Document:

ex4_2.htm

    Exhibit
4.2

     

     

    UNLESS
THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

     

    TRANSFERS
OF THIS SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S
NOMINEE.

     

    CSX
CORPORATION

    

    

    $500,000,000

    6.250%
NOTES DUE 2015

     

     

    
      
         

        
          	No. R-1	
                  CUSIP
      No. 126408 GN7 

                

        

         

      

    

    This
security (the “Security”) is one of a duly authorized issue of securities
(herein called the “Securities”) of CSX Corporation, a Virginia corporation
(hereinafter called the “Company,” which term includes any successor corporation
under the Indenture hereinafter referred to), issued and to be issued in one or
more series under an indenture, unlimited as to aggregate principal amount,
dated as of August 1, 1990 between the Company and The Bank of New York
Trust Company, N.A., successor to JPMorgan Chase Bank, N.A., formerly known as
The Chase Manhattan Bank, as Trustee (herein called the “Trustee,” which term
includes any successor trustee under the Indenture (as hereinafter defined)), as
supplemented by a First Supplemental Indenture dated as of June 15, 1991, a
Second Supplemental Indenture dated as of May 6, 1997, a Third Supplemental
Indenture dated as of April 22, 1998, a Fourth Supplemental Indenture dated as
of October 30, 2001, a Fifth Supplemental Indenture dated as of October 27,
2003, a Sixth Supplemental Indenture dated as of September 23, 2004, and a
Seventh Supplemental Indenture dated as of April 25, 2007, to which indenture
and all indentures supplemental thereto (the indenture, as supplemented being
herein called the “Indenture”) reference is hereby made for a statement of the
respective rights thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered.  This Security is one of the series
designated on the face hereof, which series has been issued in an initial
aggregate principal amount of $500,000,000 (FIVE HUNDRED MILLION DOLLARS). All
Securities of this series need not be issued at the same time and such series
may be reopened at any time, without the consent of any Holder, for issuances of
additional Securities of this series.  Any such additional Securities
of this series will have the same interest rate, maturity and other terms as
those initially issued.  Further Securities of this series may also be
authenticated and delivered as provided by Sections 304, 305, 306 or 906 of the
Indenture. This Security represents an aggregate initial principal amount of
$500,000,000 (FIVE HUNDRED MILLION DOLLARS) (as adjusted from time to time in
accordance with the terms and provisions hereof and as set forth on Exhibit A
hereto, the “Principal Amount”) of the Securities of such series, with the
Interest Payment Dates, date of original issuance, and date of Maturity
specified herein and bearing interest on said Principal Amount at the interest
rate specified herein.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    The
Company, for value received, hereby promises to pay CEDE & CO., or its
registered assigns, the principal sum of $500,000,000 (FIVE HUNDRED MILLION
DOLLARS) on April 1, 2015 and to pay interest (computed on the basis of a
360-day year of twelve 30-day months) thereon from March 27, 2008 or from the
most recent Interest Payment Date to which interest has been paid or duly
provided for, or, if the date of this Security is an Interest Payment Date to
which interest has been paid or duly provided for, then from the date hereof,
semiannually in arrears on April 1 and October 1 of each year, commencing
October 1, 2008, and at Maturity at the rate of 6.250% per annum, until the
principal hereof is paid or duly made available for payment.  The
Company shall pay interest on overdue principal and premium, if any, and (to the
extent lawful) interest on overdue installments of interest at the rate per
annum borne by the Security.  The interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in
such Indenture, be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest, which shall be the March 15 or September
15 (whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date.  Except as otherwise provided in the Indenture,
any such interest not so punctually paid or duly provided for shall forthwith
cease to be payable to the Holder on such Regular Record Date and may be paid to
the Person in whose name this Security (or one or more Predecessor Securities)
is registered at the close of business on a Special Record Date to be fixed by
the Trustee for the payment of such Defaulted Interest, notice whereof shall be
given to the Holder of this Security not less than 10 days prior to such Special
Record Date, or may be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange or automated
quotation system on which the Securities of this series may be listed or quoted,
and upon such notice as may be required by such exchange or system, all as more
fully provided in such Indenture.  Notwithstanding the foregoing,
interest payable on this Security at Maturity will be payable to the person to
whom principal is payable.

     

    This
Security is exchangeable in whole or from time to time in part for definitive
Registered Securities of this series only as provided in this
paragraph.  If (x) the Depository with respect to the Securities of
this series (the “Depository”) notifies the Company that it is unwilling, unable
or ineligible to continue as Depository for this Security or if at any time the
Depository ceases to be a clearing agency registered under the Securities
Exchange Act of 1934, as amended, and a successor Depository is not appointed by
the Company within 90 days, (y) the Company in its sole discretion determines
that this Security shall be exchangeable for definitive Registered Securities
and executes and delivers to the Trustee a Company Order providing that this
Security shall be so exchangeable or (z) there shall have happened and be
continuing an Event of Default or any event which, after notice or lapse of
time, or both, would become an Event of Default with respect to the Securities
of the series of which this Security is a part, this Security or any portion
hereof shall, in the case of clause (x) above, be exchanged for definitive
Registered Securities of this series, and in the case of clauses (y) and (z)
above, be exchangeable for definitive Registered Securities of this series,
provided that the definitive Security so issued in exchange for this Security
shall be in authorized denominations and be of like tenor and of an equal
aggregate principal amount as the portion of the Security to be exchanged, and
provided further that, in the case of clauses (y) and (z) above, definitive
Registered Securities of this series will be issued in exchange for this
Security, or any portion hereof, only if such definitive Registered Securities
were requested by written notice to the Security Registrar by or on behalf of a
Person who is a beneficial owner of an interest herein given through the Holder
hereof.  Any definitive Registered Security of this series issued in
exchange for this Security, or any portion hereof, shall be registered in the
name or names of such Person or Persons as the Holder hereof shall instruct the
Security Registrar.  Except as provided above, owners of beneficial
interests in this Security will not be entitled to receive physical delivery of
Securities in definitive form and will not be considered the Holders thereof for
any purpose under the Indenture.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    Any
exchange of this Security or portion hereof for one or more definitive
Registered Securities of this series will be made at the New York office of the
Security Registrar or at the office of any transfer agent designated by the
Company for that purpose.  Upon exchange of any portion of this
Security for one or more definitive Registered Securities of this series, the
Trustee shall endorse Exhibit A of this Security to reflect the reduction of its
Principal Amount by an amount equal to the aggregate principal amount of the
definitive Registered Securities of this series so issued in exchange, whereupon
the Principal Amount hereof shall be reduced for all purposes by the amount so
exchanged and noted.  Except as otherwise provided herein or in the
Indenture, until exchanged in full for one or more definitive Registered
Securities of this series, this Security shall in all respects be subject to and
entitled to the same benefits and conditions under the Indenture as a duly
authenticated and delivered definitive Registered Security of this
series.

     

    The
principal and any interest in respect of any portion of this Security payable in
respect of an Interest Payment Date or at the Stated Maturity thereof, in each
case occurring prior to the exchange of such portion for a definitive Registered
Security or Securities of this series, will be paid, as provided herein, to the
Holder hereof which will undertake in such circumstances to credit any such
principal and interest received by it in respect of this Security to the
respective accounts of the Persons who are the beneficial owners of such
interests on such Interest Payment Date or at Stated Maturity.  If a
definitive Registered Security or Registered Securities of this series are
issued in exchange for any portion of this Security after the close of business
at the office or agency where such exchange occurs on (i) any Regular Record
Date and before the opening of business at such office or agency on the relevant
Interest Payment Date, or (ii) any Special Record Date and before the opening of
business at such office or agency on the related proposed date for payment of
Defaulted Interest, then interest or Defaulted Interest, as the case may be,
will not be payable on such Interest Payment Date or proposed date for payment,
as the case may be, in respect of such Registered Security, but will be payable
on such Interest Payment Date or proposed date for payment, as the case may be,
only to the Holder hereof, and the Holder hereof will undertake in such
circumstances to credit such interest to the account or accounts of the Persons
who were the beneficial owners of such portion of this Security on such Regular
Record Date or Special Record Date, as the case may be.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

    Payment
of the principal of and any such interest on this Security will be made at the
offices of the Trustee as Paying Agent, in the Borough of Manhattan, The City of
New York, or at such other office or agency of the Company as may be designated
by it for such purpose in the Borough of Manhattan, The City of New York, in
such coin or currency of the United States of America as at the time of payment
shall be legal tender for the payment of public and private debts by check
mailed to the registered Holders thereof; provided, however, that at the
option of the Holder, payment of interest may be made by wire transfer of
immediately available funds to an account of the Person entitled hereto as such
account shall be provided to the Security Registrar and shall appear in the
Security Register.

     

    The
Securities shall be redeemable, in whole or in part, at the Company’s option at
any time.  The Redemption Price for the Securities to be redeemed
shall equal the greater of the following amounts, plus, in each case, accrued
interest thereon to the Redemption Date:

    

    
      	
              ●

            	
               

            	
              100%
      of the principal amount of such Securities;
or

            

    

     

    
      	
              
                ●

              

            	
               

            	
              As
      determined by the Independent Investment Banker (as defined below), the
      sum of the present values of the remaining scheduled payments of principal
      and interest on the Securities (not including any portion of any payments
      of interest accrued from the most recent Interest Payment Date to which
      interest has been paid to the Redemption Date) discounted to the
      Redemption Date on a semiannual basis at the Adjusted Treasury Rate (as
      defined below) plus 50 basis
points.

            

    

     

    The
Redemption Price shall be calculated by the Independent Investment Banker
assuming a 360-day year consisting of twelve 30-day months.

    

    “Adjusted
Treasury Rate” means, with respect to any Redemption Date:

    

    
      	
              
                ●

              

            	
               

            	
              the
      yield, under the heading which represents the average for the immediately
      preceding week, appearing in the most recently published statistical
      release designated “H.15(519)” or any successor publication which is
      published weekly by the Board of Governors of the Federal Reserve System
      and which establishes yields on actively traded U.S. Treasury securities
      adjusted to constant maturity under the caption “Treasury Constant
      Maturities,” for the maturity corresponding to the Comparable Treasury
      Issue (if no maturity is within three months before or after the remaining
      term of the Securities, yields for the two published maturities most
      closely corresponding to the Comparable Treasury Issue will be determined
      and the Adjusted Treasury Rate will be interpolated or extrapolated from
      such yields on a straight line basis, rounding to the nearest month);
      or

            

    

     

    
      	
              
                
                  
                    ●

                  

                

              

            	
                

            	
              If
      such release (or any successor release) is not published during the week
      preceding the calculation date or does not contain such yields, the rate
      per annum equal to the semiannual equivalent yield to maturity of the
      Comparable Treasury Issue, assuming a price for the Comparable Treasury
      Issue (expressed as a percentage of its principal amount) equal to the
      Comparable Treasury Price for such Redemption
  Date.

            

    

     

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

            The Adjusted Treasury
Rate shall be calculated on the third Business Day preceding the Redemption
Date.  The Company shall notify the Trustee, in an Officers’
Certificate, of the Redemption Price no later than the second Business Day
preceding the Redemption Date. The Officers’ Certificate shall set forth the
Redemption Price both as an aggregate amount for all the Securities to be
redeemed and as an amount per $1,000.00 in principal amount of the Securities to
be redeemed, subject to a minimum $2,000.00 denomination as set forth
below.

    

    “Comparable
Treasury Issue” means the U.S. Treasury security selected by the Independent
Investment Banker as having a maturity comparable to the remaining term of the
Securities to be redeemed that would be utilized, at the time of selection and
in accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of such
Securities.

    

    “Comparable
Treasury Price” means, with respect to any Redemption Date, (A) the average of
five Reference Treasury Dealer Quotations for such Redemption Date, after
excluding the highest and lowest such Reference Treasury Dealer Quotations, or
(B) if the Independent Investment Banker obtains fewer than five such Reference
Treasury Dealer Quotations, the average of all such quotations.

    

    “Independent
Investment Banker” means Citigroup Global Markets Inc. and its
successors, or if that firm is unwilling or unable to serve in that capacity, an
independent investment and banking institution of national standing appointed by
the Company.

    

    “Reference
Treasury Dealer” means:

    

    
      	
              
                ●

              

            	 	
              Barclays
      Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities
      (USA) LLC and Morgan Stanley & Co. Incorporated and their successors;
      provided that, if any ceases to be a primary U.S. Government securities
      dealer in the United States (“Primary Treasury Dealer”), the Company will
      substitute another Primary Treasury Dealer;
and

            

    

    
      	
              
                ●

              

            	
                

            	
              Up
      to four other Primary Treasury Dealers selected by the
      Company.

            

    

    

    “Reference
Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer
and any Redemption Date, the average, as determined by the Independent
Investment Banker, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Independent Investment Banker by such Reference Treasury Dealer
at 5:00 p.m. (New York City time) on the third business day preceding such
Redemption Date.

    

    Notice of
redemption shall be given as provided in Section 1104 of the Indenture;
provided, that such notice shall not be required to include the Redemption Price
but shall instead include the manner of calculation of the Redemption
Price.  If the Company elects to partially redeem the Securities, the
Trustee will select in a fair and appropriate manner the Securities to be
redeemed.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
 

    Unless
the Company defaults in payment of the Redemption Price, on and after the
Redemption Date interest will cease to accrue on the Securities or portions
thereof called for redemption.

    

    If an
Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series (including this
Security and the interests represented hereby) may be declared due and payable
in the manner and with the effect provided in the Indenture. Upon payment (i) of
the amount of principal so declared due and payable and (ii) of interest on any
overdue principal and overdue interest (in each case to the extent that the
payment of such interest shall be legally enforceable), all of the Company’s
obligations in respect of the payment of the principal of and any interest on
the Securities of this series (including this Security and the interests
represented hereby) shall terminate.

     

    If a
Change of Control Repurchase Event occurs, unless the Company have exercised the
Company’s right to redeem the “Securities” as described above, the Company will
be required to make an offer to each holder of the “Securities” to repurchase
all or any part (equal to $2,000 or an integral multiple of $1,000 in excess
thereof) of that holder’s “Securities” at a repurchase price in cash equal to
101% of the aggregate principal amount of the “Securities” repurchased plus any
accrued and unpaid interest on the “Securities” repurchased to, but not
including, the date of repurchase.  Within 30 days following any
Change of Control Repurchase Event or, at the Company’s option, prior to any
Change of Control, but after the public announcement of the Change of Control,
the Control will mail a notice to each holder, with a copy to the Trustee,
describing the transaction or transactions that constitute or may constitute the
Change of Control Repurchase Event and offering to repurchase the “Securities”
on the payment date specified in the notice, which date will be no earlier than
30 days and no later than 60 days from the date such notice is
mailed.  The notice shall, if mailed prior to the date of consummation
of the Change of Control, state that the offer to purchase is conditioned on a
Change of Control Repurchase Event occurring on or prior to the payment date
specified in the notice.  The Company will comply with the
requirements of Rule 14e-1 under the Exchange Act, and any other securities laws
and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of the “Securities” as a result of
a Change of Control Repurchase Event.  To the extent that the
provisions of any securities laws or regulations conflict with the Change of
Control Repurchase Event provisions of the “Securities”, the Company will comply
with the applicable securities laws and regulations and will not be deemed to
have breached the Company’s obligations under the Change of Control Repurchase
Event provisions of the “Securities” by virtue of such conflict.

     

    On the
repurchase date following a Change of Control Repurchase Event, the Company
will, to the extent lawful:

     

    
      	
               
      

            	
              (1)

            	
              accept
      for payment all the “Securities” or portions of the “Securities” properly
      tendered pursuant to the Company’s
offer;

            

    

     

    
      	
               
      

            	
              (2)

            	
              deposit
      with the paying agent an amount equal to the aggregate purchase price in
      respect of all the “Securities” or portions of the “Securities” properly
      tendered; and

            

    

     

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     

    
      	
               
      

            	
              (3)

            	
              deliver
      or cause to be delivered to the Trustee the “Securities” properly
      accepted, together with an officers’ certificate stating the aggregate
      principal amount of the “Securities” being purchased by the
      Company.

            

    

     

    The
paying agent will promptly mail to each holder of the “Securities” properly
tendered the purchase price for the “Securities”, and the Trustee will promptly
authenticate and mail (or cause to be transferred by book-entry) to each holder
a new note equal in principal amount to any unpurchased portion of any
“Securities” surrendered; provided that each new note will be in a principal
amount of $2,000 or an integral multiple of $1,000 in excess
thereof.

     

    The
Company will not be required to make an offer to repurchase the “Securities”
upon a Change of Control Repurchase Event if a third party makes such an offer
in the manner, at the times and otherwise in compliance with the requirements
for an offer made by the Company and such third party purchases all the
“Securities” properly tendered and not withdrawn under its offer.

     

    For
purposes of the foregoing description of a repurchase at the option of holders,
the following definitions are applicable:

     

    “Below
Investment Grade Ratings Event” means that on any day within the 60-day period
(which period shall be extended so long as the rating of the “Securities” is
under publicly announced consideration for a possible downgrade by any of the
Rating Agencies) after the earlier of (1) the occurrence of a Change of Control;
or (2) public notice of the occurrence of a Change of Control or the intention
by CSX to effect a Change of Control, the “Securities” are rated below
Investment Grade by each of the Rating Agencies. Notwithstanding the foregoing,
a Below Investment Grade Ratings Event otherwise arising by virtue of a
particular reduction in rating shall not be deemed to have occurred in respect
of a particular Change of Control (and thus shall not be deemed a Below
Investment Grade Ratings Event for purposes of the definition of Change of
Control Repurchase Event hereunder) if the Rating Agencies making the reduction
in rating to which this definition would otherwise apply do not announce or
publicly confirm or inform the Trustee in writing at its request that the
reduction was the result, in whole or in part, of any event or circumstance
comprised of or arising as a result of, or in respect of, the applicable Change
of Control (whether or not the applicable Change of Control shall have occurred
at the time of the ratings event).

     

    “Change
of Control” means the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that any
“person” (as that term is used in Section 13(d)(3) of the Exchange Act), other
than CSX or the Company’s subsidiaries, becomes the beneficial owner (as defined
in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of
more than 50% of the combined voting power of the Company’s Voting Stock or
other Voting Stock into which the Company’s Voting Stock is reclassified,
consolidated, exchanged or changed measured by voting power rather than number
of shares.

     

    “Change
of Control Repurchase Event” means the occurrence of both a Change of Control
and a Below Investment Grade Ratings Event.

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

     

    “Fitch”
means Fitch Ratings Ltd.

     

    “Investment
Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any
successor rating categories of Moody’s); a rating of BBB- or better by S&P
or Fitch (or its equivalent under any successor rating categories of S&P and
Fitch); or the equivalent Investment Grade credit rating from any additional
Rating Agency or Rating Agencies selected by the Company.

     

    “Moody’s”
means Moody’s Investors Service Inc.

     

    “Rating
Agency” means (1) each of Moody’s, S&P and Fitch; and (2) if any of Moody’s,
S&P or Fitch ceases to rate the “Securities” or fails to make a rating of
the “Securities” publicly available for reasons outside of the Company’s
control, a “nationally recognized statistical rating organization” within the
meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the
Company (as certified by a resolution of the Chief Executive Officer or Chief
Financial Officer) as a replacement agency for Moody’s, S&P or Fitch, or all
of them, as the case may be.

     

    “S&P”
means Standard & Poor’s Ratings Services, a division of McGraw-Hill,
Inc.

     

    “Voting
Stock” of any specified “person” (as that term is used in Section 13(d)(3) of
the Exchange Act) as of any date means the capital stock of such person that is
at the time entitled to vote generally in the election of the board of directors
of such person.

     

    The
Indenture contains provisions for defeasance at any time of (a) the entire
indebtedness of the Company on this Security and (b) certain restrictive
covenants and the related defaults and Events of Default, upon compliance with
certain conditions set forth therein, which provisions shall apply to this
Security.

     

    The
provisions of Article Fourteen of the Indenture apply to Securities of this
series.

     

    The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Company and
the rights of the Holders of the Securities of each series to be affected under
the Indenture at any time by the Company and the Trustee with the consent of the
Holders of a majority in aggregate principal amount of the Securities at the
time Outstanding of each series affected thereby.  The Indenture also
contains provisions permitting the Holders of specified percentages in aggregate
principal amount of the Securities of each series at the time Outstanding on
behalf of the Holders of all Securities of such series to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences.  Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security  and the Persons
who are beneficial owners of interests represented hereby, and of any Security
issued in exchange herefor or in lieu hereof whether or not notation of such
consent or waiver is made upon this Security.

     

    As set
forth in, and subject to, the provisions of the Indenture, no Holder of any
Security of this series will have any right to institute any proceeding with
respect to the Indenture or for any remedy thereunder, unless such Holder shall
have previously given to the Trustee written notice of a continuing Event of
Default with respect to the Securities of this series, the Holders of not less
than 25% in aggregate principal amount of the Outstanding Securities of this
series shall have made written request, and offered reasonable indemnity, to the
Trustee to institute such proceeding as trustee, and the Trustee shall not have
received from the Holders of a majority in aggregate principal amount of the
Outstanding Securities of this series a direction inconsistent with such request
and shall have failed to institute such proceeding within 60 days; provided,
however, that such limitations do not apply to a suit instituted by the Holder
hereof for the enforcement of payment of the principal of (and premium, if any)
or interest on this Security on or after the respective due dates expressed
herein.

     

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

     

    No
reference herein to the Indenture and no provision of this Security or of the
Indenture shall alter or impair the obligation of the Company, which is absolute
and unconditional to pay the principal of (and premium, if any) and interest on
this Security at the time, place and rate, and in the coin or currency, herein
prescribed.

     

    As
provided in the Indenture and subject to certain limitations therein and herein
set forth, the transfer of Registered Securities of the series of which this
Security is a part may be registered on the Security Register of the Company,
upon surrender of such Securities for registration of transfer at the office of
the Security Registrar, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security Registrar duly
executed by the Holder thereof or his attorney duly authorized in writing, and
thereupon one or two more new Securities of this Series and of like tenor, of
authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.

     

    No
service charge shall be made for any such registration of transfer or exchange
of Securities as provided above, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith.

     

    Prior to
due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Security is registered as the owner hereof for all purposes,
whether or not this Security be overdue, and neither the Company, the Trustee
nor any such agent shall be affected by notice to the contrary.

     

    The
Securities of this series of which this Security is a part are issuable only in
registered form without coupons, in denominations of $2,000.00 and integral
multiples of $1,000.00.  As provided in the Indenture and subject to
certain limitations therein set forth, the Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series
and of like tenor of a different authorized denomination, as requested by the
Holder surrendering the same.

     

    The
Securities of this series shall be dated the date of their
authentication.

     

    All terms
used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

     

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

     

    Unless
the certificate of authentication hereon has been executed by or on behalf of
the Trustee under the Indenture, or its successor thereunder, by the manual
signature of one of its authorized officers, this Security shall not be entitled
to any benefit under the Indenture or be valid or obligatory for any
purpose.

     

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    

    IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed
under its corporate seal.

     

    
      	
              Dated:  March
      27, 2008

            	
              CSX
      CORPORATION

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      Peter J. Shudtz

            
	 
      	 
      	
              Name:

            	
              Peter
      J. Shudtz

            
	 
      	 
      	
              Title:

            	
              Vice
      President-Federal Regulation And General
Counsel

            

    

    

    

    
      	
              Attest:

            
	 
      
	/s/
      Nathan Goldman
	
              Assistant
      Corporate Secretary

            

    

    

    

     

    
      	
              CITY
      OF WASHINGTON

            	 
      
	 
      	
              )
      ss.:

            
	
              DISTRICT
      OF COLUMBIA

            	 
      

    

    

    Before
me, a Notary Public in and for said State and County/City, personally appeared
Peter J. Shudtz, personally known to me or proved to me on the basis of
satisfactory evidence to be the person whose name is subscribed to the within
instrument and acknowledged to me that he executed the same in his authorized
capacity, and that by his signature on the instrument, the company on behalf of
which he acted executed the instrument.

    

    WITNESS
my hand and official seal this 27th day of March, 2008, in the State and
County/City aforesaid.

     

    
      	 
      	 
	 
      	 
	
              /s/
      Kris Kononen

            	 
	
              Notary
      Public in and for the State and County/City aforesaid

            	 

    

    

     

    
      	
              My
      commission expires:

            	
              8/14/2008

            
	 	 
	
              Printed
      Name of Notary Public:

            	
              Kris
      Kononen

              Notary
      Public District of Columbia

              My
      Commission expires 08/14/2008

            

    

     

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
 

    TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

     

    This is
one of the Securities of a series issued under the Indenture described
herein.

     

    
      	
              THE
      BANK OF NEW YORK TRUST COMPANY, N.A.

              as
      Trustee

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              By:

            	
              /s/
      Geraldine Creswell

            
	 
      	
              Authorized
      Officer

            

    

    

     

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

     

    

    FORM OF
TRANSFER NOTICE

     

    
      
        	
                FOR VALUE RECEIVED the
      undersigned registered holder hereby sell(s), assign(s) and transfer(s)
      unto

              
	 
      	 
      
	
                Insert Taxpayer
      Identification No.

              	 
      
	 
	
                Please
      print or typewrite name and address including zip code of
      assignee

              
	 
      
	
                the
      within Security and all rights thereunder, hereby irrevocably constituting
      and appointing

              
	 
      	 
      
	 
      	
                attorney
      to transfer said Security on the books of the Security

              
	
                Registrar
      with full power of substitution in the
premises.

              

      

       

       

      
      

       

      
        	 Date:	 	 	 
	 	 	 	 NOTICE: 
      The
      signature to this assignment must correspond with the name as written upon
      the face of the within-mentioned instrument in every particular, without
      alteration or any change
whatsoever.

      

       

       

    

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT A

     

    Schedule of
Exchanges

     

     

     

     

     

     

     

     

     

     

     

     

     

    14ex4_3.htm

    Exhibit
4.3

     

     

    
      UNLESS
THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

       

      TRANSFERS
OF THIS SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S
NOMINEE.

       

      CSX
CORPORATION

      

      

      $400,000,000

      7.450%
NOTES DUE 2038

       

      
         

        
          	No. 1-A	
                  CUSIP No. 126408
      GP2 

                

        

         

      

       

      This
security (the “Security”) is one of a duly authorized issue of securities
(herein called the “Securities”) of CSX Corporation, a Virginia corporation
(hereinafter called the “Company,” which term includes any successor corporation
under the Indenture hereinafter referred to), issued and to be issued in one or
more series under an indenture, unlimited as to aggregate principal amount,
dated as of August 1, 1990 between the Company and The Bank of New York
Trust Company, N.A., successor to JPMorgan Chase Bank, N.A., formerly known as
The Chase Manhattan Bank, as Trustee (herein called the “Trustee,” which term
includes any successor trustee under the Indenture (as hereinafter defined)), as
supplemented by a First Supplemental Indenture dated as of June 15, 1991, a
Second Supplemental Indenture dated as of May 6, 1997, a Third Supplemental
Indenture dated as of April 22, 1998, a Fourth Supplemental Indenture dated as
of October 30, 2001, a Fifth Supplemental Indenture dated as of October 27,
2003, a Sixth Supplemental Indenture dated as of September 23, 2004, and a
Seventh Supplemental Indenture dated as of April 25, 2007, to which indenture
and all indentures supplemental thereto (the indenture, as supplemented being
herein called the “Indenture”) reference is hereby made for a statement of the
respective rights thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered.  This Security is one of the series
designated on the face hereof, which series has been issued in an initial
aggregate principal amount of $400,000,000 (FOUR HUNDRED MILLION DOLLARS). All
Securities of this series need not be issued at the same time and such series
may be reopened at any time, without the consent of any Holder, for issuances of
additional Securities of this series.  Any such additional Securities
of this series will have the same interest rate, maturity and other terms as
those initially issued.  Further Securities of this series may also be
authenticated and delivered as provided by Sections 304, 305, 306 or 906 of the
Indenture. This Security represents an aggregate initial principal amount of
$400,000,000 (FOUR HUNDRED MILLION DOLLARS) (as adjusted from time to time in
accordance with the terms and provisions hereof and as set forth on Exhibit A
hereto, the “Principal Amount”) of the Securities of such series, with the
Interest Payment Dates, date of original issuance, and date of Maturity
specified herein and bearing interest on said Principal Amount at the interest
rate specified herein.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      The
Company, for value received, hereby promises to pay CEDE & CO., or its
registered assigns, the principal sum of $400,000,000 (FOUR HUNDRED MILLION
DOLLARS) on April 1, 2038 and to pay interest (computed on the basis of a
360-day year of twelve 30-day months) thereon from March 27, 2008 or from the
most recent Interest Payment Date to which interest has been paid or duly
provided for, or, if the date of this Security is an Interest Payment Date to
which interest has been paid or duly provided for, then from the date hereof,
semiannually in arrears on April 1 and October 1 of each year, commencing
October 1, 2008, and at Maturity at the rate of 7.450% per annum, until the
principal hereof is paid or duly made available for payment.  The
Company shall pay interest on overdue principal and premium, if any, and (to the
extent lawful) interest on overdue installments of interest at the rate per
annum borne by the Security.  The interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in
such Indenture, be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest, which shall be the March 15 or September
15 (whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date.  Except as otherwise provided in the Indenture,
any such interest not so punctually paid or duly provided for shall forthwith
cease to be payable to the Holder on such Regular Record Date and may be paid to
the Person in whose name this Security (or one or more Predecessor Securities)
is registered at the close of business on a Special Record Date to be fixed by
the Trustee for the payment of such Defaulted Interest, notice whereof shall be
given to the Holder of this Security not less than 10 days prior to such Special
Record Date, or may be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange or automated
quotation system on which the Securities of this series may be listed or quoted,
and upon such notice as may be required by such exchange or system, all as more
fully provided in such Indenture.  Notwithstanding the foregoing,
interest payable on this Security at Maturity will be payable to the person to
whom principal is payable.

       

      This
Security is exchangeable in whole or from time to time in part for definitive
Registered Securities of this series only as provided in this
paragraph.  If (x) the Depository with respect to the Securities of
this series (the “Depository”) notifies the Company that it is unwilling, unable
or ineligible to continue as Depository for this Security or if at any time the
Depository ceases to be a clearing agency registered under the Securities
Exchange Act of 1934, as amended, and a successor Depository is not appointed by
the Company within 90 days, (y) the Company in its sole discretion determines
that this Security shall be exchangeable for definitive Registered Securities
and executes and delivers to the Trustee a Company Order providing that this
Security shall be so exchangeable or (z) there shall have happened and be
continuing an Event of Default or any event which, after notice or lapse of
time, or both, would become an Event of Default with respect to the Securities
of the series of which this Security is a part, this Security or any portion
hereof shall, in the case of clause (x) above, be exchanged for definitive
Registered Securities of this series, and in the case of clauses (y) and (z)
above, be exchangeable for definitive Registered Securities of this series,
provided that the definitive Security so issued in exchange for this Security
shall be in authorized denominations and be of like tenor and of an equal
aggregate principal amount as the portion of the Security to be exchanged, and
provided further that, in the case of clauses (y) and (z) above, definitive
Registered Securities of this series will be issued in exchange for this
Security, or any portion hereof, only if such definitive Registered Securities
were requested by written notice to the Security Registrar by or on behalf of a
Person who is a beneficial owner of an interest herein given through the Holder
hereof.  Any definitive Registered Security of this series issued in
exchange for this Security, or any portion hereof, shall be registered in the
name or names of such Person or Persons as the Holder hereof shall instruct the
Security Registrar.  Except as provided above, owners of beneficial
interests in this Security will not be entitled to receive physical delivery of
Securities in definitive form and will not be considered the Holders thereof for
any purpose under the Indenture.

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      Any
exchange of this Security or portion hereof for one or more definitive
Registered Securities of this series will be made at the New York office of the
Security Registrar or at the office of any transfer agent designated by the
Company for that purpose.  Upon exchange of any portion of this
Security for one or more definitive Registered Securities of this series, the
Trustee shall endorse Exhibit A of this Security to reflect the reduction of its
Principal Amount by an amount equal to the aggregate principal amount of the
definitive Registered Securities of this series so issued in exchange, whereupon
the Principal Amount hereof shall be reduced for all purposes by the amount so
exchanged and noted.  Except as otherwise provided herein or in the
Indenture, until exchanged in full for one or more definitive Registered
Securities of this series, this Security shall in all respects be subject to and
entitled to the same benefits and conditions under the Indenture as a duly
authenticated and delivered definitive Registered Security of this
series.

       

      The
principal and any interest in respect of any portion of this Security payable in
respect of an Interest Payment Date or at the Stated Maturity thereof, in each
case occurring prior to the exchange of such portion for a definitive Registered
Security or Securities of this series, will be paid, as provided herein, to the
Holder hereof which will undertake in such circumstances to credit any such
principal and interest received by it in respect of this Security to the
respective accounts of the Persons who are the beneficial owners of such
interests on such Interest Payment Date or at Stated Maturity.  If a
definitive Registered Security or Registered Securities of this series are
issued in exchange for any portion of this Security after the close of business
at the office or agency where such exchange occurs on (i) any Regular Record
Date and before the opening of business at such office or agency on the relevant
Interest Payment Date, or (ii) any Special Record Date and before the opening of
business at such office or agency on the related proposed date for payment of
Defaulted Interest, then interest or Defaulted Interest, as the case may be,
will not be payable on such Interest Payment Date or proposed date for payment,
as the case may be, in respect of such Registered Security, but will be payable
on such Interest Payment Date or proposed date for payment, as the case may be,
only to the Holder hereof, and the Holder hereof will undertake in such
circumstances to credit such interest to the account or accounts of the Persons
who were the beneficial owners of such portion of this Security on such Regular
Record Date or Special Record Date, as the case may be.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      Payment
of the principal of and any such interest on this Security will be made at the
offices of the Trustee as Paying Agent, in the Borough of Manhattan, The City of
New York, or at such other office or agency of the Company as may be designated
by it for such purpose in the Borough of Manhattan, The City of New York, in
such coin or currency of the United States of America as at the time of payment
shall be legal tender for the payment of public and private debts by check
mailed to the registered Holders thereof; provided, however, that at the
option of the Holder, payment of interest may be made by wire transfer of
immediately available funds to an account of the Person entitled hereto as such
account shall be provided to the Security Registrar and shall appear in the
Security Register.

       

      The
Securities shall be redeemable, in whole or in part, at the Company’s option at
any time.  The Redemption Price for the Securities to be redeemed
shall equal the greater of the following amounts, plus, in each case, accrued
interest thereon to the Redemption Date:

      

      
        	
                 
      

              	
                ●

              	
                100%
      of the principal amount of such Securities;
or

              

      

       

      
        	
                 
      

              	
                
                  ●

                

              	
                As
      determined by the Independent Investment Banker (as defined below), the
      sum of the present values of the remaining scheduled payments of principal
      and interest on the Securities (not including any portion of any payments
      of interest accrued from the most recent Interest Payment Date to which
      interest has been paid to the Redemption Date) discounted to the
      Redemption Date on a semiannual basis at the Adjusted Treasury Rate (as
      defined below) plus 50 basis
points.

              

      

       

      The
Redemption Price shall be calculated by the Independent Investment Banker
assuming a 360-day year consisting of twelve 30-day months.

      

      “Adjusted
Treasury Rate” means, with respect to any Redemption Date:

      

      
        	
                 
      

              	
                
                  ●

                

              	
                the
      yield, under the heading which represents the average for the immediately
      preceding week, appearing in the most recently published statistical
      release designated “H.15(519)” or any successor publication which is
      published weekly by the Board of Governors of the Federal Reserve System
      and which establishes yields on actively traded U.S. Treasury securities
      adjusted to constant maturity under the caption “Treasury Constant
      Maturities,” for the maturity corresponding to the Comparable Treasury
      Issue (if no maturity is within three months before or after the remaining
      term of the Securities, yields for the two published maturities most
      closely corresponding to the Comparable Treasury Issue will be determined
      and the Adjusted Treasury Rate will be interpolated or extrapolated from
      such yields on a straight line basis, rounding to the nearest month);
      or

              

      

       

      
        	
                 
      

              	
                
                  ●

                

              	
                If
      such release (or any successor release) is not published during the week
      preceding the calculation date or does not contain such yields, the rate
      per annum equal to the semiannual equivalent yield to maturity of the
      Comparable Treasury Issue, assuming a price for the Comparable Treasury
      Issue (expressed as a percentage of its principal amount) equal to the
      Comparable Treasury Price for such Redemption
  Date.

              

      

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      The
Adjusted Treasury Rate shall be calculated on the third Business Day preceding
the Redemption Date.  The Company shall notify the Trustee, in an
Officers’ Certificate, of the Redemption Price no later than the second Business
Day preceding the Redemption Date. The Officers’ Certificate shall set forth the
Redemption Price both as an aggregate amount for all the Securities to be
redeemed and as an amount per $1,000.00 in principal amount of the Securities to
be redeemed, subject to a minimum $2,000.00 denomination as set forth
below.

      

      “Comparable
Treasury Issue” means the U.S. Treasury security selected by the Independent
Investment Banker as having a maturity comparable to the remaining term of the
Securities to be redeemed that would be utilized, at the time of selection and
in accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of such
Securities.

      

      “Comparable
Treasury Price” means, with respect to any Redemption Date, (A) the average of
five Reference Treasury Dealer Quotations for such Redemption Date, after
excluding the highest and lowest such Reference Treasury Dealer Quotations, or
(B) if the Independent Investment Banker obtains fewer than five such Reference
Treasury Dealer Quotations, the average of all such quotations.

      

      “Independent
Investment Banker” means Citigroup Global Markets Inc. and its
successors, or if that firm is unwilling or unable to serve in that capacity, an
independent investment and banking institution of national standing appointed by
the Company.

      

      “Reference
Treasury Dealer” means:

      

      
        	
                 
      

              	
                
                  ●

                

              	
                Barclays
      Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities
      (USA) LLC and Morgan Stanley & Co. Incorporated and their successors;
      provided that, if any ceases to be a primary U.S. Government securities
      dealer in the United States (“Primary Treasury Dealer”), the Company will
      substitute another Primary Treasury Dealer;
and

              

      

      
        	
                 
      

              	
                
                  ●

                

              	
                Up
      to four other Primary Treasury Dealers selected by the
      Company.

              

      

      

      “Reference
Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer
and any Redemption Date, the average, as determined by the Independent
Investment Banker, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Independent Investment Banker by such Reference Treasury Dealer
at 5:00 p.m. (New York City time) on the third business day preceding such
Redemption Date.

      

      Notice of
redemption shall be given as provided in Section 1104 of the Indenture;
provided, that such notice shall not be required to include the Redemption Price
but shall instead include the manner of calculation of the Redemption
Price.  If the Company elects to partially redeem the Securities, the
Trustee will select in a fair and appropriate manner the Securities to be
redeemed.

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      
 

      Unless
the Company defaults in payment of the Redemption Price, on and after the
Redemption Date interest will cease to accrue on the Securities or portions
thereof called for redemption.

      

      If an
Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series (including this
Security and the interests represented hereby) may be declared due and payable
in the manner and with the effect provided in the Indenture. Upon payment (i) of
the amount of principal so declared due and payable and (ii) of interest on any
overdue principal and overdue interest (in each case to the extent that the
payment of such interest shall be legally enforceable), all of the Company’s
obligations in respect of the payment of the principal of and any interest on
the Securities of this series (including this Security and the interests
represented hereby) shall terminate.

       

      If a
Change of Control Repurchase Event occurs, unless the Company have exercised the
Company’s right to redeem the “Securities” as described above, the Company will
be required to make an offer to each holder of the “Securities” to repurchase
all or any part (equal to $2,000 or an integral multiple of $1,000 in excess
thereof) of that holder’s “Securities” at a repurchase price in cash equal to
101% of the aggregate principal amount of the “Securities” repurchased plus any
accrued and unpaid interest on the “Securities” repurchased to, but not
including, the date of repurchase.  Within 30 days following any
Change of Control Repurchase Event or, at the Company’s option, prior to any
Change of Control, but after the public announcement of the Change of Control,
the Control will mail a notice to each holder, with a copy to the Trustee,
describing the transaction or transactions that constitute or may constitute the
Change of Control Repurchase Event and offering to repurchase the “Securities”
on the payment date specified in the notice, which date will be no earlier than
30 days and no later than 60 days from the date such notice is
mailed.  The notice shall, if mailed prior to the date of consummation
of the Change of Control, state that the offer to purchase is conditioned on a
Change of Control Repurchase Event occurring on or prior to the payment date
specified in the notice.  The Company will comply with the
requirements of Rule 14e-1 under the Exchange Act, and any other securities laws
and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of the “Securities” as a result of
a Change of Control Repurchase Event.  To the extent that the
provisions of any securities laws or regulations conflict with the Change of
Control Repurchase Event provisions of the “Securities”, the Company will comply
with the applicable securities laws and regulations and will not be deemed to
have breached the Company’s obligations under the Change of Control Repurchase
Event provisions of the “Securities” by virtue of such conflict.

       

      On the
repurchase date following a Change of Control Repurchase Event, the Company
will, to the extent lawful:

       

      
        	
                 
      

              	
                (1)

              	
                accept
      for payment all the “Securities” or portions of the “Securities” properly
      tendered pursuant to the Company’s
offer;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                deposit
      with the paying agent an amount equal to the aggregate purchase price in
      respect of all the “Securities” or portions of the “Securities” properly
      tendered; and

              

      

       

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (3)

              	
                deliver
      or cause to be delivered to the Trustee the “Securities” properly
      accepted, together with an officers’ certificate stating the aggregate
      principal amount of the “Securities” being purchased by the
      Company.

              

      

       

      The
paying agent will promptly mail to each holder of the “Securities” properly
tendered the purchase price for the “Securities”, and the Trustee will promptly
authenticate and mail (or cause to be transferred by book-entry) to each holder
a new note equal in principal amount to any unpurchased portion of any
“Securities” surrendered; provided that each new note will be in a principal
amount of $2,000 or an integral multiple of $1,000 in excess
thereof.

       

      The
Company will not be required to make an offer to repurchase the “Securities”
upon a Change of Control Repurchase Event if a third party makes such an offer
in the manner, at the times and otherwise in compliance with the requirements
for an offer made by the Company and such third party purchases all the
“Securities” properly tendered and not withdrawn under its offer.

       

      For
purposes of the foregoing description of a repurchase at the option of holders,
the following definitions are applicable:

       

      “Below
Investment Grade Ratings Event” means that on any day within the 60-day period
(which period shall be extended so long as the rating of the “Securities” is
under publicly announced consideration for a possible downgrade by any of the
Rating Agencies) after the earlier of (1) the occurrence of a Change of Control;
or (2) public notice of the occurrence of a Change of Control or the intention
by CSX to effect a Change of Control, the “Securities” are rated below
Investment Grade by each of the Rating Agencies. Notwithstanding the foregoing,
a Below Investment Grade Ratings Event otherwise arising by virtue of a
particular reduction in rating shall not be deemed to have occurred in respect
of a particular Change of Control (and thus shall not be deemed a Below
Investment Grade Ratings Event for purposes of the definition of Change of
Control Repurchase Event hereunder) if the Rating Agencies making the reduction
in rating to which this definition would otherwise apply do not announce or
publicly confirm or inform the Trustee in writing at its request that the
reduction was the result, in whole or in part, of any event or circumstance
comprised of or arising as a result of, or in respect of, the applicable Change
of Control (whether or not the applicable Change of Control shall have occurred
at the time of the ratings event).

       

      “Change
of Control” means the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that any
“person” (as that term is used in Section 13(d)(3) of the Exchange Act), other
than CSX or the Company’s subsidiaries, becomes the beneficial owner (as defined
in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of
more than 50% of the combined voting power of the Company’s Voting Stock or
other Voting Stock into which the Company’s Voting Stock is reclassified,
consolidated, exchanged or changed measured by voting power rather than number
of shares.

       

      “Change
of Control Repurchase Event” means the occurrence of both a Change of Control
and a Below Investment Grade Ratings Event.

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      “Fitch”
means Fitch Ratings Ltd.

       

      “Investment
Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any
successor rating categories of Moody’s); a rating of BBB- or better by S&P
or Fitch (or its equivalent under any successor rating categories of S&P and
Fitch); or the equivalent Investment Grade credit rating from any additional
Rating Agency or Rating Agencies selected by the Company.

       

      “Moody’s”
means Moody’s Investors Service Inc.

       

      “Rating
Agency” means (1) each of Moody’s, S&P and Fitch; and (2) if any of Moody’s,
S&P or Fitch ceases to rate the “Securities” or fails to make a rating of
the “Securities” publicly available for reasons outside of the Company’s
control, a “nationally recognized statistical rating organization” within the
meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the
Company (as certified by a resolution of the Chief Executive Officer or Chief
Financial Officer) as a replacement agency for Moody’s, S&P or Fitch, or all
of them, as the case may be.

       

      “S&P”
means Standard & Poor’s Ratings Services, a division of McGraw-Hill,
Inc.

       

      “Voting
Stock” of any specified “person” (as that term is used in Section 13(d)(3) of
the Exchange Act) as of any date means the capital stock of such person that is
at the time entitled to vote generally in the election of the board of directors
of such person.

       

      The
Indenture contains provisions for defeasance at any time of (a) the entire
indebtedness of the Company on this Security and (b) certain restrictive
covenants and the related defaults and Events of Default, upon compliance with
certain conditions set forth therein, which provisions shall apply to this
Security.

       

      The
provisions of Article Fourteen of the Indenture apply to Securities of this
series.

       

      The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Company and
the rights of the Holders of the Securities of each series to be affected under
the Indenture at any time by the Company and the Trustee with the consent of the
Holders of a majority in aggregate principal amount of the Securities at the
time Outstanding of each series affected thereby.  The Indenture also
contains provisions permitting the Holders of specified percentages in aggregate
principal amount of the Securities of each series at the time Outstanding on
behalf of the Holders of all Securities of such series to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences.  Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security  and the Persons
who are beneficial owners of interests represented hereby, and of any Security
issued in exchange herefor or in lieu hereof whether or not notation of such
consent or waiver is made upon this Security.

       

      As set
forth in, and subject to, the provisions of the Indenture, no Holder of any
Security of this series will have any right to institute any proceeding with
respect to the Indenture or for any remedy thereunder, unless such Holder shall
have previously given to the Trustee written notice of a continuing Event of
Default with respect to the Securities of this series, the Holders of not less
than 25% in aggregate principal amount of the Outstanding Securities of this
series shall have made written request, and offered reasonable indemnity, to the
Trustee to institute such proceeding as trustee, and the Trustee shall not have
received from the Holders of a majority in aggregate principal amount of the
Outstanding Securities of this series a direction inconsistent with such request
and shall have failed to institute such proceeding within 60 days; provided,
however, that such limitations do not apply to a suit instituted by the Holder
hereof for the enforcement of payment of the principal of (and premium, if any)
or interest on this Security on or after the respective due dates expressed
herein.

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      No
reference herein to the Indenture and no provision of this Security or of the
Indenture shall alter or impair the obligation of the Company, which is absolute
and unconditional to pay the principal of (and premium, if any) and interest on
this Security at the time, place and rate, and in the coin or currency, herein
prescribed.

       

      As
provided in the Indenture and subject to certain limitations therein and herein
set forth, the transfer of Registered Securities of the series of which this
Security is a part may be registered on the Security Register of the Company,
upon surrender of such Securities for registration of transfer at the office of
the Security Registrar, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security Registrar duly
executed by the Holder thereof or his attorney duly authorized in writing, and
thereupon one or two more new Securities of this Series and of like tenor, of
authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.

       

      No
service charge shall be made for any such registration of transfer or exchange
of Securities as provided above, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith.

       

      Prior to
due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Security is registered as the owner hereof for all purposes,
whether or not this Security be overdue, and neither the Company, the Trustee
nor any such agent shall be affected by notice to the contrary.

       

      The
Securities of this series of which this Security is a part are issuable only in
registered form without coupons, in denominations of $2,000.00 and integral
multiples of $1,000.00.  As provided in the Indenture and subject to
certain limitations therein set forth, the Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series
and of like tenor of a different authorized denomination, as requested by the
Holder surrendering the same.

       

      The
Securities of this series shall be dated the date of their
authentication.

       

      All terms
used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      Unless
the certificate of authentication hereon has been executed by or on behalf of
the Trustee under the Indenture, or its successor thereunder, by the manual
signature of one of its authorized officers, this Security shall not be entitled
to any benefit under the Indenture or be valid or obligatory for any
purpose.

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      

      IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed
under its corporate seal.

       

       

       

      
        
          	Dated:  March
      27, 2008  	
                  CSX
      CORPORATION

                   

                   

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ 
      Peter
      J. Shudtz 	 
	 	 	Name:
       Peter J. Shudtz	 
	 	 	Title:    Vice
      President-Federal Regulation And General Counsel	 
	 	 	 	 

        

      

       

       

      
      

       

      
        	
                 Attest:

                 

                 

                /s/
      Nathan Goldman

              
	Assistant Corporate
      Secretary 

      

       

       

      
      

       

      
        	CITY OF
      WASHINGTON 	 
	 	 )
    ss.:
	DISTRICT
      OF COLUMBIA	 

      

       

       

      Before
me, a Notary Public in and for said State and County/City, personally appeared
Peter J. Shudtz, personally known to me or proved to me on the basis of
satisfactory evidence to be the person whose name is subscribed to the within
instrument and acknowledged to me that he executed the same in his authorized
capacity, and that by his signature on the instrument, the company on behalf of
which he acted executed the instrument.

      

      WITNESS
my hand and official seal this 27th day of March, 2008, in the State and
County/City aforesaid.

       

       

       

      
        
          	
                   

                	
                  By:
      

                	/s/ Kris
      Kononen	 
	 	 	Notary
      Public in and for the State and County/City aforesaid	 
	 	 	 	 
	
                  My
      commission expires: 

                	 	8/14/2008 	 
	 	 	 	 
	Printed
      Name of Notary Public: 	 	
                  Kris
      Kononen

                  Notary Public District of Columbia

                  My Commission expires 08/14/2008

                	 

        

      

       

       

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

       

      This is
one of the Securities of a series issued under the Indenture described
herein.

       

       

      
        
          	 	
                  THE BANK OF NEW YORK TRUST COMPANY, N.A.

                  as
      Trustee

                   

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ Geraldine
      Creswell	 
	 	 	Authorized
      Officer	 
	 	 	 	 
	 	 	 	 

        

      

       

       

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      FORM OF
TRANSFER NOTICE

       

      FOR VALUE
RECEIVED the undersigned registered holder hereby sell(s), assign(s) and
transfer(s) unto

       

      Insert Taxpayer
Identification No.

      
        
          
            	 
	Please print or
      typewrite name and address including zip code of
  assignee 
	 
	the within Security
      and all rights thereunder, hereby irrevocably constituting and
      appointing _________________________________ attorney to transfer
      said Security on the books of the Security Registrar with full power of
      substitution in the premises. 

          

           

        

         

         

        
        

         

        
          	 Date:
      ___________________________	 	 
	 	 	NOTICE:  The
      signature to this assignment must correspond with the name as written upon
      the face of the within-mentioned instrument in every particular, without
      alteration or any change whatsoever.

        

         

         

         

         

      

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      EXHIBIT A

       

      Schedule of
Exchanges

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      14

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