1990 Stock Award Plan - CSX Co

1990 Stock Award Plan - CSX Corp.(Sep 08, 1999)

  CSX CORPORATION

                      1990 Stock Award Plan as Amended and
                      Restated Effective February 14, 1996
                     (As Amended through September 8, 1999)


1.      Purpose.

        The purpose of this 1990 Stock Award Plan (the 'Plan') is to further the
long term stability and financial  success of CSX Corporation (the 'Company') by
rewarding  selected  meritorious  employees  by the award of  Company  Stock (as
hereinafter  defined).  The Board of  Directors  believes  that such awards will
strengthen  the  desire of such  employees  to  remain  with the  Company,  will
encourage continued work of superior quality and will further the identification
of those employees' interests with those of the Company's shareholders.

2.      Definitions.

        As used in the  Plan,  the  following  terms  shall  have  the  meanings
indicated:

(a)            'Beneficiary' means the person designated by the Participant,  on
               a form  provided by the Company,  to exercise  the  Participant's
               rights in accordance  with Section 10 of the Plan in the event of
               his death.

(b)            'Benefits Trust Committee'  means the Committee  created pursuant
               to the CSX Corporation and Affiliated Companies Benefits
               Assurance Trust.

(c)            'Board' means the Board of Directors of the Company.

(d)            'Cause'  means  (i) an act or acts of  personal  dishonesty  of a
               Participant intended to result in substantial personal enrichment
               of the  Participant  at the  expense of the Company or any of its
               subsidiaries,  (ii) violation of the management  responsibilities
               by the Participant  which is demonstrably  willful and deliberate
               on  the  Participant's  part  and  which  is  not  remedied  in a
               reasonable  period of time after  receipt of written  notice from
               the  Company  or a  subsidiary,  or (iii) the  conviction  of the
               Participant of a felony involving moral turpitude.

(e)            'Change of Control' is defined in Section 9(e).

(f)            'Code' means the Internal Revenue Code of 1986, as amended.

(g)            'Committee' means the Committee of the Board described in Section
               10.

(h)            'Company' means CSX Corporation, a Virginia corporation.

(i)            'Company Stock' means the Common Stock of the Company and rights,
               options or warrants for the purchase of securities of the Company
               which may be issued with  shares of Common  Stock  pursuant,  and
               subject, to plans or agreements adopted or entered into from time
               to time by the Company.  If the par value of the Company Stock is
               changed,  or in the event of a change in the capital structure of
               the Company (as provided in Section 9), the shares resulting from
               such a change shall be deemed to be the Company  Stock within the
               meaning of the Plan.

(j)            'Company  Stock Award' or 'Stock  Award' means a grant of Company
               Stock  made  by the  Committee,  or by an  individual  or  entity
               operating under authority delegated by the Committee, pursuant to
               the provisions of the Plan.

(k)            'Completed  Month' means a period  beginning  on the  anniversary
               date of a grant of an Option  and  ending on the day  before  the
               next monthly anniversary.

(l)            'Date of Grant'  means the date on which a Stock Award is granted
               by the Committee,  or by an individual or entity  operating under
               authority delegated by the Committee.

(m)            'Disability'  means  long-term  disability as determined  under
               the Company's Salary Continuance  and  Long-Term Disability Plan.

(n)            'Divisive   Transaction'   means  a  transaction   in  which  the
               Participant's  employer  ceases to be a  Subsidiary  or a sale of
               substantially all of the assets of the Subsidiary.

(o)            'Exercisability Requirements' means, with respect to any grant of
               Options,  such restrictions or conditions on the exercise of such
               Options that the  Committee  may, in its  discretion,  add to the
               one-year holding requirement.

(p)            'Fair Market Value' means the mean between the highest and lowest
               quoted  selling  prices of  Company  Stock per share as  reported
               under New York Stock Exchange - Composite Transactions on the day
               of reference.

(q)            'Option' means a nonqualified stock option granted pursuant to
               this Plan.

(r)            'Participant'  means an employee of the Company who is designated
               by the Committee,  or by an individual or entity  operating under
               authority  delegated  by  the  Committee,  as  eligible  to  be a
               Participant who receives a Stock Award under the Plan.

(s)            'Retirement' means a termination of employment at or after age 55
               with  eligibility  to  immediately  begin  receiving   retirement
               benefits under the Company's defined benefit pension plan.

(t)            'Separation from Employment' means an employee's  separation from
               employment  with the  Company  or a  Subsidiary  as a  result  of
               Retirement,  death,  Disability,  or  termination  of  employment
               (voluntarily  or  involuntarily).  A  Participant  in  receipt of
               periodic  severance  payments shall be considered  separated from
               employment on the day preceding the day such  severance  payments
               commenced.

(u)            'Subsidiary'   means,   with  respect  to  any   corporation,   a
               corporation  more  than  50% of whose  voting  shares  are  owned
               directly or indirectly by the Company.

(v)            'Trust'  means  the  CSX  Corporation  and  Affiliated  Companies
               Executives'  Stock  Trust or such  other  trust or  trusts  which
               substantially  conforms  to the  terms  of the  Internal  Revenue
               Service  model trust as  described  in Revenue  Procedure  92-64,
               1992-2 CB. 422.

3.      Stock.

        Subject  to Section 9 of the Plan,  there  shall be  reserved  for grant
under the Plan an aggregate of 1,000,000 shares of Company Stock, which shall be
authorized, but unissued shares.

4.      Eligible Employees.

        All present and future  officers  and  employees  of the Company (or any
Subsidiary,  whether now  existing or hereafter  created or  acquired)  shall be
eligible to receive a Stock Award or an Option  grant under the Plan;  provided,
however,  that no Stock Award or Option may be granted on or after  December 31,
1998, to any director or to any officer as that term is defined in Rule 16a-1 of
the Securities and Exchange  Commission.  The Committee shall have the power and
complete  discretion,  as provided in Section 10, to select,  or to delegate the
selection  of,  eligible  officers and  employees to receive a Stock Award or an
Option grant and the number of shares of Company  Stock awarded or to be awarded
pursuant  to the  terms of the  Stock  Award and the  number  of  Options  to be
granted. Each Stock Award and grant of Options, by the Committee,  or delegation
by the  Committee of authority to make Stock Awards or grant  Options,  shall be
approved or ratified by the Board.  Unless otherwise  provided by its terms, the
grant of a Stock  Award or an  Option  shall not  obligate  the  Company  or any
Subsidiary to pay the  Participant  any particular  amount of remuneration or to
make  further  Stock  Awards or Option  grants  to the  Participant  at any time
thereafter.  The grant of a Stock  Award or an Option  shall  not  obligate  the
Company or any  Subsidiary to continue the employment of the  Participant  after
the Stock Award or Option grant.  Following a Change of Control, no new officers
or employees  may be designated to receive a Stock Award or Option grant without
the approval of the Benefits Trust Committee.

5.      Common Stock Awards.

        (a)    Whenever the Committee,  or other  individual or entity operating
               under authority delegated by the Committee,  deems it appropriate
               to award Common Stock,  notice shall be given to the  Participant
               (or to the  class of  Participants)  stating  (i) the  number  of
               shares of Common Stock awarded or a formula for  determining  the
               number of shares of Common  Stock  awarded or to be awarded,  and
               (ii) the terms and  conditions,  if any,  pertaining to the award
               that must be satisfied by a  Participant  in order to receive the
               Common Stock.

        (b)    The Committee may impose conditions  and/or  restrictions as part
               of a Stock  Award and  specify  the terms or  circumstances  upon
               which restrictions and/or conditions, if any, shall lapse.

        (c)    The Committee may at any time, in its sole discretion, accelerate
               the time at which  any or all  restrictions  or  conditions  will
               lapse  or  remove  or  change  any and all such  restrictions  or
               conditions previously imposed on an award of Common Stock.

        (d)    A  Participant  who receives base  compensation  in excess of a
               dollar level to be determined by   the  Committee  and  who  is
               eligible  to receive  an  award  under  the  Company's  Incentive
               Compensation  Program  ('ICP') may elect,  by the  prescribed
               election form with the Company in    accordance  with rules
               established by the  Committee,  to receive all or part of his
               annual ICP award in shares of the  Company's  common  stock,
               rather  than  cash;  provided,  however,  the   Participant  must
               agree that his receipt of the stock will be deferred  until his
               retirement or  termination  of  employment,  with a minimum
               deferral  period of three (3) years.  Elections to   defer are
               irrevocable.  A Participant who makes such election shall, at the
               time that the stock is deferred  receive an  additional  award of
               stock  equal to a  percentage established  by the Committee  from
               time to time,  of the  amount  that he  elected  to have deferred
               (the  'Stock Premium'). The Participant's election to defer shall
               also apply to the Stock Premium.

               If a Participant made an effective  election to defer the payment
               of shares of common  stock and  receive  the Stock  Premium,  the
               Company  shall,  within a  reasonable  period  of time  after the
               deferral  election is made,  transfer  shares of common  stock or
               other  assets  equal in value to the number of shares as to which
               payment  is  deferred  to  the  Trust  to  secure  the  Company's
               obligation  to pay shares of common stock to the  Participant  in
               the future.  However,  in any event,  the Company  shall make any
               previously deferred payment of shares to the Participant upon:

               (1)    the death of the Participant;

               (2)    the Disability of the Participant;

               (3)    the  Participant's  termination  of  employment  with  the
                      Company  or a  Subsidiary,  subject  to the  Participant's
                      deferral   election  and  the  three  (3)  year   deferral
                      requirement;

               (4)    a Divisive Transaction, subject to the Participant's
                      deferral elections; or

               (5)    a Change of Control.

        (e)    The  obligations  of  the  Company  and  any  of  its  affiliated
               corporations  and  the  benefit  due any  Participant,  surviving
               spouse or  beneficiary  hereunder  shall be reduced by any amount
               received in regard  thereto under the Trust or any similar trust,
               trusts or other vehicle.

        (f)    Notwithstanding the preceding, following a Change of Control, the
               authority  to delay  payment  of a  Participant's  benefit  rests
               solely with the Benefits Trust Committee.

6.      Contributions to the Trust.

(a)            The  Company  shall make  contributions  to the Trust to secure a
               source of future payments with respect to Participant's  deferral
               elections pursuant to Section 5. The Trustee shall be responsible
               only for contributions  actually received by it hereunder and the
               Trustee shall have no duty or responsibility  with respect to the
               timing,  amounts,  and sufficiency of contributions made or to be
               made by the Company hereunder.

(b)            The Company may make contributions to the Trust in Common Stock.

(c)            A separate  bookkeeping account (an 'Account') shall be
               established by the Trustee for each Participant   covered  by the
               Trust  pursuant  to the  Plan, as  directed  in  writing  by  the
               Company.  A  Participant  may have more than one Account.  Each
               Account is intended to represent  the amount  of a  Participant's
               deferred and unpaid  benefit under the Plan.  The value of a
               Participant's Account at any time will  equal the fair  market
               value of the number of shares of Common  Stock owed to a
               Participant  under this Plan at such time.  The number of shares
               owed at any time will equal the number of shares of Common Stock
               which were  originally  deferred by the  Participant,    plus the
               number of Common Stock shares which could have been acquired if
               dividends  subsequently  declared  by the  Company had been paid
               with  respect to such  shares and  reinvested  in Common   Stock,
               less shares actually  distributed to the Participant  pursuant to
               the Plan.  Account may also mean  individual  sub-accounts  which
               have been or may be established under the Plan from time to time.

(d)            Within sixty days  following the close of each calendar  year, or
               more  frequently  or at such other time as may be required by the
               Trust  Agreement,  the Trustee shall provide the Company and each
               Participant   with  a  written   statement  of  Account  of  each
               Participant.

7.      Options.

(a)            Options  will  consist  of  options  to  purchase  shares  of the
               Company's  common  stock at  purchase  prices  not less  than 100
               percent of the Fair Market Value of such common stock on the date
               of grant.

(b)            Options will be exercisable  upon the date or dates  specified in
               an  Option  agreement  entered  into with a  Participant  but not
               earlier  than one year after the date of grant of the Options and
               not later than 15 years  after the date of grant of the  Options;
               provided,  however,  that  whether  or not the  one-year  holding
               requirement is satisfied, any Exercisability  Requirement must be
               satisfied.

(c)            Any Participant may exercise an Option to purchase stock upon the
               date or dates specified in the Option  agreement  offered to him.
               In no case may an Option be exercised  for a fraction of a share.
               Except as set forth in Section 8, no Option  holder may  exercise
               an  Option  unless  at the  time of  exercise  he has been in the
               continuous  employ of the Company or a Subsidiary since the grant
               of his  Option.  An Option  holder  under this Plan shall have no
               rights as a shareholder with respect to any shares subject to the
               Option until such shares have been issued.

(d)            For purposes of this section, written  notice of exercise must be
               received by the Corporate Secretary of the  Company,  not earlier
               than one year nor later than 15 years after the Option is
               granted.  Such notice must state the number of shares being
               exercised and must be accompanied by payment of the full purchase
               price of such  shares.  Payment  for the  shares  for  which an
               Option is  exercised may be made by (1) a personal check or money
               order payable to CSX  Corporation;  (2) a  tender by the employee
               (in accordance with  procedures  established by the Company) of
               shares of  the  Company's  common  stock  having a Fair  Market
               Value on the date of tender  equaling  the purchase  price of the
               shares for which the Option is being  exercised;  (3) the
               delivery  of a  properly  executed  exercise  notice,  together
               with  irrevocable  instructions  to a broker to promptly  deliver
               to the Company  either sale proceeds of shares sold to pay the
               purchase  price or the amount loaned by the broker to pay the
               purchase  price;  or (4) any  combination  of (1), (2) and (3).

8.      Separation from Employment and Divisive Transactions.

(a)            If the  Participant's  Separation  from  Employment is because of
               Disability  or  death,  the  right  of  the  Participant  or  his
               successor in interest to exercise an Option shall  terminate  not
               later than five years after the date of such Disability or death,
               but in no  event  later  than 15 years  from  the date of  grant;
               provided, however, that if such Participant is eligible to retire
               with  the  ability  to  begin  immediately  receiving  retirement
               benefits under the Company's pension plan at or after age 55, his
               or his successor in interest's right to exercise Options shall be
               determined as if his  Separation  from  Employment was because of
               Retirement.

(b)            If the  Participant's  Separation  from  Employment is because of
               Retirement,  the right of the  Participant  to exercise an Option
               shall terminate not later than 15 years from the date of grant.

(c)            Unless the Committee  deems it necessary in  individual  cases to
               extend  a  Participant's  exercise  period,  if  a  Participant's
               Separation   from   Employment  is  for  any  reason  other  than
               Retirement,  Disability or death, the right of the Participant to
               exercise an Option  shall  terminate  not later than 30 days from
               the date of Separation from Employment but in no event later than
               15 years after the date of grant.

(d)            At the time of his  Separation  from  Employment  for any  reason
               other than Cause,  a  Participant  shall vest in a portion of any
               Option  granted  that he has held for less than one year from the
               date of the  grant.  The  portion  of such  Options  in which the
               Participants  shall vest shall be determined by  multiplying  all
               shares  subject to such Options by a fraction,  the  numerator of
               which  shall be the  number of  Completed  Months  of  employment
               following the date of grant and the denominator of which shall be
               twelve.

(e)            A Participant  who vests in any Options under  subsection (d) may
               not  exercise  such  Options  prior  to the  satisfaction  of the
               one-year holding  requirement and the Exercisability  Requirement
               pertaining to such Options.  Any Options vested under  subsection
               (d)  must be  exercised  within  one  year  from  the date of the
               Participant's Separation from Employment.

(f)            If  the  Participant's  employer  is a  Subsidiary  involved  in
               a  Divisive  Transaction,  or  if  the  Participant's  employment
               is  terminated  with the  consent  of the  Company  (as a result
               of a    business  transaction  or a  reduction  in  force or any
               other  circumstances  approved  by the  Committee),  the right of
               the  Participant  or his  successor  in interest to exercise an
               Option   shall  terminate  not less than  three  years  after the
               date of the  closing  of such  Divisive  Transaction,  or if a
               Participant's  employment is terminated  with the consent of the
               Company,  but in no  event  later  than 15  years  from  the date
               of  grant;  provided,  however,  if such Participant  is eligible
               to retire with the ability to begin  immediately  receiving
               retirement benefits  under  the  Company's  pension  plan at or
               after  age  55,  his or his  successor  in  interest's  right to
               exercise  any  Option  shall be  determined  as if he had
               separated from  employment, and such Separation  from  Employment
               was because of  Retirement.  Notwithstanding      anything to the
               contrary in this subsection,  a Participant may not exercise such
               Options prior  to  satisfaction  of the  one  year  holding
               requirement  and  the  Exercisability  Requirement pertaining  to
               such  Options.  In the event of a Divisive Transaction, employees
               of  Sea-Land  Service,  Inc., hired by that corporation  prior to
               January 1, 1986,    shall   be deemed  eligible  to   retire upon
               termination of employment  after age 50 with 20 years of service
               and eligibility to   begin   immediately   receiving   retirement
               benefits under the Company's  defined benefit pension       plan.

(g)            Notwithstanding  anything to the  contrary in the Plan,  if a
               Participant  or former  Participant (i) becomes associated  with,
               recruits or solicits  customers or other employees of the Company
               or   its  Subsidiaries  for, is employed by, renders services to,
               or owns any interest in (other than any nonsubstantial  interest,
               as  determined  by  the  Committee)  any   business  that  is  in
               competition with the Company or one of its subsidiaries,  (ii)
               has his employment  terminated by   the  Company or one of its
               Subsidiaries  for Cause or on account of actions by the
               Participant which are detrimental to the interests of the Company
               or its subsidiaries,  or (iii) engages in,   or has engaged in,
               conduct at the time of or subsequent to the  termination  of his
               employment with the Company or its Subsidiaries which the
               Committee  determines to be  detrimental to the  interests of the
               Company or its  subsidiaries then the Committee  may, in its sole
               discretion, except following a Change of Control, terminate any
               Options held by the Participant,  regardless   of whether then
               exercisable.

9.      Options Non-assignable and Non-transferable.

        Any  Option  granted  under  this  Plan  shall  be  non-assignable   and
non-transferable  other than as provided in Section 10 and shall be  exercisable
during the  Participant's  lifetime only by the Participant who is the holder of
the Option or by his guardian or legal representative.

10.     Death of Option Holder.

        In the event of the death of a Participant who is an Option holder under
the Plan while  employed by the Company or a Subsidiary or prior to the exercise
of all rights under an Option,  the Option  theretofore  may be exercised by the
Participant's  Beneficiary or, if no Beneficiary is designated,  by the executor
or  executrix  of the  Participant's  estate or by the person or persons to whom
rights  under  the  Option  shall  pass  by  will or the  laws  of  descent  and
distribution in accordance with the provisions of the Plan and of the Option and
to the same extent as though the Participant were then living.

11.     Withholding Tax.

        Whenever the Company proposes or is required to issue or transfer shares
of Company  Stock under the Plan,  a  Participant  shall remit to the Company an
amount sufficient to satisfy any federal,  state or local income and payroll tax
withholding  liability  prior to the delivery of any certificate or certificates
for such shares.  Alternatively,  in the sole discretion of the Company,  to the
extent permitted by applicable laws including regulations  promulgated under the
Exchange Act, such  federal,  state or local income and payroll tax  withholding
liability  may  be  satisfied  prior  to the  delivery  of  any  certificate  or
certificates for the shares by an adjustment,  equal in value to such liability,
in the number of shares to be transferred to the Participant. Whenever under the
Plan payments are to be made in cash,  such  payments  shall be net of an amount
sufficient  to  satisfy  any  federal,  state or local  income and  payroll  tax
withholding liability.

12.     Effective Date of the Plan.

        This Plan is effective on September 12, 1990.

13.     Termination, Modification.

(a)            Prior to a Change of Control, the Board, on the recommendation of
               the  Committee,  may  terminate the Plan or may amend the Plan in
               such respects as it shall deem  advisable.  Following a Change of
               Control,  this Plan may not be terminated or amended  without the
               approval  of the  Benefits  Trust  Committee.  A  termination  or
               amendment  of the Plan  shall  not,  without  the  consent of the
               Participant,  affect a Participant's rights under any Stock Award
               previously granted to him.

(b)            Prior to a Change of Control,  the Board on the recommendation of
               the   Committee,   may  terminate  an  affiliated   corporation's
               participation  as a  participating  employer in this Plan for any
               reason at any time.  Following a Change of Control, an affiliated
               corporation may not be added to or terminated from  participation
               as a participating  employer  without the consent of the Benefits
               Trust Committee.

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

14.     Change in Capital Structure or Change in Control.

        (a)    If the number of outstanding shares of Company Stock is increased
               or decreased as a result of a   subdivision or  consolidation  of
               shares,  the payment of a stock dividend,  stock split, or any
               other  change in  capitalization  effected  without  receipt  of
               consideration  by the  Company   (including,  but not limited to,
               the creation or issuance to  shareholders  generally of rights,
               options or warrants for the purchase of common or preferred
               stock of the  Company),  the number   and kind of shares of stock
               or securities of the Company to be subject to the Plan,  the
               maximum  number of shares  or  securities which may be  delivered
               under the Plan,  and other  relevant    provisions  shall be
               appropriately  adjusted by the  Committee,  whose  determination
               shall be  binding and conclusive on all persons.

        (b)    If the Company is a party to a consolidation or a merger in which
               the Company is not the surviving corporation,  a transaction that
               results in the acquisition of substantially  all of the Company's
               outstanding  stock by a single  person  or  entity,  or a sale or
               transfer  of  substantially  all of  the  Company's  assets,  the
               Committee  may,  subject to the  approval of the  Benefits  Trust
               Committee,  take such actions with respect to  outstanding  Stock
               Awards as the Committee deems appropriate.

        (c)    Notwithstanding  anything  in  the  Plan  to  the  contrary,  the
               Committee  may,  subject to the  approval of the  Benefits  Trust
               Committee,  take the foregoing actions without the consent of any
               Participant and the Committee's determination shall be conclusive
               and binding on all persons for all purposes.

        (d)    Notwithstanding any provisions of this Plan to the contrary, upon
               the  occurrence  of  (i)  a  Change  of  Control  as  defined  in
               subsection  (e),   below,   and  subject  to  an  election  under
               subsection (f), below, the three (3) year holding  requirement of
               the Stock  Premium for  deferred  ICP shall be deemed  satisfied;
               (ii)  a  Divisive   Transaction,   the  three  (3)  year  holding
               requirement of the Stock Premium for deferred ICP shall be deemed
               satisfied.

        (e)    As used in this Plan, a 'Change of Control' means:

               (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  Company
                      (the  'Outstanding  Company  Common   Stock'),  or (B) the
                      combined voting power of the then outstanding  voting
                      securities of  the Company  entitled to vote  generally in
                      the election of directors  (the  'Outstanding  Company
                      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  Company; (B) any
                      acquisition  by the Company;  (C) any  acquisition  by any
                      employee  benefit plan (or  related  trust)  sponsored  or
                      maintained  by the  Company or any  corporation controlled
                      by the  Company;  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 9(e); or

               (ii)   Board  Composition. Individuals who, as of the date
                      ------------------
                      hereof,  constitute  the Board (the 'Incumbent  Board')
                      cease for any reason to constitute at least a majority of
                      the Board; provided,  however,  that any  individual
                                 --------   -------
                      becoming  a  director  subsequent to the date hereof whose
                      election or  nomination  for election by the  Company'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  individuals 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; or

               (iii)  Business Combination.  Approval by the shareholders of the
                      Company of a  reorganization,  merger,  consolidation,  or
                      sale or other  disposition of all or substantially  all of
                      the assets of the Company or its principal subsidiary that
                      is  not  subject,  as a  matter  of law  or  contract,  to
                      approval  by  the  Surface  Transportation  Board  or  any
                      successor  agency or regulatory  body having  jurisdiction
                      over  such   transactions   (the   'STB')   (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  Company  Common
                             Stock and  Outstanding Company  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
                             Company  or  its  principal  subsidiary  or all  or
                             substantially  all of  the  assets  of the  Company
                             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   Company  Common  Stock  and
                             Outstanding   Company  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 Company 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  providing  for such  Business
                             Combination; or

               (iv)   Regulated   Business   Combination.    Approval   by   the
                      shareholders of the Company of a Business Combination that
                      is subject, as a matter of law or contract, to approval by
                      the STB (a 'Regulated Business  Combination')  unless such
                      Business  Combination  complies  with clauses (A), (B) and
                      (C) of subsection (iii) of this Section 9(e); or

               (v)    Liquidation or  Dissolution.  Approval by the shareholders
                      ---------------------------
                      of the Company of a complete liquidation or dissolution of
                      the Company or its principal Subsidiary.

        (f)    Each  Participant who has elected to defer the payment of an ICP
               award pursuant to Section 5(e),  may elect in a time and manner
               determined by the Committee,  but in no event later than December
               31, 1996,  or the  occurrence of a Change of Control, if earlier,
               to have amounts and benefits currently  deferred,  and to be
               deferred,  under the Plan determined and payable under the terms
               of the Plan as if a Change of Control had not occurred.  New
               Participants in the Plan may elect  in a time and manner
               determined by the  Committee,  but in no event later than ninety
               (90) days  after  becoming a  Participant,  to have  amounts and
               benefits currently deferred,  and to be  deferred, under the Plan
               determined and payable under the terms of the Plan as if a Change
               of  Control  had not  occurred.  A  Participant  who has made an
               election, as set forth in the two  preceding  sentences,  may, at
               any time and from time to time,  change that election;  provided,
               however,  a change of  election  that is made  within one year of
               a Change of  Control  shall be  invalid.

        (g)    Upon a Change of Control, the Company shall, as soon as possible,
               but in no event more than seven (7) days following a Change of
               Control,  make an irrevocable  contribution to the Trust in
               an amount that is sufficient to pay each  Participant  or
               beneficiary of this Plan the unfunded portion of the benefits to
               which Participants of this Plan or their  beneficiaries are
               entitled, and for which the  Company is liable  pursuant to the
               terms of this Plan as of the date on which  the Change of Control
               occurred.  The amount of the Company's  irrevocable  contribution
               shall be  based on the  accounting  for the most recent  calendar
               year or more recent period for the Plan,  as approved by the
               independent actuary or accountant engaged by the Company prior to
               the Change  of Control and  approved by the Benefits  Trust
               Committee, if selected or changed following a Change  of  Control
               (the 'Actuary'),  and shall include  an amount  deemed  necessary
               to pay  estimated  administrative  expenses  for the  following
               five  (5)  years.  The  Benefits  Trust    Committee  shall cause
               such  accounting to be updated, using  participant  data supplied
               to the    Actuary by the Company,  through a date no earlier than
               the date of the initial contribution and notify the Company of
               the amount of additional contributions required as soon as
               possible.

15.     Administration of the Plan.

        Prior to a Change of  Control,  the Plan  shall be  administered  by the
Committee  appointed  from  time to time by the  Board to  administer  the Plan.
Subject  to  paragraph  (e)  below  the  'Committee'  shall be the  Compensation
Committee  unless the Board shall appoint  another  committee to administer  the
Plan.  The Committee  shall have general  authority to impose any  limitation or
condition  upon a Stock Award the  Committee  deems  appropriate  to achieve the
objectives of the award and the Plan,  and in addition,  and without  limitation
and in  addition  to powers  set forth  elsewhere  in the Plan,  shall  have the
following specific authority:

        (a)    The Committee shall have the power and complete discretion (i) to
               delegate  to any  individual,  or to  any  group  of  individuals
               employed by the Company or any Subsidiary thereof,  the authority
               to grant Stock Awards  under the Plan and (ii) to  determine  the
               terms and  limitations of any delegation of authority,  including
               but not  limited to the maximum  Fair  Market  Value of any Stock
               Award  granted  pursuant  to such  delegation,  provided  that no
               individual  Stock  Award  granted  by  an  individual  or  entity
               operating under authority delegated by the Committee may exceed a
               Fair Market Value of $50,000  ($100,000  after December 10, 1997)
               on Date of Grant.

        (b)    The  Committee,  or other individual  or entity  operating  under
               authority delegated  by the Committee and to the extent permitted
               by the terms of such delegation,  shall have the power and
               complete  discretion to determine (i) which eligible officers or
               employees shall receive a Stock  Award, (ii) the number of shares
               of Company Stock to be awarded,  (iii) the time or times when a
               Stock Award shall be granted, (iv) whether a Stock Award shall be
               subject to  restrictions  and   when or upon such other terms the
               restrictions  shall lapse,  and  (v) whether  arrangements to
               discharge a  Participant's  tax obligations  are  satisfactory
               and, if not, to have the Company retain from the shares of Common
               Stock  granted  that number of shares  necessary to satisfy the
               Participant's tax liabilities arising from the Stock Award.

        (c)    The  Committee may adopt rules and  regulations  for carrying out
               the Plan. The interpretation and construction of any provision of
               the Plan by the  Committee  shall be final  and  conclusive.  The
               Committee  may consult  with  counsel,  who may be counsel to the
               Company,  and shall not incur any  liability for any action taken
               in good faith in reliance upon the advice of counsel.

        (d)    The  Board  from  time to time  may  appoint  members  previously
               appointed  and  may  fill  vacancies,   however  caused,  in  the
               Committee.  No  member  of the  Committee  shall be  eligible  to
               participate  in the Plan or in any other  plan of the  Company or
               any  Parent  or   Subsidiary   of  the  Company   that   entitles
               participants   to   acquire   stock,   stock   options  or  stock
               appreciation rights of the Company or any Parent or Subsidiary of
               the Company,  if as a result of such  eligibility he or she would
               cease  to be a  'disinterested  person'  under  Rule  16b-3  with
               respect to the Plan.

        (e)    Following a Change of Control,  the Benefits Trust  Committee may
               remove  and/or  replace the Plan's  administrator.  Additionally,
               following  a  Change  of  Control,  any  and  all  final  benefit
               determinations for Participants,  their beneficiaries,  heirs and
               assigns and decisions  regarding  benefit  claims under this Plan
               shall rest with the Benefits  Trust  Committee or its delegate in
               its sole judgment and absolute discretion.

16.     Notice.

        All notices and other  communications  required or permitted to be given
under this Plan shall be in writing  and shall be deemed to have been duly given
if delivered  personally or mailed first class,  postage prepaid, as follows (a)
if to the Company - at its  principal  business  address to the attention of the
Secretary;  (b) if to any  Participant - at the last address of the  Participant
known to the sender at the time the notice or other communication is sent.

17.     Construction.

        The Plan shall be governed by the laws of the Commonwealth of Virginia.

Addendum.

        Addendum I

        'Pursuant  to  Sections  4a  and 8 of  the  Plan,  with  respect  to any
Non-Qualified  Stock  Option  ('NQSO')  granted  to any  Participant  who may be
subject to taxation in The Netherlands at any time during the term of such NQSO,
the Committee  shall have the authority to impose  additional  conditions on the
exercise of the NQSO.

        'Effective  for any NQSO granted after  December 31, 1997, the Committee
may, in  addition to any other  conditions  specified  in the option  agreement,
require that the NQSO is granted  conditionally.  Such conditions  shall include
that the NQSO can be  exercised  only  with the  approval  of the  Participant's
Senior Vice  President - Human  Resources  ('SVP-HR').  Such  approval  shall be
granted  at the  discretion  of the  SVP-HR,  which  shall  not be  unreasonably
refused.  Approval  may be refused for  reasons  which shall be set forth in the
option agreement such as, but not limited to, the following:  (i) termination of
employment  for willful or gross  misconduct or receipt of notice of termination
for  such  conduct;  (ii)  disclosure  of  confidential  information;  or  (iii)
rendering  services  to a  competitor.  Once  approval  has been  obtained,  the
Participant must immediately exercise the NQSO. If approval is refused or if the
NQSO is not  exercised  immediately  upon  receipt  of  approval,  it  shall  be
forfeited.