Document:

EX-10.1

 Exhibit 10.1 

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:
	 	[Grant Date]
	 Number of Options:
	 	[Number of Options]
	 Option Price:
	 	[Grand 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

	 [Number of Options]
	 	[Date]
	 [Number of Options]
	 	[Date]
	 [Number of Options]
	 	[Date]

 RESTRICTED SHARES 
  

			
	 Grant Date:
	 	[Grant Date]
	 Number of Restricted Shares:
	 	[Number of Shares]
	 Preliminary Performance Period
	 	[Performance Period]
	 Period of Restriction/Vesting Date:
	 	[Vest Date]

 PERFORMANCE SHARES 
  

			
	 Grant Date:
	 	[Grant Date]
	 Number of Performance Shares (at Target):
	 	[Number of Shares]
	 Preliminary Performance Period
	 	[Performance Period]
	 3-Year Performance Period
	 	[Performance Period]
	 Period of Restriction / Vesting Date:
	 	Later of: (i) [Vest Date], or (ii) the date the Committee certifies that the Performance Goals for the [Performance Period] 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. 
  

			
	Kansas City Southern
		
	By:	 	 
		 	[Name and Title]

  

							
	ACCEPTED AND AGREED:	 		 	
				
	 	 		 	Date:	 	 
	 «Employee»

«Address1»

«Address2»
	 		 		 	

  
 1 

 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. 
 Preliminary Goal 

The vesting of the Restricted Shares and the payment of any of the Performance Shares are, in all cases, subject to the Company’s
achievement of the following preliminary goal during the Preliminary Performance Period (the “Preliminary Goal”). 

[Preliminary Performance Goal] 

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. 

  
 2 

 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. 
 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; 
 (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. 

  
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 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 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 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, except that (i) you will be subject to the provisions of paragraph 2 of this Restricted Shares Award section and (ii) any cash dividends or stock dividends paid with respect to any Restricted Shares which are
subject to forfeiture under paragraph 8 of this Restricted Shares Award section will be retained by the Company for your benefit. The cash dividends or stock dividends so retained by the Company and attributable to your Restricted Shares subject to
forfeiture under paragraph 8 of this Restricted Shares Award section will be distributed to you, without adjustment for earnings, in cash or in Shares (depending on the nature of the underlying dividend) when the Restricted Shares are no longer
subject to forfeiture under paragraph 8 of this Restricted Shares Award section (whether or not the Restricted Shares remain subject to the provisions of paragraph 2 of this Restricted Shares Award section). You will not be entitled to any
retained dividends attributable to any Restricted Shares which are forfeited pursuant to paragraph 8 of this Restricted Shares Award section. 

  
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 5. Lapse of Restrictions Other than Upon Retirement. If the Preliminary Goal for the
Preliminary Performance Period is not satisfied all Restricted Shares will be forfeited. If the Preliminary Goal is satisfied for the Preliminary Performance Period, 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. 

6. Nonforfeitability of Shares Upon Retirement. Notwithstanding any provision in this Agreement to the contrary except for the
requirement that the Preliminary Goal has been met and the achievement of the Performance Goal has been certified by the Committee, 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 the later of [Date], or the date the achievement of the Preliminary Goal has been certified by the
Committee, 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 later of the last day of the month during which you first satisfy the conditions for Retirement or the date the achievement of the Preliminary Goal has been certified by the Committee
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. 

  
 5 

 7. Acceleration of Vesting. Subject to the requirement that the Preliminary Goal for the
Preliminary Performance Period has been met and the achievement of the Preliminary Goal has been certified by the Committee, the Committee may at any time or times thereafter in its discretion accelerate the vesting of some or all of your remaining
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 the Preliminary Goal is not
certified by the Committee as having been met or if you have a Termination of Affiliation prior to any of the events specified in paragraphs 5 or 6 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. 

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. 
 (a) Preliminary Performance Goal. Your Award of Performance Shares specifies a number of Performance
Shares awarded (at “Target” (as defined in the “Schedule of Secondary Performance Goals for Performance Shares” at the end of this Award Agreement)). If the Preliminary Performance Goal for the Preliminary Performance Period is
not certified by the Committee has having been satisfied, 0% of the Performance Shares will be earned and all Performance Shares will be forfeited. If the Preliminary Performance Goal is certified by the Committee has having been satisfied, the
number of Performance Shares earned is 200% of Target; provided, however, the number of Performance Shares earned may be reduced, but not increased, based on the level of performance under the secondary performance goal(s) and the Secondary
Performance Schedule referred to below in (b). 
 (b) Secondary Performance Goals. Your Award of Performance Shares
specifies a number of Performance Shares awarded with respect to the [Performance Period] Performance Period. The number of Performance Shares designated for the [Performance Period] Performance Period represents a target number of Shares to be
earned if the Company’s secondary performance goals (the “Secondary Performance Goals”) are met for the [Performance Period] Performance Period. As of the last day of the [Performance Period] Performance Period, the Committee will
determine, in accordance with the Schedule of Secondary Performance Goals for Performance Shares below (the “Secondary Performance Schedule”), the number of Shares, if any, earned by you. 

If the number of Shares earned under the Secondary Performance Schedule described in paragraph 3(b) above is less than the number of
Shares earned upon achievement of the Preliminary Performance Goal described above in paragraph 3(a), the number of earned Shares under this paragraph 3 will be reduced to that number earned under the Secondary Performance Schedule. 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. 

  
 6 

 4. Vesting. The number of Shares earned as determined under the Secondary 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 (i) the Preliminary Performance Goal is certified by the Committee as having been met and (ii) 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. If the Preliminary Performance Goal is not certified by the Committee as having been satisfied, 0% of the Performance Shares will be earned and all
Performance Shares will be forfeited. 
 5. Termination of Affiliation Due to Retirement. If you have a Termination of Affiliation
prior to the Vesting Date due to Retirement and assuming the Preliminary Performance Goal is certified by the Committee as having been satisfied, 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 [Performance Period]
Performance Period and the denominator of which is 36 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
Secondary 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 the Preliminary Performance Goal is certified by the
Committee as having been satisfied and 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 Secondary Performance Schedule as if the Performance Goals were at Target. If your death or Disability occurs before the end of the Preliminary Performance Period, the delivery (if any) of your Performance
Shares will be delayed until the end of the Preliminary Performance Period if the Committee certifies that the Preliminary Performance Goal(s) were satisfied. 

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 [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 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. 

  
 7 

 9. Acceleration of Vesting Date. Subject to the requirement that the Preliminary Goal for
the Preliminary Performance Period is certified by the Committee as having been met, the Committee may at any time or times thereafter in its discretion waive your obligation to remain employed through the Vesting Date in order to receive any
Shares. In the event of such a waiver, you will receive a payment of those Shares, if any, which would have been paid to you had you remained employed through the Vesting Date based upon the level of goal achievement under the Secondary Performance
Schedule. Waiver of a continued employment condition 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 [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. 
 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. 

  
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 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. 

  
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 Schedule of Secondary Performance Goals for Performance Shares 

 

							
	 [Performance Period]

Performance Level
	 	 Return on Invested

Capital (ROIC)1

(75% Weighting)
	 	 Operating Ratio (OR)2

(25% Weighting)
	 	Earned Percentage of
Incentive Target
				
	[Performance Period 1]	 		 		 	
	 Threshold
	 	[    ]	 	[    ]	 	0%
	 Target
	 	[    ]	 	[    ]	 	100%
	 Maximum
	 	[    ]	 	[    ]	 	200%
				
	[Performance Period 2]	 	[    ]	 	[    ]	 	
	 Threshold
	 	[    ]	 	[    ]	 	0%
	 Target
	 	[    ]	 	[    ]	 	100%
	 Maximum
	 	[    ]	 	[    ]	 	200%
				
	[Performance Period 3]	 	[    ]	 	[    ]	 	
	 Threshold
	 	[    ]	 	[    ]	 	0%
	 Target
	 	[    ]	 	[    ]	 	100%
	 Maximum
	 	[    ]	 	[    ]	 	200%

 The number of Shares earned for the [Performance Period] Performance Period will be equal to the product of: 

The average of the earned percentage for each fiscal year 

X 
 Revenue Growth
Multiplier 
 X 

The number of Performance Shares subject to this Award Agreement 

In no event, however, shall the number of Performance Shares earned for the [Performance Period] Performance Period exceed 200% of target. 

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 [Performance
Period] Performance Period shall be rounded down to the nearest whole Share. 
  

  
 10 

 The “Revenue Growth Multiplier” is determined based on the average of the Company’s annual revenue
growth during the 3-year Performance Period relative to the average of the annual revenue growth of all other Class 1 railroads over the same time frame. The average of the annual revenue growth for each Class 1 railroad shall be
determined by first calculating the change in revenue for each applicable year and then computing the 3-year average. Each Class 1 railroad will then be ranked in order of the highest to lowest average annual revenue growth rate for the 3-year
Performance Period. For purposes of determining revenue growth for the Company and for all other North American Class I railroads, revenue includes (a) total revenue for the most recently reported twelve-month period, including fuel
surcharge revenue, (b) adjustments for foreign exchange impacts as disclosed in publicly available information, and (c) adjustments for business combinations, acquisitions or dispositions as disclosed in publicly available information. The
Revenue Growth Multiplier for purpose of this Award will be based on the following results: 
  

			
	 If the Company’s average annual

revenue growth ranking is . . .
	 	 Then the Revenue Growth

Multiplier will be . . .

		
	 1st
place
	 	[140%]
		
	 2nd
place
	 	[120%]
		
	 2nd to last
place
	 	[90%]
		
	 Last place
	 	[80%]
		
	 Any other ranking
	 	[100%]

  

	1 	ROIC is defined as [TBD]. 

	2 	OR is defined as [TBD]. 

  
 11EX-10.2

 Exhibit 10.2 

KANSAS CITY SOUTHERN ANNUAL INCENTIVE PLAN 

(As Amended and Restated Effective February 17, 2017) 

1. PURPOSE. The purpose of the Plan is to provide Eligible Employees of the Employer with annual incentive compensation based on the level of
achievement of financial and other performance criteria. The Plan is intended to focus the interests of these employees on the key measures of the Company’s success and to reward these employees for the Company’s achievement of those key
measures of the Company’s success. This Plan is intended to be a performance-based plan for purposes of Section 162(m) of the Code. 
 2.
DEFINITIONS. As used in the Plan, the following terms shall have the meanings set forth below: 
 (a) “Award” shall mean the right to
receive a cash payment for a Performance Year payable to a Participant on account of his or her participation in the Plan and achievement of the applicable Performance Goal(s). 

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

(c) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, including applicable regulations and rulings
thereunder and any successor provisions thereto. 
 (d) “Committee” shall mean the Compensation and Organization Committee of the Board (or
any successor committee). 
 (e) “Company” shall mean Kansas City Southern, and any successor thereto which adopts the Plan. 

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

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

(h) “Eligible Earnings” shall include base earnings and certain pay differentials for time worked in an eligible position during the
Performance Year. 
 (i) “Eligible Employee” shall mean an individual who is employed by the Employer who is not represented by a union or
other collective bargaining organization. 
 (j) “Employer” shall mean the Company and any affiliate of the Company that elects to
participate and be an Employer under the Plan with the consent of the Company. 
 (k) “Maximum Award” shall mean an Award amount that may
be paid if the maximum level of the Performance Goal(s) is achieved in the Performance Year. The Maximum Award is the lesser of $3,000,000 or 200% of a Participant’s Target Award. 

(l) “Participant” shall mean, with respect to any Performance Year, any Eligible Employee who is selected to participate in the Plan in
accordance with Section 3 of the Plan. 

 (m) “Performance Goal” shall mean the pre-established performance goal(s) established under the
Plan for each Performance Year as described in Section 4 of the Plan. 
 (n) “Preliminary Performance Goal” shall mean the
pre-established performance goal established under the Plan by the Committee for those Participants who, as determined by the Committee, could be Covered Employees for each Performance Year in accordance with Section 4 and Section 6(b) of
the Plan. Achievement of the Preliminary Performance Goal shall entitle a Covered Employee to a Qualified Performance-Based Award. 
 (o)
“Performance Measures” shall mean one or more of the following criteria on which Performance Goals may be based: 
  

	 	(i)	Earnings (either in the aggregate or on a per-share basis); 

  

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

  

	 	(iii)	Operating income; 

  

	 	(iv)	Cash flow; 

  

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

  

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

  

	 	(vii)	Gross revenues; 

  

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

 

	 	(ix)	Reductions in expense levels in each case, where applicable, determined either on a Company-wide basis or in respect of any one or more business units; 

 

	 	(x)	Net economic value; 

  

	 	(xi)	Market share; 

  

	 	(xii)	Operating profit; 

  

	 	(xiii)	Costs; 

  

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

  

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

  

	 	(xvi)	Economic value added; 

  

	 	(xvii)	Aggregate product unit and pricing targets; 

  
 2 

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

  

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

  

	 	(xx)	Results of customer satisfaction surveys; 

  

	 	(xxi)	Safety record; 

  

	 	(xxii)	Network and service reliability; 

  

	 	(xxiii)	Debt ratings, debt leverage and debt service; and/or 

  

	 	(xxiv)	Operating ratio; 

 provided, that, with respect to any Eligible Employee who is not a Covered Employee,
the Committee shall have the authority to use Performance Measures other than those herein specified (including individual performance criteria) as it deems appropriate in its sole discretion. 

(p) “Performance Year” shall mean the calendar year of the Company. 

(q) “Plan” shall mean the Kansas City Southern Annual Incentive Plan, as set forth herein, as from time to time amended. 

(r) “Qualified Performance-Based Award” shall mean an Award to a Covered Employee that is intended to meet the qualified performance-based
compensation exception contained in Section 162(m)(4)(C) of the Code. The amount of a Qualified Performance-Based Award shall equal an amount allocated to such Covered Employee by a formula established by the Committee based upon achievement of
a preestablished performance goal under Treasury Regulations 1.162-27(d)(2); provided, however, to the extent such amount exceeds the Maximum Award available under the Plan, it shall be reduced to the Maximum Award (and may further be reduced below
the Maximum Award in accordance with Section 4). 
 (s) “Retirement” shall mean an Employee’s separation of employment from the
Company with an immediate eligibility to receive a retirement annuity per the provisions of the Railroad Retirement Board. 
 (t) “Target
Award” shall mean the amount eligible to be paid under an Award if the target Performance Goal(s) is achieved in the Performance Year. 
 (u)
“Threshold Award” shall mean the amount eligible to be paid under an Award if the threshold Performance Goal(s) is achieved in the Performance Year. 

3. ELIGIBILITY and PARTICIPATION. A Participant must be employed by the Employer on the last business day of the Performance Year in order to be
eligible to receive payment under an Award, except in the cases of Retirement, death or Disability. 

  
 3 

 4. ESTABLISHMENT AND DETERMINATION OF AWARDS. 

(a) Establishment of Performance Goal(s). After recommendations from senior management of the Company based on consultation with third party sources,
the Committee shall establish objective threshold, target, and maximum Performance Goal(s) for each Award after the beginning of each Performance Year. For each Covered Employee, the Committee may also approve a Preliminary Performance Goal. The
Performance Goals, including the Preliminary Performance Goal for Covered Employees, may be based upon the performance of the Company, the Employer, or any operating unit level, division or function thereof, and may be applied either alone or
relative to the performance of other businesses or individuals (including industry or general market indices), based on one or more of the Performance Measures. All Performance Goals, including Preliminary Performance Goals, may be expressed as
whole dollar amounts, percentages or growth rates. 
 With respect to any or all Performance Goal(s), except Preliminary Performance Goals, applicable to a
Participant, the Company shall also establish, subject to the approval of the Committee, the Threshold Award, Target Award and Maximum Award payable to the Participant if such Performance Goal(s) is achieved. Threshold Awards, Target Awards and
Maximum Awards will be expressed as a percentage of a Participant’s Eligible Earnings and correspond to the Participant’s designated Award level. No amount will be paid with respect to a Performance Goal if results are below the threshold
level. For Covered Employees, achievement of the Preliminary Performance Goal shall entitle the Covered Employee to a Qualified Performance-Based Award. 

(b) Payment of Awards. The payment of any Award shall be subject to achievement of the applicable Performance Goal(s) and certification by senior
management of the Company to the degree to which each of the Performance Goals have been attained. The Committee will consider such certification in its determination hereunder of whether an Award shall be paid and at what level. If a
Participant’s Target Award level changes during a Performance Year, the amount of the Participant’s Award will be computed in proportion to his or her Award level that applied to such Participant each day during such Performance Year. 

(c) Adjustments to Awards. Subject to the limitations under Section 6, the Committee may, in its discretion, modify the amount of any Award based
on such criteria as it shall determine, including, but not limited to, financial results, individual performance, safety performance, business unit and site accomplishments, and other factors tied to the success of the Company or any of its business
units. There is no obligation of uniformity of treatment of Participants under the Plan. 
 (d) Profit Sharing Adjustment. If, under statutory law, a
Participant is entitled to a profit sharing payment from the Employer for a calendar year that coincides with a Performance Year, then the Award amount otherwise payable to the Participant hereunder shall be reduced by an amount equal to such
statutory profit sharing amount payable to the Participant. If applicable, for purposes of calculating such reduction, the statutory profit sharing amount shall be converted to U.S. dollars in accordance with procedures established hereunder. 

5. PAYMENT OF AWARDS. 
 (a) Time of Payment. An
Award shall be paid to a Participant in cash after the Committee has certified in writing that the Performance Goal(s) (including the Preliminary Performance Goal for Covered Employees) for the Performance Year have been achieved but in no event
later than the 15th day of the third month following the end of such Performance Year. Notwithstanding the foregoing, an Award with respect to a Performance Year to be paid to a

  
 4 

 
Participant that is not subject to income taxation under the laws of the United States, may be paid later than the 15th day of the third month following the end of such Performance Year, but
shall not in any event be paid later than the 30th day of the fourth month following the end of such Performance Year. Awards payable to other Participants who have had a termination of employment on account of Retirement, death or Disability
during the Performance Year shall be payable in accordance with Section 4(b) of the Plan and at the same time other Participants receive Awards under the Plan. If the Participant dies prior to receiving payment of an Award, any Award payable
under the Plan to such Participant shall be paid to the Participant’s surviving spouse (if married) or estate (if unmarried). 
 (b)
Withholding. Awards are subject to withholding for applicable federal, state and local taxes. 
 6. COMPLIANCE WITH SECTION 162(M) OF THE CODE.

 (a) Purpose. The purpose of Section 6 of the Plan is to provide the Committee with the ability to grant Qualified Performance-Based
Awards to Covered Employees, in accordance with Section 162(m)(4)(C) of the Code. This Section 6 of the Plan shall apply only to Qualified Performance-Based Awards granted to Covered Employees and shall supersede any other provision of
such Award or this Plan that is inconsistent with this Section 6. 
 (b) Procedures with Respect to Qualified Performance-Based Awards. Any
Qualified Performance-Based Award granted by the Committee to a Covered Employee shall be set forth in writing and shall specify the following: 

(i) the Covered Employee to whom the Award is made; 

(ii) the Preliminary Performance Goal(s), or, if no Preliminary Performance Goal(s) are established, the other Performance Goals, applicable
to the Performance Year, which shall be specified by the Committee no later than ninety (90) days after the beginning of such Performance Year, but in no event after twenty-five percent (25%) of the applicable Performance Year has elapsed,
provided that the outcome is substantially uncertain at the time the Committee establishes the Preliminary Performance Goal or other Performance Goals; and 

(iii) if the amount that is earned upon attainment of such Preliminary Performance Goal(s) exceeds the Maximum Award, the amount shall be
reduced to the Maximum Award, and subject to further potential reduction based upon the level of attainment of other Performance Goals. 
 (c) Payment of
Qualified Performance-Based Awards. Except as otherwise permitted under Section 162(m) of the Code, payment of any Qualified Performance-Based Award subject to this Section 6 of the Plan shall be contingent on the attainment of the
Preliminary Performance Goal(s) or such other Performance Goal(s) applicable to such Award. Following the completion of each Performance Year and prior to the payment of such Qualified Performance-Based Award, the Committee shall certify in writing
whether the applicable Preliminary Performance Goal(s) or any other Performance Goal(s) established by the Committee have been achieved for such Performance Year. In determining the amount earned by a Covered Employee, the Committee shall have the
right to reduce or eliminate (but not to increase) any amount payable based on achievement of the Preliminary Goal(s), or the right to reduce, eliminate or increase any amount payable based on achievement of any Performance Goal(s) other than the
Preliminary Goal(s), at 

  
 5 

 
a given level of performance to take into account additional factors that the Committee may deem relevant to the assessment of individual or corporate performance for the Performance Year. A
Covered Employee shall be eligible to receive payment pursuant to a Qualified Performance-Based Award for a Performance Year only if the Preliminary Performance Goal(s) or such other Performance Goal(s) for such year are achieved. 

(d) Additional Limitations. Notwithstanding any other provision of the Plan, any Award which is granted to a Covered Employee and is intended to
constitute Qualified Performance-Based Award shall be subject to any additional limitations set forth in Section 162(m) of the Code (including any amendment to Section 162(m) of the Code) or any regulations or rulings issued thereunder
that are requirements for qualification as qualified performance-based compensation as described in Section 162(m)(4)(C) of the Code, and the Plan and/or any Award shall be deemed amended to the extent necessary to conform to such requirements.

 7. PLAN ADMINISTRATION. 
 (a) Administration.
The Plan shall be administered by the Committee. The Committee shall have full discretionary authority to establish the rules and regulations relating to the Plan, to interpret the Plan and those rules and regulations, to determine the Awards and
the Performance Measures applicable to each Award, to approve all Awards, to decide the facts in any case arising under the Plan, and to make all other determinations and to take all other actions necessary or appropriate for the proper
administration of the Plan. In making any determinations under or referred to in the Plan, the Committee shall be entitled to rely on opinions, reports or statements of employees of the Company and of counsel, public accountants, and other
professional or expert persons. The Committee’s administration of the Plan, including all such rules and regulations, interpretations, selections, determinations, approvals, decisions, delegations, amendments, terminations and other actions,
shall be final and binding on the Company and its stockholders and all employees, including Participants and their beneficiaries. No member of the Committee shall be liable for any action taken or determination made in good faith with respect to the
Plan or any Award. 
 (b) Delegation. Except to the extent prohibited by applicable law or the applicable rules of a stock exchange, the Committee
may allocate all or any portion of its responsibilities and powers to any one or more of its members, and may delegate all or any part of its responsibilities and powers for administering the Plan to one or more persons as the Committee deems
appropriate, and at any time may revoke any such allocation or delegation; provided, however, notwithstanding the foregoing, with respect to any action relating to any compensatory payment for which the Company intends to have the
“performance-based compensation” exception to Code Section 162(m) apply and that is required to be made by two or more “outside directors” within the meaning of Code Section 162(m), any such allocation or delegation may
only be made to two or more outside directors. 
 8. AMENDMENT OR TERMINATION OF PLAN. The Committee may amend (in whole or in part) or terminate the
Plan at any time, effective at such date as the Committee may determine. The Company also may amend (in whole or in part) or terminate the Plan at any time effective as of such date as the Company may determine, provided, however, any such amendment
of the Plan by the Company is subject to the approval of the Committee. 

  
 6 

 9. MISCELLANEOUS PROVISIONS. 

(a) Awards Not Transferable. A Participant’s right and interest under the Plan may not be assigned or transferred. Any attempted assignment or
transfer shall be null and void and shall extinguish, in the Committee’s sole discretion, the Company’s obligation under the Plan to pay Awards with respect to the Participant. 

(b) Effect of Awards on Other Compensation. 

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

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

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

  
 7

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