Document:

Exhibit 10.1

 

Renren
Inc.

2018 SHARE INCENTIVE PLAN

 

Article
1

 

PURPOSE

 

The purpose of this 2018 Share Incentive
Plan (the “Plan”) is to promote the success and enhance the value of Renren Inc., an exempted company formed
under the laws of the Cayman Islands (the “Company”), by linking the personal interests of the Directors, Employees
and Consultants to those of the shareholders of the Company and by providing such individuals with an incentive for outstanding
performance to generate superior returns to the shareholders of the Company. The Plan is further intended to provide flexibility
to the Company in its ability to motivate, attract, and retain the services of Directors, Employees and Consultants upon whose
judgment, interest, contribution and special effort the successful conduct of the Company’s operation is largely dependent.

 

Article
2

 

DEFINITIONS AND CONSTRUCTION

 

Wherever the following terms are used in
the Plan they shall have the meanings specified below, unless the context clearly indicates otherwise. The singular pronoun shall
include the plural where the context so indicates.

 

2.1        
“Applicable Laws” means the legal requirements relating to the Plan and the Awards under applicable
provisions of the corporate and securities laws of the Cayman Islands, the Code, the PRC tax laws, rules, regulations and government
orders, the rules of any applicable stock exchange or national market system, and the laws and the rules of any jurisdiction applicable
to Awards granted to residents therein.

 

2.2        
“Applicable Accounting Standards” shall mean Generally Accepted Accounting Principles in the United
States, International Financial Reporting Standards or such other accounting principles or standards as may apply to the Company’s
financial statements under United States federal securities laws from time to time.

 

2.3        
“Award” means an Option, a Restricted Share award, or a Restricted Share Unit award granted to a
Participant pursuant to the Plan or any other types of award as designed and approved from time to time by the Committee or the
Board, as the case may be, pursuant to Article 10 of the Plan in compliance with Applicable Laws.

 

2.4        
“Award Agreement” means any written agreement, contract, or other instrument or document, including
through an electronic medium, entered into by and between the Company and a Participant and any amendment thereto, evidencing the
grant of an Award, including an Option Award Agreement, a Restricted Shares Award Agreement or a Restricted Share Units Award Agreement,
each as defined herein.

 

2.5        
“Board” means the Board of Directors of the Company.

 

    	 	 	 

     

    

 

2.6        
“Change in Control” means a change in ownership or control of the Company effected through either
of the following transactions:

 

(a)              
the direct or indirect acquisition by any person or related group of persons (other than an acquisition by the Company or
by a Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of
securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities
pursuant to a tender or exchange offer made directly to the Company’s shareholders which a majority of the Incumbent Board
(as defined below) who are not affiliates or associates of the offeror under Rule 12b-2 promulgated under the Exchange Act do not
recommend such shareholders accept, or

 

(b)              
the individuals who, as of the Effective Date, are members of the Board (the “Incumbent Board”) cease
for any reason to constitute at least fifty percent (50%) of the Board; provided, however, that if the election, or nomination
for election by the Company’s shareholders, of any new member of the Board is approved by a vote of at least fifty percent
(50%) of the Incumbent Board, such new member of the Board shall be considered as a member of the Incumbent Board.

 

2.7        
“Code” means the Internal Revenue Code of 1986 of the United States, as amended.

 

2.8        
“Committee” means the committee of the Board described in Article 10.

 

2.9        
“Consultant” means any consultant or adviser if: (a) the consultant or adviser renders bona fide
services to a Service Recipient; (b) the services rendered by the consultant or adviser are not in connection with the offer or
sale of securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market for the Company’s
securities; and (c) the consultant or adviser is a natural person who has contracted directly with the Service Recipient to render
such services.

 

2.10      
“Corporate Transaction”, unless otherwise defined in an Award Agreement, means any of the following
transactions; provided, however, that the Committee shall determine under (d) and (e) whether multiple transactions are
related, and its determination shall be final, binding and conclusive:

 

(a)              
an amalgamation, arrangement or consolidation or scheme of arrangement (i) in which the Company is not the surviving entity,
except for a transaction the principal purpose of which is to change the jurisdiction in which the Company is incorporated or (ii)
following which the holders of the voting securities of the Company do not continue to hold more than 50% of the combined voting
power of the voting securities of the surviving entity;

 

(b)              
the sale, transfer or other disposition of all or substantially all of the assets of the Company;

 

(c)              
the complete liquidation or dissolution of the Company;

 

    	 	2	 

     

    

 

(d)              
any reverse takeover or series of related transactions culminating in a reverse takeover (including, but not limited to,
a tender offer followed by a reverse takeover) in which the Company is the surviving entity but (A) the Company’s equity
securities outstanding immediately prior to such takeover are converted or exchanged by virtue of the takeover into other property,
whether in the form of securities, cash or otherwise, or (B) in which securities possessing more than fifty percent (50%)
of the total combined voting power of the Company’s outstanding securities are transferred to a person or persons different
from those who held such securities immediately prior to such takeover or the initial transaction culminating in such takeover,
but excluding any such transaction or series of related transactions that the Committee determines shall not be a Corporate Transaction;
or

 

(e)              
acquisition in a single transaction or series of related transactions by any person or related group of persons (other than
the Company or by a Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange
Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding
securities but excluding any such transaction or series of related transactions that the Committee determines shall not be a Corporate
Transaction.

 

2.11      
“Director” means a member of the Board or a member of the board of directors of any Subsidiary of
the Company.

 

2.12      
“Disability”, unless otherwise defined in an Award Agreement, means that the Participant qualifies
to receive long-term disability payments under the long-term disability insurance program, as it may be amended from time to time,
of the Service Recipient to which the Participant provides services regardless of whether the Participant is covered by such policy.
If the Service Recipient to which the Participant provides service does not have a long-term disability plan in place, “Disability”
means that a Participant is unable to carry out the responsibilities and functions of the position held by the Participant by reason
of any medically determinable physical or mental impairment for a period of not less than ninety (90) consecutive days. A Participant
will not be considered to have incurred a Disability unless he or she furnishes proof of such impairment sufficient to satisfy
the Committee in its discretion.

 

2.13      
“Effective Date” shall have the meaning set forth in Section 11.1.

 

2.14      
“Employee” means any person, including an officer or a Director of any Group Entity, who is in the
employ of a Service Recipient, subject to the control and direction of the Service Recipient as to both the work to be performed
and the manner and method of performance. The payment of a director’s fee by a Service Recipient shall not be sufficient
to constitute “employment” by the Service Recipient.

 

2.15      
“Exchange Act” means the Securities Exchange Act of 1934 of the United States, as amended.

 

    	 	3	 

     

    

 

2.16      
“Fair Market Value” means, as of any date, the value of Shares determined as follows:

 

(a)              
If the Shares are listed on one or more established stock exchanges or national market systems, including without limitation
the New York Stock Exchange or the NASDAQ Stock Market, its Fair Market Value shall be the closing sales price for such Shares
(or the closing bid, if no sales were reported) as quoted on the principal exchange or system on which the Shares are listed (as
determined by the Committee) on the date of determination (or, if no closing sales price or closing bid was reported on that date,
as applicable, on the last trading date such closing sales price or closing bid was reported), as reported on the website maintained
by such exchange or market system or such other source as the Committee deems reliable;

 

(b)              
If the Shares are regularly quoted on an automated quotation system (including the OTC Bulletin Board) or by a recognized
securities dealer, its Fair Market Value shall be the closing sales price for such Shares as quoted on such system or by such securities
dealer on the date of determination, but if selling prices are not reported, the Fair Market Value of a Share shall be the mean
between the high bid and low asked prices for the Shares on the date of determination (or, if no such prices were reported on that
date, on the last date such prices were reported), as reported in The Wall Street Journal or such other source as the Committee
deems reliable; or

 

(c)              
In the absence of an established market for the Shares of the type described in (a) and (b), above, the Fair Market Value
thereof shall be determined by the Committee in good faith by reference to (i) the placing price of the latest private placement
of the Shares and the development of the Company’s business operations and the general economic and market conditions since
such latest private placement, (ii) other third party transactions involving the Shares and the development of the Company’s
business operation and the general economic and market conditions since such transaction, (iii) an independent valuation of the
Shares, or (iv) such other methodologies or information as the Committee determines to be indicative of Fair Market Value.

 

2.17      
“Group Entity” means any of the Company and Subsidiaries of the Company.

 

2.18      
“Incentive Share Option” means an Option that is intended to meet the requirements of Section 422
of the Code or any successor provision thereto.

 

2.19      
“Independent Director” means (i) if the Shares or other securities representing the Shares are not
listed on a stock exchange, a Director of the Company who is a Non-Employee Director; and (ii) if the Shares or other securities
representing the Shares are listed on one or more stock exchanges, a Director of the Company who meets the standards of independence
under the applicable corporate governance rules of the stock exchanges.

 

2.20      
“Non-Employee Director” means a member of the Board who qualifies as a “Non-Employee Director”
as defined in Rule 16b-3(b)(3) of the Exchange Act, or any successor definition adopted by the Board.

 

2.21      
“Non-Qualified Share Option” means an Option that is not intended to be an Incentive Share Option.

 

2.22      
“Option” means a right granted to a Participant pursuant to Article 5 of the Plan to purchase a specified
number of Shares at a specified price during specified time periods. An Option may be either an Incentive Share Option or a Non-Qualified
Share Option.

 

    	 	4	 

     

    

 

2.23      
“Participant” means a person who, as a Director, Consultant or Employee, has been granted an Award
pursuant to the Plan.

 

2.24      
“Parent” means a parent corporation under Section 424(e) of the Code.

 

2.25      
 “Permissible Day” means any calendar days except for those days when you are prohibited by the Company's
written policy from trading the Company's securities.

 

2.26      
“Permitted Transfer” means the following:

 

(a)              
transfer to the Company or a Subsidiary;

 

(b)              
transfer by gift to “immediate family” as that term is defined in Rule 16a-1(e) promulgated under the Exchange
Act;

 

(c)              
the designation of a beneficiary to receive benefits if the Participant dies or, if the Participant has
died, transfers to or exercises by the Participant’s beneficiary, or, in the absence of a validly designated beneficiary,
transfers by will or the laws of descent and distribution;

 

(d)              
if the Participant has suffered a disability, permitted transfers or exercises on behalf of the Participant by
the Participant’s duly authorized legal representative; or

 

(e)              
subject to the prior approval of the Committee, transfer to one or more natural persons who are the Participant’s
family members or entities owned and controlled by the Participant and/or the Participant’s family members, including but
not limited to trusts or other entities whose beneficiaries or beneficial owners are the Participant and/or the Participant’s
family members, or to such other persons or entities as may be expressly approved by the Committee, pursuant to such conditions
and procedures as the Committee may establish.

 

2.27      
“Plan” means this Renren Inc. 2018 Share Incentive Plan, as amended from time to time.

 

2.28      
“PRC” means the People’s Republic of China.

 

2.29      
“Related Entity” means any business, corporation, partnership, limited liability company or other
entity in which the Company, a Parent or Subsidiary of the Company holds a substantial ownership interest, directly or indirectly,
or controls through contractual arrangements and consolidates the financial results according to the Applicable Accounting Standards,
but which is not a Subsidiary and which the Board designates as a Related Entity for purposes of the Plan.

 

2.30      
“Restricted Share” means a Share awarded to a Participant pursuant to Article 6 that is subject to
certain restrictions and may be subject to risk of forfeiture.

 

2.31      
“Restricted Share Unit” means an Award granted pursuant to Article 7.

 

    	 	5	 

     

    

 

2.32      
“Securities Act” means the Securities Act of 1933 of the United States, as amended.

 

2.33      
“Service Recipient” means the Company or Subsidiary of the Company to which a Participant provides
services as an Employee, a Consultant or a Director.

 

2.34      
“Share” means the class A ordinary shares of the Company, par value US$0.001 per share, and such
other securities of the Company that may be substituted for Shares pursuant to Article 9.

 

2.35      
“Subsidiary” means any corporation or other entity of which a majority of the outstanding voting
shares or voting power is beneficially owned or controlled directly or indirectly by the Company, or an affiliated entity that
the Company controls through contractual arrangements and of which the Company consolidates the financial results according to
the Applicable Accounting Standards.

 

Article
3

 

SHARES SUBJECT TO THE PLAN

 

3.1        
Number of Shares.

 

(a)              
Subject to the provisions of Article 9 and Section 3.1(b), the maximum aggregate number of Shares which may be issued pursuant
to all Awards (including Incentive Share Options) is 107,100,000.

 

(b)              
To the extent that an Award terminates, expires, or lapses for any reason, any Shares subject to the Award shall again be
available for the grant of an Award pursuant to the Plan. To the extent permitted by Applicable Laws, Shares issued in assumption
of, or in substitution for, any outstanding awards of any entity acquired in any form or combination by a Group Entity shall not
be counted against Shares available for grant pursuant to the Plan. Shares delivered by the Participant or withheld by the Company
upon the exercise of any Award under the Plan in payment of the exercise price thereof or tax withholding thereon may again be
optioned, granted or awarded hereunder, subject to the limitations of Section 3.1(a). If any Restricted Shares are forfeited by
the Participant or repurchased by the Company, such Shares may again be optioned, granted or awarded hereunder, subject to the
limitations of Section 3.1(a). Notwithstanding the provisions of this Section 3.1(b), no Shares may again be optioned, granted
or awarded if such action would cause an Incentive Share Option to fail to qualify as an incentive share option under Section 422
of the Code.

 

3.2        
Shares Distributed. Any Shares distributed pursuant to
an Award may consist, in whole or in part, of authorized and unissued Shares, treasury Shares or Shares purchased on the open market.
Additionally, at the discretion of the Committee, any Shares distributed pursuant to an Award may be represented by American Depositary
Shares.

 

    	 	6	 

     

    

 

Article
4

 

ELIGIBILITY AND PARTICIPATION

 

4.1        
Eligibility. Persons eligible to participate in this Plan
include Employees, Consultants, and Directors, as determined by the Committee.

 

4.2        
Participation. Subject to the provisions of the Plan, the Committee may, from time to time, select from among
all eligible individuals those to whom Awards shall be granted and shall determine the nature and amount of each Award. No individual
shall have any right to be granted an Award pursuant to this Plan.

 

4.3        
Jurisdictions. In order to assure the viability of Awards granted to Participants employed in various jurisdictions,
the Committee may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local
law, tax policy, or custom applicable in the jurisdiction in which the Participant resides or is employed. Moreover, the Committee
may approve such supplements to the Plan or amendments, restatements, or alternative versions of the Plan as it may consider necessary
or appropriate for such purposes without thereby affecting the terms of the Plan as in effect for any other purpose; provided,
however, that no such supplements, amendments, restatements, or alternative versions shall increase the share limitations contained
in Section 3.1 of the Plan. Notwithstanding the foregoing, the Committee may not take any actions hereunder, and no Awards shall
be granted, that would violate any Applicable Laws.

 

Article
5

 

OPTIONS

 

5.1        
General. The Committee is authorized to grant Options to
Participants on the following terms and conditions:

 

(a)              
Exercise Price. The Committee shall determine the exercise price per Share subject to an Option, which may be either
a fixed price or a variable price related to the Fair Market Value of the Shares. The exercise price per Share shall be set forth
in the Award Agreement. The exercise price per Share subject to an Option may be adjusted in the absolute discretion of the Committee,
the determination of which shall be final, binding and conclusive. For the avoidance of doubt, to the extent not prohibited by
Applicable Laws, a re-pricing of Options mentioned in the preceding sentence shall be effective without the approval of the Company’s
shareholders or the approval of the relevant Participants. Notwithstanding the foregoing, the exercise price per Share subject
to an Option under an Award Agreement shall not be increased without the approval of the relevant Participants.

 

(b)              
Time and Conditions of Exercise. The Committee shall determine the time or times at which an Option may be exercised
in whole or in part, including exercise prior to vesting; provided, however, that the term of any Option granted under the
Plan shall not exceed ten years, except as provided in Section 12.2. The Committee shall also determine any conditions, if any,
that must be satisfied before all or part of an Option may be exercised.

 

    	 	7	 

     

    

 

(c)              
Payment. The Committee shall determine the methods by which the exercise price of an Option may be paid and the methods
by which Shares shall be delivered or deemed to be delivered to Participants. Forms of payment may include, without limitation,
(i) cash or check denominated in U.S. Dollars, (ii) to the extent permissible under the Applicable Laws, cash or check in Renminbi,
(iii) cash or check denominated in any other local currency as approved by the Committee, (iv) Shares held for such period of time
as may be required by the Committee in order to avoid adverse financial accounting consequences and having a Fair Market Value
on the date of delivery equal to the aggregate exercise price of the Option or exercised portion thereof, (v) the delivery of a
notice that the Participant has placed a market sell order with a broker with respect to Shares then issuable upon exercise of
the Option and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in
satisfaction of the Option exercise price; provided, however, that payment of such proceeds is then made to the Company
upon settlement of such sale, (vi) other property acceptable to the Committee with a fair market value equal to the exercise price,
or (vii) any combination of the foregoing. Notwithstanding any other provision of the Plan to the contrary, no Participant who
is a member of the Board or an “executive officer” of the Company within the meaning of Section 13(k) of the Exchange
Act shall be permitted to pay the exercise price of an Option in any method which would violate Section 13(k) of the Exchange Act.

 

(d)           
Evidence of Grant. All Options shall be evidenced by an Award Agreement between the Company and the Participant.
The Award Agreement shall include such additional provisions as may be specified by the Committee.

 

(e)           
Effects of Termination of Employment or Service on Options. Termination of employment or service shall have the following
effects on Options granted to the Participants:

 

(i)           
Dismissal for Cause. Unless otherwise provided in the Award Agreement, if a Participant’s employment by or
service to the Service Recipient is terminated by the Service Recipient for cause, the Participant’s Options will terminate
upon such termination, whether or not the Option is then vested and/or exercisable;

 

(ii)          
Death or Disability. Unless otherwise provided in the Award Agreement, if a Participant’s employment by or
service to the Service Recipient terminates as a result of the Participant’s death or Disability:

 

		(1)	the Participant (or his or her legal representative or beneficiary, in the case of the Participant’s Disability or death,
respectively), will have until the date that is 12 months after the Participant’s termination of employment to exercise the
Participant’s Options (or portion thereof) to the extent that such Options were vested and exercisable on the date of the
Participant’s termination of employment on account of death or Disability;

 

		(2)	the Options, to the extent not vested and exercisable on the date of the Participant’s termination of employment or service,
shall terminate upon the Participant’s termination of employment or service on account of death or Disability; and

 

    	 	8	 

     

    

 

		(3)	the Options, to the extent exercisable for the 12-month period following the Participant’s termination of employment
or service and not exercised during such period, shall terminate at the close of business on the last day of the 12-month period.

 

(iii)         
Other Terminations of Employment or Service. Unless otherwise provided in the Award Agreement, if a Participant’s
employment by or service to the Service Recipient terminates for any reason other than a termination by the Service Recipient for
cause or because of the Participant’s death or Disability:

 

		(1)	the Participant will have until the date that is 90 Permissible Days after the Participant’s termination of Employment
or service to exercise his or her Options (or portion thereof) to the extent that such Options were vested and exercisable on the
date of the Participant’s termination of Employment or service;

 

		(2)	the Options, to the extent not vested and exercisable on the date of the Participant’s termination of Employment or service,
shall terminate upon the Participant’s termination of Employment or service; and

 

		(3)	the Options, to the extent exercisable for the 90-day period following the Participant’s termination of Employment or
service and not exercised during such period, shall terminate at the close of business on the last day of the 90-day period.

 

5.2        
Incentive Share Options. Incentive Share Options may be
granted only to Employees of the Company, a Parent or a Subsidiary of the Company. Incentive Share Options may not be granted to
employees of a Related Entity or to Independent Directors or Consultants. The terms of any Incentive Share Options granted pursuant
to the Plan, in addition to the requirements of Section 5.1, must comply with the following additional provisions of this Section
5.2:

 

(a)           
Expiration of Incentive Share Option. An Incentive Share Option may not be exercised to any extent by anyone after
the first to occur of the following events:

 

(i)             
Ten (10) calendar years from the date it is granted, unless an earlier time is set in the Award Agreement;

 

(ii)             Three
(3) calendar months after the Participant’s termination of employment as an Employee; and

 

(iii)           
One (1) calendar year after the date of the Participant’s termination of employment or service on account of Disability
or death. Upon the Participant’s Disability or death, any Incentive Share Options exercisable at the Participant’s
Disability or death may be exercised by the Participant’s legal representative or representatives, by the person or persons
entitled to do so pursuant to the Participant’s last will and testament, or, if the Participant fails to make testamentary
disposition of such Incentive Share Option or dies intestate, by the person or persons entitled to receive the Incentive Share
Option pursuant to the applicable laws of descent and distribution.

 

    	 	9	 

     

    

 

(b)              
Individual Dollar Limitation. The aggregate Fair Market Value (determined as of the time the Option is granted) of
all Shares with respect to which Incentive Share Options are first exercisable by a Participant in any calendar year may not exceed
US$100,000 or such other limitation as imposed by Section 422(d) of the Code, or any successor provision. To the extent that Incentive
Share Options are first exercisable by a Participant in excess of such limitation, the excess shall be considered Non-Qualified
Share Options.

 

(c)              
Exercise Price. The exercise price of an Incentive Share Option shall be equal to the Fair Market Value on the date
of grant. However, the exercise price of any Incentive Share Option granted to any individual who, at the date of grant, owns Shares
possessing more than ten percent of the total combined voting power of all classes of shares of the Company or any Parent or Subsidiary
of the Company may not be less than 110% of Fair Market Value on the date of grant and such Option may not be exercisable for more
than five years from the date of grant.

 

(d)              
Transfer Restriction. The Participant shall give the Company prompt notice of any disposition of Shares acquired
by exercise of an Incentive Share Option within (i) two years from the date of grant of such Incentive Share Option or (ii) one
year after the transfer of such Shares to the Participant.

 

(e)              
Expiration of Incentive Share Options. No Award of an Incentive Share Option may be made pursuant to this Plan after
the tenth anniversary of the Effective Date.

 

(f)               
Right to Exercise. During a Participant’s lifetime, an Incentive Share Option may be exercised only by the
Participant.

 

Article
6

 

RESTRICTED SHARES

 

6.1          
Grant of Restricted Shares. The Committee is authorized
to make Awards of Restricted Shares to any Participant selected by the Committee in such number and subject to such terms and conditions
as determined by the Committee. All Awards of Restricted Shares shall be evidenced by an Award Agreement.

 

6.2          
Restricted Share Award Agreement. Each Award of Restricted Shares shall be evidenced by an Award Agreement that
shall specify the period of restriction, the number of Restricted Shares granted, and such other terms and conditions as the Committee,
in its sole discretion, shall determine. Unless the Committee determines otherwise, Restricted Shares shall be held by the Company
as escrow agent until the restrictions on such Restricted Shares have lapsed.

 

    	 	10	 

     

    

 

6.3          
Issuance and Restrictions. Restricted Shares shall be subject to such restrictions on transferability and other
restrictions as the Committee may impose (including, without limitation, limitations on the right to vote Restricted Shares or
the right to receive dividends on the Restricted Shares). These restrictions may lapse separately or in combination at such times,
pursuant to such circumstances, in such installments, or otherwise, as the Committee determines at the time of the grant of the
Award or thereafter.

 

6.4          
Forfeiture/Repurchase. Except as otherwise determined by
the Committee at the time of the grant of the Award or thereafter, upon termination of employment or service during the applicable
restriction period, Restricted Shares that are at that time subject to restrictions shall be forfeited or repurchased in accordance
with the Award Agreement; provided, however, that the Committee may (a) provide in any Restricted Share Award Agreement
that restrictions or forfeiture and repurchase conditions relating to Restricted Shares will be waived in whole or in part in the
event of terminations resulting from specified causes, and (b) in other cases waive in whole or in part restrictions or forfeiture
and repurchase conditions relating to Restricted Shares.

 

6.5          
Certificates for Restricted Shares. Restricted Shares granted
pursuant to the Plan may be evidenced in such manner as the Committee shall determine. If certificates representing Restricted
Shares are registered in the name of the Participant, certificates must bear an appropriate legend referring to the terms, conditions,
and restrictions applicable to such Restricted Shares, and the Company may, at its discretion, retain physical possession of the
certificate until such time as all applicable restrictions lapse.

 

6.6          
Removal of Restrictions. Unless the Committee determines otherwise, Restricted Shares shall be held by the Company
as escrow agent until the restrictions on such Restricted Shares have lapsed. Except as otherwise provided in this Article 6, Restricted
Shares granted under the Plan shall be released from escrow as soon as practicable after the last day of the period of restriction.
The Committee, in its discretion, may accelerate the time at which any restrictions shall lapse or be removed. After the restrictions
have lapsed, the Participant shall be entitled to have any legend or legends under Section 6.5 removed from his or her Share certificate,
and the Shares shall be freely transferable by the Participant, subject to applicable legal restrictions. The Committee, in its
discretion, may establish procedures regarding the release of Shares from escrow and the removal of legends, as necessary or appropriate
to minimize administrative burdens on the Company.

 

Article
7

 

RESTRICTED SHARE UNITS

 

7.1          
Grant of Restricted Share Units. The Committee, at any time and from time to time, may grant Restricted Share
Units to Participants as the Committee, in its sole discretion, shall determine. The Committee, in its sole discretion, shall determine
the number of Restricted Share Units to be granted to each Participant.

 

7.2          
Restricted Share Units Award Agreement. Each Award of Restricted Share Units shall be evidenced by an Award Agreement
that shall specify any vesting conditions, the number of Restricted Share Units granted, and such other terms and conditions as
the Committee, in its sole discretion, shall determine.

 

    	 	11	 

     

    

 

7.3          
Performance Objectives and Other Terms. The Committee, in its discretion, may set performance objectives or other
vesting criteria which, depending on the extent to which they are met, will determine the number or value of Restricted Share Units
that will be paid out to the Participants.

 

7.4          
Form and Timing of Payment of Restricted Share Units. At the time of grant, the Committee shall specify the date
or dates on which the Restricted Share Units shall become fully vested and nonforfeitable. Upon vesting, the Committee, in its
sole discretion, may pay Restricted Share Units in the form of cash, Shares or a combination thereof.

 

7.5          
Forfeiture/Repurchase. Except as otherwise determined by
the Committee at the time of the grant of the Award or thereafter, upon termination of employment or service during the applicable
restriction period, Restricted Share Units that are at that time unvested shall be forfeited or repurchased in accordance with
the Award Agreement; provided, however, that the Committee may (a) provide in any Restricted Share Unit Award Agreement
that restrictions or forfeiture and repurchase conditions relating to Restricted Share Units will be waived in whole or in part
in the event of terminations resulting from specified causes, and (b) in other cases waive in whole or in part restrictions or
forfeiture and repurchase conditions relating to Restricted Share Units.

 

Article
8 

 

PROVISIONS APPLICABLE TO AWARDS

 

8.1          
Stand-Alone and Tandem Awards. Awards granted pursuant to the Plan may, in the discretion of the Committee, be
granted either alone, in addition to, or in tandem with, any other Award granted pursuant to the Plan. Awards granted in addition
to or in tandem with other Awards may be granted either at the same time as or at a different time from the grant of such other
Awards.

 

8.2          
Award Agreement. Awards under the Plan shall be evidenced by Award Agreements that set forth the terms, conditions
and limitations for each Award, which may include the term of an Award, the provisions applicable in the event the Participant’s
employment or service terminates, and the Company’s authority to unilaterally or bilaterally amend, modify, suspend, cancel
or rescind an Award.

 

8.3          
Limits on Transfer. Except for a Permitted Transfer or as otherwise expressly approved by the Committee, no right
or interest of a Participant in any Award may be subject in any manner to sale, transfer, anticipation, alienation, assignment,
pledge, encumbrance or charge or in favor of any party other than the Company or a Subsidiary, or shall be subject to any lien,
obligation, or liability of such Participant to any other party. Awards will only be exercised by the Participant, and amounts
payable or shares issuable pursuant to an Award will be delivered only to, and, in the case of Shares, registered in the name of,
the Participant. Any Permitted Transfer shall be subject to the condition that the Committee receive evidence satisfactory to it
that the transfer is being made for the purposes set forth of the definition of “Permitted Transfer” in Section 2.25
hereof and on a basis consistent with the Company’s lawful issue of securities.

 

    	 	12	 

     

    

 

8.4          
Beneficiaries. Notwithstanding Section 8.3, a Participant may, in the manner determined by the Committee, designate
a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s
death. A beneficiary, legal guardian, legal representative, or other person claiming any rights pursuant to the Plan is subject
to all terms and conditions of the Plan and any Award Agreement applicable to the Participant, except to the extent the Plan and
Award Agreement otherwise provide, and to any additional restrictions deemed necessary or appropriate by the Committee. If the
Participant is married and resides in a community property state, a designation of a person other than the Participant’s
spouse as his or her beneficiary with respect to more than 50% of the Participant’s interest in the Award shall not be effective
without the prior written consent of the Participant’s spouse. If no beneficiary has been designated or survives the Participant,
payment shall be made to the person entitled thereto pursuant to the Participant’s will or the laws of descent and distribution.
Subject to the foregoing, a beneficiary designation may be changed or revoked by a Participant at any time provided the change
or revocation is filed with the Committee.

 

8.5          
Performance Objectives and Other Terms. The Committee, in its discretion, shall set performance objectives or
other vesting criteria which, depending on the extent to which they are met, will determine the number or value of the Awards that
will be granted or paid out to the Participants.

 

8.6          
Share Certificates.

 

    (a)              
Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificates
evidencing the Shares pursuant to the exercise of any Award unless and until the Committee has determined, with advice of counsel,
that the issuance and delivery of such certificates is in compliance with all Applicable Laws, regulations of governmental authorities
and, if applicable, the requirements of any exchange on which the Shares are listed or traded. All Share certificates delivered
pursuant to the Plan are subject to any stop-transfer orders and other restrictions as the Committee deems necessary or advisable
to comply with all Applicable Laws and the rules of any national securities exchange or automated quotation system on which the
Shares are listed, quoted, or traded. The Committee may place legends on any Share certificate to reference restrictions applicable
to the Shares. In addition to the terms and conditions provided herein, the Committee may require that a Participant make such
reasonable covenants, agreements, and representations as the Committee, in its discretion, deems advisable in order to comply with
any such laws, regulations, or requirements. The Committee shall have the right to require any Participant to comply with any timing
or other restrictions with respect to the settlement or exercise of any Award, including a window-period limitation, as may be
imposed in the discretion of the Committee.

 

    (b)              
Notwithstanding anything herein to the contrary, unless otherwise determined by the Committee or required by Applicable
Laws, the Company shall not deliver to any Participant certificates evidencing Shares issued in connection with any Award and instead
such Shares shall be recorded on the books of the Company or, as applicable, its transfer agent or share plan administrator.

 

    	 	13	 

     

    

 

8.7          
Paperless Administration. Subject to Applicable Laws, the Committee may make Awards and provide applicable disclosure
and procedures for exercise of Awards by an internet website or interactive voice response system for the paperless administration
of Awards.

 

8.8          
Foreign Currency. A Participant may be required to provide evidence that any currency used to pay the exercise
price of any Award was acquired and taken out of the jurisdiction in which the Participant resides in accordance with Applicable
Laws, including foreign exchange control laws and regulations. In the event the exercise price for an Award is paid in Renminbi
or other foreign currency, as permitted by the Committee, the amount payable will be determined by conversion from U.S. dollars
at the official rate promulgated by the People’s Bank of China for Renminbi, or for jurisdictions other than the PRC, the
exchange rate as selected by the Committee on the date of exercise.

 

Article
9

 

CHANGES IN CAPITAL STRUCTURE

 

9.1          
Adjustments. In the event of any dividend, share split, combination or exchange of Shares, amalgamation, arrangement
or consolidation, spin-off, recapitalization or other distribution (other than normal cash dividends) of Company assets to its
shareholders, or any other change affecting Shares or the price of a Share, the Committee shall make such proportionate adjustments,
if any, necessary to reflect such change with respect to (a) the aggregate number and type of shares that may be issued under the
Plan (including, but not limited to, adjustments of the limitations in Section 3.1); (b) the terms and conditions of any outstanding
Awards (including, without limitation, any applicable performance targets or criteria with respect thereto); and (c) the grant
or exercise price per share for any outstanding Awards under the Plan.

 

9.2          
Change in Control. Upon a Change in Control, any Award previously granted pursuant to the Plan shall vest immediately
unless the Committee determines otherwise. Except as may otherwise be provided in any Award Agreement or any other written agreement
entered into by and between the Company and a Participant, upon, or in anticipation of, a Change in Control, the Committee may
in its sole discretion provide for (i) any and all Awards outstanding hereunder to terminate at a specific time in the future and
shall give each Participant the right to exercise such Awards during a period of time as the Committee shall determine, (ii) either
the purchase of any Award 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 or fully vested (and, for
the avoidance of doubt, if as of such date the Committee determines in good faith that no amount would have been attained upon
the exercise of such Award or realization of the Participant’s rights, then such Award may be terminated by the Company without
payment), (iii) the replacement of such Award with other rights or property selected by the Committee in its sole discretion or
the assumption or substitution of such Award by the successor or surviving corporation, or a parent or subsidiary thereof, with
appropriate adjustments as to the number and kind of Shares and prices, or (iv) payment of Awards in cash based on the value of
Shares on the date of the Change in Control plus reasonable interest on the Award through the date such Award would otherwise be
vested or have been paid in accordance with its original terms, if necessary to comply with Section 409A of the Code.

 

    	 	14	 

     

    

 

9.3          
Outstanding Awards – Corporate Transactions. Except as may otherwise be provided in any Award Agreement
or any other written agreement entered into by and between the Company and a Participant, if the Committee anticipates the occurrence,
or upon the occurrence, of a Corporate Transaction, the Committee may, in its sole discretion, provide for (i) any and all Awards
outstanding hereunder to terminate at a specific time in the future and shall give each Participant the right to exercise the vested
portion of such Awards during a period of time as the Committee shall determine, or (ii) the purchase of any Award for an amount
of cash equal to the amount that could have been attained upon the exercise of such Award (and, for the avoidance of doubt, if
as of such date the Committee determines in good faith that no amount would have been attained upon the exercise of such Award,
then such Award may be terminated by the Company without payment), or (iii) the replacement of such Award with other rights or
property selected by the Committee in its sole discretion or the assumption of or substitution of such Award by the successor or
surviving corporation, or a Parent or Subsidiary thereof, with appropriate adjustments as to the number and kind of Shares and
prices, or (iv) payment of such Award in cash based on the value of Shares on the date of the Corporate Transaction plus reasonable
interest on the Award through the date as determined by the Committee when such Award would otherwise be vested or have been paid
in accordance with its original terms, if necessary to comply with Section 409A of the Code.

 

9.4          
Outstanding Awards – Other Changes. In the event of any other change in the capitalization of the Company
or corporate change other than those specifically referred to in this Article 9, the Committee may, in its absolute discretion,
make such adjustments in the number and class of shares subject to Awards outstanding on the date on which such change occurs and
in the per share grant or exercise price of each Award as the Committee may consider appropriate to prevent dilution or enlargement
of rights.

 

9.5          
No Other Rights. Except as expressly provided in the Plan, no Participant shall have any rights by reason of
any subdivision or consolidation of Shares of any class, the payment of any dividend, any increase or decrease in the number of
shares of any class or any dissolution, liquidation, merger, or consolidation of the Company or any other corporation. Except as
expressly provided in the Plan or pursuant to action of the Committee under the Plan, and no issuance by the Company of shares
of any class, or securities convertible into shares of any class, shall affect, and no adjustment by reason thereof shall be made
with respect to, the number of Shares subject to an Award or the grant or exercise price of any Award.

 

Article
10

 

ADMINISTRATION

 

10.1        
Committee. The Plan shall be administered by the Board, the compensation committee of the Board or any other
committee of one or more members of the Board (the “Committee”) to whom the Board shall delegate the authority
to grant or amend Awards to Participants other than any of the Committee members, Independent Directors and executive officers
of the Company. Reference to the Committee shall refer to the Board in absence of the Committee. Notwithstanding the foregoing,
the full Board, acting by majority of its members in office, shall conduct the general administration of the Plan if required by
Applicable Laws, and with respect to Awards granted to the Committee members and Independent Directors of the Company and for purposes
of such Awards the term “Committee” as used in the Plan shall be deemed to refer to the Board.

 

    	 	15	 

     

    

 

10.2        
Action by the Committee. A majority of the Committee shall constitute a quorum. The acts of a majority of the
members present at any meeting at which a quorum is present, and acts approved unanimously in writing by all members of the Committee
in lieu of a meeting, shall be deemed the acts of the Committee. Each member of the Committee is entitled to, in good faith, rely
or act upon any report or other information furnished to that member by any officer or other employee of a Group Entity, the Company’s
independent certified public accountants, or any executive compensation consultant or other professional retained by the Company
to assist in the administration of the Plan.

 

10.3        
Authority of the Committee. Subject to any specific designation in the Plan, the Committee has the exclusive
power, authority and discretion to:

 

   (a)              
Designate Participants to receive Awards;

 

   (b)              
Determine the type or types of Awards to be granted to each Participant;

 

   (c)              
Determine the number of Awards to be granted and the number of Shares to which an Award will relate;

 

   (d)              
Determine the terms and conditions of any Award granted pursuant to the Plan, including but not limited to the exercise
price, grant price or purchase price, any restrictions or limitations on the Award, any schedule for lapse of forfeiture restrictions
or restrictions on the exercisability of an Award and accelerations or waivers thereof, and any provisions related to non-competition
and recapture of gain on an Award, based in each case on such considerations as the Committee in its sole discretion determines;

 

   (e)              
Determine whether, to what extent, and pursuant to what circumstances an Award may be settled in, or the exercise price
of an Award may be paid in, cash, Shares, other Awards, or other property, or an Award may be canceled, forfeited, or surrendered;

 

   (f)               
Prescribe the form of each Award Agreement, which need not be identical for each Participant;

 

   (g)              
Decide all other matters that must be determined in connection with an Award;

 

   (h)              
Subject to Article 12 establish, adopt, or revise any rules and regulations as it may deem necessary or advisable to administer
the Plan;

 

   (i)               
Interpret the terms of, and any matter arising pursuant to, the Plan or any Award Agreement;

 

   (j)               
Amend terms and conditions of Award Agreements, including but not limited to reducing the exercise price per Share subject
to an Option; and

 

    	 	16	 

     

    

 

   (k)              
Make all other decisions and determinations that may be required pursuant to the Plan or as the Committee deems necessary
or advisable to administer the Plan, including design and adopt from time to time new types of Awards that are in compliance with
Applicable Laws.

 

10.4      
Decisions Binding. The Committee’s interpretation of the Plan, any Awards granted pursuant to the Plan
and any Award Agreements and all decisions and determinations by the Committee with respect to the Plan are final, binding, and
conclusive on all parties.

 

Article
11

 

EFFECTIVE AND EXPIRATION DATE

 

11.1      
Effective Date. This Plan shall become effective as of the date on which the Board adopts the Plan (the “Effective
Date”).

 

11.2      
Expiration Date. The Plan will expire on, and no Award may be granted pursuant to the Plan after, the tenth anniversary
of the Effective Date. Any Awards that are outstanding on the tenth anniversary of the Effective Date shall remain in force according
to the terms of the Plan and the applicable Award Agreement.

 

Article
12

 

AMENDMENT, MODIFICATION, AND TERMINATION

 

12.1      
Amendment, Modification, And Termination. At any time and from time to time, the Board or the Committee may terminate,
amend or modify the Plan; provided, however, that to the extent necessary and desirable to comply with Applicable Laws or
stock exchange rules, unless the Company decides to follow home country practice not to seek shareholder approval for any amendment
or modification of the Plan, the Company shall obtain shareholder approval of any Plan amendment in such a manner and to such a
degree as required, including any amendment to the Plan that (i) increases the number of Shares available under the Plan (other
than any adjustment as provided by Article 9), (ii) permits the Committee to extend the term of the Plan or the exercise period
for an Option beyond ten years from the date of grant, or (iii) results in a change in eligibility requirements.

 

12.2      
Awards Previously Granted. Except with respect to amendments made pursuant to Section 12.1, no termination, amendment,
or modification of the Plan shall adversely affect in any material way any Award previously granted pursuant to the Plan without
the prior written consent of the Participant.

 

    	 	17	 

     

    

 

Article
13

 

GENERAL PROVISIONS

 

13.1      
No Rights to Awards. No Participant, employee or other person shall have any claim to be granted any Award pursuant
to the Plan, and neither the Company nor the Committee is obligated to treat Participants, employee and other persons uniformly.

 

13.2      
No Shareholders Rights. No Award gives the Participant any of the rights of a shareholder of the Company unless
and until Shares are in fact issued to such person in connection with such Award.

 

13.3      
Taxes. No Shares shall be delivered under the Plan to any Participant until such Participant has made arrangements
acceptable to the Committee for the satisfaction of any income and employment tax withholding obligations under Applicable Laws,
including without limitation the PRC tax laws, rules, regulations and government orders or the United States Federal, state or
local tax laws, as applicable. The relevant Group Entity shall have the authority and the right to deduct or withhold, or require
a Participant to remit to the Company, an amount sufficient to satisfy all applicable taxes (including the Participant’s
payroll tax obligations) required by law to be withheld with respect to any taxable event concerning a Participant arising as a
result of this Plan. The Committee may in its discretion and in satisfaction of the foregoing requirement allow a Participant to
elect to have the Company withhold Shares otherwise issuable under an Award (or allow the return of Shares) having a Fair Market
Value equal to the sums required to be withheld. Notwithstanding any other provision of the Plan, the number of Shares which may
be withheld with respect to the issuance, vesting, exercise or payment of any Award (or which may be repurchased from the Participant
of such Award after such Shares were acquired by the Participant from the Company) in order to satisfy any income and payroll tax
liabilities applicable to the Participant with respect to the issuance, vesting, exercise or payment of the Award shall, unless
specifically approved by the Committee, be limited to the number of Shares which have a Fair Market Value on the date of withholding
or repurchase equal to the aggregate amount of such liabilities based on the minimum statutory withholding rates for the applicable
income and payroll tax purposes that are applicable to such supplemental taxable income.

 

13.4      
No Right to Employment or Services. Nothing in the Plan or any Award Agreement shall interfere with or limit
in any way the right of the Service Recipient to terminate any Participant’s employment or services at any time, nor confer
upon any Participant any right to continue in the employ or service of any Service Recipient.

 

13.5      
Unfunded Status of Awards. The Plan is intended to be an “unfunded” plan for incentive compensation.
With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Agreement
shall give the Participant any rights that are greater than those of a general creditor of the relevant Group Entity.

 

13.6      
Indemnification. To the extent allowable pursuant to Applicable Laws, each member of the Committee or of the
Board shall be indemnified and held harmless by the Company from any loss, cost, liability, or expense that may be imposed upon
or reasonably incurred by such member in connection with or resulting from any claim, action, suit, or proceeding to which he or
she may be a party or in which he or she may be involved by reason of any action or failure to act pursuant to the Plan and against
and from any and all amounts paid by him or her in satisfaction of judgment in such action, suit, or proceeding against him or
her; provided, however, that he or she gives the Company an opportunity, at its own expense, to handle and defend the same
before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not
be exclusive of any other rights of indemnification to which such persons may be entitled pursuant to the Company’s Memorandum
of Association and Articles of Association, as a matter of law, or otherwise, or any power that the Company may have to indemnify
them or hold them harmless.

 

    	 	18	 

     

    

 

13.7      
Relationship to Other Benefits. No payment pursuant to the Plan shall be taken into account in determining any
benefits pursuant to any pension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of any Group
Entity except to the extent otherwise expressly provided in writing in such other plan or an agreement thereunder.

 

13.8      
Expenses. The expenses of administering the Plan shall be borne by the Group Entities.

 

13.9      
Titles and Headings. The titles and headings of the Sections in the Plan are for convenience of reference only
and, in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control.

 

13.10    
Fractional Shares. If an exercise of any Award shall result in the creation of a fractional Share under the Award,
the Committee may determine, in its discretion, whether (i) such fractional Share shall be issued, or (ii) cash (in the amount
equal to the product of such fraction multiplied by the Fair Market Value of a Share on the date the fractional Share otherwise
would have been issued) shall be given in lieu of such fractional Share, or (iii) such fractional Share shall be eliminated by
rounding up or down as appropriate.

 

13.11    
Limitations Applicable to Section 16 Persons. Notwithstanding anything herein to the contrary, if the Company
should become subject to Section 16 of the Exchange Act, then the Plan and any Award granted or awarded to any Participant who
is then subject to Section 16 of the Exchange Act shall be subject to any additional limitations set forth in any applicable exemptive
rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for
the application of such exemptive rule. To the extent permitted by the Applicable Laws, the Plan and Awards granted or awarded
hereunder shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

 

13.12    
Government and Other Regulations. The obligation of the Company to make payment of awards in Shares or otherwise
shall be subject to all Applicable Laws, and to such approvals by government agencies as may be required. The Company shall be
under no obligation to register any of the Shares paid pursuant to the Plan under the Securities Act or any other similar law in
any applicable jurisdiction. If the Shares paid pursuant to the Plan may in certain circumstances be exempt from registration pursuant
to the Securities Act or other Applicable Laws, the Company may restrict the transfer of such Shares in such manner as it deems
advisable to ensure the availability of any such exemption.

 

    	 	19	 

     

    

 

13.13    
Governing Law. The Plan and all Award Agreements shall be construed in accordance with and governed by the laws
of the Cayman Islands.

 

13.14    
Section 409A. To the extent that the Committee determines that any Award granted under the Plan is or may become
subject to Section 409A of the Code, the Award Agreement evidencing such Award shall incorporate the terms and conditions required
by Section 409A of the Code. To the extent applicable, the Plan and the Award Agreements shall be interpreted in accordance with
Section 409A of the Code and the U.S. Department of Treasury regulations and other interpretative guidance issued thereunder, including
without limitation any such regulation or other guidance that may be issued after the Effective Date. Notwithstanding any provision
of the Plan to the contrary, in the event that following the Effective Date the Committee determines that any Award may be subject
to Section 409A of the Code and related Department of Treasury guidance (including such Department of Treasury guidance as may
be issued after the Effective Date), the Committee may adopt such amendments to the Plan and the applicable Award agreement or
adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other
actions, that the Committee determines are necessary or appropriate to (a) exempt the Award from Section 409A of the Code and/or
preserve the intended tax treatment of the benefits provided with respect to the Award, or (b) comply with the requirements of
Section 409A of the Code and related U.S. Department of Treasury guidance.

 

13.15    
Appendices. With the approval of the Board and subject to Section 12.1, the Committee may approve such supplements,
amendments or appendices to the Plan as it may consider necessary or appropriate for purposes of compliance with Applicable Laws
or otherwise and such supplements, amendments or appendices shall be considered a part of the Plan; provided, however, that
no such supplements shall increase the share limitations contained in Section 3.1 of the Plan.

 

    	 	20Exhibit

Exhibit 10.1

KANSAS CITY SOUTHERN
EXECUTIVE DEFERRED COMPENSATION PLAN

Effective generally as of October 1, 2018

    

Kansas City Southern  
Executive Deferred Compensation Plan

	
				
	Article I
	 

	 
	Establishment and Purpose
	1
	

	Article II
	 

	 
	Definitions
	1
	

	Article III
	 

	 
	Eligibility and Participation
	7
	

	Article IV
	 

	 
	Deferrals
	8
	

	Article V
	 

	 
	Benefit Payments
	11
	

	Article VI
	 

	 
	Modifications to Payment Schedules
	13
	

	Article VII
	 

	 
	Valuation of Sub-Account Balances; Investments
	14
	

	Article VIII
	 

	 
	Administration
	15
	

	Article IX
	 

	 
	Amendment and Termination
	16
	

	Article X
	 

	 
	Informal Funding
	17
	

	Article XI
	 

	 
	Claims
	18
	

	Article XII
	 

	 
	General Provisions
	20
	

Kansas City Southern  
Executive Deferred Compensation Plan

ARTICLE I
Establishment and Purpose
		
	1.1
	Establishment.  Kansas City Southern (the "Company") hereby establishes the Kansas City Southern Executive Deferred Compensation Plan (the "Plan"), effective as of October 1, 2018.

 
		
	1.2
	Purpose.  The purpose of the Plan is to attract and retain key employees by providing Participants with an opportunity to defer receipt of a portion of their salary, bonus, and other specified compensation.  The Plan is not intended to meet the qualification requirements of Code Section 401(a), but is intended to meet the requirements of Code Section 409A, and shall be operated and interpreted consistent with that intent. 

		
	1.3
	Top-Hat Status and Unfunded Plan.  The Plan constitutes an unsecured promise by a Participating Employer to pay benefits in the future. Participants in the Plan shall have the status of general unsecured creditors of the Company or the Adopting Employer, as applicable. Each Participating Employer shall be solely responsible for payment of the benefits of its employees and their beneficiaries. The Plan is unfunded for Federal tax purposes and is intended to be an unfunded arrangement for eligible employees who are part of a select group of management or highly compensated employees of the Employer within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA. Any amounts set aside to defray the liabilities assumed by the Company or an Adopting Employer will remain the general assets of the Company or the Adopting Employer and shall remain subject to the claims of the Company's or the Adopting Employer's creditors until such amounts are distributed to the Participants. 

ARTICLE II
Definitions

Aggregate Sub-Account Balance. Aggregate Sub-Account Balance means, with respect to each Participant, the aggregate value of that Participant's Sub-Accounts. 

Adopting Employer. Adopting Employer means an Affiliate who, with the consent of the Company, has adopted the Plan for the benefit of its Eligible Employees.

Affiliate. Affiliate means a corporation, trade or business that, together with the Company, is treated as a single employer under Code Section 414(b) or (c).

Beneficiary. Beneficiary means a natural person, estate, or trust designated by a Participant to receive payments to which a Beneficiary is entitled in accordance with 

    

provisions of the Plan. The Participant's spouse, if living, otherwise the Participant's estate, shall be the Beneficiary if: (i)     the Participant has failed to properly designate a Beneficiary, or (ii) all designated Beneficiaries have predeceased the Participant.
 

Board.  Board means the Board of Directors of the Company.

Business Day. Business Day means each day on which the New York Stock Exchange is open for business.

Change in Control. Change in Control means, with respect to the Company, any of the following events: (i) a "Change in the Ownership of the Company", (ii) a "Change in the Effective Control of the Company", or (iii) a "Change in the Ownership of a Substantial Portion of the Assets of the Company".

For purposes of this definition:

(1)    A "Change in the Ownership of the Company" occurs on the date on which any one person, or more than one person acting as a group, acquires ownership of stock of the Company that, together with stock held by such person or group constitutes more than 50% of the total fair market value or total voting power of the stock of the Company.

(2)     A "Change in the Effective Control of the Company" occurs on the date on which either: (a) a person, or more than one person acting as a group, acquires ownership of stock of the Company possessing 30% or more of the total voting power of the stock of the Company, taking into account all such stock acquired during the 12-month period ending on the date of the most recent acquisition, or (b) a majority of the members of the Board is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of such Board before the date of the appointment or election, but only if no other corporation is a majority shareholder of the Company. 

(3)    A "Change in the Ownership of a Substantial Portion of the Assets of the Company" occurs on the date on which any one person, or more than one person acting as a group, other than a person or group of persons that is related to the Company, acquires assets from the Company that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets of the Company immediately before such acquisition or acquisitions, taking into account all such assets acquired during the 12-month period ending on the date of the most recent acquisition.

The determination as to the occurrence of a Change in Control shall be based on objective facts and in accordance with the requirements of Code Section 409A.  

    

2

Claimant. Claimant means a Participant or Beneficiary filing a claim under Article XI of this Plan.

Class Year Bonus Deferral Sub-Account.  Class Year Bonus Deferral Sub-Account means the Sub-Account to which a Deferral from the incentive bonus under the Company's Annual Incentive Plan is made during a single calendar year. A separate Class Year Bonus Deferral Sub-Account will be established for each separate calendar year for which an incentive bonus deferral has been made. 

Class Year Salary Deferral Sub-Account.  Class Year Salary Deferral Sub-Account means the Sub-Account to which a Deferral from base salary is made during a single calendar year.   A separate Class Year Salary Deferral Sub-Account will be established for each separate calendar year for which a base salary deferral has been made. 

Code. Code means the Internal Revenue Code of 1986, as amended from time to time. 

Code Section 409A. Code Section 409A means section 409A of the Code, and regulations and other guidance issued by the Treasury Department and Internal Revenue Service thereunder. 

Committee. Committee means the Compensation and Organization Committee of the Board of the Company (or the appropriate committee of such board) appointed to oversee the administration of the Plan.  The Committee shall have the full authority to delegate any of its authority, powers and responsibility with respect to the administration of the Plan, or any other responsibility or power conferred hereunder to the Committee, to officers and key employees of the Company or any of its Affiliates.    

Company. Company means Kansas City Southern, a Delaware corporation. 

Company Contribution. Company Contribution means a discretionary credit by a Participating Employer to a Participant's Company Sub-Account in accordance with the provisions of Section 4.6 of the Plan. Company Contributions are credited at the sole discretion of the Participating Employer and the fact that a Company Contribution is credited in one year shall not obligate the Participating Employer to continue to make such Company Contribution in subsequent years. Unless the context clearly indicates otherwise, a reference to Company Contribution shall include Earnings attributable to such contribution.

Company Sub-Account.  Company Sub-Account means the Sub-Account pursuant to which all credits relating to any Company Contribution are made in accordance with Section 4.6. 

Compensation. Compensation means either a Participant's (i) base salary or (ii) incentive bonuses paid under the Company's Annual Incentive Plan.  Compensation 

    

3

shall not include any equity-based compensation (e.g., compensation paid in Company Shares), compensation that has been previously deferred under this Plan or any other arrangement subject to Code Section 409A, or any bonuses that are not paid under the Company's Annual Incentive Plan.  

Compensation Deferral Agreement. Compensation Deferral Agreement means an agreement between a Participant and a Participating Employer that specifies with respect to each Deferral: (i) the amount of each component of Compensation (e.g., base salary or annual incentive bonus) that the Participant has elected to defer to the Plan in accordance with the provisions of Article IV, and (ii) the payment schedule applicable to one or more Sub-Accounts. The Committee may permit different deferral amounts for each component of Compensation and may establish a minimum or maximum deferral amount for each such component. Unless otherwise specified by the Committee in the Compensation Deferral Agreement, Participants may defer up to 50% of their base salary and up to 75% of their incentive bonuses under the Company's Annual Incentive Plan (which may or may not constitute Performance-Based Compensation).  Unless otherwise determined by the Company, all required tax withholding associated with any deferral of Compensation will be withheld from the Participant's other compensation.  A Compensation Deferral Agreement may also specify the investment allocation described in Section 7.4.

Deferral. Deferral means a credit to a Sub-Account that records that portion of the Participant's Compensation that the Participant has elected to defer for a single calendar year pursuant to his or her Compensation Deferral Agreement deferring either base salary or incentive bonus for that year, and with respect to such deferral specifying both (i) the designated payment commencement date or event and (ii) the payment schedule applicable for those deferrals.   Unless the context of the Plan clearly indicates otherwise, a reference to a Deferral includes Earnings attributable to such Deferrals.  Deferrals shall be calculated with respect to the gross cash Compensation payable to the Participant before any deductions or withholdings, but shall be reduced by the Committee as necessary so that it does not exceed 100% of the cash Compensation of the Participant remaining after deduction of all required income and employment taxes, 401(k) and other employee benefit deductions, and other deductions required by law. Changes to payroll withholdings that affect the amount of Compensation being deferred to the Plan shall be allowed only to the extent permissible under Code Section 409A.

Determination Date. Determination Date means the date on which the amount of a Participant’s Sub-Account eligible to be paid is determined as provided in Article V. The applicable Determination Date is the date the Plan's recordkeeper processes a payment for distribution. 

Earnings.  Earnings means an adjustment to the value of a Sub-Account in accordance with Article VII.

    

4

Effective Date. Effective Date means October 1, 2018, provided, however, deferral elections made in accordance with Article IV may be submitted to the Company before the Effective Date.

Eligible Employee. Eligible Employee means a member of a "select group of management or highly compensated employees" of a Participating Employer within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, as determined by the Committee from time to time in its sole discretion.

Employee. Employee means a common-law employee of an Employer.

Employer. Employer means, with respect to Employees it employs, the Company and each Affiliate.

ERISA. ERISA means the Employee Retirement Income Security Act of 1974, as amended from time to time.

Initial Enrollment Period. Initial Enrollment Period means September 4, 2018 through September 30, 2018.

Participant. Participant means an Eligible Employee who has received notification of his or her eligibility to defer Compensation under the Plan under Section 3.1 and any other person with an Aggregate Sub-Account Balance greater than zero, regardless of whether such individual continues to be an Eligible Employee.  A Participant's continued participation in the Plan shall be governed by Section 3.2 of the Plan.

Participating Employer. Participating Employer means the Company and each Adopting Employer.

Performance-Based Compensation. Performance-Based Compensation means Compensation where the amount of, or entitlement to, the Compensation is contingent on the satisfaction of pre-established organizational or individual performance criteria relating to a performance period of at least 12 consecutive months. Organizational or individual performance criteria are considered pre-established if established in writing by not later than 90 days after the commencement of the period of service to which the criteria relate, provided that the outcome is substantially uncertain at the time the criteria are established. The determination of whether Compensation qualifies as "Performance-Based Compensation" will be made in accordance with Treas. Reg. Section 1.409A-1(e) and subsequent guidance.

Plan. Generally, the term Plan means the "Kansas City Southern Executive Deferred Compensation Plan" as documented herein and as may be amended from time to time hereafter. However, to the extent permitted or required under Code Section 409A, the term Plan may in the appropriate context also mean a portion of the Plan that is treated as a single plan under Treas. Reg. Section 1.409A-1(c), or the Plan or portion of the 

    

5

Plan and any other nonqualified deferred compensation plan or portion thereof that is treated as a single plan under such section. 

Plan Year. Plan Year means the January 1 through December 31. 

Separation from Service.  Separation from Service means an Employee's termination of employment with the Employer. Whether a Separation from Service has occurred shall be determined by the Committee in accordance with Code Section 409A.

Except in the case of an Employee on a bona fide leave of absence as provided below, an Employee is deemed to have incurred a Separation from Service if the Employer and the Employee reasonably anticipated that the level of services to be performed after a date certain as an employee, an independent contractor, or in any other capacity would be reduced to 20% or less of the average services rendered by the Employee during the immediately preceding 36-month period (or the total period of employment, if less than 36 months), disregarding periods during which the Employee was on a bona fide leave of absence.

An Employee who is absent from work due to military leave, sick leave, or other bona fide leave of absence shall incur a Separation from Service on the first date immediately following the later of: (i) the six month anniversary of the commencement of the leave, or (ii) the expiration of the Employee's right, if any, to reemployment under statute or contract.  Notwithstanding the preceding, however, an Employee who is absent from work due to a physical or mental impairment that is expected to result in death or last for a continuous period of at least six months and that prevents the Employee from performing the duties of his position of employment or a similar position shall incur a Separation from Service on the first date immediately following the 29-month anniversary of the commencement of the leave.

For purposes of determining whether a Separation from Service has occurred, the Employer means the Employer as defined above, except that in applying Code sections 1563(a)(1), (2) and (3) for purposes of determining whether another organization is an Affiliate of the Company under Code Section 414(b), and in applying Treasury Regulation Section 1.414(c)-2 for purposes of determining whether another organization is an Affiliate of the Company under Code Section 414(c), "at least 50 percent" shall be used instead of "at least 80 percent" each place it appears in those sections.

The Committee specifically reserves the right to determine whether a sale or other disposition of substantial assets to an unrelated party constitutes a Separation from Service with respect to a Participant providing services to the seller immediately before the transaction and providing services to the buyer after the transaction. Such determination shall be made in accordance with the requirements of Code Section 409A.

    

6

Specified Employee. Specified Employee has the meaning in Section 409A of the Code.  Each Participant in the Plan shall be deemed to be a Specified Employee at all times while participating in the Plan such that any payment on account of Separation from Service (other than death) will be delayed for six-months in accordance with Section 409A of the Code.  

In the event of corporate transactions described in Treas. Reg. Section 1.409A-1(i)(6), the identification of Specified Employees shall be determined in accordance with the default rules described therein, unless the Employer elects to utilize the available alternative methodology through designations made within the timeframes specified therein.

Sub-Account. Sub-Account means a Participant's Class Year Bonus Deferral Sub-Account, Class Year Salary Deferral Sub-Account, or Company Sub-Account.  Except for the Company Sub-Account, each sub-account is a bookkeeping account maintained by the Company to record the Deferrals made to that sub-account for a specific year.  The Company Sub-Account is a bookkeeping account maintained by the Company to record all Company Contributions (regardless of any specific year). Each Sub-Account is intended to constitute an unfunded obligation within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.

Substantial Risk of Forfeiture. Substantial Risk of Forfeiture means the description specified in Treas. Reg. Section 1.409A-1(d).

Unforeseeable Emergency. Unforeseeable Emergency means a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant's spouse, the Participant's dependent (as defined in Code Section 152, without regard to Section 152(b)(1), (b)(2), and (d)(1)(B)), or a Beneficiary; loss of the Participant's property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance, for example,  as a result of a natural disaster); or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. The types of events which may qualify as an Unforeseeable Emergency may be limited by the Committee.

Year of Service. Year of Service means each 12-month period of continuous service with the Employer.

ARTICLE III
Eligibility and Participation
		
	3.1
	Eligibility and Participation. An Eligible Employee becomes a Participant upon the earlier of (i) the receipt of notification from the Committee of his or her eligibility to participate in the Plan or (ii) a credit of Company Contributions to the Eligible Employee's Company Sub-Account under Section 4.6.  Except for those Employees that are eligible on the Effective Date and submit a Compensation Deferral Agreement 

    

7

during the Initial Enrollment Period, Eligible Employees will only be able to make Deferrals on January 1 of the year following the year the Employee first becomes eligible.

		
	3.2
	Duration. A Participant shall be eligible to defer Compensation and receive allocations of Company Contributions, subject to the terms of the Plan, for as long as such Participant remains an Eligible Employee. A Participant who is no longer an Eligible Employee but has not Separated from Service may not make a new deferral of Compensation under the Plan beyond the Plan Year in which he or she became ineligible but may otherwise exercise all of the rights of a Participant under the Plan with respect to his or her Sub-Account(s). To the extent a Participant has made an election to defer cash Compensation, on and after a Separation from Service, a Participant shall remain a Participant as long as his or her Aggregate Sub-Account Balance is greater than zero (0), and during such time may continue to make allocation elections as provided in Section 7.4. An individual shall cease being a Participant in the Plan when all benefits under the Plan to which he or she is entitled have been paid.

ARTICLE IV
Deferrals
		
	4.1
	Deferral Elections, Generally. 

		
	(a)
	A Participant may elect to defer Compensation by submitting a Compensation Deferral Agreement during the enrollment periods established by the Committee and in the manner specified by the Committee, but in any event, in accordance with Section 4.2. A Compensation Deferral Agreement that is not timely filed with respect to a service period or component of Compensation shall be considered void and shall have no effect with respect to such service period or Compensation. The Committee may modify any Compensation Deferral Agreement before the date the election becomes irrevocable under the rules of Section 4.2.

		
	(b)
	The Participant shall specify on his or her Compensation Deferral Agreement:

 (i) the amount or percentage of a type of Compensation (e.g., base salary or bonus) that is to be deferred for the upcoming deferral period; 

(ii) whether those Deferrals for the designated year and type of Compensation are to commence to be paid upon the first day of the seventh month following Separation from Service or, if earlier than the date of Separation from Service, on a specified date and/or on a Change in Control; and

 (iii) the payment schedule for the Sub-Account (other than the Company Sub-Account) as permitted by the Company. Deferrals payable either upon the 

    

8

first day of the seventh month following Separation from Service or upon a Change in Control will be permitted to be paid in substantially equal annual installments over a period of two (2) to ten (10) years or a lump sum payment and Deferrals payable upon a specified date (if earlier than the Separation from Service or Change in Control date, if elected) will be permitted to be paid in equal annual installments over a period of two (2) to five (5) years or a lump sum payment).

If no designation is made with respect to a year's Deferrals, all Deferrals shall be scheduled to be paid in a lump sum on the first day of the seventh month following the date of the Participant's Separation from Service.  

4.2    Timing Requirements for Compensation Deferral Agreements.

		
	(a)
	Initial Eligibility. For Eligible Employees that have become eligible to participate on the Effective Date, Compensation Deferral Agreements made before the Effective Date shall be effective on the Effective Date, and applies to Compensation earned on and after the date the Compensation Deferral Agreement becomes irrevocable. For any other Participant that becomes eligible, Compensation Deferral Agreements will be effective only as provided in Section 4.2(b).

		
	(b)
	Prior Year Election. Except as otherwise provided in this Section 4.2, Participants may defer Compensation by filing a Compensation Deferral Agreement no later than December 31 of the year before the year in which the Compensation to be deferred is earned. A Compensation Deferral Agreement described in this paragraph shall become irrevocable with respect to such Compensation as of 11:59 p.m. on the December 31 of the year immediately preceding the year in which such Compensation is to be earned.

		
	(c)
	Performance-Based Compensation. If permitted by the Committee, Participants may file a Compensation Deferral Agreement with respect to Performance-Based Compensation after the beginning of the performance period and no later than the date that is six months before the end of the performance period, provided that:

		
	(i)
	the Participant performs services continuously from the later of the beginning of the performance period or the date the criteria are established through the date the Compensation Deferral Agreement is submitted; and

		
	(ii)
	the Compensation is not readily ascertainable as of the date the Compensation Deferral Agreement is filed.

    

9

A Compensation Deferral Agreement becomes irrevocable with respect to Performance-Based Compensation as of the day immediately following the latest date for filing such election. Any election to defer Performance-Based Compensation that is made in accordance with this paragraph and that becomes payable as a result of the Participant's death or upon a Change in Control (as defined in Treas. Reg. Section 1.409A-3(i)(5)) before the satisfaction of the performance criteria will be void.

		
	(d)
	Short-Term Deferrals. Compensation that meets the definition of a "short-term deferral" described in Treas. Reg. Section 1.409A-1(b)(4) may be deferred in accordance with the rules of Article VI, applied as if the date the Substantial Risk of Forfeiture lapses is the date payments were originally scheduled to commence, provided, however, that the provisions of Section 6.3 shall not apply to payments attributable to a Change in Control (as defined in Treas. Reg. Section 1.409A-3(i)(5)).

		
	(e)
	Certain Forfeitable Rights. With respect to a legally binding right to a payment in a subsequent year that is subject to a forfeiture condition requiring the Participant's continued services for a period of at least 12 months from the date the Participant obtains the legally binding right, an election to defer such Compensation may be made on or before the 30th day after the Participant obtains the legally binding right to the Compensation, provided that the election is made at least 12 months in advance of the earliest date at which the forfeiture condition could lapse. The Compensation Deferral Agreement described in this paragraph becomes irrevocable after such 30th day. If the forfeiture condition applicable to the payment lapses before the end of the required service period as a result of the Participant's death or disability (as defined in Treas. Reg. Section 1.409A-3(i)(4)) or upon a Change in Control (as defined in Treas. Reg. Section 1.409A-3(i)(5)), the Compensation Deferral Agreement will be void unless it would be considered timely under another rule described in this Section.

		
	(f)
	No "Evergreen" Deferral Elections. No "Evergreen" deferral elections shall be permitted under the Plan such that all Participants will be required to affirmatively submit a new Compensation Deferral Agreement for an upcoming year to have Compensation deferred for that year.  

		
	4.3
	Deductions from Pay. The Committee has the authority to determine the payroll practices under which any component of Compensation subject to a Compensation Deferral Agreement will be deducted from a Participant's Compensation.

		
	4.4
	Vesting. Participant Deferrals shall be 100% vested at all times.

		
	4.5
	Cancellation of Compensation Deferral Agreement. The Committee may cancel a Participant's Compensation Deferral Agreement: (i) for the balance of the Plan Year in which an Unforeseeable Emergency occurs, (ii) if the Participant receives a hardship 

    

10

distribution under the Employer's qualified 401(k) plan, through the end of the Plan Year in which the six month anniversary of the hardship distribution falls, and (iii) during periods in which the Participant is unable to perform the duties of his or her position or any substantially similar position due to a mental or physical impairment that can be expected to result in death or last for a continuous period of at least six months, provided cancellation occurs by the later of the end of the taxable year of the Participant or the 15th day of the third month following the date the Participant incurs the disability (as defined in Treas. Reg. Section 1.409A-3(i)(4)). 

		
	4.6
	Company Contributions. A Participating Employer may, from time to time, in its sole and absolute discretion, credit Company Contributions to any Participant's Company Sub-Account in any amount determined by the Participating Employer.  Company Contributions may be made in the form of a matching contribution, a nonelective contribution or both and may be made in accordance with any formula selected by the Participating Employer, which formula may be different from year to year.   Company Contributions may be subject to any vesting schedule determined by the Participating Employer at the time of the credit. The Committee may, in its sole discretion, fully vest the Participants' Company Sub-Accounts on a Change in Control. All Company Contributions will be credited to the same Company Sub-Account.  

ARTICLE V
Benefit Payments
		
	5.1
	Benefit Commencement and Form of Payment.  With the exception of the Company Sub-Account, each Sub-Account of a Participant as determined under Section 5.5 (other than a Company Sub-Account) shall commence to be paid in accordance with the Compensation Deferral Agreement relating to such Sub-Account. The Participant's Company Sub-Account as determined under Section 5.5 shall be paid in a single lump sum on the first day of the seventh month following the Participant's Separation from Service. Notwithstanding the foregoing and any election made by a Participant, the following payment rules shall apply:

		
	(a)
	Separation from Service. Following a Participant's Separation from Service, any Sub-Account that is scheduled to be paid or commence to be paid after the date of Separation from Service shall instead be paid or commence to be paid on the first day of the seventh month following the Participant's Separation from Service. Any Sub-Account that is scheduled to be paid (either on a specified date or on account of a Change in Control) earlier than the date of Separation from Service shall be paid on that earlier date.  The Sub-Accounts (other than a Company Sub-Account) will be paid in the form selected by the Participant in the Compensation Deferral Agreement.  If a payment scheduled to be paid upon a specified date or on a Change in Control is accelerated and paid on the first day of the seventh month following the Participant's Separation from Service, the method of payment (e.g., lump sum or installments) selected by the Participant on account of payments on account of a Separation from Service 

    

11

shall govern and not any different payment schedule that would have applied if such payment had commenced on the specified date. 

		
	(b)
	Death. Upon the Participant's Death, the Participant shall be paid his or her Aggregate Sub-Account Balance in a single lump sum within 90 days following the Participant's death.

		
	(c)
	Unforeseeable Emergency Payments. A Participant who experiences an Unforeseeable Emergency may submit a written request to the Committee to receive payment of all or any portion of his or her Sub-Accounts. Whether a Participant or Beneficiary is faced with an Unforeseeable Emergency permitting an emergency payment shall be determined by the Committee based on the relevant facts and circumstances of each case, but, in any case, a distribution on account of Unforeseeable Emergency may not be made to the extent that such emergency is or may be reimbursed through insurance or otherwise, by liquidation of the Participant's assets, to the extent the liquidation of such assets would not cause severe financial hardship, or by cessation of Deferrals under this Plan. If an emergency payment is approved by the Committee, the amount of the payment shall not exceed the amount reasonably necessary to satisfy the need, taking into account the additional compensation that is available to the Participant as the result of cancellation of deferrals to the Plan, including amounts necessary to pay any taxes or penalties that the Participant reasonably anticipates will result from the payment. The amount of the emergency payment shall be subtracted first from the Participant's Sub-Accounts commencing on a specified date, beginning with the Sub-Account with the latest payment commencement date. Emergency payments shall be paid in a single lump sum within the 90-day period following the date the payment is approved by the Committee.

		
	5.2
	Small Aggregate Sub-Account Balances.  Notwithstanding any Participant election or other provisions of the Plan, all of a Participant's Sub-Account(s) will be paid in a single lump sum if, on the first day of the seventh month following the Participant's Separation from Service, the Aggregate Sub-Account Balance is not greater than $25,000.  Such single lump sum shall be paid on the first day of the seventh month following the Participant's Separation from Service. 

		
	5.3
	Rules Applicable to Installment Payments. If a payment schedule specifies installment payments, annual payments will be made beginning as of the payment commencement date for such installments and shall continue to be made on each anniversary thereof (or within the 15-day period thereafter) until the number of installment payments specified in the payment schedule has been paid. The amount of each installment payment shall be determined by dividing (a) by (b), where (a) equals the Sub-Account balance as of the applicable Business Day relating to the payment and (b) equals the remaining number of installment payments.

    

12

For purposes of Article VI, a series of installment payments will be treated as a single payment for purposes of Code Section 409A.

		
	5.4
	Acceleration of or Delay in Payments. The Committee, in its sole and absolute discretion, may elect to accelerate the time or form of payment of a benefit owed to the Participant hereunder, provided such acceleration is permitted under Treas. Reg. Section 1.409A-3(j)(4). The Committee may also, in its sole and absolute discretion, delay the time for payment of a benefit owed to the Participant hereunder, to the extent permitted under Treas. Reg. Section 1.409A-2(b)(7).

		
	5.5
	Determination of Amount of Sub-Account. Each Participant's Sub-Account shall equal the value of the Sub-Account as determined under Article VII as of the Determination Date applicable to such payment.

ARTICLE VI
Modifications to Payment Schedules
		
	6.1
	Participant's Right to Modify.  A Participant may modify the designated or elected payment schedules with respect to a Sub-Account, consistent with the permissible payment schedules available under the Plan, provided such modification complies with the requirements of this Article VI. Any modification of the payment schedule remains subject to the payment distribution rules provided in Section 5.1.

		
	6.2
	Time of Election. If a modification applies with respect to a payment scheduled to be payable (or commence to be payable) on a specified date, the date on which a modification election is submitted to the Committee must be at least 12 months before the date on which payment is scheduled to commence under the payment schedule in effect before the modification.  If a modification applies with respect to a payment scheduled to be payable (or commence to be payable) on the first day of the seventh month following Participant's Separation from Service or upon a Change in Control, the modification will not be effective if the Participant's Separation from Service or the Change in Control occurs before the 12-month anniversary of the date the modification is submitted to the Committee.  

		
	6.3
	Date of Payment under Modified Payment Schedule. The date payments are to commence under the modified payment schedule must be no earlier than five years after the date payment would have commenced under the original payment schedule. Under no circumstances may a modification election result in an acceleration of payments in violation of Code Section 409A.

		
	6.4
	Effective Date. A modification election submitted in accordance with this Article VI is irrevocable upon receipt by the Committee and becomes effective 12 months after such date.

    

13

		
	6.5
	Effect on Sub-Accounts. An election to modify a payment schedule is specific to the Sub-Account or payment event to which it applies, and shall not be construed to affect the payment schedules of any other Sub-Accounts.

ARTICLE VII
Valuation of Sub-Account Balances; Investments
		
	7.1
	Valuation. Deferrals shall be credited to appropriate Sub-Accounts on the date such Compensation would have been paid to the Participant absent the Compensation Deferral Agreement. Company Contributions shall be credited to the Company Sub-Account at the times determined by the Committee.  Valuation of Sub-Accounts shall be performed under procedures approved by the Committee.

		
	7.2
	Earnings Credit. With respect to all deferrals, each Sub-Account will be credited with Earnings on each Business Day, based upon the Participant's investment allocation among a menu of investment options selected in advance by the Committee, in accordance with the provisions of this Article VII ("investment allocation").

		
	7.3
	Investment Options. Investment options for all Sub-Accounts will be determined by the Company. The Company, in its sole discretion, shall be permitted to add or remove investment options from the Plan menu from time to time, provided that any such additions or removals of investment options shall not be effective with respect to any period before the effective date of such change.

		
	7.4
	Investment Allocations. A Participant's investment allocation constitutes a deemed, not actual, investment among the investment options comprising the investment menu. At no time shall a Participant have any real or beneficial ownership in any investment option included in the investment menu, nor shall the Participating Employer or any trustee acting on its behalf have any obligation to purchase actual securities as a result of a Participant's investment allocation. A Participant's investment allocation shall be used solely for purposes of adjusting the value of a Participant's Sub-Account balances.

A Participant shall specify an investment allocation for each of his Sub-Accounts in accordance with procedures established by the Committee.  Allocation among the investment options must be designated in increments of 1%. The Participant's investment allocation will become effective on the same Business Day or, in the case of investment allocations received after a time specified by the Committee, the next Business Day.

A Participant may change an investment allocation on any Business Day, both with respect to future credits to the Plan and with respect to existing Sub-Account balances, in accordance with procedures adopted by the Committee. Changes shall become effective on the same Business Day or, in the case of investment allocations received after a time specified by the Committee, the next Business Day, and shall be applied prospectively.

    

14

		
	7.5
	Unallocated Deferrals and Sub-Accounts. If the Participant fails to make an investment allocation with respect to a Sub-Account, such Sub-Account shall be invested in an investment option, the primary objective of which is the preservation of capital, as determined by the Committee.

ARTICLE VIII
Administration
		
	8.1
	Plan Administration. This Plan shall be administered by the Committee which shall have discretionary authority to make, amend, interpret and enforce all appropriate rules and regulations for the administration of this Plan and to utilize its discretion to decide or resolve any and all questions, including but not limited to eligibility for benefits and interpretations of this Plan and its terms, as may arise in connection with the Plan. Claims for benefits shall be filed with the Committee and resolved in accordance with the claims procedures in Article XI.

The Committee may, as necessary, make a determination of the amount of, and manner in which, any payment erroneously made to a Participant or amounts that are overpaid are recovered, in accordance with applicable law, including, without limitation, by seeking repayment or by offsetting any other payment due under the Plan; provided that any offsets against amounts shall be made in compliance with Section 409A.

		
	8.2
	Administration Upon Change in Control. Upon a Change in Control, the Committee, as constituted immediately before such Change in Control, shall continue to act as the Committee. The individual who was the Chief Executive Officer of the Company (or if such person is unable or unwilling to act, the next highest ranking officer) before the Change in Control shall have the authority (but shall not be obligated) to appoint an independent third party to act as the Committee.

Upon such Change in Control, the Company may not remove the Committee, unless 2/3rds of the members of the Board of the Company consent to the removal and replacement of the Committee. Notwithstanding the foregoing, neither the Committee nor the officer described above shall have authority to direct investment of trust assets under any rabbi trust described in Section 10.2.

The Participating Employer shall, with respect to the Committee identified under this Section: (i) pay all reasonable expenses and fees of the Committee, (ii) indemnify the Committee (including individuals serving as Committee members) against any costs, expenses and liabilities including, without limitation, attorneys' fees and expenses arising in connection with the performance of the Committee's duties hereunder, except with respect to matters resulting from the Committee's gross negligence or willful misconduct, and (iii) supply full and timely information to the Committee on all matters related to the Plan, any rabbi trust, Participants, Beneficiaries and Sub-Accounts as the Committee may reasonably require.

    

15

		
	8.3
	Withholding. The Participating Employer shall have the right to withhold from any payment due under the Plan (or with respect to any amounts credited to the Plan) any taxes required by law to be withheld in respect of such payment (or credit). Withholdings with respect to amounts credited to the Plan or vested with respect to Company Contributions and related Earnings shall be deducted from Compensation that has not been deferred to the Plan, or, with respect to any Participant who has terminated employment and as permitted by Code Section 409A, from the Participant's Sub-Account under the Plan. 

		
	8.4
	Indemnification. The Participating Employers shall indemnify and hold harmless each employee, officer, director, agent or organization, to whom or to which are delegated duties, responsibilities, and authority under the Plan or otherwise with respect to administration of the Plan, including, without limitation, the Committee and its agents, against all claims, liabilities, fines and penalties, and all expenses reasonably incurred by or imposed upon him or it (including but not limited to reasonable attorney fees) which arise as a result of his or its actions or failure to act in connection with the operation and administration of the Plan to the extent lawfully allowable and to the extent that such claim, liability, fine, penalty, or expense is not paid for by liability insurance purchased or paid for by the Participating Employer. Notwithstanding the foregoing, the Participating Employer shall not indemnify any person or organization if his or its actions or failure to act are due to gross negligence or willful misconduct or for any such amount incurred through any settlement or compromise of any action unless the Participating Employer consents in writing to such settlement or compromise.

		
	8.5
	Delegation of Authority. In the administration of this Plan, the Committee may, from time to time, employ agents and delegate to them such administrative duties as it sees fit, and may from time to time consult with legal counsel who shall be legal counsel to the Company.

		
	8.6
	Binding Decisions or Actions. The decision or action of the Committee in respect of any question arising out of or in connection with the administration, interpretation and application of the Plan and the rules and regulations thereunder shall be final and conclusive and binding upon all persons having any interest in the Plan. 

ARTICLE IX
Amendment and Termination
		
	9.1
	Amendment and Termination. The Company may at any time and from time to time amend the Plan or may terminate the Plan as provided in this Article IX. Each Participating Employer may also terminate its participation in the Plan.

 

		
	9.2
	Amendments. The Company, by action taken by the Committee, may amend the Plan at any time and for any reason, provided that any such amendment shall not reduce the 

    

16

Sub-Account balances of any Participant accrued as of the date of any such amendment or restatement (as if the Participant had incurred a voluntary Separation from Service on such date) or reduce any rights of a Participant under the Plan or other Plan features with respect to Deferrals made before the date of any such amendment or restatement without the consent of the Participant. In addition to other delegation powers set forth in Section 8.5, the Committee may delegate its authority to amend the Plan without the consent of the Committee for the purpose of: (i) conforming the Plan to the requirements of law; (ii) facilitating the administration of the Plan; (iii) clarifying provisions based on the delegate's interpretation of the document; and (iv) making such other amendments as the Committee may authorize.

		
	9.3
	Termination. The Committee may terminate the Plan and pay Participants and Beneficiaries their Aggregate Sub-Account Balances in a single lump sum at any time, to the extent and in accordance with Treas. Reg. Section 1.409A-3(j)(4)(ix). If a Participating Employer terminates its participation in the Plan, the benefits of affected Employees shall be paid at the time provided in Article V.

		
	9.4
	Sub-Accounts Taxable Under Code Section 409A. The Plan is intended to constitute a plan of deferred compensation that meets the requirements for deferral of income taxation under Code Section 409A. In the event that any provision of this Plan shall be determined to contravene Code Section 409A, the regulations promulgated thereunder, regulatory interpretations or announcements with respect to Code Section 409A, any such provision shall be void and have no effect and may be amended by the Company without the consent of the Participant, for the purpose of Code Section 409A compliance.  Moreover, this Plan shall be interpreted at all times in such a manner that the terms and provisions of the Plan comply with Code Section 409A, the regulations promulgated thereunder, and regulatory interpretations or announcements with respect to Code Section 409A.  The Company shall have the authority to void any Participant election hereunder if necessary to maintain the Plan in compliance with Code Section 409A and, pursuant to its authority to interpret the Plan, may sever from the Plan or any Compensation Deferral Agreement any provision or exercise of a right that otherwise would result in a violation of Code Section 409A.

ARTICLE X
Informal Funding
		
	10.1
	General Assets. Obligations established under the terms of the Plan may be satisfied from the general funds of the Participating Employers, or a trust described in this Article X. No Participant, spouse or Beneficiary shall have any right, title or interest whatever in assets of the Participating Employers. Nothing contained in this Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship, between the Participating Employers and any Employee, spouse, or Beneficiary. To the extent that any person acquires a right to receive payments hereunder, such rights are no greater than the right of an unsecured general creditor of the Participating Employer.

    

17

		
	10.2
	Rabbi Trust. A Participating Employer may, in its sole discretion, establish a grantor trust, commonly known as a rabbi trust, as a vehicle for accumulating assets to pay benefits under the Plan. Payments under the Plan may be paid from the general assets of the Participating Employer or from the assets of any such rabbi trust. Payment from any such source shall reduce the obligation owed to the Participant or Beneficiary under the Plan.

ARTICLE XI
Claims
		
	11.1
	Filing a Claim. Any controversy or claim arising out of or relating to the Plan shall be filed in writing with the Committee which shall make all determinations concerning such claim.  Any claim filed with the Committee and any decision by the Committee denying such claim shall be in writing and shall be delivered to the Participant or Beneficiary filing the claim (the "Claimant"). 

		
	(a)
	In General. Notice of a denial of benefits will be provided within 90 days of the Committee's receipt of the Claimant's claim for benefits. If the Committee determines that it needs additional time to review the claim, the Committee will provide the Claimant with a notice of the extension before the end of the initial 90-day period. The extension will not be more than 90 days from the end of the initial 90-day period and the notice of extension will explain the special circumstances that require the extension and the date by which the Committee expects to make a decision. 

		
	(b)
	Contents of Notice. If a claim for benefits is completely or partially denied, notice of such denial shall be in writing and shall set forth the reasons for denial in plain language. The notice shall: (i) cite the pertinent provisions of the Plan document, and (ii) explain, where appropriate, how the Claimant can perfect the claim, including a description of any additional material or information necessary to complete the claim and why such material or information is necessary. The claim denial also shall include an explanation of the claims review procedures and the time limits applicable to such procedures, including a statement of the Claimant's right to bring a civil action under Section 502(a) of ERISA following an adverse decision on review.

		
	11.2
	Appeal of Denied Claims. A Claimant whose claim has been completely or partially denied shall be entitled to appeal the claim denial by filing a written appeal with a committee designated to hear such appeals (the "Appeals Committee"). A Claimant who timely requests a review of the denied claim (or his or her authorized representative) may review, upon request and free of charge, copies of all documents, records and other information relevant to the denial and may submit written comments, documents, records and other information relevant to the claim to the Appeals Committee. All written comments, documents, records, and other information shall be considered 

    

18

"relevant" if the information: (i) was relied upon in making a benefits determination, (ii) was submitted, considered or generated in the course of making a benefits decision regardless of whether it was relied upon to make the decision, or (iii) demonstrates compliance with administrative processes and safeguards established for making benefit decisions. The Appeals Committee may, in its sole discretion and if it deems appropriate or necessary, decide to hold a hearing with respect to the claim appeal.

		
	(a)
	In General. Appeal of a denied benefits claim must be filed in writing with the Appeals Committee no later than 60 days after receipt of the written notification of such claim denial. The Appeals Committee shall make its decision regarding the merits of the denied claim within 60 days following receipt of the appeal (or within 120 days after such receipt, in a case where there are special circumstances requiring extension of time for reviewing the appealed claim). If an extension of time for reviewing the appeal is required because of special circumstances, written notice of the extension shall be furnished to the Claimant before the commencement of the extension. The notice will indicate the special circumstances requiring the extension of time and the date by which the Appeals Committee expects to render the determination on review. The review will take into account comments, documents, records and other information submitted by the Claimant relating to the claim without regard to whether such information was submitted or considered in the initial benefit determination.

		
	(b)
	Contents of Notice. If a benefits claim is completely or partially denied on review, notice of such denial shall be in writing and shall set forth the reasons for denial in plain language. 

The decision on review shall set forth: (i) the specific reason or reasons for the denial, (ii) specific references to the pertinent Plan provisions on which the denial is based, (iii) a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of all documents, records, or other information relevant (as defined above) to the Claimant's claim, and (iv) a statement describing any voluntary appeal procedures offered by the plan and a statement of the Claimant's right to bring an action under Section 502(a) of ERISA. 

		
	11.3
	Claims Appeals Upon Change in Control. Upon a Change in Control, the Appeals Committee, as constituted immediately before such Change in Control, shall continue to act as the Appeals Committee. Upon such Change in Control, the Company may not remove any member of the Appeals Committee, but may replace resigning members if 2/3rds of the members of the Board of the Company and a majority of Participants and Beneficiaries with Sub-Account balances consent to the replacement.

The Appeals Committee shall have the exclusive authority at the appeals stage to interpret the terms of the Plan and resolve appeals under the Claims Procedure.

    

19

Each Participating Employer shall, with respect to the Committee identified under this Section: (i) pay its proportionate share of all reasonable expenses and fees of the Appeals Committee, (ii) indemnify the Appeals Committee (including individual committee members) against any costs, expenses and liabilities including, without limitation, attorneys' fees and expenses arising in connection with the performance of the Appeals Committee hereunder, except with respect to matters resulting from the Appeals Committee's gross negligence or willful misconduct, and (iii) supply full and timely information to the Appeals Committee on all matters related to the Plan, any rabbi trust, Participants, Beneficiaries and Sub-Accounts as the Appeals Committee may reasonably require.

		
	11.4
	Legal Action. A Claimant may not bring any legal action, including commencement of any arbitration, relating to a claim for benefits under the Plan unless and until the Claimant has followed the claims procedures under the Plan and exhausted his or her administrative remedies under such claims procedures.

If a Participant or Beneficiary prevails in a legal proceeding brought under the Plan to enforce the rights of such Participant or any other similarly situated Participant or Beneficiary, in whole or in part, the Participating Employer shall reimburse such Participant or Beneficiary for all legal costs, expenses, attorneys' fees and such other liabilities incurred as a result of such proceedings. If the legal proceeding is brought in connection with a Change in Control, or a "change in control" as defined in a rabbi trust described in Section 10.2, the Participant or Beneficiary may file a claim directly with the trustee for reimbursement of such costs, expenses and fees. For purposes of the preceding sentence, the amount of the claim shall be treated as if it were an addition to the Participant's or Beneficiary's Aggregate Sub-Account Balance.

		
	11.5
	Discretion of Appeals Committee. All interpretations, determinations and decisions of the Appeals Committee with respect to any claim shall be made in its sole discretion, and shall be final and conclusive.

ARTICLE XII
General Provisions
		
	12.1
	Assignment. Except with respect to a Permitted Transferee, no interest of any Participant, spouse or Beneficiary under this Plan and no benefit payable hereunder shall be assigned as security for a loan, and any such purported assignment shall be null, void and of no effect, nor shall any such interest or any such benefit be subject in any manner, either voluntarily or involuntarily, to anticipation, sale, transfer, assignment or encumbrance by or through any Participant, spouse or Beneficiary. Notwithstanding anything to the contrary herein, however, pursuant to conditions and procedures established by the Committee from time to time, the Committee may permit Sub-Accounts to be paid to certain persons or entities related to a Participant, including members of the Participant’s immediate family, charitable institutions, or trusts or other entities whose beneficiaries or beneficial owners are members of the Participant’s 

    

20

immediate family and/or charitable institutions (a “Permitted Transferee”). Any permitted transfer shall be subject to the condition that the Committee receive evidence satisfactory to it that the transfer or payment is being made for estate and/or tax planning purposes on a gratuitous or donative basis and without consideration (other than nominal consideration). 

The Company may assign any or all of its liabilities under this Plan in connection with any restructuring, recapitalization, sale of assets or other similar transactions affecting a Participating Employer without the consent of the Participant.

		
	12.2
	No Legal or Equitable Rights or Interest. No Participant or other person shall have any legal or equitable rights or interest in this Plan that are not expressly granted in this Plan. Participation in this Plan does not give any person any right to be retained in the service of the Participating Employer. The right and power of a Participating Employer to dismiss or discharge an Employee is expressly reserved. The Participating Employers make no representations or warranties as to the tax consequences to a Participant or a Participant's beneficiaries resulting from a deferral of income pursuant to the Plan.

		
	12.3
	No Employment Contract. Nothing contained herein shall be construed to constitute a contract of employment between an Employee and a Participating Employer.

		
	12.4
	Notice. Any notice or filing required or permitted to be delivered to the Committee under this Plan shall be delivered in writing, in person, or through such electronic means as is established by the Committee. Notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification. Written transmission shall be sent by certified mail to:

THE KANSAS CITY SOUTHERN RAILWAY COMPANY 
RE: EXECUTIVE DEFERRED COMPENSATION PLAN
ATTN: HUMAN RESOURCES 
427 WEST 12TH STREET
  KANSAS CITY, MO 64105

Any notice or filing required or permitted to be given to a Participant under this Plan shall be sufficient if in writing or hand-delivered, or sent by mail to the last known address of  the Participant.

		
	12.5
	Headings. The headings of Sections are included solely for convenience of reference, and if there is any conflict between such headings and the text of this Plan, the text shall control. 

		
	12.6
	Invalid or Unenforceable Provisions. If any provision of this Plan shall be held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof and the Committee may elect in its sole discretion to construe such 

    

21

invalid or unenforceable provisions in a manner that conforms to applicable law or as if such provisions, to the extent invalid or unenforceable, had not been included.

		
	12.7
	Lost Participants or Beneficiaries. Any Participant or Beneficiary who is entitled to a benefit from the Plan has the duty to keep the Committee advised of his or her current mailing address. If benefit payments are returned to the Plan or are not presented for payment after a reasonable amount of time, the Committee shall presume that the payee is missing. The Committee, after making such efforts as in its discretion it deems reasonable and appropriate to locate the payee, shall stop payment on any uncashed checks and may discontinue making future payments until contact with the payee is restored. 

		
	12.8
	Facility of Payment to a Minor.  If a distribution is to be made to a minor, or to a person who is otherwise incompetent, then the Committee may, in its discretion, make such distribution: (i) to the legal guardian, or if none, to a parent of a minor payee with whom the payee maintains his or her residence, or (ii) to the conservator or committee or, if none, to the person having custody of an incompetent payee. Any such distribution shall fully discharge the Committee, the Company, and the Plan from further liability on account thereof.

		
	12.9
	Governing Law. To the extent not preempted by ERISA, the laws of the State of Missouri shall govern the construction and administration of the Plan.

    

22

The undersigned executed this Plan as of the 31 day of August, 2018, to be effective as of the Effective Date.

KANSAS CITY SOUTHERN

By:     Lora Cheatum            (Print Name)
Its:      SVP – HR & Labor        (Title)

/s/ Lora Cheatum        (Signature)

    

23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00288-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00288-of-00352.parquet"}]]