Document:

Ex-10.01

 

EXHIBIT 10.01

MARTIN MARIETTA MATERIALS, INC.

AMENDED AND RESTATED

STOCK-BASED AWARD PLAN

Adopted: May 8, 1998

As Amended May 8, 1998,

August 17, 2000, May 22, 2001 and April 3, 2006

 

 

MARTIN MARIETTA MATERIALS, INC.

AMENDED AND RESTATED

STOCK-BASED AWARD PLAN

SECTION 1. Establishment and Purpose

     The Martin Marietta Materials, Inc. Amended and Restated Stock-Based Award Plan (the “Plan”)
was adopted by the shareholders of the Corporation in a manner that complies with Section 162(m) at
the shareholders meeting held on May 8, 1998, and subsequently amended and restated by the Board of
Directors at its meeting on May 8, 1998, August 17, 2000, May 22, 2001 and April 3, 2006.

     The purpose of this Plan is to benefit the Corporation’s shareholders by encouraging high
levels of performance by individuals who are key to the success of the Corporation and to enable
the Corporation to attract, motivate, and retain talented and experienced individuals essential to
its continued success. This is to be accomplished by providing such employees and directors an
opportunity to obtain or increase their proprietary interest in the Corporation’s performance and
by providing such employees and directors with additional incentives to remain with the
Corporation.

SECTION 2. Definitions

The following terms, as used herein, shall have the meaning specified:

“Affiliate” of a person means any entity directly or indirectly controlling, controlled by
or under direct or indirect common control with such person.

“Award” means an award granted pursuant to Section 4 hereof.

“Award Agreement” means an agreement described in Section 7 hereof entered into between the
Corporation and a Participant, setting forth the terms and conditions applicable to the
Award granted to the Participant.

“Board of Directors” means the Board of Directors of the Corporation, as it may be comprised
from time to time.

“Code” means the Internal Revenue Code of 1986, as amended from time to time.

“Committee” means a committee composed of members of, and designated by, the Board of
Directors and consisting solely of persons who are both (i) “non-employee directors” within
the meaning of Rule 16b-3, and (ii) “outside directors” within the meaning of Section
162(m), as Rule 16b-3 and Section 162(m) may be amended from time to time, which committee
shall at all times comprise at least the minimum number of such persons necessary to comply
with both Rule 16b-3 and Section 162.

“Corporation” means Martin Marietta Materials, Inc.

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“Covered Employee” means a covered employee within the meaning of Section 162(m) or the
Treasury Regulations promulgated thereunder.

“Eligible Director” means each director of the Corporation who is not an employee of the
Corporation or any Subsidiary.

“Employee” means officers and other key employees of the Corporation.

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.

“Fair Market Value” means the closing price of the relevant security as reported on the
composite tape of New York Stock Exchange issues (or such other reporting system as shall be
selected by the Committee) on the relevant date, or if no sale of the security is reported
for such date, the next following day for which there is a reported sale. The Committee
shall determine the Fair Market Value of any security that is not publicly traded, using
such criteria, as it shall determine, in its sole direction, to be appropriate for such
valuation.

“Incumbent Board” means a member of the Board of Directors of the Corporation who is not an
Acquiring Person, or an affiliate (as defined in Rule 12b-2 of the Exchange Act) or an
associate (as defined in Rule 12b-2 of the Exchange Act) of an Acquiring Person, or a
representative or nominee of an Acquiring Person.

“Insider” means any person who is subject to Section 16 of the Exchange Act.

“Participant” means an Employee or Eligible Director who has been granted and holds an
unexercised or unpaid Award pursuant to this Plan.

“Rule 16b-3” means Rule 16b-3 promulgated by the Securities and Exchange Commission
under Section 16 or any successor rule or regulation as amended from time to time.

“Section 16” means Section 16 of the Exchange Act or any successor statute and the rules
promulgated thereunder by the Securities and Exchange Commission, as they may be amended
from time to time.

“Section 162(m)” means Section 162(m) of the Code or any successor statute and the
Treasury Regulations promulgated thereunder, as they may be amended from time to
time.

“Section 422” means Section 422 of the Code or any successor statute and the
Treasury Regulations promulgated thereunder, as they may be amended from time to
time.

“Stock” means shares of Common Stock of the Corporation, par value $.01 per share.

“Subsidiary” means any entity directly or indirectly controlled by the Corporation.

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SECTION 3. Eligibility

     Awards may be granted (a) to exempt salaried Employees of the Corporation or any Subsidiary
who are designated from time to time by the Committee or (b) to Eligible Directors.

     No individual who beneficially owns Stock possessing five percent (5%) or more of the combined
voting power of all classes of stock of the Corporation shall be eligible to participate in the
Plan.

SECTION 4. Awards

     The Committee may grant any of the following types of Awards, either singly, in tandem or in
combination with other Awards, as the Committee may in its sole discretion determine:

	 	(a)	 	Non-Qualified Stock Options. A Non-Qualified Stock Option is a right to
purchase a specified number of shares of Stock during such specified time as the
Committee may determine at a price not less than 100% of the Fair Market Value of the
Stock on the date the option is granted.

	 	(i)	 	The purchase price of the Stock subject to the option may be
paid in cash. At the discretion of the Committee, the purchase price may also
be paid by the tender of Stock, or through a combination of Stock and cash, or
through such other means as the Committee determines are consistent with the
Plan’s purpose and applicable law. No fractional shares of Stock will be
issued or accepted.
	 
	 	(ii)	 	Without limiting the foregoing, to the extent permitted by law
(including relevant state law), the Committee may agree to accept, as full or
partial payment of the purchase price of Stock issued upon exercise of options,
(A) a promissory note of the optionee evidencing the optionee’s obligation to
make future cash payments to the Corporation, or (B) any other form of payment
deemed acceptable to the Committee. Promissory notes referred to in clause (A)
above shall be payable as determined by the Committee (but in no event later
than five years after the date thereof), shall be secured by a pledge of shares
of Stock purchased, and shall bear interest at a rate established by the
Committee.
	 
	 	(iii)	 	No Non-Qualified Stock Option may be exercisable more than ten
years after the date the Award is made.

	 	(b)	 	Incentive Stock Options. An Incentive Stock Option is an Award in the form of
an option to purchase Stock that complies with the requirements of Code Section 422 or
any successor section.

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	 	(i)	 	To the extent that the aggregate Fair Market Value (determined
at the time of the grant of the Award) of the shares subject to Incentive Stock
Options, which are exercisable, by one person for the first time during a
particular calendar year exceeds $100,000, such excess shall be treated as
Non-Qualified Stock Options. For purposes of the preceding sentence, the term
“Incentive Stock Option” shall mean an option to purchase Stock that is granted
pursuant to this Section 4(b) or pursuant to any other plan of the Corporation,
which option is intended to comply with Section 422 of the Code.
	 
	 	(ii)	 	No Incentive Stock Option may be granted under this Plan after
April 3, 2016 or be exercisable more than ten years after the date the Award is
made.
	 
	 	(iii)	 	The exercise price of any Incentive Stock Option shall be no
less than Fair Market Value of the Stock subject to the option on the date the
Award is made.
	 
	 	(iv)	 	The Committee may provide that the option price under an
Incentive Stock Option may be paid by one or more of the methods available for
paying the option price of a Non-Qualified Stock Option.

	 	(c)	 	Restricted Stock. Restricted Stock is Stock of the Corporation that is issued
to a Participant and is subject to restrictions on transfer and/or such other
restrictions or incidents of ownership as the Committee may determine.
	 
	 	(d)	 	Other Stock-Based Incentive Awards. The Committee may from time to time grant
Awards under this Plan that provide the Participant with the right to purchase Stock of
the Corporation or provide incentive Awards that are valued by reference to the Fair
Market Value of Stock of the Corporation (including, but not limited to phantom
securities or dividend equivalents). Such Awards shall be in a form determined by the
Committee (and may include terms contingent upon a change of control of the
Corporation), provided that such Awards shall not be inconsistent with the terms and
purposes of the Plan.
	 
	 	(e)	 	Except as provided in Section 10 hereof, no option or stock appreciation right
may be amended to reduce the price per share of the shares subject to such option or
the exercise price of such stock appreciation right, as applicable, below the option
price or exercise price as of the date the option or stock appreciation right is
granted without shareholder approval. In addition, other than as provided in Section
10 hereof, (i) no option or stock appreciation right may be granted in exchange for the
cancellation or surrender of an option, stock appreciation right or other award having
a lower option price or exercise price and (ii) no option may be granted with an
automatic reload feature whereby the Corporation is obligated to grant a new Award
hereunder upon the exercise of the option, in either case, without shareholder
approval.

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SECTION 5. Shares of Stock and Other Stock-Based Awards Available Under Plan

	 	(a)	 	Subject to the adjustment provisions of Section 10 hereof, (i) the aggregate
number of shares with respect to which Awards payable in securities may be granted
under the Plan shall be no more than 5,000,000; (ii) the aggregate number of shares
with respect to which Awards subject to Restricted Stock under the Plan shall be no
more than 1,500,000; and (iii) the aggregate number of shares with respect to which
Non-Qualified Stock Options or Incentive Stock Options may be granted to any individual
Participant shall be no more than 500,000 in any one year. Awards that are canceled
shall be counted against the 500,000 shares per year limit to the extent required by
Section 162(m) of the Code.
	 
	 	(b)	 	Any unexercised or undistributed portion of any cancelled, terminated or
forfeited Award (other than an Award terminated or forfeited by reason of the exercise
of any Award granted in tandem therewith) and any shares tendered or withheld in
satisfaction of tax withholding obligations in connection with an Award shall be
available for further Awards in addition to those available under Section 5(a) hereof;
provided, however, that from and after May 23, 2006 neither (i) shares tendered as full
or partial payment to the Corporation upon exercise of a Non-Qualified Stock Option
granted under the Plan, nor (ii) shares subject to stock appreciation rights that are
not used to settle the stock appreciation right upon exercise, shall become available
for further Awards under the Plan.
	 
	 	(c)	 	For the purposes of computing the aggregate number of shares with respect to
which awards payable in securities may be granted under the Plan, the following rules
shall apply:

	 	(i)	 	except as provided in (v) of this Section, each option shall be
deemed to be the equivalent of the maximum number of shares that may be issued
upon exercise of the particular option;
	 
	 	(ii)	 	except as provided in (v) of this Section, each other
stock-based Award shall be deemed to be equal to the number of shares to which
it relates;
	 
	 	(iii)	 	except as provided in (v) of this Section, where the number of
shares available under the Award is variable on the date it is granted, the
number of shares shall be deemed to be the maximum number of shares that could
be received under that particular Award.
	 
	 	(iv)	 	where one or more types of Awards (both of which are payable in
Stock or another security) are granted in tandem with each other, such that the
exercise of one type of Award with respect to a number of shares cancels an
equal number of shares of the other type of Award, each such tandem Award shall
be deemed to cover only the number of shares to be issued under the surviving
tandem component; and

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	 	(v)	 	each share awarded or deemed to be awarded under the preceding
subsections shall be treated as shares of Stock, even if the Award is for a
security other than Stock.

	 	 	 	Additional rules for determining the aggregate number of shares with respect to
which awards payable in securities may be granted under the Plan may be made by the
Committee, as it deems necessary or appropriate.

SECTION 6. Directors’ Options

	 	(a)	 	Annual Options. Each Eligible Director shall be granted a Non-Qualified Stock
Option to acquire 1,500 shares of Stock annually at the same meeting that options are
normally granted to employees of the Corporation, or in such other amount or at such
other time as may be determined by the Board of Directors.
	 
	 	(b)	 	Terms and Conditions. Any Award granted under this Section 6 shall be subject
to the following terms and conditions:

	 	(i)	 	The exercise price of any Non-Qualified Stock Option granted
under Section 6 shall be 100% of the Fair Market Value of the Stock on the date
the Award is made.
	 
	 	(ii)	 	Unless otherwise provided by this Plan, a Non-Qualified Stock
Option granted under Section 6 shall become exercisable as provided in the
Award Agreement.

SECTION 7. Award Agreements

     Each Award under this Plan shall be evidenced by an Award Agreement setting forth the number
of shares of Stock, or units subject to the Award and such other terms and conditions applicable to
the Award as determined by the Committee.

	 	(a)	 	Award Agreements shall include the following terms:

	 	(i)	 	Termination of Employment or Service as Director: A provision
describing the treatment of an Award in the event of the retirement,
disability, death or other termination of a Participant’s employment with the
Corporation or Subsidiary or service as a Director, including but not limited
to terms relating to the vesting, time for exercise, forfeiture or cancellation
of an Award in such circumstances.
	 
	 	(ii)	 	Rights as Shareholder: A provision that a Participant shall have
no rights as a shareholder with respect to any securities covered by an Award
until the date the Participant becomes the holder of record. Except as provided
in Section 10 hereof, no adjustment shall be made for dividends or other rights,
unless the Award Agreement specifically requires such adjustment, in which

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	 	 	 	case, grants of dividend equivalents or similar rights shall not be
considered to be a grant of any other shareholder right.
	 
	 	(iii)	 	Withholding: A provision requiring the withholding of
applicable taxes required by law from all amounts paid in satisfaction of an
Award. In the case of an Award paid in cash, the withholding obligation shall
be satisfied by withholding the applicable amount and paying the net amount in
cash to the Participant. In the case of Awards paid in shares of Stock or
other securities of the Corporation, a Participant may satisfy the withholding
obligation by paying the amount of any taxes in cash or, with the approval of
the Committee, shares of Stock may be deducted from the payment to satisfy the
obligation in full or in part. The number of shares to be deducted shall be
determined by reference to the Fair Market Value as determined by the
Committee.
	 
	 	(iv)	 	Execution: A provision stating that no Award is enforceable
until the Award Agreement or a receipt has been signed by the Participant and
the Chairman or the Chief Executive Officer of the Corporation (or his
delegate). By executing the Award Agreement or receipt, a Participant shall be
deemed to have accepted and consented to any action taken under the Plan by the
Committee, the Board of Directors or their delegates.
	 
	 	(v)	 	Exercise and Payment: The permitted methods of exercising and
paying the exercise price with respect to the Award.
	 
	 	(vi)	 	Minimum Vesting: The Committee shall determine the time or
times at which an Award will vest or become exercisable and the terms on which
an Award requiring exercise will remain exercisable, provided that, except in
the case of Awards made in connection with Directors or the recruitment of new
Employees (including new officers), or as otherwise provided in Section 11
hereof, or otherwise provided by the Award Agreement in connection with
retirement, disability or death of the participant, (i) Non-Qualified Stock
Options shall vest in equal annual installments over a period of not less than
three years and (ii) Restricted Stock shall vest not earlier than three years
from the grant date of the Award.

	 	(b)	 	Award Agreements may include the following terms:

	 	(i)	 	Replacement and Substitution: Any provisions (A) permitting
the surrender of outstanding Awards or securities held by the Participant in
order to exercise or realize rights under other Awards, or in exchange for the
grant of new Awards under similar or different terms or, (B) requiring holders
of Awards to surrender outstanding Awards as a condition precedent to the grant
of new Awards under the Plan.

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	 	(ii)	 	Other Terms: Such other terms as are necessary and appropriate
to effect an Award to the Participant including but not limited to the term of
the Award, vesting provisions, any requirements for continued employment with
the Corporation or any Subsidiary, any other restrictions or conditions
(including performance requirements) on the Award and the method by which
restrictions or conditions lapse, the effect on the Award of a change in
control, the price and the amount or value of Awards.

SECTION 8. Amendment and Termination

     The Board of Directors may at any time amend, suspend or discontinue the Plan. The Committee
may at any time alter or amend any or all Award Agreements under the Plan to the extent permitted
by law. However, no such action by the Board or the Committee may, without approval of the
shareholders of the Corporation, be effective, if shareholder approval would be required pursuant
to the rules and regulations of the New York Stock Exchange or to keep the Plan and the Awards made
thereunder in compliance with Sections 162(m) or 422, as applicable.

SECTION 9. Administration

	 	(a)	 	The Plan and all Awards granted pursuant thereto shall be administered by the
Committee. The members of the Committee shall be designated by the Board of Directors.
A majority of the members of the Committee shall constitute a quorum. The vote of a
majority of a quorum shall constitute action by the Committee.
	 
	 	(b)	 	The Committee shall periodically determine the Participants in the Plan, except
with respect to Eligible Directors, and the nature, amount, pricing, timing, and other
terms of Awards to be made to such individuals.
	 
	 	(c)	 	The Committee shall have the power to interpret and administer the Plan. All
questions of interpretation with respect to the Plan, the terms of any Award Agreements
and, except with respect to Eligible Directors, the number of shares of Stock, or units
granted, shall be determined by the Committee and its determination shall be final and
conclusive upon all parties in interest. In the event of any conflict between an Award
Agreement and this Plan, the terms of this Plan shall govern.
	 
	 	(d)	 	It is the intent of the Corporation that this Plan and Awards hereunder satisfy
and be interpreted in a manner, that, in the case of Participants who are or may be
Insiders, satisfies the applicable requirements of Rule 16b-3, so that such persons
will be entitled to the benefits of Rule 16b-3 or other exemptive rules under Section
16 and will not be subjected to avoidable liability thereunder. If any provision of
this Plan or of any Award would otherwise frustrate or conflict with the intent
expressed in this Section 9(d), that provision to the extent possible shall be
interpreted and deemed amended so as to avoid such conflict. To the extent of any
remaining irreconcilable conflict with such intent, the provision shall be deemed void
as

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	 	 	 	applicable to Insiders to the extent permitted by law and deemed advisable by the
Committee.
	 
	 	(e)	 	It is the intent of the Corporation that this Plan and Awards hereunder satisfy
and be interpreted in a manner, that, in the case of Participants who are or may be
Covered Employees, satisfies the applicable requirements of Section 162(m), so that the
Corporation will be entitled, to the extent possible, to deduct compensation paid under
the Plan and otherwise to such Covered Employees and will not be subjected to avoidable
loss of deductions thereunder. If any provision of this Plan or of any Award would
otherwise frustrate or conflict with the intent expressed in this Section 9(e), that
provision to the extent possible shall be interpreted and deemed amended so as to avoid
such conflict. To the extent of any remaining irreconcilable conflict with such
intent, the provision shall be deemed void as applicable to Covered Employees to the
extent permitted by law and deemed advisable by the Committee.
	 
	 	(f)	 	The Committee may delegate to the officers or employees of the Corporation the
authority to execute and deliver such instruments and documents, to do all such acts
and things, and to take all such other steps deemed necessary, advisable or convenient
for the effective administration of the Plan in accordance with its terms and purpose,
except that the Committee may not delegate any discretionary authority with respect to
substantive decisions or functions regarding the Plan or Awards thereunder as these
relate to Insiders or Covered Employees, including but not limited to decisions
regarding the timing, eligibility, pricing, amount or other material term of such
Awards.

SECTION 10. Adjustment Provisions

	 	(a)	 	In the event of any change in the outstanding shares of Stock by reason of a
stock dividend or split, recapitalization, merger or consolidation, reorganization,
combination or exchange of shares or other similar corporate change, the number of
shares of Stock (or other securities) then remaining subject to this Plan, and the
maximum number of shares that may be issued to anyone pursuant to this Plan, including
those that are then covered by outstanding Awards, shall (i) in the event of an
increase in the number of outstanding shares, be proportionately increased and the
price for each share then covered by an outstanding Award shall be proportionately
reduced, and (ii) in the event of a reduction in the number of outstanding shares, be
proportionately reduced and the price for each share then covered by an outstanding
Award, shall be proportionately increased.
	 
	 	(b)	 	The Committee shall make any further adjustments as it deems necessary to
ensure equitable treatment of any holder of an Award as the result of any transaction
affecting the securities subject to the Plan not described in (a), or as is required or
authorized under the terms of any applicable Award Agreement.

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SECTION 11. Change in Control

	 	(a)	 	Subject to Sections 5, 8 and 10, in the event of a change in control of the
Corporation, in addition to any action required or authorized by the terms of any Award
Agreement, all time periods for purposes of vesting in, or realizing gain from, any and
all outstanding Awards made pursuant to this Plan will automatically accelerate.
	 
	 	(b)	 	For the purposes of this Section, a “Change in Control” shall mean on or after
the effective date of the Plan,

	 	(i)	 	The acquisition by any individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”)) (an “Acquiring Person”) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 40% or more of either (A) the fully diluted shares of Stock, as reflected on
the Corporation’s financial statements (the “Outstanding Corporation Common
Stock”), or (B) the combined voting power of the then outstanding voting
securities of the Corporation entitled to vote generally in the election of
directors (the “Outstanding Corporation Voting Securities”); provided,
however, that for purposes of this subsection (i), the following
acquisitions shall not constitute a Change of Control: (1) any acquisition by
the Corporation or any “affiliate” of the Corporation, within the meaning of 17
C.F.R. § 230.405 (an “Affiliate”), (2) any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by the Corporation or any
Affiliate of the Corporation, or (3) any acquisition by any entity pursuant to
a transaction which complies with clauses (A), (B) and (C) of subsection (iii)
of this definition; or
	 
	 	(ii)	 	Individuals who constitute the Incumbent Board cease for any
reason to constitute at least a majority of the Board; or
	 
	 	(iii)	 	Consummation of a reorganization, merger or consolidation or
sale or other disposition of all or substantially all of the assets of the
Corporation (a “Business Combination”), in each case, unless, following such
Business Combination, (A) all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the Outstanding
Corporation Common Stock and Outstanding Corporation Voting Securities
immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 50% of, respectively, the then outstanding shares of
common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors, as the case
may be, of the corporation resulting from such Business Combination (including,
without limitation, a corporation which as a result of such transaction owns
the Corporation or all or substantially all of the Corporation’s assets either
directly or through one or more subsidiaries) in

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	 	 	 	substantially the same proportions as their ownership, immediately prior to
such Business Combination, of the Outstanding Corporation Common Stock and
Outstanding Corporation Voting Securities, as the case may be, (B) no Person
(excluding any employee benefit plan (or related trust) sponsored or
maintained by the Corporation or any Affiliate of the Corporation, or such
corporation resulting from such Business Combination or any Affiliate of
such corporation) beneficially owns, directly or indirectly, 40% or more of,
respectively, the fully diluted shares of common stock of the corporation
resulting from such Business Combination, as reflected on such corporation’s
financial statements, or the combined voting power of the then outstanding
voting securities of such corporation except to the extent that such
ownership existed prior to the Business Combination, and (C) at least a
majority of the members of the Board of Directors of the corporation
resulting from such Business Combination were members of the Incumbent Board
at the time of the execution of the initial agreement, or of the action of
the Board, providing for such Business Combination; or
	 
	 	(iv)	 	Approval by the shareholders of the Corporation of a complete
liquidation or dissolution of the Corporation.

SECTION 12. Unfunded Plan

     The Plan shall be unfunded. Neither the Corporation nor the Board of Directors shall be
required to segregate any assets that may at any time be represented by Awards made pursuant to the
Plan. Neither the Corporation, the Committee, nor the Board of Directors shall be deemed to be a
trustee of any amounts to be paid under the Plan.

SECTION 13. Limits of Liability

	 	(a)	 	Any liability of the Corporation to any Participant with respect to an Award
shall be based solely upon contractual obligations created by the Plan and the Award
Agreement.
	 
	 	(b)	 	Neither the Corporation nor any member of the Board of Directors or of the
Committee, nor any other person participating in any determination of any question
under the Plan, or in the interpretation, administration or application of the Plan,
shall have any liability to any party for any action taken or not taken, in good faith
under the Plan.

SECTION 14. Rights of Employees

	 	(a)	 	Status as an eligible Employee shall not be construed as a commitment that any
Award will be made under this Plan to such eligible Employee or to eligible Employees
generally.

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	 	(b)	 	Nothing contained in this Plan (or in any other documents related to this Plan
or to any Award) shall confer upon any Employee or Participant any right to continue in
the employ or other service of the Corporation or constitute any contract or limit in
any way the right of the Corporation to change such person’s compensation or other
benefits or to terminate the employment of such person with or without cause.

SECTION 15. Duration

     The Plan shall remain in effect until all Awards under the Plan have been exercised or
terminated under the terms of the Plan and applicable Award Agreement, provided that Awards under
the Plan may only be granted until December 31, 2016.

SECTION 16. Governing Law

     The Plan shall be governed by the laws of the State of North Carolina.

13Ex-10.02

 

EXHIBIT 10.02

MARTIN MARIETTA MATERIALS, INC.

JANICE HENRY

AMENDED AND RESTATED CONSULTING AGREEMENT

     THIS IS A CONSULTING AGREEMENT (this “Agreement”) by and between JANICE HENRY (the
“Consultant”), and MARTIN MARIETTA MATERIALS, INC., a North Carolina corporation (the “Company”),
and by which parties to this Agreement, in consideration of the mutual agreements set forth below
and other good and valuable consideration (the mutuality, adequacy, and sufficiency of which are
hereby acknowledged), hereby agrees as follows:

     1. Consulting.

          (a) Services. During the term of this Agreement, the Consultant will provide
management consulting and advisory services to the Company in accordance with the highest
professional standards with respect to the Company’s business (the “Business”). The Consultant’s
services to the Company shall include, but will not be limited to, those described on Exhibit A
attached hereto and incorporated herein. The Consultant shall perform such duties as and when
reasonably requested by the Company but shall not be required to spend more than an average of
twenty (20) hours per month performing such duties. Consultant shall also cooperate with other
consultants as requested by the Company. Consultant shall report to the Company’s
representative(s) listed on attached Exhibit A with respect to Consultant’s activities under this
Agreement and, if requested, shall submit monthly (or as otherwise may be requested by the Company)
a written report summarizing such activities for the prior month. Consultant acknowledges receipt
of a copy of the Company’s Code of Ethics and Standards of Conduct and shall perform his services
under this Agreement in accordance with the Code of Ethics and Standards of Conduct. Prior to
submitting any written reports under this Agreement, Consultant shall first submit an initial
report, clearly marked “draft,” which report shall be finalized only after approval by the Company.

          (b) Compensation and Expenses. For all services to be provided under this Agreement,
the Company shall pay the Consultant at the rate set forth on attached Exhibit A. The Company
shall also reimburse the Consultant in accordance with Company policy for all reasonable expenses
incurred by Consultant while rendering services under this Agreement. Consultant shall submit no
less than monthly to the Company the expenses for which Consultant seeks reimbursement provided
that failure to do so will not relieve the Company from its obligation to reimburse the Consultant
for reasonable expenses incurred pursuant to this Agreement. The Company shall not reimburse
Consultant for any expenses incurred in entertaining or furnishing meals, refreshments, or gifts to
anyone whose organization prohibits acceptance of such items. Consultant certifies that no such
expenses shall be included in any invoice or statement submitted by Consultant for reimbursement of
expenses.

          (c) Competitive Activities. During the term of this Agreement and any renewal
thereof, Consultant shall not become employed by, provide consulting services to, or otherwise
assist any other person or business entity engaged in the same business as the Business, except
with the prior written consent of the Company.

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          (d) Independent Contractor. It is acknowledged and agreed that the Consultant is an
independent contractor of the Company and not an employee or agent of the Company, and each of the
parties to this Agreement agrees to take actions consistent with the foregoing. Nothing in this
Agreement shall be construed to create a partnership, joint venture, or other association between
the parties.

          (e) Work Papers. All final work product and work papers directly relating thereto
prepared or developed by the Consultant in connection with the performance of services pursuant to
this Agreement, including public records obtained by the Consultant, shall be the property of the
Company whether or not in the possession of the Consultant. Upon demand, Consultant should turn
over papers in his possession to the Company.

          (f) Nondisclosure. The Consultant acknowledges and agrees that, during the
performance of services under this Agreement, the Consultant will have access to knowledge and
information with respect to (i) trade secrets or (ii) certain confidential or proprietary
information of the Company or its affiliates, successors, or assigns or any of its operations or
products (including without limitation plans, brochures, blueprints, specifications, samples [or
products or equipment], pamphlets, advertising copy, financial information, customer lists, and
business and marketing plans, formulas, methods, techniques, and processes owned by or developed or
prepared by, or on behalf of, the Company or its affiliates, successors, or assigns involving the
Business and any other information generated by or on behalf of the Company or its affiliates,
successors, or assigns not generally known in the trade or industry, in each case whether such
information is embodied in writing or other physical form or communicated or disclosed in any other
manner [“Confidential Information"]). Therefore, the Consultant agrees [x] not at any time to
divulge, furnish, or make accessible to anyone (other than in the regular course of the performance
of services for the benefit of the Company or its affiliates, successors, or assigns) any trade
secrets of the Company or its affiliates, successors, or assigns and [y] during the full term of
this Agreement and for a period of three (3) years thereafter, not to divulge, furnish, or make
accessible to anyone (other than in the regular course of the performance of services for the
benefit of the Company or its affiliates, successors, or assigns) any Confidential Information of
the Company or its affiliates, successors, or assigns unless required by law to make such
disclosure.

          (g) Compliance with Law. In performing services under this Agreement, the Consultant
agrees to comply with applicable laws and regulations and to not make or permit to be made any
improper payments, or to perform any unlawful acts. To that end, the Consultant agrees to sign the
certification attached to the Company’s Code of Ethics and Standards of Conduct and further agrees
to sign such further certifications as may be requested by the Company from time to time.

          (h)
Indemnification. The Company shall indemnify and hold harmless the Consultant
against any losses or expenses resulting from the Consultant’s service at the request and on behalf
of the Corporation as a director of another corporation, joint venture or other enterprise.

2

 

     2. Term and Termination following a Change of Control.

          (a) Term. The term of this Agreement shall be for a period of three (3) years
beginning on July 2, 2006 and ending on June 30, 2009; provided, however, that the
Company and the Consultant may renew the Agreement for additional periods of time upon their mutual
written consent.

          (b) Termination following a 409A Change of Control while Consultant is a Specified
Employee. If during the term of this Agreement and while Consultant is a “specified employee”
(a “Specified Employee”) within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue
Code of 1986, as amended (the “Code”) a Change of Control (as defined below) occurs that is also a
“change in the ownership or effective control” of the Company within the meaning of Section
409A(a)(2)(A)(v) of the Code (a “409A Change of Control”), the Company shall pay to the Consultant,
in a lump sum within 15 days following the effective date of such 409A Change of Control, the
compensation listed on Exhibit A hereto for the remaining portion of the term of this Agreement and
any amounts owed to the Consultant pursuant to Section 1(b) above and immediately following such
payment this Agreement and Consultant’s consulting and advisory services shall terminate.

          (c) Termination following a Non 409A Change of Control while Consultant is a Specified
Employee. If during the term of this Agreement and while Consultant is a Specified Employee a
Change of Control occurs that is not a 409A Change of Control, and following the effective date of
such Change of Control either party terminates this Agreement, the Company shall pay to the
Consultant, in a lump sum (i) within 15 days following such termination any amounts owed to the
Consultant pursuant to Section 1(b) above and (ii) on the date that is six months and one day
following such termination, the compensation listed on Exhibit A hereto for the remaining portion
of the term of this Agreement.

          (d) Termination following a Change of Control while Consultant is Not a Specified
Employee. If during the term of this Agreement and while Consultant is not a Specified
Employee a Change of Control occurs, and following the effective date of such Change of Control
either party terminates this Agreement, the Company shall pay to the Consultant, in a lump sum
within 15 days following such termination, the compensation listed on Exhibit A hereto for the
remaining portion of the term of this Agreement and any amounts owed to the Consultant pursuant to
Section 1(b) above.

          (e) Change of Control. Change of Control means (i) the acquisition by any individual,
entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”)) (an “Acquiring Person”) of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of 40% or more of either (A) the
fully diluted shares of common stock of the Company, as reflected on the Company’s financial
statements (the “Outstanding Company Common Stock”), or (B) the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the election of
directors (the “Outstanding Company Voting Securities”); provided, however, that
for purposes of this subsection (i), the following acquisitions shall not constitute a Change of
Control: (X) any acquisition by the Company or any “affiliate” of the Company, within the meaning
of 17 C.F.R. § 230.405 (an “Affiliate”), (Y) any acquisition by any employee

3

 

benefit plan (or related trust) sponsored or maintained by the Company or any Affiliate of the
Company or (Z) any acquisition by any entity pursuant to a transaction which complies with clauses
(A), (B) and (C) of subsection (iii) of this definition; or (ii) individuals who constitute the
Incumbent Board cease for any reason to constitute at least a majority of the Board of Directors of
the Company; or (iii) consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company (a “Business Combination”), in
each case, unless, following such Business Combination, (A) all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the Outstanding Company
Common Stock and Outstanding Company Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then
outstanding shares of common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors, as the case may be, of the
corporation resulting from such Business Combination (including, without limitation, a corporation
which as a result of such transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially the same proportions
as their ownership, immediately prior to such Business Combination, of the Outstanding Company
Common Stock and Outstanding Company Voting Securities, as the case may be, and (B) no Person
(excluding any employee benefit plan (or related trust) sponsored or maintained by the Company or
any Affiliate of the Company, or such corporation resulting from such Business Combination or any
Affiliate of such corporation) beneficially owns, directly or indirectly, 40% or more of,
respectively, the fully diluted shares of common stock of the corporation resulting from such
Business Combination, as reflected on such corporation’s financial statements, or the combined
voting power of the then outstanding voting securities of such corporation except to the extent
that such ownership existed prior to the Business Combination and (C) at least a majority of the
members of the board of directors of the corporation resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial agreement, or of the
action of the Board, providing for such Business Combination; or (iv) approval by the shareholders
of the Company of a complete liquidation or dissolution of the Company. “Incumbent Board”
shall mean a member of the Board of Directors of the Company who is not an Acquiring Person, or an
affiliate (as defined in Rule 12b-2 of the Exchange Act) or an associate (as defined in Rule 12b-2
of the Exchange Act) of an Acquiring Person, or a representative or nominee of an Acquiring Person.

     3. Miscellaneous.

          (a) Notice. All notices under this Agreement shall be in writing and given either in
person or by telefax or express overnight service to the address of the party to this Agreement as
a party to this Agreement may furnish to the other as provided in this sentence, and shall be
deemed received on the date of personal delivery or confirmed telefax transmission or on the first
business day after sent by express overnight service; and if notice is given pursuant to the
foregoing of a permitted successor or assign, then notice shall thereafter be given pursuant to the
foregoing to such permitted successor or assign.

4

 

          (b) Assignment: Binding Effect. No assignment, transfer, or delegation of any rights
or obligations under this Agreement by a party shall be made without the prior written consent of
the other party to this Agreement (but given the personal nature of the services to be provided by
the Consultant to the Company pursuant to this Agreement, it is not expected that consent to
assignment, transfer or delegation by the Consultant will be granted). This Agreement shall be
binding upon the parties to this Agreement and their respective legal representatives, heirs,
devisees, legatees, or other successors and assigns, and shall inure to the benefit of the parties
to this Agreement and their respective permitted legal representatives, heirs, devisees, legatees,
or other permitted successors and assigns.

          (c) Interpretation; Captions. Whenever the context so requires, the singular number
shall include the plural and the plural shall include the singular, and the gender of any pronoun
shall include the other genders. Titles and captions of or in this Agreement are inserted only as
a matter of convenience and for reference and in no way affect the scope for this Agreement or the
intent of its provisions.

          (d) Entire Agreement. This Agreement constitutes the entire agreement of the parties
to this Agreement with respect to its subject matter, supersedes all prior agreements, if any, of
the parties to this Agreement with respect to its subject matter, and may not be amended except in
writing signed by the party to this Agreement against whom the change is being asserted.

          (e) No Waiver. The failure of any party to this Agreement at any time or times to
require the performance of any provisions of this Agreement shall in no manner affect the right to
enforce the same; and no waiver by any party to this Agreement of any provision (or of a breach of
any provision) of this Agreement, whether by conduct or otherwise, in any one or more instances,
shall be deemed or construed either as a further or continuing waiver of any such provision or
breach or as a waiver of any other provision (or of a breach of any other provision) of this
Agreement.

          (f) Governing Law; Jurisdiction. This Agreement shall be governed by and construed in
accordance with the laws of the State of North Carolina, without regard to principles of conflict
or choice of law. Any legal action arising out of or in connection with this Agreement must be
brought in the federal courts located in Raleigh, North Carolina, and by execution and delivery of
this Agreement, each party accepts the jurisdiction of said courts and waives any defense it may
have as to improper venue or jurisdiction (subject matter or personal) or that any of the said
courts is an inconvenient forum. The parties hereby waive their right to a jury trial and agree
that any such action will be tried to the court sitting without a jury.

          (g) Counterparts. This Agreement may be executed in two or more copies, each of which
shall be deemed an original, and it shall not be necessary in making proof of this Agreement or its
terms to produce or account for more than one of such copies.

          (h) Section 409A Compliance. To the extent that any payments or benefits provided
hereunder are considered nonqualified deferred compensation subject to Section 409A of the Code,
the Company and the Consultant intend for this Agreement to comply with the

5

 

standards for nonqualified deferred compensation provided by Section 409A of the Code (the “409A
Standards”). To the extent that any terms of this Agreement would subject the Consultant to an
additional tax pursuant to Section 409A(a)(1)(B) of the Code, those terms are to that extent
modified to be compliant with the 409A Standards, such modification to be limited to the least
modification necessary to bring such terms into compliance with the 409A Standards while preserving
to the maximum extent practicable the original intent and economic benefit to the Consultant. The
Company reserves the right to amend this Agreement at any time without the Consultant’s consent to
cause this Agreement, or any terms of this Agreement, to either comply with or be exempt from
Section 409A of the Code and the 409A Standards.

[SIGNATURES ON FOLLOWING PAGE]

6

 

     DULY EXECUTED and delivered by the parties to this Agreement as of June 26, 2006.

	 	 	 	 	 	 	 	 	 
	THE COMPANY:	 	MARTIN MARIETTA MATERIALS, INC.  
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Stephen P. Zelnak, Jr.	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	Name:
	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	 

	 	Address:
	 	2710 Wycliff Road

Raleigh, NC 27607

Fax: 919.783.4535	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	THE CONSULTANT:	 	/s/ Janice Henry
	 	(SEAL)	 	 
	 	 	 	 	 	 	 
	 	 	Janice Henry
	 	 	 	 

7

 

EXHIBIT A

	 	 	 
	Services:

	 	Consultant will assist the Company with various duties
that may arise from time to time, as specifically
communicated to Consultant. Consultant will have no
authority to bind Company.
	 
	 	 
	Representative(s)

for Reporting:

	 	Chief Executive Officer or Chief Financial Officer,
depending on specific project.
	 
	 	 
	Rate:

	 	The Company shall pay the Consultant at a rate of
Fifteen Thousand Dollars ($15,000.00) per month
regardless of the number of hours performing duties
pursuant to this Agreement, plus expenses as provided in
this Agreement. The Consultant will be available to the
Company on an as-needed basis but shall not be required
to spend more than an average of twenty (20) hours per
month performing such duties.

8

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