VALMONT INDUSTRIES INC

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or complete description of all U.S. federal tax laws or regulations that may apply and does not address any local, state or other country laws. Therefore, no one should rely on this summary for individual tax compliance, planning or decisions. Participants in the ESPP should consult their own professional tax advisors concerning tax aspects of participation in the ESPP. Participant contributions to the ESPP are made on an after-tax basis. There is no taxable event on the purchase date with respect to shares of common stock purchased under the ESPP because such shares are purchased at their fair market value. However, any matching grant provided to a participant will be taxable compensation to the participant. Valmont will generally be entitled to a deduction at such time equal to the value of the matching grant to the participant, subject to the limitations of Section 162(m) of the Internal Revenue Code. Any further appreciation or depreciation in shares purchased or otherwise issued under the ESPP will be treated as capital gain or loss when the shares are sold by the participant. The capital gain or loss will be long-term if the participant has held the shares for more than one year or otherwise will be short-term.