Document:

Burlington Northern Santa Fe Non-Employee Director's Stock Plan

 Exhibit 10.1 
 Amended and Restated September 21, 2006 
 BURLINGTON NORTHERN SANTA FE 
 NON-EMPLOYEE DIRECTORS’ STOCK PLAN 
 SECTION 1 
 GENERAL 
 1.1. Purpose. The Burlington Northern Santa Fe Non-Employee Directors’ Stock Plan (the “Plan”) has been established by Burlington Northern Santa Fe Corporation (the “Company”) to
promote the interests of the Company and its stockholders by enhancing the Company’s ability to attract and retain the services of experienced and knowledgeable directors and by encouraging such directors to acquire an increased proprietary
interest in the Company. 
 1.2. Operation and Administration. The operation and administration of the Plan shall be subject to
the provisions of Section 4. Capitalized terms in the Plan shall be defined as set forth in Section 7 or elsewhere in the Plan. 
 SECTION 2 
 OPTION AWARDS 
 2.1. Terms and Conditions. 
 Each Option Award granted under the Plan shall be evidenced by an
agreement and shall comply with the following terms and conditions: 
 (a) The Board may from time to time grant option awards to one or more
Eligible Directors. 
 (b) The option exercise price shall be the Fair Market Value of the Stock subject to such an Option Award on the date
of grant. 
 (c) The Option Award shall not be sold, assigned, transferred, pledged or otherwise encumbered, other than by will or the laws
of descent and distribution, unless the Participant has made an irrevocable election to receive a transferable option with the Secretary of the Company prior to the date of grant or as may be required by rules established by the Board. Such
transferable Option Awards may be transferred by a Participant for no consideration to or from the Participant’s Immediate Family (including, without limitation, to a trust for the benefit of a Participant’s Immediate Family or a Family
Partnership for members of the Immediate Family), and the transferee shall remain subject to all of the terms and conditions applicable to such Option Award prior to such transfer. 
  

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 (d) The Option Awards under this subsection 2.1 shall be subject to the vesting provision set forth
in subsection 2.2. 
 2.2. Vesting. Option Awards shall be exercisable commencing one (1) year from the date of
grant. A Participant who ceases to be a Director shall forfeit the Option Award which is not vested on his Date of Termination; provided, however, that (i) if a Participant ceases to be a Director by reason of his Retirement, death or
Disability, any portion of the Option Award that is not then vested shall vest on his Date of Termination; and (ii) any portion of the Option Award that is held by an individual serving as a Director on the date of a Change in Control that is
not then vested shall vest on the date of the Change of Control. 
 2.3. Exercise. To the extent that an Option Award is
exercisable, it may be exercised in whole or in part by filing a written notice with the Secretary of the Company at its corporate headquarters prior to the date the Option expires. Such notice shall specify the number of shares of Stock which the
Participant elects to purchase, and shall be accompanied by payment of the exercise price for such shares of Stock indicated by the Participant’s election. Payment shall be by cash or by check payable to the Company, except that all or a
portion of such required amount may be paid by delivery of shares of Stock having an aggregate Fair Market Value (valued as of the date of exercise) that is equal to the amount of cash which would otherwise be required. 
 2.4. Expiration. An Option Award granted to a Director shall expire on the tenth anniversary of the Award Date; provided, however, that in
no event shall the Option Award be exercisable after the first anniversary of the Date of Termination of the Director. 
 SECTION 3

 RETAINER STOCK AWARDS 
 3.1. Terms and Conditions. As of the date of the 1996 Annual Meeting of Stockholders of the Company, each Director who is then an Eligible Director shall be granted a Retainer Stock Award. Thereafter, as
of the date of each subsequent Annual Meeting of Stockholders of the Company, each Director who is then an Eligible Director (excluding any Eligible Director who has previously received a Retainer Stock Award) shall be granted a Retainer Stock
Award, provided, however, that no grants of Retainer Stock Awards shall be made under subparagraph (a) of this Section 3.1 after December 31, 2000, and no grants of Retainer Stock Awards shall be made under subparagraph (b) of
this Section 3.1 after December 31, 2003. The Retainer Stock Award shall be as follows: 
 (a) The Retainer Stock Award shall
consist of the grant of 3,000 shares of Stock, to vest as follows: 
 1) One-third of the Retainer Stock Award shall vest
after three years, but no later than six years, from the date of grant upon attaining Fair Market Value equal to the Fair Market Value on date of grant increased by 12% compound annual growth rate for a three year period, provided such price has
been maintained for thirty (30) consecutive trading days either immediately prior to or any time after the third year; 
  

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 2) One-third of the Retainer Stock Award shall vest after four years, but no later than
six years, from the date of grant upon attaining Fair Market Value equal to the Fair Market Value on date of grant increased by 12% compound annual growth rate for a four year period, provided such price has been maintained for thirty
(30) consecutive trading days either immediately prior to or any time after the fourth year; 
 3) One-third of the
Retainer Stock Award shall vest after five years, but no later than six years, from the date of grant upon attaining Fair Market Value equal to the Fair Market Value on date of grant increased by 12% compound annual growth rate for a five year
period, provided such price has been maintained for thirty (30) consecutive trading days either immediately prior to or any time after the fifth year. 
 (b) As of December 31 for any year in which a Director has made a Deferral Election as described in Supplement A, each Eligible Director who has made a Deferral Election shall receive an additional Retainer
Stock Award equal to 150 percent of Cancelled Compensation, which shall vest three years from the date of grant. 
 (c) The Retainer Stock
Awards granted under this subsection 3.1 shall be subject to the vesting provision set forth in subsection 3.3. 
 3.2.
Fractional Shares. If the number of shares that may be vested under a Retainer Stock Award for a Director would result in a fractional share, then the number of shares otherwise available shall be reduced to the next lowest number that
would result in the allocation of no fractional shares. 
 3.3. Vesting. A Participant who ceases to be a Director prior to
vesting of a Retainer Stock Award shall forfeit a Retainer Stock Award which is not vested on his Date of Termination; provided, however, that (i) if a Participant ceases to be a Director by reason of his Retirement, death or Disability, any
portion of the Retainer Stock Award that is not then vested shall vest on his Date of Termination, provided that in the event of Retirement, any Retainer Stock Award granted under Section 3.1(a) shall be vested upon a pro rata basis based upon
the number of years which have elapsed from the date of grant divided by the five year term of the grant if the Fair Market Value of a share of Stock from the date of grant has increased by a 12% compound annual growth rate and if such value has
been maintained for thirty (30) consecutive trading days within the six month period prior to date of Retirement, or such Retainer Stock Award shall be forfeited; and (ii) any portion of the Retainer Stock Award that is held by an
individual serving as a Director on the date of a Change in Control that is not then vested shall become vested on the date of the Change of Control. 
 3.4. Limit on Stock. Stock granted as a Retainer Stock Award shall be subject to the following: 
 (a) Such Stock may not be sold, assigned, transferred, pledged or otherwise encumbered prior to the date it is vested. 
  

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 (b) Each certificate issued in respect of such Stock shall be registered in the name of
the Participant and deposited, together with a stock power endorsed in blank, with the Company. 
 (c) Except as otherwise
provided by the Plan, the Participant as owner of shares of Stock granted to him as a Retainer Stock Award shall have all the rights of a stockholder, including but not limited to the right to vote such shares and the right to receive all dividends
paid on such shares; provided, however, that no dividends shall be payable to or for the benefit of a Participant with respect to record dates for such dividends occurring on or after the date, if any, on which the Participant has forfeited the
Stock. 
 SECTION 3A 
 RESTRICTED STOCK UNIT AWARDS 
 3A.1. Terms and Conditions. Subject to the terms of this
Section 3A, a Restricted Stock Unit entitles an Eligible Director to receive one share of Stock for the unit at the end of a vesting period to the extent provided by the Award with the vesting of such unit also to be contingent upon such
conditions as may be set forth in the Award. During any period in which Restricted Stock Units are outstanding and have not been settled in Stock, the Eligible Director shall not have the rights of a stockholder, but shall have the right to receive
a payment from the Company in lieu of a dividend in an amount equal to such dividends and at such times as dividends would otherwise be paid. 
 3A.2. Grant.  
 (a) Immediately following the Annual Meeting on April 18, 2001, each Director who is then an
Eligible Director shall be granted a Restricted Stock Unit Award under this paragraph (a) of Section 3A.2. Thereafter, as of the date of each subsequent Annual Meeting of Stockholders of the Company (or, if later, the date which is two
business days after the release of the Company’s earnings results for the first quarter of the year), each Director who is then an Eligible Director (excluding any Eligible Director who has previously received a Restricted Stock Unit Award
under this paragraph (a) of Section 3A.2) shall be granted a Restricted Stock Unit Award under this paragraph (a) of Section 3A.2. The Restricted Stock Unit Awards under this paragraph (a) shall consist of a grant of 1,000
Restricted Stock Units. 
 (b) In addition to the grants described in the preceding paragraph (a) of this Section 3A.2, as of the
date of each Annual Meeting of Stockholders of the Company (or, if later, the date which is two business days after the release of the Company’s earnings results for the first quarter of the year), each Director who is an Eligible Director as
of the date of such Annual Meeting shall be granted, under this paragraph (b) of Section 3A.2, a Restricted Stock Unit Award of 2,100 Restricted Stock Units. If an individual becomes an Eligible Director during a Plan Year on a date
other than the date of the Annual Meeting for such Plan Year, he shall be granted under this paragraph (b) of Section 3A.2 on the first business day on which he is an Eligible Director, a Restricted Stock Unit Award in the amount of
2,100 Restricted Stock Units reduced pro-rata to reflect the portion of the Plan Year that has elapsed prior to the date on which he becomes an Eligible Director. 
  

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 (c) The Restricted Stock Units granted under this Section 3A.2 shall vest as follows: 
 (i) upon the Date of Termination of the Eligible Director’s service on the Board, provided, however, that as of such Date of
Termination such Director must have served on the Board at least until the next Annual Meeting following such Director’s election to the Board; and 
 (ii) as otherwise provided in Section 3A.3 below. 
 3A.3. Vesting. A Director who does
not serve on the Board at least until the next Annual Meeting following such Director’s election to the Board shall forfeit such Restricted Stock Unit Award; provided, however, that (i) if the Director ceases to be a Director by reason of
his Retirement, death or Disability, the Restricted Stock Unit Award shall vest on his Date of Termination, and (ii) any portion of the Restricted Stock Unit Award that is held by an individual serving as a Director on the date of a Change in
Control that is not then vested shall become vested on the date of the Change of Control. 
 3A.4. Limit on Restricted Stock
Units. Restricted Stock Units granted as a Restricted Stock Unit Award may not be sold, assigned, transferred, pledged or otherwise encumbered prior to the date they are vested. 
 SECTION 4 
 OPERATION AND ADMINISTRATION 
 4.1. Effective Date. Subject to the approval of the stockholders of the Company at the Company’s 1996 annual meeting of its
stockholders, the Plan shall be effective as of the Effective Date. The Plan shall be unlimited in duration and, in the event of Plan termination, shall remain in effect as long as any shares of Stock or Restricted Stock Units awarded under it are
outstanding and not fully vested. 
 4.2. Shares Subject to Plan. The shares of Stock with respect to which Awards may be made
under the Plan shall be shares currently authorized but unissued or currently held or subsequently acquired by the Company as treasury shares, including shares purchased in the open market or in private transactions. Subject to the provisions of
subsection 4.4, the number of shares of Stock which may be issued with respect to Awards under the Plan shall not exceed 300,000 shares in the aggregate. Except as otherwise provided herein, any shares subject to an Award which for any reason
expires or is terminated without issuance of shares (whether or not cash or other consideration is paid to a Participant in respect of such Award) shall again be available under the Plan. 
 4.3. Adjustments to Shares. 
 (a) If the Company shall effect a reorganization, merger, or consolidation, or similar event or effect any subdivision or consolidation of shares of Stock or other capital readjustment, 

  

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payment of stock dividend, stock split, spin-off, combination of shares or recapitalization or other increase or reduction of the number of shares of Stock
outstanding without receiving compensation therefor in money, services or property, then the Committee shall adjust equitably and proportionally (i) the number of shares of Stock available under the Plan; (ii) the number of shares
available under any individual or other limits; (iii) the number of shares of Stock or Restricted Stock Units subject to outstanding Awards; and (iv) the per-share price under any outstanding Award to the extent that the Participant is
required to pay a purchase price per share with respect to the Award. 
 4.4. Limit on Distribution. Distribution of shares of
Stock or Restricted Stock Units or other amounts under the Plan shall be subject to the following: 
 (a) Notwithstanding any other provision
of the Plan, the Company shall have no liability to issue any shares of Stock or Restricted Stock Units under the Plan or make any other distribution of benefits under the Plan unless such delivery or distribution would comply with all applicable
laws and the applicable requirements of any securities exchange or similar entity. 
 (b) The Committee shall add such conditions and
limitations to any Award to any Participant who is subject to Section 16(a) and 16(b) of the Securities Exchange Act of 1934, as is necessary to comply with Section 16(a) or 16(b) and the rules and regulations thereunder or to obtain any
exemption therefrom. 
 (c) To the extent that the Plan provides for issuance of certificates to reflect the transfer of shares of Stock, the
transfer of such shares may, at the direction of the Committee, be effected on a non-certificated basis, to the extent not prohibited by the provisions of Rule 16b-3 or any other applicable rules. 
 4.5. Taxes. All Awards and other payments under the Plan are subject to all applicable taxes which shall be obligations of the Participant.

 4.6. Distributions to Disabled Persons. Notwithstanding any other provision of the Plan, if, in the Committee’s
opinion, a Participant or other person entitled to benefits under the Plan is under a legal disability or is in any way incapacitated so as to be unable to manage his financial affairs, the Committee may direct that payment be made to a relative or
friend of such person for his benefit until claim is made by a conservator or other person legally charged with the care of his person or his estate, and such payment or distribution shall be in lieu of any such payment to such Participant or other
person. Thereafter, any benefits under the Plan to which such Participant or other person is entitled shall be paid to such conservator or other person legally charged with the care of his person or his estate. 
 4.7. Administration. The authority to control and manage the operation and administration of the Plan shall be vested in a committee (the
“Committee”) in accordance with Section 5. 
  

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 4.8. Form and Time of Elections. Any election required or permitted under the Plan shall be
in writing, and shall be deemed to be filed when delivered to the Secretary of the Company. Any Deferral Election made under Supplement A shall be irrevocable after it is filed. 
 4.9. Agreement With Company. Each Award granted under Sections 2, 3 and 3A shall be evidenced by an Agreement (an
“Agreement”) duly executed on behalf of the Company and by the Participant to whom such Award is granted and dated as of the applicable date of grant. Each Agreement shall comply with and be subject to the terms of the Plan. 
 4.10. Evidence. Evidence required of anyone under the Plan may be by certificate, affidavit, document or other information which the person
acting on it considers pertinent and reliable, and signed, made or presented by the proper party or parties. 
 4.11. Action by
Company. Any action required or permitted to be taken by the Company shall be by resolution of the Board, or by action of one or more members of the Board (including a committee of the Board) who are duly authorized to act for the board, by
a duly authorized officer of the Board, or (except to the extent prohibited by the provisions of Rule 16b-3 or any other applicable rules) by a duly authorized officer of the Company. 
 4.12. Gender and Number. Where the context admits, words in any gender shall include any other gender, words in the singular shall include
the plural and the plural shall include the singular. 
 SECTION 5 
 COMMITTEE 
 5.1. Selection of Committee. The Committee
shall be the Directors and Corporate Governance Committee. 
 5.2. Powers of Committee. The authority to manage and control the
operation and administration of the Plan shall be vested in the Committee. The Committee will have the authority to establish, amend, and rescind any rules and regulations relating to the Plan, to determine the terms and provisions of any agreements
made pursuant to the Plan, and to make all other determinations that may be necessary or advisable for the administration of the Plan. 
 5.3. Information to be Furnished to Committee. The Company shall furnish the Committee with such data and information as may be required for it to discharge its duties. The records of the Company as to the period of a
Director’s service shall be conclusive on all persons unless determined to be incorrect. Participants and other persons entitled to benefits under the Plan must furnish the Committee such evidence, data or information as the Committee considers
desirable to carry out the terms of the Plan. 
 5.4. Liability and Indemnification of Committee. No member or authorized
delegate of the Committee shall be liable to any person for any action taken or omitted in connection with the administration of the Plan unless attributable to his own fraud or willful misconduct; nor 

  

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shall the Company be liable to any person for any such action unless attributable to fraud or willful misconduct on the part of a director or employee of the
Company. The Committee, the individual members thereof, and persons acting as the authorized delegates of the Committee under the Plan, shall be indemnified by the Company, to the fullest extent permitted by law, against any and all liabilities,
losses, costs and expenses (including legal fees and expenses) of whatsoever kind and nature which may be imposed on, incurred by or asserted against the Committee or its members or authorized delegates by reason of the performance of a Committee
function if the Committee or its members or authorized delegates did not act dishonestly or in willful violation of the law or regulation under which such liability, loss, cost or expense arises. This indemnification shall not duplicate but may
supplement any coverage available under any applicable insurance. 
 SECTION 6 
 AMENDMENT AND TERMINATION 
 The
Board may, at any time, amend or terminate the Plan, provided that, subject to subsection 4.3 (relating to certain adjustments to shares), no amendment or termination may adversely affect the rights of any Participant or beneficiary under any
Award made under the Plan prior to the date such amendment is adopted by the Board. Notwithstanding the provisions of this Section 6, in no event shall the provisions of the Plan relating to Awards under the Plan be amended more than once every
six months, other than to comport with changes in the Internal Revenue Code (“Code”), the Employee Retirement Income Security Act, or the rules thereunder; provided, however, that the limitation set forth in this sentence shall be applied
only to the extent required under SEC Rule 16b-3(c)(2)(ii)(B) or any successor provision thereof. 
 SECTION 7 
 DEFINED TERMS 
 For purposes of
the Plan, the terms listed below shall be defined as follows: 
  

	(a)	Award. The term “Award” shall mean an award of stock options, restricted stock or restricted stock units granted to any person under the Plan.

  

	(b)	Board. The term “Board” shall mean the Board of Directors of the Company. 

  

	(c)	Change in Control. A “Change in Control” shall be deemed to have occurred if: 

 (1) any “person” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) (other than the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any company owned, directly or indirectly, by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the Company), is or becomes the 

  

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“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more
of the combined voting power of the Company’s then outstanding securities; 
 (2) during any period of two consecutive
years (not including any period prior to the effective date of this provision), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an
agreement with the Company to effect a transaction described in clause (1), (3) or (4) of this definition) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority
thereof; 
 (3) the stockholders of the Company approve a merger or consolidation of the Company with any other company other
than (i) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the
surviving entity) more than 80% of the combined voting power of the voting securities of the Company (or such surviving entity) outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement
a recapitalization of the Company (or similar transaction) in which no “person” (as hereinabove defined) acquires more than 25% of the combined voting power of the Company’s then outstanding securities; or 
 (4) the stockholders of the Company adopt a plan of complete liquidation of the Company or approve an agreement for the sale or
disposition by the Company of all or substantially all of the Company’s assets. For purposes of this clause (4), the term “the sale or disposition by the Company of all or substantially all of the Company’s assets” shall mean a
sale or other disposition transaction or series of related transactions involving assets of the company or of any direct or indirect subsidiary of the Company (including the stock of any direct or indirect subsidiary of the Company) in which the
value of the assets or stock being sold or otherwise disposed of (as measured by the purchase price being paid therefor or by such other method as the Board of Directors of the Company determines is appropriate in a case where there is no readily
ascertainable purchase price) constitutes more than two-thirds of the fair market value of the 

  

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Company (as hereinafter defined). For purposes of the preceding sentence, the “fair market value of the Company” shall be the aggregate market
value of the outstanding shares of Stock (on a fully diluted basis) plus the aggregate market value of the Company’s other outstanding equity securities. The aggregate market value of the shares of Stock (on a fully diluted basis) outstanding
on the date of the execution and delivery of a definitive agreement with respect to the transaction or series of related transactions (the “Transaction Date”) shall be determined by the average closing price of the shares of Stock for the
ten trading days immediately preceding the Transaction Date. The aggregate market value of any other equity securities of the Company shall be determined in a manner similar to that prescribed in the immediately preceding sentence for determining
the aggregate market value of the shares of Stock or by such other method as the Board of Directors of the Company shall determine is appropriate. 
 Notwithstanding the foregoing, a merger, consolidation, acquisition of common control, or business combination of the Company and a Class I Railroad or a holding company of a Class I Railroad shall not constitute a
“Change in Control” unless the Board makes a determination that such transaction shall constitute a “Change in Control.” 
  

	(d)	Date of Termination. A Participant’s “Date of Termination” shall be the day following the last day on which he serves as a Director.

  

	(e)	Director. The term “Director” means a member of the Board. 

  

	(f)	Disability. A Participant shall be considered to have a “Disability” during the period in which he is unable, by reason of a medically determinable physical
or mental impairment, to engage in any substantial gainful activity, which condition, in the opinion of a physician selected by the Committee, is expected to have a duration of not less than 120 days. 

  

	(g)	Effective Date. The “Effective Date” means the date of the Company’s 1996 annual stockholders meeting. 

  

	(h)	Eligible Director. Each Director who is not an employee of the Company or any Related Company shall be an “Eligible Director”. 

  

	(i)	 Fair Market Value. The “Fair Market Value” of the Stock shall be the mean between the highest and lowest quoted sales prices of a share of
Common Stock on the New York Stock Exchange Composite Transaction Report; provided, that if there were no sales on the valuation date but there were sales on dates within a reasonable period both before and after the valuation date, the Fair Market
Value is the weighted average of the means between the highest and lowest sales on the nearest date before and the nearest date after 

  

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the valuation date. The average is to be weighed inversely by the respective numbers of trading days between the selling dates and the valuation date and
shall be determined in good faith by the Committee. 

  

	(j)	Immediate Family. With respect to a particular Participant, the term “Immediate Family” shall mean the Participant’s spouse, children, stepchildren,
adoptive relationships, sisters, brothers and grandchildren. 

  

	(k)	Option Award. The term “Option Award” shall mean a non-qualified stock option granted under the Plan. 

  

	(l)	Participant. A “Participant” is any person who has received an Award under the Plan. 

  

	(m)	Plan Year. The term “Plan Year” means the period (i) beginning on the date of the Company’s annual stockholders meeting and (ii) ending on the
day immediately prior the first day of the following Plan Year. The first Plan Year shall begin on the Effective Date. 

  

	(n)	Related Companies. The term “Related Company” means any company during any period in which it is a “subsidiary corporation” (as that term is
defined in Code section 424(f)) with respect to the Company. 

  

	(o)	Retirement. The term “Retirement” means termination of service as a Director in accordance with and pursuant to the Retirement Policy for Directors adopted
by the Company. 

  

	(p)	SEC. “SEC” shall mean the Securities and Exchange Commission. 

  

	(q)	Stock. The term “Stock” shall mean shares of common stock of the Company. 

  

 -11-Burlington Northern Santa Fe 1999 Stock Incentive Plan

 Exhibit 10.2 
 Amended and Restated September 21, 2006 
 BURLINGTON NORTHERN SANTA FE 
 1999 STOCK INCENTIVE PLAN 
 SECTION 1

 STATEMENT OF PURPOSE 
 1.1. The BURLINGTON NORTHERN SANTA FE 1999 STOCK INCENTIVE PLAN (the “Plan”) has been established by BURLINGTON NORTHERN SANTA FE CORPORATION (the “Company”) to: 
  

	 	(a)	attract and retain executive, managerial and other salaried employees; 

  

	 	(b)	motivate participating employees, by means of appropriate incentives, to achieve long-range goals; 

  

	 	(c)	provide incentive compensation opportunities that are competitive with those of other major corporations; and 

  

	 	(d)	further identify a Participant’s interests with those of the Company’s other stockholders through compensation that is based on the Company’s common stock;

 and thereby promote long-term financial interest of the Company and the Related Companies, including the growth in value of the
Company’s equity and enhancement of long-term stockholder return. 
 SECTION 2 
 DEFINITIONS 
 2.1. Unless the context
indicates otherwise, the following terms shall have the meanings set forth below: 
  

	 	(a)	Award. The term “Award” shall mean any award or benefit granted to any Participant under the Plan, including, without limitation, the grant of Options, Restricted
Stock, Restricted Stock Units, Performance Stock, Achievement Award Stock, or Stock acquired through purchase under Section 10. 

  

	 	(b)	Board. The term “Board” shall mean the Board of Directors of the Company. 

  

	 	(c)	Cause. The term “Cause” shall mean (a) the willful and continued failure by the Participant to substantially perform his or her duties with the Company (other
than any such failure resulting from his or her incapacity due to physical or mental illness), or (b) the willful engaging by the Participant in conduct which is demonstrably and materially injurious to the Company, monetarily or otherwise. For
purposes of this definition, no act, or failure to act, shall be deemed “willful” unless done, or omitted to be done, by the Participant not in good faith and without reasonable belief that his or her action or omission was in the best
interest of the Company. 

  

	 	(d)	Change in Control. A “Change in Control” shall be deemed to have occurred if 

	 	(1)	any “person” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (other than the Company,
any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any company owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of
the Company), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of the Company’s then
outstanding securities; 

  

	 	(2)	during any period of two consecutive years (not including any period prior to the effective date of this provision), individuals who at the beginning of such period constitute the
Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in clause (1), (3) or (4) of this definition) whose election by the Board or
nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds ( 2/3)
of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority thereof;

  

	 	(3)	the stockholders of the Company approve a merger or consolidation of the Company with any other company other than (i) a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 80% of the combined voting power of the
voting securities of the Company (or such surviving entity) outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which
no “person” (as hereinabove defined) acquires more than 25% of the combined voting power of the Company’s then outstanding securities; or 

  

	 	(4)	 the stockholders of the Company adopt a plan of complete liquidation of the Company or approve an agreement for the sale or disposition by the Company of all or
substantially all of the Company’s assets. For purposes of this clause (4), the term “the sale or disposition by the Company of all or substantially all of the Company’s assets” shall mean a sale or other disposition transaction
or series of related transactions involving assets of the company or of any direct or indirect subsidiary of the Company (including the stock of any direct or indirect subsidiary of the Company) in which the value of the assets or stock being sold
or otherwise disposed of (as measured by the purchase price being paid therefor or by another objective method in a case where there is no readily ascertainable purchase price) constitutes more than two-thirds of the fair market value of the Company
(as hereinafter defined). For purposes of the preceding sentence, the “fair market value of the Company” shall be the aggregate market value of the outstanding shares of Stock (on a fully diluted 

  

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basis) plus the aggregate market value of the Company’s other outstanding equity securities (excluding employee stock options). The aggregate market
value of the shares of Stock (on a fully diluted basis) outstanding on the date of the execution and delivery of a definitive agreement with respect to the transaction or series of related transactions (the “Transaction Date”) shall be
determined by the average closing price of the shares of Stock for the ten trading days immediately preceding the Transaction Date. The aggregate market value of any other equity securities of the Company shall be determined in a manner similar to
that prescribed in the immediately preceding sentence for determining the aggregate market value of the shares of Stock. 

  

	 	(e)	Code. The term “Code” means the Internal Revenue Code of 1986, as amended. A reference to any provision of the Code shall include reference to any successor
provision of the Code. 

  

	 	(f)	Date of Termination. A Participant’s “Date of Termination” shall be the date on which his or her employment with all Employers and Related Companies terminates
for any reason; provided that a Date of Termination shall not be deemed to occur by reason of a transfer of the Participant between the Company and a Related Company (including Employers) or between two Related Companies (including Employers); and
further provided that unless agreed otherwise by the Participant, a Participant’s employment shall not be considered terminated while the Participant is on a military leave, sick leave or other bona fide leave of absence from an Employer or a
Related Company where the Employee may return to service and which is approved by the Participant’s employer, except that the leave shall be deemed to end on the earlier of (i) the six-month anniversary of the commencement of the leave
(or, if later, the termination of the Participant’s right to reemployment with the Employers and Related Companies provided either by statute or by contract); or (ii) the date on which the leave in fact ends without the individual
returning to active employment with the Employers and Related Companies. 

  

	 	(g)	Disability. Except as otherwise provided by the Committee, a Participant shall be considered to have a “Disability” during the period in which he or she is unable,
by reason of a medically determinable physical or mental impairment, to engage in any substantial gainful activity, which condition, in the discretion of the Committee, is expected to have a duration of not less than 120 days.

  

	 	(h)	Employee. The term “Employee” shall mean a person with an employment relationship with the Company or a Related Company. 

  

	 	(i)	Employer. The Company and each Related Company which, with the consent of the Company, participates in the Plan for the benefit of its eligible employees are referred to
collectively as the “Employers” and individually as an “Employer.” 

  

	 	(j)	 Fair Market Value. The “Fair Market Value” of the Stock shall be the mean between the highest and lowest quoted sales prices of a share of Common
Stock on the New York Stock Exchange Composite Transaction Report; provided, that if there were no sales on the valuation date but there were sales on dates within a reasonable 

  

 3 

	 	 
period both before and after the valuation date, the Fair Market Value is the weighted average of the means between the highest and lowest sales on the
nearest date before and the nearest date after the valuation date. The average is to be weighed inversely by the respective numbers of trading days between the selling dates and the valuation date and shall be determined in good faith by the
Committee. In any event the determination of “Fair Market Value” shall be consistent with the requirements of Treasury Regulation Section 1.409A-1(b)(5)(iv)(A). 

  

	 	(k)	Immediate Family. With respect to a particular Participant, the term “Immediate Family” shall mean the Participant’s spouse, children, stepchildren, adoptive
relationships, sisters, brothers and grandchildren. 

  

	 	(l)	Option. The term “Option” shall mean any Incentive Stock Option or Non-Qualified Stock Option granted under the Plan. 

  

	 	(m)	Participant. The term “Participant” means an Employee who has been granted an award under the Plan. 

  

	 	(n)	Performance-Based Compensation. The term “Performance-Based Compensation” shall have the meaning ascribed to it in section 162(m)(4)(C) of the Code.

  

	 	(o)	Performance Period. The term “Performance Period” shall mean the period over which applicable performance is to be measured, provided that such period shall not be
less than one year. 

  

	 	(p)	Qualified Retirement Plan. The term “Qualified Retirement Plan” means any plan of the Company or a Related Company that is intended to be qualified under section
401(a) of the Code. 

  

	 	(q)	Related Company. The term “Related Company” means any company during any period in which it is a “subsidiary corporation” (as that term is defined in Code
section 424(f)) with respect to the Company. 

  

	 	(r)	Restricted Period. The term “Restricted Period” shall mean the period of time for which Restricted Stock is subject to forfeiture pursuant to the Plan or during
which Options are not exercisable. 

  

	 	(s)	Retirement. “Retirement” of a Participant shall mean the occurrence of a Participant’s Date of Termination under circumstances that constitute a retirement
with immediate eligibility for benefits under Article 6 or Article 7 of the Burlington Northern Santa Fe Retirement Plan, or under the terms of the Qualified Retirement Plan of an Employer or Related Company that is extended to the Participant
immediately prior to the Participant’s Date of Termination or, if no such plan is extended to the Participant on his or her Date of Termination, under the terms of any applicable retirement policy of the Participant’s employer.

  

	 	(t)	SEC. “SEC” shall mean the United States Securities and Exchange Commission. 

  

	 	(u)	Stock. The term “Stock” shall mean shares of common stock of the Company, par value $0.01 per share. 

  

 4 

 SECTION 3 
 ELIGIBILITY 
 3.1. The Compensation and Development Committee of the Board (“Committee”)
shall determine and designate from time to time, from among the salaried, full-time officers and employees of the Employers those Employees who will be granted one or more awards under the Plan, and from among the salaried and non-salaried full- or
part-time non-officer employees of an Employer those Employees who will be granted Achievement Award Stock under Section 11 of the Plan. 
 SECTION 4 
 OPERATION AND ADMINISTRATION 
 4.1. Subject to the approval of the stockholders of the Company at the Company’s 2006 annual meeting of the stockholders, the Plan, as amended and
restated, shall be effective as of the date of such approval (“Effective Date”), provided however, that any awards made under the Plan, as amended and restated, other than awards that can be made under the Plan prior to amendments to be
approved at the 2006 annual meeting of the stockholders and that are made prior to approval by stockholders, shall be contingent on approval of the Plan, as amended and restated, by stockholders of the Company and all dividends on such Awards shall
be held by the Company and paid only upon such approval and all other rights of a Participant in connection with such an Award shall not be effective until such approval is obtained. The Plan will terminate (except with respect to then outstanding
awards) on April 21, 2014, or, if shareholders approve the Plan, as amended and restated, at the 2006 annual meeting of stockholders, ten years from the date of such approval, provided however, that no Incentive Stock Options may be granted
under the Plan on a date that is more than ten years from the Effective Date or, if earlier, the date the Plan is adopted by the Board. 
 4.2. The Plan shall be administered by the Committee which shall be selected by the Board in accordance with the charter of the Committee adopted by the Board. The authority to manage and control the operation and administration of the Plan
is subject to the following: 
  

	 	(a)	Subject to the provisions of the Plan, the Committee will have the authority and discretion to select Employees to receive Awards, to determine the time or times of receipt, to
determine the types of Awards and the number of shares covered by the Awards, to establish the terms, conditions, performance criteria, restrictions, and other provisions of such Awards, and to cancel or suspend Awards. In making such Award
determinations, the Committee may take into account the nature of services rendered by the respective Employee, his or her present and potential contribution to the Company’s success, and such other factors as the Committee deems relevant.

  

	 	(b)	 Subject to the provisions of the Plan, the Committee will have the authority and discretion to determine the extent to which Awards under the Plan will be
structured to conform to the requirements applicable to Performance-Based Compensation as described in Code section 162(m), and to take such action, establish such procedures, 

  

 5 

	 	 
and impose such restrictions at the time such awards are granted as the Committee determines to be necessary or appropriate to conform to such requirements.

  

	 	(c)	The Committee will have the authority and discretion to interpret the Plan, to establish, amend, and rescind any rules relating to the Plan, to determine the terms and provisions of
any agreements made pursuant to the Plan, and to make all other determinations that may be necessary or advisable for the administration of the Plan. 

  

	 	(d)	Any interpretation of the Plan by the Committee and any decision made by it under the Plan is final and binding on all persons. 

  

	 	(e)	Except as otherwise expressly provided in the Plan, where the Committee is authorized to make a determination with respect to any Award, such determination shall be made at the time
the Award is granted; except that the Committee may reserve the authority to have such determination made by the Committee in the future (but only if such reservation is either made at the time the Award is granted and is stated in the Agreement
reflecting the Award or, if the Agreement does not address the issue, is provided in the Plan); 

  

	 	(f)	Except to the extent prohibited by applicable law or the rules of any stock exchange, the Committee may allocate all or any portion of its responsibilities and powers to any one or
more of its members and other than in respect to eligibility, times of Awards, and terms, conditions, performance criteria, restrictions and other provisions of Awards, and except as otherwise provided by the Committee from time to time, the
Committee delegates its responsibilities and powers to the Vice President-Human Resources or his or her successor. Any such allocation or delegation may be revoked by the Committee at any time. 

  

	 	(g)	No member or authorized delegate of the Committee shall be liable to any person for any action taken or omitted in connection with the administration of the Plan unless attributable
to his or her own fraud or willful misconduct; nor shall the Employers be liable to any person for any such action unless attributable to fraud or willful misconduct on the part of a director or employee of the Employers. The Committee, the
individual members thereof, and persons acting as the authorized delegates of the committee under the plan, shall be indemnified by the Employers (to the maximum extent permitted by law) against any and all liabilities, losses, costs and expenses
(including legal fees and expenses) of whatsoever kind and nature which may be imposed on, incurred by or asserted against the Committee or its members or authorized delegates by reason of the performance of a Committee function if the Committee or
its members or authorized delegates did not act dishonestly or in willful violation of the law or regulation under which such liability, loss, cost or expense arises. This indemnification shall not duplicate but may supplement any coverage available
under any applicable by-law, contract or insurance. 

  

 6 

 4.3. Notwithstanding any other provision of the Plan to the contrary, no Participant shall receive any
Award of an Option under the Plan to the extent that the sum of: 
  

	 	(a)	the number of shares of Stock subject to such Award; 

  

	 	(b)	the number of shares of Stock subject to all other prior Awards of Options under the Plan during the one-year period ending on the date of the Award; and 

 

	 	(c)	the number of shares of Stock subject to all other prior stock options granted to the Participant under other plans or arrangements of the Employers and Related Companies during the
one-year period ending on the date of the Award; 

 would exceed the Participant’s Individual Limit under the Plan. The determination made
under the foregoing provisions of this subsection 4.3 shall be based on the shares subject to the awards at the time of grant, regardless of when the awards become exercisable. Subject to the provisions of Section 13, a Participant’s
“Individual Limit” shall be 1,000,000 shares per calendar year. 
 4.4. To the extent that the Committee determines that it is
necessary or desirable to conform any Awards under the Plan with the requirements applicable to “Performance-Based Compensation,” as that term is used in Code section 162(m)(4)(C), it may, at or prior to the time an Award is granted, take
such steps and impose such restrictions with respect to such Award as it determines to be necessary to satisfy such requirements. To the extent that it is necessary to establish performance goals for a particular performance period, those goals will
be based on one or more of the following business criteria: net income, earnings per share, debt reduction, safety, on-time train performance, return on investment, operating ratio, cash flow, return on assets, stockholders’ return, revenue,
customer satisfaction, and return on equity. If the Committee establishes performance goals for a performance period relating to one or more of these business criteria, the Committee may determine to approve a payment for that particular performance
period upon attainment of the performance goal relating to any one or more of such criteria. 
 4.5. To the extent that the Plan and the
Awards under the Plan are subject to the rules applicable to nonqualified deferred compensation plans under section 409A of the Code, such portion of the Plan and such awards are not intended to result in acceleration of income recognition or
imposition of penalty taxes by reason of section 409A, and the terms of such portion of the Plan and such awards shall be interpreted in a manner (and such portion of the Plan and such awards will be amended to the extent determined necessary or
appropriate by the Committee) to avoid such acceleration and penalties. 
 SECTION 5 
 SHARES AVAILABLE UNDER THE PLAN 
 5.1.
The shares of Stock with respect to which Awards may be made under the Plan shall be shares currently authorized but unissued or treasury shares acquired by the Company, including shares purchased in open market or in private transactions. Subject
to the provisions of Section 13, the total number of shares of Stock available for grant of Awards shall not exceed fifty-three million (53,000,000) shares of Stock. Except as otherwise provided herein, any shares subject to an Award which
for any reason expires or is terminated without issuance of shares 

  

 7 

 
(whether or not cash or other consideration is paid to a Participant in respect to such Award) shall again be available under the Plan. Shares tendered by a
Participant in full or partial payment to the Company upon exercise of an Option granted under the Plan or shares withheld by, or otherwise remitted to, the Company to satisfy a Participant’s tax withholding obligation in respect to any award
shall not become available for issuance under the Plan. 
 SECTION 6 
 OPTIONS 
 6.1. The grant of an “Option” under this Section 6
entitles the Participant to purchase shares of Stock at a price fixed at the time the Option is granted, or at a price determined under a method established at the time the Option is granted, subject to the terms of this Section 6. Options
granted under this section may be either Incentive Stock Options or Non-Qualified Stock Options, and subject to Sections 12 and 17, shall not be exercisable for six months from date of grant, as determined in the discretion of the Committee. An
“Incentive Stock Option” is an Option that is intended to satisfy the requirements applicable to an “incentive stock option” described in section 422(b) of the Code. A “Non-Qualified Stock Option” is an Option that is
not intended to be an “incentive stock option” as that term is described in section 422(b) of the Code. 
 6.2. The Committee shall
designate the Participants to whom Options are to be granted under this Section 6 and shall determine the number of shares of Stock to be subject to each such Option. To the extent that the aggregate fair market value of Stock with respect to
which Incentive Stock Options are exercisable for the first time by any individual during any calendar year (under all plans of the Company and all Related Companies) exceeds $100,000, such options shall be treated as Non-Qualified Stock Options, to
the extent required by section 422 of the Code. 
 6.3. The determination of the purchase price of a share of Stock under each Option and the
payment of the purchase price of a share of Stock under each Option shall be subject to the following: 
  

	 	(a)	The purchase price of an Option shall be established by the Committee or shall be determined by a method established by the Committee at the time the Option is granted; provided,
however, that in no event shall such price be less than Fair Market Value on the date of the grant. 

  

	 	(b)	Subject to the following provisions of this subsection 6.3, the full purchase price of each share of Stock purchased upon the exercise of any Option shall be paid at the time of
such exercise and, as soon as practicable thereafter, a certificate representing the shares so purchased shall be delivered to the person entitled thereto. 

  

	 	(c)	The purchase price of an Option shall be payable in cash or in shares of Stock (valued at Fair Market Value as of the day of exercise). 

  

	 	(d)	A Participant may elect to pay the purchase price upon the exercise of an Option through a cashless exercise arrangement as may be established by the Company.

  

 8 

	 	(e)	Except for either adjustments pursuant to Section 13 of the Plan (relating to the adjustments to shares), or reductions of the purchase price approved by the Company’s
stockholders, and subject to any applicable restrictions imposed by section 409A of the Code, the purchase price for any outstanding Option may not be decreased after the date of grant nor may an outstanding Option granted under the Plan be
surrendered to the Company as consideration for the grant of a replacement Option with a lower purchase price. 

 6.4. Except
as otherwise expressly provided in the Plan, the terms and conditions relating to the exercise of an Option shall be established by the Committee, and may include, without limitation, conditions relating to completion of a specified period of
service, achievement of performance standards prior to exercise of the Option, or achievement of Stock ownership objectives by the Participant. No Option may be exercised by a Participant after the expiration date applicable to that Option.

 6.5. The exercise period of any Option shall be determined by the Committee and shall not extend more than ten years after the Date of
Grant. 
 6.6. In the event the Participant exercises an Option granted before February 28, 2005, under this Plan or a predecessor plan
of the Company or a Related Company and pays all or a portion of the purchase price in Common Stock, in the manner permitted by subsection 6.3, such Participant, pursuant to the exercise of Committee discretion at the time the Option is exercised or
to the extent previously authorized by the Committee, may be issued a new Option to purchase additional shares of Stock equal to the number of shares of Stock surrendered to the Company in such payment. Such new Option shall have an exercise price
equal to the Fair Market Value per share on the date such new Option is granted, shall first be exercisable six months from the date of grant of the new Option and shall have an expiration date on the same date as the expiration date of the original
Option so exercised by payment of the purchase price in shares of Stock. No new Option shall be granted pursuant to this subsection 6.6 in connection with the exercise of any Option granted on or after February 28, 2005. 
 SECTION 7 
 RESTRICTED STOCK

 7.1. Subject to the terms of this Section 7, Restricted Stock Awards under the Plan are grants of Stock to Participants, the
vesting of which is subject to certain conditions established by the Committee, with some or all of those conditions relating to events (such as performance or continued employment) occurring after the date of grant, provided however that to the
extent that vesting of a Restricted Stock Award is contingent on continued employment, then (i) the required employment period shall not be less than three years following the grant of the Award unless the Award is being granted in replacement
of a previously granted award under the Plan or another plan and, as of the date of the replacement, the required employment period for the replacement grant is not less than the remaining required employment period under the grant that is being
replaced, and (ii) the grant may provide for equal, annual, pro-rata vesting during the employment period. 
 7.2. The Committee shall
designate the Participants to whom Restricted Stock is to be granted, and the number of shares of Stock that are subject to each such Award. The maximum number of shares of Stock that may be issued in 

  

 9 

 
conjunction with awards granted under Sections 7, 8 and 9 of the Plan shall be twenty-three million shares. The Award of shares under this Section 7
may, but need not, be made in conjunction with a cash-based incentive compensation program maintained by the Company, and may, but need not, be in lieu of cash otherwise awardable under such program, provided, however, that one million of the shares
remaining to be granted under Sections 7, 8 and 9 of the Plan as of April 18, 2002, shall only be used for Awards of shares of Performance-Based Restricted Stock, performance-based Restricted Stock Units or Performance Stock or in lieu of cash
otherwise awardable under such program. 
 7.3. Shares of Restricted Stock granted to Participants under the Plan shall be subject to the
following terms and conditions: 
  

	 	(a)	Except as otherwise hereinafter provided, Restricted Stock granted to Participants may not be sold, assigned, transferred, pledged or otherwise encumbered during the Restricted
Period. Except for such restrictions, the Participant as owner of such shares shall have all the rights of a stockholder, including but not limited to the right to vote such shares and, except as otherwise provided by the Committee or as otherwise
provided by the Plan, the right to receive all dividends paid on such shares. 

  

	 	(b)	Each certificate issued in respect of shares of Restricted Stock granted under the Plan shall be registered in the name of the Participant and, at the discretion of the Committee,
each such certificate may be deposited with the Company with a stock power endorsed in blank or in a bank designated by the Committee. 

  

	 	(c)	The Committee may award Performance-Based Restricted Stock, which shall be Restricted Stock that becomes vested (or for which vesting is accelerated) upon the achievement of
performance goals established by the Committee. The Committee may specify the number of shares that will vest upon achievement of different levels of performance. Except as otherwise provided by the Committee, achievement of maximum targets during
the Performance Period shall result in the Participant’s receipt of the full Performance-Based Restricted Stock Award. For achievement of the minimum target but less than the maximum target the Committee may establish a portion of the Award
which the Participant is entitled to receive. 

  

	 	(d)	Except as otherwise provided by the Committee, any Restricted Stock which is not earned by the end of a Performance Period shall be forfeited. If a Participant’s Date of
Termination occurs during a Performance Period with respect to any Restricted Stock subject to a Performance Period granted to him or her, the Committee may determine that the Participant will be entitled to settlement of all or any portion of the
Restricted Stock subject to a Performance Period as to which he or she would otherwise be eligible or make such other adjustments as the Committee, in its sole discretion, deems desirable. Subject to the limitations of the Plan and the Award of
Restricted Stock, upon the vesting of Restricted Stock, such Restricted Stock will be transferred free of all restrictions to a Participant (or his or her legal representative, beneficiary or heir). 

  

 10 

 SECTION 8 
 RESTRICTED STOCK UNITS 
 8.1. Subject to the terms of this Section 8, a Restricted Stock Unit
entitles a Participant to receive shares for the units at the end of a Restricted Period to the extent provided by the Award with the vesting of such units to be contingent upon such conditions as may be established by the Committee (such as
continued employment which, when required, shall be not less than three years (although the grant may provide for equal, annual, pro-rata vesting during that period), or satisfaction of performance criteria). The Award of Restricted Stock Units
under this Section 8 may, but need not, be made in conjunction with a cash-based incentive compensation program maintained by the Company, and may, but need not, be in lieu of cash otherwise awardable under such program, provided, however, that
one million of the shares remaining to be granted under Sections 7, 8 and 9 of the Plan as of April 18, 2002, shall only be used for Awards of shares of Performance-Based Restricted Stock, performance-based Restricted Stock Units or Performance
Stock or in lieu of cash otherwise awardable under such program. 
 8.2. The Committee shall designate the Participants to whom Restricted
Stock Units shall be granted and the number of units that are subject to each such Award. The maximum number of shares of Stock that may be issued in conjunction with awards granted under Sections 7, 8 and 9 of the Plan shall be twenty-three million
shares. During any period in which units are outstanding and have not been settled in stock, the Participant shall not have the rights of a stockholder, but shall have the right to receive a payment from the Company in lieu of a dividend in an
amount equal to such dividends and at such times as dividends would otherwise be paid. 
 8.3. If a Participant’s Date of Termination
occurs during a Restricted Period with respect to any Restricted Stock Units granted to him or her, the Committee may determine that the Participant will be entitled to settlement of all or any portion of the Restricted Stock Units as to which he or
she would otherwise be eligible or make such other adjustments as the Committee, in its sole discretion, deems desirable. 
 SECTION 9

 PERFORMANCE STOCK 
 9.1. Subject to the terms of this Section 9, a Performance Stock Award provides for the distribution of Stock to a Participant upon the achievement of performance objectives established by the Committee. For purposes of the Plan, the
“Performance Period” with respect to any Award shall be the period over which the applicable performance is to be measured. 
 9.2.
The Committee shall designate the Participants to whom Performance Stock Awards are to be granted, and the number of shares of Stock that are subject to each such Award. The maximum number of shares of Stock that may be issued in conjunction with
awards granted under Sections 7, 8 and 9 of the Plan shall be twenty-three million shares. The Award of shares under this Section 9 may, but need not, be made in conjunction with a cash-based incentive compensation program maintained by the
Company, and may, but need not, be in lieu of cash otherwise awardable under such program, provided, however, that one million of the shares remaining to be granted under Sections 7, 8 and 9 of the Plan as of April 18, 2002, shall only be used
for Awards of shares of Performance-Based Restricted Stock, 

  

 11 

 
performance-based Restricted Stock Units or Performance Stock or in lieu of cash otherwise awardable under such program. 
 9.3. If a Participant’s Date of Termination occurs during a Performance Period with respect to any Performance Stock granted to him or her, the
Committee may determine that the Participant will be entitled to settlement of all or any portion of the Performance Stock as to which he or she would otherwise be eligible or make such other adjustments as the Committee, in its sole discretion,
deems desirable. 
 SECTION 10 
 STOCK PURCHASE PROGRAM 
 10.1. The Committee may, from time to time, establish one or more programs under which Participants
will be permitted to purchase shares of Stock under the Plan, and shall designate the Participants eligible to participate under such Stock purchase programs. The purchase price for shares of Stock available under such programs, and other terms and
conditions of such programs, shall be established by the Committee. The purchase price may not be less than 85% of the Fair Market Value of the Stock at the time of purchase (or, in the Committee’s discretion, the average Stock value over a
period determined by the Committee), and the purchase price may not be less than par value. Issuances under the Stock purchase programs authorized under this Section 10.1 shall not exceed a cumulative total of 400,000 shares subsequent to
April 17, 2002. 
 10.2. The Committee may impose such restrictions with respect to shares purchased under this section, as the
Committee determines to be appropriate. Such restrictions may include, without limitation, restrictions of the type that may be imposed with respect to Restricted Stock under Section 7. 
 SECTION 11 
 ACHIEVEMENT AWARD STOCK 
 11.1. Subject to the eligibility provisions of Section 3, the Committee may determine and designate from time to time from among the eligible
employees of an Employer those Employees who will be granted Achievement Award Stock. Such Employees shall be those Employees who are recognized for specific and unique achievements that exceed normal expectations for the job. 
 11.2. Stock granted under this Section 11 shall consist of shares of Company common stock, which shall not be subject to a vesting period. The total
number of shares of Stock to be awarded under this Section 11 shall not exceed 50,000 shares, and in any calendar year no Employee may be granted more than 25 shares of Stock (or such other number as the Committee may determine) under this
Section 11, and such Stock shall be granted in lieu of a cash payment equal to no more than 25 (or such other number as the Committee may determine) times the Fair Market Value of one share of Company common Stock on the Date of Grant.

 SECTION 12 
 TERMINATION OF EMPLOYMENT 
 12.1. If a Participant’s Date of Termination occurs for any reason other than death,
Disability, Retirement, or by reason of the Participant’s employment being 

  

 12 

 
terminated by the Participant’s employer for any reason other than Cause, all outstanding Awards shall be forfeited. 
 12.2. If a Participant’s Date of Termination occurs by reason of death, all Options outstanding immediately prior to the Participant’s Date of
Termination shall immediately become exercisable and all restrictions on Restricted Stock, Restricted Stock Units, Performance Stock and shares purchased under the Stock Purchase Program outstanding immediately prior to the Participant’s Date
of Termination shall lapse. 
 12.3. If a Participant’s Date of Termination occurs by reason of Disability or Retirement, the Restricted
Period shall lapse on a proportion of any Awards outstanding immediately prior to the Participant’s Date of Termination (except that to the extent an Award of Restricted Stock, Restricted Stock Units or Performance Stock is subject to a
Performance Period, such proportion of the Award shall remain subject to the same terms and conditions for vesting as were in effect prior to termination). The proportion of an Award upon which the Restricted Period shall lapse shall be a fraction,
the denominator of which is the total number of months of any Restricted Period applicable to an Award and the numerator of which is the number of months of such Restricted Period which elapsed prior to the Date of Termination. 
 12.4. If a Participant’s Date of Termination occurs by reason of the Participant’s employment being terminated by the Participant’s
employer for any reason other than for Cause, the Restricted Period shall lapse on a proportion of any outstanding Awards (except that to the extent an Award of Restricted Stock, Restricted Stock Units or Performance Stock is subject to a
Performance Period, such proportion of the Award shall remain subject to the same terms and conditions for vesting as were in effect prior to termination). The proportion of an Award upon which the Restricted Period shall lapse shall be a fraction,
the denominator of which is the total number of months of any Restricted Period applicable to an Award and the numerator of which is the number of months of such Restricted Period which elapsed prior to the Date of Termination. 
 12.5. Non-Qualified Stock Options which are exercisable at the time of (or become exercisable by reason of) the Participant’s death, Disability,
Retirement, or other termination of employment by the Participant’s employer for reasons other than Cause shall expire on the expiration date set forth in the award or, if earlier, five years after the Date of Termination, if the
Participant’s termination occurs because of death, Disability, or Retirement or if the Participant’s employment is terminated by the Participant’s employer for reasons other than Cause. 
 Incentive Stock Options which are exercisable at the time of (or become exercisable by reason of) the Participant’s death, Disability, Retirement,
or other termination of employment by the Participant’s employer for reasons other than Cause and not exercised prior to the Date of Termination shall be treated as Non-Qualified Stock Options on the day following the Date of Termination and
shall expire on the expiration date set forth in the award or, if earlier, five years after the Date of Termination, if the Participant’s termination occurs because of death, Disability, or Retirement or if the Participant’s employment is
terminated by the Participant’s employer for reasons other than Cause. 
  

 13 

 12.6. Notwithstanding any other provision of this Section 12 to the contrary, if a
Participant’s employment is terminated by the Participant’s employer for reasons other than Cause in connection with and after a Change in Control: 
  

	 	(a)	All Options outstanding on the Participant’s Date of Termination shall become exercisable (to the extent not already exercisable) on the Participant’s Date of Termination,
provided that this paragraph (a) shall apply only to options that were held by the Participant on the date of a Change in Control. 

  

	 	(b)	Any restrictions shall lapse on awards of Restricted Stock and Restricted Stock Units, including without limitation performance-based Restricted Stock and performance-based
Restricted Stock Units, that are outstanding on the Participant’s Date of Termination, and such Awards shall be fully vested as if all performance objectives have been attained (provided that this paragraph (b) shall apply only to
Restricted Stock and Restricted Stock Units that were held by the Participant on the date of the Change in Control, and further provided that this paragraph (b) shall not apply to Performance Stock). 

  

	 	(c)	Any Performance Stock awards held by a Participant on the date of a Change in Control shall vest to the extent provided by the terms in the applicable Performance Stock Award
Agreement. 

 For purposes of this Section 12.6, a Participant will be treated as having been terminated by
the Participant’s employer for reasons other than Cause if the Participant resigns within 60 days of being notified by the Participant’s employer in writing that any of the actions described in the following paragraphs (i), (ii), or
(iii) will apply to him or her (but only if the applicable action described in paragraphs (i), (ii), or (iii) is taken in connection with and after the Change in Control). 
  

	 	(i)	The relocation of the Participant’s base of operations for the Company or Related Company to a place that is 50 miles farther from his or her residence immediately prior to the
Change in Control than the distance from such residence to the Participant’s former base of operations for the Company or Related Company. 

  

	 	(ii)	The Participant’s salary rate is reduced to a level that is less than 85% of the Participant’s salary level immediately prior to the Change in Control.

  

	 	(iii)	The aggregate value of a Participant’s (A) annual salary rate at the time of termination, (B) bonus opportunity for the year in which the Date of Termination occurs,
and (C) the value of the long-term incentive compensation awards for the year in which the Date of Termination occurs, is less than 85% of the aggregate value of a Participant’s salary rate, bonus opportunity and long-term incentive awards
for the year ending prior to the year in which the Change in Control occurs (with all such values to be determined by the Committee). 

  

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 However, if the reduction in compensation described in paragraph (ii) or
(iii) is consistent with a broad-based company reduction in compensation by the Participant’s employer (as determined by the Committee), the reduction will not be a basis for treating the Participant as having been terminated by the
Participant’s employer for reasons other than Cause, and the reduction shall be disregarded for purposes of paragraph (ii) and (iii). 
 12.7. Except to the extent the Committee shall otherwise determine, if as a result of a sale or other transaction, a Participant’s employer ceases to be a Related Company (and the Participant’s employer is or becomes an entity
that is separate from the Company), the occurrence of such transaction shall be treated as the Participant’s Date of Termination caused by the Participant being discharged by the Employer other than for Cause. 
 12.8. Notwithstanding the foregoing provisions of this section, the Committee may, with respect to any Awards of a Participant (or portion thereof) that
are outstanding immediately prior to the Participant’s Date of Termination, determine that a Participant’s Date of Termination will not result in forfeiture or other termination of the Award. 
 SECTION 13 
 ADJUSTMENTS TO SHARES

 13.1. If the Company shall effect a reorganization, merger, or consolidation, or similar event or effect any subdivision or
consolidation of shares of Stock or other capital readjustment, payment of stock dividend, stock split, spin-off, combination of shares or recapitalization or other increase or reduction of the number of shares of Stock outstanding without receiving
compensation therefor in money, services or property, then the Committee shall adjust equitably and proportionally (1) the number of shares of Stock available under the Plan; (ii) the number of shares available under any individual or
other limits; (iii) the number of shares of Stock subject to outstanding Awards; and (iv) the per-share price under any outstanding Award to the extent that the Participant is required to pay a purchase price per share with respect to the
Award. 
 SECTION 14 
 TRANSFERABILITY OF AWARDS 
 14.1. Awards under the Plan are not transferable except as designated by the Participant by will
or by the laws of descent and distribution. To the extent that the Participant who receives an Award under the Plan has the right to exercise such Award, the Award may be exercised during the lifetime of the Participant only by the Participant.
Notwithstanding the foregoing provisions of this Section 14, the Committee may permit Awards under the Plan (other than an Incentive Stock Option) to be transferred by a Participant for no consideration to or for the benefit of the
Participant’s Immediate Family (including, without limitation, to a trust for the benefit of a Participant’s Immediate Family or to a Family Partnership for members of the Immediate Family), subject to such limits as the Committee may
establish, and the transferee shall remain subject to all of the terms and conditions applicable to such Award prior to such transfer. 
  

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 SECTION 15 
 AWARD AGREEMENT 
 15.1. Each employee granted an Award pursuant to the Plan shall execute an Award
Agreement which signifies in writing, electronically or by such other means as the Company may designate, the offer of the Award by the Company and the acceptance of the Award by the employee in accordance with the terms of the Award and the
provisions of the Plan. Each Award Agreement shall reflect the terms and conditions of the Award. In the event of a disagreement between the individual Award Agreement and the Plan or the Compensation and Development Committee resolution, the Plan
or the resolution will govern. Participation in the Plan shall confer no rights to continued employment with the Company nor shall it restrict the right of the Company to terminate a Participant’s employment at any time. 
 SECTION 16 
 TAX WITHHOLDING

 16.1. All Awards and other payments under the Plan are subject to withholding of all applicable taxes, which withholding obligations
shall be satisfied (without regard to whether the Participant has transferred an Award under the Plan) by a cash remittance, or with the consent of the Committee, through the surrender of shares of Stock which the Participant owns or to which the
Participant is otherwise entitled under the Plan pursuant to an irrevocable election submitted by the Participant to the Company at the office designated for such purpose, provided that if shares are used for awards granted on or after July 1,
2000, shares from the Stock Awards may be used only in an amount equal to the minimum applicable tax withholding rate as established by the Internal Revenue Code and relevant state or local tax authorities, and any additional amount due must be
satisfied by use of attestation of ownership of other shares. The number of shares of Stock needed to be submitted in payment of the taxes shall be determined using the Fair Market Value as of the applicable tax date rounding down to the nearest
whole share; provided that no election to have shares of Stock withheld from an Award or submission of shares shall be effective with respect to an Award which was transferred by a Participant in accordance with the Plan. 
 SECTION 17 
 TERMINATION AND
AMENDMENT 
 17.1. The Board may suspend, terminate, modify or amend the Plan, provided that any amendment that would increase the
aggregate number of shares which may be issued under the Plan; materially increase the benefits accruing to Participants under the Plan; modify Section 6.3(e) or materially modify the requirements as to eligibility for participation in the
Plan, shall be subject to the approval of the Company’s stockholders, except that any such increase or modification that may result from adjustments authorized by Section 13 does not require such approval. No suspension, termination,
modification or amendment of the Plan may terminate a Participant’s existing Award or materially and adversely affect a Participant’s rights under such Award without the Participant’s consent. 
  

 16

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