Document:

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                                                                   Exhibit 10.27

                         2002 Deferred Compensation Plan
                 Of CSX Corporation and Affiliated Corporations

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TABLE OF CONTENTS

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ARTICLE 1. DEFINITIONS ......................................................      1
     1.1    Account .........................................................      1
     1.2    Administrator ...................................................      1
     1.3    Affiliated Company ..............................................      1
     1.4    Award ...........................................................      1
     1.5    Award Deferral Agreement ........................................      1
     1.6    Benefits Trust Committee ........................................      1
     1.7    Board of Directors ..............................................      1
     1.8    Change of Control ...............................................      1
     1.9    Code ............................................................      3
     1.10   Committee .......................................................      3
     1.11   Company Stock ...................................................      3
     1.12   Compensation ....................................................      3
     1.13   Corporation .....................................................      3
     1.14   Deferral Agreement ..............................................      3
     1.15   Distribution Election ...........................................      3
     1.16   Distribution Event ..............................................      3
     1.17   Divisive Transaction ............................................      4
     1.18   Effective Date ..................................................      4
     1.19   Eligible Executive ..............................................      4
     1.20   Enrollment Form .................................................      5
     1.21   Executive Stock Account .........................................      5
     1.22   Form of Payment Election ........................................      5
     1.23   ICP Award .......................................................      5
     1.24   Independent Accountant ..........................................      5
     1.25   Matching Credits ................................................      5
     1.26   Member ..........................................................      5
     1.27   Partial Distribution Election ...................................      5
     1.28   Participating Company ...........................................      5
     1.29   Plan ............................................................      5
     1.30   Salary Deferrals ................................................      5
     1.31   Salary Deferral Agreement .......................................      5
     1.32   Stock Award .....................................................      6
     1.33   Subsidiary ......................................................      6
     1.34   Tax Savings Thrift Plan .........................................      6
     1.35   Trust ...........................................................      6
     1.36   Valuation Date ..................................................      6

ARTICLE 2. MEMBERSHIP .......................................................      6
     2.1    In General ......................................................      6
     2.2    Termination of Membership; Re-employment ........................      6
     2.3    Change in Status ................................................      7
     2.4    Membership Following a Change in Control ........................      7
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ARTICLE 3. DEFERRAL AGREEMENTS ..............................................     7
     3.1    Deferral Agreements .............................................     7
     3.2    Modification of Deferral Agreement ..............................     7

ARTICLE 4. AWARD DEFERRAL PROGRAM ...........................................     8
     4.1    Filing Requirements .............................................     8
     4.2    Amount of Deferral ..............................................     8
     4.3    Crediting to Account ............................................     9

ARTICLE 5. SALARY DEFERRAL PROGRAM ..........................................     9
     5.1    Filing Requirements .............................................     9
     5.2    Salary Deferral Agreement .......................................     9
     5.3    Amount of Salary Deferrals ......................................    10
     5.4    Effect of Hardship Withdrawal ...................................    10
     5.5    Certain Additional Credits ......................................    10

ARTICLE 6. EXECUTIVE STOCK DEFERRAL PROGRAM .................................    11
     6.1    Stock Awards ....................................................    11
     6.2    Executive Stock Account .........................................    11
     6.3    Dividend Reinvestment ...........................................    12

ARTICLE 7. MAINTENANCE OF ACCOUNTS ..........................................    12
     7.1    Creation of Account .............................................    12
     7.2    Adjustment of Account ...........................................    13
     7.3    Investment Performance Elections ................................    13
     7.4    Changing Investment Performance Elections .......................    13
     7.5    Vesting of Account ..............................................    14
     7.6    Action Following a Change of Control ............................    14

ARTICLE 8. DISTRIBUTION OF BENEFITS .........................................    14
     8.1    Commencement of Distribution ....................................    14
     8.2    Distribution Election ...........................................    15
     8.3    Delay of Payment ................................................    15
     8.4    Account Adjustment ..............................................    15
     8.5    Hardship Withdrawal, Forfeiture .................................    15
     8.6    Designation of Beneficiary ......................................    16
     8.7    Special Distribution Rules ......................................    17
     8.8    Status of Account Pending Distribution ..........................    17
     8.9    One-time Re-deferral Election ...................................    17
     8.10   Change of Control ...............................................    17

ARTICLE 9. FORM OF PAYMENT ..................................................    19
     9.1    Timing of Distribution ..........................................    19
     9.2    Form of Payment Election ........................................    19
     9.3    Installments and Withdrawals Pro-Rata ...........................    19

ARTICLE 10. AMENDMENT OR TERMINATION ........................................    20
     10.1   Right to Terminate ..............................................    20
     10.2   Right to Amend ..................................................    20
     10.3   Uniform Action ..................................................    20
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ARTICLE 11. GENERAL PROVISIONS ..............................................    21
     11.1   No Funding ......................................................    21
     11.2   Obligation ......................................................    21
     11.3   No Contract of Employment .......................................    21
     11.4   Withholding Taxes ...............................................    21
     11.5   Nonalienation ...................................................    21
     11.6   Administration ..................................................    21
     11.7   Impact of Future Legislation or Regulation ......................    22
     11.8   Construction ....................................................    23
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                                  INTRODUCTION

     This 2002 Deferred Compensation Plan of CSX Corporation and Affiliated
Companies (the "Plan") was adopted July 9, 2002. This Plan is generally intended
to provide certain executives eligible to participate in the Tax Savings Thrift
Plan for Employees of CSX Corporation and Affiliated Companies (the "Savings
Plan") with an opportunity to defer the receipt of a portion of their salary,
and/or award(s) under the various incentive compensation plans and programs of
CSX that may be offered from time to time and to restore employer matching
contributions lost under the Savings Plan because of the application of Sections
401(a)(17), 401(k), 401(m) and 415 of the Internal Revenue Code of 1986, as
amended. Eligible executives may, if they so elect, designate all or a portion
of such deferrals to be used for payment of education expenses for one or more
members of their families. The Plan is unfunded and is maintained by CSX
Corporation and Affiliated Companies primarily for the purpose of providing
deferred compensation for a select group of management or highly-compensated
employees.

                             ARTICLE I. DEFINITIONS

     1.1  Account means the bookkeeping account maintained for each Member to
record his Salary Deferrals, Matching Credits and the amount of Awards he has
elected to defer, as adjusted pursuant to Article 7.

     1.2  Administrator means the Corporation. The duties of the Administrator
shall be performed by a person or persons designated by the Chief Executive
Officer of the Corporation to perform such duties.

     1.3  Affiliated Company means the Corporation and any company or
corporation directly or indirectly controlled by the Corporation.

     1.4  Award means the amount other than salary awarded to an employee of an
Affiliated Company under the various incentive compensation plans and programs
of CSX that may be offered from time to time, and which has been designated by
the Administrator as eligible for deferral under the Plan, including but not
limited to ICP Awards, stock awards, stock options and special incentive awards.

     1.5  Award Deferral Agreement means a Deferral Agreement filed in
accordance with the Award deferral program described in Article 4.

     1.6  Benefits Trust Committee means the committee created pursuant to the
CSX Corporation and Affiliated Companies Benefits Assurance Trust Agreement.

     1.7  Board of Directors or "Board" means the Board of Directors of the
Corporation.

     1.8  Change of Control means any of the following:

          (a) 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 1934, as amended (the "Exchange Act")] (a "Person") of
     beneficial ownership

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     (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
     20% or more of either (i) the then outstanding shares of common stock of
     the Corporation (the "Outstanding Corporation Common Stock"), or (ii) 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 (a), the following acquisitions shall not
     constitute a Change of Control: (i) any acquisition directly from the
     Corporation; (ii) any acquisition by the Corporation; (iii) any acquisition
     by any employee benefit plan (or related trust) sponsored or maintained by
     the Corporation or any corporation controlled by the Corporation; or (iv)
     any acquisition by any corporation pursuant to a transaction which complies
     with clauses (i), (ii) and (iii) of subsection (c) of this Section 1.8; or

          (b)  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

          (c)  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:

               (i)   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;

               (ii)  no Person (excluding any corporation resulting from such
          Business Combination or any employee benefit plan (or related trust)
          of the

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          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

               (iii) 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

          (d)  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 (i),
     (ii) and (iii) of subsection (c) of this Section 1.8; or

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

     1.9  Code means the Internal Revenue Code of 1986, as amended from time to
time.

     1.10 Committee means the Compensation Committee of the Board of Directors
of CSX Corporation.

     1.11 Company Stock means the common stock of the Corporation.

     1.12 Compensation means the "Base Compensation" of an Eligible Executive as
defined in the Tax Savings Thrift Plan, determined prior to: (a) any Salary
Deferrals under Article 5; and (b) any limit on compensation imposed by Section
401(a)(17) of the Code.

     1.13 Corporation means CSX Corporation, a Virginia corporation, and any
successor thereto by merger, purchase or otherwise.

     1.14 Deferral Agreement means an agreement between an Eligible Executive
and a Participating Company of which he is an employee under which the Eligible
Executive agrees to defer an Award or make Salary Deferrals under the Plan, as
the case may be. The Deferral Agreement shall be on a form prescribed by the
Administrator and shall include any amendments, attachments or appendices.

     1.15 Distribution Election means the election by the Member of the event
triggering the commencement of distribution under Section 8.2.

     1.16 Distribution Event means any of the events listed in Section 1.8,
"Change of Control," with the following modification: the words, "Approval by
the shareholders of the Corporation of," in the first line of Sections 1.8(c)
and 1.8(d) are replaced for purposes of this Section 1.16 with the words,
"Consummation of, i.e., actual

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change in ownership of Outstanding Corporation Common Stock, Outstanding
Corporation Voting Stock, and/or assets of the Corporation or its principal
subsidiary by reason of,".

     1.17 Divisive Transaction means a transaction in which the Eligible
Executive's employer ceases to be a Subsidiary or there is a sale of
substantially all of the assets of the Subsidiary.

     1.18 Effective Date means November 30, 2002 or with respect to the Eligible
Executives of a company which adopts the Plan, it means the date such company
becomes a Participating Company.

     1.19 Eligible Executive means an employee of a Participating Company,
provided that:

          (a)  For purposes of the award deferral program described in
               Article 4:

               (i)   Such employee is employed by a Participating Company in
          salary band 6 or above as of December 30 of the calendar year for
          which the Award is made (or in the case of a multiple-year Award,
          December 30 of the last calendar year for which the Award is made);
          and

               (ii)  (A) is employed by a Participating Company and is receiving
          Compensation of one hundred thousand dollars ($100,000) or more per
          year; or (B) retired from the Participating Companies or terminated
          employment with the Participating Companies on account of disability
          as determined by the Administrator, and was receiving compensation of
          one hundred thousand dollars ($100,000) or more per year at the time
          of such retirement or termination.

          (b)  For purposes of the salary deferral program described in Article
               5, such employee is:

               (i)   eligible for membership in the Tax Savings Thrift Plan; and

               (ii)  employed in salary band 6 or above; and

               (iii) receiving Compensation of one hundred thousand dollars
          ($100,000) or more per year.

          (c)  The Compensation amount set forth in subsections (a)(ii) and
     (b)(ii) shall be adjusted no more frequently than annually, based on (i)
     changes in the Consumer Price Index ("CPI"), such adjustment to be made in
     increments of ten thousand dollars ($10,000) only, rounded to next lowest
     increment as indicated by the CPI, or (ii) in the discretion of the Chief
     Executive Officer, a review of data regarding eligibility to participate in
     this type of program. An employee who is eligible to participate because
     his Compensation satisfies the requirements of subsection (a)(ii) or
     (b)(iii) above, and is excluded from participation only because of a
     subsequent increase in the Compensation requirement shall continue to be
     eligible to participate.

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          (d)  The Chief Executive Officer of the Corporation or his designee
     may designate any other employee or former employee of an Affiliated
     Company as an Eligible Executive, including an employee or former employee
     who has previously made deferrals under a prior Company deferral plan;
     provided, however, only those employees or former employees considered to
     be a select group of management or highly compensated may be designated as
     Eligible Executives under this Plan. Notwithstanding the preceding,
     following a Change of Control, such designations are subject to the
     approval of the Benefits Trust Committee.

     1.20 Enrollment Form means the form prescribed by the Administrator that an
Eligible Executive who has previously made deferrals under a prior Company
deferral plan may file pursuant to Section 2.1 in order to become a Member and
participate in the Plan.

     1.21 Executive Stock Account means the bookkeeping account maintained for
each Member to record his deferral of Stock Awards pursuant to Article 6.

     1.22 Form of Payment Election means the election by the Member of the form
of distribution he will receive from his Account or Executive Stock Account
pursuant to Section 9.2.

     1.23 ICP Award means the Participating Companies' Incentive Compensation
Program, including but not limited to the Management Incentive Compensation
Program ("MICP") and the Senior Management Incentive Compensation Program
("SMICP").

     1.24 Independent Accountant means the independent accountants engaged by
the Corporation and, if selected or changed following a Change of Control,
approved by the Benefits Trust Committee.

     1.25 Matching Credits means amounts credited to the Account of a Member
pursuant to Section 5.5.

     1.26 Member means, except as otherwise provided in Article 2, each Eligible
Executive who has executed an initial Deferral Agreement or Enrollment Form as
described in Section 2.1.

     1.27 Partial Distribution Election means a Distribution Election for a
portion of a Member's Account under Section 8.2(d).

     1.28 Participating Company means the Corporation and any company or
corporation directly or indirectly controlled by the Corporation, which the
Committee designates as eligible to participate in the Plan in accordance with
Section 11.6(e).

     1.29 Plan means this 2002 Deferred Compensation Plan of CSX Corporation and
Affiliated Companies, as amended from time to time.

     1.30 Salary Deferrals means the amounts credited to a Member's Account
under Section 5.3.

     1.31 Salary Deferral Agreement means a Deferral Agreement filed in
accordance with the salary deferral program described in Article 5.

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     1.32 Stock Award means an Award that is or will be payable in Company Stock
issued pursuant to the CSX Omnibus Incentive Plan ("COIP") or another of the
Corporation's stock incentive plans, including but not limited to Performance
Shares, nonqualified stock options, Incentive Stock Options, restricted stock
and stock appreciation rights.

     1.33 Subsidiary means a corporation more than 50% of the voting shares of
which are owned directly or indirectly by the Corporation.

     1.34 Tax Savings Thrift Plan means the Tax Savings Thrift Plan for
Employees of CSX Corporation and Affiliated Companies, as amended from time to
time.

     1.35 Trust means the CSX Corporation and Affiliated Companies Benefits
Assurance Trust.

     1.36 Valuation Date means the last business day of each calendar month
following the Effective Date.

                              ARTICLE 2. MEMBERSHIP

     2.1  In General:

          (a)  An Eligible Executive shall become a Member as of the date he
     files his initial Deferral Agreement or an Enrollment Form with the
     Administrator. Such Deferral Agreement shall be effective for purposes of
     deferring an Award or making Salary Deferrals only as provided in Articles
     4 and 5. Such Enrollment Form shall be effective for purposes of
     transferring balances previously deferred under a prior Company deferral
     plan to the Member's Account or Executive Stock Account only as provided in
     Articles 6 and 7.

          (b)  As a condition of membership, the Administrator may require such
     other information as it deems appropriate.

     2.2  Termination of Employment; Re-employment:

          (a)  Subject to Section 2.4, membership shall not cease upon a
     Member's termination of employment. In the event that a Member ceases to be
     employed by an Affiliated Company, his Salary Deferrals and Matching
     Credits shall thereupon be suspended until such time as he shall be
     re-employed as an Eligible Executive by an Affiliated Company.

          (b)  In the event that a Member ceases to be employed by an Affiliated
     Company he shall continue to be a Member of the Plan but shall not be
     eligible to defer any portion of any future Awards until such time as he
     shall be re-employed as an Eligible Executive by an Affiliated Company.

          (c)  Upon re-employment as an Eligible Executive a Member may
     participate in the Plan as follows:

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               (i)   in the case of a Member who prior to re-employment received
          the balance in his Account or Executive Stock Account, by executing a
          Deferral Agreement or Enrollment Form as provided in Section 2.1 as
          though for all purposes of the Plan the Affiliated Companies had never
          employed the Member;

               (ii)  in the case of a Member who prior to re-employment did not
          receive the balance in his Account or Executive Stock Account, by
          executing a Deferral Agreement or Enrollment Form as provided in
          Section 2.1, provided his Distribution Elections and beneficiary
          designation shall remain in effect.

               (iii) distributions shall cease if the commencement of
          distribution was because of the Member's termination of employment
          (including retirement);

               (iv)  distributions shall continue if the commencement of
          distribution was because the Member chose a specific date or age for
          the commencement of benefits and that date or age has been attained.

     2.3  Change in Status:

          (a)  In the event that a Member ceases to be an Eligible Executive
     with respect to Salary Deferrals but continues to be employed by an
     Affiliated Company, his Salary Deferrals and Matching Credits shall
     thereupon be suspended until such time as he shall once again become an
     Eligible Executive. All other provisions of his Salary Deferral Agreement
     shall remain in force and he shall continue to be a Member of the Plan.

          (b)  In the event that a Member ceases to be an Eligible Executive
     with respect to the deferral of Awards hereunder but continues to be
     employed by an Affiliated Company, he shall continue to be a Member of the
     Plan but shall not be eligible to defer any portion of any future Awards
     until such time as he shall once again become an Eligible Executive.

     2.4  Membership Following a Change of Control: Following a Change of
Control, any membership determinations or discretionary actions pursuant to this
Article 2 shall be subject to the approval of the Benefits Trust Committee.

                         ARTICLE 3. DEFERRAL AGREEMENTS

     3.1  Deferral Agreement: A Deferral Agreement shall be in a form, including
electronic form approved by the Administrator, which shall be the sole judge of
the proper completion thereof. Such Agreement shall provide for the deferral of
an Award or for Salary Deferrals and may include such other provisions as the
Administrator deems appropriate.

     3.2  Modification of Deferral Agreement: A Member may elect to change,
modify or revoke a Deferral Agreement as follows by filing a new Deferral
Agreement:

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          (a)  A Member may change the amount of Award he elects to defer on an
     Award Deferral Agreement prior to the Agreement's effective date as
     provided in Article 4.

          (b)  A Member may change the rate of his Salary Deferrals or suspend
     his Salary Deferrals as provided in Article 5.

                        ARTICLE 4. AWARD DEFERRAL PROGRAM

     4.1  Filing Requirements:

          (a)  With respect to an ICP Award made for a calendar year or multiple
     years and determined and paid in the following calendar year, an Eligible
     Executive may elect, subject to Section 4.2(a) to defer all or a portion of
     his Award, if any, for that year. Such election shall be made by filing an
     Award Deferral Agreement with the Administrator on or before the close of
     business on November 15 of the calendar year (or, in the case of a
     multiple-year Award, the last calendar year) for which the Award is earned.
     An election to defer a portion of an Award shall be an integral percentage
     of such Award.

          (b)  With respect to an ICP Award, notwithstanding Section 4.1(a), an
     individual who becomes an Eligible Executive after November 15 of the
     calendar year for which an Award is made, but prior to the first day of the
     month in which such Award is determined including required action by the
     Board, may elect, subject to Section 4.2(a) to defer all or a portion of
     that Award in accordance with this Section 4.1(b). Such election shall be
     made by filing an Award Deferral Agreement during the 30 day or shorter
     period beginning on the date the individual becomes an Eligible Executive
     and ending no later than the last day of the month preceding the month in
     which the Award is determined.

          (c)  With respect to an ICP Award, an Eligible Executive's election to
     defer all or a portion of his Award shall be effective on the last day that
     such deferral may be elected under Section 4.1(a) or 4.1(b) and shall be
     effective only for the Award in question. An Eligible Executive may revoke
     or change his election to defer all or a portion of his Award at any time
     prior to the date the election becomes effective, as described in the
     preceding sentence. Any such revocation or change shall be made in a form
     and manner determined by the Administrator.

          (d)  With respect to an Award other than an ICP Award, an Eligible
     Executive shall be entitled to defer an Award by filing an Award Deferral
     Agreement with the Administrator on or before the close of business on
     November 15 of the calendar year immediately prior to the year in which the
     Award is paid or made available to the Eligible Executive. Such Award
     Deferral Agreement shall be effective only for the Award in question.

          (e)  The Committee in its sole discretion may require that certain
     Awards must be deferred, in which case no Award Deferral Agreement shall be
     required to be filed.

     4.2  Amount of Deferral:

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          (a)  With respect to an ICP Award, prior to a Change of Control, the
     Committee in its sole discretion, may establish such maximum limit on the
     amount of Award an Eligible Executive may defer for a calendar year as the
     Committee deems appropriate. Such maximum limit shall appear on the
     Eligible Executive's Award Deferral Agreement for the year. Following a
     Change of Control, the Committee's decision is subject to the final
     approval of the Benefits Trust Committee.

          (b)  With respect to an ICP Award there shall be no minimum amount of
     deferral allowed unless otherwise designated by the Administrator.

          (c)  With respect to an Award other than an ICP Award there shall be
     neither minimum nor maximum amount of deferral allowed unless otherwise
     designated by the Administrator.

     4.3  Crediting to Account: The amount of Award which an Eligible Executive
has elected to defer shall be credited to his Account on the date coincident
with or as soon as reasonably practicable following the date the Award would
have been paid to the Eligible Executive.

                       ARTICLE 5. SALARY DEFERRAL PROGRAM

     5.1  Filing Requirements:

          (a)  An individual who is an Eligible Executive immediately prior to
     the Effective Date may file a Salary Deferral Agreement or an Enrollment
     Form with the Administrator, within such period prior to the Effective Date
     and in such manner as the Administrator may prescribe.

          (b)  An individual who becomes an Eligible Executive on or after the
     Effective Date may file a Salary Deferral Agreement with the Administrator
     during the calendar month he becomes an Eligible Executive, in such manner
     as the Administrator may prescribe.

          (c)  An Eligible Executive who fails to file a Salary Deferral
     Agreement with the Administrator as provided in Sections 5.1(a) and 5.1(b)
     may file a Salary Deferral Agreement in any subsequent month of December.

     5.2  Salary Deferral Agreement:

          (a)  A Member's Salary Deferral Agreement shall authorize a reduction
     in his base pay with respect to his Salary Deferrals under the Plan. Such
     salary reduction shall be an integral percentage not in excess of fifty
     (50%) percent. The Agreement shall be effective for payroll periods
     beginning on or after the later of: (i) the Effective Date; or (ii) the
     first day of the month following the date the Salary Deferral Agreement is
     filed with the Administrator in accordance with Section 5.1. Paychecks
     applicable to said payroll periods shall be reduced accordingly.

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          (b)  A Salary Deferral Agreement shall not be revoked or modified with
     respect to prior deferrals and shall remain in effect until such time as
     the Member files with the Administrator a new Salary Deferral Agreement.

          (c)  A Member who is a participant in the Tax Savings Thrift Plan will
     have his salary deferral election under the Tax Savings Thrift Plan serve
     as his Salary Deferral Agreement under this Plan, and will not file a
     separate Salary Deferral Agreement.

     5.3  Amount of Salary Deferrals: On each pay date, or as soon as reasonably
practicable thereafter, following the effective date of an Eligible Executive's
Salary Deferral Agreement, his Account shall be credited with an amount of
Salary Deferral, if any, for the payroll period ending thereon, as he elects in
his Salary Deferral Agreement, provided, however, that no Salary Deferral shall
be made under this Plan for any payroll period unless the Eligible Executive is
prevented from making elective deferrals under the Tax Savings Thrift Plan for
such payroll period as a result of Section 402(g) and/or 401(k)(3) of the Code,
and provided further that, for the payroll period in which such Salary Deferral
is first made, it shall be limited to the excess of the amount otherwise
determined for such payroll period under this Section 5.3 over the Eligible
Executive's elective deferrals under the Tax Savings Thrift Plan for such
payroll period.

     5.4  Effect of Hardship Withdrawal: In the event a Member makes a Hardship
Withdrawal under Section 8.5 of the Plan, his Salary Deferrals under the Plan
will be automatically suspended. The Member may apply to the Administrator to
resume his Salary Deferrals with respect to payroll periods beginning on or
after the January 1 following the date of suspension, at a time and in a manner
determined by the Administrator; provided, that the Administrator shall approve
such resumption only if the Administrator determines that the Member is no
longer incurring such hardship. Notwithstanding the preceding, following a
Change of Control, such action by the Administrator is subject to approval by
the Benefits Trust Committee.

     5.5  Certain Additional Credits:

     On each pay date, or as soon as reasonably practicable thereafter, there
shall be credited Matching Credits to the Account of a Member determined as
follows: the greater of (a) or (b), minus (c), where

          (a)  is the employer matching contributions the Member would have
     received under the Tax Savings Thrift Plan if the provisions of Sections
     401(k)(3), 401(m)(9) and 415 of the Code had not applied to the Tax Savings
     Thrift Plan; and

          (b)  is the employer matching contributions the Member would have
     received under the Tax Savings Thrift Plan if his deferrals under this Plan
     had been contributed to the Tax Savings Thrift Plan (in addition to those
     amounts actually contributed to that Plan), based on Compensation as
     defined in this Plan and as if the provisions of Sections 401(a)(17),
     401(k)(3), 401(m)(2), 401(m)(9) and 415 of the Code had not applied to the
     Tax Savings Thrift Plan; and

          (c)  is the employer matching contributions made on his behalf for the
     applicable period to the Tax Savings Thrift Plan.

                                       10

<PAGE>

                   ARTICLE 6. EXECUTIVE STOCK DEFERRAL PROGRAM

     6.1  Stock Awards: An Eligible Executive who is eligible to receive a Stock
Award, the terms of which permit its deferral, may file with the Administrator
an Award Deferral Agreement with respect to a Stock Award, pursuant to Article
4.

     6.2  Executive Stock Account:

          (a)  A Member's Executive Stock Account will be created when he files
     his initial Award Deferral Agreement with respect to a Stock Award. An
     Executive Stock Account will be credited based upon the performance of
     Company Stock. No Member shall make an Investment Performance Election with
     respect to his Executive Stock Account.

          (b)  A Member shall be eligible to file Distribution Elections
     pursuant to Article 8 and Form of Payment Elections pursuant to Article 9
     with respect to his Executive Stock Account. If a Member has not filed a
     Distribution Election distribution of his Executive Stock Account will be
     made pursuant to Section 8.1. If a Member has not filed a Form of Payment
     Election distribution of his Executive Stock Account will be made pursuant
     to Section 9.1. Distributions from a Member's Executive Stock Account shall
     be made only in shares of Company Stock.

          (c)  An Eligible Executive who has previously deferred shares of
     Company Stock granted pursuant to the CSX Omnibus Incentive Plan ("COIP")
     or another of the Corporation's stock incentive plans may elect to have an
     Executive Stock Account created for him in the Plan on the Effective Date
     by filing an Enrollment Form with the Administrator on or before the
     Effective Date. Filing the Enrollment Form will cause the transfer of such
     previously deferred share balances to the Member's Executive Stock Account
     on the Effective Date, and the Member will enjoy all rights and privileges
     of a Member 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 6.2.

               (i)   No initial Distribution Election made pursuant to this
          Section 6.2 with respect to such previously deferred shares which
          designates distribution upon attainment of a designated age under
          Section 8.2(a)(i) that is within one year after the Effective Date
          shall be filed.

               (ii)  No initial Distribution Election made pursuant to this
          Section 6.2 with respect to such previously deferred shares which
          designates distribution upon the Member's termination of employment
          with the Affiliated Companies under Section 8.2(a)(ii) shall be
          effective if distribution would occur within one year after the
          Effective Date.

               (iii) Any prior election made with respect to such previously
          deferred shares which designates distribution upon the Member's
          termination of employment with the Affiliated Companies shall remain
          in effect until one year after the Effective Date, and shall be void
          thereafter.

                                       11

<PAGE>

          6.3    Dividend Reinvestment: A Member may elect annually, at such
time as the Administrator may prescribe prior to the close of business on
November 15 in any calendar year, in the form and manner prescribed by the
Administrator to receive credit in his Executive Stock Account for dividends
paid on Company Stock, in the amount with which such Executive Stock Account
would have been credited assuming it had been invested in Company Stock
("Dividend Equivalents"). Absent such an election, Dividend Equivalents will be
paid currently to the Member by the Company.

                       ARTICLE 7. MAINTENANCE OF ACCOUNTS

          7.1    Creation of Account:

                 (a)    A Member's Account will be created when he files his
          initial Deferral Agreement.

                 (b)    An Eligible Executive who is a Member of the
          Supplementary Savings And Incentive Award Deferral Plan For Eligible
          Executives Of CSX Corporation And Affiliated Companies (the "SSP") may
          elect to have an Account created for him in the Plan on the Effective
          Date by filing an Enrollment Form with the Administrator on or before
          the Effective Date. Filing the Enrollment Form will cause the transfer
          of balances previously deferred under the SSP to the Member's Account
          on the Effective Date, and the Member will enjoy all rights and
          privileges of a Member including the ability to file initial
          Investment Performance Elections, Distribution Elections and Form of
          Payment Elections. A properly filed Enrollment Form will cause all
          prior elections made under the SSP to be void immediately, unless
          otherwise stated in this Section 7.1, however the Member's investment
          fund allocations under the SSP shall remain in effect for transferred
          balances until such time as the Member reallocates the current balance
          of his Account pursuant to section 7.4(b).

                        (i)    No initial Distribution Election made pursuant to
                 this Section 7.1 with respect to such previously deferred
                 amounts which designates distribution upon attainment of a
                 designated age under Section 8.2(a)(i) that is within one year
                 after the Effective Date shall be filed.

                        (ii)   No initial Distribution Election made pursuant to
                 this Section 7.1 with respect to such previously deferred
                 amounts which designates distribution upon the Member's
                 termination of employment with the Affiliated Companies under
                 Section 8.2(a)(ii) shall be effective if distribution would
                 occur within one year after the Effective Date.

                        (iii)  Any prior election made under the SSP which
                 designates distribution upon the Member's termination of
                 employment with the Affiliated Companies shall remain in effect
                 until one year after the Effective Date, and shall be void
                 thereafter.

                 (c)    A Member shall be eligible to file Distribution
          Elections pursuant to Article 8 and Form of Payment Elections pursuant
          to Article 9 with respect to his Account. If a Member has not filed a
          Distribution Election distribution of his Account will be made
          pursuant to Section 8.1. If a Member has not filed a Form

                                       12

<PAGE>

          of Payment Election distribution of his Account will be made pursuant
          to Section 9.1.

          7.2    Adjustment of Account:

                 (a)    As of each pay date, or as soon as reasonably
          practicable thereafter, each Account shall be credited or debited with
          the amount of earnings or losses with which such Account would have
          been credited or debited, assuming it had been invested in one or more
          investment funds, or earned the rate of return of one or more indices
          of investment performance, designated by the Administrator and elected
          by the Member, for purposes of measuring the investment performance of
          his Account.

                 (b)    The Administrator shall designate at least one
          investment fund or index of investment performance and may designate
          other investment funds or investment indices to be used to measure the
          investment performance of Accounts. The designation of any such
          investment funds or indices shall not require the Affiliated Companies
          to invest or earmark their general assets in any specific manner. The
          Administrator may change the designation of investment funds or
          indices from time to time, in its sole discretion, and any such change
          shall not be deemed to be an amendment affecting Members' rights under
          Section 10.2.

                 (c)    For purposes of Section 7.2(a), the portion of a
          Member's Account attributable to Matching Credits shall initially be
          credited based upon the performance of "Fund E" (CSX Stock Fund) under
          the Tax Savings Thrift Plan.

          7.3    Investment Performance Elections: In the event the
Administrator designates more than one investment fund or index of investment
performance under Section 7.2, each Member shall file an initial investment
performance election with the Administrator with respect to the investment of
his Account. The election shall designate the investment fund or funds or index
or indices of investment performance, which shall be used to measure the
investment performance of the Member's Account. The election shall be made
within such time period and on such form as the Administrator may prescribe and
shall be in integral percentages of the Member's Account balance or deferral.
The election shall be effective as of the beginning of the payroll period next
following the date the election is filed. In the event a Member does not file an
investment performance election, his Account shall be credited with earnings and
losses as if the Account had earned the same rate of return as the Stable Value
Fund under the Tax Savings Thrift Plan.

          7.4    Changing Investment Performance Elections:

                 (a)    A Member may change his election in Section 7.3 with
          respect to his Account by filing an appropriate written notice with
          the Administrator. The notice shall be effective as of the beginning
          of the first payroll period following the date the notice is filed
          with the Administrator.

                 (b)    A Member may reallocate the current balance of his
          Account, thereby changing the investment fund or funds or index or
          indices of investment performance used to measure the future
          investment performance of his existing Account balance, by filing an
          appropriate notice with the Administrator. Such notice shall be
          effective as soon as administratively practicable following its
          receipt by the

                                       13

<PAGE>

          Administrator. A Member may not reallocate the balance of his
          Executive Stock Account to any investment other than Company Stock.

          7.5    Vesting of Account: Each Member shall be fully vested in his
Account or Executive Stock Account.

          7.6    Action Following a Change of Control: Following a Change of
Control, any action taken by the Administrator pursuant to this Article 7 is
subject to the approval of the Benefits Trust Committee.

                       ARTICLE 8. DISTRIBUTION OF BENEFITS

          8.1    Commencement of Distribution: The distribution of the Member's
Account or Executive Stock Account shall commence on the date that is one year
following the Member's termination of employment with the Affiliated Companies,
or at such time as may be designated by the Member on a Distribution Election
pursuant to Section 8.2.

          8.2    Distribution Election

                 (a)    A Member may file with the Administrator a Distribution
          Election for the distribution upon:

                        (i)    attainment of a designated age not earlier than
                 age 50 nor later than age 70-1/2, however he shall not elect an
                 age less than one year subsequent to his current age; or

                        (ii)   termination of employment with the Affiliated
                 Companies.

                 (b)    A Member may file with the Administrator a Partial
          Distribution Election for the distribution on attainment of a
          designated age for the payment of the expenses directly or indirectly
          arising from enrollment in a college, university, another
          post-secondary institution of higher learning or a secondary
          educational institution in the name of one or more of:

                        (i)    each of the Member's children,

                        (ii)   each of the Member's brothers, sisters, their
                 spouses, the Member's spouse, or

                        (iii)  each of the foregoing's lineal descendants.

                 (c)    A Member 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 termination of employment 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,

                                       14

<PAGE>

          after which time no Distribution Election shall be filed.

                 (d)    A Member may make a Partial Distribution Election with
          respect to any portion of his Account or Executive Stock Account,
          provided no Distribution Election shall be made for a portion of an
          Account or Executive Stock Account less than $2,000, as determined as
          of the date the election is made. No Member shall have more than four
          Distribution Elections in effect at any time.

                 (e)    In no event may distribution made pursuant to a
          Distribution Election commence prior to a date that is three years
          subsequent to the date the Member first makes a Salary Deferral or
          Award Deferral under either this Plan, the SSP, the COIP or another of
          the Corporation's stock incentive plans for which an Executive Stock
          Account has been established.

                 (f)    For purposes of this Plan and particularly this Article
          8, if the Member's employer is involved in a Divisive Transaction, the
          Member will be considered to have terminated his employment with an
          Affiliated Company on the closing date of the Divisive Transaction,
          provide the Member's employment with his employer has not otherwise
          terminated prior to that date.

                 (g)    Notwithstanding anything in Section 8.1 or 8.2 to the
          contrary, upon death of a Member, the balance of his Account or
          Executive Stock Account shall be distributed to his beneficiary as
          soon as administratively practicable following the January 1
          coincident with or next following his date of death.

                 (h)    Any Distribution Election made in proper form by a
          Member shall be effective and distribution shall commence pursuant to
          such Distribution Election. Any Distribution Election not made in
          proper form shall be void.

          8.3    Delay of Payment

                 (a)    Notwithstanding the foregoing, prior to a Change of
          Control, the Corporation may delay payment of a benefit under this
          Plan to any Member who is determined to be among the top five most
          highly paid executives for the year the benefit under this Plan would
          otherwise be paid; provided, however, if a Member's payment is
          delayed, the benefit to which he is entitled will not decrease after
          the date it would otherwise be distributed.

                 (b)    Notwithstanding the preceding, following a Change of
          Control, the authority to delay payment of a Member's Account or
          Executive Stock Account rests solely with the Benefits Trust
          Committee.

          8.4    Account Adjustment: The obligations of the Corporation or any
of its affiliated corporations and the benefits due any Member, surviving spouse
or beneficiary hereunder shall be reduced by any amount received in regard
thereto under the Benefits Assurance Trust or any similar trust or other
vehicle.

          8.5    Hardship Withdrawal, Forfeiture:

                                       15

<PAGE>

                 (a)    While employed by the Participating Companies, a Member
          may, in the event of a severe financial hardship, request a withdrawal
          from his Account or Executive Stock Account without filing a
          Distribution Election under Section 8.2. The request shall be made in
          a time and manner determined by the Administrator, shall not be for a
          greater amount than the amount required to meet the financial
          hardship, and shall be subject to approval by the Administrator. The
          Administrator shall consider any requests for payment under this
          Section 8.5 on a uniform and nondiscriminatory basis and in accordance
          with the standards of interpretation described in section 457 of the
          Code and the regulations thereunder. The circumstances that will
          constitute a severe financial hardship will depend upon the facts of
          each case, but, in any case, no withdrawal may be made to the extent
          that such hardship is or may be relieved: (i) through reimbursement or
          compensation by available insurance or otherwise or (ii) by
          liquidation of the Member's assets, to the extent the liquidation of
          such assets would not itself cause severe financial hardship.

                 (b)    For purposes of this Section 8.5 severe financial
          hardship may include any of the following circumstances:

                        (i)    illness or injury of the Member or his
                 dependents,

                        (ii)   the loss of the Member's home or its contents due
                 to casualty, or

                        (iii)  any other extraordinary and unforeseeable
                 circumstances of the Member approved by the Administrator,

          as long as those circumstances result in a present or impending
          critical financial need, including the inability to educate the
          Member's dependent child(ren).

                 (c)    Notwithstanding the preceding, a Member may request and
          receive a withdrawal from his Account or Executive Stock Account at
          any time without filing a Distribution Election under Section 8.2. Any
          such withdrawal which is not determined by the Administrator to be a
          hardship withdrawal under this Section 8.5 shall result in the
          forfeiture of an amount equal to the portion of the Member's Account
          or Executive Stock Account, as applicable, that is withdrawn,
          multiplied by the Mid-term Applicable Federal Rate determined as of
          the Valuation Date upon which the withdrawal is effective.

                 (d)    Notwithstanding the preceding, following a Change of
          Control, any decisions or determinations by the Administrator under
          this Section 8.5 shall be subject to the approval of the Benefits
          Trust Committee.

          8.6    Designation of Beneficiary: A Member may, at a time and in a
manner determined by the Administrator, designate a beneficiary and one or more
contingent beneficiaries (which may include the Member's estate) to receive any
benefits which may be payable under this Plan upon his death. If the Member does
not designate a beneficiary or contingent beneficiary, or if the beneficiary and
the contingent beneficiaries do not survive the Member, such benefits shall be
paid to the Member's estate. A Member may revoke or change any designation made
under this Section 8.6 in a time and manner determined by the Administrator.

                                       16

<PAGE>

          8.7    Special Distribution Rules: Notwithstanding anything to the
contrary in this Plan, if (a) a Member becomes the owner, director or employee
of a competitor of the Affiliated Companies, (b) his employment is terminated by
an Affiliated Company on account of actions by the Member which are detrimental
to the interests of the Affiliated Company, or (c) he engages in conduct
subsequent to the termination of his employment with the Affiliated Companies
which the Administrator determines to be detrimental to the interests of an
Affiliated Company, then the Administrator may, in its sole discretion, pay the
Member a single sum payment or, in the case of an Executive Stock Account, a
distribution in shares of Company Stock equal to the balance in his Account or
Executive Stock Account. The single sum payment or distribution of shares shall
be made as soon as practicable following the date the Member becomes an owner,
director or employee of a competitor, his termination of employment or the
Administrator's determination of detrimental conduct, as the case may be, and
shall be in lieu of all other benefits which may be payable to the Member under
this Plan.

          8.8    Status of Account Pending Distribution:

                 (a)    Pending distribution, a Member's Account shall continue
          to be credited with earnings and losses as provided in Section 7.2.
          The Member shall be entitled to change his investment elections under
          Section 7.3 or apply for Hardship withdrawals under Section 8.5. In
          the event of the death of a Member, his Account shall be credited with
          earnings and losses as if the Account had earned the same rate of
          return as the CSX Corporation Cash Pool Earnings Rate or, in the sole
          discretion of the Administrator, the rate of return of such other
          index of investment performance or investment fund which may be
          designated by the Administrator as a measure for investment
          performance of Members' Accounts commencing with the Valuation Date
          coincident with or next following the Member's date of death.

                 (b)    Pending distribution, a Member's Executive Stock Account
          shall continue to be credited based on the performance of Company
          Stock as provided in Section 6.2.

          8.9    One-time Re-deferral Election: A Member 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 pursuant to Section
8.1 or 8.2 ("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.

          8.10   Change of Control:

                 (a)    A Member shall be eligible to make a separate
          Distribution Election which shall be effective only in the event of a
          Change of Control.

                 (b)    If a Change of Control has occurred, the Corporation and
          Participating Companies shall contribute to the Trust within 7 days of
          such Change of Control, a lump sum payment equal to the greater of (i)
          the aggregate value of the amount each Member would be eligible to
          receive (determined under (b) below) as of the latest Valuation Date
          coinciding with or preceding the date of Change of Control or (ii) the
          amount determined under Section 1(h) of the Trust attributable to

                                       17

<PAGE>

     liabilities relating to the Plan 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 8.10 shall be determined
     by the Independent Accountants after consultation with the entity then
     maintaining the Plan's records, and shall be projected, if necessary, to
     such Valuation Date from the last valuation of Members' Accounts or
     Executive Stock Accounts for which information is readily available.
     Thereafter, the Independent Accountants shall annually determine as of a
     Valuation Date for each Member not receiving a lump sum payment pursuant to
     subsection (c) below the value of each Member's Accounts or Executive Stock
     Accounts. 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 the
     Independent Accountants, the Corporation and Participating Companies shall
     make a lump sum contribution to the Trust equal to the difference.

          (c) In the event a Distribution Event has occurred, the trustee of the
     Trust shall, within 45 days of such Distribution Event, pay to each Member
     not making an election under (d) below, a lump sum payment or, in the case
     of an Executive Stock Account, a distribution in shares of Company Stock
     equal to the value of the Member's Account or Executive Stock Account
     (determined under Article 6) as of the Valuation Date coinciding with or
     next preceding the date of such Distribution Event. The amount of each
     Member's lump sum payment or Company Stock distribution shall be determined
     by the Independent Accountants after consultation with the entity then
     maintaining the Plan's records, and shall be projected, if necessary, to
     such Valuation Date from the last valuation of Member's Account or
     Executive Stock Account for which information is readily available.

          (d) Each Member may elect in a time and manner determined by the
     Administrator, but in no event later than 90 days following the Effective
     Date, to have amounts and benefits determined and payable under the terms
     of the Plan as if a Distribution Event had not occurred. New Members of the
     Plan may elect in a time and manner determined by the Administrator, but in
     no event later than 90 days after becoming a Member, to have amounts and
     benefits determined and payable under the terms of the Plan as if a
     Distribution Event had not occurred. A Member 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.

          (e) Notwithstanding anything in the Plan to the contrary, each Member
     who has made an election under (d) above may elect within 90 days following
     a Distribution Event, in a time and manner determined by the Benefits Trust
     Committee, to receive a lump sum payment or, in the case of an Executive
     Stock Account, a distribution in shares of Company Stock, calculated under
     the provisions of (b) above determined as of the Valuation Date next
     preceding such payment, except that such calculated amount shall be reduced
     by an amount equal to such calculated amount, multiplied by the Mid-term
     Applicable Federal Rate determined as of the Valuation Date next preceding
     such payment and such reduction shall be irrevocably forfeited by the
     Member. Furthermore, as a result of such election, the Member shall no
     longer be eligible to participate or otherwise benefit from the Plan.
     Payments under this subsection (e) shall be made not later

                                       18

<PAGE>

     than 7 days following receipt by the Corporation of a Member's election.
     The Benefits Trust Committee shall, no later than 7 days after a
     Distribution Event has occurred, give written notification to each Member
     eligible to make an election under this subsection (e), that a Distribution
     Event has occurred and informing such Member of the availability of the
     election.

                           ARTICLE 9. FORM OF PAYMENT

     9.1  Timing of Distribution: Unless a Form of Payment Election is made
pursuant to Section 9.2 below,

          (a) a Member's Account shall be distributed to him, or in the event of
     his death to his Beneficiary, in a cash single sum payment as provided in
     Section 8.1.

          (b) a Member's Executive Stock Account shall be distributed to him, or
     in the event of his death to his Beneficiary, in a single distribution of
     shares as provided in Section 8.1.

     9.2 Form of Payment Election

          (a) A Member may make a Form of Payment Election to receive
     distribution of his Account or Executive Stock Account in semi-annual
     installments over a period not to exceed twenty (20) years. Installments
     shall be determined as of each January 15 and July 15 (or in the case of an
     Executive Stock Account, December 30 and June 30) and shall be paid as soon
     as administratively practicable thereafter. The amount of each installment
     shall equal the balance in the Account or Executive Stock Account as of the
     Valuation Date of determination, divided by the number of remaining
     installments (including the installment being determined). If a Member dies
     before payment of the entire balance of his Account or Executive Stock
     Account, the remaining balance shall be paid in a single sum to his
     beneficiary as soon as administratively practicable following his date of
     death. Lump sum payments shall be determined and paid as soon as
     administratively practicable following the date the Member incurs the
     distributable event elected on a Distribution Election under Section 8.2.

          (b) A Member may make a separate Form of Payment Election with respect
     to any portion of his Account for which a Partial Distribution Election has
     been made pursuant to Section 8.2(d).

          (c) A Member may change his Form of Payment Election at any time prior
     to a date that is six months prior to the date the distribution is to
     commence, after which time the Form of Payment Election shall be
     irrevocable.

     9.3  Installments and Withdrawals Pro-Rata: In the event of any payment
other than a single lump-sum, such as installment payment, partial distribution
or hardship withdrawal, such payment or withdrawal shall be made on a pro-rata
basis from the portions of the Member's existing Account balance which are
subject to different measures of investment performance.

                                       19

<PAGE>

                      ARTICLE 10. AMENDMENT OR TERMINATION

     10.1 Right to Terminate:

          (a) Prior to a Change of Control, the Board may, in its sole
     discretion, terminate this Plan and the related Deferral Agreements at any
     time. Following a Change of Control, this Plan may not be terminated
     without the approval of the Benefits Trust Committee.

          (b) Prior to a Change of Control, the Committee may terminate an
     Affiliated Company's participation as a Participating Company in this Plan
     for any reason at any time. Following a Change of Control, an Affiliated
     Company may not be terminated from participation as a Participating Company
     without the consent of the Benefits Trust Committee.

          (c) Prior to a Change of Control, an Affiliated Company's board of
     directors may terminate that Affiliated Company's participation as a
     Participating Company for any reason at any time. Following a Change of
     Control, an Affiliated Company's participation as a Participating Company
     may not be terminated without the consent of the Benefits Trust Committee.

          (d) In the event the Plan and related Deferral Agreements are
     terminated, each Member and Beneficiary shall receive a single sum payment,
     or, in the case of an Executive Stock Account, a distribution in shares of
     Company Stock equal to the balance in his Account or Executive Stock
     Account. The single sum payment shall be made as soon as practicable
     following the date the Plan is terminated and shall be in lieu of any other
     benefit which may be payable to the Member or beneficiary under this Plan.

     10.2 Right to Amend: Prior to a Change of Control, the Board may, in its
sole discretion, amend this Plan and the related Deferral Agreements and
Enrollment Forms on 30 days prior notice to the Members. Following a Change of
Control, all amendments to this Plan are subject to the approval of the Benefits
Trust Committee. If any amendment to this Plan or to the Deferral Agreements or
Enrollment Forms shall adversely affect the rights of a Member, such Member must
consent in writing to such amendment prior to its effective date. If such Member
does not consent to the amendment, the Plan and related Deferral Agreements and
Enrollment Forms shall be deemed to be terminated with respect to such Member
and he shall receive a single sum payment of his Account, or, in the case of an
Executive Stock Account, a distribution in shares of Company Stock, as soon
thereafter as is practicable. Notwithstanding the foregoing, the Administrator's
change in any investment funds or investment index under Section 7.2(b) or the
restriction of future deferrals under the salary deferral program or award
deferral program shall not be deemed to adversely affect any Member's rights.

     10.3 Uniform Action: Notwithstanding anything in the Plan to the contrary,
any action to amend or terminate the Plan or the Deferral Agreements or
Enrollment Forms must be taken in a uniform and nondiscriminatory manner.
Notwithstanding the preceding, any such action taken by the Administrator
following a Change of Control is subject to the approval of the Benefits Trust
Committee.

                                       20

<PAGE>

                         ARTICLE 11. GENERAL PROVISIONS

     11.1 No Funding: Nothing contained in this Plan or in a Deferral Agreement
shall cause this Plan to be a funded retirement plan. Neither the Member, his
beneficiary, contingent beneficiaries, heirs or personal representatives shall
have any right, title or interest in or to any funds of the Trust or the
Affiliated Companies on account of this Plan or on account of having completed a
Deferral Agreement or Enrollment Form. The assets held in the Trust shall be
subject to the claims of creditors of the Corporation, and the Trust's assets
shall be used to discharge said claims in the event of the Corporation's
insolvency. Each Member shall have the status of a general unsecured creditor of
the Affiliated Companies and this Plan constitutes a mere promise by the
Affiliated Companies to make benefit payments in the future.

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

     11.3 No Contract of Employment: The existence of this Plan, a Deferral
Agreement or an Enrollment Form does not constitute a contract for continued
employment between an Eligible Executive or a Member and an Affiliated Company.
The Affiliated Companies reserve the right to modify an Eligible Executive's or
Member's remuneration and to terminate an Eligible Executive or a Member for any
reason and at any time, notwithstanding the existence of this Plan, a Deferral
Agreement or an Enrollment Form.

     11.4 Withholding Taxes: All applicable FICA, RRTA or other employment taxes
due on deferrals under this Plan shall be withheld from non-deferred salary,
Awards or other earnings. All payments under this Plan shall be net of an amount
sufficient to satisfy any federal, state or local income tax withholding
requirements.

     11.5 Nonalienation: The right to receive any benefit under this Plan may
not be transferred, assigned, pledged or encumbered by a Member, beneficiary or
contingent beneficiary in any manner and any attempt to do so shall be void. No
such benefit shall be subject to garnishment, attachment or other legal or
equitable process without the prior written consent of the Affiliated Companies.
Notwithstanding the preceding, following a Change of Control, the Administrator
shall not implement such action without the consent of the Benefits Trust
Committee.

     11.6 Administration:

          (a) Prior to a Change of Control, the Administrator of the Plan 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 and conditions of the Plan.

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

          (c) The Administrator shall have sole and absolute discretion to
     interpret the Plan, determine eligibility for and benefits due hereunder.
     Decisions of the Administrator regarding benefits under the Plan shall at
     all times be binding and conclusive on Members, their beneficiaries, heirs
     and assigns. Notwithstanding the preceding, following a Change of Control,
     final benefit determinations for Members,

                                       21

<PAGE>

     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 and absolute discretion.

          (d) Prior to paying any benefit under this Plan, the Administrator may
     require the Member, beneficiary or contingent beneficiary to provide such
     information or material as the Administrator, in its sole discretion, shall
     deem necessary for it to make any determination it may be required to make
     under this Plan. The Administrator may withhold payment of any benefit
     under this Plan until it receives all such information and material and is
     reasonably satisfied of its correctness and genuineness. The Administrator
     shall provide adequate notice in writing to any Member, beneficiary or
     contingent beneficiary whose claim for benefits under this Plan has been
     denied, setting forth the specific reasons for such denial. A reasonable
     opportunity shall be afforded to any such Member, beneficiary or contingent
     beneficiary for a full and fair review by the Administrator of its decision
     denying the claim. The Administrator's decision on any such review shall be
     final and binding on the Member, beneficiary or contingent beneficiary and
     all other interested persons. All acts and decisions of the Administrator
     shall be final and binding upon all Members, beneficiaries, contingent
     beneficiaries and employees of the Affiliated Companies. Notwithstanding
     the preceding, following a Change of Control, any and all decisions by the
     Administrator are subject to the approval of the Benefits Trust Committee.

          (e) Prior to a Change of Control, the Committee in its sole discretion
     and upon such terms as it may prescribe, may permit any company or
     corporation directly or indirectly controlled by the Corporation to
     participate in the Plan. After a Change of Control, such permission must be
     approved by the Benefits Trust Committee.

     11.7 Impact of Future Legislation or Regulation

          (a) This Section 11.7 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 Member to include in his or
     her federal gross income amounts accrued by the Member 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 Member that would
     cause the Early Taxation Event shall be null and void, to the extent, and
     only to the extent, required to prevent the Member from being required to
     include in his federal gross income amounts accrued by the Member 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 Member to
     include in his or her federal gross income amounts accrued by the Member
     under the Plan prior to the date on

                                       22

<PAGE>

     which such amounts are made available to him or her because of the Member's
     right to receive a distribution of a portion of his Account under Section
     8.5, the right of all Members to receive distributions under Section 8.5
     shall be null and void as of the effective date of that statute. If only a
     portion of a Member'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 Members who have a
     certain status with respect to the Company, then only such Members shall be
     subject to this Section.

          (c) Notwithstanding Section 11.7(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 or enactment or promulgation.

     11.8 Construction:

          (a) The Plan is intended to constitute an unfunded deferred
     compensation arrangement for a select group of management or highly
     compensated employees and all rights hereunder shall be governed by and
     construed in accordance with the laws of the Commonwealth of Virginia to
     the extent not preempted by federal law.

          (b) The masculine pronoun means the feminine wherever appropriate.

          (c) The captions inserted herein are inserted as a matter of
     convenience and shall not affect the construction of the Plan.

                                       23<PAGE>

             SUPPLEMENTARY SAVINGS AND INCENTIVE AWARD DEFERRAL PLAN
                           FOR ELIGIBLE EXECUTIVES OF
                    CSX CORPORATION AND AFFILIATED COMPANIES

                     As Amended and Restated January 1, 1995
                     (As Amended through February 14, 2001)
                       (As Amended effective May 1, 2002)

<PAGE>

<TABLE>
<CAPTION>
                                                                           Page
                                                                           ----
<S>                                                                        <C>
ARTICLE 1.  DEFINITIONS...................................................    1
     1.1     Account......................................................    1
     1.2     Administrator................................................    1
     1.3     Affiliated Company...........................................    1
     1.4     Award........................................................    1
     1.5     Award Deferral Agreement.....................................    1
     1.6     Benefits Trust Committee.....................................    2
     1.7     Board of Directors...........................................    2
     1.8     Change of Control............................................    2
     1.9     Code.........................................................    3
     1.10    Committee....................................................    3
     1.11    Compensation.................................................    3
     1.12    Corporation..................................................    3
     1.13    Deferral Agreement...........................................    3
     1.14    Distribution Option(s).......................................    4
     1.15    Divisive Transaction.........................................    4
     1.16    Effective Date...............................................    4
     1.17    Eligible Executive...........................................    4
     1.18    Independent Accountant.......................................    4
     1.19    Matching Credits.............................................    4
     1.20    Member.......................................................    4
     1.21    MICP.........................................................    4
     1.22    Participating Company........................................    4
     1.23    Plan.........................................................    5
     1.24    Salary Deferrals.............................................    5
     1.25    Salary Deferral Agreement....................................    5
     1.26    Salary Deferral Percentage...................................    5
     1.27    SMICP........................................................    5
     1.28    Subsidiary...................................................    5
     1.29    Tax Savings Thrift Plan......................................    5
     1.30    Trust........................................................    5
     1.31    Valuation Date...............................................    5

ARTICLE 2.  MEMBERSHIP AND DEFERRAL AGREEMENTS............................    5
     2.1     In General...................................................    5
     2.2     Modification of Initial Deferral Agreement...................    6
     2.3     Termination of Membership; Re-employment.....................    6
     2.4     Change in Status.............................................    7
     2.5     Membership Following a Change in Control.....................    7

ARTICLE 3.  AWARD DEFERRAL PROGRAM........................................    7
     3.1     Filing Requirements..........................................    7
     3.2     Amount of Deferral...........................................    8
     3.3     Crediting to Account.........................................    8
</TABLE>

                                      -i-

<PAGE>

<TABLE>
<S>                                                                              <C>
ARTICLE 4.  SALARY DEFERRAL PROGRAM..........................................     9
     4.1     Filing Requirements.............................................     9
     4.2     Salary Deferral Agreement.......................................     9
     4.3     Amount of Salary Deferrals......................................     9
     4.4     Changing Salary Deferrals.......................................    10
     4.5     Certain Additional Credits......................................    10

ARTICLE 5.  MAINTENANCE OF ACCOUNTS..........................................    11
     5.1     Adjustment of Account...........................................    11
     5.2     Investment Performance Elections................................    12
     5.3     Changing Investment Elections...................................    12
     5.4     Vesting of Account..............................................    12
     5.5     Individual Accounts.............................................    13
     5.6     Action Following a Change of Control............................    13

ARTICLE 6.  PAYMENT OF BENEFITS..............................................    13
     6.1     Commencement of Payment.........................................    13
     6.2     Method of Payment...............................................    15
     6.3     Applicability...................................................    16
     6.4     Hardship Withdrawal.............................................    16
     6.5     Designation of Beneficiary......................................    16
     6.6     Special Distribution Rules......................................    17
     6.7     Status of Account Pending Distribution..........................    17
     6.8     Installments and Withdrawals Pro-Rata...........................    17
     6.9     Change of Control...............................................    18

ARTICLE 7.  AMENDMENT OR TERMINATION.........................................    19
     7.1     Right to Terminate..............................................    19
     7.2     Right to Amend..................................................    19
     7.3     Uniform Action..................................................    20

ARTICLE 8.  GENERAL PROVISIONS...............................................    20
     8.1     No Funding......................................................    20
     8.2     Obligation......................................................    20
     8.3     No Contract of Employment.......................................    20
     8.4     Withholding Taxes...............................................    20
     8.5     Nonalienation...................................................    20
     8.6     Administration..................................................    20
     8.7     Construction....................................................    21

ARTICLE 9.  POST-SECONDARY EDUCATION SUB-ACCOUNTS............................    21
     9.1     Post-Secondary Education Sub-accounts...........................    21
     9.2     Distribution of Post-Secondary Education Sub-accounts...........    22
     9.3     Construction....................................................    23
</TABLE>

                                      -ii-

<PAGE>

                                  INTRODUCTION

     This Supplementary Savings and Incentive Award Deferral Plan for Eligible
Executives of CSX Corporation and Affiliated Companies (the "Plan") was adopted
October 1, 1987 and has been subsequently amended from time to time. This
restatement of the Plan is effective January 1, 1995. This Plan is generally
intended to provide certain executives eligible to participate in the Tax
Savings Thrift Plan for Employees of CSX Corporation and Affiliated Companies
(the "Savings Plan") with an opportunity to defer a portion of their salary,
and/or award(s) under the Management Incentive Compensation Program ("MICP")
and/or the Senior Management Incentive Compensation Program ("SMICP") until
their retirement or other termination of employment and to restore employer
matching contributions lost under the Savings Plan because of the application of
Sections 401(a)(17), 401(k), 401(m) and 415 of the Internal Revenue Code of
1986, as amended. Commencing with respect to MICP awards paid and salary earned
after 1990, eligible executives may, if they so elect, designate all or a
portion of such deferrals to be used for payment of education expenses for one
or more members of their families. The Plan is unfunded and is maintained by CSX
Corporation and Affiliated Companies primarily for the purpose of providing
deferred compensation for a select group of management or highly-compensated
employees. The Plan as restated effective January 1, 1995 (and amended through
December 31, 1997) reads as hereinafter set forth.

                             ARTICLE I. DEFINITIONS

     1.1  Account means the bookkeeping account maintained for each Member to
record his Salary Deferrals, Matching Credits and the amount of Awards he has
elected to defer, as adjusted pursuant to Article 5. The Account shall consist
of the "Education Sub-accounts", if any, established pursuant to Article 9 and
all amounts not in those accounts shall be allocated to one or more "Retirement
Sub-accounts". The Administrator may establish a maximum number of "Retirement
Sub-accounts" which a Member may have at any time. In addition to any Retirement
Sub-accounts established by the Administrator, an additional Retirement
Sub-account known as the Cash Plan Retirement Sub-account shall be established
for deferrals of payments from the CSX Market Value Cash Plan. The Administrator
also may establish such other sub-accounts within a Member's Account as it deems
necessary to implement the provisions of the Plan.

     1.2  Administrator means the Corporation. The duties of the Administrator
shall be performed by a person or persons designated by the Chief Executive
Officer of the Corporation to perform such duties.

     1.3  Affiliated Company means the Corporation and any company or
corporation directly or indirectly controlled by the Corporation.

     1.4  Award means for any year (i) the amount awarded to an employee of an
Affiliated Company for that year (including any special incentive award) and, in
the absence of an Award Deferral Agreement with respect to such amount, payable
in the succeeding year under the MICP and/or SMICP or other incentive award
otherwise payable in cash as determined by the Committee; and (ii) the amount
paid from the CSX Market Value Cash Plan with respect to such

                                      -1-

<PAGE>

year and, in the absence of an Award Deferral Agreement with respect to such
amount and with respect to such year, payable in cash under the CSX Market Value
Cash Plan.

     1.5  Award Deferral Agreement means a Deferral Agreement filed in
accordance with the award deferral program described in Article 3.

     1.6  Benefits Trust Committee means the committee created pursuant to the
CSX Corporation and Affiliated Companies Benefits Assurance Trust Agreement.

     1.7  Board of Directors or "Board" means the Board of Directors of the
Corporation.

     1.8  Change of Control means any of the following:

          (a) 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 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 (i) the then outstanding shares
     of common stock of the Corporation (the "Outstanding Corporation Common
     Stock"), or (ii) 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 (a), the following
     acquisitions shall not constitute a Change of Control: (i) any acquisition
     directly from the Corporation; (ii) any acquisition by the Corporation;
     (iii) any acquisition by any employee benefit plan (or related trust)
     sponsored or maintained by the Corporation or any corporation controlled by
     the Corporation; or (iv) any acquisition by any corporation pursuant to a
     transaction which complies with clauses (i), (ii) and (iii) of subsection
     (c) of this Section 1.8; or

          (b) 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

          (c) 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:

                                      -2-

<PAGE>

               (i)   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;

               (ii)  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

               (iii) 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

          (d)  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 (i),
     (ii) and (iii) of subsection (c) of this Section 1.8; or

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

     1.9  Code means the Internal Revenue Code of 1986, as amended from time to
time.

     1.10 Committee means the Compensation Committee of the Board of Directors
of CSX Corporation.

                                      -3-

<PAGE>

     1.11 Compensation means the "Base Compensation" of an Eligible Executive as
defined in the Tax Savings Thrift Plan, determined prior to: (a) any Salary
Deferrals under Article 4; and (b) any limit on compensation imposed by Section
401(a)(17) of the Code.

     1.12 Corporation means CSX Corporation, a Virginia corporation, and any
successor thereto by merger, purchase or otherwise.

     1.13 Deferral Agreement means either an Award Deferral Agreement or a
Salary Deferral Agreement, or both if the context so requires. A Deferral
Agreement shall be a completed agreement between an Eligible Executive and a
Participating Company of which he is an employee under which the Eligible
Executive agrees to defer an Award or make Salary Deferrals under the Plan, as
the case may be. The Deferral Agreement shall be on a form prescribed by the
Administrator and shall include any amendments, attachments or appendices.

     1.14 Distribution Event means any of the events listed in Section 1.8,
"Change of Control," with the following modification: the words, "Approval by
the shareholders of the Corporation of," in the first line of Sections 1.8(c)
and 1.8(d) are replaced for purposes of this Section 1.14 with the words,
"Consummation of, i.e., actual change in ownership of Outstanding Corporation
Common Stock, Outstanding Corporation Voting Stock, and/or assets of the
Corporation or its principal subsidiary by reason of,".

     1.15 Distribution Option(s) means, with respect to each sub-account under
the Plan, the election by the Member of (i) the event triggering the
commencement of distribution, and (ii) the form of payment. Distribution Option
elections are made on the initial Deferral Agreement with respect to any
sub-account.

     1.16 Divisive Transaction means a transaction in which the Eligible
Executive's employer ceases to be a Subsidiary or there is a sale of
substantially all of the assets of the Subsidiary.

     1.17 Effective Date means October 1, 1987 or with respect to the Eligible
Executives of a company which adopts the Plan, it means the date such company
becomes a Participating Company.

     1.18 Eligible Executive means an employee of a Participating Company,
provided that:

          (a)  For purposes of the award deferral program described in Article
     3:

               (i)   prior to January 1, 1995, such employee is employed by a
                     Participating Company in salary grades 21 through 40
                     inclusive, as of December 30 of the calendar year in
                     question; or

               (ii)  on and after January 1, 1995 and before January 1, 1999,
                     such employee: (A) is employed by a Participating Company
                     and is receiving Compensation of one hundred thousand
                     dollars

                                      -4-

<PAGE>

                     ($100,000) or more per year; or (B) retired from the
                     Participating Companies or terminated employment with the
                     Participating Companies on account of disability as
                     determined by the Administrator, and was receiving
                     compensation of one hundred thousand dollars ($100,000) or
                     more per year at the time of such retirement or
                     termination; or

               (iii) on and after January 1, 1999, such employee: (A) is
                     employed by a Participating Company and is receiving
                     compensation of one hundred twenty five thousand dollars
                     ($125,000) or more per year; or (B) retired from the
                     Participating Companies or terminated employment with the
                     Participating Companies on account of disability as
                     determined by the Administrator, and was receiving
                     Compensation of one hundred twenty five thousand dollars
                     ($125,000) or more per year at the time of such retirement
                     or termination. An employee who, in 1998, was eligible to
                     participate because his Compensation satisfied the
                     requirements of subsection (ii), and is excluded from
                     participation only because of the increase in the
                     Compensation requirement in this subsection (iii), shall
                     continue to be eligible to participate.

          (b)  For purposes of the salary deferral program described in Article
          4, such employee is eligible for membership in the Tax Savings Thrift
          Plan,and;

               (i)   Prior to January 1, 1995, such employee is employed in
                     salary grades 21 through 40 inclusive; or

               (ii)  Compensation of one hundred thousand dollars ($100,000) or
                     more per year; or

               (iii) on and after January 1, 1999, is receiving Compensation of
                     one hundred twenty five thousand dollars ($125,000) or more
                     per year. An employee who, in 1998, was eligible to
                     participate because his Compensation satisfied the
                     requirements of subsection (ii), but is excluded from
                     participation only because of the increase in the
                     Compensation requirement in this subsection (iii), shall
                     continue to be eligible to participate.

          (c)  After January 1, 1999, the compensation amount set forth in
     subsections (a)(iii) and (b)(iii) may, in the discretion of the Chief

                                      -5-

<PAGE>

               Executive Officer, be adjusted no more frequently than annually,
               based on a review of data regarding eligibility to participate in
               this type of program.

          (d)  The Chief Executive Officer of the Corporation or his designee
               may designate any other employee or former employee of an
               Affiliated Company as an Eligible Executive; provided, however,
               only those employees or former employees considered to be a
               select group of management or highly compensated may be
               designated as Eligible Executives under this Plan.
               Notwithstanding the preceding, following a Change of Control,
               such designations are subject to the approval of the Benefits
               Trust Committee.

     1.19 Independent Accountant means the independent accountants engaged by
the Corporation and, if selected or changed following a Change of Control,
approved by the Benefits Trust Committee.

     1.20 Matching Credits means amounts credited to the Account of a Member
pursuant to Section 4.5.

     1.21 Member means, except as otherwise provided in Article 2, each Eligible
Executive who has executed an initial Deferral Agreement as described in Section
2.1.

     1.22 MICP means the Participating Companies' Management Incentive
Compensation Program.

     1.23 Participating Company means the Corporation and any company or
corporation directly or indirectly controlled by the Corporation, which the
Committee designates as eligible to participate in the Plan in accordance with
Section 8.6(e).

     1.24 Plan means this Supplementary Savings and Incentive Award Deferral
Plan for Eligible Executives of CSX Corporation and Affiliated Companies, as
amended from time to time.

     1.25 Salary Deferrals means the amounts credited to a Member's Account
under Section 4.3.

     1.26 Salary Deferral Agreement means a Deferral Agreement filed in
accordance with the salary deferral program described in Article 4.

     1.27 Salary Deferral Percentage means a percentage of an Eligible
Executive's Base Compensation elected in a Salary Deferral Agreement, pursuant
to Section 4.1 hereof, and shall be an integral percentage not in excess of
fifty (50%) percent.

     1.28 SMICP means the Participating Companies' Senior Management Incentive
Compensation Program.

                                      -6-

<PAGE>

     1.29 Subsidiary means a corporation more than 50% of the voting shares of
which are owned directly or indirectly by the Corporation.

     1.30 Tax Savings Thrift Plan means the Tax Savings Thrift Plan for
Employees of CSX Corporation and Affiliated Companies, as amended from time to
time.

     1.31 Trust means the CSX Corporation and Affiliated Companies Benefits
Assurance Trust.

     1.32 Valuation Date means the last business day of each calendar month
following the Effective Date.

                  ARTICLE 2. MEMBERSHIP AND DEFERRAL AGREEMENTS

     2.1  In General:

          (a)  An Eligible Executive shall become a Member as of the date he
     files his initial Deferral Agreement with the Administrator. However, such
     Deferral Agreement shall be effective for purposes of deferring an Award or
     making Salary Deferrals only as provided in Articles 3 and 4.

          (b)  A Deferral Agreement shall be in writing and properly completed
     upon a form approved by the Administrator, which shall be the sole judge of
     the proper completion thereof. Except as provided in Section 4.1(d), such
     Agreement shall provide for the deferral of an Award or for Salary
     Deferrals, shall specify the Distribution Options, and may include such
     other provisions as the Administrator deems appropriate. A Deferral
     Agreement shall not be revoked or modified with respect to the allocation
     of prior deferrals except pursuant to the establishment of an Education
     Sub-account as provided in Article 9. Distribution Options elected may not
     be modified or revoked except as provided in Section 6.1 or 6.2.

          (c)  As a condition of membership, the Administrator may require such
     other information as it deems appropriate.

     2.2  Modification of Initial Deferral Agreement:

          (a)  A Member may elect to change, modify or revoke a Deferral
     Agreement as follows:

               (i)   A Member may change the amount of Award he elects to defer
                     on an Award Deferral Agreement prior to the Agreement's
                     effective date as provided in Article 3.

               (ii)  A Member may change the rate of his Salary Deferrals, or
                     suspend his Salary Deferrals on account of severe financial
                     hardship, as provided in Article 4.

                                      -7-

<PAGE>

               (iii) A Member may change the event entitling him to
                     distribution, as designated on his election of Distribution
                     Options, as provided in Section 6.1(c)(i).

               (iv)  A Member may change the event entitling him to distribution
                     as designated on his election of Distribution Options,
                     subject to the five percent (5%) penalty described in
                     Section 6.1(c)(ii).

               (v)   A Member may change the form of payment, as designated on
                     his election of Distribution Options, as provided in
                     Section 6.2(c)(i).

               (vi)  A Member may change the form of payment as designated on
                     his election of Distribution Options, subject to the five
                     percent (5%) penalty described in Section 6.2(c)(ii).

          (b)  Notwithstanding any provision in Section 2.2(a) to the contrary,
     the establishment of an Education Sub-account with respect to future Salary
     Deferrals and Awards as provided in Article 9 shall not be deemed a change
     for the purposes of Section 2.2(a).

     2.3  Termination of Membership; Re-employment:

          (a)  Membership shall cease, subject to Section 2.4, upon a Member's
     termination of employment; provided that if a former Eligible Executive is
     receiving severance payments under a Participating Company's severance pay
     program or is eligible to defer an Award under Article 3, he shall not be
     deemed to have terminated employment until the later of the date the
     severance payments cease or the date the Award would have been paid.
     Membership shall be continued during a leave of absence approved by the
     Participating Companies.

          (b)  Upon re-employment as an Eligible Executive, a former Member may
     become a Member again as follows:

               (i)   in the case of a former Member who prior to re-employment
                     received the balance in his Account, by executing a
                     Deferral Agreement under Section 2.1 as though for all
                     purposes of the Plan the Affiliated Companies had never
                     employed the former Member;

               (ii)  in the case of a former Member who prior to re-employment
                     did not receive the balance in his Account, by executing a
                     Deferral Agreement under Section 2.1; provided his
                     Distribution Options and beneficiary designation shall
                     remain in effect.

          (c)  If a former Member is reemployed as an Eligible Executive and
     becomes a Member again pursuant to (b)(ii): (i) upon notice to the
     Administrator by the Participant, distributions from a Retirement
     Sub-account shall cease if the commencement of distribution was because of
     the Member's termination of employment (including

                                      -8-

<PAGE>

     retirement); (ii) distributions from a Retirement Sub-account shall
     continue if the commencement of distribution was because the Member chose a
     specific age for the commencement of benefits and that age has been
     attained. Except for distributions which must continue pursuant to (c)(ii),
     a reemployed Member may change Distribution Option elections with respect
     to his Retirement Sub-accounts without penalty so long as such change does
     not accelerate the timing of any payment to the Member.

     2.4  Change in Status:

          (a)  In the event that a Member ceases to be an Eligible Executive
     with respect to Salary Deferrals but continues to be employed by an
     Affiliated Company, his Salary Deferrals and Matching Credits shall
     thereupon be suspended until such time as he shall once again become an
     Eligible Executive. All other provisions of his Salary Deferral Agreement
     shall remain in force and he shall continue to be a Member of the Plan.

          (b)  In the event that a Member ceases to be an Eligible Executive
     with respect to the deferral of Awards hereunder but continues to be
     employed by an Affiliated Company, he shall continue to be a Member of the
     Plan but shall not be eligible to defer any portion of any future Awards
     until such time as he shall once again become an Eligible Executive.

     2.5  Membership Following a Change of Control: Following a Change of
Control, any membership determinations or discretionary actions pursuant to this
Article 2 shall be subject to the approval of the Benefits Trust Committee.

                        ARTICLE 3. AWARD DEFERRAL PROGRAM

     3.1  Filing Requirements:

          (a)  With respect to an Award identified in Section 1.4(i), at such
     time as the Administrator may prescribe prior to the close of business on
     December 30 in any calendar year, an Eligible Executive may elect to defer
     all or a portion of his Award, if any, for that year. Such Award is
     determined and paid in the following calendar year. Such election shall be
     made by filing an Award Deferral Agreement with the Administrator on or
     before the close of business on December 30 of the calendar year for which
     the Award is made. In the event that December 30 does not fall on a
     weekday, such filing must be made by the close of business on the last
     prior business day.

          (b)  With respect to an Award identified in Section 1.4(i),
     notwithstanding Section 3.1(a), an individual who becomes an Eligible
     Executive after the calendar year for which an Award is made, but prior to
     the first day of the month in which such Award is determined including
     required action by the Board, may elect to defer all or a portion of that
     Award in accordance with this Section 3.1(b). Such election shall be made
     by filing an Award Deferral Agreement during the 30 day or shorter period
     beginning on the date the individual becomes an Eligible Executive and
     ending no later than the last day of the month preceding the month in which
     the Award is determined.

                                      -9-

<PAGE>

          (c)  With respect to an Award identified in Section 1.4(i), an
     Eligible Executive's election to defer all or a portion of his Award shall
     be effective on the last day that such deferral may be elected under
     Section 3.1(a) or 3.1(b) and shall be effective only for the Award in
     question. An Eligible Executive may revoke or change his election to defer
     all or a portion of his Award at any time prior to the date the election
     becomes effective, as described in the preceding sentence. Any such
     revocation or change shall be made in a form and manner determined by the
     Administrator.

          (d)  With respect to an Award identified in Section 1.4(ii), at such
     time and in accordance with such rules as the Administrator may prescribe
     prior to the close of business on December 30 in any calendar year, an
     Eligible Executive may elect to defer all or a portion of any such Award.
     Awards identified in Section 1.4(ii) may not be deferred into Education
     Sub-accounts.

          (e)  An Eligible Executive shall not be entitled to defer an Award on
     or after attaining the age, if any, which he has designated under Section
     6.1(c) or 6.1(d) for the purpose of commencing distribution of his Account
     (or, if applicable, his Retirement Sub-account). In the event a Member
     establishes an Education Sub-account pursuant to Article 9, he shall not be
     entitled to defer all or any portion of an Award into such a Sub-account
     after attaining the age which he has designated for the purpose of
     commencing distribution from that Sub-account.

          (f)  An Eligible Executive shall not be entitled to defer an Award if
     he is eligible to defer his award under another nonqualified program of
     deferred compensation maintained by an Affiliated Company.

     3.2  Amount of Deferral:

          (a)  With respect to an Award identified in Section 1.4(i), prior to a
     Change of Control, in its sole discretion, the Committee may establish such
     maximum limit on the amount of Award an Eligible Executive may defer for a
     calendar year as the Committee deems appropriate. Such maximum limit shall
     appear on the Eligible Executive's Award Deferral Agreement for the year.
     Following a Change of Control, the Committee's decision is subject to the
     final approval of the Benefits Trust Committee.

          (b)  With respect to an Award identified in Section 1.4(i), the
     minimum amount which an Eligible Executive may defer in any year shall be
     the lesser of $5,000 or the maximum amount determined under Section 3.2(a)
     above. If an Eligible Executive elects to defer less than this amount, his
     election shall not be effective.

          (c)  With respect to an Award identified in Section 1.4(ii), there
     shall be no minimum nor maximum amount of deferral allowed.

     3.3  Crediting to Account:

                                      -10-

<PAGE>

          (a)  The amount of Award which an Eligible Executive has elected to
     defer for a calendar year shall be credited to his Account as of the
     Valuation Date coincident with or next following the date the Award would
     have been paid to the Eligible Executive.

          (b)  An additional credit shall be made to the Account as of the
     Valuation Date described in Section 3.3(a) above, determined as if the
     amount of Award deferred had earned the same rate of return as the CSX Cash
     Pool Earnings Rate from the date the Award would have been paid until the
     Valuation Date it is credited to the Eligible Executive's Account. In lieu
     of the CSX Corporation Cash Pool Earnings Rate, the Committee may
     designate, prior to a Change of Control, from time to time, such other
     indices of investment performance or investment funds as the measure of
     investment performance under this Section 3.3(b). Following a Change of
     Control, the Committee's decision is subject to final approval of the
     Benefits Trust Committee.

                       ARTICLE 4. SALARY DEFERRAL PROGRAM

     4.1  Filing Requirements:

          (a)  An individual who is an Eligible Executive immediately prior to
     the Effective Date may file a Salary Deferral Agreement with the
     Administrator, within such period prior to the Effective Date and in such
     manner as the Administrator may prescribe.

          (b)  An individual who becomes an Eligible Executive on or after the
     Effective Date may file a Salary Deferral Agreement with the Administrator
     during the calendar month he becomes an Eligible Executive, in such manner
     as the Administrator may prescribe.

          (c)  An Eligible Executive who fails to file a Salary Deferral
     Agreement with the Administrator as provided in Sections 4.1(a) and 4.1(b)
     may file a Salary Deferral Agreement in any subsequent month of December.

          (d)  An Eligible Executive who has not otherwise filed a Deferral
     Agreement shall file a Salary Deferral Agreement under Sections 4.1(a) or
     4.1(b), whichever applies, in order to receive the Matching Credits
     described in Section 4.5, provided that such agreement need not provide for
     Salary Deferrals.

     4.2  Salary Deferral Agreement: An Eligible Executive's Salary Deferral
Agreement shall authorize a reduction in his base pay with respect to his Salary
Deferrals under the Plan. The Agreement shall be effective for payroll periods
beginning on or after the later of: (a) the Effective Date; or (b) the first day
of the month following the date the Salary Deferral Agreement is filed with the
Administrator in accordance with Section 4.1. Paychecks applicable to said
payroll periods shall be reduced accordingly.

     4.3  Amount of Salary Deferrals:

                                      -11-

<PAGE>

          (a)  On each Valuation Date following the effective date of an
     Eligible Executive's Salary Deferral Agreement, his Sub-accounts shall be
     credited with an amount of Salary Deferral, if any, for the payroll period
     ending thereon, as he elects in his Salary Deferral Agreement. Such Salary
     Deferral for any payroll period shall be determined as the sum of his Basic
     Salary Deferral for such payroll period determined under subparagraph (i)
     and his Additional Salary Deferral for such month, determined under
     subparagraph (ii) as follows:

               (i)   An Eligible Executive's Basic Salary Deferral shall be
                     determined by multiplying his Compensation for a payroll
                     period by the excess of his Salary Deferral Percentage over
                     the percentage determined in subparagraph (ii) below

               (ii)  An Eligible Executive's Additional Salary Deferral shall be
                     determined by multiplying his Compensation for a payroll
                     period by a percentage determined as (A) the excess of his
                     Salary Deferral Percentage over 15%, divided by (B) .85.

     provided, however, that no Basic Salary Deferral shall be made under this
     Plan for any payroll period unless the Eligible Executive is prevented from
     making elective deferrals under the Tax Savings Thrift Plan for such
     payroll period as a result of Section 402(g) and/or 401(k)(3) of the Code,
     and provided further that, for the payroll period in which such Basic
     Salary Deferral is first made, it shall be limited to the excess of the
     amount otherwise determined for such payroll period under Section 4.3(a)(i)
     over the Eligible Executive's elective deferrals under the Tax Savings
     Thrift Plan for such payroll period. If applicable, Additional Salary
     Deferrals shall be made for each payroll period of the year to which the
     Salary Deferral Agreement applies, without regard to whether the Eligible
     Executive makes elective deferrals under the Tax Savings Thrift Plan and
     without regard to any Basic Salary Deferrals under this Plan.

          (b)  An Eligible Executive shall not be entitled to make Salary
     Deferrals on or after attaining the age, if any, which he has designated
     under Section 6.1(c) or 6.1(d) for the purpose of commencing distribution
     of his Account (or, if applicable, his Retirement Sub-account). In the
     event a Member establishes an Education Sub-account pursuant to Article 9,
     he shall not be entitled to make Salary Deferrals into such Sub-account
     after attaining the age which he has designated for the purpose of
     commencing distribution from that Sub-account.

                                      -12-

<PAGE>

     4.4  Changing Salary Deferrals:

          (a)  An Eligible Executive's election on his Salary Deferral Agreement
     of the rate at which he authorizes Salary Deferrals under the Plan shall
     remain in effect in subsequent calendar years unless he files with the
     Administrator an amendment to his Salary Deferral Agreement modifying or
     revoking such election. The amendment shall be filed by December 30 and
     shall be effective for payroll periods beginning on or after the following
     January 1.

          (b)  Notwithstanding Section 4.4(a), an Eligible Executive may, in the
     event of a severe financial hardship, request a suspension of his Salary
     Deferrals under the Plan. The request shall be made at a time and in a
     manner determined by the Administrator, and shall be effectiveas of such
     date as the Administrator prescribes. The Administrator shall apply
     standards, to the extent applicable, identical to those described in
     Section 6.3 in making its determination. The Eligible Executive may apply
     to the Administrator to resume his Salary Deferrals with respect to payroll
     periods beginning on or after the January 1 following the date of
     suspension, at a time and in a manner determined by the Administrator;
     provided, that the Administrator shall approve such resumption only if the
     Administrator determines that the Eligible Executive is no longer incurring
     such hardship. Notwithstanding the preceding, following a Change of
     Control, such action by the Administrator is subject to approval by the
     Benefits Trust Committee.

     4.5  Certain Additional Credits:

     On each Valuation Date, there shall be credited Matching Credits to the
Retirement Sub-account(s) of an Eligible Executive determined as follows:

          (a)  For payroll periods prior to the inception of Basic Salary
     Deferrals hereunder, the greater of (b)(i) or (ii)

          (b)  For payroll periods during which Basic Salary Deferrals are
     effective, the greater of (i) or (iii), minus (iv), where

               (i)   is the employer matching contributions the Eligible
                     Executive would have received under the Tax Savings Thrift
                     Plan if the provisions of Sections 401(k)(3), 401(m)(9) and
                     415 of the Code had not applied to the Tax Savings Thrift
                     Plan; and

               (ii)  is an amount determined as 3% of the Eligible Executive's
                     additional Salary Deferrals; and

               (iii) is the employer matching contributions the Eligible
                     Executive would have received under the Tax Savings Thrift
                     Plan if his deferrals under this Plan had been contributed
                     to the Tax Savings Thrift Plan (in addition to those
                     amounts actually contributed to that Plan), based on
                     "Compensation" as defined in this Plan and as if the

                                      -13-

<PAGE>

                     provisions of Sections 401(a)(17), 401(k)(3), 401(m)(2),
                     401(m)(9) and 415 of the Code had not applied to the Tax
                     Savings Thrift Plan; and

               (iv)  is the employer matching contributions made on his behalf
                     for the applicable period to the Tax Savings Thrift Plan.

     No Matching Credits shall be credited to a Member's Education Sub-account.

                       ARTICLE 5. MAINTENANCE OF ACCOUNTS

     5.1  Adjustment of Account:

          (a)  For purposes of Section 5.1(a), the portion of a Member's
     Retirement Sub-accounts attributable to Matching Credits shall be credited
     or debited with earnings or losses based upon the performance of "Fund E"
     (CSX Stock Fund) under the Tax Savings Thrift Plan. Subsequent to the
     crediting of the Matching Credits, a Member and, if applicable, former
     Member, may reallocate the current balance of his Matching Credits under
     Section 5.3 (b), below.

          (b)  The Administrator shall designate at least one investment fund or
     index of investment performance and may designate other investment funds or
     investment indices to be used to measure the investment performance of
     Accounts. The designation of any such investment funds or indices shall not
     require the Affiliated Companies to invest or earmark their general assets
     in any specific manner. The Administrator may change the designation of
     investment funds or indices from time to time, in its sole discretion, and
     any such change shall not be deemed to be an amendment affecting Members'
     or former Members' rights under Section 7.2.

          (c)  For purposes of Section 5.1(a), the portion of a Member's
     Retirement Sub-accounts attributable to Matching Credits shall be credited
     or debited with earnings or losses based upon the performance of "Fund E"
     (CSX Stock Fund) under the Tax Savings Thrift Plan.

          (d)  As of February 1, 1989, there shall be credited to the Account of
     each Eligible Executive who participated in the Supplemental Benefit Plan
     of Sea-Land Corporation and Affiliated Companies the amount of deferred
     compensation under that plan as of January 31, 1989 attributable to amounts
     credited under that plan for the purpose of restoring contributions to a
     defined contribution plan which were limited by Section 415 of the Code.
     Such amounts shall be treated as Salary Deferrals under the Plan, and
     unless transferred pursuant to Section 5.3(a), shall earn the same rate of
     return as the CSX Cash Pool Earnings Rate.

                                      -14-

<PAGE>

     5.2  Investment Performance Elections:

          (a)  In the event the Administrator designates more than one
     investment fund or index of investment performance under Section 5.1, each
     Member and, if applicable, former Member, shall file an initial investment
     election with the Administrator with respect to the investment of his
     Salary Deferrals within such time period and on such form as the
     Administrator may prescribe. The election shall designate the investment
     fund or funds or index or indices of investment performance which shall be
     used to measure the investment performance of the Member's Salary
     Deferrals. The election shall be effective as of the beginning of the
     payroll period next following the date the election is filed. The election
     shall be in increments of 1%.

          (b)  In the event the Administrator designates more than one
     investment fund or index under Section 5.1, each Member shall file an
     initial investment election each calendar year in which he defers an Award
     with respect to the amount deferred. The election shall be made within such
     time period and on such form as the Administrator prescribes and shall be
     in increments of 1% of the amount deferred. The election shall be effective
     on the Valuation Date on which the amount determined is credited to the
     Member's Account.

          (c)  A Member may not elect separate investment funds or indices of
     investment performance with respect to each Sub-account.

     5.3  Changing Investment Elections:

          (a)  A Member may change his election in Section 5.2(a) with respect
     to his future Salary Deferrals, no more than once each calendar quarter, by
     filing an appropriate written notice with the Administrator. The notice
     shall be effective as of the beginning of the first payroll period
     following the date the notice is filed with the Administrator.

          (b)  A Member or, if applicable, former Member may reallocate the
     current balance of his Retirement Sub-accounts, Education Sub-accounts, or
     Matching Credits, thereby changing the investment fund or funds or index or
     indices of investment performance used to measure the future investment
     performance of his existing Account balance, by filing an appropriate
     written notice with the Administrator. Each Retirement or Education
     Sub-account may be reallocated separately. The election shall be effective
     as of the last business day of the calendar quarter following the month in
     which the notice is filed. No election under this Section 5.3(b) shall
     apply to the portion of a Member's Account attributable to Matching
     Credits.

     5.4  Vesting of Account: Each Member shall be fully vested in his Account.

     5.5  Individual Accounts: The Administrator shall maintain, or cause to be
maintained, records showing the individual balances of each Account and each
Sub-account. At least once a year, each Member and, if applicable, former Member
shall be furnished with a statement setting forth the value of his Account and
his Sub-accounts.

                                      -15-

<PAGE>

     5.6  Action Following a Change of Control: Following a Change of Control,
any action taken by the Administrator pursuant to this Article 5 is subject to
the approval of the Benefits Trust Committee.

                         ARTICLE 6. PAYMENT OF BENEFITS

     6.1  Commencement of Payment:

          (a)  The distribution of the Member's or former Member's Account shall
     commence, pursuant to Section 6.2, on or after the occurrence of (i), (ii),
     (iii) or (iv) below, as designated by the Member as a Distribution Option
     election:

               (i)   the Member's termination of employment with the Affiliated
                     Companies,

               (ii)  attainment of a designated age not earlier than age 59-1/2
                     (on or after January 1, 1995 age 50) nor later than age
                     70-1/2,

               (iii) the earlier of (i) or (ii) above, or

               (iv)  the later of (i) or (ii) above.

          In the event a Member elects either (ii) or (iii) above, he may not
     elect an age less than three years subsequent to his current age. If a
     Member elects to defer an Award identified in Section 1.4(ii) (a payment
     from the CSX Market Value Cash Plan), such deferral must extend the
     commencement of distribution beyond December 31, 2004. A Member or former
     Member shall not change his Distribution Option election of the designation
     of the event which entitles him to distribution of his Account, except as
     provided in Section 6.1(c) below; provided, however, no change in
     Distribution Option election shall be allowed if it results in changing the
     deferral of commencement of distribution of an Award identified in Section
     1.4(ii) to a time before January 1, 2005. For purposes of this Plan and
     particularly this Section 6.1(a), if the Member's employer is involved in a
     Divisive Transaction, the Member will not be considered to have terminated
     his employment with an Affiliated Company until his employment with his
     employer terminates.

          (b)  Effective January 1, 1995, a Member or former Member shall,
     pursuant to Section 6.9, be eligible to make a Distribution Option election
     of the designation of the event which entitles him to distribution of his
     Account in the event of a Change of Control.

          (c)  A Member or former Member may change his Distribution Option
     election of the designation of the events which entitle him to distribution
     of his Account under Section 6.1(a) and Section 6.1(b), as follows:

               (i)   A Member or former Member may make a request in writing to
                     the Administrator to defer the Member's designated
                     distribution event

                                      -16-

<PAGE>

                     under Section 6.1(a). The requests must be filed with the
                     Administrator at least one year prior to when distribution
                     would commence based on the current designation. The
                     deferral requests must specify a distribution event
                     described in Section 6.1(a), shall be subject to approval
                     of the Administrator and, if approved, shall be effective
                     as of the date that is one year after the request is filed
                     with the Administrator. If the Member's current
                     distribution event will occur upon his termination of
                     employment and the Member's employment terminates within
                     one year after the deferral request is made, the deferral
                     request shall not be effective. A deferral request under
                     this Section 6.1(c)(i) shall not result in a forfeiture of
                     the Member's or former Member's Account.

               (ii)  Notwithstanding Section 6.1(c)(i), a Member or former
                     Member may change his designated distribution event under
                     Section 6.1(a) or 6.1(b), no more frequently than once in
                     any calendar year, by filing with the Administrator an
                     amendment to his Distribution Option election on or before
                     December 30 (or the last preceding business day if December
                     30 is not a weekday). The change shall be limited to those
                     events entitling a Member to a distribution that are
                     described in Section 6.1(a), shall be subject to approval
                     of the Administrator and, if approved, shall be effective
                     as of the last Valuation Date of the calendar year in which
                     the change is filed. Unless the election complies with the
                     requirements of Section 6.1(c)(i), or unless the provisions
                     of Section 6.1(e) apply, an election under this Section
                     6.1(c)(ii) shall result in the forfeiture of five percent
                     (5%) of the Member's or former Member's Account, determined
                     as of the Valuation Date upon which the election is
                     effective. If the Member or former Member changes the form
                     in which his Account is to be distributed under Section
                     6.2(c)(ii) at the same time as he changes his designated
                     distribution event under this Section 6.1(c)(ii), the
                     combined forfeitures will be five percent (5%) of the
                     Member's or former Member's Account, determined as of the
                     Valuation Date upon which the election is effective.

          (d)  Notwithstanding anything in this Section 6.1 or Article 9 to the
     contrary, a Member's Account shall be distributed upon his death.

          (e)  A Member may not change the designation of the event which
     entitles him to distribution of one or more Education Sub-accounts, except
     that a Member may transfer the entire amount in any Education Sub-account
     to one or more other Education Sub-accounts and one or more of his
     Retirement Sub-accounts, or any combination thereof, subject to a possible
     forfeiture of five percent (5%) of the Sub-account so transferred, as
     provided in Article 9.

          (f)  Notwithstanding the foregoing, prior to a Change of Control, the
     Corporation may delay payment of a benefit under this Plan to any Member
     who is

                                      -17-

<PAGE>

     determined to be among the top five most highly paid executives for the
     year the benefit under this Plan would otherwise be paid; provided,
     however, if a Member's payment is delayed, the benefit to which he is
     entitled will not decrease after the date it would otherwise be
     distributed.

          (g) Notwithstanding the preceding, following a Change of Control, the
     authority to delay payment of a Member's or former Member's Account rests
     solely with the Benefits Trust Committee.

     6.2  Method of Payment:

          (a) A Member's or former Member's Retirement Sub-account(s) shall be
     distributed to him, or in the event of his death to his Beneficiary, in a
     cash single sum payment as soon as administratively practicable following
     the January 1 coincident with or next following the date the Member incurs
     the Distribution Option elected under Section 6.1 or his date of death, as
     the case may be. Matching Credits earned in respect to periods following
     the date of such distributable event shall be paid directly to the Member
     in cash as soon as practical. Notwithstanding the foregoing, a Member or
     former Member may make a Distribution Option election to receive
     distribution of his Account in semi-annual installments over a period not
     to exceed twenty (20) years. Installments shall be determined as of each
     June 30 and December 31 and shall be paid as soon as administratively
     practicable thereafter. Installments shall commence as of the July 1 or
     January 1 coincident with or next following the date the Member incurs the
     distributable event elected as a Distribution Option under Section 6.1, or
     as soon as administratively practicable thereafter. The amount of each
     installment shall equal the balance in the Account as of the Valuation Date
     of determination, divided by the number of remaining installments
     (including the installment being determined). The Distribution Option
     election shall be irrevocable except as provided in Section 6.2(c) below.
     If a Member or former Member dies before payment of the entire balance of
     his Account, the remaining balance shall be paid in a single sum to his
     Beneficiary as soon as administratively practicable following the January 1
     coincident with or next following his date of death.

          (b) Effective January 1, 1995, a Member or former Member shall,
     pursuant to Section 6.9, be eligible to make a separate Distribution Option
     election of the form of payment of his Account in the event of a Change of
     Control.

          (c) Notwithstanding Section 6.2(a) and Section 6.2(b), a Member or
     former Member may change the Distribution Option election of the form in
     which his Account is distributed, as follows:

              (i)  A Member or former Member may make a one-time request to the
                   Administrator to change the form in which his Account is to
                   be distributed under Section 6.2(a). A Member or former
                   Member may also make a one-time request to change the form in
                   which his Account is to be distributed under Section 6.2(b).
                   The request must be filed in writing with the Administrator
                   at least one year prior to

                                      -18-

<PAGE>

                     when distribution would commence based on the current
                     designation. The requests must specify a form of
                     distribution described in Section 6.2(a), shall be subject
                     to approval of the Administrator and, if approved, shall be
                     effective as of the date that is one year after the request
                     is filed with the Administrator. If the Member's
                     distribution event will occur upon his termination of
                     employment and the Member's employment terminates within
                     one year after the request is filed, the request shall not
                     be effective. A request under this Section 6.2(c)(i) shall
                     not result in a forfeiture of the Member's or former
                     Member's Account.

               (ii)  Notwithstanding Section 6.2(c)(i), a Member or former
                     Member may change the form in which his Account is to be
                     distributed under Section 6.2(a) or 6.2(b), no more
                     frequently than once in any calendar year, by filing with
                     the Administrator an amendment to his Distribution Option
                     election on or before December 30 (or the last preceding
                     business day if December 30 is not a weekday). The change
                     shall be limited to those forms of distribution described
                     in Section 6.2(a), shall be subject to approval of the
                     Administrator and, if approved, shall be effective as of
                     the last Valuation Date of the calendar year in which it is
                     filed. Unless the election complies with the requirements
                     for a one-time request under Section 6.2(c)(i), or unless
                     the provisions of Section 6.2(d) apply, an election under
                     this Section 6.2(c)(ii) shall result in the forfeiture of
                     five percent (5%) of the Member's or former Member's
                     Account, determined as of the Valuation Date upon which the
                     election is effective. If the Member or former Member
                     changes his designated distribution event under this
                     Section 6.2(c)(ii) at the same time as he changes the form
                     in which his Account is to be distributed under Section
                     6.1(c)(ii), the combined forfeiture will be five percent
                     (5%) of the Member's or former Member's Account, determined
                     as of the Valuation Date upon which the election is
                     effective.

          (d)  In the event the Member's Account consists of one or more
     Retirement Sub-accounts and one or more Education Sub-accounts, the
     provisions of this Section 6.2 shall apply exclusively to the Member's
     Retirement Sub-accounts. A Member may not change the form in which his
     Education Sub-accounts are distributed, except that a Member may transfer
     the entire amount in any Education Sub-account to one or more other
     Education Sub-accounts and one or more Retirement Sub-accounts, or any
     combination thereof, subject to a possible forfeiture of five percent (5%)
     of the Sub-account so transferred, as provided in Article 9.

     6.3  Applicability: In the event the Member's Account consists of one or
more Retirement Sub-accounts and one or more Education Sub-accounts, the
provisions of Sections 6.1(a) and 6.1(c) and 6.2 shall apply exclusively to the
Member's Retirement Sub-accounts.

                                      -19-

<PAGE>

     6.4  Account Adjustment: The obligations of the Corporation or any of its
affiliated corporations and the benefits due any Member, former Member,
surviving spouse or beneficiary hereunder shall be reduced by any amount
received in regard thereto under the Benefits Assurance Trust or any similar
trust or other vehicle.

     6.5  Hardship Withdrawal:

          (a)  While employed by the Participating Companies, a Member or former
     Member may, in the event of a severe financial hardship, request a
     withdrawal from his Account. The request shall be made in a time and manner
     determined by the Administrator, shall not be for a greater amount than the
     amount required to meet the financial hardship, and shall be subject to
     approval by the Administrator.

          (b)  For purposes of this Section 6.5 financial hardship shall
     include:

               (i)   education of a dependent child where the Member or former
                     Member shows that without the withdrawal under this Section
                     the education would be unavailable to the child;

               (ii)  illness of the Member or former Member or his dependents,
                     resulting in severe financial hardship to the Member or
                     former Member;

               (iii) the loss of the Member's or former Member's home or its
                     contents, to the extent not reimbursable by insurance or
                     otherwise, if such loss results in a severe financial
                     hardship to the Member or former Member;

               (iv)  any other extraordinary circumstances of the Member or
                     former Member approved by the Administrator if such
                     circumstances would result in a present or impending
                     critical financial need which the Member or former Member
                     is unable to satisfy with funds reasonably available from
                     other sources.

          (c)  Notwithstanding the preceding, following a Change of Control, any
     decisions or determinations by the Administrator under this Section 6.5
     shall be subject to the approval of the Benefits Trust Committee.

     6.6  Designation of Beneficiary: A Member or former Member may, at a time
and in a manner determined by the Administrator, designate a beneficiary and one
or more contingent beneficiaries (which may include the Member's or former
Member's estate) to receive any benefits which may be payable under this Plan
upon his death. If the Member or former Member do not designate a beneficiary or
contingent beneficiary, or if the beneficiary and the contingent beneficiaries
do not survive the Member or former Member, such benefits shall be paid to the
Member's or former Member's estate. A Member or former Member may revoke or
change any designation made under this Section 6.6 in a time and manner
determined by the Administrator.

                                      -20-

<PAGE>

     6.7  Special Distribution Rules: Notwithstanding anything to the contrary
in the Plan, if (a) a Member or former Member becomes the owner, director or
employee of a competitor of the Affiliated Companies; (b) his employment is
terminated by an Affiliated Company on account of actions by the Member which
are detrimental to the interests of the Affiliated Company; (c) he engages in
conduct subsequent to the termination of his employment with the Affiliated
Companies which the Administrator determines to be detrimental to the interests
of an Affiliated Company; or (d) is required to divest his or her interest under
the Plan under applicable law, regulation or rules, then the Administrator may,
in its sole discretion, pay the Member or former Member a single sum payment
equal to the balance in his Account. In such event, the single sum payment shall
be made as soon as practicable following the date the Member or former Member or
is affected by one of the circumstances described in this Section 6.7 and such
payment shall be in lieu of all other benefits which may be payable to the
Member or former Member under this Plan.

     6.8  Status of Account Pending Distribution: Pending distribution, a former
Member's Account (and, if applicable, a former Member's Sub-accounts) shall
continue to be credited with earnings and losses as provided in Section 5.1. The
former Member shall be entitled to change his investment elections under Section
5.3 or apply for Hardship withdrawals under Section 6.5 to the same extent as if
he were a Member of the Plan. In the event of the death of a Member or former
Member, his Sub-accounts shall be credited with earnings and losses as if the
Sub-accounts had earned the same rate of return as the CSX Corporation Cash Pool
Earnings Rate or, in the sole discretion of the Administrator, the rate of
return of such other index of investment performance or investment fund which
may be designated by the Administrator as a measure for investment performance
of Members' or former Members' Accounts (and, if applicable, their
Sub-accounts), commencing with the Valuation Date coincident with or next
following the Member's or former Member's date of death.

     6.9  Installments and Withdrawals Pro-Rata: In the event of an installment
payment or hardship withdrawal, such payment or withdrawal shall be made on a
pro-rata basis from the portions of the Member's or former Member's existing
Account balance which are subject to different measures of investment
performance. In the event of a hardship withdrawal, the withdrawal shall be made
on a pro-rata basis from all of the Member's or former Member's Sub-accounts.

     6.10 Change of Control:

          (a)  If a Change of Control has occurred, the Corporation and
     Participating Companies shall contribute to the Trust within 7 days of such
     Change of Control, a lump sum payment equal to the greater of (i) the
     aggregate value of the amount each Member or former Member would be
     eligible to receive (determined under (b) below) as of the latest Valuation
     Date coinciding with or preceding the date of Change of Control or (ii) the
     amount determined under Section 1(h) of the Trust attributable to
     liabilities relating to the Plan 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 6.10 shall be determined
     by the Independent Accountants after consultation with the entity then
     maintaining the Plan's records, and shall be projected, if necessary, to
     such Valuation Date

                                      -21-

<PAGE>

     from the last valuation of Members' or former Members' Accounts for which
     information is readily available. Thereafter, the Independent Accountants
     shall annually determine as of a Valuation Date for each Member or former
     Member not receiving a lump sum payment pursuant to subsection (b) below
     the value of each Member or former Member's Accounts. 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 the Independent Accountants, the
     Corporation and Participating Companies shall make a lump sum contribution
     to the Trust equal to the difference.

          (b)  In the event a Distribution Event has occurred, the trustee of
     the Trust shall, within 45 days of such Distribution Event, pay to each
     Member or former Member not making an election under (c) below, a lump sum
     payment equal to the value of the Member's or former Member's Accounts
     (determined under Article 5) as of the Valuation Date coinciding with or
     next preceding the date of such Distribution Event. The amount of each
     Member's or former Member's lump sum payment shall be determined by the
     Independent Accountants after consultation with the entity then maintaining
     the Plan's records, and shall be projected, if necessary, to such Valuation
     Date from the last valuation of Member's or former Member's Accounts for
     which information is readily available.

          (c)  Each Member or former Member may elect in a time and manner
     determined by the Administrator, but in no event later than December 31,
     1996, or the occurrence of a Distribution Event, if earlier, to have
     amounts and benefits determined and payable under the terms of the Plan as
     if a Distribution Event had not occurred. New Members of the Plan may elect
     in a time and manner determined by the Administrator, but in no event later
     than 90 daysafter becoming a Member, to have amounts and benefits
     determined and payable under the terms of the Plan as if a Distribution
     Event had not occurred. A Member or former Member 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 Member
     or former Member who has made an election under (c) above may elect within
     90 days following a Distribution Event, in a time and manner determined by
     the Benefits Trust Committee, to receive a lump sum payment calculated
     under the provisions of (b) 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 by the Member or
     former Member. Furthermore, as a result of such election, the Member or
     former Member shall no longer be eligible to participate or otherwise
     benefit from the Plan. Payments under this subsection (d) shall be made not
     later than 7 days following receipt by the Corporation of a Member's or
     former Member's election. The Benefits Trust Committee shall, no later than
     7 days after a Distribution Event has occurred, give written notification
     to each Member or former Member eligible to make an election under this
     subsection (d), that a Distribution Event has occurred and informing such
     Member or former Member of the availability of the election.

                                      -22-

<PAGE>

                       ARTICLE 7. AMENDMENT OR TERMINATION

     7.1  Right to Terminate:

          (a)  Prior to a Change of Control, the Board may, in its sole
     discretion, terminate this Plan and the related Deferral Agreements at any
     time. Following a Change of Control, this Plan may not be terminated
     without the approval of the Benefits Trust Committee.

          (b)  Prior to a Change of Control, the Committee may terminate an
     Affiliated Company's participation as a Participating Company in this Plan
     for any reason at any time. Following a Change of Control, an Affiliated
     Company may not be terminated from participation as a Participating Company
     without the consent of the Benefits Trust Committee.

          (c)  Prior to a Change of Control, an Affiliated Company's board of
     directors may terminate that Affiliated Company's participation as a
     Participating Company for any reason at any time. Following a Change of
     Control, an Affiliated Company's participation as a Participating Company
     may not be terminated without the consent of the Benefits Trust Committee.

          (d)  In the event the Plan and related Deferral Agreements are
     terminated, each Member, former Member and Beneficiary shall receive a
     single sum payment equal to the balance in his Account. The single sum
     payment shall be made as soon as practicable following the date the Plan is
     terminated and shall be in lieu of any other benefit which may be payable
     to the Member, former Member or Beneficiary under this Plan.

     7.2  Right to Amend: Prior to a Change of Control, the Board may, in its
sole discretion, amend this Plan and the related Deferral Agreements on 30 days
prior notice to the Members and, where applicable, former Members. Following a
Change of Control, all amendments to this Plan are subject to the approval of
the Benefits Trust Committee. If any amendment to this Plan or to the Deferral
Agreements shall adversely affect the rights of a Member or former Member, such
individual must consent in writing to such amendment prior to its effective
date. If such individual does not consent to the amendment, the Plan and related
Deferral Agreements shall be deemed to be terminated with respect to such
individual and he shall receive a single sum payment of his Account as soon
thereafter as is practicable. Notwithstanding the foregoing, the Administrator's
change in any investment funds or investment index under Section 5.1(b) or the
restriction of future deferrals under the salary deferral program or award
deferral program shall not be deemed to adversely affect any Member's or former
Member's rights.

     7.3  Uniform Action: Notwithstanding anything in the Plan to the contrary,
any action to amend or terminate the Plan or the Deferral Agreements must be
taken in a uniform and nondiscriminatory manner. Notwithstanding the preceding,
any such action taken by the Administrator following a Change of Control is
subject to the approval of the Benefits Trust Committee.

                                      -23-

<PAGE>

                          ARTICLE 8. GENERAL PROVISIONS

     8.1  No Funding: Nothing contained in this Plan or in a Deferral Agreement
shall cause this Plan to be a funded retirement plan. Neither the Member, former
Member, his beneficiary, contingent beneficiaries, heirs or personal
representatives shall have any right, title or interest in or to any funds of
the Trust or the Affiliated Companies on account of this Plan or on account of
having completed a Deferral Agreement. The assets held in the Trust shall be
subject to the claims of creditors of the Corporation, and the Trust's assets
shall be used to discharge said claims in the event of the Corporation's
insolvency. Each Member or former Member shall have the status of a general
unsecured creditor of the Affiliated Companies and this Plan constitutes a mere
promise by the Affiliated Companies to make benefit payments in the future.

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

     8.3  No Contract of Employment: The existence of this Plan or of a Deferral
Agreement does not constitute a contract for continued employment between an
Eligible Executive or a Member and an Affiliated Company. The Affiliated
Companies reserve the right to modify an Eligible Executive's or Member's
remuneration and to terminate an Eligible Executive or a Member for any reason
and at any time, notwithstanding the existence of this Plan or of a Deferral
Agreement.

     8.4  Withholding Taxes: All payments under this Plan shall be net of an
amount sufficient to satisfy any federal, state or local withholding and payroll
tax requirements.

     8.5  Nonalienation: The right to receive any benefit under this Plan may
not be transferred, assigned, pledged or encumbered by a Member, former Member,
beneficiary or contingent beneficiary in any manner and any attempt to do so
shall be void. No such benefit shall be subject to garnishment, attachment or
other legal or equitable process without the prior written consent of the
Affiliated Companies. Notwithstanding the preceding, following a Change of
Control, the Administrator shall not implement such action without the consent
of the Benefits Trust Committee.

     8.6  Administration:

          (a)  Prior to a Change of Control, the Administrator of the Plan 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 and conditions of the Plan.

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

          (c)  The Administrator shall have sole and absolute discretion to
     interpret the Plan, determine eligibility for and benefits due hereunder.
     Decisions of the Administrator

                                      -24-

<PAGE>

     regarding benefits under the Plan shall at all times be binding and
     conclusive on Members, their beneficiaries, heirs and assigns.
     Notwithstanding the preceding, following a Change of Control, final benefit
     determinations for Members, 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 and absolute
     discretion.

          (d)  Prior to paying any benefit under this Plan, the Administrator
     may require the Member or former Member, beneficiary or contingent
     beneficiary to provide such information or material as the Administrator,
     in its sole discretion, shall deem necessary for it to make any
     determination it may be required to make under this Plan. The Administrator
     may withhold payment of any benefit under this Plan until it receives all
     such information and material and is reasonably satisfied of its
     correctness and genuineness. The Administrator shall provide adequate
     notice in writing to any Member, former Member, beneficiary or contingent
     beneficiary whose claim for benefits under this Plan has been denied,
     setting forth the specific reasons for such denial. A reasonable
     opportunity shall be afforded to any such Member, former Member,
     beneficiary or contingent beneficiary for a full and fair review by the
     Administrator of its decision denying the claim. The Administrator's
     decision on any such review shall be final and binding on the Member,
     former Member, beneficiary or contingent beneficiary and all other
     interested persons. All acts and decisions of the Administrator shall be
     final and binding upon all Members, former Members, beneficiaries,
     contingent beneficiaries and employees of the Affiliated Companies.
     Notwithstanding the preceding, following a Change of Control, any and all
     decisions by the Administrator are subject to the approval of the Benefits
     Trust Committee.

          (e)  Prior to a Change of Control, the Committee in its sole
     discretion and upon such terms as it may prescribe, may permit any company
     or corporation directly or indirectly controlled by the Corporation to
     participate in the Plan. After a Change of Control, such permission must be
     approved by the Benefits Trust Committee.

     8.7  Construction:

          (a)  The Plan is intended to constitute an unfunded deferred
     compensation arrangement for a select group of management or highly
     compensated employees and all rights hereunder shall be governed by and
     construed in accordance with the laws of the Commonwealth of Virginia to
     the extent not preempted by federal law.

          (b)  The masculine pronoun means the feminine wherever appropriate.

          (c)  The captions inserted herein are inserted as a matter of
     convenience and shall not affect the construction of the Plan.

                        ARTICLE 9. EDUCATION SUB-ACCOUNTS

     9.1  Education Sub-accounts:

                                      -25-

<PAGE>

          (a)  Notwithstanding any provision of this Plan to the contrary, with
     respect to amounts deferred under Salary Deferral Agreements and Award
     Deferral Agreements effective on or after December 31, 1990, a Member may
     direct the Administrator to establish a separate sub-account in the name of
     one or more of:

               (i)   each of the Member's children,

               (ii)  each of the Member's brothers, sisters, their spouses, the
                     Member's spouse, or

               (iii) each of the foregoing's lineal descendants, for the payment
                     of their expenses directly or indirectly arising from
                     enrollment in a college, university, another post-secondary
                     institution of higher learning or a secondary educational
                     institution. Each sub-account established pursuant to this
                     Section 9.1(a) shall be referred to as an "Education
                     Sub-account."

          (b)  The Member may instruct the Administrator to allocate all or a
     portion of any amount deferred under an Award Deferral Agreement in respect
     to an Award granted after December 31, 1990 to one or more of the Education
     Sub-accounts established pursuant to Section 9.1(a).

          (c)  A Member may instruct the Administrator to allocate all or any
     portion of the amount he defers for periods commencing after December 31,
     1990 pursuant to his Salary Deferral Agreement to one or more of the
     Education Sub-accounts established pursuant to Section 9.1(a).

          (d)  Any elections pursuant to Sections 9.1(a) and 9.1(b) shall be
     made in whole percentages.

          (e)  No Matching Credits shall be allocated to any Education
     Sub-account.

     9.2  Distribution of Education Sub-accounts:

          (a)  Amounts allocated to one or more of a Member's Education
     Sub-accounts shall be distributed to the Member upon the attainment of the
     certain age of the Member, specifically designated by the Member for this
     purpose with regard to that Sub-account.

          (b)  A Member or former Member may transfer the entire amount but not
     less than that amount in any Education Sub-account to one or more other
     Education Sub-accounts, a Retirement Sub-account, or any combination
     thereof, by filing the appropriate form or forms with the Administrator not
     later than the last business day of the calendar year preceding the
     calendar year in which distribution of that Education Sub-account was to
     begin; provided, however, if such transfer accelerates the timing of the
     payment to the Member, there shall be a forfeiture of five percent (5%) of
     the Member's or former Member's Sub-account so transferred, determined as
     of the Valuation Date upon which the

                                      -26-

<PAGE>

     transfer is effective. In no event may a Member transfer all or any portion
     of the amount in a Retirement Sub-account to his Education Sub-accounts.
     Except as provided in this Section 9.2(b) or 9.2(c) below, a Member or
     former Member may not change the time or form of distribution of his
     Education Sub-accounts.

          (c)  In the event that the individual for whom an Education
     Sub-account is established dies while funds remain in that Sub-account, a
     Member or former Member may transfer without penalty the entire amount but
     not less than that amount in that Sub-account in accordance with the
     provisions of (i) or (ii) below:

               (i)   to one or more existing Education Sub-accounts and/or a new
                     Education Sub-account established in accordance with the
                     provisions of Section 9.1 hereof; or

               (ii)  to a Retirement Sub-account.

     If a Member or former Member elects to transfer funds in accordance with
     (ii) and he has not previously established a Retirement Sub-account, such a
     Sub-account shall be established automatically and the Member or former
     Member promptly thereafter will be required to execute an amendment to his
     Deferral Agreement which shall specify the option under Section 6.1(a)
     which will entitle him to distribution of the Retirement Sub-account and
     the form of distribution under Section 6.2(a).

          (d)  A Member's or former Member's Education Sub-accounts shall be
     distributed to him, or in the event of his death to his Beneficiary, in a
     cash single sum payment as soon as administratively practicable following
     the January 1 coincident with or next following the date the Member incurs
     the distributable event or events elected under Section 9.2(a) or his date
     of death, as the case may be. Notwithstanding the foregoing, a Member or
     former Member may elect to receive distribution of one or more of his
     Education Sub-accounts in semi-annual installments over a period not to
     exceed six (6) years. Installments shall be determined as of each June 30
     and December 31 and shall be paid as soon as administratively practicable
     thereafter. Installments shall commence as of the June 30 or December 31
     coincident with or next following the date the Member incurs the
     distributable event elected under Section 9.2(a) with regard to a
     Sub-account, or as soon as administratively practicable thereafter. The
     amount of each installment shall equal the balance in the applicable
     Education Sub-account as of the Valuation Date of determination, divided by
     the number of remaining installments (including the installment being
     determined). If a Member or former Member dies before payment of the entire
     balance of all of his Education Sub-accounts, the remaining balance or
     balances, as the case may be, shall be paid in a single sum to his
     Beneficiary as soon as administratively practicable following the January 1
     coincident with or next following his date of death.

     9.3  Construction: To the extent any provision in this Article 9 is
inconsistent with any other provision of this Plan, the provisions in Article 9
shall govern.

                                      -27-

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