Document:

ex4-4.htm

     

    Exhibit
      4.4

     

    
      

      SEVENTH
        SUPPLEMENTAL INDENTURE dated as
        of April 25, 2007 between CSX Corporation, a Virginia corporation (the
“Company"), and The Bank of New York (as successor to JPMorgan Chase Bank,
        N.A.,
        formerly The Chase Manhattan Bank), a New York banking corporation, Trustee
        (the
“Trustee").

       

      RECITALS
        OF THE COMPANY

      

      WHEREAS,
        the Company has heretofore
        executed and delivered to the Trustee a certain indenture, dated as of August
        1,
        1990 and supplemented by the First Supplemental Indenture (the “First
        Supplemental Indenture") dated as of June 15, 1991, the Second Supplemental
        Indenture dated as of May 6, 1997 (the “Second Supplemental
        Indenture"), the Third Supplemental Indenture dated as of
        April 22, 1998 (the “Third Supplemental Indenture"), the Fourth Supplemental
        Indenture dated as of October 30, 2001 (the “Fourth Supplemental Indenture"),
        the Fifth Supplemental Indenture dated as of October 27, 2003 (the “Fifth
        Supplemental Indenture") and the Sixth Supplemental Indenture dated as of
        September 23, 2004 (the "Sixth Supplemental Indenture")(the indenture, as
        so
        supplemented and as further supplemented herein, is herein called the
        "Indenture"), pursuant to which one or more series of unsecured debentures,
        securities or other evidences
        of indebtedness of the Company (herein called the "Securities") may be issued
        from time to time;

      

      WHEREAS,
        Section 901 of the Indenture
        provides that the Company, when authorized by a Board Resolution, and the
        Trustee may at any time and from time to time enter into one or more indentures
        supplemental to the Indenture for the purpose, among other things, of (i)
        establishing the form or terms of  Securities of any series and any
        related coupons as permitted by Sections 201 and 301 of the Indenture or
        (ii)
        making any other provisions with respect to matters or questions arising
        under
        the Indenture, provided that such action shall not adversely affect the
        interests of the Holders of Securities of any series or any related coupons
        in
        any material respect;

      

      WHEREAS,
        the Company desires to issue
        and has duly authorized the execution and delivery of this seventh supplemental
        indenture (the "Seventh Supplemental Indenture") to provide for the issuance
        of
        the 5.600% Notes due 2017 (the "2017 Notes") and 6.150% Notes due 2037 (the
        "2037 Notes" and, together with the 2017 Notes, the "Notes");

      

      WHEREAS,
        the Company, pursuant to the
        foregoing authority, proposes in and by this Seventh Supplemental Indenture
        to
        amend and supplement the Indenture;

      

      WHEREAS,
        the Company proposes to make
        the terms, provisions and conditions of this Seventh Supplemental Indenture
        applicable to the issuance of the Notes and to the issuance of all such series
        of Securities, issued after the date hereof, which are established pursuant
        to
        an Officers' Certificate delivered under Section 301 of the Indenture and
        contain the same definition of "Change of Control" as set forth in Section
        3.13
        hereof; and

      

      WHEREAS,
        all things necessary to make
        this Seventh Supplemental Indenture a valid agreement of the Company and
        the
        Trustee and a valid amendment of and supplement to the Indenture have been
        done.

      

      NOW,
        THEREFORE, THIS SEVENTH
        SUPPLEMENTAL INDENTURE WITNESSETH:

      

      For
        and in consideration of the
        premises and the purchase of the Notes by the Holders thereof and other good
        and
        valuable consideration, the receipt and sufficiency of which is hereby
        acknowledged, it is
        mutually covenanted and agreed as follows:

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
ARTICLE
        ONE

      

      RELATION
        TO INDENTURE; DEFINITIONS

      

      Section
        1.1  Relation to
        Indenture.  This Seventh Supplemental Indenture constitutes an integral
        part of the Indenture.

      

      Section
        1.2 
Definitions.  For all purposes of this Seventh Supplemental
        Indenture:

      

      (a) 
Capitalized
        terms used herein
        without definition shall have the meanings specified in the Indenture, unless
        otherwise defined in this Seventh Supplemental Indenture, in which case
        definitions set forth in this Seventh Supplemental Indenture shall govern;
        and

      

      (b) 
The
        terms “herein,” “hereof,”
“hereunder” and other words of similar import refer to this Seventh Supplemental
        Indenture.

      

      ARTICLE
        TWO

      

      SCOPES
        OF
        APPLICABILITY

      

      Section
        2.1  Applicability of
        this Seventh Supplemental Indenture.  Except as otherwise
        provided herein, the provisions of this Seventh Supplemental Indenture shall
        be
        applicable, and the Indenture is hereby amended and supplemented as specified
        herein, solely with respect to the Notes and not with respect to any other
        Securities previously issued or to be issued under the Indenture, unless
        such
        Securities are being issued after the date hereof and reference the
        applicability of this Seventh Supplemental Indenture in the Officers'
        Certificate pursuant to Section 301 of the Indenture which establishes their
        terms.

      

      Section
        2.2  Applicability of
        Indenture.  Except as otherwise provided herein, the Notes shall
        be subject to the provisions of the Indenture.

      

      Section
        2.3  Seventh
        Supplemental Indenture Shall Govern.  In the event of a conflict
        between any provisions of the Indenture and this Seventh Supplemental Indenture,
        the relevant provision or provisions of this Seventh Supplemental Indenture
        shall govern.

      

      ARTICLE
        THREE

      

      GENERAL
        TERMS AND CONDITIONS OF THE NOTES

      

      There
        is hereby established a series of
        Securities pursuant to the Indenture with the following terms:

      

      Section
        3.1  Title of the
        Securities.  The first series of Securities shall be
        designated the 5.600% Notes due 2017. The second series of Securities shall
        be
        designated the 6.150% Notes due 2037.

      

      Section
        3.2  Aggregate
        Principal Amount.  The 2017 Notes will be initially issued in an
        aggregate principal amount of $300,000,000. The 2037 Notes will be initially
        issued in an aggregate principal amount of $700,000,000.

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      
 

      Section
        3.3  Maturity
        Date.  The date on which the 2017 Notes shall mature is May 1, 2017.
        The date on which the 2037 Notes shall mature is May 1, 2037.

      

      Section
        3.4  Ranking. 
The Notes will be unsecured senior obligations of  the Company and
        will rank  pari passu with all other unsecured and
        unsubordinated indebtedness of the Company.

      

      Section
        3.5  Further
        Issues.  The Company may, from time to time, without the consent of the
        holders of either of the 2017 Notes or the 2037 Notes, as the case may be,
        issue
        other debt securities under the senior indenture in addition to the respective
        initial aggregate principal amount of either the 2017 Notes or the 2037 Notes,
        as the case may be.  The Company may also, from time to time, without
        the consent of the holders, issue additional debt securities having the same
        ranking and the same interest rate, maturity and other terms as each of the
        2017
        Notes and 2037 Notes.  Any additional debt securities having those
        similar terms, together with either the 2017 Notes or the 2037 Notes, as
        the
        case may be, will constitute a single series of debt securities under the
        senior
        indenture.

      

      Section
        3.6 
Interest.  The
        2017
        Notes will bear interest from April 25, 2007, or from the most recent interest
        payment date to which interest has been paid or duly provided for, at a rate
        of
        5.600% per annum, payable semi-annually on May 1 and November 1 of each year,
        commencing November 1, 2007. The Company will pay interest to the person
        in
        whose name a 2017 Note is registered at the close of business on the immediately
        preceding April 15 or October 15, whether or not that day is a business day.
        The
        Company will compute interest on the basis of a 360-day year consisting of
        twelve 30-day months.

       

             The
        2037 Notes will bear
        interest from April 25, 2007, or from the most recent interest payment date
        to
        which interest has been paid or duly provided for, at a rate of 6.150% per
        annum, payable semi-annually on May 1 and November 1 of each year, commencing
        November 1, 2007.  The Company will pay interest to the person in
        whose name a 2037 Note is registered at the close of business on the immediately
        preceding April 15 or October 15, whether or not that day is a business day.
        The
        Company will compute interest on the basis of a 360-day year consisting of
        twelve 30-day months.

      

      Section
        3.7  Issuance
        Price.  The purchase price to be paid to the Company for the sale of
        the 2017 Notes pursuant to the terms of the Underwriting Agreement, dated
        as of
        April 20, 2007, between the Company and Citigroup Global Markets Inc., J.P.
        Morgan Securities Inc. and Morgan Stanley & Co. Incorporated., as
        Representatives of the several Underwriters named in Schedule I thereto,
        shall
        be 99.167% of the principal amount of the 2017 Notes and the initial offering
        price to the public of the 2017 Notes shall be 99.817% of the principal amount
        of the Notes.

      

      The
        purchase price to be paid to the
        Company for the sale of the 2037 Notes pursuant to the terms of the Underwriting
        Agreement, dated as of April 20, 2007, between the Company and Citigroup
        Global
        Markets Inc., J.P. Morgan Securities Inc. and Morgan Stanley & Co.
        Incorporated., as Representatives of the several Underwriters named in Schedule
        I thereto, shall be 99.028% of the principal amount of the 2037 Notes and
        the
        initial offering price to the public of the 2037 Notes shall be 99.903% of
        the
        principal amount of the Notes.

      

      Section
        3.8  Global
        Notes.  Each series of the Notes will be represented by one or
        more permanent global notes in definitive, fully registered form without
        interest coupons (the “Global
        Note”).  Each
        beneficial interest in a Global Note is referred to as a book-entry
        Note.  Each Global Note representing book-entry Notes will be
        deposited with the trustee, as custodian for, and registered in the name
        of, a
        nominee of The Depository Trust Company, as depositary, located in the Borough
        of Manhattan, The City of New York (the “Depositary”).

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      
 

      Section
        3.9  Exchange of the
        Global Notes.  Notwithstanding any other provisions of the Indenture or
        the Notes, a Global Note may be transferred, in whole and not in part, by
        a
        nominee of the Depositary to the Depositary or another nominee of the
        Depositary, or by the Depositary or the nominee to a successor of the Depositary
        or a nominee of the successor, provided that a Global Note may be exchanged
        for
        definitive 2017 Notes or 2037 Notes, as the case may be, in the event that
        (i)
        the Depositary has notified the Company that it is unwilling or unable to
        continue as Depositary for such Global Note or such Depositary has ceased
        to be
        a "clearing agency" registered under the Exchange Act, and a successor
        Depositary is not appointed by the Company within 90 days, (ii) the Company
        decides to discontinue use of the system of book-entry transfer through DTC
        (or
        any successor depositary); or (iii) an event has happened and is continuing
        which, after notice or lapse of time, or both, would become an event of default
        with respect to the Notes.

      

      Any
        Global Note representing book-entry
        2017 Notes or 2037 Notes that is exchangeable pursuant to the preceding
        paragraph will be exchangeable in whole for definitive 2017 Notes or 2037
        Notes,
        as the case may be, in registered form, of like tenor and of an equal aggregate
        principal amount, in denominations of U.S. $2,000 and integral multiples
        of U.S.
        $1,000 in excess thereof.  Any Global Note to be exchanged in whole
        shall be canceled by the trustee and the definitive 2017 Notes or 2037 Notes,
        as
        the case may be, will be registered in the names and in the authorized
        denominations as the Depositary, pursuant to instructions from its participants,
        any indirect participants or otherwise, instructs the trustee. The trustee
        will
        deliver those Notes to the persons in whose names those Notes are registered
        and
        will recognize those persons as the holders of those
        Notes. Except as provided in the preceding sentence, owners of book entry
        notes
        will not be entitled to receive physical delivery of 2017 Notes or 2037 Notes,
        as the case may be, in definitive form and will not be considered the holders
        of
        those respective Notes for any purpose under the senior indenture, and no
        Global
        Note representing book-entry Notes will be exchangeable, except for another
        Global Note of like denomination and tenor to be registered in the name of
        the
        Depositary or its nominee.

      

      Section
        3.10  Paying
        Agent.  Payments of principal of and any premium and interest on
        book-entry Notes will be made to the Depositary or its nominee, as the case
        may
        be, as the registered owner of those Notes. The Company initially appoints
        JPMorgan Chase Bank, N.A. as paying agent. Those payments to the Depositary
        or
        its nominee, as the case may be, will be made in immediately available funds
        at
        the offices of JPMorgan Chase Bank, N.A. in the Borough of Manhattan, The
        City
        of New York, provided that, in the case of payments of principal and any
        premium, the global Notes are presented to the paying agent in time for the
        paying agent to make those payments in immediately available funds in accordance
        with its normal procedures. The Company may have one or more additional paying
        agents and one or more additional conversion agents. The term Paying Agent
        includes any additional paying agent.

      

      Section
        3.11  Authorized
        Denominations.  The Notes shall be issuable in denominations of $2,000
        and integral multiples of $1,000 in excess thereof.

      

      Section
        3.12 
Redemption.  The 2017 Notes are subject to redemption at the option
        of the Company as set forth in the form of 2017 Note attached hereto as Exhibit
        A.

      

      The
        2037 Notes are subject to
        redemption at the option of the Company as set forth in the form of 2037
        Note
        attached hereto as Exhibit B.

      

      Section
        3.13   Change of
        Control Repurchase Event.

      

      If
        a Change of Control Repurchase Event
        occurs, unless the Company have exercised its right to redeem the Notes as
        described above, the Company will be required to make an offer to each holder
        of
        Notes to repurchase all or any part (equal to $2,000 or an integral multiple
        of
        $1,000 in excess thereof) of that holder’s Notes at a repurchase price in cash
        equal to 101% of the aggregate principal amount of Notes repurchased plus
        any
        accrued and unpaid interest on the Notes repurchased to, but not including,
        the
        date of repurchase.  Within 30 days following any Change of Control
        Repurchase Event or, at its option, prior to any Change of Control, but after
        the public announcement of the Change of Control, the Company 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 Notes 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 Notes
        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 Notes, the Company will comply
        with
        the applicable securities laws and regulations and will not be deemed to
        have
        breached its obligations under the Change of Control Repurchase Event provisions
        of the Notes by virtue of such conflict.

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

       

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

       

      
        
          
            
              	 	
                      (1)

                    	
                      accept
                        for payment all Notes or portions of Notes properly tendered
                        pursuant to
                        its offer;

                    
	 	 	 
	 	
                      (2)

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

                    
	 	 	 
	 	
                      (3)

                    	
                      deliver
                        or cause to be delivered to the trustee the Notes properly
                        accepted,
                        together with an  officers’ certificate stating the aggregate
                        principal amount of Notes being purchased by
                        us.

                    

            

          

        

      

      

      The
        paying agent will promptly mail to
        each holder of Notes properly tendered the purchase price for the Notes,
        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 Notes 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 Notes 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 Notes properly tendered and not withdrawn under
        its
        offer.

      

      Section
        101 of the Indenture is hereby
        amended and supplemented by adding the following definitions:

      

      “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 Notes 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
        Notes 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).

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      
 

      “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 its 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 its Voting Stock or other Voting Stock into which its 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.

      

      “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 us.

      

      “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 Notes or fails to make a rating of the Notes publicly available
        for
        reasons outside of its 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.

      

      ARTICLE
        FOUR

      

      MISCELLANEOUS
        PROVISIONS

      

      Section
        4.1  Incorporation of
        Indenture.  All provisions of this Seventh Supplemental Indenture
        shall be deemed to be incorporated in, and made a part of, the Indenture;
        and
        the Indenture, as supplemented by this Seventh Supplemental Indenture, shall
        be
        read, taken and construed as one and the same instrument and shall be binding
        upon all the Holders of the Notes.

      

      Section
        4.2 
Counterparts.  This Seventh Supplemental Indenture may be executed
        in any number of counterparts, each of which so executed shall be deemed
        to be
        an original, but all such counterparts shall together constitute but one
        and the
        same instrument.

      

      Section
        4.3  Separability
        Clause.  In case any provision of this Seventh Supplemental Indenture
        shall be invalid, illegal or unenforceable, the validity,
        legality  and enforceability of the remaining provisions shall not in
        any way be affected or impaired thereby.

       

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      
 

      Section
        4.4  Successors and
        Assigns.  All covenants and agreements in this Seventh
        Supplemental Indenture by the Company and the Trustee shall bind their
        respective successors and assigns, whether so expressed or not.

      

      Section
        4.5  Benefits of Sixth
        Supplemental Indenture.  Nothing in this Seventh Supplemental
        Indenture, express or implied, shall give any person, other than the parties
        hereto and their successors hereunder and the Holders of the Notes, any benefit
        or any legal or equitable right, remedy or claim under this Seventh Supplemental
        Indenture. Except as expressly supplemented or amended as set forth in this
        Seventh Supplemental Indenture, the Indenture is hereby ratified and confirmed,
        and all the terms, provisions and conditions thereof shall be and continue
        in
        full force and effect. The Trustee accepts the trusts created by the Indenture,
        as amended and supplemented by this Seventh Supplemental Indenture, and agrees
        to perform the same upon the terms and conditions in the Indenture as amended
        and supplemented by this Seventh Supplemental Indenture.

      
 

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

       

      IN
        WITNESS WHEREOF, the undersigned,
        being duly authorized, have executed this Seventh Supplemental Indenture
        on
        behalf of the respective parties hereto as of the date first above
        written.

      

      

      
        
          
            	
                    CSX
                      CORPORATION

                     

                     

                  
	
                    By:

                  	 /s/
                    David A. Boor
	 	
                    Name:  David
                      A. Boor

                  
	 	
                    Title:   
                      Vice President – Tax and
                      Treasurer

                  

          

        

      

      

      

      
        
          
            	
                    THE
                      BANK OF NEW YORK, AS TRUSTEE

                     

                     

                  
	
                    By:

                  	 /s/
                    Michael A. Smith
	 	
                    Name: Michael
                      A.
                      Smith               

                  
	 	
                    Title:  
                      Vice President

                  

          

        

      

       

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      

      

      

       

      
 

      
        
          

        

      

      

      

      CSX
        CORPORATION

      

      AND

      

      THE
        BANK
        OF NEW YORK,

      Trustee

      

      
        

      

      

      SEVENTH
        SUPPLEMENTAL

      INDENTURE

      

      Dated
        as
        of April 25, 2007

      
        

        
          

        

         

      

      5.600%
        Notes due 2017

      6.150%
        Notes due 2037

      

      

      
        
          

        

      

       

       

       

       

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      TABLE
        OF CONTENTS

      

      

      Page

      ARTICLE
        ONE

      

      RELATION
        TO INDENTURE; DEFINITIONS

      

      
        
          
            
              	 	
                      Section
                        1.1

                    	
                      Relation
                        to Indenture.

                    	
                      2

                    
	 	
                      Section
                        1.2

                    	
                      Definitions.

                    	
                       2

                    

            

          

        

      

      

      ARTICLE
        TWO

      

      SCOPES
        OF
        APPLICABILITY

      

      
        
          
            	 	
                    Section
                      2.1

                  	
                    Applicability
                      of this Seventh Supplemental Indenture

                  	
                     2

                  
	 	
                    Section
                      2.2

                  	
                    Applicability
                      of Indenture

                  	
                     2

                  
	 	
                    Section
                      2.3

                  	
                    Seventh
                      Supplemental Indenture Shall Govern

                  	
                     2

                  

          

        

      

      

      ARTICLE
        THREE

      

      GENERAL
        TERMS AND CONDITIONS OF THE NOTES

      

      
        
          
            	 	
                    Section
                      3.1

                  	
                    Title
                      of the Securities.

                  	
                     2

                  
	 	
                    Section
                      3.2

                  	
                    Aggregate
                      Principal Amount.

                  	
                     2

                  
	 	
                    Section
                      3.3

                  	
                    Maturity
                      Date.

                  	
                     3

                  
	 	
                    Section
                      3.4

                  	
                    Ranking.

                  	
                     3

                  
	 	
                    Section
                      3.5

                  	
                    Further
                      Issues.

                  	
                     3

                  
	 	
                    Section
                      3.6

                  	
                    Interest.

                  	
                     3

                  
	 	
                    Section
                      3.7

                  	
                    Issuance
                      Price.

                  	
                     3

                  
	 	
                    Section
                      3.8

                  	
                    Global
                      Notes.

                  	
                     3

                  
	 	
                    Section
                      3.9

                  	
                    Exchange
                      of Global Notes.

                  	
                     4

                  
	 	
                    Section
                      3.10

                  	
                    Paying
                      Agent.

                  	
                     4

                  
	 	
                    Section
                      3.11

                  	
                    Authorized
                      Denominations.

                  	
                     4

                  
	 	
                    Section
                      3.12

                  	
                    Redemption.

                  	
                     4

                  
	 	
                    Section
                      3.13

                  	
                    Change
                      of Control Repurchase Event

                  	
                     4

                  

          

        

      

      

      ARTICLE
        FOUR

      

      MISCELLANEOUS
        PROVISIONS

      

      
        
          
            	 	
                    Section  4.1

                  	
                    Incorporation
                      of Indenture.

                  	
                     6

                  
	 	
                    Section
                      4.2

                  	
                    Counterparts.

                  	
                     6

                  
	 	
                    Section
                      4.3

                  	
                    Separability
                      Clause.

                  	
                     6

                  
	 	
                    Section
                      4.4

                  	
                    Successors
                      and Assigns.

                  	
                     7

                  
	 	
                    Section
                      4.5

                  	
                    Benefits
                      of Sixth Supplemental Indenture.

                  	
                     7Exhibit 10.1

    Exhibit 10.1

     

    
 

    FIRST
      AMENDMENT TO NOTE PURCHASE AGREEMENT

     

    This
      First Amendment (“First
      Amendment”),
      dated
      as of March 28, 2007 (the “Amendment
      Date”),
      is to
      the Note Purchase Agreement, dated July 21, 2006 (including the Annexes,
      Schedules and Exhibits thereto, the “Stillwater
      NPA”),
      between eMagin Corporation, a Delaware corporation with headquarters located
      at
      10500 N.E. 8th Street, Suite 1400, Bellevue, Washington 98004 (the “Company”),
      and
      Stillwater LLC, a Delaware limited liability company having its place of
      business at 15 East 62nd Street, New York, New York 10021 (“Stillwater”
or
      “Buyer”).

     

     

    W
      I T N E S S E T H :

     

    WHEREAS,
      the Company and Stillwater have entered into the Stillwater NPA; 

     

    WHEREAS,
      pursuant to Section 2(a)(ii) of the Stillwater NPA, Stillwater is irrevocably
      bound to purchase the Note and December Closing Date Warrant so long as the
      conditions to closing set forth in Section 7 of the Stillwater NPA have been
      satisfied by the Company; and

     

    WHEREAS,
      due to the Company’s failure to satisfy the closing condition set forth in
      Section 7(b) of the Stillwater NPA because of the Company’s inability to satisfy
      Sections 4(c) and 4(o) of the Stillwater NPA, the Company and Stillwater desire
      to amend the Stillwater NPA by this First Amendment.

     

    NOW,
      THEREFORE, in consideration of the mutual covenants herein contained and for
      other good and valuable consideration, the receipt and adequacy of which are
      hereby acknowledged, the Parties hereto hereby agree as follows:

     

     

    A. Definitions.
      All
      capitalized terms used herein without definition will have the same respective
      meanings as provided in the Stillwater NPA.

     

     

    B. Amendment.
      The
      Stillwater NPA is hereby amended as follows:

     

    1. Section
      1(c).
      The
      definition of “Closing Date” contained in Section 1(c) of the Stillwater
      NPA is hereby deleted in its entirety and replaced by the following new
      definition:

     

    “
      “Closing Date” means five (5) Business Days after the Amendment
      Date.”

     

    2. Section
      4(o).
      Section
      4(o) of the Stillwater NPA is hereby deleted in its entirety and replaced by
      the
      following new Section 4(o) of the Stillwater NPA:

     

    “(o) Conduct
      of Business; Regulatory Permits.
      Neither
      the Company nor any Subsidiary is in violation of any term of or in default
      under its Certificate of Incorporation, or its Bylaws. Neither the Company
      nor
      any Subsidiary is in violation of any judgment, decree or order or any statute,
      ordinance, rule or regulation applicable to the Company or any Subsidiary which
      violation could have a Material Adverse Effect, and neither the Company nor
      any
      Subsidiary will conduct its business in violation of any of the foregoing,
      except for possible violations which could not, individually or in the
      aggregate, reasonably be expected to have a Material Adverse Effect. Without
      limiting the generality of the foregoing and except as set forth on Schedule
      4(c), the Company is not in violation of any of the rules, regulations or
      requirements of the AMEX and has no knowledge of any facts or circumstances
      that
      would be likely to lead to delisting or suspension of the Common Stock by the
      AMEX in the future. Since December 31, 2005, (i) the Common Stock has been
      listed on the AMEX, (ii) trading in the Common Stock has not been suspended
      by
      the SEC or the AMEX and (iii) the Company has received no communication, written
      or oral, from the SEC or the AMEX regarding the suspension or delisting of
      the
      Common Stock from the AMEX. The Company and the Subsidiaries possess all
      certificates, authorizations and permits issued by the appropriate federal,
      state or foreign regulatory authorities necessary to conduct their respective
      businesses, except where the failure to possess such certificates,
      authorizations or permits could not reasonably be expected to have, individually
      or in the aggregate, a Material Adverse Effect, and neither the Company nor
      any
      Subsidiary has received any notice of proceedings relating to the revocation
      or
      modification of any such certificate, authorization or permit.

     

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    3. Section
      7(i).
      Section
      7(i) of the Stillwater NPA is hereby deleted in its entirety and replaced by
      the
      following new Section 7(i) of the Stillwater NPA:

     

    “(i) On
      the
      Closing Date, (i) trading in securities on the New York Stock Exchange, Inc.,
      the AMEX, Nasdaq, the Nasdaq Capital Market, the Over-The-Counter Bulletin
      Board, the Pink Sheets, LLC or any similar organization shall not have been
      suspended or materially limited, (ii) a general moratorium on commercial banking
      activities in the State of New York shall not have been declared by either
      federal or state authorities, and (iii) the Company has obtained waivers from
      all the noteholders of the Other Notes or has executed an additional Allonge
      with the Majority Holders to amend Section 3.2 of the Note and Other Notes
      to
      provide that the Company maintain Cash and Cash Equivalents Balances of at
      least
      equal to $200,000 from April 1, 2007 through and including
      May 15, 2007 and that subsequent to May 15, 2007 the Company
      maintain Cash and Cash Equivalents Balances of at least equal to
      $600,000.”

     

    4. New
      Schedule 4(c).
      New
      Schedule 4(c) of the Stillwater NPA, a copy of which is attached to and made
      a
      part of this First Amendment, is hereby added to the Stillwater
      NPA.

     

    5. Section
      1.1(b) of Annex I.
      The
      definition of “Conversion Price” contained in Section 1.1(b) of Annex I of the
      Stillwater NPA is hereby deleted in its entirety and replaced by the following
      new definition “
      “Conversion Price” means
      $0.35, subject to adjustment as provided in Section 6.3.” 

    
      
        
           

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

     

    6. Section
      1.1(b) of Annex I.
      Subsection (a) of the definition of “Repurchase Event” contained in Section
      1.1(b) of Annex I of the Stillwater NPA is hereby deleted in its entirety and
      replaced by the following new subsection:

     

    “(a) The
      Common Stock ceases to be traded on the AMEX and is not listed for trading
      on
      the Nasdaq, the Nasdaq Capital Market, the NYSE, the Over-The-Counter Bulletin
      Board, the Pink Sheets, LLC or any similar organization;”

     

    7. Section
      3.2 of Annex I.
      The
      first sentence of Section 3.2 of Annex I of the Stillwater NPA is hereby
      deleted in its entirety and replaced in its entirety by the following new
      sentence:

     

    “The
      Company shall at all times maintain Cash and Cash Equivalents Balances at least
      equal to $600,000; provided that the Company must maintain Cash and Cash
      Equivalent Balances of $200,000 from April 1, 2007 through and
      including May 15, 2007. Subsequent
      to May 15, 2007,
      the
      Company must maintain Cash and Cash Equivalents Balances of at least equal
      to
      $600,000.”
      

     

    8. Section
      4.1(j) of Annex I.
      Section
      4.1(j) of Annex I to the Stillwater NPA is hereby deleted in its entirety and
      replaced by the following new Section 4.1(j) of Annex I to the Stillwater
      NPA:

     

    “(j) Delisting
      of Common Stock.
      The
      Common Stock shall cease to be listed on any of Nasdaq Capital Market, Nasdaq,
      the NYSE, the AMEX, the Over-The-Counter Bulletin Board, the Pink Sheets, LLC
      or
      any similar organization;”

     

    9. Section
      1(c) of Annex II.
      The
      definition of “Purchase Price” contained in Section 1(c) of Annex II of the
      Stillwater NPA is hereby deleted in its entirety and replaced by the following
      new definition:

     

    “
      “Purchase Price” means $0.48.”

     

     

    C. Continuing
      Rights.
      Except
      as expressly provided in this First Amendment, the Stillwater NPA and all
      provisions thereof in effect as of the date hereof will continue in full force
      and effect without any modification or amendment, including, without limitation,
      the following rights:

     

    1. The
      Collateral Agent will have a first priority perfected security interest in
      the
      Collateral for the ratable benefit of the holders of the Other Notes and, when
      issued by the Company to the Buyer, this Note;

     

    2. The
      obligations of the Company under the Note shall rank in right of payment on
      parity with all the Other Notes;

     

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3. The
      Note
      is entitled to the benefits of the Security Agreements and the Lockbox
      Agreement; and

     

    4. The
      Conversion Shares and Warrant Shares have the registration rights set forth
      in
      Section 8 of the Stillwater NPA.

     

     

    D. Company
      Representation.
      In
      addition to the representations and warranties of the Company contained in
      the
      Transaction Documents, the Company represents and warrants that the below
      representations are true and correct as of the date hereof and shall be true
      and
      correct on the Closing Date as if given on and as of the Closing
      Date:

     

    1. No
      event
      has occurred that (1) would constitute an Event of Default in the Other
      Notes or which, with the giving of notice or the passage of time, or both,
      would
      constitute an Event of Default shall have occurred and be continuing or
      (2) would constitute a Repurchase Event in the Other Notes or which, with
      the giving of notice or the passage of time, or both, would constitute a
      Repurchase Event shall have occurred and be continuing. 

     

    2. The
      Company anticipates that as of the Closing Date and until May 15, 2007
      it will be able to maintain Cash and Cash Equivalents Balances of at least
      equal
      to $200,000.

     

    3. The
      Company has executed an additional Allonge with the Majority Holders to amend
      Section 3.2 of the Note and Other Notes to provide that the Company maintain
      Cash and Cash Equivalents Balances of at least equal to $200,000 from
      April 1, 2007 through and including May 15, 2007 and that
      subsequent to May 15, 2007 the Company maintain Cash and Cash Equivalents
      Balances of at least equal to $600,000.

     

     

    E. Miscellaneous.

     

    1. On
      and
      after the date hereof, each reference in the Stillwater NPA to “this Agreement”,
“hereof”, “herein”, “herewith”, “hereunder” and words of similar import will,
      unless otherwise stated, be construed to refer to the Stillwater NPA as amended
      hereby. No reference to this First Amendment need be made in any instrument
      or
      document at any time referring to the Stillwater NPA, a reference to the
      Stillwater NPA in any such instrument or document to be deemed to be a reference
      to the Stillwater NPA as amended hereby.

     

    2. This
      First Amendment may be executed in counterparts, each of which when so executed
      and delivered will constitute an original, and all of which together will
      constitute one and the same instrument. A telephone line facsimile transmission
      of this Stillwater NPA bearing a signature on behalf of a party hereto shall
      be
      legal and binding on such party.

     

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3. In
      the
      event of any conflict between this First Amendment and (i) the Stillwater
      NPA,(ii) the Note, or (iii) the Warrant, the terms of this First Amendment
      will
      control in all cases.

     

    4. This
      First Amendment will come into force immediately upon the Amendment
      Date.

     

    

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Parties have executed this First Amendment by their duly
      authorized representatives effective the date first written above.

     

     

     

    
      	
              EMAGIN
                CORPORATION

               

            	
              STILLWATER
                LLC

               

            
	
              By:Dr.
                K.C. Park

              
                

              

              Name:
                Dr. K.C. Park

              Title:
                Interim Chief Executive Officer and
                President

               

            	
              By:
                Mortimer D.A. Sackler 

              

              Name:
                Mortimer D.A. Sackler 

              Title:
                President

               

            

    

    

     

    Acknowledged
      and Consented to By:

     

    ALEXANDRA
      GLOBAL MASTER FUND LTD., 

     

    as
      Collateral Agent and holder of $3,000,000 of Other Notes

     

     

    By:  ALEXANDRA
      INVESTMENT MANAGEMENT, LLC,

    
      
 ALEXANDRA
      INVESTMENT MANAGEMENT, LLC,

    as
      Investment Manager

     

    

     

    By:
      Mikhail Filimonov

    

    Name:
      Mikhail Filimonov

    Title:
      President

    
 

     

    RAINBOW
      GATE CORPORATION,

     

    as
      holder
      of $700,000 of Other Notes

    

     

    By:
      Mortimer D.A. Sackler 

    
      
        

      

    

    Name:
      Mortimer D.A. Sackler 

    Title:
      Investment Manager

     

    

     

    GINOLA
      LIMITED,

     

    as
      holder
      of $800,000 of Other Notes

     

     

    By:
      /s/
      Steven A. Meiklejohn

    
      
        

      

    

    Name:
      Steven A. Meiklejohn

    Title:
      Director

     

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    Schedule
      4(c)

     

    Representations,
      Warranties, Covenants, Etc. of the Company

     

    1. On
      October 9, 2006, the Company received a notice letter from AMEX stating that
      the
      Company does not meet certain of the AMEX’s continued listing standards as set
      forth in Part 10 of the AMEX Company Guide (“AMEX Guide”) and that the Company
      has become subject to the continued listing evaluation and follow-up procedures
      and requirements of Section 1009 of the AMEX Guide. Additionally, pursuant
      to a
      review by AMEX of the Company’s 10-Q for the three and six months ended June 30,
      2006, AMEX determined that the Company is not in compliance with Sections
      1003(a)(ii) and 1003(a)(iii) of the AMEX Guide.

     

    2. On
      January 8, 2007, the Company received notice from the staff of the AMEX
      indicating that it intends to strike the Company’s common stock from listing on
      AMEX by filing a delisting application with the Securities and Exchange
      Commission. In its letter, AMEX stated that it has determined that the Company
      has failed to comply with certain continued listing standards in that it does
      not meet the exchange’s stockholders equity requirements as set forth above. In
      addition, the Company failed to pay certain listing fees. The Company intends
      to
      appeal AMEX’s determination by requesting a hearing in accordance with
      appropriate procedures as outlined by the AMEX Guide, and will request AMEX’s
      approval to continue trading during the appeal process. If unsuccessful on
      appeal, the Company intends to continue to trade on the Over-the-Counter
      Bulletin Board.

     

    3. On
      March
      1, 2007, the Company received notice from the AMEX indicating that the AMEX
      will
      initiate the delisting process with respect to the Company’s common stock and
      will suspend trading on March 12, 2007, in accordance with Part 12 of the
      Company Guide. The Company is taking the necessary steps to have its common
      stock traded on the Over-the-Counter Bulletin Board. 

     

    4. As
      disclosed in the Company’s filings with the SEC, effective March 12, 2007,
      the AMEX struck the Common Stock from listing on AMEX by filing a delisting
      application with the SEC. As of March 12, 2007, the Company is trading on the
      Over-the Counter Bulletin Board.

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