Document:

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                                                                     EXHIBIT 4.3

         Neither the Warrant represented by this certificate nor the
         securities issuable upon exercise hereof have been registered
         under the Securities Act of 1933, as amended (the "Act") or
         applicable state securities laws. The securities have been
         acquired for investment and may not be offered for sale, sold,
         transferred or assigned in the absence of an effective
         registration statement for the securities under the Act and
         applicable state securities laws, or unless an exemption from
         registration is available and an opinion of counsel,
         reasonably satisfactory to Newpark Resources, Inc. shall have
         been furnished to Newpark Resources, Inc.

WARRANT NO. W-1                                1,900,000 SHARES OF COMMON STOCK

                               WARRANT CERTIFICATE

                             Newpark Resources, Inc.

         Newpark Resources, Inc. (the "Issuer"), a Delaware corporation, for
value received, hereby certifies that Fletcher International Limited, or
registered assigns, is entitled to purchase from the Issuer 1,900,000 duly
authorized, validly issued, fully paid and nonassessable shares of common stock,
par value $0.01 per share (the "Common Stock") of the Issuer at the purchase
price per share of $10.075, at any time or from time to time prior to 12:01
A.M., New York City time, on June 1, 2007 (or such later date as may be
determined pursuant to the terms hereof) (the "Termination Date"), all subject
to the terms, conditions and adjustments set forth below in this Warrant.

1. Exercise of Warrant. The Warrant represented hereby was issued on June 1,
2000 pursuant to the Agreement between Fletcher International Limited and the
Issuer dated as of May 30, 2000 (the "Main Agreement"), and is subject to the
terms and conditions thereof. Unless otherwise defined herein, capitalized terms
used herein shall have the meanings set forth in the Main Agreement. A copy of
the Main Agreement may be obtained by the registered holder hereof upon written
request to the Issuer.

         1.1 Manner of Exercise. This Warrant may be exercised by the holder
hereof, in whole or in part, from time to time, on any Trading Day, by
facsimile,

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mail or overnight courier delivery of a notice in substantially the form
attached to this Warrant (or a reasonable facsimile thereof) duly executed by
such holder (a "Warrant Exercise Notice"). The closing of each exercise shall
take place (i) on the third Trading Day following the date the Warrant Exercise
Notice is delivered, (ii) such later date as the conditions set forth in Section
1.2 have been waived or satisfied or (iii) any other date upon which the
exercising holder and the Issuer mutually agree (the "Warrant Closing Date").

         1.2 Conditions to Closing. It shall be a condition of the exercising
holder's obligation to close that each of the following are satisfied, unless
waived by such holder:

                  (a) (i) The representations and warranties made by the Issuer
         in the Main Agreement shall be true and correct as of the Warrant
         Closing Date, except as otherwise disclosed prior to the date of the
         Warrant Exercise Notice to the registered holders of the Warrant either
         in writing directed to them or in a periodic or current report filed
         with the SEC; (ii) the Issuer shall have complied fully with all of the
         covenants and agreements in the Main Agreement; (iii) all shares to be
         issued upon such exercise are duly listed and admitted to trading on
         each securities exchange, if any, on which the Issuer's Common Stock is
         listed; and (iv) such holder shall have received a certificate of the
         Chief Executive Officer or the Chief Financial Officer of the Issuer
         dated such date and to the effect of clauses (i), (ii) and (iii).

                  (b) On the Warrant Closing Date, the Issuer shall have
         delivered to the holder an opinion of Ervin, Cohen & Jessup LLP (or
         such other counsel reasonably satisfactory to such holder) reasonably
         satisfactory to such holder, dated the date of delivery, confirming in
         substance the matters covered in paragraphs (a), (b), (c), (d), (e) and
         (f) of Section 3 of the Main Agreement, subject to any changes required
         to reflect exceptions referred to in clause (a)(i) above.

                  (c) On the Warrant Closing Date, all shares to be issued upon
         such exercise shall be duly listed and admitted for trading on the New
         York Stock Exchange, if the Issuer's Common Stock is so listed.

The Issuer shall use commercially reasonable efforts to cause each of the
foregoing conditions to be satisfied at the earliest possible date. If such
conditions are not satisfied or waived prior to the third Trading Day following
the date the Warrant Exercise Notice is delivered, then the holder may, at its
sole option, and at any time, withdraw the Warrant Exercise Notice by written
notice to the Issuer regardless of

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whether such conditions have been satisfied or waived as of the withdrawal date
and, after such withdrawal, shall have no further obligations with respect to
such Warrant Exercise Notice and may submit a Warrant Exercise Notice on any
future date with respect to the shares referenced in the original Warrant
Exercise Notice. Withdrawal of such Warrant Exercise Notice shall be the
exercising holder's sole remedy for the Issuer's failure to cause such
conditions to be satisfied, except to the extent that such failure constitutes a
breach of the provisions of the Main Agreement.

         1.3 When Exercise Effective. Each exercise of this Warrant shall be
deemed to have been effected immediately prior to the close of business on the
Trading Day on which the Warrant Exercise Notice is delivered as provided in
Section 1.1, and at such time the Person or Persons in whose name or names any
certificate or certificates for shares of Common Stock (or Other Securities)
shall be issuable upon such exercise as provided in Section 1.4 shall be deemed
to have become the holder or holders of record thereof. Provided that such
exercise shall not be deemed effective if and as of the date that the holder
delivers written notice of withdrawal to the Issuer as set forth in Section 1.2.

         1.4 Delivery of Warrant and Payment. On the Warrant Closing Date, the
registered holder shall surrender this Warrant Certificate to the Issuer at the
address set forth for notices to the Issuer in Section 19 of the Main Agreement
and shall deliver payment in cash, by wire transfer to the Issuer's account
designated in Section 19 of the Main Agreement of immediately available funds or
by certified or official bank check payable to the order of the Issuer, or in
the manner provided in Section 6(c)(x) or Section 6(c)(y) of the Main Agreement
in the amount obtained by multiplying (a) the number of shares of Common Stock
(without giving effect to any adjustment thereof) designated in such notice by
(b) $10.075, and such holder shall thereupon be entitled to receive the number
of duly authorized, validly issued, fully paid and nonassessable shares of
Common Stock (or Other Securities) determined as provided in Sections 2, 3 and
4.

         1.5 Delivery of Stock Certificates, etc. On the Warrant Closing Date,
the Issuer at its expense (including the payment by it of any applicable issue
taxes) will cause to be issued in the name of and delivered to the holder hereof
or as such holder may direct,

                  (a) at such address specified by the holder via reputable
         overnight courier, one or more certificates for the number of duly
         authorized, validly issued, fully paid and nonassessable shares of
         Common Stock (or Other Securities) to which such holder shall be
         entitled upon such exercise plus, in

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         lieu of any fractional share to which such holder would otherwise be
         entitled, cash in an amount equal to the same fraction of the Market
         Price per share on the Trading Day next preceding the date of such
         exercise, and

                  (b) in case such exercise is in part only, at such address
         specified by the holder via reputable overnight courier, a new Warrant
         of like tenor, calling in the aggregate on the face or faces thereof
         for the number of shares of Common Stock equal (without giving effect
         to any adjustment thereof) to the number of such shares called for on
         the face of this Warrant minus the number of such shares designated by
         the holder upon such exercise as provided in Section 1.1.

2. Adjustment of Common Stock Issuable Upon Exercise.

         2.1 General; Warrant Price. The number of shares of Common Stock which
the holder of this Warrant shall be entitled to receive upon each exercise
hereof shall be determined by multiplying the number of shares of Common Stock
which would otherwise (but for the provisions of Section 2, 3 and 4) be issuable
upon such exercise, as designated by the holder hereof pursuant to Section 1.1,
by the fraction of which (a) the numerator is $10.075 and (b) the denominator is
the Warrant Price in effect on the date of such exercise. The "Warrant Price"
shall initially be $10.075 per share, shall be adjusted and readjusted from time
to time as provided in the Main Agreement or in Sections 2, 3 and 4 hereof and,
as so adjusted or readjusted, shall remain in effect until a further adjustment
or readjustment thereof is required by the Main Agreement or by Sections 2, 3
and 4 hereof.

         2.2 Adjustment of Warrant Price.

                  (a) Issuance of Additional Shares of Common Stock. In case the
         Issuer at any time or from time to time after the date hereof shall
         issue or sell Additional Shares of Common Stock (including Additional
         Shares of Common Stock deemed to be issued pursuant to Section 2.3 or
         2.4) without consideration or for a consideration per share less than
         the greater of the Market Price and the Warrant Price in effect
         immediately prior to such issue or sale, then, and in each such case,
         subject to Section 2.8, such Warrant Price shall be reduced,
         concurrently with such issue or sale, to a price (calculated to the
         nearest .001 of a cent) determined by multiplying such Warrant Price by
         a fraction;

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                           (i) the numerator of which shall be (1) the number of
                  shares of Common Stock outstanding immediately prior to such
                  issue or sale plus (2) the number of shares of Common Stock
                  which the aggregate consideration received by the Issuer for
                  the total number of such Additional Shares of Common Stock so
                  issued or sold would purchase at the greater of such Market
                  Price and such Warrant Price, and

                           (ii) the denominator of which shall be the number of
                  shares of Common Stock outstanding immediately after such
                  issue or sale,

provided that, for the purposes of this Section 2.2(a) (x) immediately after any
Additional Shares of Common Stock are deemed to have been issued pursuant to
Section 2.3 or 2.4, such Additional Shares shall be deemed to be outstanding,
and (y) treasury shares shall not be deemed to be outstanding.

                  (b) Dividends and Distributions. In case the Issuer at any
         time or from time to time after the date hereof shall declare, order,
         pay or make a dividend or other distribution (including, without
         limitation, any distribution of other or additional stock or other
         securities or property or Options by way of dividend or spin-off,
         reclassification, recapitalization or similar corporate rearrangement)
         on the Common Stock, other than a dividend payable in Additional Shares
         of Common Stock, then, subject to Section 2.8, the Warrant Price in
         effect immediately prior to the close of business on the record date
         fixed for the determination of holders of any class of securities
         entitled to receive such dividend or distribution shall be reduced,
         effective as of the close of business on such record date, to a price
         (calculated to the nearest .001 of a cent) determined by multiplying
         such Warrant Price by a fraction

                           (i) the numerator of which shall be the Market Price
                  in effect on the Trading Day immediately prior to such record
                  date or, if the Common Stock trades on an ex-dividend basis,
                  on the date prior to the commencement of ex-dividend trading,
                  less the amount of such dividend or distribution (as
                  determined in good faith by the Board of Directors of the
                  Issuer) applicable to one share of Common Stock, and

                           (ii) the denominator of which shall be such Market
                  Price.

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         2.3 Treatment of Options and Convertible Securities. In case the Issuer
at any time or from time to time after the date hereof shall issue, sell, grant
or assume, or shall fix a record date for the determination of holders of any
class of securities entitled to receive, any Options or Convertible Securities,
then, and in each such case, the maximum number of Additional Shares of Common
Stock (as set forth in the instrument relating thereto, without regard to any
provisions contained therein for a subsequent adjustment of such number)
issuable upon the exercise of such Options or, in the case of Convertible
Securities and Options therefor, the conversion or exchange of such Convertible
Securities, shall be deemed to be Additional Shares of Common Stock issued as of
the time of such issue, sale, grant or assumption or, in case such a record date
shall have been fixed, as of the close of business on such record date (or, if
the Common Stock trades on an ex-dividend basis, on the date prior to the
commencement of ex-dividend trading), provided that such Additional Shares of
Common Stock shall not be deemed to have been issued unless the consideration
per share (determined pursuant to Section 2.5) of such shares would be less than
the greater of the Market Price and the Warrant Price in effect on the date of
and immediately prior to such issue, sale, grant or assumption or immediately
prior to the close of business on such record date (or, if the Common Stock
trades on an ex-dividend basis, on the date prior to the commencement of
ex-dividend trading), as the case may be, and provided, further, that in any
such case in which Additional Shares of Common Stock are deemed to be issued

                  (a) no further adjustment of the Warrant Price shall be made
         upon the subsequent issue or sale of Convertible Securities or shares
         of Common Stock upon the exercise of such Options or the conversion or
         exchange of such Convertible Securities, except in the case of any such
         Options or Convertible Securities which contain provisions requiring
         an adjustment, subsequent to the date of the issue or sale thereof, of
         the number of Additional Shares of Common Stock issuable upon the
         exercise of such Options or the conversion or exchange of such
         Convertible Securities for any reason, each such case to be deemed
         hereunder to involve a separate issuance of Additional Shares of
         Common Stock, Options or Convertible Securities, as the case may be;

                  (b) if such Options or Convertible Securities by their terms
         provide, with the passage of time or otherwise, for any change in the
         consideration payable to the Issuer, or decrease in the number of
         Additional Shares of Common Stock issuable, upon the exercise,
         conversion or exchange thereof (by change of rate or otherwise), the
         Warrant Price computed upon the original issue, sale, grant or
         assumption thereof (or upon the occurrence of the record date, or date
         prior to the commencement of ex-dividend trading, as the

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         case may be, with respect thereto), and any subsequent adjustments
         based thereon, shall, upon any such increase or decrease becoming
         effective, be recomputed to reflect such increase or decrease insofar
         as it affects such Options, or the rights of conversion or exchange
         under such Convertible Securities, which are outstanding at such time;

                  (c) upon the expiration (or purchase by the Issuer and
         cancellation or retirement) of any such Options which shall not have
         been exercised or the expiration of any rights of conversion or
         exchange under any such Convertible Securities which (or purchase by
         the Issuer and cancellation or retirement of any such Convertible
         Securities the rights of conversion or exchange under which) shall not
         have been exercised, the Warrant Price computed upon the original
         issue, sale, grant or assumption thereof (or upon the occurrence of the
         record date, or date prior to the commencement of ex-dividend trading,
         as the case may be, with respect thereto), and any subsequent
         adjustments based thereon, shall, upon such expiration (or such
         cancellation or retirement, as the case may be), be recomputed as if:

                           (i) in the case of Options for Common Stock or
                  Convertible Securities, the only Additional Shares of Common
                  Stock issued or sold were the Additional Shares of Common
                  Stock, if any, actually issued or sold upon the exercise of
                  such Options or the conversion or exchange of such Convertible
                  Securities and the consideration received therefor was the
                  consideration actually received by the Issuer for the issue,
                  sale, grant or assumption of all such Options, whether or not
                  exercised, plus the consideration actually received by the
                  Issuer upon such exercise, or for the issue or sale of all
                  such Convertible Securities which were actually converted or
                  exchanged, plus the additional consideration, if any, actually
                  received by the Issuer upon such conversion or exchange, and

                           (ii) in the case of Options for Convertible
                  Securities, only the Convertible Securities, if any, actually
                  issued or sold upon the exercise of such Options were issued
                  at the time of the issue, sale, grant or assumption of such
                  Options, and the consideration received by the Issuer for the
                  Additional Shares of Common Stock deemed to have then been
                  issued was the consideration actually received by the Issuer
                  for the issue, sale, grant or assumption of all such Options,
                  whether or not exercised, plus the consideration deemed to
                  have been received by the Issuer (pursuant to Section 2.5)
                  upon the issue or sale

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                  of such Convertible Securities with respect to which such
                  Options were actually exercised;

                  (d) no readjustment pursuant to subdivision (b) or (c) above
         shall have the effect of increasing the Warrant Price by an amount in
         excess of the amount of the adjustment thereof originally made in
         respect of the issue, sale, grant or assumption of such Options or
         Convertible Securities; and

                  (e) in the case of any such Options which expire by their
         terms not more than 30 days after the date of issue, sale, grant or
         assumption thereof, no adjustment of the Warrant Price shall be made
         until the expiration or exercise of all such Options, whereupon such
         adjustment shall be made in the manner provided in subdivision (c)
         above.

         2.4 Treatment of Stock Dividends, Stock Splits, etc. In case the Issuer
at any time or from time to time after the date hereof shall declare or pay any
dividend on the Common Stock payable in Common Stock, or shall effect a
subdivision of the outstanding shares of Common Stock into a greater number of
shares of Common Stock (by reclassification or otherwise than by payment of a
dividend in Common Stock), then, and in each such case, Additional Shares of
Common Stock shall be deemed to have been issued (a) in the case of any such
dividend, immediately after the close of business on the record date for the
determination of holders of any class of securities entitled to receive such
dividend, or (b) in the case of any such subdivision, at the close of business
on the day immediately prior to the day upon which such corporate action becomes
effective.

         2.5 Computation of Consideration. For the purposes of this Section 2,

                  (a) the consideration for the issue or sale of any Additional
         Shares of Common Stock shall, irrespective of the accounting treatment
         of such consideration,

                           (i) insofar as it consists of cash, be computed at
                  the net amount of cash received by the Issuer, without
                  deducting any expenses paid or incurred by the Issuer or any
                  commissions or compensations paid or concessions or discounts
                  allowed to underwriters, dealers or others performing similar
                  services in connection with such issue or sale,

                           (ii) insofar as it consists of property (including
                  securities)

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                  other than cash, be computed at the fair value thereof at the
                  time of such issue or sale, as determined in good faith by the
                  Board of Directors of the Issuer, and

                           (iii) in case Additional Shares of Common Stock are
                  issued or sold together with other stock or securities or
                  other assets of the Issuer for a consideration which covers
                  both, be the portion of such consideration so received,
                  computed as provided in clauses (i) and (ii) above, allocable
                  to such Additional Shares of Common Stock, all as determined
                  in good faith by the Board of Directors of the Issuer;

                  (b) Additional Shares of Common Stock deemed to have been
         issued pursuant to Section 2.3, relating to Options and Convertible
         Securities, shall be deemed to have been issued for a consideration per
         share determined by dividing

                           (i) the total amount, if any, received and receivable
                  by the Issuer as consideration for the issue, sale, grant or
                  assumption of the Options or Convertible Securities in
                  question, plus the minimum aggregate amount of additional
                  consideration (as set forth in the instruments relating
                  thereto, without regard to any provision contained therein
                  for a subsequent adjustment of such consideration to protect
                  against dilution) payable to the Issuer upon the exercise in
                  full of such Options or the conversion or exchange of such
                  Convertible Securities or, in the case of Options for
                  Convertible Securities, the exercise of such Options for
                  Convertible Securities and the conversion or exchange of such
                  Convertible Securities, in each case computing such
                  consideration as provided in the foregoing subdivision (a),

by

                           (ii) the maximum number of shares of Common Stock (as
                  set forth in the instruments relating thereto, without regard
                  to any provision contained therein for a subsequent adjustment
                  of such number to protect against dilution) issuable upon the
                  exercise of such Options or the conversion or exchange of such
                  Convertible Securities (including the full conversion or
                  exchange of all Options and Convertible Securities underlying
                  such Options and Convertible Securities); and

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                  (c) Additional Shares of Common Stock deemed to have been
         issued pursuant to Section 2.4, relating to stock dividends, stock
         splits, etc., shall be deemed to have been issued for no consideration.

         2.6 Adjustments for Combinations, etc. In case the outstanding shares
of Common Stock shall be combined or consolidated, by reclassification or
otherwise, into a lesser number of shares of Common Stock, the Warrant Price in
effect immediately prior to such combination or consolidation shall,
concurrently with the effectiveness of such combination or consolidation, be
proportionately increased.

         2.7 Dilution in Case of Other Securities. In case any Other Securities
shall be issued or sold or shall become subject to issue or sale upon the
conversion or exchange of any stock (or Other Securities) of the Issuer (or any
issuer of Other Securities or any other Person referred to in Section 3) or to
subscription, purchase or other acquisition pursuant to any Options issued or
granted by the Issuer (or any such other issuer or Person) for a consideration
such as to dilute, on a basis consistent with the standards established in the
other provisions of this Section 2, the purchase rights granted by this Warrant,
then, and in each such case, the computations, adjustments and readjustments
provided for in this Section 2 with respect to the Warrant Price shall be made
as nearly as possible in the manner so provided and applied to determine the
amount of Other Securities from time to time receivable upon the exercise of the
Warrant, so as to protect the holder or holders of the Warrant against the
effect of such dilution.

         2.8 Minimum Adjustment of Warrant Price. If the amount of any
adjustment of the Warrant Price required pursuant to this Section 2 would be
less than one tenth (1/10) of one percent (1%) of the Warrant Price in effect at
the time such adjustment is otherwise so required to be made, such amount shall
be carried forward and adjustment with respect thereto made at the time of and
together with any subsequent adjustment which, together with such amount and any
other amount or amounts so carried forward, shall aggregate at least one tenth
(1/10) of one percent (1%) of such Warrant Price.

3. Consolidation, Merger, etc.

         3.1 Adjustments for Consolidation, Merger, Sale of Assets,
Reorganization, etc. In case the Issuer after the date hereof (a) is party to
any acquisition of the Issuer by means of merger or other form of corporate
reorganization in which outstanding shares of the Issuer are exchanged for
securities or other consideration issued, or caused to be issued, by the
Acquiring Person or its subsidiary or affiliate, (b) a sale of all or
substantially all of the assets of the Issuer (on a consolidated

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basis) (c) any other transaction or series of related transactions in which the
power to cast the majority of the eligible votes at a meeting of the Issuer's
stockholders at which directors are elected is transferred to a single entity or
group acting in concert, or (d) shall effect a capital reorganization or
reclassification of the Common Stock or Other Securities (other than a capital
reorganization or reclassification resulting in the issue of Additional Shares
of Common Stock for which adjustment in the Warrant Price is provided in Section
2.2(a) or 2.2(b), then, and in the case of each such transaction, proper
provision shall be made so that, upon the basis and the terms and in the manner
provided in this Warrant, the holder of this Warrant, upon the exercise hereof
at any time after the consummation of such transaction, shall be entitled to
receive (at the aggregate price payable by such holder in effect at the time of
such consummation for all Common Stock or Other Securities issuable upon such
exercise immediately prior to such consummation), in lieu of the Common Stock
or Other Securities issuable upon such exercise prior to such consummation,
either of the following, as shall be elected, in whole or in part, from time to
time, by such holder:

                           (i) the stock and other securities, cash and property
                  to which such holder would have been entitled upon such
                  consummation if such holder had exercised the rights
                  represented by this Warrant immediately prior thereto, subject
                  to adjustments (subsequent to such corporate action) as nearly
                  equivalent as possible to the adjustments provided for in
                  Section 2 and this Section 3;

                           (ii) the number of shares of common stock of the
                  Acquiring Person or its Parent, at the election of the holder
                  (subject to adjustments, subsequent to such corporate action,
                  as nearly equivalent as possible to the adjustments provided
                  for in Section 2 and this Section 3), determined by dividing
                  (A) the amount equal to the product obtained by multiplying
                  (1) the number of shares of Common Stock (or Other Securities)
                  to which the holder of this Warrant would have been entitled
                  had such holder exercised this Warrant immediately prior to
                  such consummation, times (2) the greater of the Acquisition
                  Price and the Warrant Price in effect on the Trading Day
                  immediately preceding the date of such consummation, by (B)
                  the Market Price per share of the common stock of the
                  Acquiring Person or its Parent, as the case may be, on the
                  Trading Day immediately preceding the date of such
                  consummation; or

                           (iii) cash in an amount equal to 33% of the aggregate
                  Warrant Price of the unexercised portion of the Warrant on the
                  Trading

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                  Day immediately preceding the date of such consummation,
                  provided, however, (A) that the Issuer shall not under any
                  circumstances be obligated to pay cash to any holder, the
                  Issuer's obligation being limited to the obligation to require
                  any Acquiring Person and its Parent to agree to pay such cash
                  as a condition to consummating any of the transactions
                  described in clauses (a) through (d) of this Section 3.1 and
                  (B) the holder shall not be obligated to pay any consideration
                  to exercise the Warrant in order to receive the cash payment
                  specified in this clause (iii).

         3.2 Assumption of Obligations. Notwithstanding anything contained in
the Warrant or in the Main Agreement to the contrary, the Issuer will not effect
any of the transactions described in clauses (a) through (d) of Section 3.1
unless, prior to the consummation thereof, each Person (other than the Issuer)
which may be required to deliver any stock, securities, cash or property upon
the exercise of this Warrant as provided herein shall assume, by written
instrument delivered to, and reasonably satisfactory to, the holder of this
Warrant, (a) the obligations of the Issuer under this Warrant (and if the Issuer
shall survive the consummation of such transaction, such assumption shall be in
addition to, and shall not release the Issuer from, any continuing obligations
of the Issuer under this Warrant), and (b) the obligation to deliver to such
holder such shares of stock, securities, cash or property as, in accordance with
the foregoing provisions of this Section 3, such holder may be entitled to
receive, and such Person shall have similarly delivered to such holder an
opinion of counsel for such Person, which counsel shall be reasonably
satisfactory to such holder, stating that this Warrant shall thereafter continue
in full force and effect and the terms hereof (including, without limitation,
all of the provisions of this Section 3) shall be applicable to the stock,
securities, cash or property which such Person may be required to deliver upon
any exercise of this Warrant or the exercise of any rights pursuant hereto.
Nothing in this Section 3 shall be deemed to authorize the Issuer to enter into
any transaction not otherwise permitted by Section 10 of the Main Agreement.

4. Other Dilutive Events. In case any event shall occur as to which the
provisions of Sections 2 and 3 are not strictly applicable but the failure to
make any adjustment would not fairly protect the purchase rights represented by
this Warrant in accordance with the essential intent and principles of such
Sections, then, in each such case, the Issuer shall appoint a firm of
independent certified public accountants of recognized national standing (which
shall not be the regular auditors of the Issuer), which shall give their opinion
upon the adjustment, if any, on a basis consistent with the essential intent and
principles established in Sections 2 and 3, necessary to preserve, without
dilution, the purchase rights represented by this Warrant. Upon

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receipt of such opinion, the Issuer will promptly deliver a copy thereof via
facsimile and overnight courier to the holder or holders of this Warrant and
shall make the adjustments described therein.

5. No Dilution or Impairment. The Issuer will not, by amendment of its
certificate of incorporation or through any consolidation, merger,
reorganization, transfer of assets, dissolution, issue or sale of securities or
any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms of this Warrant, but will at all times in good faith assist
in the carrying out of all such terms and in the taking of all such action as
may be necessary or appropriate in order to protect the rights of the holder of
this Warrant against dilution or other impairment. Without limiting the
generality of the foregoing, the Issuer (a) will not permit the par value of any
shares of stock receivable upon the exercise of this Warrant to exceed the
amount payable therefor upon such exercise, (b) will take all such action as may
be necessary or appropriate in order that the Issuer may validly and legally
issue fully paid and nonassessable shares of stock on the exercise of the
Warrants from time to time outstanding, and (c) will not take any action which
results in any adjustment of the Warrant Price if the total number of shares of
Common Stock (or Other Securities) issuable after the action upon the exercise
of all of the Warrants would exceed the total number of shares of Common Stock
(or Other Securities) then authorized by the Issuer's certificate of
incorporation and available for the purpose of issue upon such exercise.

6. Accountants' Report as to Adjustments. In each case of any adjustment or
readjustment in the shares of Common Stock (or Other Securities) issuable upon
the exercise of this Warrant, the Issuer at its expense will promptly compute
such adjustment or readjustment in accordance with the terms of this Warrant and
cause independent certified public accountants of recognized national standing
(which may be the regular auditors of the Issuer) selected by the Issuer to
verify such computation (other than any computation of the fair value of
property as determined in good faith by the Board of Directors of the Issuer)
and prepare a report setting forth such adjustment or readjustment and showing
in reasonable detail the method of calculation thereof and the facts upon which
such adjustment or readjustment is based, including a statement of (a) the
consideration received or to be received by the Issuer for any Additional Shares
of Common Stock issued or sold or deemed to have been issued, (b) the number of
shares of Common Stock outstanding or deemed to be outstanding, and (c) the
Warrant Price in effect immediately prior to such issue or sale and as adjusted
and readjusted (if required by Section 2, 3 or 4) on account thereof. The Issuer
will forthwith mail a copy of each such report to each holder of a Warrant and
will, upon the written request at any time of any holder of a Warrant, furnish
to

                                       13
<PAGE>   14

such holder a like report setting forth the Warrant Price at the time in effect
and showing in reasonable detail how it was calculated. The Issuer will also
keep copies of all such reports at its principal office and will cause the same
to be available for inspection at such office during normal business hours by
any holder of a Warrant or any prospective purchaser of a Warrant designated by
the holder thereof.

7. Notices of Corporate Action. In the event of

         7.1 any taking by the Issuer of a record of the holders of any class of
securities for the purpose of determining the holders thereof who are entitled
to receive any dividend (other than a regular periodic dividend payable in cash
out of earned surplus in an amount not exceeding the amount of the immediately
preceding cash dividend for such period) or other distribution, or any right to
subscribe for, purchase or otherwise acquire any shares of stock of any class or
any other securities or property, or to receive any other right, or

         7.2 any capital reorganization of the Issuer, any reclassification or
recapitalization of the capital stock of the Issuer or any consolidation or
merger involving the Issuer and any other Person or any transfer of all or
substantially all the assets of the Issuer to any other Person, or

         7.3 any voluntary or involuntary dissolution, liquidation or winding-up
of the Issuer, the Issuer will mail to each holder of a Warrant a notice
specifying (i) the date or expected date on which any such record is to be taken
for the purpose of such dividend, distribution or right, and the amount and
character of such dividend, distribution or right, and (ii) the date or expected
date on which any such reorganization, reclassification, recapitalization,
consolidation, merger, transfer, dissolution, liquidation or winding-up is to
take place and the time, if any such time is to be fixed, as of which the
holders of record of Common Stock (or Other Securities) shall be entitled to
exchange their shares of Common Stock (or Other Securities) for the securities
or other property deliverable upon such reorganization, reclassification,
recapitalization, consolidation, merger, transfer, dissolution, liquidation or
winding-up. Such notice shall be mailed at least 45 days prior to the date
therein specified.

8. Reservation of Shares. For so long as the Warrant represented hereby has not
been exercised in full, the Issuer shall at all times prior to the Termination
Date reserve and keep available, free from pre-emptive rights, out of its
authorized but unissued capital stock, the number of shares set forth in the
Main Agreement. In the event the number of Common Shares issuable exceeds the
authorized number of

                                       14
<PAGE>   15

shares of Common Stock or other securities, the Issuer shall promptly take all
actions necessary to increase the authorized number, including causing its Board
of Directors to call a special meeting of shareholders and recommend such
increase.

9. Transfer and Assignment.

         9.1 By accepting delivery of this Warrant Certificate, the registered
holder hereof covenants and agrees with the Issuer not to exercise the Warrant
or transfer the Warrant or the Common Shares represented hereby except in
compliance with the terms of the Main Agreement and this Warrant Certificate.

         9.2 By accepting delivery of this Warrant Certificate, the registered
holder hereof covenants and agrees with the Issuer that no Warrant may be sold
or assigned, in whole or in part, unless such sale or assignment complies with
applicable federal and state securities laws and until such holder shall
deliver to the Issuer (i) written notice of such transfer and of the name and
address of the transferee and such notice has been received by the Issuer; (ii)
a written agreement of the transferee to comply with the terms of the Main
Agreement and this Warrant Certificate; and (iii) a certificate of the
transferee and an opinion of counsel reasonably satisfactory to the Issuer that
such transfer complies with applicable federal and state securities laws;
provided, however that nothing in this Warrant Certificate shall limit the right
or ability of the holder to engage in hedging transactions with respect to the
Warrant or the underlying Common Shares. If a portion of the Warrant is
transferred, all rights of the registered holder hereunder may be exercised by
the transferee provided that any registered holder of the Warrant may deliver a
Warrant Exercise Notice only with respect to the Common Shares subject to such
holder's portion of the Warrant.

         9.3 The Issuer will pay all documentary stamp taxes (if any)
attributable to the issuance of Common Shares upon the exercise of the Warrant
by the registered holder hereof; provided, however, that the Issuer shall not be
required to pay any tax or taxes which may be payable in respect of any transfer
involved in the registration of the Warrant Certificate or any certificates for
Common Shares in a name other than that of the registered holder of the Warrant
Certificate surrendered upon the exercise of a Warrant, and the Issuer shall not
be required to issue or deliver the Warrant Certificate or certificates for
Common Shares unless or until the person or persons requesting the issuance
thereof shall have paid to the Issuer the amount of such tax or shall have
established to the reasonable satisfaction of the Issuer that such tax has been
paid.

                                       15
<PAGE>   16

10. Lost or Stolen Warrant. In case this Warrant Certificate shall be mutilated,
lost, stolen or destroyed, the Issuer may in its discretion issue in exchange
and substitution for and upon cancellation of the mutilated Warrant Certificate,
or in lieu of and substitution for the Warrant Certificate lost, stolen or
destroyed, a new Warrant Certificate of like tenor, but only upon receipt of
evidence reasonably satisfactory to the Issuer of such loss, theft or
destruction of such Warrant Certificate and indemnity, if requested, reasonably
satisfactory to the Issuer. Applicants for a substitute Warrant Certificate
shall also comply with such other reasonable regulations and pay such other
reasonable charges as the Issuer may prescribe.

11. Warrant Agent. The Issuer (and any corporation into which the Issuer is
merged or any corporation resulting from any consolidation to which the Issuer
is a party) shall serve as warrant agent (the "Warrant Agent") under this
Warrant. The Warrant Agent hereunder shall at all times maintain a register (the
"Warrant Register") of the holders of Warrant. Upon 30 days' notice to the
registered holder hereof, the Issuer may appoint a new Warrant Agent. Such new
Warrant Agent shall be a corporation doing business and in good standing under
the laws of the United States or any state thereof, and having a combined
capital and surplus of not less than $100,000,000. The combined capital and
surplus of any such new Warrant Agent shall be deemed to be the combined capital
and surplus as set forth in the most recent report of its condition published by
such Warrant Agent prior to its appointment; provided that such reports are
published at least annually pursuant to law or to the requirements of a federal
or state supervising or examining authority. After acceptance in writing of
such appointment by the new Warrant Agent, it shall be vested with the same
powers, rights, duties and responsibilities as if it had been originally named
herein as the Warrant Agent, without any further assurance, conveyance, act or
deed; but if for any reason it shall be reasonably necessary or expedient to
execute and deliver any further assurance, conveyance, act or deed, the same
shall be done at the expense of the Issuer and shall be legally and validly
executed and delivered by the Issuer. Any corporation into which any new Warrant
Agent may be merged or any corporation resulting from any consolidation to which
any new Warrant Agent shall be a party or any corporation to which any new
Warrant Agent transfers substantially all of its corporate trust or shareholders
services business shall be a successor Warrant Agent under this Warrant without
any further act; provided that such corporation (i) would be eligible for
appointment as successor to the Warrant Agent under the provisions of this
Section 11 or (ii) is a wholly owned subsidiary of the Warrant Agent. Any such
successor Warrant Agent shall promptly cause notice of its succession as Warrant
Agent to be delivered via reputable overnight courier to the registered holder
hereof at such holder's last address as shown on the Warrant Register.

                                       16
<PAGE>   17

12. Definitions. As used herein, unless the context otherwise requires, the
following terms have the following respective meanings:

         12.1 Acquiring Person: With reference to the transactions referred to
in clauses (a) through (d) of section 3.1, the continuing or surviving
corporation of a consolidation or merger with the Issuer (if other than the
Issuer), the transferee of substantially all of the properties or assets of the
Issuer, the corporation consolidating with or merging into the Issuer in a
consolidation or merger in connection with which the Common Stock is changed
into or exchanged for stock or other securities of any other Person or cash or
any other property, or, in the case of a capital reorganization or
reclassification, the Issuer.

         12.2 Acquisition Price: As applied to the Common Stock, (a) the Market
Price on the date immediately preceding the date on which any transaction to
which Section 3 applies is consummated, or (b) if a purchase, tender or exchange
offer is made by the Acquiring Person (or by any of its affiliates) to the
holders of the Common Stock and such offer is accepted by the holders of more
than 50% of the outstanding shares of Common Stock, the greater of (i) the price
determined in accordance with the provisions of the foregoing clause (a) of this
sentence and (ii) the Market Price on the date immediately preceding the
acceptance of such offer by the holders of more than 50% of the outstanding
shares of Common Stock.

         12.3 Additional Shares of Common Stock: All shares (including treasury
shares) of Common Stock issued or sold (or, pursuant to section 2.3 or 2.4,
deemed to be issued) by the Issuer after the date hereof, whether or not
subsequently reacquired or retired by the Issuer, other than shares issued upon
the exercise of the Warrants; provided, however, that this term shall not
include Excluded Stock.

         12.4 Common Stock: As defined in the introduction to this Warrant, such
term to include any stock into which such Common Stock shall have been changed
or any stock resulting from any reclassification of such Common Stock, and all
other stock of any class or classes (however designated) of the Issuer the
holders of which have the right, without limitation as to amount, either to all
or to a share of the balance of current dividends and liquidating dividends
after the payment of dividends and distributions on any shares entitled to
preference to Common Stock shares.

         12.5 Convertible Securities: Any evidences of indebtedness, shares of
stock (other than Common Stock) or other securities directly or indirectly
convertible into or exchangeable for Additional Shares of Common Stock.

                                       17
<PAGE>   18

         12.6 Excluded Stock: (A) Options and rights to purchase up to 9,949,008
shares of Common Stock, which options and rights are issued (i) pursuant to the
terms of the Benefit Plans; (ii) in the ordinary course of business, consistent
with past practice of the Company (in the case of the Benefit Plans other than
the 1999 Employee Stock Purchase Plan); and (iii) with an exercise price not
less than the Market Price on the date of grant or, in the case of shares
purchased under the 1999 Employee Stock Purchase Plan), at a purchase price not
less than 85% of the Market Price on the first or last day of the applicable
offering period, whichever is lower; (B) Dividends on, or conversion of, the
Issuer's Series A Cumulative Perpetual Preferred Stock and Series B Preferred
Stock paid in Common Stock in accordance with the Certificate of Designation of
the Series A Cumulative Perpetual Preferred Stock and the Certificate of Rights
and Preferences of the Series B Preferred Stock; (C) Common Stock issued upon
exercise of the warrant issued to SCF-IV, L.P. or this Warrant; or (D) Common
Stock issued in connection with a Combination.

         12.7 Issuer: As defined in the introduction to this Warrant, such term
to include any corporation which shall succeed to or assume the obligations of
the Issuer.

         12.8 Market Price: On any date specified herein, the amount per share
of the Common Stock (or, for purposes of determining the Market Price of the
common stock of an Acquiring Person or its Parent under Section 3, the common
stock of such Acquiring Person or such Parent), equal to (a) the daily
volume-weighted average price on the NYSE (as defined in the Main Agreement) or,
if no such sale takes place on such date, the average of the closing bid and
asked prices on the NYSE thereof on such date, in each case as reported by
Bloomberg, L.P. (or by such other Person as the holder and the Issuer may
agree), or (b) if such Common Stock is not then listed or admitted to trading on
the NYSE, the higher of (x) the book value thereof as determined by any firm of
independent public accountants of recognized standing selected by the Board of
Directors of the Issuer as of the last day of any month ending within 60 days
preceding the date as of which the determination is to be made or (y) the fair
value thereof determined in good faith by the Board of Directors of the Issuer
as of a date which is within 18 days of the date as of which the determination
is to be made.

         12.9 Options: Rights, options or warrants to subscribe for, purchase or
otherwise acquire either Additional Shares of Common Stock or Convertible
Securities.

                                       18
<PAGE>   19

         12.10 Other Securities: Any stock (other than Common Stock) and other
securities of the Issuer or any other Person (corporate or otherwise) which the
holders of the Warrants at any time shall be entitled to receive, or shall have
received, upon the exercise of the Warrants, in lieu of or in addition to
Common Stock, or which at any time shall be issuable or shall have been issued
in exchange for or in replacement of Common Stock or Other Securities.

         12.11 Parent: As to any Acquiring Person any corporation which (a)
controls the Acquiring Person directly or indirectly through one or more
intermediaries, (b) is required to include the Acquiring Person in the
consolidated financial statements contained in such Parent's Annual Report on
Form 10-K and (c) is not itself included in the consolidated financial
statements of any other Person (other than its consolidated subsidiaries).

         12.12 Person: A corporation, an association, a partnership, an
organization, a business, an individual, a government or political subdivision
thereof or a governmental agency.

         12.13 Termination Date: The date set forth in the first paragraph
hereof, provided that the Termination Date shall be extended by one day for each
day that the Registration Requirement (as defined in the Main Agreement) is not
satisfied.

         12.14 Voting Securities: Stock of any class or classes (or equivalent
interests), if the holders of the stock of such class or classes (or equivalent
interests) are ordinarily, in the absence of contingencies, entitled to vote for
the election of the directors (or persons performing similar functions) of such
business entity, even though the right so to vote has been suspended by the
happening of such a contingency.

13. Remedies. The Issuer stipulates that the remedies at law of the holder of
this Warrant in the event of any default or threatened default by the Issuer in
the performance of or compliance with any of the terms of this Warrant are not
and will not be adequate and that, to the fullest extent permitted by law, such
terms may be specifically enforced by a decree for the specific performance of
any agreement contained herein or by an injunction against a violation of any of
the terms hereof or otherwise.

14. No Rights or Liabilities as Stockholder. Nothing contained in this Warrant
shall be construed as conferring upon the holder hereof any rights as a
stockholder of the Issuer or as imposing any obligation on such holder to
purchase any securities or

                                       19
<PAGE>   20

as imposing any liabilities on such holder as a stockholder of the Issuer,
whether such obligation or liabilities are asserted by the Issuer or by
creditors of the Issuer.

15. Notices. All notices and other communications under this Warrant shall be in
writing and shall be delivered by a nationally recognized overnight courier,
postage prepaid, addressed (a) if to Fletcher or the Issuer, in the manner
provided in the Main Agreement, or (b) if to any other holder of any Warrant, at
the registered address of such holder as set forth in the register kept at the
principal office of the Issuer, provided that the exercise of any Warrant shall
be effective in the manner provided in Section 1.

16. Amendments. This Warrant and any term hereof may be changed, waived,
discharged or terminated only by an instrument in writing signed by the party
against which enforcement of such change, waiver, discharge or termination is
sought.

17. Descriptive Headings. The headings in this Warrant are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof.

18. GOVERNING LAW. THIS WARRANT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE
OF DELAWARE, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.

19. Judicial Proceedings; Waiver of Jury. Any judicial proceeding brought
against the Issuer with respect to this Warrant may be brought in any court of
competent jurisdiction in the State of New York or of the United States of
America for the Southern District of New York and, by execution and delivery of
this War rant, the Issuer (a) accepts, generally and unconditionally, the
nonexclusive jurisdiction of such courts and any related appellate court, and
irrevocably agrees to be bound by any judgment rendered thereby in connection
with this Warrant, subject to any rights of appeal, and (b) irrevocably waives
any objection the Issuer may now or hereafter have as to the venue of any such
suit, action or proceeding brought in such a court or that such court is an
inconvenient forum. The Issuer hereby waives personal service of process and
consents, that service of process upon it may be made by certified or registered
mail, return receipt requested, at its address specified or determined in
accordance with the provisions of Section 15, and service so made shall be
deemed completed on the third Business Day after such service is deposited in
the mail or, if earlier, when delivered. Nothing herein shall affect the right
to serve process in any other manner permitted by law or shall limit the right
of any holder of any Warrant to bring proceedings against the Issuer in the
courts of any other jurisdiction. THE ISSUER HEREBY WAIVES TRIAL BY JURY IN ANY

                                       20
<PAGE>   21

JUDICIAL PROCEEDING INVOLVING, DIRECTLY, OR INDIRECTLY, ANY MATTER (WHETHER
SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO,
OR CONNECTED WITH THIS WARRANT OR THE RELATIONSHIP ESTABLISHED HEREUNDER.

         This Warrant Certificate shall not be valid unless signed by the
Issuer.

                  [Remainder of Page Left Blank Intentionally]

                                       21
<PAGE>   22

         IN WITNESS WHEREOF, Newpark Resources, Inc. has caused this Warrant
Certificate to be signed by its duly authorized officer.

Dated:  June 1, 2000

                                           NEWPARK RESOURCES, INC.

                                           By:  /s/ Matthew W. Hardey
                                                -------------------------------
                                                Name:  Matthew W. Hardey
                                                Title:    V.P. of Finance & CFO

<PAGE>   23

                                                                       Exhibit 1

                        [FORM OF WARRANT EXERCISE NOTICE]

                  (To Be Executed Upon Exercise Of the Warrant)

                                     [DATE]

Newpark Resources, Inc.
3850 North Causeway Boulevard
Suite 1770
Metairie, Louisiana  70002
Attention:   [Chief Financial Officer]

         Re:      Warrant No. W-1

Ladies and Gentlemen:

         The undersigned is the registered holder of the above-referenced
warrant (the "Warrant") issued by Newpark Resources, Inc. (the "Issuer"),
evidenced by copy of the Warrant Certificate attached hereto, and hereby elects
to exercise the Warrant to purchase________________ (1) Common Shares (as
defined in such Warrant Certificate) [cash exercise: and shall deliver on the
Warrant Closing Date via wire transfer of immediately available funds or by
certified or official bank check] [cashless exercise: and, pursuant to Section
6(c)(x) of the Main Agreement (as defined in the Warrant Certificate) shall
be deemed to have tendered] $_______________ by wire transfer or by certified or
official bank check to the order of Newpark Resources, Inc. as

--------------------
         (1) Insert here the number of shares called for on the face of this
Warrant (or, in the case of a partial exercise, the portion thereof as to which
this Warrant is being exercised), in either case without making any adjustment
for Additional Shares of Common Stock or any other stock or other securities or
property or cash which, pursuant to the adjustment provisions of this Warrant,
may be delivered upon exercise. In the case of partial exercise, a new Warrant
or Warrants will be issued and delivered, representing the unexercised portion
of the Warrant, to the holder surrendering the Warrant.

                                       1-1

<PAGE>   24

payment for such Common Shares in accordance with the terms of such Warrant
Certificate and the Main Agreement (as defined in the Warrant Certificate).

         In accordance with the terms of the attached Warrant Certificate, the
undersigned requests that certificates for such shares be registered in the
name of and delivered to the undersigned at the following address:

                                  [TO BE ADDED]

         The undersigned will deliver the original of the Warrant Certificate no
later than the second Trading Day after and excluding the date of this notice.

         [If the number of Common Shares to be delivered is less than the total
number of Common Shares deliverable under the Warrant, insert the following --
The undersigned requests that a new warrant certificate substantially identical
to the attached Warrant Certificate be issued to the undersigned evidencing the
right to purchase the number of Common Shares equal to (x) the total number of
Common Shares deliverable under the Warrant less (y) the number of Common Shares
to be delivered in connection with this exercise.]

                                           FLETCHER INTERNATIONAL LIMITED, by
                                           its duly authorized investment
                                           advisor, FLETCHER ASSET MANAGEMENT,
                                           INC.

                                           By:
                                              ---------------------------------
                                                Name:
                                                Title:

                                       1-2

<PAGE>   25

                                                                       Exhibit 2

                   [FORM OF WARRANT EXERCISE DELIVERY NOTICE]

                                     [date]

Fletcher International Limited
c/o Fletcher Asset Management
22 East 67th Street
New York, NY  10021
Attn:  Peter Zayfert
Telephone:        (212) 284-4800
Facsimile:        (212) 284-4801

Ladies and Gentlemen:

         Reference is made to the Agreement (the "Main Agreement") dated as of
May 30, 2000 by and between Newpark Resources, Inc. ("Newpark") and Fletcher
International Limited ("Fletcher"). Capitalized terms not otherwise defined
herein shall have the meanings ascribed thereto in the Main Agreement.

         This notice confirms that the Warrant has been exercised by Fletcher
with respect to ________ shares of Common Stock at a Warrant Price (as defined
in the Warrant Certificate) of $________. Attached are copies of the front and
back of the ____ original stock certificates, each representing ______ shares of
Common Stock, together with a copy of the overnight courier air bill which will
be used to ship such stock certificates. Also attached is a reissued warrant
certificate, as provided in Section 1.5 of the Warrant Certificate. We will send
the original stock certificates by overnight courier to the following address:

                           [TO COME]

                           with a copy to:

                           Fletcher International Limited
                           c/o Fletcher Asset Management
                           22 East 67th Street
                           New York, NY  10021-5805
                           Attn:  Peter Zayfert

                                       2-1

<PAGE>   26

                                           NEWPARK RESOURCES, INC.

                                           By:
                                              ---------------------------------
                                                Name:
                                                Title:

                                       2-2

<PAGE>   27

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                <C>
1.       Exercise of Warrant........................................................................1
                  1.1      Manner of Exercise.......................................................2
                  1.3      When Exercise Effective..................................................3
                  1.5      Delivery of Stock Certificates, etc......................................3
                  2.2      Adjustment of Warrant Price..............................................4
                  2.4      Treatment of Stock Dividends, Stock Splits, etc..........................8
                  2.5      Computation of Consideration.............................................9
                  2.6      Adjustments for Combinations, etc.......................................10
                  2.7      Dilution in Case of Other Securities....................................10
                  2.8      Minimum Adjustment of Warrant Price.....................................11

3.       Consolidation, Merger, etc................................................................11
         3.1      Adjustments for Consolidation, Merger, Sale of Assets,
                  Reorganization, etc..............................................................11
         3.2      Assumption of Obligations........................................................12

4.       Other Dilutive Events.....................................................................13

5.       No Dilution or Impairment.................................................................13

6.       Accountants' Report as to Adjustments.....................................................14

7.       Notices of Corporate Action...............................................................14

8.       Reservation of Shares.....................................................................15

9.       Transfer and Assignment...................................................................15

10.      Lost or Stolen Warrant....................................................................16

11.      Warrant Agent.............................................................................16

12.      Definitions...............................................................................17

16.      Amendments................................................................................21
</TABLE>

                                       i

<PAGE>   28

<TABLE>
<S>                                                                                               <C>
17.      Descriptive Headings......................................................................21

18.      GOVERNING LAW.............................................................................21

19.      Judicial Proceedings; Waiver of Jury......................................................21

Exhibit 1:        Form of Warrant Exercise Notice..................................................23

Exhibit 2:        Form of Warrant Exercise Delivery Notice.........................................25
</TABLE>

                                       ii<PAGE>   1

                                                                    EXHIBIT 10.8

                SUPPLEMENTAL PROFIT SHARING PLAN FOR EMPLOYEES OF
                 TRINITY INDUSTRIES, INC. AND CERTAIN AFFILIATES
                     AS RESTATED EFFECTIVE JANUARY 1, 2000

                                    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, 2000;

                                   WITNESSETH:

           WHEREAS, the Company wishes 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, to
align the financial interests of such employees with those of Company
shareholders 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 not
be construed to provide income to any participant or beneficiary under the
Internal Revenue Code of 1986 (hereinafter, the "Code") prior to actual receipt
of benefits hereunder;

         NOW, THEREFORE, the Company hereby agrees as follows:

                                   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 maybe.

<PAGE>   2

         (b)      ADDITIONAL MATCHING CONTRIBUTION: Any amount credited by an
                  Employer for a Plan Year to a Participant pursuant to Section
                  4.01(c) hereof.

         (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 are credited.

         (d)      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).

         (e)      ANNUAL INCENTIVE COMPENSATION: Any amount payable as an annual
                  bonus to a Participant pursuant to the Company's incentive pay
                  program.

         (f)      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
                  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.

         (g)      AWARD COMPENSATION: All items taxable as the Participant's
                  ordinary income under the Trinity Industries 1993 and 1998
                  Stock Option and Incentive Plans; provided that Award
                  Compensation expressly shall not include income or gain
                  attributable to incentive stock options awarded thereunder.

         (h)      BASE COMPENSATION: All amounts payable to a Participant which
                  constitute scheduled items of salary or wages.

         (i)      BENEFICIARY: A person or persons (natural or otherwise)
                  designated by a Participant in accordance with the provisions
                  of Section 6.06 to receive any death benefit which shall be
                  payable under this Plan.

                                       2
<PAGE>   3

         (j)      CHANGE IN CONTROL: A Change in Control shall be deemed to have
                  occurred if the event set forth in any one of the following
                  paragraphs shall have occurred:

                  (1)      any Person is or becomes the Beneficial Owner,
                           directly or indirectly, of securities of the Company
                           (not including in the securities beneficially owned
                           by such Person any securities acquired directly from
                           the Company or its affiliates) representing thirty
                           percent (30%) or more of the combined voting power of
                           the Company's then outstanding securities, excluding
                           any Person who becomes such a Beneficial Owner in
                           connection with a transaction described in clause (i)
                           of paragraph (3) below; or

                  (2)      the following individuals cease for any reason to
                           constitute a majority of the number of directors then
                           serving: individuals who, on May 6, 1997, constitute
                           the Board and any new director (other than a director
                           whose initial assumption of office is in connection
                           with an actual or threatened election contest,
                           including but not limited to a consent solicitation,
                           relating to the election of directors of the Company)
                           whose appointment or election by the Board or
                           nomination for election by the Company's stockholders
                           was approved or recommended by a vote of at least
                           two-thirds (2/3) of the directors then still in
                           office who either were directors on May 6, 1997, or
                           whose appointment, election or nomination for
                           election was previously so approved or recommended;
                           or

                  (3)      there is consummated a merger or consolidation of the
                           Company or any direct or indirect subsidiary of the
                           Company with any other corporation, other than (i) a
                           merger or consolidation which would result in the
                           voting securities of the Company outstanding
                           immediately prior to such merger or consolidation
                           continuing to represent (either by remaining
                           outstanding or by being converted into voting
                           securities of the surviving entity or any parent
                           thereof) at least sixty percent (60%) of the combined
                           voting power of the securities of the Company or such
                           surviving entity or any parent thereof outstanding
                           immediately after such merger or consolidation, or
                           (ii) a merger or consolidation effected to implement
                           a recapitalization of the Company (or similar
                           transaction) in which no Person is or becomes the
                           Beneficial Owner, directly or indirectly, of
                           securities of the Company (not including in the
                           securities beneficially owned by such Person any
                           securities acquired directly from the Company or its
                           Affiliates other than in connection with the
                           acquisition by the Company or its Affiliates of a
                           business) representing thirty percent (30%) or more
                           of the combined voting power of the Company's then
                           outstanding securities; or

                  (4)      the stockholders of the Company approve a plan of
                           complete liquidation or dissolution of the Company or
                           there is consummated an agreement for the sale or
                           disposition by the Company of all or substantially
                           all of the Company's assets, other than a sale or

                                       3
<PAGE>   4

                           disposition by the Company of all or substantially
                           all of the Company's assets to an entity, at least
                           sixty percent (60%) of the combined voting power of
                           the voting securities of which are owned by
                           stockholders of the Company in substantially the same
                           proportions as their ownership of the Company
                           immediately prior to such sale.

                  For purposes of this paragraph:

                           "Affiliate" shall have the meaning sect forth in Rule
                           12b-2 promulgated under Section 12 of the Exchange
                           Act.

                           "Beneficial Owner" shall have the meaning set forth
                           in Rule 13d-3 under the Exchange Act.

                           "Exchange Act" shall mean the Securities Exchange Act
                           of 1934, as amended from time to time.

                           "Person" shall have the meaning given in Section
                           3(a)(9) of the Exchange Act, as modified and used in
                           Section 13(d) and 14(d) thereof, except that such
                           term shall not include (i) the Company or any of its
                           subsidiaries, (ii) a trustee or other fiduciary
                           holding securities under an employee benefit plan of
                           the Company or any of its Affiliates, (iii) an
                           underwriter temporarily holding securities pursuant
                           to an offering of such securities, or (iv) a
                           corporation owned, directly or indirectly, by the
                           stockholders of the Company in substantially the same
                           proportions as their ownership of stock of the
                           Company.

         (k)      CODE: The Internal Revenue Code of 1986, as amended from time
                  to time.

         (1)      COMMITTEE OR PLAN COMMITTEE: The persons appointed under the
                  provisions of Article VIII to administer the Plan.

         (m)      COMPANY: TRINITY INDUSTRIES, INC., a corporation organized and
                  existing under the laws of the State of Delaware, or its
                  successor or successors.

         (n)      COMPENSATION: Annual Incentive Compensation, Award
                  Compensation and/or Base Compensation paid to a Participant.

         (o)      COMPENSATION REDUCTION CONTRIBUTION: An amount credited by an
                  Employer for the Plan Year to a Participant pursuant to
                  Section 4.01(a) hereof.

         (p)      COMPENSATION REDUCTION CONTRIBUTION ACCOUNT: The account
                  maintained for a Participant on the books of his Employer to
                  which Compensation Reduction Contributions and adjustments
                  related thereto are credited.

                                        4

<PAGE>   5

         (q)      DISABILITY: A physical or mental condition which, in the
                  judgment of the Committee, totally and presumably permanently
                  prevents a Participant from engaging in any substantial or
                  gainful employment. Determinations of Disability shall be made
                  on the basis of standards applied uniformly to all
                  Participants.

         (r)      DISCRETIONARY CONTRIBUTIONS: Any amount credited by an
                  Employer for the Plan Year to a Participant pursuant to
                  Section 4.01(e) hereof.

         (s)      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.

         (t)      EFFECTIVE DATE: Except where otherwise indicated herein,
                  January 1, 2000, the date on which the provisions of this
                  amended and restated Plan become effective.

         (u)      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.

         (v)      EMPLOYEE: Any individual on the payroll of an Employer (i)
                  whose wages from the Employer are subject to withholding for
                  purposes of 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)(l) of
                  ERISA, and (iii) who is designated by the Plan Committee as
                  eligible to participate in this Plan; 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.

         (w)      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.

         (x)      EMPLOYMENT COMMENCEMENT DATE: The first date on which an
                  Employee completes an Hour of Employment.

         (y)      ERISA: Public Law No. 93-406, the Employee Retirement Income
                  Security Act of 1974, as amended from time to time.

                                        5
<PAGE>   6

         (z)      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.

         (aa)     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.

         (bb)     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.

         (cc)     INITIAL EFFECTIVE DATE: July 1, 1990, the date on which the
                  Prior Plan became effective.

         (dd)     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.

         (ee)     MATCHING EMPLOYER CONTRIBUTION: Any amount credited by an
                  Employer for a Plan Year to a Participant pursuant to Section
                  4.01(b) hereof.

         (ff)     PARTICIPANT: An Employee participating in the Plan in
                  accordance with the provisions of Section 3.01.

         (gg)     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
                  3.02(d)).

                                        6
<PAGE>   7

         (hh)     PLAN: The SUPPLEMENTAL PROFIT SHARING PLAN FOR EMPLOYEES OF
                  TRINITY INDUSTRIES, INC. AND CERTAIN AFFILIATES AS RESTATED
                  EFFECTIVE JANUARY 1,2000, the Plan set forth herein, as
                  amended from time to time.

         (ii)     PRIOR PLAN: The SUPPLEMENTAL PROFIT SHARING PLAN FOR EMPLOYEES
                  OF TRINITY INDUSTRIES, INC. AND CERTAIN AFFILIATES, as in
                  effect prior to the Effective Date.

         (jj)     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.

         (kk)     SERVICE: A Participant's period of employment with the
                  Employers determined in accordance with Section 3.02.

         (ll)     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.

         (mm)     STOCK UNIT: A deemed share of Company common stock, more fully
                  described in Section 5.04 hereof.

         (nn)     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.

         (oo)     TRUSTEE: The corporation, individual or individuals appointed
                  to administer the Trust in accordance with the agreement
                  governing the Trust.

         (pp)     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.

         (qq)     YEAR or PLAN YEAR: The twelve (12)-month period ending on
                  March 31 of each year.

                                        7
<PAGE>   8

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.

                                   ARTICLE III

                            PARTICIPATION AND SERVICE

3.01     Participation

         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.

         An individual classified as an Employee under Section 2.01(v) hereof
         shall become a Participant in this Plan on the first day of (i) the
         month on or immediately following such classification or (ii) any of
         his taxable years thereafter, provided that, prior to such date, he
         shall first have undertaken the actions specified in Section 3.03
         hereof.

         An active Participant who incurs a Severance from Service and who is
         subsequently reemployed by an Employer shall reenter the Plan as an
         active Participant on his Reemployment Commencement Date or 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(v) hereof and (ii) prior to such date he shall have again
         undertaken the actions specified in Section 3.03 hereof. In the event
         that a Participant shall cease to qualify as an Employee within the
         meaning of Section 2.01(v) hereof, his Participation shall thereupon
         cease but he shall continue to accrue Service hereunder during the
         period of his continued employment with the Employers.

         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.

                                        8
<PAGE>   9

3.02     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 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

                                       9
<PAGE>   10

                           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(ll)(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(ll)(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 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 3.02,
                  the Elapsed-Time Employment and Service of any Participant who
                  failed to elect to participate hereunder pursuant to Section
                  3.03 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 will not, under any circumstances,
                  be treated as Service unless such Participant elects to
                  participate hereunder pursuant to such Section 3.03 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 3.02, in the case of
                  an Extended

                                       10
<PAGE>   11
                  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.

3.03     Election to Participate

         In order to participate hereunder, an Employee, otherwise eligible to
         participate pursuant to Section 3.01 hereof, must, after having
         received a written explanation of the terms of and the benefits
         provided under the Plan, elect to participate in such Plan on such form
         or forms as the Committee may provide and must execute a compensation
         reduction agreement described in Section 4.02 hereof. Such election to
         participate and execution of a compensation reduction agreement shall
         be effected on any date on or prior to the applicable date specified in
         such Section 3.01 for the commencement of Participation and, in all
         events, prior to the completion of services for which amounts subject
         to the compensation reduction agreement would otherwise have been paid
         to such Employee.

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.

                                   ARTICLE IV

                          CONTRIBUTIONS AND FORFEITURES

4.01     Employer Contributions

         Employers shall credit Participant accounts in accordance with the
         following:

         (a)      Compensation Reduction Contribution. 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; 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. 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; and

                  (iii)    Award Compensation.

                                       11

<PAGE>   12

         (b)      Matching Employer Contribution. For each Year, each Employer
                  shall credit a Matching Employer Contribution amount in the
                  form of Stock Units 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:

<TABLE>
<CAPTION>
                   Years of Service                   Applicable Percentage
                   ----------------                   ---------------------
<S>                                                   <C>
                   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%
</TABLE>

         (c)      Additional Matching Contribution. For each Year, each Employer
                  shall credit an additional amount in the form of Stock Units
                  to each of its Employees for whom an amount was credited
                  pursuant to paragraph (a) of this Section 4.01, which when
                  added to the Forfeitures which have become available for
                  application as of the end of the Year pursuant to Section 4.03
                  hereof and which have not been applied as provided in
                  paragraph (b) of this Section, shall be equal to seventeen and
                  one-half percent (17 1/2%) of that portion of the
                  Participant's Compensation Reduction Contribution for such
                  Year pursuant to Section 4.02 hereof which is invested or
                  deemed invested in Stock Units pursuant to Section 5.02(a)
                  hereof up to twenty-five percent (25%) of the sum of his Base
                  Compensation and Annual Incentive Compensation for such Year.

         (d)      Limitations on Matching Contributions. Except in the case of a
                  Participant who "retires" (as defined in the Trinity
                  Industries, Inc. Standard Pension Plan), 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 or Additional Matching 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 will a
                  Matching Employer Contribution or Additional Matching
                  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. 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

                                       12

<PAGE>   13

                  Participant for such Year under the Profit Sharing Plan for
                  Employees of Trinity Industries, Inc. and Certain Affiliates.

         (e)      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 the form of Stock Units or otherwise 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. The terms of such
                  compensation reduction agreement shall provide that the
                  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)      Election Requirements. 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 Participant's Employer, but in no
                           event shall 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 received by the Corporate Benefits department of
                           the Company.

                  (2)      A compensation reduction agreement shall have been
                           entered into by a Participant on or prior to
                           commencement of Participation hereunder and shall
                           remain in effect until terminated or amended by the
                           Participant in accordance with the procedures set
                           forth herein. Any amendment or termination of a
                           compensation reduction agreement shall not be
                           effective until the first day of the Participant's
                           taxable year immediately following the taxable year
                           of the Participant in which an election so to amend
                           or terminate is executed by the Participant and his
                           Employer and must be received by the Corporate
                           Benefits department of the Company at least fifteen
                           (15) days prior to the end of the taxable year of
                           execution. If a Participant

                                       13

<PAGE>   14

                           terminates his compensation reduction agreement as
                           hereinabove provided, then he may elect to enter into
                           another compensation reduction agreement to be
                           effective as of the first day of any of his taxable
                           years following his taxable year in which such
                           termination was first effective, provided that
                           written notice of such election must be received by
                           the Corporate Benefits department of the Company at
                           least fifteen (15) days prior to such effective date.
                           Notwithstanding the preceding provisions of this
                           subparagraph (2), to the extent that a compensation
                           reduction agreement reduces Award Compensation
                           described in subparagraph (1)(i) of this paragraph
                           (b), such agreement shall at all times be
                           irrevocable.

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 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) until it is distributed in full. The
         Participant shall receive a distribution of the nonforfeitable portion
         of his Accounts pursuant to Article VI.

                                    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. When appropriate, a Participant shall have up to four
         separate Accounts, a Compensation Reduction Contribution Account, a
         Matching Contribution Account, an Additional Matching Contribution
         Account, 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 3.03 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; provided further, that
                  a Participant may not change the hypothetical election which
                  applies to any portion of his Accounts that is invested or
                  deemed to be invested in Stock Units. The earnings or losses
                  attributable to a Participant's Accounts shall be determined
                  as if the amounts credited to such Accounts

                                       14

<PAGE>   15

                  were actually invested in Stock Units, to the extent required
                  or elected hereunder, and, to the extent not so required or
                  elected, 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 will 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
                  Account will be deemed invested in Stock Units, to the extent
                  required hereunder, and, to the extent not so required, 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 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 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. The Committee shall permit Participants to designate
                  that their investments be treated as invested in (i) Stock
                  Units or (ii) one or more investment indices; provided that
                  amounts credited on or after the Effective Date to a
                  Participant's Matching Contribution Account or Additional
                  Matching Contribution Account shall at all times be invested
                  in Stock Units; provided further that Compensation Reduction
                  Contributions made on or after the Effective Date of Award
                  Compensation shall at all times be invested 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 investment in Stock
                  Units is required hereunder, 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.

                                       15

<PAGE>   16

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 Stock Units credited to a
                  Participant by an Employer pursuant to Section 4.01(b) or (c)
                  during a Year shall be allocated, as the case may be, to the
                  Participant's Matching Contribution Account or the
                  Participant's Additional Matching Contribution Account at such
                  time as may be determined by the Employer in its absolute
                  discretion, but no earlier than the last day of such Year.

         (d)      Discretionary Contributions. Any amounts credited to a
                  Participant by an Employer pursuant to Section 4.01(e) 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 Accounts
                  pursuant to Section 5.03 (b) or (d), 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
                  purposes of calculating the number of Stock Units credited to
                  a Participant's Accounts pursuant to Section 5.03 (c), 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,

                                       16

<PAGE>   17

                  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 equal to the value of
                  such dividends. Such amounts shall be credited to the
                  Participant's Accounts in the form of additional Stock Units
                  at a price 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 such dividend is
                  paid (or if no shares of the Company's common stock are traded
                  on such date, on the immediately preceding trading date).

         (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 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

                                       17

<PAGE>   18

                  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.

                                   ARTICLE VI

                            DISTRIBUTION OF BENEFITS

6.01     General

         Within thirty (30) days following the termination of a Participant's
         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" (as defined in the Trinity
                  Industries, Inc. Standard Pension Plan), shall be made in such
                  form as the Participant may elect from the following
                  alternatives:

                  (1)      In a lump sum;

                  (2)      In annual periodic payments for a specified number of
                           years, not in excess of 20, with the first payment to
                           be made no later than the sixtieth (60th) day
                           following the date on which the Participant's
                           termination of employment occurs and subsequent
                           payments to be made in the same calendar quarter of
                           each succeeding year, where the payment made during
                           each year shall be in an amount equal to a fraction
                           of the Participant's Account balances as of the last
                           day of the calendar quarter preceding the calendar
                           quarter in which the payment is made, and 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) until it is distributed in full; or

                  (3)      In any combination of the methods specified in
                           subparagraphs (1) or (2) of this paragraph (a).

                                       18

<PAGE>   19

                  Any election pursuant to this paragraph (a) must be made prior
                  to the date on which such Employee's Participation hereunder
                  first commences, with all payments to be made in the form of a
                  lump sum in the absence of a timely election and, except as
                  expressly provided otherwise in this Plan, shall be
                  irrevocable; provided, however, that a Participant may change
                  such election once during any Year, with the new election to
                  be effective for a distribution arising from termination of
                  employment of the Participant only if such distribution is to
                  be made or commence for more than twelve (12) months after the
                  date of the new election. 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.

         (b)      Termination of Employment. Payments with respect to a
                  Participant's termination of employment for reasons other than
                  death, Disability or "retirement" (as defined in the Trinity
                  Industries, Inc. Standard Pension Plan) shall be made in the
                  form of a lump sum.

         (c)      Prior Plan Elections. Notwithstanding the preceding provisions
                  of this Section 6.02 and with respect to an Employee who
                  became a Participant in the Prior Plan before the Effective
                  Date, such Participant's election with respect to the form of
                  payment made pursuant to the provisions of the Prior Plan
                  shall remain in effect unless changed by the Participant in
                  the manner and to the extent described in paragraph (a) above.

         (d)      Timing. Payment of amounts credited to a Participant's
                  Accounts must be made or commence by no later than the
                  sixtieth (60th) day following the date on which the
                  Participant's termination of employment occurs.

         The Trustee (to the extent provided in the Trust) or the Treasurer of
         the Employer, as applicable, shall thereafter make payments of benefits
         in the manner and at the times specified above, subject, however, to
         all of the other terms and conditions of this Plan and the Trust. 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. 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.

6.03     Vesting of Benefits

         (a)      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.

         (b)      Termination of Employment. (1) Compensation Reduction
                  Contribution Account. If a Participant's termination of
                  employment is not attributable to his death or Disability, he
                  shall be entitled to the entire amount then credited to his
                  Compensation Reduction Contribution Account.

                                       19

<PAGE>   20

         (2)      Additional Matching Contribution Account. If a Participant's
                  termination of employment is not attributable to his death or
                  Disability, he shall be entitled to amounts 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 on
                  or after age sixty-five (65), the Committee may, in its sole
                  discretion, authorize a distribution of the entire amount
                  credited to his Additional Matching Contribution Account;
                  provided, further, that if such termination of employment
                  occurs on or after a Change in Control, the Participant shall
                  be entitled to the entire amount credited to his Additional
                  Matching Contribution Account.

         (3)      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 credited to
                  his Matching Contribution Account and Discretionary
                  Contribution Account, if any, based on his years of Service as
                  follows:

<TABLE>
<CAPTION>
                                                       Vested                   Forfeited
                   Years of Service                  Percentage                 Percentage
                   -----------------                 ----------                 ----------
<S>                                                   <C>                       <C>
                   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%
</TABLE>

                  ; provided, however, that if the Participant terminates
                  employment by reason of retirement on or after age sixty-five
                  (65), the Committee may, in its discretion, authorize up to
                  full vesting of the entire amount credited to such Accounts;
                  provided, further, that if such termination of employment
                  occurs on or after a Change in Control, the Participant shall
                  under all circumstances be entitled to the entire amount
                  credited to such Accounts. Notwithstanding the preceding
                  provisions of this subparagraph (3), 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 on or after age sixty-five (65), 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.

                                       20

<PAGE>   21
6.04     Death

         If a Participant shall die 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     Plan Termination

         If the Plan is terminated pursuant to the provisions of Article X
         hereof, the Committee shall cause the Trustee or the Treasurer of the
         Employer, as applicable, to pay to all Participants all of the amounts
         then standing to their credit, with payment to be made at the time and
         in the manner specified in Section 6.02 hereof; provided, however, that
         if the Plan is terminated on or after a Change in Control, payment
         shall be made in the form of a lump sum which shall be paid no later
         than sixty (60) days following the date on which the Plan termination
         occurs, or, if elected by the Participant at least one full year prior
         to the date on which payment otherwise would have been made upon
         termination of the Plan, payment may be made in the form of five annual
         installments, with the first installment to be made no later than sixty
         (60) days following the date on which the termination occurs and the
         remaining installments to be paid no later than the last day of
         February of the next four successive calendar years. Each installment
         shall be in an amount equal to a fraction of the total balance in the
         Participant's Accounts as of the end of the immediately preceding
         calendar quarter, where the fraction shall be one (1) divided by the
         number of installments remaining to be paid (including the current
         installment), and where the unpaid balance shall continue to be
         adjusted as provided in Section 5.03(a) until it is distributed in
         full.

6.06     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 will be effective only when filed with
         the Committee during the Participant's lifetime. Each Beneficiary
         designation filed with the Committee will cancel all Beneficiary
         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:

                                       21
<PAGE>   22

         (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.

6.07     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 provisions of this Article VI except as
         follows:

         (a)      A distribution may be made to or on behalf of the Participant
                  to the extent that the Committee, in its sole discretion,
                  consents to such distribution upon a showing, by the
                  Participant, of an unforeseeable emergency. For this purpose,
                  an "unforeseeable emergency" is defined as severe financial
                  hardship to the Participant resulting from a sudden and
                  unexpected illness or accident of the Participant or of a
                  dependent of the Participant, loss of the Participant's
                  property due to casualty, or other similar extraordinary and
                  unforeseeable circumstances arising as a result of events
                  beyond the control of the Participant. The circumstances that
                  will constitute an unforeseeable emergency will depend on the
                  facts of each case, but payment may not be made to the extent
                  that such hardship is or may be relieved--(i) through
                  reimbursement or compensation by insurance or otherwise, (ii)
                  by liquidation of the Participant's assets, to the extent that
                  the liquidation of such assets would not itself cause severe
                  financial hardship, or (iii) by cessation of deferrals under
                  the Plan.

         (b)      A lump sum distribution may be made to or on behalf of a
                  Participant at any time, but no more often than once during
                  any Year, of an amount equal to at least 25% of the
                  Participant's nonforfeitable Account balances, and in such
                  proportions from each such Account as the Participant may
                  request; provided, however, that (i) an amount equal to 10% of
                  the amount distributed from the Accounts of a Participant
                  pursuant to this paragraph shall be forfeited in the same
                  proportion from such Accounts at the time of the distribution
                  so that the amount distributed to the Participant pursuant to
                  this paragraph shall never exceed the amount of the
                  Participant's nonforfeitable Account balances minus the amount
                  so forfeited, and (ii) the compensation reduction agreement of
                  any Participant who receives a distribution pursuant to this
                  paragraph shall be suspended for one full year from the date
                  of such distribution.

6.08     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 or on
         behalf of 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

                                       22
<PAGE>   23

         year for which the election is made. The distribution shall be made no
         later than March 31 of the designated year. In the event of the
         Participant's termination of employment for any reason prior to the
         designated year, the election shall be void and of no effect.

                                   ARTICLE VII

                             NATURE OF PLAN; FUNDING

7.01     No Trust Required

         The adoption of this Plan and any setting aside 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.

                                  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" with respect to the general administration of the Plan.

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

                                       23
<PAGE>   24

         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. 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 (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 upon 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
         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

                                       24
<PAGE>   25

         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.

                                   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.

                                       25
<PAGE>   26

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 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 relevant documents 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 upon
         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.

                                       26
<PAGE>   27

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.

                                    ARTICLE X

                        AMENDMENTS OR TERMINATION OF PLAN

     The Board of Directors of the Company shall have the power and right from
time to time to modify, amend, supplement, suspend or terminate the Plan as it
applies to each Employer, provided that no such change in the Plan may deprive a
Participant of the amounts allocated to his or her accounts or be retroactive in
effect to the prejudice of any Participant.

     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.

                                   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

                                       27
<PAGE>   28

         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 employment of a Participant with the Company or other
                  Participating Employer is terminated 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 terminated
                  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 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.

                                       28
<PAGE>   29

     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 16 day of November, 1999, effective as of January 1, 2000.

                                       TRINITY INDUSTRIES, INC.

                                       By: /s/ MJ LINTNER
                                          --------------------------------------
                                       Title:  VP of Human Resources
                                              ----------------------------------

ATTEST:

     [ILLEGIBLE]
--------------------------

THE STATE OF TEXAS                   )
                                     )
COUNTY OF DALLAS                     )

     This instrument was acknowledged before me on the 16th day of November,
1999, by M.J. Linter of TRINITY INDUSTRIES, INC., a Delaware corporation, on
behalf of said corporation.

[SEAL]                                 /s/ KATHLEEN L. SOUTHMAYD
                                       -----------------------------------------
                                       Notary Public in and for
                                       the State of Texas

My Commission Expires:                 Printed Name of Notary:

     06/24/2003                        Kathleen L. Southmayd
--------------------------             -----------------------------------------

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