Document:

EX-10.1

 Exhibit 10.1 

Kansas City Southern 
 2008 Stock
Option and 
 Performance Award Plan 

(Amended and Restated February 18, 2015) 

 Table of Contents 

 

							
	 	 	 	  	Page	 
		
	 ARTICLE 1. EFFECTIVE DATE, OBJECTIVES AND DURATION
	  	 	1	  
			
	 1.1
	 	 Effective Date of the Plan
	  	 	1	  
			
	 1.2
	 	 Objectives of the Plan
	  	 	1	  
			
	 1.3
	 	 Duration of the Plan
	  	 	1	  
		
	 ARTICLE 2. DEFINITIONS
	  	 	1	  
		
	 ARTICLE 3. ADMINISTRATION
	  	 	7	  
			
	 3.1
	 	 Committee
	  	 	7	  
			
	 3.2
	 	 Powers of Committee
	  	 	7	  
		
	 ARTICLE 4. SHARES SUBJECT TO THE PLAN, MAXIMUM AWARDS, AND 162(M) COMPLIANCE
	  	 	10	  
			
	 4.1
	 	 Number of Shares Available for Grants
	  	 	10	  
			
	 4.2
	 	 Adjustments in Authorized Shares and Awards; Liquidation, Dissolution or Change of Control
	  	 	11	  
			
	 4.3
	 	 Compliance with Section 162(m) of the Code
	  	 	12	  
			
	 4.4
	 	 Performance-Based Exception Under Section 162(m)
	  	 	12	  
		
	 ARTICLE 5. ELIGIBILITY AND GENERAL CONDITIONS OF AWARDS
	  	 	14	  
			
	 5.1
	 	 Eligibility
	  	 	14	  
			
	 5.2
	 	 Award Agreement
	  	 	14	  
			
	 5.3
	 	 General Terms, Termination of Affiliation and Change of Control
	  	 	15	  
			
	 5.4
	 	 Nontransferability of Awards
	  	 	17	  
			
	 5.5
	 	 Stand-Alone, Tandem and Substitute Awards
	  	 	18	  
			
	 5.6
	 	 Compliance with Rule 16b-3
	  	 	19	  
			
	 5.7
	 	 Cancellation and Rescission of Awards
	  	 	19	  
		
	 ARTICLE 6. STOCK OPTIONS
	  	 	20	  
			
	 6.1
	 	 Grant of Options
	  	 	20	  
			
	 6.2
	 	 Award Agreement
	  	 	20	  
			
	 6.3
	 	 Option Price
	  	 	20	  
			
	 6.4
	 	 Grant of Incentive Stock Options
	  	 	20	  
			
	 6.5
	 	 Payment
	  	 	21	  

  
 i 

 Table of Contents, (continued) 

							
	 	 	 	  	Page	 
		
	 ARTICLE 7. STOCK APPRECIATION RIGHTS AND LIMITED STOCK APPRECIATION RIGHTS
	  	 	22	  
			
	 7.1
	 	 Issuance
	  	 	22	  
			
	 7.2
	 	 Award Agreements
	  	 	22	  
			
	 7.3
	 	 Grant Price
	  	 	22	  
			
	 7.4
	 	 Exercise and Payment
	  	 	23	  
			
	 7.5
	 	 Grant Limitations
	  	 	23	  
		
	 ARTICLE 8. RESTRICTED SHARES AND RESTRICTED SHARE UNITS
	  	 	23	  
			
	 8.1
	 	 Grant of Restricted Shares and Restricted Share Units
	  	 	23	  
			
	 8.2
	 	 Award Agreement
	  	 	24	  
			
	 8.3
	 	 Consideration for Restricted Shares
	  	 	24	  
			
	 8.4
	 	 Effect of Forfeiture of Restricted Shares
	  	 	24	  
			
	 8.5
	 	 Restricted Shares Book Entry, Escrow, Certificate Legends
	  	 	24	  
		
	 ARTICLE 9. PERFORMANCE UNITS AND PERFORMANCE SHARES
	  	 	24	  
			
	 9.1
	 	 Grant of Performance Units and Performance Shares
	  	 	24	  
			
	 9.2
	 	 Value/Performance Goals
	  	 	24	  
			
	 9.3
	 	 Earning and Form and Timing of Payment of Performance Units and Performance Shares
	  	 	25	  
		
	 ARTICLE 10. BONUS SHARES
	  	 	26	  
		
	 ARTICLE 11. DEFERRED STOCK
	  	 	26	  
			
	 11.1
	 	 Grant of Deferred Stock
	  	 	26	  
			
	 11.2
	 	 Delivery and Limitations
	  	 	26	  
		
	 ARTICLE 12. DIVIDEND EQUIVALENTS
	  	 	26	  
		
	 ARTICLE 13. OTHER STOCK-BASED AWARDS
	  	 	27	  
		
	 ARTICLE 14. BENEFICIARY DESIGNATION
	  	 	27	  
		
	 ARTICLE 15. DEFERRALS
	  	 	27	  
		
	 ARTICLE 16. AMENDMENT, MODIFICATION, AND TERMINATION
	  	 	28	  
			
	 16.1
	 	 Amendment, Modification, and Termination
	  	 	28	  
			
	 16.2
	 	 Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events
	  	 	28	  
			
	 16.3
	 	 Awards Previously Granted
	  	 	28	  

  
 ii 

 Table of Contents, (continued) 

							
	 	 	 	  	Page	 
		
	 ARTICLE 17. WITHHOLDING
	  	 	28	  
			
	 17.1
	 	 Required Withholding
	  	 	28	  
			
	 17.2
	 	 Notification under Code Section 83(b)
	  	 	29	  
		
	 ARTICLE 18. ADDITIONAL PROVISIONS
	  	 	29	  
			
	 18.1
	 	 Successors
	  	 	29	  
			
	 18.2
	 	 Gender and Number
	  	 	29	  
			
	 18.3
	 	 Severability
	  	 	29	  
			
	 18.4
	 	 Requirements of Law
	  	 	30	  
			
	 18.5
	 	 Securities Law Compliance
	  	 	30	  
			
	 18.6
	 	 No Rights as a Stockholder
	  	 	30	  
			
	 18.7
	 	 Nature of Payments
	  	 	31	  
			
	 18.8
	 	 Non-Exclusivity of Plan
	  	 	31	  
			
	 18.9
	 	 Governing Law
	  	 	31	  
			
	 18.10
	 	 Share Certificates
	  	 	31	  
			
	 18.11
	 	 Unfunded Status of Awards; Creation of Trusts
	  	 	31	  
			
	 18.12
	 	 Affiliation
	  	 	31	  
			
	 18.13
	 	 Participation
	  	 	32	  
			
	 18.14
	 	 Military Service
	  	 	32	  
			
	 18.15
	 	 Construction
	  	 	32	  
			
	 18.16
	 	 Headings
	  	 	32	  
			
	 18.17
	 	 Obligations
	  	 	32	  
			
	 18.18
	 	 Stockholder Approval
	  	 	32	  

  
 iii 

 KANSAS CITY SOUTHERN 

2008 STOCK OPTION AND PERFORMANCE AWARD PLAN 

ARTICLE 1. 
 EFFECTIVE
DATE, OBJECTIVES AND DURATION 
 1.1 Effective Date of the Plan. Kansas City Southern, a Delaware corporation (the
“Company”), established the Kansas City Southern 2008 Stock Option and Performance Award Plan (the “Plan”), with the approval of the Company’s stockholders, effective October 14, 2008 (“Original Effective
Date”). Pursuant to Section 16.1 of the Plan, the Company now desires to amend and restate the Plan its entirety, effective as of February 18, 2015 (the “Restated Effective Date”), as as set forth herein. Any Awards granted
under this Plan prior to Restated Effective Date shall be subject to the terms and conditions of this amended and restated Plan document, except as otherwise explicity provided herein or under an applicable Award Agreement. 

1.2 Objectives of the Plan. The Plan is intended (a) to allow selected employees and officers of and consultants to the Company
and its Affiliates to acquire or increase equity ownership in the Company, thereby strengthening their commitment to the success of the Company and stimulating their efforts on behalf of the Company, and to assist the Company and its Affiliates in
attracting new employees, officers and consultants and retaining existing employees, officers and consultants, (b) to optimize the profitability and growth of the Company and its Affiliates through incentives which are consistent with the
Company’s goals, (c) to provide employees, officers and consultants with an incentive for excellence in individual performance, (d) to promote teamwork among employees, officers, consultants and non-employee directors, and (e) to
attract and retain highly qualified persons to serve as non-employee directors and to promote ownership by such non-employee directors of a greater proprietary interest in the Company, thereby aligning such non-employee directors’ interests
more closely with the interests of the Company’s stockholders. 
 1.3 Duration of the Plan. The Plan shall commence on the
Original Effective Date and shall remain in effect, subject to the right of the Board or the Committee to amend or terminate the Plan at any time pursuant to Article 16 hereof, until the earlier of October 14, 2018, or the date all Shares
subject to the Plan shall have been purchased or acquired and the restrictions on all Restricted Shares granted under the Plan shall have lapsed, according to the Plan’s provisions. The termination of the Plan shall not adversely affect any
Awards outstanding on the date of termination. 
 ARTICLE 2. 

DEFINITIONS 
 Whenever
used in the Plan, the following terms shall have the meanings set forth below: 
 2.1 “Affiliate” means any Person that directly
or indirectly, through one or more intermediaries, controls, or is controlled by or is under common control with the Company, and, 

  
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for all purposes other than for purposes of grants of Incentive Stock Options under Section 6.4, a United States or foreign corporation or partnership or other similar entity with respect to
which the Company owns, directly or indirectly, 50% (or such lesser percentage as the Committee may specify, which percentage may be changed from time to time and may be different for different entities) or more of the voting power of such entity.

 2.2 “Award” means Options (including non-qualified options and Incentive Stock Options), Restricted Shares, Restricted Share
Units, Bonus Shares, Stock Appreciation Rights, Limited Stock Appreciation Rights, Performance Units (which may be paid in cash or Shares), Performance Shares, Deferred Stock, Dividend Equivalents, or Other Stock-Based Awards granted under the Plan.

 2.3 “Award Agreement” means the written agreement (which may be in paper or electronic form as determined by the Committee) by
which an Award shall be evidenced. 
 2.4 “Board” means the Board of Directors of the Company. 

2.5 “Cause” (i) means unless otherwise defined in an Award Agreement, 

(i) before the occurrence of a Change of Control, any one or more of the following, as determined by the Committee: 

(A) a Grantee’s commission of a crime which, in the judgment of the Committee, resulted or is likely to result in damage
or injury, financial or otherwise, to the Company or an Affiliate; 
 (B) the material violation by the Grantee of written
policies of the Company or an Affiliate; 
 (C) the habitual neglect or failure by the Grantee in the performance of his or
her duties to the Company or an Affiliate (but only if such neglect or failure is not remedied within a reasonable remedial period after Grantee’s receipt of written notice from the Company which describes such neglect or failure in reasonable
detail and specifies the remedial period); or 
 (D) action or inaction by the Grantee in connection with his or her duties
to the Company or an Affiliate resulting, in the judgment of the Committee, in material injury to the Company or an Affiliate; and 
 (ii)
from and after the occurrence of a Change of Control, the occurrence of any one or more of the following, as determined in the good faith and reasonable judgment of the Committee: 

(A) Grantee’s conviction for committing an act of fraud, embezzlement, theft, or any other act constituting a felony
involving moral turpitude or causing material damage or injury, financial or otherwise, to the Company; 

  
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 (B) a demonstrably willful and deliberate act or failure to act which is
committed in bad faith, without reasonable belief that such action or inaction is in the best interests of the Company, which causes material damage or injury, financial or otherwise, to the Company (but only if such act or inaction is not remedied
within 15 business days of Grantee’s receipt of written notice from the Company which describes the act or inaction in reasonable detail); or 

(C) the consistent gross neglect of duties or consistent wanton negligence by the Grantee in the performance of the
Grantee’s duties (but only if such neglect or negligence is not remedied within a reasonable remedial period after Grantee’s receipt of written notice from the Company which describes such neglect or negligence in reasonable detail and
specifies the remedial period). 
 2.6 “Change of Control”, unless otherwise defined in the Award Agreement, shall be deemed to
have occurred if 
 (i) a majority of the members of the Board is replaced during any twelve (12) month period with directors whose
appointment or election was not endorsed by a majority of the members of the Board in office immediately prior to the date of such appointment or election; or 

(ii) any “person” (meaning for purposes of this Section 2.6 person as such term is used in Sections 13(d) and 14(d) of the
Exchange Act to the extent consistent with and not in violation of Code Section 409A) or “group” (meaning for purposes of this Section 2.6 group as such term is used in Section 13(d)(3) or 14(d)(2) of the 1934 Act to the
extent consistent with and not in violation of Code Section 409A) has acquired during a twelve (12) month period ending on the date of the most recent acquisition by such person or group, ownership of stock of the Company possessing 30% or
more of the total voting power of the outstanding stock of the Company; or 
 (iii) any person or group has acquired ownership of stock of
the Company that constitutes more than 50% of the total fair market value or total voting power of the outstanding stock of the Company; or 

(iv) any person or group has acquired during a twelve (12) month period ending on the date of the most recent acquisition by such person
or group, assets of the Company that have a total gross fair market value of more than 40% of the total gross fair market value of all of the assets of the Company immediately before such acquisition. 

2.7 “Code” means the Internal Revenue Code of 1986 (and any successor Internal Revenue Code), as amended from time to time.
References to a particular section of the Code include references to regulations and rulings thereunder and to successor provisions. 
 2.8
“Code Section 409A Rules and Policies” means rules, regulations, policies and procedures established by the Committee from time to time as authorized in Section 3.2(xi). 

2.9 “Committee” has the meaning set forth in Section 3.1(i). 

  
 3 

 2.10 “Common Stock” means the common stock, $0.01 par value per share, of the Company.

 2.11 “Company” has the meaning set forth in Section 1.1. 

2.12 “Covered Employee” means a Grantee who, as of the last day of the fiscal year in which the value of an Award is deductible by
the Company for federal income tax purposes subject to applicable limitations under Code Section 162(m), is one of the group of “covered employees,” within the meaning of Code Section 162(m), with respect to the Company. 

2.13 “Deferred Stock” means a right granted under Section 11.1 to receive Shares at the end of a specified deferral period.

 2.14 “Disability” means, unless otherwise defined in an Award Agreement, the inability to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months. 

2.15 “Dividend Equivalent” means a right to receive payments equal to dividends or property, if and when paid or distributed, on
Shares. 
 2.16 “Eligible Person” means any employee (including any officer) or non-employee director of, or non-employee
consultant to, the Company or any Affiliate, or potential employee (including a potential officer) or non-employee director of, or non-employee consultant to, the Company or an Affiliate. Solely for purposes of Section 5.5(ii), the term
Eligible Employee includes any current or former employee or non-employee director of, or consultant to, an Acquired Entity (as defined in Section 5.5(ii)) who holds Acquired Entity Awards (as defined in Section 5.5(ii)) immediately prior
to the Acquisition Date (as defined in Section 5.5(ii)). 
 2.17 “Exchange Act” means the Securities Exchange Act of 1934, as
amended from time to time. References to a particular section of the Exchange Act include references to successor provisions. 
 2.18
“Fair Market Value” means (a) with respect to any property other than Shares, the fair market value of such property determined by such methods or procedures as shall be established from time to time by the Committee, and
(b) with respect to Shares, unless otherwise determined by the Committee as of any date, (i) if the Shares are listed for trading on the New York Stock Exchange, the closing sale price of the Shares on such date, as reported on the New
York Stock Exchange Composite Tape or such other source as the Committee deems reliable, or if no such reported sale of the Shares shall have occurred on such date, on the last day prior to such date on which there was such a reported sale;
(ii) if the Shares are not so listed, but is listed on another national securities exchange, the closing sale price of the Shares on such date as reported on such exchange, or if no such reported sale of the Shares shall have occurred on such
date, on the last day prior to such date on which there was such a reported sale; (iii) if the Shares are not listed for trading on a national securities exchange but nevertheless are publicly traded and reported (through the OTC Bulletin Board
or otherwise), the closing sale price of the Shares on such date, or if no such reported sale of the Shares shall have occurred on such date, on the last day prior to such date on which there was such a reported sale; or (iv) if the Shares are
not publicly traded and reported, the fair market value as established in good faith by the Committee. 

  
 4 

 2.19 “Grant Date” means the date on which an Award is granted or such later date as
specified in advance by the Committee. 
 2.20 “Grantee” means a person who has been granted an Award. 

2.21 “Incentive Stock Option” means an Option that is intended to meet the requirements of Section 422 of the Code. 

2.22 “including” or “includes” means “including, without limitation,” or “includes, without
limitation,” respectively. 
 2.23 “Limited Stock Appreciation Right” has the meaning set forth in Section 7.1. 

2.24 “Minimum Consideration” means $.01 per Share or such other amount that is from time to time considered to be capital for
purposes of Section 154 of the Delaware General Corporation Law. 
 2.25 “Other Stock-Based Award” means a right, granted
under Article 13 hereof, that relates to or is valued by reference to Shares or other Awards relating to Shares. 
 2.26 “Option”
means an option granted under Article 6 of the Plan. 
 2.27 “Option Price” means the price at which a Share may be purchased by a
Grantee pursuant to an Option. 
 2.28 “Option Term” means the period beginning on the Grant Date of an Option and ending on the
date such Option expires, terminates or is cancelled. 
 2.29 “Performance-Based Exception” means the performance-based exception
from the tax deductibility limitations of Code Section 162(m) contained in Code Section 162(m)(4)(C) (including the special provisions for options thereunder). 

2.30 “Performance Measures” has the meaning set forth in Section 4.4. 

2.31 “Performance Period” means the time period during which performance goals must be met. 

2.32 “Performance Share” and “Performance Unit” have the respective meanings set forth in Article 9. 

2.33 “Period of Restriction” means the period during which, if conditions specified in the Award Agreement are not satisfied,
Restricted Shares are subject to forfeiture, or the transfer of Restricted Shares is limited, or both. 
 2.34 “Person” means any
individual, sole proprietorship, partnership, joint venture, limited liability company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, entity or government instrumentality, division, agency,
body or department. 

  
 5 

 2.35 “Restricted Shares” means Shares that are both subject to forfeiture and are
nontransferable if the Grantee does not satisfy the conditions specified in the Award Agreement applicable to such Shares. 
 2.36
“Restricted Share Units” means rights to receive Shares which rights are forfeitable if the Grantee does not satisfy the conditions specified in the Award Agreement. 

2.37 “Retirement” means for any Grantee who is an employee, except as otherwise specified in the Award Agreement or as specified by
the Committee in rules, regulations or policies, with respect to Restricted Shares, Termination of Affiliation by the Grantee on or after the last business day of the month in which the Grantee has both attained age fifty-five (55) and
completed at least ten (10) years of service with the Company or an Affiliate, and with respect to all other Awards, Termination of Affiliation by the Grantee on or after having both attained age fifty-five (55) and completed at least ten
(10) years of service with the Company or an Affiliate. 
 2.38 “Rule 16b-3” means Rule 16b-3 promulgated by the SEC under
the Exchange Act, as amended from time to time, together with any successor rule, as in effect from time to time. 
 2.39 “SEC”
means the United States Securities and Exchange Commission, or any successor thereto. 
 2.40 “Section 16 Non-Employee Director”
means a member of the Board who satisfies the requirements to qualify as a “non-employee director” under Rule 16b-3. 
 2.41
“Section 16 Person” means a person who is subject to potential liability under Section 16(b) of the Exchange Act with respect to transactions involving equity securities of the Company. 

2.42 “Share” means a share of Common Stock, and such other securities of the Company as may be substituted or resubstituted for
Shares pursuant to Section 4.2 hereof. 
 2.43 “Stock Appreciation Right” or “SAR” means a right granted to an
Eligible Person pursuant to Article 7 to receive, upon exercise by the Grantee, an amount equal to the number of Shares with respect to which the SAR is granted multiplied by the excess of (i) the Fair Market Value of one Share on the date of
exercise or, if the Committee shall so determine in the case of any such right other than one related to any Incentive Stock Option, at any time during a specified period before the date of exercise provided the Fair Market Value of one Share on
such date is less than the Fair Market Value of one Share on the date of exercise, over (ii) the grant price of the right as specified in the Award Agreement. 

2.44 “Surviving Company” means the Company or the surviving corporation in any merger or consolidation, including the Company if the
Company is the surviving corporation, or the direct or indirect parent company of the Company or such surviving corporation following a Change of Control. 

  
 6 

 2.45 “Termination of Affiliation” occurs, except where otherwise provided in the Award
Agreement, on the first day on which an individual is for any reason no longer providing services to the Company or an Affiliate in the capacity of an employee, officer, consultant or non-employee director or with respect to an individual who is an
employee, officer or non-employee director of or a consultant to an Affiliate, the first day on which such entity ceases to be an Affiliate of the Company. A Termination of Affiliation will occur on account of, or by reason of, a Change of Control
if within two (2) years (or such other period specified in the Award Agreement) following the Change of Control the Grantee is involuntarily terminated by the Company or an Affiliate (other than for Cause) or voluntarily terminates employment
for good reason as set forth in the Award Agreement. Where specified in the Award Agreement or in the Code Section 409A Rules and Policies, a Termination of Affiliation is a separation from service within the meaning of Code Section 409A.

 2.46 “Vesting Date” means a date specified in the Award Agreement on which the Award will become nonforfeitable subject to any
conditions specified therein. 
 ARTICLE 3. 

ADMINISTRATION 
 3.1
Committee. 
 (i) Subject to Section 3.2, the Plan shall be administered by a committee (“Committee”), the members of
which shall be appointed by the Board from time to time and may be removed by the Board from time to time; provided that for purposes of Awards to non-employee directors, “Committee” shall mean the full Board. The Committee shall consist
of two or more directors of the Company, all of whom qualify as “outside directors” within the meaning of Code Section 162(m) and Section 16 Non-Employee Directors and all of whom qualify as independent under the New York Stock
Exchange listing standards and under the listing standards of any other exchange on which the Company’s securities are listed as in effect at any applicable time. The number of members of the Committee shall from time to time be increased or
decreased, and shall be subject to such conditions, in each case if and to the extent the Board deems it appropriate, including to permit transactions in Shares pursuant to the Plan to satisfy such conditions of Rule 16b-3 and the Performance-Based
Exception as then in effect. 
 (ii) The Committee may delegate to the Chief Executive Officer of the Company or to another committee of the
Company any or all of the authority of the Committee with respect to Awards to Grantees, other than Grantees who are non-employee directors, executive officers, or are (or are expected to be) Covered Employees and/or are Section 16 Persons at
the time any such delegated authority is exercised, to the extent such delegation is permissible under Delaware law. 
 3.2 Powers of
Committee. Subject to and consistent with the provisions of the Plan, the Committee has full and final authority and sole discretion as follows: 

(i) to determine when, to whom and in what types and amounts Awards should be granted; 

  
 7 

 (ii) to grant Awards in any number, and to determine the terms and conditions applicable to each
Award (including the number of Shares or the amount of cash or other property to which an Award will relate, any exercise price, grant price or purchase price, any limitation or restriction, any schedule for or performance conditions relating to the
earning of the Award or the lapse of limitations, forfeiture restrictions, restrictions on exercisability or transferability, any performance goals including those relating to the Company and/or an Affiliate and/or any division or department thereof
and/or an individual, and/or vesting based on the passage of time, based in each case on such considerations as the Committee shall determine); 

(iii) to determine the benefit payable under any Performance Unit, Performance Share, Dividend Equivalent, or Other Stock-Based Award and to
determine whether any performance or vesting conditions have been satisfied; 
 (iv) to determine whether or not specific Awards shall be
granted in connection with other specific Awards, and if so, whether they shall be exercisable cumulatively with, or alternatively to, such other specific Awards and all other matters to be determined in connection with an Award; 

(v) to determine the Option Term and the SAR term; 

(vi) to determine the amount, if any, that a Grantee shall pay for Restricted Shares, whether to permit or require the payment of cash
dividends thereon to be deferred and the terms related thereto, when Restricted Shares (including Restricted Shares acquired upon the exercise of an Option) shall be forfeited, and whether such shares shall be held in escrow; 

(vii) to determine whether, to what extent and under what circumstances an Award may be settled in, or the exercise price of an Award may be
paid in, cash, Shares, other Awards or other property, or an Award may be accelerated, vested, canceled, forfeited or surrendered or any terms of the Award may be waived, and to accelerate the exercisability of, and to accelerate or waive any or all
of the terms and conditions applicable to, any Award or any group of Awards for any reason; 
 (viii) to determine with respect to Awards
whether, to what extent and under what circumstances cash, Shares, other Awards, other property and other amounts payable with respect to an Award will be deferred, either at the election of the Grantee or if and to the extent specified in the Award
Agreement automatically or at the election of the Committee (whether to limit loss of deductions pursuant to Code Section 162(m) or otherwise); 

(ix) to offer to exchange or buy out any previously granted Award for a payment in cash, Shares or other Award; 

(x) to construe and interpret the Plan and to make all determinations, including factual determinations, necessary or advisable for the
administration of the Plan; 
 (xi) to make, amend, suspend, waive and rescind rules, regulations, policies and procedures relating to the
Plan, including rules relating to electronic Award Agreements, rules with respect to the exercisability and nonforfeitability of Awards upon the Termination of Affiliation of a Grantee, and rules (including special definitions where applicable)
established for the compliance of the Plan, Awards and Award Agreements with Code Section 409A; 

  
 8 

 (xii) to appoint such agents as the Committee may deem necessary or advisable to administer the
Plan; 
 (xiii) to determine the terms and conditions of all Award Agreements (which need not be identical) and, with the consent of the
Grantee, to amend any such Award Agreement at any time, among other things, to change the Option Price or grant price for an SAR or to permit transfers of such Awards to the extent permitted by the Plan; provided that the consent of the Grantee
shall not be required for any amendment (i) which does not adversely affect the rights of the Grantee, or (ii) which is necessary or advisable (as determined by the Committee) to carry out the purpose of the Award as a result of any new
applicable law or change in an existing applicable law, or (iii) to the extent the Plan or Award Agreement specifically permits amendment without consent; 

(xiv) to cancel, with the consent of the Grantee, outstanding Awards and to grant new Awards in substitution therefor; 

(xv) to impose such additional terms and conditions upon the grant, exercise or retention of Awards as the Committee may, before or
concurrently with the grant thereof, deem appropriate, including limiting the percentage of Awards which may from time to time be exercised by a Grantee; 

(xvi) to make such adjustments or modifications to Awards to Grantees working outside the United States as are advisable to fulfill the
purposes of the Plan or to comply with applicable local law and to establish sub-plans for Eligible Persons outside the United States with such provisions as are consistent with the Plan as may be suitable in other jurisdictions; 

(xvii) to make adjustments in the terms and conditions of, and the criteria in, Awards in recognition of unusual or nonrecurring events
(including events described in Section 4.2) affecting the Company or an Affiliate or the financial statements of the Company or an Affiliate, or in response to changes in applicable laws, regulations or accounting principles; provided, however,
that in no event shall such adjustment increase the value of an Award for a person expected to be a Covered Employee for whom the Committee desires to have the Performance-Based Exception apply; 

(xviii) to correct any defect or supply any omission or reconcile any inconsistency, and to construe and interpret the Plan, the rules and
regulations, and Award Agreement or any other instrument entered into or relating to an Award under the Plan; and 
 (xix) to take any other
action with respect to any matters relating to the Plan for which it is responsible and to make all other decisions and determinations as may be required under the terms of the Plan or as the Committee may deem necessary or advisable for the
administration of the Plan. 
 Notwithstanding the authority of the Committee set forth in Sections 3.2(i) through 3.2(xix), inclusive, and
notwithstanding any other discretionary power granted to the Committee 

  
 9 

 
under the Plan, except in connection with a corporate transaction involving the Company (including, without limitation, any stock dividend, stock split, extraordinary cash dividend,
recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination, or exchange of shares), the terms of outstanding Awards may not be amended to reduce the exercise price of outstanding Options or SARs or cancel outstanding
Options or SARs in exchange for cash, other Awards or Options or SARs with an exercise price that is less than the exercise price of the original Options or SARs without the prior approval of the Company’s stockholders. 

All determinations on all matters relating to the Plan or any Award Agreement may be made in the sole and absolute discretion of the
Committee. If not specified in the Plan, the time at which the Committee must or may make any determination shall be determined by the Committee, and any such determination may thereafter be modified by the Committee. Any action of the Committee
with respect to the Plan or any Award Agreement shall be final, conclusive and binding on all persons, including the Company, its Affiliates, any Grantee, any person claiming any rights under the Plan from or through any Grantee, and stockholders,
except to the extent the Committee subsequently modifies its prior action or takes further action that is inconsistent with its prior action. The express grant of any specific power to the Committee, and the taking of any action by the Committee,
shall not be construed as limiting any power or authority of the Committee. The Committee may delegate to officers or managers of the Company or any Affiliate the authority, subject to such terms as the Committee shall determine, to perform
specified functions under the Plan (subject to Sections 4.3 and 5.6(iii)). No member of the Committee shall be liable for any action or determination made with respect to the Plan or any Award. 

ARTICLE 4. 
 SHARES
SUBJECT TO THE PLAN, MAXIMUM AWARDS, AND 162(M) COMPLIANCE 
 4.1 Number of Shares Available for Grants. Subject to adjustment as
provided in Section 4.2, the number of Shares hereby reserved for issuance under the Plan shall be 2,300,000; and the number of Shares for which Awards may be granted to any Grantee on any Grant Date, when aggregated with the number of Shares
for which Awards have previously been granted to such Grantee in the same calendar year, shall not exceed 2,000,000 Shares. Shares issued pursuant to Awards made pursuant to Section 5.5(ii) will not be charged against the Shares authorized for
issuance under the Plan. 
 Only Shares actually issued shall be charged against the Shares authorized for issuance under the Plan. If any
Shares subject to an Award granted hereunder are forfeited or such Award otherwise terminates without the delivery of such Shares, the Shares subject to such Award, to the extent of any such forfeiture or termination, shall again be available for
grant under the Plan. 
 The Committee shall from time to time determine the appropriate methodology for calculating the number of Shares to
which an Award relates pursuant to the Plan. Shares delivered pursuant to the Plan may be, in whole or in part, authorized and unissued Shares, or treasury Shares, including Shares repurchased by the Company for purposes of the Plan. 

  
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 4.2 Adjustments in Authorized Shares and Awards; Liquidation, Dissolution or Change of
Control. 
 (i) Adjustment in Authorized Shares and Awards. In the event that the Committee determines that any extraordinary
dividend or other distribution (whether in the form of cash, Shares, or other property), recapitalization, forward or reverse stock split, subdivision, consolidation or reduction of capital, reorganization, merger, consolidation, scheme of
arrangement, split-up, spin-off or combination involving the Company or repurchase or exchange of Shares or other securities of the Company or other rights to purchase Shares or other securities of the Company, or other similar corporate transaction
or event affects the Shares such that any adjustment is determined by the Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee
shall, in such manner as it may deem equitable, and in a manner consistent with and not in violation of Code Section 409A, adjust any or all of (a) the number and type of Shares (or other securities or property) with respect to which
Awards may be granted, (b) the number and type of Shares (or other securities or property) subject to outstanding Awards, (c) the grant or exercise price with respect to any Award or, if deemed appropriate, make provision for a cash
payment to the holder of an outstanding Award, (d) the number and kind of Shares of outstanding Restricted Shares or relating to any other outstanding Award in connection with which Shares are subject, and (e) the number of Shares with
respect to which Awards may be granted to a Grantee, as set forth in Section 4.3; provided, in each case, that with respect to Stock Options and SARs, no such adjustment shall be authorized to the extent that such adjustment would cause the
Option or SAR (determined as if such Option or SAR was an Incentive Stock Option) to violate Section 424(a) of the Code; and provided further that the number of Shares subject to any Award denominated in Shares shall always be a whole number.

 (ii) Liquidation, Dissolution or Change of Control. Notwithstanding any provisions hereunder to the contrary, in the case of any
liquidation, dissolution or Change of Control of the Company, the Committee, in its sole discretion, and in a manner consistent with and not in violation of Code Section 409A, may (i) cancel any or all outstanding Awards of Options, SARs,
Performance Shares, Performance Units and Restricted Share Units, in exchange for a payment (in cash, or in securities or other property) in the amount that the Grantee would have received if such Performance Shares, Performance Units and Restricted
Share Units were vested and settled and if such Options and SARs were fully vested and exercised immediately prior to the liquidation, dissolution or Change of Control, and without payment with respect to the cancellation of any Option or SAR if at
the time of such cancellation the Option Price with respect to such Option or the grant price with respect to such SAR exceeds the Fair Market Value at the time of such cancellation of the Shares subject to the Option or the SAR,
(ii) accelerate the vesting of any Restricted Shares immediately prior to the Change of Control, and (iii) accelerate the vesting and settlement of any Deferred Stock immediately prior to such Change of Control, reduced in each case by any
applicable Federal, state and local taxes required to be withheld by the Company. If the Committee fails to exercise the discretion to cancel some or all outstanding Awards (or in the case of Restricted Shares and Deferred Stock to accelerate
vesting and settlement of such Awards) in connection with a liquidation, dissolution or Change of Control of the Company pursuant to this Section 4.2(ii), any Awards for which the Committee fails to exercise such discretion shall remain
outstanding (subject to adjustment in accordance with Section 4.2(i)) following such liquidation, dissolution or Change of Control of the Company. 

  
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 4.3 Compliance with Section 162(m) of the Code. 

(i) Section 162(m) Compliance. To the extent the Committee determines that compliance with the Performance-Based Exception is
desirable with respect to an Award, this section 4.3(i) shall apply. Each Award that is intended to meet the Performance-Based Exception and is granted to a person the Committee believes is likely to be a
Covered Employee at the time such Award is settled shall comply with the requirements of the Performance-Based Exception; provided, however, that to the extent Code Section 162(m) requires periodic stockholder approval of performance measures,
such approval shall not be required for the continuation of the Plan or as a condition to grant any Award hereunder after such approval is required. In addition, in the event that changes are made to Code Section 162(m) to permit flexibility
with respect to the Award or Awards available under the Plan, the Committee may, subject to this Section 4.3, make any adjustments to such Awards as it deems appropriate. 

(ii) Annual Individual Limitations. No Grantee may be granted Awards for Options, SARs, Restricted Shares, Restricted Share Units, or
Performance Shares (or any other Award which is determined by reference to the value of Shares or appreciation in the value of Shares) in any calendar year with respect to more than 2,000,000 Shares; provided, however, that these Awards are subject
to adjustment as provided in Section 4.2 and except as otherwise provided in Section 5.5(ii). In the case of a Performance Unit Award that is cash-denominated and for which the limitation set forth in the preceding sentence would not
operate as an effective limitation under Code Section 162(m), no Grantee may be granted an Award in any calendar year authorizing the receipt of an amount that exceeds $5,000,000. 

4.4 Performance-Based Exception Under Section 162(m). Unless and until the Committee proposes for stockholder vote and
stockholders approve a change in the general performance measures set forth in this Section 4.4, for Awards (other than Options and SARs) designed to qualify for the Performance-Based Exception, the objective Performance Measure(s) shall be
chosen from among the following: 
 (i) Earnings (either in the aggregate or on a per-share basis); 

(ii) Net income (before or after taxes); 

(iii) Operating income; 
 (iv)
Cash flow; 
 (v) Return measures (including return on assets, equity, or sales); 

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

(vii) Gross revenues; 

  
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 (viii) Share price (including growth measures and stockholder return or attainment by the Shares
of a specified value for a specified period of time); 
 (ix) Reductions in expense levels in each case, where applicable, determined either
on a Company-wide basis or in respect of any one or more business units; 
 (x) Net economic value; 

(xi) Market share; 
 (xii)
Operating profit; 
 (xiii) Costs; 

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

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

(xvi) Economic value added; 

(xvii) Aggregate product unit and pricing targets; 

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

(xix) Achievement of business or operational goals such as market share and/or business development; 

(xx) Results of customer satisfaction surveys; 

(xxi) Safety record; 
 (xxii)
Network and service reliability; 
 (xxiii) Debt ratings, debt leverage and debt service; and/or 

(xxiv) Operating ratio; 
 provided that
applicable performance measures may be applied on a pre- or post-tax basis; and provided further that the Committee may, on the Grant Date of an Award intended to comply with the Performance-Based Exception, and in the case of other grants, at any
time, provide that the formula for such Award may include or exclude items to measure specific objectives, such as losses from discontinued operations, extraordinary gains or losses, the cumulative effect of accounting changes, acquisitions or
divestitures, foreign exchange impacts and any unusual, nonrecurring gain or loss. For Awards intended to comply with the Performance-Based Exception, the Committee shall set the Performance Measures within the time period prescribed

  
 13 

 
by Section 162(m) of the Code. The levels of performance required with respect to Performance Measures may be expressed in absolute or relative levels and may be based upon a set increase,
set positive result, maintenance of the status quo, set decrease or set negative result. Performance Measures may differ for Awards to different Grantees. The Committee shall specify the weighting (which may be the same or different for multiple
objectives) to be given to each performance objective for purposes of determining the final amount payable with respect to any such Award. Any one or more of the Performance Measures may apply to the Grantee, a department, unit, division or function
within the Company or any one or more Affiliates; and may apply either alone or relative to the performance of other businesses or individuals (including industry or general market indices) or relative to the past performance of the Company or a
department, unit, division or function within the Company or any one or more Affiliates. 
 The Committee shall have the discretion to
adjust the determinations of the degree of attainment of the pre-established performance goals; provided, however, that Awards which are designed to qualify for the Performance-Based Exception may not (unless the Committee determines to amend the
Award so that it no longer qualified for the Performance-Based Exception) be adjusted upward (the Committee shall retain the discretion to adjust such Awards downward). The Committee may not, unless the Committee determines to amend the Award so
that it no longer qualifies for the Performance-Based Exception, delegate any responsibility with respect to Awards intended to qualify for the Performance-Based Exception. All determinations by the Committee as to the achievement of the Performance
Measure(s) shall be in writing prior to payment of the Award. 
 In the event that applicable laws change to permit Committee discretion to
alter the governing performance measures without obtaining stockholder approval of such changes, and still qualify for the Performance-Based Exception, the Committee shall have sole discretion to make such changes without obtaining stockholder
approval. 
 ARTICLE 5. 

ELIGIBILITY AND GENERAL CONDITIONS OF AWARDS 

5.1 Eligibility. The Committee may in its discretion grant Awards to any Eligible Person, whether or not he or she has previously
received an Award. 
 5.2 Award Agreement. To the extent not set forth in the Plan, the terms and conditions of each Award shall be
set forth in an Award Agreement. 

  
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 5.3 General Terms, Termination of Affiliation and Change of Control. Except as provided in
an Award Agreement or as otherwise provided below in this Section 5.3, all Options or SARs that have not been exercised, or any other Awards that remain subject to a risk of forfeiture or which are not otherwise vested, or which have
outstanding Performance Periods, at the time of a Termination of Affiliation shall be forfeited to the Company. The Committee may impose such restrictions on any Shares acquired pursuant to the exercise or vesting of an Award as it may deem
advisable, including restrictions under applicable federal securities laws. 
 (i) Options and SARs. Except as otherwise provided in
an Award Agreement: 
 (A) If Termination of Affiliation occurs for a reason other than Retirement, death, Disability or
Cause, Options and SARs which were vested and exercisable immediately before such Termination of Affiliation, or become exercisable upon such Termination of Affiliation, shall remain exercisable for a period of three (3) months following such
Termination of Affiliation (but not for more than ten (10) years from the Grant Date of the Award or expiration of the Option Term, if earlier) and shall then terminate. 

(B) With respect to Options and SARs granted prior to the Restated Effective Date, if Termination of Affiliation occurs by
reason of Retirement, Options and SARs will become immediately vested and exercisable upon such Termination of Affiliation and shall remain exercisable for a period of five (5) years following such Termination of Affiliation (but not more than
ten (10) years from the Grant Date of the Award or expiration of the Option Term, if earlier) and shall then terminate. For Options and SARs granted on or after the Restated Effective Date, if Termination of Affiliation occurs by reason of
Retirement, Options and SARs will become immediately vested upon such Termination of Affiliation and shall remain exercisable until expiration of the Option Term or exercise period and shall then terminate 

(C) If Termination of Affiliation occurs by reason of death or Disability, Options and SARs will become immediately vested and
exercisable upon such Termination of Affiliation and shall remain exercisable for a period of one (1) year following such Termination of Affiliation (but not for more than ten (10) years from the Grant Date of the Award or expiration of
the Option Term, if earlier) and shall then terminate. 
 (D) If Termination of Affiliation occurs on account of a Change of
Control, any unexercised Option or SAR, whether or not exercisable on the date of the Change of Control, shall thereupon be fully exercisable and may be exercised, in whole or in part, subject to the provisions of Section 5.3(i)(A). 

(E) If Termination of Affiliation is for Cause, then any unexercised Option or SAR shall be thereupon cancelled. 

(ii) Restricted Shares and Restricted Share Units. Except as otherwise provided in an Award Agreement: 

(A) If Termination of Affiliation occurs by reason of death prior to the last day of the Period of Restriction, Restricted
Shares and Restricted Share Units will become immediately vested. 
 (B) If Termination of Affiliation occurs by reason of
Retirement prior to the last day of the Period of Restriction, then upon such Termination of Affiliation the Grantee will become immediately vested in a number of 

  
 15 

 
the Grantee’s Restricted Shares and Restricted Share Units which will be determined by multiplying the total number of the Grantee’s Restricted Shares and Restricted Share Units by a
fraction, the numerator of which shall be the number of consecutive 12-month periods of employment completed by the Grantee with the first such period commencing on the Grant Date, and the denominator of which shall be the total number of 12-month
periods in the Period of Restriction. Any Restricted Shares and Restricted Share Units that remain unvested following such Termination of Affiliation shall be forfeited by the Grantee. 

(C) If Termination of Affiliation occurs by reason of Disability prior to the last day of the Period of Restriction, then upon
such Termination of Affiliation the Grantee will become immediately vested in a number of the Grantee’s Restricted Shares and Restricted Share Units which will be determined by multiplying the total number of the Grantee’s Restricted
Shares and Restricted Share Units by a fraction, the numerator of which shall be the number of consecutive 12-month periods of employment completed by the Grantee with the first such period commencing on the Grant Date, and the denominator of which
shall be the total number of 12-month periods in the Period of Restriction. Any Restricted Shares and Restricted Share Units that remain unvested following such Termination of Affiliation shall be forfeited by the Grantee. 

(D) If Termination of Affiliation occurs prior to the last day of the Period of Restriction on account of a Change of Control,
Restricted Shares and Restricted Share Units will become immediately vested. 
 (E) If Termination of Affiliation occurs
prior to the last day of the Period of Restriction for any reason other than death or Disability or Retirement or a Change of Control, all Restricted Shares and Restricted Share Units shall be forfeited by the Grantee. 

(F) Any Restricted Shares that are forfeited by the Grantee shall be reacquired by the Company, and the Grantee shall sign any
document and take any other action required to assign such Shares back to the Company. 
 (iii) Deferred Stock. Except as otherwise
provided in an Award Agreement: 
 (A) If Termination of Affiliation occurs by reason of death or Disability or Retirement or
a Change of Control, Shares subject to a Deferred Stock Award will become immediately vested. The Company shall settle all Deferred Stock as provided in the Award Agreement. 

(B) If Termination of Affiliation occurs by reason other than death or Disability or Retirement or a Change of Control, the
Grantee’s Deferred Stock, to the extent not vested before such Termination of Affiliation, will be cancelled and forfeited to the Company. 

  
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 (iv) Performance Shares and Performance Units. Except as otherwise provided in an Award
Agreement, Performance Shares and Performance Units will become nonforfeitable on the Vesting Date, and if, prior to the Vesting Date, 

(A) A Termination of Affiliation occurs during a Performance Period for a reason other than Disability, Retirement, Change of
Control or death, all Performance Shares and Performance Units shall be forfeited upon such Termination of Affiliation. 

(B) A Termination of Affiliation occurs during a Performance Period by reason of Disability or Retirement, the Grantee shall
become vested immediately in the Award earned with respect to any completed Performance Period as of the date of the Grantee’s Termination of Affiliation, and will forfeit the Award with respect to any Performance Periods that are not completed
as of the date of the Grantee’s Termination of Affiliation. 
 (C) A Termination of Affiliation occurs on account of a
Change of Control or by reason of death, the Grantee shall become immediately vested in the earned Award with respect to any completed Performance Period as of the date of the Grantee’s Termination of Affiliation, and with respect to any
Performance Period that is not complete as of the date of Grantee’s Termination of Affiliation, the Grantee will vest in the Award that would be earned for such Performance Period as if the performance goals for such Performance Period were met
at target. 
 (v) Dividend Equivalents. If Dividend Equivalents have been credited with respect to any Award and such Award (in whole
or in part) is forfeited, all Dividend Equivalents issued in connection with such forfeited Award (or portion of an Award) shall also be forfeited to the Company. 

(vi) Waiver by Committee. Notwithstanding the foregoing provisions of this Section 5.3, the Committee may in its sole discretion
as to all or part of any Award as to any Grantee, at the time the Award is granted or thereafter, determine that Awards shall become exercisable or vested upon a Termination of Affiliation, determine that Awards shall continue to become exercisable
or vested in full or in installments after Termination of Affiliation, extend the period for exercise of Options or SARs following Termination of Affiliation (but not beyond ten (10) years from the date of grant of the Option or SAR), or
provide that any Restricted Share Award, Deferred Stock Award or Performance Award shall in whole or in part not be forfeited upon such Termination of Affiliation. 

5.4 Nontransferability of Awards. 

(i) Each Award and each right under any Award shall be exercisable only by the Grantee during the Grantee’s lifetime, or, if permissible
under applicable law, by the Grantee’s guardian or legal representative or by a transferee receiving such Award pursuant to a qualified domestic relations order (a “QDRO”) as defined in the Code or Title I of the Employee Retirement
Income Security Act of 1974, as amended, or the rules thereunder or by an agent acting exclusively for the benefit of the Grantee pursuant to a power of attorney. Nothing herein shall be construed as requiring the Committee to honor a QDRO except to
the extent required under applicable law. 

  
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 (ii) No Award (prior to the time, if applicable, Shares are delivered in respect of such Award),
and no right under any Award, may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Grantee otherwise than by will or by the laws of descent and distribution (or in the case of Restricted Shares, to the
Company) or pursuant to a QDRO, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate; provided that the designation of a beneficiary to
receive benefits in the event of the Grantee’s death shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. 

(iii) Notwithstanding subsections (i) and (ii) above, to the extent provided in the Award Agreement, Deferred Stock and Awards other
than Incentive Stock Options, may be transferred, without consideration, to a Permitted Transferee. For this purpose, a “Permitted Transferee” in respect of any Grantee means any member of the Immediate Family of such Grantee, any trust of
which all of the primary beneficiaries are such Grantee or members of his or her Immediate Family, or any partnership (including limited liability companies and similar entities) of which all of the partners or members are such Grantee or members of
his or her Immediate Family; and the “Immediate Family” of a Grantee means the Grantee’s spouse, children, stepchildren, grandchildren, parents, stepparents, siblings, grandparents, nieces and nephews or the spouse of any of the
foregoing individuals. Such Award may be exercised by such transferee in accordance with the terms of such Award. If so determined by the Committee, a Grantee may, in the manner established by the Committee, designate a beneficiary or beneficiaries
to exercise the rights of the Grantee, and to receive any distribution with respect to any Award upon the death of the Grantee. A transferee, beneficiary, guardian, legal representative or other person claiming any rights under the Plan from or
through any Grantee shall be subject to the provisions of the Plan and any applicable Award Agreement, except to the extent the Plan and Award Agreement otherwise provide with respect to such persons, and to any additional restrictions or
limitations deemed necessary or appropriate by the Committee. 
 5.5 Stand-Alone, Tandem and Substitute Awards. 

(i) Awards granted under the Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in
substitution for, any other Award granted under the Plan or any award or benefit granted by the Company or any Affiliate under any other plan, program, arrangement, contract or agreement (a “Non-Plan Award”); provided that if the
stand-alone, tandem or substitute Award is intended to qualify for the Performance-Based Exception, it must separately satisfy the requirements of the Performance-Based Exception. If an Award is granted in substitution for another Award or any
Non-Plan Award, the Committee shall require the surrender of such other Award or Non-Plan Award in consideration for the grant of the new Award. Awards granted in addition to or in tandem with other Awards or Non-Plan Awards may be granted either at
the same time as or at a different time from the grant of such other Awards or Non-Plan Awards. 
 (ii) The Committee may, in its discretion
and on such terms and conditions as the Committee considers appropriate in the circumstances, grant Awards under the Plan (“Substitute Awards”) in substitution for stock and stock-based awards (“Acquired Entity Awards”) held by
current and former employees or non-employee directors of, or consultants to, another corporation or entity who become Eligible Persons as the result of a merger or 

  
 18 

 
consolidation of the employing corporation or other entity (the “Acquired Entity”) with the Company or an Affiliate or the acquisition by the Company or an Affiliate of property or
stock of the Acquired Entity immediately prior to such merger, consolidation or acquisition (“Acquisition Date”) in order to preserve for the Grantee the economic value of all or a portion of such Acquired Entity Award at such price as the
Committee determines necessary to achieve preservation of economic value and in a manner consistent with and not in violation of Code Section 409A. The limitations of Sections 4.1 and 4.3 on the number of Shares reserved or available for
grants, and the limitations under Sections 6.3 and 7.3 with respect to Option Prices and grant prices for SARs, shall not apply to Substitute Awards granted under this subsection (ii). 

5.6 Compliance with Rule 16b-3. 

(i) Six-Month Holding Period Advice. Unless a Grantee could otherwise dispose of or exercise a derivative security or dispose of Shares
delivered under the Plan without incurring liability under Section 16(b) of the Exchange Act, the Committee may advise or require a Grantee to comply with the following in order to avoid incurring liability under Section 16(b): (a) at
least six months must elapse from the date of acquisition of a derivative security under the Plan to the date of disposition of the derivative security (other than upon exercise or conversion) or its underlying equity security, and (b) Shares
granted or awarded under the Plan other than upon exercise or conversion of a derivative security must be held for at least six months from the date of grant of an Award. 

(ii) Reformation to Comply with Exchange Act Rules. To the extent the Committee determines that a grant or other transaction by a
Section 16 Person should comply with applicable provisions of Rule 16b-3 (except for transactions exempted under alternative Exchange Act rules), the Committee shall take such actions as necessary to make such grant or other transaction so
comply, and if any provision of this Plan or any Award Agreement relating to a given Award does not comply with the requirements of Rule 16b-3 as then applicable to any such grant or transaction, such provision will be construed or deemed amended,
if the Committee so determines, to the extent necessary to conform to the then applicable requirements of Rule 16b-3. 
 (iii) Rule
16b-3 Administration. Any function relating to a Section 16 Person shall be performed solely by the Committee if necessary to ensure compliance with applicable requirements of Rule 16b-3, to the extent the Committee determines that such
compliance is desired. Each member of the Committee or person acting on behalf of the Committee shall be entitled to, in good faith, rely or act upon any report or other information furnished to him by any officer, manager or other employee of the
Company or any Affiliate, the Company’s independent certified public accountants or any executive compensation consultant or attorney or other professional retained by the Company to assist in the administration of the Plan. 

5.7 Cancellation and Rescission of Awards. Unless the Award Agreement specifies otherwise, the Committee may cancel, rescind, suspend,
withhold, or otherwise limit or restrict any unexercised Award at any time if the Grantee is not in compliance with all applicable provisions of the Award Agreement and the Plan or if the Grantee has a Termination of Affiliation for Cause. 

  
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 ARTICLE 6. 

STOCK OPTIONS 
 6.1
Grant of Options. Subject to and consistent with the provisions of the Plan, Options may be granted to any Eligible Person in such number, and upon such terms, and at any time and from time to time as shall be determined by the Committee.
Without in any manner limiting the generality of the foregoing, the Committee may grant to any Eligible Person, or permit any Eligible Person to elect to receive, an Option in lieu of or in substitution for any other compensation (whether payable
currently or on a deferred basis, and whether payable under this Plan or otherwise) which such Eligible Person may be eligible to receive from the Company or an Affiliate. 

6.2 Award Agreement. Each Option grant shall be evidenced by an Award Agreement that shall specify the Option Price, the Option Term
(not to exceed ten (10) years from its Grant Date), the number of Shares to which the Option pertains, the time or times at which such Option shall be exercisable and such other provisions as the Committee shall determine. 

6.3 Option Price. The Option Price of an Option under this Plan shall be determined in the sole discretion of the Committee, but in no
case shall the Option Price be less than 100% of the Fair Market Value of a Share on the Grant Date. 
 6.4 Grant of Incentive Stock
Options. At the time of the grant of any Option, the Committee may in its discretion designate that such Option shall be made subject to additional restrictions to permit it to qualify as an Incentive Stock Option. Any Option designated as an
Incentive Stock Option: 
 (i) shall be granted only to an employee of the Company or a Subsidiary Corporation (as defined below); 

(ii) shall be granted within ten (10) years from the earlier of the date the Plan is adopted or the date the Plan is approved by
stockholders of the Company; 
 (iii) shall have an Option Price of not less than 100% of the Fair Market Value of a Share on the Grant
Date, and, if granted to a person who owns capital stock (including stock treated as owned under Section 424(d) of the Code) possessing more than 10% of the total combined voting power of all classes of capital stock of the Company or any
Subsidiary Corporation (a “10% Owner”), have an Option Price not less than 110% of the Fair Market Value of a Share on its Grant Date; 

(iv) shall have an Option Term of not more than ten (10) years (five years if the Grantee is a 10% Owner) from its Grant Date, and shall
be subject to earlier termination as provided herein or in the applicable Award Agreement; 
 (v) shall not have an aggregate Fair Market
Value (as of the Grant Date) of the Shares with respect to which Incentive Stock Options (whether granted under the Plan or any other stock option plan of the Grantee’s employer or any parent or Subsidiary Corporation

  
 20 

 (“Other Plans”)) are exercisable for the first time by such Grantee during any calendar year
(“Current Grant”), determined in accordance with the provisions of Section 422 of the Code, which exceeds $100,000 (the “$100,000 Limit”); 

(vi) shall, if the aggregate Fair Market Value of the Shares (determined on the Grant Date) with respect to the Current Grant and all
Incentive Stock Options previously granted under the Plan and any Other Plans which are exercisable for the first time during a calendar year (“Prior Grants”) would exceed the $100,000 Limit, be, as to the portion in excess of the $100,000
Limit, exercisable as a separate option that is not an Incentive Stock Option at such date or dates as are provided in the Current Grant; 

(vii) shall require the Grantee to notify the Committee of any disposition of any Shares delivered pursuant to the exercise of the Incentive
Stock Option under the circumstances described in Section 421(b) of the Code (relating to holding periods and certain disqualifying dispositions) (“Disqualifying Disposition”), within 10 days of such a Disqualifying Disposition; 

(viii) shall by its terms not be assignable or transferable other than by will or the laws of descent and distribution and may be exercised,
during the Grantee’s lifetime, only by the Grantee; provided, however, that the Grantee may, to the extent provided in the Plan in any manner specified by the Committee, designate in writing a beneficiary to exercise his or her Incentive Stock
Option after the Grantee’s death; and 
 (ix) shall, if such Option nevertheless fails to meet the foregoing requirements, or otherwise
fails to meet the requirements of Section 422 of the Code for an Incentive Stock Option, be treated for all purposes of this Plan, except as otherwise provided in subsections (iv) and (v) above, as an Option that is not an Incentive
Stock Option. 
 Notwithstanding the foregoing and Section 3.2, the Committee may, without the consent of the Grantee, at any time before the exercise
of an Option (whether or not an Incentive Stock Option), take any action necessary to prevent such Option from being treated as an Incentive Stock Option. 

For purposes of this Section 6.4, “Subsidiary Corporation” means a corporation other than the Company in an unbroken chain of corporations
beginning with the Company if, at the time of granting the Option, each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of
the other corporations in such chain. 
 6.5 Payment. Except as otherwise provided by the Committee in an Award Agreement, Options
shall be exercised by the delivery of a written notice of exercise to the Company, setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares made by any one or more of the
following means subject to the approval of the Committee: 
 (i) cash, personal check or wire transfer; 

(ii) Shares, valued at their Fair Market Value on the date of exercise (or by delivering a certification or attestation of ownership of such
Shares); 

  
 21 

 (iii) with the approval of the Committee, Restricted Shares held by the Grantee, with each Share
valued at the Fair Market Value of a Share on the date of exercise; or 
 (iv) subject to applicable law (including the prohibited loan
provisions of Section 402 of the Sarbanes-Oxley Act of 2002), pursuant to procedures approved by the Committee, through the sale of the Shares acquired on exercise of the Option through a broker-dealer to whom the Grantee has submitted an
irrevocable notice of exercise and irrevocable instructions to deliver promptly to the Company the amount of sale proceeds sufficient to pay for such Shares, together with, if requested by the Company, the amount of federal, state, local or foreign
withholding taxes payable by Grantee by reason of such exercise. 
 The Committee may in its discretion specify that, if any Restricted Shares
(“Tendered Restricted Shares”) are used to pay the Option Price, (x) all the Shares acquired on exercise of the Option shall be subject to the same restrictions as the Tendered Restricted Shares, determined as of the date of exercise
of the Option, or (y) a number of Shares acquired on exercise of the Option equal to the number of Tendered Restricted Shares shall be subject to the same restrictions as the Tendered Restricted Shares, determined as of the date of exercise of
the Option. 
 ARTICLE 7. 

STOCK APPRECIATION RIGHTS AND LIMITED STOCK APPRECIATION RIGHTS 

7.1 Issuance. Subject to and consistent with the provisions of the Plan, the Committee, at any time and from time to time, may grant
SARs to any Eligible Person either alone or in addition to other Awards granted under the Plan. Such SARs may, but need not, be granted in connection with a specific Option granted under Article 6. Any SAR related to a non-qualified Option (i.e., an
Option that is not intended to be an Incentive Stock Option) may be granted at the same time such Option is granted or at any time thereafter before exercise or expiration of such Option. Any SAR related to an Incentive Stock Option must be granted
at the same time such Option is granted. The Committee may impose such conditions or restrictions on the exercise of any SAR as it shall deem appropriate. Subject to and consistent with the provisions of the Plan, the Committee, at any time and from
time to time, may grant Limited Stock Appreciation Rights to any Eligible Person either alone or in addition to other Awards granted under the Plan. Each Limited Stock Appreciation Right shall be identified with a Share subject to an Option or SAR
held by the Grantee, which may include an Option or SAR previously granted under the Plan. Upon the exercise, expiration, termination, forfeiture or cancellation of the Option or SAR with which an Limited Stock Appreciation Right is identified, such
Limited Stock Appreciation Right shall terminate. 
 7.2 Award Agreements. Each SAR grant shall be evidenced by an Award Agreement in
such form as the Committee may approve and shall contain such terms and conditions not inconsistent with other provisions of the Plan as shall be determined from time to time by the Committee; provided that no SAR grant shall have a term of more
than ten (10) years from the date of grant of the SAR. 
 7.3 Grant Price. The grant price of an SAR shall be determined by the
Committee in its sole discretion; provided that the grant price shall not be less than the lesser of 100% of the Fair Market Value of a Share on the date of the grant of the SAR, or the Option Price under the non-qualified Option to which the SAR
relates. 

  
 22 

 7.4 Exercise and Payment. 

(i) Upon the exercise of SARs, the Grantee shall be entitled to receive payment from the Company in an amount determined by multiplying:
(A) the excess of the Fair Market Value of a Share on the date of exercise over 100% of the Fair Market Value of a Share on the Grant Date of the SAR (or such higher strike price as specified in the Award Agreement), by (B) the number of
Shares with respect to which the SAR is exercised; provided that the Committee may provide in the Award Agreement that the benefit payable on exercise of an SAR shall not exceed such percentage of the Fair Market Value of a Share on the Grant Date
as the Committee shall specify. The Fair Market Value of a Share on the Grant Date and date of exercise of SARs shall be determined in the same manner as the Fair Market Value of a Share on the date of grant of an Option is determined. SARs shall be
deemed exercised on the date written notice of exercise in a form acceptable to the Committee is received by the Secretary of the Company. Unless the Award Agreement provides otherwise, the Company shall make payment in respect of any SAR within
five (5) days of the date the SAR is exercised. Any payment by the Company in respect of an SAR may be made in cash, Shares, other property, or any combination thereof, as the Committee, in its sole discretion, shall determine. 

(ii) The provisions of this Section 7.4(ii) shall apply to a Limited Stock Appreciation Right except as otherwise provided in the Award
Agreement. Each Limited Stock Appreciation Right shall automatically be exercised upon a Termination of Affiliation on account of a Change of Control. The exercise of a Limited Stock Appreciation Right shall result in the cancellation of the Option
or SAR with which such Limited Stock Appreciation Right is identified, to the extent of such exercise. Within 10 business days after the exercise of a Limited Stock Appreciation Right, the Company shall pay to the Grantee, in cash, an amount equal
to the difference between (A) the Fair Market Value of a Share on the exercise date; minus (B) either (i) in the case of a Limited Stock Appreciation Right identified with an Option, the Option Price of such Option or (ii) in the
case of a Limited Stock Appreciation Right identified with an SAR, the strike price of such SAR. 
 7.5 Grant Limitations. The
Committee may at any time impose any other limitations upon the exercise of SARs which, in the Committee’s sole discretion, are necessary or desirable in order for Grantees to qualify for an exemption from Section 16(b) of the Exchange
Act. 
 ARTICLE 8. 

RESTRICTED SHARES AND RESTRICTED SHARE UNITS 

8.1 Grant of Restricted Shares and Restricted Share Units. Subject to and consistent with the provisions of the Plan, the Committee, at
any time and from time to time, may grant Restricted Shares and Restricted Share Units to any Eligible Person in such amounts as the Committee shall determine. 

  
 23 

 8.2 Award Agreement. Each grant of Restricted Shares and Restricted Share Units shall be
evidenced by an Award Agreement that shall specify the Period(s) of Restriction, the number of Restricted Shares or Restricted Share Units granted, and such other provisions as the Committee shall determine. The Committee may impose such conditions
and/or restrictions on any Restricted Shares and Restricted Share Units granted pursuant to the Plan as it may deem advisable, including, but not limited to, restrictions based upon the achievement of specific performance goals, time-based
restrictions, time-based restrictions following the attainment of the performance goals, and/or restrictions under applicable securities laws. 

8.3 Consideration for Restricted Shares. The Committee shall determine the amount, if any, that a Grantee shall pay for Restricted
Shares, which shall be (except with respect to Restricted Shares that are treasury shares) at least the Minimum Consideration for each Restricted Share. Such payment shall be made in full by the Grantee before the delivery of the shares and in any
event no later than 10 business days after the Grant Date for such shares. 
 8.4 Effect of Forfeiture of Restricted Shares. If
Restricted Shares are forfeited, and if the Grantee was required to pay for such shares or acquired such Restricted Shares upon the exercise of an Option, the Grantee shall be deemed to have resold such Restricted Shares to the Company at a price
equal to the lesser of (x) the amount paid by the Grantee for such Restricted Shares, or (y) the Fair Market Value of a Share on the date of such forfeiture. The Company shall pay to the Grantee the deemed sale price as soon as is
administratively practical. Such Restricted Shares shall cease to be outstanding, and shall no longer confer on the Grantee thereof any rights as a stockholder of the Company, from and after the date of the event causing the forfeiture, whether or
not the Grantee accepts the Company’s tender of payment for such Restricted Shares. 
 8.5 Restricted Shares Book Entry, Escrow,
Certificate Legends. The Committee may provide that Restricted Shares be held in book entry with the transfer agent until there is a lapse of the Period of Restriction with respect to such Restricted Shares and certificates are issued or until
such Restricted Shares are forfeited, or the Committee may provide that the certificates for any Restricted Shares (x) shall be held (together with a stock power executed in blank by the Grantee) in escrow by the Secretary of the Company until
such Restricted Shares become nonforfeitable or are forfeited and/or (y) shall bear an appropriate legend restricting the transfer of such Restricted Shares under the Plan. If any Restricted Shares become nonforfeitable, the Company shall cause
certificates for such shares to be delivered without such legend. 
 ARTICLE 9.  

PERFORMANCE UNITS AND PERFORMANCE SHARES 

9.1 Grant of Performance Units and Performance Shares. Subject to and consistent with the provisions of the Plan, Performance Units or
Performance Shares may be granted to any Eligible Person in such amounts and upon such terms, and at any time and from time to time, as shall be determined by the Committee. 

9.2 Value/Performance Goals. The Committee shall set performance goals in its discretion which, depending on the extent to which they
are met, will determine the number or 

  
 24 

 
value of Performance Units or Performance Shares that will be paid to the Grantee. With respect to Covered Employees and to the extent the Committee deems it appropriate to comply with
Section 162(m) of the Code, all performance goals shall be objective Performance Measures satisfying the requirements for the Performance-Based Exception, and shall be set by the Committee within the time period prescribed by
Section 162(m) of the Code and related regulations. 
 (i) Performance Unit. Each Performance Unit may be denominated in cash
and shall have an initial value that is established by the Committee at the time of grant. 
 (ii) Performance Share. Each
Performance Share shall have an initial value equal to the Fair Market Value of a Share on the date of grant. 
 9.3 Earning and Form and
Timing of Payment of Performance Units and Performance Shares. After the applicable Performance Period has ended, the amount earned by the Grantee shall be based on the level of achievement of performance goals set by the Committee. If a
Performance Unit or Performance Share Award is intended to comply with the Performance-Based Exception, the Committee shall certify the level of achievement of the performance goals in writing before the Award is settled. 

The settlement of Performance Units or Performance Shares shall be in Shares, unless at the discretion of the Committee and as set forth in
the Award Agreement, settlement is to be in cash or in some combination of cash and Shares. 
 If a Grantee is promoted, demoted or
transferred to a different business unit of the Company during a Performance Period, then, to the extent the Committee determines that the Award, the performance goals, or the Performance Period are no longer appropriate, the Committee may adjust,
change, eliminate or cancel the Award, the performance goals, or the applicable Performance Period, as it deems appropriate in order to make them appropriate and comparable to the initial Award, the performance goals, or the Performance Period;
provided, however, no such action may be taken by the Committee with respect to an Award if the Grantee is or becomes or is anticipated to become a Covered Employee if such action would disqualify the Award from the Performance-Based Exception. 

Payment of earned Performance Units or Performance Shares shall be made in a lump sum following the latest to occur of (a) the vesting
event, or (b) the determination of the level of achievement of the performance goals for the applicable Performance Period; provided, however, payment may be deferred to a later date in accordance with a deferral rule, policy or procedure
established pursuant to Article 15. The Committee may pay earned Performance Units or Performance Shares in the form of cash or in Shares (or in a combination thereof). Such Shares may be granted subject to any restrictions deemed appropriate by the
Committee. The form of payout of such Awards shall be set forth in the Award Agreement pertaining to the grant of the Award. 
 At the
discretion of the Committee, a Grantee may be entitled to receive any dividends or Dividend Equivalents declared with respect to Shares deliverable in connection with grants of Performance Units or Performance Shares which have been earned, but not
yet delivered to the Grantee. 

  
 25 

 ARTICLE 10.  

BONUS SHARES 
 Subject to
the terms of the Plan, the Committee may grant Bonus Shares to any Eligible Person, in such amount and upon such terms and at any time and from time to time as shall be determined by the Committee. The terms of such Bonus Shares shall be set forth
in the Award Agreement pertaining to the grant of the Award. 
 ARTICLE 11.  

DEFERRED STOCK 
 11.1
Grant of Deferred Stock. 
 (i) Subject to and consistent with the provisions of the Plan, the Committee, at any time and from time
to time, may grant Deferred Stock to any Eligible Person, in such amount and upon such terms as the Committee shall determine, including the conditions under such Deferred Stock will vest. 

(ii) In addition, if and to the extent permitted by the Committee, an Eligible Person may elect (a “Deferral Election”) at such
times and consistent with and not in violation of Code Section 409A and such rules and procedures adopted by the Committee, to receive all or any portion of his salary and/or bonus in the form of a number of shares of Deferred Stock equal to
the quotient of the amount of salary and/or cash bonus to be paid in the form of Deferred Stock divided by the Fair Market Value of a Share on the date such salary or bonus would otherwise be paid in cash. 

11.2 Delivery and Limitations. Delivery of Shares will occur upon expiration of the deferral period specified for the Award of Deferred
Stock by the Committee. A Grantee awarded Deferred Stock will have no voting rights with respect to such Deferred Stock. Except to the extent provided otherwise in the Award Agreement, a Grantee will have the rights to receive Dividend Equivalents
in respect of Deferred Stock, which Dividend Equivalents shall be deemed reinvested in additional Shares of Deferred Stock. 
 ARTICLE 12.

 DIVIDEND EQUIVALENTS 

The Committee is authorized to grant Awards of Dividend Equivalents alone or in conjunction with another Award. The Committee may provide that
Dividend Equivalents shall be paid or distributed when accrued or shall be deemed to have been reinvested in additional Shares or additional Awards or otherwise reinvested. 

  
 26 

 ARTICLE 13. 

OTHER STOCK-BASED AWARDS 

The Committee is authorized, subject to limitations under applicable law, to grant such other Awards that are denominated or payable in,
valued in whole or in part by reference to, or otherwise based on, or related to, Shares, as deemed by the Committee to be consistent with the purposes of the Plan including Shares awarded which are not subject to any restrictions or conditions and
Awards valued by reference to the value of securities of or the performance of specified Affiliates. Subject to and consistent with the provisions of the Plan, the Committee shall determine the terms and conditions of such Awards. Except as provided
by the Committee, Shares delivered pursuant to a purchase right granted under this Article 13 shall be purchased for such consideration, paid for by such methods and in such forms, including cash, Shares, outstanding Awards or other property, as the
Committee shall determine. 
 ARTICLE 14. 

BENEFICIARY DESIGNATION 

Each Grantee under the Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to
whom any benefit under the Plan is to be paid in case of his or her death before he or she receives any or all of such benefit. Each such designation shall revoke all prior designations by the same Grantee, shall be in a form prescribed by the
Company, and will be effective only when filed by the Grantee in writing with the Company during the Grantee’s lifetime. In the absence of any such designation, benefits remaining unpaid at the Grantee’s death shall be paid to the
Grantee’s estate. 
 ARTICLE 15. 

DEFERRALS 
 The Committee
may permit or require a Grantee to defer receipt of the payment of cash or the delivery of Shares that would otherwise be due by virtue of the exercise of an Option or SAR, the lapse or waiver of restrictions with respect to Restricted Shares, the
satisfaction of any requirements or goals with respect to Performance Units or Performance Shares, or the grant of Bonus Shares. If any such deferral is required or permitted, such deferral shall be in accordance with applicable rules, policies
and/or procedures established by the Committee, including, but not limited to, the Code Section 409A Rules and Policies. Except as otherwise provided in the Award Agreement or pursuant to applicable Grantee elections, and subject to the Code
Section 409A Rules and Policies, any payment or any Shares that are subject to such deferral shall be made or delivered to the Grantee upon the Grantee’s Termination of Affiliation. 

  
 27 

 ARTICLE 16. 

AMENDMENT, MODIFICATION, AND TERMINATION 

16.1 Amendment, Modification, and Termination. Subject to Section 16.3, the Board may, at any time and from time to time, alter,
amend, suspend, discontinue or terminate the Plan in whole or in part without the approval of the Company’s stockholders, except that any amendment or alteration shall be subject to the approval of the Company’s stockholders if
(a) such stockholder approval is required by any federal or state law or regulation or the rules of any stock exchange or automated quotation system on which the Shares may then be listed or quoted, or (b) the Board, in its discretion,
determines to submit such amendments or alterations to stockholders for approval. The Board may delegate to the Committee any or all of the authority of the Board under this Section 16.1. 

16.2 Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The Committee may make adjustments in the
terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including the events described in Section 4.2) affecting the Company or the financial statements of the Company or of changes in
applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the
Plan; provided that no such adjustment shall be authorized to the extent that such authority would be inconsistent with the Plan’s meeting the requirements of the Performance-Based Exception. 

16.3 Awards Previously Granted. Except as otherwise specifically permitted in the Plan or an Award Agreement, no termination,
amendment, or modification of the Plan shall adversely affect in any material way any Award previously granted under the Plan, without the written consent of the Grantee of such Award. 

ARTICLE 17. 

WITHHOLDING 
 17.1
Required Withholding. 
 (i) The Committee in its sole discretion may provide that when taxes are to be withheld in connection
with the exercise of an Option or SAR, or upon the lapse of restrictions on Restricted Shares, or upon the transfer of Deferred Stock, or upon payment of any other benefit or right under this Plan (the date on which such exercise occurs or such
restrictions lapse or such payment of any other benefit or right occurs hereinafter referred to as the “Tax Date”), the Grantee may elect to make payment for the withholding of federal, state, local and foreign taxes, including Social
Security and Medicare (“FICA”) taxes by one or a combination of the following methods: 
 (A) payment of an amount
in cash equal to the amount to be withheld; 
 (B) delivering part or all of the amount to be withheld in the form of Shares
valued at their Fair Market Value on the Tax Date; 

  
 28 

 (C) requesting the Company to withhold from those Shares that would otherwise be
received upon exercise of the Option or SAR, upon the lapse of restrictions on Restricted Shares or Restricted Share Units, upon the transfer of Deferred Stock, or upon the payment of a Performance Shares Award, a number of Shares having a Fair
Market Value on the Tax Date equal to the amount to be withheld; or 
 (D) withholding from any compensation otherwise due to
the Grantee. 
 With respect to any Awards to be satisfied by withholding Shares pursuant to clause (C) above, the number of Shares
withheld shall be equal to the number of whole Shares (rounded up to the nearest whole Share) necessary to meet the minimum statutory amount of taxes, including FICA and railroad retirement taxes, required to be withheld under federal, state, local
and foreign law. An election by Grantee under this subsection is irrevocable. Any additional withholding not paid by the withholding or surrender of Shares or delivery of Shares must be paid in cash. 

(ii) Any Grantee who makes a Disqualifying Disposition (as defined in Section 6.4(vi)) or an election under Section 83(b) of the
Code shall remit to the Company, and the Company shall have the right to withhold, an amount sufficient to satisfy all resulting tax withholding requirements in the same manner as set forth in subsection (i). 

17.2 Notification under Code Section 83(b). If the Grantee, in connection with the exercise of any Option, or the grant of
Restricted Shares, makes the election permitted under Section 83(b) of the Code to include in such Grantee’s gross income in the year of transfer the amounts specified in Section 83(b) of the Code, then such Grantee shall notify the
Company of such election within 10 days of filing the notice of the election with the Internal Revenue Service, in addition to any filing and notification required pursuant to regulations issued under Section 83(b) of the Code. The Committee
may, in connection with the grant of an Award or at any time thereafter, prohibit a Grantee from making the election described above. 

ARTICLE 18. 
 ADDITIONAL
PROVISIONS 
 18.1 Successors. All obligations of the Company under the Plan with respect to Awards granted hereunder shall be
binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise of all or substantially all of the business and/or assets of the Company. 

18.2 Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the
feminine, the plural shall include the singular and the singular shall include the plural. 
 18.3 Severability. If any part of the
Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not invalidate any other part of the Plan. Any Section or part of a Section so declared to be unlawful or invalid shall, if
possible, be construed in a manner which will give effect to the terms of such Section or part of a Section to the fullest extent possible while remaining lawful and valid. 

  
 29 

 18.4 Requirements of Law. The granting of Awards and the delivery of Shares under the Plan
shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. Notwithstanding any provision of the Plan or any Award, Grantees shall not be
entitled to exercise, or receive benefits under, any Award, and the Company (and any Affiliate) shall not be obligated to deliver any Shares or deliver benefits to a Grantee, if such exercise or delivery would constitute a violation by the Grantee
or the Company of any applicable law or regulation. 
 18.5 Securities Law Compliance. 

(i) If the Committee deems it necessary to comply with any applicable securities law, or the requirements of any stock exchange upon which
Shares may be listed, the Committee may impose any restriction on Awards or Shares acquired pursuant to Awards under the Plan as it may deem advisable. All certificates for Shares delivered under the Plan pursuant to any Award or the exercise
thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the SEC, any stock exchange upon which Shares are then listed, any applicable
securities law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. If so requested by the Company, the Grantee shall make a written representation to the Company
that he or she will not sell or offer to sell any Shares unless a registration statement shall be in effect with respect to such Shares under the Securities Act of 1993, as amended, and any applicable state securities law or unless he or she shall
have furnished to the Company, in form and substance satisfactory to the Company, that such registration is not required. 
 (ii) If the
Committee determines that the exercise or nonforfeitability of, or delivery of benefits pursuant to, any Award would violate any applicable provision of securities laws or the listing requirements of any national securities exchange or national
market system on which are listed any of the Company’s equity securities, then the Committee may postpone any such exercise, nonforfeitability or delivery, as applicable, but the Company shall use all reasonable efforts to cause such exercise,
nonforfeitability or delivery to comply with all such provisions at the earliest practicable date. 
 18.6 No Rights as a
Stockholder. No Grantee shall have any rights as a stockholder of the Company with respect to the Shares (other than Restricted Shares) which may be deliverable upon exercise or payment of such Award until such Shares have been delivered to him
or her. Restricted Shares, whether held by a Grantee or in escrow by the Secretary of the Company, shall confer on the Grantee all rights of a stockholder of the Company, except as otherwise provided in the Plan or Award Agreement. At the time of a
grant of Restricted Shares, the Committee may require the payment of cash dividends thereon to be deferred and, if the Committee so determines, reinvested in additional Restricted Shares. Stock dividends and deferred cash dividends issued with
respect to Restricted Shares shall be subject to the same restrictions and other terms as apply to the Restricted Shares with respect to which such dividends are issued. The Committee may in its discretion provide for payment of interest on deferred
cash dividends. 

  
 30 

 18.7 Nature of Payments. Unless otherwise specified in the Award Agreement, Awards shall
be special incentive payments to the Grantee and shall not be taken into account in computing the amount of salary or compensation of the Grantee for purposes of determining any pension, retirement, death or other benefit under (a) any pension,
retirement, profit sharing, bonus, insurance or other employee benefit plan of the Company or any Affiliate, except as such plan shall otherwise expressly provide, or (b) any agreement between (i) the Company or any Affiliate and
(ii) the Grantee, except as such agreement shall otherwise expressly provide. 
 18.8 Non-Exclusivity of Plan. Neither the
adoption of the Plan by the Board nor its submission to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board to adopt such other compensatory arrangements for employees as it may deem
desirable. 
 18.9 Governing Law. The Plan, and all agreements hereunder, shall be construed in accordance with and governed by the
laws of the State of Delaware, other than its laws respecting choice of law. 
 18.10 Share Certificates. All certificates for Shares
delivered under the terms of the Plan shall be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under federal or state securities laws, rules and regulations thereunder, and the rules of any national
securities laws, rules and regulations thereunder, and the rules of any national securities exchange or automated quotation system on which Shares are listed or quoted. The Committee may cause a legend or legends to be placed on any such
certificates to make appropriate reference to such restrictions or any other restrictions or limitations that may be applicable to Shares. In addition, during any period in which Awards or Shares are subject to restrictions or limitations under the
terms of the Plan or any Award Agreement, or during any period during which delivery or receipt of an Award or Shares has been deferred by the Committee or a Grantee, the Committee may require any Grantee to enter into an agreement providing that
certificates representing Shares deliverable or delivered pursuant to an Award shall remain in the physical custody of the Company or such other person as the Committee may designate. 

18.11 Unfunded Status of Awards; Creation of Trusts. The Plan is intended to constitute an “unfunded” plan for incentive and
deferred compensation. With respect to any payments not yet made to a Grantee pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give any such Grantee any rights that are greater than those of a general creditor of the
Company; provided, however, that the Committee may authorize the creation of trusts or make other arrangements to meet the Company’s obligations under the Plan to deliver cash, Shares or other property pursuant to any Award which trusts or
other arrangements shall be consistent with the “unfunded” status of the Plan unless the Committee otherwise determines. 
 18.12
Affiliation. Nothing in the Plan or an Award Agreement shall interfere with or limit in any way the right of the Company or any Affiliate to terminate any Grantee’s employment or consulting contract at any time, nor confer upon any
Grantee the right to continue in the employ of or as an officer of or as a consultant to the Company or any Affiliate. 

  
 31 

 18.13 Participation. No employee or officer shall have the right to be selected to receive
an Award under this Plan or, having been so selected, to be selected to receive a future Award. 
 18.14 Military Service. Awards
shall be administered in accordance with Section 414(u) of the Code and the Uniformed Services Employment and Reemployment Rights Act of 1994 as amended, supplemented or replaced from time to time. 

18.15 Construction. The following rules of construction will apply to the Plan: (a) the word “or” is disjunctive but not
necessarily exclusive, and (b) words in the singular include the plural, words in the plural include the singular, and words in the neuter gender include the masculine and feminine genders and words in the masculine or feminine gender include
the other neuter genders. 
 18.16 Headings. The headings of articles and sections are included solely for convenience of reference,
and if there is any conflict between such headings and the text of this Plan, the text shall control. 
 18.17 Obligations. Unless
otherwise specified in the Award Agreement, the obligation to deliver, pay or transfer any amount of money or other property pursuant to Awards under this Plan shall be the sole obligation of a Grantee’s employer; provided that the obligation
to deliver or transfer any Shares pursuant to Awards under this Plan shall be the sole obligation of the Company. 
 18.18 Stockholder
Approval. All Awards granted on or after the Original Effective Date and prior to the date the Company’s stockholders approve the Plan are expressly conditioned upon and subject to approval of the Plan by the Company’s stockholders.

  
 32EX-10.2

 Exhibit 10.2 

KANSAS CITY SOUTHERN 

2008 STOCK OPTION AND PERFORMANCE AWARD PLAN 

NON-QUALIFIED STOCK OPTION, RESTRICTED SHARE AND PERFORMANCE SHARE 

AWARD AGREEMENT 
 By this Agreement, Kansas
City Southern, a Delaware corporation (the “Company”), grants to you, [Name], an employee of the Company or an Affiliate, (“you”), (i) a non-qualified stock Option to purchase the number of shares of the
Company’s Common Stock set forth below, (ii) the number of Restricted Shares set forth below, and (iii) the number of Performance Shares set forth below, which Performance Shares represent a conditional right to receive a number of
Shares determined by the satisfaction of performance goals for the applicable Performance Period; all subject to the terms and conditions set forth below and in the attached Exhibit A and in the Kansas City Southern 2008 Stock Option and Performance
Award Plan (including Committee rules, regulations, policies and procedures established thereunder), as may from time to time be amended (the “Plan”), all of which are an integral part of this Agreement. 

NON-QUALIFIED STOCK OPTION 
  

			
	Grant Date:	  	[Date]
	Number of Options:	  	[Number of options]
	Option Price:	  	[Grant date FMV]

 This Option shall become exercisable in accordance with the schedule below, provided you remain continuously employed by the
Company or an Affiliate from the Grant Date to such date. The term of the Option shall be ten (10) years from the Grant Date unless terminated earlier as provided in Exhibit A or in the Plan. 

 

			
	 Number of Options Exercisable
	  	 Date Exercisable

	[                    ]	  	[Date]
	[                    ]	  	[Date]
	[                    ]	  	[Date]

 RESTRICTED SHARES 
  

			
	Grant Date:	  	[Date]
	Number of Restricted Shares:	  	[Number of shares]
	Period of Restriction/Vesting Date:	  	[Date]

 PERFORMANCE SHARES 
  

			
	Grant Date:	  	[Date]
	Number of Performance Shares (at target):	  	[Number of shares]
	3-Year Performance Period	  	[applicable performance period]
	Period of Restriction / Vesting Date:	  	Later of: (i) [Date], or (ii) the date the Committee certifies that the Performance Goals for the applicable Performance Period are (or are not) satisfied.

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

  
 1 

 
			
	Kansas City Southern
		
	By:		  

			Name and Title:

 ACCEPTED AND AGREED: 

 

							
	  
				Date:		  

	 [Name of Grantee]
 [Address]

[City, State, Zip]
						

  
 2 

 EXHIBIT A 

to 
 NON-QUALIFIED STOCK
OPTION, RESTRICTED SHARE AWARD, AND 
 PERFORMANCE SHARE AWARD AGREEMENT 

You received three Awards under this Agreement: an Award of Non-Qualified Stock Options, an Award of Restricted Shares and an Award of
Performance Shares. This Exhibit A consists of three sections. The first section applies to your Award of Non-Qualified Stock Options. The second section applies to your Award of Restricted Shares. The third section applies to your Award of
Performance Shares. The fourth section contains provisions that apply to all your three types of Awards. 
 Non-Qualified Stock Option
Award 
 1. Manner of Exercise. This Option shall be exercised by delivering to the Company (or its authorized agent),
during the period in which such Option is exercisable, (i) a notice, which may be electronic, of your intent to purchase a specific number of Shares pursuant to this Option (a “Notice of Exercise”), and (ii) full payment of the
Option Price for such specific number of Shares. Payment may be made by any one or more of the following means: 
 (a) cash,
personal check, or wire transfer; 
 (b) if approved and permitted by the Committee, Shares owned by you with a Fair Market
Value on the date of exercise equal to the Option Price, which such Shares must be fully paid, non-assessable, and free and clear from all liens and encumbrances; 

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

(d) if approved and permitted by the Committee, with Restricted Shares owned by you with a Fair Market Value on the date of
exercise equal to the Option Price, in which case an equal number of Shares delivered on exercise of the Option will carry the same restrictions as the Restricted Shares tendered to pay the exercise price. 

The exercise of the Option shall become effective at the time such a Notice of Exercise has been received by the Company, which must be before
the tenth (10th) anniversary of the Grant Date (the “Expiration Date”), unless an earlier date is provided herein. You shall not have any rights as a stockholder of the Company with respect to the Shares deliverable upon exercise of
this Option until ownership of such Shares is recorded in your name on the books of the Company 
 If the Option is exercised as permitted
herein by any person or persons other than you, such Notice of Exercise shall be accompanied by such documentation as Company may reasonably require, including without limitation, evidence of the authority of such person or persons to exercise the
Option and evidence satisfactory to Company (if required by the Company) that any death taxes payable with respect to such Shares have been paid or provided for. 

  
 3 

 2. Exercisability. This Option shall become exercisable upon the date(s) specified in this
Award Agreement, provided you remain continuously employed by the Company or an Affiliate from the Grant Date to such date(s) the Option becomes exercisable. This Option shall also become fully exercisable upon your Termination of Affiliation on
account of: (a) Retirement, (b) death or (c) Disability. For purpose of your Option, Retirement means “Retirement” as defined in the Plan (Termination of Affiliation after having both attained age 55 and completed 10 years
of service) and as otherwise specified in Committee rules, regulations or policies (currently Termination of Affiliation after having attained age 65). 

3. Change of Control. This Option shall become fully exercisable upon a Change of Control, provided you have not had a Termination of
Affiliation prior to such Change of Control. 
 4. Exercise After Termination of Affiliation. This Option may be exercised only while
you are employed by the Company or an Affiliate, except that this Option may also be exercised after the date on which you have a Termination of Affiliation (“Termination Date”) as follows: 

(i) if you have a Termination of Affiliation by reason of your Retirement, you may exercise this Option at any time prior to
the Expiration Date (but no more than 10 years from the Grant Date of the Option); 
 (ii) if you have a Termination of
Affiliation by reason of your Disability, you may exercise this Option at any time during the first twelve (12) months after your Termination Date; 

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

(iv) if you have a Termination of Affiliation for any reason other than as described in subparagraph (i), (ii) or
(iii) above, or as provided in paragraph 5, you may exercise this Option at any time during the first three (3) months after your Termination Date; 

provided, however, that (x) except as otherwise provided in paragraphs 2 or 3 of this Non-Qualified Stock Option Award section, this Option may be
exercised after your Termination Date only to the extent it is exercisable on the Termination Date, and (y) under no circumstances may this Option be exercised on or after the Expiration Date. For purposes of this paragraph 4, if you are
employed by an Affiliate of the Company, you will be deemed to have had a Termination of Affiliation as of the first day on which such corporation ceases to be an Affiliate of the Company. 

5. Affiliation with Competitor/Dismissal for Cause. Notwithstanding anything to the contrary contained herein, if you have a
Termination of Affiliation due to a dismissal for Cause, or if you, without Company’s consent, become associated with, employed by, render service to, or own any interest in (other than any non-substantial interest, as the Committee from time
to time determines) any business that is in competition with (i) the Company or (ii) any Related Company (as defined below), this Option shall terminate and cease to be exercisable immediately upon such event. For purposes of this
paragraph, Related Company means (i) any individual or entity that directly, or through one or more intermediaries, controls, or is controlled by, or is under common control with, the Company, and (ii) any entity in which the Company owns,
directly or indirectly, twenty percent (20%) or more of the combined value of all equity interests. 
 6. Limited Transferability of
Option. Except as provided in the immediately following sentence, this Option is exercisable during your lifetime only by you or your guardian or legal representative, and this Option is not transferable except by will or the laws of descent and
distribution. To the extent and in the 

  
 4 

 
manner permitted by the Committee, and subject to such terms, conditions, restrictions or limitations as may be prescribed by the Committee, you may transfer this Option to (i) your spouse,
sibling, parent, child (including an adopted child) or grandchild (any of which an “Immediate Family Member”); (ii) a trust, the primary beneficiaries of which consist exclusively of you or your Immediate Family Members; or
(iii) a corporation, partnership or similar entity, the owners of which consist exclusively of you or your Immediate Family Members. 

7. Fractional or De Minimis Shares. The Option shall not be exercisable with respect to a fractional share or with respect to fewer
that ten (10) Shares, unless the remaining Shares are fewer than ten (10). 
 8. Nonstatutory Option. This Option has been
designated by the Committee as a Nonstatutory Option; it does not qualify as an Incentive Stock Option. 
 Restricted Shares Award

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

2. Transfer Restrictions. Until the restrictions lapse, the Restricted Shares may not be assigned, alienated, pledged, attached, sold
or otherwise transferred or encumbered by you, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable; provided that the designation of a beneficiary pursuant to Article 14 of
the Plan shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. Certificates will be transferred to you only as provided in paragraph 3 of this Restricted Shares Award section. 

3. Record of Ownership. The number of your Restricted Shares with respect to which the restrictions have lapsed will be released from
restrictions on the books of the Company. Delivery may be effected on an uncertificated basis, to the extent not prohibited by applicable law or the rules of the New York Stock Exchange. To the extent the Shares are delivered in uncertificated form,
those Shares shall be deposited directly with Charles Schwab Trust Company, or such other agent designated by the Company, and the Company may utilize electronic or automated methods to transfer the Shares. Until the restrictions lapse, your
Restricted Shares either will be evidenced by certificates held by or on behalf of the Company (in which case you will sign and deliver to the Company a stock power relating to the Restricted Shares so that the Company may cancel the Restricted
Shares in the event of forfeiture), or the Restricted Shares will be reflected in a book-entry form or other account maintained by the Company, as determined by the Company. 

4. Rights as Stockholder. During the Period of Restriction you will have all of the rights of a stockholder of the Company with respect
to the Restricted Shares subject to the provisions of paragraph 2 of this Restricted Shares Award section. 
 5. Lapse of Restrictions
Other than Upon Retirement. The Restricted Shares will vest and no longer be subject to restrictions upon the first of the following events to occur: 

(a) The end of the Period of Restriction, provided your Termination of Affiliation does not occur prior to that date; or 

(b) Your Termination of Affiliation by reason of your death; 

(c) Your Termination of Affiliation by reason of your Disability; or 

(d) A Change of Control. 

  
 5 

 6. Nonforfeitability of Shares Upon Retirement. Notwithstanding any provision in this
Agreement to the contrary, if you satisfy the conditions for Retirement prior to the expiration of the Period of Restriction, then your Restricted Shares will become non-forfeitable in accordance with (a), (b) or (c) below, as applicable:

 (a) If you first satisfy the conditions for Retirement on or before [DATE], then (i) one-third (1/3) of your
Restricted Shares will become non-forfeitable on [DATE] provided you have not incurred a Termination of Affiliation before such date; (ii) an additional one-third (1/3) of your Restricted Shares will become non-forfeitable on [DATE]
provided you have not incurred a Termination of Affiliation before such date; and (iii) the final one-third (1/3) of your Restricted Shares will become non-forfeitable on [DATE] provided you have not incurred a Termination of Affiliation
before such date. 
 (b) If you first satisfy the conditions for Retirement after [DATE] but on or before [DATE], then
(i) one-third (1/3) of your Restricted Shares will become non-forfeitable on the last day of the month during which you first satisfy the conditions for Retirement provided you have not incurred a Termination of Affiliation before such
date; (ii) an additional one-third (1/3) of your Restricted Shares will become non-forfeitable on [DATE] provided you have not incurred a Termination of Affiliation before such date; and (iii) the final one-third (1/3) of your
Restricted Shares will become non-forfeitable on [DATE] provided you have not incurred a Termination of Affiliation before such date; and 

(c) If you first satisfy the conditions for Retirement after [DATE] but on or before [DATE], then (i) two-thirds
(2/3) of your Restricted Shares will become non-forfeitable on the last day of the month during which you first satisfy the conditions for Retirement provided you have not incurred a Termination of Affiliation before such date; and
(ii) the final one-third (1/3) of your Restricted Shares will become non-forfeitable on [DATE] provided you have not incurred a Termination of Affiliation before such date. 

Although certain of your Restricted Shares may become non-forfeitable as set forth above prior to the expiration of the Period of Restriction,
such Shares shall remain subject to the restrictions on transfer set forth in paragraph 2 of this Restricted Shares Award section until the earlier of your Termination of Affiliation or the expiration of the Period of Restriction. For purposes of
the foregoing, you will satisfy the conditions for “Retirement” only if you have attained age 55 and completed 10 years of service, or you have attained age 65, prior to your Termination of Affiliation. 

7. Acceleration of Vesting. The Committee may at any time or times in its discretion accelerate the vesting of some or all of your
Restricted Shares by specifying a date, other than what is provided in this Agreement, on which the Period of Restriction ends and such Shares will no longer be subject to restrictions. Any such Shares that become vested under this paragraph 7 will
not be forfeited under paragraph 8 of this Restricted Shares Award section. 
 8. Forfeiture. If you have a Termination of
Affiliation prior to any of the events specified in paragraphs 5, 6 or 7 of this Restricted Shares Award section, then you will forfeit your Restricted Shares that are not vested upon such Termination of Affiliation. All of your rights to and
interest in any Restricted Shares that are forfeited under this paragraph 8 will terminate upon forfeiture. 
 Performance Shares Award

 1. Payment. The Performance Shares are awarded to you without requirement of payment by you. 

  
 6 

 2. Transfer Restrictions. The Performance Shares are rights that may not be assigned,
alienated, pledged, attached, sold or otherwise transferred or encumbered by you, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable; provided that the designation of a
beneficiary pursuant to Article 14 of the Plan shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. 

3. Number of Shares Earned. Your Award of Performance Shares specifies a number of Performance Shares awarded with respect to the
[applicable performance period] Performance Period. The number of Performance Shares designated for the [applicable performance period] Performance Period represents a target number of Shares to be earned if the Company performance goals (the
“Performance Goals”) are met for the [applicable performance period] Performance Period. As of the last day of the [applicable performance period] Performance Period, the Committee will determine, in accordance with the Schedule of
Performance Goals below (the “Performance Schedule”), the number of Shares, if any, earned by you. The earned Shares will be paid as provided in paragraph 7 of this Performance Shares Award section subject to satisfaction of the vesting
requirements and forfeiture provisions of paragraph 4 and paragraph 10 of this Performance Shares Award section. 
 4. Vesting. The
number of Shares earned as determined under the Performance Schedule will be paid to you only if you become vested in the Shares. You will become vested in the Shares on the Vesting Date provided you do not have a Termination of Affiliation prior to
the Vesting Date except as otherwise provided in paragraph 5 and paragraph 6 of this Performance Shares Award section, and subject to any other forfeiture of Shares under paragraph 10 of this Performance Shares Award section. If you have a
Termination of Affiliation prior to the Vesting Date, then except as provided in paragraph 5 and paragraph 6 of this Performance Shares Award section, you will forfeit all Performance Shares, and will have no right to earn or receive payment of any
Shares under this Agreement. 
 5. Termination of Affiliation Due to Retirement. If you have a Termination of Affiliation prior to
the Vesting Date due to Retirement, a portion of your Performance Shares will be forfeited and you will have no right to earn or receive payment of any Shares with respect to such forfeited portion. The forfeited portion shall be equal to your
Performance Shares times a fraction, the numerator of which is the total number of remaining whole months in the [applicable performance period] Performance Period and the denominator of which is [# of months in performance period] months. The
portion of your Performance Shares not forfeited pursuant to the foregoing shall be earned based on the applicable performance percentage determined in accordance with the Performance Schedule and shall be paid as provided in paragraph 7 of this
Performance Shares Award. For purposes of your Performance Share Award, Retirement means “Retirement” as defined in the Plan (Termination of Affiliation after having both attained age 55 and completed 10 years of service) and as otherwise
specified in Committee rules, regulations or policies (currently Termination of Affiliation after having attained age 65). 
 6.
Termination of Affiliation Due to Change in Control, Death or Disability. If you have a Termination of Affiliation prior to the Vesting Date due to a Change in Control or due to your death or Disability, then upon such Termination of
Affiliation, you will be deemed to have earned a number of Shares determined under the Performance Schedule as if the Performance Goals were at Target. 

7. Payment of Shares. Except as provided in the following sentence, the Shares, if any, earned by you under this Agreement, and not
forfeited under this Agreement, will be delivered to you, or your beneficiary if you are deceased, for the number of Shares earned as soon as practicable after the latest to occur of (a) the Vesting Date, or (b) the determination of the
number of all Shares, if any, earned by you under this Agreement with respect to the [applicable performance period] Performance Period. Notwithstanding the preceding sentence, in the event of vesting prior to the Vesting Date under the provisions
of paragraph 6 of this 

  
 7 

 
Performance Shares Award section, then the Shares, if any, earned by you will be delivered to you or your beneficiary as soon as practicable after your Termination of Affiliation. Delivery of
Shares may be effected on an uncertificated basis, to the extent not prohibited by applicable law or the rules of the New York Stock Exchange. To the extent the Shares are delivered in uncertificated form, your Shares shall be deposited directly
with Charles Schwab Trust Company, or such other agent designated by the Company, and the Company may utilize electronic or automated methods to transfer the Shares. 

8. Rights as Stockholder. Prior to the time you receive a payment of Shares under this Agreement, you will have no rights of a
stockholder of the Company with respect to your Performance Shares or any Shares which may be or have been earned by you. Accordingly, with respect to the Performance Shares or any unearned or earned but unpaid Shares, in addition to the
restrictions under paragraph 2 of this Performance Shares Award section, you will not have the right to vote, you will not receive or be entitled to receive cash or non-cash dividends, and you will not have any other beneficial rights as a
shareholder of the Company. 
 9. Acceleration of Vesting Date. The Committee may at any time or times in its discretion accelerate
the Vesting Date. The Committee will accelerate the Vesting Date by specifying an earlier Vesting Date. Acceleration of the Vesting Date under this paragraph 9 will not result in an earlier payment of any Shares. 

10. Additional Forfeiture Provision and Repayment Obligation. Notwithstanding any provisions of this Agreement to the contrary, if the
Committee determines that you have engaged in Gross Misconduct as defined in this paragraph 10, then: (a) you will immediately forfeit all Performance Shares awarded to you, and all earned or unearned Shares, for the [applicable performance
period] Performance Period under this Agreement, and you will have no right to receive payment of any Shares under this Agreement and (b) you will repay to the Company a number of Shares, or a dollar amount equal to the current Fair Market
Value of a number of Shares, equal to the number of Shares previously paid to you under this Agreement. For purposes of this paragraph 10, Gross Misconduct means intentional conduct in disregard of the Company’s expectations of someone in your
position with the Company that has caused significant financial harm to the Company, whether occurring before or after your Termination of Affiliation. 

Provisions Applicable to Your Non-Qualified Stock Option Award, Restricted Shares Award and Performance Share Award 

1. Plan Governs. The Non-Qualified Stock Option Award, Restricted Shares Award and Performance Share Award and this Agreement are
subject to the terms and conditions of the Plan. The Plan is incorporated in this Agreement by this reference. All capitalized terms used in this Agreement have the meaning set forth in the Plan unless otherwise defined in this Agreement. By
executing this Agreement, you acknowledge receipt of a copy of the Plan and the prospectus covering the Plan and you acknowledge that the Award is subject to all the terms and provisions of the Plan. You further agree to accept as binding,
conclusive and final all decisions and interpretations by the Plan Committee with respect to any questions arising under the Plan. By signing this Agreement with respect to your Non-Qualified Stock Option Award, you are not obligated to exercise all
or any part of this Option or any other Option. 
 2. Tax Withholding. As of any date that a required tax withholding liability
(“Required Withholding”) occurs, you must remit all amounts necessary to satisfy the Required Withholding. The Company will not deliver Shares to you or release the restrictions on Shares under this Agreement unless you remit (or in
appropriate cases agree to remit) or otherwise provide for the Required Withholding as allowed under the Plan, as amended. 

  
 8 

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

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

5. Tax Consultation. Your signature on this Agreement means that you understand that you may incur tax consequences as of any date that
a number (which may be all or part) of your Restricted Shares or Performance Shares would no longer be forfeited if you were to have a Termination of Affiliation on such date, and that special tax rules apply with respect to your Non-Qualified Stock
Option. You agree to consult with any tax consultants you think advisable in connection with tax issues regarding your Non-Qualified Stock Option Award, Restricted Shares Award and Performance Share Award and you acknowledge that you are not
relying, and will not rely, on the Company or any Affiliate for any tax advice. Please see Section 17.2 of the Plan regarding Code Section 83(b) elections with respect to your Restricted Shares. 

6. Amendment. The Company reserves the right to amend the Plan at any time. The Committee reserves the right to amend this Agreement at
any time. 
 7. Severability. If any part of this Agreement is declared by any court or governmental authority to be unlawful or
invalid, such unlawfulness or invalidity shall not serve to invalidate any part of this Agreement not declared to be unlawful or invalid. Any part so declared unlawful or invalid shall, if possible, be construed in a manner which gives effect to the
terms of such part to the fullest extent possible while remaining lawful and valid. 
 8. Applicable Law. This Agreement shall be
governed by the laws of the State of Delaware other than its laws respecting choice of law. 
 9. Headings. Headings are provided
herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement. 
 10. No Waiver.
The failure of Company in any instance to exercise any of its rights granted under this Agreement or the Plan shall not constitute a waiver of any other rights that may arise under this Agreement. 

11. Right of Recovery. Notwithstanding any provisions of this Agreement to the contrary, the Company may recover from you any amount
paid or payable to you (or the current Fair Market Value of any Shares paid or payable to you) pursuant to this Agreement which is required to be recovered under the rules of any exchange on which the Company’s Shares are registered or any
amount the Committee determines is appropriate under the Company’s policies in effect from time to time regarding the recovery of incentive compensation, including any such policies adopted after the Grant Date of this Agreement. 

  
 9 

 Schedule of Performance Goals for Performance Shares 

 

													
	 [Applicable Performance Period] Performance Level
	  	Return on Invested
Capital (ROIC)1
(75% Weighting)	 	  	Operating Ratio (OR)2
(25% Weighting)	 	  	Earned Percentage of
Incentive Target	 
				
	 [Period 1]
	  				  				  			
	 Threshold
	  	 	[    	] 	  	 	[    	] 	  	 	50	% 
	 Target
	  	 	[    	] 	  	 	[    	] 	  	 	100	% 
	 Maximum
	  	 	[    	] 	  	 	[    	] 	  	 	200	% 
				
	 [Period 2]
	  				  				  			
	 Threshold
	  	 	[    	] 	  	 	[    	] 	  	 	50	% 
	 Target
	  	 	[    	] 	  	 	[    	] 	  	 	100	% 
	 Maximum
	  	 	[    	] 	  	 	[    	] 	  	 	200	% 
				
	 [Period 3]
	  				  				  			
	 Threshold
	  	 	[    	] 	  	 	[    	] 	  	 	50	% 
	 Target
	  	 	[    	] 	  	 	[    	] 	  	 	100	% 
	 Maximum
	  	 	[    	] 	  	 	[    	] 	  	 	200	% 

 The number of Shares earned for the [applicable performance period] Performance Period will be determined by calculating the
average of the earned percentage for each fiscal year, and then multiplying such average earned percentage times the number of Performance Shares subject to this Award Agreement. To determine the “earned percentage” for a fiscal year, the
Committee will compare the Company’s actual performance for the fiscal year to the Performance Goals for such fiscal year as set forth in the above schedule. If the calculated percentage is between Threshold and Maximum for any fiscal year,
then the earned percentage will be prorated. If the calculated percentage is below Threshold, then the earned percentage for the fiscal year will be 0%. If the calculated percentage is above Maximum, then the earned percentage will be 200%. For
purposes of the foregoing, any fractional Share earned with respect to the [applicable performance period] Performance Period shall be rounded down to the nearest whole Share. 

 

	1 	ROIC is defined as [TBD]. 

	2 	OR is defined as [TBD]. 

  
 10

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