Document:

exhibit_10-37.htm

    EXHIBIT
10-37

    

    

    EMPLOYMENT
AGREEMENT

    

    This Employment Agreement
("Agreement"), is entered into by and between Halliburton Energy Services, a division of
Halliburton Energy Services, Inc. ("Employer") and David Sherrer King
("Employee"), to be effective on October 1, 1999 (the "Effective
Date").

    

    W
I T N E S S E T H:

    

    WHEREAS, Employee is currently
employed by Employer; and

    

    WHEREAS, Employer is desirous
of continuing the employment of Employee after the Effective Date pursuant to
the terms and conditions and for the consideration set forth in this Agreement,
and Employee is desirous of continuing in the employ of Employer pursuant to
such terms and conditions and for such consideration.

    

    NOW, THEREFORE, for and in
consideration of the mutual promises, covenants, and obligations contained
herein, Employer and Employee agree as follows:

    

    ARTICLE
1:   EMPLOYMENT AND DUTIES:

    

    1.1.           Employer
agrees to employ Employee, and Employee agrees to be employed by Employer,
beginning as of the Effective Date and continuing until the date of termination
of Employee’s employment pursuant to the provisions of Article 3 (the “Term”),
subject to the terms and conditions of this Agreement.

    

    1.2.           Beginning
as of the Effective Date, Employee shall be employed as Division Vice President
– Operations, Completion Product Services, Production
Enhancement.  Employee agrees to serve in the assigned position or in
such other managerial capacities as may be requested from time to time by
Employer and to perform diligently and to the best of Employee’s abilities the
duties and services appertaining to such positions as reasonably determined by
Employer, as well as such additional or different duties and services
appropriate to such positions which Employee from time to time may be reasonably
directed to perform by Employer.

    

    1.3.           Employee
shall at all times comply with and be subject to such policies and procedures as
Halliburton Company (“Halliburton”) or Employer may establish from time to time,
including, without limitation, the Halliburton Company Code of Business Conduct
(the “Code of Business Conduct”).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1.4.           Employee
shall, during the period of Employee’s employment by Employer, devote Employee’s
full business time, energy, and best efforts to the business and affairs of
Employer.  Employee may not engage, directly or indirectly, in any
other business, investment, or activity that interferes with Employee’s
performance of Employee’s duties hereunder, is contrary to the interest of
Halliburton or any of its affiliated subsidiaries and divisions, including
Employer (collectively, the “Halliburton Entities” or, individually, a
“Halliburton Entity”), or requires any significant portion of Employee’s
business time.  The foregoing notwithstanding, the parties recognize
and agree that Employee may engage in passive personal investments and other
business activities which do not conflict with the business and affairs of the
Halliburton Entities or interfere with Employee’s performance of his or her
duties hereunder.  Employee may not serve on the board of directors of
any entity other than a Halliburton Entity during the Term without the approval
thereof in accordance with Halliburton’s policies and procedures regarding such
service.  Employee shall be permitted to retain any compensation
received for approved service on any unaffiliated corporation’s board of
directors.

    

    1.5.           Employee
acknowledges and agrees that Employee owes a fiduciary duty of loyalty, fidelity
and allegiance to act at all times in the best interests of the Employer and the
other Halliburton Entities and to do no act which would, directly or indirectly,
injure any such entity’s business, interests, or reputation.  It is
agreed that any direct or indirect interest in, connection with, or benefit from
any outside activities, particularly commercial activities, which interest might
in any way adversely affect Employer, or any Halliburton Entity, involves a
possible conflict of interest.  In keeping with Employee’s fiduciary
duties to Employer, Employee agrees that Employee shall not knowingly become
involved in an conflict of interest with Employer or the Halliburton Entities,
or upon discovery thereof, allow such a conflict to
continue.  Moreover, Employee shall not engage in any activity which
might involve a possible conflict of interest without first obtaining approval
in accordance with Halliburton’s policies and procedures.

    

    1.6.           Nothing
contained herein shall be construed to preclude the transfer of Employee’s
employment to another Halliburton Entity (“Subsequent Employer”) as of, or at
any time after, the Effective Date and no such transfer shall be deemed to be a
termination of employment for purposes of Article 3 hereof; provided, however,
that, effective with such transfer, all of Employer’s obligations hereunder
shall be assumed by and be binding upon, and all of Employer’s rights hereunder
shall be assigned to, such Subsequent Employer and the defined term “Employer”
as used herein shall thereafter be deemed amended to mean such Subsequent
Employer.  Except as otherwise provided above, all of the terms and
conditions of this Agreement, including without limitation, Employee’s rights
and obligations, shall remaining in full force and effect following such
transfer of employment.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    ARTICLE
2:   COMPENSATION AND BENEFITS:

    

    2.1.           Employee’s
base salary during the Term shall be not less than $145,000 per annum which
shall be paid in accordance with the Employer’s standard payroll practice for
its executives.  Employee’s base salary may be increased from time to
time with the approval of the Compensation Committee of Halliburton’s Board of
Directors (the “Compensation Committee”) or its delegate, as
applicable.  Such increased base salary shall become the minimum base
salary under this Agreement and may not be decreased thereafter without the
written consent of Employee.

    

    2.2.           During
the Term, Employee shall participate in the Halliburton Annual Performance Pay
Plan, or any successor annual incentive plan approved by the Compensation
Committee; provided, however, that all determinations relating to Employee’s
participation, including, without limitation, those relating to the performance
goals applicable to Employee and Employee’s level of participation and payout
opportunity, shall be made in the sole discretion of the person or committee to
whom such authority has been granted pursuant to such plan’s terms.

    

    2.3.           During
the Term, Employer shall pay or reimburse Employee for all actual, reasonable
and customary expenses incurred by Employee in the course of his or her
employment; including, but not limited to, travel, entertainment, subscriptions
and dues associated with Employee’s membership in professional, business and
civic organizations; provided that such expenses are incurred and accounted for
in accordance with Employer’s applicable policies and procedures.

    

    2.4.           While
employed by Employer, Employee shall be allowed to participate, on the same
basis generally as other similarly situated employees of Employer, in all
general employee benefit plans and programs, including improvements or
modifications of the same, which on the Effective Date or thereafter are made
available by Employer or Halliburton to all or substantially all of Employer’s
similarly situated employees.  Such benefits, plans, and programs may
include, without limitation, medical, health, and dental care, life insurance,
disability protection, and qualified and non-qualified retirement
plans.  Except as specifically provided herein, nothing in this
Agreement is to be construed or interpreted to increase or alter in any way the
rights, participation, coverage, or benefits under such benefit plans or
programs than provided to similarly situated employees pursuant to the terms and
conditions of such benefit plans and programs.  While employed by
Employer, employee shall be eligible to receive awards under the Halliburton
Company 1993 Stock and Long-Term Incentive Plan (the “1993 Plan”) or any
successor stock-related plan adopted by Halliburton’s Board of Directors;
provided, however, that the foregoing shall not be construed as a guarantee with
respect to the type, amount or frequency of such awards, if any, such decisions
being solely within the discretion of the Compensation Committee or its
delegate, as applicable.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    2.5.           Neither
Halliburton nor Employer shall by reason of this Article 2  be
obligated to institute, maintain, or refrain from changing, amending or
discontinuing, any incentive compensation, employee benefit or stock or stock
option program or plan, so long as such actions are similarly applicable to
covered employees generally.

    

    2.6.           Employer
may withhold from any compensation, benefits, or amounts payable under this
Agreement all federal, state, city, or other taxes as may be required pursuant
to any law or governmental regulation or ruling.

    

    ARTICLE
3:  TERMINATION OF EMPLOYMENT AND EFFECTS OF SUCH

                            
TERMINATION:

    

    3.1.           Employee’s
employment with Employer shall be terminated (i) upon the death of Employee,
(ii) upon Employee’s Retirement (as defined below), (iii) upon Employee’s
Permanent Disability (as defined below), or (iv) at any time by Employer upon
notice to Employee, or by Employee upon thirty (30) days’ notice to Employer,
for any or no reason.

    

    3.2.           If
Employee’s employment is terminated by reason of any of the following
circumstances, Employee shall not be entitled to receive the benefits set forth
in Section 3.3 hereof:

    

    
      	
               
      

            	
              (i)

            	
              Death.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Retirement.  “Retirement”
      shall mean either (a) Employee’s retirement at or after normal retirement
      age (either voluntarily or pursuant to Halliburton’s retirement policy) or
      (b) the voluntary termination of Employee’s employment by Employee in
      accordance with Employer’s early retirement policy for other than Good
      Reason (as defined below).

            

    

    

    
      	
               
      

            	
              (iii)

            	
              Permanent
      Disability.  “Permanent Disability” shall mean Employee’s
      physical or mental incapacity to perform his or her usual duties with such
      condition likely to remain continuously and permanently as determined by a
      qualified physician selected by
Employer.

            

    

    

    
      	
               
      

            	
              (iv)

            	
              Voluntary
      Termination.  “Voluntary Termination” shall mean a
      termination of employment in the sole discretion and at the election of
      Employee for other than Good Reason.  “Good Reason” shall mean
      (a) a termination of employment by Employee because of a material breach
      by Employer of any material provision of this Agreement which remains
      uncorrected for thirty (30) days following notice of such breach by
      Employee to Employer, provided such termination occurs within sixty (60)
      days after the expiration of the notice period or (b) a termination of
      employment by Employee within six (6) months after a material diminution
      in the nature or scope of Employee’s job functions, duties or
      responsibilities.

            

    

    
      
         

      

      
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              (v)

            	
              Termination for
      Cause.  Termination of Employee’s employment by Employer
      for Cause.  “Cause” shall mean any of the
      following:  (a) Employee’s gross negligence or willful
      misconduct in the performance of the duties and services required of
      Employee pursuant to this Agreement, (b) Employee’s final conviction of a
      felony, (c) a material violation of the Code of Business Conduct or (d)
      Employee’s material breach of any material provision of this Agreement
      which remains uncorrected for thirty (30) days following notice of such
      breach to Employee by Employer.  Determination as to whether or
      not Cause exists for termination of Employee’s employment will be made by
      the Compensation Committee.

            

    

    

    In the event Employee’s employment is
terminated under any of the foregoing circumstances, all future compensation to
which Employee is otherwise entitled and all future benefits for which Employee
is eligible shall cease and terminate as of the date of termination, except as
specifically provided in this Section 3.2. Employee, or his or her estate in the
case of Employee’s death, shall be entitled to pro rata base salary through the
date of such termination and shall be entitled to any individual bonuses or
individual incentive compensation not yet paid but payable under Employer’s or
Halliburton’s plans for years prior to the year of Employee’s termination of
employment, but shall not be entitled to any bonus or incentive compensation for
the year in which he or she terminates employment or any other payments or
benefits by or on behalf of Employer except for those which may be payable
pursuant to the terms of Employer’s or Halliburton’s employee benefit plans (as
defined in Section 3.4), stock, stock option or incentive plans, or the
applicable agreements underlying such plans.

    

    3.3.           If
Employee’s employment is terminated by Employer or Employee for any reason other
than as set forth in Section 3.2 above Employee shall be entitled to each of the
following:

    

    
      	
               
      

            	
              (i)

            	
              To
      the extent not otherwise specifically provided in any underlying
      restricted stock agreements, all shares of Halliburton common stock
      previously granted to Employee under the 1993 Plan, and any similar plan
      adopted by Halliburton in the future, which at the date of termination of
      employment are subject to restrictions (the “Restricted Shares”) will be
      treated in a manner consistent with Halliburton’s past practices for
      treatment of Restricted Shares held by employees whose employment was
      involuntarily terminated by a Halliburton Entity for reasons other than
      Cause, which, in most instances, have been to forfeit the Restricted
      Shares and pay to such employee a lump sum cash payment equal to the value
      of the Restricted Shares (based on the closing price of Halliburton common
      stock on the New York Stock Exchange on the date of termination of
      employment); although in some cases, Halliburton has, in lieu of, or in
      combination with, the foregoing and in its discretion, caused the
      forfeiture restrictions with respect to all or a portion of the Restricted
      Shares to lapse and provided for the retention of such shares by such
      employee.

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (ii)

            	
              Subject
      to the provisions of Section 3.4, Employer shall pay to Employee a
      severance benefit consisting of a single lump sum cash payment equal to
      two years’ of Employee’s base salary as in effect at the date of
      Employee’s termination of employment.  Such severance benefit
      shall be paid no later than sixty (60) days following Employee’s
      termination of employment.

            

    

    

    
      	
               
      

            	
              (iii)

            	
              Employee
      shall be entitled to any individual bonuses or individual incentive
      compensation not yet paid but payable under Employer’s or Halliburton’s
      plans for years prior to the year of Employee’s termination of
      employment.  Such amounts shall be paid to Employee in a single
      lump sum cash payment no later than sixty (60) days following Employee’s
      termination of employment.

            

    

    

    
      	
               
      

            	
              (iv)

            	
              Employee
      shall be entitled to any individual bonuses or individual incentive
      compensation under Employer’s or Halliburton’s plans for the year of
      Employee’s termination of employment determined as if Employee had
      remained employed by the Employer for the entire year.  Such
      amounts shall be paid to Employee at the time that such amounts are paid
      to similarly situated employees except that no portion of such amounts
      shall be deferred to future
years.

            

    

    
      
         

      

      
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    3.4.           The
severance benefit paid to Employee pursuant to Section 3.3 shall be in
consideration of Employee’s continuing obligations hereunder after such
termination, including, without limitation, Employee’s obligations under Article
4.  Further, as a condition to the receipt of such severance benefit,
Employer, in its sole discretion, may require Employee to first execute a
release, in the form established by Employer, releasing Employer and all other
Halliburton Entities, and their officers, directors, employees, and agents, from
any and all claims and from any and all causes of action of any kind or
character, including, but not limited to, all claims and causes of action
arising out of Employee’s employment with Employer and any other Halliburton
Entities or the termination of such employment.  The performance of
Employer’s obligations under Section 3.3 and the receipt of the severance
benefit provided thereunder by Employee shall constitute full settlement of all
such claims and causes of action.  Employee shall not be under any
duty or obligation to seek or accept other employment following a termination of
employment pursuant to which a severance benefit payment under Section 3.3 is
owing and the amounts due Employee pursuant to Section 3.3 shall not be reduced
or suspended if Employee accepts subsequent employment or earns any amounts as a
self-employed individual.  Employee’s rights under Section 3.3 are
Employee’s sole and exclusive rights against the Employer or its affiliates and
the Employer’s sole and exclusive liability to Employee under this Agreement, in
contract, tort or otherwise, for the termination of his or her employment
relationship with Employer.  Employee agrees that all disputes
relating to Employee’s termination of employment, including, without limitation,
any dispute as to “Cause” or “Voluntary Termination” and any claims or demands
against Employer or Halliburton based upon Employee’s employment for any monies
other than those specified in Section 3.3, shall be resolved through the
Halliburton Dispute Resolution Plan as provided in Section 5.6
hereof.  Nothing contained in this Article 3 shall be construed to be
a waiver by Employee of any benefits accrued for or due Employee under any
employee benefit plan (as such term is defined in the Employees’ Retirement
Income Security Act of 1974, as amended) maintained by Employer or Halliburton
except that Employee shall not be entitled to any severance benefits pursuant to
any severance plan or program of the Employer or Halliburton.

    

    3.5.           Termination
of the employment relationship does not terminate those obligations imposed by
this Agreement which are continuing obligations, including, without limitation,
Employee’s obligations under Article 4.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    ARTICLE
4:  OWNERSHIP AND PROTECTION OF INTELLECTUAL

                            
PROPERTY
AND CONDIFENTIAL INFORMATION:

    

    4.1.           All
information, ideas, concepts, improvements, discoveries, and inventions, whether
patentable or not, which are conceived, made, developed or acquired by Employee,
individually or in conjunction with others, during Employee’s employment by
Employer or any of its affiliates (whether during business hours or otherwise
and whether on Employer’s premises or otherwise) which relate to the business,
products or services of Employer or its affiliates (including, without
limitation, all such information relating to corporate opportunities, research,
financial and sales data, pricing and trading terms, evaluations, opinions,
interpretations, acquisition prospects, the identity of customers or their
requirements, the identity of key contacts within the customer’s organizations
or within the organization of acquisition prospects, or marketing and
merchandising techniques, prospective names, and marks), and all writings or
materials of any type embodying any of such items, shall be the sole and
exclusive property of Employer or its affiliates, as the case may
be.

    

    4.2.           Employee
acknowledges that the businesses of Employer and its affiliates are highly
competitive and that their strategies, methods, books, records, and documents,
their technical information concerning their products, equipment, services, and
processes, procurement procedures and pricing techniques, the names of and other
information (such as credit and financial data) concerning their customers and
business affiliates, all comprise confidential business information and trade
secrets which are valuable, special, and unique assets which Employer or its
affiliates use in their business to obtain a competitive advantage over their
competitors.  Employee further acknowledges that protection of such
confidential business information and trade secrets against unauthorized
disclosure and use is of critical importance to Employer and its affiliates in
maintaining their competitive position.  Employee hereby agrees that
Employee will not, at any time during or after his or her employment by
Employer, make any unauthorized disclosure of any confidential business
information or trade secrets of Employer or its affiliates, or make any use
thereof, except in the carrying out of his or her employment responsibilities
hereunder.  Confidential business information shall not include
information in the public domain (but only if the same becomes part of the
public domain through a means other than a disclosure prohibited
hereunder).  The above notwithstanding, a disclosure shall not be
unauthorized if (i) it is required by law or by a court of competent
jurisdiction or (ii) it is in connection with any judicial, arbitration, dispute
resolution or other legal proceeding in which Employee’s legal rights and
obligations as an employee or under this Agreement are at issue; provided,
however, that Employee shall, to the extent practicable and lawful in any such
events, give prior notice to Employer of his or her intent to disclose any such
confidential business information in such context so as to allow Employer or its
affiliates an opportunity (which Employee will not oppose) to obtain such
protective orders or similar relief with respect thereto as may be deemed
appropriate.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    4.3.           All
written materials, records, and other documents made by, or coming into the
possession of, Employee during the period of Employee’s employment by Employer
which contain or disclose confidential business information or trade secrets of
Employer or its affiliates shall be and remain the property of Employer, or its
affiliates, as the case may be.  Upon termination of Employee’s
employment by Employer, for any reason, Employee promptly shall deliver the
same, and all copies thereof, to Employer.

    

    4.4.           For
purposes of this Article 4, “affiliates” shall mean entities in which Employer
or Halliburton has a 20% or more direct or indirect equity
interest.

    

    ARTICLE
5:  MISCELLANEOUS:

    

    5.1.           Except
as otherwise provided in Section 4.4 hereof, for purposes of this Agreement, the
terms “affiliate” or “affiliated” means an entity who directly, or indirectly
through one or more intermediaries, controls, is controlled by, or is under
common control with Halliburton or in which Halliburton has a 50% or more equity
interest.

    

    5.2.           For
purposes of this Agreement, notices and all other communications provided for
herein shall be in writing and shall be deemed to have been duly given when
received by or tendered to Employee, Halliburton or Employer, as applicable, by
pre-paid courier or by United States registered or certified mail, return
receipt requested, postage prepaid, addressed as follows:

    

    
      	
               
      

            	
              If
      to Employer or Halliburton, to Halliburton Company at 3600 Lincoln Plaza,
      500 North Akard Street, Dallas, Texas 75201-3391, to the attention of the
      General Counsel.

            

    

    

    
      	
               
      

            	
              If
      to Employee, to his or her last known personal
  residence.

            

    

    

    5.3.           This
Agreement shall be governed by and construed and enforced, in all respects in
accordance with the law of the State of Texas, without regard to principles of
conflicts of law, unless preempted by federal law, in which case federal law
shall govern; provided, however, that the Halliburton Dispute Resolution Plan
and the Federal Arbitration Act shall govern in all respects with regard to the
resolution of disputes hereunder.

    

    5.4.           No
failure by either party hereto at any time to give notice of any breach by the
other party of, or to require compliance with, any condition or provision of
this Agreement shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time.

    
      
         

      

      
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    5.5.           It
is a desire and intent of the parties that the terms, provisions, covenants, and
remedies contained in this Agreement shall be enforceable to the fullest extent
permitted by law.  If any such term, provision, covenant, or remedy of
this Agreement or the application thereof to any person, association, or entity
or circumstances shall, to any extent, be construed to be invalid or
unenforceable in whole or in part, then such term, provision, covenant, or
remedy shall be construed in a manner so as to permit its enforceability under
the applicable law to the fullest extent permitted by law.  In any
case, the remaining provisions of this Agreement or the application thereof to
any person, association, or entity or circumstances other than those to which
they have been held invalid or unenforceable, shall remain in full force and
effect.

    

    5.6.           It
is the mutual intention of the parties to have any dispute concerning this
Agreement resolved out of court.  Accordingly, the parties agree that
any such dispute shall, as the sole and exclusive remedy, be submitted for
resolution through the Halliburton Dispute Resolution Plan; provided, however,
that the Employer, on its own behalf and on behalf of any of the Halliburton
Entities, shall be entitled to seek a restraining order or injunction in any
court of competent jurisdiction to prevent any breach or the continuation of any
breach of the provisions of Article 4 and Employee hereby consents that such
restraining order or injunction may be granted without the necessity of the
Employer posting any bond.  The parties agree that the resolution of
any such dispute through such Plan shall be final and binding.

    

    5.7.           This
Agreement shall be binding upon and inure to the benefit of Employer, to the
extent herein provided, Halliburton and any other person, association, or entity
which may hereafter acquire or succeed to all or substantially all of the
business or assets of Employer or Halliburton by any means whether direct or
indirect, by purchase, merger, consolidation, or
otherwise.  Employee’s rights and obligations under this Agreement are
personal and such rights, benefits, and obligations of Employee shall not be
voluntarily or involuntarily assigned, alienated, or transferred, whether by
operation of law or otherwise, without the prior written consent of Employer,
other than in the case of death or incompetence of Employee.

    

    5.8.           This
Agreement replaces and merges any previous agreements and discussions pertaining
to the subject matter covered herein.  This Agreement constitutes the
entire agreement of the parties with regard to the terms of Employee’s
employment, termination of employment and severance benefits, and contains all
of the covenants, promises, representations, warranties, and agreements between
the parties with respect to such matters.  Each party to this
Agreement acknowledges that no representation, inducement, promise, or
agreement, oral or written, has been made by either party with respect to the
foregoing matters which is not embodied herein, and that no agreement,
statement, or promise relating to the employment of Employee by Employer that is
not contained in this Agreement shall be valid or binding.  Any
modification of this Agreement will be effective only if it is in writing and
signed by each party whose rights hereunder are affected thereby, provided that
any such modification must be authorized or approved in accordance with any
applicable Halliburton policies and procedures.

    
      
         

      

      
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    IN WITNESS WHEREOF, Employer
and Employee have duly executed this Agreement in multiple originals to be
effective on the Effective Date.

    

                    HALLIBURTON ENERGY
SERVICES, A DIVISION

                    OF HALLIBURTON ENERGY
SERVICES, INC.

    

    

    

                    By:   /s/   Edgar
Ortiz

                    Name:  
Edgar Ortiz

                    Title:     President

    

    

    

                    EMPLOYEE

    

    

                                    /s/   David Sherrer
King

                    David Sherrer
King

    

    
       

      
        11ex102.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
10.2

     

    CSX
DIRECTORS’ PRE-2005 DEFERRED COMPENSATION PLAN

    (As
Amended Through January 8, 2008)

     

    The
purpose of this Plan was to permit members of the Board of Directors of CSX
Corporation to elect deferred receipt of director's fees and to allow CSX
Corporation to make other deferred awards to directors.  This Plan is
intended to constitute a deferred compensation plan for corporate
directors.

     

    
      	
              1.  

            	
              Definitions

            

    

     

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

     

    
      	
              (a)  

            	
              “Account” or
      “Accounts” --
      means the bookkeeping account(s) maintained for each Participant to record
      the amount of Director’s fees he has elected to defer and other deferrals,
      as adjusted pursuant to Section 3.

            

    

     

    
      	
              (b)  

            	
              “Administrator”
      -- means the Senior Human Resources Officer of CSX Corporation or such
      Officer’s designee.

            

    

     

    
      	
              (i)  

            	
              The
      Administrator shall be responsible for the general administration of the
      Plan, claims review, and for carrying out its
      provisions.  Administration of the Plan shall be carried out
      consistent with the terms of the
Plan.

            

    

     

    
      	
              (ii)  

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

            

    

     

    
      	
              (c)  

            	
              “Average Price”
      -- means the average of the high and low price for CSX common stock as
      reported on the New York Stock Exchange - Composite Listing (“NYSE”) on
      the date of the applicable deferral or dividend
  payment.

            

    

     

    
      	
              (d)  

            	
              “Board” -- means
      the Board of Directors of CSX.

            

    

     

    
      	
              (e)  

            	
              “Change of
      Control” -- means any of the
following:

            

    

     

    
      	
              (i)  

            	
              Stock
      Acquisition.  The acquisition, by any individual, entity
      or group within the meaning of Section 13(d)(3) or 14(d)(2) of the
      Securities Exchange Act of 1934, as amended (the "Exchange Act")(a
      "Person") of beneficial ownership (within the meaning of Rule 13d(3)
      promulgated under the Exchange Act) of 20% or more of either (A) the then
      outstanding shares of common stock of the Corporation (the "Outstanding
      Corporation Common Stock"), or (B) the combined voting power of the then
      outstanding voting securities of the Corporation entitled to vote
      generally in the election of directors (the "Outstanding Corporation
      Voting Securities"); provided, however, that
      for purposes of this subsection (i), the following acquisitions shall not
      constitute a Change of Control:  (A) any acquisition directly
      from the Corporation; (B) any acquisition by the Corporation; (C) any
      acquisition by any employee benefit plan (or related trust) sponsored or
      maintained by the Corporation or any corporation controlled by the
      Corporation; or (D) any acquisition by any corporation pursuant to a
      transaction which complies with clauses (A), (B) and (C) of subsection
      (iii) of this Section 1(e);
  or

            

    

     

    
      	
              (ii)  

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

            

    

     

    
      	
              (iii)  

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

            

    

     

    
      	
              (A)  

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

            

    

     

    
      	
              (B)  

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

            

    

     

    
      	
              (C)  

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

            

    

     

    
      	
              (iv)  

            	
              Regulated Business
      Combination.  Consummation of a Business Combination that
      is subject, as a matter of law or contract, to approval by the Agency (a
      “Regulated Business Combination”) unless such Business Combination
      complies with clauses (A), (B) and (C) of subsection (iii) of this Section
      1(e);
or

            

    

     

    
      	
              (v)  

            	
              Liquidation or
      Dissolution.  Consummation of a complete liquidation or
      dissolution of the Corporation or its principal subsidiary approved by the
      Corporation’s shareholders.

            

    

     

    
      	
              (f)  

            	
              “Closing
      Price”--  means the closing price for CSX common stock as
      reported on the New York Stock Exchange - Composite Listing (“NYSE”) on
      the date of the applicable deferral or dividend
  payment.

            

    

     

    
      	
              (g)  

            	
               “CSX” or “Corporation” --
      means CSX Corporation

            

    

     

    
      	
              (h)  

            	
              "Independent
      Advisor" -- means an independent accountant, actuary, benefits
      consulting firm or other entity engaged by CSX to provide Participant
      accounting and other services on behalf of the
  Plan.

            

    

     

    
      	
              (i)  

            	
              “Distribution
      Event” -- means the occurrence of any event listed in Section 1(e), “Change of Control”; provided that for
      purposes of Sections 1(e)(iii), 1(e)(iv) and 1(e)(v), “Consummation” means an actual change
      in ownership of Outstanding Corporation Common Stock, Outstanding
      Corporation Voting Securities, and/or assets of the Corporation or its
      principal subsidiary.

            

    

     

    
      	
              (j)  

            	
              “Effective Date”
      -- means initially January 1, 2003.  Subsequent amendments shall
      be effective as of the indicated effective
  dates.

            

    

     

    
      	
              (k)  

            	
              “Form of Payment
      Election” -- means the election by the Participant of the form of
      distribution (lump sum or installments) he will receive from his Account
      pursuant to Section 5.

            

    

     

    
      	
              (l)  

            	
              “Member” --
      means any person duly elected to the
Board.

            

    

     

    
      	
              (m)  

            	
              “Partial Distribution
      Election” -- means a Distribution Election for a portion of a
      Participant’s Account under Section 4.

            

    

     

    
      	
              (n)  

            	
              “Participant” --
      means any Member who elected to participate in the Plan so long as he or
      she is entitled to a benefit under the
Plan.

            

    

     

    
      	
              (o)  

            	
              “Plan” -- means
      the CSX Directors’ Pre-2005 Deferred Compensation
  Plan.

            

    

     

    
      	
              (p)  

            	
              “Trust” -- means
      a grantor trust or trusts established by CSX which will substantially
      conform to the terms of the Internal Revenue Service model trust as
      described in Revenue Procedure 92-64, 1992-2 C.B. 422.  CSX is
      not obligated to make any contribution a
Trust.

            

    

     

    
      	
              (q)  

            	
               “Valuation
      Date”  -- means each June and December 31 and such other
      dates as the Administrator deems necessary or appropriate to value
      Participants' benefits under this
Plan.

            

    

     

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

     

    
      	
              2.  

            	
              Participation

            

    

     

    No Member
may become a Participant in the Plan or make further deferrals pursuant to the
Plan for periods after December 31, 2004.

     

    
      	
              3.  

            	
              Participant’s
      Accounts

            

    

     

    
      	
              (a)  

            	
              So
      long as he or she is a Member, a Participant may elect, pursuant to forms
      provided by the Administrator, to have all or any portion of his or her
      elective and other deferrals, not required to be credited or actually
      credited to the affected Participant’s stock account pursuant to the terms
      of the CSX Corporation Stock Plan for Directors (“Stock Account”),
      credited as follows:

            

    

     

    Through December 31,
2005:

     

    To an
interest-accruing account (“Interest Account”) or a CSX Phantom Stock Account
(“Phantom Stock Account”).

     

    After December 31,
2005:

     

    To an
Account or Accounts related to and accounted for in the same manner as the
earnings benchmarks used in conjunction with the CSX Executives’ Deferred
Compensation Plan (the “EDC Plan”) (a “Benchmark Account”) approved from time to
time by the Administrator.

     

    
      	
              (b)  

            	
              Deferrals
      of Director’s fees in CSX common stock pursuant to the CSX Corporation
      Stock Plan for Directors and other CSX deferred common stock awards were
      credited to the affected Participant’s Stock
  Account.

            

    

     

    
      	
              (c)  

            	
              Through
      December 31, 2005, interest accrued on a Participant’s Interest Account
      from the first day of the month following the date the deferred director’s
      fee would otherwise have been paid to the Participant until it is actually
      paid, such interest to be credited to an affected Participant’s Account
      and compounded quarterly at the end of each calendar quarter. Interest
      will be credited quarterly based on the annual rate of 10-year U.S.
      Treasury bonds as published by the Wall Street Journal as
      of the first business day of October in the preceding calendar
      year.  The value of a Participant’s Interest Account shall be
      the sum of amounts deferred and all interest accrued
      thereon.  Interest Accounts ceased to exist as of December 31,
      2005.  All undistributed amounts credited to such accounts were
      credited to a Benchmark Account, effective January 1,
  2006.

            

    

     

    
      	
              (d)  

            	
              Credits
      (including both deferrals of directors’ fees and dividends) to and the
      value of Phantom Stock Accounts were based upon Average Price. Credits to
      and the value of Stock Accounts (other than deferred CSX common stock
      share awards declared by the Company), are based upon Average Price
      through December 31, 2007, and Closing Price
      thereafter.  Notwithstanding the preceding, full and fractional
      shares credited to Stock Accounts pertaining to dividends on CSX common
      stock held by the trustee of the Directors’ Stock Trust or a successor
      trust shall be credited based on the actual purchase price of the CSX
      common stock acquired by the trustee with such
  dividends.

            

    

     

    
      	
              (e)  

            	
              Through
      December 31, 2005, a Participant, while a Member, could elect at any time
      to transfer all or any portion of amounts deferred, including all earnings
      thereon, between his or her Interest Account and Phantom Stock
      Account.  After December 31, 2005, a Participant may elect, on
      forms provided by and pursuant to rules established by the Administrator,
      to transfer all or any portion of amounts held in a Benchmark Account
      among such accounts.  No transfers may be made into the Stock
      Account.  Transfers out of the Stock Account may only be made
      when a Participant is no longer a
Member.

            

    

     

    
      	
              (f)  

            	
              Notwithstanding
      Sections 3(a), (c), and (e) to the contrary, with respect to Participants
      in pay status on December 31, 2004, the undistributed portion of their
      Accounts shall continue to be credited with earnings in accordance with
      the provisions of the Plan as an Interest Account, Phantom Stock Account
      or Stock Account, as applicable (assuming such provisions had continued in
      effect), until the affected Participant’s distribution is
      complete.

            

    

     

    
      	
              4.  

            	
              Distribution of
      Accounts

            

    

     

    
      	
              (a)  

            	
              Amounts
      deferred under the Plan and credited to an Account shall be distributed to
      a Participant from such Account in a lump sum one year following the date
      in which a Participant ceases to be a Member, unless he shall file a
      Distribution Election as provided in this Section 4 or a Form of Payment Election as provided in
      Section 5.

            

    

     

    
      	
              (b)  

            	
              A
      Participant may file with the Administrator a Distribution Election for
      the distribution from an Account
upon:

            

    

     

    
      	
              (i)  

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

            

    

     

    
      	
              (ii)  

            	
              retirement
      from the Board.

            

    

     

    
      	
              (c)  

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

            

    

     

    
      	
              (i)  

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

            

    

     

    
      	
              (ii)  

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

            

    

     

    after
which time no Distribution Election shall be filed.

     

    
      	
              (d)  

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

            

    

     

    
      	
              (e)  

            	
              Except
      in the event of retirement from the Board, a distribution made pursuant to
      a Distribution Election shall not commence prior to a date that is three
      years subsequent to the date the Participant first makes a Deferral under
      either this Plan or a predecessor plan which provides for the deferral of
      director’s fees

            

    

     

    
      	
              (f)  

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

            

    

     

    
      	
              (g)  

            	
              A
      Participant may request and receive a withdrawal from his Account at any
      time without filing a Distribution Election under this Section 4.  Any such withdrawal shall result
      in the forfeiture of an amount equal to the portion of the Participant's
      Account that is withdrawn, multiplied by the Mid-term Applicable Federal
      Rate determined as of the Valuation Date upon which the withdrawal is
      effective.

            

    

     

    
      	
              (h)  

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

            

    

     

    
      	
              5.  

            	
              Form of
      Payment

            

    

     

    The Form
of Payment Elections provided in this Section 6
shall be made in writing and may be changed at any time prior to a date that is
six months prior to the date distribution is to commence, after which time the
Form of Payment Election shall be irrevocable.  If installment
payments are elected for an Account, payments shall be made, as the Participant
may elect, for either five, ten, or fifteen years.  Installments shall
be made as soon as practicable after each June 30 and December
31.  The amount of each installment shall be determined by multiplying
the value of the Participant's account as of the last business day of June or
December immediately preceding the installment date by a fraction, the numerator
of which shall be one (1) and the denominator of which shall be the number of
installment payments over which payment of such amount is to be made, less the
number of installment payments previously made.  In the case of
installments from a Stock Account, fractional share amounts shall be rounded up
to the next highest whole share amount, except in the case of the final
installment, in which case a cash payment will be made for any fractional
shares.

     

    
      	
              6.  

            	
              Death of a
      Participant

            

    

     

    
      	
              (a)  

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

            

    

     

    
      	
              (b)  

            	
              In
      the event a Participant shall die after he ceases to be a Member and
      before he has received complete distribution from his Account, the balance
      credited to his Account shall be paid to his Designated Beneficiary
      consistent with the Form of Payment Elections made by the Participant as
      described in Section 5.

            

    

     

    
      	
              (c)  

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

            

    

     

    
      	
              7.  

            	
              Obligation of
      CSX

            

    

     

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

     

    
      	
              8.  

            	
              Change of
      Control

            

    

     

    
      	
              (a)  

            	
              Within
      45 days of a Distribution Event, each Participant not making an election
      under 8(c) below, shall be paid a lump sum
      payment equal to the amount the Participant would have been entitled to
      receive determined under Section 5 had he
      ceased to be a Member and selected an immediate lump sum
      payment.  The amount of each Participant's lump sum payment
      shall be determined by the Independent
Advisor.

            

    

     

    
      	
              (b)  

            	
              A
      Participant who elected, within 90 days after becoming a Participant, to
      have amounts and benefits determined and payable under the terms of the
      Plan as if a Distribution Event had not occurred, 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.

            

    

     

    
      	
              (c)  

            	
              Notwithstanding
      anything in the Plan to the contrary, each Participant who made an
      election under Section 8(b), may elect within
      90 days following a Distribution Event, in a time and manner determined by
      the Administrator, to receive a lump sum payment calculated under the
      provisions of Section 8(a), determined as of
      the Valuation Date next preceding such payment, except that such
      calculated amount shall be reduced by 5% and such reduction shall be
      irrevocably forfeited to CSX by the Participant.  Furthermore,
      as a result of such election, the Participant shall no longer be eligible
      to participate or otherwise benefit from the Plan.  Payments
      under this Section 8(c) shall be made not
      later than 7 days following receipt by CSX of the Participant's
      election.  The Administrator shall, no later than 7 days after a
      Distribution Event has occurred, give written notification to each
      Participant eligible to make an election under this Section 8(c), that a Distribution Event has occurred and
      informing such Participant of the availability of the
      election.

            

    

     

    
      	
              9.  

            	
              Claims Against
      Participant's Account

            

    

     

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

     

    
      	
              10.  

            	
              Competition by
      Participant

            

    

     

    In the
event a Participant ceases to be a Member and becomes a proprietor, officer,
partner, employee, director, or otherwise becomes affiliated with any business
that is in competition with the Corporation, his Accounts may, if directed by
the Board in its sole discretion, be paid immediately to him in a lump
sum.

     

    
      	
              11.  

            	
              Payment of Credit
      Balance to Participant's
Account

            

    

     

    Notwithstanding
anything herein to the contrary, the Board may, in its sole discretion, direct
payment in a lump sum, of any or all of the credit balance appearing at the time
in the Accounts of a Participant.

     

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

     

    
      	
              12.  

            	
              Amendment or
      Termination

            

    

     

    This Plan
may be altered, amended, suspended, or terminated at any time by the Board, on
the recommendation of the Compensation Committee of the Board, provided,
however, that no alteration, amendment, suspension, or termination shall be made
to this Plan which would result in the distribution of amounts credited to the
accounts of all Participants in any manner other than is provided in this Plan
without the consent of all Participants.  Further, the Board may
delegate its authority to take such actions by charter or
otherwise.

     

    
      	
              13.  

            	
              Impact of Future
      Legislation or Regulation

            

    

     

    
      	
              (a)  

            	
              This
      Section 13 shall become operative upon the
      enactment of any change in applicable statutory law or the promulgation by
      the Internal Revenue Service of a final regulation or other pronouncement
      having the force of law, which statutory law, as changed, or final
      regulation or pronouncement, as promulgated, would cause any Participant
      to include in his  federal gross income amounts accrued by the
      Participant under the Plan on a date (an “Early Taxation Event”) prior to
      the date on which such amounts are made available to him or her
      hereunder.

            

    

     

    
      	
              (b)  

            	
              Notwithstanding
      any other Section of this Plan to the contrary (but subject to subsection
      (c), below), as of an Early Taxation Event, the feature or features of
      this Plan, or the election by a Participant that would cause the Early
      Taxation Event shall be null and void, to the extent, and only to the
      extent, required to prevent the Participant from being required to include
      in his federal gross income amounts accrued by the Participant under the
      Plan prior to the date on which such amounts are made available to him
      hereunder.  By way of example, but not by way of limiting the
      generality of the foregoing, if a statute is enacted that would require a
      Participant to include in his or her federal gross income amounts accrued
      by the Participant under the Plan prior to the date on which such amounts
      are made available to him or her because of the Participant’s right to
      receive a distribution of a portion of his Account under Section 4(h), the right of all Participants to receive
      distributions under Section 4(h) shall be
      null and void as of the effective date of that statute.  If only
      a portion of a Participant's Account is impacted by the change in the law,
      then only such portion shall be subject to this Section, with the
      remainder of the Account not so affected being subject to such rights and
      features as if the law were not changed.  If the law only
      impacts Participants who have a certain status with respect to the
      Company, then only such Participants shall be subject to this
      Section.

            

    

     

    
      	
              (c)  

            	
              Notwithstanding
      Section 13(b) above, if an Early Taxation
      Event occurs (e.g., if a
      change in law is retroactive), the amounts that become taxable on the
      Early Taxation Event shall be distributed to each Participant as soon as
      practicable following such Early Taxation Event or, if later, the date of
      enactment or promulgation.

            

    

     

    

    
      	
              34253.000052
      RICHMOND 986338v7

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