Document:

EX-10.6

Exhibit 10.6

VULCAN MATERIALS COMPANY

RESTRICTED STOCK PLAN

FOR NONEMPLOYEE DIRECTORS

Effective November 1, 1997

Approved by Shareholders May 14, 2004

As Amended through December 11, 2008

	1.	 	Definitions.

As used herein, the following terms shall have the meanings hereinafter set forth:

	(a)	 	“Beneficiary” shall mean the individual or entity designated by the Nonemployee Director to
receive, upon the death of the Nonemployee Director, undelivered Restricted Shares as to which
the applicable restrictions have expired and the balance of the Nonemployee Director’s Account
attributable to Deferred Stock Units. If no such designation is made, or if the designated
individual predeceases the Nonemployee Director or the entity no longer exists, then the
Beneficiary shall be the Nonemployee Director’s estate.
	 
	(b)	 	“Board” shall mean the Board of Directors of the Company.
	 
	(c)	 	“Change in Control” shall mean a change in control as defined in regulations or other
guidance under Section 409A of the Code.
	 
	(d)	 	“Code” shall mean the Internal Revenue Code of 1986, as amended.
	 
	(e)	 	“Company” shall mean Vulcan Materials Company, a New Jersey corporation.
	 
	(f)	 	“Deferred Stock Unit” shall mean the equivalent of one Share, as established pursuant to this
Plan.
	 
	(g)	 	“Effective Date” shall mean May 14, 2004, provided that the Plan is approved by the Company’s
shareholders as described in paragraph 2.
	 
	(h)	 	“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.
	 
	(i)	 	“Fair Market Value Per Share” shall mean the average of the daily closing prices of Shares as
reported on the New York Stock Exchange for the twenty (20) trading days prior to the date of
determination of the number of shares subject to the grant by the Board in accordance with
Section 4 below, or if the Shares are not listed on such exchange, on the principal United
States securities exchange registered under the Exchange Act on which the Shares are listed.

 

 

	(j)	 	“Nonemployee Director” shall mean any person who is a member of the Board who is not, as of
the date of a grant of Restricted Shares under this Plan, an employee of the Company or any of
its subsidiaries.
	 
	(k)	 	“Plan” shall mean this Vulcan Materials Company Restricted Stock Plan for
Nonemployee Directors, as it may be amended from time to time.
	 
	(l)	 	“Restricted Share” shall mean a Share granted to a Nonemployee Director in accordance with
paragraph 4 and subject to the restrictions set forth in paragraph 5.
	 
	(m)	 	“Share” shall mean a share of the Company’s common stock, $1.00 par value, and such other
stock and securities as may be substituted therefor in accordance with paragraph 6(b).

	2.	 	Purposes and Effective Date.

     The purposes of the Plan are to promote a greater identity of interests between the Company’s
Nonemployee Directors and its shareholders through increasing ownership of Company common stock by
the Nonemployee Directors and to assist the Company in attracting and retaining qualified
individuals to serve as Nonemployee Directors by affording them an opportunity to share in the
future successes of the Company.

     The Plan was adopted by the Board of Directors on July 18, 1997 and became effective on
November 1, 1997. The Plan shall be deemed amended and restated as of the date of its approval by
the affirmative vote of the holders of a majority of the Shares of the Company voted in person or
by proxy at the next Annual Meeting.

     This Plan was frozen immediately following the grants dated June 1, 2005.

	3.	 	Eligibility and Shares of Common Stock Available.

     Each director who as of the date of any grant made pursuant to the Plan is not an employee of
the Company or any of its subsidiaries shall be eligible to participate in the Plan.

     The number of Shares that may be issued pursuant to grants of Restricted Shares or Deferred
Stock Units under the Plan shall not exceed 100,000, subject to proportionate adjustment as
provided in paragraphs 6(b) and 8(b).

	4.	 	Grants of Restricted Shares.

     At the Annual Meeting of the Board each year the Board shall determine the number of
Restricted Shares to be granted to each Nonemployee Director. The Restricted Shares shall be
granted on June 1 of each year following such determination date.

	5.	 	Terms and Conditions of Grants of Restricted Shares.

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	(a)	 	The terms and conditions set forth in this paragraph shall apply to each grant of Restricted
Shares. If required by the Company, each such grant shall be evidenced by a written agreement
that sets forth the specific terms of the grant in accordance with the Plan and that is duly
executed by or on behalf of the Company and the Nonemployee Director.
	 
	(b)	 	At the time of each grant, a share certificate or certificates representing the number of
Restricted Shares granted to a Nonemployee Director shall be registered in the Nonemployee
Director’s name but shall be held by or on behalf of the Company for the Nonemployee
Director’s account. As a condition to receipt of the first award of Restricted Shares, each
Nonemployee Director shall execute and deliver to the Company a stock power in blank with
respect to all Restricted Shares that may be awarded to such Nonemployee Director in the
future. Such stock power shall be held in custody by the Secretary of the Company and shall be
used only to effect a transfer of Restricted Shares to the Company in connection with a
forfeiture of Restricted Shares by such Nonemployee Director. The Nonemployee Director shall
have all the rights and privileges of a shareholder as to such Restricted Shares, including
the right to receive dividends and the right to vote such Restricted Shares, subject to the
restrictions set forth in subparagraph c and subject to deferrals of dividend payments as
provided in paragraph 7.
	 
	(c)	 	The Restricted Shares granted to any Nonemployee Director under paragraph 4 shall be subject
to the following restrictions:

     (i) Such Restricted Shares may not be sold, transferred,
assigned, pledged or otherwise encumbered or disposed of until such time as
such restrictions have expired as to such Restricted Shares as provided in
subparagraph (d).

     (ii) A Nonemployee Director shall not be entitled to delivery
of a share certificate representing any Restricted Shares until the
expiration of such restrictions as to such Restricted Shares.

	(d)	 	Except as otherwise provided in clause (ii) below or in paragraph 10, the restrictions
applicable to Restricted Shares covered by any grant to any Nonemployee Director shall expire
in accordance with the terms of the following clause (i):

     (i) Restrictions shall expire as to the Restricted Shares on
the date the Nonemployee Director attains age 70; provided, however, that
restrictions shall expire as to Restricted Shares only if the Nonemployee
Director shall have remained a director of the Company continuously from the
date of grant of such Restricted Shares to the scheduled expiration date.

     (ii) If a Nonemployee Director ceases to be a director of the
Company before attaining age 70 because of death or because he or she is

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totally and permanently disabled as determined by a majority of the Board,
the restrictions on all Restricted Shares shall expire as of the date the
Nonemployee Director ceases to be a director of the Company.

	(e)	 	All of the Restricted Shares granted to any Nonemployee Director as to which the restrictions
have not previously expired shall be forfeited immediately, and all rights of such Nonemployee
Director to such Restricted Shares shall terminate without further obligation on the part of
the Company, if the Nonemployee Director shall cease to be a director of the Company before
age 70 for any reason other than as set forth in clause (ii) of subparagraph (d) above or in
paragraph 10, or as provided in the following sentence. Upon recommendation of the Chief
Executive Officer and unanimous approval by the Compensation Committee (except that if the
Nonemployee Director whose Restricted Shares are at issue is a member of the Compensation
Committee, then that Nonemployee Director will abstain from the decision), the Compensation
Committee may waive such restrictions in whole or in part if such waiver would be in the best
interest of the Company.
	 
	(f)	 	As soon as practicable after the expiration of the restrictions on any Restricted Shares as
herein provided, a share certificate for such Restricted Shares shall be delivered, free of
all such restrictions, to the Nonemployee Director (or to the Nonemployee Director’s
Beneficiary, if applicable) subject to the withholding requirements of paragraph 14(i) (if
applicable).
	 
	6.	 	Delivery of Restricted Shares.
	 
	(a)	 	Shares granted or delivered under the Plan may be authorized but unissued Shares, Shares
reacquired by the Company, or a combination of both, as the Board may from time to time
determine. Shares granted under the Plan but subsequently forfeited shall continue to be
otherwise available for the purposes of the Plan.
	 
	(b)	 	In the event of any change in the outstanding Shares upon which the stock equivalency
hereunder is based, by reason of a merger, consolidation, reorganization, recapitalization,
stock dividend, stock split, combination or exchange of shares, or any other change in
corporate structure or in the event of any dividend that is paid in Shares or other property,
the number and kind of Restricted Shares which may thereafter be granted under the Plan shall
be adjusted and the number and kind of Shares then being held by the Company as Restricted
Shares shall be adjusted in such a manner as a majority of the Board shall determine to be
fair under the circumstances; provided, however, that if a Change in Control shall have
occurred, then such determination shall be made by a majority of the Continuing Directors. Any
new or additional Restricted Shares, or stock or other securities substituted therefor, to
which an Nonemployee Director may be entitled under this subparagraph shall be subject to all
of the terms and conditions of paragraph 5.
	 
	(c)	 	The Company shall not be required to deliver any fractional Share but shall pay, in lieu
thereof, the fair market value (measured as of the date restrictions lapse) of such

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	 	 	fractional Share to the Nonemployee Director (or the Nonemployee Director’s Beneficiary, if
applicable).
	 
	7.	 	Deferred Stock Account.

     The Company shall establish a deferred stock account (an “Account’) for each Nonemployee
Director participating in the Plan. A Nonemployee Director shall have no right to immediate payment
of dividends on Restricted Shares. On each Dividend Date (as defined below), the Company shall
credit the Account with the number of Deferred Stock Units determined in accordance with paragraph
8 below. Distributions from a Nonemployee Director’s Account shall be made in accordance with
paragraphs 9 or 10 below. The value of the Deferred Stock Units is dependent upon the actual market
value of the Shares on the date the Shares are distributed to the Nonemployee Director, and is
therefore subject to market fluctuations in value until such distribution.

	8.	 	Deferred Stock Units.
	 
	(a)	 	There shall be credited to the Account of each Nonemployee Director participating in the Plan
Deferred Stock Units on each regular cash dividend payment date (a “Dividend Date”). The
number of such Deferred Stock Units shall be determined by (i) multiplying the amount of the
dividend by the sum of (x) the total number of Deferred Stock Units (including fractional
Deferred Stock Units) credited to such Account immediately prior to the Dividend Date and (y)
the total number of Restricted Shares granted to such Nonemployee Director upon which
restrictions have not yet lapsed and (ii) dividing the product by the Fair Market Value Per
Share as of the day preceding the Dividend Date.
	 
	(b)	 	In the event of any change in the outstanding Shares upon which the stock equivalency
hereunder is based, by reason of a merger, consolidation, reorganization, recapitalization,
stock dividend, stock split, combination or exchange of shares, or any other change in
corporate structure or in the event of any dividend that is paid in Shares or other property,
the number of Deferred Stock Units credited to the Account shall be adjusted in such a manner
as a majority of the Board shall determine to be fair under the circumstances; provided,
however, that if a Change in Control shall have occurred, then such determination shall be
made by a majority of the Continuing Directors. In the case of dividends payable in property,
the amount paid shall be based on the fair market value of the property at the time of
distribution of the dividend, as determined by a majority of the Board, or, in the event of a
Change in Control, by a majority of the Continuing Directors.
	 
	9.	 	Distribution Attributable to Deferred Stock Units.
	 
	(a)	 	Except as otherwise provided herein, the balance of each Nonemployee Director’s Account shall
be paid to the Nonemployee Director, in a lump sum, within ninety (90) days following the date
that such director reaches age 72.
	 
	(b)	 	In the event of the death of the Nonemployee Director prior to such director’s retirement or
prior to the distribution of the entire balance in such director’s Account, the entire

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	 	 	balance in the Account as of the date of the Nonemployee Director’s death shall be paid in
Shares in a lump sum, to the director’s Beneficiary within ninety (90) days following such
director’s death.
	 
	(c)	 	If, while a director of the Company, a Nonemployee Director is determined to be disabled
(within the meaning of section 409A(a)(2)(C) and the regulations and guidance thereunder, the
entire balance in the Account as of the date of such disability shall be paid to such
Nonemployee Director, or his or her personal representative, in a lump sum, within ninety (90)
days following the date of such disability.
	 
	(d)	 	If a Nonemployee Director incurs a separation from service with the Company within the
meaning of section 409A of the Code for any reason other than due to death or disability (as
defined in subparagraph (c), above), including, without limitation, the failure of such person
to be re-elected as a director of the Company by the shareholders of the Company, the balance
of such director’s Account as of the date such person ceases to be a director of the Company
shall be paid in a lump sum, to such director within ninety (90) days of the date such person
ceases to be a director of the Company.
	 
	(e)	 	All distributions of Deferred Stock Units made pursuant to this Plan shall be in an amount
equal to the number of Deferred Stock Units held in the Account. On the date of any such
distribution, the Company shall cause to be issued and delivered to such Nonemployee Director
a stock certificate evidencing the Shares registered in the name of such Nonemployee Director,
or such other person as the Nonemployee Director may designate. Deferred Stock Units
representing fractional Shares shall be paid in cash.
	 
	10.	 	Effect of Change in Control.
	 
	(a)	 	Notwithstanding any other provision of the Plan, if a Change in Control occurs and at any
time after the occurrence of such Change in Control either of the following events occurs:

(i) the Nonemployee Director ceases for any reason to be a director of the
Company; or

(ii) the Plan is terminated;

	 	 	then the restrictions on all Restricted Shares shall expire. In addition, if the Plan is
terminated following a Change in Control (and the requirements of Treasury Regulation
§ 1.409A-3(j)(4)(ix) are satisfied), the entire balance of the Deferred Stock Unit Account
shall be payable in a lump sum to the director in Shares. Such payment shall be made by the
Company as promptly as practicable, but not more than thirty (30) days following the date on
which the Plan is terminated.
	 
	(b)	 	The Company shall promptly reimburse the Nonemployee Director for all legal fees and expenses
reasonably incurred in successfully seeking to obtain or enforce any right or benefit provided
under this paragraph 10. To the extent that the right to legal fees under this Section 10 is
subject to a “substantial risk of forfeiture” within the meaning of Treas.

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	 	 	Reg. § 1.409A-1(d), any reimbursement of legal fees under this Section 10 shall be paid no
later than 2-1/2 months following the end of the director’s taxable year in which there is
no longer a substantial risk of forfeiture; otherwise, any reimbursement of legal fees paid
to the director pursuant to this Section 10 shall be paid no later than the end of the
director’s taxable year next following the taxable year of the director in which the related
expense is incurred.
	 
	(c)	 	This paragraph 10 may not be amended or modified after the occurrence of a Change in Control.
	 
	11.	 	Amendment and Termination.

     The Board may amend, suspend or terminate the Plan, in whole or in part, at any time. If
applicable laws or exchange listing requirements provide that an amendment must be approved by the
shareholders of the Company, such amendment shall not be effective until it receives the necessary
shareholder approval. No amendment to the Plan shall materially and adversely affect any right of
any Nonemployee Director with respect to any Restricted Shares or Deferred Stock Units theretofore
credited without such Nonemployee Director’s written consent.

	12.	 	Term.
	 
	 	 	The Plan shall continue in effect until May 13, 2009.
	 
	13.	 	Compliance with SEC Regulations.

     It is the Company’s intent that the Plan comply with the provisions of Rule 16b-3 under
Section 16 of the Exchange Act. To the extent that any provision of the Plan or of any award under
the Plan is later found not to be in compliance with Rule 16b-3, such provision shall be deemed to
be null and void.

	14.	 	Miscellaneous.
	 
	(a)	 	Neither the establishment of the Plan nor the payment of any benefits hereunder nor any
action taken hereunder shall be construed as giving any individual any right to continue to
serve as a director of the Company or otherwise to be retained in the service of the Company.
	 
	(b)	 	No Shares shall be issued hereunder unless and until counsel for the Company shall be
satisfied such issuance will be in compliance with applicable federal, state and other
securities laws and regulations.
	 
	(c)	 	The expenses of the Plan shall be borne by the Company.
	 
	(d)	 	Neither the Nonemployee Director nor any other person shall have any interest in any fund or
in any specific asset of the Company by reason of amounts credited to the Account of such
director, nor the right to exercise any of the rights or privileges of a

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	 	 	shareholder with respect to any Deferred Stock Unit credited to such Account, nor the right
to receive distribution under the Plan except as expressly provided herein. Distributions
hereunder shall be made from the general funds of the Company, and the rights of the
directors shall be those of an unsecured general creditor of the Company.
	 
	(e)	 	The Plan, the grant of Restricted Shares and Deferred Stock Units thereunder, and the
obligation of the Company to deliver Shares, shall be subject to all applicable federal and
state laws, rules and regulations and to such approvals by any governmental or regulatory
agency or national securities exchange as may be required. The Company shall not be required
to issue or deliver any certificates for Shares prior to the completion of any registration or
qualification of such Shares under any federal or state law or any ruling or regulation of any
governmental body or national securities exchange which the Company shall, in its sole
discretion, determine to be necessary or advisable.
	 
	(f)	 	The Plan shall be administered by the Compensation Committee selected by the Board. The
Compensation Committee shall have the power to interpret the Plan and, subject to its
provisions, to make all determinations necessary or desirable for the Plan’s administration.
The Compensation Committee shall have the full discretionary authority to adopt rules and
regulations for carrying out the Plan, and to interpret, construe and implement the provisions
of the Plan. The Compensation Committee’s determinations on these matters shall be conclusive,
except in the event of a Change in Control, in which case such interpretation and
determination shall be made by a majority of the Continuing Directors.
	 
	(g)	 	No rights or benefits under the Plan shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance or charge, except by will or the
laws of descent and distribution, and any attempt thereat shall be void. No such right or
benefit shall, before receipt thereof, be in any manner liable for or subject to the
recipient’s debts, contracts, liabilities, engagements, or torts.
	 
	(h)	 	The provisions of this Plan shall apply to and be binding upon the beneficiaries,
distributees, and personal representatives, and any successors in interest of the Nonemployee
Director.
	 
	(i)	 	The Company shall deduct from all distributions hereunder any taxes required to be withheld
by the federal, state or local law. The Company may take any other action it deems necessary
or advisable, to enable the Company to satisfy obligations for the payment of any withholding
taxes or other tax liabilities that it reasonably determines to be due with respect to any
award under the Plan, including requiring payment in cash by the Nonemployee Director of
amounts required to be withheld or deducting such amounts from any other payment due to a
Nonemployee Director.
	 
	(j)	 	The Plan shall be governed by, and construed in accordance with, the laws of the State of
Alabama, excluding any choice of law provisions which may indicate the application of the laws
of another jurisdiction.

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     Executed and adopted on November 1, 1997, as approved by the shareholders of the Company at
its Annual Meeting on May 14, 2004. The effective date of this Amendment and Restatement of the
Plan shall be December 11, 2008. IN WITNESS WHEREOF, the Company has caused this Amendment and
Restatement of the Restricted Stock Plan for Nonemployee Directors to be executed for and in its
name and its corporate seal to be hereto affixed and attested by its duly authorized Secretary this
11th  day of December, 2008.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	VULCAN MATERIALS COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Jerry
F. Perkins, Jr.
 

Jerry
F. Perkins, Jr.
	 	 	 	By:
	 	/s/ Donald
M. James
 

Donald
M. James
	 	 
	 

	 	Corporate Secretary
	 	 	 	 	 	Chairman and Chief Executive Officer	 	 

CORPORATE SEAL

9EX-10.7

Exhibit 10.7

THIS DOCUMENT CONSTITUTES PART OF

A PROSPECTUS COVERING SECURITIES THAT

HAVE BEEN REGISTERED UNDER THE

SECURITIES ACT OF 1933

VULCAN MATERIALS COMPANY

DEFERRED STOCK UNIT AMENDED AGREEMENT

Granted under the 1996 Long-Term Incentive Plan

Terms and Conditions

As Amended December 11, 2008

THIS AMENDED AWARD AGREEMENT is between the Company and the Participant, as designated on page one
of each previous agreement for an award of Deferred Stock Units provided in 2001, 2002, 2003, 2004,
or 2005 (“Prior Agreement”). This Agreement amends and replaces each Prior Agreement (other than
page one of the Prior Agreement), as each was previously amended on October 12, 2006, effective
with respect to each Prior Agreement as of the Grant Date of the award in that Prior Agreement as
if this Agreement were a separate agreement for each such award.

RECITALS:

The Company adopted the 1996 Long-Term Incentive Plan (the “Plan”) in order to provide for a wide
array of stock-based incentives for its employees. The Compensation Committee of the Company (the
“Committee”) has granted Deferred Stock Units to certain employees, including the Participant, in
accordance with the requirements of the Plan to carry out the purposes of the Plan. In
consideration of being awarded the Deferred Stock Units, the Participant agrees with the Company as
follows:

	 	1.	 	Definitions. All defined terms contained in the Plan are hereby incorporated by
reference, except to the extent that any term is specifically defined in this Award
Agreement.
	 
	 	2.	 	Grant of Deferred Stock Units; Vesting; Dividend Equivalents; Withholding.

	 	(A)	 	Grant. Subject to the terms and conditions of the Plan, this Award
Agreement, and any applicable deferral election executed by the participant under the
Executive Deferred Compensation Plan, the Company hereby grants to the Participant
the number of Deferred Stock Units (“DSUs”) designated on page one of the Prior
Agreement. The DSUs represent an unfunded and unsecured promise of the Company to
issue the same number of Shares at the Payment Date (as defined below) as DSUs
granted pursuant to this Section 2(A), or accrued pursuant to Section 2(C), under
this Award Agreement. As of the Grant Date, a DSU account is established for the
Participant (“Account”), and is credited with the number of DSUs shown on page one of
the Prior Agreement. No Shares have been transferred or set aside, or will be
transferred or set aside, from the general creditors of the Company to fund this
Award. The Participant has no right to vote or receive dividends on the Shares
represented by the DSUs until the Shares have been paid on the Payment Date, as
explained below.
	 
	 	(B)	 	Vesting. Except as otherwise provided in Section 3, and subject to
the Committee’s discretion set forth in Section 4, the Participant’s right to receive
the Shares represented by the DSUs will vest (“Vested Shares”) in installments, as
follows: One-fifth of the DSUs will vest on each anniversary of the Grant (an
“Anniversary Date”) beginning on the sixth anniversary and ending on the tenth
anniversary.
	 
	 	(C)	 	Dividend Equivalents. Beginning on the 1st Anniversary
Date and ending on the Anniversary Date on or immediately before the date on which
DSUs are fully paid, the Participant’s Account will be credited with dividend
equivalents equal to the dividends paid during the preceding calendar year on the
number of Shares represented by the DSUs. The Dividend Equivalents will be converted
to

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	 	 	 	additional DSUs, rounded to the nearest whole number, and credited to the Participant’s
Account. The amount of Dividend Equivalents credited on an Anniversary Date to the
Participant’s Account will be divided by the Fair Market Value (FMV) on the Anniversary
Date of one Share of Vulcan Materials Company Stock, as defined below. In the case of
dividends paid in property, the amount credited will be based on the FMV of the property
on the Anniversary Date. The FMV of a Share means the average of the reported high and
low trading prices for a Share on the Anniversary Date on the Composite Tape for New
York Stock Exchange Listed Stocks. If the Anniversary Date falls on a holiday or
weekend, then the immediately preceding trading day shall be used. If the Shares are no
longer NYSE-listed, then it will be the FMV on the exchange on which it is listed, or
the average of the high and low bid quotations if the Shares are listed on NASDAQ. If
the Shares are not listed or traded on NASDAQ, the Company will use another method to
determine the FMV of a Share. Dividend Equivalents are not considered earned and will
not be paid upon termination of employment, in accordance with Section 3 or 4 below,
until they are credited to the Participant’s Account on each Anniversary Date.
	 
	 	(D)	 	Withholding. The Company shall have the right to either (i)
require the Participant to remit to the Company, or any person or entity designated
by the Committee to administer the Plan, an amount sufficient to satisfy any
applicable federal, state, and local income and employment tax withholding
requirements, or (ii) to deduct from any payment made pursuant to the Plan amounts
sufficient to satisfy such withholding requirements.

	 	3.	 	Payment of Deferred Stock Units. The issuance of Shares in settlement of the
Participant’s rights under this Award Agreement will be made in a lump sum on the Payment
Date as specified in this Section 3. However, if the Participant has made a deferral
election under the Executive Deferred Compensation Plan (the “EDCP”), the amount that
otherwise would be paid under this Agreement will be credited to the Participant’s account
under the EDCP at the time payment would otherwise be made (except, in the case of a
payment on account of termination of employment, payment will be credited to Participant’s
the EDCP account at the time of termination).

	 	(A)	 	Payments Made for Vested Shares (as defined in Section 2.(B)).
Vested DSUs, plus the dividend equivalents attributable to such vested DSUs, shall be
paid to the Participant on the Anniversary Date on which they vest as determined in
Section 2.(B). Accordingly, vested DSUs (plus the attributable dividend equivalents)
shall be paid to the Participant beginning on the sixth Anniversary Date and ending
on the tenth Anniversary Date, except as otherwise provided in this Section 3.
	 
	 	(B)	 	Payments Made upon Retirement. If the Participant retires from
employment pursuant to the Company’s retirement income plan prior to reaching the age
of 62, all DSUs granted under this Award Agreement that have not become vested as of
the date of such retirement will be forfeited. If the Participant retires from
employment pursuant to the Company’s retirement income plan at age 62 or later, all
DSUs which have been held by the Participant for at least one year prior to
retirement, whether currently forfeitable or non-forfeitable, will be deemed to be
non-forfeitable and will be paid to the Participant in the seventh month following
the date of the Participant’s retirement.
	 
	 	(C)	 	Death and Disability. If the Participant dies or if, prior to
termination of employment, the Participant becomes Disabled, the remaining balance in
the Participant’s Account (as defined in Section 2.(A)) will become non-forfeitable
in accordance with the schedule below, and the non-forfeitable amount will (a) upon
death, be paid to the Participant’s estate in a lump sum within 30 days of the death
and (b) upon Disability, be paid to the Participant within 90 days after the date of
the Disability. “Disabled” and “Disability” shall be determined under Section
409A(a)(2)(C) of the Internal Revenue Code of 1986, as amended (the “Code”) and the
regulations thereunder.

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	Date of Death or Disability	 	 
	Occurs on or After the	 	Percentage of the Account
	Following Grant Date	 	That Becomes
	Anniversary	 	Non-Forfeitable
	1st Anniversary
	 	 	10	%
	2nd Anniversary
	 	 	20	%
	3rd Anniversary
	 	 	30	%
	4th Anniversary
	 	 	40	%
	5th Anniversary
	 	 	50	%
	6th Anniversary
	 	 	60	%
	7th Anniversary
	 	 	70	%
	8th Anniversary
	 	 	80	%
	9th Anniversary
	 	 	90	%
	10th Anniversary
	 	 	100	%

	 	(D)	 	Other Termination. Except as provided in (A), (B), or (C), above,
upon termination of employment, all DSUs granted under this Award Agreement that have
not become vested as of the date of such termination will be forfeited.
	 
	 	(E)	 	Payments Made upon a Change in Control of the Company. Upon a
“Change in Control of the Company,” as defined in regulations or other guidance under
Section 409A of the Code, the balance in a Participant’s DSU Account will become
non-forfeitable. All non-forfeitable DSUs will be paid in a lump sum to the
Participant on the 90th day following a Change in Control of the Company.
	 
	 	(F)	 	Section 162(m) Payments. If a Participant is a “covered employee,”
within the meaning of Section 162(m)(3) of the Code, when a payment is scheduled to
be made under the Plan, any portion of the payment that would be nondeductible under
Section 162(m) of the Code (when considered with all other compensation that the
Participant is expected to receive in the same taxable year) shall be deferred and
shall be paid on the earliest date on which it would be deductible under Section
162(m), but no later than the calendar year in which the Participant separates from
service, provided that if the payment is delayed until separation from service,
payment shall be made in the seventh month following separation from service.

	 	4.	 	Committee Discretion. Notwithstanding any other provision of the Plan to the contrary,
the Committee may, in its sole discretion, deem that any DSUs granted under this Award
Agreement will become non-forfeitable, determine whether a Participant has been terminated
for reasons other than death or Retirement, whether the Participant has become Disabled,
and whether a payment is to be made upon an unforeseeable emergency as determined under
Section 409A of the Code, provided that the Committee’s exercise of discretion shall not
change the time and form of payment in a manner that does not comply with Section 409A of
the Code. The Committee’s determination will be final and binding on all persons for
purposes of the Plan. If the Committee deems that any DSUs become non-forfeitable and the
Participant terminates employment for any reason other than death, payment of the
non-forfeitable DSUs shall be made to the Participant in the in the seventh month following
the date of the Participant’s termination of employment, subject to any deferral election
the Participant has made under the EDCP.
	 
	 	5.	 	Section 409A. This Agreement shall be interpreted to comply with Section 409A of the
Code. Payments triggered by a termination of employment shall be triggered by a
“separation from service” within the meaning of Section 409A of the Code. However, nothing
in this Agreement transfers to the Company or any entity or other individual liability for
any tax or penalty that is the responsibility of the Participant.

4

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