Document:

Amendment No. 2 to Shareholder Rights Agreement

 Exhibit 4.1 
 AMENDMENT NO. 2 
 TO 

SHAREHOLDER RIGHTS AGREEMENT 
 THIS AMENDMENT NO. 2 TO SHAREHOLDER RIGHTS AGREEMENT (this
“Amendment”) is entered into as of April 15, 2011, by and between FREMONT MICHIGAN INSURACORP, INC., a Michigan corporation (the
“Company”), and REGISTRAR AND TRANSFER COMPANY, a New Jersey corporation, as Rights Agent (the “Rights Agent”). 

WITNESSETH: 
 WHEREAS, the Company is entering into an Agreement and Plan of Merger (as the same may be amended from time to time, the “Merger Agreement”)
dated April 15, 2011 among the Company, Auto Club Insurance Association, a Michigan reciprocal inter-insurance exchange (“Parent”), and ACG Acquisition Co., Inc., a Michigan corporation and a direct, wholly owned
Subsidiary of Parent (“Merger Sub”), under which Merger Sub will merge with and into the Company upon the terms and subject to the conditions set forth in the Merger Agreement (the “Merger”); and

 WHEREAS, simultaneously with the execution and delivery of the Merger Agreement and as a
condition and inducement to the willingness of Parent and Merger Sub to enter into the Merger Agreement, Parent, Merger Sub and certain shareholders of the Company are entering into a Shareholders Agreement, pursuant to which, among other things,
such shareholders will agree to vote to adopt and approve the Merger Agreement (the “Shareholders Agreement”); and 
 WHEREAS, the Company and the Rights Agent are parties to that certain Shareholder Rights Agreement dated November 1, 2004, as amended by that certain Amendment
No. 1 to Shareholder Rights Agreement dated May 13, 2010 (the “Rights Agreement”); and 

WHEREAS, the Company desires to amend the Rights Agreement in connection with the execution and
delivery of the Merger Agreement and the Shareholders Agreement and the consummation of the Merger and the other transactions contemplated thereby; and 
 WHEREAS, pursuant to Section 5.4 of the Rights Agreement, the Company and the Rights Agent may from time to time supplement or amend the Rights Agreement subject
to the terms of the Rights Agreement; and 
 WHEREAS, the Board of Directors of the Company
has determined that an amendment to the Rights Agreement as set forth herein is necessary and desirable in connection with the foregoing and the Company and the Rights Agent desire to evidence such amendment in writing. 

NOW, THEREFORE, in consideration of these premises and mutual agreements set forth
herein, the parties agree as follows: 
 1. DEFINITION OF TERMS. Capitalized
but undefined terms used in this Amendment shall have the meanings set forth in the Rights Agreement. 

  
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 2. AMENDMENT TO SECTION 1.1.
Section 1.1 of the Rights Agreement, “Certain Definitions” is hereby amended to add the following language to the following definitions, respectively: 
 (a) “Acquiring Person”. The definition of “Acquiring Person” is hereby amended to add the following sentence to the end thereof: 

“Notwithstanding anything in this Agreement to the contrary, no Person shall be or become an “Acquiring Person” by reason
of, and the term “Acquiring Person” shall not include any Person acquiring Beneficial Ownership of shares of Common Stock, by reason of (i) the approval, execution and/or delivery of the Agreement and Plan of Merger dated
April 15, 2011 (as the same may be amended from time to time, the “Merger Agreement”) among the Company, Auto Club Insurance Association, a Michigan reciprocal inter-insurance exchange (“Parent”),
and ACG Acquisition Co., Inc., a Michigan corporation and a direct, wholly owned subsidiary of Parent (“Merger Sub” and together with Parent and any Affiliates and Associates of Merger Sub and Parent, the “Parent
Parties”) or the approval, execution and/or delivery of any amendment thereto; (ii) the approval, execution and/or delivery of the Shareholders Agreement dated April 15, 2011 among Parent, Merger Sub and certain shareholders
of the Company (as the same may be amended from time to time, the “Shareholders Agreement”) and any other contract or instrument in each case entered into by the Company in connection with the Merger Agreement or the
approval, execution and/or delivery of any amendment thereto (the Merger Agreement, the Shareholders Agreement and such other contracts and instruments are collectively referred to in this Agreement as the “Merger Transaction
Agreements”); (iii) the merger of Merger Sub with and into the Company pursuant to, and on the terms and subject to the conditions set forth in the Merger Agreement (the “Merger”); (iv) the consummation
of the Merger or any other transactions contemplated by the Merger Transaction Agreements, including but not limited to the performance of the Shareholders Agreement; or (v) the announcement of any of the Merger Transaction Agreements, the
Merger or any other transactions contemplated by the Merger Transaction Agreements, including but not limited to the performance of the Shareholders Agreement, or the announcement of any consummation thereof.” 

(b) “Flip-in Date”. The definition of “Flip-in Date” is hereby amended to add the following sentence to the
end thereof: 
 “Notwithstanding anything in this Agreement to the contrary, no Flip-in Date shall be deemed to have
occurred by reason of (i) the approval, execution and/or delivery of any of the Merger Transaction Agreements or any amendment thereto, (ii) the Merger, (iii) the consummation of the Merger or any other transactions contemplated by
the Merger Transaction Agreements, including but not limited to the performance of the Shareholders Agreement, or (iv) the announcement of any of the Merger Transaction Agreements, the Merger or any other transactions contemplated by the Merger
Transaction Agreements, including but not limited to the performance of the Shareholders Agreement, or the announcement of any consummation thereof.” 

  
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 (c) “Flip-over Transaction or Event”. The definition of “Flip-over
Transaction or Event” is hereby amended to add the following sentence to the end thereof: 
 “Notwithstanding
anything in this Agreement to the contrary, no Flip-over Transaction or Event shall be deemed to have occurred by reason of (i) the approval, execution and/or delivery of any of the Merger Transaction Agreements or any amendment thereto,
(ii) the Merger, (iii) the consummation of the Merger or any other transactions contemplated by the Merger Transaction Agreements, including but not limited to the performance of the Shareholders Agreement, or (iv) the announcement of
any of the Merger Transaction Agreements, the Merger or any other transactions contemplated by the Merger Transaction Agreements, including but not limited to the performance of the Shareholders Agreement, or the announcement of any consummation
thereof.” 
 (d) “Separation Time”. The definition of “Separation Time” is hereby amended to add
the following sentence to the end thereof: 
 “Notwithstanding anything in this Agreement to the contrary, no Separation
Time shall be deemed to have occurred by reason of (i) the approval, execution and/or delivery of any of the Merger Transaction Agreements or any amendment thereto, (ii) the Merger, (iii) the consummation of the Merger or any other
transactions contemplated by the Merger Transaction Agreements, including but not limited to the performance of the Shareholders Agreement, or (iv) the announcement of any of the Merger Transaction Agreements, the Merger or any other
transactions contemplated by the Merger Transaction Agreements, including but not limited to the performance of the Shareholders Agreement, or the announcement of any consummation thereof.” 

(e) “Stock Acquisition Date”. The definition of “Stock Acquisition Date” is hereby amended to add the
following sentence to the end thereof: 
 “Notwithstanding anything in this Agreement to the contrary, no Stock
Acquisition Date shall be deemed to have occurred by reason of (i) the approval, execution and/or delivery of any of the Merger Transaction Agreements or any amendment thereto, (ii) the Merger, (iii) the consummation of the Merger or
any other transactions contemplated by the Merger Transaction Agreements, including but not limited to the performance of the Shareholders Agreement, or (iv) the announcement of any of the Merger Transaction Agreements, the Merger or any other
transactions contemplated by the Merger Transaction Agreements, including but not limited to the performance of the Shareholders Agreement, or the announcement of any consummation thereof.” 

3. AMENDMENT TO SECTION 2.3. Section 2.3 of the Rights Agreement,
“Exercise of Rights; Separation of Rights” is hereby amended to add the following subsection (h) to the end thereof: 
 “(h) Notwithstanding anything in this Agreement to the contrary, none of (i) the approval, execution and/or delivery of any of the Merger Transaction Agreements or any amendment thereto,
(ii) the Merger, (iii) the consummation of the Merger or any other transactions contemplated by any of the Merger Transaction Agreements, including but not limited to the performance of the Shareholders Agreement, or (iv) the
announcement of any of the Merger Transaction Agreements, the Merger or any other transactions contemplated by the Merger Transaction Agreements, including but not limited to the performance of the Shareholders Agreement, or the announcement of any
consummation thereof, shall be deemed an event that causes the Rights to become exercisable under the provisions of this Section 2.3 or otherwise.” 

  
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 4. AMENDMENT TO SECTION 2.4.
Section 2.4 of the Rights Agreement, “Adjustments to Exercise Price; Number of Rights” is hereby amended to add the following subsection (e) to the end thereof: 

“(e) Notwithstanding anything in this Agreement to the contrary, no event requiring an adjustment under this Section 2.4 shall
be deemed to occur by reason of (i) the approval, execution and/or delivery of any of the Merger Transaction Agreements or any amendment thereto, (ii) the Merger, (iii) the consummation of the Merger or any other transactions
contemplated by any of the Merger Transaction Agreements, including but not limited to the performance of the Shareholders Agreement, or (iv) the announcement of any of the Merger Transaction Agreements, the Merger or any other transactions
contemplated by the Merger Transaction Agreements, including but not limited to the performance of the Shareholders Agreement, or the announcement of any consummation thereof.” 

5. AMENDMENT TO SECTION 3.1. Section 3.1 of the Rights Agreement,
“Flip-in” is hereby amended to add the following subsection (f) to the end thereof: 
 “(f) Notwithstanding
anything in this Agreement to the contrary, no event requiring Company action or an adjustment to the Rights under this Section 3.1 shall be deemed to occur by reason of (i) the approval, execution and/or delivery of any of the Merger
Transaction Agreements or any amendment thereto, (ii) the Merger, (iii) the consummation of the Merger or any other transactions contemplated by any of the Merger Transaction Agreements, including but not limited to the performance of the
Shareholders Agreement, or (iv) the announcement of any of the Merger Transaction Agreements, the Merger or any other transactions contemplated by the Merger Transaction Agreements, including but not limited to the performance of the
Shareholders Agreement, or the announcement of any consummation thereof.” 
 6. AMENDMENT
TO SECTION 3.2. Section 3.2 of the Rights Agreement, “Flip-over” is hereby amended as follows: 
 (a) Section 3.2(a). Section 3.2(a) of the Rights Agreement is hereby amended to add the following sentence to the end thereof: 

“Notwithstanding anything in this Agreement to the contrary, no event requiring Company action or an adjustment to the Rights under
this Section 3.2(a) shall be deemed to occur by reason of (i) the approval, execution and/or delivery of any of the Merger Transaction Agreements or any amendment thereto, (ii) the Merger, (iii) the consummation of the Merger or
any other transactions contemplated by any of the Merger Transaction Agreements, including but not limited to the performance of the Shareholders Agreement, or (iv) the announcement of any of the Merger Transaction Agreements, the Merger or any
other transactions contemplated by the Merger Transaction Agreements, including but not limited to the performance of the Shareholders Agreement, or the announcement of any consummation thereof.” 

  
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 (b) Section 3.2(b). Section 3.2(b) of the Rights Agreement is hereby
amended to add the following sentence to the end thereof: 
 “Notwithstanding anything in this Agreement to the contrary,
none of (i) the approval, execution and/or delivery of any of the Merger Transaction Agreements or any amendment thereto, (ii) the Merger, (iii) the consummation of the Merger or any other transactions contemplated by any of the
Merger Transaction Agreements, including but not limited to the performance of the Shareholders Agreement, or (iv) the announcement of any of the Merger Transaction Agreements, the Merger or any other transactions contemplated by the Merger
Transaction Agreements, including but not limited to the performance of the Shareholders Agreement, or the announcement of any consummation thereof, shall be deemed a transaction or event which the Company is prohibited from entering into,
consummating or permitting to occur under this Section 3.2(b).” 
 7. AMENDMENT TO
SECTION 5.13. Section 5.13 of the Rights Agreement, “Benefits of this Agreement” is hereby amended to add the following sentence to the end thereof: 

“Further, nothing in this Agreement shall be construed to give any holder of Rights or any other Person any legal or equitable
rights, remedies or claims under this Agreement by virtue of (i) the approval, execution and/or delivery of any of the Merger Transaction Agreements or any amendment thereto, (ii) the Merger, (iii) the consummation of the Merger or
any other transactions contemplated by the Merger Transaction Agreements, including but not limited to the performance of the Shareholders Agreement, or (iv) the announcement of any of the Merger Transaction Agreements, the Merger or any other
transactions contemplated by the Merger Transaction Agreements, including but not limited to the performance of the Shareholders Agreement, or the announcement of any consummation thereof.” 

8. ENTIRE AGREEMENT. The Rights Agreement, as supplemented and modified by this Amendment, which
such Amendment shall be deemed effective as of the date first written above, as if executed on such date, together with the other writings referred to in the Rights Agreement or delivered pursuant thereto which form a part thereof, contain the
entire agreement among the parties with respect to the subject matter thereof and amend, restate and supersede all prior and contemporaneous arrangements or understandings with respect thereto. 

9. EFFECT OF AMENDMENT. Upon the effectiveness of this Amendment, on and after the
date first written above, each reference in the Rights Agreement to “this Agreement,” “hereunder,” “hereof,” or words of like import, shall mean and be a reference to the Rights Agreement, as amended hereby. Except as
specifically amended above, the Rights Agreement shall remain in full force and effect and is hereby ratified and confirmed. 

  
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 10. GOVERNING LAW. This Amendment shall be governed by
the laws of the State of Michigan applicable to contracts to be made and to be performed entirely within the State of Michigan. 

11. COUNTERPARTS. This Amendment may be executed in one or more counterparts, each of which shall constitute an
original, and all of which together shall constitute one and the same instrument. 
 SIGNATURES
ON THE FOLLOWING PAGE 

  
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 IN WITNESS WHEREOF, the parties have duly executed this Amendment to be duly executed as an
instrument under seal and attested, all as of the day and year first above written. 
  

									
	ATTEST:	 		 	FREMONT MICHIGAN INSURACORP, INC.
					
	By:	 	  
	 		 	By:	 	 /s/ Richard E. Dunning

	Name:	 	  
	 		 	Name:	 	Richard E. Dunning
	Title:	 	  
	 		 	Title:	 	President and CEO
				
	ATTEST:	 		 		 	 REGISTRAR & TRANSFER COMPANY,
 as Rights Agent

					
	By:	 	  
	 		 	By:	 	  

	Name:	 	  
	 		 	Name:	 	  

	Title:	 	  
	 		 	Title:	 	  

 SIGNATURE PAGE TO AMENDMENT NO. 2 TO SHAREHOLDER RIGHTS
AGREEMENTKansas City Southern Annual Incentive Plan

 Exhibit 10.1 
 KANSAS CITY SOUTHERN ANNUAL INCENTIVE PLAN 
 (As Amended and Restated
Effective January 1, 2011) 
 1. PURPOSE. The purpose of the Plan is to provide management employees of the Employer with
annual incentive compensation based on the level of achievement of financial and other performance criteria. The Plan is intended to focus the interests of these employees on the key measures of the Company’s success and to reward these
employees for achieving the key measures of the Company’s success. This Plan is intended to be a performance-based plan for purposes of Section 162(m) of the Code. 
 2. DEFINITIONS. As used in the Plan, the following terms shall have the meanings set forth below: 
 (a) “Award” shall mean a cash payment for a Performance Year payable to a Participant on account of his or her participation in the Plan. 

(b) “Board” shall mean the Board of Directors of the Company. 
 (c) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, including applicable regulations and rulings thereunder and any successor provisions thereto.

 (d) “Committee” shall mean the Compensation and Organization Committee of the Board (or any successor committee).

 (e) “Company” shall mean Kansas City Southern, and any successor thereto which adopts the Plan. 

(f) “Covered Employee” shall mean employee described in Section 162(m)(3) of the Code. 

(g) “Disability” shall mean a disability as defined under the Employer’s applicable long-term disability program. 

(h) “Eligible Employee” shall mean an individual who is employed by an Employer in active service and who is not represented by a union
or other collective bargaining organization. 
 (i) “Employer” shall mean the Company and any affiliate of the Company that
elects to participate and be an Employer under the Plan with the consent of the Company. 
 (j) “Leave” shall mean an absence
from work with the approval of the applicable Employer. Leaves include absences for short-term disability, family leaves of absence and other approved leaves of absence. 
 (k) “Maximum Award” shall mean an Award level that may be paid if the maximum level of the Performance Goal(s) is achieved in the Performance Year. 

(l) “Participant” shall mean, with respect to any Performance Year, any Eligible Employee who is selected to participate in the Plan in
accordance with Section 3 of the Plan. 
 (m) “Performance Goal” shall mean the pre-established performance goal(s)
established under the Plan for each Performance Year as described in Section 4 of the Plan. 

 (n) “Performance Measures” shall mean one or more of the following criteria on which
Performance Goals may be based: 
 (i) Earnings (either in the aggregate or on a per-share basis); 

(ii) Net income (before or after taxes); 
 (iii) Operating income; 
 (iv) Cash flow; 

(v) Return measures (including return on assets, equity, or sales); 

(vi) Earnings before or after any, or any combination of, taxes, interest or depreciation and amortization; 

(vii) Gross revenues; 
 (viii) Share price (including growth measures and stockholder return or attainment by the Company’s common stock of a specified value for a specified period of time); 

(ix) Reductions in expense levels in each case, where applicable, determined either on a Company-wide basis or in respect of any one or
more business units; 
 (x) Net economic value; 
 (xi) Market share; 
 (xii) Operating profit; 

(xiii) Costs; 

(xiv) Operating and maintenance cost management and employee productivity; 

(xv) Stockholder returns (including return on assets, investments, equity, or gross sales); 

(xvi) Economic value added; 
 (xvii) Aggregate product unit and pricing targets; 
 (xviii) Strategic business
criteria, consisting of one or more objectives based on meeting specified revenue, market share, market penetration, geographic business expansion goals, objectively identified project milestones, production volume levels, cost targets, and goals
relating to acquisitions or divestitures; 

 (xix) Achievement of business or operational goals such as market share and/or business
development; 
 (xx) Results of customer satisfaction surveys; 

(xxi) Safety record; 
 (xxii) Network and service reliability; 
 (xxiii) Debt ratings, debt leverage and
debt service; and/or 
 (xxiv) Operating ratio; 
 provided, that, with respect to any Eligible Employee who is not a Covered Employee, the Committee shall have the authority to use Performance Measures other than those herein specified (including
individual performance criteria) as it deems appropriate in its sole discretion. 
 (o) “Performance Year” shall mean the
calendar year of the Company in which a Participant provides services on account of which the Award is made. 
 (p) “Plan”
shall mean the Kansas City Southern Annual Incentive Plan, as set forth herein, as from time to time amended. 
 (q) “Proration
Fraction” shall mean a fraction, the numerator of which is the number of days in the Performance Year the individual was an Eligible Employee, and the denominator of which is 365. 
 (r) “Qualified Performance-Based Award” shall mean an Award to a Covered Employee that is intended to meet the qualified performance-based compensation exception contained in
Section 162(m)(4)(C) of the Code. 
 (s) “Target Award” shall mean an Award level that may be paid if the target level of
the Performance Goal(s) is achieved in the Performance Year. 
 (t) “Threshold Award” shall mean an Award level that may be
paid if the threshold level of the Performance Goal(s) is achieved in the Performance Year. 
 3. ELIGIBILITY and PARTICIPATION.

 (a) In General. An Eligible Employee of an Employer will become a Participant for a Performance Year if he or she is selected by
the Company, subject to the approval of the Committee, as eligible to participate in the Plan. Participants will be determined at the beginning of each Performance Year, and participation in the Plan during one Performance Year does not guarantee
continued participation in future Performance Years. The Company, subject to the approval of the Committee, may add Participants during the course of a Performance Year as it deems appropriate in its sole discretion. A Participant must be employed
by an Employer on the last business day of a Performance Year in order to be eligible to receive an Award, except as provided in Section 3(b)(2) below. 

 (b) Prorations for Partial Year. A Participant who is not an Eligible Employee for an entire
Performance Year may receive an Award for any portion of the Performance Year that he or she is an Eligible Employee, under the circumstances described below and subject to Section 5 of the Plan: 

1) New Hires, Transfers. A Participant who becomes an Eligible Employee on account of being hired or transferred during a
Performance Year will be eligible for a prorated Award for such Performance Year. The amount of the prorated Award shall be equal to the full amount of the Award otherwise determined under Section 4 of the Plan, multiplied by the Proration
Fraction. Notwithstanding the preceding two sentences, and subject to the provisions of Section 3(a) of the Plan, an individual who becomes an Eligible Employee on or after October 1 of a Performance Year will not become a Participant in
such Performance Year and will not be eligible for an Award for such Performance Year. 
 2) Death or Disability. A
Participant who has a termination of employment during a Performance Year on account of death or Disability will be eligible for a prorated Award for such Performance Year. The amount of the prorated Award shall be equal to the full amount of the
Award for such individual for the Performance Year in which the death or Disability occurs, multiplied by the Proration Fraction. With respect to the calculation of an Award for purposes of this provision, the Participant’s rate of base salary
in effect for the last full payroll period of his or her employment shall be used. 
 Notwithstanding the foregoing, the Committee may, in its
discretion, based upon the recommendation of the Company, determine that a Participant who is added during the course of a Performance Year will be eligible for an Award for the Performance Year that is not a prorated Award and that therefore is not
multiplied by the Proration Fraction. 
 (c) Leaves. A Participant who is on Leave for an aggregate of more than three (3) months
during a Performance Year will not be eligible for an Award for such Performance Year; provided however, a Participant who is on Leave under the Family Medical Leave Act will continue as a Participant during such Leave and will be eligible for an
Award for the Performance Year of such Leave subject to other provisions of the Plan, and a Participant who is on Leave during a period of service in the uniformed services and returns to employment with the Employer and is entitled to benefits upon
reemployment under the Uniformed Services Employment and Reemployment Rights Act will continue as a Participant during such Leave and will be eligible for an Award for the Performance Year of such Leave subject to other provisions of the Plan.

 4. DETERMINATION OF AWARDS. 

(a) Establishment of Performance Goal. The Company shall establish objective Performance Goals for each Award after the beginning of each
Performance Year subject to the approval of the Committee. The Performance Goals may be based upon the performance of the Company, the Employer, or any operating unit level, division or function thereof, and may be applied either alone or relative
to the performance of other businesses or individuals (including industry or general market indices), based on one or more of the Performance Measures. Performance Goals may be expressed as whole dollar amounts, percentages or growth rates.
Performance Goals will be determined each year by the senior management of the Company, with consultation from other third party sources, and are subject to the approval of the Committee. Performance Goals will be set for each Performance Measure as
follows: threshold, target and maximum. No Award will be made under a Performance Measure if results are below the threshold level. 

 (b) Establishment of Awards. The Company shall also establish, subject to the approval of the
Committee, the Threshold Award, the Target Award and the Maximum Award payable to a Participant if the Performance Goal(s) is achieved. The payment of any Award shall be subject to achievement of the applicable Performance Goals and certification by
senior management of the Company to the degree to which each of the Performance Goals have been attained. The Committee will consider such certification in its determination hereunder of whether an Award shall be paid. Threshold Awards, Target
Awards and Maximum Awards will be expressed as a percentage of a participant’s base salary and correspond to salary grades. Target Award percentages will be determined each year by the senior management of the Company, with consultation from
other third party sources, and are subject to the approval of the Committee. For purposes of determining the amount of an Award, the Participant’s rate of base salary in effect for the last full payroll period of the Performance Year to which
the Award pertains shall be used. 
 (c) Maximum Individual Award. The maximum amount of any Maximum Award to a Participant for any
Performance Year shall be the lesser of $3,000,000 or 200 percent of a Participant’s Target Award for a Performance Year. Threshold Award amounts will be 50% of the potential Target Award amount (multiplied by the Performance Measure
weighting). 
 (d) Adjustments to Awards. The Committee may, in its discretion, modify the amount of any Award based on such criteria as
it shall determine, including, but not limited to, financial results, individual performance, safety performance, business unit and site accomplishments, and other factors tied to the success of the Company or any of its business units; provided,
that no increase may be made in the amount payable with respect to any Qualified Performance-Based Award made to a Covered Employee unless the Committee amends such Award so that it no longer qualifies for the performance-based exception under
Section 162(m)(4)(C) of the Code. The Committee shall retain the discretion to adjust any Award downward. There is no obligation of uniformity of treatment of Participants under the Plan. 

(e) Profit Sharing Adjustment. If, under statutory law, a Participant is entitled to a profit sharing payment from the Employer for a calendar
year that coincides with a Performance Year, then the Award amount otherwise payable to the Participant hereunder shall be reduced by an amount equal to such statutory profit sharing amount payable to the Participant. If applicable, for purposes of
calculating such reduction, the statutory profit sharing amount shall be converted to U.S. dollars in accordance with procedures established hereunder. 
 5. PAYMENT OF AWARDS. 
 (a) Time of Payment. An Award shall be
paid to a Participant in cash as soon as practicable after the Committee has certified in writing that the Performance Goal(s) for the Performance Year have been achieved; provided, however, in no event will the Award with respect to a Performance
Year be paid to a Participant later than the 15th day of
the third month following the end of such Performance Year. No absolute right to any Award shall be considered as having accrued to any Participant prior to the payment of the Award. Notwithstanding the foregoing, an Award with respect to a
Performance Year to be paid to a Participant that is not subject to income taxation under the laws of the United States, may be paid later than the 15th day of the third month following the end of such Performance Year, but shall not in any event be
paid later than the 30th day of the fourth month following the end of such Performance Year. Awards payable to other Participants who have had a termination of employment on account of death or Disability during the Performance Year shall be payable
in accordance with Section 3(b) of the Plan and at the same time other Participants receive Awards under the Plan. 

 (b) Termination of Employment Other Than on Account of Death or Disability. A Participant who has a
termination of employment other than on account of death or Disability prior to the last day of a Performance Year shall not be paid any Award for such Performance Year. 
 (c) Termination of Employment on Account of Death or Disability. A Participant who has a termination of employment on account of death or Disability after the end of the Performance Year but prior
to the payment date for Awards for such Performance Year shall be paid the full amount of any Award for such Performance Year, determined under Section 4 of the Plan (in addition to any amount determined under Section 3(b) for the
Performance Year in which the termination of employment on account of death or Disability occurs). If the Participant dies prior to receiving payment of an Award, any Award payable under the Plan to such Participant shall be paid to the
Participant’s estate. 
 (d) Withholding. Awards are subject to withholding for applicable federal, state and local taxes.

 6. COMPLIANCE WITH SECTION 162(M) OF THE CODE. 
 (a) Purpose. The purpose of Section 6 of the Plan is to provide the Committee the ability to grant Qualified Performance-Based Awards to Covered Employees, in accordance with
Section 162(m)(4)(C) of the Code. This Section 6 of the Plan shall apply only to Qualified Performance-Based Awards granted to Covered Employees and shall supersede any other provision of such Award or this Plan that is inconsistent with
this Section 6. 
 (b) Procedures with Respect to Qualified Performance-Based Awards. Any Qualified Performance-Based Award granted
by the Committee to a Covered Employee shall be set forth in writing and shall specify the following: 
 (i) the Covered Employee
to whom the Award is made; 
 (ii) the Performance Goals applicable to the Performance Year, which shall be specified by the
Committee no later than ninety (90) days after the beginning of such Performance Year, but in no event after twenty-five percent (25%) of the applicable Performance Year has elapsed, provided that the outcome is substantially uncertain at
the time the Committee establishes such Performance Goals; and 
 (iii) the amount that may be earned upon attainment of such
Performance Goals. 
 (c) Payment of Qualified Performance-Based Awards. Except as otherwise permitted under Section 162(m) of the
Code, payment of any Qualified Performance-Based Award subject to this Section 6 of the Plan shall be contingent on the attainment of the Performance Goals applicable to such Award. Following the completion of each Performance Year and prior to
the payment of such Qualified Performance-Based Award, the Committee shall certify in writing whether the applicable Performance Goals have been achieved for such Performance Year. In determining the amount earned by a Covered Employee, the
Committee shall have the right to reduce or eliminate (but not to increase) the amount payable at a given level of performance to take into account additional factors that the Committee may deem relevant to the assessment of individual or corporate
performance for the Performance Year. A Participant shall be eligible to receive payment pursuant to a Qualified Performance-Based Award for a Performance Year only if the Performance Goals for such year are achieved. 

 (d) Additional Limitations. Notwithstanding any other provision of the Plan, any Award which is
granted to a Covered Employee and is intended to constitute Qualified Performance-Based Award shall be subject to any additional limitations set forth in Section 162(m) of the Code (including any amendment to Section 162(m) of the Code) or
any regulations or rulings issued thereunder that are requirements for qualification as qualified performance-based compensation as described in Section 162(m)(4)(C) of the Code, and the Plan and/or any Award shall be deemed amended to the
extent necessary to conform to such requirements. 
 7. PLAN ADMINISTRATION. 
 (a) Administration. The Plan shall be administered by the Committee. The Committee shall have full discretionary authority to establish the rules and regulations relating to the Plan, to interpret
the Plan and those rules and regulations, to determine the Awards and the Performance Measures applicable to each Award, to approve all Awards, to decide the facts in any case arising under the Plan, and to make all other determinations and to take
all other actions necessary or appropriate for the proper administration of the Plan. In making any determinations under or referred to in the Plan, the Committee shall be entitled to rely on opinions, reports or statements of employees of the
Company and of counsel, public accountants, and other professional or expert persons. The Committee’s administration of the Plan, including all such rules and regulations, interpretations, selections, determinations, approvals, decisions,
delegations, amendments, terminations and other actions, shall be final and binding on the Company and its stockholders and all employees, including Participants and their beneficiaries. No member of the Committee shall be liable for any action
taken or determination made in good faith with respect to the Plan or any Award. 
 (b) Delegation. Except to the extent prohibited by
applicable law or the applicable rules of a stock exchange, the Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members, and may delegate all or any part of its responsibilities and powers for
administering the Plan to one or more persons as the Committee deems appropriate, and at any time may revoke any such allocation or delegation. 

8. AMENDMENT OR TERMINATION OF PLAN. The Committee may amend (in whole or in part) or terminate the Plan at any time, effective at such
date as the Committee may determine. The Company also may amend (in whole or in part) or terminate the Plan at any time effective as of such date as the Company may determine, provided, however, any such amendment of the Plan by the Company is
subject to the approval of the Committee. 
 9. MISCELLANEOUS PROVISIONS. 
 (a) Awards Not Transferable. A Participant’s right and interest under the Plan may not be assigned or transferred. Any attempted assignment or transfer shall be null and void and shall
extinguish, in the Committee’s sole discretion, the Company’s obligation under the Plan to pay Awards with respect to the Participant. 

 (b) Effect of Awards on Other Compensation. 

1) Awards shall not be considered eligible pay under other plans, benefit arrangements or fringe benefit arrangements of the Company,
unless otherwise provided under the terms of other plans. 
 2) To the extent provided in the applicable benefit plan or benefit
arrangement of an Employer, amounts payable as Awards will be reduced in accordance with the Participant’s compensation reduction election, if any, in effect under other plans at the time the Award is paid. 

(c) No Employment Rights. This Plan is not a contract between the Employer and any employee or Participant. Neither the Plan, nor any action taken
hereunder, shall be construed as giving to any Participant the right to be retained in the employ of the Employer. Nothing in the Plan shall limit or affect in any manner or degree the normal and usual powers of management, exercised by the officers
and the Board or any committee of the Board, to change the duties or the character of employment of any employee or to remove an individual from the employment of the Employer at any time, all of which rights and powers are expressly reserved.

 (d) Unfunded Plan. The Plan shall be unfunded. No Employer shall be required to establish any special or separate fund, or to make any
other segregation of assets, to assure payment of Awards. Awards shall be paid solely from the general assets of the Participant’s Employer, to the extent the payments are attributable to services for the Employer. To the extent any person
acquires a right to receive payments from an Employer under the Plan, the right is no greater than the right of any other unsecured general creditor. 
 (e) Payment in Shares of Company Common Stock. Notwithstanding any provision in this Plan to the contrary, the Committee may direct that payment of an Award be made in shares of the Company’s
common stock, in lieu of cash, in accordance with any executive stock ownership guidelines adopted by the Committee. Any such Award paid in shares of the Company’s common stock shall be made pursuant to and in accordance with the Kansas City
Southern 2008 Stock Option and Performance Award Plan (or any successor plan). 
 (f) Applicable Law. The Plan shall be governed by the
laws of the State of Missouri and applicable federal law.

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