Document:

CSX 2017-2019 Long Term Incentive Plan

 Exhibit 10.1 

CSX Long Term Incentive Plan 

2017-2019 Cycle 
 Purpose and
Objective 
 The CSX Long Term Incentive Plan (“LTIP” or the “Plan”) is the vehicle under which CSX Corporation (“CSX”
or “Company”) issues Performance Grants, as described in the CSX Stock and Incentive Award Plan, referred to herein as Performance Units. The Performance Units are issued pursuant to, and are subject to the terms (including defined terms)
and conditions of, the CSX Stock and Incentive Award Plan. Under the LTIP, a Performance Unit represents the right to receive a share of CSX common stock. The purpose of the LTIP is to reward eligible employees for their contribution to the
attainment of improved operating performance and asset utilization which is intended to result in increased total shareholder return. As described below in the Plan Design section, grants of Performance Units are approved by the Compensation
Committee of CSX’s Board of Directors (the “Committee”). 
 The Company seeks to motivate and reward employees through the issuance of
Performance Units. Performance Units are settled upon certification of the Company’s achievement of predetermined levels of: (i) Operating Ratio; and (ii) Return on Assets during the Performance Period (as defined below). The payments
are referred to as Performance Awards at the time of payment, and are payable in the form of CSX common stock. 
 Effective Date and Performance
Period 
 The 2017-2019 LTIP Cycle (the “2017-2019 Cycle” or “Cycle”) commences February 22, 2017 (“the Effective
Date”) and ends December 27, 2019. The Performance Period, the time during which Company performance is measured, commences December 31, 2016 and ends December 27, 2019. 

Eligibility and Participation 
 Active employees of
CSX or participating subsidiaries (the “Company” or collectively, the “Companies”) in salary Band 06 and above as of the Effective Date (“Participants”) are eligible to participate in the Plan for the 2017-2019 LTIP
Cycle and receive a number of Performance Units determined by reference to a dollar denominated long-term incentive compensation value approved by the Committee. The Performance Unit schedule is maintained by the Plan Administrator. Awards will not
be prorated for employees hired or promoted into and within Band 06 and above after the Effective Date. 

 Plan Design 

Under CSX’s long-term incentive compensation program design, the Committee approves the annual competitive dollar value of long-term incentive
compensation for Participants primarily based upon Band1. For 2017, the long-term incentive compensation value is allocated as follows: Performance Units (50%), Restricted Stock Units
(25%) and Stock Options (25%). Restricted Stock Units and Stock Options are provided in separate grants. 
 The number of Performance Units a
Participant receives is calculated by dividing 50% of the dollar value of the long-term incentive compensation mentioned above by the average closing price of CSX common stock during the most recent three full months preceding the Effective Date.
For the 2017-2019 Cycle, the average stock price equaled $37.22, representing the months of November 2016, December 2016 and January 2017. This price is used solely to determine the number of Performance Units granted to each Participant at the
commencement of the Cycle. 
 Performance Measures 
 The
Plan uses as the performance measures a combination of (i) Operating Ratio (“OR”) and (ii) Return on Assets (“ROA”) as defined herein and excluding non-recurring items as disclosed in the Company’s financial
statements. OR and ROA have been selected as performance measures because of their high correlation to shareholder returns. Efforts to improve these measures align CSX’s business objectives in a way that allows individuals to translate personal
actions into desired performance outcomes. Each Participant should be motivated to grow revenue, reduce expense, improve service, increase productivity, improve safety and increase asset utilization. 

The measures are applied independently and weighted equally. Thus, if both target OR and target ROA are achieved, each measure would pay at 50%
for a total payout of 100% of the grant value. If the maximum OR and maximum ROA are achieved then each measure would generate a 100% payout for a total payout at 200%. 

 

	 	1.	Operating Ratio: OR is defined as CSX Corporation operating expenses divided by operating revenue. Performance achievement for the Cycle is based on cumulative operating expenses and operating revenue for the
Performance Period. 

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

	1 	The Committee, at its sole discretion, may grant to a Participant a different long-term compensation dollar value than to other Participants within the same Band. 

  
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	 	2.	Return on Assets: ROA is defined as Tax-Adjusted Operating Income divided by Net Properties. 

  

					
	 	 	 
	            Return on Assets	  	=    	  	Tax-Adjusted Operating Income
	  	  	Net Properties

 Tax Adjusted Operating Income is determined by applying a 38% tax rate to Operating Income, which is
based on the cumulative Operating Income during the Performance Period. Net Properties is equal to gross properties less accumulated depreciation calculated based on the quarterly average during the Performance Period. 

The terms Operating Income, properties and accumulated depreciation shall be defined and measured as set forth in the Company’s financial
statements at the end of the Cycle. The ROA chart in Exhibit A reflects the ROA targets and related payout percentages. 
 Performance Awards

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

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

Impact of Change in Employment Status 

Performance Awards generally will be paid only to Participants who are actively employed by the Companies at the end of the applicable
three-year performance cycle. Except as provided below, all other Participants whose employment terminates prior to the end of the Cycle shall forfeit any and all Performance Units and thus receive no Performance Award. All earned Performance Awards
will be paid no later than March 15 following the end of the Performance Period. 
 A Participant whose employment terminates due to
death, disability, retirement, or return to contract employment shall be eligible to receive a pro-rata Performance Award under the LTIP based on the Performance 

  
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Award the Participant would have received had there been no death, disability, retirement or return to contract employment. The pro-rata Performance Award will be determined based upon the number
of months of participation relative to the number of months in the Performance Period. Retirement shall mean: (i) the attainment of age 55 and 10 years of Company service; or (ii) the attainment of age 65. Disability shall mean long-term
disability as defined in the long-term disability plan of the Company covering the Participant. The foregoing notwithstanding, Management shall have the discretion to terminate Performance Awards for Participants who retire but subsequently violate
a non-compete agreement. In the case of death, such Performance Awards shall be paid to the Participant’s estate, or as otherwise required by law. 

Participants who are part-time employees (less than 40 hours per week) on the Effective Date of the 2017-2019 LTIP Cycle shall be entitled to a
pro-rata Performance Award based on the reduced hours. 
 Taxation of Performance Awards 

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

Plan Administration 
 The CSX Senior Vice President
and Chief Administrative Officer shall be the Plan Administrator and shall interpret and construe the provisions of the Plan subject to the terms of the CSX Stock and Incentive Award Plan and the Compensation Committee’s authority and
responsibility thereunder. 
 Plan Amendments and Termination  

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

Clawback Provision 
 In the event of Company
accounting irregularities discovered within three years after receipt of payment in connection with a Performance Award, which requires the Company to restate its financial statements due to material noncompliance with any financial reporting
requirements under applicable securities laws, the Participant shall repay all amounts in excess of the Performance Award the 

  
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Participant should have received as determined under the restated financial statements. The Clawback provision related to financial restatements applies only to Participants who are
Section 16 officers at the time of grant or restatement. 
 In cases where all or part of the Performance Award is deferred under the CSX
Executives’ Deferred Compensation Plan, breach of these conditions shall result in an immediate forfeiture of the portion deferred, including any earnings thereon from the date of deferral, in the amount needed to equal the applicable clawback
amount. 
 Consideration for Non-compete Agreement 

In consideration for eligibility under this 2017-2019 LTIP Cycle, Participants in Band 10 and above must enter into a non-compete agreement, if not already in
effect, as prescribed and agreed to by CSX. Eligibility in the 2017-2019 LTIP Cycle for Participants in Band 10 and above is conditioned upon the existence of such non-compete agreement. 

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

The adoption of the 2017-2019 Cycle of the LTIP does not imply any commitment to continue the Plan or any other long-term incentive compensation plan or
program for any succeeding year or period. Neither the Plan, nor any Performance Unit or Performance Award made under the Plan shall create any employment contract or relationship between the Companies and any Participant. 

Notwithstanding anything herein to the contrary, Performance Units issued to “covered employees” under Section 162(m) of the Internal Revenue
Code shall be treated in a manner intended to comply with Section 162(m) of the Internal Revenue Code. 
 Committee Discretion 

The Compensation Committee may apply its discretion in order to reduce payouts to Executive Team members based on the Company’s relative Total Shareholder
Return in accordance with Exhibit C. No upward discretion may be applied to LTIP payouts. 

  
 5Separation Agreement

 Exhibit 10.2 

SEPARATION AGREEMENT 

THIS SEPARATION AGREEMENT (this “Agreement”), effective as of February 27, 2017, is by and between MICHAEL J. WARD (the
“Executive”) and CSX CORPORATION, a Virginia corporation (the “Company”), and, with respect to the retirement of the Executive from the Company, provides as follows: 

WHEREAS, on February 14, 2017, the Executive notified the Company’s Board of Directors of his intention to retire from the Company
and its affiliates effective as of May 31, 2017; and 
 WHEREAS, as part of its succession planning process, the Company’s Board
of Directors believes the Company’s new leadership would benefit from the Executive being willing to offer advice and transition support upon request; and 

WHEREAS, the Executive participates in the CSX Long Term Incentive Plan 2015-2017 Cycle (the “2015-2017 LTIP”), the CSX Long Term
Incentive Plan 2016-2018 Cycle (the “2016-2018 LTIP”) and the CSX Long Term Incentive Plan 2017-2019 Cycle (the “2017-2019 LTIP” and, together with the 2015-2017 LTIP and the 2016-2018 LTIP, the “LTIPs”); and 

WHEREAS, on February 22, 2017, the Compensation Committee of the Company’s Board of Directors (the “Committee”) and the
Company’s Board of Directors approved certain amendments to the terms of the Executive’s participation in the LTIPs in recognition of the Executive’s service and contributions to the Company and its affiliates, in furtherance of an
orderly transition of the Company’s leadership and in exchange for the Executive’s agreement to waive certain rights or claims the Executive may have had relating to his employment by the Company, including under that certain Change of
Control Agreement, dated as of February 7, 2017 (the “COC Agreement”), and any other agreement between the Executive and the Company with respect to the subject matter of the COC Agreement (each, a “Predecessor Agreement”);
and 
 WHEREAS, the Executive and the Company wish to memorialize the actions taken by the Committee and the Company’s Board of
Directors. 
 NOW, THEREFORE, the Executive and the Company agree as follows: 

1. Effectiveness. This Agreement shall be effective as of February 27, 2017. The Executive shall resign from all elected,
appointed or other positions held with the Company or its affiliates effective as of May 31, 2017, or such earlier date as may be requested by the Company. For the avoidance of doubt, if the Executive fulfills the requirements set forth in
Section 3 of this Agreement, the Company’s obligation to amend the terms of the Executive’s participation in the LTIPs and the Executive’s right to receive his current salary and benefits through May 31, 2017, shall not be
affected by a resignation of the Executive at the Company’s request from any positions held with the Company occurring before May 31, 2017. 

 2. Release and Waiver of Claims. 

a. The Executive unconditionally and irrevocably releases the Company, its affiliates and all of its and their past and present officers,
directors, employees, agents, representatives, assigns, attorneys, insurers, subsidiaries, predecessors, benefit plans, the benefit plans’ sponsors, fiduciaries, administrators, affiliates and agents and any other persons acting by, through,
under or in concert with any of the persons or entities listed in this Section 2 (the “Released Parties”) from and hereby waives any and all known or unknown claims, charges, promises, actions or similar rights that the Executive may
have (collectively, “Claims”), including, but not limited to, those relating in any way to the Executive’s employment with the Company or any of its affiliates, the COC Agreement and any Predecessor Agreements. The COC Agreement and
any Predecessor Agreements are terminated effective February 27, 2017, on and after which date the Executive shall have no rights under any such agreement; provided, however, that the Executive’s obligations under Section 10 of the
COC Agreement shall survive the termination of the COC Agreement. 
 b. Notwithstanding anything in this Agreement to the contrary,
(1) the Executive’s right to indemnification, advancement and exculpation currently set forth in the organizational documents of the Company or its applicable affiliates or any rights under any directors and officers liability insurance
policies of the Company or its applicable affiliates currently in effect, (2) the Executive’s right to receive earned but unpaid salary, compensation relating to the Performance Units, Restricted Stock Units and Options under the LTIPs,
any other equity or equity-based awards and the pro rata portion of the Executive’s annual bonus for 2017 (subject, in each case, to the Company’s achievement of pre-established performance goals, if
applicable) and (3) any rights under any employee benefit plan of the Company or its affiliates in which the Executive participates (other than the LTIPs) shall not be affected by this Agreement. 

c. This Agreement does not prohibit Claims that first arise after the date hereof (other than any Claims under the COC Agreement or any
Predecessor Agreement, all of which are waived), arise out of or in connection with the interpretation or enforcement of this Agreement or any rights or Claims that cannot be waived as a matter of law. If it is determined that any Claim covered by
this Agreement cannot be waived as a matter of law, the Executive agrees that this Agreement will nevertheless remain valid and fully enforceable as to the remaining released Claims. 

d. The Executive understands that he is releasing Claims that he may not know about, and that is the Executive’s knowing and voluntary
intent. The Executive expressly waives all rights he might have under any law that is intended to prevent unknown claims from being released and understands the significance of doing so. 

e. The parties agree to refrain from expressing to any third party any derogatory or negative opinions concerning the other party, its
affiliates and, in the case of the Company, its and its affiliates’ respective officers, directors, employees, operations and services; provided, however, that nothing herein shall be construed to prevent or restrict either party from
responding truthfully to inquiries as a part of an official investigation conducted by or proceeding before a court, government or law enforcement agency or in response to a subpoena or from making any disclosure otherwise required by any law, rule
or regulation (including any applicable stock exchange rule). 

 3. Amendment of LTIPs. If the Executive continues to be available to provide services to
the Company until May 31, 2017, then the terms of the Executive’s participation in the LTIPs shall be amended as follows, effective May 31, 2017: 

a. Performance Units. The Executive’s rights with respect to the Performance Units granted under each of the LTIPs shall be
determined as if the date of his retirement under the LTIPs is May 31, 2018, and as if the Executive remained employed by the Company until May 31, 2018. 

b. RSUs. The Executive’s rights under each of the Restricted Stock Unit Grant Agreements evidencing the grant of restricted stock
units to the Executive under each of the LTIPs (the “RSUs”) shall be determined as if the date of his retirement under such agreements is May 31, 2018, and as if the Executive remained employed by the Company until May 31, 2018.

 c. Options. The Executive’s rights under each of the Notices of Non-Qualified Stock
Option Grant evidencing the options granted to the Executive under the 2016-2018 LTIP and the 2017-2019 LTIP (the “Options”) shall be determined as if the date of his retirement under such agreements is May 31, 2018, and as if the
Executive remained employed by the Company until May 31, 2018. 
 Except as provided in the preceding clauses (a), (b) and (c), the Executive’s
rights under and with respect to the Performance Units, the RSUs and the Options shall be governed by the original terms of the LTIPs, the Restricted Stock Unit Grant Agreements and the Notices of
Non-Qualified Stock Option Grant, as applicable. 
 4. Section 409A. The Executive
understands, acknowledges and agrees that any amounts payable under this Agreement are intended to be exempt from or comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and treasury regulations relating
thereto, so as not to subject the Executive to the payment of any interest and tax penalty which may be imposed under Section 409A of the Code, and Agreement shall be interpreted and construed accordingly; provided, however, that the Company and the
other Released Parties shall not be responsible for any taxes, penalties, interest or other losses or expenses incurred by the Executive due to any failure to be exempt from or to comply with Section 409A of the Code. In furtherance thereof,
the terms of this Agreement, to the extent necessary, may be modified to be exempt from and so comply with Section 409A of the Code. All references in this Agreement to the Executive’s separation or termination of his employment shall mean
a separation from service within the meaning of Section 409A of the Code. Each payment under the Agreement as a result of the separation of the Executive’s service shall be considered a separate payment for purposes of Section 409A of the
Code. 
 5. Successors. This Agreement shall inure to the benefit of, be enforceable by and be binding upon the Executive, his
successors and heirs and beneficiaries (whether by will or the laws of descent and distribution). This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. 

 6. Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of Florida, without reference to principles of conflict of laws, and, where applicable, federal law. 
 7.
Severability. If any provision of this Agreement or the application thereof is held invalid, any such invalidity shall not affect other provisions or applications of this Agreement that can be given effect without the invalid provisions or
application.. 
 8. Other Agreements Unaffected. Except as expressly provided herein, this Agreement shall have no effect on any
other agreement between the Executive and the Company or any of its affiliates, and any such other agreement shall remain in full force and effect in accordance with its terms, including, for the avoidance of doubt, that certain Noncompete
Agreement, dated May 1, 2007, between the Company and the Executive. 
 9. Amendment. This Agreement may be amended or modified
only by written agreement executed by the Executive and the Company or their respective successors and legal representatives. 
 10.
Counterparts. This Agreement may be executed in counterparts, each of which shall constitute an original document and which together constitute one document. 

[Signature Page Follows] 

 IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization of the Committee, the Company has caused these presents to be executed in its name and on its behalf, all as of the day and year first above written. 

MICHAEL J. WARD 
  

			
	 /s/ Michael J. Ward

	
	CSX CORPORATION
		
	By:	 	 /s/ Steven T. Halverson

	Name:	 	Steven T. Halverson
	Its:	 	Director and Chair of the Compensation Committee

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