Document:

<PAGE>

                                                                     Exhibit 4.1

                                                                       Exhibit E

                      CORNERSTONE REALTY INCOME TRUST, INC.

                            ARTICLES OF AMENDMENT TO
               THE AMENDED AND RESTATED ARTICLES OF INCORPORATION

                                 Designating the

                      SERIES B CONVERTIBLE PREFERRED SHARES

              1. Name. The name of the Corporation is Cornerstone Realty Income
Trust, Inc.

              2. The Amendment. The amendment, a copy of which is attached
hereto, adds Article X to the Amended and Restated Articles of Incorporation
which creates a series of Preferred Shares (the Series B Convertible Preferred
Shares), states the designation and number of Shares in the series and fixes the
preferences, limitations and relative rights thereof.

              3. Board Action. At a meeting held on the __th day of ___________,
2003, the Board of Directors of the Corporation found the amendment to the
Amended and Restated Articles of Incorporation to be in the best interests of
the Corporation. Shareholder approval is not required.

Dated: _________, 2003

                                                 CORNERSTONE REALTY INCOME
                                                 TRUST, INC.

                                                 _____________________________
                                                 Glade M. Knight, Chairman

<PAGE>

                                    ARTICLE X

                      SERIES B CONVERTIBLE PREFERRED SHARES

10.1 Designation, Number and Rank.

     _______________________________ (___________) authorized but unissued
Preferred Shares (no par value) are hereby designated as a series of Preferred
Shares to be called the Series B Convertible Preferred Shares (the "Series B
Preferred Shares"). The Series B Preferred Shares shall, with respect to rights
upon voluntary or involuntary liquidation, dissolution or winding up of the
Corporation, rank (a) senior to all classes or series of Common Shares and to
all equity securities issued by the Corporation the terms of which provide that
such equity securities shall rank junior to such Series B Preferred Shares; (b)
on a parity with all equity securities issued by the Corporation the terms of
which provide that such equity securities shall rank on a parity with the Series
B Preferred Shares; and (c) junior to the Corporation's Series A Convertible
Preferred Shares and to all other equity securities issued by the Corporation.
The Corporation retains the power and authority to issue Preferred Shares that
rank senior to or on parity with the Series B Preferred Shares as to dividends
or as to rights in liquidation.

10.2 Dividends.

     The holders of outstanding Series B Preferred Shares shall not be entitled
to receive dividends.

10.3 Voting Rights.

     (a) The holders of the outstanding Series B Preferred Shares shall be
entitled (i) except to the extent otherwise provided by law, to vote together
with the Common Shares on any matter, with each Series B Preferred Share having
a number of votes equal to the number of Common Shares into which such Series B
Preferred Share would be convertible pursuant to Section 10.4, immediately after
the close of business on the record date fixed for the meeting called to
consider such matter, and (ii) to receive notice of, or to otherwise participate
in, any meeting of shareholders of the Corporation at which the holders of
Common Shares are entitled to vote.

     (b) The affirmative vote of the holders of a majority of the outstanding
Series B Preferred Shares, voting as a separate voting group, shall be required
(i) on any matter with respect to which the holders of the outstanding Series B
Preferred Shares are entitled to vote as a separate voting group, as provided
for under the Virginia State Corporation Act (or any successor thereto) or (ii)
for the adoption of any amendment, alteration or repeal of any provision of
these Articles of Amendment, or of any provision of the

                                        2

<PAGE>

Articles of Incorporation of the Corporation, whether by merger, consolidation
or otherwise, that adversely changes any preferences, limitations, privileges,
voting power or relative rights of the Series B Preferred Shares or the holders
thereof, it being understood that the authorization of, or the increase in the
authorized number of shares of, any class of shares ranking senior to or on a
parity with the Series B Preferred Shares as to dividends or rights in
liquidation and the designation of the preferences, limitations, privileges,
voting power and relative rights of any such class is not such an adverse
change.

     (c) Whenever the holders of Series B Preferred Shares are entitled to vote
as a separate voting group on any matter pursuant to the provisions of paragraph
(b) of this Section 10.3, the vote required to approve such matter shall be the
affirmative vote of a majority of all the votes entitled to be cast by the
respective voting group, with each share having one vote.

10.4 Conversion.

          (a) Each Series B Preferred Share shall convert automatically into one
Common Share (as the same may be adjusted from time to time pursuant to this
Section 10.4, the "Conversion Ratio") upon: (A) the earlier to occur of (i) the
first day of the calendar quarter which is after both of the following have
occurred (x) the 214 unit apartment complex in Chatham County, Georgia known as
"The Merritt at Whitemarsh -Phase I" (the "Project") receives permanent
unconditional certificates of occupancy on all buildings constructed pursuant to
the construction agreement related thereto dated January 11, 2001 (the
"Construction Agreement") and (y) 80% of the apartment units in the Project are
occupied by tenants pursuant to written leases; (ii) the first day of the
calendar quarter which is at least six months after the receipt of the permanent
unconditional certificate of occupancy for the last building constructed at the
Project; (iii) the sale of the Project; or (iv) the date on which the Company
owns, directly or indirectly, less than 100% of the ownership interest in the
corporation, partnership, limited liability company or other legal entity owning
the Project, or (B) at any time at the election by the Company by delivery of
written notice thereof to the transfer agent or registrar for the Series B
Preferred Shares.

     (b) Notice of conversion shall be given by the Corporation (i) by first
class mail, postage prepaid, not more than 30 days after the date upon which
conversion automatically occurs pursuant to Section 10.4 (the "Conversion Date")
to each holder of record of Series B Preferred Shares, notifying such holder of
the conversion of such shares and (ii) as soon as practicable by filing a
current report on Form 8-K with the Securities and Exchange Commission reporting
that such automatic conversion has occurred and the Conversion Date. Such notice
shall be mailed to such holder's address as the same appears on the
Corporation's stock records. The date such notice is mailed shall be the
"Conversion Notice Date." No failure to give such notice or any defect therein
or in the mailing thereof shall affect the validity of the conversion of any
Series B Preferred Shares. In addition to any information required by law, such
notice shall state: (i) the Conversion Date; (ii) the place or places where
certificates for such shares, if any, are to be surrendered; and (iii) that such
shareholder's rights as a holder of the Corporation's

                                        3

<PAGE>

Common Shares began on such Conversion Date. The Corporation shall issue and
deliver to such holder the number of Common Shares to which he is entitled,
along with a check for any cash in lieu of fractional shares to which such
holder is entitled pursuant to Section 10.4(c). The person in whose name the
Common Shares are to be issued shall be deemed to have become a shareholder of
record with respect to such Common Shares on the Conversion Date, unless the
transfer books of the Corporation are closed on that date, in which event he
shall be deemed to have become a shareholder of record on the next succeeding
date on which the transfer books are open.

     (c) Notwithstanding any other provision herein, the Corporation shall not
issue any fractional Common Shares upon conversion of the Series B Preferred
Shares. Instead, each holder of outstanding Series B Preferred Shares having a
fractional interest arising upon the conversion of such shares shall, at the
time of conversion, be paid an amount in cash equal to the Closing Price (as
hereinafter defined) multiplied by the fraction of Common Shares to which such
holder would otherwise be entitled. No such holder shall be entitled to
dividends or other distributions, voting rights or any other shareholder rights
in respect of any fractional share. For purposes of this Section 10.4(c),
"Closing Price" shall mean the average closing price of a Common Share (as
reported on the New York Stock Exchange ("NYSE") Composite Transaction reporting
system as published in The Wall Street Journal) for five Trading Days
immediately preceding the Conversion Date. "Trading Day" shall mean any day on
which Common Shares are traded on the NYSE.

     (d) The issuance of Common Shares on conversion of outstanding Series B
Preferred Shares shall be made by the Corporation without charge for expenses or
for any tax in respect of the issuance of such Common Shares, but the
Corporation shall not be required to pay any tax which may be payable in respect
of any transfer involved in the issuance and delivery of Common Shares in any
name other than that of the holder of record on the books of the Corporation of
the outstanding Series B Preferred Shares converted, and the Corporation shall
not be required to issue any Common Shares unless and until the person
requesting the issuance thereof shall have paid to the Corporation the amount of
such tax or shall have established to the satisfaction of the Corporation that
such tax has been paid.

     (e) If the Corporation shall (A) pay a dividend on its outstanding Common
Shares in Common Shares or subdivide or otherwise split its outstanding Common
Shares into a larger number of shares, (B) combine its outstanding Common Shares
into a smaller number of shares, or (C) reclassify its Common Shares, the
Conversion Ratio in effect at the time of the record date for the happening of
such event shall be adjusted so that the holder of any Series B Preferred Shares
converted after such record date shall be entitled to receive the same aggregate
number of Common Shares that such holder would have owned or have been entitled
to receive after the happening of such event had such Series B Preferred Shares
been converted immediately prior to such record date. An adjustment made
pursuant to this subparagraph (e) shall become effective immediately upon the
opening of business on the day next following the record date in the case of a
dividend and shall become effective immediately upon the opening of business on
the day next following the effective date in the case of a subdivision,
combination or reclassification.

                                        4

<PAGE>

     (f) If any Series B Preferred Shares are converted into Common Shares after
the record date for the happening of any of the events described in Section
10.4(e) but before the happening of such event, the Corporation may defer for a
reasonable period of time, until the happening of such event, issuing to the
holder of Series B Preferred Shares so converted the additional Common Shares to
which he is entitled by reason of the adjustment required pursuant to any such
subparagraph.

     (g) Whenever the Conversion Ratio is adjusted pursuant to this Section
10.4, the Corporation shall (i) promptly place on file at its principal office
and at the office of each transfer agent for the Series B Preferred Shares, if
any, a statement, signed by the Chairman or President of the Corporation and by
its Treasurer, setting forth the Conversion Ratio after such adjustment and
setting forth in detail the facts requiring such adjustment, and shall make such
statement available for inspection by shareholders of the Corporation, and (ii)
as soon as practicable cause a notice to be mailed first class mail, postage
prepaid to each holder of record of outstanding Series B Preferred Shares
stating that such adjustment has been made and setting forth the adjusted
Conversion Ratio and the date on which such adjustment becomes effective. Such
notice shall be mailed to such holder's address as the same appears on the
Corporation's stock records.

     (h) In the event of any reclassification or recapitalization of the
outstanding Common Shares (except a change in par value or from no par value to
par value or from par value to no par value, or subdivision or other split or
combination of shares), or in case of any consolidation or merger to which the
Corporation is a party, (except a merger in which the Corporation is the
surviving corporation and which does not result in any such reclassification or
recapitalization), or in case of any sale or conveyance to a person or another
business entity of all or substantially all of the property of the Corporation,
in each case as a result of which Common Shares generally shall be converted
into the right to receive stock, securities or other property (including cash or
any combination thereof), effective provision shall be made by the Corporation
or by the successor or purchasing business entity (i) that the holder of each
Series B Preferred Share then outstanding shall thereafter have the right to
convert such share into the kind and amount of stock and other securities and
property receivable, upon such reclassification, recapitalization,
consolidation, merger, sale or conveyance, by a holder of the number of Common
Shares of the Corporation into which such Series B Preferred Shares might have
been converted immediately prior thereto, and (ii) that there shall be
subsequent adjustments of the Conversion Ratio which shall be equivalent, as
nearly as practicable, to the adjustments provided for in this Section 10.4. The
provisions of this paragraph (h) of this Section 10.4 shall similarly apply to
successive reclassifications, recapitalizations, consolidations, mergers, sales
or conveyances.

     (i) Common Shares issued on conversion of Series B Preferred Shares shall
be issued as fully paid shares and shall be nonassessable by the Corporation.
The Corporation shall, at all times, reserve and keep available for the purpose
of effecting the conversion of the outstanding Series B Preferred Shares such
number of its duly authorized but unissued Common Shares as shall be sufficient
to effect the conversion of

                                        5

<PAGE>

all of the outstanding Series B Preferred Shares.

     (j) Series B Preferred Shares converted as provided herein shall become
authorized and unissued Preferred Shares that may be designated as shares of any
other series. No additional Preferred Shares, however, may be classified as
Series B Preferred Shares.

10.5 Liquidation.

     In the event of the voluntary or involuntary liquidation, dissolution or
winding up of the affairs of the Corporation, the holders of the outstanding
Series B Preferred Shares shall be entitled to be paid in cash out of the assets
of the Corporation a liquidation payment of $.01 before any distribution or
payment shall be made to the holders of Common Shares or any other shares of the
Corporation ranking junior to the Series B Preferred Shares as to rights in
liquidation. For the purposes of the preceding sentence, neither the
consolidation of the Corporation with nor the merger of the Corporation into any
other corporation, partnership, limited liability company, trust or other
entity, nor the sale, lease or other disposition of all or substantially all of
the Corporation's properties and assets shall, without further corporate action,
be deemed a liquidation, dissolution or winding up of the affairs of the
Corporation. If the assets of the Corporation legally available for distribution
to its shareholders are insufficient to pay to the holders of the Series B
Preferred Shares the full amounts to which they are respectively entitled, such
assets of the Corporation shall be distributed ratably to the holders of the
Series B Preferred Shares and the holders of other Preferred Shares, if any,
ranking on a parity with the Series B Preferred Shares as to rights in
liquidation in proportion to the full amounts to which they are respectively
entitled. After payment of the full liquidation preference of the Series B
Convertible Preferred Shares, and any other shares of the Corporation ranking
senior to the Common Shares, the remaining assets of the Corporation, if any,
shall be distributed ratably to the holders of Common Shares and the Series B
Convertible Preferred Shares, on an as-if-converted to Common Shares basis.
Written notice of such liquidation, dissolution or winding up of the
Corporation, stating the payment date or dates when, and the place or places
where, the amount distributable in such circumstances shall be payable, shall be
given by the Corporation by press release or announcement in a newspaper or
periodical with national distribution (such as the Wall Street Journal) not less
than 30 days nor more than 60 days before the payment date stated therein.

10.6 Share Rankings.

     For the purpose of these Articles of Amendment the shares of any class of
the Corporation of any class or series shall be deemed to rank as follows:

     (a) senior to the Series B Preferred Shares, either as to dividends or as
to rights in liquidation, if the holders of such shares shall be entitled to the
receipt of dividends or of amounts distributable upon the voluntary or
involuntary liquidation, dissolution or winding up of the affairs of the
Corporation, as the case may be, in preference or priority to the holders of
Series B Preferred Shares;

                                        6

<PAGE>

     (b) on a parity with the Series B Preferred Shares, either as to dividends
or as to rights in liquidation, whether or not the dividend rates, dividend
payment dates, or redemption or liquidation prices per share thereof be
different from those of the Series B Preferred Shares, if the holders of Series
B Preferred Shares shall be entitled to the receipt of dividends or of amounts
distributable upon the voluntary or involuntary liquidation, dissolution or
winding up of the affairs of the Corporation, as the case may be, in proportion
to their respective dividend rates or liquidation prices, without preference or
priority of one over the other as between the holders of such shares; and

     (c) junior to the Series B Preferred Shares, either as to dividends or as
to rights in liquidation, if such shares shall be Common Shares or if the
holders of the Series B Preferred Shares shall be entitled to the receipt of
dividends or of amounts distributable upon the voluntary or involuntary
liquidation, dissolution or winding up of the affairs of the Corporation, as the
case may be, in preference or priority to the holders of such shares.

                                        7<PAGE>

                                 CSX CORPORATION
               2002 CORPORATE DIRECTOR DEFERRED COMPENSATION PLAN
               --------------------------------------------------

                            EFFECTIVE JANUARY 1, 2003
                            -------------------------

                   The purpose of this Plan is to permit members of the Board of
Directors of CSX Corporation to elect deferred receipt of director's fees. This
Plan is intended to constitute a deferred compensation plan for corporate
director's fees. This Plan is not intended to replace or supercede any prior
Director's deferral plans.

              1.   Definitions

                   The following words or terms used herein shall have the
following meanings:

                    (a) "Account" or "Accounts" -- means the bookkeeping
                    account(s) maintained for each Participant to record the
                    amount of Director's Fees he has elected to defer, as
                    adjusted pursuant to Section 4.

                    (b)    "Administrator" -- means CSX Corporation

                           (i) Prior to a Change of Control, the Administrator
                           shall be responsible for the general administration
                           of the Plan, claims review, and for carrying out its
                           provisions. Administration of the Plan shall be
                           carried out consistent with the terms of the Plan.

                           (ii) Following a Change of Control, the Benefits
                           Trust Committee may remove and/or replace the
                           Administrator.

                           (iii) The Administrator shall have sole and absolute
                           discretion to interpret the Plan and determine
                           eligibility for and benefits hereunder. Decisions of
                           the Administrator regarding participation in and the
                           calculation of benefits under the Plan shall at all
                           times be binding and conclusive on Participants,
                           their beneficiaries, heirs and assigns.

                           (iv) Notwithstanding subsection (iii) above,
                           following a Change of Control, final benefit
                           determinations for Participants, their beneficiaries,
                           heirs and assigns and decisions regarding benefit
                           claims under the Plan shall rest with the Benefits
                           Trust Committee or its delegate in its sole judgment
                           and absolute discretion.

                  (c)      "Benefits Trust Committee" -- means the committee
                           established pursuant to the CSX Corporation and
                           Affiliated Companies Benefits Assurance Trust
                           document.

                  (d) "Board" -- means the Board of Directors of CSX.

                  (e) "Change -of Control" -- means any of the following:

                           (i) Stock Acquisition. The acquisition, by any
                           individual, entity or group within the meaning of
                           Section 13(d)(3) or 14(d)(2) of the Securities
                           Exchange Act of

<PAGE>

                           1934, as amended (the "Exchange Act")(a "Person")
                           of beneficial ownership (within the meaning of Rule
                           13d-3 promulgated under the Exchange Act) of 20% or
                           more of either (A) the then outstanding shares of
                           common stock of the Corporation (the "Outstanding
                           Corporation Common Stock"), or (B) the combined
                           voting power of the then outstanding voting
                           securities of the Corporation entitled to vote
                           generally in the election of directors (the
                           "Outstanding Corporation Voting Securities");
                           provided, however, that for purposes of this
                           subsection (i), the following acquisitions shall not
                           constitute a Change -of Control: (A) any acquisition
                           directly from the Corporation; (B) any acquisition by
                           the Corporation; (C) any acquisition by any employee
                           benefit plan (or related trust) sponsored or
                           maintained by the Corporation or any corporation
                           controlled by the Corporation; or (D) any acquisition
                           by any corporation pursuant to a transaction which
                           complies with clauses (A), (B) and (C) of subsection
                           (iii) of this Section 2(d); or

                           (ii) Board Composition. Individuals who, as of the
                           date hereof, constitute the Board of Directors (the
                           "Incumbent Board") cease for any reason to constitute
                           at least a majority of the Board of Directors;
                           provided, however, that any individual becoming a
                           director subsequent to the date hereof whose election
                           or nomination for election by the Corporation's
                           shareholders, was approved by a vote of at least a
                           majority of the directors then comprising the
                           Incumbent Board shall be considered as though such
                           individual were a member of the Incumbent Board, but
                           excluding, for this purpose, any such individual
                           whose initial assumption of office occurs as a result
                           of an actual or threatened election contest with
                           respect to the election or removal of directors or
                           other actual or threatened solicitation of proxies or
                           consents by or on behalf of a Person other than the
                           Board of Directors; or

                           (iii) Business Combination. Approval by the
                           shareholders of the Corporation of a reorganization,
                           merger, consolidation or sale or other disposition of
                           all or substantially all of the assets of the
                           Corporation or its principal subsidiary that is not
                           subject, as a matter of law or contract, to approval
                           by the Interstate Commerce Commission or any
                           successor agency or regulatory body having
                           jurisdiction over such transactions (the "Agency") (a
                           "Business Combination"), in each case, unless,
                           following such Business Combination:

                                    (A) all or substantially all of the
                              individuals and entities who were the beneficial
                              owners, respectively, of the Outstanding
                              Corporation Common Stock and Outstanding
                              Corporation Voting Securities immediately prior to
                              such Business Combination beneficially own,
                              directly or indirectly, more than 50% of,
                              respectively, the then outstanding shares of
                              common stock and the combined voting power of the
                              then outstanding voting securities entitled to
                              vote generally in the election of directors, as
                              the case may be, of the corporation resulting from
                              such Business Combination (including, without
                              limitation, a corporation which as a result of
                              such transaction owns the Corporation or its
                              principal subsidiary or all or substantially all
                              of the assets of the Corporation or its principal
                              subsidiary either directly or through one or more
                              subsidiaries) in substantially the same
                              proportions as their ownership, immediately prior
                              to such Business Combination of the Outstanding
                              Corporation Common Stock and Outstanding
                              Corporation Voting Securities, as the case may be;

                                     - 2 -

<PAGE>

                                    (B) no Person (excluding any corporation
                              resulting from such Business Combination or any
                              employee benefit plan (or related trust) of the
                              Corporation or such corporation resulting from
                              such Business Combination) beneficially owns,
                              directly or indirectly, 20% or more of,
                              respectively, the then outstanding shares of
                              common stock of the corporation resulting from
                              such Business Combination or the combined voting
                              power of the then outstanding voting securities of
                              such corporation except to the extent that such
                              ownership existed prior to the Business
                              Combination; and

                                    (C) at least a majority of the members of
                              the board of directors resulting from such
                              Business Combination were members of the Incumbent
                              Board at the time of the execution of the initial
                              agreement, or of the action of the Board of
                              Directors, providing for such Business
                              Combination; or

                           (iv) Regulated Business Combination. Approval by the
                           shareholders of the Corporation of a Business
                           Combination that is subject, as a matter of law or
                           contract, to approval by the Agency (a "Regulated
                           Business Combination") unless such Business
                           Combination complies with clauses (A), (B) and (C) of
                           subsection (iii) of this Section 2(d); or

                           (v) Liquidation or Dissolution. Approval by the
                           shareholders of the Corporation of a complete
                           liquidation or dissolution of the Corporation or its
                           principal subsidiary.

                    (f) "CSX" or "Corporation" -- means CSX Corporation

                    (g) "CSX's Accountants" -- means the independent
                    accountants, actuaries, benefits consulting firm or other
                    entity engaged by CSX to provide Participant's accounting
                    services for the Plan and, if selected or changed following
                    a Change -of Control, approved by the Benefits Trust
                    Committee.

                    (h) "Deferral Agreement" -- means an agreement between a
                    Participant and CSX under which the Participant agrees to
                    defer Director's Fees under the Plan. The Deferral Agreement
                    shall be on a form prescribed by the Administrator and shall
                    include any amendments, attachments or appendices.

                    (i) "Director's Fees" -- means any compensation, whether for
                    retainer, for Board meetings or for Committee meetings or
                    otherwise, payable either in cash or in stock, earned by a
                    Member for services rendered as a Member.

                    (j) "Distribution Event" -- means any of the events listed
                    in Section 1(e), "Change -of Control," with the following
                    modification: the words "Approval by the shareholders of the
                    Corporation of," in the first line of Sections 1(e)(iii) and
                    1(e)(iv) are replaced for purposes of this Section 1(j) with
                    the words, "Consummation of, i.e., actual change in
                    ownership of Outstanding Corporation Common Stock,
                    Outstanding Corporation Voting Securities, and/or assets of
                    the Corporation or its principal subsidiary by reason of,".

                                     - 3 -

<PAGE>

                    (k) "Effective Date" -- means January 1, 2003.

                    (l) "Enrollment Form" -- means the form prescribed by the
                    Administrator that a Member who has previously made
                    deferrals under a prior CSX deferral plan for Directors may
                    file pursuant to Section 4 in order to become a Participant
                    in the Plan.

                    (m) "Form of Payment Election" -- means the election by the
                    Participant of the form of distribution (lump sum or
                    installments) he will receive from his Account pursuant to
                    Section 6.

                    (n) "Member" -- means any person duly elected to the Board.

                    (o) "Partial Distribution Election" -- means a Distribution
                    Election for a portion of a Participant's Account under
                    Section 5.

                    (p) "Participant" -- means any Member who elects to
                    participate in the Plan.

                    (q) "Plan" -- means the CSX Corporation 2002 Corporate
                    Director Deferred Compensation Plan.

                    (r) "Secretary" -- means the Corporate Secretary of CSX.

                    (s) "Trust" -- means the trust created under the CSX and
                    Affiliated Companies Benefits Assurance Trust Agreement or a
                    grantor trust or trusts established by CSX which will
                    substantially conform to the terms of the Internal Revenue
                    Service model trust as described in Revenue Procedure 92-64,
                    1992-2 C.B. 422. Except as provided in Section 9, CSX is not
                    obligated to make any contribution to the Trust.

                    (t) "Term" -- means the annual term for which a Member is
                    elected to serve on the Board of Directors of CSX.

                    (u) "Valuation Date" -- means the last day of each calendar
                    quarter and such other dates as the Administrator deems
                    necessary or appropriate to value the Participants' benefits
                    under this Plan. However, following a Change -of Control,
                    the selection of a Valuation Date other than the last day of
                    each calendar quarter shall be subject to the approval of
                    the Benefits Trust Committee.

                     In any instance in which the male gender is used herein, it
shall also include persons of the female gender in appropriate circumstances.

              2.   Participation

                  A Member may elect to become a Participant for any Term by
filing an initial Deferral Agreement or an Enrollment Form with the Secretary
not later than (i) the Effective date or (ii) a date six months prior to the
Annual Meeting for the Term for which Director's Fees are to be earned,
whichever is

                                     - 4 -

<PAGE>

later. Such Deferral Agreement shall be effective for purposes of deferring
Director's Fees only as provided in Section 3. Such Enrollment Form shall be
effective for purposes of transferring balances previously deferred under a
prior Company deferral plan to the Participant's Accounts only as provided in
Section 4. Following a Change -of Control, all Deferral Elections are subject to
the approval of the Benefits Trust Committee.

              3.   Deferral of Director's Fees

                  (a) CSX shall, during any year in which a Participant has a
         Deferral Election on file with the Secretary, withhold and defer
         payment of all or any specified part of Participant's Director's Fees
         in accordance with his Deferral Election. A Participant may elect to
         change the amount of Director's Fees he elects to defer, modify a
         Deferral Agreement or revoke a Deferral Agreement by filing a new
         Deferral Agreement with the Secretary not later than (i) a date six
         months prior to the Annual Meeting for the Term for which Director's
         Fees are to be earned or (ii) November 1 of the calendar year
         immediately prior to the Annual Meeting for the Term for which
         Director's Fees are to be earned, whichever is later.

                  (b) Any person who becomes a Member and who was not a Member
         six months prior to the beginning of his Term as a Member may file a
         Deferral Election during the first thirty (30) days he is a Member.

              4.   Participant's Accounts

                   (a) A Participant may elect on a Deferral Agreement to have
         all or any portion of the eligible deferred Director's Fees credited to
         an interest-accruing account ("Interest Account") and/or to a CSX
         Phantom Stock Account ("Phantom Stock Account").

                   (b) A Participant who is eligible to receive a portion of his
         Director's Fees in CSX common stock pursuant to the CSX Corporation
         Stock Plan for Directors may file with the Secretary a Deferral
         Agreement with respect to such CSX common stock. A Participant's Stock
         Account ("Stock Account") will be created when he files his initial
         Deferral Agreement with respect to Director's Fees payable in CSX
         common stock.

                   (c) Interest shall accrue on the Interest Account from the
         first day of the month following the deferred Director's Fee would
         otherwise have been paid to the Participant until it is actually paid,
         such interest to be credited to the Participant's Account and
         compounded quarterly at the end of each calendar quarter. The rate of
         interest will be reviewed periodically, provided, however, following a
         Change -of Control, any change in the rate of interest is subject to
         the approval of the Benefits Trust Committee.

                   (d) Credits to the Phantom Stock Account and the Stock
         Account shall be in full and fractional units based on the average of
         the high and low price for CSX common stock as reported on the New York
         Stock Exchange - Composite Listing ("NYSE") on the date the Director's
         Fees would otherwise have been paid to the Participant.

                                     - 5 -

<PAGE>

                   (e) Dividends shall be credited in full and fractional units
         to the Phantom Stock Account based on the number of units in the
         Account on the record date and calculated based on the average of the
         high and low price for CSX common stock on the dividend payment date.

                   (f) Dividends shall be credited in full and fractional units
         to the Stock Account based on the number of units in the Account on the
         record date and calculated based on (i) the actual purchase price of
         CSX common stock acquired to the extent shares are actually purchased
         by the trustee of the Director's Stock Trust or a successor trust, or
         (ii) the number of units in the Account on the record date and
         calculated based on the average of the high and low price for CSX
         common stock on the dividend payment date.

                  (g) A Participant, while a Member, may elect at any time to
         transfer all or any portion of amounts deferred, including all earnings
         thereon, between an Interest Account and a Phantom Stock Account. No
         transfer may be made into or out of a Stock Account.

                  (h) A Member who has previously deferred shares of CSX common
         stock granted pursuant to the CSX Corporation Stock Plan for Directors
         ("Stock Plan") may elect to have a Stock Account created for him in the
         Plan on the Effective Date by filing an Enrollment Form with the
         Secretary on or before the Effective Date. Filing the Enrollment Form
         will cause the transfer of such previously deferred share balances to
         the Participant's Stock Account on the Effective Date, and the Member
         will enjoy all rights and privileges of a Participant including the
         ability to file initial Distribution Elections and Form of Payment
         Elections. A properly filed Enrollment Form will cause all prior
         elections made with respect to such previously deferred shares to be
         void immediately, unless otherwise stated in this Section 4.

                  (i) A Member who is a participant in the CSX Corporation
         Corporate Director Deferred Compensation Plan ("Director Plan") may
         elect to have an Interest Account or a Phantom Stock Account created
         for him in the Plan on the Effective Date by filing an Enrollment Form
         with the Secretary on or before the Effective Date. Filing the
         Enrollment Form will cause the transfer of balances previously deferred
         to the Participant's Accounts on the Effective Date, and the Member
         will enjoy all rights and privileges of a Participant including the
         ability to file initial Distribution Elections and Form of Payment
         Elections and to transfer shares between an Interest Account and a
         Phantom Stock Account. A properly filed Enrollment Form will cause all
         prior elections made under the Director Plan to be void immediately,
         unless otherwise stated in this Section 4.

                  (j) With respect to transfers to a Participant's Accounts of
         amounts previously deferred pursuant to Sections 4(i) and 4(j):

                           (i) No initial Distribution Election made with
                           respect to such previously deferred amounts which
                           designates distribution upon attainment of a
                           designated age under Section 5 that will be attained
                           within 12 months following the Effective Date shall
                           be filed.

                           (ii) No initial Distribution Election made with
                           respect to such previously deferred amounts which
                           designates distribution upon the Participant's
                           retirement from the Board under Section 5 shall be
                           effective if distribution would occur within 12
                           months following the Effective Date.

                                     - 6 -

<PAGE>

                           (iii) Any prior election made with respect to such
                           previously deferred amounts which designates
                           distribution upon the Participant's retirement from
                           the Board shall remain in effect for 12 months
                           following the Effective Date, and shall be void
                           thereafter.

                   (k) The value of a Participant's Interest Account shall be
         the sum of amounts deferred and all interest accrued thereon. The value
         of a Phantom Stock Account or Stock Account shall be the value of the
         units in a Participant's Account based on the average of the high and
         low price for CSX common stock as reported on the NYSE on the last
         business day prior to the date of any lump sum or installment
         distribution. The value of a Phantom Stock Account or Stock Account
         will fluctuate in value in line with the fluctuation in the price of
         CSX common stock. There can be no assurance on the market value of CSX
         common stock either at the time of crediting to a Participant's Account
         or at any time during the distribution period, nor can there be any
         assurance as to the continuation of dividends.

              5.   Distribution of Deferred Director's Fees

                  (a) Amounts deferred under the Plan and credited to an Account
         shall be distributed to a Participant from such Account in a lump sum
         one year following the date in which a Participant ceases to be a
         Member, unless he shall file a Distribution Election as provided in
         this Section 5 or a Form of Payment Election as provided in Section 6.

                  (b) A Participant may file with the Secretary a Distribution
         Election for the distribution from an Account upon:

                           (i) attainment of a designated age, however, he shall
                           not elect an age that he will attain less than one
                           year subsequent to his Distribution Election; or

                           (ii) retirement from the Board.

                  (c) A Participant may file a Distribution Election or change a
         Distribution Election at any time prior to:

                           (i) a date that is 30 days subsequent to the date of
                           his retirement from the Board in the case of his
                           initial Distribution Election; or

                           (ii) one year prior to the date distribution is to
                           commence under his Distribution Election then in
                           effect,

         after which time no Distribution Election shall be filed.

                  (e) A Participant may make a Partial Distribution Election
         with respect to any portion of a Participant's Account, provided no
         Distribution Election shall be made for a portion of an Account less
         than $2,000, as determined as of the date the election is made. No
         Participant shall have more than two Distribution Elections in effect
         for an Account at any time.

                  (f) Except in the event of retirement from the board,
         distribution made pursuant to a Distribution Election shall not
         commence prior to a date that is three years subsequent to the date the
         Participant first makes a Deferral under either this Plan or a
         predecessor plan which provides for the

                                     - 7 -

<PAGE>

deferral of Director's Fees

                  (g) Any Distribution Election made in proper form by a
         Participant shall be effective and distribution shall commence pursuant
         to such Distribution Election. Any Distribution Election not made in
         proper form shall be void. Distributions from a Participant's Stock
         Account shall be made only in shares of CSX common stock.

                  (h) A Participant may request and receive a withdrawal from
         his Account at any time without filing a Distribution Election under
         this Section 5. Any such withdrawal shall result in the forfeiture of
         an amount equal to the portion of the Participant's Account that is
         withdrawn, multiplied by the Mid-term Applicable Federal Rate
         determined as of the Valuation Date upon which the withdrawal is
         effective. Notwithstanding the preceding, following a Change of
         Control, any decisions or determinations by the Administrator under
         this Section 5 shall be subject to the approval of the Benefits Trust
         Committee.

                  (i) A Participant may make one additional election to defer
         (but not accelerate) commencement of payment under the Plan at any time
         six months before payments are to have commenced ("Re-deferral
         Election). Such Re-deferral Election shall be made in a form prescribed
         by the Administrator. If such Re-deferral Election is to a designated
         age the re-deferral shall be for a period not less than one year from
         the date the Re-deferral Election is made.

              6.   Form of Payment

                   The Form of Payment Elections provided in this Section 6
shall be made in writing and may be changed at any time prior to a date that is
six months prior to the date distribution is to commence, after which time the
Form of Payment Election shall be irrevocable. If installment payments are
elected for an Account, payments shall be made, as the Participant may elect,
for either (a) five years, (b) ten years, or (c) fifteen years. Installments
shall be on an annual or quarterly basis as the Participant may elect. The
amount of each installment shall be determined by multiplying the value of the
Participant's account at the end of the calendar quarter immediately preceding
the installment date by a fraction, the numerator of which shall be one (1) and
the denominator of which shall be the number of installment payments over which
payment of such amount is to be made, less the number of installment payments
theretofore made. In the case of installments from a Stock Account, fractional
share amounts shall be rounded up to the next highest whole share amount, except
in the case of the final installment, in which case a cash payment will be made
for any fractional shares.

              7.   Death of a Participant

                   (a) In the event a Participant shall die while he is a
         Member, the balance of his Accounts shall be paid in either a lump sum
         or installments (consistent with the Form of Payment Elections made by
         the Participant as described in Section 6) to his Designated
         Beneficiary. Each Participant may file with the Secretary a Designation
         of Beneficiary for this purpose.

                                     - 8 -

<PAGE>

                   (b) In the event a Participant shall die after he ceases to
         be a Member and before he has received complete distribution from his
         Account, the balance credited to his Account, (including applicable
         interest) shall be paid to his Designated Beneficiary consistent with
         the Form of Payment Elections made by the Participant as described in
         Section 6.

                   (c) In the event a Participant shall not file a Designation
         of Beneficiary, or his Designated Beneficiary is not living at the
         Participant's death, the balance credited to his Accounts, (including
         applicable interest) shall be paid in full to his estate not later than
         the tenth day of the calendar year following his date of death.

              8.   Obligation of CSX

                   This Plan shall be unfunded and credits to the Accounts of
each Participant shall not be set apart for him nor otherwise made available so
that he may draw upon it at any time, except as provided in this Plan. Neither
any Participant nor his Designated Beneficiary shall have any right, title, or
interest in such credits or any claim against them. Payments may only be made at
such times and in the manner expressly provided in this Plan. CSX's contractual
obligation is to make the payments when due. No notes or security for the
payment of any Participant's account shall be issued by CSX.

              9.   Change of Control

                   (a) If a Change of Control has occurred, the Administrator
         shall cause CSX to contribute to the Trust, within 7 days of such
         Change of Control, a lump sum payment equal to the unfunded aggregate
         value of the amount each Participant would be eligible to receive under
         9(b) below (but calculated with respect to the Valuation Date described
         in this sentence, rather than the date of the applicable Distribution
         Event) as of the latest Valuation Date coinciding with or preceding the
         date of Change of Control to the extent such amounts are not already in
         the Trust. The aggregate value of the amount of the lump sum to be
         contributed to the Trust pursuant to this Section 9 shall be determined
         by CSX's Accountants after consultation with the entity then
         maintaining the Plan's records. Thereafter, CSX's Accountants shall
         annually determine as of a Valuation Date for each Participant not
         receiving a lump sum payment pursuant to Section 9(b), below, the
         amounts which would be payable under such subsection were a
         Distribution Event to occur at the date of such determination. To the
         extent that the value of the assets held in the Trust relating to this
         Plan do not equal the aggregate amount described in the preceding
         sentence, at the time of the valuation, as determined by CSX's
         Accountants, CSX shall make a lump sum contribution to the Trust equal
         to the difference. In no event, however, shall the Company's
         contribution to the Trust be less than the amount that would have been
         contributed thereto with respect to liabilities relating to the Plan
         (including related administrative and investment expenses), pursuant to
         and at the time and in the manner provided under Section 1(h) of the
         Trust.

                   (b) In the event a Distribution Event has occurred, the
         trustee of the Trust shall, within 45days of such Distribution Event,
         pay to each Participant not making an election under 9(c) below, a lump
         sum payment equal to the amount the Participant would have been
         entitled to receive determined under Section 6 had he ceased to be a
         Member and selected an immediate lump sum payment. The amount of each
         Participant's lump sum payment shall be determined by CSX's
         Accountants.

                                     - 9 -

<PAGE>

                   (c) New Participants in the Plan may elect in a time and
         manner determined by the Administrator, but in no event later than 90
         days after becoming a Participant, to have amounts and benefits
         determined and payable under the terms of the Plan as if a Distribution
         Event had not occurred. A Participant who has made an election, as set
         forth in the two preceding sentences, may, at any time and from time to
         time, change that election; provided, however, a change of election
         that is made within one year of a Distribution Event shall be invalid.

                   (d) Notwithstanding anything in the Plan to the contrary,
         each Participant who has made an election under Section 9(c), above,
         may elect within 90 days following a Distribution Event, in a time and
         manner determined by the Administrator, to receive a lump sum payment
         calculated under the provisions of 9(c), above, determined as of the
         Valuation Date next preceding such payment, except that such calculated
         amount shall be reduced by 5% and such reduction shall be irrevocably
         forfeited to CSX by the Participant. Furthermore, as a result of such
         election, the Participant shall no longer be eligible to participate or
         otherwise benefit from the Plan. Payments under this Section 9(d)shall
         be made not later than 7 days following receipt by CSX of the
         Participant's election. The Administrator shall, no later than 7 days
         after a Distribution Event has occurred, give written notification to
         each Participant eligible to make an election under this Section 9(d),
         that a Distribution Event has occurred and informing such Participant
         of the availability of the election.

              10.  Claims Against Participant's Account

                   No credits to the account of any Participant under this Plan
shall be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, or charge, and any attempt to do so shall be
void. Nor shall any credit be subject to attachment or legal process for debts
or other obligations. Nothing contained in this Plan shall give any Participant
any interest, lien, or claim against any specific asset of CSX. No Participant
or his Designated Beneficiary shall have any rights other than as a general
creditor of CSX.

              11.  Competition by Participant

                   In the event a Participant ceases to be a Member and becomes
a proprietor, officer, partner, employee, director, or otherwise becomes
affiliated with any business that is in competition with the Corporation, the
entire balance credited to his account, including interest, or the value of the
units in his Phantom Stock Account or Stock Account, if prior to a Change of
Control, may, if directed by the Board in its sole discretion, be paid
immediately to him in a lump sum. Following a Change of Control, such a decision
by the Board is subject to the approval of the Benefits Trust Committee.

              12.  Payment of Credit Balance to Participant's Account

                   Notwithstanding anything herein to the contrary, prior to a
Change of Control, the Board may, in its sole discretion, direct payment in a
lump sum, of any or all of the credit balance appearing at the time in the
account of a Participant, and/or of the value of the units in his Phantom Stock
Account or Stock

                                     - 10 -

<PAGE>

Account. Following a Change of Control, such action by the Board is subject to
the approval of the Benefits Trust Committee.

                   Further, the obligations of CSX and the benefit due any
Participant or Designated Beneficiary under the Plan shall be reduced by any
amount received in regard thereto under the Trust or any similar trust or other
vehicle.

              13.  Joint and Several Obligation

                   To the extent reflected by resolutions of the applicable
boards of directors, obligations for benefits under this Plan shall be joint and
several.

              14.  Amendment or Termination

                   Prior to a Change of Control, this Plan may be altered,
amended, suspended, or terminated at any time by the Board, on the
recommendation of the Compensation Committee of the Board, provided, however,
that no alteration, amendment, suspension, or termination shall be made to this
Plan which would result in the distribution of amounts credited to the accounts
of all Participants in any manner other than is provided in this Plan without
the consent of all Participants.

              15.Impact of Future Legislation or Regulation

                  (a) This Section 15 shall become operative upon the enactment
         of any change in applicable statutory law or the promulgation by the
         Internal Revenue Service of a final regulation or other pronouncement
         having the force of law, which statutory law, as changed, or final
         regulation or pronouncement, as promulgated, would cause any
         Participant to include in his federal gross income amounts accrued by
         the Participant under the Plan on a date (an "Early Taxation Event")
         prior to the date on which such amounts are made available to him or
         her hereunder.

                  (b) Notwithstanding any other Section of this Plan to the
         contrary (but subject to subsection (c), below), as of an Early
         Taxation Event, the feature or features of this Plan, or the election
         by a Participant that would cause the Early Taxation Event shall be
         null and void, to the extent, and only to the extent, required to
         prevent the Participant from being required to include in his federal
         gross income amounts accrued by the Participant under the Plan prior to
         the date on which such amounts are made available to him hereunder. By
         way of example, but not by way of limiting the generality of the
         foregoing, if a statute is enacted that would require a Participant to
         include in his or her federal gross income amounts accrued by the
         Participant under the Plan prior to the date on which such amounts are
         made available to him or her because of the Participant's right to
         receive a distribution of a portion of his Account under Section 6(h),
         the right of all Participants to receive distributions under Section
         6(h) shall be null and void as of the effective date of that statute.
         If only a portion of a Participant's Account is impacted by the change
         in the law, then only such portion shall be subject to this Section,
         with the remainder of the Account not so affected being subject to such
         rights and features as if the law were not changed. If the law only
         impacts Participants who have a certain status with respect to the

                                     - 11 -

<PAGE>

         Company, then only such Participants shall be subject to this Section.

                  (c) Notwithstanding Section 15(b) above, if an Early Taxation
         Event occurs (e.g., if a change in law is retroactive), , the amounts
         that become taxable on the Early Taxation Event shall be distributed to
         each Participant as soon as practicable following such Early Taxation
         Event or if later, the date of enactment or promulgation.

                                     - 12 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}]]