SEC Contract Filing

Filing Date: 2015-02-13

Document Content:
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>d873537dex101.htm
<DESCRIPTION>CSX 2015-2017 LONG-TERM INCENTIVE PLAN
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<TITLE>CSX 2015-2017 Long-Term Incentive Plan</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">Exhibit 10.1 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>CSX Long Term Incentive Plan </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>2015-2017 Cycle </B></P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Purpose and
Objective </U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The CSX Long Term Incentive Plan (&#147;LTIP&#148; or the &#147;Plan&#148;) is the vehicle under which CSX Corporation (&#147;CSX&#148;
or &#147;Company&#148;) 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&#146;s Board of Directors (the &#147;Committee&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company seeks to motivate and reward employees through the issuance of
Performance Units. Performance Units are settled upon certification of the Company&#146;s achievement of predetermined levels of (i)&nbsp;Operating Ratio and (ii)&nbsp;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. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Effective Date and Performance
Period </U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The 2015-2017 LTIP Cycle (the &#147;2015-2017 Cycle&#148; or &#147;Cycle&#148;) commences February&nbsp;11, 2015 (&#147;the Effective
Date&#148;) and ends December&nbsp;29, 2017. The Performance Period, the time during which Company performance is measured, commences December&nbsp;27, 2014 and ends December&nbsp;29, 2017. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Eligibility and Participation </U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Active employees of
CSX or participating subsidiaries (the &#147;Company&#148; or collectively, the &#147;Companies&#148;) in salary Band 06 and above as of the Effective Date (&#147;Participants&#148;) are eligible to participate in the Plan for the 2015-2017 LTIP
Cycle and receive a number of Performance Units determined by reference to a dollar denominated long-term incentive compensation award 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. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Plan Design </U></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Under CSX&#146;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 Band<SUP STYLE="font-size:85%; vertical-align:top">1</SUP>. For the 2015-2017 Cycle, the value of Performance Units comprises 75% of the value of long-term incentive compensation, and the value of
Restricted Stock Units comprises the other 25%. Restricted Stock Units are provided in a separate grant. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The number of Performance Units an employee
receives is calculated by dividing 75% 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
2015-2017 Cycle, the average stock price equaled $35.61, representing the months of November and December 2014 and January 2015. This price is used solely to determine the number of Performance Units granted to each Participant at the commencement
of the Cycle. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Performance Measures </I></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Plan uses a
combination of (i)&nbsp;Operating Ratio (&#147;OR&#148;) and (ii)&nbsp;Return on Assets (&#147;ROA&#148;) as the performance measures, excluding non-recurring items as disclosed in the Company financial statements. The measures are applied
independently and weighted equally. Thus, if both <I>target</I> OR and <I>target</I> ROA are achieved, each measure would pay at 50% for a total payout of 100% of the grant value. If the <I>maximum</I> OR and <I>maximum </I>ROA are achieved then
each measure would generate a 100% payout for a total payout at 200%. </P