveling method. First, the Contribution Percentage of the Highly
Compensated Employee with the highest Contribution Percentage shall be reduced
to the extent necessary to satisfy the limitation provided for in Section 5.6A
or to cause such Highly Compensated Employee’s Contribution Percentage to equal
the Contribution Percentage of the Highly Compensated Employee with the next
highest Contribution Percentage. Then, this process shall be repeated until
the limitation provided for in Section 5.6A above is met.
	 
	 	(2)	 	The Excess Aggregate Contributions for such Plan Year as
determined in subparagraph (1) above, shall be allocated using the following
leveling method. First, the Basic Matching Contributions and Bonus Matching
Contributions of the Highly Compensated Employee with the largest amount of
Basic Matching Contributions and Bonus Matching Contributions taken into
account in calculating the limitation provided for in Section 5.6A for the Plan
Year in which the Excess Aggregate Contributions are to be reduced shall be
allocated, pro-rata, to such Highly Compensated Employee to the extent
necessary to allocate all the Excess Aggregate Contributions for such Plan Year
or to cause such Highly Compensated Employee’s amount of Basic Matching
Contributions and Bonus Matching Contributions to equal the amount of Basic
Matching Contributions and Bonus Matching Contributions of the Highly
Compensated Employee with the next largest amount of Basic Matching
Contributions and Bonus Matching Contributions. This process shall be repeated
until all of the Excess Aggregate Contributions for such Plan Year are
allocated.

20

 

	 	(3)	 	The income allocable to Excess Aggregate Contributions for the
Plan Year shall be determined by the Administrative Committee in a uniform and
nondiscriminatory manner. The income allocable to Excess Aggregate
Contributions for the period between the end of the Plan Year and the date of a
corrective distribution shall be equal to ten percent (10%) of the income
allocable to Excess Aggregate Contributions for the Plan Year multiplied by the
number of Months that have elapsed since the end of such Plan Year; provided,
that for purposes of determining the number of Months that have elapsed,
distribution occurring on or before the 15th day of the Month will be treated
as having been made on the last day of the preceding Month and a distribution
occurring after such 15th day of the Month will be treated as having been made
on the last day of such Month. Distributions required hereby shall, if
possible, be made within two and one-half months of the close of the Plan Year,
and in any event must be made prior to the close of the Plan Year following the
Plan Year for which the Excess Aggregate Contributions were made, and must be
designated as a distribution of Excess Aggregate Contributions (and income).

	 	C.	 	Allocation of Excess Aggregate Contributions: A distribution of the Excess
Aggregate Contributions and the income allocable thereto shall be charged to the Highly
Compensated Employee’s Basic Matching Contribution Account and Bonus Matching
Contribution Account, as appropriate, at the time such distribution is made.

	5.7	 	RESTRICTION ON BEFORE-TAX CONTRIBUTIONS:

	 	A.	 	Notwithstanding anything to the contrary herein, no Participant shall be
permitted to have Before-Tax Contributions made under this Plan during any calendar
year in excess of the limitations imposed by Section 402(g)(1)(B) of the Code,
multiplied by the Adjustment Factor as provided by the Secretary of the Treasury. In
the event the amount of a Participant’s Before-Tax Contributions under the Plan for a
calendar year, plus the sum of

	 	(1)	 	Any employer contributions under a qualified cash or deferred
arrangement (as defined in Section 401(k) of the Code) to the extent not
includible in the gross income of the Participant for the calendar year under
Section 402(a)(8) of the Code, determined without regard to Section 402(g) of
the Code, plus
	 
	 	(2)	 	Any employer contributions to the extent not includible in the
gross income of the Participant for the calendar year under Section
402(h)(1)(B) of the Code (determined without regard to Section 402(g) of the
Code), plus
	 
	 	(3)	 	Any employer contributions to purchase an annuity contract
under Section 403(b) of the Code under a salary reduction agreement (within the
meaning of Section 3121(a)(5)(D) of the Code)

21

 

	 	 	 	would exceed limitations imposed by Section 402(g)(1)(B) of the Code, multiplied by
the Adjustment Factor, the Participant may, not later than March 1 following the
close of the calendar year for which such excess deferrals were made, allocate the
amount of such excess deferrals among the plans under which the deferrals were made
and may notify each such plan of the portion allocated to it. Notwithstanding the
above, the Employer may notify the Plan on behalf of the Participant of the amount
of excess deferrals received by the Plan to the extent the Participant has excess
deferrals for the taxable year calculated by taking into account only Before-Tax
Contributions under the Plan and Before-Tax deferrals under other plans, if any, of
the Employer. In the event such Participant or the Employer shall, not later than
March 1 following the close of the taxable year for which such excess deferrals were
made, so notify the Plan that an amount of such excess deferrals has been allocated
to it pursuant to the foregoing sentence, such amount, which shall be deemed an
Excess Deferral, shall, together with any net income allocable to such amount, be
distributed to the Participant not later than the April 15 following such March 1.
The net income allocable to Excess Deferrals is the sum of: (1) income or loss
allocable to the Participant’s Account for the taxable year multiplied by a
fraction, the numerator of which is the amount of such Participant’s Excess
Deferrals allocated to the Plan for the year, and the denominator of which is the
balance of the Participant’s Account without regard to any income or loss occurring
during such taxable year; and (2) ten percent of the amount determined under (1)
multiplied by the number of whole calendar months between the end of the
Participant’s taxable year and the date of distribution, counting the month of
distribution if distribution occurs after the 15th of such month. If there is a
loss allocable to the Excess Deferrals, the Excess Deferrals shall in no event be
less than the lesser of the Participant’s Account or the Participant’s Before-Tax
Contributions for the Plan Year. Any Excess Deferrals which are not distributed
shall remain in the Trust Fund, subject to the terms and provisions hereof,
including all withdrawal restrictions applicable to Before-Tax Contributions.
	 
	 	B.	 	For other purposes of the Code, including Sections 401(a)(4), 401(k)(3), 404,
409, 411, 412 and 416 of the Code, Excess Deferrals must be treated as employer
contributions. However, Excess Deferrals of a Participant who is not a Highly
Compensated Employee will not be taken into account for purposes of Section 401(k)(3)
of the Code (the Actual Deferral Percentage test) to the extent the Excess Deferrals
are prohibited under Section 401(a)(30) of the Code. Excess Deferrals will also be
treated as employer contributions for purposes of Section 415 of the Code.
	 
	 	C.	 	Corrective Action: In the event that a Participant’s Excess Deferrals for a
Plan Year are distributed to such Participant pursuant to Section 5.6A above, such
Excess Deferrals shall be deemed to consist of Before-Tax Contributions that are not
matched pursuant to the terms of the Plan to the extent thereof. Any Basic or Bonus
Matching Contribution made by an Employing Company with respect to any remaining Excess
Deferrals shall be forfeited and shall be allocated among the Basic or Bonus Matching
Contribution Accounts of Active Participants, other

22

 

	 	 	 	than the Basic or Bonus Matching Contribution Accounts of Active Participants who
receive a distribution pursuant to Section 5.6A above, in the manner provided in
Section 5.2 hereof.

23

 

SECTION 6 INVESTMENT OPTIONS AND DIRECTIVES

	6.1	 	INVESTMENTS:

	 	A.	 	Options: A Participant may elect to have his Before-Tax Contributions, any
Transfer Contributions or Rollover Contributions, if any, or the reallocation of his
Before-Tax Contribution Account, Rollover Account or Transfer Account invested in one
or more of the Options below:

OPTION 1: Money Market Fund

OPTION 2: Bond Index Fund

OPTION 3: S&P 500 Index Fund

OPTION 4: Dow Jones Large-Cap Value Index Fund

OPTION 5: Dow Jones Small-Cap Value Index Fund

OPTION 6: Dow Jones Large Growth Value Index Fund

OPTION 7: Dow Jones Small Growth Value Index Fund

OPTION 8: International Equity Index Fund

OPTION 9: Vulcan ESOP Fund

OPTION 10: Dow Jones Target Today Fund

OPTION 11: Dow Jones Target 2015 Fund

OPTION 12: Dow Jones Target 2025 Fund

OPTION 13: Dow Jones Target 2035 Fund

OPTION 14: Dow Jones Target 2045 Fund

	 	B.	 	Funds: A separate and distinct fund will be established for investments
associated with each Option. Some amounts held in funds which are invested primarily
in intermediate term fixed income securities, common stocks or Company Common Stock may
be temporarily invested in short-term, income-producing securities. Additionally, the
Dividend Payout Fund shall be established for the purposes of Sections 6.5 and 6.6
hereof.
	 
	 	C.	 	Investment Elections:

	 	(1)	 	A Participant must indicate his election of the current
investment of his monthly Before-Tax Contributions, via a toll-free telephone
number or website address provided by the Administrative Committee; provided a

24

 

	 	 	 	division of monthly Before-Tax Contributions, among the investment Options
must be in whole percentages.
	 
	 	(2)	 	A Participant who makes a Transfer Contribution, or a Rollover
Contribution must indicate his election for the investment of the Transfer
Contribution or Rollover Contribution at the time the Transfer Contribution or
Rollover Contribution is made. A division of Transfer Contributions or
Rollover Contributions among the investment Options must be either in a flat
dollar amount or in whole percentages.

	 	D.	 	Investment Election Changes: An investment election with respect to Before-Tax
Contributions will remain in effect until changed by a new election with respect to
current investments provided for in Section 6.1C(1) above. A new election with respect
to Before-Tax Contributions may be made by a Participant on a daily basis. Investment
elections will become effective on the next payroll date for that Participant following
the investment change. A Participant’s election with respect to the investment of any
Transfer Contribution or Rollover Contribution made by him shall continue in effect
until a new election with respect to his Rollover Account is made pursuant to Section
6.2 (Voluntary Reallocation of Existing Investments).
	 
	 	E.	 	Trading Restrictions on EAFE International Equity Index Fund: Transfers of
units of the International Equity Index Fund (the “EAFE Fund”), which have not been
invested for at least twenty-eight (28) days will be charged a redemption fee equal to
2% of the amount of the transfer, pursuant to procedures established and uniformly
applied by the Administrative Committee. Redemption of units of the EAFE Fund will be
handled on a first-in first out (FIFO) basis. Transfers out of a Participant’s units
in the EAFE Fund after the twenty-eight (28) day holding period expires will not be
subject to the 2% redemption fee. If a Participant performs multiple redemptions of
units of the EAFE Fund, each such redemption shall be subject to the twenty-eight (28)
day trading restriction.
	 
	 	F.	 	Default Investment Option: A Participant’s Before-Tax Contributions, any
Transfer Contributions or Rollover Contributions, if any, or the reallocation of his
Before-Tax Contribution Account, Rollover Account or Transfer Account not invested in
one or more of the Options in Section 6.1A above shall be invested by the Trustee in
the Dow Jones Target Fund designated by the Administrative Committee in accordance with
the Participant’s age.

	6.2	 	VOLUNTARY REALLOCATION OF EXISTING INVESTMENTS:

	 	A.	 	A Participant (or the Beneficiary or Beneficiaries of a deceased Participant)
may elect to reallocate the existing investments in any or all of his Accounts among
the Options indicated in Section 6.1A. Any Applicable Dividends allocated to a
Participant’s Dividend Payout Account may not be reallocated.

25

 

	 	B.	 	Elections: A voluntary reallocation of investments may be made by a
Participant on a daily basis via a toll-free telephone number provided by the
Administrative Committee. Any reallocation made prior to 4:00 p.m. (Eastern Time) on a
day the financial markets are open shall be effective on that date and shall be
executed at the closing price on that date. If the financial markets are closed or if
the reallocation is made after 4:00 p.m. (Eastern Time), the reallocation shall be
effective and executed as of the next close of the financial markets. Any reallocation
that requires the liquidation of Company Common Stock will be made, effective in whole
or in part, on any date or dates determined by the Administrative Committee not more
than six (6) months following the end of the month during which such notice is received
by the Administrative Committee, but in any event as soon as reasonably practicable.
Reallocations must be made in such a way that the allocation of a Participant’s
Before-Tax Contribution Account, Rollover Account, Basic Matching Contribution Account,
Bonus Matching Contribution Account, Profit Sharing Account or Transfer Account among
the investment Options will be either in flat dollar amounts or in whole percentages.

	6.3	 	INVESTMENT OF MATCHING CONTRIBUTIONS AND PROFIT SHARING CONTRIBUTIONS: Except as otherwise
required by a reallocation pursuant to Section 6.2 hereof, Matching Contributions and all
investment income thereon, will be invested in the Vulcan ESOP Fund. Except as otherwise
required by a reallocation pursuant to Section 6.2 hereof, Profit Sharing Contributions
allocated to a Participant shall be invested in the Default Investment Option for such
Participant pursuant to Section 6.1F.

	6.4	 	VOTING OR TENDERING COMPANY COMMON STOCK:

	 	A.	 	Voting Company Common Stock: Before each annual or special meeting of the
shareholders of the Company, the Company will furnish each Participant with a copy of
the proxy solicitation material for the meeting, together with a form addressed to the
Trustee on which a Participant may give his confidential instructions on how the shares
of the Company Common Stock which are represented by the amount standing to the credit
of such Participant should be voted. Upon receipt of such instructions the Trustee
will vote that number of shares of such stock as instructed. Instructions received by
the Trustee from Participants will be held by the Trustee in strict confidence and will
not be divulged to any person, including officers or Employees of the
Company. Any shares in the Savings Fund for which the Trustee receives no voting instructions prior
to the close of business on the fifth business day immediately
preceding the date such shares are to be voted shall be voted by the
Trustee in the same proportion as the shares for which instructions were received.
	 
	 	B.	 	Tendering Company Common Stock: In the event the Trustee receives a tender or
exchange offer for shares of Company Common Stock, each Participant may instruct the
Trustee as to the disposition of such shares which are represented by the amount
standing to the credit of such Participant. The Trustee shall sell,

26

 

	 	 	 	convey or transfer such shares in response to a tender or exchange offer in
accordance with such written instructions of Participants. With
respect to such shares for which no such instructions are received by the Trustee, no earlier than
the last day before response to such tender or exchange offer may be required, the
Trustee shall have the power and authority to sell, convey and transfer such shares
in the exercise of its discretion to the extent that he deems such action may be in
the best interests of Participants.
	 
	 	C.	 	No Breach of Fiduciary Responsibility: No provision of this Plan shall prevent
the Trustee from taking any action relating to its duties if the Trustee reasonably
determines that such action is necessary in order for the Trustee to fulfill its
fiduciary responsibility under ERISA; provided, however, that the Trustee must notify
the Company (and affected Participants) of any such proposed action prior to effecting
the same.

	6.5	 	DIVIDEND REINVESTMENT ELECTIONS: A Participant may elect to have Applicable Dividends
reinvested in Company Common Stock or credited to the Participant’s Dividend Payout Account
and paid to such Participant in cash. A Participant may make such election under the
procedures established in a uniform manner by the Administrative Committee. Any such election
shall remain in effect until changed by the Participant. Any Participant who does not make an
election hereunder shall be deemed to have elected to have any Applicable Dividends reinvested
in Company Common Stock. To be effective with respect to an Applicable Dividend, a
Participant’s election must be made by 4:00 p.m. Eastern Time of the day prior to the record
date with respect to each Applicable Dividend, or at such other time as may be established by
the Administrative Committee and communicated to Participants.

	6.6	 	INVESTMENT OF DIVIDEND PAYOUT ACCOUNT: All amounts credited to a Participant’s Dividend
Payout Account shall be invested in the Dividend Payout Fund which shall be primarily invested
in short-term interest producing securities.

27

 

SECTION 7 ALLOCATION AND DETERMINATION OF ACCOUNTS

	7.1	 	INVESTMENT ACCOUNTS: Each Participant will have a separate account maintained for each
investment Option and source of funds. Thus, a Participant may have one Investment Account
for each investment Option for his Before-Tax Contribution Account; additional Investment
Accounts for his Rollover Account; additional Investment Accounts for his Transfer Account.
In addition, a Participant who has elected a reallocation pursuant to Section 6.2 may have
additional Investment Accounts for his Basic Matching Contribution Account, Bonus Matching
Contribution Account or Profit Sharing Contribution Account.

	7.2	 	PROFIT SHARING CONTRIBUTION ACCOUNT: A Participant’s Profit Sharing Contribution Account
value as of any date will equal the sum of the value at such date in each of his Profit
Sharing Investment Accounts.

	7.3	 	BEFORE-TAX CONTRIBUTION ACCOUNT: A Participant’s Before-Tax Contribution Account value as of
any date will equal the sum of the value of each of his Before-Tax Investment Accounts at such
date.

	7.4	 	BASIC MATCHING CONTRIBUTION ACCOUNT: A Participant’s Basic Matching Contribution Account
value as of any date will equal the value at such date of his Investment Accounts created from
Basic Matching Contributions.

	7.5	 	BONUS MATCHING CONTRIBUTION ACCOUNT: A Participant’s Bonus Matching Contribution Account
value as of any date will equal the value at such date of his Investment Accounts created from
Bonus Matching Contributions.

	7.6	 	ROLLOVER ACCOUNT: A Participant’s Rollover Account value as of any date will equal the sum
of the value of each of his Rollover Account Investment Accounts at such date.

	7.7	 	TRANSFER ACCOUNT: A Participant’s Transfer Account value as of any date will equal the sum
of the value of each of his Transfer Investment Accounts.

	7.8	 	DIVIDEND PAYOUT ACCOUNT: A Participant’s Dividend Payout Account value as of any date will
equal the sum of value of the subaccounts of the Participant’s Dividend Payout Account. A
Participant’s Dividend Payout Account shall contain two subaccounts. One such subaccount
shall contain the Applicable Dividends credited to the Participant’s Dividend Payout Accounts.
The second subaccount shall contain the earnings of the Dividend Payout Fund allocable to
such Participant.

	7.9	 	NOTICE TO PARTICIPANTS: A statement will be forwarded to each Participant at least quarterly
indicating the status of his various accounts.

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SECTION 8 DISTRIBUTIONS

	8.1	 	VALUE OF DISTRIBUTION: The values available in the event of distribution are as follows:

	 	A.	 	Termination of employment: Total Account.
	 
	 	B.	 	Disability as defined in Section 1.28: Total Account.
	 
	 	C.	 	In-Service Withdrawals: A Participant may elect to make withdrawals from his
Total Account while employed, subject to the following limitations:

	 	(1)	 	Withdrawal from Rollover Account: A Participant may elect to
make a withdrawal from his Rollover Account of an amount up to the value of his
Rollover Account.
	 
	 	(2)	 	Withdrawal from Basic Matching Contribution Account or Bonus
Matching Contribution Account: A Participant may elect to make a withdrawal
from his Basic Matching Contribution Account and Bonus Matching Contribution
Account of an amount up to the value of his Basic Matching Contribution Account
or Bonus Matching Contribution Account; however, if the Participant has not
been a Participant for the 60 months immediately preceding such withdrawal, the
amount of Matching Contributions credited to his Basic or Bonus Matching
Contribution Account during the preceding twenty-four (24) months may not be
withdrawn; however, such Matching Contributions may be distributed as part of a
subsequent in-service withdrawal after such Matching Contributions have been on
deposit for 24 months or upon earlier termination of employment.
	 
	 	(3)	 	Withdrawals from Before-Tax Contribution Account, Profit
Sharing Contribution Account, and Transfer Account:

	 	(a)	 	After Attainment of Age 59-1/2: A Participant
who has attained age 59-1/2 may elect to make a withdrawal from his
Before-Tax Contribution Account, Profit Sharing Contribution Account
and Transfer Account up to an amount of the value of his Before-Tax
Contribution Account, Profit Sharing Contribution Account and Transfer
Account.
	 
	 	(b)	 	Before Attainment of Age 59-1/2: No portion of a
Participant’s Before-Tax Contribution Account may be distributed to the
Participant while he remains an Employee and prior to his attainment of
age 59-1/2, except as provided in (i), (ii), and (iii) below. A
Participant who makes a withdrawal from his Before-Tax Contribution
Account while an Employee and prior to attaining age 59-1/2 shall be
ineligible to have Before-Tax

29

 

	 	 	 	Contributions and Basic or Bonus Matching Contributions made on his
behalf for the 6-month period immediately following such withdrawal.

	 	(i)	 	A Participant may make a
withdrawal from his Before-Tax Contribution Account, if the
Participant demonstrates to the satisfaction of the
Administrative Committee that a distribution of an amount from
his Before-Tax Contribution Account, is necessary to meet an
immediate and heavy financial need. A distribution is deemed to
be on account of an immediate and heavy financial need of the
Employee if the distribution is for one of the following needs:

	 	(A)	 	Expenses for (or
necessary to obtain) medical care that would be
deductible under section 213(d) (determined without
regard to whether the expenses exceed 7.5% of adjusted
gross income);
	 
	 	(B)	 	Costs directly
related to the purchase of a principal residence for the
employee (excluding mortgage payments);
	 
	 	(C)	 	Payment of
tuition, related educational fees, and room and board
expenses, for up to the next 12 months of post-secondary
education for the employee, or the employee’s spouse,
children, or dependents (as defined in Section 152, and,
for taxable years beginning on or after January 1, 2005,
without regard to Sections 152(b)(1), (b)(2) and
(d)(1)(B));
	 
	 	(D)	 	Payments
necessary to prevent the eviction of the employee from
the employee’s principal residence or foreclosure on the
mortgage on that residence;
	 
	 	(E)	 	Payments for
burial or funeral expenses for the employee’s deceased
parent, spouse, children or dependents (as defined in
Section 152, and, for taxable years beginning on or
after January 1, 2005, without regard to Section
152(d)(1)(B)); or
	 
	 	(F)	 	Expenses for the
repair of damage to the employee’s principal residence
that would qualify for the casualty deduction under
Section 165 (determined without regard to whether the
loss exceeds 10% of adjusted gross income).

30

 

	 	(ii)	 	A distribution will be treated as
necessary to satisfy an immediate and necessary financial need
if:

	 	(A)	 	Distribution does
not exceed amount of need. A distribution is treated as
necessary to satisfy an immediate and heavy financial
need of an Employee only to the extent the amount of the
distribution is not in excess of the amount required to
satisfy the financial need. For this purpose, the
amount required to satisfy the financial need may
include any amounts necessary to pay any federal, state,
or local income taxes or penalties reasonably
anticipated to result from the distribution.
	 
	 	(B)	 	No alternative
means available. A distribution is not treated as
necessary to satisfy an immediate and heavy financial
need of an Employee to the extent the need may be
relieved from other resources that are reasonably
available to the Employee. This determination generally
is to be made on the basis of all the relevant facts and
circumstances. For purposes of this paragraph (ii), the
Employee’s resources are deemed to include those assets
of the Employee’s spouse and minor children that are
reasonably available to the Employee. Thus, for
example, a vacation home owned by the Employee and the
Employee’s spouse, whether as community property, joint
tenants, tenants by the entirety, or tenants in common,
generally will be deemed a resource of the Employee.
However, property held for the employee’s child under an
irrevocable trust or under the Uniform Gifts to Minors
Act (or comparable State law) is not treated as a
resource of the Employee.
	 
	 	(C)	 	Employer reliance
on Employee representation. For purposes of paragraph
(B) of this section, an immediate and heavy financial
need generally may be treated as not capable of being
relieved from other resources that are reasonably
available to the Employee, if the Employer relies upon
the Employee’s representation (made in writing or such
other form as may be prescribed by the Commissioner),
unless the Employer has actual knowledge to the
contrary, that the need cannot reasonably be relieved —

31

 

	 	(1)	 	Through reimbursement or compensation by
insurance or otherwise;
	 
	 	(2) 	 	By liquidation of the Employee’s assets;
	 
	 	(3)	 	By cessation of elective contributions or
Employee contributions under the Plan;
	 
	 	(4)	 	By other currently available distributions
(including distribution of ESOP dividends under
section 404(k)) and nontaxable (at the time of
the loan) loans, under plans maintained by the
employer or by any other Employer; or
	 
	 	(5)	 	By borrowing from commercial sources on
reasonable commercial terms in an amount
sufficient to satisfy the need.

	 	(iii)	 	The amount subject to withdrawal
under this Section 8.1C(4)(b) by a Participant while an Employee
and prior to attaining age 59-1/2 shall not exceed the lesser of
(A) or (B) below:

	 	(A)	 	The lesser of the
amount of Before-Tax Contributions which have been
credited to his Before-Tax Contribution Account less any
amount previously distributed, or the value of his
Before-Tax Contribution Account; or
	 
	 	(B)	 	Such amount as
the Administrative Committee shall deem to be necessary
or appropriate in light of the special financial need
established by the Participant.

	 	(4)	 	Determination of Values: For purposes of this Section 8.1, the
“value” of a defined Account will be determined by the Administrative Committee
as of the date preceding the date of the distribution.
	 
	 	(5)	 	Priority: A Participant shall not be permitted to make a
withdrawal pursuant to Section 8.1C(2), (3) or (4) until he has withdrawn all
amounts, if any, which he may withdraw pursuant to all preceding sections.
	 
	 	(6)	 	Election Procedure: An election to make a withdrawal pursuant
to the provisions of this Section 8.1C shall be made at such time and in such
manner as prescribed by the Administrative Committee.

32

 

	 	(7)	 	Limitations: A Participant may make only two withdrawals
pursuant to Section 8.1C per calendar year. There shall be no minimum
withdrawal amount.

	8.2	 	DIVIDEND DISTRIBUTIONS: A Participant who has elected to receive an Applicable Dividend in
cash will receive a distribution of such Applicable Dividends as promptly as practicable
following the payment of the Company’s quarterly dividends. In all events such distribution
of Applicable Dividends shall be made no later than 90 days following the last day of the
calendar quarter in which such Applicable Dividends are paid by the Company. As of the date
of such distribution, the amount of the distribution shall be deducted from the Participant’s
Dividend Payout Account, and the balance of the Participant’s Dividend Payout Account will be
transferred to the Participant’s Application Account, and invested in the Vulcan ESOP Fund.

	8.3	 	FORM OF DISTRIBUTION:

	 	A.	 	Cash or Securities: Distributions will be made in cash, except that any
portion of a Participant’s Total Account invested in Company Common Stock may be
distributed in the form of Company Common Stock, at the request of the Participant or
the Beneficiary of a deceased Participant.

	B.	 	Method of Distribution: Benefits payable under Section 8.1A or Section 8.1B to
a Participant or to the Beneficiary of a deceased Participant shall be payable as
follows:

	 	(1)	 	At the option of the Participant, distribution of the benefit
payable to such Participant shall be made in one of the following forms:

	 	(a)	 	Lump sum; or
	 
	 	(b)	 	Periodic payments for a fixed period: This
alternative provides monthly, quarterly or annual periodic payments
over a period to be selected by the Participant, but not to exceed the
life expectancy of the Participant, or, if the Participant’s
Beneficiary is a natural person, the life expectancy of the Participant
and his Beneficiary. The Participant’s Accounts shall continue to be
invested in the manner provided in Section 7 until the Participant’s
entire Total Account has been distributed. The amount of each monthly,
quarterly or annual payment will be determined by dividing the value of
the Participant’s Total Account as of the end of the month preceding
the month in which such payment is made by the number of such payments
to be made after such date. Such payment will be charged against the
Participant’s Investment Accounts in proportion to their respective
balances.
	 
	 	 	 	Notwithstanding the foregoing, in the event payments of a benefit due
a Participant will extend beyond December 31 of the Plan Year in
which the Participant will attain age 70-1/2, the

33

 

	 	 	 	Administrative Committee may make such adjustments to payments as may
be necessary to comply with Section 401(a)(9) of the Internal Revenue
Code.

	 	(2)	 	At the option of the Beneficiary of a deceased Participant, the
benefit payable to such Beneficiary shall be distributed in one of the
following forms:

	 	(a)	 	Lump sum; or
	 
	 	(b)	 	Periodic payments for a fixed period: This
alternative provides for monthly, quarterly or annual periodic payments
over a fixed period to be selected by the Beneficiary. Unless
distribution of the deceased Participant’s benefits commenced prior to
his death in the form described in Section 8.3B(1)(b) or unless the
Beneficiary is a natural person and payments are to be made over a
period not in excess of the life expectancy of such Beneficiary, the
period over which such periodic payments may be made may not extend
beyond the expiration of the fifth year after the death of the
Participant. If distribution of the deceased Participant’s benefit
commenced prior to the Participant’s death in the method described in
Section 8.3B(1)(b), the period over which such periodic payments may be
made to the Beneficiary may not extend beyond the later of the
expiration of the term certain coinciding with the life expectancy of
the Beneficiary or the expiration of the term certain over which
payment of the deceased Participant’s benefit was being made; provided,
however, that the remaining interest to be distributed must be
distributed at least as rapidly as under the method of distribution
being used as of the date of the Participant’s death. If a Beneficiary
is a natural person, benefit payments may be made over a term certain
not extending beyond the life expectancy of the Beneficiary. The
Participant’s Accounts shall continue to be invested in the manner
provided in Section 7 until the Participant’s entire Total Account has
been distributed. The amount of each monthly, quarterly or annual
payment will be determined by dividing the value of the Participant’s
Total Account as of the end of the month preceeding the month in which
such payment is made by the number of such payments to be made after
such date. Such payment will be charged against the Participant’s
Investment Accounts in proportion to their respective balances.

	 	(3)	 	Notwithstanding any provision of the Plan to the contrary, a
Distributee may elect, at such time and manner specified by the Administrative
Committee to have any portion of a distribution under this Section 8 that
constitutes an Eligible Rollover Distribution paid in a Direct Rollover. Any
such Direct Rollover shall be made by check or wire transfer, as

34

 

	 	 	 	elected by the Distributee, provided that any expenses of a wire transfer
shall be charged against the Distributee’s Account or Accounts immediately
prior to such Direct Rollover. An Eligible Rollover Distribution, or any
part thereof, shall not be paid in a Direct Rollover to more than one
Eligible Retirement Plan. An Eligible Rollover Distribution of less than
$200 may not be paid in a Direct Rollover.
	 
	 	(4)	 	In the event of a mandatory distribution greater than $1,000
that is made in accordance with the provisions of Section 8.3B of the Plan
providing for an automatic distribution to a Participant without the
Participant’s consent, if the Participant does not elect to have such
distribution paid directly to an Eligible Retirement Plan specified by the
Participant in a Direct Rollover (in accordance with the Direct Rollover
provisions of Section 8.3B(3) of the Plan) or to receive the distribution
directly, then the Administrative Committee shall pay the distribution in a
Direct Rollover to an individual retirement plan designated by the
Administrative Committee.

	 	C.	 	For purposes of Section 8.3B of the Plan, the value of a Participant’s
nonforfeitable account balance shall be determined without regard to that portion of
the account balance that is attributable to Rollover Contributions (and earnings
allocable thereto) within the meaning of sections 402(c), 403(a)(4), 403(b)(8),
408(d)(3)(A)(ii), and 457(e)(16) of the Code.
	 
	 	D.	 	Date of Distribution: The date upon which payment of a benefit is to be made
or commenced shall be subject to the following rules:

	 	(1)	 	Subject to Section 8.3B and C, payment of a benefit due a
Participant or Beneficiary of a deceased Participant will be made or, in the
case of periodic payments, commenced as promptly as practicable after, but no
later than the 60th day following the end of, the calendar year in which
occurred the event giving rise to the distribution.
	 
	 	(2)	 	Payment of a benefit due a Participant must be made (or in the
case of periodic payments commenced) by the Participant’s Required Beginning
Date.
	 
	 	(3)	 	A Participant whose Total Account exceeds $5,000, and who
retires on or after his attainment of age 55 or incurs a Disability may request
that distribution of his benefit be deferred to a date not later than the
latest date permissible under Section 8.3C(2) by executing and delivering to
the Administrative Committee a written instrument in such form as the
Administrative Committee may prescribe. This written instrument must be
delivered to the Administrative Committee within 10 days following termination
of the Participant’s employment or such later date as the Administrative
Committee may determine. Distribution of the Participant’s benefit shall be
made or commenced on the latest date permissible

35

 

	 	 	 	under Section 8.3C(2) unless the Participant requests that distribution be
made or commenced at an earlier date. The Participant may at any time
request the Administrative Committee to make or commence payment of his
benefit at any earlier date.
	 
	 	(4)	 	If the value of the Participant’s Total Account exceeds $5,000,
payment of the Participant’s benefit may not be made or commenced prior to the
Participant’s Normal Retirement Date without the Participant’s written consent.
For purposes of this subsection, the value of a Participant’s nonforfeitable
account balance shall be determined without regard to that portion of the
account balance that is attributable to Rollover Contributions (and earnings
allocable thereto) within the meaning of sections 402(c), 403(a)(4), 403(b)(8),
408(d)(3)(A)(ii), and 457(e)(16) of the Code.

	 	E.	 	Incidental Death Benefits Only: Notwithstanding any provisions hereof to the
contrary, no Participant shall be permitted to elect an optional form of benefit
payment or to defer the date as of which payment of such benefit is to commence to the
extent that such election results in creating a death benefit that is more than
incidental. For such purpose, the death benefit will be considered more than merely
incidental if the Beneficiary is a person other than the spouse of the Participant and
the present value of the payments to be made to the Participant is not more than fifty
percent (50%) of the present value of the total payments to be made to the Participant
and his Beneficiary.
	 
	 	F.	 	Forms of Distribution. Unless the Participant’s interest is distributed in the
form of an annuity purchased from an insurance company or in a single sum on or before
the required beginning date, as of the first distribution calendar year distributions
will be made in accordance with subsections 8.4 and 8.5. If the Participant’s interest
is distributed in the form of an annuity purchased from an insurance company,
distributions thereunder will be made in accordance with the requirements of section
401(a)(9) of the Code and the Treasury regulations.

	8.4	 	REQUIRED MINIMUM DISTRIBUTIONS DURING PARTICIPANT’S LIFETIME:

	 	A.	 	Amount of Required Minimum Distributions For Each Distribution Calendar Year:
During the Participant’s lifetime, the minimum amount that will be distributed for each
distribution calendar year is the lesser of:

	 	(1)	 	the quotient obtained by dividing the Participant’s
account balance by the distribution period in the Uniform Lifetime
Table set forth in section 1.401(a)(9)-9 of the Treasury regulations,
using the Participant’s age as of the Participant’s birthday in the
distribution calendar year; or
	 
	 	(2)	 	if the Participant’s sole designated beneficiary for
the distribution calendar year is the Participant’s spouse, the
quotient obtained by

36

 

	 	 	 	dividing the Participant’s account balance by the number in the
Joint and Last Survivor Table set forth in section 1.401(a)(9)-9 of
the Treasury regulations, using the Participant’s and spouse’s
attained ages as of the Participant’s and spouse’s birthdays in the
distribution calendar year.

	 	B.	 	Lifetime Required Minimum Distributions Continue Through Year of Participant’s
Death: Required minimum distributions will be determined under this section 8.4
beginning with the first distribution calendar year and up to and including the
distribution calendar year that includes the Participant’s date of death.

	8.5	 	REQUIRED MINIMUM DISTRIBUTIONS AFTER PARTICIPANT’S DEATH:

	 	A.	 	Death of Participant Before Distributions Begin: If the Participant dies
before distributions begin, the Participant’s entire interest will be distributed, or
begin to be distributed, no later than the Required Beginning Date as set forth below:

	 	(1)	 	If the Participant’s surviving spouse is the Participant’s sole
designated beneficiary, distributions to the surviving spouse will begin by
December 31 of the calendar year immediately following the calendar year in
which the Participant died, or by December 31 of the calendar year in which the
Participant would have attained age 70 1/2, if later.
	 
	 	(2)	 	If the Participant’s surviving spouse is not the Participant’s
sole designated beneficiary, distributions to the designated beneficiary will
begin by December 31 of the calendar year immediately following the calendar
year in which the Participant died.
	 
	 	(3)	 	If there is no designated beneficiary as of September 30 of the
year following the year of the Participant’s death, the Participant’s entire
interest will be distributed by December 31 of the calendar year containing the
fifth anniversary of the Participant’s death.
	 
	 	(4)	 	If the Participant’s surviving spouse is the Participant’s sole
designated beneficiary and the surviving spouse dies after the Participant but
before distributions to the surviving spouse begin, this section 8.5A, other
than subsection 8.5A(1), will apply as if the surviving spouse were the
Participant.

	 	 	 	For purposes of this section 8.5, unless subsection 8.5A(4) applies, distributions
are considered to begin on the Participant’s required beginning date. If subsection
8.5A(4) applies, distributions are considered to begin on the date distributions are
required to begin to the surviving spouse under subsection 8.5A(1). If
distributions under an annuity purchased from an insurance company irrevocably
commence to the Participant before the Participant’s Required Beginning Date (or to
the Participant’s surviving spouse before the date distributions are required to

37

 

	 	 	 	begin to the surviving spouse under subsection 8.5A(1)), the date distributions are
considered to begin is the date distributions actually commence.

	 	B.	 	Required Minimum Distributions After Participant’s Death.

	 	(1)	 	Death On or After Date Distributions Begin.

	 	(a)	 	Participant Survived by Designated Beneficiary:
If the Participant dies on or after the date distributions begin and
there is a Designated Beneficiary, the minimum amount that will be
distributed for each distribution calendar year after the year of the
Participant’s death is the quotient obtained by dividing the
Participant’s account balance by the longer of the remaining life
expectancy of the Participant or the remaining life expectancy of the
Participant’s designated beneficiary, determined as follows:

	 	(i)	 	The Participant’s remaining life
expectancy is calculated using the age of the Participant in the
year of death, reduced by one for each subsequent year.
	 
	 	(ii)	 	If the Participant’s surviving
spouse is the Participant’s sole Designated Beneficiary, the
remaining life expectancy of the surviving spouse is calculated
for each distribution calendar year after the year of the
Participant’s death using the surviving spouse’s age as of the
spouse’s birthday in that year. For distribution calendar years
after the year of the surviving spouse’s death, the remaining
life expectancy of the surviving spouse is calculated using the
age of the surviving spouse as of the spouse’s birthday in the
calendar year of the spouse’s death, reduced by one for each
subsequent calendar year.
	 
	 	(iii)	 	If the Participant’s surviving
spouse is not the Participant’s sole Designated Beneficiary, the
Designated Beneficiary’s remaining life expectancy is calculated
using the age of the beneficiary in the year following the year
of the Participant’s death, reduced by one for each subsequent
year.

	 	(b)	 	No Designated Beneficiary: If the Participant
dies on or after the date distributions begin and there is no
Designated Beneficiary as of September 30 of the year after the year of
the Participant’s death, the minimum amount that will be distributed
for each distribution calendar year after the year of the Participant’s
death is the quotient obtained by dividing the Participant’s account
balance by the Participant’s remaining life expectancy calculated using
the

38

 

	 	 	 	age of the Participant in the year of death, reduced by one for each
subsequent year.

	 	(2)	 	Death Before Date Distributions Begin.

	 	(a)	 	Participant Survived by Designated Beneficiary:
If the Participant dies before the date distributions begin and there
is a Designated Beneficiary, the minimum amount that will be
distributed for each distribution calendar year after the year of the
Participant’s death is the quotient obtained by dividing the
Participant’s account balance by the remaining life expectancy of the
Participant’s Designated Beneficiary, determined as provided in section
8.5B(1).
	 
	 	(b)	 	No Designated Beneficiary: If the Participant
dies before the date distributions begin and there is no Designated
Beneficiary as of September 30 of the year following the year of the
Participant’s death, distribution of the Participant’s entire interest
will be completed by December 31 of the calendar year containing the
fifth anniversary of the Participant’s death.
	 
	 	(c)	 	Death of Surviving Spouse Before Distributions
to Surviving Spouse Are Required to Begin: If the Participant dies
before the date distributions begin, the Participant’s surviving spouse
is the Participant’s sole designated beneficiary, and the surviving
spouse dies before distributions are required to begin to the surviving
spouse under section 8.5A(1), this section 8.5B(2) will apply as if the
surviving spouse were the Participant.

	8.6	 	DEFINITIONS FOR SECTION 8:

	 	A.	 	Designated Beneficiary. The individual who is designated as the Beneficiary
under section 1.15 of the Plan and is the designated beneficiary under section
401(a)(9) of the Internal Revenue Code and section 1.401(a)(9)-1, Q&A-4, of the
Treasury regulations.
	 
	 	B.	 	Distribution calendar year. A calendar year for which a minimum distribution
is required. For distributions beginning before the Participant’s death, the first
distribution calendar year is the calendar year immediately preceding the calendar year
which contains the Participant’s required beginning date. For distributions beginning
after the Participant’s death, the first distribution calendar year is the calendar
year in which distributions are required to begin under section 8.5A. The required
minimum distribution for the Participant’s first distribution calendar year will be
made on or before the Participant’s required beginning date. The required minimum
distribution for other distribution calendar years, including the required minimum
distribution for the distribution calendar year in which the Participant’s required
beginning date occurs, will be made on or before December 31 of that distribution
calendar year.

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	 	C.	 	Life expectancy. Life expectancy as computed by use of the Single Life Table
in section 1.401(a)(9)-9 of the Treasury regulations.
	 
	 	D.	 	Participant’s account balance. The account balance as of the last valuation
date in the calendar year immediately preceding the distribution calendar year
(valuation calendar year) increased by the amount of any contributions made and
allocated or forfeitures allocated to the account balance as of dates in the valuation
calendar year after the valuation date and decreased by distributions made in the
valuation calendar year after the valuation date. The account balance for the
valuation calendar year includes any amounts rolled over or transferred to the Plan
either in the valuation calendar year or in the distribution calendar year if
distributed or transferred in the valuation calendar year.
	 
	 	E.	 	Required Beginning Date. The date specified in section 1.60 hereof.

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SECTION 9 SAVINGS FUND

	9.1	 	ESTABLISHMENT OF SAVINGS FUND:

	 	A.	 	Savings Fund: The Company shall establish the Savings Fund with a corporate
Trustee. All Participants’ Before-Tax Contribution Accounts, Basic Matching
Contribution Accounts, Bonus Matching Contribution Accounts, Rollover Accounts, Profit
Sharing Contribution Accounts and Transfer Accounts established under Section 7
together shall constitute the Savings Fund held in trust by such Trustee.
	 
	 	B.	 	Diversion Prohibited: At no time will any part of the corpus or income of the
Savings Fund be used or diverted for any purpose other than for the exclusive benefit
of the Participants or their Beneficiaries pursuant to the Plan, and no portion of the
Savings Fund is recoverable by an Employing Company except as provided in Section 9.4
(Recovery of Employing Company Contributions).

	9.2	 	BENEFITS LIMITED TO SAVINGS FUND: A Participant or other person who may claim the right to a
payment under the Plan must look only to the Savings Fund for such payment. No liability for
the payment of benefits under the Plan shall be imposed upon the Board, the Administrative
Committee, an Employing Company or the officers, directors, employees, or shareholders of any
Employing Company.

	9.3	 	EXPENSES: Investment manager fees, brokerage commissions, transfer taxes, taxes on
investments and other charges and expenses in connection with the purchase or sale of
securities for an investment fund described in Section 6.1 (Investments) shall be charged to
such fund. All other reasonable costs and expenses incurred in administering the Plan,
including compensation payable to the Trustee, shall be allocated to and borne by each
Employing Company as determined by the Administrative Committee. If, in connection with a
change in investment managers of a fund (or part of a fund) associated with an Option which is
not invested in equity securities or Company Common Stock, there will be a delay between the
effective date of such change and the settlement date, the Administrative Committee may
instruct the Trustee to borrow an amount not exceeding the amount in such fund as of the
effective date of the change of investment managers and to invest the borrowed amount with the
new investment manager until the settlement date of the change, and any interest payable with
respect to such borrowed amount shall be treated as an expense of administering the Plan
payable by the Company.

	9.4	 	RECOVERY OF EMPLOYING COMPANY CONTRIBUTIONS:

	 	A.	 	Except as provided in this Section 9.4, no portion of the Savings Fund is
recoverable by any Employing Company.
	 
	 	B.	 	If all or any portion of an Employing Company’s contribution has been paid by
mistake of fact, such contribution, or portion thereof, which has been paid by mistake
of fact shall be returned to the Employing Company at any time within

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	 	 	 	one year after the date of payment thereof upon the Employing Company’s filing a
written request therefor with the Administrative Committee.
	 
	 	C.	 	Each contribution of each Employing Company is conditioned upon the initial
qualification of the Plan as to such Employing Company under Section 401 of the
Internal Revenue Code, and if the Plan does not so qualify, such contributions shall be
returned to such Employing Company at any time within one year after the date of denial
of qualification upon the Employing Company’s filing a written request therefor with
the Administrative Committee.
	 
	 	D.	 	Each contribution of each Employing Company is conditioned upon the
deductibility of such contribution under Section 404 of the Internal Revenue Code. If,
and to the extent that, an Employing Company is disallowed a deduction for a
contribution, such contribution (to the extent disallowed as a deduction) shall be
returned to the Employing Company within one year after disallowance of such deduction
upon such Employing Company’s filing a written request therefor with the Administrative
Committee.
	 
	 	E.	 	The amount which may be returned to an Employing Company pursuant to this
Section 9.4 is the excess of the amount contributed over the amount that would have
been contributed had there not occurred a mistake of fact, a mistake as to
deductibility, or a mistake as to qualification. Earnings attributable to the excess
contribution may not be returned to the Employing Company, but losses attributable
thereto must reduce the amount to be so returned. Furthermore, if the withdrawal of
the amount attributable to the mistaken contribution would cause the balance of the
Total Account of any Participant to be reduced to less than the balance which would
have been in the Total Account had the mistaken amount not been contributed, then the
amount to be returned to the Employing Company must be limited so as to avoid such
reduction.

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SECTION 10 LOANS

	10.1	 	ELIGIBILITY FOR LOAN: A Participant who is receiving Compensation from which payroll
deductions may be made from an Employing Company is eligible to apply for a Loan at any time.
A Participant must authorize the deduction from his Earnings, through regular payroll
deductions, of amounts necessary to pay installments of principal and interest on his Loan as
such installments become due.
	 
	10.2	 	MINIMUM AND MAXIMUM LOAN AMOUNTS:

	 	A.	 	Minimum Loan Amount: The minimum amount of a Loan shall be $500.00.
	 
	 	B.	 	Maximum Loan Amount: The maximum amount of the Loan which may be made to a
Participant shall be equal to the lesser of:

	 	(1)	 	Fifty (50%) percent of the value of the Participant’s Total
Account, less the outstanding balance of all existing Loans, or
	 
	 	(2)	 	$50,000, reduced by the highest outstanding balance of existing
Loans during the 12 months preceding the effective date of such Loan.

	 	 	 	Notwithstanding the foregoing, the Administrative Committee may (but shall not be
required to) establish a lower maximum amount if necessary to prevent a Loan from
being treated as having been received by a Participant as a distribution from the
Plan pursuant to Section 72(p) of the Internal Revenue Code.

	10.3	 	LOAN DUE DATE: All Loans will have a term of no more than 60 months or such lesser number of
months divisible by 6 and established by the Participant at the time application for the Loan
is made and will be repaid in substantially equal installments of principal and interest
through regular payroll deductions beginning with the first payroll period coincident with or
next following the date of the Loan; provided, however, that if a Participant is not currently
receiving pay from an Employing Company, installments must be paid by check or U.S. Postal
Money Order and received by the Administrative Committee on or before the 5th business day
following the date such installment is due.

	10.4	 	LOAN RENEWAL: Loans cannot be renewed. However, the due date for payment of an installment
or installments of a Loan may, in the sole discretion of the Administrative Committee, be
extended as provided in Section 10.5A. In no event will a Participant be permitted to have
more than three Loans outstanding at any one time.

	10.5	 	ACCELERATION OF LOAN DUE DATE:

	 	A.	 	Default: A Loan will normally become due and payable in full upon a
Participant’s failure to make any payment of principal or interest as specified in
Section 10.3. In the event a Participant who has received a Loan and who has not
experienced a Termination of Employment Service is receiving no pay, or reduced pay,
the Administrative Committee may, in its discretion, extend the due

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	 	 	 	date for payment of the remaining installment or installments of principal and
interest under the Participant’s Loan; provided that no such installment shall be
extended for an aggregate period in excess of 12 months. In the event of any such
extension of the due date or due dates of the remaining installment or installments,
the amount of each such remaining installment shall be adjusted to the extent
appropriate to reflect any increase in the amount of interest accruing as a result
of the extension.
	 
	 	B.	 	Benefit Distribution: A Loan will automatically become due and payable in full
upon the effective date of a distribution which will reduce the value of the
Participant’s Total Account to less than 133% of the aggregate balance of all
outstanding Loans to the Participant.

	10.6	 	LOAN DEFAULT: In the event there is an acceleration of the due date with respect to a Loan
pursuant to Section 10.5, the Participant will automatically be deemed to make a withdrawal
from his Accounts of the amount required to satisfy the Loan and accrued interest and the
amount of such withdrawal will automatically be applied in satisfaction of such Loan and
accrued interest thereon.

	10.7	 	LOAN REPAYMENT: A Participant may repay a Loan in full (including principal and accrued
interest) at any time prior to its due date.

	10.8	 	LOAN INTEREST RATE: The annual percentage rate of interest will be determined by the
Administrative Committee at the time the application for the Loan is made, provided that the
interest rate may not exceed the maximum rate for such Loans permitted by law.

	10.9	 	LOAN FEES: A Participant who obtains a Loan shall be charged a loan fee established by the
Administrative Committee and communicated to Participants. A Participant’s Investment
Accounts shall be reduced pro rata by the amount of this fee at the time the Loan is
disbursed.

	10.10	 	GENERAL LOAN CONDITIONS: All Loans are subject to approval of the Administrative Committee
and such rules and conditions as the Administrative Committee may adopt from time to time.
	 
	 	 	A Loan will be considered as an investment of the Participant and shall be considered to be
an asset of the Savings Fund which is allocated to the Investment Accounts of the
Participant. The Participant’s Investment Accounts will be reduced pro rata by the amount
of the Loan. Any repayments made with respect to such Loan will be allocated to the
Participant’s Investment Accounts in accordance with his current investment direction.
	 
	 	 	Any distribution made to a Participant pursuant to Section 8 (Distributions) shall, at the
direction of the Administrative Committee, be applied first toward the payment of any
outstanding Loan he may have from the Plan, and his appropriate Investment Account or
Investment Accounts shall be reduced by the total amount then due with respect to principal
and interest on his note, with the interest being prorated to that time.

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	 	 	Such Loan shall be deemed paid to the extent of such deduction; however, a Participant shall
remain liable for any deficiency.
	 
	10.11	 	SUSPENSION OF LOAN REPAYMENTS UNDER SECTION 414(U) OF THE INTERNAL REVENUE CODE: Loan
repayments will be suspended under the Plan as permitted under Section 414(u) of the Internal
Revenue Code.

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SECTION 11 ADMINISTRATION OF THE PLAN

	11.1	 	ADMINISTRATOR: The Plan shall be administered by the Administrator, whose mailing address
and telephone number are:

Administrator

Vulcan Materials Company 401(k) for

  Profit Sharing Retirement

Vulcan Materials Company

1200 Urban Center Drive

Birmingham, Alabama 35242

Telephone: (205) 298-3766

	11.2	 	DELEGATES: A Delegate appointed by the Administrator may be a person, group of persons
(including the Administrative Committee), insurance company, bank or other institution or
organization selected to assume one or more responsibilities. An appointment must be in
writing, must specify the responsibilities of the Delegate, and must be accepted in writing by
the Delegate. Delegates must perform the duties assigned to them on a basis which, in the
judgment of the Administrator, is evenhanded and without discrimination pursuant to the rules,
if any, established by the Administrator.
	 
	 	 	While not listed in the Plan, except for the Administrative Committee, the current list of
Delegates and their duties, if not otherwise available, can be obtained by contacting the
Administrator of the Plan at the address shown in Section 11.1 (Administrator).
	 
	11.3	 	RESPONSIBILITIES OF THE ADMINISTRATOR: The duties and responsibilities of the Administrator
include but shall not be limited to the following:

	 	A.	 	To establish and enforce such rules, regulations and procedures as it shall
deem necessary or proper;
	 
	 	B.	 	To interpret the Plan, and to decide all other questions concerning the Plan;
	 
	 	C.	 	To determine the eligibility of a person to participate in the Plan;
	 
	 	D.	 	To compute the amount of benefits payable with respect to a Participant or
Beneficiary in accordance with the provisions of the Plan;
	 
	 	E.	 	To determine the person or persons to whom such benefits shall be paid;
	 
	 	F.	 	To authorize the payment of benefits and reasonable Plan administrative
expenses;
	 
	 	G.	 	To file with each appropriate government agency any and all reports and
notifications required of the Plan;
	 
	 	H.	 	To provide Participants with any and all reports and notifications to which
they are by law entitled;

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	 	I.	 	To file for letters of determination from the Internal Revenue Service as to
the tax qualified status of the Plan and any related trust as appropriate;
	 
	 	J.	 	To maintain appropriate accounts and records for the Plan, and to keep in
convenient form the data necessary for administering, funding and preparing the annual
audit and other reports for the Plan;
	 
	 	K.	 	To engage an independent qualified public accountant to perform an annual audit
of the Savings Fund;
	 
	 	L.	 	To establish procedures providing for periodic review of the performance, on a
formal basis or otherwise, of any person or persons who have been engaged by the
Administrator to render advice with regard to any responsibility the Administrator may
have under the Plan;
	 
	 	M.	 	To employ such consultants, including without limitation one or more attorneys
(who may also serve as counsel to one or more of the Employing Companies), as it deems
appropriate; and
	 
	 	N.	 	To develop procedures for determining whether a “domestic relations order,” as
that term is defined at Section 414(p)(1)(B) of the Internal Revenue Code, constitutes
a “qualified domestic relations order,” as that term is defined at Section 414(p)(1)(A)
of the Internal Revenue Code.

	11.4	 	ADMINISTRATIVE COMMITTEE: There shall be an Administrative Committee consisting of not less
than three members who shall be appointed from time to time by the Chief Executive Officer of
the Company to serve at his pleasure. Members of the Administrative Committee may participate
in the benefits under the Plan provided they are otherwise eligible to do so. No member of
the Administrative Committee will receive compensation from the Savings Fund for his services
as such. No bond or other security shall be required of any member of the Administrative
Committee in such capacity in any jurisdiction, except as otherwise provided by law.
	 
	 	 	The Administrative Committee shall be the Delegate of the Administrator responsible for the
duties and responsibilities of the Administrator set forth in Section 11.3A through J and
Section 11.3N and such other duties and responsibilities as set forth elsewhere herein or as
may be assigned to it from time to time by the Administrator. The Administrator may by
written notice to the Administrative Committee take away from the Administrative Committee
any or all of the duties and responsibilities delegated under this paragraph or elsewhere in
the Plan.
	 
	 	 	The Administrative Committee shall establish such rules for the administration of the Plan
and transaction of its business as it deems appropriate. An Administrative Committee member
may resign by notifying the Chief Executive Officer of the Company.
	 
	 	 	The Administrative Committee may allocate among its members those responsibilities described
in Sections 11.3D, F, G, H, I and J.

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	11.5	 	CLAIMS AND APPEALS PROCEDURE: The following shall be the basic claims and appeals procedure
for this Plan, however, the Administrative Committee may adopt such additional procedures not
inconsistent with the following as it deems appropriate.

	 	A.	 	Application for Benefits: The Administrative Committee will establish
procedures for a Participant or Beneficiary to request a benefit from the Plan. If a
Participant or Beneficiary believes he or she is not receiving the full benefit due to
them, such Participant or Beneficiary may file a written claim with the Administrative
Committee at any time before the last day of the Plan year following the Plan Year in
which payment of such benefit started or should have started. The written claim must
set forth the name of the Participant or Beneficiary making such claim and his address,
a statement of the facts, and references to the provisions of the Plan on which such
claim is based, plus such other information as the Administrative Committee may
require. Any such written claim shall be mailed directly to the Administrative
Committee addressed as follows:

Chairman, Administrative Committee of

  the Vulcan Materials Company

  401(k) and Profit Sharing Retirement Plan

Vulcan Materials Company

1200 Urban Center Drive

Birmingham, Alabama 35242

	B.	 	Claims Procedure: The Administrative Committee shall notify any person or
entity that makes a claim against the Plan (the “Claimant”) in writing, within 90 days
(45 days for a claim for benefits on account of disability) of Claimant’s written
application for benefits, or his or her eligibility or noneligibility for benefits
under the Plan. If the Administrative Committee determines that the Claimant is not
eligible for benefits or full benefits, the notice shall set forth (1) the specific
reasons for such denial, (2) a specific reference to the provisions of the Plan on
which the denial is based, (3) any internal protocols the Administrative Committee
relied upon in making its determination, (4) the right to review any documents created
or received by the Administrative Committee during the review process and documents
relevant to the claim whether or not relied upon by the Administrative Committee, (5) a
description of any additional information or material necessary for the Claimant to
perfect his or her claim and a description of why it is needed, and (6) an explanation
of the Plan’s claims review procedure and other appropriate information as to the steps
to be taken if the Claimant wishes to have the claim reviewed. If the Administrative
Committee determines that there are special circumstances requiring additional time to
make a decision, the Administrative Committee shall notify the Claimant of the special
circumstances requiring additional time to make a decision, the Administrative
Committee shall notify the Claimant of the special circumstances and the date by which
a decision is expected to be made, and may extend the time for up to an additional 90
days.

48

 

	C.	 	Review Procedure: If the Claimant is determined by the Administrative
Committee not to be eligible for benefits, or if the Claimant believes that he or she
is entitled to greater or different benefits, the Claimant shall have the opportunity
to have such claim reviewed by the Appeals Committee by filing a petition for review
with the Appeals Committee within 60 (180 days for a claim for benefits on account of
disability), days after receipt of the notice issued by the Administrative Committee.
Said petition shall state the specific reasons that the Claimant believes entitle him
or her to benefits or to greater or different benefits. Within 60 days (45 days for a
claim for benefits on account of disability) after receipt by the Appeals Committee of
the petition, the Appeals Committee shall afford the Claimant (and counsel, if any) an
opportunity to present his or her position to the Appeals Committee verbally or in
writing, and the Claimant (or counsel) shall have the right to review the pertinent
documents. The Appeals Committee shall notify the Claimant of its decision in writing
within such period, stating specifically the basis of its decision, written in a manner
to be understood by the Claimant and the specific provisions of the Plan on which the
decision is based. If, because of the need for a hearing, the 60-day period is not
sufficient, the decision may be deferred for up to another 60 days (45 days for a claim
for benefits on account of disability) at the election of the Appeals Committee, but
notice of this deferral shall be given to the Claimant. Any written correspondence to
the Appeals Committee shall be mailed directly to the Appeals Committee addressed as
follows:

Chairman, Appeals Committee of

   the Vulcan Materials Company

  401(k) and Profit Sharing Retirement Plan

Vulcan Materials Company

1200 Urban Center Drive

Birmingham, Alabama 35242

	11.6	 	INDEMNIFICATION: To the extent permitted by law, the Company will indemnify each member of
the Board, each officer of the Company, each Administrative Committee member, each Appeals
Committee member, and other Employees against all costs, expenses and liabilities, including
attorneys’ fees, incurred in connection with any action, suit or proceeding instituted against
them alleging any act of omission or commission performed by them while acting in good faith
in discharging their duties with respect to the Plan. This indemnification is applicable only
to the costs and expenses that are not covered under insurance as may be now or hereafter
provided by the Company.

	11.7	 	EXPENSES: Any expense incurred by the Administrator, the Administrative Committee or the
Appeals Committee in the performance of their duties shall be paid by the Company.

	11.8	 	ASSISTANCE: The Administrator and its Delegates may employ counsel and agents, delegate
authority in accordance with the procedures if any set forth by the Administrator, authorize
execution and delivery of written instructions, and obtain

49

 

	 	 	clerical, accounting, actuarial and other advisory assistance to carry out the provisions of
the Plan.

	11.9	 	MERGER OR CONSOLIDATION: No merger or consolidation of, or transfer of assets or liabilities
to or from, any other plan of deferred compensation maintained or to be established for the
benefit of all or some of the Participants of the Plan, shall become effective unless each
Participant of the Plan would (if the Plan then terminated) receive a benefit immediately
after such merger, consolidation, or transfer, equal to or greater than the benefit he would
have been entitled to receive immediately before the merger, consolidation, or transfer (if
the Plan had then terminated).

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SECTION 12 PLAN AMENDMENT AND TERMINATION

	12.1	 	AMENDMENT: The Company through action of the Board reserves the right at any time and from
time to time to amend this Plan in any respect (and retroactively, if deemed desirable by the
Company) by written instrument executed by the Company; provided, however, that the Chief
Executive Officer of the Company may amend the Plan to the extent he, with the advice of
counsel, deems necessary or desirable, provided that such amendment will have no significant
economic impact on the Company, the Plan, or the Participants. Any amendment to the Plan made
in accordance with the provisions of this Section 12.1 shall, without further action by any
other Employing Company, be binding upon all Employing Companies. Notwithstanding the
foregoing, no amendment shall be made which would divert any of the assets of the Savings Fund
to any purpose other than the exclusive benefit of Participants and Beneficiaries; provided
further, however, that notwithstanding anything herein to the contrary, this Plan may be
amended retroactively and to affect the Total Accounts and benefits of Participants and
Beneficiaries if necessary (1) to cause this Plan to qualify, or continue to qualify, under
Section 401 of the Internal Revenue Code, or (2) to cause this Plan to comply, or to continue
to comply, with any applicable law, including the Employee Retirement Income Security Act of
1974. Notwithstanding the foregoing, no amendment shall eliminate or reduce any early
retirement benefit or retirement subsidy (as defined in regulations promulgated by the
Secretary of Treasury) or eliminate an optional form of benefit with respect to benefits
attributable to service before the date of the adoption of such amendment.

	12.2	 	TERMINATION OR SUSPENSION: The Company and each other Employing Company now or later
becoming a party hereto, expect this Plan to be continued indefinitely, but, of necessity,
each of them reserves the right to terminate the Plan as to itself or to suspend its
contributions at any time by action of its board of directors.

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SECTION 13 MISCELLANEOUS PROVISIONS

	13.1	 	PLAN NOT A CONTRACT OF EMPLOYMENT: The Plan will not be deemed to constitute a contract of
employment between an Employee and an Employing Company or a Related Employer. Nothing in the
Plan will give an Employee the right to be retained in the employ of an Employing Company or a
Related Employer. All Employees will remain subject to discharge, discipline or layoff as if
the Plan had not been put into effect.

	13.2	 	PAYMENT TO MINORS AND INCOMPETENTS: The Administrative Committee may authorize payment of
any benefit otherwise payable to a Participant or a Beneficiary to another person and the
release of such other person or institution will be a valid and complete discharge for the
payment of the benefit, provided that

	 	A.	 	the Administrative Committee receives satisfactory evidence that a Participant,
or Beneficiary who is entitled to receive a benefit under the Plan, is at the time when
such benefit becomes available, (1) a minor, or (2) physically unable or mentally
incompetent to receive the benefit and to give a valid release thereof, and such other
person is then maintaining or has custody of such Participant or Beneficiary; or
	 
	 	B.	 	the Administrative Committee receives satisfactory evidence that such other
person has been appointed as the guardian of the Participant or Beneficiary by a court
of competent jurisdiction.

	13.3	 	MISSTATEMENTS IN APPLICATION: If a Participant, or Beneficiary, in an application or
response to the Administrator or the Administrative Committee makes a statement which is
erroneous, or omits any material facts, the amount of the benefits due such Participant, or
Beneficiary will be adjusted on the basis of the true facts.

	13.4	 	NONALIENATION OF BENEFITS: Subject to the provisions of Section 10 (Loans), no benefit which
may be payable under the Plan will be subject in any way to anticipation, alienation, sale,
transfer, assignment, pledge, garnishment, encumbrance or charge, except, to the extent
required by applicable law, with respect to any claim made upon the Plan pursuant to (i) a
qualified domestic relations order, or (ii) any offset of a Participant’s benefits pursuant to
a judgment, order, decree or settlement agreement which satisfies the requirements of Section
401(a)(13)(C) of the Internal Revenue Code. Notwithstanding any provision hereof to the
contrary, if a Participant has not attained his “earliest retirement age,” as such term is
defined in Section 414(p)(4)(B) of the Code, payment of a benefit to an alternate payee under
a qualified domestic relations order shall be made prior to the date such Participant attains
his earliest retirement age if so provided in the qualified domestic relations order. Any
payments under a qualified domestic relations order may be made in a lump sum cash payment if
so provided in the order, regardless of whether such method of payment would otherwise be
available pursuant to the provisions of the Plan.

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	13.5	 	EFFECTIVE TEXT: If any conflicts exist between the portions of the text written in italics
and the balance of the text, the balance of the text will govern. For example, detailed
procedures, and other aspects of examples given are subject to change from time to time
without revision of the text.

	13.6	 	GOVERNING LAW: The Plan and all provisions thereof will be governed by the laws of the State
of Alabama to the extent that such laws are not preempted by the laws of the United States of
America.

	13.7	 	REFERENCE TO GENDER AND NUMBER: Wherever applicable the masculine pronoun shall include the
feminine pronoun, and vice versa, and the singular shall include the plural.

	13.8	 	QUALIFIED MILITARY SERVICE: Notwithstanding any provision of this Plan to the contrary,
contributions, benefits, and service credits with respect to qualified military service will
be provided in accordance with Section 414(u) of the Code. This provision shall be effective
on and after December 12, 1994.

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SECTION 14 EMPLOYING COMPANIES

	14.1	 	NORMAL CONDITIONS: An Employing Company will be so designated by the Board subject to the
execution by such company of an adoption agreement satisfactory in form and substance to the
Administrator. Such designation will describe the Employing Company, the date as of which the
Employing Company became such, and any pertinent history and special conditions associated
with the designation.

	14.2	 	EMPLOYING COMPANIES: The Employing Companies are as shown on the attached Schedule of
Employing Companies, as from time to time amended.

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SECTION 15 TOP-HEAVY PROVISIONS

	15.1	 	SPECIAL TOP-HEAVY DEFINITIONS: The following words and phrases shall have the meanings
indicated below unless the context in which any such word or phrase is used clearly indicates
that a different meaning is intended.
	 
	 	 	Top-Heavy Plan: A plan is a Top-Heavy Plan if, as of the Determination Date, the aggregate
of the accounts of Key Employees under the plan exceeds sixty percent (60%) of the aggregate
of the accounts of all participants under such plan or, in the case of a defined benefit
plan, the present value of the cumulative accrued benefits under the plan for Key Employees
exceeds sixty percent (60%) of the present value of the cumulative accrued benefits under
the plan for all participants, all as determined in accordance with the provisions of
Section 416(g) of the Internal Revenue Code. For purposes of determining the present values
of accrued benefits and the amounts of account balances of Employees as of the Determination
Date, the present values of accrued benefits and the amounts of account balances of an
Employee as of the Determination Date shall be increased by the distributions made with
respect to the Employee under the Plan and any plan aggregated with the plan under section
416(g)(2) of the Code during the 1-year period ending on the Determination Date. The
preceding sentence shall also apply to distributions under a terminated plan which, had it
not been terminated, would have been aggregated with the plan under section 416(g)(2)(A)(i)
of the Code. In the case of a distribution made for a reason other than separation from
service, death, or disability, this provision shall be applied by substituting “5-year
period” for “1-year period.” The accrued benefits and accounts of any individual who has
not performed services for the employer during the 1-year period ending on the Determination
Date shall not be taken into account. The determination of whether a plan is a Top-Heavy
Plan shall be made after aggregating all other plans of the Employing Companies and Related
Employers which are part of a Required Aggregation Group and after aggregating any other
such plan of the Employing Companies and Related Employers which is a part of a Permissive
Aggregation Group if such permissive aggregation thereby eliminates the top-heavy status of
any plan within such Permissive Aggregation Group. For purposes of the foregoing, the
valuation date for defined benefit plans shall be the same valuation date used for computing
plan costs, and the valuation date for defined contribution plans shall be the most recent
valuation date within a twelve-month period ending on the Determination Date. A valuation
date is the annual date on which plan assets must be valued for the purpose of determining
the value of account balances under a defined contribution plan or the date on which
liabilities and assets of a defined benefit plan are valued.

	 	A.	 	Determination Date: The Determination Date for determining whether a plan is a
Top-Heavy Plan for a particular plan year is the last day of the preceding plan year
(or, in the case of the first plan year of a plan, the last day of the first plan
year).
	 
	 	B.	 	Key Employee: Key Employee means any Employee or former Employee (including
any deceased Employee) who at any time during the Plan Year that includes the
determination date was an officer of the Employer having annual

55

 

	 	 	 	compensation greater than $130,000 (as adjusted under section 416(i)(1) of the Code
for Plan Years beginning after December 31, 2002), a 5-percent owner of the
Employer, or a 1- percent owner of the Employer having annual compensation of more
than $150,000. For this purpose, annual compensation means compensation within the
meaning of section 415(c)(3) of the Code. The determination of who is a Key
Employee will be made in accordance with section 416(i)(1) of the Code and the
applicable regulations and other guidance of general applicability issued
thereunder.
	 
	 	C.	 	Non-Key Employee: A Non-Key Employee is any Employee or former Employee
(including a Beneficiary thereof) who is not a Key Employee.
	 
	 	D.	 	Required Aggregation Group: A Required Aggregation Group is a group of plans
consisting of all plans of the Employing Companies and Related Employers in which a Key
Employee participates in the plan year containing the Determination Date or any of the
four preceding plan years and each other plan of the Employing Companies and Related
Employers which enables any plan of the Employing Companies and Related Employers in
which a Key Employee participates during the period tested to meet the requirements of
Section 401(a)(4) or 410(b) of the Internal Revenue Code.
	 
	 	E.	 	Permissive Aggregation Group: A Permissive Aggregation Group is a group of
plans of the Employing Companies and Related Employers that are not required to be
aggregated under Section 15.1E above but which, as a group, satisfy the requirements of
Sections 401(a)(4) and 410 of the Internal Revenue Code.

	15.2	 	MINIMUM CONTRIBUTION REQUIREMENT: In the event the Plan is a Top-Heavy Plan for any Plan
Year, a minimum contribution shall be made on behalf of each Participant who is a Non-Key
Employee on the last day of the Plan Year in an amount which, together with the amount of
Matching Contributions and Special Employing Company Contributions allocable to such
Participant’s Accounts for the Plan Year, will equal seven and one-half percent (7-1/2%) of such
Participant’s Annual Compensation for the Plan Year.

	15.3	 	CHANGE IN THE STATUS OF THE PLAN: In the event the Plan is deemed to be a Top-Heavy Plan in
any Plan Year and then, in a subsequent Plan Year, the Plan fails to qualify as a Top-Heavy
Plan, any change in the Plan’s benefit structure shall be made in accordance with Section
411(a)(10) of the Internal Revenue Code and any accompanying regulations.

56

 

SECTION 16 LEASED EMPLOYEES

	16.1	 	LEASED EMPLOYEES: An individual who is not an Employee, but who provides services to an
Employing Company or a Related Employer, shall be treated as an Employee (but not as a
Salaried Employee) with respect to such services if

	 	A.	 	Such services are provided pursuant to an agreement between the Employing
Company or a Related Employer and any leasing organization,
	 
	 	B.	 	Such individual has performed such services for an Employing Company or a
Related Employer on a substantially full-time basis for a period of at least one year,
and
	 
	 	C.	 	Such services are performed under the primary direction or control of the
Employing Company or Related Employer.

	 	 	Notwithstanding the foregoing, such an individual shall not be treated as an Employee until
the close of the one-year period referred to in subparagraph B above, except that Employment
Service for such individual shall be determined by taking into account the entire period for
which the individual performs services for an Employing Company or Related Employer,
including such one-year period.

57

 

SECTION 17 COMPLIANCE WITH FINAL 401(k) AND 401(m) REGULATIONS

	17.1	 	GENERAL RULES

	 	A.	 	Deferral elections. A cash or deferred arrangement (“CODA”) is an arrangement
under which eligible Employees may make elective deferral elections. Such elections
cannot relate to compensation that is currently available prior to the adoption or
effective date of the CODA. In addition, except for occasional, bona fide
administrative considerations, contributions made pursuant to such an election cannot
precede the earlier of (1) the performance of services relating to the contribution and
(2) when the compensation that is subject to the election would be currently available
to the Employee in the absence of an election to defer.
	 
	 	B.	 	Vesting provisions. Elective Contributions are always fully vested and
nonforfeitable. The Plan shall disregard Elective Contributions in applying the
vesting provisions of the Plan to other contributions or benefits under Code Section
411(a)(2). However, the Plan shall otherwise take a participant’s Elective
Contributions into account in determining the Participant’s vested benefits under the
Plan. Thus, for example, the Plan shall take Elective Contributions into account in
determining whether a Participant has a nonforfeitable right to contributions under the
Plan for purposes of forfeitures, and for applying provisions permitting the repayment
of distributions to have forfeited amounts restored, and the provisions of Code
Sections 410(a)(5)(D)(iii) and 411(a)(6)(D)(iii) permitting a plan to disregard certain
service completed prior to breaks-in-service (sometimes referred to as “the rule of
parity”).

17.2 ACTUAL DEFERRAL PERCENTAGE (ADP) TEST

	 	A.	 	Targeted contribution limit. Qualified Nonelective Contributions (as defined
in Regulation Section 1.401(k)-6) cannot be taken into account in determining the
Actual Deferral Ratio (ADR) for a Plan Year for a Non-Highly Compensated Employee
(NHCE) to the extent such contributions exceed the product of that NHCE’s Code Section
414(s) compensation and the greater of five percent (5%) or two (2) times the Plan’s
“representative contribution rate.” Any Qualified Nonelective Contribution taken into
account under an Actual Contribution Percentage (ACP) test under Regulation Section
1.401(m)-2(a)(6) (including the determination of the representative contribution rate
for purposes of Regulation Section 1.401(m)-2(a)(6)(v)(B)), is not permitted to be
taken into account for purposes of this Section (including the determination of the
“representative contribution rate” under this Section). For purposes of this Section:

	 	(1)	 	The Plan’s “representative contribution rate” is the lowest
“applicable contribution rate” of any eligible NHCE among a group of eligible
NHCEs that consists of half of all eligible NHCEs for the Plan Year (or, if
greater, the lowest “applicable contribution rate” of any eligible NHCE who is
in the group of all eligible NHCEs for the Plan Year and who is employed by the
Employer on the last day of the Plan Year), and

58

 

	 	(2)	 	The “applicable contribution rate” for an eligible NHCE is the
sum of the Qualified Matching Contributions (as defined in Regulation Section
1.401(k)-6) taken into account in determining the ADR for the eligible NHCE for
the Plan Year and the Qualified Nonelective Contributions made for the eligible
NHCE for the Plan Year, divided by the eligible NHCE’s Code Section 414(s)
compensation for the same period.

	 	 	 	Notwithstanding the above, Qualified Nonelective Contributions that are made in
connection with an Employer’s obligation to pay prevailing wages under the
Davis-Bacon Act (46 Stat. 1494), Public Law 71-798, Service Contract Act of 1965 (79
Stat. 1965), Public Law 89-286, or similar legislation can be taken into account for
a Plan Year for an NHCE to the extent such contributions do not exceed 10 percent
(10%) of that NHCE’s Code Section 414(s) compensation.
	 
	 	 	 	Qualified Matching Contributions may only be used to calculate an ADR to the extent
that such Qualified Matching Contributions are matching contributions that are not
precluded from being taken into account under the ACP test for the Plan Year under
the rules of Regulation Section 1.401(m)-2(a)(5)(ii) and as set forth in Section
17.4A.

	 	B.	 	Limitation on QNECs and QMACs. Qualified Nonelective Contributions and
Qualified Matching Contributions cannot be taken into account to determine an ADR to
the extent such contributions are taken into account for purposes of satisfying any
other ADP test, any ACP test, or the requirements of Regulation Section 1.401(k)-3, 1
        .401(m)-3, or 1.401(k)-4. Thus, for example, matching contributions that are made
pursuant to Regulation Section 1.401(k)-3(c) cannot be taken into account under the ADP
test. Similarly, if a plan switches from the current year testing method to the prior
year testing method pursuant to Regulation Section 1.401(k)-2(c), Qualified Nonelective
Contributions that are taken into account under the current year testing method for a
year may not be taken into account under the prior year testing method for the next
year.
	 
	 	C.	 	ADR of HCE if multiple plans. The Actual Deferral Ratio (ADR) of any
Participant who is a Highly Compensated Employee (HCE) for the Plan Year and who is
eligible to have Elective Contributions (as defined in Regulation Section 1.401(k)-6)
(and Qualified Nonelective Contributions and/or Qualified Matching Contributions, if
treated as Elective Contributions for purposes of the ADP test) allocated to such
Participant’s accounts under two (2) or more cash or deferred arrangements described in
Code Section 401(k), that are maintained by the same Employer, shall be determined as
if such Elective Contributions (and, if applicable, such Qualified Nonelective
Contributions and/or Qualified Matching Contributions) were made under a single
arrangement. If an HCE participates in two or more cash or deferred arrangements of
the Employer that have different Plan Years, then all Elective Contributions made
during the Plan Year being tested under all such cash or deferred arrangements shall be
aggregated, without regard to the plan years of the other plans. However, for Plan
Years beginning before the effective date of this Amendment, if the plans have
different Plan

59

 

	 	 	 	Years, then all such cash or deferred arrangements ending with or within the same
calendar year shall be treated as a single cash or deferred arrangement.
Notwithstanding the foregoing, certain plans shall be treated as separate if
mandatorily disaggregated under the Regulations of Code Section 401(k).
	 
	 	D.	 	Plans using different testing methods for the ADP and ACP test. Except as
otherwise provided in this Section, the Plan may use the current year testing method or
prior year testing method for the ADP test for a Plan Year without regard to whether
the current year testing method or prior year testing method is used for the ACP test
for that Plan Year. However, if different testing methods are used, then the Plan
cannot use:

	 	(1)	 	The recharacterization method of Regulation Section
1.401(k)-2(b)(3) to correct excess contributions for a Plan Year;
	 
	 	(2)	 	The rules of Regulation Section 1.401(m)-2(a)(6)(ii) to take
Elective Contributions into account under the ACP test (rather than the ADP
test); or
	 
	 	(3)	 	The rules of Regulation Section 1.401(k)-2(a)(6)(v) to take
Qualified Matching Contributions into account under the ADP test (rather than
the ACP test).

	17.3	 	ADJUSTMENT TO ADP TEST

	 	A.	 	Distribution of Income attributable to Excess Contributions. Distributions of
Excess Contributions must be adjusted for income (gain or loss), including an
adjustment for income for the period between the end of the Plan Year and the date of
the distribution (the “gap period”). The Administrator has the discretion to determine
and allocate income using any of the methods set forth below:

	 	(1)	 	Reasonable method of allocating income. The
Administrator may use any reasonable method for computing the income allocable
to Excess Contributions, provided that the method does not violate Code Section
401(a)(4), is used consistently for all Participants and for all corrective
distributions under the Plan for the Plan Year, and is used by the Plan for
allocating income to Participant’s accounts. A Plan will not fail to use a
reasonable method for computing the income allocable to Excess Contributions
merely because the income allocable to Excess Contributions is determined on a
date that is no more than seven (7) days before the distribution.
	 
	 	(2)	 	Alternative method of allocating income. The
Administrator may allocate income to Excess Contributions for the Plan Year by
multiplying the income for the Plan Year allocable to the Elective
Contributions and other amounts taken into account under the ADP test
(including contributions made for the Plan Year), by a fraction, the numerator
of which is the

60

 

	 	 	Excess Contributions for the Employee for the Plan Year, and the denominator
of which is the sum of the:

	 	(a)	 	Account balance attributable to Elective
Contributions and other amounts taken into account under the ADP test
as of the beginning of the Plan Year, and
	 
	 	(b)	 	Any additional amount of such contributions
made for the Plan Year.

	 	(3)	 	Safe harbor method of allocating gap period income.
The Administrator may use the safe harbor method in this paragraph to determine
income on Excess Contributions for the gap period. Under this safe harbor
method, income on Excess Contributions for the gap period is equal to ten
percent (10%) of the income allocable to Excess Contributions for the Plan Year
that would be determined under paragraph (2) above, multiplied by the number of
calendar months that have elapsed since the end of the Plan Year. For purposes
of calculating the number of calendar months that have elapsed under the safe
harbor method, a corrective distribution that is made on or before the
fifteenth (15th) day of a month is treated as made on the last day of the
preceding month and a distribution made after the fifteenth day of a month is
treated as made on the last day of the month.
	 
	 	(4)	 	Alternative method for allocating Plan Year and gap period
income. The Administrator may determine the income for the aggregate of
the Plan Year and the gap period, by applying the alternative method provided
by paragraph (2) above to this aggregate period. This is accomplished by (1)
substituting the income for the Plan Year and the gap period, for the income
for the Plan Year, and (2) substituting the amounts taken into account under
the ADP test for the Plan Year and the gap period, for the amounts taken into
account under the ADP test for the Plan Year in determining the fraction that
is multiplied by that income.

	 	B.	 	Corrective contributions. If a failed ADP test is to be corrected by making an
Employer contribution, then the provisions of the Plan for the corrective contributions
shall be applied by limiting the contribution made on behalf of any NHCE pursuant to
such provisions to an amount that does not exceed the targeted contribution limits of
Section 17.2A, or in the case of a corrective contribution that is a Qualified Matching
Contribution, the targeted contribution limit of Section 17.4A.

	17.4	 	ACTUAL CONTRIBUTION PERCENTAGE (ACP) TEST

	 	A.	 	Targeted matching contribution limit. A matching contribution with respect to
an Elective Contribution for a Plan Year is not taken into account under the Actual
Contribution Percentage (ACP) test for an NHCE to the extent it exceeds the greatest
of:

61

 

	 	(1)	 	five percent (5%) of the NHCE’s Code Section 414(s)
compensation for the Plan Year;
	 
	 	(2)	 	the NHCE’s Elective Contributions for the Plan Year; and
	 
	 	(3)	 	the product of two (2) times the Plan’s “representative
matching rate” and the NHCE’s Elective Contributions for the Plan Year.

	 	 	 	For purposes of this Section, the Plan’s “representative matching rate” is the
lowest “matching rate” for any eligible NHCE among a group of NHCEs that consists of
half of all eligible NHCEs in the Plan for the Plan Year who make Elective
Contributions for the Plan Year (or, if greater, the lowest “matching rate” for all
eligible NHCEs in the Plan who are employed by the Employer on the last day of the
Plan Year and who make Elective Contributions for the Plan Year).
	 
	 	 	 	For purposes of this Section, the “matching rate” for an Employee generally is the
matching contributions made for such Employee divided by the Employee’s Elective
Contributions for the Plan Year. If the matching rate is not the same for all
levels of Elective Contributions for an Employee, then the Employee’s “matching
rate” is determined assuming that an Employee’s Elective Contributions are equal to
six percent (6%) of Code Section 414(s) compensation.
	 
	 	 	 	If the Plan provides a match with respect to the sum of the Employee’s after-tax
Employee contributions and Elective Contributions, then for purposes of this
Section, that sum is substituted for the amount of the Employee’s Elective
Contributions in subsections (2) & (3) above and in determining the “matching rate,”
and Employees who make either after-tax Employee contributions or Elective
Contributions are taken into account in determining the Plan’s “representative
matching rate.” Similarly, if the Plan provides a match with respect to the
Employee’s after-tax Employee contributions, but not Elective Contributions, then
for purposes of this subsection, the Employee’s after-tax Employee contributions are
substituted for the amount of the Employee’s Elective Contributions in subsections
(2) & (3) above and in determining the “matching rate,” and Employees who make
after-tax Employee contributions are taken into account in determining the Plan’s
“representative matching rate.”
	 
	 	B.	 	Targeted QNEC limit. Qualified Nonelective Contributions (as defined in
Regulation Section 1.401(k)-6) cannot be taken into account under the Actual
Contribution Percentage (ACP) test for a Plan Year for an NHCE to the extent such
contributions exceed the product of that NHCE’s Code Section 414(s) compensation and
the greater of five percent (5%) or two (2) times the Plan’s “representative
contribution rate.” Any Qualified Nonelective Contribution taken into account under an
Actual Deferral Percentage (ADP) test under Regulation Section 1.401(k)-2(a)(6)
(including the determination of the “representative contribution rate” for purposes of
Regulation Section 1.401(k)-2(a)(6)(iv)(B)) is not permitted to be taken into account
for purposes of this Section (including the

62

 

	 	 	 	determination of the “representative contribution rate” for purposes of subsection
(1) below). For purposes of this Section:

	 	(1)	 	The Plan’s “representative contribution rate” is the lowest
“applicable contribution rate” of any eligible NHCE among a group of eligible
NHCEs that consists of half of all eligible NHCEs for the Plan Year (or, if
greater, the lowest “applicable contribution rate” of any eligible NHCE who is
in the group of all eligible NHCEs for the Plan Year and who is employed by the
Employer on the last day of the Plan Year), and
	 
	 	(2)	 	The “applicable contribution rate” for an eligible NHCE is the
sum of the matching contributions (as defined in Regulation Section
1.401(m)-1(a)(2)) taken into account in determining the ACR for the eligible
NHCE for the Plan Year and the Qualified Nonelective Contributions made for
that NHCE for the Plan Year, divided by that NHCE’s Code Section 414(s)
compensation for the Plan Year.

	 	 	 	Notwithstanding the above, Qualified Nonelective Contributions that are made in
connection with an Employer’s obligation to pay prevailing wages under the
Davis-Bacon Act (46 Stat. 1494), Public Law 71-798, Service Contract Act of 1965 (79
Stat. 1965), Public Law 89-286, or similar legislation can be taken into account for
a Plan Year for an NHCE to the extent such contributions do not exceed 10 percent
(10%) of that NHCE’s Code Section 414(s) compensation.
	 
	 	C.	 	ACR of HCE if multiple plans. The Actual Contribution Ratio (ACR) for any
Participant who is a Highly Compensated Employee (HCE) and who is eligible to have
matching contributions or after-tax Employee contributions allocated to his or her
account under two (2) or more plans described in Code Section 401(a), or arrangements
described in Code Section 401(k) that are maintained by the same Employer, shall be
determined as if the total of such contributions was made under each plan and
arrangement. If an HCE participates in two (2) or more such plans or arrangements that
have different plan years, then all matching contributions and after-tax Employee
contributions made during the Plan Year being tested under all such plans and
arrangements shall be aggregated, without regard to the plan years of the other plans.
For plan years beginning before January 1, 2006, all such plans and arrangements ending
with or within the same calendar year shall be treated as a single plan or arrangement.
Notwithstanding the foregoing, certain plans shall be treated as separate if
mandatorily disaggregated under the Regulations of Code Section 401(m).
	 
	 	D.	 	Plans using different testing methods for the ACP and ADP test. Except as
otherwise provided in this Section, the Plan may use the current year testing method or
prior year testing method for the ACP test for a Plan Year without regard to whether
the current year testing method or prior year testing method is used for the ADP test
for that Plan Year. However, if different testing methods are used, then the Plan
cannot use:

63

 

	 	(1)	 	The recharacterization method of Regulation Section
1.401(k)-2(b)(3) to correct excess contributions for a Plan Year;
	 
	 	(2)	 	The rules of Regulation Section 1.401(m)-2(a)(6)(ii) to take
Elective Contributions into account under the ACP test (rather than the ADP
test); or
	 
	 	(3)	 	The rules of Regulation Section 1.401(k)-2(a)(6) to take
Qualified Matching Contributions into account under the ADP test (rather than
the ACP test).

	17.5	 	ADJUSTMENT TO ACP TEST

	 	A.	 	Distribution of Income attributable to Excess Aggregate Contributions.
Distributions of Excess Aggregate Contributions must be adjusted for income (gain or
loss), including an adjustment for income for the period between the end of the Plan
Year and the date of the distribution (the “gap period”). For the purpose of this
Section, “income” shall be determined and allocated in accordance with the provisions
of Section 17.3A, except that such Section shall be applied by substituting “Excess
Contributions” with “Excess Aggregate Contributions” and by substituting amounts taken
into account under the ACP test for amounts taken into account under the ADP test.
	 
	 	B.	 	Corrective contributions. If a failed ACP test is to be corrected by making an
Employer contribution, then the provisions of the Plan for the corrective contributions
shall be applied by limiting the contribution made on behalf of any NHCE pursuant to
such provisions to an amount that does not exceed the targeted contribution limits of
Sections 17.4A and 17.4B of this Section 17.

64

 

IN WITNESS WHEREOF, the Company has caused this amendment and restatement to be executed and
attested, all by its officers thereunto duly authorized, on this the 13th day of July, 2007.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	VULCAN MATERIALS COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By	 	/s/ J. WAYNE HOUSTON	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Its	 	SENIOR VICE PRESIDENT	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By
	 	/s/ JERRY F. PERKINS, JR.	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Its
	 	SECRETARY	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

SCHEDULE OF EMPLOYING COMPANIES

for the

VULCAN MATERIALS COMPANY

401(k) and PROFIT SHARING RETIREMENT PLAN

The following companies are Employing Companies from the Employing Company Date shown:

	 	 	 	 	 
	 	 	 	 	Employer
	 	 	 	 	Identification
	 	 	 	 	Number
	 	 	Employing	 	Assigned By
	Employing	 	Company	 	the Internal
	Company	 	Date	 	Revenue Service
	Vulcan Materials Company

1200 Urban Center Drive

Birmingham, Alabama 35242

	 	July 15, 2007
	 	63-0366371
	 
	 	 	 	 
	Vulcan Construction Materials, LP

1200 Urban Center Drive

Birmingham, Alabama 35242

	 	July 15, 2007
	 	63-1211833

65

 

	 	 	 	 	 
	 	 	 	 	Employer
	 	 	 	 	Identification
	 	 	 	 	Number
	 	 	Employing	 	Assigned By
	Employing	 	Company	 	the Internal
	Company	 	Date	 	Revenue Service
	Vulcan Aggregates Company, LLC

1200 Urban Center Drive

Birmingham, Alabama 35242

	 	July 15, 2007
	 	63-1211816
	 
	 	 	 	 
	Vulcan Gulf Coast

Materials, Inc.

1200 Urban Center Drive

Birmingham, Alabama 35242

	 	July 15, 2007
	 	63-0964180
	 
	 	 	 	 
	RECO Transportation, Inc.

Highway 62

Gilbertsville, Kentucky

	 	July 15, 2007
	 	63-1238853
	 
	 	 	 	 
	CalMat Co.

3200 San Fernando Road

Lost Angeles, California 90065

	 	July 15, 2007
	 	95-0645790
	 
	 	 	 	 
	Triangle Rock Products, Inc.

P.O. Box 2950

Los Angeles, California 90051

	 	July 15, 2007
	 	95-3430395
	 
	 	 	 	 
	Azusa Rock, Inc.

3901 Fish Canyon Road

Los Angeles, California 90065

	 	July 15, 2007
	 	95-4051240
	 
	 	 	 	 
	Palomar Transit Mix, Inc.

P.O. Box 2950

Los Angeles, California 90051

	 	July 15, 2007
	 	95-2092356
	 
	 	 	 	 
	Vulcan Construction Materials, LLC

4401 North Patterson Avenue

Winston-Salem, North Carolina 27105

	 	July 15, 2007
	 	23-2498052

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