Document:

EX-10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of February 10, 2005, by and
between Corinthian Colleges, Inc., a Delaware corporation (the “Company”), and Kenneth S. Ord
(“Employee”).

WITNESSETH:

WHEREAS, the Company and Employee desire to enter into this Agreement to assure the Company of the
continuing and exclusive service of Employee and to set forth the terms and conditions of
Employee’s employment with the Company.

AGREEMENT:

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the parties
agree as follows:

	 	1.	 	TERM. The Company agrees to employ Employee and Employee hereby accepts such employment, in
accordance with the terms of this Agreement, commencing on the date of this Agreement (the
“Effective Date”) and continuing for a period of two (2) years hereafter (the “Term”), subject
to earlier termination under Section 5 or extension of such term as described in the next
sentence. Unless either party has given advanced written notice to the other party that the
Term shall not be extended (or further extended, as the case may be), then (1) upon the first
anniversary of the Effective Date the Term shall automatically be extended by an additional
year (such that the Term shall be scheduled to terminate on the third anniversary of the
Effective Date), and (2) upon the second and each successive anniversary of the Effective Date
the Term shall automatically be extended by an additional year; provided, however,
that in no event shall the Term exceed a period of five (5) years. Provision of notice that
this Agreement shall not be extended or further extended, as the case may be, shall not
constitute breach of this Agreement or entitle the Employee to any benefits described in
Section 5.

	 	2.	 	SERVICES AND EXCLUSIVITY OF SERVICES. During the Term of this Agreement, Employee shall
devote Employee’s full business time, energy and ability exclusively to the business, affairs
and interests of the Company and matters related thereto, shall use Employee’s best efforts
and abilities to promote the Company’s interests and shall perform the services contemplated
by this Agreement in accordance with policies established by and under the direction of the
Board of Directors of the Company (the “Board”) and the Chief Executive Officer of the Company
(the “Senior Officer”).

Employee shall not, directly or indirectly, during the term of this Agreement render services to
any other person or firm for compensation or engage in any activity competitive with or adverse
to the Company’s business. Employee may serve as a director or in any other capacity of any
business enterprise or any nonprofit or governmental entity or trade association, provided in
each case that such service is approved by the Board or the Senior Officer. Notwithstanding the
foregoing, Employee may make and manage personal business investments of Employee’s choice and
serve in any capacity with any civic, educational or charitable organization (other than as a
director of such organization, approval for which may be sought under the immediately preceding
sentence of this Section 2) without seeking the approval of the Senior Officer, provided that
such activities and services do not interfere or conflict with the performance of the duties
hereunder or create any conflict of interest with such duties.

	 	3.	 	DUTIES AND RESPONSIBILITIES. Employee shall serve as Executive Vice President and Chief
Financial Officer of the Company for the Term of this Agreement. In the performance of
Employee’s duties, Employee shall report directly to the Senior Officer of the Company and
shall be subject to the direction of the Senior Officer and to such limits on Employee’s
authority as the Senior Officer may from time to time impose. During the term of this
Agreement, Employee shall be based at the Company’s principal executive offices in Orange
County, California. Employee agrees to observe and comply with the rules and regulations of
the Company and agrees to carry out and perform orders, directions and policies of the Company
and its Board as they may be, from time to time, stated either orally or in writing. The
Company agrees that the duties which may be assigned to Employee shall be usual and customary
duties of the office(s) or position(s) to which Employee may from time to time be appointed or
elected and shall not be inconsistent with the provisions of the charter documents of the
Company or applicable law. Employee shall have such corporate power and authority as shall
reasonably be required to enable Employee to perform the duties required in any office that
may be held.

4. COMPENSATION.

(a) Base Compensation. During the term of this Agreement, the Company agrees to pay Employee a
base salary at the annual rate of not less than $350,000, payable in accordance with the
Company’s practices in effect from time to time (the “Base Salary”).

(b) Additional Benefits. Employee shall also be entitled to all rights and benefits for which
Employee is otherwise eligible under any bonus plan, incentive agreement (including stock
options and/or other awards granted pursuant to the Company’s 2003 Performance Award Plan),
participation or extra compensation plan, pension plan, profit-sharing plan, life, medical,
dental, disability, or insurance plan (including, except as otherwise prohibited therein, the
Company’s Employee Stock Purchase Plan) or policy or other plan or benefit that the Company may
provide for Employee or (provided Employee is eligible to participate therein) for Peer
Employees (defined as all employees who have the title of Vice President of the Company or
above, other than David Moore) or for employees of the Company generally, as from time to time
in effect, during the term of this Agreement (collectively, all of the above shall be referred
to as the “Additional Benefits”).

(c) Periodic Review. The Compensation Committee of the Board shall review Employee’s Base
Salary and Additional Benefits then being paid to Employee not less frequently than every twelve
months. Following such review, the Company may in its discretion increase (but shall not be
required to increase) the Base Salary or any other benefits, but may not decrease the Base
Salary during the time Employee serves as Executive Vice President and Chief Financial Officer;
provided, however, that if the Company undertakes any generalized salary reductions of employees
of the Company, the Company may reduce Employee’s Base Salary by a percentage equal to the
percentage base salary reductions effected for all other Peer Employees of the Company.

(d) Perquisites. Employee shall be entitled to not less than three weeks paid vacation each
twelve-month period (or such larger amount of paid vacation as is generally granted to employees
of the Company based on time of service with the Company), which shall accrue on a pro rata
basis from the Effective Date of this Agreement. Vacation time will continue to accrue so long
as Employee’s total accrued vacation does not exceed two times (2x) the then-current rate of
annual vacation accrual of the Employee (the “Vacation Accrual Cap”). Should Employee’s accrued
vacation time reach the Vacation Accrual Cap, Employee will cease to accrue additional vacation
until Employee’s accrued vacation time falls below the Vacation Accrual Cap. Except with
respect to the rate of vacation accrual set forth above, all vacation time shall be subject to
the plans, policies, programs and practices as in effect generally with respect to other Peer
Employees of the Company.

	 	5.	 	TERMINATION. This Agreement and all obligations hereunder (except the obligations contained
in Sections 8, 9, 10 and 11 (Confidential Information, Non-Competition, Non Solicitation of
Employees and Indemnity) which shall survive any termination hereunder) shall terminate upon
the earliest to occur of any of the following:

(a) Voluntary Termination. Subject to Section 5(e) below, the voluntary termination by Employee
or retirement from the Company in accordance with the normal retirement policies of the Company.

(b) Death or Disability of Employee. Employee’s employment shall be terminated upon the death or
Disability (as defined below) of Employee. In such instance, except as set forth below, all
obligations hereunder to Employee (or Employee’s heirs or legal representatives) shall cease,
other than for payment of the sum of (A) Employee’s Base Salary through the date of termination
to the extent not theretofore paid, (B) any bonus or other cash compensation agreement for the
pro rata amount earned through the date of termination, (C) compensation previously deferred by
Employee (together with any accrued interest or earnings thereon), and (D) any accrued vacation
pay, in each case to the extent not theretofore paid (the sum of the amounts described in
clauses (A), (B), (C) and (D) shall be hereinafter referred to as the “Accrued Obligations”),
which shall be paid to Employee or Employee’s estate or beneficiary, as applicable, in a lump
sum in cash within 30 days after the date of termination or any earlier time required by
applicable law. For the purposes of this Agreement, Disability shall mean the absence of
Employee performing Employee’s duties with the Company on a full-time basis for a period of six
months, as a result of incapacity due to mental or physical illness which is determined to be
total and permanent by a physician selected by the Company or its insurers and acceptable to
Employee or Employee’s legal representative (such agreement as to acceptability not to be
withheld unreasonably). The termination of this Agreement due to the death or Disability of
Employee shall have no effect on the rights and obligations of Employee (or his personal
representative or beneficiary, as the case may be) with respect to stock options or other rights
granted under the Company’s 2003 Performance Award Plan, as amended, the Company’s 2004 New-Hire
Award Plan, as amended, the Company’s Employee Stock Purchase Plan, or any subsequent employee
benefit or equity compensation plan adopted by the Company, all of which rights and obligations
shall be governed solely and exclusively by the applicable terms and conditions of such plans
and the agreements issued thereunder.

(c) Cause. The Company may terminate Employee’s employment and all of Employee’s rights to
receive Base Salary and any Additional Benefits hereunder for Cause. For purposes of this
Agreement, the term “Cause” shall be defined as any of the following; provided, however, that
the Company must determine the presence of such Cause in good faith:

(i) Willful misconduct by Employee which materially and demonstrably injures the Company,
including (1) Employee’s material breach of any material duties and responsibilities under
this Agreement (other than as a result of incapacity due to Employee’s Disability), (2)
Employee’s commission of a material act of fraud upon the Company or (3) Employee’s
immoderate use of alcoholic beverages or narcotics or other substance abuse;

(ii) Employee willfully engaging in conduct specifically prohibited by the Company’s written
policies, including, without limitation, unlawful harassment of any other Company employee.

(iii) Employee’s conviction by, or entry of a plea of guilty or nolo contendere in, a court
of competent and final jurisdiction for a felony or any crime which materially adversely
affects the Company and/or its reputation in the community and which involves moral
turpitude or is punishable by imprisonment in the jurisdiction involved.

For purposes of this Section 5, no act or failure to act on the part of Employee shall be
considered “willful” unless done, or omitted to be done, by Employee in bad faith and
without reasonable belief by Employee that such action or omission was in the best interest
of the Company. Notwithstanding the foregoing, Employee shall not be terminated for Cause
pursuant to clauses (i), (ii) and (iii) of this Section 5(c) unless and until Employee has
received notice of a proposed termination for Cause and Employee has had an opportunity to
be heard before at least a majority of members of the Board.

(d) Without Cause. Notwithstanding any other provision of this Section 5, the Company shall
have the right to terminate Employee’s employment with the Company without Cause at any time,
but in the event of such termination without Cause, Employee shall be entitled to receive a lump
sum payment equal to the following: (A) one times (1x) the value of Employee’s Base Salary
provided under this Agreement for the most recent twelve (12) month period prior to the date of
such termination, plus (B) one times (1x) the average annual bonus paid or payable under any
bonus plan or agreement between the Company and the Employee for the most recent two (2) full
fiscal years (determined by annualizing the bonus paid or payable with respect to any partial
fiscal year) (the “Lump Sum Payment”). Such Lump Sum Payment to Employee shall be paid to
Employee within 30 days of the date of such termination.

(e) Good Reason. Employee’s employment may be terminated at any time by Employee for Good
Reason. Regardless of whether a resignation occurs prior to, coincident with or after a “Change
in Control,” Good Reason” shall mean any one or more of the following:

(i) The material failure by the Company to fulfil its obligations under this Agreement, to
the extent not remedied in a reasonable period of time after the receipt of written notice
by the Employee specifying the material failure by the Company. Any reduction or attempted
reduction by the Company (to the extent such reduction is not made equally to all employees
of a substantially equal level or position) in Employee’s Base Salary as in effect on the
date hereof or as the same may be increased from time-to-time or the taking of any action by
the Company that would substantially diminish the aggregate value of Employee’s
compensation, including any bonus, incentive or other compensation awards, retirement
benefits and other fringe benefits from the levels in effect prior to the date hereof is
deemed material.

(ii) the reassignment of Employee to a position that is not an executive officer level
position or the assignment of duties to Employee that are not consistent with such position.

(iii) The Company’s requiring Employee to be based at any office or location which increases
the distance from Employee’s home to the office or location by more than 30 miles from the
distance in effect at the Effective Date of this Agreement, unless the Company’s corporate
headquarters moves to another location and all Peer Employees (including the Employee) are
required to report to such new location.

If Employee terminates his employment with the Company for Good Reason, then Employee shall
be entitled to receive a Lump Sum Payment equal to that paid to Employee under Section 5(d)
hereof.

	 	6.	 	BUSINESS EXPENSES. During the Term of this Agreement, to the extent that such expenditures
satisfy the criteria under the Internal Revenue Code for deductibility by the Company (whether
or not fully deductible by the Company) for federal income tax purposes as ordinary and
necessary business expenses, the Company shall reimburse Employee promptly for reasonable
business expenditures, including travel, entertainment, parking, business meetings, and
professional dues, made and substantiated in accordance with the reasonable policies,
practices and procedures established from time to time by the Company generally with respect
to other Peer Employees and incurred in the pursuit and furtherance of the Company’s business
and good will.

	 	7.	 	CHANGE IN CONTROL. If, (A) “In Anticipation Of,” as defined below, or within twelve (12)
months after a “Change in Control” of the Company (or any successor), as defined below, the
Company involuntarily terminates Employee’s employment without Cause, or (B) within twelve
(12) month after receiving notice (which notice may be oral) of a Change in Control, the
Employee voluntarily elects to retire from full-time service to the Company, then Employee
shall receive a lump sum payment equal to two times (2x) the amount that would be required to
be paid to Employee as a Lump Sum Payment under Section 5(d) upon Employee’s termination other
than for Cause (hereinafter the “Change in Control Payment”). If Employee voluntarily resigns
following a Change in Control, the Employee may continue to render, on a non-exclusive basis,
such consulting and advisory services to the Company as Employee may in his sole discretion
accept; provided, however, that any such consulting and advisory services and the
conditions under which they shall be performed shall be fully in keeping with the position or
positions Employee held under this Agreement.

In the event that any economic benefit, payment or distribution by the Company to or for the
benefit of Employee, whether paid, payable, distributed or distributable, pursuant to this
Section 7 or otherwise In Anticipation Of or following a Change in Control, including, if
applicable, the vesting of Employee’s stock options (hereinafter, the “Total Payments”), would
result in all or a portion of such Total Payments being subject to excise tax under Section 4999
of the Internal Revenue Code of 1986, as amended (the “Code”), or any interest or penalties with
respect to such excise tax (such excise tax and any applicable interest and penalties,
collectively referred to in this Agreement as the “Excise Tax”), then the Employee’s Total
Payments (including the Change in Control Payment) shall be either (A) the full payment or (B)
such lesser amount that would result in no portion of the Total Payment being subject to Excise
Tax, whichever of the foregoing amounts, taking into account the applicable Federal, state, and
local employment taxes, income taxes, and the Excise Tax, results in the receipt by Employee, on
an after-tax basis, of the greatest amount of Total Payments notwithstanding that all or some
portion of the Total Payments may be taxable under Section 4999 of the Code. All determinations
required to be made under this Section 7(a) shall be made by the Company’s regular outside
independent public accounting firm immediately prior to the event triggering the payments that
are subject to the Excise Tax, which firm must be reasonably acceptable to Employee (the
“Accounting Firm”). The Company shall cause the Accounting Firm to provide detailed supporting
calculations of its determinations to the Company and Employee. Notice must be given to the
Accounting Firm within twenty (20) business days after an event entitling Employee to a Change
in Control Payment under this Agreement. All fees and expenses of the Accounting Firm shall be
borne solely by the Company. The Accounting Firm’s determinations must be made with substantial
authority (within the meaning of Section 6662 of the Code). For the purposes of all
calculations under Sections 4999 and 280G of the Code and the application of this Section 7,
Company and Employee hereby elect and agree to make all determination as to present value using
120 percent of the applicable Federal rate (determined under Section 1274(d) of the Code)
compounded monthly, as in effect on the date such calculation is made. The Company agrees to
reimburse Employee (on an after-tax basis) for his reasonable legal and other professional
expenses of pursuing any reasonable contest, claim or cause of action (including any claim of
tax refund) on his own behalf that may arise (notwithstanding the application of the foregoing
provisions of this Section 7) as a result of (i) the Internal Revenue Service seeking to impose
an Excise Tax on Employee or (ii) the Company (or any successor) withholding or seeking to
withhold any portion of the Change in Control Payment or any Excise Tax from any payment or
benefit to Employee without Employee’s consent. Unless Employee shall have given prior written
notice to the Company to effectuate a reduction in the Total Payments in a manner other than as
set forth below, if such a reduction is required, the Company shall reduce or eliminate the
Total Payments by first reducing or eliminating the Change in Control Payment, then by reducing
or eliminating any accelerated vesting of stock options, then by reducing or eliminating any
other remaining Total Payments.

Definition of “Change in Control”: For purposes of this Section 7, a “Change in Control” means,
and shall be deemed to have taken place, if (1) any person or entity or group of affiliated
persons or entities, including a group which is deemed a “person” by Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), after the date hereof 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 40% or more of the combined voting power
of the Company’s then outstanding securities; (2) during any period of two consecutive years,
individuals who at the beginning of such period constitute the Board cease for any reason to
constitute at least a majority thereof, unless the election, or the nomination for election by
the Company’s stockholders, of each new Board member was approved by a vote of at least
three-fourths (3/4) of the Board members then still in office who were Board members at the
beginning of such period; (3) any reorganization, consolidation, merger or similar transaction
involving the Company in which the Company is not the continuing or surviving corporation or
pursuant to which the Company’s securities would be converted into cash, securities or other
property (other than a merger of the Company in which the holders of the Company’s voting
securities immediately prior to the merger have more than 50% of the combined voting power of
the securities of the corporation or other entity resulting from or surviving such merger,
calculated on a fully-diluted basis in accordance with generally accepted accounting principles
after giving effect to such merger, immediately after such merger); or (4) any sale, lease,
exchange or other transfer (in one transaction or a series of related transactions) of all, or
substantially all, of the assets of the Company.

Definition of “In Anticipation Of”: For purposes of this Section 7, the involuntary termination
by the Company of the Employee’s employment (including by way of the Company giving written
notice to the Employee pursuant to Section 1 that the Company intends to permit the Agreement to
expire without automatic extension after the next succeeding Expiration Date) shall be deemed to
have been “In Anticipation Of” a Change in Control if such termination (A) was at the request of
an unrelated third party who has taken steps reasonably calculated to effect a Change in
Control, or (B) otherwise arose in connection with a Change in Control.

	 	8.	 	CONFIDENTIAL INFORMATION. Employee acknowledges that the nature of Employee’s engagement by
the Company is such that Employee shall have access to information of a confidential and/or
trade secret nature which has great value to the Company and which constitutes a substantial
basis and foundation upon which the business of the Company is based. Such information
includes financial, manufacturing and marketing data, techniques, processes, formulas,
developmental or experimental work, work in process, methods, trade secrets (including,
without limitation, customer lists and lists of customer sources), or any other secret or
confidential information relating to the products, services, customers, sales or business
affairs of the Company (the “Confidential Information”). Employee shall keep all such
Confidential Information in confidence during the term of this Agreement and at any time
thereafter and shall not disclose any of such Confidential Information to any other person,
except to the extent such disclosure is (i) necessary to the performance of this Agreement and
in furtherance of the Company’s best interests, (ii) required by applicable law, (iii)
lawfully obtainable from other sources, or (iv) authorized by the Company. Upon termination
of Employee’s employment with the Company, Employee shall deliver to the Company, or certify
to the Company of the destruction of, all documents, records, notebooks, work papers, and all
similar material containing any of the foregoing information, whether prepared by Employee,
the Company or anyone else.

	 	9.	 	NON-COMPETITION. In order to protect the Confidential Information, Employee agrees that
during the term of Employee’s employment, and for a period of one (1) year thereafter,
Employee shall not, directly or indirectly, whether as an owner, partner, shareholder, agent,
employee, creditor, or otherwise, promote, participate or engage in any activity or other
business competitive with the Company’s business in any jurisdiction in which the Company
operates at the time of such termination if such activity or other business involves any use
by the Employee of any of the Confidential Information.

	 	10.	 	NONINTERFERENCE WITH EMPLOYEES. In order to protect the Confidential Information, Employee
agrees that during the term hereof and for a period of one (1) year thereafter, Employee will
not, directly or indirectly, solicit any employee of the Company to leave such employment.

	 	11.	 	INDEMNITY. In addition to any other separate agreement with the Company concerning
indemnification, to the fullest extent permitted by applicable law and the bylaws of the
Company, as from time to time in effect, the Company shall indemnify Employee and hold
Employee harmless for any acts or decisions made in good faith while performing services for
the Company, and the Company shall use its best efforts to obtain coverage for Employee
(provided the same may be obtained at reasonable cost) under any liability insurance policy or
policies now in force or hereafter obtained during the term of this Agreement that cover other
officers of the Company having comparable or lesser status and responsibility. To the same
extent, the Company will pay and, subject to any legal limitations, advance all expenses,
including reasonable attorneys’ fees and costs of court approved settlements, actually and
necessarily incurred by Employee in connection with the defense of any action, suit or
proceeding and in connection with any appeal thereon, which has been brought against Employee
by reason of Employee’s service as an officer or agent of the Company.

	 	12.	 	REMEDIES. The parties hereto agree that the services to be rendered by Employee pursuant to
this Agreement, and the rights and privileges granted to the Company pursuant to this
Agreement, are of a special, unique, extraordinary and intellectual character, which gives
them a peculiar value, the loss of which cannot be reasonably or adequately compensated in
damages in any action at law, and that a breach by Employee of any of the terms of this
Agreement will cause the Company great and irreparable injury and damage. Employee hereby
expressly agrees that the Company shall be entitled to the remedies of injunction, specific
performance and other equitable relief to prevent a breach of this Agreement by Employee. This
Section 12 shall not be construed as a waiver of any other rights or remedies which the
Company may have for damages or otherwise.

	 	13.	 	SEVERABILITY. If any provision of this Agreement is held to be unenforceable for any reason,
it shall be adjusted rather than voided, if possible, to achieve the intent of the parties to
the extent possible. In any event, all other provisions of this Agreement shall be deemed
valid and enforceable to the extent possible.

	 	14.	 	SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns and any such successor or assignee shall be deemed
substituted for the Company under the terms of this Agreement for all purposes. As used
herein, “successor” and “assignee” shall include any person, firm, corporation or other
business entity which at any time, whether by purchase, merger or otherwise, directly or
indirectly acquires the stock of the Company or to which the Company assigns this Agreement by
operation of law or otherwise. The obligations and duties of Employee hereunder are personal
and otherwise not assignable. Employee’s obligations and representations under this Agreement
will survive the termination of Employee’s employment, regardless of the manner of such
termination.

	 	15.	 	NOTICES. Any notice or other communication provided for in this Agreement shall be in
writing and sent if to the Company to its principal executive office at:

Corinthian Colleges, Inc.

6 Hutton Centre Drive, Suite 400

Santa Ana, California 92627

Phone: (714) 427-3000; Facsimile: (714) 427-3013

Attention: General Counsel

or at such other address as the Company may from time to time in writing designate, and if to
Employee at such address as Employee may from time to time in writing designate (or, if not so
designated, at the last address for such Employee on the employment records of the Company).
Each such notice or other communication shall be effective (i) if given by telecommunication,
when transmitted to the applicable number so specified in (or pursuant to) this Section 15 and a
verification of receipt is received, (ii) if given by mail, three days after such communication
is deposited in the mails with first class postage prepaid, addressed as aforesaid or (iii) if
given by any other means, when actually delivered at such address.

	 	16.	 	ENTIRE AGREEMENT. This Agreement contains the entire agreement of the parties relating to
the subject matter hereof and supersedes any prior agreements, undertakings, commitments and
practices relating to Employee’s employment by the Company.

	 	17.	 	AMENDMENTS. No amendment or modification of the terms of this Agreement shall be valid
unless made in writing and duly executed by both parties.

	 	18.	 	WAIVER. No failure on the part of any party to exercise or delay in exercising any right
hereunder shall be deemed a waiver thereof or of any other right, nor shall any single or
partial exercise preclude any further or other exercise of such right or any other right.

	 	19.	 	GOVERNING LAW. This Agreement, and the legal relations between the parties, shall be
governed by and construed in accordance with the laws of the State of California without
regard to conflicts of law doctrines and any court action arising out of this Agreement shall
be brought in any court of competent jurisdiction within the State of California, County of
Orange.

	 	20.	 	WAIVER OF JURY TRIAL. THE COMPANY AND EMPLOYEE HEREBY AGREE TO WAIVE THEIR RESPECTIVE RIGHTS
TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON, ARISING OUT OF OR RELATED TO THIS
AGREEMENT, THE EMPLOYMENT RELATIONSHIP BETWEEN THEM OR ANY DEALINGS BETWEEN THEM RELATING TO
THE SUBJECT MATTER OF THIS AGREEMENT OR SUCH RELATIONSHIP. The scope of this waiver is
intended to be all-encompassing of any and all disputes that may be filed in any court or that
relate to the subject matter of this Agreement, including without limitation, contract claims,
tort claims, breach of duty claims, wrongful termination claims, claims for discharge in
violation of public policy, claims of discrimination and all other common law and statutory
claims, to the maximum extent permitted by law. The Company and Employee each acknowledge
that this waiver is a material inducement to enter into this Agreement, that each has already
relied on the waiver in entering into this Agreement, and that each will continue to rely on
the waiver in their related future dealings. THE COMPANY AND EMPLOYEE FURTHER WARRANT AND
REPRESENT THAT EACH HAS HAD AN OPPORTUNITY TO REVIEW THIS WAIVER WITH ITS LEGAL COUNSEL, AND
THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING SUCH OPPORTUNITY TO
CONSULT WITH LEGAL COUNSEL. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT MODIFICATIONS TO OR
EXTENSIONS OF THIS AGREEMENT. In the event of arbitration or litigation, this Agreement may be
filed as a written consent to arbitration or to a trial by the court.

	 	21.	 	ARBITRATION. As a material inducement to enter into this Agreement, Employee and the Company
each hereby agree that any “Claims” or “Controversies” (as defined below) arising out of or in
respect to this Agreement (or its validity, interpretation or enforcement), or Employee’s
employment or termination, that Employee may have against the Company or it officers,
directors, employees, or agents, in their capacity as such, or that the Company may have
against Employee, shall be resolved solely through binding arbitration. EMPLOYEE AND THE
COMPANY EACH HEREBY ACKNOWLEDGE THAT THIS AGREEMENT TO ARBITRATE MEANS THAT EMPLOYEE AND THE
COMPANY ARE RELINQUISHING HIS/HER/ITS RIGHTS TO EITHER A JURY TRIAL OR COURT TRIAL FOR THE
RESOLUTION OF ANY CLAIMS THAT EMPLOYEE AND THE COMPANY MAY HAVE AGAINST THE OTHER.

The Terms “Claims” or “Controversies” arising out of this Agreement or Employee’s employment or
termination means and includes all claims for breach of this Agreement, harassment and/or
discrimination (including sexual harassment and harassment or discrimination based on race,
color, religion, age, sex, sexual orientation, ancestry, national origin, marital status,
military service, pregnancy, physical or mental disability, medical condition or any other
protected class or condition), breach of any contract or covenant (express or implied), tort
claims, wrongful termination, whistle-blowing and all other claims relating to this Agreement or
Employee’s employment or termination, except that claims covered by the Workers’ Compensation
Act and claims for unemployment benefits are not covered by this agreement to arbitrate. All
Claims or Controversies shall be submitted to a single neutral arbitrator. The arbitration shall
take place in Orange County, California, unless otherwise mutually agreed. The arbitrator shall
be mutually agreed-upon by Employee and the Company. If Employee and the Company cannot agree
upon an arbitrator, the selection process shall be governed by the employment arbitration rules
and procedures of the American Arbitration Association (“AAA”). Regardless of the arbitrator
chosen, the arbitration proceedings shall be governed by the then current AAA procedural rules,
except that if a contrary rule exists: (1) all monetary or provisional remedies available under
applicable state or federal statutory law or common law will remain available to both parties,
(2) except as mutually agreed upon by the parties, there will be no limitation on discovery
beyond that which exists in cases litigated in Orange County Superior Court and (3) the
California Rules of Evidence shall apply to the arbitration hearing.

In connection with any arbitration proceeding commenced hereby, the prevailing party shall be
entitled to reimbursement of its reasonable attorney’s fees and costs, including arbitrator
fees. This agreement to arbitrate and arbitration procedure is intended to be the exclusive
method of resolving all Claims or Controversies as described above between

Employee and the Company and judgment upon the award rendered by the arbitrator hereunder may be
entered in any court having jurisdiction thereof.

	 	22.	 	WITHHOLDING. All compensation payable hereunder, including salary and other benefits, shall
be subject to applicable taxes, withholding and other required, normal or elected employee
deductions.

	 	23.	 	COUNTERPARTS. This Agreement and any amendment hereto may be executed in one or more
counterparts. All of such counterparts shall constitute one and the same agreement and shall
become effective when a copy signed by each party has been delivered to the other party.

	 	24.	 	HEADINGS. Section and other headings contained in this Agreement are for convenience of
reference only and shall not affect in any way the meaning or interpretation of this
Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written

CORINTHIAN COLLEGES, INC.

By: /s/ Jack D. Massimino

	 	 	 	Name: Jack D. Massimino

Its: President and Chief Executive Officer

EMPLOYEE

/s/ Kenneth S. Ord

	 	 	 	Kenneth S. OrdEX-10.1

EMPLOYMENT AGREEMENT

THIS AGREEMENT, made and entered into as of this 2nd day of February, 2005, by and between
Kansas City Southern, a Delaware corporation (“KCS”) and James S. Brook, an individual
(“Executive”).

WHEREAS, Executive has been offered employment by KCS and Executive desire for KCS to continue
to employ Executive on the terms and conditions set forth in this Agreement and to provide an
incentive to Executive to remain in the employ of KCS hereafter, particularly in the event of any
change in control (as herein defined) of KCS, or Railway, thereby establishing and preserving
continuity of management of KCS.

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, it
is agreed by and between KCS and Executive as follows:

1. Employment. KCS hereby employs Executive as its Vice President & Comptroller to
serve at the pleasure of the Board of Directors of KCS (the “KCS Board”) and to have such duties,
powers and responsibilities as may be prescribed or delegated from time to time by the President or
other officer to whom Executive reports, subject to the powers vested in the KCS Board and in the
stockholders of KCS. Executive shall faithfully perform his duties under this Agreement to the
best of his ability and shall devote substantially all of his working time and efforts to the
business and affairs of KCS and its affiliates.

2. Compensation.

(a) Base Compensation. KCS shall pay Executive as compensation for his services
hereunder an annual base salary at the rate approved by the KCS Compensation Committee. Such rate
shall not be reduced except as agreed by the parties or except as part of a general salary
reduction program imposed by KCS for non-union employees and applicable to all officers of KCS, not
related to a Change of Control.

3. Benefits. During the period of his employment hereunder, KCS shall provide
Executive with coverage under such benefit plans and programs as are made generally available to
similarly situated employees of KCS, provided (a) KCS shall have no obligation with respect to any
plan or program if Executive is not eligible for coverage thereunder, and (b) Executive
acknowledges that stock options and other stock and equity participation awards are granted in the
discretion of the KCS Board or the Compensation Committee of the KCS Board and that Executive has
no right to receive stock options or other equity participation awards or any particular number or
level of stock options or other awards. In determining contributions, coverage and benefits under
any disability insurance policy and under any cash compensation-based plan provided to Executive by
KCS, it shall be assumed that the value of Executive’s annual compensation, pursuant to this
Agreement, is 145% of Executive’s annual base salary. Executive acknowledges that all rights and
benefits under benefit plans and programs shall be governed by the official text of each plan or
program and not by any summary or description thereof or any provision of this Agreement (except to
the extent that this Agreement expressly modifies such benefit plans or programs) and that KCS is
not under any obligation to continue in effect or to fund any such plan or program, except as
provided in Paragraph 7 hereof.

4. Term and Termination.

The “Term” of this Agreement shall begin on the date first written above and continue until
terminated as provided in (a) through (d) of this Section 4.

(a) Termination by Executive. Executive may terminate this Agreement and his
employment hereunder by providing at least thirty (30) days advance written notice to KCS, except
that in the event of any material breach of this Agreement by KCS, Executive may terminate this
Agreement and his employment hereunder immediately upon notice to KCS.

(b) Death or Disability. This Agreement and Executive’s employment hereunder shall
terminate automatically on the death or disability of Executive, except to the extent employment is
continued under KCS’s disability plan. For purposes of this Agreement, Executive shall be deemed
to be disabled if he qualifies for disability benefits under KCS’s long-term disability plan.

(c) Termination by KCS For Cause. KCS may terminate this Agreement and Executive’s
employment “for cause” immediately upon notice to Executive. For purposes of this Agreement
(except for Paragraph 7), termination “for cause” shall mean termination based upon any one or more
of the following:

(i) Any material breach of this Agreement by Executive;

(ii) Executive’s dishonesty involving Railway, KCS, or any subsidiary of Railway or
KCS;

(iii) Gross negligence or willful misconduct in the performance of Executive’s duties
as determined in good faith by the KCS Board;

(iv) Executive’s failure to substantially perform his duties and responsibilities
hereunder, including without limitation Executive’s willful failure to follow reasonable
instructions of the President or other officer to whom Executive reports;

(v) Executive’s breach of an express employment policy of KCS or its
affiliates;

(vi) Executive’s fraud or criminal activity;

(vii) Embezzlement or misappropriation by Executive.; or

(viii) Executive’s breach of his fiduciary duty to Railway, or KCS, or their
affiliates.

(d) Termination by KCS Other Than For Cause.

(i) KCS may terminate this Agreement and Executive’s employment other than for cause
immediately upon notice to Executive, and in such event, KCS shall provide severance
benefits to Executive in accordance with Paragraph 4(d)(ii) below. Executive
acknowledges and agrees that such severance benefits constitute the exclusive remedy of
Executive upon termination of employment other than for cause. Notwithstanding any other
provision of this Agreement, as a condition to receiving such severance benefits, Executive
shall execute a full release of claims in favor of KCS and Railway and their affiliates in
the form Attached hereto as Appendix A.

(ii) Unless the provisions of Paragraph 7 of this Agreement are applicable, if
Executive’s employment is terminated under Paragraph 4(d)(i), KCS shall continue, for a
period of one (1) year following such termination, (a) to pay to Executive as severance pay
a monthly amount equal to one-twelfth (1/12th) of the annual base salary referenced in
Paragraph 2(a) above, at the rate in effect immediately prior to termination, and, (b) to
reimburse Executive for the cost (including state and federal income taxes payable with
respect to this reimbursement) of continuing the health insurance coverage provided pursuant
to this Agreement or obtaining health insurance coverage comparable to the health insurance
provided pursuant to this Agreement, and obtaining coverage comparable to the life insurance
provided pursuant to this Agreement, unless Executive is provided comparable health or life
insurance coverage in connection with other employment. The foregoing obligations of KCS
shall continue until the end of such one (1) year period notwithstanding the death or
disability of Executive during said period (except, in the event of death, the obligation to
reimburse Executive for the cost of life insurance shall not continue). In the year in
which termination of employment occurs, Executive shall be eligible to receive benefits
under the KCS Incentive Compensation Plan and any Executive Plan in which Executive
participates (the “Executive Plan”) (if such Plans then are in existence and Executive was
entitled to participate immediately prior to termination) in accordance with the provisions
of such plans then applicable, and severance pay received in such year shall be taken into
account for the purpose of determining benefits, if any, under the KCS Incentive
Compensation Plan but not under the Executive Plan. After the year in which termination
occurs, Executive shall not be entitled to accrue or receive benefits under the KCS
Incentive Compensation Plan or the Executive Plan with respect to the severance pay provided
herein, notwithstanding that benefits under such plan there are still generally available to
executive employees of KCS. After termination of employment, Executive shall not be
entitled to accrue or receive benefits under any other employee benefit plan or program,
except that Executive shall be entitled to participate in the KCS Section 401(k) and Profit
Sharing Plan and the KCS Employee Stock Ownership Plan (if KCS employees then still
participate in such plans) in the year of termination of employment only if Executive meets
all requirements of such plans for participation in such year.

5. Confidentiality and Non-Disclosure.

(a) Executive understands and agrees that he will be given Confidential Information (as
defined below) during his employment with KCS relating to the business of KCS, Railway, and/or
their affiliates, in exchange for his agreement herein. Executive hereby expressly agrees to
maintain in strictest confidence and not to use in any way (including without limitation in any
future business relationship of Executive), publish, disclose or authorize anyone else to use,
publish or disclose in any way, any Confidential Information relating in any manner to the business
or affairs of KCS, Railway, and/or their affiliates. Executive agrees further not to remove or
retain any figures, calculations, letters, documents, lists, papers, or copies thereof, which
embody Confidential Information of KCS, Railway, and/or their affiliates, and to return, prior to
Executive’s termination of employment for any reason, any such information in Executive’s
possession. If Executive discovers, or comes into possession of, any such information after his
termination he shall promptly return it to KCS. Executive acknowledges that the provisions of this
paragraph are consistent with KCS’s policies and procedures to which Executive, as an employee of
KCS, is bound.

(b) For purposes of this Agreement, “Confidential Information” includes, but is not limited
to, information in the possession of, prepared by, obtained by, compiled by, or that is used by
KCS, Railway, or their affiliates or customers and (i) is proprietary to, about, or created by KCS,
Railway, or their affiliates or customers; (ii) gives KCS, Railway, or their affiliates or
customers some competitive business advantage, the opportunity of obtaining such advantage,
or disclosure of which might be detrimental to the interest of KCS, Railway, or their affiliates
or customers; and (iii) is not typically disclosed by KCS, Railway, or their affiliates or
customers, or known by persons who are not employed by KCS, Railway, or their affiliates or
customers. Without in any way limiting the foregoing and by way of example, Confidential
Information shall include: information pertaining to KCS’s, Railway’s, or their affiliates’
business operations such as financial and operational information and data, operational plans and
strategies, business and marketing strategies, pricing information, plans for various products and
services, and acquisition and divestiture planning.

(c) In the event of any breach of this Paragraph 5 by Executive, Railway shall be entitled to
terminate any and all remaining severance benefits under Paragraph 4(d)(ii) and shall be entitled
to pursue such other legal and equitable remedies as may be available. Executive
acknowledges, understands and agrees that KCS, Railway, and/or their affiliates will suffer
immediate and irreparable harm if Executive fails to comply with any of his obligations under
Paragraph 5 of this Agreement, and that monetary damages alone will be inadequate to compensate
KCS, Railway, or their affiliates for such breach. Accordingly, Executive agrees that KCS,
Railway, and/or their affiliates shall, in addition to any other remedies available to it at law
or in equity, be entitled to temporary, preliminary, and permanent injunctive relief and specific
performance to enforce the terms of Paragraph 5 without the necessity of proving inadequacy of
legal remedies or irreparable harm or posting bond.

6. Duties Upon Termination; Survival.

(a) Duties. Upon termination of this Agreement by KCS or Executive for any reason,
Executive shall immediately sign such written resignations from all positions as an officer,
director or member of any committee or board of KCS, and Railway and all direct and indirect
subsidiaries and affiliates of KCS and Railway as may be requested by KCS and shall sign such other
documents and papers relating to Executive’s employment, benefits and benefit plans as KCS may
reasonably request.

(b) Survival. The provisions of Paragraphs 5, 6(a) and 7 of this Agreement shall
survive any termination of this Agreement by KCS, Railway or Executive, and the provisions of
Paragraph 4(d)(ii) shall survive any termination of this Agreement by KCS under Paragraph 4(d)(i).

7. Continuation of Employment Upon Change in Control.

(a) Continuation of Employment. Subject to the terms and conditions of this Paragraph
7, in the event of a Change in Control (as defined in Paragraph 7(d)) at any time during the term
of this Agreement, Executive agrees to remain in the employ of KCS for a period of three years (the
“Three Year Period”) from the date of such Change in Control (the “Control Change Date”). KCS
agrees to continue to employ Executive for the Three Year Period. During the Three Year Period,
(i) the Executive’s position (including offices, titles, reporting requirements and
responsibilities), authority and duties shall be at least commensurate in all material respects
with the most significant of those held, exercised and assigned at any time during the 12 month
period immediately before the Control Change Date and (B) the Executive’s services shall be
performed at the location where Executive was employed immediately before the Control Change Date
or at any other location less than 40 miles from such former location. During the Three Year
Period, KCS shall continue to pay to Executive an annual base salary on the same basis and at the
same intervals as in effect prior to the Control Change Date at a rate not less than 12 times the
highest monthly base salary paid or payable to the Executive by KCS in respect of the 12-month
period immediately before the Control Change Date.

(b) Benefits. During the Three-Year Period, Executive shall be entitled to
participate, on the basis of his executive position, in each of the following KCS plans (together,
the “Specified Benefits”) in existence, and in accordance with the terms thereof, at the Control
Change Date:

(i) any benefit plan, and trust fund associated therewith, related to: (A) life,
health, dental, disability, accidental death and dismemberment insurance or accrued but
unpaid vacation time; (B) profit sharing, thrift or deferred savings (including deferred
compensation, such as under Sec. 401(k) plans); (C) retirement or pension benefits; (D)
ERISA excess benefits and similar plans and (E) tax favored employee stock ownership (such
as under ESOP, and Employee Stock Purchase programs); and

(ii) any other benefit plans hereafter made generally available to executives of
Executive’s level or to the employees of KCS generally.

In addition, KCS shall use its best efforts to cause all outstanding options held by
Executive under any stock option plan of KCS or its affiliates to become immediately exercisable on
the Control Change Date and to the extent that such options are not vested and are subsequently
forfeited, the Executive shall receive a lump-sum cash payment within 5 days after the options are
forfeited equal to the difference between the fair market value of the shares of stock subject to
the non-vested, forfeited options determined as of the date such options are forfeited and the
exercise price for such options. During the Three Year Period Executive shall be entitled to
participate, on the basis of his executive position, in any incentive compensation plan of KCS, in
accordance with the terms thereof at the Control Change Date; provided that if under KCS’s programs
or Executive’s Employment Agreement in existence immediately prior to the Control Change Date,
there are written limitations on participation for a designated time period in any incentive
compensation plan, such limitations shall continue after the Control Change Date to the extent so
provided for prior to the Control Change Date.

If the amount of contributions or benefits with respect to the Specified Benefits or any
incentive compensation is determined on a discretionary basis under the terms of the Specified
Benefits or any incentive compensation plan immediately prior to the Control Change Date, the
amount of such contributions or benefits during the Three-Year Period for each of the Specified
Benefits shall not be less than the average annual contributions or benefits for each Specified
Benefit for the three plan years ending prior to the Control Change Date and, in the case of any
incentive compensation plan, the amount of the incentive compensation during the Three Year Period
shall not be less than 75% of the maximum that could have been paid to the Executive under the
terms of the incentive compensation plan.

(c) Payment. With respect to any plan or agreement under which Executive would be
entitled at the Control Change Date to receive Specified Benefits or incentive compensation as a
general obligation of KCS which has not been separately funded (including specifically, but not
limited to, those referred to under Paragraph 7(b)(i)(D) above), Executive shall receive within
five (5) days after such date full payment in cash of all amounts to which he is then entitled
thereunder.

(d) Change in Control. For purposes of this Agreement, a “Change in Control” shall be
deemed to have occurred if:

(i) for any reason at any time less than seventy-five percent (75%) of the members of
the KCS Board shall be individuals who fall into any of the following categories: (A)
individuals who were members of the KCS Board on the date of the Agreement; or (B)
individuals whose election, or nomination for election by KCS’s stockholders, was approved
by a vote of at least seventy-five percent (75%) of the members of the KCS Board then still
in office who were members of the KCS Board on the date of the Agreement; or (C) individuals
whose election, or nomination for election, by KCS’s stockholders, was approved by a vote of
at least seventy-five percent (75%) of the members of the KCS Board then still in office who
were elected in the manner described in (A) or (B) above, or

(ii) any “person” (as such term is used in Sections 13(d) and 14(d)(2) of the
Securities Exchange Act of 1934 (the “Exchange Act”)) other than KCS shall have become after
September 18, 1997, according to a public announcement or filing, the “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of KCS,
or Railway representing thirty percent (30%) (or, with respect to Paragraph 7(c) hereof,
40%) or more (calculated in accordance with Rule 13d-3) of the combined voting power of
KCS’s or Railway’s or then outstanding voting securities; or

(iii) the stockholders of Railway or KCS shall have approved a merger, consolidation or
dissolution of Railway or KCS or a sale, lease, exchange or disposition of all or
substantially all of Railway’s or KCS’s assets, if persons who were the beneficial owners
of the combined voting power of Railway’s or KCS’s voting securities immediately before any
such merger, consolidation, dissolution, sale, lease, exchange or disposition do not
immediately thereafter, beneficially own, directly or indirectly, in substantially the same
proportions, more than 60% of the combined voting power of any corporation or other entity
resulting from any such transaction.

(e) Termination After Control Change Date. Notwithstanding any other provision of
this Paragraph 7, at any time after the Control Change Date, KCS may terminate the employment of
Executive (the “Termination”), but unless such Termination is for Cause as defined in subparagraph
(g) or for disability, within five (5) days of the Termination KCS shall pay to Executive his full
base salary through the Termination, to the extent not theretofore paid, plus a lump sum amount
(the “Special Severance Payment”) equal to the product of: (i) 160% of his annual base salary
specified in Paragraph 7(a) multiplied by (ii) Two; and Specified Benefits (excluding any incentive
compensation) to which Executive was entitled immediately prior to Termination shall continue until
the end of the 3-year period (“Benefits Period”) beginning on the date of Termination. If any plan
pursuant to which Specified Benefits are provided immediately prior to Termination would not permit
continued participation by Executive after Termination, then KCS shall pay to Executive within five
(5) days after Termination a lump sum payment equal to the amount of Specified Benefits Executive
would have received under such plan if Executive had been fully vested in the average annual
contributions or benefits in effect for the three plan years ending prior to the Control Change
Date (regardless of any limitations based on the earnings or performance of KCS, or Railway) and a
continuing participant in such plan to the end of the Benefits Period. Following the end of the
Benefits Period, KCS shall continue to provide to the Executive and the Executive’s family the
following benefits (“Post-Period Benefits”): (1) prior to the Executive’s attainment of age sixty
(60), health, prescription and dental benefits equivalent to those then applicable to active peer
executives of KCS) and their families, as the same may be modified from time to time, and (2)
following the Executive’s attainment of age sixty (60) (and without regard to the Executive’s
period of service with KCS) health and prescription benefits equivalent to those then applicable to
retired peer executives of KCS and their families immediately prior to the Change of Control. The
cost to the Executive of such Post-Period Benefits shall not exceed the cost of such benefits to
active or retired (as applicable) peer executives immediately prior to the Change of Control.
Notwithstanding the preceding two sentences of this Paragraph 7(e), if the Executive is covered
under any health, prescription or dental plan provided by a subsequent employer, then the
corresponding type of plan coverage (i.e., health, prescription or dental), required to be provided
as Post-Period Benefits under this Paragraph 7(e) shall cease. The Executive’s rights under this
Paragraph 7(e) shall be in addition to, and not in lieu of, any post-termination continuation
coverage or conversion rights the Executive may have pursuant to applicable law, including without
limitation continuation coverage required by Section 4980 of the Code. Nothing in this Paragraph
7(e) shall be deemed to limit in any manner the reserved right of KCS, in its sole and absolute
discretion, to at any time amend, modify or terminate health, prescription or dental benefits for
active or retired employees generally.

(f) Resignation After Control Change Date. In the event of a Change in Control as
defined in Paragraph 7(d), thereafter, upon good reason (as defined below), Executive may, at any
time during the three-year period following the Change in Control, in his sole discretion, on not
less than thirty (30) days’ written notice (the “Notice of Resignation”) to the Secretary of KCS
and effective at the end of such notice period, resign his employment with KCS (the “Resignation”).
Within five (5) days of such a Resignation, KCS shall pay to Executive his full base salary
through the effective date of such Resignation, to the extent not theretofore paid, plus a lump sum
amount equal to the Special Severance Payment (computed as provided in the first sentence of
Paragraph 7(e), except that for purposes of such computation all references to “Termination” shall
be deemed to be references to “Resignation”). Upon Resignation of Executive, Specified Benefits to
which Executive was entitled immediately prior to Resignation shall continue on the same terms and
conditions as provided in Paragraph 7(e) in the case of Termination (including equivalent payments
provided for therein), and Post-Period Benefits shall be provided on the same terms and conditions
as provided in Paragraph 7(e) in the case of Termination. For purposes of this Agreement, “good
reason” means any of the following:

(i) the assignment of the Executive of any duties inconsistent in any respect with the
Executive’s position (including offices, titles, reporting requirements or
responsibilities), authority or duties as contemplated by Section 7(a)(i), or any other
action by KCS which results in a diminution or other material adverse change in such
position, authority or duties;

(ii) any failure by KCS to comply with any of the provisions of Paragraph 7;

(iii) KCS’s requiring the Executive to be based at any office or location other than
the location described in Section 7(a)(ii);

(iv) any other material adverse change to the terms and conditions of the Executive’s
employment; or

(v) any purported termination by KCS of the Executive’s employment other than as
expressly permitted by this Agreement (any such purported termination shall not be effective
for any other purpose under this Agreement).

A passage of time prior to delivery of the Notice of Resignation or a failure by the Executive to
include in the Notice of Resignation any fact or circumstance which contributes to a showing of
Good Reason shall not waive any right of the Executive under this Agreement or preclude the
Executive from asserting such fact or circumstance in enforcing rights under this Agreement.

(g) Termination for Cause After Control Change Date. Notwithstanding any other
provision of this Paragraph 7, at any time after the Control Change Date, Executive may be
terminated by KCS “for cause.” Cause means commission by the Executive of any felony or willful
breach of duty by the Executive in the course of the Executive’s employment; except that Cause
shall not mean:

(i) bad judgment or negligence;

(ii) any act or omission believed by the Executive in good faith to have been in or not
opposed to the interest of KCS or Railway (without intent of the Executive to gain, directly
or indirectly, a profit to which the Executive was not legally entitled);

(iii) any act or omission with respect to which a determination could properly have
been made by the KCS Board that the Executive met the applicable standard of conduct for
indemnification or reimbursement under KCS’s by-laws, any applicable indemnification
agreement, or applicable law, in each case in effect at the time of such act or omission; or

(iv) any act or omission with respect to which Notice of Termination of the Executive
is given, more than 12 months after the earliest date on which any member of the KCS Board,
not a party to the act or omission, knew or should have known of such act or omission.

Any Termination of the Executive’s employment by KCS for Cause shall be communicated to the
Executive by Notice of Termination.

(h) Gross-up for Certain Taxes. If it is determined (by the reasonable computation of
KCS’s independent auditors, which determinations shall be certified to by such auditors and set
forth in a written certificate (“Certificate”) delivered to the Executive) that any benefit
received or deemed received by the Executive from Railway, or KCS pursuant to this Agreement or
otherwise (collectively, the “Payments”) is or will become subject to any excise tax under Section
4999 of the Code or any similar tax payable under any United States federal, state, local or other
law (such excise tax and all such similar taxes collectively, “Excise Taxes”), then KCS shall,
immediately after such determination, pay the Executive an amount (the “Gross-up Payment”) equal to
the product of:

(i) the amount of such Excise Taxes; multiplied by

(ii) the Gross-up Multiple (as defined in Paragraph 7(k)).

The Gross-up Payment is intended to compensate the Executive for the Excise Taxes and
any federal, state, local or other income or excise taxes or other taxes payable by the
Executive with respect to the Gross-up Payment.

KCS shall cause the preparation and delivery to the Executive of a Certificate upon
request at any time. KCS shall, in addition to complying with this Paragraph 7(h), cause
all determinations and certifications under Paragraphs 7(h)-(o) to be made as soon as
reasonably possible and in adequate time to permit the Executive to prepare and file the
Executive’s individual tax returns on a timely basis.

(i) Determination by the Executive.

(i) If KCS shall fail (A) to deliver a Certificate to the Executive or (B) to pay to
the Executive the amount of the Gross-up Payment, if any, within 14 days after receipt from
the Executive of a written request for a Certificate, or if at any time following receipt of
a Certificate the Executive disputes the amount of the Gross-up Payment set forth therein,
the Executive may elect to demand the payment of the amount which the Executive, in
accordance with an opinion of counsel to the Executive (“Executive Counsel Opinion”),
determines to be the Gross-up Payment. Any such demand by the Executive shall be made by
delivery to KCS of a written notice which specifies the Gross-up Payment determined by the
Executive and an Executive Counsel Opinion regarding such Gross-up Payment (such written
notice and opinion collectively, the “Executive’s Determination”). Within 14 days after
delivery of the Executive’s Determination to KCS, KCS shall either: (A) pay the Executive
the Gross-up Payment set forth in the Executive’s Determination (less the portion of such
amount, if any, previously paid to the Executive by KCS) or (B) deliver to the Executive a
Certificate specifying the Gross-up Payment determined by KCS’s independent auditors,
together with an opinion of KCS’s counsel (“KCS Counsel Opinion”), and pay the Executive the
Gross-up Payment specified in such Certificate. If for any reason KCS fails to comply with
clause (B) of the preceding sentence, the Gross-up Payment specified in the Executive’s
Determination shall be controlling for all purposes.

(ii) If the Executive does not make a request for, and KCS does not deliver to the
Executive, a Certificate, KCS shall, for purposes of Paragraph 7(j), be deemed to have
determined that no Gross-up Payment is due.

(j) Additional Gross-up Amounts. If, despite the initial conclusion of KCS and/or the
Executive that certain Payments are neither subject to Excise Taxes nor to be counted in
determining whether other Payments are subject to Excise Taxes (any such item, a “Non-Parachute
Item”), it is later determined (pursuant to subsequently-enacted provisions of the Code, final
regulations or published rulings of the IRS, final IRS determination or judgment of a court of
competent jurisdiction or KCS’s independent auditors) that any of the Non-Parachute Items are
subject to Excise Taxes, or are to be counted in determining whether any Payments are subject to
Excise Taxes, with the result that the amount of Excise Taxes payable by the Executive is greater
than the amount determined by KCS or the Executive pursuant to Paragraph 7(h) or Paragraph 7(i), as
applicable, then KCS shall pay the Executive an amount (which shall also be deemed a Gross-up
Payment) equal to the product of:

(i) the sum of (A) such additional Excise Taxes and (B) any interest, fines, penalties,
expenses or other costs incurred by the Executive as a result of having taken a position in
accordance with a determination made pursuant to Paragraph 7(h); multiplied by

(ii) the Gross-up Multiple.

(k) Gross-up Multiple. The Gross-up Multiple shall equal a fraction, the numerator of
which is one (1.0), and the denominator of which is one (1.0) minus the sum, expressed as a decimal
fraction, of the rates of all federal, state, local and other income and other taxes and any Excise
Taxes applicable to the Gross-up Payment; provided that, if such sum exceeds 0.8, it shall be
deemed equal to 0.8 for purposes of this computation. (If different rates of tax are applicable to
various portions of a Gross-up Payment, the weighted average of such rates shall be used.)

(l) Opinion of Counsel. “Executive Counsel Opinion” means a legal opinion of
nationally recognized executive compensation counsel that there is a reasonable basis to support a
conclusion that the Gross-up Payment determined by the Executive has been calculated in accord with
this Paragraph 7 and applicable law. “Company Counsel Opinion” means a legal opinion of nationally
recognized executive compensation counsel that (i) there is a reasonable basis to support a
conclusion that the Gross-up Payment set forth in the Certificate of KCS’s independent auditors has
been calculated in accord with this Paragraph 7 and applicable law, and (ii) there is no reasonable
basis for the calculation of the Gross-up Payment determined by the Executive.

(m) Amount Increased or Contested. The Executive shall notify KCS in writing of any
claim by the IRS or other taxing authority that, if successful, would require the payment by KCS of
a Gross-up Payment. Such notice shall include the nature of such claim and the date on which such
claim is due to be paid. The Executive shall give such notice as soon as practicable, but no later
than 10 business days, after the Executive first obtains actual knowledge of such claim; provided,
however, that any failure to give or delay in giving such notice shall affect KCS’s obligations
under this Paragraph 7 only if and to the extent that such failure results in actual prejudice to
KCS. The Executive shall not pay such claim less than 30 days after the Executive gives such
notice to KCS (or, if sooner, the date on which payment of such claim is due). If KCS notifies the
Executive in writing before the expiration of such period that it desires to contest such claim,
the Executive shall:

(i) give KCS any information that it reasonably requests relating to such claim;

(ii) take such action in connection with contesting such claim as KCS reasonably
requests in writing from time to time, including, without limitation, accepting legal
representation with respect to such claim by an attorney reasonably selected by KCS;

(iii) cooperate with KCS in good faith to contest such claim; and

(iv) permit KCS to participate in any proceedings relating to such claim; provided,
however, that KCS 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 the Executive harmless, on an after-tax basis, for any Excise Tax or income tax,
including related interest and penalties, imposed as a result of such representation and
payment of costs and expenses. Without limiting the foregoing, KCS shall control all
proceedings 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 the Executive
to pay the tax claimed and sue for a refund or contest the claim in any permissible manner.
The Executive agrees 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 KCS
shall determine; provided, however, that if KCS directs the Executive to pay such claim and
sue for a refund, KCS shall advance the amount of such payment to the Executive, on are
interest-free basis and shall indemnify the Executive, on an after-tax basis, for any Excise
Tax or income tax, including related interest or penalties, imposed with respect to such
advance; and further provided that any extension of the statute of limitations relating to
payment of taxes for the taxable year of the Executive with respect to which such contested
amount is claimed to be due is limited solely to such contested amount. KCS’s control of
the contest shall be limited to issues with respect to which a Gross-up Payment would be
payable. The Executive shall be entitled to settle or contest, as the case may be, any
other issue raised by the IRS or other taxing authority.

(n) Refunds. If, after the receipt by the Executive of an amount advanced by KCS
pursuant to Paragraph 7(m), the Executive receives any refund with respect to such claim, the
Executive shall (subject to KCS’s complying with the requirements of Paragraph 7(m)) promptly pay
KCS the amount of such refund (together with any interest paid or credited thereon after taxes
applicable thereto). If, after the receipt by the Executive of an amount advanced by KCS pursuant
to Paragraph 7(m), a determination is made that the Executive shall not be entitled to a full
refund with respect to such claim and KCS does not notify the Executive in writing of its intent to
contest such determination before the expiration of 30 days after such determination, then the
applicable part of such advance shall be forgiven and shall not be required to be repaid and the
amount of such advance shall offset, to the extent thereof, the amount of Gross-up Payment required
to be paid. Any contest of a denial of refund shall be controlled by Paragraph 7(m).

(o) Expenses. If any dispute should arise under this Agreement after the Control
Change Date involving an effort by Executive to protect, enforce or secure rights or benefits
claimed by Executive hereunder, KCS shall pay (promptly upon demand by Executive accompanied by
reasonable evidence of incurrence) all reasonable expenses (including attorneys’ fees) incurred by
Executive in connection with such dispute, without regard to whether Executive prevails in such
dispute except that Executive shall repay KCS any amounts so received if a court having
jurisdiction shall make a final, non-appealable determination that Executive acted frivolously or
in bad faith by such dispute. To assure Executive that adequate funds will be made available to
discharge KCS’s obligations set forth in the preceding sentence, KCS has established a trust and
upon the occurrence of a Change in Control shall promptly deliver to the trustee of such trust to
hold in accordance with the terms and conditions thereof that sum which the KCS Board shall have
determined is reasonably sufficient for such purpose.

(p) Prevailing Provisions. On and after the Control Change Date, the provisions of
this Paragraph 7 shall control and take precedence over any other provisions of this Agreement
which are in conflict with or address the same or a similar subject matter as the provisions of
this Paragraph 7.

8. Mitigation and Other Employment. After a termination of Executive’s employment
pursuant to Paragraph 4(d)(i) or a Change in Control as defined in Paragraph 7(d), Executive shall
not be required to mitigate the amount of any payment provided for in this Agreement by seeking
other employment or otherwise, and except as otherwise specifically provided in Paragraph 4(d)(ii)
with respect to health and life insurance and in Paragraph 7(e) with respect to health,
prescription and dental benefits, no such other employment, if obtained, or compensation or
benefits payable in connection therewith shall reduce any amounts or benefits to which Executive is
entitled hereunder. Such amounts or benefits payable to Executive under this Agreement shall not
be treated as damages but as severance compensation to which Executive is entitled because
Executive’s employment has been terminated.

9. Notice. Notices and all other communications to either party pursuant to this
Agreement shall be in writing and shall be deemed to have been given when personally delivered,
delivered by facsimile or deposited in the United States mail by certified or registered mail,
postage prepaid, addressed to KCS at 427 West 12th Street, Kansas City, Missouri 64105, Attention:
Secretary, or, in the case of the Executive, to him at 12404 Aberdeen, Leewood Kansas, 66209, or to
such other address as a party shall designate by notice to the other party.

10. Amendment. No provision of this Agreement may be amended, modified, waived or
discharged unless such amendment, waiver, modification or discharge is agreed to in writing signed
by Executive, and the President of KCS. No waiver by any party hereto at any time of any breach by
another 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 time or at any prior or subsequent time.

11. Successors in Interest. The rights and obligations of KCS under this Agreement
shall inure to the benefit of and be binding in each and every respect upon the direct and indirect
successors and assigns of KCS, regardless of the manner in which such successors or assigns shall
succeed to the interest of KCS hereunder, and this Agreement shall not be terminated by the
voluntary or involuntary dissolution of KCS or Railway or by any merger or consolidation or
acquisition involving KCS or Railway, or upon any transfer of all or substantially all of KCS’s or
Railway’s assets, or terminated otherwise than in accordance with its terms. In the event of any
such merger or consolidation or transfer of assets, the provisions of this Agreement shall be
binding upon and shall inure to the benefit of the surviving corporation or the corporation or
other person to which such assets shall be transferred. Neither this Agreement nor any of the
payments or benefits hereunder may be pledged, assigned or transferred by Executive either in whole
or in part in any manner, without the prior written consent of KCS.

12. Severability. The invalidity or unenforceability of any particular provision of
this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed
in all respects as if such invalid or unenforceable provisions were omitted.

13. Controlling Law and Jurisdiction. The validity, interpretation and performance of
this Agreement shall be subject to and construed under the laws of the State of Missouri, without
regard to principles of conflicts of law.

14. Entire Agreement. This Agreement constitutes the entire agreement among the
parties with respect to the subject matter hereof and terminates and supersedes all other prior
agreements and understandings, both written and oral, between the parties with respect to the terms
of Executive’s employment or severance arrangements.

IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Agreement as of
the 2nd day of February, 2005.

KANSAS CITY SOUTHERN

By: /s/ Michael R. Haverty .

Michael R. Haverty, Chairman, President, and CEO

EXECUTIVE

 /s/ James S. Brook
        .

James S. Brook

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Appendix A

WAIVER AND RELEASE

In consideration of the benefits described in the Employment Agreement, I do hereby fully
waive all claims and release Kansas City Southern (KCS), and its affiliates, parents,
subsidiaries, successors, assigns, directors and officers, fiduciaries, employees and agents, as
well as any employee benefit plans from liability and damages related in any way to any claim I may
have against or KCS. This waiver and release includes, but is not limited to all claims, causes
of action and rights under Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights
Act of 1991; the Age Discrimination in Employment Act of 1967, as amended; the Civil Rights Act of
1866; the American with Disabilities Act of 1990; the Rehabilitation Act of 1973; the Older Workers
Benefit Protection Act of 1990; the Employee Retirement Income Security Act of 1974, as amended;
the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act; the
Federal Employers Liability Act; the Railway Labor Act, including bumping rights, rights to file a
grievance, rights to a hearing (whether before any company official, any system, group, regional or
special adjustment board, the National Railroad Adjustment Board, or any other entity), and any
rights to arbitration thereunder; the Missouri Human Rights Act, the Kansas Act Against
Discrimination, the Kansas and Missouri Workers’ Compensation acts, and all local state and federal
statutes and regulations; all claims arising from labor protective conditions imposed by the
Interstate Commerce Commission or the Surface Transportation Board; all any KCSR incentive or
benefit plan or program, and any rights under any collective bargaining agreement, including
seniority rights, bumping rights and reinstatement rights, rights to file or assert a grievance or
other complaint, rights to a hearing, or rights to arbitration under such agreement; and all rights
under common law such as breach of contract, tort or personal injury of any sort.

I understand that this Agreement and Release also precludes me from recovering any relief as a
result of any lawsuit, grievance or claims brought on my behalf and arising out of my employment or
resignation of, or separation from employment, provided that nothing in this Agreement and this
Release may affect my entitlement, if any, to workers’ compensation or unemployment compensation.
Additionally, nothing in this Agreement and Release prohibits me from communications with, filing a
complaint with, or full cooperation in the investigations of, any governmental agency on matters
within their jurisdictions. However, as stated above, this Agreement and Release does prohibit me
from recovering any relief, including monetary relief, as a result of such activities.

If any term, provision, covenant, or restriction of this Agreement and Release is held by a court
of competent jurisdiction to be invalid, void or unenforceable, the remainder of this Agreement and
Release and the other terms, provisions, covenants and restrictions hereof shall remain in full
force and effect and shall in no way be affected, impaired or invalidated. I understand and agree
that, in the event of breach by me of any of the terms and conditions of this Agreement and
Release, the Railway will be entitled to recover all costs and expenses as a result of my breach,
including but not limited to, reasonable attorneys’ fees and costs.

I have read this Agreement and Release and I understand all of its terms. I enter into and sign
this Agreement and Release knowingly and voluntarily, with full knowledge of what it means.

	 	 	 	 	 
	/s/ James S. Brook

	 	 	 	February 2, 2005
	 

	 	 	 	 
	Employee Signature

	 	 	 	Date
	 
	 	 	 	 
	James S. Brook

	 	 	 	(Contained within Original)
	 

	 	 	 	 
	Employee Name (Please Print)

	 	 	 	Social Security Number

2

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