Document:

Document

Exhibit 10.19

September ____, 2021

Re:  Retention Bonus
Dear [EMPLOYEE]:
As you know, Kansas City Southern (the “Company”) has agreed to merge with Canadian Pacific Railway Limited (the “Merger”).  Reference is made to the Agreement and Plan of Merger by and among Canadian Pacific Railway Limited (“Parent”), Cygnus Merger Sub 1 Corporation, Cygnus Merger Sub 2 Corporation and the Company, dated as of September 15, 2021 (the “Merger Agreement”).  Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to them as set forth in the Merger Agreement.  Because your leadership is very important to the successful execution of our strategic plans, the Company is prepared to offer you the incentive arrangement described below to ensure that the Company will have the benefit of your continued employment and your strong commitment to the Company. 

You will be entitled to a retention bonus equal to $[___] (the “Retention Bonus”), payable in two installments as follows:  (1) 25% on the earlier of:  (a) the date on which the First Effective Time occurs or (b) February 21, 2022, and (2) 75% on the earlier of: (a) the date that is ninety (90) days after the Control Date or (b) June 1, 2023, subject in each case to your continued employment through the applicable payment dates; provided, however, that if you experience a Qualifying Termination on or after the date on which the First Effective Time occurs, you will be entitled to payment of any unpaid portion of the Retention Bonus no later than five business days following such Qualifying Termination.  Except as specifically provided in the immediately preceding sentence, if your employment with the Company terminates for any reason, you will forfeit any right to receive the Retention Bonus.  
For purposes of this letter:  
(a) “Cause” means, for an individual who is party to an agreement with the Company that defines Cause, Cause as defined in such agreement, or, for any other individual, :  (i) your conviction for committing an act of fraud, embezzlement, theft, or any other act constituting a felony involving moral turpitude or causing material damage or injury, financial or otherwise, to the Company, (ii) a demonstrably willful and deliberate act or failure to act which is committed in bad faith, without reasonable belief that such action or inaction is in the best interests of the Company, which causes material damage or injury, financial or otherwise, to the Company (but only if such act or inaction is not remedied within 15 business days of your receipt of written notice from the Company which describes the act or inaction in reasonable detail), or (iii) your consistent gross neglect of duties or consistent wanton negligence by you in the performance of your duties (but only if such neglect or negligence is not remedied within a reasonable remedial period after your receipt of written notice from the Company which describes such neglect or negligence in reasonable detail and specifies the remedial period).
(b) “Good Reason” means, for an individual who is party to an agreement with the Company that defines Good Reason, Good Reason as defined in such agreement, or, for any other individual, the occurrence of any of the following events without your written consent:  (i) a material reduction in your total direct compensation, or (ii) a relocation of your principal place of employment by more than fifty (50) miles; provided that your resignation shall be considered to be for “Good Reason” only if (x) you provide notice to the Company of the act or omission constituting Good Reason within thirty (30) days following the occurrence of such act or omission, (y) the Company fails 
    

to remedy such act or omission within thirty (30) days following receipt of such notice, and (z) you resign within thirty (30) days after the end of such cure period.  
(c) “Qualifying Termination” means a termination of your employment (i) by the Company without Cause , or (ii) by you for Good Reason.  
You acknowledge that, except as may otherwise be provided under any other written agreement between you and the Company, your employment is “at will” and may be terminated by either you or the Company at any time and for any reason.
This letter shall supersede in its entirety the retention bonus letter you received in connection with the Canadian National Agreement and shall render such retention bonus letter null and void in all respects.  This letter may not be amended or modified, except by an agreement in writing signed by you and the Company.  This letter shall be binding upon any successor of the Company or its businesses (whether direct or indirect, by purchase, merger, consolidation or otherwise), in the same manner and to the same extent that the Company would be obligated under this letter if no succession had taken place.  The term “Company,” as used in this letter, shall mean the Company as hereinbefore defined and any successor or assignee to the business or assets which by reason hereof becomes bound by this letter.  
This letter shall be governed by, and construed in accordance with, the laws of the State of Missouri, without reference to its conflict of law rules.  All benefits hereunder are subject to withholding for applicable income and payroll taxes or otherwise as required by law. 
Please be mindful of the fact that the Company has made this retention bonus opportunity available to a select group of employees of the Company.  Please keep confidential the fact that you have received this letter as well as the contents of this letter.
We look forward to a very promising future.  In order to be eligible to receive these benefits, it is important that you sign this letter and return it to [CONTACT] as soon as practicable. 
Very truly yours,

By:_______________________________________    

Title:    

Accepted and Acknowledged:

                    

Name:                                         

-2-Document

Exhibit 10.5.1

KANSAS CITY SOUTHERN
EXECUTIVE DEFERRED COMPENSATION PLAN
AMENDMENT NO. 1 

    With this Amendment No. 1 dated this 2nd day of November, 2021, Kansas City Southern, a Delaware corporation (the “Company”) amends the Kansas City Southern Executive Deferred Compensation Plan, dated August 31, 2018 (the "Plan").
    WHEREAS, as is permitted by Article IX of the Plan, the Company desires to amend the Plan to expand the types of compensation that are eligible to be deferred thereunder; 
    NOW THEREFORE, effective as of November 1, 2021, the Company hereby amends Article II of the Plan by replacing the Plan's defined terms of "Compensation," "Compensation Deferral Agreement," "Deferral" and "Sub-Account" with the following definitions, and adding a new defined term of "Class Year Other Deferral Sub-Account":
Compensation. Compensation means a Participant's (i) base salary, (ii) incentive bonuses paid under the Company's Annual Incentive Plan or (iii) any other type of compensation otherwise eligible to be paid to a Participant from the Company and which the Company's Chief Executive Officer, in his or her sole discretion, designates as eligible to be deferred pursuant to a Compensation Deferral Agreement and that is permissible to be deferred under Code Section 409A. 
Compensation Deferral Agreement. Compensation Deferral Agreement means an agreement between a Participant and a Participating Employer that specifies with respect to each Deferral: (i) the amount of each component of Compensation (e.g., base salary, annual incentive bonus or other specified eligible component of Compensation) that the Participant has elected to defer to the Plan in accordance with the provisions of Article IV, and (ii) the payment schedule applicable to one or more Sub-Accounts. The Committee may permit different deferral amounts for each component of Compensation and may establish a minimum or maximum deferral amount for each such component. Unless otherwise specified by the Committee in the Compensation Deferral Agreement, Participants may defer up to 50% of their base salary and up to 75% of their incentive bonuses under the Company's Annual Incentive Plan (which may or may not constitute Performance-Based Compensation). Unless otherwise determined by the Company, all required tax withholding associated with any deferral of Compensation will be withheld from the Participant's other compensation. A Compensation Deferral Agreement may also specify the investment allocation described in Section 7.4.
Class Year Other Deferral Sub-Account. Class Year Other Deferral Sub-Account means the Sub-Account to which a Deferral from a component of Compensation other than base salary or an incentive bonus under the Company's Annual Incentive Plan is made during a single calendar year. A separate Class Year Other Deferral Sub-Account will be established for each separate calendar year for which a deferral has been made.
Deferral. Deferral means a credit to a Sub-Account that records that portion of the Participant's Compensation that the Participant has elected to defer pursuant to his or her Compensation Deferral Agreement, and with respect to such deferral specifying both (i) the designated payment commencement date or event and (ii) the payment schedule applicable for those deferrals. Unless the context of the Plan clearly indicates otherwise, a reference to a Deferral includes Earnings attributable to such Deferrals. Deferrals shall be calculated with respect to the gross cash Compensation payable to the Participant before any deductions or withholdings, but shall be reduced by the Committee as necessary so that it does not exceed 100% of the cash Compensation of the Participant remaining after deduction of all required income and employment taxes, 401(k) and other employee benefit deductions, and other deductions required by law. Changes to payroll withholdings that affect the amount of Compensation being deferred to the Plan shall be allowed only to the extent permissible under Code Section 409A.

        

Sub-Account. Sub-Account means a Participant's Class Year Bonus Deferral Sub-Account, Class Year Salary Deferral Sub-Account, Class Year Other Deferral Sub-Account, or Company Sub-Account. Except for the Company Sub-Account, each sub-account is a bookkeeping account maintained by the Company to record the Deferrals made to that sub-account for a specific year. The Company Sub-Account is a bookkeeping account maintained by the Company to record all Company Contributions (regardless of any specific year). Each Sub-Account is intended to constitute an unfunded obligation within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.
Except as otherwise provided in this Amendment, the provisions of the Plan remain in full force and effect. 
Kansas City Southern

By:     /s/ Adam J. Godderz            
    Adam J. Godderz
    General Counsel & Corporate Secretary

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