<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>3
<FILENAME>form8k_30405ex102.txt
<DESCRIPTION>EXH. 10.2 EXEC. INCENTIVE PLAN
<TEXT>
                                                                    Exhibit 10.2
 
 
                                DST SYSTEMS, INC.
                            EXECUTIVE INCENTIVE PLAN
                   (AMENDED AND RESTATED AS OF MARCH 2, 2005)
 
SECTION 1. PURPOSE
 
The purpose of the Executive  Incentive Plan is to reward plan  participants for
achieving  defined  earnings  per  share  objectives  that  support   increasing
profitability  of DST Systems,  Inc. The Plan provides both annual and long-term
incentives,  contingent  upon meeting annual and  cumulative  Earnings Per Share
goals. The Company intends that the Plan will facilitate in securing, retaining,
and  motivating  employees  of superior  capability;  in  providing  competitive
management  compensation;  and in linking  incentive  awards to objectives  that
should enhance shareholder value.
 
SECTION 2. DEFINITIONS
 
When used in the Plan, the following  words and phrases shall have the following
meanings:
 
(a)  "Affiliate"  means any entity (other than the Company or a  Subsidiary)  of
     which the Company or a Subsidiary  directly or indirectly  owns 50% or more
     of the combined voting power of all classes of stocks of such entity or 50%
     or more of the ownership interests in such entity.
 
(b)  "Beneficiary" means the person,  persons,  trust, or trusts which have been
     designated by a Participant in his or her most recent  written  beneficiary
     designation filed with the Company to receive the benefits  specified under
     this  Plan,  if any,  upon  the  Participant's  death,  or,  if there is no
     designated  Beneficiary  or  surviving  designated  Beneficiary,  then  the
     person,  persons,  trust, or trusts entitled by will or the laws of descent
     and distribution to receive such benefits.
 
(c)  "Board" means the Board of Directors of the Company.
 
(d)  "Committee"  means the  Compensation  Committee  of the Board or such other
     Board  Committee as may be designated by the Board to administer  the Plan;
     provided,  however,  that  the  Committee  shall  consist  of two  or  more
     directors of the Company each of whom is a  "disinterested  person"  within
     the meaning of Rule 16b-3 under the  Securities  Exchange  Act of 1934,  as
     amended from time to time and an "outside  director" as required by Section
     162(m) of the Internal Revenue Code.
 
(e)  "Common Stock" means the Common Stock of the Company.
 
(f)  "Common  Stock  Outstanding"  means the weighted  average  number of actual
     shares of  Common  Stock  issued  and  outstanding  during  the Plan  Year,
     determined in accordance with generally accepted  principles.  In the event
     of  a  reorganization,  recapitalization,  stock  split,  spin  off,  stock
     dividend, combination of shares, merger, consolidation,
<PAGE>
 
     rights  offering,  or any other  change  in the  capital  structure  of the
     Company,  the  Committee  may make  such  adjustment,  if any,  as it deems
     appropriate in the determination of Common Stock Outstanding.
 
(g)  "Company" means DST Systems,  Inc., a corporation  organized under the laws
     of Delaware, or any successor company.
 
(g1) "Deferred Cash" means a right to receive the Non-Cash  Portion of the award
     in cash (less any amounts  required to be withheld for  federal,  state and
     local taxes and accounting for increases or decreases in amount as provided
     in  Section   7(d)(ii))  as  soon  as  practicable  after  the  Release  of
     Restriction Date set forth in Section 7(b)(iv).
 
(h)  "Disability"  means  the  Participant,  because  of a  physical  or  mental
     disability,  will be unable to perform  the duties of his or her  customary
     position of employment (or is unable to engage in any  substantial  gainful
     activity  for  Company)  for  an  indefinite  period  which  the  Committee
     considers  will  be of  long  continued  duration.  The  Plan  considers  a
     Participant  disabled on the date the Committee  determines the Participant
     satisfies  the  definition  of  disability.  The  Committee  may  require a
     Participant  to  submit  to a  physical  examination  in order  to  confirm
     disability.  The Committee  will apply the  provisions of this section in a
     nondiscriminatory, consistent and uniform manner.
 
(i)  "Earnings Per Share" or "EPS" means diluted earnings per share,  determined
     in accordance with generally accepted accounting principles.
 
(j)  "Equity" shall mean either Restricted Common Stock or Options.
 
(k)  "Income" means net income of the Company and its consolidated Subsidiaries,
     determined in accordance with generally accepted  principles,  consistently
     applied,  for any Plan Year for which the incentive  awards are calculated,
     as  reported  by the Company and  certified  by the  Company's  independent
     certified public accountants.
 
(l)  "Market  Price"  shall be the average of the  highest  and lowest  reported
     sales prices of Common Stock on the New York Stock Exchange.
 
(l1) "Non-Cash  Portion" means that portion of an award consisting of Restricted
     Common Stock, Options or Deferred Cash.
 
(m)  "Options" shall mean non-qualified options to purchase Common Stock granted
     pursuant to Sections 5 and 7.
 
(n)  "Participant(s)"  shall mean all officers of the Company,  all employees of
     the Company who hold the managerial  title of director,  and such employees
     of  Subsidiaries  and  Affiliates  holding  officer or managerial  director
     positions  as  are  designated  from  time  to  time  by  the  Compensation
     Committee.
 
<PAGE>
 
(o)  "Plan" means this Executive  Incentive Plan, as it may be amended from time
     to time.
 
(p)  "Plan Year" means the fiscal year of the Company.
 
(p1) "Resignation for Good Reason" means Participant's resignation subsequent to
     a Change in Control on not less than thirty (30) days written notice to the
     DST Systems, Inc. corporate secretary,  effective at the end of such notice
     period, and for any of the following reasons occurring without his consent:
     (i) a  change  in the  character  of  Participant's  assigned  duties  or a
     reduction  in the level of  Participant's  work or  responsibility,  (ii) a
     reduction in base salary or incentive bonus as in effect  immediately prior
     to the Change in Control or in effect as a result of an increase subsequent
     to the Change in  Control,  (iii) a failure  by  Company  or its  successor
     either to continue in effect any benefit plans made generally  available to
     Company executives at Participant's geographic location prior to the Change
     in Control or to provide other plans under which  compensation and benefits
     are available in which  Participant  continues to participate on a basis at
     least  equivalent to his  participation  in the Company  plans  immediately
     prior to the Change in Control, (iv) a failure by Company to timely make to
     Participant  payment of any unfunded  amounts due under any Company benefit
     plan as a result  of the  Change  in  Control,  (v) the  relocation  of the
     principal  office  at which  Participant  worked  immediately  prior to the
     Change in Control to a location outside of the metropolitan area where such
     office was located but only if relocation requires  Participant to be based
     anywhere other than such  metropolitan  area (except for required travel on
     Company business to an extent  substantially  consistent with Participant's
     obligations immediately prior to the Change in Control), or (vi) any breach
     of an employment agreement between Company, Subsidiary or Affiliate, or any
     successor company and Participant.
 
(q)  "Restricted  Common  Stock" means  Common Stock  delivered in payment of an
     incentive award and subject to restrictions described in Section 7.
 
(r)  "Subsidiary" means a corporation,  domestic or foreign, the majority of the
     voting stock of which is owned directly or indirectly by the Company.
 
(s)  "Targeted  Earnings  Per Share" or  "Targeted  EPS" means the  Earnings Per
     Share criteria to be established by the Committee, from time to time and in
     its sole  discretion,  pursuant to Section 4(b) for purposes of determining
     incentive awards.
 
(t)  "Termination  Without Cause" means a termination by Company,  Subsidiary or
     Affiliate  of  Participant's  employment  that  is not  For  Cause  so that
     Participant  is no longer  employed  by  Company  or by any  Subsidiary  or
     Affiliate. A termination of employment "For Cause" includes termination for
     any act of dishonesty, willful misconduct, gross negligence, intentional or
     conscious  abandonment  or neglect  of duty,  criminal  activity,  fraud or
     embezzlement,  any unauthorized  disclosure or use of material confidential
     information  or  trade  secrets,   or  violation  of  any   non-compete  or
     non-disclosure  agreement  between  Participant and Company,  Subsidiary or
     Affiliate.
 
<PAGE>
 
SECTION 3. ELIGIBILITY AND PARTICIPATION
 
Except in the event of (i) retirement on or after age 60, (ii) Disability, (iii)
death,  or (iv)  Termination  Without  Cause,  a  Participant  must be an active
employee of the Company,  a Subsidiary,  or Affiliate on December 31 of the Plan
Year  to be  eligible  for an  incentive  award.  In the  event  of  retirement,
Disability,  death,  or  Termination  Without  Cause,  the  incentive  award  as
calculated  at the end of and for the  full  Plan  Year  shall be  pro-rated  to
reflect the actual period of employment during the Plan Year.
 
SECTION 4. INCENTIVE AWARD DETERMINATION
 
(a)  INCENTIVE AWARD OPPORTUNITY The Committee shall establish award opportunity
     levels (which may be Threshold, Target and Maximum levels) at the times and
     in the  manner it deems  appropriate  for  carrying  out the intent of this
     Plan.
 
     The  amount  of the  incentive  award  earned  will  be  pro-rated  between
     incentive award opportunity levels to reflect actual performance  attained.
     Unless otherwise determined by the Committee,  opportunity levels expressed
     as  percentages  of base  salary  shall be based on base  salary  as of the
     beginning of a Plan Year.  No incentive  award will be payable with respect
     to  a  performance   measure  and  weighting   where  less  than  Threshold
     performance  has been  attained.  No incentive  award for a Plan Year shall
     exceed 300% of the  Participant's  base salary as of the  beginning  of the
     Plan Year.
 
(b)  PERFORMANCE   MEASURES  AND  WEIGHTING  The   Committee   shall   establish
     performance criteria (which may be Threshold,  Target and Maximum criteria)
     and weighting  among criteria for each  Participant at the times and in the
     manner it deems appropriate for carrying out the intent of this Plan.
 
SECTION 5. PAYMENT OF EARNED INCENTIVE AWARDS
 
As soon as practical  after the end of the Plan Year and upon the compilation of
the  necessary  information,   the  Committee  shall  determine  the  degree  of
attainment of the performance measures and the awards payable in accordance with
Section 4 and this Section 5. The Committee shall certify, in writing,  prior to
the payment of incentive  awards that the  performance  goals and other material
terms of the Plan have been satisfied.
 
Unless  otherwise  determined by the Committee,  the aggregate  incentive  award
determined  for a Plan  Year  (annual  and  cumulative)  shall  be  paid  to the
Participant in a combination  of cash and Equity or Deferred Cash,  depending on
the level of incentive award earned, as follows:
 
(a)  100% cash for that  portion of a  Participant's  incentive  award up to and
     including his or her Threshold incentive opportunity level;
 
(b)  50%  cash  and  50%  Equity  or  Deferred   Cash  for  that  portion  of  a
     Participant's   incentive  award  above  his  or  her  Threshold  incentive
     opportunity  levels  up to  and  including  his or  her  Maximum  incentive
     opportunity level; and
 
<PAGE>
 
Upon the  Committee's  written  certification,  the  Company  shall pay the cash
portion of the incentive award earned,  less any amounts required to be withheld
for federal,  state and local taxes,  as soon as practicable and shall grant the
Non-Cash Portion in accordance with the procedures and restrictions set forth in
Section 7.
 
SECTION 6. LIMITATIONS ON INCENTIVE AWARDS
 
The aggregate value of all incentive awards for a Plan Year shall not exceed ten
percent (10%) of the Company's  pre-tax  income for such Plan Year. If incentive
awards generated in a Plan Year exceed this amount, the incentive awards for all
Participants shall be reduced pro-rata.
 
SECTION 7. NON-CASH PORTION ELECTION AND PROCEDURES
 
(a)  SELECTION OF AWARD TYPE;  AWARD  AGREEMENTS The Committee  shall  determine
     whether the Non-Cash  Portion of the award for a Plan Year shall be made in
     the form of Restricted Stock,  Options,  or Deferred Cash, or a combination
     thereof,  or whether  Participants  shall be  allowed  to elect  Restricted
     Stock, Options, or Deferred Cash, or a combination thereof.  Procedures for
     Participants  making any such  election  shall be  determined  by the Chief
     Financial  Officer.  The Committee may make any awards hereunder subject to
     the terms and conditions of an award agreement.
 
(b)  RESTRICTED COMMON STOCK
 
     (i)  ISSUANCE  OF  RESTRICTED  COMMON  STOCK Each  Participant  electing to
          receive Restricted Common Stock shall have issued in his or her name a
          number of full shares of  Restricted  Common  Stock equal to the whole
          number of the quotient  obtained by dividing the dollar  amount of the
          incentive  award to be settled in Equity,  as determined in Section 5,
          by the  Market  Price  on the  "date  of  grant".  The  date  that the
          Committee  approves  the  incentive  awards for the Plan Year shall be
          deemed  to be the date of  grant.  If the  amount  of the award is not
          evenly  divisible by such Market Price,  then the  remainder  shall be
          paid to the Participant in cash.
 
     (ii) RIGHTS AND  OBLIGATIONS ON RESTRICTED  COMMON STOCK A certificate  for
          all shares of  Restricted  Common  Stock  registered  in the name of a
          Participant  shall  be  delivered  to  the  office  of  the  corporate
          secretary  for  safekeeping.  The  Participant  shall  thereupon  be a
          stockholder  and have all the rights of a stockholder  with respect to
          such shares,  including the right to vote and receive all dividends or
          other  distributions  made  or  paid  with  respect  to  such  shares;
          provided,  that, in the discretion of the Compensation Committee,  all
          such  distributions  that are not capital stock of the employer of the
          Participant shall be converted to capital stock of such employer,  and
          provided further, that such shares of Restricted Common Stock, and any
          new,  additional or different  securities the  Participant  may become
          entitled to receive  with  respect to such shares by virtue of a stock
          split or stock  dividend  or any  other  change  in the
 
<PAGE>
 
          corporate or capital structure of the Company, shall be subject to the
          restrictions described in Section 7 (b)(iii).
 
     (iii)RESTRICTIONS  Prior to  release  or  payment  as  provided  in Section
          7(b)(iv),  the  shares  of  Restricted  Common  Stock or the  right to
          receive  Deferred  Cash  may  not  be  sold,  exchanged,  transferred,
          pledged,  hypothecated,  or otherwise  disposed of by the Participant.
          However,  nothing  herein shall  preclude a Participant  from making a
          gift of any  shares of  Restricted  Common  Stock to a spouse,  child,
          step-child,  grandchild,  parent or sibling, or legal dependent of the
          Participant or to a trust of which the beneficiary or beneficiaries of
          the  corpus  and the  income  shall be  either  such a  person  or the
          Participant; provided that, the Restricted Common Stock so given shall
          remain  subject  to  the  restrictions,   obligations  and  conditions
          described in this Section.
 
     (iv) RELEASE OF RESTRICTIONS  All  restrictions on Restricted  Common Stock
          shall  lapse  as  of,  and  Deferred  Cash  shall  issue  as  soon  as
          administratively practicable after, the first trading day on the stock
          exchange on which the Common Stock is listed of the fourth fiscal year
          following the Plan Year for which the  Restricted  Common Stock or the
          right  to  receive   Deferred   Cash  was  awarded  (the  "Release  of
          Restriction Date"); provided, however that in the event of termination
          of employment with the Company,  Subsidiary, or Affiliate prior to the
          Release  of   Restriction   Date  for  any   reason   other  than  the
          Participant's  (i) retirement on or after 60, (ii)  Disability,  (iii)
          death, or (iv) Termination  Without Cause, all rights to any shares of
          Restricted  Common Stock or to receive the Deferred Cash payments with
          respect  to  such  award  shall  be   forfeited  to  the  Company  and
          certificates  for such Restricted  Common Stock shall be cancelled and
          of no further effect.
 
          Any  shares  of  Restricted  Common  Stock  held by the  office of the
          corporate  secretary  shall  be  delivered,  free  and  clear  of  all
          restrictions,  and any payments of Deferred Cash shall be paid, to (A)
          the  Participant  upon  (or as  soon as  administratively  practicable
          after) the Release of  Restriction  Date,  his or her retirement on or
          after 60, Disability,  or Termination Without Cause; or (B) his or her
          Beneficiary upon (or as soon as  administratively  practicable  after)
          his or her death before retirement.
 
(c)  OPTIONS
 
     (i)  COMPUTATION  OF NUMBER Each  Participant  electing to receive  Options
          shall have  granted to him or her an option for that  number of shares
          of  Common  Stock  equal  to three  times  the  number  of  shares  of
          Restricted  Common  Stock  available to such  Participant  as computed
          pursuant  to  Section  7(b)(i)  above.  The date  that  the  Committee
          approves the incentive  awards for the Plan Year shall be deemed to be
          the date of grant. If the amount of the award is not evenly  divisible
          by such value,  then the remainder shall be paid to the Participant in
          cash.
 
<PAGE>
 
     (ii) OPTION TERMS The Common Stock options shall be subject to an agreement
          between the grantee and the Company (an "Option  Agreement")  and will
          contain the following terms:
 
          (A)  the Common Stock options shall be  non-qualified  options granted
               pursuant  to  the  DST  Systems,   Inc.  1995  Stock  Option  and
               Performance Award Plan (the "Option Plan");
 
          (B)  the option  price shall be the fair  market  value (as defined in
               the Option Plan) on the date of grant;
 
          (C)  the options shall become exercisable on the last day of the third
               calendar  year  following  the calendar  year for which the bonus
               allocated   to  the  option  was  earned,   subject  to  becoming
               exercisable earlier upon Termination  Without Cause,  retirement,
               death or Disability;
 
          (D)  the options,  if granted prior to November 28, 2003, shall have a
               reload  feature which would be effective  only if the fair market
               value of the  Common  Stock has  increased  at least 20% from the
               date of grant to the date of exercise; and
 
          (E)  the options shall be further  subject to the terms and conditions
               set forth in the Option Agreement.
 
(d)  DEFERRED CASH
 
     (i)  Deferred Cash shall be paid as set forth in Section  7(b)(iv)  hereof,
          and rights with respect to such award shall be limited as set forth in
          Section 7(b)(iii) hereof.
 
     (ii) The Committee may, but is not required to, direct the Chief  Financial
          Officer to establish procedures for the investment of Deferred Cash in
          hypothetical  investments of DST selected by the Participant  from two
          or more  hypothetical  investments  chosen by the Committee or, if the
          Committee  allows,  by the Chief  Financial  Officer or the President.
          Each  Participant's  Deferred  Cash amount shall be credited  with any
          gains on such selected  hypothetical  investments and shall be charged
          with any losses from such hypothetical  investments so that the amount
          of Deferred Cash finally  received by the Participant will be equal to
          the Participant's  hypothetical  investment  account at a date certain
          prior  to the  time of  payment  less  any  required  tax  withholding
          amounts.
 
     (iii)The Committee may, but is not required to, direct the Chief  Financial
          Officer to establish  procedures for Participant  elections adequately
          in advance of the Release of Restriction  Date under applicable tax or
          other laws to continue  deferrals  beyond the  Release of  Restriction
          Date for periods  allowed or required by the Committee and  applicable
          tax or other laws.
 
<PAGE>
 
SECTION 8. CHANGE IN CONTROL
 
(a)  EFFECT ON  RESTRICTED  COMMON STOCK AND OPTIONS In the event of a Change in
     Control (as defined below), all time periods and requirements  necessary to
     cause a release of restrictions on Restricted  Common Stock as set forth in
     Section  7(b)(iv)  shall be deemed to have been  met;  and the  Release  of
     Restrictions  Date for such  Restricted  Common  Stock will be deemed to be
     upon such Change in Control.  Any shares of  Restricted  Common  Stock then
     held by the office of the  corporate  secretary  shall be  delivered to the
     Participant  upon  such  Release  of  Restrictions,  free and  clear of all
     restrictions.  The  effect  of a change  of  control  on  Options  shall be
     determined under the Option Agreement.
 
(a1) EFFECT ON DEFERRED CASH  Notwithstanding  any other provision of this Plan,
     subsequent  to a Change in Control (as defined  below) that occurs prior to
     the Release of  Restrictions  Date, the Deferred Cash shall be paid as soon
     as administratively  practicable after the earliest of the following dates:
     (a) Release of  Restrictions  Date,  or (b) the date of  Participant's  (i)
     retirement  on  or  after  age  60,  (ii)  Disability,  (iii)  death,  (iv)
     Termination Without Cause or (v) Resignation for Good Reason.
 
(b)  EFFECT ON PLAN YEAR  Notwithstanding  anything in the Plan to the contrary,
     in the event of a Change in Control:
 
     (i)  the Plan Year will end as of the Change in Control;
 
     (ii) the  attained  level  of  performance  with  respect  to any  and  all
          performance  goals and  weighting and the  resulting  incentive  award
          earned  for the Plan Year  shall be deemed to be at  Maximum,  without
          reduction for a short Plan Year; and
 
     (iii) the incentive award for the Plan Year shall be paid promptly in cash.
 
(c)  CHANGE IN CONTROL  DEFINED  For  purposes of  Restricted  Stock and Options
     granted under this Plan prior to March 2, 2005, a "Change in Control" shall
     be deemed to have  occurred if the  conditions  in (i),  (ii), or (iii) are
     met:
 
     (i)  for any reason at any time less than seventy-five percent (75%) of the
          members  of the Board  shall be  individuals  who fall into any of the
          following categories:
 
          (A)  individuals who were members of such Board on September 1, 1995;
 
          (B)  individuals  whose  election,  or nomination  for election by the
               Company's  stockholders,  was  approved  by a  vote  of at  least
               seventy-five percent (75%) of the members of the Board then still
               in office who were members of such Board on September 1, 1995; or
 
<PAGE>
 
          (C)  individuals  whose  election,  or nomination  for election by the
               Company's  stockholders,  was  approved  by a  vote  of at  least
               seventy-five percent (75%) of the members of the Board then still
               in office who were elected in the manner  described in (A) or (B)
               above.
 
     (ii) any "person"  (as such term is used in Sections  13(d) and 14(d)(2) of
          the  Exchange   Act)  shall  have   become,   according  to  a  public
          announcement or filing,  without the prior approval of the Board,  the
          "beneficial owner" (as defined in Rule 13(d)-3 under the Exchange Act)
          directly or  indirectly,  of  securities  of the Company  representing
          twenty  percent  (20%) or more  (calculated  in  accordance  with Rule
          13(d)-3)  of  the  combined   voting  power  of  the  Company's   then
          outstanding  voting securities (such "person" hereafter referred to as
          a "Major Stockholder"). For purposes of the Plan, Kansas City Southern
          Industries,  Inc. shall not be deemed to be a Major Stockholder unless
          its  ownership  of  voting  securities  of the  Company,  directly  or
          indirectly,   falls  below  twenty  percent  (20%)  and   subsequently
          increases to represent  twenty  percent (20%) or more of the Company's
          then outstanding voting securities.
 
     (iii)the  stockholders  of  the  Company  shall  have  approved  a  merger,
          consolidation or dissolution of the Company or a sale, lease, exchange
          or disposition of all or substantially all of the Company's assets, or
          a Major Stockholder  shall have proposed any such transaction,  unless
          such merger,  consolidation,  dissolution,  sale,  lease,  exchange or
          disposition shall have been approved by at least seventy-five  percent
          (75%) of the members of the Board who are individuals falling into any
          combination of the following categories:
 
          (A)  individuals who were members of such Board on September 1, 1995;
 
          (B)  individuals  whose  election or  nomination  for  election by the
               Company's  stockholders  was  approved  by at least  seventy-five
               percent  (75%) of the  members  of the Board then still in office
               who are members of the Board on September 1, 1995; or
 
          (C)  individuals  whose  election,  or nomination  for election by the
               Company's  stockholders  was  approved  by a  vote  of  at  least
               seventy-five percent (75%) of the members of the Board then still
               in office who were elected in the manner  described in (A) or (B)
               above.
 
For purposes of Restricted Stock,  Options,  and Deferred Cash granted under the
Plan on or after March 2, 2005,  a "Change in  Control"  shall be deemed to have
occurred if a Change in Control shall be deemed to have occurred under Paragraph
10(c) of the DST Systems,  Inc. 1995 Stock Option and Performance  Award Plan as
amended and restated on or after March 2, 2005.
 
SECTION 9. PLAN ADMINISTRATION
 
<PAGE>
 
The Plan shall be administered by the Committee which is authorized to establish
such rules and procedures  necessary to carry out its tasks. The Committee shall
have sole discretion in  interpreting  and in exercising its authority under the
Plan.  Any  action of the  Committee  with  respect  to the Plan shall be final,
conclusive  and  binding on all persons  including  the  Company,  Subsidiaries,
Affiliates, Participants, and any person claiming any rights under the Plan from
or through any Participant.
 
Except for those  functions that must be performed by the Committee  pursuant to
Section 16 of the Securities  Exchange Act of 1934 and other applicable law, the
Committee may delegate to officers of the Company the authority, subject to such
terms as the Committee shall  determine,  to perform  administrative  functions.
Notwithstanding  anything herein to the contrary,  the Committee shall be solely
responsible for certifying, in writing, prior to payment of any incentive awards
that the performance goals and other material terms were satisfied.
 
SECTION 10. NO RIGHT TO CONTINUED EMPLOYMENT
 
Neither the establishment of the Plan, the participation by an individual in the
Plan nor the payment of any award  hereunder or any other action pursuant to the
Plan shall be held or  construed  to confer  upon any  Participant  the right to
continue in the employ of the Company, a Subsidiary,  or Affiliate or affect any
right  which the  Company  or its  Subsidiaries  have to  terminate  at will the
employment of any such Participant.
 
SECTION 11. NON-TRANSFERABILITY OF AWARDS
 
Except as otherwise  provided in this Plan, no amount  payable at any time under
the Plan  shall be  subject  to  alienation  by  anticipation,  sale,  transfer,
assignment,  bankruptcy,  pledge, attachment, charge, or encumbrance of any kind
nor in any manner be subject to the debts or liabilities of any person,  and any
attempt to so alienate or subject any such amount shall be void.
 
SECTION 12. AMENDMENT AND TERMINATION OF THE PLAN
 
The Committee  may amend or terminate  this Plan in whole or in part at any time
without the consent of or prior  notice to any  Participant  including,  but not
limited to modifying (a) the Targeted EPS, (b) the incentive  award  opportunity
levels  for  any or all  Participants,  (c) the  weighting  between  annual  and
cumulative Targeted EPS, (d) the percentages of cash, restricted stock (or other
equity  components  such as options) to be paid to a Participant as an incentive
award. No such amendment or termination  shall  adversely  affect the right of a
Participant  to receive any amount to which he has become  entitled by achieving
goals prior to such amendment or  termination.  In the event of a termination of
the Plan or an amendment which adversely  affects the computation of an award to
a Participant which occurs during a Plan Year, the Participant shall be entitled
to receive (i) a prorata  award to the  effective  date of such  termination  or
amendment,  calculated  under the terms and  conditions of the Plan  immediately
prior to such  effective  date and (ii) any award  provided by such amended Plan
for the balance of such Plan Year. Upon termination of this Plan, any Restricted
Common Stock held by the office of the corporate  secretary shall remain subject
to the restrictions,
 
<PAGE>
 
obligations,  rights and conditions  described in Sections 7 and 8 as though the
Plan had not terminated.
 
SECTION 13. INDEMNIFICATION
 
The Company shall  indemnify and hold harmless the Committee and each  Committee
member against any and all claims,  loss,  damage,  expense or liability arising
from any good faith action or failure to act with respect to this Plan.
 
SECTION 14. INCAPACITY
 
If the Committee  determines that any person entitled to payments under the Plan
is unable to care for his or her affairs because of illness or accident,  or has
died without naming a Beneficiary,  unless a prior claim has been made by a duly
appointed  legal  representative,  any  payment due to such person or his or her
estate may, if the Committee so directs, be paid to the person's spouse,  child,
a relative, an institution  maintaining or having custody of such person, or any
other  person  the  Committee  deems to be a proper  recipient  on behalf of the
person entitled to the payment.
 
SECTION 15. GOVERNING LAW
 
The provisions of the Plan shall be construed and  interpreted  according to the
laws of the State of Missouri  without  reference to its principles of conflicts
of law.
 
SECTION 16. SEVERABILITY
 
If any provision of the Plan is held invalid or  unenforceable,  such invalidity
or  unenforceability  shall not affect any other  provision of the Plan, and the
Plan shall be construed and enforced as if such provision had not been included.
 
SECTION 17. HEADINGS
 
The headings of sections of the Plan are for  convenience of reference.  In case
of any conflict, the text of the Plan, rather than such headings, shall control.
 
This Plan Amended and Restated as of March 2, 2005.
 
 
 
                                                /s/ M. Jeannine Strandjord
                                                -----------------------------
                                                M. Jeannine Strandjord
                                                Chair, DST Systems, Inc.
                                                Compensation Committee
 
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</DOCUMENT>