Document:

EX-10.1

 Exhibit 10.1 

CSX Long-Term Incentive Plan: 2018-2020 Cycle  

(President and CEO and Executive Vice Presidents) 

Purpose and Objective 
 The CSX Long-Term Incentive
Plan (“LTIP” or the “Plan”) is the vehicle under which CSX Corporation (“CSX” or “Company”) issues Performance Grants, as described in the CSX Stock and Incentive Award Plan, referred to herein as Performance
Units. The Performance Units are issued pursuant to, and are subject to the terms and conditions of, the CSX Stock and Incentive Award Plan. Under the LTIP, a Performance Unit represents the right to receive a share of CSX common stock. The purpose
of the LTIP is to reward eligible employees for their contribution toward the Company’s improved operating and financial performance, ultimately creating shareholder value and driving long-term success for CSX. As described below in the Plan
Design section, grants of Performance Units are approved by the Compensation Committee of CSX’s Board of Directors (the “Committee”). 
 The
Company seeks to motivate and reward employees through the issuance of Performance Units. Performance Units are settled upon certification of the Company’s achievement of predetermined levels of: (i) Operating Ratio; and (ii) Free
Cash Flow during the Performance Period (as defined below). The payments are referred to as Performance Awards at the time of payment, and are payable in the form of CSX common stock, if predetermined measures are achieved. 

Effective Date and Performance Period 
 The
2018-2020 LTIP Cycle (the “2018-2020 Cycle” or “Cycle”) commences February 6, 2018 (“the Effective Date”) and ends December 31, 2020. The Performance Period, the time during which Company performance is
measured, begins January 1, 2018 and ends December 31, 2020. 
 Eligibility and Participation 

Active employees of CSX or participating subsidiaries (the “Company” or collectively, the “Companies”) in Career Level Director and above
(“Participants”) as of the Effective Date are eligible to participate in the Plan for the 2018-2020 LTIP Cycle and receive a number of Performance Units determined by reference to a long-term incentive compensation value approved annually
by the Committee. Employees hired, promoted and demoted into, within and out of an LTIP eligible position after the Effective Date but within the first calendar year of the Plan cycle will receive a pro-rata
award or forfeiture of Performance Units. 

  

  

  

 Plan Design 

Under CSX’s long-term incentive compensation program design, the Committee approves annually a market-competitive value of long-term incentive
compensation for Participants primarily based upon Career Level. For 2018, the long-term incentive compensation value is allocated as a percent of total LTI target opportunity by Career Level as follows: 

 

													
	 Equity Mix of 2018-2020 Grant Awards
	  	President and CEO
and Executive
Vice President	 	 	Senior Vice President /
Vice President	 	 	Head of Department /
Sr. Director /
Director	 
	 Performance Units
	  	 	60	% 	 	 	50	% 	 	 	40	% 
	 Restricted Stock Units
	  	 	N/A	 	 	 	15	% 	 	 	25	% 
	 Stock Options
	  	 	40	% 	 	 	35	% 	 	 	35	% 

 Restricted Stock Units and Stock Options are provided in separate grants. 

The number of Performance Units a Participant receives is calculated by dividing the applicable percentage value of the long-term incentive compensation shown
above by the average closing price of CSX common stock during the most recent three full months preceding the Effective Date. For the 2018-2020 Cycle, the average stock price equaled $54.73, representing the months of November 2017, December 2017
and January 2018. This price is used solely to determine the number of Performance Units granted to each Participant at the commencement of the Cycle. 

Performance Measures 
 The Plan uses as the performance
measures a combination of (i) Operating Ratio (“OR”) and (ii) Free Cash Flow (“FCF”) as defined herein and excluding non-recurring items as disclosed in the Company’s
financial statements, as approved by the Committee. OR and FCF have been selected as performance measures for this cycle because of their high correlation to shareholder returns and alignment with CSX’s financial business plan. Efforts to
improve these measures align CSX’s business objectives in a way that allows individuals to focus on desired performance outcomes. Each Participant should be motivated to grow revenue, control costs, improve customer service, increase
productivity, improve safety and optimize asset utilization. 
 The measures are applied independently and weighted equally. Thus, if both target OR
and target FCF are achieved, each measure would pay at 50% for a total payout of 100% of the grant value. If the maximum OR and maximum FCF are achieved, then each measure would generate a 100% payout for a total payout at 200%.

  

	1.	Operating Ratio: OR is defined as CSX Corporation operating expenses divided by operating revenue. Performance achievement for the Cycle is an end-point plan based
on operating expenses and operating revenue for the final full year 2020 OR. Improvement each year during the full Performance Period is critical to drive the final year results. 

As the price of fuel has a significant impact on OR, fuel-adjusted OR targets will apply to this performance measure if the average highway
diesel fuel (“HDF”) price per gallon for the Performance Period falls outside of a predetermined range (“fuel collar”). The OR Charts in Exhibit A reflect the OR targets and related payout percentages at various HDF prices. 

  

  
 2 

  

 Free Cash Flow: Free cash flow measures cash generated by the business after reinvestment. Free Cash
Flow is calculated as net cash provided by operating activities minus property additions and adjusted for certain other investing activities. Free cash flow is a measure of cash available for paying dividends, share repurchases and principal
reduction on outstanding debt. Free Cash Flow performance achievement for the Cycle is based on cumulative results for 2018 through 2020. 
  

									
		 	Free Cash Flow	  	=	 	
          Operating Cash Flow – Capital Expenditures

+ Other Investing Activities
	 	

 The chart in Exhibit A reflects the FCF targets and related payout percentages. 

Relative Total Shareholder Return Modifier 
 The
President and CEO and Executive Vice Presidents may have an increase or decrease in award payouts by a maximum of 25%, with the maximum payout capped at 200% based on the Company’s relative Total Shareholder Return in accordance with Exhibit C.

 Performance Awards 
 As shown in the
Performance Measure and Payout Percentage Table in Exhibit B, Performance Awards are paid as a percentage of a Participant’s Performance Units based upon the applicable measures discussed above. All Performance Awards will be paid in CSX common
stock. 
 No Performance Award is earned under the Plan until the Compensation Committee approves the payout percentage based upon the level of achievement
of the performance measures for the Performance Period. 
 Impact of Change in Employment Status 

Performance Awards generally will be paid only to Participants who are actively employed by the Companies at the end of the applicable three-year performance
cycle. Except as provided below, all other Participants whose employment terminates prior to the end of the Cycle shall forfeit any and all Performance Units and receive no Performance Award. All earned Performance Awards will be paid no later than
March 15 following the end of the Performance Period. 
 A Participant whose employment terminates due to death, disability, retirement, reduction in
force or voluntary return to contract employment shall be eligible to retain a pro-rata Performance Award under the LTIP based on the Performance Award the Participant would have received had there been no
death, disability, retirement, reduction in force or voluntary return to contract employment. The pro-rata Performance Award will be determined based upon the number of months of participation relative to the
number of months in the Performance Period. Retirement shall mean: (i) the attainment of age 55 and 10 years of Company service; or (ii) the attainment of age 65. Disability shall mean long-term disability as defined in the long-term
disability plan of the Company covering the Participant. The foregoing notwithstanding, Management shall have the discretion to terminate Performance Awards for Participants who retire but subsequently violate a
non-compete agreement. In the case of death, such Performance Awards shall be paid to the Participant’s estate, or as otherwise required by law. 

  

  
 3 

  

 A participant who returns to contract employment due to a reduction in force within the first
calendar year of the Plan Cycle, shall retain a pro-rata Performance Award based upon the number of months in an LTIP eligible position. A participant who returns to contract employment due to a reduction in
force following the first calendar year of the Plan Cycle, shall retain all outstanding Performance Award units. 
 Participants who are
part-time employees (less than 40 hours per week) on the Effective Date of the 2018-2020 LTIP Cycle shall be entitled to a pro-rata Performance Award based on the reduced hours. 

Taxation of Performance Awards 
 Performance Awards will
be paid in shares of CSX common stock. The value received by the Participant is taxable income; therefore, CSX is required to withhold income taxes at the prescribed rates for both supplemental income and employment taxes in accordance with
applicable tax laws. CSX will withhold the minimum number of shares (in whole shares) equal in value to such required amount. Participants in the CSX Executives’ Deferred Compensation Plan may defer receipt of Performance Awards in accordance
with the terms of that plan. 
 Clawback Provision 

In the event of Company accounting irregularities discovered within three years after receipt of payment in connection with a Performance Award, which requires
the Company to restate its financial statements due to material noncompliance with any financial reporting requirements under applicable securities laws, the Participant shall repay all amounts in excess of the Performance Award the Participant
should have received as determined under the restated financial statements. The Clawback Provision related to financial restatements applies only to Participants who are Section 16b officers at the time of grant or restatement. 

A Participant who commits an act involving moral turpitude that adversely affects the reputation or business of the Companies shall forfeit all Performance
Units. Examples of acts of moral turpitude include, but are not limited to, dishonesty or fraud involving CSX or any affiliated company, their employees, vendors, or customers or a violation of the CSX Code of Ethics. 

In cases where all or part of the Performance Award is deferred under the CSX Executives’ Deferred Compensation Plan, this Clawback Provision shall apply
and result in an immediate forfeiture of the portion deferred, including any earnings thereon from the date of deferral, in the amount needed to equal the applicable clawback amount. 

Consideration for Non-Compete Agreement 

In consideration for eligibility under this 2018-2020 LTIP Cycle, Participants in Career Levels of Vice President and above must enter into a non-compete agreement, if not already in effect, as prescribed and agreed to by CSX. Eligibility and receiving a grant award for the 2018-2020 LTIP Cycle for Vice Presidents and above is conditioned upon the
existence of such non-compete agreement. 
 Plan Administration 

The Chief HR Officer shall be the Plan Administrator and shall interpret and construe the provisions of the Plan subject to the terms of the CSX Stock and
Incentive Award Plan and the Compensation Committee’s authority and responsibility thereunder. 

  

  
 4 

  

 Plan Amendments and Termination 

The CSX Compensation Committee reserves the right to terminate, adjust, amend or suspend the Plan at any time at its sole discretion. 

Miscellaneous 
 By accepting a Performance Award,
the Participant authorizes the Company to withhold, to the extent permitted by law, any amount the Participant may otherwise owe to the Company in any other capacity whatsoever. 

The adoption of the 2018-2020 Cycle of the LTIP does not imply any commitment to continue the Plan, participation in the Plan or any other long-term incentive
compensation plan or program for any succeeding year or period. Neither the Plan, nor any Performance Unit or Performance Award made under the Plan shall create any employment contract or relationship between the Companies and any Participant. 

  

  
 5EX-10.2

 Exhibit 10.2 
  

 
 CSX CORPORATION 

Notice of Non-Qualified Stock Option Grant 
  

			
	 Name of Participant:
	  	 [Name]

	Employee ID:	  	[ID #]
	Number of Options Granted:	  	[# Options Granted]
	Grant Date:	  	[Grant Date]
	Option Exercise Price:	  	$[Exercise Price]
	Vesting Date:	  	[Vesting Date]
	Expiration Date:	  	[Expiration Date]
	Grant Number	  	[Grant #]

 CSX Corporation (“CSX”) has made a grant to you of non-qualified stock options (“Options”), which provides
you with the right to purchase CSX common stock at a pre-established price during a future time period. Your grant has been made pursuant to CSX’s Stock and Incentive Award Plan (the “Plan”), which is incorporated herein by
reference, and together with this Notice and stock option agreement (the “Option Agreement”), set forth the terms and conditions of this grant.

CSX reserves the right to terminate, change or amend the Plan at any time. Receipt of this grant does not obligate CSX to make any additional grants to
you. This Option grant, or a portion thereof, may be subject to forfeiture if you terminate employment as set forth in the Option Agreement. You will receive a separate notification to view and accept your Agreement electronically. 

A copy of the Plan is available on the CSX Gateway within the Long-Term Incentives Portal under Team Sites. You should review the terms of the Notice,
Option Agreement and Plan carefully.

 OPTION AGREEMENT: TERMS AND CONDITIONS 

Vesting: 
 The Options may be exercised only once
vested. Except in the case of Retirement, Disability, death, reduction in force or return to contract employment, the Options will vest and become exercisable on [Vesting Date]. 

Termination of Employment/Other Requirements: 
  

	 	(a)	Retirement, Disability, death, return to contract     

 Prior to
vesting. In the event of Participant’s separation from employment due to Retirement, Disability, death, reduction in force or return to contract employment prior to [Vesting Date], a prorated portion of the Options will
vest on [Vesting Date]. In the event a Participant returns to contract employment due to a reduction in force, assuming continued employment through the vesting date, the Participant will retain all Options, and the Options will vest on
[Vesting Date]. If employment is not continued through the vesting date and prior to Participant becoming Retirement eligible, then unvested Options shall lapse and terminate immediately. 

Notwithstanding the foregoing, if the Participant’s employment is terminated by reason of Retirement and the Participant “Engages in
Competing Employment” prior to vesting, then the Options shall be terminated without further obligation on the part of CSX or any Affiliate. A Participant Engages in Competing Employment if the Participant works for or provides services
for any “Competitor,” on the Participant’s own behalf or on behalf of others, including, but not limited to, as a consultant, independent contractor, owner, officer, partner or employee. For this purpose, a Competitor is any
entity in the same line of business as the Corporation in North American markets in which the Corporation competes. 
 Following
vesting. In the event of the Participant’s separation from employment due to Retirement, Disability, or death the Participant or designated Beneficiary or estate will have until the Expiration Date to exercise any vested
Options.     
  

	 	(b)	Termination for Cause/Moral Turpitude. If the Participant’s employment is terminated for Cause, as defined in the Plan, all rights under the unvested Options shall lapse and terminate
immediately. A Participant who commits an act involving moral turpitude that adversely affects the reputation or business of the Companies shall forfeit all Options. Examples of acts of moral turpitude include, but are not limited to,
dishonesty or fraud involving CSX or any affiliated company, their employees, vendors, or customers or a violation of the CSX Code of Ethics.

  

	 	(c)	Resignation or Other Terminations. Except as otherwise provided in Section 20 of the Plan, if the Participant separates from employment from the Company (including management and contract positions)
for any reason other than Retirement, Disability, or death, Participant will have 60 days after separation from employment to exercise any Options that are vested at separation from employment. If the Participant voluntarily resigns from
employment prior to becoming Retirement eligible, any then unvested Options shall lapse and terminate immediately. 

  

	 	(d)	Definitions. Retirement shall mean the attainment of age 55 with a minimum of 10 years of service or the attainment of age 65. Disability shall mean long-term disability as defined in the company’s
long-term disability plan covering the Participant. 

 Exercise: 

Participant may exercise these Options, in whole or in part, to purchase a whole number of vested shares at any time by following the exercise procedures
below. All exercises must take place before the Expiration Date, or such earlier dates as established by the Notice, Option Agreement or the Plan, or such Options shall otherwise lapse.

Options may be exercised by: (i) paying cash, (ii) executing a “cashless” exercise, or (iii) executing a “cashless” exercise and
“hold” transaction.

 Non-Transferability: 

The Options may not be assigned, sold or transferred by the Participant other than by will or by the laws of descent and distribution, and are exercisable
during Participant’s life only by the Participant. 
 Change in Control: 

In the event of a Change in Control in which the Company is not the successor or acquiring company or a direct or indirect parent entity of the successor or
acquiring company (the “Surviving Company”) and the Surviving Company does not arrange to continue or convert the Option or grant a Substitute Award, as provided under Section 20 of the Plan, the Company may, without the Participant’s
consent, elect to provide any one or more of the following: 
  

	 	(a)	The Option shall be terminated as of the Change in Control in exchange for a payment in cash and/or securities equal to the amount, if any, by which the Fair Market Value of the shares underlying the Option exceeds the
Option Exercise Price;

  

	 	(b)	The Option shall become immediately and fully exercisable as of a date prior to the Change in Control, to the extent not previously exercised or terminated, and shall be terminated as of the Change in Control; or

  

	 	(c)	To the extent that the Option Exercise Price exceeds the Fair Market Value of the shares underlying the Option as of the Change in Control, the Option shall lapse and terminate as of the Change in
Control.

 Severability: 
 If any terms
and conditions herein are, become, or are deemed to be invalid, illegal, or unenforceable in any jurisdiction, such provision shall be construed or deemed amended or limited in scope to conform to applicable laws or, in the discretion of the
Company, it shall be stricken and the remainder of the terms and conditions shall remain in force and effect. 
 Choice of Law; Jurisdiction: 

All questions pertaining to the construction, regulation, validity, and effect of the terms and conditions shall be determined in accordance with the laws of
the state of Florida, without regard to the conflict of laws doctrine.
 Restrictions on Resales of Shares Acquired Pursuant to Option Exercise: 

The Company may impose such restrictions, conditions or limitations as it deems appropriate as to the timing and manner of any resales by the Participant or
other subsequent transfers by the Participant of any Common Stock issued as a result of the exercise of the Option, including without limitation (a) restrictions under an insider trading policy, (b) restrictions designed to delay and/or
coordinate the timing and manner of sales by Participant and other option-holders and (c) restrictions as to the use of a specified brokerage firm for such resales or other transfers. 

Nonqualified Stock Option: 
 The Option is intended to be
a nonqualified stock option and is not intended to be an incentive stock option under Section 422 of the Internal Revenue Code of 1986, as amended and will be interpreted accordingly. 

Income Taxes: 
 An exercise of Options may generate
federal and applicable state income and employment tax withholding obligations. The full purchase price of the shares being purchased through exercise of Options and the related withholding taxes for federal, state or local jurisdictions must be
paid to CSX at the time of an exercise of Options. The Participant acknowledges that the Company shall have the right to deduct any taxes required to be withheld by law in connection with the exercise of the Option from any amounts payable by
it to the Participant (including, without limitation, future cash wages). 
 You agree that this Option Agreement is governed by the terms and conditions
of the Plan. Unless defined in this Option Agreement, capitalized terms shall have the meanings ascribed to them in the Plan. The Company and you have executed this Option Agreement as of [Execution Date].

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