Document:

exv10w8w4

 

EXHIBIT 10.8.4

NON-QUALIFIED STOCK OPTION AWARD AGREEMENT

1991 AMENDED AND RESTATED STOCK OPTION

AND PERFORMANCE AWARD PLAN OF

KANSAS CITY SOUTHERN

     By this Agreement, Kansas City Southern, a Delaware corporation (the “Company”), grants
to [Name], (the “Grantee”), an employee of the Company or a Subsidiary, (i) a non-qualified stock
option (the “Option”) to purchase that number of shares (“Shares”) of the Company’s Common Stock,
$.01 par value, set forth below and (ii) an equal number of limited stock appreciation rights
(“LSARs”), all subject to the terms and conditions set forth below, in the attached Exhibit A
hereto and in the Kansas City Southern 1991 Amended and Restated Stock Option and Performance Award
Plan, as may from time to time be amended (the “Plan”), all of which are an integral part of this
Agreement. A copy of the Plan is attached. Capitalized terms used but not defined in this
Agreement have the meaning specified in the Plan.

	 	 	 
	Grant Date:

	 	[Date]
	Number of Shares:     

	 	[Options]
	Option Price:

	 	[Price]

     This Option shall become exercisable on [Exercisable Date], provided you remain
continuously employed by the Company or a Subsidiary which is Consolidated with the Company for
financial reporting purposes (a “Consolidated Subsidiary”) from the Grant Date to such date. The
term of the Option shall be ten (10) years from the Grant Date unless terminated earlier as
provided in Exhibit A or in the Plan.

     Please indicate your acceptance of this Agreement by signing the enclosed copy in the space
provided below and returning it to the Corporate Secretary’s Office, in the envelope provided,
within 30 days after the Company’s mailing of this Agreement to you. This Option shall not be
exercisable unless and until you sign this Agreement and return it to the Company.

     I agree to be bound by the terms, conditions and provisions of the Plan and this Agreement. I
understand that by signing this Agreement I am not obligated to exercise all or any part of this
Option or any other Option.

	 	 	 	 	 
	 	KANSAS CITY SOUTHERN

 	 
	 	By:  	 	 
	 	 	[Name and Title] 	 
	 	 	 	 
	 

ACCEPTED AND AGREED:

	 	 	 	 	 	 	 	 	 
	 

		
	 	 
	 	, 200_
	 	 
	Signature

	 	 	 	Dated	 	 	 	 

	 	 	 
	[Name]

	 	     SS#: [SSN]
	[Address]

	 	 
	[City, State, Zip]
	 	 

(Return one copy of this Agreement in the enclosed self-addressed envelope. Retain one copy for your records.)

Please see reverse side to complete beneficiary information.

 

 

EXHIBIT A

TO

STOCK OPTION AGREEMENT

     1. Manner of Exercise. This Option shall be exercised by delivering to the Company
(or its authorized agent), during the period in which such Option is exercisable, (i) a written
notice of your intent to purchase a specific number of Shares pursuant to this Option (a “Notice of
Exercise”), and (ii) full payment of the Option Price for such specific number of Shares. Payment
may be made by any one or more of the following means:

     (a) cash or personal check, or

     (b) if approved and permitted by the Committee, Shares with a Fair Market Value on the
last complete stock trading day preceding such exercise equal to such Option Price which
either (i) have been owned by you for at least six months or (ii) were purchased by you on
the open market. Certificates for Shares shall be properly endorsed with signatures
guaranteed (unless such signature guarantee is waived by an officer of the Company), and
shall represent Shares which are fully paid, non-assessable, and free and clear from all
liens and encumbrances, or

     (c) if approved and permitted by the Committee, through the sale of the Shares
acquired on exercise of this Option through a broker to whom you have submitted irrevocable
instructions to deliver promptly to the Company the amount of sale or loan proceeds
sufficient to pay for such Shares, together with, if required by the Company, the amount of
federal, state, local or foreign withholding taxes payable by reason of such exercise. A
Copy of such delivery instructions must also be delivered to the Company by the Grantee with
the Notice of Exercise.

The exercise of the Option shall become effective at the time such a Notice of Exercise has been
received by the Company, which must be before the tenth anniversary of the Grant Date (the
“Expiration Date”). The exercise of this Option as to a number of Shares will result in the
cancellation of an equal number of LSARs. You shall not have any rights as a stockholder of the
Company with respect to the Shares deliverable upon exercise of this Option until a certificate for
such Shares is delivered to you.

     If the Option is exercised as permitted herein by any person or persons other than Grantee,
such Notice of Exercise shall be accompanied by such documentation as Company may reasonably
require, including without limitation, evidence of the authority of such person or persons to
exercise the Option and evidence satisfactory to Company that any death taxes payable with respect
to such Shares have been paid or provided for.

     2. Exercisability. This Option shall become fully exercisable upon your termination
of employment with the Company or a Consolidated Subsidiary on account of (a) Retirement, (b) death
or (c) Disability.

     3. Change of Control. This Option shall become fully exercisable upon a Change of
Control that has been approved by the Incumbent Board provided you remain continuously employed by
the Company or a Consolidated Subsidiary from the Grant Date until the Change of Control. Upon a
Change of Control that has not been approved by the Incumbent Board, all LSARs then outstanding
shall automatically be exercised and this Option shall be canceled.

     4. Exercise After Termination of Affiliation. This Option may be exercised only
while you are employed by the Company or a Subsidiary, except that this Option may also be
exercised after the date on which you cease to be so employed (“Termination Date”) as follows:

     (i) if you have a Termination of Affiliation on account of Retirement, you may also
exercise this Option at any time during the first five years after your Termination Date;

     (ii) if you have a Termination of Affiliation on account of Disability, you may also
exercise this Option at any time during the first 12 months after your Termination Date;

     (iii) if you have a Termination of Affiliation on account of death, the executor or
administrator of your estate, your heirs or legatees, or beneficiary designated in
accordance with the Plan, as applicable, may also exercise this Option at any time during
the first 12 months after your Termination Date; and

     (iv) if you have a Termination of Affiliation on account of any other reason (other
than a dismissal for Cause), you may also exercise this Option at any time during the first
three months after your Termination Date;

 

 

provided, however, that (x) except as otherwise provided in Section 2 or 3 of this Exhibit A, this
Option may be exercised after your Termination Date only to the extent it is exercisable on the
Termination Date, (y) under no circumstances may this Option be exercised on or after the
Expiration Date, and (z) the expiration of your Option will automatically result in the expiration
of all associated LSARs. For purposes of this Section 4, if you are employed by a corporation that
is a Subsidiary of the Company, you will be deemed to have had a Termination of Affiliation as of
the first day on which such corporation ceases to be a Subsidiary of the Company.

     5. Affiliation with Competitor. Notwithstanding anything to the contrary contained
herein, if Grantee, without Company’s consent, becomes associated with, employed by, renders
service to, or owns any interest in (other than any non-substantial interest, as the Committee from
time to time determines) any business that is in competition with Company or any Affiliate (as
defined below), the Option shall terminate and cease to be exercisable immediately upon such event.
For purposes of this paragraph, Affiliate means (i) any individual or entity that directly, or
through one or more intermediaries, controls, or is controlled by, or is under common control with,
the Company, and (ii) any entity in which the Company owns, directly or indirectly, 20% or more of
the combined value of all equity interests.

     6. No Waiver. The failure of Company in any instance to exercise any of its rights
granted under this Agreement or the Plan shall not constitute a waiver of any other rights that may
arise under this Agreement.

     7. Limited Transferability of Option. Except as provided in the immediately
following sentence, this Option is exercisable during your lifetime only by you or your guardian or
legal representative, and this Option and the associated LSARs are not transferable except by will
or the laws of descent and distribution. To the extent and in the manner permitted by the
Committee, and subject to such terms, conditions, restrictions or limitations that may be
prescribed by the Committee, you may transfer this Option and the associated LSARs to (i) your
spouse, sibling, parent, child (including an adopted child) or grandchild (any of which an
“Immediate Family Member”); (ii) a trust, the primary beneficiaries of which consist exclusively of
you or your Immediate Family Members; or (iii) a corporation, partnership or similar entity, the
owners of which consist exclusively of you or your Immediate Family Members.

     8. Fractional or De Minimis Shares. Neither the Option nor the LSARs shall be
exercisable with respect to a fractional share or with respect to fewer that ten (10) Shares,
unless the remaining Shares, are fewer than ten (10)).

     9. Nonstatutory Option. This Option has been designated by the Committee as a
Nonstatutory Option; it does not qualify as an incentive stock option.

     10. Taxes. The Company is not required to issue Shares upon the exercise of this
Option unless you first pay to the Company such amount, if any, as may be required by the Company
to satisfy any liability it may have to withhold federal, state, local or foreign income or other
taxes relating to such exercise. You may elect to satisfy such tax withholding obligation by
delivering to the Company a written irrevocable election to have the Company withhold a portion of
the Shares purchased upon exercise of the Option having a Fair Market Value equal to the amount of
taxes required to be withheld; provided, however, that the Committee may, at any time before you
file such an election with the Company, revoke your right to make such an election.

     11. Amendments. This Agreement may be amended only by a writing executed by the
Company and you which specifically states that it is amending this Agreement; provided that this
Agreement is subject to the power of the Board to amend the Plan as provided therein, except that
no such amendment shall adversely affect your rights under this Agreement without your consent.

     12. Notices. Any notice to be given under the terms of this Agreement to the Company
shall be addressed to the Company in care of its Corporate Secretary. Any notice to be given to
you shall be addressed to you at the address listed in the Company’s records. By a notice given
pursuant to this Section, either party may designate a different address for notices. Any notice
shall have been deemed given (i) when actually delivered to the Company, or (ii) if to the Grantee,
when actually delivered or deposited in the U.S. Mail, postage prepaid and properly addressed to
the party to be notified.

     13. Severability. If any part of this Agreement is declared by any court or
governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not serve
to invalidate any part of this Agreement not declared to be unlawful or invalid. Any part so
declared unlawful or invalid shall, if possible, be construed in a manner which gives effect to the
terms of such part to the fullest extent possible while remaining lawful and valid.

     14. Applicable Law. This Agreement shall be construed in accordance with and
governed by the laws of the State of Delaware other than its laws respecting choice of law.

 

 

     15. Headings. Headings are provided herein for convenience only and are not to
serve as a basis for interpretation or construction of this Agreement.exv10w8w5

 

EXHIBIT 10.8.5

KANSAS CITY SOUTHERN

1991 AMENDED AND RESTATED STOCK OPTION

AND PERFORMANCE AWARD PLAN

(As Amended and Restated Effective as of__________)

RESTRICTED SHARES AWARD AGREEMENT

     By this Agreement, Kansas City Southern, a Delaware corporation (the “Company”), awards
to you, [Name], an employee of the Company or a Subsidiary, as Grantee, that number of shares
(“Restricted Shares”) of the Company’s Common Stock, $.01 par value, set forth below, subject to
the terms and conditions set forth below and in the attached Exhibit A hereto and in the Kansas
City Southern 1991 Amended and Restated Stock Option and Performance Award Plan (As Amended and
Restated Effective as of ___________), as may from time to time be amended (the “Plan”), all of
which are an integral part of this Agreement.

	 	 	 
	Grant Date

	 	[Date]
	Number of Restricted Shares

	 	[No. of Shares]
	Schedule of Vesting Dates

	 	[No. of Shares] will vest on [Date]
	

	 	[No. of Shares] will vest on [Date]
	

	 	[No. of Shares] will vest on [Date]
	

	 	[No. of Shares] will vest on [Date]
	

	 	[No. of Shares] will vest on [Date]

     The Award evidenced by this Agreement shall not be effective until you have indicated your
acceptance of this Agreement by signing one copy of this Agreement in the space provided below and
returning it to the Corporate Secretary’s Office, in the envelope provided, within ten (10) days
after your receipt of this Agreement from the Company. You should retain one copy of this
Agreement for your records.

	 	 	 	 	 
	 	Kansas City Southern

 	 
	 	By:  	 	 
	 	 	Jay M. Nadlman 	 
	 	 	Associate General Counsel &

Corporate Secretary 	 
	 

ACCEPTED AND AGREED:

                                                            

[Name of Grantee]

[Address]

[City, State, Zip]

Dated:                                         , 200_

 

 

EXHIBIT A

to

RESTRICTED SHARES AWARD AGREEMENT

     1. Plan Governs. The Award and this Agreement are subject to the terms and
conditions of the Plan. The Plan is incorporated in this Agreement by this reference. All
capitalized terms used in this Agreement have the meaning set forth in the Plan unless otherwise
defined in this Agreement. By executing this Agreement, you acknowledge receipt of a copy of the
Plan and the prospectus covering the Plan and you acknowledge that the Award is subject to all the
terms and provisions of the Plan. You further agree to accept as binding, conclusive and final all
decisions and interpretations by the Plan Committee with respect to any questions arising under the
Plan.

     2. Payment. The Restricted Shares are awarded to you without requirement of
payment.

     3. Transfer Restrictions. Until the restrictions lapse, the Restricted Shares may
not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by you,
and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance
shall be void and unenforceable; provided that the designation of a beneficiary pursuant to Article
11 of the Plan shall not constitute an assignment, alienation, pledge, attachment, sale, transfer
or encumbrance. Certificates will be transferred to you only as provided in paragraph 4 of this
Exhibit A.

     4. Certificates. You will receive certificates for the number of your Restricted
Shares with respect to which the restrictions have lapsed. Until the restrictions lapse, your
Restricted Shares either will be evidenced by certificates held by or on behalf of the Company (in
which case you will sign and deliver to the Company a stock power relating to the Restricted Shares
so that the Company may cancel the Restricted Shares in the event of forfeiture), or the Restricted
Shares will be reflected in a book-entry form or other account maintained by the Company, as
determined by the Company.

     5. Rights as Stockholder. During the Period of Restriction you will have all of the
rights of a stockholder of the Company with respect to the Restricted Shares.

     6. Lapse of Restrictions Upon Vesting Date. On each Vesting Date specified on the
Schedule of Vesting Dates the number of Restricted Shares designated to vest on that date will then
vest provided your Termination of Affiliation has not occurred prior to such Vesting Date.
Restricted Shares will no longer be subject to restrictions upon vesting.

     7. Lapse of Restrictions Prior to Vesting Date. Any Restricted Shares that have not
previously vested according to the Schedule of Vesting Dates, will no longer be subject to
restrictions upon the first of the following events to occur:

2

 

          (a) Your Termination of Affiliation due to your retirement, which for this purpose is a
Termination of Affiliation on or after you have both attained age fifty-five (55) and completed at
least five (5) years of service with the Company or a Subsidiary; or

          (b) Your Termination of Affiliation due to your death; or

          (c) Your Termination of Affiliation due to your Disability; or

          (d) A Change in Control.

     8. Acceleration of Vesting. The Committee may at any time or times in its discretion
accelerate the vesting of some or all of your Restricted Shares by specifying a date, other than
what is provided in this Agreement, on which such Shares will no longer be subject to restrictions.
Any such Shares that are then vested under this paragraph 8 will not be forfeited under paragraph
9 of this Exhibit A.

     9. Forfeiture. If you have a Termination of Affiliation prior to any of the events
specified in paragraph 7 of this Exhibit A, then upon such Termination of Affiliation you will
forfeit any of your Restricted Shares that have not previously vested under this Agreement, and all
of your rights to and interest in such forfeited Restricted Shares will terminate upon forfeiture.
You agree to immediately repay to the Company all dividends, if any, paid in cash or in stock with
respect to your forfeited Restricted Shares.

     10. Tax Withholding. As of any date that a number (which may be all or part) of your
Restricted Shares would no longer be forfeited if you were to have a Termination of Affiliation on
such date, or as of any other date that a Required Withholding liability occurs, you must remit the
minimum amount necessary to satisfy the Required Withholding relating to such number of your
Restricted Shares that would not be so forfeited. The Committee may require you to satisfy the
Required Withholding by any (or a combination) of the following means: (i) a cash payment; (ii)
withholding from compensation otherwise payable to you; (iii) authorizing the Company to withhold
from any of your Restricted Shares that are no longer subject to forfeiture a number of Shares
having a Fair Market Value less than or equal to the Required Withholding; or (iv) delivering to
the Company Mature Shares having a Fair Market Value less than or equal to the amount of the
Required Withholding. The Committee may, but is not required to, approve your irrevocable election
made prior to the time the Required Withholding liability occurs to have the Company withhold from
your Restricted Shares that will no longer be subject to forfeiture at the time the Required
Withholding liability occurs, a number of Shares having a Fair Market Value less than or equal to
the Required Withholding. If at the time the Required Withholding liability occurs you are
entitled to receive certificates for Shares under this Agreement, the Company will not deliver your
certificates unless you remit (or in appropriate cases agree to remit) the Required Withholding
relating to your Shares as described above.

     11. No Right to Employment. Nothing in this Agreement shall interfere with or limit
in any way the right of the Company or a Subsidiary to terminate your employment or service at any
time, nor confer upon you the right to continue in the employ of the Company or a Subsidiary.

     12. Notices. Any notice to be given under the terms of this Agreement to the Company
shall be addressed to the Company in care of its Secretary. Any notice to be given to you shall be
addressed to you at the address listed in the Company’s records. By written notice

3

 

referencing this paragraph of this Agreement, either party may designate a different address for
notices. Any notice under this Agreement to the Company shall become effective upon receipt by the
Company. Any notice under this Agreement to you will be deemed to have been delivered to you when
delivered in person or when deposited in the United States mail, addressed to you at your address
on the shareholder records of the Company, or such other address as you have designated under this
paragraph.

     13. Tax Consultation. Your signature on this Agreement means that you understand
that you may incur tax consequences as of any date that a number (which may be all or part) of your
Restricted Shares would no longer be forfeited if you were to have a Termination of Affiliation on
such date. You agree to consult with any tax consultants you think advisable in connection with
the Restricted Shares and you acknowledge that you are not relying, and will not rely, on the
Company or any Subsidiary for any tax advice. Please see Section 16.2 of the Plan regarding Code
Section 83(b) elections.

     14. Amendment. The Company reserves the right to amend the Plan at any time. The
Committee reserves the right to amend this Agreement at any time.

     15. Severability. If any part of this Agreement is declared by any court or
governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not serve
to invalidate any part of this Agreement not declared to be unlawful or invalid. Any part so
declared unlawful or invalid shall, if possible, be construed in a manner which gives effect to the
terms of such part to the fullest extent possible while remaining lawful and valid.

     16. Applicable Law. This Agreement shall be governed by the laws of the State of
Delaware other than its laws respecting choice of law.

     17. Headings. Headings are provided herein for convenience only and are not to serve
as a basis for interpretation or construction of this Agreement.

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