Document:

EX-10.(d)

 Exhibit 10(d) 
  

 
  

 
 UNION PACIFIC CORPORATION 

KEY EMPLOYEE CONTINUITY PLAN 
  

 
 Dated as of November 16, 2000 

(as amended and restated effective as of January 1, 2009 and as further amended February 3, 2011 and 

February 6, 2014) 
 (The
severance benefits provided under this Plan are subject to the terms and limitation of the Board of Director’s Policy Regarding Shareholder Approval of Future Severance Agreements, adopted on September 25, 2003) 

 
  

 

 UNION PACIFIC CORPORATION 

KEY EMPLOYEE CONTINUITY PLAN 

(as amended and restated effective as of January 1, 2009 
 and as further amended February 3, 2011 and February 6, 2014) 
  

The Company herebefore adopted, effective as of November 16, 2000, the Union Pacific Corporation Key Employee Continuity Plan
for the benefit of certain employees of the Company and its Affiliates (the “Plan”). The Plan is hereby amended and restated in its entirety, effective as of January 1, 2009, to reflect the requirements of Section 409A of the
Code. The Plan was further amended February 3, 2011 and February 6, 2014. All capitalized terms used herein are defined in Section 1 hereof. The Plan, as a “severance pay arrangement” within the meaning of
Section 3(2)(B)(i) of ERISA, is intended to be excepted from the definitions of “employee pension benefit plan” and “pension plan” set forth under Section 3(2) of ERISA, and is intended to meet the descriptive
requirements of a plan constituting a “severance pay plan” within the meaning of regulations published by the Secretary of Labor at Title 29, Code of Federal Regulations, § 2510.3-2(b). 

 
 SECTION
1.                     DEFINITIONS. As hereinafter used: 
 SECTION 1.1    “Affiliate” shall have the meaning set forth in Rule 12b-2 under Section 12 of the Exchange Act. 

SECTION 1.2    “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange
Act. 
 SECTION 1.3    “Board” means the Board of Directors of the Company. 

SECTION 1.4    “Cause” means (i) the willful and continued failure by the Eligible Employee to
substantially perform the Eligible Employee’s duties with the Employer (other than any such failure resulting from the Eligible Employee’s incapacity due to physical or mental illness), or (ii) the willful engaging by the Eligible
Employee in conduct which is demonstrably injurious to the Company, monetarily or otherwise. For purposes of this definition, no act, or failure to act, on the Eligible Employee’s part shall be deemed “willful” unless done, or omitted
to be done, by the Eligible Employee not in good faith or without reasonable belief that the Eligible Employee’s act, or failure to act, was in the best interest of the Company. 

SECTION 1.5    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: 

(i)          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 20% 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 (A) of paragraph (iii) below; or 

(ii)         the following individuals cease for any reason to constitute a
majority of the number of directors then serving: individuals who, on November 16, 2000, 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 shareholders 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 the date hereof or whose appointment, election or nomination for election was previously so approved or recommended; or 

 (iii)        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 (A) 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) more than 50% 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 (B) 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) representing
20% or more of the combined voting power of the Company’s then outstanding securities; or 

(iv)        the shareholders 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 disposition by the Company of all or substantially all of
the Company’s assets to an entity, more than 50% of the combined voting power of the voting securities of which is owned by shareholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to
such sale. 
 SECTION 1.6    “Code” means the Internal Revenue Code of 1986, as it may be amended from time to
time. 
 SECTION 1.7    “Company” means Union Pacific Corporation, a Utah corporation, or any successors
thereto. 
 SECTION 1.8    “Eligible Employee” means any employee who is a Tier 1, Tier 2 or
Tier 3 Employee. An Eligible Employee becomes a “Severed Employee” once he or she incurs a Severance. 
 SECTION
1.9    “Employer” means the Company or any of its Affiliates which is an employer of an Eligible Employee. 
 SECTION 1.10  “Equity Award” shall mean stock options, restricted stock, restricted stock units and other similar equity-based awards which are granted to an Eligible Employee by
the Company (excluding, however, restricted stock unit awards made under the Company’s 2006 Long Term Plan, 2007 Long Term Plan, 2008 Long Term Plan, or any similar awards with performance criteria made under a long term incentive plan adopted
by the Company subsequent to the date hereof). 
 SECTION 1.11  “Exchange Act” shall mean the Securities Exchange Act of
1934, as amended from time to time. 
 SECTION 1.12  “Good Reason” means the occurrence, on or after the
date of a Change in Control and without the affected Eligible Employee’s written consent, of any of the following: (i) the assignment to the Eligible Employee of duties that are materially inconsistent with the Eligible Employee’s
duties immediately prior to the Change in Control (other than pursuant to a transfer or promotion to a position of equal or enhanced responsibility or authority) or any material diminution in the nature or scope of the Eligible Employee’s
responsibilities from those in effect immediately prior to the Change in Control; (ii) a reduction by the Employer (or any member of the Parent Group) in the Eligible Employee’s annual base salary or annual incentive opportunity from that
in effect immediately prior to the Change in Control; provided, however, that such reduction results in a material diminution in the total package of compensation and benefits provided to the Eligible Employee for performing services from that in
effect immediately prior to the Change in Control; (iii) a material reduction by the Employer (or any member of the Parent Group) in the pension, thrift, medical or long term disability benefits provided to the Eligible Employee from those
provided to the Eligible Employee immediately prior to the Change in Control; 

  
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provided, however, that such reduction results in a material diminution in the total package of compensation and benefits provided to the Eligible Employee for performing services from that in
effect immediately prior to the Change in Control; or (iv) the failure by any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise), to all or substantially all of the business and/or assets of the Company, to
expressly assume and agree to perform this Plan in the same manner and to the same extent that the Company would be required to perform it if no succession had taken place. 

(a)          The Eligible Employee must notify the Employer of the existence of
the reason or condition that the Eligible Employee believes would permit a separation from service for Good Reason within ninety (90) days of the initial existence of such reason or condition. The Employer (or member of the Parent Group, as
applicable) shall, following receipt of such notice, have a period of not less than thirty (30) days to cure the condition and not be required to pay the Severance Payment or provide any other payment or benefit described in Section 2 that
is conditioned on the Eligible Employee’s Severance. The Employer may establish procedures with respect to the notice and cure provisions described above, consistent with Treas. Reg. § 1.409A-1(n), and may in appropriate circumstances
waive part or all of the above-described cure period. 
 SECTION 1.13  “Parent” shall mean the ultimate parent, if any,
of the Company after a Change in Control. 
 SECTION 1.14  “Parent Group” shall mean, collectively, the Parent and its
Affiliates. 
 SECTION 1.15  “Person” shall have the meaning given in Section 3(a)(9) of the
Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any of its Affiliates, (ii) a trustee or other fiduciary holding securities under an employee benefit plan
of the Company or any of its subsidiaries, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities or (iv) a corporation owned, directly or indirectly, by the shareholders of the Company in
substantially the same proportions as their ownership of stock of the Company. 
 SECTION 1.16  “Plan”
means the Union Pacific Corporation Key Employee Continuity Plan, as set forth herein, as it may be amended from time to time. 

SECTION 1.17  “Plan Administrator” means the person or persons appointed from time to time by the Board which
appointment may be revoked at any time by the Board. 
 SECTION 1.18  A “Potential Change in Control”
shall be deemed to have occurred if the event set forth in any one of the following paragraphs shall have occurred: 

(a)          the Company enters into an agreement, the consummation of which
would result in the occurrence of a Change in Control; 

(b)          the Company or any Person publicly announces an intention to take
or to consider taking actions which, if consummated, would constitute a Change in Control; 

(c)          any Person 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 fifteen (15%) or more of either the then outstanding shares of common
stock of the Company or the combined voting power of the Company’s then outstanding securities; or 

(d)          the Board adopts a resolution to the effect that a Potential Change
in Control has occurred. 

  
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 SECTION 1.19  “Severance” means the separation from service (as such
term is defined in section 409A of the Code and the regulations promulgated thereunder) of an Eligible Employee from the Employer on or within two years following the date of the Change in Control, (i) by the Employer, other than for Cause or
pursuant to mandatory retirement policies of the Employer that existed prior to the Change of Control, or (ii) by the Eligible Employee for Good Reason. An Eligible Employee will not be considered to have incurred a Severance if his or her
employment is (a) discontinued by reason of the Eligible Employee’s death or a physical or mental condition causing such Eligible Employee’s inability to substantially perform his or her duties with the Employer, including, without
limitation, such condition entitling him or her to benefits under any sick pay or disability income policy or program of the Employer or (b) discontinued by reason of the divestiture of a facility, sale of a business or business unit, or the
outsourcing of a business activity with which the Eligible Employee is affiliated, if the Eligible Employee is offered comparable employment by the entity which acquires such facility, business or business unit or which succeeds to such outsourced
business activity and such entity agrees to assume the obligations of the Employer to the Eligible Employee under this Plan. 
 SECTION
1.20  “Severance Date” means the date on or after the date of the Change in Control on which an Eligible Employee incurs a Severance. 
 SECTION 1.21  “Severance Payment” means the payment determined pursuant to Section 2.1 hereof. 
 SECTION 1.22  “Tier 1 Employee” means any employee of the Employer designated as such by a resolution of the Board. 

SECTION 1.23  “Tier 2 Employee” means any employee of the Employer designated as such by a resolution of the
Board. 
 SECTION 1.24  “Tier 3 Employee” means any employee of the Employer designated as such by a
resolution of the Board. 
  
 SECTION
2.                    BENEFITS. 
 SECTION 2.1    (a)         Each Eligible Employee who incurs a Severance shall be entitled, subject to Section 2.6 hereof, to receive a
Severance Payment equal to the product of (i) the sum of (A) such Eligible Employee’s annual base salary as in effect immediately prior to such Severance, plus (B) the average annual incentive compensation earned (or foregone at
the election of the Eligible Employee) by such Eligible Employee in respect of the three (or fewer, as hereinafter described) annual incentive compensation determinations (including determinations that no annual incentive compensation will be
awarded) immediately preceding the Severance (or, if higher, in respect of the three (or fewer, as hereinafter described) annual incentive compensation determinations immediately preceding the Change in Control) multiplied by (ii) in the case
of a Tier 1 Employee, three (3), in the case of a Tier 2 Employee, two (2); and in the case of a Tier 3 Employee, one and one-half (1.5). For purposes of clause (A) above, annual base salary shall be determined immediately prior to the
Severance (without regard to any reductions therein which constitute Good Reason) and for purposes of clause (B) above, annual incentive compensation determinations prior to 2000 (with respect to annual incentive compensation earned for plan
years prior to 1999) shall be disregarded. 
 (b)        The
Severance Payment shall be paid to a Severed Employee in a cash lump sum, within twenty (20) business days immediately following the expiration of the revocation period, if any, applicable to such Severed Employee’s release described in
Section 2.6; but in no event later than March 15th of the year
following the calendar year in which the Severance Date occurs. 
 SECTION 2.2    Each Eligible Employee who
incurs a Severance and who is, at the time of such Severance, a participant in the Supplemental Pension Plan for Officers and Managers of Union Pacific 

  
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Corporation and Affiliates (the “UPC SERP”) shall, for purposes of the UPC SERP, (i) be deemed to have accumulated an additional thirty-six (36) months of age and service
credit beyond the Severance Date solely for purposes of determining the amount of any UPC SERP benefit (but in no event beyond age 65 and in no event shall aggregate service under the UPC SERP exceed forty (40) years), and (ii) be deemed
to be fully vested under such SERP. 
 SECTION 2.3    For a period of three years following a Severed
Employee’s Severance Date (or, if sooner, until such Severed Employee attains the age of fifty-two (52), at which time the Severed Employee shall become entitled to receive benefits under the Company’s retiree medical benefit plans if such
Severed Employee’s original hire date with (A) the Company or (B) any Affiliate that on December 31, 2003 was a participating employer in the Flexible Benefits Program for Full-Time Salaried and Full-Time Hourly Employees of
Union Pacific Corporation and Affiliates, is before January 1, 2004), the Company shall provide such Severed Employee and anyone entitled to claim under or through such Severed Employee all benefits under any medical or dental program to the
same extent as if such Severed Employee had continued to be an employee during such period; provided, however, (a) that such Severed Employee shall pay the fair market value for such coverage (active or retiree, as applicable), as determined
under section 61 of the Code and the regulations promulgated thereunder, and (b) the benefit amounts otherwise receivable by or in respect of a Severed Employee hereunder shall be reduced to the extent benefits of the same type are received by
such Severed Employee from a subsequent employer (and the Severed Employee shall report the receipt of such benefits to the Company). The coverage period for purposes of the group health continuation requirements of section 4980B of the Code shall
commence on the Severance Date. 
 SECTION
2.4    (a)          Subject to Section 2.6 hereof, in the event an Eligible Employee incurs a Severance, the Eligible Employee shall become fully vested in all
outstanding Equity Awards that are, at the Severance Date, unvested or subject to forfeiture restrictions. In the case of an Equity Award consisting of a stock option, such option shall continue to be exercisable for a period of three years from the
Severance Date (or such longer period as may be prescribed in the plan or agreement governing such option), but in no event later than the expiration date of such option. In the case of an Equity Award consisting of restricted stock, the Company
shall make payment of such restricted stock within five (5) business days following lapse of any revocation period for the release contemplated by Section 2.6. 

            (b)         
 In the case of an Equity Award (or any part thereof) that is a Stock Unit (as defined in the Company’s 2004 Stock Incentive Plan, as amended (or any subsequent stock incentive plan adopted by the Company) (the “Stock Plan”))
granted to an Eligible Employee who incurs a Severance under this Plan, such Stock Unit shall, subject to Section 2.6 and the final sentence of this paragraph (b) regarding deferrals, be paid within five (5) business days following
lapse of any revocation period for the release contemplated by Section 2.6. Notwithstanding the foregoing, in the event that such a Severed Employee has attained Retirement Status (as defined below) prior to the Exempt Date (as defined below),
the Stock Unit shall not be paid until sixty (60) days after the Severance Date, subject to Section 2.6 and the final sentence of this paragraph (b) regarding deferrals. “Retirement Status” means, (i) for Eligible
Employees who were granted Stock Unit Equity Awards in 2006 and/or 2007 under the Stock Plan, an individual who, during the Restriction Period for such Equity Award, attained age 60 with eligibility for retirement under the provisions of the
Company’s or a subsidiary’s pension plan (or who had attained such age and eligibility at the time the Stock Unit Equity Award was granted), (ii) for Eligible Employees who were granted Stock Unit Equity Awards in 2005 or in any year
2008-2010, an individual who, during the Restriction Period for such Equity Award, attained age 65 (or who had attained such age at the time the Stock Unit Equity Award was granted), (iii) for Eligible Employees who were granted a Stock Unit
Equity Award in 2011, an individual who was continually employed with the Company or a subsidiary until September 30, 2011 and during the Restriction Period for such Equity Award and while continually employed with the Company or a subsidiary,
attained age 62 with 10 years of service under the provisions of the Company’s or a subsidiary’s pension plan (or who had attained such age and service at the time the Stock Unit Equity Award was granted), and (iv) for Eligible
Employees who are granted a Stock Unit Equity Award in a year subsequent to 2011 under the Stock Plan or any successor 

  
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thereto adopted by the Company, “Retirement Status” shall be defined in accordance with and to the extent such term is defined under the Stock Plan (or successor thereto) or the grant
notice or other document evidencing such Stock Unit Equity Award (“Stock Unit Agreement”). “Exempt Date” means January 1 of the calendar year in which the Restriction Period ends, or, in the case of a Restriction Period that
ends such that payment would be made by March 15 of the calendar year in which such Restriction Period ends, January 1 of the preceding year. If a Severed Employee has previously elected to defer receipt of a Stock Unit to a date beyond
the applicable payment date referenced herein, payment of such Stock Unit will be made on the later of (A) the deferred payment date of the Stock Unit determined in accordance with the deferred compensation plan under which the Stock Units are
deferred (which, for this purpose, will be the first deferred payment date in the event the Stock Units, in accordance with such deferred compensation plan, are paid in installment payments) and (B) the date otherwise established for payment in
this subparagraph (b). 

            (c)         
 If the payment terms of the Stock Plan (or any successor thereto) or the payment provisions of an Eligible Employee’s Stock Unit Agreement should conflict with the terms of this Plan, the terms of this Plan shall control and Stock Units
shall be paid in accordance with Section 2.4(b) hereof. 

            (d)         
 The amount of any cash incentive bonus awarded under any Company long-term incentive plan or program shall be calculated in accordance with the applicable plan document and paid, subject to Section 2.6, to an Eligible Employee who has a
Severance within five (5) business days following the lapse of any revocation period for the release contemplated by Section 2.6, or, in the event such cash incentive bonus is “deferred compensation” under Section 409A of
the Code because the Eligible Employee elected to defer payment of such bonus in accordance with the terms of a deferral program applicable to such bonus, at such other date as provided under the terms of the Eligible Employee’s payment
election made in accordance with such deferral program. 
 SECTION 2.5    In the event of a claim for benefits
hereunder by an Eligible Employee, such Eligible Employee shall present the reason for his or her claim in writing to the Plan Administrator. The Plan Administrator shall, within thirty (30) days after receipt of such written claim, send a
written notification to the Eligible Employee as to its disposition. In the event the claim is wholly or partially denied, such written notification shall (a) state the specific reason or reasons for the denial, (b) make specific reference
to pertinent Plan provisions on which the denial is based, (c) provide a description of any additional material or information necessary for the Eligible Employee to perfect the claim and an explanation of why such material or information is
necessary, and (d) set forth the procedure by which the Eligible Employee may appeal the denial of his or her claim. In the event an Eligible Employee wishes to appeal the denial of his or her claim, he or she may request a review of such
denial by making application in writing to the Plan Administrator within sixty (60) days after receipt of such denial. Such Eligible Employee (or his or her duly authorized legal representative) may, upon written request to the Plan
Administrator, review any documents pertinent to his or her claim, and submit in writing, issues and comments in support of his or her position. Within forty-five (45) days after receipt of a written appeal (unless special circumstances, such
as the need to hold a hearing, require an extension of time, but in no event more than one hundred twenty (120) days after such receipt), the Plan Administrator shall notify the Eligible Employee of the final decision. The final decision shall
be in writing and shall include specific reasons for the decision, written in a manner calculated to be understood by the claimant, and specific references to the pertinent Plan provisions on which the decision is based. 

SECTION 2.6    No Severed Employee shall be eligible to receive a Severance Payment or other benefits under the Plan
that are subject to this Section 2.6 unless he or she first executes a written release substantially in the form attached hereto as Schedule A. Payments made under this Plan that are contingent on the Severed Employee’s execution of the
release shall in all events be paid no later than two and one-half months following the end of the calendar year in which the Severance Date, or other triggering event for the payment, occurs; except that with respect to any benefits under the Plan
that are “deferred compensation” under section 409A of the Code, payment shall be made sixty (60) days after 

  
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the Severance Date, unless the Severed Employee is a “specified employee” (as determined in accordance with a uniform policy adopted by the Company with respect to all arrangements
subject to section 409A of the Code maintained by the Company and its Affiliates), in which case such deferred compensation shall be paid six months plus one day following such employee’s “separation from service” as defined in the
regulations promulgated under section 409A of the Code. In order to ensure compliance with the foregoing, the Company shall provide the release described in this Section 2.6 to the Severed Employee in sufficient time so that the Severed
Employee can consider the release for the full consideration period required by applicable law, and have the ability to revoke such release during the revocation period(s) required by applicable law, before payment is made by the applicable
deadline. 
 SECTION 2.7    An Employer shall be entitled to withhold from amounts to be paid to the Severed
Employee hereunder any federal, state or local withholding or other taxes or charges which it is from time to time required to withhold. 
  

SECTION 3.                    PLAN
ADMINISTRATION. 
 SECTION 3.1    The Plan Administrator shall administer the Plan and may interpret
the Plan, prescribe, amend and rescind rules and regulations under the Plan and make all other determinations necessary or advisable for the administration of the Plan, subject to all of the provisions of the Plan. 

SECTION 3.2    The Plan Administrator may delegate any of its duties hereunder to such person or persons from time to
time as it may designate. 
 SECTION 3.3    The Plan Administrator is empowered, on behalf of the Plan, to
engage accountants, legal counsel and such other personnel as it deems necessary or advisable to assist it in the performance of its duties under the Plan. The functions of any such persons engaged by the Plan Administrator shall be limited to the
specified services and duties for which they are engaged, and such persons shall have no other duties, obligations or responsibilities under the Plan. Such persons shall exercise no discretionary authority or discretionary control respecting the
management of the Plan. All reasonable expenses thereof shall be borne by the Employer. 
 SECTION
4.                    PLAN MODIFICATION OR TERMINATION. 

The Plan may be amended or terminated by the Board at any time; provided, however, that, during the following
periods, the Plan may not be terminated nor may the Plan be amended in any manner adverse to the interests of any Eligible Employee (including, without limitation, any adverse changes to a person’s status as an Eligible Employee) without such
Eligible Employee’s written consent (and any such termination or amendment shall be void and of no force and effect): (i) within one year preceding a Potential Change in Control (in the case of any action (other than in connection with a
separation from service) pursuant to which an individual ceases to be designated as an Eligible Employee or is designated in a lower tier of Eligible Employee) or within 90 days preceding a Potential Change in Control (in the case of termination of
the Plan or any other amendment which is adverse to the interests of any Eligible Employee), (ii) during the pendency of or within 90 days following the cessation of a Potential Change in Control or (iii) within two years following a
Change in Control. This Plan shall terminate automatically two years and one day after a Change in Control. No Plan termination shall, without such Eligible Employee’s written consent, adversely affect any rights of any Eligible Employee which
accrued under this Plan prior to such termination. 

  
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 SECTION
5.                    GENERAL PROVISIONS. 
 SECTION 5.1    Except as otherwise provided herein or by law, no right or interest of any Eligible Employee under the Plan shall be assignable or transferable, in whole or in part, either
directly or by operation of law or otherwise, including without limitation by execution, levy, garnishment, attachment, pledge or in any manner; no attempted assignment or transfer thereof shall be effective; and no right or interest of any Eligible
Employee under the Plan shall be liable for, or subject to, any obligation or liability of such Eligible Employee. When a payment is due under this Plan to a Severed Employee who is unable to care for his or her affairs, payment may be made directly
to his or her legal guardian or personal representative. 
 SECTION 5.2    If an Employer is obligated by law,
contract, policy or otherwise to pay severance pay, a termination indemnity, notice pay, or the like, or if an Employer is obligated by law to provide advance notice of separation (“Notice Period”), then any Severance Payment hereunder
shall be reduced by the amount of any such severance pay, termination indemnity, notice pay or the like, as applicable, and by the amount of any compensation received during any Notice Period. 

SECTION 5.3    Neither the establishment of the Plan, nor any modification thereof, nor the creation of any fund, trust
or account, nor the payment of any benefits shall be construed as giving any Eligible Employee, or any person whomsoever, the right to be retained in the service of the Employer, and all Eligible Employees shall remain subject to discharge to the
same extent as if the Plan had never been adopted. 
 SECTION 5.4    If any provision of this Plan shall be
held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof, and this Plan shall be construed and enforced as if such provisions had not been included. 

SECTION 5.5    This Plan shall inure to the benefit of and be binding upon the heirs, executors, administrators,
successors and assigns of the parties, including each Eligible Employee, present and future, and any successor to the Employer. If a Severed Employee shall die while any amount would still be payable to such Severed Employee hereunder if the Severed
Employee had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Plan to the executor, personal representative or administrators of the Severed Employee’s estate. 

SECTION 5.6    The headings and captions herein are provided for reference and convenience only, shall not be considered
part of the Plan, and shall not be employed in the construction of the Plan. 
 SECTION 5.7    The Plan shall
not be funded. No Eligible Employee shall have any right to, or interest in, any assets of any Employer which may be applied by the Employer to the payment of benefits or other rights under this Plan. 

SECTION 5.8    Any notice or other communication required or permitted pursuant to the terms hereof shall have been duly
given when delivered or mailed by United States mail, first class, postage prepaid, addressed to the intended recipient at his, her or its last known address. 
 SECTION 5.9    This Plan shall be construed and enforced according to the laws of Nebraska, to the extent not preempted by federal law, which shall otherwise control. 

  
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 SCHEDULE A 
 WAIVER AND RELEASE OF CLAIMS AGREEMENT 
 YOU HAVE BEEN ADVISED TO CONSULT AN ATTORNEY
PRIOR TO SIGNING THIS AGREEMENT. 
 YOU HAVE [FORTY-FIVE] [TWENTY-ONE] DAYS AFTER RECEIVING THIS AGREEMENT TO CONSIDER WHETHER TO
SIGN IT. 
 AFTER SIGNING THIS AGREEMENT, YOU HAVE ANOTHER SEVEN DAYS IN WHICH TO REVOKE IT, AND IT DOES NOT TAKE EFFECT UNTIL
THOSE SEVEN DAYS HAVE ENDED. 
 In consideration of, and subject to, the payments to be made to me by [Name of
Employer Corporation] (“Union Pacific”) or any of its subsidiaries, pursuant to the Union Pacific Corporation Key Employee Continuity Plan (the “Plan”), which I acknowledge that I would not otherwise be entitled to receive, I
hereby waive any claims I may have for employment or re-employment by Union Pacific or any subsidiary or parent of Union Pacific after the date hereof, and I further agree to and do release and forever discharge Union Pacific or any subsidiary or
parent of Union Pacific and their respective past and present officers, directors, shareholders, employees and agents from any and all claims and causes of action, known or unknown, arising out of or relating to my employment with Union Pacific or
any subsidiary or parent of Union Pacific or the termination thereof, including, but not limited to, by reason of any event, matter, cause or thing which has occurred to the date of execution of this Release relating in any way to my employment
relationship with Union Pacific or to my termination of employment thereof, whether for severance or based on statutory or common law claims for employment discrimination, wrongful discharge, breach of contract or any other theory, whether legal or
equitable, or arising under any statute or regulation, including the Age Discrimination in Employment Act of 1967, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans with Disabilities Act of 1990, the Employee
Retirement Income Security Act of 1974, and the Family Medical Leave Act of 1993, each as amended, or any other federal, state or local law, regulation, ordinance or common law. 

Notwithstanding the foregoing or any other provision hereof, nothing in this Waiver and Release of Claims Agreement shall
adversely affect (i) my rights under the Plan; (ii) my rights to benefits other than severance benefits under plans, programs and arrangements of Union Pacific or any subsidiary or parent of Union Pacific; or (iii) my rights to
indemnification under any indemnification agreement, applicable law and the certificates of incorporation and bylaws of Union Pacific and any subsidiary or parent of Union Pacific, and my rights under any director’s and officer’s liability
insurance policy covering me. 
 I acknowledge that I have signed this Waiver and Release of Claims Agreement
voluntarily, knowingly, of my own free will and without reservation or duress, and that no promises or representations, written or oral, have been made to me by any person to induce me to do so other than the promise of payment set forth in the
first paragraph above and Union Pacific’s acknowledgment of my rights reserved under the second paragraph above. 

I understand that this release will be deemed to be an application for benefits under the Plan, and that my entitlement thereto
shall be governed by the terms and conditions of the Plan, and I expressly hereby consent to such terms and conditions. 

I acknowledge that I have been given not less than [forty-five (45)] [twenty-one (21)] days to review and consider this Waiver and
Release of Claims Agreement, and that I have had the opportunity to consult with an attorney or other advisor of my choice and have been advised by Union Pacific to do so 

  
 10 

 
if I choose. I may revoke this Waiver and Release of Claims Agreement seven days or less after its execution by providing written notice to Union Pacific. 

Finally, I acknowledge that I have carefully read this Waiver and Release of Claims Agreement and understand all of its terms.
This is the entire Agreement between the parties and is legally binding and enforceable. 
 This Waiver and Release of
Claims Agreement shall be governed and interpreted under federal law and the laws of Nebraska. 
 I knowingly and
voluntarily sign this Waiver and Release of Claims Agreement. 
  

					
	 Date Delivered to Employee:
	 	               [Name of Employer Corporation]

		
	
                               
                   
	 	
			
	 Date Signed by Employee:
	 	
              By:               
                               
	 	
			
	
                               
                   
	 	
Title:                             
                   
	 	
			
	 Seven-Day Revocation Period Ends:
	 		 	
			
	
                               
                   
	 		 	
			
	
Signed:                             
           
	 	
Date:                             
                    
	 	

  

			
	  
	 	
	     (Print Employee’s Name)
	 	

  
 11EX-10.(e)

 Exhibit 10(e) 
  

 
  
 

 
 DEFERRED COMPENSATION PLAN 
 (409A Non-Grandfathered Component) 
 of 

UNION PACIFIC CORPORATION 

(Originally effective as of January 1, 2009, 
 with amendments approved December 30, 2010, June 22, 2011, March 1, 2013, 
 and December 16, 2013.) 
  

 

  

ARTICLE ONE 
 Scope of
Plan and Definitions 
  

	1.1	 Purpose and Scope of Plan - The purpose of the Plan (this and other capitalized terms having the meanings set forth below) is to provide a
deferral opportunity and related benefits to Eligible Employees who participate in EIP and SIP. The Plan is intended to be an unfunded nonqualified deferred compensation plan that is maintained primarily for the purpose of providing deferred
compensation for a select group of management or highly compensated employees of the Company, pursuant to sections 201, 301 and 401 of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and, as such, to be exempt
from the provisions of Parts 2, 3 and 4 of Subtitle B of Title I of ERISA. The rights of each Participant and his Beneficiaries to benefits under the Plan shall be governed by the Plan as set forth herein and as it may hereafter be amended from time
to time. This Plan is effective January 1, 2009, unless expressly provided otherwise herein. 

  

	1.2	 Applicability - The Deferred Compensation Plan was bifurcated into two components, effective January 1, 2009. As reflected in the terms of
this Non-Grandfathered Plan, one such component is applicable solely to those amounts that were not, as of December 31, 2004, both credited to a Participant’s Account and fully vested or as to which the Participant had a vested right in
accordance with the terms of the Deferred Compensation Plan as in effect on December 31, 2004 (including related investment gains and losses occurring thereafter). With respect to any other amounts credited to a Participant’s account under
the Deferred Compensation Plan, the rights of the Participant and his Beneficiaries shall be governed by the component of the Deferred Compensation Plan known as the “Deferred Compensation Plan (409A Grandfathered Component) of Union Pacific
Corporation, as amended and restated effective January 1, 2009.” Prior to January 1, 2009, with respect to all amounts credited under the Deferred Compensation Plan that were subject to section 409A of the Code, the Deferred
Compensation Plan was administered in good faith compliance with section 409A of the Code. 

  

	1.3	 Definitions - As used in the Plan, the following terms shall have the meanings set forth below, unless a different meaning is plainly required
by the context: 

  

	 	(a)	 “Account” shall mean the entries maintained on the books of the Company which represent a Participant’s interest under the
Non-Grandfathered Plan. The term “Account” shall refer to: 

  

	 	(1)	 The value of amounts credited to a Participant under the Deferred Compensation Plan as in effect on January 1, 2005, other than amounts (including
investment gains and losses thereon) which under the terms of the Deferred Compensation Plan were credited and fully vested or as to which the Participant had a vested right, as of December 31, 2004, valued in accordance with Article 3 and
adjusted for payments made pursuant to Article 4. 

  

	 	(2)	 The value of amounts credited to a Participant’s Account pursuant to Section 2.1, valued in accordance with Article 3 and adjusted for
payments made pursuant to Article 4. 

 Under no circumstances shall a
Participant’s Account under this Non-Grandfathered Plan be deemed to include amounts (including investment gains and losses thereon) which under the terms of the Deferred Compensation Plan were credited

  
 1 

 
and fully vested or as to which the Participant has a vested right as of December 31, 2004. 
  

	 	(b)	 “Award” shall mean an award as defined under EIP or SIP consisting of cash or stock units. Stock options or retention share awards are not
eligible for deferral under this Plan. 

  

	 	(c)	 “Award Account” shall mean the entries maintained on the books of the Company which represent a Participant’s interest under the Plan
with respect to each separate Award payable to the Participant under EIP or SIP that the Participant elects to defer under the terms of this Non-Grandfathered Plan. Each Award Account shall separately reflect the Participant’s interest in each
investment fund established under Section 3.1. 

  

	 	(d)	 “Beneficiary” shall mean the person designated by a Participant to receive his interest under the Deferred Compensation Plan in the event of
his death hereunder pursuant to procedures adopted by the Committee. Absent such designation, the Participant’s Beneficiary shall be his estate. 

  

	 	(e)	 “Committee” shall mean the Compensation and Benefits Committee of the Board of Directors of the Company, or such other committee of the Board
of Directors as may from time to time be designated by the Board of Directors to administer the Deferred Compensation Plan. 

  

	 	(f)	 “Deferred Compensation Plan” shall mean the Union Pacific Corporation Deferred Compensation Plan, as it may be amended from time to time. The
Deferred Compensation Plan is comprised of the following components, each of which is set forth in a separate document: (1) The Union Pacific Corporation Deferred Compensation Plan (409A Grandfathered Component), and (2) The Union Pacific
Corporation Deferred Compensation Plan (409A Non-Grandfathered Component). 

  

	 	(g)	 “EIP” shall mean the Union Pacific Corporation Executive Incentive Plan, effective May 5, 2005, and as it may thereafter be amended from
time to time, and any successor executive incentive plan. 

  

	 	(h)	 “Eligible Employee” shall mean an employee eligible to receive an Award who the Committee has designated as eligible to participate in this
Plan. 

  

	 	(i)	 “Participant” shall mean (1) any Eligible Employee for whom credits have been or are being made hereunder, or (2) any former
Eligible Employee for whom credits have been made hereunder and who either (A) continues to be employed by the Company or an Affiliated Company, or (B) has an interest in all or a portion of his Account which has not been distributed
pursuant to Article 4. 

  

	 	(j)	 “Plan” or “Non-Grandfathered Plan” shall mean the Union Pacific Corporation Deferred Compensation Plan (409A Non-Grandfathered
Component), effective as of January 1, 2009 as set forth herein, and as it may hereafter be amended from time to time. 

  

	 	(k)	 “Separation from Service” shall mean a “separation from service” with the Company and all Affiliated Companies within the meaning
of Code section 409A and the regulations promulgated thereunder. 

  

	 	(l)	 “SIP” shall mean the Union Pacific Corporation 2001 Stock Incentive Plan, effective April 20, 2001, as amended; and the Union Pacific
Corporation 2004 Stock Incentive Plan, effective April 16, 2004, and as it may thereafter be amended from time to time, or any successor stock incentive plan. 

  
 2 

	 	(m)	 “Thrift Plan” shall mean the Union Pacific Corporation Thrift Plan, as in effect from time to time. 

 

	1.4	 Terms Defined in the Thrift Plan - For all purposes of the Plan, the following terms shall have the meanings specified in the Thrift Plan,
unless a different meaning is plainly required by the context: “Affiliated Company”; “Board of Directors”; “Code”; “Company”; “Employee”; “ERISA”; and “Plan Year.”

  

	1.5	 Other Definitional Provisions - The terms defined in Sections 1.3 and 1.4 of the Plan shall be equally applicable to both the singular and
plural forms of the terms defined. The masculine pronoun, whenever used, shall include the feminine and vice versa. The words “hereof,” “herein” and “hereunder” and words of similar import when used
in the Plan shall refer to the Plan as a whole and not to any particular provision of the Plan, unless otherwise specified. 

  
 3 

  

ARTICLE TWO 
 Deferrals
and Credits 
  

	2.1	 Deferrals and Credits 

  

	 	(a)	 The Committee may permit an Eligible Employee to elect to make deferrals from Awards (in the case of an Award under SIP that is performance-based
compensation, as such term is defined in Code section 409A, after adjustment for dividend equivalent payments in accordance with the terms of the document establishing such Award or, in the case of an Award under EIP, a portion of the EIP Award) to
be credited under the Plan by filing an Award deferral agreement with the Committee on such form as may be prescribed by the Committee for such purpose, subject to such terms and conditions as the Committee may from time to time impose in its sole
discretion. Notwithstanding the foregoing, such agreement must be filed within the period permitted under paragraph (b) below and shall authorize the Company or the Affiliated Company by which the Eligible Employee is employed to reduce the
Eligible Employee’s Award as elected by the Eligible Employee as of the date determined pursuant to subparagraph (c) below. The Company shall credit such amount to the Eligible Employee’s Account under the Plan.

  

	 	(b)	 Any election by an Eligible Employee to defer an Award pursuant to paragraph (a) must be made: 

 

	 	(1)	 If the Award is not performance-based compensation as defined under Code section 409A and the regulations promulgated thereunder, prior to the
beginning of the calendar year in which the Eligible Employee performs the services for which the Award is payable; and 

  

	 	(2)	 If the Award is performance-based compensation, as defined under Code section 409A and the regulations promulgated thereunder, at least six
(6) months prior to the end of the performance period to which the Award relates and before the date as of which such performance-based compensation becomes readily ascertainable, within the meaning of Code section 409A and the regulations
promulgated thereunder, provided, however, that the Eligible Employee is continuously employed from the earlier of the beginning of such performance period or the date the performance goals for such performance period are established through the
date of the deferral election. 

  

	 	(c)	 An Eligible Employee’s deferral under paragraph (a) above shall be made as of the same date that such Award would have been payable to the
Eligible Employee under EIP or SIP had such Award not been deferred under the Plan. In the event the Eligible Employee satisfies the requirements for an Award under the EIP but has a Separation from Service before the date the EIP Award would have
been paid to the Eligible Employee had such Award not been deferred under the Plan, it shall nevertheless be paid in accordance with such deferral election and the terms of this Plan (including without limitation the Specified Employee Restriction
at Section 4.2) with respect to the implementation of such deferral election. 

  
 4 

  

ARTICLE THREE 

Valuation of Accounts 
  

	3.1	 Establishment of Investment Funds - The Committee shall have the authority in its sole discretion to provide a Participant with one or more
investment funds for the Participant’s Account and to add, delete, consolidate, substitute or otherwise change any such investment funds from time to time as the Committee may determine in its sole discretion. Notwithstanding any other
provision of the Plan that may be interpreted to the contrary, the investment funds are to be used for measurement purposes only, and a Participant’s election of any such investment fund, the allocation of the Participant’s Account
thereto, the calculation of additional amounts and the crediting or debiting of such amounts to a Participant’s Account shall not be considered an actual investment of a Participant’s Account in any such investment fund.

  

	3.2	 Transfers Between Investment Funds - Subject to such rules as the Committee may prescribe from time to time in its sole discretion, a
Participant may elect to transfer such portion of a Participant’s interest in any investment fund as permitted by the Committee to any other available investment fund. Such rules may require that a Participant’s Account under this
Non-Grandfathered Plan is commingled for investment purposes with any “Account” a Participant may have in the Union Pacific Corporation Deferred Compensation Plan (409A Grandfathered Component). However, separate recordkeeping shall be
maintained with respect to the portions of the Participant’s benefit in the Deferred Compensation Plan attributable to its Grandfathered and Non-Grandfathered components. 

 

	3.3	 Valuation and Accounting - 

  

	 	(a)	 Each investment fund shall be valued as such times and in accordance with such method(s) of valuation as determined from time to time in the sole
discretion of the Committee, and the value of each Participant’s Account shall be determined by reference to the portion of the Participant’s Account allocable to each investment fund. The value of each Participant’s interest in an
investment fund may be measured in units, shares or dollars. 

  

	 	(b)	 The value of a Participant’s Account shall equal the aggregate value of the investment funds allocable to such Account.

  
 5 

  

ARTICLE FOUR 
 Payments

  

	4.1	 Payments on Separation from Service or Date Certain - 

 

					
	 (a)
	  	 (1) 
	    	 A Participant who fails to make a timely election described in Section 4.1(b) shall be deemed to have elected to receive the value of his Award Account at the time of
his Separation from Service in a single lump-sum payment. Subject to Section 4.2, such payment shall be made to the Participant (or if such Participant is not living at the time of payment, to such Participant’s Beneficiaries) as soon as
administratively practicable following the Participant’s Separation from Service, but in no event later than the end of the calendar year in which the Participant’s Separation from Service occurs or, if later, ninety (90) days after
such Separation from Service.

  

	 	(2)	 Notwithstanding subparagraph (a)(1) above and notwithstanding the election of the Participant described in Section 4.1(b), any Award Account
established for an Award attributable to SIP to which an amount is credited under Section 2.1(c) by reason of a Participant’s disability shall be paid (i) except for an Award described in clause (ii), as soon as administratively
practicable following the date on which such amount is credited to the Award Account, but in no event later than the end of the calendar year or the 15th day of the third calendar month following the date on which such amount is credited to the Award Account, regardless of any
election made by the Participant, and (ii) in accordance with Section 4.1(h), in the event such Award that is credited to the Award Account by reason of the Participant’s disability is granted after 2013 and is performance based
compensation (as such term is defined in Code section 409A). 

  

					
	 (b)
	  	 (1) 
	    	 A Participant who has any Award Account in the Plan as of any time during the 2008 calendar year may elect in writing, according to such rules and using such forms as may
be prescribed by the Committee, to have any such Account paid to him in one of the forms specified in paragraph (c) below, provided such Participant’s Separation from Service occurs after December 31, 2008. Such election must be made
no later than December 31, 2008.

  

	 	(2)	 A Participant who makes a deferral election under Section 2.1 for an Award made after December 31, 2008 may elect in writing, according to
such rules and using such forms as may be prescribed by the Committee, to have the Award Account attributable to such Award paid to him in one of the forms specified in paragraph (c) below. Such election must be made before the end of the
period in which to make a deferral election under Section 2.1(b) with regard to such Award. 

  

	 	(c)	 A Participant may elect to have his Award Account paid to him in accordance with one of the following payment options, subject to Sections 4.2 and 4.3:

  

	 	(1)	 A single lump sum distribution as provided in subparagraph (a) payable at the earlier of (i) July of the year selected by the Participant or
(ii) within thirty (30) days of the Participant’s Separation from Service. 

  
 6 

	 	(2)	 A single lump-sum distribution as provided in subparagraph (a) payable (i) in the year of the Participant’s Separation from Service or
(ii) if selected by the Participant, January of the next year following such Separation from Service; 

  

	 	(3)	 Annual installments over a period not to exceed fifteen (15) years (such installment period to be elected by the Participant), beginning
(i) as soon as administratively practicable following the Participant’s Separation from Service, but in no event later than the end of the calendar year in which the Participant’s Separation from Service occurs or, if later, ninety
(90) days after such Separation from Service, or (ii) if elected by the Participant, January of the next year following such Separation from Service, with (under either option) subsequent installments paid in January of each subsequent
year, with each installment determined by dividing the value of the Participant’s then-undistributed Award Account under the Non-Grandfathered Plan by the number of installments remaining to be made; or 

 

	 	(4)	 A single lump-sum distribution payable in January of a year following the Participant’s Separation from Service that is not earlier than two
(2) years, and not later than fifteen (15) years following the Participant’s Separation from Service, such year to be elected by the Participant. The amount of such distribution shall equal the balance in the Participant’s Award
Account at such specified date. Pending the lump-sum distribution as aforesaid, the Participant’s Award Account shall continue to be invested in accordance with Article Three. If the Award Account relates to amounts deferred into this Plan from
the SIP, the increase or decrease in the value of such Award Account shall be accumulated as part of the Award Account and paid out as part of such lump sum distribution. If the Award Account relates to amounts deferred into this Plan from the EIP,
then at the end of each calendar quarter following the Participant’s Separation from Service, the net increase or decrease in the value of such Award Account, measured from the first valuation of such Award Account pursuant to Article Three
which coincides with or next follows the Participant’s Separation from Service, shall be determined. Subject to subparagraph (d)(1)(A), the amount of any such net increase for any calendar quarter shall be distributed to the Participant within
thirty (30) days following the end of such calendar quarter. 

  

	 	(d)	 A Participant who has made the election or the deemed election described in subparagraphs (b) or (a) respectively may elect in writing to
modify the form of payment and/or the payment commencement date for any Award Account (a “modification election”) in accordance with the following rules: 

 

	 	(1)	 When a Participant’s existing form of payment 

(A)        is described in subparagraphs (a), (c)(2) or (c)(3) above, a Participant may
elect to receive the Participant’s Award Account in the form set forth in paragraph (c)(2), (c)(3) and (c)(4) above, provided that any election of the form described in subparagraph (c)(4) above shall not provide separate quarterly payments of
investment income, 
 (B)        is described in subparagraph (c)(1) above, a
Participant may (i) elect to receive the Participant’s Award Account in a single lump sum distribution in July of a later year, provided such July occurs before the Participant’s Separation from Service or (ii) elect to receive
the Participant’s Award Account in the form described in subparagraph (c)(2), (c)(3) or (c)(4) above, provided that any election of the form described in subsection (c)(4) above shall not provide separate payments of investment income, and

  
 7 

 (C)        is described in subparagraph
(c)(4) above, a Participant may elect to receive the Participant’s Account in the form described in subsection (c)(3) above or change to a later date as of which the Participant will be paid a single lump-sum under subparagraph (c)(4) above.

  

	 	(2)	 A Participant’s modification election shall be made both prior to his Separation from Service and at least twelve (12) months prior to the
date on which payments would have commenced in accordance with his prior election. 

  

	 	(3)	 Notwithstanding the payment date indicated by the form of payment elected thereby, a Participant’s modification election to alter the date on
which his payments will commence and/or the form in which payment is made must have the effect of postponing the payment commencement date by at least five (5) years, and shall be administered accordingly. A Participant shall be permitted to
make a modification election or elections with respect to (i) all of his Award Accounts with respect to amounts deferred from the SIP that are payable at the same time and in the same form; (ii) all of his Award Accounts with respect to
amounts deferred from the EIP that are payable at the same time and in the same form, and (iii) fifty percent (50%) of the balance as of the applicable payment date of the Award Account(s) attributable to deferrals from the SIP or EIP, as
the case may be, that are payable in accordance with subparagraph 4.1(c)(1) in the same year elected by the Participant in accordance with subparagraph 4.1(c)(1), each of which shall be considered a separately identified amount to which the
Participant is entitled to payment on a determinable date with the meaning of Treas. Reg. § 1.409A-2(b)(2)(i), in accordance within such rules as may be established by the Committee for this purpose consistent with the requirements of
Section 409A of the Code and the regulations thereunder. No such modification election shall be permitted if the payment commencement date that was previously elected was more than ten (10) years after the Participant’s Separation
from Service. 

  

	 	(4)	 In the case of a Participant who desires to (A) change the method of payment from a single lump-sum distribution to annual installments, or
(B) postpone the payment commencement date of annual installments that he previously elected, the maximum number of annual installments shall be fifteen (15), minus the number of years (with a fractional year rounded up to a full year) between
the Participant’s Separation from Service and the postponed payment commencement date. 

  

	 	(5)	 For purposes of this paragraph (d), 

 (A)        the date as of which payments to a Participant would have commenced, absent the election provided by this paragraph, shall be deemed to be the first possible date
as of which such payments could have been made to the Participant; 

(B)        the quarterly payment of investment income provided under paragraph (c)(4)
above shall be treated as a separate form of payment from the single lump-sum distribution provided by such paragraph; and 
 (C)        the entitlement to a series of installment payments shall be treated as the entitlement to a single form of payment. 

 

	 	(e)	 Except with respect to an Award attributable to SIP granted after 2013 that is performance based compensation (as such term is defined in Code section
409A) in which the Participant has vested due to the Participant’s death and is payable in 

  
 8 

	 	 
accordance with Section 4.1(h)(1), on the death of a Participant who has not received payment of his full Account under this Section 4.1, the Committee shall cause the unpaid balance of
the Participant’s vested account to be paid in a single lump-sum payment to such Participant’s Beneficiaries. Such payment shall be made as soon as administratively practicable following completion of the first valuation of the
Participant’s Account pursuant to Article Three which coincides with or next follows the Participant’s date of death, but in no event later than the end of the calendar year in which the Participant’s date of death occurs or, if
later, ninety (90) days after such date of death. 

  

	 	(f)	 Subject to Sections 4.2 and 4.3 and notwithstanding the deemed election or election of a Participant described in Section 4.1(a) or
(b) respectively, any Award Account established for an Award attributable to SIP, other than such an Award in which the Participant has vested due to such Participant’s disability, which is granted in 2011 that is not performance-based
compensation, as defined under Code section 409A, shall be paid to a Participant: 

  

	 	(1)	 who has a Separation from Service before February 3, 2015, in a single sum as soon as administratively practicable following such date, but in no
event later than the end of the 2015 calendar year or, if later, ninety (90) days after such date or; 

  

	 	(2)	 who has a Separation from Service on or after February 3, 2015, in accordance with the payment option set forth in Section 4.1(c) and elected
by the Participant (or in accordance with Section 4.1(a) in the event the Participant fails to make such election); provided, however, that a Participant who has elected the form of payment set forth in Section 4.1(c)(1) shall be paid at
the earlier of (i) July of the year selected by the Participant that is after 2015 or (ii) within thirty (30) days of the Participant’s Separation from Service. 

 

	 	(g)	 Subject to Sections 4.2 and 4.3 and notwithstanding the deemed election or election of a Participant described in Section 4.1(a) or
(b) respectively, any Award Account established for an Award attributable to SIP, other than such an Award in which the Participant has vested due to such Participant’s disability, which is: (i) granted in 2011 that is performance
based compensation, as such term is defined in Code section 409A or (ii) granted after 2011 and before 2014 (regardless of whether the Award is performance based compensation), shall be paid to a Participant: 

 

	 	(1)	 who has a Separation from Service before the end of the “Restriction Period” as such term is defined in the letter agreement granting such
Award, in a single sum as soon as administratively practicable following the end of such Restriction Period, but in no event later than the end of the calendar year in which such Restriction Period ends or, if later, ninety (90) days after the
end of such Restriction Period; or 

  

	 	(2)	 who has a Separation from Service on or after the end of the “Restriction Period” as such term is defined in the letter agreement granting such
Award, in accordance with the payment option set forth in Section 4.1(c) and elected by the Participant (or in accordance with Section 4.1(a) in the event the Participant fails to make such election); provided, however, that a Participant
who has elected the form of payment set forth in Section 4.1(c)(1) shall be paid at the earlier of (i) July of the year selected by the Participant that is after the end of the calendar year in which such Restriction Period ends or
(ii) within thirty (30) days of Participant’s Separation from Service. 

  

	 	(h)	 Subject to Sections 4.2 and 4.3 and notwithstanding the deemed election or election of a Participant described in Section 4.1 (a) or
(b) respectively, any Award Account 

  
 9 

	 	 
established for an Award attributable to SIP granted after 2013, other than such an Award that is both (i) not performance based compensation (as defined under Code section
409A) and; (ii) vested due to the Participant’s disability, shall be paid to a Participant: 

  

	 	(1)	 who has a Separation from Service before the “Restriction Period Termination Date” as such term is defined in the letter agreement granting
such Award, in a single sum as soon as administratively practicable following such Restriction Period Termination Date, but in no event later than the end of the calendar year in which such Restriction Period Termination Date occurs or, if later,
ninety (90) days following such Restriction Period Termination Date; or 

  

	 	(2)	 who has a Separation from Service on or after the “Restriction Period Termination Date” as such term is defined in the letter agreement
granting such Award, in accordance with the payment option set forth in Section 4.1 (c) and elected by the Participant (or in accordance with Section 4.1(a) in the event the Participant fails to make such election); provided, however,
that a Participant who has elected the form of payment set forth in Section 4.1(c)(1) shall be paid at the earlier of (i) July of the year selected by the Participant that is after the end of the calendar year in which such Restriction
Period Termination Date occurs or (ii) within thirty (30) days of Participant’s Separation from Service. 

 With respect to an Award attributable to SIP granted after 2013 which is not performance based compensation and is vested due to the Participant’s disability, such Award shall, notwithstanding the election of
the Participant described in Section 4.1(b), be paid in accordance with Section 4.1(a)(2). 
  

	4.2	 Specified Employee Restriction – Notwithstanding anything in the Plan to the contrary, no payment shall be made to a “specified
employee” (as determined in accordance with a uniform policy adopted by the Company with respect to all arrangements subject to Section 409A of the Code maintained by the Company and its Affiliated Companies) on account of such specified
employee’s Separation from Service until six (6) months plus one day following such specified employee’s Separation from Service; provided however, in the event of the specified employee’s death before his payment commencement
date, this provision shall not prevent payment of death benefits at the time prescribed by Section 4.1(e). 

  

	4.3	 Additional Restrictions on Payment Options – Notwithstanding anything in Section 4.1 to the contrary; except, however the last
sentence of subparagraph 4.1(a): 

  

	 	(a)	 the Participant may always elect the payment option described in subparagraph 4.1(c)(1) (providing for payment as of a specified date prior to
Separation from Service) with respect to amounts to be deferred to an Award Account, regardless of the payment options the Participant may have elected with respect to any Award Accounts previously established under this Non-Grandfathered Plan.

  

	 	(b)	 with regard to the payment options described in subparagraphs 4.1(c)(2), 4.1(c)(3) or 4.1(c)(4) (each providing for payment following Separation
from Service and henceforth referred to as the “Separation Payment Options”), the Participant may elect only one such Separation Payment Option with respect to (i) all Award Accounts consisting of amounts deferred into this Plan from
the SIP and (ii) all Award Accounts consisting of amounts deferred into this Plan from the EIP (other than, in each case, Award Accounts for which the payment option described in subparagraph 4.1(c)(1) has been elected). A
Participant’s initial election of a Separation Payment Option, with respect to amounts deferred from the SIP or EIP, as the case may be, shall apply to all subsequent deferrals from the SIP or EIP, as applicable, unless the Participant elects
the payment option described in subparagraph 4.1(c)(1) for such subsequent deferral. 

  
 10 

	 	(c)	 a Participant’s modification election made in accordance with Section 4.1(d) may not change the form of payment of an Award Account from a
Separation Payment Option to the form of payment described in subparagraph 4.1(c)(1). In addition, any change to a different Separation Payment Option must apply to all Award Accounts attributable to deferrals from the SIP or EIP, as the case
may be, for which a Separation Payment Option has been elected. 

  

	 	(d)	 in the event an Award Account is to be paid in accordance with the payment option described in subparagraph 4.1(c)(1) prior to the Participant having a
Separation from Service, and at the time of such payment the Company reasonably anticipates that its deduction with respect to the Award Account payable to such Participant would be reduced or eliminated by Code section 162(m), such payment shall be
delayed until the Company’s first taxable year in which it reasonably anticipates that its deduction of such payment will not be reduced or eliminated by Code Section 162(m), and following such determination will then be paid in a single
lump-sum distribution as soon as administratively practicable in such taxable year. 

  

	4.4	 Responsibility for Payments – All payments attributable to credits made hereunder on behalf of a Participant shall be made by the Company
on its own behalf or on behalf of the Affiliated Company by who such Participant was employed when such credits were made. Such Affiliated Company shall reimburse the Company for all amounts paid on its behalf. 

  
 11 

  

ARTICLE FIVE 

Administration 
  

	5.1	 Responsibilities and Powers of the Committee - The Committee shall be solely responsible for the operation and administration of the Plan and
shall have all powers necessary and appropriate to carry out its responsibilities in operating and administering the Plan. Without limiting the generality of the foregoing, the Committee shall have the responsibility and power to interpret the Plan,
to make factual determinations and to determine whether a credit should be made on behalf of a Participant, the amount of the credit and the value of the amount so credited on any subsequent date. The determination of the Committee, made in good
faith, shall be conclusive and binding on all persons, including Participants and their Beneficiaries. The Committee may delegate part or all of its authority to operate and administer the Plan to: (i) prior to March 1, 2013 the Senior
Vice President-Human Resources of the Company; and (ii) on and after March 1, 2013 the Vice President-Human Resources of Union Pacific Railroad Company or such other officer or employee of Union Pacific Railroad Company or the Company with
similar authority, and may grant authority to such person to execute agreements or other documents relating to the administration of the Plan as such person deems necessary or appropriate. 

 

	5.2	 Outside Services - The Committee may engage counsel and such clerical, medical, financial, investment, accounting and other specialized services
as its may deem necessary or desirable to the operation and administration of the Plan. The Committee shall be entitled to rely, and shall be fully protected in any action or determination or omission taken or made or omitted in good faith in so
relying, upon any opinions, reports or other advice which is furnished by counsel or other specialist engaged for that purpose. 

  

	5.3	 Indemnification - The Company shall indemnify the members of the Committee against any and all claims, loss, damages, expense (including
reasonable counsel fees) and liability arising from any action or failure to act or other conduct in the Committee member’s official capacity, except when the same is due to her own gross negligence or willful misconduct.

  

	5.4	 Claims Procedures - The claims procedures set forth in Article XIII of the Thrift Plan shall apply to any claim for benefits hereunder,
subject to such changes as the Committee deems necessary or appropriate. 

  
 12 

  

ARTICLE SIX 
 Amendment
and Termination 
  

	6.1	 Amendment - The Board of Directors reserves the right at any time and from time to time, and retroactively if deemed necessary or appropriate to
conform with governmental regulations or other policies, to modify or amend in whole or in part any or all of the provisions of the Plan. In addition, (i) prior to March 1, 2013 the Senior Vice President-Human Resources of the Company; and
(ii) on and after March 1, 2013 the Vice President-Human Resources of Union Pacific Railroad Company or such other officer or employee of Union Pacific Railroad Company or the Company with similar authority, may make (a) all
technical, administrative, regulatory and compliance amendments to the Plan or (b) any other amendment to the Plan that will not significantly increase the cost of the Plan to the Company as he or she deems necessary or appropriate.
Notwithstanding anything to the contrary above, no amendment shall operate to reduce the accrued benefit of any individual who is a Participant at the time the amendment is adopted. 

 

	6.2	 Termination - The Plan is purely voluntary and the Board of Directors reserves the right to terminate the Plan at any time, provided, however,
that the termination shall not operate to reduce the accrued benefit of any individual who is a Participant at the time the Plan is terminated. 

  
 13 

  

ARTICLE SEVEN 
 General
Provisions 
  

	7.1	 Source of Payments - The Plan shall not be funded and all payments hereunder to Participants and their Beneficiaries shall be paid from the
general assets of the Company. The Company shall not, by virtue of any provisions of the Plan or by any action of any person hereunder, be deemed to be a trustee or other fiduciary of any property for any Participant or his Beneficiaries and the
liabilities of the Company to any Participant or his Beneficiaries pursuant to the Plan shall be those of a debtor only pursuant to such contractual obligations as are created by the Plan and no such obligation of the Company shall be deemed to be
secured by any pledge or other encumbrance on any property of the Company. To the extent that any Participant or his Beneficiaries acquire a right to receive a payment from the Company under the Plan, such right shall be no greater than the right of
any unsecured general creditor of the Company. 

  

	7.2	 No Warranties - Neither the Committee nor the Company warrants or represents in any way that the value of each Participant’s Account will
increase or not decrease. Such Participant assumes all risk in connection with any change in such value. 

  

	7.3	 Inalienability of Benefits - No benefit payable under, or interest in, the Plan shall be subject in any manner to anticipation, alienation,
sale, transfer, assignment, pledge, encumbrance or charge and any attempt to do so shall be void; nor shall any such benefit or interest be in any manner liable for or subject to garnishment, attachment, execution or levy or liable for or subject to
the debts, contracts, liabilities, engagements or torts of any Participant or his Beneficiaries. In the event that the Committee shall find that any Participant or his Beneficiaries has become bankrupt or that any attempt has been made to
anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any benefit payable under, or interest in, the Plan, the Committee shall hold or apply such benefit or interest or any part thereof to or for the benefit of such Participant or
his Beneficiaries, his spouse, children, parents or other relatives or any of them. 

  

	7.4	 Expenses - The Company shall pay all costs and expenses incurred in operating and administering the Plan, including the expense of any counsel
or other specialist engaged by the Committee. 

  

	7.5	 No Right of Employment - Nothing herein contained nor any action taken under the provisions hereof shall be construed as giving any Participant
the right to be retained in the employ of the Company or any Affiliated Company. 

  

	7.6	 Limitations on Obligations - Neither the Company, nor any Affiliated Company, nor any officer or employee of either, nor any member of the Board
of Directors nor the Committee shall be responsible or liable in any manner to any Participant, Beneficiary or any person claiming through them for any action taken or omitted in connection with the granting of benefits or the interpretation and
administration of the Plan. 

  

	7.7	 Withholding - The Company shall, on its own behalf or on behalf of the Affiliated Companies, withhold from any payment hereunder the required
amounts of income and other taxes. 

  

	7.8	 Headings - The headings of the Sections in the Plan are placed herein for convenience of reference and, in the case of any conflict, the text of
the Plan, rather than such heading, shall control. 

  

	7.9	 Construction - The Plan shall be construed, regulated and administered in accordance with the laws of the State of Utah, without regard to the
choice of law principles thereof. 

  
 14 

	7.10	 Payments to Minors, Etc. - Any benefit payable to or for the benefit of a minor, an incompetent person or other person incapable of receipting
therefor shall be deemed paid when paid to such person’s guardian or to the party providing or reasonably appearing to provide for the care of such person and such payment shall fully discharge the Committee, the Company, all Affiliated
Companies and all other parties with respect thereto. 

  
 15

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