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Stock Ownership Guidelines

On May 4, 2005, the Kansas City Southern (KCS) Board of Directors adopted a guideline that all Non-Employee Directors will be required to beneficially own at least 20,000 shares of KCS Common Stock within five years from the later of May 4, 2005 or the date on which the non-employee director first joined the Board. Restricted stock granted to the director by the Company will count towards the requirement.