Document:

exv10w11w2w1

 

Exhibit 10.11.2.1

TRINITY INDUSTRIES, INC.

INCENTIVE STOCK OPTION TERMS AND CONDITIONS

AS OF December 6, 2005

     Unless otherwise prescribed by the Human Resources Committee of the Board of Directors of
Trinity Industries, Inc. (the “Committee”), the following Terms and Conditions shall be applicable
to Incentive Stock Option awards by Trinity Industries from and after May 10, 2004 and shall be
incorporated by reference into all Incentive Stock Option Agreements. As used herein, the terms
“this option, the option, option granted herein, or option granted hereunder” mean options granted
from time to time pursuant to a Notice of Grant of Stock Options and Incentive Stock Option
Agreement into which these Terms and Conditions are incorporated.

     l. Grant of Option. Subject to the terms and conditions of the Trinity Industries,
Inc. 2004 Stock Option and Incentive Plan (the “2004 Plan”), the Company will grant from time to
time to the Optionee options to purchase from the Company the $1.00 par value Common Stock of the
Company over a period of time. The price per share (the “Exercise Price”), the total number of
shares subject to option (the “Optioned Shares”), and the periods of time during which such
Optioned Shares may be purchased are as set forth in a separate Notice of Grant of Stock Options
and Incentive Stock Option Agreement into which these Terms and Conditions are incorporated and
made a part thereof.

     The options granted hereunder are intended to constitute incentive stock options within the
meaning of Section 422A of the Internal Revenue Code of 1986, as amended. At any time while this
agreement is in effect, Optionee may elect to convert any unexercised incentive stock options
awarded hereby into non-qualified stock options, in which event a Non-Qualified Stock Agreement
shall be entered into with the same Exercise Price regarding the unexercised Option Shares as
provided in Notice of Grant of Stock Options and Incentive Stock Option Agreement and with the same
terms that would have been provided in a Non-Qualified Stock Option Agreement had it been entered
into on the date of the Notice of Grant of Stock Options and Incentive Stock Option Agreement.

     2. Manner of Exercising Option. The option granted herein shall be exercised by the
Optionee only in the State of Texas at the principal office of the Company by:

(a) Delivering to the Controller of the Company a written notice specifying the
number of Optioned Shares the Optionee then desires to purchase, which written
notice shall be in substantially the following form and shall be signed by the
Optionee:

“To Trinity Industries, Inc.:

I hereby exercise my option to purchase from Trinity Industries, Inc. (the
“Company”) at Dallas, Texas                                         shares of its Common Stock in

 

 

accordance with the Company’s 2004 Stock Option and Incentive Plan and
in accordance with my Incentive Stock Option Agreement dated [the date of
the Agreement] and hereby tender in payment therefore cash and/or stock in
the amount of, and/or with an aggregate value equal to $                                        , being
$                                         per share.

	 	 	 
	 
	 

	 	 
	 

	 	“(Name of Optionee)”
	 

	 	“(Date)”

(b) Tendering the full exercise price of such Optioned Shares either: (1) in cash
(including check, bank draft, or money order); or (2) by the delivery of shares of
Common Stock of the Company already owned by the Optionee; or (3) tendering shares
of Common Stock of the Company owned by the Optionee by delivery of a completed and
signed Trinity Industries, Inc. “Stock Option Exercise Attestation Form”; (4) by
providing herewith an order for a designated broker to sell part or all of the
Optioned Shares and deliver sufficient proceeds to the Company to pay the full
exercise price of the Optioned Shares; or (5) by a combination of items b(1), b(2),
b(3) or b(4) above .

(c) Tendering the amount of any federal, state, or local tax required to be withheld
by the Company due to the exercise of an option granted hereunder which shall be
satisfied, at the election of the Optionee but subject to change by the Human
Resources Committee, (the “Committee”), either (a) by payment by the Optionee to the
Company of the amount of such withholding obligation in cash (the “Cash Method”), or
(b) through the retention by the Company of a number of shares of Common Stock out
of the Shares being purchased through the exercise of the option having a fair
market value equal to the amount of the minimum withholding obligation (the “Share
Retention Method”).

          Shares of Common Stock of the Company delivered or tendered to exercise the option must be
held for at least six months prior to the date of exercise of the option if the shares were
acquired by previous exercise of a stock option or by vesting of Restricted Stock or Restricted
Stock Units. Shares acquired by methods other than exercise of a stock option (e.g. open market
purchase, gift, etc.) do not have the six month holding requirement.

          As soon as practicable after such exercise of the option in whole or in part by the Optionee,
the Company will deliver to the Optionee or for the account of the Optionee a certificate or
certificates for the number of shares with respect to which the option shall be so exercised minus
the number of shares to be withheld, if any, issued in the Optionee’s name. Each purchase of stock
hereunder shall be a separate and divisible transaction and a complete contract in and of itself.

     3. Compliance with Securities and Other Laws. The Company shall not be required to
sell or issue shares of Common Stock under option if the issuance thereof would constitute a
violation by either the Optionee or the Company of any provision of any law or regulation of any
governmental authority or any national securities exchange. As a condition of any sale or

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issuance of the shares of Common Stock under option, the Company may place legends on shares,
issue stop transfer orders and require such agreements or undertakings from the Optionee as the
Company may deem necessary or advisable to assure compliance with any such law or regulation,
including, if the Company or its counsel deems it appropriate, representations from the Optionee
that the Optionee is acquiring the shares of Common Stock solely for investment and not with a view
to distribution and that no distribution of such shares acquired by the Optionee will be made
unless registered pursuant to applicable federal and state securities laws, or in the opinion of
counsel of the Company, such registration is unnecessary.

     4. Early Termination of Option. Unless otherwise determined by the Committee and
subject to the provisions of Section 7 hereof, in the event that the Optionee ceases to be an
officer, director, or employee of the Company or an Affiliate of the Company for any reason, this
option shall terminate completely as to all shares with respect to which the Optionee was not
entitled, under the terms hereof, to purchase at the date of such cessation of service. However,
to the extent that this option could have been exercised at the date of cessation of service and
the Optionee could have purchased shares, under the terms hereof, at the date of such cessation of
service, then this option shall continue with respect to those shares which the Optionee could have
purchased and had not purchased, under the terms hereof, at the date of such cessation of service
only to the extent set forth below.

     For purposes hereof, the terms “Disability”, “Retirement” and “Change in Control” shall have
the meaning set forth in the 2004 Plan, as may be amended from time to time.

(a) Unless otherwise determined by the Committee, if the Optionee ceases to be an officer,
director, or employee of the Company or an Affiliate by reason of the fact that the Optionee
is discharged for cause, as determined solely and exclusively by the Committee, all rights
of the Optionee to exercise an option shall terminate, lapse, and be forfeited at the time
of the Optionee’s discharge for cause.

(b) Unless such periods are otherwise extended by the Committee, if the Optionee ceases to
be an officer, director, or employee of the Company or an Affiliate by reason of the
Optionee’s resignation, all rights of the Optionee to exercise an option shall terminate,
lapse, and be forfeited ten (10) days after the date of the Optionee’s resignation; except
that in case the Optionee shall die within ten (10) days after the date of resignation, the
personal representatives, heirs, legatees, or distributees of the Optionee, as appropriate,
shall have the right up to twelve (12) months from the date of resignation to exercise any
such option to the extent that the option was exercisable prior to death and had not been so
exercised.

(c) If the Optionee ceases to be an officer, director, or employee of the Company or an
Affiliate by reason of the Optionee’s Retirement, all rights of the Optionee to exercise an
option shall terminate, lapse, and be forfeited three (3) months after the date of the
Optionee’s Retirement; except that in case the Optionee shall die within three (3) months
after the date of Retirement, the personal representatives, heirs, legatees, or distributes
of the Optionee, as appropriate, shall have the right up to twelve (12) months from the date

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of death to exercise any such option to the extent that the option was exercisable prior to
death and had not been so exercised.

(d) Unless such periods are otherwise extended by the Committee, if the Optionee ceases to
be an officer, director, or employee of the Company or an Affiliate by reason of the
Optionee’s Disability, all rights of the Optionee to exercise an option shall terminate,
lapse, and be forfeited three (3) months after the date that the Optionee ceased to be an
officer, director, or employee of the Company or an Affiliate; except that in case the
Optionee shall die within three (3) months after the Optionee ceases to be an officer,
director, or employee pursuant to the provisions of this paragraph (d), the personal
representatives, heirs, legatees, or distributees of the Optionee, as appropriate, shall
have the right up to twelve (12) months from such cessation of service to exercise any such
option to the extent that the option was exercisable prior to death and had not been so
exercised.

(e) Unless such periods are otherwise extended by the Committee, if the Optionee ceases to
be an officer, director, or employee of the Company or an Affiliate by reason of death, the
personal representatives, heirs, legatees, or distributees of the Optionee, as appropriate,
shall have the right up to twelve (12) months from the termination of service to exercise
any such option to the extent that the option was exercisable prior to death and had not
been so exercised.

(f) Unless such periods are otherwise extended by the Committee, if the Optionee ceases to
be an officer, director, or employee of the Company or an Affiliate for any reason other
than discharge for cause, resignation, Retirement, Disability, or death, all rights of the
Optionee to exercise an option shall terminate, lapse, and be forfeited three (3) months
after the date that the Optionee ceased to be an officer, director, or employee of the
Company or an Affiliate; except that in case the Optionee shall die within three (3) months
after the Optionee ceases to be an officer, director, or employee pursuant to the provisions
of this paragraph (f), the personal representatives, heirs, legatees, or distributees of the
Optionee, as appropriate, shall have the right up to twelve (12) months from such cessation
of service to exercise any such option to the extent that the option was exercisable prior
to death and had not been so exercised.

(g) Despite the provisions of paragraphs (b), (c), (d), (e), and (f) of this Section 4, no
option shall be exercisable under any condition after the date or dates specified in Section
1.

     5. Nontransferability of Option. This option shall not be transferable otherwise than
by will or the laws of descent and distribution, and this option may be exercised, during the
lifetime of the Optionee, only by the Optionee. Any attempted assignment, transfer, pledge,
hypothecation, or other disposition of this option contrary to the provisions hereof, or the levy
of any execution, attachment, or similar process upon this option shall be null and void and
without effect.

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     6. Adjustments upon Changes in Capitalization. The Committee may make adjustments in
the number of shares subject to option for any subdivision or consolidation of shares of Common
Stock of the Company as provided in the 2004 Plan.

     Except as expressly provided in the 2004 Plan and in Section 7 hereof, Optionee shall have no
rights by reason of any subdivision or consolidation of stock of any class or the payment of any
stock dividend or any other increase or decrease in the number of shares of stock of any class or
by reason of any dissolution, liquidation, reorganization, merger, or consolidation, or spin-off of
assets or stock of another corporation, and any issue by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall not affect, and no
adjustment by reason thereof shall be made with respect to, the number of Optioned Shares or the
Exercise Price.

     The granting of this option shall not affect in any way the right or power of the Company to
make adjustments, reclassifications, reorganizations, or changes of its capital or business
structure or to merge or to consolidate or to dissolve, liquidate, or sell, or transfer all or any
part of its business or assets.

     7. Vesting of Option.

(a) The option granted hereunder may only be exercised to the extent that the Optionee is
vested in such option. The Optionee shall vest in the option granted hereunder in
accordance with the schedule specified in Section l. This option vesting schedule will be
accelerated at the discretion of the Committee as provided in the 2004 Plan or in the event
the provisions of paragraphs (b) or (c) of this Section 7 apply.

(b) If the Optionee ceases to be an officer, director, or employee of the Company or an
Affiliate by reason of death, Disability, or Retirement, or in the event of a Change in
Control of the Company, the Optionee or the personal representatives, heirs, legatees, or
distributees of the Optionee, as appropriate, shall become fully vested in the option
granted hereunder and shall have the immediate right to exercise such option to the extent
not previously exercised.

(c) In the event of the dissolution or liquidation of the Company, the option granted
hereunder shall terminate as of a date to be fixed by the Board of Directors, provided that
not less than thirty (30) days’ written notice of the date so fixed shall be given to the
Optionee and the Optionee shall have the right during such period to exercise the option
even though the option would not otherwise be exercisable under the option vesting schedule.
At the end of such period, any unexercised option shall terminate and be of no further
effect.

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     8. No Rights of a Stockholder or of Continued Employment or of Grant of Additional
Options. Optionee shall not have any of the rights of a stockholder of the Company with
respect to the Optioned Shares except to the extent that one or more certificates for Optioned
Shares shall have been delivered to Optionee, or Optionee has been determined to be a stockholder
of record by the Company’s Transfer Agent, upon due exercise of the option. Further, nothing
herein shall confer upon Optionee any right to remain in the employ
or continue as a director of
the Company or one of its Affiliates, and nothing herein shall be construed in any manner to
interfere in any way with the right of the Company or its Affiliates to terminate the Optionee’s
employment or directorship at any time. Further, nothing herein shall confer upon Optionee any
right to receive any future grants of options.

     9. Substitution for Stock Appreciation Rights. As provided in the 2004 Plan, the
Committee, at any time when the Company is subject to fair value accounting for equity-based
compensation granted to its employees and/or directors, shall have the right to substitute Stock
Appreciation Rights for outstanding Options granted to Optionee, provided the substituted Stock
Appreciation Rights call for settlement by the issuance of Shares, and the terms and conditions of
the substituted Stock Appreciation Rights are equivalent to the terms and conditions of the Options
being replaced, as determined by the Committee.

     10. Interpretation by the Committee. The administration of the Company’s 2004 Plan
has been vested in the Committee, and all questions of interpretation and application of these
Terms and Conditions and the Notice of Grant of Stock Options and Incentive Option Agreement shall
be subject to the determination by a majority of such Committee members, which determination shall
be final and binding on Optionee.

     11. Confidentiality. The option granted hereunder is to be treated as STRICTLY
CONFIDENTIAL. An Optionee who shares information regarding the option granted hereunder 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 the option granted hereunder being
forfeited upon a determination by the Human Resources Committee that the Optionee has violated this
Section.

     12. Policy for Repayment on Restatement of Financial Statements. The option granted
hereunder is subject to cancellation upon a determination by the Human Resources Committee pursuant
to the Policy for Repayment on Restatement of Financial Statements as may be in effect at the time
of such determination, which Policy is incorporated herein by reference.

     13. Option Subject to Stock Option Plan. In case of any conflict between these Terms
and Conditions, the Notice of Grant of Stock Options and Incentive Option Agreement and the 2004
Plan, the terms, conditions and provisions of the 2004 Plan shall be controlling.

6exv10w11w3

 

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”).

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 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 Human
Resources 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, the 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,
a certificate representing such shares and 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 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

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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 Plan Committee of the Board of
Directors, 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
Human Resources Committee that the Grantee has violated this paragraph.

8. Acceptance and Stock Power.

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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.

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     DATED as of the                     th day of                                         , 200                    .

	 	 	 	 	 	 	 
	 	 	TRINITY INDUSTRIES, INC.	 	 
	 
	 
	 	 	 	 	 
	 

	 	NAME:
	 	WILLIAM MCWHIRTER	 	 
	 

	 	TITLE:
	 	VICE PRESIDENT &	 	 
	 

	 	 	 	CHIEF FINANCIAL OFFICER	 	 
	 
	 	 	 	 	 	 
	 

	 	GRANTEE	 	 	 	 
	 
	 
	 	 	 	 	 
	 

	 	NAME:	 	 	 	 

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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___
 represented by certificate
No(s).                                          for
___ shares standing in the name of the undersigned on the books of said Company.

	 	 	 	 	 
	 
	 

DATE

	 	 

NAME

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