Document:

Exhibit 10.1

 

 

 

CHANGE OF CONTROL AGREEMENT

	Parties:	
Surmodics, Inc.

(“Company”)

	
 

	 	
9924 West 74th Street

	 
	 	
Eden Prairie, MN 55344-3523

	 
	 	 	 
	 	
Thomas A. Greaney

	 
	 	
(“Executive”)

	 
	 	 	 
	 	
Glenanena, Cummer

	 
	 	
Tuam Co Galway

	 
	 	 	 
	 Date: 	 February 22, 2018	 

                                      

                                    

RECITALS:

1.            Executive currently serves as the Chief Operating Officer, Medical Devices of the Company, and Executive has extensive knowledge and experience relating to the Company’s business.

2.            The parties recognize that a “Change of Control” may materially change or diminish Executive’s responsibilities and substantially frustrate Executive’s commitment to the Company.

3.            The parties further recognize that it is in the best interests of the Company and its stockholders to provide certain benefits payable upon a “Change of Control Termination” to encourage Executive to continue in his position in the event of a Change of Control.

4.            The parties further desire to provide certain benefits payable upon a termination of Executive’s employment following a Change of Control.

5.            The parties further recognize that it is in the best interests of the Company to protect confidential, proprietary, and trade secret information of the Company, to prevent unfair competition by former executives of the Company following separation of their employment with the Company, and to secure cooperation from former executives with respect to matters related to their employment with the Company.

AGREEMENTS:

1.            Term of Agreement.  Except as otherwise provided herein, this Agreement shall commence on the date executed by the parties and shall continue in effect until the twelve-month anniversary of the date on which a Change of Control occurs.  Notwithstanding the foregoing, if at any time during the term of this Agreement and prior to a Change of Control, Executive’s employment with the Company terminates for any reason or no reason, or if Executive no longer serves as an executive officer of the Company, this Agreement shall immediately terminate, and Executive shall not be entitled to any of the compensation and benefits described in this Agreement.  Any rights and obligations accruing before the termination or expiration of this Agreement shall survive to the extent necessary to enforce such rights and obligations.

2.            Change of Control.  For purposes of this Agreement, “Change of Control” shall mean any one or more of the following events occurring after the date of this Agreement:

		(a)	
The purchase or other acquisition by any one person, or more than one person acting as a group, of stock of the Company that, together with stock held by such person or group, constitutes more than 50% of the total combined value or total combined voting power of all classes of stock issued by the Company; provided, however, that if any one person or more than one person acting as a group is considered to own more than 50% of the total combined value or total combined voting power of such stock, the acquisition of additional stock by the same person or persons shall not be considered a Change of Control;

		(b)	
A merger or consolidation to which the Company is a party if the individuals and entities who were shareholders of the Company immediately prior to the effective date of such merger or consolidation have, immediately following the effective date of such merger or consolidation, beneficial ownership (as defined in Rule 13d-3 under the Securities Exchange Act of 1934) of less than fifty percent (50%) of the total combined voting power of all classes of securities issued by the surviving entity for the election of directors of the surviving corporation;

		(c)	
Any one person, or more than one person acting as a group, acquires or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons, direct or indirect beneficial ownership (as defined in Rule 13d-3 under the Securities Exchange Act of 1934) of stock of the Company constituting thirty-five percent (35%) or more of the total combined voting power of all classes of stock issued by the Company;

		(d)	
The purchase or other acquisition by any one person, or more than one person acting as a group, of substantially all of the total gross value of the assets of the Company during the twelve-month period ending on the date of the most recent purchase or other acquisition by such person or persons.  For purposes of this Section 2(d), “gross value” means the value of the assets of the Company or the value of the assets being disposed of, as the case may be, determined without regard to any liabilities associated with such assets;

2

		(e)	
A change in the composition of the Board of the Company at any time during any consecutive twelve (12) month period such that the “Continuity Directors” cease for any reason to constitute at least a fifty percent (50%) majority of the Board. For purposes of this event, “Continuity Directors” means those members of the Board who either:

		(1)	
were directors at the beginning of such consecutive twelve (12) month period; or

		(2)	
were elected by, or on the nomination or recommendation of, at least a two-thirds (2/3) majority of the then-existing Board of Directors.

In all cases, the determination of whether a Change of Control has occurred shall be made in accordance with the Internal Revenue Code of 1986, as amended (the “Code”), Section 409A and the regulations, notices and other guidance of general applicability issued thereunder.

3.            Change of Control Termination.  For purposes of this Agreement, “Change of Control Termination” shall mean any of the following events occurring upon or within twelve (12) months after a Change of Control:

		(a)	
The termination of Executive’s employment by the Company for any reason, with or without cause, except for termination resulting from conduct by Executive constituting (i) a felony involving moral turpitude under either federal law or the law of the state of the Company’s incorporation, or (ii) Executive’s willful failure to fulfill his employment duties with the Company; provided, however, that for purposes of this clause (ii), an act or failure to act by Executive shall not be “willful” unless it is done, or omitted to be done, in bad faith and without any reasonable belief that Executive’s action or omission was in the best interests of the Company; or

		(b)	
The termination of employment with the Company by Executive for “Good Reason.”  Such termination shall be accomplished by, and effective upon, Executive giving written notice to the Company of his decision to terminate.  “Good Reason” shall mean a good faith determination by Executive, in Executive’s sole and absolute judgment, that any one or more of the following events has occurred, at any time during the term of this Agreement or after a Change of Control; provided, however, that such event shall not constitute Good Reason if Executive has expressly consented to such event in writing or if Executive fails to provide written notice of his decision to terminate, which notice describes the event giving rise to the resignation, within ninety (90) days of the occurrence of such event and the Company has not cured the event within thirty (30) days after receiving such notice from Executive.

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		(1)	
A material change in Executive’s duties, responsibilities, or authority, or any removal of Executive from or any failure to re-elect Executive to any position which has the effect of materially diminishing Executive’s duties, responsibility or authority;

		(2)	
A material reduction, in the aggregate, by the Company in Executive’s base salary (as increased from time to time), variable pay opportunities (including short and long-term cash incentives and equity-based compensation), or the employee benefits to which Executive is entitled to participate in irrespective of any standard waiting periods with respect to the same, unless such material reduction is generally applicable to all executive officers of the Company;

		(3)	
A requirement imposed by the Company on Executive that results in Executive being based at a location that is outside of a fifty (50) mile radius of Executive’s prior job location; or

		(4)	
Any material breach by the Company of any employment agreement between Executive and the Company.

Termination for “Good Reason” shall not include Executive’s death or a termination for any reason other than one of the events specified in clauses (1) through (4) above.

For purposes of Section 4 of this Agreement only, with respect to the timing of payments thereunder, “Change of Control Termination” shall mean the date of Executive’s “separation from service” with the Company within the meaning of Section 409A(a)(2)(A)(i) of the Code (with “Company” for purposes of this paragraph to include any business entity that is treated as a single employer with the Company under the rules of Section 414(b) and (c) of the Code).

4.            Compensation and Benefits.  Upon a termination of Executive’s employment for any reason, Executive shall be entitled to receive all salary and other compensation earned by Executive through the date of such termination at the rate in effect immediately prior to such termination, and all other amounts to which Executive may be entitled to receive under any compensation plan maintained by the Company, subject to any distribution requirements contained in such compensation plans.  In addition, subject to the conditions and limitations contained in this Agreement, upon a Change of Control Termination, Executive shall be entitled to all of the following compensation and benefits:

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		(a)	
Within five (5) business days after a Change of Control Termination, the Company shall pay to Executive a severance payment equal to two (2) times the sum of (i) Executive’s base salary as of the date of the Change of Control Termination, and (ii) an amount equal to Executive’s target short-term incentive opportunity for the year in which the Change of Control Termination occurs;

		(b)	
The Company shall continue to provide Executive, at the Company’s expense, with coverage under its life, health, or dental benefit plans at a level comparable to the benefits which Executive was receiving or entitled to receive immediately prior to the Change of Control Termination or, if greater, at a level comparable to the benefits which Executive was receiving immediately prior to the event which constituted Good Reason.  Such coverage shall continue for eighteen (18) months following such Change of Control Termination or, if earlier, until Executive is eligible to be covered for such benefits through his employment with another employer or continuation coverage under Section 4980B (COBRA) otherwise ends;

		(c)	
All outstanding Options or Stock Appreciation Rights shall become immediately exercisable, and the risks of forfeiture on any outstanding Restricted Stock Awards or Restricted Stock Unit Awards shall immediately lapse.  For purposes of this Agreement, “Option,” “Stock Appreciation Rights,” “Restricted Stock Awards” and “Restricted Stock Unit Awards” shall have the meaning set forth in the SurModics, Inc. 2009 Equity Incentive Plan, or any successor plan; and

		(d)	
All shares or units subject to all outstanding Performance Awards shall become immediately vested and payable at the target performance objectives set forth in said Performance Awards.  For purposes of this Agreement, “Performance Awards” and “Performance Period” shall have the meaning set forth in the SurModics, Inc. 2009 Equity Incentive Plan, or any successor plan.

The parties intend that the payment described in Section 4(a) shall be excluded from deferred compensation as a “short-term deferral” under Treas. Reg. § 1.409A-1(b)(4).  The parties intend that the continuation of health and dental benefits described in Section 4(b) shall be excluded from deferred compensation pursuant to the medical benefits exception for separation pay plans under Treas. Reg. § 1.409A-1(b)(9)(v)(B).

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The parties intend that the continuation of life insurance benefits described in Section 4(b) shall be excluded from deferred compensation as separation pay due to an involuntary separation from service under Treas. Reg. § 1.409A-1(b)(9)(iii), and the amounts payable for such continuation of life insurance coverage shall not exceed two times the lesser of (x) Executive’s annualized compensation based on the annual rate of pay for services to the Company for the calendar year prior to the calendar year in which the Change of Control Termination occurs (adjusted for any increase during the year that was expected to continue indefinitely if Executive had not separated from service) or (y) the compensation limit under Section 401(a)(17) of the Code for the year in which the Change of Control Termination occurs.  Further, in no event shall the benefits described in Section 4(b) extend beyond December 31st of the second calendar year following the calendar year in which the Change of Control Termination occurs.

Notwithstanding the foregoing, if any of the payments described in Section 4 above are subject to the requirements of Code Section 409A and the Company determines that Executive is a “specified employee” as defined in Code Section 409A as of the date of the Change of Control Termination, such payments shall not be paid or commence earlier than the date that is six months after the Change of Control Termination, but shall be paid or commence during the calendar year following the year in which the Change of Control Termination occurs and within 30 days of the earliest possible date permitted under Code Section 409A.

5.            Limitation on Change of Control Payments.  This Section 5 applies only in the event the Company determines that this Agreement is subject to the limitations of Code Section 280G, or any successor provision, and the regulations issued thereunder.  The intent of this Section 5 is to reduce any Change of Control Benefits, as defined below, that would otherwise be characterized as a “parachute payment” as defined in Code Section 280G and be subject to an additional excise tax under Code Section 4999 by the minimum amount necessary to avoid characterization as a parachute payment and avoid the imposition of the excise tax, but only if doing so would provide a more favorable net after-tax result to the Executive than if the Change in Control Benefits were not reduced and the Executive were subject to the excise tax.  

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(a)

	
In the event the Change of Control Benefits payable to Executive would collectively constitute a “parachute payment” as defined in Code Section 280G, and if the “net after-tax amount” of such parachute payment to Executive is less than what the net after-tax amount to Executive would be if the Change of Control Benefits otherwise constituting the parachute payment were limited to the maximum “parachute value” of Change of Control Benefits that Executive could receive without giving rise to any liability for any excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Change of Control Benefits otherwise constituting the parachute payment shall be reduced so that the parachute value of all Change of Control Benefits, in the aggregate, will equal the maximum parachute value of all Change of Control Benefits that Executive can receive without any Change of Control Benefits being subject to the Excise Tax.  Should such a reduction in Change of Control Benefits be required, Executive shall be entitled, subject to the following sentence, to designate those Change of Control Benefits under this Agreement or the other arrangements that will be reduced or eliminated so as to achieve the specified reduction in Change of Control Benefits to Executive and avoid characterization of such Change of Control Benefits as a parachute payment.  The Company will provide Executive with all information reasonably requested by Executive to permit Executive to make such designation.  To the extent that Executive’s ability to make such a designation would cause any of the Change of Control Benefits to become subject to any additional tax under Code Section 409A, or if Executive fails to make such a designation within ten business days of receiving the requested information from the Company, then the Company shall achieve the necessary reduction in the Change of Control Benefits by reducing them in the following order: (a) reduction of cash payments payable under this Agreement; (b) reduction of other payments and benefits to be provided to Executive; (c) cancellation or reduction of accelerated vesting of equity-based awards that are subject to performance-based vesting conditions; and (d) cancellation or reduction of accelerated vesting of equity-based awards that are subject only to service-based vesting conditions.  If the acceleration of the vesting of Executive’s equity-based awards is to be cancelled or reduced, such acceleration of vesting shall be reduced or cancelled in the reverse order of the date of grant.

	
(b)

	
For purposes of this Section 5, a “net after-tax amount” shall be determined by taking into account all applicable income, excise and employment taxes, whether imposed at the federal, state or local level, including the Excise Tax, and the “parachute value” of the Change of Control Benefits means the present value as of the date of the Change of Control for purposes of Code Section 280G of the portion of such Change of Control Benefits that constitutes a parachute payment under Code Section 280G(b)(2).  

	
(c)

	
For purposes of this Section 5, “Change of Control Benefits” shall mean any payment, benefit or transfer of property in the nature of compensation paid to or for the benefit of Executive under any arrangement which is considered contingent on a Change of Control for purposes of Code Section 280G, including, without limitation, any and all of the Company’s salary, incentive payments, restricted stock, stock option, equity-based compensation or benefit plans, programs or other arrangements, and shall include benefits payable under this Agreement.

	
(d)

	
For clarity, the Company shall have no obligation to provide any “tax gross-up” payment related to the Excise Tax in the event the Change of Control Benefits that would otherwise be characterized as a parachute payment are not reduced as set forth in Section 5(a) above and Executive is subject to the Excise Tax.

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6.            Withholding Taxes.  The Company shall be entitled to deduct from all payments or benefits provided for under this Agreement any federal, state or local income and employment-related taxes required by law to be withheld with respect to such payments or benefits.

7.            Post-Termination Obligations and Conditions.

	
(a)

	
In the event of termination of Executive’s employment, the sole obligation of the Company under this Agreement will be its obligation to make the payments called for by Sections 4 and 5 hereof, as the case may be, and the Company will have no other obligation to Executive or to Executive’s beneficiary or estate.

 

	
(b)

	
Notwithstanding the foregoing provisions of Section 4, the Company will not be obligated to make any payments to Executive under Sections 4(a) through 4(d) unless: (i) Executive has signed a release of claims in favor of the Company and its affiliates and related entities, and their directors, officers, insurers, employees and agents, provided such release shall not require Executive to release claims Executive may have for indemnification from the Company or rights of Executive under this Agreement; (ii) all applicable rescission periods provided by law for releases of claims shall have expired and Executive shall have signed and not rescinded the release of claims; and (iii) Executive is in strict compliance with the terms of this Agreement as of the dates of such payments.

 

	
(c)

	
Immediately upon termination of Executive’s employment with the Company for any reason, Executive will resign all positions then held as a director or officer of the Company and of any affiliated entity of the Company.

 

	
(d)

	
Upon termination of Executive’s employment with the Company, Executive shall promptly deliver to the Company any and all Company records and any and all Company property in Executive’s possession or under Executive’s control, including, without limitation, manuals, books, blank forms, documents, letters, memoranda, notes, notebooks, reports, printouts, computer disks, computer tapes, source codes, data, tables or calculations and all copies thereof, documents that in whole or in part contain any trade secrets or confidential, proprietary or other secret information of the Company and all copies thereof, and keys, access cards, access codes, passwords, credit cards, personal computers, telephones, and other electronic equipment belonging to the Company.

 

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(e)

	
Following termination of Executive’s employment with the Company for any reason, Executive will, upon reasonable request of the Company or its designee, cooperate with the Company in connection with the transition of Executive’s duties and responsibilities for the Company; consult with the Company regarding business matters that Executive was directly and substantially involved with while employed by the Company; and be reasonably available, with or without subpoena, to be interviewed, review documents or things, give depositions, testify, or engage in other reasonable activities in connection with any litigation or investigation, with respect to matters that Executive then has or may have knowledge of by virtue of Executive’s employment by or service to the Company or any related entity; provided, however, that: (i) the Company shall not unreasonably request such cooperation of Executive; (ii) the Company shall reimburse Executive or pay directly any reasonable expenses actually incurred in connection with such cooperation and assistance by Executive; and (iii) Executive shall not be required to assist or cooperate with the Company to the extent such assistance or cooperation would prevent Executive from performing, or would materially interfere with Executive’s performance of, the duties or responsibilities of his then-current occupation.

 

	
(f)

	
Executive will not at any time disparage, defame, or besmirch the reputation, character, image, products, or services of the Company or any of its affiliates, or the reputation or character of any of its current or former directors, officers, employees, or agents; provided that nothing in this Section 7(f) is intended to prevent or interfere with Executive making any required or reasonable communications with, or providing information to, any governmental, law enforcement, or stock exchange agency or representative, or in connection with any governmental investigation, court, administrative or arbitration proceeding.

 

	
(g)

	
The Company will direct its executive officers to not at any time disparage, defame, or besmirch the reputation, character or image of Executive; provided that nothing in this Section 7(g) is intended to prevent or interfere with the Company or its executive officers from making any required or reasonable communications with, or providing information to, any governmental, law enforcement, or stock exchange agency or representative, or in connection with any governmental investigation, court, administrative or arbitration proceeding.

 

8.            Successors and Assigns.  This Agreement shall inure to the benefit of and shall be enforceable by Executive, his heirs and the personal representative of his estate, and shall be binding upon and inure to the benefit of the Company and its successors and assigns.  The Company will require the transferee of any sale of all or substantially all of the business and assets of the Company or the survivor of any merger, consolidation or other transaction expressly to agree to honor this Agreement in the same manner and to the same extent that the Company would be required to perform this Agreement if no such event had taken place.  Failure of the Company to obtain such agreement before the effective date of such event shall be a material breach of this Agreement within the meaning of Section 3(b)(4) of this Agreement.

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9.            Notices.  For the purpose of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States certified or registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth on the first page of this Agreement or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt.  All notices to the Company shall be directed to the attention of the Board of Directors of the Company.

10.            Captions.  The headings or captions set forth in this Agreement are for convenience only and shall not affect the meaning or interpretation of this Agreement.

11.            Governing Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Minnesota.

12.            Construction.  Wherever possible, each term and provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law.  If any term or provision of this Agreement is invalid or unenforceable under applicable law, (a) the remaining terms and provisions shall be unimpaired, and (b) the invalid or unenforceable term or provision shall be deemed replaced by a term or provision that is valid and enforceable and that comes closest to expressing the intention of the unenforceable term or provision.

13.            Amendment; Waivers.  This Agreement may not be modified, amended, waived or discharged in any manner except by an instrument in writing signed by both parties hereto.  The waiver by either party of compliance with any provision of this Agreement by the other party shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by such party of a provision of this Agreement.

14.            Section 409A. This Agreement is intended to satisfy, or be exempt from, the requirements of Section 409A(a)(2), (3) and (4) of the Code, including current and future guidance and regulations interpreting such provisions, and should be interpreted accordingly.

15.        Non-Competition, Invention, Non-Disclosure Obligations.  Executive acknowledges and agrees that Executive shall continue to comply with the terms of that certain letter agreement between you and the Company, dated November 18, 2015 (the “Employment Letter”), a copy of which has been provided to Executive with this Agreement.  Executive specifically acknowledges that the consideration Executive received in exchange for signing the Employment Letter was adequate.  Executive further acknowledges that the Company would not enter into this Agreement without having the protections it has under the Employment Letter and therefore the consideration Executive is receiving in exchange for signing this Agreement constitutes additional consideration that the Company is providing in exchange for Executive agreeing to remain bound by the obligations under the Employment Letter.

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16.            Entire Agreement.  This Agreement sets forth Executive’s sole and exclusive remedy with respect to severance benefits payable to Executive upon a Change of Control Termination, and except for the Non-Competition Agreement supersedes all prior or contemporaneous negotiations, commitments, agreements (written or oral) and writings between the Company and Executive with respect to the subject matter hereof, including but not limited to any negotiations, commitments, agreements or writings relating to any severance benefits payable to Executive, and constitutes the entire agreement and understanding between the parties hereto.  All such other negotiations, commitments, agreements and writings will have no further force or effect, and the parties to any such other negotiation, commitment, agreement or writing will have no further rights or obligations thereunder.

17.            Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

18.            Arbitration.  Any dispute arising out of or relating to this Agreement or the alleged breach of it, or the making of this Agreement, including claims of fraud in the inducement, shall be discussed between the disputing parties in a good faith effort to arrive at a mutual settlement of any such controversy.  If, notwithstanding, such dispute cannot be resolved, such dispute shall be settled by binding arbitration.  Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.  The arbitrator shall be a retired state or federal judge or an attorney who has practiced securities or business litigation for at least 10 years.  If the parties cannot agree on an arbitrator within 20 days, any party may request that the chief judge of the District Court for Hennepin County, Minnesota, select an arbitrator.  Arbitration will be conducted pursuant to the provisions of this Agreement, and the commercial arbitration rules of the American Arbitration Association, unless such rules are inconsistent with the provisions of this Agreement.  Limited civil discovery shall be permitted for the production of documents and taking of depositions.  Unresolved discovery disputes may be brought to the attention of the arbitrator who may dispose of such dispute.  The arbitrator shall have the authority to award any remedy or relief that a court of this state could order or grant; provided, however, that punitive or exemplary damages shall not be awarded.  Unless otherwise ordered by the arbitrator, the parties shall share equally in the payment of the fees and expenses of the arbitrator.  The arbitrator may award to the prevailing party, if any, as determined by the arbitrator, all of the prevailing party’s costs and fees, including the arbitrator’s fees, and expenses, and the prevailing party’s travel expenses, out-of-pocket expenses and reasonable attorneys’ fees.  Unless otherwise agreed by the parties, the place of any arbitration proceedings shall be Hennepin County, Minnesota.

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered as of the day and year first above written.

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	 	SURMODICS, INC.	 
	 		 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Bryan K. Phillips	 
	 	 	Its            SVP, General Counsel and Secretary 	 
	 	 	 	 
	 	 	 	 
	 	 	/s/ Thomas A. Greaney 	 
	 	 	Executive	 

 

12EX-4.1

 Exhibit 4.1 

VULCAN MATERIALS COMPANY 

and 
 REGIONS BANK,

 as Trustee 

EIGHTH SUPPLEMENTAL INDENTURE 

Dated as of February 23, 2018 

to 
 SENIOR DEBT
INDENTURE 
 Dated as of December 11, 2007 

Floating Rate Notes due 2021 

 TABLE OF CONTENTS 

 
  

							
	 	  	 	  	Page	 
	ARTICLE I.	 
	DEFINITIONS	 
			
	 Section 1.01
	  	Definition of Terms	  	 	2	 
	
	ARTICLE II.	 
	GENERAL TERMS AND CONDITIONS OF THE FLOATING RATE NOTES	 
			
	 Section 2.01
	  	Designation and Principal Amount	  	 	3	 
	 Section 2.02
	  	Maturity	  	 	3	 
	 Section 2.03
	  	Further Issues	  	 	3	 
	 Section 2.04
	  	Form and Payment	  	 	3	 
	 Section 2.05
	  	Global Securities	  	 	3	 
	 Section 2.06
	  	Definitive Form	  	 	4	 
	 Section 2.07
	  	Interest	  	 	4	 
	 Section 2.08
	  	Authorized Denominations	  	 	4	 
	 Section 2.09
	  	[Reserved]	  	 	4	 
	 Section 2.10
	  	No Optional Redemption	  	 	4	 
	 Section 2.11
	  	Change of Control	  	 	4	 
	 Section 2.12
	  	Appointment of Agents	  	 	6	 
	 Section 2.13
	  	Securities Filings	  	 	6	 
	
	ARTICLE III.	 
	FORM OF NOTES	 
			
	 Section 3.01
	  	Form of Floating Rate Notes	  	 	8	 
	
	ARTICLE IV.	 
	ORIGINAL ISSUE OF NOTES	 
			
	 Section 4.01
	  	Original Issue of Floating Rate Notes	  	 	8	 
	ARTICLE V.	 
	MISCELLANEOUS	 
			
	 Section 5.01
	  	Ratification of Indenture	  	 	8	 
	 Section 5.02
	  	Trustee Not Responsible for Recitals	  	 	8	 
	 Section 5.03
	  	Governing Law	  	 	8	 
	 Section 5.04
	  	Separability	  	 	8	 
	 Section 5.05
	  	Counterparts	  	 	8	 

  

			
	EXHIBIT A Form of Floating Rate Notes	  	A-1

  
 -i- 

 EIGHTH SUPPLEMENTAL INDENTURE, dated as of February 23, 2018 (this “Supplemental
Indenture”), between Vulcan Materials Company, a corporation duly organized and existing under the laws of the State of New Jersey, having its principal office at 1200 Urban Center Drive, Birmingham, Alabama 35242 (the
“Company”), and Regions Bank, an Alabama banking corporation, as trustee (the “Trustee”). 
 WHEREAS, the
Company executed and delivered the Senior Debt Indenture, dated as of December 11, 2007, to Wilmington Trust Company, as initial trustee (succeeded by Regions Bank) (as heretofore supplemented, the “Indenture”), to provide for
the issuance of the Company’s notes or other evidences of indebtedness (the “Securities”), to be issued in one or more series; 

WHEREAS, pursuant to the terms of the Indenture, the Company desires to provide for the establishment of new series of its notes under the
Indenture to be known as its “Floating Rate Notes due 2021” (the “Floating Rate Notes”); 
 WHEREAS, for the
purpose of issuing the Floating Rate Notes, the Company wishes to enter into this Supplemental Indenture; 
 WHEREAS, the Board of Directors
of the Company (the “Board”) on February 9, 2018, and the Pricing Committee appointed by the Board (which such appointment occurred on February 9, 2018) on February 19, 2018, have duly adopted resolutions, and through
such resolutions have duly authorized (i) the issuance of the Floating Rate Notes, and (ii) the proper officers of the Company to execute any and all appropriate documents necessary or appropriate to effect such issuance; 

WHEREAS, this Supplemental Indenture is being entered into pursuant to the provisions of Article Two and Section 901(7) of the Indenture;

 WHEREAS, the Company has requested that the Trustee execute and deliver this Supplemental Indenture; and 

WHEREAS, all things necessary to make this Supplemental Indenture a valid agreement of the Company, in accordance with its terms, and to make
each of the Floating Rate Notes, when executed by the Company and authenticated and delivered by the Trustee or an authentication agent, the valid obligations of the Company, have been performed, and the execution and delivery of this Supplemental
Indenture has been duly authorized in all respects; 
 NOW THEREFORE, in consideration of the premises and the purchase and acceptance of
each of the Floating Rate Notes by the Holders thereof, and for the purpose of setting forth, as provided in the Indenture, the forms and terms of each of the Floating Rate Notes, the Company covenants and agrees, with the Trustee, as follows: 

 ARTICLE I. 

DEFINITIONS 
 Section 1.01
Definition of Terms. 
 Unless the context otherwise requires: 

(a) each term defined in the Indenture has the same meaning when used in this Supplemental Indenture; 

(b) the singular includes the plural and vice versa; and 

(c) headings are for convenience of reference only and do not affect interpretation. 

“Change of Control” means the occurrence of any of the following: (1) the consummation of any transaction (including,
without limitation, any merger or consolidation) the result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act) (other than the Company or one of its subsidiaries) becomes the beneficial owner
(as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the Voting Stock of the Company or other Voting Stock into
which the Voting Stock of the Company is reclassified, consolidated, exchanged or changed, measured by voting power rather than number of shares; (2) the direct or indirect sale, transfer, conveyance or other disposition (other than by way of
merger or consolidation), in one or more series of related transactions, of all or substantially all of the assets of the Company and the assets of its subsidiaries, taken as a whole, to one or more Persons (other than the Company or one of its
subsidiaries); or (3) the first day on which a majority of the members of the Board of Directors of the Company is composed of members who are not Continuing Directors. Notwithstanding the foregoing, a transaction will not be deemed to involve
a Change of Control if (1) the Company becomes a direct or indirect wholly-owned subsidiary of a holding company and (2)(A) the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction are
substantially the same as the holders of the Voting Stock of the Company immediately prior to that transaction or (B) immediately following that transaction no person (other than a holding company satisfying the requirements of this sentence)
is the beneficial owner, directly or indirectly, of more than 50% of the Voting Stock of such holding company. 
 “Continuing
Directors” means, as of any date of determination, any member of the Company’s Board of Directors who (1) was a member of such Board of Directors on the date of the initial issuance of the applicable series or (2) was
nominated for election, elected or appointed to such Board of Directors with the approval of a majority of the Continuing Directors who were members of such Board of Directors at the time of such nomination, election or appointment (either by a
specific vote or by approval of the Company’s proxy statement in which such member was named as a nominee for election as a director, without objection to such nomination). 

“Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating categories
of Moody’s); a rating of BBB- or better by S&P (or its equivalent under any successor rating categories of S&P); and the equivalent investment grade credit rating from any additional Rating Agency
or Rating Agencies selected by the Company. 
 “Moody’s” means Moody’s Investors Service, Inc. 

“Rating Agency” means in respect of any series of Securities (a) each of Moody’s and S&P; and (b) if
either of Moody’s or S&P ceases to rate the Securities of such series or fails to make a rating of the Securities of such series publicly available for reasons outside of the Company’s control, a “nationally recognized statistical
rating organization” within the meaning of Section 3(a)(62) under the Exchange Act, selected by the Company and certified by a resolution of the Company’s Board of Directors as a replacement agency for the agency that ceased such
rating or failed to make it publicly available. 

  
 -2- 

 “S&P” means S&P Global Ratings, a segment of S&P Global Inc. 

“Voting Stock” of any specified “person” (as that term is used in Section 13(d)(3) of the Exchange Act) as of
any date means the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person. 

ARTICLE II. 
 GENERAL
TERMS AND CONDITIONS OF THE FLOATING RATE NOTES 
 Section 2.01 Designation and Principal Amount. 

There is hereby authorized and established a series of Securities under the Indenture, designated as the “Floating Rate Notes due
2021,” which is not limited in aggregate principal amount. The aggregate principal amount of the Floating Rate Notes to be issued shall be as set forth in any Company Order for the authentication and delivery of the Floating Rate Notes,
pursuant to Section 303 of the Indenture. 
 Section 2.02 Maturity. 

The Stated Maturity of principal for the Floating Rate Notes will be March 1, 2021. 

Section 2.03 Further Issues. 
 The
Company may from time to time, without the consent of the Holders of the Floating Rate Notes, issue additional notes of that series. Any such additional notes will have the same ranking, interest rate, maturity date and other terms as the Floating
Rate Notes (except for any differences in the issue price, issue date and interest accrued prior to the issue date of such additional notes). Any such additional notes, together with the Floating Rate Notes herein provided for, will constitute a
single series of Securities under the Indenture. 
 Section 2.04 Form and Payment. 

Principal of, premium, if any, and interest on the Floating Rate Notes shall be payable in U.S. dollars. 

Section 2.05 Global Securities. 

Upon the original issuance, the Floating Rate Notes will be represented by one or more Global Securities registered in the name of
Cede & Co., the nominee of the Depository Trust Company (“DTC”). The Company will issue the Floating Rate Notes in denominations of $2,000.00 and integral multiples of $1,000.00 in excess thereof and will deposit the Global
Securities with DTC or its custodian and register the Global Securities in the name of Cede & Co. 

  
 -3- 

 Section 2.06 Definitive Form. 

If (a) the Depositary is at any time unwilling or unable to continue as depositary or ceases to be a registered clearing agency and, in
either case, a successor depositary is not appointed by the Company within 90 days of notice thereof, (b) an Event of Default has occurred with regard to the Floating Rate Notes and has not been cured or waived, or (c) the Company at any
time and in its sole discretion determines not to have the Floating Rate Notes represented by Global Securities, the Company may issue the Floating Rate Notes in definitive form in exchange for such Global Securities. In any such instance, an owner
of a beneficial interest in Floating Rate Notes will be entitled to physical delivery in definitive form of Floating Rate Notes, equal in principal amount to such beneficial interest and to have Floating Rate Notes registered in its name as shall be
established in a Company Order. 
 Section 2.07 Interest. 

The Floating Rate Notes will bear interest (computed on the basis of the actual number of days in an interest period and a 360-day year) from February 23, 2018 at a floating rate equal to three-month LIBOR as determined on the applicable interest determination date plus 0.65% per annum, payable quarterly; interest payable on each
Interest Payment Date will include interest accrued from February 23, 2018 or from the most recent Interest Payment Date to which interest has been paid or duly provided for; the Interest Payment Dates on which such interest shall be payable
are March 1, June 1, September 1 and December 1, commencing on June 1, 2018; and the record date for the interest payable on any Interest Payment Date is the close of business on February 15, May 15 August 15 or
November 15 (whether or not such day is a Business Day), as the case may be, next preceding the relevant Interest Payment Date. 
 Section 2.08
Authorized Denominations. 
 The Floating Rate Notes shall be issuable in denominations of $2,000.00 and integral multiples of
$1,000.00 in excess thereof. 
 Section 2.09 [Reserved]. 

Section 2.10 No Optional Redemption. 

The Company will not have the right to redeem the Floating Rate Notes, in whole or in part, prior to the Maturity Date thereof. 

Section 2.11 Change of Control. 
 (a)
Upon the occurrence of a Floating Rate Change of Control Repurchase Event (as defined below), unless the Company has defeased the Floating Rate Notes as set forth in the Floating Rate Notes, the Company shall make an irrevocable offer to each Holder
of Floating Rate Notes to repurchase all or any part (equal to or in excess of $2,000.00 and in integral multiples of $1,000.00) of such Holder’s Floating Rate Notes at a repurchase price in cash equal to 101% of the aggregate principal amount
of Floating Rate Notes repurchased plus accrued and unpaid interest, if any, on the Floating Rate Notes repurchased to, but not including, the date of repurchase. 

  
 -4- 

 (b) Within 30 days following any Floating Rate Change of Control Repurchase Event or, at the
Company’s option, prior to any Change of Control, but in either case, after the public announcement of such Change of Control, the Company shall mail, or shall cause to be mailed, to each Holder of Floating Rate Notes, with a copy to the
Trustee, a notice: 
 (i) describing the transaction or transactions that constitute or may constitute the Floating Rate Change of Control
Repurchase Event; 
 (ii) offering to repurchase all Floating Rate Notes tendered; 

(iii) setting forth the payment date (the “Floating Rate Change of Control Payment Date”) for the repurchase of the Floating
Rate Notes, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed; 
 (iv) if mailed prior
to the date of consummation of the Change of Control, stating that the offer to repurchase is conditioned on a Floating Rate Change of Control Repurchase Event occurring on or prior to the Floating Rate Change of Control Payment Date specified in
such notice; 
 (v) disclosing that any Floating Rate Note not tendered for repurchase will continue to accrue interest; and 

(vi) specifying the procedures for tendering Floating Rate Notes. 

(c) The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act, and any other
securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Floating Rate Notes as a result of a Floating Rate Change of Control Repurchase Event. To the extent that the
provisions of any securities laws or regulations conflict with the Floating Rate Change of Control Repurchase Event provisions of the Floating Rate Notes, the Company will comply with the applicable securities laws and regulations and will not be
deemed to have breached its obligations under the Floating Rate Change of Control Repurchase Event provisions of the Floating Rate Notes by virtue of such conflict. 

(d) On the Floating Rate Change of Control Payment Date, the Company shall, to the extent lawful: 

(i) accept for payment all Floating Rate Notes or portions thereof properly tendered pursuant to such offer; 

(ii) deposit with the Paying Agent an amount equal to the aggregate purchase price in respect of all Floating Rate Notes or portions thereof
properly tendered; and 
 (iii) deliver or cause to be delivered to the Trustee the Floating Rate Notes properly accepted, together with an
Officers’ Certificate of the Company stating the aggregate principal amount of Floating Rate Notes or portions thereof being repurchased by the Company. 

  
 -5- 

 (e) Upon receipt of the required funds, the Paying Agent will promptly distribute to each Holder
of Floating Rate Notes properly tendered the purchase price for such Floating Rate Notes deposited with the Paying Agent by the Company, the Company will execute and the Trustee, upon the execution and delivery by the Company of such Floating Rate
Notes, will promptly authenticate and deliver (or cause to be transferred by book-entry) to each Holder a new Floating Rate Note equal in principal amount to any unpurchased portion of any Floating Rate Notes surrendered; provided that each
new Floating Rate Note will be in a principal amount of an integral multiple of $1,000.00. 
 (f) The Company shall not be required to make
an offer to repurchase the Floating Rate Notes upon a Floating Rate Change of Control Repurchase Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the
Company and such third party purchases all Floating Rate Notes properly tendered and not withdrawn under its offer. In addition, the Company shall not repurchase any Floating Rate Notes if there has occurred and is continuing on the Floating Rate
Change of Control Payment Date an Event of Default in respect of any series of notes under the Indenture, other than a default in the payment of all or any portion of the aggregate purchase price in respect of all Floating Rate Notes or portions
thereof properly tendered in connection with a Floating Rate Change of Control Repurchase Event. 
 (g) Solely for purposes of this
Section 2.11 in connection with the Floating Rate Notes, the following terms shall have the following meanings: 

“Floating Rate Below Investment Grade Ratings Event” means that on any day commencing 60 days prior to the
first public announcement by the Company of any Change of Control (or pending Change of Control) and ending 60 days following consummation of such Change of Control (which period will be extended following consummation of a Change of Control for up
to an additional 60 days for so long as either of the Rating Agencies has publicly announced that it is considering a possible ratings change), the Floating Rate Notes are downgraded to a rating that is below Investment Grade by each of the Rating
Agencies (regardless of whether the rating prior to such downgrade was Investment Grade or below Investment Grade). 

“Floating Rate Change of Control Repurchase Event” means the occurrence of both a Change of Control and a
Floating Rate Below Investment Grade Ratings Event. 
 Section 2.12 Appointment of Agents. 

Regions Bank will initially be the Security Registrar, Paying Agent and calculation agent for the Floating Rate Notes and will act as such only
at its offices at Regions Bank, Corporate Trust Department, 1900 5th Avenue North, 26th Floor, Birmingham, Alabama 35203; or any other address that the Securities Registrar and Paying Agent may designate with respect to itself from time to time by
notice to the Trustee, the Company and the Holders. 
 Section 2.13 Securities Filings. 

(a) Notwithstanding that the Company is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act or is otherwise
required to report on an annual and quarterly basis on forms provided for in those annual and quarterly reporting pursuant to rules and regulations promulgated by the Commission, so long as the Floating Rate Notes are

  
 -6- 

 
outstanding (unless defeased in a legal defeasance), the Company will (x) file with the Commission (unless the Commission will not accept such filing), and (y) make available to the
Trustee and, upon written request, the Holders of the Floating Rate Notes, without cost to any such Holder, from the date that the Floating Rate Notes are issued: 

(i) within the time periods specified by the Exchange Act (including all applicable extension periods), an annual report on Form 10-K (or any successor or comparable form) containing the information required to be contained therein (or required in such successor or comparable form); and 

(ii) within the time periods specified by the Exchange Act (including all applicable extension periods), a quarterly report on Form 10-Q (or any successor or comparable form) containing the information required to be contained therein (or required in such successor or comparable form). 

(b) In the event that the Company is not permitted to file its annual or quarterly reports with the Commission pursuant to the Exchange Act,
the Company shall nevertheless make available such Exchange Act reports to the Trustee and the Holders of the Floating Rate Notes as if the Company was subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act within the
time periods specified by the Exchange Act (including all applicable extension periods), which requirement may be satisfied by posting such reports on the Company’s website within the applicable time periods specified in Sections 2.13(a)(i) and
(a)(ii) above. 
 (c) Notwithstanding the foregoing, the availability of the reports referred to in Sections 2.13(a)(i) and (a)(ii) above on
the Commission’s Electronic Data Gathering, Analysis and Retrieval system (or any successor system, including the Commission’s Interactive Data Electronic Application system) and the Company’s website within the applicable time
periods specified in Sections 2.13(a)(i) and (a)(ii) above will be deemed to satisfy the delivery obligations under this Section 2.13. 

(d) Delivery of reports, information and documents to the Trustee and, if applicable, to the Security Registrar and Paying Agent is for
informational purposes only and their respective receipt of such reports shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s or any other
Person’s compliance with any of its covenants under the Indenture, the Supplemental Indenture or the Floating Rate Notes (as to which the Trustee, Security Registrar and Paying Agent are entitled to rely exclusively on Officers’
Certificates). None of the Trustee, the Security Registrar or Paying Agent shall be obligated to monitor or confirm, on a continuing basis or otherwise, the Company’s or any other Person’s compliance with the covenants described herein or
with respect to any reports or other documents filed under the Indenture or the Supplemental Indenture. 

  
 -7- 

 ARTICLE III. 

FORM OF NOTES 
 Section 3.01 Form
of Floating Rate Notes. 
 The Floating Rate Notes and the Trustee’s Certificate of Authentication to be endorsed thereon are to be
substantially in the form set forth in Exhibit A hereto. 
 ARTICLE IV. 

ORIGINAL ISSUE OF NOTES 
 Section 4.01
Original Issue of Floating Rate Notes. 
 The Floating Rate Notes may, upon execution of this Supplemental Indenture, be executed by
the Company and delivered to the Trustee for authentication, and the Trustee shall, upon Company Order, authenticate and deliver such Floating Rate Notes as in such Company Order provided. 

ARTICLE V. 

MISCELLANEOUS 
 Section 5.01
Ratification of Indenture. 
 The Indenture, as supplemented by this Supplemental Indenture, is in all respects ratified and
confirmed, and this Supplemental Indenture shall be deemed part of the Indenture in the manner and to the extent herein and therein provided; provided that the provisions of this Supplemental Indenture apply solely with respect to the
Floating Rate Notes. 
 Section 5.02 Trustee Not Responsible for Recitals. 

The recitals herein contained are made by the Company and not by the Trustee, and the Trustee assumes no responsibility for the correctness
thereof. The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture. 
 Section 5.03 Governing Law.

 This Supplemental Indenture and each Floating Rate Note shall be governed by and construed in accordance with the laws of the State of New
York. 
 Section 5.04 Separability. 

In case any one or more of the provisions contained in this Supplemental Indenture or the Floating Rate Notes shall for any reason be held to
be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Supplemental Indenture or of the Floating Rate Notes but this Supplemental Indenture and the Floating
Rate Notes shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein. 
 Section 5.05
Counterparts. 
 This Supplemental Indenture may be executed in any number of counterparts each of which shall be an original; but
such counterparts shall together constitute but one and the same instrument. 

  
 -8- 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the
day and year first above written. 
  

			
	VULCAN MATERIALS COMPANY
		
	By:	 	 /s/ C. Wes Burton, Jr.

		 	Name: C. Wes Burton, Jr.
		 	Title:   Vice President and Treasurer
	
	 REGIONS BANK,
   as
Trustee

		
	By:	 	 /s/ Patti Maner

		 	Name: Patti Maner
		 	Title:   Vice President

 Acknowledged: 
 REGIONS
BANK, 
   as Paying Agent and Security Registrar 
  

			
	By:	 	 /s/ Patti Maner

		 	Name: Patti Maner
		 	Title:   Vice President

 [Signature Page to Seventh Supplemental Indenture] 

 Acknowledged: 

REGIONS BANK, 
   as calculation agent 

 

			
	By:	 	 /s/ Patti Maner

		 	Name: Patti Maner
		 	Title: Vice President

 [Signature Page to Seventh Supplemental Indenture] 

 EXHIBIT A 

FORM OF FLOATING RATE NOTES 
 [THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON
OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND NO TRANSFER OF THIS SECURITY (EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN SUCH LIMITED CIRCUMSTANCES. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY
AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 

VULCAN MATERIALS COMPANY 

FLOATING RATE NOTE DUE 2021 
  

			
	No.                     	  	$

 CUSIP No. [         ] 

Vulcan Materials Company, a corporation duly organized and existing under the laws of New Jersey (herein called the “Company,” which term
includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of
                     Dollars on March 1, 2021, and to pay interest thereon from February 23, 2018, or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, quarterly on March 1, June 1, September 1 and December 1 of each year and on the maturity date, beginning on June 1, 2018, at the floating rate of interest described
on the Reverse of this Security, until the principal hereof is paid or made available for payment, and (to the extent that the payment of such interest shall be legally enforceable) at the floating rate of interest described on the Reverse of this
Security on any overdue principal and premium and on any overdue installment of interest. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be February 15, May 15, August 15 or November 15 (whether or not a
Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the
Person in whose name this Security (or one or more Predecessor 

  
 A-1 

 Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture. 

Payment of the principal of (and premium, if any) and interest on this Security will be made at the office or agency of the Company maintained for that
purpose in New York, New York (or, at the option of the Company, payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register), in such coin or currency of the
United States of America as at the time of payment is legal tender for payment of public and private debts. 
 Reference is hereby made to the further
provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 

Unless the certificate of authentication hereon has been executed by the Trustee or an authentication agent on its behalf referred to on the reverse hereof by
manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

  
 A-2 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

Dated:                      

 

			
	VULCAN MATERIALS COMPANY
		
	By:	 	  

		 	C. Wes Burton, Jr., Vice President and Treasurer

 Attest: 
  

	
	  

	Jerry F. Perkins Jr., General Counsel and Secretary

 [Signature Page to Global Security] 

  
 A-3 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

 

			
	 REGIONS BANK,
   as
Trustee

		
	By:	 	  

		 	Authorized Officer

 [Signature Page to Global Security] 

  
 A-4 

 (FORM OF REVERSE OF FLOATING RATE NOTE) 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one
or more series under a Senior Debt Indenture, dated as of December 11, 2007 (herein called the “Indenture”), as supplemented by the Eighth Supplemental Indenture, dated as of February 23, 2018, between the Company and
Regions Bank, as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is one
of the series designated on the face hereof. 
 If an Event of Default with respect to Securities of this series shall occur and be continuing, the
principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 
 This Security
will bear interest for each interest period at a per annum rate equal to three-month LIBOR plus 0.65%, as determined by the calculation agent on the applicable interest determination date for such interest period. The calculation agent will be
Regions Bank until such time as the Company appoints a successor calculation agent. The interest determination date for an interest period will be the second London business day preceding the first day of such interest period. The initial interest
period for this Security will be the period from and including the original issue date to but excluding the initial interest payment date. Each subsequent interest period shall be the period beginning on, and including, an interest payment date and
ending on, but not including, the following interest payment date. Promptly upon determination, the calculation agent will inform the Trustee and the Company of the interest rate for the next interest period. Absent manifest error, the determination
of the interest rates for this Security by the calculation agent shall be binding and conclusive on the Holders of such Security, the Trustee and the Company. A London business day is a day on which dealings in deposits in U.S. dollars are
transacted in the London interbank market. 
 On any interest determination date, LIBOR will be equal to the offered rate for deposits in U.S. dollars
having an index maturity of three months, in amounts of at least $1,000,000, as such rate appears on “Reuters Page LIBOR01” at approximately 11:00 a.m., London time, on such interest determination date. If on an interest determination
date, such rate does not appear on the “Reuters Page LIBOR01” as of 11:00 a.m., London time, or if the “Reuters Page LIBOR01” is not available on such date, the calculation agent will obtain such rate from Bloomberg L.P.’s
page “BBAM.” 
 If no offered rate appears on “Reuters Page LIBOR01” or Bloomberg L.P.’s page “BBAM” on an interest
determination date at approximately 11:00 a.m., London time, then the Company will select four major banks in the London interbank market and shall request each of their principal London offices to provide a quotation of the rate at which
three-month deposits in U.S. dollars in amounts of at least $1,000,000 are offered by it to prime banks in the London interbank market, on that date and at that time, that is representative of single transactions at that time. If at least two
quotations are provided, LIBOR will be the arithmetic average of the quotations provided. Otherwise, the Company will select three major banks in New York City and shall request each of 

  
 A-5 

 
them to provide a quotation of the rate offered by them at approximately 11:00 a.m., New York City time, on the interest determination date for loans in U.S. dollars to leading European banks
having an index maturity of three months for the applicable interest period in an amount of at least $1,000,000 that is representative of single transactions at that time. If three quotations are provided, LIBOR will be the arithmetic average of the
quotations provided. Otherwise, the rate of LIBOR for the next interest period will be set equal to the rate of LIBOR for the then current interest period. 

All percentages resulting from any calculation of any interest rate for this Security will be rounded, if necessary, to the nearest one hundred thousandth of
a percentage point, with five one-millionths of a percentage point rounded upward (e.g., 3.876545% (or .03876545) would be rounded to 3.87655% (or .0387655)), and all dollar amounts will be rounded to
the nearest cent, with one-half cent being rounded upward. 
 The interest rate on this Security will in no event be
higher than the maximum rate permitted by New York law as the same may be modified by United States law of general application. 
 Upon request from any
Holder of this Security, the calculation agent will provide the interest rate in effect on this Security, for the current interest period and, if it has been determined, the interest rate to be in effect for the next interest period. 

Interest on this Security will accrue from and including the most recent interest payment date to which interest has been paid or, if no interest has been
paid, from and including the date of issuance of the Securities. 
 Interest on this Security will be paid to but excluding the relevant interest payment
date. Interest on this Security will be computed on the basis of the actual number of days in an interest period and a 360-day year. 

If an interest payment date for this Security falls on a day that is not a business day, the interest payment date will be made on the next succeeding
business day unless such next succeeding business day would be in the following month, in which case, the interest payment date shall be, notwithstanding Section 113 of the Indenture, the immediately preceding business day. 

The Indenture contains provisions for defeasance at any time of (i) the entire indebtedness of the Company on this Security and (ii) certain
restrictive covenants and other covenants and the related Events of Default, upon compliance by the Company with certain conditions set forth therein, which provisions apply to this Security. In addition, upon the Company’s exercise of the
option provided in Section 1301 of the Indenture to obtain a covenant defeasance with respect to this Security, the Company shall be released from its obligations under Section 2.11 of the Eighth Supplemental Indenture (in addition to the
Sections provided in Section 1303 of the Indenture) with respect to this Security on and after the date the applicable conditions set forth in Section 1304 of the Indenture are satisfied. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company
and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the

  
 A-6 

 
time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver
by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security. 
 Except as set forth in Article Thirteen of the Indenture, no reference herein to the
Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Security at the times, place and
rate, and in the coin or currency, herein prescribed. 
 As provided in the Indenture and subject to certain limitations therein set forth, the transfer of
this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Security are payable,
duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or its attorney duly authorized in writing, and thereupon one or more new
Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

The Securities of this series are issuable only in registered form without coupons in denominations of $2,000.00 and multiples of $1,000.00 thereof. As
provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a different authorized denomination,
as requested by the Holder surrendering the same. 
 No service charge shall be made for any such registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this
Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue,
and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
 All terms used in this Security which are defined in
the Indenture shall have the meanings assigned to them in the Indenture. 

  
 A-7

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