Document:

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                                                                    Exhibit 10.3

            OPERATING AGREEMENT TERMINATION AGREEMENT dated as of August 27,
            2004 between PENNSYLVANIA LINES LLC, a Delaware limited liability
            company (hereinafter called the OWNER) and Norfolk SOUTHERN RAILWAY
            COMPANY, a Virginia corporation (hereinafter called the OPERATOR).

      WHEREAS the parties hereto have entered into the Operating Agreement dated
as of June 1, 1999, and certain amendments and supplements thereto (the
Operating Agreement, together with all amendments and supplements thereto prior
to the date hereof, being hereinafter called the OPERATING AGREEMENT); and

      WHEREAS the parties hereto wish to terminate the Operating Agreement.

      NOW THEREFORE, the parties hereto hereby agree as follows:

      1.    Termination. The Operating Agreement is hereby terminated on and as
of the date hereof.

      2.    Reversion. All interests of the Operator in and to the property
covered by the Operating Agreement revert to and are deemed the property of the
Owner.

      3.    Rent. The parties hereto shall adjust their accounts for rents paid
in advance and payable in arrears under the Operating Agreement to give effect
to the termination contemplated hereby. Rent for partial periods shall be
determined using a 360-day year of twelve 30-day months.

      The Operator shall settle for any "Event of Loss" (as defined in the
Operating Agreement) occurring prior to or on the date hereof in accordance with
the terms of the Operating Agreement, whether or not such Event of Loss shall be
known on the date hereof.

      The Settlement Account contemplated by Article VI of the Operating
Agreement shall terminate on the date hereof, and the Operator shall be credited
with any balance therein.

      4.    Indemnities and other Obligations to Survive. The indemnity and
other obligations set forth in the Operating Agreement survive the termination
contemplated by this agreement, as to events and obligations occurring and
claims arising prior to the date hereof.

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      5.    Counterparts. This agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, all
of which together shall constitute a single agreement.

      6.    Effectiveness. This agreement shall be effective on the date first
above written.

      IN WITNESS WHEREOF, the parties hereto have each caused this agreement to
be duly executed by their respective officers or representatives thereunto duly
authorized:

                                    PENNSYLVANIA LINES LLC

                                    by:  /s/ William J. Romig
                                        ----------------------------------------
                                        Name:  William J. Romig
                                        Title: Vice President and Treasurer

                                    NORFOLK SOUTHERN RAILWAY COMPANY

                                    by:  /s/ William J. Romig
                                        ----------------------------------------
                                        Name:  William J. Romig
                                        Title: Vice President and Treasurer<PAGE>

                                                                    Exhibit 10.3

            OPERATING AGREEMENT TERMINATION AGREEMENT dated as of August 27,
            2004 between NEW YORK CENTRAL LINES LLC, a Delaware limited
            liability company (hereinafter called the OWNER) and CSX
            TRANSPORTATION, INC., a Virginia corporation (hereinafter called the
            OPERATOR).

      WHEREAS the parties hereto have entered into the Operating Agreement dated
as of June 1, 1999, and certain amendments and supplements thereto (the
Operating Agreement, together with all amendments and supplements thereto prior
to the date hereof, being hereinafter called the OPERATING AGREEMENT); and

      WHEREAS the parties hereto wish to terminate the Operating Agreement.

      NOW THEREFORE, the parties hereto hereby agree as follows:

      1.    Termination. The Operating Agreement is hereby terminated on and as
of the date hereof.

      2.    Reversion. All interests of the Operator in and to the property
covered by the Operating Agreement revert to and are deemed the property of the
Owner.

      3.    Rent. The parties hereto shall adjust their accounts for rents paid
in advance and payable in arrears under the Operating Agreement to give effect
to the termination contemplated hereby. Rent for partial periods shall be
determined using a 360-day year of twelve 30-day months.

      The Operator shall settle for any "Event of Loss" (as defined in the
Operating Agreement) occurring prior to or on the date hereof in accordance with
the terms of the Operating Agreement, whether or not such Event of Loss shall be
known on the date hereof.

      The Settlement Account contemplated by Article VI of the Operating
Agreement shall terminate on the date hereof, and the Operator shall be credited
with any balance therein.

      4.    Indemnities and other Obligations to Survive. The indemnity and
other obligations set forth in the Operating Agreement survive the termination
contemplated by this agreement, as to events and obligations occurring and
claims arising prior to the date hereof.

<PAGE>

      5.    Counterparts. This agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, all
of which together shall constitute a single agreement.

      6.    Effectiveness. This agreement shall be effective on the date first
above written.

      IN WITNESS WHEREOF, the parties hereto have each caused this agreement to
be duly executed by their respective officers or representatives thereunto duly
authorized:

                                    NEW YORK CENTRAL LINES LLC

                                    by:  /s/ Louis G. Recher
                                        ----------------------------------------
                                        Name:
                                        Title:

                                    CSX TRANSPORTATION, INC.

                                    by:  /s/ Louis G. Recher
                                        ----------------------------------------
                                        Name:
                                        Title:<PAGE>

                                                                   EXHIBIT 10.57

                                AMENDMENT TO THE
                               BORDERS GROUP, INC.
                              ANNUAL INCENTIVE PLAN

Effective as of May 20, 2004, the Borders Group, Inc. Annual Incentive Plan (the
"Plan"), approved by the shareholders of Borders Group, Inc. (the "Company") on
May 24, 2000, is hereby amended in the following particulars:

1.    The definition of "MSPP Participant" in Section 2 (j) of the Plan is
      hereby amended to read as follows:

            "'MSPP Participant'" shall mean a participant in the 2004 Long-Term
            Incentive Plan who has been granted stock purchase rights for the
            relevant Plan Year of the Plan; provided, however, that only
            officers shall be required to use a portion of their bonus to
            purchase shares under the 2004 Long-Term Incentive Plan."

2.    The following definition shall be inserted at the end of Section 2 of the
      Plan:

            "(s) '2004 Long-Term Incentive Plan' shall mean the Borders Group,
            Inc. 2004 Long-Term Incentive Plan approved by the shareholders of
            Borders Group, Inc. on May 20, 2004."

3.    All references in the Plan to the phrase "Management Stock Purchase Plan"
      or "MSPP" are hereby deleted and replaced with the following: "2004
      Long-Term Incentive Plan."

Except as hereby amended, the Plan shall remain in full force and effect.

                                              Borders Group, Inc.

                                              By: /s/ Edward W. Wilhelm
                                                  --------------------------
                                                  Edward W. Wilhelm<PAGE>

                                                                   EXHIBIT 10.58

                             FIRST AMENDMENT TO THE
                               BORDERS GROUP, INC.
                          2004 LONG-TERM INCENTIVE PLAN

The Borders Group, Inc. 2004 Long-Term Incentive Plan (the "Plan"), which was
approved by the shareholders of Borders Group, Inc. (the "Company") on May 20,
2004, is hereby amended in the following particulars, effective as of May 20,
2004:

1.    The following Paragraph (e) is hereby added to Section 9 of the Plan:

      "(e) Awards to Non-employee Directors. Notwithstanding any other provision
      of the Plan, Awards shall be made to non-employee directors only in the
      form of Restricted Shares or Restricted Share Units, as determined in the
      sole discretion of the Chairman of the Compensation Committee, having a
      Fair Market Value equal to one-half of the annual retainer fees to be paid
      for the applicable year. For 2004, the grant shall be made, and the
      Restricted Period shall begin, on August 1, 2004 and the Restricted Period
      shall end on December 31, 2004. In subsequent years, the Award of
      Restricted Shares or Restricted Share Units shall be made, and the
      Restricted Period shall begin, on January 1 of the applicable year and the
      Restricted Period shall end on December 31 of such year. In the case of an
      individual who becomes a non-employee director during a calendar year, (i)
      his or her Award of Restricted Shares or Restricted Share Units with
      respect to such year shall have a Fair Market Value equal to one-half of
      the prorated fees that he or she will be entitled to receive for such
      year, (ii) the Award shall be made, and the Restricted Period shall begin,
      as of the date that he or she commences service as a non-employee
      director, and (iii) the Restricted Period shall end on the anniversary of
      such date."

2.    The following sentence is added to the end of Section 11(a) of the Plan:

      "Subject to adjustment in accordance with Section 16, the aggregate number
      of Unrestricted Shares issued under the Plan shall not exceed 150,000."

3.    The first sentence of Section 17 of the Plan is hereby amended to read as
      follows:

      "The Board may suspend, terminate, modify or amend the Plan, without the
      approval of the shareholders of the Company, except that shareholder
      approval shall be required for any amendment (other than an amendment
      pursuant to the adjustment provisions of the Plan) that requires
      shareholder approval under New York Stock Exchange rules or that otherwise
      would: (i) materially increase the benefits accruing to participants under
      the Plan; (ii) materially increase the aggregate number of securities that
      may be issued under the Plan; or (iii) materially modify the requirements
      as to eligibility for participation in the Plan."

Except as here amended, the Plan shall remain in full force and effect.

                                               BORDERS GROUP, INC.

                                               By: /s/ Edward W. Wilhelm
                                                   -------------------------
                                                   Edward W. Wilhelm

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