Document:

Burlington Northern Santa Fe 1996 Stock Incentive Plan

 Exhibit 10.3 
 Amended and Restated September 21, 2006 
 BURLINGTON NORTHERN SANTA FE 1996 STOCK INCENTIVE PLAN

 SECTION 1 
 STATEMENT OF PURPOSE 
 1.1 The BURLINGTON NORTHERN SANTA FE CORPORATION 1996 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, Stock Appreciation
Rights, Restricted Stock, Restricted Stock Units, Performance Stock, Stock acquired through purchase under Section 12, or Performance Units. 

  

	 	(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 duties with the Company (other than any such
failure resulting from his 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 other-wise. 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 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 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 Company (as 

  

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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 or 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 that is approved by the
Board shall not constitute a “Change in Control” unless the Board makes a determination that the transaction shall constitute a “Change in Control”. 
  

	 	(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 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 a Participant’s employment shall not be considered terminated while the Participant is on a leave of absence from an Employer or a Related Company approved by the Participant’s employer. 

  

	 	(g)	Disability. Except as otherwise provided by the Committee, 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 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 

  

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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 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. 

  

	 	(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. 

  

	 	(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 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. 

  

	 	(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 and Stock Appreciation Rights 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 at normal
requirement age 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 Date of Termination, under the terms of any applicable retirement policy of the Participant’s employer provided, that in respect to grants made on or after January 1, 1999, the following definition shall apply:

 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 a 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 Date of Termination, under the terms of any applicable retirement policy of the
Participant’s employer. 
  

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

  

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

 SECTION 3 
 ELIGIBILITY 
 3.1. Subject to the discretion of the Committee and the terms and conditions of the Plan, the 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. 
 SECTION 4 
 OPERATION AND ADMINISTRATION 
 4.1. Subject to the approval of the stockholders of the Company at the Company’s 1996 annual meeting of the stockholders, the Plan shall be
effective as of January 1, 1996 (“Effective Date”), provided however, that any awards made under the Plan prior to approval by stockholders, shall be contingent on approval of the Plan by stockholders of the Company and all dividends
on Awards shall be held by the Company and paid only upon such approval and all other rights of a Participant in connection with an Award shall not be effective until such approval is obtained. The Plan shall be unlimited and remain in effect until
termination by the Board, 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 Compensation Committee of the Board which shall be selected by the Board, shall consist of members of the
Board who are not employees of the Company and are not eligible to participate in the Plan, and shall consist of not less than two members of the Board, or such greater number as may be required for compliance with SEC Rule 16b-3. The authority to
manage and control the operation and administration of the Plan shall be vested in the Committee, 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 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, 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. 

  

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	 	(c)	The Committee will have the authority and discretion to interpret the Plan, 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. 

  

	 	(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 made, 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 made at the time the Award is granted and is expressly stated in the Agreement
reflecting the Award). 

  

	 	(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 Senior Vice President-Employee Relations or his 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 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 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.

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

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

  

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	 	(b)	the number of shares of Stock subject to all other prior Awards of Options and Stock Appreciation Rights 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 and stock appreciation rights 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 14, 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 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. 
 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 14, the total number of shares of Stock available for grant of Awards shall not exceed ten million (10,000,000) 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 (whether or not cash or other consideration is paid to a Participant in respect to such Award) as well as shares used to pay an Option Purchase Price
under this Plan or a predecessor plan shall again be available 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 13 and 18, 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 

  

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requirements applicable to an “incentive stock option” described in section 422(b) of the Code. A “Non-Qualified 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 and payment of the purchase price of a share of
Stock under each Option granted under this section shall be subject to the following: 
  

	 	(a)	The purchase price 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 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.

 6.4. Except as otherwise expressly provided in the Plan, an Option granted under this Section 6 shall be exercisable in
accordance with the following terms of this subsection 6.4: 
  

	 	(a)	The terms and conditions relating to 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. 

  

	 	(b)	The exercise of an Option will result in the surrender of the corresponding rights under a tandem Stock Appreciation Right, if any. 

 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 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 

  

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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. 
 SECTION 7 
 STOCK APPRECIATION RIGHTS 
 7.1. Subject to the terms of this Section 7, a Stock Appreciation Right granted under the Plan entitles the Participant to receive, in cash or Stock
(as determined in accordance with subsection 7.4), value equal to all or a portion of the excess of: (a) the Fair Market Value of a specified number of shares of Stock at the time of exercise; over (b) a specified price which shall not be
less than 100% of the Fair Market Value of the Stock at the time the Stock Appreciation Right is granted, or, if granted in tandem with an Option, the exercise price with respect to shares under the tandem Option. 
 7.2. Subject to the provisions of the Plan, the Committee shall designate the Participants to whom Stock Appreciation Rights are to be granted under the
Plan, shall determine the exercise price or a method by which the price shall be established with respect to each such Stock Appreciation Right, and shall determine the number of shares of Stock on which each Stock Appreciation Right is based. A
Stock Appreciation Right may be granted in connection with all or any portion of a previously or contemporaneously granted Option or not in connection with an Option. If a Stock Appreciation Right is granted in connection with an Option then, in the
discretion of the Committee, the Stock Appreciation Right may, but need not, be granted in tandem with the Option. 
 7.3. The exercise of
Stock Appreciation Rights shall be subject to the following: 
  

	 	(a)	If a Stock Appreciation Right is not in tandem with an Option, then the Stock Appreciation Right shall be exercisable in accordance with the terms established by the Committee in
connection with such rights but, subject to Sections 13 and 18 shall not be exercisable for six months from the date of grant; and may include, without limitation, conditions relating to completion of a specified period of service, achievement of
performance standards prior to exercise of the Stock Appreciation Rights, or achievement of objectives relating to Stock ownership by the Participant. However, except as otherwise expressly provided in the Plan, no Stock Appreciation Right subject
to this paragraph (a) may be exercised by a Participant after the expiration date applicable to that Stock Appreciation Right. 

  

	 	(b)	If a Stock Appreciation Right is in tandem with an Option, then the Stock Appreciation Right shall be exercisable at the time the tandem Option is exercisable. The exercise of a
Stock Appreciation Right will result in the surrender of the corresponding rights under the tandem Option. 

 7.4. Upon the
exercise of a Stock Appreciation Right, the value to be distributed to the Participant, in accordance with subsection 7.1, shall be distributed in shares of Stock (valued at their Fair Market Value at the time of exercise), in cash, or in a
combination thereof, in the discretion of the Committee. 
  

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 7.5. The Committee may grant Limited Stock Appreciation Rights. Notwithstanding the foregoing provisions
of this Section 7, a Limited Stock Appreciation Rights shall be subject to the following: 
  

	 	(a)	A Limited Stock Appreciation Right may (but need not) be granted in connection with all or any portion of a previously or contemporaneously granted Option and shall not be
exercisable for six months from the date of grant. A Limited Stock Appreciation Right may be granted in tandem with an Option regardless of whether the Option is in tandem with a Stock Appreciation Right. 

  

	 	(b)	A Limited Stock Appreciation Rights entitles the Participant to receive a cash payment in connection with a Change in Control. In the case of a Limited Stock Appreciation Right that
is in tandem with an Option, the payment amount shall be equal to the difference between the exercise price per share of the Stock covered by the tandem Option and the Fair Market Value of a share of Stock upon the date of exercise.

  

	 	(c)	To the extent provided by the Committee, a Limited Stock Appreciation Right may be automatically exercisable at a time determined by the Committee, or it may be exercised by the
Participant during the period beginning not earlier than the date of a Change in Control, and ending not later than ninety (90) days following the date of the Change in Control, and may be exercisable regardless of whether the Participant is
then employed by an Employer or a Related Company. 

  

	 	(d)	If the Limited Stock Appreciation Right is in tandem with an Option, the exercise of the Limited Stock Appreciation Right shall result in the cancellation of the tandem Option (and
any Stock Appreciation Right in tandem with such Option). 

 SECTION 8 
 RESTRICTED STOCK 
 8.1. Subject to the
terms of this Section 8, 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, the required employment period shall not generally
be less than three years following the grant of the Award unless such grant is in substitution for an Award under this Plan or a predecessor plan of the Company or a Related Company. 
 8.2. 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 Award of shares 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. 
  

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 8.3. 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, 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 would otherwise be eligible, and may accelerate the determination of the value and settlement of such Restricted Stock subject to a Performance Period 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). 

 8.4 A grant of Restricted Stock subject to a
Performance Period shall be made in 1996 and shall vest as follows: 
  

	 	(1)	One-third of the 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 a 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;

  

	 	(2)	One-third of the 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 a 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;

  

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	 	(3)	One-third of the 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 a 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.

 SECTION 9 
 RESTRICTED STOCK UNITS 
 9.1. Subject to the terms of this Section 9, 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 or satisfaction of performance criteria). The Award of Restricted Stock Units 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. 
 9.2. 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. 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. 
 9.3. If a Participant’s Date of Termination occurs during a Restricted Period with respect to any Restricted Stock Units granted to him, 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 would otherwise be eligible, and may accelerate the determination of the value and settlement of such
Restricted Stock Units or make such other adjustments as the Committee, in its sole discretion, deems desirable. 
 SECTION 10

 PERFORMANCE STOCK 
 10.1. Subject to the terms of this Section 10, 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. 
 10.2. 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 Award of shares under this Section 10 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. 
  

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 10.3. If a Participant’s Date of Termination occurs during a Performance Period with respect to any
Performance Stock granted to him, 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 would otherwise be eligible, and may accelerate the determination of the
value and settlement of such Performance Stock or make such other adjustments as the Committee, in its sole discretion, deems desirable. 
 SECTION 11 
 PERFORMANCE UNITS 
 11.1. Subject to the terms of this Section 11, the Award of Performance Units under the Plan entitles the Participant to receive value for the units at the end of a Performance Period to the extent provided under
the Award. The number of units earned, and value received for them, will be contingent on the degree to which the performance measures established at the time of grant of the Award are met. 
 11.2. The Committee shall designate the Participants to whom Performance Units are to be granted, and the number of units to be the subject to each such
Award. 
 11.3. For each Participant, the Committee will determine the value of units, which may be stated either in cash or in units
representing shares of Stock; the performance measures used for determining whether the Performance Units are earned; the Performance Period during which the performance measures will apply; the relationship between the level of achievement of the
performance measures and the degree to which Performance Units are earned; whether, during or after the Performance Period, any revision to the performance measures or Performance Period should be made to reflect significant events or changes that
occur during the Performance Period; and the number of earned Performance Units that will be settled in cash and/or shares of Stock. 
 11.4.
Settlement of Performance Units shall be subject to the following: 
  

	 	(a)	The Committee will compare the actual performance to the performance measures established for the Performance Period and determine the number of units as to which settlement is to
be made, and the value of such units. 

  

	 	(b)	Settlement of units earned shall be wholly in cash, wholly in Stock or in a combination of the two, to be distributed in a lump sum or installments, as determined by the Committee.

  

	 	(c)	Shares of Stock distributed in settlement of the units shall be subject to such vesting requirements and other conditions, if any, as the Committee shall determine. Such vesting
restrictions may include, without limitation, restrictions of the type that may be imposed with respect to Restricted Stock under Section 8. 

 11.5. If a Participant’s Date of Termination occurs during a Performance Period with respect to any Performance Units granted to him, the Committee may determine that the Participant will be entitled to
settlement of all or any portion of the Performance Units as to which he would otherwise be eligible, and may accelerate the determination of the value and settlement of such Performance Units or make such other adjustments as the Committee, in its
sole discretion, deems desirable. 
  

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 SECTION 12 
 STOCK PURCHASE PROGRAM 
 12.1. 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 75% 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 further provided that the purchase price may not be less than par value. 
 12.2. 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 8. 
 SECTION 13 
 TERMINATION OF EMPLOYMENT 
 13.1. If a Participant’s Date of Termination
occurs for any reason other than death, Disability, early retirement under the terms of a Qualified Retirement Plan of an Employer, Retirement, or by reason of the Participant’s employment being terminated by the Participant’s employer for
any reason other than Cause, all Awards shall be forfeited. 
 13.2. If a Participant’s Date of Termination occurs by reason of death,
all Options and Stock Appreciation Rights outstanding immediately prior to the Participant’s Date of Termination shall immediately become exercisable and all restrictions on Restricted Stock, Restricted Stock Units, Performance Units,
Performance Stock and shares purchased under the Stock Purchase Program outstanding immediately prior to the Participant’s Date of Termination shall lapse. 
 13.3. If a Participant’s Date of Termination occurs by reason of Disability, early retirement under the terms of a Qualified Retirement Plan of an Employer, or Retirement, the Restricted Period shall lapse on a
proportion of any Awards outstanding immediately prior to the Participant’s Date of Termination (except to the extent that an Award of Restricted Stock, Restricted Stock Units, Performance Units and 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. 
 13.4. 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 

  

 14 

 
Restricted Stock and Restricted Stock Units subject only to a Performance Period, Performance Units and Performance Stock which shall be forfeited). 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. 
 13.5. Stock Appreciation Rights and Non-Qualified Stock Options
which are or become exercisable by reason of death, Disability, early retirement under the terms of a Qualified Retirement Plan of an Employer, or Retirement shall expire on the expiration date set forth in the award or, if earlier: 
  

	 	(a)	three years after the Date of Termination, if the Participant’s termination occurs because of death, Disability, or Retirement; and 

  

	 	(b)	three months after the Date of Termination, if the Participant’s employment is terminated by the Participant’s employer for reasons other than Cause or early retirement
under the terms of a Qualified Retirement Plan of an Employer 

 Incentive stock options which are or become exercisable by reason of death,
Disability, early retirement under the terms of a Qualified Retirement Plan of an Employer, or Retirement shall expire on the expiration date set forth in the award or, if earlier; 
  

	 	(a)	three years after the Date of Termination, if the Participant’s termination occurs because of death; and 

  

	 	(b)	three months after the Date of Termination, if the Participant’s is terminated because of Disability, by the Participant’s employer for reasons other than Cause, early
retirement under the terms of a Qualified Retirement Plan of an Employer, or Retirement. 

 Options and Stock Appreciation Rights which are or
become exercisable at the time of a Participant’s death may be exercised by the Participant’s designated beneficiary or, in the absence of such designation, by the person to whom the Participant’s rights will pass by will or the laws
of descent and distribution. 
 13.6. If a Participant’s employment is terminated by the Participant’s employer for reasons other
than Cause in connection with 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: 
  

	 	(a)	All outstanding Options and Stock Appreciation Rights then held by the Participant shall become exercisable on the Participant’s Date of Termination. 

 

	 	(b)	Any restrictions on Awards held by the Participant as of the Participant’s Date of Termination shall lapse and all Awards vested as if all performance objectives have been
attained. 

 13.7. 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. 
  

 15 

 13.8. 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. 
 13.9. Notwithstanding the foregoing provisions of this section, Awards of Non-Qualified Stock Options issued after January 1,
1999 which are or become exercisable upon early retirement under the terms of a Qualified Retirement Plan shall expire on the expiration date set forth in the award or, if earlier, three years after the Date of Termination. 
 SECTION 14 
 ADJUSTMENTS TO SHARES

 14.1. 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 (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 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 15 
 TRANSFERABILITY OF AWARDS 
 15.1. 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 15, 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. 
 SECTION 16 
 AWARD AGREEMENT 
 16.1. Each employee granted an Award pursuant to the Plan shall sign an Award Agreement which signifies 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. 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. 
  

 16 

 SECTION 17 
 TAX WITHHOLDING 
 17.1. 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. 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 18 
 CHANGE IN CONTROL 
 18.1. Subject to the provisions of Section 14 (relating to the adjustment of shares), and except as otherwise provided in the Plan or the Agreement reflecting the applicable Award, upon the occurrence of a Change
in Control: 
  

	 	(a)	All outstanding Options (regardless of whether in tandem with Stock Appreciation Rights) shall become fully exercisable, except to the extent that the right to exercise the Option
is subject to any restrictions established in connection with a Limited Stock Appreciation Right that is in tandem with the Option. 

  

	 	(b)	All outstanding Stock Appreciation Rights (regardless of whether in tandem with Options) shall become fully exercisable, except that if Stock Appreciation Rights are in tandem with
an Option, and the Option is in tandem with a Limited Stock Appreciation Right, the right to exercise the Stock Appreciation Right shall be subject to any restrictions established in connection with the Limited Stock Appreciation Right.

  

	 	(c)	All shares of Restricted Stock, Restricted Stock Units and Performance Stock shall become fully vested. 

  

	 	(d)	All vesting restrictions imposed under Section 12 (relating to restrictions on shares purchased by the Participants) shall cease to apply, and the Participant shall become
fully vested in those shares. 

  

	 	(e)	Performance Units may be paid out in such manner and amounts as determined by the Committee. 

  

 17 

 SECTION 19 
 TERMINATION AND AMENDMENT 
 19.1. 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; or materially modify the requirements as to eligibility for
participation in the Plan, shall be subject to the approval of BNSF’s stockholders, except that any such increase or modification that may result from adjustments authorized by Section 14 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. 
  

 18Form of Burlington Northern Santa Fe Change-in-Control Agreement

 Exhibit 10.4 
 Amended and Restated Agreement as of September 21, 2006 
 Mr.XXXXXXXXXXXXXX: 
 Burlington Northern Santa Fe Corporation (the “Corporation”) considers it essential to the best interests of its stockholders to foster the
continuous employment of key management personnel. In this connection, the Board of Directors of the Corporation (the “Board”) recognizes that, as is the case with many publicly held corporations, the possibility of a Change in Control (as
that term is defined in this letter) may exist, and that such possibility, and the uncertainty and questions which it may raise among management, may result in the departure or distraction of management personnel to the detriment of the Corporation
and its stockholders. 
 The Board has determined that appropriate steps should be taken to reinforce and encourage the continued attention
and dedication of members of the Corporation’s management, including yourself, to their assigned duties without distraction in the face of potentially disturbing circumstances arising from the possibility of a Change in Control. 
 In order to induce you to remain in the employ of the Corporation or its affiliates, the Corporation agrees that you shall receive the severance benefits
set forth in this letter agreement (the “Agreement”) in the event your employment with the Corporation is terminated under the circumstances described below subsequent to a “Change in Control” (as defined in Section 2), and
that you shall be eligible for the parachute tax gross-up and certain other benefits described in this Agreement. 
 1. TERM. The
“Agreement Term” shall begin on _______________ (the “Effective Date” of this Agreement), and shall end on December 31, ____, subject to the following: 
 (i) As of January 1, ____, and each January 1 thereafter, the Agreement Term shall automatically be extended to the next following
December 31; provided, however, that no such extension shall take place if, on or before the September 30 next preceding the date on which the extension would otherwise take place, the Corporation has given notice that it does not wish to
extend the Agreement Term.1 For the avoidance of doubt, it is recited here that if a Change in Control described in
paragraph 2(i) or 2(iii) occurs, and your Date of Termination occurs after the 24-month anniversary of the date of the Change in Control but before consummation of the transaction approved by the shareholders and before the Agreement Term expires by
reason of paragraph (iii) below (relating to a Board determination that consummation will not occur), the Agreement Term shall be extended to your Date of Termination. 
  

	1	Insert the next clause in agreements entered into after September 21, 2006: “; and further provided, that no such extension shall take place if the
effect of the extension would be to extend the Agreement Term beyond the December 31 coincident with or next following the two-year anniversary of the date on which you cease to be in a position that is at or above salary band 36 (unless, as of
such December 31, you are again in a position that is at or above salary band 36); and further provided that no such extension shall take place if a Change in Control has occurred prior to the date on which the extension would otherwise take
place)” 

 (ii) Subject to paragraph (iii) next below, if a Change in Control occurs during the Agreement Term
(as it may be extended from time to time), the Agreement Term shall be extended for a period of twenty-four (24) months beyond the last day of the calendar month in which the Change in Control occurs, but in no event less than twelve
(12) months beyond the date of the consummation of the Change in Control. 
 (iii) If a Change in Control described in paragraph 2(i) or
2(iii) occurs during the Agreement Term (as it may be extended from time to time), but the Board thereafter determines that it will not consummate the transaction or regulatory approval for the transaction is not obtained, then the Board may reduce
the 24-month extension period set forth in paragraph (ii) next above; provided that the Agreement Term may not end earlier than six (6) months after such notice of reduction is provided by the Board or, if earlier, the date such Agreement
Term would end in the absence of action under this paragraph (iii). 
 (iv) In no event, however, shall the Agreement Term extend beyond the
end of the calendar month in which your 65th birthday occurs if you are subject to mandatory retirement at such age or to the extent permitted by law. 
 2. CHANGE IN CONTROL. A “Change in Control” shall be deemed to have occurred if: 
 (i) 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 Corporation, any trustee or other fiduciary holding securities under an employee
benefit plan of the Corporation, or any company owned, directly or indirectly, by the stockholders of the Corporation in substantially the same proportions as their ownership of stock of the Corporation), is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Corporation representing 25% or more of the combined voting power of the Corporation’s then outstanding securities. 
 (ii) During any period of two consecutive years (not including any period prior to the Effective Date), 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 Corporation to effect a transaction described in paragraphs (i), (iii) or (iv) of this definition) whose
election by the Board or nomination for election by the Corporation’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. 
 (iii) The
stockholders of the Corporation approve a merger or consolidation of the Corporation with any other company other than (a) a merger or consolidation which would result in the voting securities of the Corporation 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 Corporation (or such surviving entity)
outstanding immediately after such merger or consolidation, or (b) a merger or consolidation effected to implement a recapitalization of the Corporation (or similar transaction) in which no “person” (as hereinabove defined) acquires
more than 25% of the combined voting power of the Corporation’s then outstanding securities. 
  

 2 

 (iv) The stockholders of the Corporation adopt a plan of complete liquidation of the Corporation or
approve an agreement for the sale or disposition by the Corporation of all or substantially all of the Corporation’s assets. For purposes of this paragraph (iv), the term “the sale or disposition by the Corporation of all or substantially
all of the Corporation’s assets” shall mean a sale or other disposition transaction or series of related transactions involving assets of the Corporation or of any direct or indirect subsidiary of the Corporation (including the stock of
any direct or indirect subsidiary of the Corporation) 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 Corporation (as hereinafter defined). For purposes of the preceding sentence, the “fair market value of the Corporation” shall be the
aggregate market value of the outstanding shares of common stock of the Corporation (on a fully diluted basis) plus the aggregate market value of the Corporation’s other outstanding equity securities (excluding employee stock options). The
aggregate market value of the shares of common stock of the Corporation (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 common stock of the Corporation for the ten trading days immediately preceding the Transaction Date. The aggregate market value of any other equity
securities of the Corporation 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 common stock of the Corporation. 
 A Change in Control that occurs prior to the beginning of the Agreement Term shall be disregarded for purposes of this Agreement. 
 3. BASIS OF EMPLOYMENT TERMINATION. If your Date of Termination occurs during the Agreement Term, on a date that is coincident with or follows the
occurrence of a Change in Control, or if you have a disability during the Agreement Term after the occurrence of a Change in Control, you shall be eligible for payments and benefits in accordance with, and to the extent provided by, Section 4,
with such eligibility determined on the basis for your termination of employment. For purposes of this Agreement, the basis for your termination of employment shall be determined in accordance with this Section 3. 
 (i) Disability. If, as a result of your incapacity due to physical or mental illness or injury, you shall have been absent from the full-time performance
of your duties with the Corporation for six (6) consecutive months, and within thirty (30) days after written Notice of Termination is given by the Corporation, you shall not have returned to the full-time performance of your duties, your
employment may be terminated by the Corporation for unavailability due to “Disability.” Notwithstanding any other provision of this Agreement, a termination of employment under this paragraph (i) shall not cause you to be considered a
terminated employee within the meaning of the Corporation’s long term disability plan and your rights thereunder shall not be affected by this Agreement. 
 (ii) Cause. Your Date of Termination shall be deemed to have occurred for “Cause,” if your Date of Termination occurs because of circumstances described in paragraph (a) or paragraph (b) next
below, as determined in accordance with the procedures set forth in paragraphs (A), (B) and (C) next below: 
 (a)
the willful and continued failure by you to substantially perform your duties with the Corporation (other than any such failure resulting from your incapacity due to physical or mental illness or injury, or any such actual or anticipated failure
after the issuance of a Notice of Termination by you for Good Reason); or 
  

 3 

 (b) the willful engaging by you in conduct which is demonstrably and materially injurious
to the Corporation, monetarily or otherwise. 
 For purposes of this paragraph (ii), no act, or failure to act, on your part shall be deemed
“willful” unless done, or omitted to be done, by you not in good faith and without a reasonable belief that your action or omission was in the best interest of the Corporation. Your Date of Termination shall not be deemed to have occurred
for “Cause” unless the procedures described in paragraphs (A), (B) and (C), next below, have been satisfied: 
 (A) A written notice of alleged Cause is delivered to you by the Board or a member of the Board. In the case of “Cause” described in paragraph 3(ii)(a) (relating to a failure to perform your duties), the written notice shall
consist of specific identification of the manner in which the Board or such Board member believes that you have not substantially performed your duties, and shall include a demand for such performance. In the case of “Cause” described in
paragraph 3(ii)(b) (relating to conduct injurious to the Company), the written notice shall consist of specific identification of the manner in which the Board or such Board member believes that you have engaged in conduct which is demonstrably and
materially injurious to the Corporation. 
 (B) You have received an opportunity to be heard by the Board or a member of the
Board, which will consist of delivery to you of reasonable advance written notice of a Board meeting (to be delivered at or after the time you receive the notice of alleged Cause, described in paragraph (A) next above), at which you, together
with your counsel, may be heard by the Board, concerning the contents of the notice of alleged Cause and, in the case of “Cause” described in paragraph 3(ii)(a), the manner in which you intend to achieve substantial performance.

 (C) You have received a copy of your Notice of Termination, which will include a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters (3/4) of the entire membership of the Board at a meeting of the Board, which occurs after your opportunity to be heard by the Board (at that meeting or a subsequent meeting), and which finds that
in the good faith opinion of the Board you were guilty of conduct set forth in the notice of alleged Cause and which specifies the particulars thereof in detail. The Date of Termination set forth in the Notice of Termination shall be not earlier
than thirty (30) days after the notice of alleged Cause has been delivered to you in accordance with paragraph 3(ii)(A). 
 (iii) Good
Reason. Subject to the procedures set forth in paragraphs (A), (B), and (C) next below, you shall be entitled to terminate your employment for Good Reason. For purposes of this Agreement, “Good Reason” shall mean, without your express
written consent, the occurrence, after a Change in Control, of any of the circumstances described in paragraphs (a) through (h) next below. However, “Good Reason” shall not exist under paragraphs (a), (e), (f), (g) or (h),
next below, if such circumstances are fully corrected prior to the Date of Termination specified in the Notice of Termination given in respect thereof. 
  

 4 

 (a) The assignment to you of any duties with a level of responsibility materially
inconsistent with the position in the Corporation that you held immediately prior to the Change in Control, or a significant adverse alteration in the status of your responsibilities from those in effect immediately prior to such Change in Control.

 (b) A reduction by the Corporation in your annual base salary as in effect on the Effective Date, and adjusted to reflect
such increases as may be made after the Effective Date and prior to the occurrence of a Change in Control, and also adjusted to reflect such decreases as may be made after the Effective Date, but taking decreases into account only to the extent that
they are part of across-the-board salary reductions similarly affecting all management personnel of the Corporation and all management personnel of any person in control of the Corporation. 
 (c) The relocation of your base of operations for the Corporation or affiliate to a place that is fifty (50) miles farther from your
residence immediately prior to the Change in Control than the distance from such residence to your former base of operations for the Corporation or affiliate. The determination of whether the distance exceeds 50 miles shall be performed in a manner
that is consistent with Internal Revenue Service rules applicable to the determination of deductibility of moving expenses. 
 (d) The failure by the Corporation to pay to you any portion of your current compensation or to pay to you any portion of an installment of deferred compensation under any deferred compensation program of the Corporation within seven
(7) days of the date such compensation is due. 
 (e) The failure by the Corporation to continue in effect any
compensation plan in which you participate immediately prior to the Change in Control that is material to your total compensation, including but not limited to the Corporation’s Retirement Plan, Supplemental Retirement Plan, Investment and
Retirement Plan, Supplemental Investment and Retirement Plan, Incentive Compensation Plan, Stock Incentive Plan, or any substitute plans adopted prior to the Change in Control, unless an equitable arrangement (embodied in an ongoing substitute or
alternative plan) has been made with respect to such plan, or the failure by the Corporation to continue your participation therein (or in such substitute or alternative plan) on a basis not materially less favorable, both in terms of the amount of
benefits provided and the level of your participation relative to other participants, as existed at the time of the Change in Control. 
 (f) The failure by the Corporation to continue to provide you with benefits substantially similar to those enjoyed by you under any of the Corporation’s life insurance, medical, health and accident, or disability
plans in which you were participating at the time of the Change in Control, the taking of any action by the Corporation which would directly or indirectly materially reduce any of such benefits or deprive you of any material fringe benefit enjoyed
by you at the time of the Change in Control, or the failure by the Corporation to provide you with the number of paid vacation days to which you are entitled on the basis of years of service with the Corporation in accordance with the
Corporation’s normal vacation policy in effect at the time of the Change in Control. 
  

 5 

 (g) The failure of the Corporation to obtain a satisfactory agreement from any successor
to assume and agree to perform this Agreement, as contemplated in Section 7. 
 (h) Any purported termination of your
employment that is not effected pursuant to a Notice of Termination satisfying the requirements of paragraph 3(vi) (and, if applicable, the requirements of this paragraph 3(iii)), which purported termination shall not be effective for purposes of
this Agreement. 
 You shall not be deemed to have terminated employment for Good Reason unless you have delivered a written Notice of Termination, which:

 (A) identifies the circumstances, and the provisions of this paragraph 3(iii), which form the basis for your termination
for Good Reason; 
 (B) in the case of circumstances described in paragraphs (a), (e), (f), (g) or (h) next above,
demands correction; and 
 (C) specifies a Date of Termination which is not less than fifteen (15) days nor more than
sixty (60) days after the Notice of Termination has been provided to the Corporation. 
 Your continued employment shall not constitute consent to, or a
waiver of rights with respect to, any circumstance constituting Good Reason hereunder. 
 (iv) Discharge Absent Cause or Disability. You
shall be deemed to have been discharged by the Corporation absent Cause or Disability if your employment is terminated by the Corporation other than in accordance with paragraph 3(i) (relating to Disability) or paragraph 3(ii) (relating to Cause).
Your Date of Termination under this paragraph 3(iv) may not be earlier than sixty (60) days after the written Notice of Termination is delivered to you. However, the sixty (60) day notice requirement shall not apply to a termination which
occurs prior to the date of a Change in Control; provided, however, that if your employment is terminated in accordance with this paragraph 3(iv) within sixty (60) days prior to the occurrence of a Change in Control, your employment shall be
deemed to have been terminated on the date specified in the Notice of Termination, but not earlier than sixty (60) days after such notice is provided to you. 
 (v) Payment in Lieu of Notice. The Corporation shall be deemed to have complied with the requirement of this Section 3 relating to advance Notice of Termination if it places you on a fully-paid leave of absence
during such notice period; provided, however, that to the extent that such leave of absence prevents you from returning to work following a disability, as described in paragraph 3(i), or prevents you from substantially performing your duties, as
described in paragraph 3(ii), the establishment of such leave of absence shall be deemed inconsistent with the provisions of paragraph 3(i) or paragraph 3(ii), and except to the extent that another provision of paragraph 3(i) or paragraph 3(ii)
applies, your employment will be deemed to have been terminated in accordance with paragraph 3(iv) (relating to discharge absent Cause or Disability). For purposes of this paragraph (v), during such fully-paid leave of absence, you shall be entitled
to base salary, and to continue as a participant in all compensation, benefit and insurance plans in which you were participating at the time the leave of absence began. 
  

 6 

 (vi) Notice of Termination. “Notice of Termination” shall mean a notice that shall indicate the
specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of your employment under the provision so indicated. 
 (vii) Date of Termination. “Date of Termination” shall mean the date on which your employment with the Corporation and any affiliates
terminates for any reason. 
 (viii) Extension of Date of Termination. If, within fifteen (15) days after any Notice of Termination is
given, or, if later, prior to the Date of Termination (as determined without regard to extensions under this paragraph (viii)), the party receiving such Notice of Termination notifies the other party that a dispute exists concerning the termination,
then the Date of Termination shall be the date on which the dispute is finally determined, either by mutual written agreement of the parties, by a binding arbitration award, or by a final judgment, order or decree of a court of competent
jurisdiction (which is not appealable or with respect to which the time for appeal therefrom has expired and no appeal has been perfected); provided, however, that the Date of Termination shall be extended by a notice of dispute only if such notice
is given in good faith and the party giving such notice pursues the resolution of such dispute with reasonable diligence. Notwithstanding the pendency of any such dispute if the dispute relates to a termination under paragraph 3(iv) and the
Corporation’s failure to provide benefits under this Agreement, the Corporation will continue to pay you your full compensation in effect when the notice giving rise to the dispute was given (including, but not limited to, base salary) and
continue you as a participant in all compensation, benefit and insurance plans in which you were participating when the notice giving rise to the dispute was given, until the dispute is finally resolved in accordance with this paragraph (viii).
Amounts paid under this paragraph (viii) are in addition to all other amounts due under this Agreement, and shall not be offset against or reduce any other amounts due under this Agreement and shall not be reduced by any compensation earned by
you as the result of employment by another employer. Notwithstanding the foregoing provisions of this paragraph (viii), the determination of whether your Date of Termination has occurred within the Agreement Term shall be determined without regard
to any extensions under this paragraph (viii). 
 4. COMPENSATION UPON TERMINATION OR DURING DISABILITY. If your Date of Termination occurs
during the Agreement Term, on a date that is coincident with or follows the occurrence of a Change in Control, or if you have a disability during the Agreement Term and after the occurrence of a Change in Control, you shall be entitled to payments
and benefits in accordance with, and to the extent provided by, this Section 4. 
 (i) Discharge for Cause and Voluntary Resignation. If
your employment is terminated by the Corporation for Cause, or is terminated by you other than for Good Reason, the Corporation shall pay you your full base salary through the Date of Termination at the rate in effect at the time Notice of
Termination is given, plus all other amounts to which you are entitled under any compensation plan of the Corporation or any affiliate at the time such payments are due, and the Corporation shall have no further obligations to you under this
Agreement. 
 (ii) Disability. During any period that you fail to perform your full-time duties with the Corporation as a result of
incapacity due to physical or mental illness or injury, you shall continue to receive your base salary at the rate in effect at the commencement of any such 

  

 7 

 
period, together with all compensation payable to you under the long term disability plan or other similar plan during such period, until your employment is
terminated pursuant to paragraph 3(i). Thereafter, or in the event your employment shall be terminated by reason of your death, your benefits shall be determined under the Corporation’s retirement, insurance and other compensation programs then
in effect in accordance with the terms of such program; however, your receipt of benefits under the long term disability plan will not be affected by your termination under this Agreement. 
 (iii) Termination for Good Reason and Discharge Absent Cause or Disability. If your employment is terminated by you for Good Reason, or by the
Corporation absent Cause or Disability (as described in paragraph 3(iv)), then you shall be entitled to the payments and benefits described below: 
 (a) Prior Salary and Deferrals. The Corporation shall pay to you (1) your full base salary through your Date of Termination at the rate in effect at the time the Notice of Termination is given, with payment to be
made no later than the fifth day following your Date of Termination; (2) your Bonus Rate (defined below) for the year in which your Date of Termination occurs, subject to a pro-rata reduction for the portion of the year after your Date of
Termination; and (3) all other amounts to which you are entitled under any compensation plan of the Corporation, at the time such payments are due under the terms of such plans. 
 (b) Additional Salary and Severance. In lieu of any further salary or bonus payments to you for periods subsequent to your Date of
Termination, and except as provided in paragraph 4(iv), the Corporation shall pay to you, at the time specified in paragraph 4(iv), a lump sum severance payment equal to: [for CEO, EVPs, and individuals covered by the Corporation’s Change in
Control Agreement as of September 21, 2006: the sum of (A) 2.99 times your Salary Rate and (B) 2.99 times your Bonus Rate; or for all other executives in salary bands 36 and above who become covered by the Corporation’s
Change in Control Agreements after September 21, 2006: the sum of (A) two (2) times your Salary Rate and (B) two (2) times your Bonus Rate.] 
 For purposes of this paragraph (iii): 
 (A) Your “Salary Rate” shall be equal to the greatest of: (1) your annual salary as in effect as of the Date of Termination plus any amounts deferred under the Burlington Northern Santa Fe Supplemental
Investment and Retirement Plan or foregone under the Salary Exchange Option Program or any other arrangement of the Corporation or its affiliates providing for the elective deferral of salary], (2) your highest consecutive twelve
(12) months’ salary over the twenty-four (24) month period preceding the Date of Termination, or (3) your annual salary as in effect immediately prior to the Change in Control. 
 (B) Your “Bonus Rate” shall be the amount which you would have received under the Corporation’s Incentive Compensation Plan
(or other successor annual bonus plan) for the calendar year in which your Date of Termination occurs, if you had remained employed by the Corporation for that entire year, and the target level of performance established annually by the Corporation
had been achieved for the year. For the avoidance of doubt, it is recited here that 

  

 8 

 
achievement of target level of performance shall mean the achievement of a performance level whereby all of the performance objectives for the year are at
planned and budgeted levels of performance (as provided in the bonus plan); and such level of performance shall be greater than threshold level of performance (which is the minimum level of performance that will result in payment of any bonus), and
shall be less than the maximum level of performance, which is a level of performance above the performance level planned and budgeted for the year, which would result in maximum bonus. 
 (c) Stock Awards. The following provisions of this paragraph (c) shall apply to stock awards granted under the Corporation’s
1996 Stock Incentive Plan, 1999 Stock Incentive Plan, or any similar successor plan: 
 (I) Except as provided in paragraph
(d) below, the restrictions shall lapse (to the extent that they have not previously lapsed) on any stock option award or stock appreciation right award outstanding on the Date of Termination, such stock options and stock appreciation rights
shall become fully exercisable beginning as of the Date of Termination, and such exercisability shall continue until it would otherwise terminate in accordance with the terms of the applicable award agreement. 
 (II) Except as provided in paragraph (III) and paragraph (d) below, the restricted period (or other vesting or similar period) with
respect to any restricted stock, restricted stock units and, except for stock options and stock appreciation rights, all other stock based awards granted to you as of a date prior to the date of the Change in Control shall lapse on your Date of
Termination, and such shares shall be distributed to you at the time specified in paragraph 4(iv). However, any change in the time or form of distribution otherwise provided under this paragraph (II) shall be disregarded to the extent that such
change would otherwise result in the application of penalties under Code section 409A. 
 (III) The foregoing provisions of
this paragraph (c) shall not apply to the vesting of performance stock. The vesting of performance stock awards shall be governed by the applicable award agreements for such awards, without regard to the terms of this Agreement. 
 (d) Awards Granted after Change in Control. For any stock option, stock appreciation right, restricted stock, restricted stock unit, or
other stock based award granted after a transaction that constitutes a Change in Control, such transaction will not be treated as a Change in Control for purposes of paragraph (c) above. 
 (e) Legal Fees. The Corporation shall pay to you all legal fees and expenses incurred by you as a result of such termination (including
all such fees and expenses, if any, incurred in contesting or disputing any such termination or in seeking to obtain or enforce any right or benefit provided by this Agreement or in connection with any tax audit or proceeding to the extent
attributable to the application of section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), to any payment or benefit provided hereunder); provided, however, that payment with respect to any legal action other than in
connection with a tax dispute shall be made only if you are successful in the action. 
  

 9 

 (f) Group Health Coverage. You and your eligible family members shall be entitled to
group health coverage to the extent that such coverage is required to be provided in accordance with the provisions of section 4980B of the Code and section 601 of the Employee Retirement Income Security Act (sometimes referred to as “COBRA
coverage”); provided that your eligibility for such coverage shall be determined as though such coverage was required for the greater of thirty-six (36) months after your Date of Termination or the period otherwise required under the
applicable COBRA coverage provisions. For the thirty-six (36) month period during which you are entitled to such medical benefit coverage under this paragraph (f), the premiums for such coverage shall be paid by the Corporation (either by
direct payment of such premiums, or by reimbursing you for the premiums, at the election of the Corporation), and the period of such coverage provided under this paragraph (f) shall be counted toward the Corporation’s obligation to provide
COBRA coverage. The period of medical coverage required under this paragraph (f) shall be reduced if such reduction is necessary to avoid the imposition of penalties under section 409A of the Code.2 
 (g) Welfare Benefits. For the
thirty-six (36) month period after your Date of Termination, the Corporation shall arrange to provide you with life, disability, and accident insurance benefits substantially similar to those which you were receiving immediately prior to the
Notice of Termination. Benefits otherwise receivable by you pursuant to this paragraph (g) shall be reduced to the extent comparable benefits are actually received by you from another employer or otherwise during the thirty-six (36) month
period following your termination, and any such benefits actually received by you shall be reported to the Corporation. The references to 36 months in this paragraph (g) shall be reduced if such reduction is necessary to avoid the imposition of
penalties under section 409A of the Code.3 
 (h) Retiree Coverage. You and your eligible family members shall be eligible for (I) retiree medical benefits under the applicable
BNSF plan, and (II) retiree life insurance coverage under the applicable BNSF plan to the extent that if, on your Date of Termination, you had terminated employment with the Corporation and the affiliates and you would have become eligible for
severance benefits under the Burlington Northern and Santa Fe Railway Company Severance Plan (the “Severance Plan”) if you had not been covered by this Agreement, and by reason of the terms of the Severance Plan, you would otherwise have
qualified for medical or life coverage or benefits, respectively, either upon your Date of Termination or at such later date as provided in the Severance Plan. Notwithstanding the foregoing, nothing in this paragraph (h) shall be construed to
require your being provided with the benefits described in clause (I) or clause (II) above to the extent that: 
 (A) you
would not have been covered by the Severance Plan as of your Date of Termination, or 
  

	2	The 36 month coverage period will be reduced to 24 months for agreements entered into after September 21, 2006. 

  

	3	The 36 month coverage period will be reduced to 24 months for agreements entered into after September 21, 2006. 

  

 10 

 (B) you would not have been eligible for such benefits under the Severance Plan as of
your Date of Termination, 
 with such eligibility for coverage or benefits under paragraph (A) or (B) above determined as though
you were not covered by this Agreement, and regardless of whether such reduction or elimination of eligibility for coverage or benefits occurs by reason of amendment or termination of the Severance Plan or for any other reason. For purposes of this
paragraph (h), the term “Severance Plan” shall include any successor to the Severance Plan to the extent that it provides for post-termination health or life insurance benefits, except that you will be eligible for any such benefits under
the successor plan only if you would have been eligible for such benefits as of your Date of Termination if you were not covered by this Agreement. 
 (i) Outplacement and Financial Assistance. For a period of twelve (12) months following such termination, the Corporation shall pay the expenses of such outplacement services as you may require, and/or for
financial planning services with such services to be performed by an agency approved by the Corporation; provided, however, that reimbursement for all fees under this paragraph (i) shall not exceed $20,000. 
 (iv) Form of and Restrictions on Payment. The payments provided for in paragraph 4(iii)(b) (the “Severance Payments”) shall be paid in
accordance with the following: 
 (a) Subject to paragraph (c) below, the Severance Payments shall be made not later than
the fifth day following your Date of Termination. However, if the amounts of such payments cannot be finally determined on or before such day, the Corporation shall pay to you on such day an estimate, as determined in good faith by the Corporation,
of the minimum amount of such payments and shall pay the remainder of such payments (together with interest at the rate provided in section 1274(b)(2)(B) of the Code) as soon as the amount thereof can be determined but in no event later than the
thirtieth day after the Date of Termination. In the event that the amount of the estimated payments exceeds the amount subsequently determined to have been due, such excess shall constitute a loan by the Corporation to you, payable on the fifth day
after demand by the Corporation (together with interest at the rate provided in section 1274(b)(2)(B) of the Code). 
 (b)
Notwithstanding the foregoing provisions of this paragraph (iv) or the provisions of paragraph 4(iii)(b), but subject to paragraph (c) below, if you are treated as terminating your employment for Good Reason, by reason of relocation under
circumstances described in paragraph 3(iii)(c) and not for any other reason under paragraph 3(iii), and you retain or are offered a position in another location that, in status and responsibilities, is equal to or better than the position you held
at the time of the Change in Control, and you are entitled to benefits under paragraph 4(iii)(b), those benefits shall not be paid in a lump sum, but instead 1/12 of the lump sum benefit amount otherwise payable shall be distributed to you during
each of the 12 calendar months next following the month which includes your Date of Termination. However, this paragraph (b) shall be disregarded, and payments described in paragraph 4(iii)(b) will be paid in a 

  

 11 

 
lump sum in accordance with paragraph (a) above, to the extent that amounts payable under such paragraphs are treated as providing for the deferral of
compensation under Code section 409A and payment in installments would result in the imposition of penalties under Code section 409A. 
 (c) If you are treated as terminating your employment for Good Reason, then, for the 12-month period immediately following your Date of Termination, you agree that: 
 (I) You will not, without the express written consent of the Chief Executive Officer of the Company, be in Competition. For purposes of
this paragraph (I), you shall be considered to be in “Competition” during any period in which you are employed by, perform any material services for, or own any interest in (except for an interest of not more than 1% in any publicly traded
business) any “Competitor.” The term “Competitor” shall mean: 
 (A) any Class I railroad; 
 (B) any company or other enterprise that offers shipping services to the public (including, without limitation, trucking services, rail
services, air-freight services, and water-going freight services); 
 (C) any shipper for or customer of BNSF; and 

(D) any affiliate or agent of any entity described in paragraphs (A), (B), or (C) above, if the provision of services to or
ownership of the interest in such affiliate or agent could conflict with or impair the interests of the Corporation, in the reasonable judgment of its chief legal officer. 
 (II) You will not, without the express written consent of the Chief Executive Officer of the Company, solicit or attempt to solicit any
party who is then or, during the 12-month period prior to such solicitation or attempt by you was (or was solicited to become), a customer or supplier of the Corporation or affiliate, provided that the restriction in this paragraph (II) shall not
apply to any activity on behalf of a business that is not a Competitor. 
 (III) You will not, without the express written
consent of the Chief Executive Officer of the Company, solicit, entice, persuade or induce any individual who is employed by the Corporation or any affiliate of the Corporation (or was so employed within 90 days prior to your action) to terminate or
refrain from renewing or extending such employment or to become employed by or enter into contractual relations with any other individual or entity other than the Corporation or its affiliates, and you will not approach any such employee for any
such purpose or authorize or knowingly cooperate with the taking of any such actions by any other individual or entity. 
 If, during the
12-month period after your Date of Termination for Good Reason, you violate any of the foregoing provisions of this paragraph (c), all Severance Payments shall cease and shall not recommence thereafter, and the Corporation may, in its discretion,
require you to immediately (or at such other time determined by the 

  

 12 

 
Corporation) repay to the Corporation all (or, in the discretion of the Corporation, less than all) Severance Payments previously paid to you. You agree that
the Corporation, in addition to any other remedies available to it for such breach or threatened breach, shall be entitled to a preliminary injunction, temporary restraining order, or other equivalent relief, restraining you from any actual or
threatened breach of the foregoing provisions of this paragraph (c). 
 (v) Mitigation and Set-Off. Except as provided in paragraph
4(iii)(f), paragraph 4(iii)(g), and paragraph 4(iv)(c), you shall not be required to mitigate the amount of any payment provided for in this Section 4 by seeking other employment or otherwise, nor shall the amount of any payment or benefit
provided for in this Section 4 be reduced by any compensation earned by you as the result of employment by another employer, by retirement benefits, by offset against any amount claimed to be owed by you to the Corporation, or otherwise.

 (vi) Deferred Compensation Restrictions. If the Corporation determines that any provision of this Agreement may result in the application
of penalties under Code section 409A, it may modify the terms of this Agreement to the extent it determines may be necessary to avoid application of such penalties and is consistent with the intent of the parties to this Agreement. 
 (vii) Vesting Of Stock Awards. Notwithstanding the foregoing provisions of this Section 4, the following provisions of this paragraph
(vii) shall apply to awards described in this paragraph (vii) that were granted on or before September 21, 2006:4 
 (a) If the consummation of a Change in Control occurs before your Date of Termination, the restrictions shall lapse (to the extent that they have not previously lapsed) on any stock option award or stock appreciation
right award outstanding on such consummation, such stock options and stock appreciation rights shall become fully exercisable upon such consummation, and such exercisability shall continue until it would otherwise terminate in accordance with the
terms of the applicable award agreement. 
 (b) If the consummation of a Change in Control occurs before your Date of
Termination, the restricted period (or other vesting or similar period) with respect to any restricted stock, restricted stock units and, except for stock options and stock appreciation rights, all other stock based awards granted to you shall lapse
on such consummation, and such shares shall be distributed to you at the time specified in paragraph 4(iv). However, any change in the time or form of distribution otherwise provided under this paragraph (b) shall be disregarded to the extent
that such change would otherwise result in the application of penalties under Code section 409A. 
 (c) If your Date of
Termination occurs prior to the consummation of a Change in Control, the vesting in the awards described in this paragraph (vii) shall be determined in accordance with paragraphs 4(i), (ii), (iii), and (iv), to the extent applicable, without
regard to this paragraph (vii). 
  

	4	This paragraph (vii) should be deleted for persons hired after September 21, 2006. It has been included as the final paragraph under section 4, rather than
including it in paragraph 5, so that renumbering will not be required if the paragraph is deleted. 

  

 13 

 5. PARACHUTE TAX. 
 (i) In the event it shall be determined that any payment, benefit or distribution (or combination thereof) by the Corporation, any affiliate or associated company, trusts established by the Corporation, any affiliate
or associated company, for the benefit of its employees, to or for your benefit (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement, or otherwise) (a “Payment”) would be subject to the excise
tax imposed by section 4999 of the Code, or any interest or penalties are incurred by you with respect to such excise tax (such excise tax, together with any such interest and penalties, hereinafter collectively referred to as the “Excise
Tax”), you shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by you of all taxes (including any interest or penalties imposed with respect to such taxes), including, without
limitation, any income taxes (and any interest and penalties imposed with respect thereto) and the Excise Tax imposed upon the Gross-Up Payment, you retain an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. For
purposes of this Section 5, “Payments” will include any payments, benefits or distributions to other persons with respect to awards granted to you and transferred by you to such other person in accordance with the terms of the awards,
to the extent that such awards result in taxable income being attributable to you. 
 (ii) Subject to the provisions of paragraph 5(iii), all
determinations required to be made under this Section 5, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by
such nationally recognized certified public accounting firm as may be designated by the Corporation (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Corporation and you within fifteen
(15) business days of the receipt of notice from you that there has been a Payment, or such earlier time as is requested by the Corporation. All fees and expenses of the Accounting Firm shall be borne solely by the Corporation. Any Gross-Up
Payment, as determined pursuant to this Section 5, shall be paid by the Corporation to you within five (5) days after the receipt of the Accounting Firm’s determination. If the Accounting Firm determines that no Excise Tax is payable
by you, it shall so indicate to you in writing. Any determination by the Accounting Firm shall be binding upon the Corporation and you. As a result of the uncertainty in the application of section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the Corporation should have been made (“Underpayment”), consistent with the calculations required to be made hereunder.
In the event that the Corporation exhausts its remedies pursuant to paragraph 5(iii) and you thereafter are required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any
such Underpayment shall be promptly paid by the Corporation to you or for your benefit. 
 (iii) You shall notify the Corporation in writing
of any claim by the Internal Revenue Service that, if successful, would require the payment by the Corporation of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than ten (10) business days after you
are informed in writing of such claim and shall apprise the Corporation of the nature of such claim and the date on which such claim is requested to be paid. You shall not pay such claim prior to the expiration of the thirty (30) day period
following the date on which it gives such notice to the Corporation (or such shorter period ending on the date that any 

  

 14 

 
payment of taxes with respect to such claim is due). If the Corporation notifies you in writing prior to the expiration of such period that it desires to
contest such claim, you shall: 
  

	 	(a)	give the Corporation any information requested by the Corporation relating to such claim; 

  

	 	(b)	take such action in connection with contesting such claim as the Corporation shall reasonably request in writing from time to time, including, without limitation, accepting legal
representation with respect to such claim by an attorney reasonably selected by the Corporation; 

  

	 	(c)	cooperate with the Corporation in good faith in order to effectively contest such claim; and 

  

	 	(d)	permit the Corporation to participate in any proceedings relating to such claim; 

 provided, however, that the Corporation shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold you harmless, on an after-tax
basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this paragraph 5(iii),
the Corporation shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such
claim and may, at its sole option, either direct you to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and you agree to prosecute such contest to a determination before any administrative tribunal, in a
court of initial jurisdiction and in one or more appellate courts, as the Corporation shall determine; provided, however, that if the Corporation directs you to pay such claim and sue for a refund, the Corporation shall advance the
amount of such payment to you, on an interest-free basis, and shall indemnify and hold you harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance
or with respect to any imputed income with respect to such advance; and provided, further, that if you are required to extend the statute of limitations to enable the Corporation to contest such claim, you may limit this extension
solely to such contested amount. The Corporation’s control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and you shall be entitled to settle or contest, as the case may be, any
other issue raised by the Internal Revenue Service or any other taxing authority. 
 (iv) If, after the receipt by you of an amount advanced
by the Corporation pursuant to paragraph 5(iii), you become entitled to receive any refund with respect to such claim, you shall (subject to the Corporation’s complying with the requirements of paragraph 5(iii)) promptly pay to the Corporation
the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by you of an amount advanced by the Corporation pursuant to paragraph 5(iii), a determination is made that you
shall not be entitled to any refund with respect to such claim and the Corporation does not notify you in writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days after such determination, then such
advance shall be forgiven and shall not be required to be repaid and the 

  

 15 

 
amount of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid. 
 (v) You shall be eligible for benefits under this Section 5, and shall be subject to the terms of this Section 5, regardless of whether the
Change in Control occurs or the payments are made during the Agreement Term, regardless of whether you are employed by the Corporation on or after the occurrence of a Change in Control and, if your Date of Termination shall have occurred, regardless
of the reason for such termination. 
 6. RIGHTS OF EMPLOYMENT. Except as otherwise expressly provided in this Agreement: 
 (i) Nothing in this Agreement shall be construed as limiting your right to resign prior to the beginning or after the end of the Agreement Term.

 (ii) Nothing in this Agreement shall be construed as limiting the Corporation’s right to discharge you at any time prior to the
beginning or after the end of the Agreement Term, or to renegotiate the terms of your employment for any period prior to the beginning or after the end of the Agreement Term. 
 (iii) Except as otherwise provided in paragraph 3(iv) (relating to discharge absent Cause or Disability), or as otherwise expressly provided in this
Agreement, this Agreement shall be inapplicable to the determination of your rights to payments and benefits, if your Date of Termination occurs prior to the occurrence of a Change in Control, or if your Date of Termination occurs after the end of
the Agreement Term and you are not subject to a disability after a Change in Control. 
 7. SUCCESSORS; BINDING AGREEMENT. 
 (i) The Corporation will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all
of the business and/or assets of the Corporation to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Corporation would be required to perform it if no such succession had taken place. Failure of
the Corporation to obtain such assumption and agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle you to compensation from the Corporation in the same amount and on the same terms to
which you would be entitled hereunder if you terminate your employment for Good Reason following a Change in Control, except that for purposes of implementing the foregoing, the date on which any such succession becomes effective shall be deemed the
Date of Termination. As used in this Agreement, “Corporation” shall mean the Corporation as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation
of law, or otherwise. 
 (ii) This Agreement shall inure to the benefit of and be enforceable by you and your personal or legal
representatives, executors, administrators, successors, heirs, distributees, devises and legatees. If you should die while any amount would still be payable to you hereunder had you continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to your devisee, legatee or other designee or, if there is no such designee, to your estate. 
  

 16 

 8. NOTICE. For the purpose of this Agreement, notices and all other communications provided for in this
Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States certified or registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth on the first
page of this Agreement, provided that all notices to the Corporation shall be directed to the attention of the Board with a copy to the Secretary of the Corporation, or to such other address as either party may have furnished to the other in writing
in accordance herewith, except that notice of change of address shall be effective only upon receipt. 
 9. MISCELLANEOUS. No provision of
this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by you and such officer as may be specifically designated by the Board. No waiver by either party hereto at any
time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement. The validity,
interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Texas without regard to its conflicts of law principles. All references to sections of the Exchange Act or the Code shall be deemed also to
refer to any successor provisions to such sections. Any payments provided for hereunder shall be paid net of any applicable withholding required under federal, state or local law. Except as otherwise specifically provided in this Agreement, to the
extent that the provision of payments or benefits to you results in your being liable for taxes, you shall not be entitled to any make-whole, gross-up, or other indemnification with respect to such taxes. The obligations of the parties to this
Agreement shall survive the expiration of the Agreement Term. Capitalized terms used in this Agreement shall be defined as set forth in this Agreement. 
 10. VALIDITY. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and
effect. 
 11. COUNTERPARTS. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all
of which together will constitute one and the same instrument. 
 12. ARBITRATION. Any dispute or controversy arising under or in connection
with this Agreement shall be settled exclusively by arbitration, conducted before a panel of three arbitrators in Ft. Worth, Texas, in accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on the
arbitrator’s award in any court having jurisdiction; provided, however, that you shall be entitled to seek specific performance of your right to be paid until the Date of Termination during the pendency of any dispute or controversy arising
under or in connection with this Agreement. 
 13. AMENDMENT. This Agreement may be amended or canceled only by mutual agreement of the
parties in writing without the consent of any other person. So long as you shall live, no person, other than the parties hereto, shall have any rights under or interest in this Agreement or the subject matter hereof. 
  

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 14. GENERAL RELEASE AND COVENANT NOT TO SUE. You agree that as a condition of receiving benefits under
this Agreement in connection with your termination of employment, you shall execute the attached General Release and Covenant Not to Sue within thirty (30) days following your Date of Termination. Notwithstanding any other provision herein,
until the executed General Release and Covenant Not to Sue has been received by the Corporation and a seven (7) day revocation period from the date of execution has expired, no benefits or payments in connection with your termination of
employment under paragraph 4(iii) shall be provided. The restrictions of the preceding sentence shall apply, without limitation, to stock awards that are vested by reason of paragraph 4(iii), and shall also apply to any stock-based or other awards
that otherwise would vest (without regard to this Agreement) under the terms of the applicable plan or award agreements by reason of your termination of employment following a change in control, as defined in this Agreement or any applicable plan or
award agreement. 
 15. ENTIRE AGREEMENT. This Agreement sets forth the entire agreement of the parties hereto in respect of the subject
matter contained herein and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of any party hereto; and any prior
agreement of the parties hereto in respect of the subject matter contained herein is hereby terminated and canceled. This Agreement constitutes an amendment, restatement, and continuation of your Change in Control Agreement.5 The terms of this Agreement, as set forth herein, shall apply with respect to any Change in Control that occurs on or after January 1, 2007, and the terms of your Agreement in effect prior to this amendment and restatement
shall be deemed to be completely replaced by the terms set forth herein. For the avoidance of doubt, it is recited here that this Agreement shall not apply to any award (regardless of when granted) if the document(s) applicable to such award provide
that the terms of the award will be determined based solely on the provisions of such award document(s), or determined without regard to the terms of any other change in control arrangement. 

	5	The sentence “This Agreement constitutes an amendment, restatement, and continuation of your Change in Control Agreement.” should be deleted for persons
entering into the agreement after September 21, 2006. 

  

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 If this letter sets forth our agreement on the subject matter hereof, kindly sign and return to the
Corporation the enclosed copy of this letter, which will then constitute our agreement on this subject. 
  

			
	 Sincerely,
  
 Burlington Northern
 Santa Fe Corporation

		
	 By:   
	 	  
	 Matthew K. Rose
 Chairman, President and
Chief Executive Officer

 Agreed to this _________ day of ________________, 20__. 
 _____________________________________ 
 Person’s Name 
  

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 Attachment 
 GENERAL RELEASE AND COVENANT NOT TO SUE 
 For and in consideration of the terms of the Agreement
between Burlington Northern Santa Fe Corporation and its affiliates and _____________dated _____________, _____, (“Agreement”), the undersigned (i) does hereby agree to comply with the restrictions applicable to me under the change in
control agreement dated ________ between Burlington Northern Santa Fe Corporation and me (as well as any other restrictions applicable to me) after my termination of employment, and (ii) does hereby fully waive, release, acquit, and forever
discharge Burlington Northern Santa Fe Corporation and any and all of its affiliates, divisions, subsidiaries, benefit plans, officers, directors, stockholders, agents, advisors, fiduciaries, administrators, and employees, or any of their successors
or assigns, from any and all claims, demands or causes of action, including but not limited to any claims for merger protection benefits pursuant to the Interstate Commerce Commission decision in the Northern Lines, BNSF, or
Frisco merger proceedings, claims arising under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000(e), et seq., the Civil Rights Act of 1866, 42 U.S.C. § 1981, the Age Discrimination in Employment Act of
1967, as amended, 29 U.S.C. § 621, et seq., the Federal Employers’ Liability Act, and any other federal, state or local law, order, regulation, common law, contract or collective bargaining agreement, which relates to my employment
or cessation of employment by Burlington Northern Santa Fe Corporation and its affiliates; provided however that the undersigned does not waive enforcement of rights to any benefits provided or extended pursuant to the terms of the Agreement or to
assert any counterclaims in response to any litigation initiated by BNSF Corporation against me. The undersigned specifically waives all claims, whether past or present, known or unknown, and whether or not in litigation, which I, or acting on my
behalf, my heirs, successors, executors, administrators or assigns, may have based on any action, omission or event occurring prior to this date. Included in this Release are any and all claims for future damages allegedly arising from the alleged
continuation of the effects of any past action, omission or event. 
 I acknowledge that (i) I have read the Agreement including this
General Release and Covenant Not to Sue (“Release”); (ii) I am advised by the Corporation to consult, and have had the opportunity to consult, an attorney about the meaning and effect of this Agreement and Release; (iii) I have
had sufficient time, and at least 45 days, to consider and fully understand the meaning and effect of signing this Agreement and Release; (iv) I have 7 days after signing to change my mind and revoke my acceptance by so notifying
__________________________; (v) this Agreement and Release will not become effective and enforceable until that 7-day period has passed; (vi) I am not otherwise entitled to the benefits of the Agreement; (vii) I am not relying on any
written or oral statement or promise other than as set out in the Agreement and Release; and (viii) this Agreement and Release shall be governed by and construed in accordance with the laws of the State of Texas. 
  

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 This General Release and Covenant Not to Sue is executed knowingly and voluntarily, for adequate
consideration, and is irrevocable and binding upon the undersigned. 
 ACCEPTED AND AGREED TO this
             day of ____, 20___: 
  

									
				
	Person’s Name:	 		 	 Signature:
	 	  
		 		 		 		 	

  

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