Restricted Stock Award Agreement



 






Exhibit 10.41




RESTRICTED STOCK AWARD AGREEMENT




     THIS AGREEMENT is made and entered into as of December 22, 2005, by and between CSX
CORPORATION (“CSX”), a Virginia corporation, and Ellen M. Fitzsimmons (the “Recipient”).



     WHEREAS, CSX wishes to create a further incentive for Recipient to remain as an employee of
CSX.



     NOW, THEREFORE, in consideration of their mutual promises and undertakings, CSX and Recipient
mutually agree as follows:



1.   In consideration for Recipient’s agreement to remain an active employee of CSX or an Affiliate,
continuously and without interruption from the period December 22, 2005 through December 21, 2008
(the “Employment Period”), the Recipient shall, as of December 22, 2005, receive a grant of 20,620
shares of restricted CSX Corporation common stock, $1 par value (the “Restricted Stock”) under
CSX’s Omnibus Incentive Plan (the “Plan”), the provisions of which are hereby incorporated by
reference. (In the event of any conflict between this Agreement and the Plan, this Agreement shall
control.) During the Employment Period, CSX will pay to Recipient an amount equal to dividends
declared and payable on the Restricted Stock from December 22, 2005, through the Employment Period,
net of applicable withholding taxes. Except as otherwise provided herein, the Restricted Stock
shall vest and the restrictions will be lifted as follows:



	 	 	 	 	 
	Vesting	 	Shares	 
	Date	 	Vested	 
	December 22, 2005
	 	 	5,155	 
	December 22, 2006
	 	 	5,155	 
	December 22, 2007
	 	 	5,155	 
	December 22, 2008
	 	 	5,155	 






2.   (a) Except as set forth in subsection 2, if Recipient’s employment by CSX or an Affiliate
terminates before the “Vesting Date,” this Agreement shall become null and void and CSX shall have
no obligation as to vesting of any of the Restricted Stock and payment of any further monies
pursuant to Paragraph 1 of this Agreement.



     (b) In the event of a termination of Recipient’s employment before the end of the Employment
Period by reason of Recipient’s death or Disability, by CSX without Cause or by Recipient for Good
Reason, the Date of Termination shall be the Vesting Date with respect to a number of shares of
Restricted Stock determined by the following formula:




(number of completed months from the Grant Date through the Date of

Termination / 48) x
20,620)



     For purposes of this Agreement, “Disability” shall mean the Recipient’s becoming disabled
within the meaning of the long-term disability plan of the Company covering the Recipient. “Cause”
means (i) the willful and continued failure of the Recipient substantially to perform the
Recipient’s duties under this Agreement (other



 









 







than as a result of physical or mental illness or injury), after the Board of Directors of the
Company (the “Board”) or the Chief Executive Officer or other senior executive of the Company delivers to the Recipient a written
demand for substantial performance that specifically identifies the
manner in which the Board, the Chief
Executive Officer or such other executive believes that the Recipient has not substantially
performed the Recipient’s duties, or (ii) illegal conduct or gross misconduct by the Recipient.
“Good Reason” means termination by the Recipient within 60 days after, and as a result of:




	 	i.	 	Any action by the Company that results in a material
diminution in the Recipient’s position, authority, duties or responsibilities;
provided, however, that minor changes in Recipient’s job title or
responsibilities will not constitute grounds for a Good Reason termination
under this Section 4(c)(i)(A).
	 
	 	ii.	 	any requirement by the Company that the Recipient’s services
be rendered primarily at a location or locations other than Jacksonville,
Florida, unless such requested relocation is made under the terms of the CSX
executive relocation policy.





     The remainder of the Restricted Stock shall be forfeited as of the Date of Termination and CSX
shall have no obligation as to vesting of such forfeited Restricted Stock, nor any obligation to
pay further monies pursuant to Paragraph 1 of this Agreement with respect to any of the Restricted
Stock.



     (c) Recipient shall be solely responsible for any and all federal, state, and local taxes
which may be imposed on her as a result of her receipt of the Restricted Stock, the vesting thereof
and her receipt of dividends pursuant to Section 1.



3.   In the event of any change (such as recapitalization, merger, consolidation, stock dividend, or
otherwise) in the character or amount of CSX Corporation common stock, $1 par value, prior to
vesting of the Restricted Stock pursuant to Paragraph 1 of this Agreement, (a) the number of shares
of Restricted Stock to which Recipient shall be entitled shall be the same as if she had actually
owned the Restricted Stock without restriction at the time of such change, and (b) the amount of
the cash to be paid to Recipient shall be the amount of dividends paid on the Restricted Stock
following such change in the number of shares of Restricted Stock.



4.   Upon the occurrence of the date of a Vesting Event as defined in the Plan, the Vesting Date will
be deemed to have occurred.



5.   Nothing in this Agreement shall be interpreted or construed to create a contract of employment
between the Company and the Recipient. This Agreement is intended sole to provide Recipient an
incentive to continue her existing employment.



 









 








     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of December 22, 2005.



	 	 	 
	RECIPIENT:

	 	CSX CORPORATION
	 
	 	 
	/s/ Ellen M. Fitzsimmons

	 	/s/ Michael Ward
	 

	 	 
	Ellen M. Fitzsimmons

	 	Title: Chairman, President & CEO