Document:

exv10w5

 

     EXHIBIT 10.5

SUPPLEMENTAL PROFIT SHARING PLAN FOR

EMPLOYEES OF TRINITY INDUSTRIES, INC.

AND CERTAIN AFFILIATES

AS RESTATED EFFECTIVE JANUARY 1, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	ARTICLE I
	 	PURPOSE	 	 	1	 
	ARTICLE II
	 	DEFINITIONS, CONSTRUCTION, AND APPLICABILITY	 	 	2	 
	2.01
	 	Definitions	 	 	2	 
	2.02
	 	Construction	 	 	8	 
	2.03
	 	Applicability	 	 	8	 
	ARTICLE III
	 	PARTICIPATION AND SERVICE	 	 	9	 
	3.01
	 	Eligibility to Participate	 	 	9	 
	3.02
	 	Election to Participate	 	 	9	 
	3.03
	 	Service	 	 	11	 
	3.04
	 	Transfer	 	 	13	 
	ARTICLE IV
	 	CONTRIBUTIONS AND FORFEITURES	 	 	14	 
	4.01
	 	Employer Contributions	 	 	14	 
	4.02
	 	Participant Compensation Reduction	 	 	15	 
	4.03
	 	Forfeitures	 	 	16	 
	ARTICLE V
	 	ALLOCATIONS TO PARTICIPANTS' ACCOUNTS	 	 	18	 
	5.01
	 	Individual Accounts	 	 	18	 
	5.02
	 	Investment of Accounts	 	 	18	 
	5.03
	 	Account Adjustments	 	 	20	 
	5.04
	 	Stock Units	 	 	20	 
	ARTICLE VI
	 	DISTRIBUTION OF BENEFITS	 	 	23	 
	6.01
	 	General	 	 	23	 
	6.02
	 	Payments of Benefits	 	 	23	 
	6.03
	 	Vesting of Benefits	 	 	26	 
	6.04
	 	Death	 	 	28	 
	6.05
	 	In-Service Distributions	 	 	28	 
	6.06
	 	Election to Distribute Deferrals	 	 	29	 
	6.07
	 	Designation of Beneficiary	 	 	29	 
	ARTICLE VII
	 	NATURE OF PLAN; FUNDING	 	 	31	 
	7.01
	 	No Trust Required	 	 	31	 
	7.02
	 	Funding of Obligation	 	 	31	 

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	 	 	 	 	Page	 
	 
	ARTICLE VIII
	 	ADMINISTRATION	 	 	32	 
	8.01
	 	Appointment of Committee	 	 	32	 
	8.02
	 	Duties of Committee	 	 	32	 
	8.03
	 	Indemnification of Committee	 	 	32	 
	8.04
	 	Unclaimed Benefits	 	 	33	 
	ARTICLE IX
	 	MISCELLANEOUS	 	 	34	 
	9.01
	 	Nonguarantee of Employment	 	 	34	 
	9.02
	 	Nonalienation of Benefits	 	 	34	 
	9.03
	 	No Preference	 	 	34	 
	9.04
	 	Incompetence of Recipient	 	 	34	 
	9.05
	 	Texas Law to Apply	 	 	34	 
	9.06
	 	Claims Procedure/Arbitration	 	 	34	 
	9.07
	 	Reimbursement of Costs	 	 	35	 
	9.08
	 	Acceleration of Payment	 	 	36	 
	ARTICLE X
	 	AMENDMENTS OR TERMINATION OF PLAN	 	 	37	 
	10.01
	 	Amendment	 	 	37	 
	10.02
	 	Termination	 	 	37	 
	10.03
	 	Rights of Participants	 	 	37	 
	ARTICLE XI
	 	WITHDRAWING EMPLOYERS; TRANSFER TO SUCCESSOR PLAN	 	 	38	 
	11.01
	 	Withdrawing Employers	 	 	38	 
	11.02
	 	Transfer to Successor Plan	 	 	38	 
	11.03
	 	Compliance with Code Section 409A With Regard Article XI	 	 	39	 

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SUPPLEMENTAL PROFIT SHARING PLAN FOR EMPLOYEES OF

TRINITY INDUSTRIES, INC. AND CERTAIN AFFILIATES

AS RESTATED EFFECTIVE JANUARY 1, 2005

ARTICLE I

PURPOSE

     TRINITY INDUSTRIES, INC., a corporation organized and existing under the laws of the State of
Delaware (hereinafter, the “Company”), hereby restates the SUPPLEMENTAL PROFIT SHARING PLAN FOR
EMPLOYEES OF TRINITY INDUSTRIES, INC. AND CERTAIN AFFILIATES (hereinafter, the “Plan”), such
restatement to be effective as of January 1, 2005, or as otherwise stated herein;

WITNESSETH:

     WHEREAS, the Company has previously adopted and maintains the Plan to promote in certain of
its highly compensated employees and those of its affiliates the strongest interest in the
successful operation of the business and increased efficiency in their work and to provide an
opportunity for accumulation of funds for their retirement; and

     WHEREAS, it is intended that the Plan be “unfunded” for purposes of the Employee Retirement
Income Security Act of 1974 (hereinafter, “ERISA”); and

     WHEREAS, the Company now desires to amend and restate the Plan, effective January 1, 2005, or
as otherwise provided herein, to meet the applicable requirements of Section 409A of the Internal
Revenue Code of 1986 (the “Code”) and intends that the Plan be interpreted and administered in
accordance with Section 409A of the Code and any guidance issued thereunder.

     NOW, THEREFORE, the Company hereby agrees as follows:

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ARTICLE II

DEFINITIONS, CONSTRUCTION, AND APPLICABILITY

	2.01	 	Definitions
	 
	 	 	The following words and phrases, when used herein, unless their context clearly
indicates otherwise, shall have the following respective meanings:

	 	(a)	 	ACCOUNT: A Participant’s Compensation Reduction Contribution
Account, Matching Contribution Account, Additional Matching Contribution
Account and/or Discretionary Contribution Account, as the case may be.
	 
	 	(b)	 	ADDITIONAL MATCHING CONTRIBUTION: Any amount credited by an
Employer for a Plan Year to a Participant pursuant to Section 4.01(c) of the
Prior Plan in Plan Years prior to 2004.
	 
	 	(c)	 	ADDITIONAL MATCHING CONTRIBUTION ACCOUNT: The account
maintained for a Participant on the books of his Employer to which Additional
Matching Contributions and adjustments related thereto were credited in Plan
Years prior to 2004.
	 
	 	(d)	 	ADMINISTRATOR: Any person or persons appointed by the
Committee with responsibility for any portion or all of the day-to-day
operation of the Plan.
	 
	 	(e)	 	AFFILIATE: Any corporation (other than an Employer) which is
included within a controlled group of corporations (as defined in Code Section
414(b)) which includes an Employer; any trade or business (other than an
Employer), whether or not incorporated, which is under common control (as
defined in Code Section 414(c)) with an Employer; any organization (other than
an Employer), whether or not incorporated, which is a member of an affiliated
service group (as defined in Code Section 414(m)) which includes an Employer;
and any other entity required to be aggregated with an Employer pursuant to
regulations under Code Section 414(o).
	 
	 	(f)	 	ANNUAL INCENTIVE COMPENSATION: Any amount payable as an annual
bonus to a Participant pursuant to the Company’s incentive pay program.
	 
	 	(g)	 	AUTHORIZED LEAVE OF ABSENCE: Any absence authorized by an
Employer under the Employer’s standard personnel practices provided that all
persons under similar circumstances must be treated alike in the granting of
such Authorized Leaves of Absence and provided further that the Participant
returns within the period of authorized absence. An
absence due to service in the Armed Forces of the United States shall be

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	 	 	 	considered an Authorized Leave of Absence provided that the absence is
caused by war or other emergency, or provided that the Employee is required
to serve under the laws of conscription in time of peace, and further
provided that the Employee returns to employment with the Employer within
the period provided by law.

	 	(h)	 	AWARD COMPENSATION: All items taxable as the Participant’s
ordinary income under the Trinity Industries, Inc. 2004 Stock Option and
Incentive Plan and any prior version of such Plan; provided that Award
Compensation expressly shall not include income or gain attributable to
incentive stock options awarded thereunder.
	 
	 	(i)	 	BASE COMPENSATION: All amounts payable to a Participant which
constitute scheduled items of salary or wages.
	 
	 	(j)	 	BENEFICIARY: A person or persons (natural or otherwise)
designated by a Participant in accordance with the provisions of Section 6.07
to receive any death benefit which shall be payable under this Plan.
	 
	 	(k)	 	CHANGE IN CONTROL: Change in Control means the occurrence of
any event or transaction constituting a “change in ownership or effective
control” within the meaning of Treasury Regulations or other Internal Revenue
Service guidance promulgated pursuant to Section 409A(a)(2)(A)(v) of the Code.
The occurrence of a Change in Control will be determined and certified by the
Committee strictly in accordance with the foregoing sentence; the Committee may
not exercise discretion in applying the requirements of relevant Internal
Revenue Service guidance in the determination of the occurrence of a Change in
Control.
	 
	 	(l)	 	CODE: The Internal Revenue Code of 1986, as amended from time
to time.
	 
	 	(m)	 	COMMITTEE OR PLAN COMMITTEE: The persons appointed under the
provisions of Article VIII to administer the Plan.
	 
	 	(n)	 	COMPANY: TRINITY INDUSTRIES, INC., a corporation organized and
existing under the laws of the State of Delaware, or its successor or
successors.
	 
	 	(o)	 	COMPENSATION: Annual Incentive Compensation, Award Compensation
and/or Base Compensation paid to a Participant.
	 
	 	(p)	 	COMPENSATION REDUCTION CONTRIBUTION: An amount credited by an
Employer for the Plan Year to a Participant pursuant to Section 4.01(a) hereof.
	 
	 	(q)	 	COMPENSATION REDUCTION CONTRIBUTION ACCOUNT: The account
maintained for a Participant on the books of his Employer to

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	 	 	 	which Compensation
Reduction Contributions and adjustments related thereto are credited.
	 
	 	(r)	 	DISABLED OR DISABILITY. A Participant will be considered
Disabled for Plan purposes if the Participant:

	 	(1)	 	is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected
to last for a continuous period of not less than 12 months, or

	 	(2)	 	is, by reason of any medically determinable
physical or mental impairment which can be expected to result in death
or can be expected to last for a continuous period of not less than 12
months, receiving income replacement benefits for a period of not less
than 3 months under an accident and health plan sponsored by the
Employer.

	 	 	 	Any determination of Disability shall be made in accordance with the
requirements of Section 409A of the Code and any guidance issued thereunder.

	 	(s)	 	DISCRETIONARY CONTRIBUTIONS: Any amount credited by an Employer
for the Plan Year to a Participant pursuant to Section 4.01(d) hereof.
	 
	 	(t)	 	DISCRETIONARY CONTRIBUTION ACCOUNT: The account maintained for
a Participant on the books of his Employer to which Discretionary Contributions
and adjustments related thereto are credited.
	 
	 	(u)	 	EFFECTIVE DATE: Except where otherwise indicated herein,
January 1, 2005, the date on which the provisions of this amended and restated
Plan become effective.
	 
	 	(v)	 	ELAPSED-TIME EMPLOYMENT: With respect to an Employee, the
period beginning on his Employment Commencement Date (or Reemployment
Commencement Date, as the case may be) and ending on the date of his Severance
from Service. Such period shall be determined without regard to the actual
number of Hours of Employment completed by the Employee during such period.
Except to the extent otherwise permitted by the Committee in its sole
discretion, Elapsed-Time Employment completed with an Affiliate or a
Participating Employer prior to the date on which such Affiliate or Employer
was included within a controlled group of corporations (as defined in Code
Section 414(b)) which includes the Company shall not be recognized under this
Plan.
	 
	 	(w)	 	EMPLOYEE: Any individual on the payroll of an Employer (i)
whose wages from the Employer are subject to withholding for purposes of

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	 	 	 	Federal income taxes and for purposes of the Federal Insurance Contributions
Act, (ii) who is included within a “select group of management or highly
compensated employees,” as such term is used in Section 401(a)(1) of ERISA, and
(iii) who is designated by the Plan Committee as eligible to participate in
this Plan in accordance with Section 3.01 hereof.

	 	(x)	 	EMPLOYER or PARTICIPATING EMPLOYER: The Company and any
Affiliate of the Company to the extent that an Employee of such Affiliate is a
Participant hereunder.
	 
	 	(y)	 	EMPLOYMENT COMMENCEMENT DATE: The first date on which an
Employee completes an Hour of Employment.
	 
	 	(z)	 	ERISA: Public Law No. 93-406, the Employee Retirement Income
Security Act of 1974, as amended from time to time.
	 
	 	(aa)	 	EXTENDED ABSENCE EMPLOYEE: An Employee who is absent from his
Employer’s employment solely because of (i) the Employee’s pregnancy, (ii) the
birth of the Employee’s child, (iii) the placement of a child with the Employee
in connection with the adoption of the child by the Employee, or (iv) the care
of a child by the Employee during the period immediately following such child’s
birth to, or placement with, the Employee.
	 
	 	(bb)	 	FORFEITURES: The portion of a Participant’s Matching
Contribution Account, Additional Matching Contribution Account and
Discretionary Contribution Account, if any, which is forfeited because of a
Severance from Service before full vesting.
	 
	 	(cc)	 	HOUR OF EMPLOYMENT: Each hour (i) for which an Employee is on
an Authorized Leave of Absence or is directly or indirectly paid or entitled to
payment by his Employer for the performance of duties or for reasons other than
the performance of duties, or (ii) for which back-pay has been agreed to by the
Employer. Hours of Employment shall be determined from records maintained by
each Employer; provided, however, that an Employer may elect to determine Hours
of Employment for any classification of Employees which is reasonable,
nondiscriminatory and consistently applied, on the basis that Hours of
Employment include forty-five (45) Hours of Employment for each week or portion
thereof during which an Employee is credited with one (1) Hour of Employment.
Except to the extent otherwise permitted by the Committee in its sole
discretion, Hours of Employment completed with an Affiliate or a Participating
Employer prior to the date on which such Affiliate or Employer was included
within a controlled group of corporations (as
defined in Code Section 414(b)) which includes the Company shall not be
recognized under this Plan.

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	 	(dd)	 	INITIAL EFFECTIVE DATE: July 1, 1990, the date on which the
Plan was established.
	 
	 	(ee)	 	MATCHING CONTRIBUTION ACCOUNT: The account maintained for a
Participant on the books of his Employer to which Matching Employer
Contributions and adjustments related thereto are credited.
	 
	 	(ff)	 	MATCHING EMPLOYER CONTRIBUTION: Any amount credited by an
Employer for a Plan Year to a Participant pursuant to Section 4.01(b) hereof.
	 
	 	(gg)	 	PARTICIPANT: An Employee participating in the Plan in
accordance with the provisions of Sections 3.01 and 3.02 hereof.
	 
	 	(hh)	 	PARTICIPATION: The period commencing on the date on which an
Employee becomes a Participant and ending on the date on which the Employee
incurs a Break in Service (as defined in Section 3.03(d)).
	 
	 	(ii)	 	PERFORMANCE-BASED COMPENSATION: Compensation with respect to
which the amount of, or entitlement to, the compensation is contingent on the
satisfaction of pre-established organizational or individual performance
criteria relating to a performance period of at least twelve (12) consecutive
months in which the Participant performs services. Organizational or individual
performance criteria are considered pre-established if established in writing
by not later than ninety (90) days after the commencement of the period of
service to which the criteria relate, provided that the outcome is
substantially uncertain at the time the criteria are established.
	 
	 	(jj)	 	PLAN: The SUPPLEMENTAL PROFIT SHARING PLAN FOR EMPLOYEES OF
TRINITY INDUSTRIES, INC. AND CERTAIN AFFILIATES AS RESTATED EFFECTIVE JANUARY
1, 2005, the Plan set forth herein, as amended from time to time.
	 
	 	(kk)	 	PRIOR PLAN: The SUPPLEMENTAL PROFIT SHARING PLAN FOR EMPLOYEES
OF TRINITY INDUSTRIES, INC. AND CERTAIN AFFILIATES, as in effect prior to the
Effective Date.
	 
	 	(ll)	 	REEMPLOYMENT COMMENCEMENT DATE: The first date on which an
Employee completes an Hour of Employment upon his return to the employment of
the Employers after a Break in Service.
	 
	 	(mm)	 	RETIRE or RETIREMENT: Termination of employment after
attaining age 65 or, if later, the fifth anniversary of the Participant’s
Employment Commencement Date.
	 
	 	(nn)	 	SERVICE: A Participant’s period of employment with the
Employers determined in accordance with Section 3.03.

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	 	(oo)	 	SEVERANCE FROM SERVICE: With respect to an Employee, the later
of (1) or (2), where—

	 	(1)	 	is the earlier of (i) the date on which he
quits, or is discharged from, the employment of the Employers, or the
date of his retirement or death, or (ii) the first anniversary of the
first date of a period in which he remains absent from the employment
of the Employers, with or without pay, for any reason other than one
specified in (i), above, such as vacation, holiday, sickness,
Authorized Leave of Absence or layoff; and

	 	(2)	 	is, in the case of an Extended Absence
Employee, the second anniversary of such Employee’s absence.

	 	(pp)	 	SHORT PLAN YEAR: The period of time from April 1, 2001 through
December 31, 2001.
	 
	 	(qq)	 	STOCK UNIT: A deemed share of Company common stock, more fully
described in Section 5.04 hereof.
	 
	 	(rr)	 	TRUST (or TRUST FUND): The fund known as the TRINITY
INDUSTRIES, INC. SUPPLEMENTAL PROFIT SHARING AND DEFERRED DIRECTOR FEE TRUST,
maintained in accordance with the terms of the trust agreement, as from time to
time amended, which constitutes a part of this Plan.
	 
	 	(ss)	 	TRUSTEE: The corporation, individual or individuals appointed
to administer the Trust in accordance with the agreement governing the Trust.
	 
	 	(tt)	 	UNFORESEEABLE EMERGENCY. A severe financial hardship to the
Participant resulting from any of the following:

	 	(1)	 	an illness or accident of the Participant or
the illness or accident of the Participant’s spouse or dependent (as
defined in Section 152(a) of the Code);
	 
	 	(2)	 	loss of the Participant’s property due to
casualty; or
	 
	 	(3)	 	any other similar extraordinary and
unforeseeable circumstance arising as a result of events beyond the
Participant’s control.

	 	 	 	Any determination of Unforeseeable Emergency shall be made in accordance
with the requirements of Section 409A of the Code and any guidance issued
thereunder.

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	 	(uu)	 	VALUATION DATE: The last day of each month (or if no Company
stock is traded on such date, the immediately preceding trading date), and such
other dates as the Committee in its discretion may prescribe.
	 
	 	(vv)	 	YEAR or PLAN YEAR: The twelve (12)-month period beginning each
January 1 and ending on the next succeeding December 31.

	2.02	 	Construction
	 
	 	 	The masculine gender, where appearing in the Plan, shall be deemed to include the
feminine gender, unless the context clearly indicates to the contrary. The words
“hereof,” “herein,” “hereunder” and other similar compounds of the word “here” shall
mean and refer to the entire Plan and not to any particular provision or Section.
	 
	2.03	 	Applicability
	 
	 	 	The provisions of this Plan shall apply only to a Participant who terminates
employment on or after the Effective Date. In the case of a Participant who
terminates employment prior to the Effective Date, the rights and benefits, if any,
of such former Employee shall be determined in accordance with the provisions of the
Prior Plan, as in effect on the date on which his employment terminated.

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ARTICLE III

PARTICIPATION AND SERVICE

	3.01	 	Eligibility to Participate
	 
	 	 	The Committee shall make all determinations regarding an individual’s eligibility to
participate in the Plan. The Committee’s determination shall be final
notwithstanding that (i) an individual may have been told that he or she is entitled
to participate in the Plan, (ii) an individual may have been given Plan materials or
forms, or (iii) other actions may have been taken indicating that an individual may
participate.
	 
	 	 	Each Employee shall become a Participant on the date on which his or her initial
Compensation Reduction Agreement first becomes effective, provided that under no
circumstances shall an individual be an eligible Employee hereunder until the first
day of the calendar quarter immediately following his Employment Commencement Date.
	 
	 	 	Notwithstanding the preceding provisions of this Section 3.01, an Employee who was a
Participant under the Prior Plan shall continue as a Participant under this Plan, to
the extent provided hereunder. All references hereunder to such Participant’s
Compensation Reduction Agreement shall include his salary reduction agreement
executed under the Prior Plan.
	 
	3.02	 	Election to Participate
	 
	 	 	After having received a written explanation of the terms of and the benefits
provided under the Plan, each eligible Employee shall become a Participant only
after he or she (i) elects to participate in the Plan on such form or forms as the
Committee may provide and (ii) executes a Compensation Reduction Agreement in
accordance with the following.

	 	(a)	 	Compensation Reduction Contribution Elections.

	 	(1)	 	Deferrals of Base Compensation. With respect to
deferrals of Base Compensation, a Participant must file a Compensation
Reduction Agreement with the Administrator within the time period
established by the Administrator, but in all events no later than the
close of the calendar year immediately preceding the calendar year in
which the services to which the Agreement relates are performed. In the
Plan Year in which an Employee is first designated as eligible to
participate in the Plan, he or she must file a Compensation Reduction
Agreement with the Administrator within thirty (30) days after such
designation is made, and his or her election will relate only to Base
Compensation earned after his or her initial Compensation Reduction
Agreement is effective.

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	 	(2)	 	Deferrals of Annual Incentive Compensation and
Award Compensation. With respect to deferrals of Annual Incentive
Compensation which is Performance-Based Compensation, a Participant
must file a Compensation Reduction Agreement with the Administrator no
later than six months before the end of the period in which the
services to which the Agreement relates are performed. With respect to
deferrals of Annual Incentive Compensation which is not
Performance-Based Compensation, the Participant must file a
Compensation Reduction Agreement with the Administrator no later than
the close of the calendar year immediately preceding the calendar year
in which the services to which the Agreement relates are performed.
	 
	 	 	 	Elective deferrals of Award Compensation shall not be permitted
under the Plan on and after January 1, 2005.
	 
	 	(3)	 	Duration of Compensation Deferral Election.
Once a Participant has commenced participation in the Plan, if the
Participant fails to file a new election related to the deferral of
Compensation under the Plan, the Participant’s last valid election on
file with the Administrator will remain effective until subsequently
modified or revoked by the Participant in accordance with Section
4.02(b) hereof.

	 	(b)	 	Distribution Elections.

	 	(1)	 	Date on Which Payment is Made or Commences. A
Participant may not make an election regarding the date on which
payment shall be made or commence. Payment will be made or commence on
the date specified in Section 6.02(c) or (d) hereof, as applicable,
except to the extent a modification has been made in accordance with
Section 6.02(d).
	 
	 	(2)	 	Form of Distribution. The form of distribution
of a Participant’s Accounts shall be determined in accordance with the
Participant’s election under Section 6.02(a) hereof or, if Section
6.02(b) hereof is applicable, in accordance with such Section 6.02(b).
An election regarding the form of distribution of a Participant’s
Accounts shall be made by the Participant on the date on which the
Participant files his or her initial Compensation Reduction Agreement.
The form of payment so elected by the Participant shall be effective as
to all Contributions made by or on behalf of the Participant.
	 
	 	(3)	 	Modifications. Elections related to the form
of distribution may be modified only to the extent that such
modification is consistent with the requirements of Section 6.02(d)
hereof.

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	 	(c)	 	Reemployment of Former Participant. An active
Participant who incurs a Severance from Service and who is subsequently
reemployed by an Employer may reenter the Plan as an active Participant on his
Reemployment Commencement Date or on the first day of any of his next following
taxable years, but only if (i) he continues to qualify as an Employee within
the meaning of Section 2.01(w) hereof and (ii) prior to such date he shall have
again undertaken the actions specified in Section 3.02(a) and (b) hereof. In
the event that a Participant shall cease to qualify as an Employee within the
meaning of Section 2.01(w) hereof, his Participation shall thereupon cease but
he shall continue to accrue Service hereunder during the period of his
continued employment with the Employers.
	 
	 	(d)	 	Special Rule Related To Change in Control. Any
provisions of this Plan to the contrary notwithstanding, effective on and after
the date of a Change in Control, the term “Participant” shall be limited to
those individuals who satisfy the requirements set forth for participation in
this Plan and who were Participants in this Plan as of the date immediately
prior to the date of such Change in Control.

	3.03	 	Service
	 
	 	 	The amount of benefit payable to or on behalf of a Participant shall be determined
on the basis of his period of Service, in accordance with the following:

	 	(a)	 	In General. Subject to the Break in Service provisions
of paragraph (d) of this Section, an Employee’s Service shall equal the total
of his Elapsed-Time Employment. Service shall be counted in years and
completed days.

	 	(b)	 	Transfers from Affiliates. In the event that an
Employee who at any time was employed by an Affiliate either commences
employment with a Participating Employer, or returns to the employment of a
Participating Employer, then, except as otherwise provided below, such Employee
shall receive Service with respect to the period of his employment with such
Affiliate (to the extent not credited under paragraph (c) of this Section). In
applying the provisions of the preceding sentence—

	 	(1)	 	except to the extent otherwise permitted by the
Committee in its sole discretion, such Employee shall not receive
Service with respect to any period of employment with such Affiliate
completed prior to the date on which such Affiliate became an
Affiliate;

	 	(2)	 	the amount of such Service shall be determined
in accordance with paragraph (a) of this Section, as if such Affiliate
were a Participating Employer; and

	 	(3)	 	if such Employee incurs a Break in Service (as
defined in paragraph (d) of this Section and determined as if such
Affiliate

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	 	 	 	were a Participating Employer) prior to his commencement of
employment with the Participating Employer or return to the
employment of the Participating Employer, then the amount of such
Employee’s Service attributable to the period of his employment with
such Affiliate shall be determined in accordance with paragraph (d)
of this Section.

	 	(c)	 	Transfers to Affiliate. In the event that a
Participant who at any time was employed by a Participating Employer either
commences employment with an Affiliate, or returns to the employment of an
Affiliate, then, except as otherwise provided below, such Participant shall
receive Service with respect to the period of his employment with such
Affiliate (to the extent not credited under paragraph (b) of this Section). In
applying the provisions of the preceding sentence—

	 	(1)	 	the amount of such Service shall be determined
in accordance with paragraph (a) of this Section, as if such Affiliate
were a Participating Employer; and

	 	(2)	 	if such Participant incurs a Break in Service
(as defined in paragraph (d) of this Section and determined as if such
Affiliate were a Participating Employer) prior to his commencement of
employment with the Affiliate or return to the employment of the
Affiliate, then the amount of such Participant’s Service attributable
to his prior period of employment with the Participating Employer shall
be determined in accordance with paragraph (d) of this Section.

	 	(d)	 	Break in Service. An Employee who incurs a Severance
from Service and who fails to complete at least one (1) Hour of Employment
during the twelve (12)-month period beginning on the date of such Severance
from Service shall have a Break in Service. If, during the twelve (12)-month
period beginning on the date of an Employee’s Severance from Service, the
Employee shall return to the employment of a Participating Employer by
completing at least one (1) Hour of Employment within such twelve (12)-month
period, then such Employee will not have a Break in Service and shall receive
Service for the period beginning on the date of his Severance from Service and
ending on the date of his reemployment; provided, however, that in the case of
an Employee who is absent from the employment of the Participating Employers
for a reason specified in Section 2.01(oo)(1)(ii) hereof and who, prior to the
first anniversary of the first date of such absence, incurs a Severance from
Service for a reason specified in Section 2.01(oo)(1)(i) hereof, such Employee
shall receive Service only if he completes at least one (1) Hour of Employment
within the twelve (12)-month period beginning on the first date of such absence
and shall receive such Service only for the period beginning on the first day
of such absence and ending on the date of his reemployment. Upon

12

 

	 	 	 	incurring a Break in Service, an Employee’s rights and benefits under the
Plan shall be determined in accordance with his Service at the time of the
Break in Service. For a Participant who, at the time of a Break in Service,
satisfied any requirements of this Plan for vested benefits, his pre-break
Service shall, upon his Reemployment Commencement Date, be restored in
determining his rights and benefits under the Plan. For an Employee who, at
the time of a Break in Service, had not fulfilled such requirements, periods
of pre-break Service shall, upon his Reemployment Commencement Date, be
restored only if the consecutive periods of Break in Service were less than
the greater of (i) sixty (60) months or (ii) the total period of pre-break
Service.

	 	(e)	 	Special Rule for Participants After Initial Eligibility
Date. Notwithstanding the preceding provisions of this Section 3.03, the
Elapsed-Time Employment and Service of any Participant who failed to elect to
participate hereunder pursuant to Section 3.02 hereof prior to the date on
which he was first eligible to do so pursuant to Section 3.01 hereof shall be
determined as if his Employment Commencement Date were the later of (i) the
Initial Effective Date or (ii) the date on which he first completes an Hour of
Employment. In addition, in the case of a Participant who was not employed by
an Employer on the Initial Effective Date but was so employed prior to such
date, such prior period of employment shall not, under any circumstances, be
treated as Service unless such Participant elects to participate hereunder
pursuant to such Section 3.02 prior to the date on which he was first eligible
to do so pursuant to such Section 3.01.

	 	(f)	 	Special Rule for Extended Absence Employees.
Notwithstanding the preceding provisions of this Section 3.03, in the case of
an Extended Absence Employee, the period between the first and second
anniversaries of such Employee’s absence shall, under no circumstances, be
treated as a period of Service.

	3.04	 	Transfer
	 
	 	 	An Employee who is transferred between Participating Employers shall be as eligible
for Participation and benefits as in the absence of such transfer.

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ARTICLE IV

CONTRIBUTIONS AND FORFEITURES

	4.01	 	Employer Contributions
	 
	 	 	Employers shall credit Participant Accounts in accordance with the following:

	 	(a)	 	Compensation Reduction Contributions. For each Year,
each Employer shall credit the Compensation Reduction Contribution Account of
each of its Employees participating in the Plan with an amount agreed to be
credited by such Employer pursuant to a Compensation Reduction Agreement
entered into between the Employer and the Participant for such Year, as
provided in Section 4.02 hereof; provided that if such Participant is also a
participant in the Profit Sharing Plan for Employees of Trinity Industries,
Inc. and Certain Affiliates, such Participant must first have elected to
contribute the maximum permissible salary reduction contribution for the Year
to his salary reduction contribution account under such Profit Sharing Plan,
with such maximum permissible amount to be determined by reference to all
applicable limitations of (i) Code Section 401, (ii) the provisions of such
Profit Sharing Plan and (iii) other applicable law. The maximum amount that may
be deferred each Plan Year shall be established by the Administrator from time
to time. Such Compensation Reduction Agreement shall include a separate
deferral election for each of the following types of Compensation:

	 	(i)	 	Base Compensation;
	 
	 	(ii)	 	Annual Incentive Compensation;
	 
	 	(iii)	 	Performance-Based Compensation; and
	 
	 	(iv)	 	For Plan Years beginning prior to January 1,
2005, Award Compensation.

	 	(b)	 	Matching Employer Contributions. For each Plan Year,
each Employer shall credit a Matching Employer Contribution amount in the form
of cash to each of its Employees for whom an amount was credited pursuant to
paragraph (a) of this Section 4.01; provided, however, that no such Matching
Employer Contribution shall be credited prior to the date on which such
Employee completes one (1) year of Service. Such Matching Employer
Contribution, when added to the Forfeitures which have become available for
application as of the end of the Year pursuant to Section 4.03 hereof, shall be
equal to a percentage of that portion of the Participant’s Compensation
Reduction Contribution for such Year pursuant to Section 4.02 hereof which does
not exceed six percent (6%) of his Base Compensation plus Annual Incentive
Compensation for such Year, based on his years of Service as follows:

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	Years of Service	 	Applicable Percentage
	Less than 1
	 	 	0	%
	1 but less than 2
	 	 	25	%
	2 but less than 3
	 	 	30	%
	3 but less than 4
	 	 	35	%
	4 but less than 5
	 	 	40	%
	5 or more
	 	 	50	%

	 	 	 	For purposes of determining a Participant’s Matching Employer Contribution
under this paragraph (b), if a Participant’s Employment Commencement Date is
any date on or after January 1, 2001 and on or before March 31, 2001, and
such Participant is employed as of the last day of the Short Plan Year, he
shall be credited with a year of Service for such Short Plan Year.

	 	(c)	 	Limitations on Matching Contributions. Except in the
case of a Participant who Retires, dies or incurs a Disability during a Year,
no Matching Employer Contributions shall be credited to a Participant for a
Year unless such Participant is actively employed by an Employer on the last
day of such Year. In addition, no Matching Employer Contributions shall be
credited to Participants for a Year unless the Company’s earnings per share for
such Year are sufficient to cover dividends to stockholders; provided that in
no event shall a Matching Employer Contribution be made if the Company’s net
profits for such Year are less than Thirty-Three and one-third Cents ($.33-1/3)
per share; provided further, that the Board of Directors or the Human Resources
Committee of the Board of Directors, in its discretion, may elect to waive such
earnings requirement. In addition, and notwithstanding paragraph (b) of this
Section, the amount of Matching Employer Contribution credited to a Participant
for a Year under this Plan shall be reduced by the amount of any matching
contribution credited to the Participant for such Year under the Profit Sharing
Plan for Employees of Trinity Industries, Inc. and Certain Affiliates.

	 	(d)	 	Discretionary Contributions. In addition to the
contributions described above, for each Year an Employer may, but shall not be
required to, credit the Discretionary Contribution Account of any one or more
Participants in its employ during such Year with such amounts in cash as the
Employer may determine in its sole discretion.

	4.02	 	Participant Compensation Reduction

	 	(a)	 	General. Prior to commencement of participation
hereunder, a Participant shall have entered into a written Compensation
Reduction Agreement with his Employer in accordance with Section 3.02(a)
hereof. The terms of
such Compensation Reduction Agreement shall provide that the 

15

 

	 	 	 	Participant
agrees to accept a reduction in Compensation from the Employer. In
consideration of such agreement, the Employer will credit the Participant’s
Compensation Reduction Contribution Account for each Year with an amount
equal to the total amount by which the Participant’s Compensation from the
Employer was reduced during the Year pursuant to the Compensation Reduction
Agreement.

	 	(b)	 	Additional Election Requirements. In addition to the
requirements of Section 3.02(a) hereof, Compensation Reduction Agreements shall
be further governed by the following:

	 	(1)	 	A Compensation Reduction Agreement shall
specify the types of Compensation to which it will apply and shall be
effective during the period in which it is on file with the
Administrator, but in no event shall such Agreement be effective to (i)
reduce Award Compensation which is attributable to the exercise of
nonqualified stock options, the lapse of all restrictions on a grant of
restricted stock, the exercise of stock appreciation rights or the
payment of dividend equivalent rights and which is payable during the
six (6) month period immediately following the date of execution of the
agreement; or (ii) reduce payments of Base Compensation, Annual
Incentive Compensation or other types of Award Compensation for
services completed on or before the date on which such Compensation
Reduction Agreement is filed with the Administrator.

	 	(2)	 	A Compensation Reduction Agreement relating to
a Plan Year may not be modified or revoked once such Plan Year has
commenced except as provided in Section 6.05(b) hereof following a
Participant’s receipt of a Plan distribution due to an Unforeseeable
Emergency. Any modification to or termination of a Compensation
Reduction Agreement relating to a subsequent Plan Year must be made
prior to the close of the calendar year immediately preceding the
calendar year in which the services are performed and to which the
modified or terminated Agreement relates. If a Participant terminates
his Compensation Reduction Agreement as provided above, he may
subsequently elect to enter into another Compensation Reduction
Agreement, provided that he is at such time an eligible Employee and
provided further that such election is made with respect to a
succeeding calendar year in accordance with Section 3.02(a) hereof.

	4.03	 	Forfeitures
	 
	 	 	If, upon a Severance from Service, a Participant is not entitled to a distribution
of the entire balance in his Matching Contribution Account, Additional Matching
Contribution Account and/or Discretionary Contribution Account, then the 

16

 

	 	 	amount to
which the Participant is not entitled shall become a Forfeiture and shall be
deducted from the Participant’s Accounts at such time. The portion of the
Participant’s Accounts which is not a Forfeiture shall continue to be adjusted as
provided in Section 5.03(a) hereof until it is distributed in full. The Participant
shall receive a distribution of the nonforfeitable portion of his Accounts pursuant
to Article VI hereof.

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ARTICLE V

ALLOCATIONS TO PARTICIPANTS’ ACCOUNTS

	5.01	 	Individual Accounts
	 
	 	 	The Committee shall create and maintain adequate records to disclose the interest
hereunder of each Participant, Former Participant and Beneficiary. Such records
shall be in the form of individual accounts, and credits and charges shall be made
to such accounts in the manner herein described. A Participant shall have
appropriate separate Accounts, including a Compensation Reduction Contribution
Account, a Matching Contribution Account, an Additional Matching Contribution
Account (attributable to Additional Matching Contributions made on behalf of a
Participant for Plan Years beginning prior to January 1, 2004) and a Discretionary
Contribution Account.
	 
	5.02	 	Investment of Accounts

	 	(a)	 	Participant Election. The Committee shall credit each
Participant’s Accounts with earnings or losses according to the hypothetical
investment selections made by the Participant pursuant to his participation
agreement executed pursuant to Section 3.02 hereof. In accordance with certain
limitations on investment designations in Section 5.02(b) hereof, the Committee
shall adopt rules concerning the manner in which a Participant may elect to
change his hypothetical investment selections, provided that a Participant
shall be permitted to do so no less frequently than as of the first day of each
month. Effective for Plan Years beginning on and after January 1, 2004, the
earnings or losses attributable to a Participant’s Accounts shall be determined
as if the amounts credited to such Accounts were actually invested in Stock
Units, to the extent elected hereunder, and, to the extent not so elected or to
the extent prohibited hereunder, in the hypothetical investments selected under
the Participant’s participation agreement. In the case of a Participant
receiving installment payments under Article VI hereof, the Participant’s
Accounts shall continue to receive allocations of earnings or losses in
accordance with this subsection until his Accounts are paid in full. If a
Participant’s participation agreement fails to designate one or more
hypothetical investment selections, the Participant’s Accounts will be deemed
invested in the investment option designated as having the least investment
risk.
	 
	 	(b)	 	Investment Options. The Committee shall have sole and
absolute discretion with respect to the number and types of investment options
made available for selection by Participants pursuant to this Section, the
timing of Participant investment elections and the method by which adjustments
are made. The Committee may in its sole discretion refuse to recognize
Participant elections that it determines may cause the
Participant’s Accounts to become subject to the short-swing profit

18

 

	 	 	 	provisions of Section 16b of the Securities Exchange Act of 1934 and
establish special election procedures for Participants subject to Section 16
of such Act.
	 
	 	 	 	On and after January 1, 2004, amounts contributed to a Participant’s
Matching Contribution Account, Additional Matching Contribution Account, and
Discretionary Contribution Account shall not be treated as invested in Stock
Units. In addition, amounts credited to a Participant’s Matching
Contribution Account, Additional Matching Contribution Account, or
Discretionary Contribution Account and deemed invested in any other media
may not, on or after such date, be treated as transferred into or out of
deemed investments in Stock Units. Compensation Reduction Contributions may,
at the Participant’s election, be treated as invested in Stock Units, either
at the time such amounts are initially credited to the Participant’s
Compensation Reduction Contribution Account or following deemed investment
in other media; provided, however, that following a deemed investment in
Stock Units, such Contributions may not be treated as transferred out of
deemed investments in Stock Units.
	 
	 	 	 	The designation of investment options by the Committee shall be for the sole
purpose of adjusting Accounts pursuant to this Section, and except to the
extent that deemed investments in Stock Units were required hereunder for
Plan Years beginning prior to January 1, 2004, the provisions of this
Article V shall not obligate the Company or any of the Employers to invest
or set aside any assets for the payment of benefits hereunder; provided,
however, that the Company or an Employer may invest a portion of its general
assets in investments, including investments which are the same as or
similar to the investment indices designated by the Committee and selected
by Participants, but any such investments shall remain part of the general
assets of the Company or such Employer and shall not be deemed or construed
to grant a property interest of any kind to any Participant, designated
Beneficiary or estate. The Committee shall notify the Participants of the
investment indices available and the procedures for making and changing
elections.
	 
	 	(c)	 	Non-Binding Status of Elections. A Participant’s
hypothetical investment selections pursuant to the immediately preceding
paragraph shall be made solely for purposes of crediting earnings and/or losses
to his Accounts under Section 5.03 of this Plan. The Committee shall not, in
any way, be bound to actually invest any amounts set aside pursuant to Article
VII below to satisfy its obligations under this Plan in accordance with such
selections.

19

 

	5.03	 	Account Adjustments
	 
	 	 	The accounts of Participants, Former Participants and Beneficiaries shall be
adjusted in accordance with the following:

	 	(a)	 	Valuation Adjustments. As of each Valuation Date, the
amount credited to a Participant’s Accounts as of the preceding Valuation Date,
less any distributions or Forfeitures with respect to such Accounts since such
preceding Valuation Date, shall be adjusted by reference to the fluctuations in
value, taking into account gain, loss, expenses and other adjustments, of the
investments selected by the Participant for the investment adjustment of his or
her Accounts, with such adjustments to be made in the manner prescribed by the
Committee. Following such adjustment, the amounts credited to a Participant’s
Accounts shall be increased to take into account additional deferrals and
contributions credited to such Accounts since the preceding Valuation Date.
	 
	 	(b)	 	Compensation Reduction Contributions. The amount
credited pursuant to Section 4.01(a) hereof for a Year as a Compensation
Reduction Contribution shall be allocated to the Participant’s Compensation
Reduction Contribution Account as of the date on which such Compensation
Reduction Contribution would otherwise have been paid to the Participant as
Compensation.
	 
	 	(c)	 	Matching Contributions. Any amounts credited to a
Participant by an Employer pursuant to Section 4.01(b) hereof during a Year
shall be allocated to the Participant’s Matching Contribution Account at such
time as may be determined by the Employer in its absolute discretion.
	 
	 	(d)	 	Discretionary Contributions. Any amounts credited to a
Participant by an Employer pursuant to Section 4.01(d) hereof during a Year
shall be allocated to the Participant’s Discretionary Contribution Account at
the time determined by the Employer in its absolute discretion.

	5.04	 	Stock Units

	 	(a)	 	General. For purposes of calculating the number of
Stock Units credited or deemed credited to a Participant’s Compensation
Reduction Contribution Account pursuant to Section 5.03(b) hereof, and, for
Plan Years beginning prior to January 1, 2004, Section 5.03(d) hereof, the
price of a Stock Unit shall be equal to one hundred percent (100%) of the
closing price on the New York Stock Exchange of a share of the Company’s common
stock on the date on which the Stock Units are credited or deemed credited to
the Participant’s Accounts (or if no shares of the Company’s common stock are
traded on such date, on the immediately preceding trading date). For Plan
Years beginning prior to January 1, 2004, for purposes of calculating the
number of Stock Units

20

 

	 	 	 	credited to a Participant’s Matching Contribution Account or Additional
Matching Contribution Account, the price of a Stock Unit shall be equal to
one hundred percent (100%) of the average daily closing price on the New
York Stock Exchange of a Share of the Company’s common stock for the Year
with respect to which the Stock Units are credited to the Participant’s
Accounts, provided that for Stock Units credited with respect to the Year
ending March 31, 2000, such average daily closing price shall be calculated
for the period beginning on January 1, 2000 and ending on such March 31,
2000.

	 	(b)	 	Voting Rights. A Participant shall not be entitled to
any voting rights with respect to the Stock Units credited or deemed credited
to his Accounts.
	 
	 	(c)	 	Dividends. To the extent that a dividend is paid on
the Company’s common stock, the Committee shall credit to the Accounts of each
Participant whose Accounts are invested or deemed invested in Stock Units an
amount in cash equal to the value of such dividends.
	 
	 	(d)	 	Dilution and Other Adjustments. In the event of any
change in the outstanding shares of common stock of the Company by reason of
any stock dividend, split, spin-off, recapitalization, merger, consolidation,
combination, extraordinary dividend, exchange of shares or other similar
change, the Committee shall adjust the number or kind of Stock Units then
allocated or deemed allocated to the Participants’ Accounts as follows:

	 	(1)	 	Subject to any required action by stockholders,
the number of Stock Units shall be proportionately adjusted for any
increase or decrease in the number of issued shares of the Company’s
common stock resulting from (i) a subdivision or consolidation of
shares, (ii) the payment of a stock dividend or (iii) any other
increase or decrease in the number of shares effected without receipt
of consideration by the Company.
	 
	 	(2)	 	In the event of a change in the shares of the
Company’s common stock as presently constituted, which is limited to a
change of par value into the same number of shares with a different par
value or without par value, the shares of the Company’s common stock
resulting from any such change shall be deemed to be the shares of
common stock within the meaning of this Plan.

	 	 	Any adjustments made by the Committee pursuant to this Section 5.04 shall be final,
binding, and conclusive.
	 
	 	 	Except as hereinbefore provided in this Section 5.04, a Participant to whose Account
Stock Units are allocated shall have no rights by reason of (i) any subdivision or
consolidation of the Company’s stock or securities, (ii) the payment of any stock
dividend or (iii) any other increase or decrease in the

21

 

	 	 	number of shares of stock of any class or by reason of any dissolution, liquidation,
reorganization, merger, or consolidation or spinoff of assets or stock of another
corporation, and any issuance by the Company of additional shares of stock (of any
class), or securities convertible into shares of stock (of any class), shall not
affect the number of Stock Units allocated to such Participant’s Accounts under this
Plan.

22

 

ARTICLE VI

DISTRIBUTION OF BENEFITS

	6.01	 	General
	 
	 	 	Within thirty (30) days following a Participant’s termination of employment, the
Committee (i) shall certify to the Trustee or the Treasurer of the Employer, as
applicable, the total amount of the allocations to the credit of the Participant on
the books of each Employer by which the Participant was employed at a time when
amounts were credited by such Employer to his Accounts and the Participant’s
nonforfeitable interest in such Accounts, and (ii) shall determine whether the
payment of the amounts credited to the Participant’s Accounts under the Plan is to
be paid directly by the applicable Employer, from the Trust Fund, or by a
combination of such sources (except to the extent that the provisions of the Trust
specify payment from the Trust Fund).
	 
	6.02	 	Payments of Benefits
	 
	 	 	Payment of the nonforfeitable portion of the amounts credited to a Participant’s
Accounts shall be made in accordance with the following provisions:

	 	(a)	 	Death, Disability or Retirement. Payments made with
respect to a Participant’s termination of employment on account of death,
Disability or Retirement, shall be made in one or more of the following forms,
as previously elected by the Participant in accordance with Section 3.02(b)
hereof:

	 	(1)	 	In a lump sum; or
	 
	 	(2)	 	In annual periodic payments for the number of
years elected by the Participant, not in excess of 20. Each payment
shall be in an amount equal to a fraction of the Participant’s Account,
where such fraction for each payment shall be one (1) divided by the
number of payments remaining (including the current payment), and in
which event the unpaid balance shall continue to be adjusted as
provided in Section 5.03(a) hereof until it is distributed in full.
For purposes of determining the amount of each payment, if a payment
will be made before the fifteenth day of a given month, the
Participant’s Account will be valued as of the first day of the month
in which payment is made; if a payment will be made after the fifteenth
day of a given month but before the last day of such month, the
Participant’s Account will be valued as of the 15th day of
the month in which payment is made. In accordance with Treasury
Regulation Section 1.409A-2(b)(2)(iii) and (iv) and for purposes of
Section 6.02(d) hereof, an election for distribution in

23

 

	 	 	 	the form of periodic payments shall be treated as an election of a
series of separate payments.

	 	 	 	In the absence of a timely election as to the form of distribution under
Section 3.02(b) hereof, all payments made with respect to a Participant’s
termination of employment on account of death, Disability or Retirement
shall be in the form of a lump sum.
	 
	 	 	 	The Administrator shall permit all Participants participating in the Plan in
2005 to make a distribution election on or before December 31, 2005, and if
a Participant files a modified distribution election on or before such date,
such election shall be treated as if it had been made at the time of the
initial deferral election; such an election shall not be treated as a change
in the form of a payment under Section 409A(a)(4) of the Code or an
acceleration of a payment under Section 409A(a)(3) of the Code and shall not
be required to meet the requirements of Section 6.02(d) hereof.
	 
	 	 	 	Notwithstanding the preceding, if an eligible Employee is participating in
the Plan in 2006 and desires to modify a previously-filed distribution
election, he or she must modify such an election and file it with the
Administrator on or before December 31, 2006; provided, however, that a
Participant may not file a modified distribution election in 2006 that has
the effect of deferring payment of amounts the Participant would otherwise
receive in 2006 or cause payments to be made in 2006 that would otherwise be
made subsequent to 2006. Such an election shall not be treated as a change
in the form of a payment under Section 409A(a)(4) of the Code or an
acceleration of a payment under Section 409A(a)(3) of the Code and shall not
be required to meet the requirements of Section 6.02(d) hereof.
	 
	 	 	 	Notwithstanding the preceding, if an eligible Employee is participating in
the Plan in 2007 and desires to modify a previously-filed distribution
election, he or she must modify such an election and file it with the
Administrator on or before December 31, 2007; provided, however, that a
Participant may not file a modified distribution election in 2007 that has
the effect of deferring payment of amounts the Participant would otherwise
receive in 2007 or cause payments to be made in 2007 that would otherwise be
made subsequent to 2007. Such an election shall not be treated as a change
in the form of a payment under Section 409A(a)(4) of the Code or an
acceleration of a payment under Section 409A(a)(3) of the Code and shall not
be required to meet the requirements of Section 6.02(d) hereof.
	 
	 	 	 	The Committee shall, as of the last day of the calendar quarter within which
the Participant terminates employment, certify to the Trustee or the
Treasurer of the Employer, as applicable, the method of payment selected by
the Participant.

24

 

	 	(b)	 	Termination of Employment. Payments with respect to a
Participant’s termination of employment for reasons other than death,
Disability or Retirement shall be made in the form of a lump sum.
	 
	 	(c)	 	Time Payment is Made or Commences.

	 	(1)	 	If a Participant terminates employment for a
reason other than death or Disability, payment of all vested amounts
credited to a Participant’s Accounts shall be made or commence on the
first business day following the date that is six months from the date
on which the Participant separated from service. Elections to delay
payment beyond such date are not permitted except as may be permitted
in accordance with Section 6.02(d) hereof.
	 
	 	(2)	 	If a Participant terminates employment due to
Disability or death, payment of all vested amounts credited to the
Participant’s Accounts shall be made or commence sixty (60) days
following the date on which the Participant terminates employment.
	 
	 	(3)	 	In the case of annual installment payments made
pursuant to Section 6.02(a)(2) hereof, payments made subsequent to the
first payment in each succeeding calendar year shall be made in the
same calendar quarter as the first payment.

	 	 	 	This Plan shall be deemed to authorize the payment of all or any portion of
a Participant’s benefits from the Trust Fund to the extent such payment is
required by the provisions of the Trust; provided, however, that the time
and form of distribution shall, in all events, be made as otherwise
determined under the terms of the Plan. Payments shall be made in cash or,
to the extent that any amount to be distributed has been invested or deemed
invested in Stock Units, in common stock of the Company; provided that any
amount invested or deemed invested in fractional shares shall, in all
events, be paid in cash.

	 	(d)	 	Modification that Changes Form of Payment.
	 
	 	 	 	Except to the extent otherwise provided in Section 6.02(a) hereof, a
modification of a Participant’s previous election related to the form of
distribution under Section 6.02(a) hereof is ineffective unless all of the
following requirements are satisfied:

	 	(1)	 	Such modification may not be effective for at
least twelve (12) months after the date on which the modification is
filed with the Administrator.
	 
	 	(2)	 	Except in the case of modifications relating to
distributions on account of death, Disability, or Unforeseeable
Emergency, the modification must provide that payment will not commence
for at

25

 

	 	 	 	least five (5) years from the date payment would otherwise have been
made or commenced.

	 	(3)	 	Such a modification may not be made less than
twelve (12) months prior to the date of the first otherwise scheduled
payment.
	 
	 	(4)	 	Such modification may not permit acceleration
of the time or schedule of any payment under the Plan, except as may be
permitted pursuant to applicable Treasury Regulations.

	 	(e)	 	Notwithstanding the preceding provisions of this Section 6.02,
if at any time the Participant’s vested interest in the Plan and any other
non-qualified, defined contribution plan sponsored by his Employer and in which
the Participant participates is less than the applicable dollar amount under
Code Section 402(g)(1)(B), the Committee shall distribute such interest to the
Participant in one lump sum, provided that the following requirements are
satisfied:

	 	(1)	 	The payment must accompany the termination of
the Participant’s entire interest in both the Plan and all similar
plans or arrangements that would constitute a nonqualified deferred
compensation plan under Treasury Regulation Section 1.409A-1(c); and
	 
	 	(2)	 	No election must have been provided to the
Participant with respect to the receipt of the payment.

	 	(f)	 	Prior Plan Elections. Notwithstanding the preceding
provisions of this Section 6.02 and with respect to an Employee who was a
Participant in the Plan in 1999, such Participant’s election with respect to
the form of payment made pursuant to the provisions of the Plan in effect at
that time shall remain in effect unless modified by the Participant in the
manner described in paragraphs (a) or (d) of this Section 6.02.

	6.03	 	Vesting of Benefits

	 	(a)	 	Compensation Reduction Contribution Account. A
Participant is 100% vested in his Compensation Reduction Contribution Account
at all times.
	 
	 	(b)	 	Death or Disability. If a Participant’s termination of
employment is attributable to his death or Disability, he shall be entitled to
the entire amount then credited to his Accounts.
	 
	 	(c)	 	Termination of Employment For Reasons Other than Death or
Disability.

	 	(1)	 	Additional Matching Contribution
Account. If a Participant’s termination of employment is not
attributable to his death or Disability and he has an Additional
Matching Contribution

26

 

	 	 	 	Account to his credit, he shall be entitled to amounts then credited
to his Additional Matching Contribution Account to the extent that
there have elapsed at least two (2) Plan Years following the end of
the Plan Year for which the Additional Matching Contribution was
made; provided, however, that if the Participant terminates
employment by reason of Retirement, the Committee may, in its sole
discretion, deem the Participant to be entitled to the entire amount
then credited to his Additional Matching Contribution Account;
provided, further, that upon the occurrence of a Change in Control,
the Participant shall be entitled to the entire amount then credited
to his Additional Matching Contribution Account.

	 	(2)	 	Other Accounts. If a Participant’s
termination of employment is not attributable to his death or
Disability, he shall be entitled to a “vested percentage” of the
amounts then credited to his Matching Contribution Account and
Discretionary Contribution Account, if any, based on his years of
Service as follows:

	 	 	 	 	 	 	 	 	 
	 	 	Vested	 	Forfeited
	Years of Service	 	Percentage	 	Percentage
	 	 	 	 	 	 	 	 	 
	Less than 1
	 	 	0	%	 	 	100	%
	1 but less than 2
	 	 	20	%	 	 	80	%
	2 but less than 3
	 	 	40	%	 	 	60	%
	3 but less than 4
	 	 	60	%	 	 	40	%
	4 but less than 5
	 	 	80	%	 	 	20	%
	5 or more
	 	 	100	%	 	 	0	%

	 	 	 	; provided, however, that if the Participant terminates employment by
reason of Retirement, the Committee may, in its discretion, authorize
up to full vesting of the entire amount then credited to such
Accounts; provided, further, that upon the occurrence of a Change in
Control, the Participant shall under all circumstances be entitled to
the entire amount then credited to such Accounts. Notwithstanding the
preceding provisions of this subparagraph (2), for amounts credited
to a Participant’s Matching Contribution Account and Discretionary
Contribution Account, if any, pursuant to the terms of the Prior
Plan, if the Participant’s termination of employment is attributable
to Retirement, he shall under all circumstances be entitled to one
hundred percent (100%) of such amounts.

	 	(d)	 	Amount Credited. For purposes of this Section, the
amount credited to a Participant’s Accounts at termination of employment shall
include any amounts to be credited pursuant to Section 4.01 hereof for the Year
of termination of employment but not yet allocated.

27

 

	6.04	 	Death
	 
	 	 	If a Participant dies while in the service of an Employer, or after termination of
employment with the Employers and prior to the complete distribution of all amounts
payable to him under the Plan, any remaining amounts payable to the Participant
hereunder shall be payable to his Beneficiary. The Committee shall cause the
Trustee (to the extent provided in the Trust) or the Treasurer of the Employer, as
applicable, to pay to such Beneficiary all of the amounts then standing to the
credit of the Participant in his Accounts, with such payment to be made at the time
and in the manner specified in Section 6.02 hereof.
	 
	6.05	 	In-Service Distributions
	 
	 	 	No amounts credited to a Participant’s Accounts shall be distributed to or on behalf
of the Participant prior to the occurrence of one of the events specified in the
preceding provisions of this Article VI, except as follows:

	 	(a)	 	Designated Distributions. Prior to the beginning of a calendar
year, a Participant may elect that all or any portion of the amount of any
Compensation Reduction Contribution to be credited to the Participant’s
Compensation Reduction Contribution Account during such calendar year, be
distributed to the Participant in the form of a lump sum in a subsequent
calendar year designated by the Participant, which subsequent calendar year
shall not be earlier than the third calendar year following the calendar year
for which the election is made. Such an election shall be irrevocable.
Distributions made pursuant to this paragraph shall be made in September of the
designated year. In the event of the Participant’s termination of employment
for any reason prior to the designated year, the election hereunder shall be
void and of no effect and distribution of the Participant’s vested Accounts
shall be made as provided in Section 6.02.
	 
	 	 	 	An election for distribution as described in this Section 6.05(a) shall not
be permitted hereunder on or after January 1, 2008. Any such election made
prior to January 1, 2008, shall remain in effect except to the extent
otherwise provided in this Section 6.05(a).
	 
	 	(b)	 	Unforeseeable Emergency. A distribution may be made to or on
behalf of a Participant prior to his or her termination of employment to the
extent that the Participant demonstrates, to the satisfaction of the Committee,
that he or she has encountered an Unforeseeable Emergency. The amount
distributed to a Participant on account of an Unforeseeable Emergency may not
exceed the amount necessary to satisfy such Emergency, plus amounts necessary
to pay taxes reasonably anticipated as a result of the distribution, after
taking into account the extent to which such hardship is or may be relieved
through reimbursement or compensation by insurance or otherwise or by
liquidation of the Participant’s assets (to the extent the liquidation of such
assets would not itself cause severe financial hardship).

28

 

	 	 	 	A Participant’s Compensation Reduction Agreement shall be terminated as soon
as administratively feasible following the Participant’s receipt of a
distribution due to Unforeseeable Emergency.

	6.06	 	Election to Distribute Deferrals
	 
	 	 	Effective January 1, 2005, a Participant may make a one-time election to cause the
distribution of deferrals credited to the Plan on his or her behalf by his or her
Employer for Plan Years ending on or before December 31, 2004. Such election shall
be made in a manner that is approved by the Committee and communicated to
Participants and shall be subject to the following:

	 	(a)	 	Applicability. An election made under this Section shall be
effective with respect to all vested amounts credited to the Participant’s
Accounts for all Plan Years of participation ending on or prior to December 31,
2004. A partial cancellation shall not be permitted. An election made under
this Section 6.06 specifically shall not affect contributions made on behalf of
the Participant for any Plan Year ending on or after December 31, 2005.
	 
	 	(b)	 	Revocation, Alteration, and Expiration. A Participant may not
revoke, modify, or otherwise alter an election made under this Section. The
ability to make an election under this Section shall expire on December 31,
2005.
	 
	 	(c)	 	Distribution. Upon making an election under this Section, all
vested amounts credited to the Participant’s Accounts as of December 31, 2004,
and accumulated earnings on such amounts shall be distributed as soon as
administratively feasible.
	 
	 	(d)	 	Tax Consequences. The Participant must acknowledge that the
full amount subject to his or her election will be included in his or her
taxable income for his or her taxable year ending on December 31, 2005.
	 
	 	(e)	 	Compliance with Code Section 409A. This Section 6.06 is
intended to be administered in good faith compliance with the provisions of
Internal Revenue Code Section 409A, any Regulations issued thereunder, and
Internal Revenue Service Notice 2005-1. This Section may be amended or
otherwise modified only to the extent that such amendment or modification
complies with Code Section 409A.

	6.07	 	Designation of Beneficiary
	 
	 	 	Each Participant from time to time may designate any person or persons (who may be
designated contingently or successively and who may be an entity other than a
natural person) as his Beneficiary or Beneficiaries to whom his Plan
benefits are paid if he dies before receipt of all such benefits. Each Beneficiary
designation shall be on a form prescribed by the Committee and shall be effective
only when filed with the Committee during the Participant’s lifetime. Each
Beneficiary designation filed with the Committee shall cancel all Beneficiary

29

 

	 	 	designations previously filed with the Committee. The revocation of a Beneficiary
designation, no matter how effected, shall not require the consent of any designated
Beneficiary.

	 	 	If any Participant fails to designate a Beneficiary in the manner provided herein,
or if the Beneficiary designated by a deceased Participant dies before him or before
complete distribution of the Participant’s benefits, the Committee, in its sole
discretion, may direct the Trustee to distribute such Participant’s benefits (or the
balance thereof) to his surviving spouse or to either:

	 	(a)	 	any one or more of the next of kin of such Participant, and in
such proportions as the Committee determines; or
	 
	 	(b)	 	the estate of the last to die of such Participant and his
Beneficiary or Beneficiaries.

30

 

ARTICLE VII

NATURE OF PLAN; FUNDING

	7.01	 	No Trust Required
	 
	 	 	The adoption of this Plan and the segregation of amounts by the Employers with which
to discharge their obligations hereunder shall not be deemed to create a trust;
legal and equitable title to any funds so set aside shall remain with the Employers,
and any recipient of benefits hereunder shall have no security or other interest in
such funds. Any and all funds so set aside shall remain subject to the claims of
the general creditors of the Employers, present and future. This provision shall
not require the Employers to set aside any funds, but the Employers may set aside
funds if they choose to do so.
	 
	7.02	 	Funding of Obligation
	 
	 	 	Section 7.01 above to the contrary notwithstanding, the Employers may elect to
transfer assets to the Trust, the provisions of which shall at all times require the
use of the Trust’s assets to satisfy claims of an Employer’s general unsecured
creditors in the event of such Employer’s insolvency and direct that no Participant
shall at any time have a prior claim to such assets. The assets of the Trust shall
not be deemed to be assets of this Plan.

31

 

ARTICLE VIII

ADMINISTRATION

	8.01	 	Appointment of Committee
	 
	 	 	The Board of Directors of the Company shall appoint a Plan Committee to administer,
construe and interpret the Plan. Such Committee, or such successor Committee as may
be duly appointed by such Board of Directors, shall serve at the pleasure of the
Board of Directors. All usual and reasonable expenses of the Committee shall be
paid by the Employers. Decisions of the Committee with respect to any matter
involving the Plan shall be final and binding on the Company, its shareholders, each
Employer and all officers and other executives of the Employers. For purposes of
ERISA, the Committee shall be the “plan administrator.”
	 
	8.02	 	Duties of Committee
	 
	 	 	The Committee shall maintain complete and adequate records pertaining to the Plan,
including but not limited to Participants’ Accounts, amounts transferred to the
Trust, reports from the Trustee and all other records that shall be necessary or
desirable in the proper administration of the Plan. The Committee shall furnish the
Trustee such information as is required to be furnished by the Committee or the
Company pursuant to the Trust. The Committee may employ such persons or appoint
such agents to assist it in the performance of its duties as it may deem
appropriate, including the Administrator. If a member of the Committee is a
Participant hereunder, such Committee member shall be precluded from participation
in any decision relative to his benefits under the Plan.
	 
	8.03	 	Indemnification of Committee
	 
	 	 	The Company (the “Indemnifying Party”) hereby agrees to indemnify and hold harmless
the members of the Committee and the Administrator (the “Indemnified Parties”)
against any losses, claims, damages or liabilities to which any of the Indemnified
Parties may become subject to the extent that such losses, claims, damages or
liabilities or actions in respect thereof arise out of or are based on any act or
omission of the Indemnified Party in connection with the administration of this Plan
(other than any act or omission of such Indemnified Party constituting gross
negligence or willful misconduct), and will reimburse the Indemnified Party for any
legal or other expenses reasonably incurred by him or her in connection with
investigating or defending against any such loss, claim, damage, liability or
action. Promptly after receipt by the Indemnified Party of notice of the
commencement of any action or proceeding with respect to any loss, claim, damage or
liability against which the Indemnified Party believes he or she is indemnified, the
Indemnified Party shall, if a claim with respect thereto is to be made against the
Indemnifying Party, notify the Indemnifying Party in writing of
the commencement thereof; provided, however, that the omission so to notify the

32

 

	 	 	Indemnifying Party shall not relieve it from any liability which it may have to the
Indemnified Party to the extent the Indemnifying Party is not prejudiced by such
omission. If any such action or proceeding shall be brought against the Indemnified
Party, and it shall notify the Indemnifying Party of the commencement thereof, the
Indemnifying Party shall be entitled to participate therein, and, to the extent that
it shall wish, to assume the defense thereof, with counsel reasonably satisfactory
to the Indemnified Party, and, after notice from the Indemnifying Party to the
Indemnified Party of its election to assume the defense thereof, the Indemnifying
Party shall not be liable to such Indemnified Party for any legal or other expenses
subsequently incurred by the Indemnified Party in connection with the defense
thereof other than reasonable costs of investigation or reasonable expenses of
actions taken at the written request of the Indemnifying Party. The Indemnifying
Party shall not be liable for any compromise or settlement of any such action or
proceeding effected without its consent, which consent will not be unreasonably
withheld.

	8.04	 	Unclaimed Benefits
	 
	 	 	During the time when a benefit hereunder is payable to any Participant or
Beneficiary, the Committee may, at its own instance, mail by registered or certified
mail to such Participant or Beneficiary, at his last known address, a written demand
for his then address, or for satisfactory evidence of his continued life, or both.
If such information is not furnished to the Committee within twelve (12) months from
the mailing of such demand, then the Committee may, in its sole discretion, declare
such benefit, or any unpaid portion thereof, suspended, with the result that such
unclaimed benefit shall be treated as a Forfeiture for the Year with or within which
such twelve (12)-month period ends, but shall be subject to restoration through an
Employer contribution if the lost Participant or Beneficiary later files a claim for
such benefit.

33

 

ARTICLE IX

MISCELLANEOUS

	9.01	 	Nonguarantee of Employment
	 
	 	 	Nothing contained in this Plan shall be construed as a contract of employment
between any Employer and any Employee, or as a right of any Employee to be continued
in the employment of any Employer, or as a limitation on the right of an Employer to
discharge any of its Employees, with or without cause.
	 
	9.02	 	Nonalienation of Benefits
	 
	 	 	Benefits payable under this Plan shall not be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment,
execution, or levy of any kind, either voluntary or involuntary, prior to actually
being received by the person entitled to the benefit under the terms of the Plan;
and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber,
charge or otherwise dispose of any right to benefits payable hereunder shall be
void.
	 
	9.03	 	No Preference
	 
	 	 	No Participant shall have any preference over the general creditors of an Employer
in the event of such Employer’s insolvency.
	 
	9.04	 	Incompetence of Recipient
	 
	 	 	If the Committee receives evidence satisfactory to it that any person entitled to
receive a payment hereunder is, at the time the benefit is payable, physically,
mentally or legally incompetent to receive such payment and to give a valid receipt
therefor, and that an individual or institution is then maintaining or has custody
of such person and that no guardian, committee or other representative of the estate
of such person has been duly appointed, the Committee may direct that such payment
be paid to such individual or institution maintaining or having custody of such
person, and the receipt of such individual or institution shall be valid and a
complete discharge for the payment of such benefit.
	 
	9.05	 	Texas Law to Apply
	 
	 	 	THIS PLAN SHALL BE CONSTRUED AND ENFORCED UNDER THE LAWS OF THE STATE OF TEXAS
EXCEPT TO THE EXTENT PREEMPTED BY FEDERAL LAW.
	 
	9.06	 	Claims Procedure/Arbitration
	 
	 	 	If any person (hereinafter called the “Claimant”) feels that he or she is being
denied a benefit to which he or she is entitled under this Plan, such Claimant may

34

 

	 	 	file a written claim for said benefit with the Committee. Within sixty (60) days
following the receipt of such claim the Committee shall determine and notify the
Claimant as to whether he or she is entitled to such benefit. Such notification
shall be in writing and, if denying the claim for benefit, shall set forth the
specific reason or reasons for the denial, make specific reference to the pertinent
provisions of this Plan, and advise the Claimant that he or she may, within sixty
(60) days following the receipt of such notice, in writing request to appear before
the Committee or its designated representative for a hearing to review such denial.
Any such hearing shall be scheduled at the mutual convenience of the Committee or
its designated representative and the Claimant, and at any such hearing the Claimant
and/or his or her duly authorized representative may examine any documents relevant
to the benefit claim and present evidence and arguments to support the granting of
the benefit being claimed. The final decision of the Committee with respect to the
claim being reviewed shall be made within sixty (60) days following the hearing
thereon, and the Committee shall in writing notify the Claimant of said final
decision, again specifying the reasons therefor and the pertinent provisions of this
Plan upon which said final decision is based. The final decision of the Committee
shall be conclusive and binding on all parties having or claiming to have an
interest in the matter being reviewed.

	 	 	Any dispute or controversy arising out of, or relating to, the payment of benefits
pursuant to this Plan shall be settled by arbitration in Dallas, Texas (or, if
applicable law requires some other forum, then such other forum) in accordance with
the rules then obtaining of the American Arbitration Association. The District
Court of Dallas County, Texas or, as the case may be, the United States District
Court for the Northern District of Texas shall have jurisdiction for all purposes in
connection with any such arbitration. Any process or notice of motion or other
application to either of said courts, and any paper in connection with arbitration,
may be served by certified mail, return receipt requested, or by personal service or
in such other manner as may be permissible under the rules of the applicable court
or arbitration tribunal, provided a reasonable time for appearance is allowed.
Arbitration proceedings must be instituted within one (1) year after the claimed
breach occurred, and the failure to institute arbitration proceedings within such
period shall constitute an absolute bar to the institution of any proceedings, and a
waiver of all claims, with respect to such breach.
	 
	9.07	 	Reimbursement of Costs
	 
	 	 	In the event that a dispute arises between a Participant or Beneficiary and the
Company or other Employer with respect to the payment of benefits hereunder, and
attorney’s fees, expenses and costs are incurred by either party in the course of
litigation or otherwise, the party against whom the other party has been
successful in such dispute shall reimburse such other party for the full amount of
any such attorneys’ fees, expenses and costs.

35

 

	9.08	 	Acceleration of Payment
	 
	 	 	In the event that the Internal Revenue Service formally assesses a deficiency
against a Participant on the grounds that an amount credited to such Participant’s
Accounts under this Plan is subject to federal income tax (the “Reclassified
Amount”) earlier than the time payment otherwise would be made to the Participant
pursuant to this Plan, then the Committee shall direct the Employer maintaining such
Participant’s Accounts to pay to such Participant and deduct from such Account the
Reclassified Amount. To the extent possible, such payment will be made in a manner
permitted under Section 409A of the Code and any guidance issued thereunder so as to
comply with such Code Section.

36

 

ARTICLE X

AMENDMENTS OR TERMINATION OF PLAN

	10.01	 	Amendment
	 
	 	 	The Board of Directors of the Company, in its sole and unfettered discretion, may
amend the Plan at any time, provided such amendment does not contravene the
provisions of Section 409A of the Code and related guidance issued thereunder and
Section 10.03 hereof.
	 
	10.02	 	Termination
	 
	 	 	The Board of Directors of Company may terminate the Plan, in its sole and unfettered
discretion, at any time; provided, however, that distributions pursuant to the Plan
shall not thereby be accelerated but payment shall be made at the time and in the
manner specified under Article VI hereof; provided, further, however, that if the
Plan and all similar plans sponsored by the Company that are required to be
aggregated with the Plan under Regulation Section 1.409A-1(c)(2) are terminated
within the thirty (30) days preceding or the twelve (12) months following a Change
in Control, payment of all amounts deferred under this Plan and such other plans
shall be made in the form of a lump sum, which shall be paid no later than twelve
(12) months following the date on which the Plan termination occurs.
	 
	10.03	 	Rights of Participants
	 
	 	 	No amendment, suspension, or termination of the Plan shall deprive a Participant of
the vested amounts allocated to his or her Accounts as of such date. No amendment,
suspension, or termination shall be retroactive in effect to the prejudice of any
Participant, except to the extent necessary to comply with any provision of federal
or applicable state laws or except to the extent necessary to prevent detriment to
the Company or any of its Affiliates, or the current taxation of Participants under
Code Section 409A and any guidance issued thereunder, as so determined by the Board
in its sole and unfettered discretion. The foregoing notwithstanding, in the event
it is determined by the Board, in its sole and unfettered discretion, that any
provision in this Plan results in a violation of the requirements of Code Section
409A, any Regulations or guidance issued thereunder, or any other applicable law or
Regulation, the Board, and any authorized officer so appointed by the Board, shall
have the power unilaterally to modify or eliminate any such provision.
	 
	 	 	Any provision of this Plan to the contrary notwithstanding, no action to modify,
amend, supplement, suspend or terminate the Plan on or after the date of a Change in
Control shall be effective without the consent of a majority of the Participants in
the Plan at the time of such action.

37

 

ARTICLE XI

WITHDRAWING EMPLOYERS; TRANSFER TO SUCCESSOR PLAN

	11.01	 	Withdrawing Employers
	 
	 	 	In the event that a Participating Employer elects to discontinue or revoke its
participation in this Plan:

	 	(a)	 	the Company shall cause to be prepared a new plan (the
“Successor Plan”) for the withdrawing Participating Employer, the terms of
which shall be identical to the terms of this Plan;
	 
	 	(b)	 	the Company shall transfer, deliver and assign any and all
benefit obligations under this Plan which relate to Participants who are
employees of the withdrawing Participating Employer or its subsidiaries to the
Successor Plan; and
	 
	 	(c)	 	the withdrawing Participating Employer shall be deemed to have
consented to the adoption of the Successor Plan.

	 	 	For purposes of this provision, the Successor Plan shall treat all benefit
obligations described under (b) above as if they had accrued due to an individual’s
service with the withdrawing Participating Employer. Subsequent to the withdrawing
Participating Employer’s adoption of the Successor Plan, and the transfer of benefit
obligations from this Plan to the Successor Plan, Participants whose benefits were
transferred to the Successor Plan shall not be entitled to receive any amounts from
this Plan which relate to benefit obligations which accrued prior to the transfer.
	 
	11.02	 	Transfer to Successor Plan
	 
	 	 	Any provision of this Plan to the contrary notwithstanding, in the event that:

	 	(a)	 	the Participant terminates employment with the Company or other
Participating Employer in connection with the sale, spin-off or other
disposition of a direct or indirect subsidiary of the Company or a sale or
other disposition of assets of the Company or the assets of a direct or
indirect subsidiary of the Company (the “Transaction”);
	 
	 	(b)	 	in connection with the Transaction, such separated Participant
becomes employed by the subsidiary that is sold, spun-off or otherwise disposed
of, the purchaser of the subsidiary or assets or other surviving entity in the
Transaction, as the case may be, or an affiliate thereof, (the “Successor
Employer”); and
	 
	 	(c)	 	in connection with and effective as of or prior to the closing
of the Transaction, the Successor Employer establishes a new plan, the terms of

38

 

	 	 	 	which are substantially identical to the terms of this Plan and which treat all
benefit obligations which relate to the Participant (including those
transferred to the Successor Plan pursuant to the provisions of this Section)
as if they had accrued due to the Participant’s service with the Successor
Employer (the “Successor Plan”), and a new rabbi trust, the terms of which are
substantially identical to the terms of the Trust (the “Successor Trust”),

	 	 	then the Participant shall not be entitled to a distribution of benefits from this
Plan on account of such termination of employment, and the Company or other
Participating Employer which formerly employed the Participant and which maintains
an Account or Accounts for such Participant under this Plan shall transfer, deliver
and assign to the Successor Plan and Successor Employer as of the date the
Participant becomes employed by the Successor Employer any and all benefit
obligations under this Plan which relate to the Participant, and effective with and
subsequent to the adoption of the Successor Plan by the Successor Employer and the
transfer of the Participant’s benefit obligations from this Plan to the Successor
Plan, the Participant whose benefits were transferred to the Successor Plan shall
not be entitled to receive any amounts from this Plan which relate to benefit
obligations which accrued prior to the transfer. The preceding provisions to the
contrary notwithstanding, the provisions of this Section 11.02 shall not be
effective for Transactions that occur on or after the date of a Change in Control
without the written consent of a majority of the Participants in the Plan at such
time.
	 
	11.03	 	Compliance with Code Section 409A With Regard Article XI
	 
	 	 	If any provision of this Article XI is determined to violate Section 409A of the
Code, such provision shall have no force or effect.

39

 

     IN TESTIMONY WHEREOF, TRINITY INDUSTRIES, INC. has caused this instrument to be executed in
its name and on its behalf, by the officer thereunto duly authorized, this 31st day of
December, 2007, effective as of January 1, 2005 or as otherwise provided herein.

	 	 	 	 	 
	 	TRINITY INDUSTRIES, INC.

 	 
	 	By:  	/s/ Timothy R. Wallace
 	 
	 	 	Title:      Chief Executive Officer 	 
	 	 	 	 
	 

	 	 	 
	ATTEST:
	 	 
	 

	 	 
	/s/ Paul M. Jolas
 

	 	 

	 	 	 
	THE STATE OF TEXAS

	 	§

	 

	 	§

	COUNTY OF DALLAS

	 	§

     This instrument was acknowledged before me on the 31st day of December, 2007,
by Paul M. Jolas of TRINITY INDUSTRIES, INC., a Delaware corporation, on behalf of said
corporation.

	 	 	 	 	 
	 

	 	/s/ Julie Slayden
	 	 
	 

	 	 	 	 
	 

	 	Notary Public in and for the State of Texas	 	 
	 
	 	 	 	 
	My Commission Expires:

	 	Printed Name of Notary:	 	 
	 
	 	 	 	 
	8/25/2011

	 	Julie Slayden	 	 
	 

	 	 	 	 

40exv10w11w3

 

EXHIBIT 10.11.3

TRINITY INDUSTRIES, INC.

RESTRICTED STOCK GRANT AGREEMENT

THIS RESTRICTED STOCK GRANT AGREEMENT (the “Agreement”), by and between TRINITY INDUSTRIES, INC.
(hereinafter called the “Company”) and                                   
(hereinafter called the “Grantee”);

WITNESSETH:

WHEREAS, the Grantee complies with the requirements of eligibility for the award of Restricted
stock under the Trinity Industries, Inc. 2004 Stock Option and Incentive Plan (the “Plan”); and

WHEREAS, the Company has determined to award to the Grantee                                          (            
        ) shares of
Common Stock of the Company, subject to the terms and conditions hereinafter set forth, as a
retention incentive, to encourage a sense of proprietorship by the Grantee and to stimulate the
active interest of the Grantee in promoting the development, growth, performance and financial
success of the Company by affording the Grantee an opportunity to obtain an increased proprietary
interest in the Company so as to assure a closer identification between the Grantee’s interest and
the interest of the Company;

NOW, THEREFORE, in consideration of the premises and the covenants and agreements herein contained,
the parties hereto agree as follows:

1. Grant of Restricted Shares.

Subject to the terms and conditions of the Plan, this Agreement and the restrictions set forth
below, the Company hereby grants to the Grantee the total number of shares of common stock of the
Company set forth above (the “Restricted Shares”). The Restricted Shares may be issued in
certificated or book-entry form as the Company may determine.

2. Shareholder Status.

Effective upon the date of grant, Grantee has become the holder of record of the Restricted Shares
and has all rights of a stockholder with respect to the Restricted Shares, including the right to
vote the Restricted Shares and the right to receive all dividends paid with respect to the
Restricted Shares, subject to the terms and conditions set forth in this Agreement.

 

 

3. Restrictions.

The Restricted Shares may not be sold, assigned, transferred, pledged or otherwise disposed of or
encumbered (the “Restrictions on Transferability”) until the Restrictions on Transferability shall
lapse. The Restrictions on Transferability shall lapse upon the first to occur of the following:

	 	 	 	 	 
	 

	 	(i)
	 	          _____ for ___% of the Restricted Shares;
	 

	 	(ii)
	 	          _____ for ___% of the Restricted Shares;
	 

	 	(iii)
	 	          _____ for ___% of the Restricted Shares;
	 

	 	(iv)
	 	death;
	 

	 	(v)
	 	Disability as defined in the Plan;
	 

	 	(vi)
	 	a Change in Control as defined in the Plan; or
	 

	 	(vii)
	 	the consent, at any time after three years from the date of this grant, to the
removal of the restrictions by the Human Resources Committee (the “Committee”) in its
sole discretion.

All of the Restricted Shares shall be forfeited by the Grantee to the Company if prior to the lapse
of the Restrictions on Transferability the Grantee’s employment with the Company terminates for any
reason other than death or disability or as provided by paragraph 7 hereof. The Restricted Shares
may also be forfeited in order to satisfy amounts recoverable by the Company that the Committee
determines pursuant to the Policy for Repayment on Restatement of Financial Statements as may be in
effect at the time of the determination, which Policy is incorporated herein by reference. Upon
forfeiture, the Company shall have all right, title and interest in the Restricted Shares and the
Grantee shall have no further right, title or interest therein. Until the Restrictions on
Transferability shall lapse, any certificates representing the Restricted Shares shall bear a
legend giving notice of such restrictions as follows:

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE RESTRICTED PURSUANT TO A
RESTRICTED STOCK GRANT AGREEMENT DATED AS OF __________, AND MAY NOT
BE SOLD, ASSIGNED, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF OR
ENCUMBERED AT ANYTIME WITHOUT THE PRIOR WRITTEN APPROVAL OF THE COMPANY.

Upon the lapse of the Restrictions on Transferability with respect to any of the Restricted Shares,
such shares without the restrictive legend noted above shall be delivered to Grantee or Grantee’s
personal representative, provided that the Grantee or Grantee’s personal representative has made
appropriate arrangements with the Company for applicable taxes which are required to be withheld
under federal, state or local law or the tax withholding requirement has otherwise been satisfied.
The Grantee may elect, in accordance with Company policy in effect at the time, to pay in shares of
Common Stock of the Company a portion or all of the amount of the federal, state or

2

 

local, income or other taxes up to the maximum marginal tax rate for such taxes in connection with
the lapse of Restrictions on Transferability. To make such election the Grantee shall authorize
the Company to withhold, on or about the date such tax liability is determinable, a portion of the
shares that were or otherwise would be distributed to the Grantee upon the lapse of Restrictions on
Transferability having a fair market value equal to the amount of such taxes that the Grantee
elects to pay in shares. The amount equal to the fair market value of the shares withheld shall be
remitted by the Company to the appropriate taxing authorities.

4. No Rights of Continued Service.

Nothing herein shall confer upon Grantee any right to remain an officer or employee of the Company
or one of its Subsidiaries, and nothing herein shall be construed in any manner to interfere in any
way with the right of the Company or its Subsidiaries to terminate the Grantee’s service at any
time.

5. Interpretation of this Agreement.

The administration of the Company’s Plan has been vested in the Committee, and all questions of
interpretation and application of this grant shall be subject to determination by a majority of the
members of the Committee, which determination shall be final and binding on Grantee.

6. Subject to Plan.

The Restricted Shares are granted subject to the terms and provisions of the Plan of the Company,
which plan is incorporated herein by reference. In case of any conflict between this Agreement and
the Plan, the terms and provisions of the Plan shall be controlling.

7. Confidentiality

This Restricted Stock Grant is to be treated as STRICTLY CONFIDENTIAL. A Grantee who shares
information regarding this Restricted Stock Grant with other employees or outside persons, other
than as required to comply with applicable laws or as necessary to manage his or her personal
finances, is subject to his or her rights hereunder being forfeited upon a determination by the
Committee that the Grantee has violated this paragraph.

8. Acceptance and Stock Power.

3

 

The grant of the Restricted Shares under this Agreement is subject to and conditioned upon: (i)
Grantee’s acceptance of the terms hereof by the return of an executed copy of this Agreement to the
Company and (ii) delivery of an executed stock power in the attached form.

4

 

DATED as of the 
           th day of                                       
 , 200      .

	 	 	 	 	 
	 	 	TRINITY INDUSTRIES, INC.

 	 
	 	 	
 	 
	 	 	NAME: WILLIAM A. MCWHIRTER 	 
	 	 	TITLE:  SENIOR VICE PRESIDENT &

               CHIEF FINANCIAL OFFICER 	 
	 
	 	 	GRANTEE

 	 
	 	 	
 	 
	 	 	NAME: 	 
	 	 	 	 

5

 

	 	 	 	 	 

IRREVOCABLE STOCK POWER

FOR VALUE RECEIVED, the undersigned does hereby sell, assign and transfer, to Trinity Industries,
Inc.,                                          (                    ) shares of the common stock of Trinity Industries, Inc. awarded to
the undersigned and for which restrictions have not lapsed pursuant to a Restricted Stock Grant
Agreement dated as of                                        , 200     
 for                 
    shares standing in the name of the
undersigned on the books of said Company.

	 	 	 
	 

	 	 
	 

	 	 
	DATE

	 	NAME

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