Document:

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                                                                 EXHIBIT 10.10

                                DST SYSTEMS, INC.
                             OFFICERS INCENTIVE PLAN
                 (AMENDED AND RESTATED AS OF FEBRUARY 28, 2001)

SECTION 1. PURPOSE

The purpose of the Officers Incentive Plan is to reward plan participants for
achieving defined earnings per share objectives that support increasing
profitability of DST Systems, Inc. The Plan provides both annual and long-term
incentives, contingent upon meeting annual and cumulative Earnings Per Share
goals. The Company intends that the Plan will facilitate in securing, retaining,
and motivating employees of superior capability; in providing competitive
management compensation; and in linking incentive awards to objectives that
should enhance shareholder value.

SECTION 2. DEFINITIONS

When used in the Plan, the following words and phrases shall have the following
meanings:

(a)  "Affiliate" means Boston EquiServe Limited Partnership, a Delaware limited
     partnership, and any successor thereto and any other entity (other than the
     Company or a Subsidiary) of which the Company or a Subsidiary directly or
     indirectly owns 50% or more of the combined voting power of all classes of
     stocks of such entity or 50% or more of the ownership interests in such
     entity.

(b)  "Beneficiary" means the person, persons, trust, or trusts which have been
     designated by a Participant in his or her most recent written beneficiary
     designation filed with the Company to receive the benefits specified under
     this Plan, if any, upon the Participant's death, or, if there is no
     designated Beneficiary or surviving designated Beneficiary, then the
     person, persons, trust, or trusts entitled by will or the laws of descent
     and distribution to receive such benefits.

(c)  "Board" means the Board of Directors of the Company.

(d)  "Committee" means the Compensation Committee of the Board or such other
     Board Committee as may be designated by the Board to administer the Plan;
     provided, however, that the Committee shall consist of two or more
     directors of the Company each of whom is a "disinterested person" within
     the meaning of Rule 16b-3 under the Securities Exchange Act of 1934, as
     amended from time to time and an "outside director" as required by Section
     162(m) of the Internal Revenue Code.

(e)  "Common Stock" means the Common Stock of the Company.

(f)  "Common Stock Outstanding" means the weighted average number of actual
     shares of Common Stock issued and outstanding during the Plan Year,
     determined in accordance with generally accepted principles. In the event
     of a reorganization, recapitalization, stock split, spin off, stock
     dividend, combination of shares, merger, consolidation,

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     rights offering, or any other change in the capital structure of the
     Company, the Committee may make such adjustment, if any, as it deems
     appropriate in the determination of Common Stock Outstanding.

(g)  "Company" means DST Systems, Inc., a corporation organized under the laws
     of Delaware, or any successor company.

(h)  "Disability" means the Participant, because of a physical or mental
     disability, will be unable to perform the duties of his or her customary
     position of employment (or is unable to engage in any substantial gainful
     activity for DST) for an indefinite period which the Committee considers
     will be of long continued duration. The Plan considers a Participant
     disabled on the date the Committee determines the Participant satisfies the
     definition of disability. The Committee may require a Participant to submit
     to a physical examination in order to confirm disability. The Committee
     will apply the provisions of this section in a nondiscriminatory,
     consistent and uniform manner.

(i)  "Earnings Per Share" or "EPS" means diluted earnings per share, determined
     in accordance with generally accepted accounting principles.

(j)  "Equity" shall mean either Restricted Common Stock or Options.

(k)  "Income" means net income of the Company and its consolidated Subsidiaries,
     determined in accordance with generally accepted principles, consistently
     applied, for any Plan Year for which the incentive awards are calculated,
     as reported by the Company and certified by the Company's independent
     certified public accountants.

(l)  "Market Price" shall be the average of the highest and lowest reported
     sales prices of Common Stock on the New York Stock Exchange.

(m)  "Options" shall mean non-qualified options to purchase Common Stock granted
     pursuant to Sections 5 and 7.

(n)  "Participant(s)" mean all officers of the Company and such officers of
     Subsidiaries and Affiliates as designated from time to time by the
     Compensation Committee.

(o)  "Plan" means this Officers Incentive Plan, as it may be amended from time
     to time.

(p)  "Plan Year" means the fiscal year of the Company. The first Plan Year will
     begin January 1, 1997 and end December 31, 1997.

(q)  "Restricted Common Stock" means Common Stock delivered in payment of an
     incentive award and subject to restrictions described in Section 7.

(r)  "Subsidiary" means a corporation, domestic or foreign, the majority of the
     voting stock of which is owned directly or indirectly by the Company.

(s)  "Targeted Earnings Per Share" or "Targeted EPS" means the Earnings Per
     Share criteria to be established by the Committee, from time to time and in
     its sole discretion, pursuant to Section 4(b) for purposes of determining
     incentive awards.

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SECTION 3. ELIGIBILITY AND PARTICIPATION

Except in the event of (i) retirement on or after age 60, (ii) Disability, (iii)
death, or (iv) termination without cause, a Participant must be an active
employee of the Company, a Subsidiary, or Affiliate on December 31 of the Plan
Year to be eligible for an incentive award. In the event of retirement,
Disability, death, or termination without cause, the incentive award as
calculated at the end of and for the full Plan Year shall be pro-rated to
reflect the actual period of employment during the Plan Year.

SECTION 4. INCENTIVE AWARD DETERMINATION

(a)  INCENTIVE AWARD OPPORTUNITY As soon as practical after adoption of the
     Plan, the Committee shall establish Threshold, Target, and Maximum
     incentive award opportunity levels (expressed as percentages of base salary
     as of the beginning of the Plan Year) for each Participant level in the
     Plan for the 1997, 1998, and 1999 Plan Years. For Plan Years following
     1999, the Committee shall establish award opportunity levels at the times
     and in the manner it deems appropriate for carrying out the intent of this
     Plan.

     The amount of the incentive award earned will be pro-rated between
     incentive award opportunity levels to reflect actual performance attained.
     No incentive award will be payable with respect to a performance measure
     and weighting where less than Threshold performance has been attained. No
     incentive award for a Plan Year shall exceed 250% of the Participant's base
     salary as of the beginning of the Plan Year.

(b)  PERFORMANCE MEASURES AND WEIGHTING As soon as practical after adoption of
     the Plan, the Committee shall establish performance criteria and weighting
     between performance criteria for each level of incentive award opportunity
     for the 1997, 1998, and 1999 Plan Years. The performance criteria shall be
     based upon 1997 Targeted Earnings Per Share for each of the Threshold,
     Target and Maximum incentive award opportunity levels, annual increases in
     the Targeted Earnings Per Share for 1998 and 1999, and cumulative Targeted
     Earnings Per Share. For Plan Years following 1999, the Committee shall
     establish performance criteria and weighting among criteria for each
     Participant at the times and in the manner it deems appropriate for
     carrying out the intent of this Plan.

     Weighting between annual and cumulative Targeted Earnings Per Share goals
     for the first three Plan Years shall be as follows:

     1997 Plan Year: 100% on 1997 Targeted EPS.

     1998 Plan Year: 67% on 1998 Targeted EPS; 33% on cumulative 1997 and 1998
     Targeted EPS.

     1999 Plan Year: 50% on 1999 Targeted EPS; 50% on cumulative 1997, 1998, and
     1999 Targeted EPS.

SECTION 5. PAYMENT OF EARNED INCENTIVE AWARDS

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As soon as practical after the end of the Plan Year and upon the compilation of
the necessary information, the Committee shall determine the degree of
attainment of the performance measures and the awards payable in accordance with
Section 4 and this Section 5. The Committee shall certify, in writing, prior to
the payment of incentive awards that the performance goals and other material
terms of the Plan have been satisfied.

The aggregate incentive award determined for a Plan Year (annual and cumulative)
shall be paid to the Participant in a combination of cash and Equity, depending
on the level of incentive award earned, as follows:

(a)  100% cash for that portion of a Participant's incentive award up to and
     including his or her Threshold incentive opportunity level;

(b)  50% cash and 50% Equity for that portion of a Participant's incentive award
     above his or her Threshold incentive opportunity levels up to and including
     his or her Maximum incentive opportunity level; and

Upon the Committee's written certification, the Company shall pay the cash
portion of the incentive award earned, less any amounts required to be withheld
for federal, state and local taxes, as soon as practicable and shall grant the
Equity portion in accordance with the procedures and restrictions set forth in
Section 7.

SECTION 6. LIMITATIONS ON INCENTIVE AWARDS

The aggregate value of all incentive awards for a Plan Year shall not exceed ten
percent (10%) of the Company's pre-tax income for such Plan Year. If incentive
awards generated in a Plan Year exceed this amount, the incentive awards for all
Participants shall be reduced pro-rata.

SECTION 7. EQUITY ELECTION AND PROCEDURES

(a)  PARTICIPANT ELECTION Each Participant who may receive an award of Equity
     pursuant to Section 5 may elect to receive either Restricted Stock or
     Options. The procedures for making such election shall be determined from
     time to time by the Committee.

(b)  RESTRICTED COMMON STOCK

     (i)  ISSUANCE OF RESTRICTED COMMON STOCK Each Participant electing to
          receive Restricted Common Stock shall have issued in his or her name a
          number of full shares of Restricted Common Stock equal to the whole
          number of the quotient obtained by dividing the dollar amount of the
          incentive award to be settled in Equity, as determined in Section 5,
          by the Market Price on the "date of grant". The date that the
          Committee approves the incentive awards for the Plan Year shall be
          deemed to be the date of grant. If the amount of the award is not
          evenly divisible by such Market Price, then the remainder shall be
          paid to the Participant in cash.

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     (ii) RIGHTS AND OBLIGATIONS ON RESTRICTED COMMON STOCK A certificate for
          all shares of Restricted Common Stock registered in the name of a
          Participant shall be delivered to the office of the corporate
          secretary for safekeeping. The Participant shall thereupon be a
          stockholder and have all the rights of a stockholder with respect to
          such shares, including the right to vote and receive all dividends or
          other distributions made or paid with respect to such shares;
          provided, that, in the discretion of the Compensation Committee, all
          such distributions that are not capital stock of the employer of the
          Participant shall be converted to capital stock of such employer, and
          provided further, that such shares of Restricted Common Stock, and any
          new, additional or different securities the Participant may become
          entitled to receive with respect to such shares by virtue of a stock
          split or stock dividend or any other change in the corporate or
          capital structure of the Company, shall be subject to the restrictions
          described in Section 7 (b)(iii).

    (iii) RESTRICTIONS ON RESTRICTED COMMON STOCK Prior to their release as
          provided in Section 7(b)(iv), the shares of Restricted Common Stock
          may not be sold, exchanged, transferred, pledged, hypothecated, or
          otherwise disposed of by the Participant. However, nothing herein
          shall preclude a Participant from making a gift of any shares of
          Restricted Common Stock to a spouse, child, step-child, grandchild,
          parent or sibling, or legal dependent of the Participant or to a trust
          of which the beneficiary or beneficiaries of the corpus and the income
          shall be either such a person or the Participant; provided that, the
          Restricted Common Stock so given shall remain subject to the
          restrictions, obligations and conditions described in this Section.

     (iv) RELEASE OF RESTRICTIONS AND DELIVERY OF SHARES All restrictions on
          Restricted Common Stock shall lapse on the first day of the fourth
          fiscal year following the Plan Year for which the Restricted Common
          Stock was awarded (the "Release of Restriction Date"); provided,
          however that in the event of termination of employment with the
          Company, Subsidiary, or Affiliate prior to the Release of Restriction
          Date for any reason other than the Participant's (i) retirement on or
          after 60, (ii) Disability, (iii) death, or (iv) termination by the
          Company without cause, all rights to any shares of Restricted Common
          Stock with respect to such award shall be forfeited to the Company and
          certificates for such shares shall be cancelled and of no further
          effect.

          Any shares of Restricted Common Stock held by the office of the
          corporate secretary on the Release of Restriction Date shall be
          delivered, free and clear of all restrictions, to (A) the Participant
          upon the Release of Restriction Date, his or her retirement on or
          after 60, Disability, or termination without cause; or (B) his or her
          Beneficiary upon his or her death before retirement.

(c)  OPTIONS

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     (i)  COMPUTATION OF NUMBER Each Participant electing to receive Options
          shall have granted to him or her an option for that number of shares
          of Common Stock equal to three times the number of shares of
          Restricted Common Stock available to such Participant as computed
          pursuant to Section 7(b)(i) above. The date that the Committee
          approves the incentive awards for the Plan Year shall be deemed to be
          the date of grant. If the amount of the award is not evenly divisible
          by such value, then the remainder shall be paid to the Participant in
          cash.

     (ii) OPTION TERMS The Common Stock options shall be subject to an agreement
          between the grantee and the Corporation (an "Option Agreement") and
          will contain the following terms:

          (A)  the Common Stock options shall be non- qualified options granted
               pursuant to the DST Systems, Inc. 1995 Stock Option and
               Performance Award Plan (the "Option Plan");

          (B)  the option price shall be the fair market value (as defined in
               the Option Plan) on the date of grant;

          (C)  the options shall become exercisable on the last day of the third
               calendar year following the calendar year for which the bonus
               allocated to the option was earned, subject to becoming
               exercisable earlier upon retirement, death, disability;

          (D)  the options shall have a reload feature which would be effective
               only if the fair market value of the Common Stock has increased
               at least 20% from the date of grant to the date of exercise;

          (E)  the options shall be further subject to the terms and conditions
               set forth in the Option Agreement.

SECTION 8. CHANGE IN CONTROL

(a)  EFFECT ON RESTRICTED COMMON STOCK AND OPTIONS In the event of a Change in
     Control (as defined below), all time periods and requirements necessary to
     cause a release of restrictions as set forth in Section 7(b)(iv) shall be
     deemed to have been met; and, the Release of Restrictions Date will be
     deemed to be upon such Change in Control. Any shares of Restricted Common
     Stock then held by the office of the corporate secretary shall be delivered
     to the Participant upon such Release of Restrictions, free and clear of all
     restrictions. The effect of a change of control on Options shall be
     determined under the Option Agreement.

(b)  EFFECT ON PLAN YEAR Notwithstanding anything in the Plan to the contrary,
     in the event of a Change in Control:

     (i)  the Plan Year will end as of the Change in Control;

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     (ii) the attained level of performance with respect to any and all
          performance goals and weighting and the resulting incentive award
          earned for the Plan Year shall be deemed to be at Maximum, without
          reduction for a short Plan Year; and

    (iii) the incentive award for the Plan Year shall be paid promptly in cash.

(c)  CHANGE IN CONTROL DEFINED For purposes of this Plan, a "Change in Control"
     shall be deemed to have occurred if the conditions in (i), (ii), or (iii)
     are met:

     (i)  for any reason at any time less than seventy-five percent (75%) of the
          members of the Board shall be individuals who fall into any of the
          following categories:

          (A)  individuals who were members of such Board on September 1, 1995;

          (B)  individuals whose election, or nomination for election by the
               Company's stockholders, was approved by a vote of at least
               seventy-five percent (75%) of the members of the Board then still
               in office who were members of such Board on September 1, 1995; or

          (C)  individuals whose election, or nomination for election by the
               Company's stockholders, was approved by a vote of at least
               seventy-five percent (75%) of the members of the Board then still
               in office who were elected in the manner described in (A) or (B)
               above.

     (ii) any "person" (as such term is used in Sections 13(d) and 14(d)(2) of
          the Exchange Act) shall have become, according to a public
          announcement or filing, without the prior approval of the Board, the
          "beneficial owner" (as defined in Rule 13(d)-3 under the Exchange Act)
          directly or indirectly, of securities of the Company representing
          twenty percent (20%) or more (calculated in accordance with Rule
          13(d)-3) of the combined voting power of the Company's then
          outstanding voting securities (such "person" hereafter referred to as
          a "Major Stockholder"). For purposes of the Plan, Kansas City Southern
          Industries, Inc. shall not be deemed to be a Major Stockholder unless
          its ownership of voting securities of the Company, directly or
          indirectly, falls below twenty percent (20%) and subsequently
          increases to represent twenty percent (20%) or more of the Company's
          then outstanding voting securities.

    (iii) the stockholders of the Company shall have approved a merger,
          consolidation or dissolution of the Company or a sale, lease, exchange
          or disposition of all or substantially all of the Company's assets, or
          a Major Stockholder shall have proposed any such transaction, unless
          such merger, consolidation, dissolution, sale, lease, exchange or
          disposition shall have been approved by at least seventy-five percent
          (75%) of the members of the Board who are individuals falling into any
          combination of the following categories:

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          (A)  individuals who were members of such Board on September 1, 1995;

          (B)  individuals whose election or nomination for election by the
               Company's stockholders was approved by at least seventy-five
               percent (75%) of the members of the Board then still in office
               who are members of the Board on September 1, 1995; or

          (C)  individuals whose election, or nomination for election by the
               Company's stockholders was approved by a vote of at least
               seventy-five percent (75%) of the members of the Board then still
               in office who were elected in the manner described in (A) or (B)
               above.

SECTION 9. PLAN ADMINISTRATION

The Plan shall be administered by the Committee which is authorized to establish
such rules and procedures necessary to carry out its tasks. The Committee shall
have sole discretion in interpreting and in exercising its authority under the
Plan. Any action of the Committee with respect to the Plan shall be final,
conclusive and binding on all persons including the Company, Subsidiaries,
Affiliates, Participants, and any person claiming any rights under the Plan from
or through any Participant.

Except for those functions that must be performed by the Committee pursuant to
Section 16 of the Securities Exchange Act of 1934 and other applicable law, the
Committee may delegate to officers of the Company the authority, subject to such
terms as the Committee shall determine, to perform administrative functions.
Notwithstanding anything herein to the contrary, the Committee shall be solely
responsible for certifying, in writing, prior to payment of any incentive awards
that the performance goals and other material terms were satisfied.

SECTION 10. NO RIGHT TO CONTINUED EMPLOYMENT

Neither the establishment of the Plan, the participation by an individual in the
Plan nor the payment of any award hereunder or any other action pursuant to the
Plan shall be held or construed to confer upon any Participant the right to
continue in the employ of the Company, a Subsidiary, or Affiliate or affect any
right which the Company or its Subsidiaries have to terminate at will the
employment of any such Participant.

SECTION 11. NON-TRANSFERABILITY OF AWARDS

Except as otherwise provided in this Plan, no amount payable at any time under
the Plan shall be subject to alienation by anticipation, sale, transfer,
assignment, bankruptcy, pledge, attachment, charge, or encumbrance of any kind
nor in any manner be subject to the debts or liabilities of any person, and any
attempt to so alienate or subject any such amount shall be void.

SECTION 12. AMENDMENT AND TERMINATION OF THE PLAN

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The Committee may amend or terminate this Plan in whole or in part at any time
without the consent of or prior notice to any Participant including, but not
limited to modifying (a) the Targeted EPS, (b) the incentive award opportunity
levels for any or all Participants, (c) the weighting between annual and
cumulative Targeted EPS, (d) the percentages of cash, restricted stock (or other
equity components such as options) to be paid to a Participant as an incentive
award. No such amendment or termination shall adversely affect the right of a
Participant to receive any amount to which he has become entitled by achieving
goals prior to such amendment or termination. In the event of a termination of
the Plan or an amendment which adversely affects the computation of an award to
a Participant which occurs during a Plan Year, the Participant shall be entitled
to receive (i) a prorata award to the effective date of such termination or
amendment, calculated under the terms and conditions of the Plan immediately
prior to such effective date and (ii) any award provided by such amended Plan
for the balance of such Plan Year. Upon termination of this Plan, any Restricted
Common Stock held by the office of the corporate secretary shall remain subject
to the restrictions, obligations, rights and conditions described in Sections 7
and 8 as though the Plan had not terminated.

SECTION 13. INDEMNIFICATION

The Company shall indemnify and hold harmless the Committee and each Committee
member against any and all claims, loss, damage, expense or liability arising
from any good faith action or failure to act with respect to this Plan.

SECTION 14. INCAPACITY

If the Committee determines that any person entitled to payments under the Plan
is unable to care for his or her affairs because of illness or accident, or has
died without naming a Beneficiary, unless a prior claim has been made by a duly
appointed legal representative, any payment due to such person or his or her
estate may, if the Committee so directs, be paid to the person's spouse, child,
a relative, an institution maintaining or having custody of such person, or any
other person the Committee deems to be a proper recipient on behalf of the
person entitled to the payment.

SECTION 15. GOVERNING LAW

The provisions of the Plan shall be construed and interpreted according to the
laws of the State of Missouri without reference to its principles of conflicts
of law.

SECTION 16. SEVERABILITY

If any provision of the Plan is held invalid or unenforceable, such invalidity
or unenforceability shall not affect any other provision of the Plan, and the
Plan shall be construed and enforced as if such provision had not been included.

SECTION 17. HEADINGS

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The headings of sections of the Plan are for convenience of reference. In case
of any conflict, the text of the Plan, rather than such headings, shall control.

                                    * * * * *

This Plan adopted by the Compensation Committee this 27th day of February, 1997.

By: /s/ M. JEANNINE STRANDJORD
   ---------------------------------
   M. Jeannine Strandjord
   Chair, DST Systems, Inc. Compensation Committee

The Plan Amended and Restated as of February 28, 2001.

                                       /s/ M. JEANNINE STRANDJORD
                                       ---------------------------------
                                       M. Jeannine Strandjord
                                       Chair, DST Systems, Inc.
                                       Compensation Committee

                                       10<PAGE>
                                                                  Exhibit 10.26

                                DST SYSTEMS, INC.
                  1995 STOCK OPTION AND PERFORMANCE AWARD PLAN,
          RESTATED AS OF 09/26/00 TO REFLECT ADJUSTMENTS MADE FOLLOWING
                        2 FOR 1 SPLIT OF DST COMMON STOCK

SECTION 1. PURPOSE.

     The purposes of the DST Systems, Inc. 1995 Stock Option and Performance
Award Plan (the "Plan") are to generate an increased incentive for Employees of
the Company to contribute to the Company's future success, to secure for the
Company and its stockholders the benefits inherent in equity ownership by
Employees of the Company and to enhance the ability of the Company and its
Affiliates to attract and retain exceptionally qualified Employees upon whom, in
large measure, the sustained progress, growth and profitability of the Company
depend. By encouraging Employees of the Company and its Affiliates to acquire a
proprietary interest in the Company's growth and performance, the Company
intends to more closely align the interests of the Company's Employees,
management and stockholders and motivate Employees to enhance the value of the
Company for the benefit of all stockholders.

SECTION 2. DEFINITIONS.

     As used in the Plan, the following terms shall have the meanings set forth
below:

          (a)  "Affiliate" means (i) any Person that directly, or through one
               (1) or more intermediaries, controls, or is controlled by, or is
               under common control with, the Company, (ii) any entity in which
               the Company has an equity interest of at least fifty percent
               (50%), and (iii) any entity in which the Company has any other
               significant equity interest, as determined by the Committee.

          (b)  "Award" means any Option, Stock Appreciation Right, Limited
               Right, Performance Share, Performance Unit, Restricted Stock,
               Shares, Dividend Equivalent, or any other right, interest, or
               option relating to Shares granted pursuant to the provisions of
               the Plan.

          (c)  "Award Agreement" means any written agreement, contract, or other
               instrument or document evidencing any Award granted hereunder and
               signed by both the Company and the Participant or by both the
               Company and an Outside Director.

          (d)  "Board" means the Board of Directors of the Company.

          (e)  "Code" means the Internal Revenue Code of 1986, as amended from
               time to time.

          (f)  "Committee" means the Compensation Committee of the Board, or
               such other committee designated by the Board, authorized to
               administer the Plan under Section 3 hereof. The Committee shall
               consist of not less

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               than three (3) directors, each of whom is a Disinterested Person
               within the meaning of Rule 16b-3 and an outside director within
               the meaning of Code Section 162(m). Until the date of completion
               of the Public Offering, the KCSI Compensation and Organization
               Committee shall serve as the Committee authorized to administer
               this Plan.

          (g)  "Company" means DST Systems, Inc., a Delaware corporation.

          (h)  "Dividend Equivalent" means any right granted pursuant to Section
               13(f) hereof.

          (i)  "Employee" means any management employee or employee with long
               standing service with the Company or of any Affiliate, as
               determined by the Committee, regularly employed for more than
               twenty (20) hours per week and more than five (5) months per
               year.

          (j)  "Exchange Act" means the Securities and Exchange Act of 1934, as
               amended, or any successors thereto, and the rules and regulations
               promulgated thereunder, all as shall be amended from time to
               time.

          (k)  "Fair Market Value" means, with respect to any property, the
               market value of such property determined by such methods or
               procedures as shall be established from time to time by the
               Committee.

          (l)  "Incentive Stock Option" means an Option granted under Section 6
               hereof that is intended to meet the requirements of Section 422
               of the Code or any successor provision thereto.

          (m)  "KCSI" means Kansas City Southern Industries, Inc., a Delaware
               corporation.

          (n)  "Limited Right" means any right granted to a Participant pursuant
               to Section 7(b) hereof.

          (o)  "Non-Qualified Stock Option" means an Option granted under
               Section 6 hereof that is not intended to be an Incentive Stock
               Option, and an Option granted to an Outside Director pursuant to
               Section 9 hereof.

          (p)  "Option" means an Incentive Stock Option or Non-Qualified Stock
               Option.

          (q)  "Outside Director" means a member of the Board who is not an
               Employee of the Company or of any Affiliate.

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          (r)  "Participant" means an Employee who is selected to receive an
               Award under the Plan.

          (s)  "Performance Award" means any Award of Performance Shares or
               Performance Units pursuant to Section 8 hereof.

          (t)  "Performance Period" means that period established by the
               Committee at the time any Performance Award is granted or at any
               time thereafter during which any performance goals specified by
               the Committee with respect to such Award are to be measured.

          (u)  "Performance Share" means any grant pursuant to Section 8 hereof
               of a unit valued by reference to a designated number of Shares.

          (v)  "Performance Unit" means any grant pursuant to Section 8 hereof
               of (i) a bonus consisting of cash or other property the amount or
               value of which, and/or the entitlement to which, is conditioned
               upon the attainment of any performance goals specified by the
               Committee, or (ii) a unit valued by reference to a designated
               amount of property other than Shares.

          (w)  "Person" means any individual, corporation, partnership,
               association, joint-stock company, trust, unincorporated
               organization, or government or political subdivision thereof.

          (x)  "Public Offering" means a public offering of Shares of the
               Company which results in a reduction of KCSI's ownership of
               Shares to less than eighty percent (80%).

          (y)  "Rule 16b-3" means Rule 16b-3 promulgated by the Securities and
               Exchange Commission under the Securities Exchange Act of 1934, as
               amended, or any successor rule or regulation thereto.

          (z)  "Shares" means shares of the common stock of the Company, one
               cent ($.01) par value.

          (aa) "Stock Appreciation Right" means any right granted to a
               Participant pursuant to Section 7(a) hereof.

          (ab) "Stockholders Meeting" means the annual meeting of stockholders
               of the Company in each year.

          (ac) "Restricted Stock" means any Share issued with the restriction
               that the holder may not sell, transfer, pledge, or assign such
               Share and with such other restrictions as the Committee, in its
               sole discretion, may impose

                                       3
<PAGE>

               (including, without limitation, any restriction on the right to
               vote such Share, and the right to receive any cash dividends),
               which restrictions may lapse separately or in combination upon
               such conditions and at such time or times, in installments or
               otherwise, as the Committee may deem appropriate, and which
               restriction shall provide that the Shares subject to such
               restriction shall be forfeited if the restriction does not lapse
               prior to such date or such event as the Committee may deem
               appropriate.

          (ad) "Restricted Stock Award" means an award of Restricted Stock under
               Section 8A hereof.

SECTION 3. ADMINISTRATION.

     The Plan shall be administered by the Committee. Subject to applicable law
and the terms of the Plan, the Committee shall have full power and authority to:
(i) designate Participants; (ii) determine the type or types of Awards to be
granted to each Participant hereunder; (iii) determine the number of Shares to
be covered by or with respect to which payments, rights, or other matters are to
be calculated in connection with each Award; (iv) determine the terms and
conditions of any Award; (v) determine whether, to what extent, and under what
circumstances Awards may be settled or exercised in cash, Shares, other
securities, other Awards, or other property, or canceled, forfeited, or
suspended, and the method or methods by which Awards may be settled, exercised,
canceled, forfeited, or suspended; (vi) determine whether, to what extent and
under what circumstances cash, Shares, other securities, other Awards, other
property and other amounts payable with respect to an Award under this Plan
shall be deferred either automatically or at the election of the Participant or
the Committee; (vii) interpret and administer the Plan and any instrument or
agreement relating to, or Award made under, the Plan; (viii) establish, amend,
suspend or waive such rules and regulations and appoint such agents as it shall
deem appropriate for the proper administration of the Plan; and (ix) make any
other determination and take any other action that the Committee deems necessary
or desirable for administration of the Plan. Subject to the terms of the Plan
(including without limitation Section 11 hereof), the Committee shall also have
the authority to grant Awards in replacement of Awards previously granted under
this Plan or any other compensation plan of the Company or an Affiliate. Unless
otherwise expressly provided in the Plan, all determinations, designations,
interpretations, and other decisions of the Committee shall be final, conclusive
and binding upon all Persons, including the Company, any Participant, any
stockholder, and any Employee of the Company or of any Affiliate. All
determinations of the Committee shall be made by a majority of its members. The
Committee, in its discretion, may delegate its authority and duties under the
Plan to the Chief Executive Officer and/or to other officers of the Company
under such conditions and/or limitations as the Committee may establish;
provided, however, that only the Committee may select and grant Awards, or
otherwise take any action with respect to Awards, to Participants who are (i)
officers or directors of the Company for purposes of Section 16 of the Exchange
Act; or (ii) Participants who are "covered employees" under Section 162(m) of
the Code.

                                       4
<PAGE>

SECTION 4. SHARES SUBJECT TO THE PLAN.

          (a)  Subject to adjustment as provided in Section 4(c), a total of
               Twenty-Four Million (24,000,000) Shares shall be available for
               the grant of Awards under the Plan. Any Shares issued hereunder
               may consist, in whole or in part, of authorized and unissued
               shares or treasury shares. If any Shares subject to any Award
               granted hereunder are forfeited or such Award otherwise
               terminates without the issuance of such Shares or of other
               consideration in lieu 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. In addition, to the
               extent permitted by Section 422 of the Code, any Shares issued
               by, and any Awards granted by or that become obligations of, the
               Company through or as the result of the assumption of outstanding
               grants or the substitution of Shares under outstanding grants of
               an acquired company shall not reduce the Shares available for
               grants under the Plan (except in the case of Awards granted to
               Participants who are officers or directors of the Company to the
               extent required by Section 16 of the Exchange Act).

          (b)  For purposes of this Section 4,

               (i)  If an Award (other than a Dividend Equivalent) is
                    denominated in Shares, the number of Shares covered by such
                    Award, or to which such Award relates, shall be counted on
                    the date of grant of such Award against the aggregate number
                    of Shares available for granting Awards under the Plan;

               (ii) Dividend Equivalents and Awards not denominated in Shares
                    shall be counted against the aggregate number of Shares
                    available for granting Awards under the Plan in such amount
                    and at such time as the Committee shall determine under
                    procedures adopted by the Committee consistent with the
                    purposes of the Plan; and

              (iii) Awards that operate in tandem with (whether granted
                    simultaneously with or at a different time from), or that
                    are substituted for, other Awards or awards under other
                    Company plans may be counted or not counted under procedures
                    adopted by the Committee in order to avoid double counting.

          (c)  In the event that the Committee shall determine that any dividend
               or other distribution (whether in the form of cash, Shares, or
               other securities or property), stock split, reverse stock split,
               merger, reorganization, consolidation, recapitalization, split-
               up, spin-off, repurchase, exchange of shares, issuance of
               warrants or other rights to purchase Shares or other securities
               of the Company, or other transaction or event affects the Shares
               such that an adjustment is determined by the Committee to be
               appropriate in order to prevent dilution or

                                       5
<PAGE>

               enlargement of the benefits or potential benefits intended to be
               made available under the Plan, then the Committee may: (i) make
               adjustments in the aggregate number and class of shares or
               property which may be delivered under the Plan and may substitute
               other shares or property for delivery under the Plan, including
               shares of another entity which is a party to any such merger,
               reorganization, consolidation or exchange of shares; and (ii)
               make adjustments in the number, class and option price of shares
               or property subject to outstanding Awards and Options granted
               under the Plan, and may substitute other shares or property for
               delivery under outstanding Awards and Options, including shares
               of another entity which is a party to any such merger,
               reorganization, consolidation or exchange of shares, as may be
               determined to be appropriate by the Committee in its sole
               discretion, provided that the number of Shares subject to any
               Award or Option shall always be a whole number. The preceding
               sentence shall not limit the actions which may be taken by the
               Committee under Section 10 of the Plan. No adjustment shall be
               made with respect to Awards of Incentive Stock Options that would
               cause the Plan to violate Section 422 of the Code.

SECTION 5. ELIGIBILITY.

     Any Employee shall be eligible to be selected as a Participant.
Notwithstanding any other provision of the Plan to the contrary, no Participant
may be granted an Option, Limited Right, Stock Appreciation Right, Performance
Shares, Shares or Restricted Stock with respect to a number of Shares in any one
(1) calendar year which, when added to the Shares subject to any other Option,
Limited Right, Stock Appreciation Right, Performance Shares, Shares or
Restricted Stock granted to such Participant in the same calendar year shall
exceed Eight Hundred Thousand (800,000) Shares. If an Option, Limited Right,
Stock Appreciation Right, or Performance Share is cancelled, the cancelled
Option, Limited Right, Stock Appreciation Right or Performance Share continues
to count against the maximum number of Shares for which an Option, Limited
Right, Stock Appreciation Right or Performance Share may be granted to a
Participant in any calendar year. All Shares specified in this Section 5 shall
be adjusted to the extent necessary to reflect adjustments to Shares required by
Section 4(c) hereof. No Participant may be granted Performance Units in any one
(1) calendar year which when added to all other Performance Units granted to
such Participant in the same calendar year shall exceed 300% of the
Participant's annual base salary as of the first day of such calendar year (or,
if later, as of the date on which the Participant becomes an Employee);
provided, however, that no more than $1,000,000 of annual base salary may be
taken into account for purposes of determining the maximum amount of Performance
Units which may be granted in any calendar year to any Participant.

                                       6
<PAGE>

SECTION 6. STOCK OPTIONS.

     Options may be granted hereunder to Participants either alone or in
addition to other Awards granted under the Plan. Options may be Incentive Stock
Options within the meaning of Section 422 of the Code or Non-Qualified Stock
Options (i.e., stock options which are not Incentive Stock Options), or a
combination thereof. Any Option granted to a Participant under the Plan shall be
evidenced by an Award Agreement in such form as the Committee may from time to
time approve. Any such Option shall be subject to the following terms and
conditions and to such additional terms and conditions, not inconsistent with
the provisions of the Plan, as the Committee shall deem desirable:

          (a)  Option Price. The purchase price per Share purchasable under an
               Option shall be determined by the Committee; provided, however,
               that such purchase price shall not be less than one hundred
               percent (100%) of the Fair Market Value of the Share on the
               effective date of the grant of the Option (or, if the Committee
               so determines, in the case of any Option retroactively granted in
               tandem with or in substitution for another Award or any
               outstanding Award granted under any other plan of the Company, on
               the effective date of grant of such other Award or award under
               another Company plan).

          (b)  Option Term. The term of each Option shall be fixed by the
               Committee in its sole discretion; except as provided below for
               Incentive Stock Options.

          (c)  Exercisability. Options shall be exercisable at such time or
               times and subject to such exercise acceleration conditions (if
               any) as determined by the Committee at or subsequent to grant;
               except as otherwise provided in Section 10(a).

          (d)  Method of Exercise. Subject to the other provisions of the Plan
               and any applicable Award Agreement, any Option may be exercised
               by the Participant in whole or in part at such time or times, and
               the Participant may make payment of the option price in such form
               or forms as the Committee shall determine, including, without
               limitation, payment by delivery of cash, Shares, Restricted
               Stock, or other consideration (including, where permitted by law
               and the Committee, Awards) having a Fair Market Value on the
               exercise date equal to the total option price, or by any
               combination of cash, Shares, Restricted Stock and other
               consideration as the Committee may specify in the applicable
               Award Agreement; provided, however, that if Restricted Stock is
               surrendered to pay the option price, an equal number of shares
               issued as a result of the option exercise shall be subject to the
               same restrictions.

          (e)  Incentive Stock Options. In accordance with rules and procedures
               established by the Committee, the aggregate Fair Market Value
               (determined as of the time of grant) of the Shares with respect
               to which Incentive Stock Options held by any Participant are
               exercisable for the first time by such Participant during any
               calendar year under the Plan (and under any other benefit plans
               of the Company

                                       7
<PAGE>

               or of any parent or subsidiary corporation of the Company as
               defined in Section 424 of the Code) shall not exceed One Hundred
               Thousand Dollars ($100,000) or, if different, the maximum
               limitation in effect at the time of grant under Section 422 of
               the Code, or any successor provision, and any regulations
               promulgated thereunder. The option price per Share purchasable
               under an Incentive Stock Option shall not be less than one
               hundred percent (100%) of the Fair Market Value of the Share on
               the date of grant of the Option. Each Incentive Stock Option
               shall expire not later than ten (10) years from its date of
               grant. No Incentive Stock Option shall be granted to any
               Participant if at the time the Option is granted such Participant
               owns stock possessing more than ten percent (10%) of the total
               combined voting power of all classes of stock of the Company, its
               parent or its subsidiaries unless (i) the option price per Share
               is at least one hundred and ten percent (110%) of the Fair Market
               Value of the Share on the date of grant, and (ii) such Option by
               its terms is not exercisable after the expiration of five (5)
               years from the date such Option is granted. The terms of any
               Incentive Stock Option granted hereunder shall comply in all
               respects with the provisions of Section 422 of the Code, or any
               successor provision, and any regulations promulgated thereunder.

          (f)  Form of Settlement. In its sole discretion, the Committee may
               provide at the time of grant that the Shares to be issued upon an
               Option's exercise shall be in the form of Shares subject to
               restrictions as the Committee may determine, or other similar
               securities, or may reserve the right so to provide after the time
               of grant.

          (g)  Reload Options. If and to the extent the Committee expressly
               provides, at the time of grant or later, that the Participant
               shall have the right to receive reload options with respect to
               Non-Qualified Stock Options, the Participant shall receive reload
               options in accordance with and subject to the following terms and
               conditions:

               (i)  Grant of the Reload Option; Number of Shares; Price. Subject
                    to paragraph (ii) of this Subsection and, except as provided
                    in paragraph (viii) hereof, to the availability of Shares to
                    be optioned to the Participant under the Plan (including the
                    limitations set forth in Section 5), if a Participant has an
                    Option (the "original option") with reload rights and pays
                    for the exercise of the original option by surrendering
                    Shares or Restricted Stock (whether by means of delivering
                    Shares or Restricted Stock previously held by the optionee
                    or by delivering Shares or Restricted Stock simultaneously
                    acquired on exercise of the original option), the
                    Participant shall receive a new Option ("reload option") for
                    the number of Shares or Restricted Shares so surrendered at
                    an option price per Share equal to the Fair Market Value of
                    a Share on the date of the exercise of the original option.

                                       8
<PAGE>

               (ii) Conditions to Grant of Reload Option. A reload option will
                    not be granted: (A) if the Fair Market Value of a Share on
                    the date of exercise of the original option is less than the
                    exercise price of the original option; or (B) if the
                    Participant is no longer an Employee of the Company or an
                    Affiliate.

              (iii) Term of Reload Option. The reload option shall expire on
                    the same date as the original option, or at such later date
                    as the Committee may provide.

               (iv) Type of Option. The reload option shall be a Non-Qualified
                    Stock Option.

               (v)  Additional Reload Options. Except as expressly provided by
                    the Committee (at the time of the grant of the original
                    option or reload option or later), reload options shall not
                    include any right to subsequent reload options.

               (vi) Date of Grant, Vesting. The date of grant of the reload
                    option shall be the date of the exercise of the original
                    option. The reload options shall be exercisable in full
                    beginning from date of grant, except as otherwise provided
                    by the Committee.

              (vii) Stock Withholding; Grants of Reload Options. If and to the
                    extent permitted by the Committee, if the other requirements
                    of this Subsection are satisfied, and if Shares are withheld
                    or Shares surrendered for tax withholding pursuant to
                    Section 13(g), a reload option will be granted for the
                    number of Shares surrendered as payment for the exercise of
                    the original option plus the number of Shares surrendered or
                    withheld to satisfy tax withholding.

             (viii) Share Limits. Reload options shall not be counted against
                    or as a reduction from the number of shares available for
                    grant under Section 4 hereof because such grants are a
                    substitute for Shares transferred to or withheld by the
                    Company.

               (ix) Other Terms and Conditions. In connection with reload
                    options for officers who are subject to Section 16 of the
                    Exchange Act, the Committee may at any time impose any
                    limitations which, in the Committee's sole discretion, are
                    necessary or desirable in order to comply with Section 16(b)
                    of the Exchange Act and the rules and regulations
                    thereunder, or in order to obtain any exemption therefrom.
                    Except as otherwise provided in this Subsection, all the
                    provisions of the Plan shall apply to reload options.

                                       9
<PAGE>

SECTION 7. STOCK APPRECIATION AND LIMITED RIGHTS.

          (a)  Stock Appreciation Rights may be granted hereunder to
               Participants either alone or in addition to other Awards granted
               under the Plan and may, but need not, relate to a specific Option
               granted under Section 6. The provisions of Stock Appreciation
               Rights need not be the same with respect to each recipient. Any
               Stock Appreciation Right related to a Non-Qualified 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
               Stock Appreciation Right related to an Incentive Stock Option
               must be granted at the same time such Option is granted and must
               have a grant price equal to the option price of such Option. In
               the case of any Stock Appreciation Right related to any Option,
               the Stock Appreciation Right or applicable portion thereof shall
               terminate and no longer be exercisable upon the termination or
               exercise of the related Option, except that a Stock Appreciation
               Right granted with respect to less than the full number of Shares
               covered by a related Option shall not be reduced until the
               exercise or termination of the related Option exceeds the number
               of Shares not covered by the Stock Appreciation Right. Any Option
               related to any Stock Appreciation Right shall no longer be
               exercisable to the extent the related Stock Appreciation Right
               has been exercised. Any Stock Appreciation Right related to an
               Option shall be exercisable to the extent, and only to the
               extent, that the related Option is exercisable. The Committee may
               impose such other conditions or restrictions on the exercise of
               any Stock Appreciation Right as it shall deem appropriate.
               Subject to the terms of the Plan and any applicable Award
               Agreement, a Stock Appreciation Right granted under the Plan
               shall confer on the holder thereof a right to receive, upon
               exercise thereof, the excess of (i) the Fair Market Value of one
               (1) Share on the date of exercise or with respect to any right
               related to an Option other than an Incentive Stock Option, at any
               time during a specified period before or after the date of
               exercise as determined by the Committee over (ii) the grant price
               of the right as specified by the Committee, which shall not be
               less than the Fair Market Value of one (1) Share on the date of
               grant of the Stock Appreciation Right (or, if the Committee so
               determines, in the case of any Stock Appreciation Right
               retroactively granted in tandem with or in substitution for
               another Award or any outstanding award granted under any other
               plan of the Company, on the date of grant of such other Award or
               award), multiplied by the number of Shares as to which the holder
               is exercising the Stock Appreciation Right. Subject to the terms
               of the Plan and any applicable Award Agreement, the terms and
               conditions of any Stock Appreciation Right shall be as determined
               by the Committee. The Committee may impose such conditions or
               restrictions on the exercise of any Stock Appreciation Right as
               it may deem appropriate.

          (b)  Limited Rights may be granted hereunder to Participants only with
               respect to an Option granted under Section 6 hereof or a stock
               option granted under another plan of the Company. The provisions
               of Limited Rights need not be the same with respect to each
               recipient. Any Limited Right related to a Non-Qualified

                                       10
<PAGE>

               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 Limited Right related to an Incentive Stock
               Option must be granted at the same time such Option is granted. A
               Limited Right shall terminate and no longer be exercisable upon
               termination or exercise of the related Option, except that a
               Limited Right granted with respect to less than the full number
               of Shares covered by a related Option shall not be reduced until
               the exercise or termination of the related Option exceeds the
               number of Shares not covered by the Limited Right. Any Option
               related to any Limited Right shall no longer be exercisable to
               the extent the related Limited Right has been exercised. Any
               Limited Right shall be exercisable to the extent, and only to the
               extent, the related Option is exercisable and only during the
               three (3) month period immediately following a Change in Control
               of the Company (as defined in Section 10 hereof). The Committee
               may impose such other conditions or restrictions on the exercise
               of any Limited Right as it shall deem appropriate. Subject to the
               terms of the Plan and any applicable Award Agreement, a Limited
               Right granted under the Plan shall confer on the holder thereof a
               right to receive, upon exercise thereof, an amount equal to the
               excess of (i) the Fair Market Value of one (1) Share on the date
               of exercise or if greater and only with respect to any Limited
               Right related to an Option other than an Incentive Stock Option,
               the highest price per Share paid in connection with any Change in
               Control of the Company, over (ii) the option price of the related
               Option, multiplied by the number of Shares as to which the holder
               is exercising the Limited Right. The amount payable to the holder
               shall be paid by the Company in cash. Subject to the terms of the
               Plan and any applicable Award Agreement, the terms and conditions
               of any Limited Right shall be as determined by the Committee. The
               Committee may impose such conditions or restrictions on the
               exercise of any Limited Right as it may deem appropriate.

SECTION 8. PERFORMANCE AWARDS.

     Performance Awards may be issued hereunder to Participants in the form of
Performance Shares or Performance Units, for no cash consideration or for such
minimum consideration as may be required by applicable law, either alone or in
addition to other Awards granted under the Plan. The value represented by a
Performance Share or Unit shall be payable to, or upon the exercise by, the
Participant holding such Award, in whole or in part, following achievement of
such performance goals during such Performance Period as determined by the
Committee. Except as provided in Section 10, Performance Awards will be paid
only after the end of the relevant Performance Period. Performance Awards may be
paid in cash, Shares, Restricted Stock, Options, other property or any
combination thereof, in the sole discretion of the Committee at the time of
payment. The length of the Performance Period, the performance criteria or
levels to be achieved for each Performance Period, and the amount of the Award
to be distributed shall be conclusively determined by the Committee. Performance
Awards may be paid in a lump sum or in installments following the close of the
Performance Period or, in accordance with procedures established by the
Committee, on a

                                       11
<PAGE>

deferred basis. Notwithstanding the foregoing, an Award Agreement may condition
the vesting or exercise of a Performance Award on any combination of the
achievement of one or more performance goals and/or the completion of a
specified period of service as the Committee shall determine at the time of
grant. To the extent determined by the Committee, when making Performance Awards
the Committee shall adopt performance goals, certify completion of such goals
and comply with any other Code requirements necessary to be in compliance with
the performance- based compensation requirements of Code Section 162(m).
Performance goals for Performance Awards may be based, in whole or in part, on
one or more of the following performance-based criteria or such other criteria
as the Committee may determine: (i) attainment during the Performance Period of
a specified price per share of the Company's common stock; (ii) attainment
during the Performance Period of a specified rate of growth or increase in the
amount of growth in the price per share of the Company's common stock; (iii)
attainment during the Performance Period of a specified level of the Company's
earnings or earnings per share of the Company's common stock; (iv) attainment
during the Performance Period of a specified rate of growth or increase in the
amount of growth of the Company's earnings or earnings per share of the
Company's common stock; (v) attainment during the Performance Period of a
specified level of the Company's cash flow or cash flow per share of the
Company's common stock; (vi) attainment during the Performance Period of a
specific rate of growth or increase in the amount of growth of the Company's
cash flow or cash flow per share of the Company's common stock; (vii) attainment
during the Performance Period of a specified level of the Company's return on
equity; (viii) attainment during the Performance Period of a specific rate of
growth or increase in the amount of growth of the Company's return on equity;
(ix) attainment during the Performance Period of a specified level of the
Company's return on assets; or (x) attainment during the Performance Period of a
specific rate of growth or increase in the amount of growth of the Company's
return on assets.

SECTION 8A. RESTRICTED STOCK.

          (a)  Issuance. Restricted Stock Awards may be issued hereunder to
               Participants, for no cash consideration or for such minimum
               consideration as may be required by applicable law, either alone
               or in addition to other Awards granted under the Plan. The
               provisions of Restricted Stock Awards need not be the same with
               respect to each recipient. The granting of Restricted Stock shall
               take place on the date the Committee decides to grant the
               Restricted Stock, or if the Restricted Stock Award provides that
               the grant of Restricted Stock is conditioned upon the achievement
               of performance goals specified in the Restricted Stock Award, on
               a date established by the Committee following the achievement of
               such performance goals.

          (b)  Registration. Any Restricted Stock issued hereunder may be
               evidenced in such manner as the Committee in its sole discretion
               shall deem appropriate, including, without limitation, book-entry
               registration or issuance of a stock certificate or certificates.
               In the event any stock certificate is issued in respect of shares
               of Restricted Stock awarded under the Plan, such certificate
               shall be registered in the name of the Participant, shall bear an
               appropriate legend

                                       12
<PAGE>

               referring to the terms, conditions, and restrictions applicable
               to such Award, and shall be held in escrow by the Company.

          (c)  Forfeiture. A Restricted Stock Award may condition the grant of
               Restricted Stock and/or the lapse of any restriction or
               restrictions on Restricted Stock on any combination of the
               achievement of one or more performance goals and/or the
               completion of a specified period of service as the Committee
               shall determine at the time the Restricted Stock Award is made.
               To the extent determined by the Committee, when making Restricted
               Stock Awards the Committee shall adopt performance goals, certify
               completion of such goals and comply with any other Code
               requirements necessary to be in compliance with the performance-
               based compensation requirements of Code Section 162(m).
               Performance goals for Restricted Stock Awards may be based, in
               whole or in part, on one or more of the following
               performance-based criteria or such other criteria as the
               Committee may determine: (i) attainment during the Performance
               Period of a specified price per share of the Company's common
               stock; (ii) attainment during the Performance Period of a
               specified rate of growth or increase in the amount of growth in
               the price per share of the Company's common stock; (iii)
               attainment during the Performance Period of a specified level of
               the Company's earnings or earnings per share of the Company's
               common stock; (iv) attainment during the Performance Period of a
               specified rate of growth or increase in the amount of growth of
               the Company's earnings or earnings per share of the Company's
               common stock; (v) attainment during the Performance Period of a
               specified level of the Company's cash flow or cash flow per share
               of the Company's common stock; (vi) attainment during the
               Performance Period of a specific rate of growth or increase in
               the amount of growth of the Company's cash flow or cash flow per
               share of the Company's common stock; (vii) attainment during the
               Performance Period of a specified level of the Company's return
               on equity; (viii) attainment during the Performance Period of a
               specific rate of growth or increase in the amount of growth of
               the Company's return on equity; (ix) attainment during the
               Performance Period of a specified level of the Company's return
               on assets; or (x) attainment during the Performance Period of a
               specific rate of growth or increase in the amount of growth of
               the Company's return on assets.

                    As soon as practicable following the lapse of the
               restrictions on Restricted Stock, unrestricted Shares, evidenced
               in such manner as the Committee shall deem appropriate, shall be
               issued to the grantee.

                    Except as otherwise determined by the Committee at the time
               of grant, upon termination of employment for any reason before
               the restriction lapses, all shares of Restricted Stock still
               subject to restriction shall be forfeited by the Participant (who
               shall sign any document and take any other action required to
               assign such shares back to the Company) and reacquired by the
               Company.

                                       13
<PAGE>

SECTION 9. OUTSIDE DIRECTORS' OPTIONS.

          (a)  Grant of Options. Immediately prior to the Public Offering, and
               when an Outside Director first takes a position on the Board
               after the Public Offering, the Outside Director shall receive an
               Option to purchase Shares ("Initial Options"). On the date of
               each Stockholders' Meeting, each Outside Director shall
               automatically be granted an Option to purchase Shares ("Annual
               Options"); provided, however, that an Outside Director shall not
               be entitled to receive and shall not be granted any Annual
               Options on the date of any particular Stockholders' Meeting if he
               will not continue to serve as an Outside Director immediately
               following such Stockholders' Meeting. An Outside Director who
               first takes a position on the Board at the annual Stockholders'
               Meeting shall be entitled to receive the Initial Options plus the
               Annual Options. All such Options shall be Non-Qualified Stock
               Options. The number of Shares to be subject to the Initial Option
               and Annual Option grants shall be determined from time to time by
               the Committee. The price at which each Share covered by such
               Options may be purchased shall be one hundred percent (100%) of
               the fair market value of a Share on the date the Option is
               granted. Fair market value for purposes of this Section 9 shall
               be deemed to be the average of the high and low prices of the
               Shares as reported on the New York Stock Exchange Composite
               Transactions tape on the day the Option is granted or, if no sale
               of Shares shall have been made on that day, the next preceding
               day on which there was a sale of Shares. For purposes of Options
               granted immediately prior to the Public Offering, the Fair Market
               Value of the Shares subject to such Options shall be the offering
               price at which Shares are first sold in the Public Offering.

          (b)  Exercise of Options. Except as set forth in this Section 9, all
               Shares subject to an Option granted to an Outside Director shall
               become exercisable as follows: fifty percent (50%) on the day
               preceding the date of the first Stockholders' Meeting after the
               date of the grant of the Option; twenty-five percent (25%) on the
               day preceding the date of the second Stockholders' Meeting after
               the date of grant of the Option; and the remaining twenty-five
               percent (25%) on the day preceding the third Stockholders'
               Meeting after the date of grant of the Option. However, no Option
               shall be exercisable more than ten (10) years after the date of
               grant. Options may be exercised by an Outside Director during the
               period that: (i) the Outside Director remains a member of the
               Board; (ii) for a period of one (1) year after ceasing to be a
               member of the Board by reason of death; (iii) for the remaining
               term of the Option in the event of an Outside Director's
               disability; (iv) for the remaining term of the Option if the
               Outside Director retires (as defined below) from the Board; or
               (v) for a period of ninety (90) days after ceasing to be a member
               of the Board for reasons other than retirement, death or
               disability; however, only those Options exercisable at the date
               the Outside Director ceases to be a member of the Board shall
               remain exercisable. All Options held by an Outside Director shall
               become exercisable immediately prior to termination of the
               Outside Director's service on the Board by reason of

                                       14
<PAGE>

               an Outside Director's death, disability or retirement, except
               that Options shall not be exercisable earlier than six (6) months
               from the date of grant to the extent required by Section 16(b) of
               the Exchange Act. For purposes of this Section 9, "retire" or
               "retirement" shall mean discontinuance of service as a director
               after the director has reached age sixty (60) and has at least
               five (5) years or more of service on the Board. Notwithstanding
               any provision herein to the contrary, no Option hereunder shall
               be exercisable more than ten (10) years after the date of grant.
               All Options shall immediately become exercisable in the event of
               a Change in Control, as hereinafter defined, except that Options
               shall not be exercisable earlier than six (6) months from the
               date of grant if required for exemption under Rule 16(b)-3 under
               the Exchange Act.

                    If a former Outside Director shall die holding an Option
               that has not expired and has not been fully exercised, the Option
               shall remain exercisable until the later of one (1) year after
               the date of death or the end of the period in which the former
               Outside Director could have exercised the Option had he not died,
               but in no event shall the Option be exercisable more than ten
               (10) years after the date of grant. In the event of the death of
               an Outside Director or former Outside Director, his Options shall
               be exercisable only to the extent that they were exercisable at
               his date of death and only by the executor or administrator of
               the Outside Director's estate, by the person or persons to whom
               the Outside Director's rights under the Option shall pass under
               the Outside Director's will or the laws of descent and
               distribution, or by a beneficiary designated in writing in
               accordance with Section 13(a) hereof.

          (c)  Payment. An Option granted to an Outside Director shall be
               exercisable only upon payment to the Company of the full purchase
               price of the Shares with respect to which the Option is being
               exercised. Payment for the Shares shall be in United States
               dollars, payable in cash or by check or by delivery of Shares
               having a Fair Market Value on the exercise date equal to the
               total option price, or by any combination of cash and Shares.

SECTION 10. CHANGE IN CONTROL.

          (a)  In order to maintain the Participants' rights in the event of any
               Change in Control of the Company, as hereinafter defined, the
               Committee, as constituted before such Change in Control, may, in
               its sole discretion, as to any Award, either at the time an Award
               is made hereunder or any time thereafter, take any one (1) or
               more of the following actions: (i) provide for the purchase by
               the Company of any such Award, upon the Participant's request,
               for an amount of cash equal to the amount that could have been
               attained upon the exercise of such Award or realization of the
               Participant's rights had such Award been currently exercisable or
               payable; (ii) make such adjustment to any such Award then
               outstanding as the Committee deems appropriate to reflect such
               Change in Control; or (iii) cause any such Award then outstanding
               to be assumed, or new rights substituted therefor, by the
               acquiring or surviving corporation after such

                                       15
<PAGE>

               Change in Control. In the event of a Change of Control, there
               shall be an automatic acceleration of any time periods relating
               to the exercise or realization of any such Award and all
               performance award standards shall be deemed satisfactorily
               completed without any action required by the Committee so that
               such Award may be exercised or realized in full on or before a
               date fixed by the Committee, except no Award shall be exercisable
               earlier than six (6) months after the date of grant to the extent
               required by Section 16 of the Exchange Act. The Committee may, in
               its discretion, include such further provisions and limitations
               in any agreement documenting such Awards as it may deem equitable
               and in the best interests of the Company.

          (b)  For purposes of this Plan, a "Change in Control" shall be deemed
               to have occurred if (i) for any reason at any time less than
               seventy-five percent (75%) of the members of the Board of
               Directors of the Company shall be individuals who fall into any
               of the following categories: (A) individuals who were members of
               such Board on September 1, 1995; or (B) individuals whose
               election, or nomination for election by the Company's
               stockholders, was approved by a vote of at least seventy-five
               percent (75%) of the members of the Board then still in office
               who were members of such Board on September 1, 1995; or (C)
               individuals whose election, or nomination for election by the
               Company's stockholders, was approved by a vote of at least
               seventy-five percent (75%) of the members of the Board then still
               in office who were elected in the manner described in (A) or (B)
               above, or (ii) any "person" (as such term is used in Sections
               13(d) and 14(d)(2) of the Exchange Act) shall have become,
               according to a public announcement or filing, without the prior
               approval of the Board of Directors of the Company, the
               "beneficial owner" (as defined in Rule 13(d)-3 under the Exchange
               Act) directly or indirectly, of securities of the Company
               representing forty percent (40%) or more (calculated in
               accordance with Rule 13(d)-3) of the combined voting power of the
               Company's then outstanding voting securities (such "person"
               hereafter referred to as a "Major Stockholder"); or (iii) the
               stockholders of the Company shall have approved a merger,
               consolidation or dissolution of the Company or a sale, lease,
               exchange or disposition of all or substantially all of the
               Company's assets, or a Major Stockholder shall have proposed any
               such transaction, unless such merger, consolidation, dissolution,
               sale, lease, exchange or disposition shall have been approved by
               at least seventy-five percent (75%) of the members of the Board
               of Directors of the Company who are individuals falling into any
               combination of the following categories: (A) individuals who
               were members of such Board of Directors on September 1, 1995,
               or (B) individuals whose election or nomination for election by
               the Company's stockholders was approved by at least seventy-five
               percent (75%) of the members of the Board of Directors then
               still in office who are members of the Board of Directors on
               September 1, 1995, or (C) individuals whose election, or
               nomination for election by the Company's stockholders was
               approved by a vote of at least seventy-five percent (75%) of

                                       16
<PAGE>

               the members of the Board then still in office who were elected
               in manner described in (A) or (B) above.

SECTION 11. AMENDMENTS AND TERMINATION.

     The Board may amend, alter, suspend, discontinue, or terminate the Plan,
but no amendment, alteration, suspension, discontinuation, or termination shall
be made that would materially impair the rights of an optionee or Participant
under an Award theretofore granted, without the optionee's or Participant's
consent. In addition, the Board may consider for each amendment whether the
approval of stockholders is desirable or is necessary for the amendment to be
effective.

     The Committee may amend the terms of any Award theretofore granted,
prospectively or retroactively, and may also substitute new Awards for Awards
previously granted under this Plan or for awards granted under any other
compensation plan of the Company or an Affiliate to Participants, including
without limitation previously granted Options having higher option prices, but
no such amendment or substitution shall materially impair the rights of any
Participant without his consent.

     The Committee shall be authorized, without the Participant's consent, to
make adjustments in Performance Award criteria or in the terms and conditions of
other Awards in recognition of events that it deems in its sole discretion to be
unusual or nonrecurring that affect the Company or any Affiliate or the
financial statements of the Company or any Affiliate, or in recognition of
changes in applicable laws, regulations or accounting principles, whenever the
Committee determines that such adjustments are appropriate in order to prevent
the dilution or enlargement of benefits or potential benefits under the Plan.
The Committee may correct any defect, supply any omission or reconcile any
inconsistency in the Plan or any Award in the manner and to the extent it shall
deem desirable to carry it into effect. In the event the Company shall assume
outstanding employee benefit awards or the right or obligation to make future
such awards in connection with the acquisition of another corporation or
business entity, the Committee may, in its discretion, make such adjustments in
the terms of Awards under the Plan as it shall deem appropriate.

SECTION 12. TERMINATION OF EMPLOYMENT AND NONCOMPETITION.

     The Committee shall have full power and authority to determine whether, to
what extent and under what circumstances any Award shall be canceled or
suspended and shall promulgate rules and regulations to (i) determine what
events constitute disability, retirement, termination for an approved reason and
termination for cause for purposes of the Plan, and (ii) determine the treatment
of a Participant under the Plan in the event of his death, disability,
retirement, or termination for an approved reason. If a Participant's employment
with the Company or an Affiliate is terminated for cause, all unexercised,
unearned, and/or unpaid Awards, including, but not by way of limitation, Awards
earned, but not yet paid, all unpaid dividends and dividend equivalents, and all
interest accrued on the foregoing shall be canceled or forfeited, as the case
may be, unless the Participant's Award Agreement provides otherwise.

                                       17
<PAGE>

In addition, but without limitation, all outstanding Awards to any Participant
shall be canceled if the Participant, without the consent of the Committee,
while employed by the Company or after termination of such employment, becomes
associated with, employed by, renders services to, or owns any interest in
(other than any nonsubstantial interest, as determined by the Committee), any
business that is in competition with the Company or any Affiliate, or with any
business in which the Company or any Affiliate has a substantial interest as
determined by the Committee or such officers or committee of senior officers to
whom the authority to make such determination is delegated by the Committee.

SECTION 13. GENERAL PROVISIONS.

          (a)  Nonassignability. No Award shall be assignable or transferable by
               a Participant or an Outside Director otherwise than by will or by
               the laws of descent and distribution; provided, however, that a
               Participant or Outside Director may, pursuant to a written
               designation of beneficiary filed with and approved by the
               Committee prior to his death, designate a beneficiary to exercise
               the rights of the Participant with respect to any Award upon the
               death of the Participant or Outside Director. Each Award shall be
               exercisable during the lifetime of the Participant or the Outside
               Director, only by the Participant or the Outside Director or, if
               permissible under applicable law, by the guardian or legal
               representative of the Participant or Outside Director.

          (b)  Terms. Except for Options granted pursuant to Section 9, the term
               of each Award shall be for such period of months or years from
               the date of its grant as may be determined by the Committee;
               provided, however, that in no event shall the term of any
               Incentive Stock Option or any Stock Appreciation or Limited Right
               related to any Incentive Stock Option exceed a period of ten (10)
               years from the date of its grant.

          (c)  Rights to Awards. No Employee, Participant or other Person shall
               have any claim to be granted any Award under the Plan, and there
               is no obligation for uniformity of treatment of Employees,
               Participants, or holders or beneficiaries of Awards under the
               Plan.

          (d)  No Cash Consideration for Awards. Awards shall be granted for no
               cash consideration or for such minimal cash consideration as may
               be required by applicable law.

          (e)  Restrictions. All certificates for Shares delivered under the
               Plan pursuant to any Award shall be subject to such
               stock-transfer orders and other restrictions as the Committee may
               deem advisable under the rules, regulations, and other
               requirements of the Securities and Exchange Commission, any stock
               exchange upon which the Shares are then listed, and any
               applicable Federal or state securities law, and the Committee may
               cause a legend or legends to be placed on any such certificates
               to make appropriate reference to such restrictions.

                                       18
<PAGE>

          (f)  Dividend Equivalents. Subject to the provisions of this Plan and
               any Award Agreement, the recipient of an Award (including,
               without limitation, any deferred Award) may, if so determined by
               the Committee, be entitled to receive, currently or on a deferred
               basis, interest or dividends, or interest or dividend
               equivalents, with respect to the number of Shares covered by the
               Award, as determined by the Committee, in its sole discretion,
               and the Committee may provide that such amounts (if any) shall be
               deemed to have been reinvested in additional Shares or otherwise
               reinvested.

          (g)  Withholding. The Company shall be authorized to withhold from any
               Award granted, payment due or shares or other property
               transferred under the Plan the amount of income, withholding and
               payroll taxes due and payable in respect of an Award, payment or
               shares or other property transferred hereunder and to take such
               other action as may be necessary in the opinion of the Company to
               satisfy all obligations for the payment of such taxes. The
               Company may require the Participant or Outside Director to pay to
               it such tax prior to and as a condition of the making of such
               payment or transfer of Shares or property under the Plan. In
               accordance with any applicable administrative guidelines it
               establishes, the Committee may allow a Participant to pay the
               amount of taxes due or payable in respect of an Award by
               withholding from any payment of Shares due as a result of such
               Award, or by permitting the Participant to deliver to the
               Company, Shares having a fair market value, as determined by the
               Committee, equal to the amount of such taxes.

          (h)  Deferral of Awards. At the discretion of the Committee, payment
               of a Performance Dividend Equivalent or any portion thereof may
               be deferred by a Participant until such time as the Committee may
               establish. All such deferrals shall be accomplished by the
               delivery on a form provided by the Company of a written,
               irrevocable election by the Participant prior to such time
               payment would otherwise be made. Further, all deferrals shall be
               made in accordance with administrative guidelines established by
               the Committee to ensure that such deferrals comply with all
               applicable requirements of the Code and its regulations. Deferred
               payments shall be paid in a lump sum or installments, as
               determined by the Committee. The Committee may also credit
               interest, at such rates to be determined by the Committee, on
               cash payments that are deferred and credit Dividend Equivalents
               on deferred payments denominated in the form of Shares.

          (i)  No Limit on Other Compensation Arrangements. Nothing contained in
               this Plan shall prevent the Company or any Affiliate from
               adopting other or additional compensation arrangements, subject
               to stockholder approval if such approval is required and such
               arrangements may be either generally applicable or applicable
               only in specific cases.

                                       19
<PAGE>

          (j)  Governing Law. The validity, construction, and effect of the Plan
               and any rules and regulations relating to the Plan shall be
               determined in accordance with the laws of the State of Delaware
               and applicable Federal law.

          (k)  Severability. If any provision of this Plan or any Award is or
               becomes or is deemed to be invalid, illegal or unenforceable in
               any jurisdiction, or as to any Person or Award, or would
               disqualify the Plan or any Award under any law deemed applicable
               by the Committee, such provision shall be construed or deemed
               amended to conform to applicable laws, or if it cannot be
               construed or deemed amended without, in the determination of the
               Committee, materially altering the intent of the Plan or the
               Award, it shall be stricken and the remainder of the Plan and any
               such Award shall remain in full force and effect.

          (l)  No Right to Employment. The grant of an Award shall not be
               construed as giving a Participant the right to be retained in the
               employ of the Company or any Affiliate. Further, the Company or
               an Affiliate may at any time terminate the employment of a
               Participant, free from any liability, or any claim under the
               Plan, unless otherwise expressly provided in the Plan or in any
               Award Agreement.

          (m)  No Trust or Fund Created. Neither the Plan nor any Award shall
               create or be construed to create a trust or separate fund of any
               kind or a fiduciary relationship between the Company or any
               Affiliate and a Participant or any other Person. To the extent
               that any Person acquires a right to receive payments from the
               Company or any Affiliate pursuant to an Award, such right shall
               be no greater than the right of any unsecured general creditor of
               the Company or any Affiliate.

          (n)  No Fractional Shares. No fractional Shares shall be issued or
               delivered pursuant to the Plan or any Award, and the Committee
               shall determine whether cash, other securities, or other property
               shall be paid or transferred in lieu of any fractional Shares, or
               whether such fractional Shares or any rights thereto shall be
               canceled, terminated, or otherwise eliminated.

          (o)  Headings. Headings are given to the Sections and subsections of
               the Plan solely as a convenience to facilitate reference. Such
               headings shall not be deemed in any way material or relevant to
               the construction or interpretation of the Plan or any provision
               thereof.

          (p)  With respect to persons subject to Section 16 of the Exchange
               Act, transactions under this Plan are intended to comply with all
               applicable conditions of Rule 16b-3. To the extent any provision
               of this Plan or action by the Committee fails to so comply, the
               Committee may deem, for such persons, such provision or action
               null and void to the extent permitted by law.

SECTION 14. EFFECTIVE DATE OF PLAN.

                                       20
<PAGE>

     The Plan shall be effective as of September 1, 1995.

SECTION 15. TERM OF PLAN.

     No Award shall be granted pursuant to the Plan after August 31, 2005, but
any Award theretofore granted may extend beyond that date.

                                       21

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