Document:

ex4_3.htm

    
      
        

      
Exhibit 4.3

    
       

      OcuSense,
Inc,

       

      2003

      Stock
Option Plan

       

      Index

      
        
          
            

          

      

       

      
        	
                 
      

              	
                1.

              	
                2003 Stock Option/Stock
      Issuance Plan;

              

      

       

      
        	
                 
      

              	
                2.

              	
                Notice
      of Grant of Stock Option;

              

      

       

      
        	
                 
      

              	
                3.

              	
                Notice
      of Grant of Stock Option (Non-Exempt
Employee);

              

      

       

      
        	
                 
      

              	
                4.

              	
                Stock
      Option Agreement;

              

      

       

      
        	
                 
      

              	
                5.

              	
                Addendum
      to Stock Option Agreement;

              

      

       

      
        	
                 
      

              	
                6.

              	
                Stock
      Purchase Agreement;

              

      

       

      
        	
                 
      

              	
                7.

              	
                Addendum
      to Stock Purchase Agreement;

              

      

       

      
        	
                 
      

              	
                8.

              	
                Stock
      Issuance Agreement

              

      

       

      
        	
                 
      

              	
                9

              	
                Addendum
      to Stock Issuance Agreement

              

      

      
        
           

        

        
          - 1
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      OCUSENSE,
INC.

      2003
STOCK OPTION/STOCK ISSUANCE PLAN

       

      ARTICLE
ONE

       

      GENERAL
PROVISIONS

       

      
        	
                 
      

              	
                I.

              	
                PURPOSE OF THE
      PLAN

              

      

       

      This 2003
Stock Option/Stock Issuance Plan is intended to promote the interests of
OcuSense, Inc., a Delaware corporation, by providing eligible persons in the
Corporation's employ or service with the opportunity to acquire a proprietary
interest, or otherwise increase their proprietary interest, in the Corporation
as an incentive for them to continue in such employ or service.

       

      Capitalized
terms herein shall have the meanings assigned to such terms in the attached
Appendix.

       

      
        	
                 
      

              	
                II.

              	
                STRUCTURE OF THE
      PLAN

              

      

       

      A.           
The Plan shall be divided into two (2) separate equity programs:

       

      (i)    
the Option Grant Program under which eligible persons may, at the discretion of
the Plan Administrator, be granted options to purchase shares of Common Stock,
and

       

      (ii)    the
Stock Issuance Program under which eligible persons may, at the discretion of
the Plan Administrator, be issued shares of Common Stock directly, either
through the immediate purchase of such shares or as a bonus for services
rendered the Corporation (or any Parent or Subsidiary).

       

      B.           
The provisions of Articles One and Four shall apply to both equity programs
under the Plan and shall accordingly govern the interests of all persons under
the Plan.

       

      
        	
                 
      

              	
                III.

              	
                ADMINISTRATION OF THE
      PLAN

              

      

       

      A.           
The Plan shall be administered by the Board.  However, any or all
administrative functions otherwise exercisable by the Board may be delegated to
the Committee.  Members of the Committee shall serve for such period
of time as the Board may determine and shall be subject to removal by the Board
at any time.  The Board may also at any time terminate the functions
of the Committee and reassume all powers and authority previously delegated to
the Committee.

      
        
           

        

        
          - 2
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      B.           
The Plan Administrator shall have full power and authority (subject to the
provisions of the Plan) to establish such rules and regulations as it may deem
appropriate for proper administration of the Plan and to make such
determinations under, and issue such interpretations of, the Plan and any
outstanding options or stock issuances thereunder as it may deem necessary or
advisable.  Decisions of the Plan Administrator shall be final and
binding on all parties who have an interest in the Plan or any option or stock
issuance thereunder.

       

      IV.           ELIGIBILITY

       

      A.           
The persons eligible to participate in the Plan are as follows:

       

      (i)    
Employees,

       

      (ii)   
non-employee members of the Board or the non-employee members of the board of
directors of any Parent or Subsidiary, and

       

      (iii)  
consultants and other independent advisors who provide services to the
Corporation (or any Parent or Subsidiary).

       

      B.           
The Plan Administrator shall have full authority to determine, (i) with
respect to the grants made under the Option Grant Program, which eligible
persons are to receive the option grants, the time or times when those grants
are to be made, the number of shares to be covered by each such grant, the
status of the granted option as either an Incentive Option or a Non-Statutory
Option, the time or times when each option is to become exercisable, the vesting
schedule (if any) applicable to the option shares and the maximum term for which
the option is to remain outstanding, and (ii) with respect to stock
issuances made under the Stock Issuance Program, which eligible persons are to
receive such stock issuances, the time or times when those issuances are to be
made, the number of shares to be issued to each Participant, the vesting
schedule (if any) applicable to the issued shares and the consideration to be
paid by the Participant for such shares.

       

      C.           
The Plan Administrator shall have the absolute discretion either to grant
options in accordance with the Option Grant Program or to effect stock issuances
in accordance with the Stock Issuance Program.

       

      V.           STOCK SUBJECT TO THE
PLAN

       

      A.           
The stock issuable under the Plan shall be shares of authorized but unissued or
reacquired Common Stock.  The maximum number of shares of Common Stock
which may be issued over the term of the Plan shall not exceed 130,000
shares.

       

      B.           
Shares of Common Stock subject to outstanding options shall be available for
subsequent issuance under the Plan to the extent (i) the options expire or
terminate for any reason prior to exercise in full or (ii) the options are
cancelled in accordance with the cancellation-regrant provisions of
Article Two.  Unvested shares issued under the Plan and
subsequently repurchased by the Corporation, at a price per share not greater
than the option exercise or direct issue price paid per share, pursuant to the
Corporation's repurchase rights under the Plan shall be added back to the number
of shares of Common Stock reserved for issuance under the Plan and shall
accordingly be available for reissuance through one or more subsequent option
grants or direct stock issuances under the Plan.

      
        
           

        

        
          - 3
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       C.           
Should any change be made to the Common Stock by reason of any stock split,
stock dividend, recapitalization, combination of shares, exchange of shares or
other change affecting the outstanding Common Stock as a class without the
Corporation's receipt of consideration, appropriate adjustments shall be made to
(i) the maximum number and/or class of securities issuable under the Plan
and (ii) the number and/or class of securities and the exercise price per
share in effect under each outstanding option in order to prevent the dilution
or enlargement of benefits thereunder. The adjustments determined by the Plan
Administrator shall be final, binding and conclusive.  In no event
shall any such adjustments be made in connection with the conversion of one or
more outstanding shares of the Corporation's preferred stock into shares of
Common Stock.

      
        
           

        

        
          - 4
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      ARTICLE
TWO

       

      OPTION GRANT
PROGRAM

       

      
        	
                 
      

              	
                I.

              	
                OPTION
    TERMS

              

      

       

      Each
option shall be evidenced by one or more documents in the form approved by the
Plan Administrator; provided, however, that each such document shall comply with
the terms specified below.  Each document evidencing an Incentive
Option shall, in addition, be subject to the provisions of the Plan applicable
to such options.

       

      A.           
Exercise
Price.

       

      1.           The
exercise price per share shall be fixed by the Plan Administrator in accordance
with the following provisions:

       

       
(i)       The exercise price per share shall not
be less than eighty-five percent (85%) of the Fair Market Value per share of
Common Stock on the option grant date.

       

        (ii)     
If the person to whom the option is granted is a 10% Shareholder, then the
exercise price per share shall not be less than one hundred ten percent (110%)
of the Fair Market Value per share of Common Stock on the option grant
date.

       

      2.           The
exercise price shall become immediately due upon exercise of the option and
shall, subject to the provisions of Section I of Article Four and the
documents evidencing the option, be payable in cash or check made payable to the
Corporation.  Should the Common Stock be registered under
Section 12 of the 1934 Act at the time the option is exercised, then the
exercise price may also be paid as follows:

       

       
(i)       in shares of Common Stock held for the
requisite period necessary to avoid a charge to the Corporation's earnings for
financial reporting purposes and valued at Fair Market Value on the Exercise
Date, or

       

       
(ii)      to the extent the option is exercised for
vested shares, through a special sale and remittance procedure pursuant to which
the Optionee shall concurrently provide irrevocable instructions (A) to a
Corporation-designated brokerage firm to effect the immediate sale of the
purchased shares and remit to the Corporation, out of the sale proceeds
available on the settlement date, sufficient funds to cover the aggregate
exercise price payable for the purchased shares plus all applicable Federal,
state and local income and employment taxes required to be withheld by the
Corporation by reason of such exercise and (B) to the Corporation to
deliver the certificates for the purchased shares directly to such brokerage
firm in order to complete the sale.

       

      Except to
the extent such sale and remittance procedure is utilized, payment of the
exercise price for the purchased shares must be made on the Exercise
Date.

      
        
           

        

        
          - 5
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      B.            
Exercise
and Term of Options.  Each option shall be exercisable at such
time or times, during such period and for such number of shares as shall be
determined by the Plan Administrator and set forth in the documents evidencing
the option grant.  However, no option shall have a term in excess
often (10) years measured from the option grant date.

       

      C.            
Effect of
Termination of Service.

       

      1.           The
following provisions shall govern the exercise of any options held by the
Optionee at the time of cessation of Service or death:

       

       
(i)      Should the Optionee cease to remain in
Service for any reason other than death, Disability or Misconduct, then the
Optionee shall have a period of three (3) months following the date of such
cessation of Service during which to exercise each outstanding option held by
such Optionee.

       

       
(ii)      Should Optionee's Service terminate by reason
of Disability, then the Optionee shall have a period of twelve (12) months
following the date of such cessation of Service during which to exercise each
outstanding option held by such Optionee.

       

       
(iii)     If the Optionee dies while holding an outstanding
option, then the personal representative of his or her estate or the person or
persons to whom the option is transferred pursuant to the Optionee's will or the
laws of inheritance or the Optionee's designated beneficiary or beneficiaries of
that option shall have a twelve (12)-month period following the date of the
Optionee's death to exercise such option.  Under no circumstances,
however, shall any such option be exercisable after the specified expiration of
the option term.

       

       
(iv)    During the applicable post-Service exercise period, the
option may not be exercised in the aggregate for more than the number of vested
shares for which the option is exercisable on the date of the Optionee's
cessation of Service.  Upon the expiration of the applicable exercise
period or (if earlier) upon the expiration of the option term, the option shall
terminate and cease to be outstanding for any vested shares for which the option
has not been exercised.  However, the option shall, immediately upon
the Optionee's cessation of Service, terminate and cease to be outstanding with
respect to any and all option shares for which the option is not otherwise at
the time exercisable or in which the Optionee is not otherwise at that time
vested.

       

      2.           Should
Optionee's Service be terminated for Misconduct or should Optionee otherwise
engage in Misconduct while holding one or more outstanding options under the
Plan, then all those options shall terminate immediately and cease to remain
outstanding.  The Plan Administrator shall have the discretion,
exercisable either at the time an option is granted or at any time while the
option remains outstanding, to:

       

       
(i)      extend the period of time for which the
option is to remain exercisable following Optionee's cessation of Service or
death from the limited period otherwise in effect for that option to such
greater period of time as the Plan Administrator shall deem appropriate, but in
no event beyond the expiration of the option term, and/or

      
        
           

        

        
          - 6
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(ii)     permit the option to be exercised, during the
applicable post-Service exercise period, not only with respect to the number of
vested shares of Common Stock for which such option is exercisable at the time
of the Optionee's cessation of Service but also with respect to one or more
additional installments in which the Optionee would have vested under the option
had the Optionee continued in Service.

       

      D.            Shareholder
Rights.  The holder of an option shall have no shareholder
rights with respect to the shares subject to the option until such person shall
have exercised the option, paid the exercise price and become the holder of
record of the purchased shares.

       

      E.            
Unvested
Shares.  The Plan Administrator shall have the discretion to
grant options which are exercisable for unvested shares of Common
Stock.  Should the Optionee cease Service while holding such unvested
shares, the Corporation shall have the right to repurchase any or all of those
unvested shares at a price per share equal to the lower of (i) the exercise
price paid per share or (ii) the Fair Market Value per share of Common
Stock at the time of Optionee's cessation of Service.  The terms upon
which such repurchase right shall be exercisable (including the period and
procedure for exercise and the appropriate vesting schedule for the purchased
shares) shall be established by the Plan Administrator and set forth in the
document evidencing such repurchase right.  The Plan Administrator may
not impose a vesting schedule upon any option grant or the shares of Common
Stock subject to that option which is more restrictive than twenty percent (20%)
per year vesting, with the initial vesting to occur not later than one (1) year
after the option grant date.  However, such limitation shall not be
applicable to any option grants made to individuals who are officers of the
Corporation, non-employee Board members or independent consultants.

       

      F.            
First
Refusal Rights.  Until such time as the Common Stock is first
registered under Section 12 of the 1934 Act, the Corporation shall have the
right of first refusal with respect to any proposed disposition by the Optionee
(or any successor in interest) of any shares of Common Stock issued under the
Plan.  Such right of first refusal shall be exercisable in accordance
with the terms established by the Plan Administrator and set forth in the
document evidencing such right.

       

      G.            
Limited
Transferability of Options.  An Incentive Stock Option shall be
exercisable only by the Optionee during his or her lifetime and shall not be
assignable or transferable other than by will or by the laws of inheritance
following the Optionee's death.  A Non-Statutory Option may be
assigned in whole or in part during the Optionee's lifetime to one or more
members of the Optionee's family or to a trust established exclusively for one
or more such family members or to Optionee's former spouse, to the extent such
assignment is in connection with the Optionee's estate plan or pursuant to a
domestic relations order.  The assigned portion may only be exercised
by the person or persons who acquire a proprietary interest in the Non-Statutory
Option pursuant to the assignment.  The terms applicable to the
assigned portion shall be the same as those in effect for the option immediately
prior to such assignment and shall be set forth in such documents issued to the
assignee as the Plan Administrator may deem
appropriate.  Notwithstanding the foregoing, the Optionee may also
designate one or more persons as the beneficiary or beneficiaries of his or her
outstanding options under the Plan, and those options shall, in accordance with
such designation, automatically be transferred to such beneficiary or
beneficiaries upon the Optionee's death while holding those
options.  Such beneficiary or beneficiaries shall take the transferred
options subject to all the terms and conditions of the applicable agreement
evidencing each such transferred option, including (without limitation) the
limited time period during which the option may be exercised following the
Optionee's death.

      
        
           

        

        
          - 7
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      H.            Withholding.  The
Corporation's obligation to deliver shares of Common Stock upon the exercise of
any options granted under the Plan shall be subject to the satisfaction of all
applicable Federal, state and local income and employment tax withholding
requirements.

       

      
        	
                 
      

              	
                II.

              	
                INCENTIVE
      OPTIONS

              

      

       

      The terms
specified below shall be applicable to all Incentive Options.  Except
as modified by the provisions of this Section n, all the provisions of the
Plan shall be applicable to Incentive Options.  Options which are
specifically designated as Non-Statutory Options shall not be subject to the
terms of this Section II.

       

      A.           
Eligibility.  Incentive
Options may only be granted to Employees.

       

      B.            Exercise
Price.  The exercise price per share shall not be less than one
hundred percent (100%) of the Fair Market Value per share of Common Stock on the
option grant date.

       

      C.           
Dollar
Limitation.  The aggregate Fair Market Value of the shares of
Common Stock (determined as of the respective date or dates of grant) for which
one or more options granted to any Employee under the Plan (or any other option
plan of the Corporation or any Parent or Subsidiary) may for the first time
become exercisable as Incentive Options during any one (1) calendar year shall
not exceed the sum of One Hundred Thousand Dollars ($100,000).  To the
extent the Employee holds two (2) or more such options which become exercisable
for the first time in the same calendar year, the foregoing limitation on the
exercisability of such options as Incentive Options shall be applied on the
basis of the order in which such options are granted.

       

      D.           
10%
Shareholder.  If any Employee to whom an Incentive Option is
granted is a 10% Shareholder, then the option term shall not exceed five (5)
years measured from the option grant date.

       

      
        	
                 
      

              	
                III.

              	
                CHANGE IN
      CONTROL

              

      

       

      A.           
The shares subject to each option outstanding under the Plan at the time of a
Change in Control shall automatically vest in full so that each such option
shall, immediately prior to the effective date of the Change in Control, become
exercisable for all of the shares of Common Stock at the time subject to that
option and may be exercised for any or all of those shares as fully-vested
shares of Common Stock.  However, the shares subject to an outstanding
option shall not vest on
such an accelerated basis if and to the extent: (i) such option is assumed
by the successor corporation (or parent thereof) or otherwise continued in
full force and effect pursuant to the terms of the Change in Control transaction
and any repurchase rights of the Corporation with respect to the unvested option
shares are concurrently assigned to such successor corporation (or parent
thereof) or otherwise continued in effect or (ii) such option is to be
replaced with a cash incentive program of the Corporation or any successor
corporation which preserves the spread existing on the unvested option shares at
the time of the Change in Control and provides for subsequent payout of that
spread in accordance with the same vesting schedule applicable to those unvested
option shares or (iii) the acceleration of such option is subject to other
limitations imposed by the Plan Administrator at the time of the option
grant.

      
        
           

        

        
          - 8
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      B.           
All outstanding repurchase rights shall also terminate automatically, and the
shares of Common Stock subject to those terminated rights shall immediately vest
in full, in the event of any Change in Control, except to the extent:
(i) those repurchase rights are assigned to the successor corporation (or
parent thereof) or otherwise continued in full force and effect pursuant to
the terms of the Change in Control transaction or (ii) such accelerated
vesting is precluded by other limitations imposed by the Plan Administrator at
the time the repurchase right is issued.

       

      C.           
 Immediately following the consummation of the Change in Control, all
outstanding options shall terminate and cease to be outstanding, except to the
extent assumed by the successor corporation (or parent thereof) or
otherwise continued in effect pursuant to the terms of the Change in Control
transaction.

       

      D.            
Each option which is assumed in connection with a Change in Control or otherwise
continued in effect shall be appropriately adjusted, immediately after such
Change in Control, to apply to the number and class of securities which would
have been issuable to the Optionee in consummation of such Change in Control,
had the option been exercised immediately prior to such Change in
Control.  Appropriate adjustments shall also be made to (i) the
number and class of securities available for issuance under the Plan following
the consummation of such Change in Control and (ii) the exercise price
payable per share under each outstanding option, provided the
aggregate exercise price payable for such securities shall remain the
same.  To the extent the actual holders of the Corporation's
outstanding Common Stock receive cash consideration for their Common Stock in
consummation of the Change in Control, the successor corporation may, in
connection with the assumption of the outstanding options under this Plan,
substitute one or more shares of its own common stock with a fair market value
equivalent to the cash consideration paid per share of Common Stock in such
Change in Control.

       

      E.           
 The Plan Administrator shall have the discretion, exercisable either at
the time the option is granted or at any time while the option remains
outstanding, to structure one or more options so that those options shall
automatically accelerate and vest in full (and any repurchase rights of the
Corporation with respect to the unvested shares subject to those options shall
immediately terminate) upon the occurrence of a Change in Control, whether
or not those options are to be assumed in the Change in Control or otherwise
continued in effect.

       

      F.           
 The Plan Administrator shall also have full power and authority,
exercisable either at the time the option is granted or at any time while the
option remains outstanding, to structure such option so that the shares subject
to that option will automatically vest on an accelerated basis should the
Optionee's Service terminate by reason of an Involuntary Termination within a
designated period (not to exceed eighteen (18) months) following the effective
date of any Change in Control in which the option is assumed or otherwise
continued in effect and the repurchase rights applicable to those shares do not
otherwise terminate. Any option so accelerated shall remain exercisable for the
fully-vested option shares until the expiration or sooner termination of the
option term.  In addition, the Plan Administrator may provide that one
or more of the Corporation's outstanding repurchase rights with respect to
shares held by the Optionee at the time of such Involuntary Termination shall
immediately terminate on an accelerated basis, and the shares subject to those
terminated rights shall accordingly vest at that time.

      
        
           

        

        
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      G.            
The portion of any Incentive Option accelerated in connection with a Change in
Control shall remain exercisable as an Incentive Option only to the extent the
applicable One Hundred Thousand Dollar ($100,000) limitation is not
exceeded.  To the extent such dollar limitation is exceeded, the
accelerated portion of such option shall be exercisable as a Non-Statutory
Option under the Federal tax laws.

       

      H.           
 The grant of options under the Plan shall in no way affect the right of
the Corporation to adjust, reclassify, reorganize or otherwise change its
capital or business structure or to merge, consolidate, dissolve, liquidate or
sell or transfer all or any part of its business or assets.

       

      
        	
                 
      

              	
                IV.

              	
                CANCELLATION AND REGRANT OF
      OPTIONS

              

      

       

      The Plan
Administrator shall have the authority to effect, at any time and from time to
time, with the consent of the affected option holders, the cancellation of any
or all outstanding options under the Plan and to grant in substitution therefor
new options covering the same or different number of shares of Common Stock but
with an exercise price per share based on the Fair Market Value per share of
Common Stock on the new option grant date.

      
        
           

        

        
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      ARTICLE
THREE

       

      STOCK ISSUANCE
PROGRAM

       

      
        	
                 
      

              	
                I.

              	
                STOCK ISSUANCE
      TERMS

              

      

       

      Shares of
Common Stock may be issued under the Stock Issuance Program through direct and
immediate issuances without any intervening option grants.  Each such
stock issuance shall be evidenced by a Stock Issuance Agreement which complies
with the terms specified below.

       

      
        	
                 
      

              	
                A.

              	
                Purchase
      Price.

              

      

       

      1.           The
purchase price per share shall be fixed by the Plan Administrator but shall not
be less than eighty-five percent (85%) of the Fair Market Value per share of
Common Stock on the issue date.  However, the purchase price per share
of Common Stock issued to a 10% Shareholder shall not be less than one hundred
percent (100%) of such Fair Market Value.

       

      2.           Subject
to the provisions of Section I of Article Four, shares of Common Stock
may be issued under the Stock Issuance Program for any of the following items of
consideration which the Plan Administrator may deem appropriate in each
individual instance:

       

       
(i)       cash or check made payable to the
Corporation, or

       

       
(ii)      past services rendered to the Corporation (or
any Parent or Subsidiary).

       

      
        	
                 
      

              	
                B.

              	
                Vesting
      Provisions.

              

      

       

      1.           Shares
of Common Stock issued under the Stock Issuance Program may, in the discretion
of the Plan Administrator, be fully and immediately vested upon issuance or may
vest in one or more installments over the Participant's period of Service or
upon attainment of specified performance objectives.  However, the
Plan Administrator may not impose a vesting schedule upon any stock issuance
effected under the Stock Issuance Program which is more restrictive than twenty
percent (20%) per year vesting, with initial vesting to occur not later than one
(1) year after the issuance date.  Such limitation shall not apply to
any Common Stock issuances made to the officers of the Corporation, non-employee
Board members or independent consultants.

       

      2.           Any
new, substituted or additional securities or other property (including money
paid other than as a regular cash dividend) which the Participant may have
the right to receive with respect to the Participant's unvested shares of Common
Stock by reason of any stock dividend, stock split, recapitalization,
combination of shares, exchange of shares or other change affecting the
outstanding Common Stock as a class without the Corporation's receipt of
consideration shall be issued subject to (i) the same vesting requirements
applicable to the Participant's unvested shares of Common Stock and
(ii) such escrow arrangements as the Plan Administrator shall deem
appropriate.

      
        
           

        

        
          - 11
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      3.           The
Participant shall have full shareholder rights with respect to any shares of
Common Stock issued to the Participant under the Stock Issuance Program, whether
or not the Participant's interest in those shares is
vested.  Accordingly, the Participant shall have the right to vote
such shares and to receive any regular cash dividends paid on such
shares.

       

      4.           Should
the Participant cease to remain in Service while holding one or more unvested
shares of Common Stock issued under the Stock Issuance Program or should the
performance objectives not be attained with respect to one or more such unvested
shares of Common Stock, then those shares shall be immediately surrendered to
the Corporation for cancellation, and the Participant shall have no further
stockholder rights with respect to those shares.  To the extent the
surrendered shares were previously issued to the Participant for consideration
paid in cash or cash equivalent (including the Participant's purchase-money
indebtedness), the Corporation shall repay to the Participant the lower of (i) the cash
consideration paid for the surrendered shares or (ii) the Fair Market Value
of those shares at the time of Participant's cessation of Service and shall
cancel the unpaid principal balance of any outstanding purchase-money note of
the Participant attributable to such surrendered shares by the applicable clause
(i) or (ii) amount.

       

      5.           The
Plan Administrator may in its discretion waive the surrender and cancellation of
one or more unvested shares of Common Stock (or other assets attributable
thereto) which would otherwise occur upon the non-completion of the vesting
schedule applicable to such shares.  Such waiver shall result in the
immediate vesting of the Participant's interest in the shares of Common Stock as
to which the waiver applies.  Such waiver may be effected at any time,
whether before or after the Participant's cessation of Service or the attainment
or non-attainment of the applicable performance objectives.

       

      C.            
First
Refusal Rights.  Until such time as the Common Stock is first
registered under Section 12 of the 1934 Act, the Corporation shall have the
right of first refusal with respect to any proposed disposition by the
Participant (or any successor in interest) of any shares of Common Stock issued
under the Stock Issuance Program.  Such right of first refusal shall
be exercisable in accordance with the terms established by the Plan
Administrator and set forth in the document evidencing such right.

       

      
        	
                 
      

              	
                II.

              	
                CHANGE IN
      CONTROL

              

      

       

      A.           
Upon the occurrence of a Change in Control, all outstanding repurchase rights
under the Stock Issuance Program shall terminate automatically, and the shares
of Common Stock subject to those terminated rights shall immediately vest in
full, except to the extent: (i) those repurchase rights are assigned to the
successor corporation (or parent thereof) or otherwise continued in full
force and effect pursuant to the terms of the Change in Control transaction or
(ii) such accelerated vesting is precluded by other limitations imposed by
the Plan Administrator at the time the repurchase right is
issued.

      
        
           

        

        
          - 12
-

          
            

          

        

        
           

        

      

       

      B.           
The Plan Administrator shall have the discretionary authority, exercisable
either at the time the unvested shares are issued or any time while the
Corporation's repurchase rights with respect to those shares remain outstanding,
to provide that those rights shall automatically terminate on an accelerated
basis, and the shares of Common Stock subject to those terminated rights shall
immediately vest, in the event the Participant's Service should subsequently
terminate by reason of an Involuntary Termination within a designated period
(not to exceed eighteen (18) months) following the effective date of any Change
in Control in which those repurchase rights are assigned to the successor
corporation (or parent thereof) or otherwise continued in full force and
effect.

       

      
        	
                 
      

              	
                III.

              	
                SHARE
      ESCROW/LEGENDS

              

      

       

      Unvested
shares may, in the Plan Administrator's discretion, be held in escrow by the
Corporation until the Participant's interest in such shares vests or may be
issued directly to the Participant with restrictive legends on the certificates
evidencing those unvested shares.

      
        
           

        

        
          - 13
-

          
            

          

        

        
           

        

      

       

      ARTICLE
FOUR

       

      MISCELLANEOUS

       

      
        	
                 
      

              	
                I.

              	
                FINANCING

              

      

       

      The Plan
Administrator may permit any Optionee or Participant to pay the option exercise
price under the Option Grant Program or the purchase price for shares issued
under the Stock Issuance Program by delivering a full-recourse promissory note
payable in one or more installments which bears interest at a market rate and is
secured by the purchased shares.  However, any promissory note
delivered by a consultant must be secured by collateral in addition to the
purchased shares of Common Stock.  In no event may the maximum credit
available to the Optionee or Participant exceed the sum of (i) the
aggregate option exercise price or purchase price payable for the purchased
shares plus (ii) any applicable income and employment tax liability
incurred by the Optionee or the Participant in connection with the option
exercise or share purchase.

       

      
        	
                 
      

              	
                II.

              	
                EFFECTIVE DATE AND TERM OF
      PLAN

              

      

       

      A.           
The Plan became effective upon its adoption by the Board on January 8,
2003, but no option granted under the Plan may be exercised, and no shares shall
be issued under the Plan, until the Plan is approved by the Corporation's
shareholders.  If such shareholder approval is not obtained within
twelve (12) months after the date of the Board's adoption of the Plan, then all
options previously granted under the Plan shall terminate and cease to be
outstanding, and no further options shall be granted and no shares shall be
issued under the Plan.  Subject to such limitation, the Plan
Administrator may grant options and issue shares under the Plan at any time
after the effective date of the Plan and before the date fixed herein for
termination of the Plan.

       

      B.           
The Plan shall terminate upon the earliest of
(i) January 7, 2013, (ii) the date on which all shares available
for issuance under the Plan shall have been issued as vested shares or
(iii) the termination of all outstanding options in connection with a
Change in Control.  All options and unvested stock issuances
outstanding at the time of a clause (i) termination event shall continue to
have full force and effect in accordance with the provisions of the documents
evidencing those options or issuances.

       

      
        	
                 
      

              	
                III.

              	
                AMENDMENT OF THE
      PLAN

              

      

       

      A.           
The Board shall have complete and exclusive power and authority to amend or
modify the Plan in any or all respects.  However, no such amendment or
modification shall adversely affect the rights and obligations with respect to
options or unvested stock issuances at the time outstanding under the Plan
unless the Optionee or the Participant consents to such amendment or
modification.  In addition, certain amendments may require shareholder
approval pursuant to applicable laws and regulations.

      
        
           

        

        
          - 14
-

          
            

          

        

        
           

        

      

       

      B.           
 Options may be granted under the Option Grant Program and shares may be
issued under the Stock Issuance Program which are in each instance in excess of
the number of shares of Common Stock then available for issuance under the Plan,
provided any excess shares actually issued under those programs shall be held in
escrow until there is obtained stockholder approval of an amendment sufficiently
increasing the number of shares of Common Stock available for issuance under the
Plan.  If such stockholder approval is not obtained within twelve (12)
months after the date the first such excess grants or issuances are made, then
(i) any unexercised options granted on the basis of such excess shares
shall terminate and cease to be outstanding and (ii) the Corporation shall
promptly refund to the Optionees and the Participants the exercise or purchase
price paid for any excess shares issued under the Plan and held in escrow,
together with interest (at the applicable Short Term Federal Rate) for the
period the shares were held in escrow, and such shares shall thereupon be
automatically cancelled and cease to be outstanding.

       

      
        	
                 
      

              	
                IV.

              	
                USE OF
      PROCEEDS

              

      

       

      Any cash
proceeds received by the Corporation from the sale of shares of Common Stock
under the Plan shall be used for general corporate purposes.

       

      
        	
                 
      

              	
                V.

              	
                WITHHOLDING

              

      

       

      The
Corporation's obligation to deliver shares of Common Stock upon the exercise of
any options granted under the Plan or upon the issuance or vesting of any shares
issued under the Plan shall be subject to the satisfaction of all applicable
income and employment tax withholding requirements.

       

      
        	
                 
      

              	
                VI.

              	
                REGULATORY
      APPROVALS

              

      

       

      The
implementation of the Plan, the granting of any options under the Plan and the
issuance of any shares of Common Stock (i) upon the exercise of any option
or (ii) under the Stock Issuance Program shall be subject to the
Corporation's procurement of all approvals and permits required by regulatory
authorities having jurisdiction over the Plan, the options granted under it and
the shares of Common Stock issued pursuant to it.

       

      
        	
                 
      

              	
                VII.

              	
                NO EMPLOYMENT OR SERVICE
      RIGHTS

              

      

       

      Nothing
in the Plan shall confer upon the Optionee or the Participant any right to
continue in Service for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Corporation (or any Parent or
Subsidiary employing or retaining such person) or of the Optionee or the
Participant, which rights are hereby expressly reserved by each, to terminate
such person's Service at any time for any reason, with or without
cause.

       

      
        	
                 
      

              	
                VIII.

              	
                FINANCIAL
      REPORTS

              

      

       

      The
Corporation shall deliver a balance sheet and an income statement at least
annually to each individual holding an outstanding option under the Plan, unless
such individual is a key Employee whose duties in connection with the
Corporation (or any Parent or Subsidiary) assure such individual access to
equivalent information.

      
        
           

        

        
          - 15
-

          
            

          

        

        
           

        

      

       

      APPENDIX

       

      The
following definitions shall be in effect under the Plan:

       

      A.           
Board
shall mean the Corporation's Board of Directors.

       

      B.            
Change in
Control shall mean a change in ownership or control of the Corporation
effected through any of the following transactions:

       

       (i)     
a merger, consolidation or other reorganization approved by the Corporation's
stockholders, unless securities representing more than fifty percent (50%) of
the total combined voting power of the voting securities of the successor
corporation are immediately thereafter beneficially owned, directly or
indirectly and in substantially the same proportion, by the persons who
beneficially owned the Corporation's outstanding voting securities immediately
prior to such transaction, or

       

       (ii)     a
stockholder-approved sale, transfer or other disposition of all or substantially
all of the Corporation's assets in complete liquidation or dissolution of the
Corporation, or

       

       (iii)   
the acquisition, directly or indirectly by any person or related group of
persons (other man the Corporation or a person that directly or indirectly
controls, is controlled by, or is under common control with, the Corporation),
of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act)
of securities possessing more than fifty percent (50%) of the total combined
voting power of the Corporation's outstanding securities pursuant to a tender or
exchange offer made directly to the Corporation's stockholders.

       

      In no
event shall any public offering of the Corporation's securities be deemed to
constitute a Change in Control.

       

      A.           
Code
shall mean the Internal Revenue Code of 1986, as amended.

       

      B.            Committee
shall mean a committee of two (2) or more Board members appointed by the Board
to exercise one or more administrative functions under the Plan.

       

      C.            
Common
Stock shall mean the Corporation's common stock.

       

      D.            
Corporation
shall mean OcuSense, Inc., a Delaware corporation, and any successor corporation
to all or substantially all of the assets or voting stock of OcuSense, Inc.
which shall by appropriate action adopt the Plan.

       

      E.            
Disability
shall mean the inability of the Optionee or the Participant to engage in any
substantial gainful activity by reason of any medically determinable physical or
mental impairment and shall be determined by the Plan Administrator on the basis
of such medical evidence as the Plan Administrator deems warranted under the
circumstances.

      
        
           

        

        
          - 1
-

          
            

          

        

        
           

        

      

       

      F.            
Employee
shall mean an individual who is in the employ of the Corporation (or any Parent
or Subsidiary), subject to the control and direction of the employer entity as
to both the work to be performed and the manner and method of
performance.

       

      G.            
Exercise
Date shall mean the date on which the Corporation shall have received
written notice of the option exercise.

       

      H.            
Fair
Market Value per share of Common Stock on any relevant date shall be
determined in accordance with the following provisions:

       

       (i)      If
the Common Stock is at the time traded on the Nasdaq National Market, then the
Fair Market Value shall be the closing selling price per share of Common Stock
on the date in question, as such price is reported by the National Association
of Securities Dealers on the Nasdaq National Market and published in The Wall Street
Journal.  If there is no closing selling price for the Common
Stock on the date in question, then the Fair Market Value shall be the closing
selling price on the last preceding date for which such quotation
exists.

       

       (ii)    
(ii) If the Common Stock is at the time listed on any Stock Exchange, then
the Fair Market Value shall be the closing selling price per share of Common
Stock on the date in question on the Stock Exchange determined by the Plan
Administrator to be the primary market for the Common Stock, as such price is
officially quoted in the composite tape of transactions on such exchange and
published in The Wall Street
Journal.  If there is no closing selling price for the Common
Stock on the date in question, then the Fair Market Value shall be the closing
selling price on the last preceding date for which such quotation
exists.

       

       (iii)   
If the Common Stock is at the time neither listed on any Stock Exchange nor
traded on the Nasdaq National Market, then the Fair Market Value shall be
determined by the Plan Administrator after taking into account such factors as
the Plan Administrator shall deem appropriate.

       

      I.            
 Incentive
Option shall mean an option which satisfies the requirements of Code
Section 422.

       

      J.             
Involuntary
Termination shall mean the termination of the Service of any individual
which occurs by reason of:

       

       (i)     
 such individual's involuntary dismissal or discharge by the Corporation
for reasons other than Misconduct, or

       

       (ii)     such
individual's voluntary resignation following (A) a change in his or her
position with the Corporation which materially reduces his or her duties and
responsibilities or the level of management to which he or she reports,
(B) a reduction in his or her level of compensation (including base salary,
fringe benefits and target bonus under any corporate-performance based bonus or
incentive programs) by more than fifteen percent (15%) or (C) a relocation
of such individual's place of employment by more than fifty (50) miles, provided
and only if such change, reduction or relocation is effected without the
individual's consent.

      
        
           

        

        
          - 2
-

          
            

          

        

        
           

        

      

       

      K.           
Misconduct
shall mean the commission of any act of fraud, embezzlement or dishonesty by the
Optionee or Participant, any unauthorized use or disclosure by such person of
confidential information or trade secrets of the Corporation (or any Parent or
Subsidiary), or any other intentional misconduct by such person adversely
affecting the business or affairs of the Corporation (or any Parent or
Subsidiary) in a material manner.  The foregoing definition shall not
in any way preclude or restrict the right of the Corporation (or any Parent or
Subsidiary) to discharge or dismiss any Optionee, Participant or other person in
the Service of the Corporation (or any Parent or Subsidiary) for any other acts
or omissions, but such other acts or omissions shall not be deemed, for purposes
of the Plan, to constitute grounds for termination for Misconduct.

       

      L.            
1934
Act shall mean the Securities Exchange Act of 1934, as
amended.

       

      M.           
Non-Statutory
Option shall mean an option not intended to satisfy the requirements of
Code Section 422.

       

      N.            Option
Grant Program shall mean the option grant program in effect under the
Plan.

       

      O.            Optionee
shall mean any person to whom an option is granted under the Plan.

       

      P.            
Parent
shall mean any corporation (other than the Corporation) in an unbroken chain of
corporations ending with the Corporation, provided each corporation in the
unbroken chain (other than the Corporation) owns, at the time of the
determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

       

      Q.            
Participant
shall mean any person who is issued shares of Common Stock under the Stock
Issuance Program.

       

      R.            
Plan
shall mean the Corporation's 2003 Stock Option/Stock Issuance Plan, as set forth
in this document.

       

      S.            
Plan
Administrator shall mean either the Board or the Committee acting in its
capacity as administrator of the Plan.

       

      T.            
Service
shall mean the provision of services to the Corporation (or any Parent or
Subsidiary) by a person in the capacity of an Employee, a non-employee member of
the board of directors or a consultant or independent advisor, except to the
extent otherwise specifically provided in the documents evidencing the option
grant.

       

      U.            
Stock
Exchange shall mean either the American Stock Exchange or the New York
Stock Exchange.

       

      V.           
Stock
Issuance Agreement shall mean the agreement entered into by the
Corporation and the Participant at the time of issuance of shares of Common
Stock under the Stock Issuance Program.

      
        
           

        

        
          - 3
-

          
            

          

        

        
           

        

      

       

      W.           Stock
Issuance Program shall mean the stock issuance program in effect under
the Plan.

       

      X.            Subsidiary
shall mean any corporation (other than the Corporation) in an unbroken chain of
corporations beginning with the Corporation, provided each corporation (other
than the last corporation) in the unbroken chain owns, at the time of the
determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

       

      Y.            
10%
Shareholder shall mean the owner of stock (as determined under Code
Section 424(d)) possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Corporation (or any Parent
or Subsidiary).

      
        
           

        

        
          - 4
-

          
            

          

        

        
           

        

      

       

      OCUSENSE,
INC.

       

      NOTICE OF GRANT OF STOCK
OPTION

       

      Notice is
hereby given of the following option grant (the "Option") to purchase shares of
the Common Stock of OcuSense, Inc. (the "Corporation"):

       

      Optionee:

       

      Grant
Date:

       

      Vesting Commencement
Date:

       

      Exercise
Price:  $_________________________per share

       

      Number of Option
Shares:  _________________shares of Common Stock

       

      Expiration
Date:

       

      
        	
                 
      

              	
                Type of
      Option:

              	
                Incentive
      Stock Option

              

      

       

      Non-Statutory
Stock Option

       

      Date
Exercisable:  Immediately Exercisable

       

      Vesting
Schedule:  The Option Shares shall initially be unvested and
subject to repurchase by the Corporation at the lower of (i) the
Exercise Price paid per share or (ii) the Fair Market Value per share at
the time of Optionee's cessation of Service.  Optionee shall acquire a
vested interest in, and the Corporation's repurchase right shall accordingly
lapse with respect to, _____________________
__________________________________.  In no event shall any additional
Option Shares vest after Optionee's cessation of Service.

       

      Optionee
understands and agrees that the Option is granted subject to and in accordance
with the terms of the OcuSense, Inc. 2003 Stock Option/Stock Issuance Plan (the
"Plan").  Optionee further agrees to be bound by the terms of the Plan
and the terms of the Option as set forth in the Stock Option Agreement attached
hereto as Exhibit A.

       

      Optionee
understands that any Option Shares purchased under the Option will be subject to
the terms set forth in the Stock Purchase Agreement attached hereto as
Exhibit B.  Optionee hereby acknowledges receipt of a copy of the
Plan in the form attached hereto as Exhibit C.

       

      Repurchase
Rights.  Optionee hereby agrees
that all Option Shares acquired upon the exercise of the Option shall be subject
to certain repurchase rights and rights of first refusal exercisable by the
Corporation and its assigns.  The terms of such rights are specified
in the attached Stock Purchase Agreement.

      
        
           

        

        
          - 1
-

          
            

          

        

        
           

        

      

       

      At Will
Employment.  Nothing in this Notice or in the attached Stock
Option Agreement or Plan shall confer upon Optionee any right to continue in
Service for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Corporation (or any Parent or Subsidiary
employing or retaining Optionee) or of Optionee, which rights are hereby
expressly reserved by each, to terminate Optionee's Service at any time for any
reason, with or without cause.

       

      Definitions.  All
capitalized terms in this Notice shall have the meaning assigned to them in this
Notice or in the attached Stock Option Agreement.

      

      
        
          
            
              
                
                  	
                          DATED:

                        	
                           

                        	 ,
      	 
      	 

                

              

            

          

        

      

      

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    	 
      	
                                                                            OCUSENSE,
      INC.

                                                                          
	 	 	 
	 	 	 
	 
      	By:	 
      
	 	 	 
	 
      	Title:	 
      
	 
      	 
      	 
      
	 	 	 
	 
      	 
      	
                                                                            ,
      OPTIONEE

                                                                          
	 	 	 
	 	 	 
	 
      	Address:	 
      
	 	 	 

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      
 

      Attachments:

      Exhibit A
- Stock Option Agreement

      Exhibit B
- Stock Purchase Agreement

      Exhibit C
- 2003 Stock Option/Stock Issuance Plan

      
        
           

        

        
          - 2
-

          
            

          

        

        
           

        

      

       

      EXHIBIT
A

       

      STOCK OPTION
AGREEMENT

      
        
           

        

        
          - 1 -

          
            

          

        

        
           

        

      

       

      EXHIBIT
B

       

      STOCK PURCHASE
AGREEMENT

      
        
           

        

        
          - 1 -

          
            

          

        

        
           

        

      

       

      EXHIBIT
C

       

      2003 STOCK OPTION/STOCK
ISSUANCE PLAN

      
        
           

        

        
          - 1 -

          
            

          

        

        
           

        

      

      NON-EXEMPT
EMPLOYEE

      UNDER FAIR LABOR STANDARDS
ACT

       

      OCUSENSE,
INC.

       

      NOTICE OF GRANT OF STOCK
OPTION

       

      Notice is
hereby given of the following option grant (the "Option") to purchase shares of
the Common Stock of OcuSense, Inc. (the "Corporation"):

       

      Optionee:

       

      Grant
Date:

       

      Vesting Commencement
Date:

       

      Exercise Price:
$_________________________per share

       

      Number of Option
Shares:  _________________shares of Common Stock

       

      Expiration
Date:

       

      
        	
                 
      

              	
                Type of
      Option:

              	
                Incentive
      Stock Option

              

      

       

      Non-Statutory
Stock Option

       

      Date
Exercisable:  The Option shall become exercisable for all the
Option Shares upon the Optionee's completion of six (6) months of Service
measured from the Grant Date.

       

      Vesting
Schedule:  The Option Shares shall initially be unvested and
subject to repurchase by the Corporation at the lower of (i) the
Exercise Price paid per share or (ii) the Fair Market Value per share at
the time of Optionee's cessation of Service.  Optionee shall acquire a
vested interest in, and the Corporation's repurchase right shall accordingly
lapse with respect to, (i) twenty-five percent (25%) of the Option Shares
upon Optionee's completion of one (1) year of Service measured from the Vesting
Commencement Date and (ii) the balance of the Option Shares in a series of
thirty-six (36) successive equal monthly installments upon Optionee's completion
of each additional month of Service over the thirty-six (36)-month period
measured from the first anniversary of the Vesting Commencement
Date.  In no event shall any additional Option Shares vest after
Optionee's cessation of Service.

       

      Optionee
understands and agrees that the Option is granted subject to and in accordance
with the terms of the OcuSense, Inc. 2003 Stock Option/Stock Issuance Plan (the
"Plan").  Optionee further agrees to be bound by the terms of the Plan
and the terms of the Option as
set forth in the Stock Option Agreement attached hereto as
Exhibit A.

      
        
           

        

        
          - 1
-

          
            

          

        

        
           

        

      

       

      Optionee
understands that any Option Shares purchased under the Option will be subject to
the terms set forth in the Stock Purchase Agreement attached hereto as
Exhibit B.  Optionee hereby acknowledges receipt of a copy of the
Plan in the form attached hereto as Exhibit C.

       

      Repurchase
Rights.  Optionee hereby agrees
that all Option Shares acquired upon the exercise of the Option shall be subject
to certain repurchase rights and rights of first refusal exercisable by the
Corporation and its assigns.  The terms of such rights are specified
in the attached Stock Purchase Agreement.

       

      At Will
Employment.  Nothing in this Notice or in the attached Stock
Option Agreement or Plan shall confer upon Optionee any right to continue in
Service for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Corporation (or any Parent or Subsidiary
employing or retaining Optionee) or of Optionee, which rights are hereby
expressly reserved by each, to terminate Optionee's Service at any time for any
reason, with or without cause.

       

      Definitions.  All
capitalized terms in this Notice shall have the meaning assigned to them in this
Notice or in the attached Stock Option Agreement.

      
        

        
          
            
              
                
                  
                    	
                            DATED:

                          	
                             

                          	 ,	 
      	 

                  

                

              

            

          

        

        

        

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      	 
      	
                                                                              OCUSENSE,
      INC.

                                                                            
	 	 	 
	 	 	 
	 
      	By:	 
      
	 	 	 
	 
      	Title:	 
      
	 
      	 
      	 
      
	 	 	 
	 
      	 
      	
                                                                              ,
      OPTIONEE

                                                                            
	 	 	 
	 	 	 
	 
      	Address:	 
      
	 	 	 

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

        

      

      Attachments:

      Exhibit A
- Stock Option Agreement

      Exhibit B
- Stock Purchase Agreement

      Exhibit C
- 2003 Stock Option/Stock Issuance Plan

      
        
           

        

        
          - 2
-

          
            

          

        

        
           

        

      

       

      EXHIBIT A

       

      STOCK OPTION
AGREEMENT

      
        
           

        

        
          - 1 -

          
            

          

        

        
           

        

      

       

      EXHIBIT B

       

      STOCK PURCHASE
AGREEMENT

      
        
           

        

        
          - 1 -

          
            

          

        

        
           

        

      

       

      EXHIBIT C

       

      2003 STOCK OPTION/STOCK
ISSUANCE PLAN

      
        
           

        

        
          - 1 - 

          
            

          

        

        
           

        

      

       

      OCUSENSE,
INC.

       

      STOCK OPTION
AGREEMENT

       

      RECITALS

       

      A.           
The Board has adopted the Plan for the purpose of retaining the services of
selected Employees, non-employee members of the Board or the board of directors
of any Parent or Subsidiary and consultants and other independent advisors in
the service of the Corporation (or any Parent or Subsidiary).

       

      B.            
Optionee is to render valuable services to the Corporation (or a Parent or
Subsidiary), and this Agreement is executed pursuant to, and is intended to
carry out the purposes of, the Plan in connection with the Corporation's grant
of an option to Optionee.

       

      C.            
All capitalized terms in this Agreement shall have the meaning assigned to them
in the attached Appendix.

       

      NOW, THEREFORE, it is hereby
agreed as follows:

       

      1.            
Grant of
Option.  The Corporation hereby grants to Optionee, as of the
Grant Date, an option to purchase up to the number of Option Shares specified in
the Grant Notice.  The Option Shares shall be purchasable from time to
time during the option term specified in Paragraph 2 at the Exercise
Price.

       

      2.            
Option
Term.  This option shall have a term often (10) years measured
from the Grant Date and shall accordingly expire at the close of business on the
Expiration Date, unless sooner terminated in accordance with Paragraph 5 or
6.

       

      3.            
Limited
Transferability.

       

      (a)           
This option shall be neither transferable nor assignable by Optionee other than
by will or the laws of inheritance following Optionee's death and may be
exercised, during Optionee's lifetime, only by Optionee.  However,
Optionee may designate one or more persons as the beneficiary or beneficiaries
of this option, and this option shall, in accordance with such designation,
automatically be transferred to such beneficiary or beneficiaries upon the
Optionee's death while holding this option.  Such beneficiary or
beneficiaries shall take the transferred option subject to all the terms and
conditions of this Agreement, including (without limitation) the limited time
period during which this option may, pursuant to Paragraph 5, be exercised
following Optionee's death.

       

      (b)           
If this option is designated a Non-Statutory Option in the Grant Notice, then
this option may be assigned in whole or in part during Optionee's lifetime to
one or more members of Optionee's family or to a trust established for the
exclusive benefit of one or more such family members or to Optionee's former
spouse, to the extent such assignment is in connection with the Optionee's
estate plan or pursuant to a domestic relations order.  The assigned
portion shall be exercisable only by the person or persons who acquire a
proprietary interest in the option pursuant to such assignment.  The
terms applicable to the assigned portion shall be the same as those in effect
for this option immediately prior to such assignment.

      
        
           

        

        
          - 1 -

          
            

          

        

        
           

        

      

       

      4.            
Dates of
Exercise.  This option shall become exercisable for the Option
Shares in one or more installments as specified in the Grant
Notice.  As the option becomes exercisable for such installments,
those installments shall accumulate, and the option shall remain exercisable for
the accumulated installments until the Expiration Date or sooner termination of
the option term under Paragraph 5 or 6.

       

      5.            
Cessation
of Service.  The option term specified in Paragraph 2
shall terminate (and this option shall cease to be outstanding) prior to
the Expiration Date should any of the following provisions become
applicable:

       

      (a)           
Should Optionee cease to remain in Service for any reason (other than death,
Disability or Misconduct) while this option is outstanding, then Optionee (or
any person or persons to whom this option is transferred pursuant to a permitted
transfer under Paragraph 3) shall have a period of three (3) months
(commencing with the date of such cessation of Service) during which to
exercise this option, but in no event shall this option be exercisable at any
time after the Expiration Date.

       

      (b)           Should
Optionee die while this option is outstanding, then the personal representative
of Optionee's estate or the person or persons to whom the option is transferred
pursuant to Optionee's will or the laws of inheritance following Optionee's
death or to whom the option is transferred during Optionee's lifetime pursuant
to a permitted transfer under Paragraph 3 shall have the right to exercise
this option.  However, if Optionee dies while holding this option and
has an effective beneficiary designation in effect for this option at the time
of his or her death, then the designated beneficiary or beneficiaries shall have
the exclusive right to exercise this option following Optionee's
death.  Any such right to exercise this option shall lapse, and this
option shall cease to be outstanding, upon the earlier of
(i) the expiration of the twelve (12)-month period measured from the date
of Optionee's death or (ii) the Expiration Date.

       

      (c)           
Should Optionee cease Service by reason of Disability while this option is
outstanding, then Optionee (or any person or persons to whom this option is
transferred pursuant to a permitted transfer under Paragraph 3) shall have
a period of twelve (12) months (commencing with the date of such cessation of
Service) during which to exercise this option.  In no event shall
this option be exercisable at any time after the Expiration Date.

       

      Note: Exercise of
this option on a date later than three (3) months following cessation of Service
due to Disability will result in loss of favorable Incentive Option treatment,
unless such
Disability constitutes Permanent Disability.  In the event that
Incentive Option treatment is not available, this option will be taxed as a
Non-Statutory Option upon exercise.

      
        
           

        

        
          - 2 -

          
            

          

        

        
           

        

      

       

      (d)           
During the limited period of post-Service exercisability, this option may not be
exercised in the aggregate for more than the number of Option Shares in which
Optionee is, at the time of Optionee's cessation of Service, vested pursuant to
the Vesting Schedule specified in the Grant Notice or the special vesting
acceleration provisions of Paragraph 6.  Upon the expiration of
such limited exercise period or (if earlier) upon the Expiration Date, this
option shall terminate and cease to be outstanding for any vested Option Shares
for which the option has not been exercised.  To the extent Optionee
is not vested in one or more Option Shares at the time of Optionee's cessation
of Service, this option shall immediately terminate and cease to be outstanding
with respect to those shares.

       

      (e)           
Should Optionee's Service be terminated for Misconduct or should Optionee
otherwise engage in Misconduct while this option is outstanding, then this
option shall terminate immediately and cease to remain outstanding.

       

      6.            
Accelerated
Vesting.

       

      (a)           
In the event of any Change in Control, the Option Shares at the time subject to
this option but not otherwise vested shall automatically vest in full so that
this option shall, immediately prior to the effective date of the Change in
Control, become exercisable for all of the Option Shares as fully vested shares
and may be exercised for any or all of those Option Shares as vested
shares.  However, the Option Shares shall not vest on such an
accelerated basis if and to the extent: (i) this option is assumed by the
successor corporation (or parent thereof) or otherwise continued in full
force and effect pursuant to the terms of the Change in Control transaction and
the Corporation's repurchase rights with respect to the unvested Option Shares
are assigned to such successor corporation (or parent thereof) or otherwise
continued in effect or (ii) this option is to be replaced with a cash
incentive program of the successor corporation which preserves the spread
existing on the unvested Option Shares at the time of the Change in Control (the
excess of the Fair Market Value of those Option Shares over the Exercise Price
payable for such shares) and provides for subsequent payout of that spread in
accordance with the same Vesting Schedule applicable to those unvested
Option Shares as set forth in the Grant Notice.

       

      (b)           
Immediately following the Change in Control, this option shall terminate and
cease to be outstanding, except to the extent assumed by the successor
corporation (or parent thereof) or otherwise continued in full force and
effect pursuant to the terms of the Change in Control transaction.

       

      (b)           
If this option is assumed in connection with a Change in Control or otherwise
continued in effect, then this option shall be appropriately adjusted,
immediately after such Change in Control, to apply to the number and class of
securities which would have been issuable to Optionee in consummation of such
Change in Control had the option been exercised immediately prior to such Change
in Control, and appropriate adjustments shall also be made to the Exercise
Price, provided
the aggregate Exercise Price shall remain the same.  To the extent
that the actual holders of the Corporation's outstanding Common Stock receive
cash consideration for their Common Stock in consummation of the Change in
Control, the successor corporation may, in connection with the assumption of
this option, substitute one or more shares of its own common stock with a fair
market value equivalent to the cash consideration paid per share of Common Stock
in such Change in Control.

      
        
           

        

        
          - 3 -

          
            

          

        

        
           

        

      

       

      (c)           
This Agreement shall not in any way affect the right of the Corporation to
adjust, reclassify, reorganize or otherwise change its capital or business
structure or to merge, consolidate, dissolve, liquidate or sell or transfer all
or any part of its business or assets.

       

      7.            
Adjustment
in Option Shares.  Should any change be made to the Common
Stock by reason of any stock split, stock dividend, recapitalization,
combination of shares, exchange of shares or other change affecting the
outstanding Common Stock as a class without the Corporation's receipt of
consideration, appropriate adjustments shall be made to (i) the total
number and/or class of securities subject to this option and (ii) the
Exercise Price in order to reflect such change and thereby preclude a dilution
or enlargement of benefits hereunder.

       

      8.            
Stockholder
Rights.  The holder of this option shall not have any
stockholder rights with respect to the Option Shares until such person shall
have exercised the option, paid the Exercise Price and become the record holder
of the purchased shares.

       

      9.            
Manner of
Exercising Option.

       

      (a)           
In order to exercise this option with respect to all or any part of the Option
Shares for which this option is at the time exercisable, Optionee (or any other
person or persons exercising the option) must take the following
actions:

       

       (i)      
Execute and deliver to the Corporation a Purchase Agreement for the Option
Shares for which the option is exercised.

       

       (ii)     
Pay the aggregate Exercise Price for the purchased shares in one or more of the
following forms:

       

        
(A)        cash or check made payable to
the Corporation; or

       

        
(B)        a promissory note payable to
the Corporation, but only to the extent authorized by the Plan Administrator in
accordance with Paragraph 14.

       

        
Should the Common Stock be registered under Section 12 of the 1934 Act at
the time the option is exercised, then the Exercise Price may also be paid as
follows:

       

        
(C)        in shares of Common Stock
held by Optionee (or any other person or persons exercising the option) for the
requisite period necessary to avoid a charge to the Corporation's earnings for
financial reporting purposes and valued at Fair Market Value on the Exercise
Date; or

       

        
(D)        to the extent the option is
exercised for vested Option Shares, through a special sale and remittance
procedure pursuant to which Optionee (or any other person or persons exercising
the option) shall concurrently provide irrevocable instructions (a) to a
Corporation-designated brokerage firm to effect the immediate sale of the
purchased shares and remit to the Corporation, out of the sale proceeds
available on the settlement date, sufficient funds to cover the aggregate
Exercise Price payable for the purchased shares plus all applicable income and
employment taxes required to be withheld by the Corporation by reason of such
exercise and (b) to the Corporation to deliver the certificates for the
purchased shares directly to such brokerage firm in order to complete the
sale.

      
        
           

        

        
          - 4 -

          
            

          

        

        
           

        

      

       

      Except to
the extent the sale and remittance procedure is utilized in connection with the
option exercise, payment of the Exercise Price must accompany the Purchase
Agreement delivered to the Corporation in connection with the option
exercise.

       

       (iii)    
Furnish to the Corporation appropriate documentation that the person or persons
exercising the option (if other than Optionee) have the right to exercise
this option.

       

       (iv)   
Execute and deliver to the Corporation such written representations as may be
requested by the Corporation in order for it to comply with the applicable
requirements of applicable securities laws.

       

       (v)     Make
appropriate arrangements with the Corporation (or Parent or Subsidiary employing
or retaining Optionee) for the satisfaction of all applicable income and
employment tax withholding requirements applicable to the option
exercise.

       

      (b)           As
soon as practical after the Exercise Date, the Corporation shall issue to or on
behalf of Optionee (or any other person or persons exercising this option) a
certificate for the purchased Option Shares, with the appropriate legends
affixed thereto.

       

      (c)           In
no event may this option be exercised for any fractional shares.

       

      10.           Repurchase
Rights.  All
Option Shares acquired upon the exercise of this Option shall be subject to
certain rights of the Corporation and its assigns to repurchase those shares in
accordance with the terms specified in the Purchase
Agreement.

       

      11.           Compliance
with Laws and Regulations.

       

      (a)           
The exercise of this option and the issuance of the Option Shares upon such
exercise shall be subject to compliance by the Corporation and Optionee with all
applicable requirements of law relating thereto and with all applicable
regulations of any stock exchange (or the Nasdaq National Market, if
applicable) on which the Common Stock may be listed for trading at the time
of such exercise and issuance.

       

      (b)           The
inability of the Corporation to obtain approval from any regulatory body having
authority deemed by the Corporation to be necessary to the lawful issuance and
sale of any Common Stock pursuant to this option shall relieve the Corporation
of any liability with respect to the non-issuance or sale of the Common Stock as
to which such approval shall not have been obtained.  The Corporation,
however, shall use its best efforts to obtain all such approvals.

       

      12.           Successors
and Assigns.  Except to the extent otherwise provided in
Paragraphs 3 and 6, the provisions of this Agreement shall inure to the
benefit of, and be binding upon, the Corporation and its successors and assigns
and Optionee, Optionee's assigns and the legal representatives, heirs and
legatees of Optionee's estate.

      
        
           

        

        
          - 5 -

          
            

          

        

        
           

        

      

       

      13.           Notices.  Any
notice required to be given or delivered to the Corporation under the terms of
this Agreement shall be in writing and addressed to the Corporation at its
principal corporate offices.  Any notice required to be given or
delivered to Optionee shall be in writing and addressed to Optionee at the
address indicated below Optionee's signature line on the Grant
Notice.  All notices shall be deemed effective upon personal delivery
or upon deposit in the U.S. mail, postage prepaid and properly addressed to the
party to be notified.

       

      14.           Financing.  The
Plan Administrator may, in its absolute discretion and without any obligation to
do so, permit Optionee to pay the Exercise Price for the purchased Option Shares
by delivering a full-recourse promissory note bearing interest at a market rate
and secured by those Option Shares.  The payment schedule in effect
for any such promissory note shall be established by the Plan Administrator in
its sole discretion.

       

      Note:
If the Optionee is a consultant, then the promissory note delivered in payment
of the Exercise Price must be secured by collateral other than the purchased
Option Shares.

       

      15.           Construction.  This
Agreement and the option evidenced hereby are made and granted pursuant to the
Plan and are in all respects limited by and subject to the terms of the
Plan.  All decisions of the Plan Administrator with respect to any
question or issue arising under the Plan or this Agreement shall be conclusive
and binding on all persons having an interest in this option.

       

      16.           Governing
Law.  The interpretation, performance and enforcement of this
Agreement shall be governed by the laws of the State of California without
resort to that State's conflict-of-laws rules.

       

      17.           Stockholder
Approval.  If the Option Shares covered by this Agreement
exceed, as of the Grant Date, the number of shares of Common Stock which maybe
issued under the Plan as last approved by the stockholders, then this option
shall be void with respect to such excess shares, unless stockholder approval of
an amendment sufficiently increasing the number of shares of Common Stock
issuable under the Plan is obtained in accordance with the provisions of the
Plan.

       

      18.           Additional
Terms Applicable to an Incentive Option.  In the event this
option is designated an Incentive Option in the Grant Notice, the following
terms and conditions shall also apply to the grant:

       

      (a)           
This option shall cease to qualify for favorable tax treatment as an Incentive
Option if (and to the extent) this option is exercised for one or more Option
Shares: (i) more than three (3) months after the date Optionee ceases to be
an Employee for any reason other than death or Permanent Disability or
(ii) more than twelve (12) months after the date Optionee ceases to be an
Employee by reason of Permanent Disability.

      
        
           

        

        
          - 6 -

          
            

          

        

        
           

        

      

       

      (b)           This
option shall not become exercisable in the calendar year in which granted if
(and to the extent) the aggregate Fair Market Value (determined at the Grant
Date) of the Common Stock for which this option would otherwise first
become exercisable in such calendar year would, when added to the aggregate
value (determined as of the respective date or dates of grant) of the Common
Stock and any other securities for which one or more other Incentive Options
granted to Optionee prior to the Grant Date (whether under the Plan or any other
option plan of the Corporation or any Parent or Subsidiary) first become
exercisable during the same calendar year, exceed One Hundred Thousand Dollars
($100,000) in the aggregate.  To the extent the exercisability of this
option is deferred by reason of the foregoing limitation, the deferred portion
shall become exercisable in the first calendar year or years thereafter in which
the One Hundred Thousand Dollar ($100,000) limitation of this
Paragraph 18(b) would not be contravened, but such deferral shall in
all events end immediately prior to the effective date of a Change in Control in
which this option is not to be assumed or otherwise continued in effect,
whereupon the option shall become immediately exercisable as a Non-Statutory
Option for the deferred portion of the Option Shares.

       

      (c)           
Should Optionee hold, in addition to this option, one or more other options to
purchase Common Stock which become exercisable for the first time in the same
calendar year as this option, then the foregoing limitations on the
exercisability of such options as Incentive Options shall be applied on the
basis of the order in which such options are granted.

      
        
           

        

        
          - 7 -

          
            

          

        

        
           

        

      

       

      APPENDIX

       

      The
following definitions shall be in effect under the Agreement:

       

      A.           
Agreement
shall mean this Stock Option Agreement.

       

      B.            
Board
shall mean the Corporation's Board of Directors.

       

      C.            
Change in
Control shall mean a change in ownership or control of the Corporation
effected through any of the following transactions:

       

       (i)    
a merger, consolidation or other reorganization approved by the Corporation's
stockholders, unless securities
representing more than fifty percent (50%) of the total combined voting power of
the voting securities of the successor corporation are immediately thereafter
beneficially owned, directly or indirectly and in substantially the same
proportion, by the persons who beneficially owned the Corporation's outstanding
voting securities immediately prior to such transaction, or

       

       (ii)   
a stockholder-approved sale, transfer or other disposition of all or
substantially all of the Corporation's assets in complete liquidation or
dissolution of the Corporation, or

       

       (iii)  
the acquisition, directly or indirectly by any person or related group of
persons (other than the Corporation or a person that directly or indirectly
controls, is controlled by, or is under common control with, the Corporation),
of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act)
of securities possessing more than fifty percent (50%) of the total combined
voting power of the Corporation's outstanding securities pursuant to a tender or
exchange offer made directly to the Corporation's stockholders.

       

      In no
event shall any public offering of the Corporation's securities be deemed to
constitute a Change in Control.

       

      D.            
Code
shall mean the Internal Revenue Code of 1986, as amended.

       

      E.            
Common
Stock shall mean the Corporation's common stock.

       

      F.            
Corporation
shall mean OcuSense, Inc., a Delaware corporation, and any successor corporation
to all or substantially all of the assets or voting stock of OcuSense, Inc.
which shall by appropriate action assume this option.

       

      F.           
Disability
shall mean the inability of Optionee to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment
and shall be determined by the Plan Administrator on the basis of such medical
evidence as the Plan Administrator deems warranted under the
circumstances.  Disability shall be deemed to constitute Permanent Disability in the
event that such Disability is expected to result in death or has lasted or can
be expected to last for a continuous period of twelve (12) months or
more.

      
        
           

        

        
          - 1
-

          
            

          

        

        
           

        

      

       

      G.            
Employee
shall mean an individual who is in the employ of the Corporation (or any Parent
or Subsidiary), subject to the control and direction of the employer entity as
to both the work to be performed and the manner and method of
performance.

       

      H.           
 Exercise
Date shall mean the date on which the option shall have been exercised in
accordance with Paragraph 9 of the Agreement.

       

      I.             
Exercise
Price shall mean the exercise price payable per Option Share as specified
in the Grant Notice.

       

      J.            
 Expiration
Date shall mean the date on which the option expires as specified in the
Grant Notice.

       

      K.            
Fair
Market Value per share of Common Stock on any relevant date shall be
determined in accordance with the following provisions:

       

       (i)    
If the Common Stock is at the time traded on the Nasdaq National Market, then
the Fair Market Value shall be the closing selling price per share of Common
Stock on the date in question, as the price is reported by the National
Association of Securities Dealers on the Nasdaq National Market and published in
The Wall Street
Journal.  If there is no closing selling price for the Common
Stock on the date in question, then the Fair Market Value shall be the closing
selling price on the last preceding date for which such quotation
exists.

       

       (ii)   
If the Common Stock is at the time listed on any Stock Exchange, then the Fair
Market Value shall be the closing selling price per share of Common Stock on the
date in question on the Stock Exchange determined by the Plan Administrator to
be the primary market for the Common Stock, as such price is officially quoted
in the composite tape of transactions on such exchange and published in The Wall Street
Journal.  If there is no closing selling price for the Common
Stock on the date in question, then the Fair Market Value shall be the closing
selling price on the last preceding date for which such quotation
exists.

       

      (iii)  
If the Common Stock is at the time neither listed on any Stock Exchange nor
traded on the Nasdaq National Market, then the Fair Market Value shall be
determined by the Plan Administrator after taking into account such factors as
the Plan Administrator shall deem appropriate.

       

      L.            
Grant
Date shall mean the date of grant of the option as specified in the Grant
Notice.

       

      M.           Grant
Notice shall mean the Notice of Grant of Stock Option accompanying the
Agreement, pursuant to which Optionee has been informed of the basic terms of
the option evidenced hereby.

       

      N.           
Incentive
Option shall mean an option which satisfies the requirements of Code
Section 422.

      
        
           

        

        
          - 2
-

          
            

          

        

        
           

        

      

       

      O.           
Misconduct
shall mean the commission of any act of fraud, embezzlement or dishonesty by
Optionee, any unauthorized use or disclosure by Optionee of confidential
information or trade secrets of the Corporation (or any Parent or Subsidiary),
or any other intentional misconduct by Optionee adversely affecting the business
or affairs of the Corporation (or any Parent or Subsidiary) in a material
manner.  The foregoing definition shall not in any way preclude or
restrict the right of the Corporation (or any Parent or Subsidiary) to discharge
or dismiss Optionee or any other person in the Service of the Corporation (or
any Parent or Subsidiary) for any other acts or omissions, but such other acts
or omissions shall not be deemed, for purposes of the Plan or this Agreement, to
constitute grounds for termination for Misconduct.

       

      P.            
1934
Act shall mean the Securities Exchange Act of 1934, as
amended.

       

      Q.           
Non-Statutory
Option shall mean an option not intended to satisfy the requirements of
Code Section 422.

       

      R.            
Option
Shares shall mean the number of shares of Common Stock subject to the
option.

       

      S.            
Optionee
shall mean the person to whom the option is granted as specified in the Grant
Notice.

       

      T.            
Parent
shall mean any corporation (other than the Corporation) in an unbroken chain of
corporations ending with the Corporation, provided each corporation in the
unbroken chain (other than the Corporation) owns, at the time of the
determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

       

      U.            
Plan
shall mean the Corporation's 2003 Stock Option/Stock Issuance Plan.

       

      V.            
Plan
Administrator shall mean either the Board or a committee of the Board
acting in its capacity as administrator of the Plan.

       

      W.           Purchase
Agreement shall mean the stock purchase agreement in substantially the
form of Exhibit B to the Grant Notice.

       

      X.            
Service
shall mean the Optionee's performance of services for the Corporation (or any
Parent or Subsidiary) in the capacity of an Employee, a non-employee member of
the board of directors or an independent consultant.

       

      Y.            
Stock
Exchange shall mean the American Stock Exchange or the New York Stock
Exchange.

       

      Z.            
Subsidiary
shall mean any corporation (other than the Corporation) in an unbroken chain of
corporations beginning with the Corporation, provided each corporation (other
than the last corporation) in the unbroken chain owns, at the time of the
determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

      
        
           

        

        
          - 3
-

          
            

          

        

        
           

        

      

       

      AA.         Vesting
Schedule shall mean the vesting schedule specified in the Grant
Notice pursuant to which the Optionee is to vest in the Option Shares in a
series of installments over his or her period of Service.

      
        
           

        

        
          - 4
-

          
            

          

        

        
           

        

      

       

      ADDENDUM
TO

      STOCK
OPTION AGREEMENT

       

      The
following provisions are hereby incorporated into, and are hereby made a part
of, that certain Stock Option Agreement (the "Option Agreement") by and between
OcuSense, Inc. (the "Corporation") and________________________ ("Optionee")
evidencing the stock option (the "Option") granted on this date to Optionee
under the terms of the Corporation's 2003 Stock Option/Stock Issuance Plan, and
such provisions shall be effective immediately.  All capitalized terms
in this Addendum, to the extent not otherwise defined herein, shall have the
meanings assigned to them in the Option Agreement.

       

      INVOLUNTARY
TERMINATION FOLLOWING

      A
CHANGE IN CONTROL

       

      1.           If
the Option is to be assumed by the successor corporation (or the parent
thereof) in connection with a Change in Control or is otherwise to be
continued in full force and effect pursuant to the terms of the Change in
Control transaction, then none of the Option Shares shall, in accordance with
Paragraph 6 of the Option Agreement, vest on an accelerated basis upon the
occurrence of that Change in Control, and Optionee shall accordingly continue,
over his or her period of Service following the Change in Control, to vest in
the Option Shares in one or more installments in accordance with the provisions
of the Option Agreement. However, upon an Involuntary Termination of Optionee's
Service within eighteen (18) months following such Change in Control, all the
Option Shares at the time subject to the Option shall automatically vest in full
on an accelerated basis so that the Option shall immediately become exercisable
for all the Option Shares as fully-vested shares and may be exercised for any or
all of those Option Shares as vested shares.  The Option shall remain
so exercisable until the earlier of
(i) the Expiration Date or (ii) the expiration of the one (l)-year
period measured from the date of the Involuntary Termination.

       

      2.           For
purposes of this Addendum, an Involuntary Termination shall
mean the termination of Optionee's Service by reason of:

       

      (i) 
Optionee's involuntary dismissal or discharge by the Corporation for reasons
other than for Misconduct, or

       

      (ii)
Optionee's voluntary resignation following (A) a change in Optionee's
position with the Corporation (or Parent or Subsidiary employing
Optionee) which materially reduces Optionee's duties and responsibilities
or the level of management to which he or she reports, (B) a reduction in
Optionee's level of compensation (including base salary, fringe benefits and
target bonus under any corporate-performance based incentive programs) by more
than fifteen percent (15%) or (C) a relocation of Optionee's place of
employment by more than fifty (50) miles, provided and only if such change,
reduction or relocation is effected by the Corporation without Optionee's
consent.

      
        
           

        

        
          - 1
-

          
            

          

        

        
           

        

      

       

      3.           The
provisions of Paragraph 1 of this Addendum shall govern the period for
which the Option is to remain exercisable following the Involuntary Termination
of Optionee's Service within eighteen (18) months after the Change in Control
and shall supersede any provisions to the contrary in Paragraph 5 of the
Option Agreement.  The provisions of this Addendum shall also
supersede any provisions to the contrary in Paragraph 18 of the Option
Agreement concerning the deferred exercisability of the Option.

       

      IN WITNESS WHEREOF, OcuSense,
Inc. has caused this Addendum to be executed by its duly-authorized officer as
of the Effective Date specified below.

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	 
      	
                                      OCUSENSE,
      INC.

                                    
	 	 	 
	 
      	
                                      By:

                                    	 
      
	 	 	 
	 
      	
                                      Title:

                                    	 
      

                            

                          

                        

                      

                    

                  

                

              

            

          

        

         

        

        
          
            
              
                
                  
                    
                      	
                              EFFECTIVE
      DATE:

                            	
                               

                            	 ,	 
      	 

                    

                  

                

              

            

          

        

        

          
            
               

            

            
              - 2
-

              
                

              

            

            
               

            

          

        

         

      

      OCUSENSE,
INC.

       

      STOCK PURCHASE
AGREEMENT

       

      AGREEMENT made this _____ day
of___________________, _____by and between OcuSense, Inc., a Delaware
corporation, and _____________________, Optionee under the Corporation's 2003
Stock Option/Stock Issuance Plan.

       

      All
capitalized terms in this Agreement shall have the meaning assigned to them in
this Agreement or in the attached Appendix.

       

      
        	
                 
      

              	
                A.

              	
                EXERCISE OF
      OPTION

              

      

       

      1.             Exercise.  Optionee
hereby purchases _______ shares of Common Stock (the "Purchased Shares")
pursuant to that certain option (the "Option") granted Optionee on
____________________, _______ (the "Grant Date") to purchase up to
_______________ shares of Common Stock (the "Option Shares") under the Plan at
the exercise price of $___________per share (the "Exercise Price").

       

      2.            
Payment.  Concurrently
with the delivery of this Agreement to the Corporation, Optionee shall pay the
Exercise Price for the Purchased Shares in accordance with the provisions of the
Option Agreement and shall deliver whatever additional documents may be required
by the Option Agreement as a condition for exercise, together with a
duly-executed blank Assignment Separate from Certificate (in the form attached
hereto as Exhibit I) with respect to the Purchased
Shares.

       

      3.            
Stockholder
Rights.  Until such time as the Corporation exercises the
Repurchase Right or the First Refusal Right, Optionee (or any successor in
interest) shall have all the rights of a stockholder (including voting, dividend
and liquidation rights) with respect to the Purchased Shares, subject, however,
to the transfer restrictions of Articles B and C.

       

      
        	
                 
      

              	
                B.

              	
                SECURITIES LAW
      COMPLIANCE

              

      

       

      1.            
Restricted
Securities.  The Purchased Shares have not been registered
under the 1933 Act and are being issued to Optionee in reliance upon the
exemption from such registration provided by SEC Rule 701 for stock
issuances under compensatory benefit plans such as the Plan.  Optionee
hereby confirms that Optionee has been informed that the Purchased Shares are
restricted securities under the 1933 Act and may not be resold or transferred
unless the Purchased Shares are first registered under the Federal securities
laws or unless an exemption from such registration is
available.  Accordingly, Optionee hereby acknowledges that Optionee is
acquiring the Purchased Shares for investment purposes only and not with a view
to resale and is prepared to hold the Purchased Shares for an indefinite period
and that Optionee is aware that SEC Rule 144 issued under the 1933 Act
which exempts certain resales of unrestricted securities is not presently
available to exempt the resale of the Purchased Shares from the registration
requirements of the 1933 Act.

      
        
           

        

        
          - 1 -

          
            

          

        

        
           

        

      

       

      2.             
Restrictions
on Disposition of Purchased Shares.  Optionee shall make no
disposition of the Purchased Shares (other than a Permitted Transfer) unless and
until there is compliance with all of the following requirements:

       

      (i)    
Optionee shall have provided the Corporation with a written summary of the terms
and conditions of the proposed disposition.

       

      (ii)   
Optionee shall have complied with all requirements of this Agreement applicable
to the disposition of the Purchased Shares.

       

      (iii)  
Optionee shall have provided the Corporation with written assurances, in form
and substance satisfactory to the Corporation, that (a) the proposed
disposition does not require registration of the Purchased Shares under the 1933
Act or (b) all appropriate action necessary for compliance with the
registration requirements of the 1933 Act or any exemption from registration
available under the 1933 Act (including Rule 144) has been
taken.

       

      The
Corporation shall not be
required (i) to transfer on its books any Purchased Shares which have been
sold or transferred in violation of the provisions of this Agreement or (ii) to treat
as the owner of the Purchased Shares, or otherwise to accord voting, dividend or
liquidation rights to, any transferee to whom the Purchased Shares have been
transferred in contravention of this Agreement.

       

      3.             
Restrictive
Legends.  The stock certificates for the Purchased Shares shall
be endorsed with one or more of the following restrictive legends:

       

      "The
shares represented by this certificate have not been registered under the
Securities Act of 1933.  The shares may not be sold or offered for
sale in the absence of (a) an effective registration statement for the
shares under such Act, (b) a 'no action' letter of the Securities and
Exchange Commission with respect to such sale or offer or (c) satisfactory
assurances to the Corporation that registration under such Act is not required
with respect to such sale or offer."

       

      "The
shares represented by this certificate are subject to certain repurchase rights
and rights of first refusal granted to the Corporation and accordingly may not
be sold, assigned, transferred, encumbered, or in any manner disposed of except
in conformity with the terms of a written agreement dated ____________, 20___
between the Corporation and the registered holder of the shares (or the
predecessor in interest to the shares).  A copy of such agreement is
maintained at the Corporation's principal corporate offices."

       

      
        	
                 
      

              	
                C.

              	
                TRANSFER
      RESTRICTIONS

              

      

       

      1.            
Restriction
on Transfer.  Except for any Permitted Transfer, Optionee shall
not transfer, assign, encumber or otherwise dispose of any of the Purchased
Shares which are subject to the Repurchase Right.  In addition,
Purchased Shares which are released from the Repurchase Right shall not be
transferred, assigned, encumbered or otherwise disposed of in contravention of
the First Refusal Right or the Market Stand-Off.

      
        
           

        

        
          - 2 -

          
            

          

        

        
           

        

      

       

      2.            
Transferee
Obligations.  Each person (other than the Corporation) to whom
the Purchased Shares are transferred by means of a Permitted Transfer must, as a
condition precedent to the validity of such transfer, acknowledge in writing to
the Corporation that such person is bound by the provisions of this Agreement
and that the transferred shares are subject to (i) the Repurchase Right,
(ii) the First Refusal Right and (iii) the Market Stand-Off, to the
same extent such shares would be so subject if retained by
Optionee.

       

      
        	
                 
      

              	
                3.

              	
                Market
      Stand-Off.

              

      

       

      (a)          In
connection with any underwritten public offering by the Corporation of its
equity securities pursuant to an effective registration statement filed under
the 1933 Act, including the Corporation's initial public offering, Owner shall
not sell, make any short sale of, loan, hypothecate, pledge, grant any option
for the purchase of, or otherwise dispose or transfer for value or otherwise
agree to engage in any of the foregoing transactions with respect to, any
Purchased Shares without the prior written consent of the Corporation or its
underwriters. Such restriction (the "Market Stand-Off') shall be in effect for
such period of time from and after the effective date of the final prospectus
for the offering as may be requested by the Corporation or such
underwriters.  In no event, however, shall such period exceed one
hundred eighty (180) days, and the Market Stand-Off shall in no event be
applicable to any underwritten public offering effected more than two (2) years
after the effective date of the Corporation's initial public
offering.

       

      (b)         Owner
shall be subject to the Market Stand-Off provided and only if
the officers and directors of the Corporation are also subject to similar
restrictions.

       

      (c)         Any
new, substituted or additional securities which are by reason of any
Recapitalization or Reorganization distributed with respect to the Purchased
Shares shall be immediately subject to the Market Stand-Off, to the same extent
the Purchased Shares are at such time covered by such provisions.

       

      (d)         In
order to enforce the Market Stand-Off, the Corporation may impose stop-transfer
instructions with respect to the Purchased Shares until the end of the
applicable stand-off period.

       

      
        	
                 
      

              	
                D.

              	
                REPURCHASE
      RIGHT

              

      

       

      1.            
Grant.  The
Corporation is hereby granted the right (the "Repurchase Right"), exercisable at
any time during the sixty (60)-day period following the date Optionee ceases for
any reason to remain in Service or (if later) during the sixty (60)-day period
following the execution date of this Agreement, to repurchase at the Repurchase
Price any or all of the Purchased Shares in which Optionee is not, at the time
of his or her cessation of Service, vested in accordance with the Vesting
Schedule applicable to those shares or the special vesting acceleration
provisions of Paragraph D.6 of this Agreement (such shares to be
hereinafter referred to as the "Unvested Shares").

      
        
           

        

        
          - 3 -

          
            

          

        

        
           

        

      

       

      2.            
Exercise
of the Repurchase Right.  The Repurchase Right shall be
exercisable by written notice delivered to each Owner of the Unvested Shares
prior to the expiration of the sixty (60)-day exercise period.  The
notice shall indicate the number of Unvested Shares to be repurchased, the
Repurchase Price to be paid per share and the date on which the repurchase is to
be effected, such date to be not more than thirty (30) days after the date of
such notice.  The certificates representing the Unvested Shares to be
repurchased shall be delivered to the Corporation on the closing date specified
for the repurchase.  Concurrently with the receipt of such stock
certificates, the Corporation shall pay to Owner, in cash or cash equivalents
(including the cancellation of any purchase-money indebtedness), an amount equal
to the Repurchase Price for the Unvested Shares which are to be repurchased from
Owner.

       

      3.            
Termination
of the Repurchase Right.  The Repurchase Right shall terminate
with respect to any Unvested Shares for which it is not timely exercised under
Paragraph D.2.  In addition, the Repurchase Right shall terminate
and cease to be exercisable with respect to any and all Purchased Shares in
which Optionee vests in accordance with the Vesting Schedule.  All
Purchased Shares as to which the Repurchase Right lapses shall, however, remain
subject to (i) the First Refusal Right and (ii) the Market
Stand-Off.

       

      4.            
Aggregate
Vesting Limitation.  If the Option is exercised in more than
one increment so that Optionee is a party to one or more other Stock Purchase
Agreements (the "Prior Purchase Agreements") which are executed prior to the
date of this Agreement, then the total number of Purchased Shares as to which
Optionee shall be deemed to have a folly-vested interest under this Agreement
and all Prior Purchase Agreements shall not exceed in the aggregate the number
of Purchased Shares in which Optionee would otherwise at the time be vested, in
accordance with the Vesting Schedule, had all the Purchased Shares (including
those acquired under the Prior Purchase Agreements) been acquired exclusively
under this Agreement.

       

      4.            
Recapitalization.  Any
new, substituted or additional securities or other property (including cash paid
other than as a regular cash dividend) which is by reason of any
Recapitalization distributed with respect to the Purchased Shares shall be
immediately subject to the Repurchase Right and any escrow requirements
hereunder, but only to the extent the Purchased Shares are at the time covered
by such right or escrow requirements.  Appropriate adjustments to
reflect such distribution shall be made to the number and/or class of Purchased
Shares subject to this Agreement and to the Repurchase Price per share to be
paid upon the exercise of the Repurchase Right in order to reflect the effect of
any such Recapitalization upon the Corporation's capital structure; provided, however,
that the aggregate Repurchase Price shall remain the same.

       

      5.            
Change in
Control.

       

      (a)          The
Repurchase Right shall automatically terminate in its entirety, and all the
Purchased Shares shall vest in full, immediately prior to the consummation of
any Change in Control, except to the extent the Repurchase Right is to be
assigned to the successor entity in such Change in Control or otherwise
continued in full force and effect pursuant to the terms of the Change in
Control transaction.

      
        
           

        

        
          - 4 -

          
            

          

        

        
           

        

      

       

      (b)         To
the extent the Repurchase Right remains in effect following a Change in Control,
such right shall apply to any new securities or other property (including any
cash payments) received in exchange for the Purchased Shares in consummation of
the Change in Control, but only to the extent the Purchased Shares are at the
time covered by such right.  Appropriate adjustments shall be made to
the Repurchase Price per share payable upon exercise of the Repurchase Right to
reflect the effect (if any) of the Change in Control upon the Corporation's
capital structure; provided, however,
that the aggregate Repurchase Price shall remain the same.  The new
securities or other property (including any cash payments) issued or distributed
with respect to the Purchased Shares in consummation of the Change in Control
shall be immediately deposited in escrow with the Corporation (or the successor
entity) and shall not be released from escrow until Optionee vests in such
securities or other property in accordance with the same Vesting
Schedule in effect for the Purchased Shares.

       

      
        	
                 
      

              	
                E.

              	
                RIGHT OF FIRST
      REFUSAL

              

      

       

      1.            
Grant.  The
Corporation is hereby granted the right of first refusal (the "First Refusal
Right"), exercisable in connection with any proposed transfer of the Purchased
Shares in which Optionee has vested in accordance with the provisions of
Article D.  For purposes of this Article E, the term
"transfer" shall include any sale, assignment, pledge, encumbrance or other
disposition of the Purchased Shares intended to be made by Owner, but shall not
include any Permitted Transfer.

       

      2.            
Notice of
Intended Disposition.  In the event any Owner of Purchased
Shares in which Optionee has vested desires to accept a bona fide third-party
offer for the transfer of any or all of such shares (the Purchased Shares
subject to such offer to be hereinafter referred to as the "Target Shares"),
Owner shall promptly (i) deliver to the Corporation written notice (the
"Disposition Notice") of the terms of the offer, including the purchase price
and the identity of the third-party offeror, and (ii) provide satisfactory
proof that the disposition of the Target Shares to such third-party offeror
would not be in contravention of the provisions set forth in Articles B and
C.

       

      3.            
Exercise
of the First Refusal Right.  The Corporation shall, for a
period of twenty-five (25) days following receipt of the Disposition Notice,
have the right to repurchase any or all of the Target Shares subject to the
Disposition Notice upon the same terms as those specified therein or upon such
other terms (not materially different from those specified in the Disposition
Notice) to which Owner consents.  Such right shall be exercisable
by delivery of written notice (the "Exercise Notice") to Owner prior to the
expiration of the twenty-five (25)-day exercise period.  If such right
is exercised with respect to all the Target Shares, then the Corporation shall
effect the repurchase of such shares, including payment of the purchase price,
not more than five (5) business days after delivery of the Exercise Notice; and
at such time the certificates representing the Target Shares shall be delivered
to the Corporation.

       

      Should
the purchase price specified in the Disposition Notice be payable in property
other than cash or evidences of indebtedness, the Corporation shall have the
right to pay the purchase price in the form of cash equal in amount to the value
of such property.  If Owner and the Corporation cannot agree on such
cash value within ten (10) days after the Corporation's receipt of the
Disposition Notice, the valuation shall be made by an appraiser of recognized
standing selected by Owner and the Corporation or, if they cannot agree on an
appraiser within twenty (20) days after the Corporation's receipt of the
Disposition Notice, each shall select an appraiser of recognized standing and
the two (2) appraisers shall designate a third appraiser of recognized standing,
whose appraisal shall be determinative of such value. The cost of such appraisal
shall be shared equally by Owner and the Corporation.  The closing
shall then be held on the later of (i) the
fifth (5th) business day following delivery of the Exercise Notice or
(ii) the fifth (5th) business day after such valuation shall have been
made.

      
        
           

        

        
          - 5 -

          
            

          

        

        
           

        

      

       

      4.             Non-Exercise
of the First Refusal Right.  In the event the Exercise Notice
is not given to Owner prior to the expiration of the twenty-five (25)-day
exercise period, Owner shall have a period of thirty (30) days thereafter in
which to sell or otherwise dispose of the Target Shares to the third-party
offeror identified in the Disposition Notice upon terms (including the purchase
price) no more favorable to such third-party offeror than those specified
in the Disposition Notice; provided, however,
that any such sale or disposition must not be effected in contravention of the
provisions of Articles B and C. The third-party offeror shall acquire the Target
Shares subject to the First Refusal Right and the provisions and restrictions of
Article B and Paragraph C.3, and any subsequent disposition of the
acquired shares must be effected in compliance with the terms and conditions of
such First Refusal Right and the provisions and restrictions of Article B
and Paragraph C.3.  In the event Owner does not effect such sale
or disposition of the Target Shares within the specified thirty (30)-day period,
the First Refusal Right shall continue to be applicable to any subsequent
disposition of the Target Shares by Owner until such right lapses.

       

      5.            
Partial
Exercise of the First Refusal Right.  In the event the
Corporation makes a timely exercise of the First Refusal Right with respect to a
portion, but not all, of the Target Shares specified in the Disposition Notice,
Owner shall have the option, exercisable by written notice to the Corporation
delivered within five (5) business days after Owner's receipt of the Exercise
Notice, to effect the sale of the Target Shares pursuant to either of the
following alternatives:

       

      (i)    
sale or other disposition of all the Target Shares to the third-party offerer
identified in the Disposition Notice, but in full compliance with the
requirements of Paragraph E.4, as if the Corporation did not exercise the
First Refusal Right; or

       

      (ii)   
sale to the Corporation of the portion of the Target Shares which the
Corporation has elected to purchase, such sale to be effected in substantial
conformity with the provisions of Paragraph E.3.  The First
Refusal Right shall continue to be applicable to any subsequent disposition of
the remaining Target Shares until such right lapses.

       

      Owner's
failure to deliver timely notification to the Corporation shall be deemed to be
an election by Owner to sell the Target Shares pursuant to alternative
(i) above.

       

      6.             
Recapitalization/Reorganization.

       

      (a)         Any
new, substituted or additional securities or other property which is by reason
of any Recapitalization distributed with respect to the Purchased Shares shall
be immediately subject to the First Refusal Right, but only to the extent the
Purchased Shares are at the time covered by such right.

       

      (b)         In
the event of a Reorganization, the First Refusal Right shall remain in full
force and effect and shall apply to the new capital stock or other property
received in exchange for the Purchased Shares in consummation of the
Reorganization, but only to the extent the Purchased Shares are at the time
covered by such right.

      
        
           

        

        
          - 6 -

          
            

          

        

        
           

        

      

       

      7.            
Lapse.  The
First Refusal Right shall lapse upon the earliest to occur of
(i) the first date on which shares of the Common Stock are held of record
by more than five hundred (500) persons, (ii) a determination made by the
Board that a public market exists for the outstanding shares of Common Stock or
(iii) a firm commitment underwritten public offering, pursuant to an
effective registration statement under the 1933 Act, covering the offer and sale
of the Common Stock in the aggregate amount of at least twenty million dollars
($20,000,000).  However, the Market Stand-Off shall continue to remain
in full force and effect following the lapse of the First Refusal
Right.

       

      
        	
                 
      

              	
                F.

              	
                SPECIAL TAX
      ELECTION

              

      

       

      The
acquisition of the Purchased Shares may result in adverse tax consequences which
may be avoided or mitigated by filing an election under Code
Section 83(b).  Such election must be filed within thirty (30)
days after the date of this Agreement.  A description of the tax
consequences applicable to the acquisition of the Purchased Shares and the form
for making the Code Section 83(b) election are set forth in
Exhibit II.  OPTIONEE SHOULD CONSULT WITH HIS OR
HER TAX ADVISOR TO DETERMINE THE TAX CONSEQUENCES OF ACQUIRING THE PURCHASED
SHARES AND THE ADVANTAGES AND DISADVANTAGES OF FILING THE CODE
SECTION 83(b) ELECTION.  OPTIONEE ACKNOWLEDGES THAT IT IS
OPTIONEE'S SOLE RESPONSIBILITY, AND NOT THE CORPORATION'S, TO FILE A TIMELY
ELECTION UNDER CODE SECTION 83(b), EVEN IF OPTIONEE REQUESTS THE
CORPORATION OR ITS REPRESENTATIVES TO MAKE THIS FILING ON HIS OR HER
BEHALF.

       

      
        	
                 
      

              	
                G.

              	
                GENERAL
      PROVISIONS

              

      

       

      1.            
Assignment.  The
Corporation may assign the Repurchase Right and/or the First Refusal Right to
any person or entity selected by the Board, including (without limitation) one
or more stockholders of the Corporation.

       

      2.            
At
Will Employment.  Nothing in this Agreement or in the Plan
shall confer upon Optionee any right to continue in Service for any period of
specific duration or interfere with or otherwise restrict in any way the rights
of the Corporation (or any Parent or Subsidiary employing or retaining
Optionee) or of Optionee, which rights are hereby expressly reserved by
each, to terminate Optionee's Service at any time for any reason, with or
without cause.

       

      3.            
Notices.  Any
notice required to be given under this Agreement shall be in writing and shall
be deemed effective upon personal delivery or upon deposit in the U.S. mail,
registered or certified, postage prepaid and properly addressed to the party
entitled to such notice at the address indicated below such party's signature
line on this Agreement or at such other address as such party may designate by
ten (10) days advance written notice under this paragraph to all other parties
to this Agreement.

      
        
           

        

        
          - 7 -

          
            

          

        

        
           

        

      

       

      4.            
No
Waiver.  The failure of the Corporation in any instance to
exercise the Repurchase Right or the First Refusal Right shall not constitute a
waiver of any other repurchase rights and/or rights of first refusal that may
subsequently arise under the provisions of this Agreement or any other agreement
between the Corporation and Optionee.  No waiver of any breach or
condition of this Agreement shall be deemed to be a waiver of any other or
subsequent breach or condition, whether of like or different
nature.

       

      5.            
Cancellation
of Shares.  If the Corporation shall make available, at the
time and place and in the amount and form provided in this Agreement, the
consideration for the Purchased Shares to be repurchased in accordance with the
provisions of this Agreement, then from and after such time, the person from
whom such shares are to be repurchased shall no longer have any rights as a
holder of such shares (other than the right to receive payment of such
consideration in accordance with this Agreement).  Such shares shall
be deemed purchased in accordance with the applicable provisions hereof, and the
Corporation shall be deemed the owner and holder of such shares, whether or not
the certificates therefor have been delivered as required by this
Agreement.

       

      
        	
                 
      

              	
                H.

              	
                MISCELLANEOUS
      PROVISIONS

              

      

       

      1.            
Optionee
Undertaking.  Optionee hereby agrees to take whatever
additional action and execute whatever additional documents the Corporation may
deem necessary or advisable in order to carry out or effect one or more of the
obligations or restrictions imposed on either Optionee or the Purchased Shares
pursuant to the provisions of this Agreement.

       

      2.            
Agreement
is Entire Contract.  This Agreement constitutes the entire
contract between the parties hereto with regard to the subject matter
hereof.  This Agreement is made pursuant to the provisions of the Plan
and shall in all respects be construed in conformity with the terms of the
Plan.

       

      3.            
Governing
Law.  This Agreement shall be governed by, and construed in
accordance with, the laws of the State of California without resort to that
State's conflict-of-laws rules.

       

      4.            
Counterparts.  This
Agreement may be executed" in counterparts, each of which shall be deemed to be
an original, but all of which together shall constitute one and the same
instrument.

       

      5.            
Successors
and Assigns.  The provisions of this Agreement shall inure to
the benefit of, and be binding upon, the Corporation and its successors and
assigns and upon Optionee, Optionee's permitted assigns and the legal
representatives, heirs and legatees of Optionee's estate, whether or not any
such person shall have become a party to this Agreement and have agreed in
writing to join herein and be bound by the terms hereof.

      
        
           

        

        
          - 8 -

          
            

          

        

        
           

        

      

       

      IN WITNESS WHEREOF, the
parties have executed this Agreement on the day and year first indicated
above.

      
 

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              	 
      	
                                                                                                      OCUSENSE,
      INC.

                                                                                                    
	 	 	 
	 	 	 
	 
      	By:	 
      
	 	 	 
	 
      	Title:	 
      
	 	 	 
	 	Address:	 
	 
      	 
      	 
      
	 	 	 
	 
      	 
      	
                                                                                                      ,
      OPTIONEE

                                                                                                    
	 	 	 
	 	 	 
	 
      	Address:	 
      
	 	 	 
	 	 	 

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

        

          
            
               

            

            
              - 9 -

              
                

              

            

            
               

            

          

        

         

      

      SPOUSAL
ACKNOWLEDGMENT

       

      The
undersigned spouse of Optionee has read and hereby approves the foregoing Stock
Purchase Agreement.  In consideration of the Corporation's granting
Optionee the right to acquire the Purchased Shares in accordance with the terms
of such Agreement, the undersigned hereby agrees to be irrevocably bound by all
the terms of such Agreement, including (without limitation) the right of the
Corporation (or its assigns) to purchase any Purchased Shares in which Optionee
is not vested at time of his or her cessation of Service.

      

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	 
      	 
      	 
      
	 
      	
                                        OPTIONEE'S
      SPOUSE

                                      
	 	 	 
	 
      	
                                        Address:

                                      	 
      
	 
      	 
      	 
      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

        
          
             

          

          
            - 10 -

            
              

            

          

          
             

          

        

      

       

      EXHIBIT I

       

      ASSIGNMENT
SEPARATE FROM CERTIFICATE

       

      FOR VALUE RECEIVED
___________________ hereby sell(s), assign(s) and transfers) unto OcuSense, Inc.
(the "Corporation"),_______________(_________) shares of the Common Stock of the
Corporation standing in his or her name on the books of the Corporation
represented by Certificate No. ________________ herewith and do(es) hereby
irrevocably constitute and appoint_____________________ Attorney to transfer the
said stock on the books of the Corporation with full power of substitution in
the premises.

       

      
        
          
            	
                    Dated:

                  	 
      	 
      

          

        

      

       

      

      
        
          
            	 
      	 
      
	 
      	
                    Signature

                  

          

        

      

       

       

       

       

      Instruction: Please do not
fill in any blanks other than the signature line.  Please sign exactly
as you would like your name to appear on the issued stock
certificate.  The purpose of this assignment is to enable the
Corporation to exercise the Repurchase Right without requiring additional
signatures on the part of Optionee.

      
        
           

        

        
          - 11 -

          
            

          

        

        
           

        

      

      EXHIBIT
II

       

      FEDERAL
INCOME TAX CONSEQUENCES AND

       

      SECTION
83(b) TAX ELECTION

       

      I.             
Federal
Income Tax Consequences and Section 83(b) Election For Exercise of
Non-Statutory Option.  If the Purchased Shares are acquired
pursuant to the exercise of a Non-Statutory Option, as specified in the Grant
Notice, then under Code Section 83, the excess of the Fair Market Value of
the Purchased Shares on the date any forfeiture restrictions applicable to such
shares lapse over the Exercise Price paid for those shares will be reportable as
ordinary income on the lapse date.  For this purpose, the term
"forfeiture restrictions" includes the right of the Corporation to repurchase
the Purchased Shares pursuant to the Repurchase Right.  However,
Optionee may elect under Code Section 83(b) to be taxed at the time
the Purchased Shares are acquired, rather than when and as such Purchased Shares
cease to be subject to such forfeiture restrictions.  Such election
must be filed with the Internal Revenue Service within thirty (30) days after
the date of the Agreement.  Even if the Fair Market Value of the
Purchased Shares on the date of the Agreement equals the Exercise Price paid
(and thus no tax is payable), the election must be made to avoid adverse tax
consequences in the future.  The form for making this election is
attached as part of this exhibit.  FAILURE TO MAKE THIS FILING WITHIN
THE APPLICABLE THIRTY (30>DAY PERIOD WILL RESULT IN THE RECOGNITION OF
ORDINARY INCOME BY OPTIONEE AS THE FORFEITURE RESTRICTIONS
LAPSE.

       

      II.            
Federal
Income Tax Consequences and Conditional Section 83(b) Election For
Exercise of Incentive Option.  If the Purchased Shares are
acquired pursuant to the exercise of an Incentive Option, as specified in the
Grant Notice, then the following tax principles shall be applicable to the
Purchased Shares:

       

      (i)       
For regular tax purposes, no taxable income will be recognized at the time the
Option is exercised.

       

      (ii)     
The excess of (a) the Fair Market Value of the Purchased Shares on the date
the Option is exercised or (if later) on the date any forfeiture restrictions
applicable to the Purchased Shares lapse over (b) the Exercise Price paid
for the Purchased Shares will be includible in Optionee's taxable income for
alternative minimum tax purposes.

       

      (iii)     If
Optionee makes a disqualifying disposition of the Purchased Shares, then
Optionee will recognize ordinary income in the year of such disposition equal in
amount to the excess of (a) the Fair Market Value of the Purchased Shares
on the date the Option is exercised or (if later) on the date any forfeiture
restrictions applicable to the Purchased Shares lapse over (b) the Exercise
Price paid for the Purchased Shares.  Any additional gain recognized
upon the disqualifying disposition will be either short-term or long-term
capital gain depending upon the period for which the Purchased Shares are held
prior to the disposition.

      

        
          
             

          

          
            - 12 -

            
              

            

          

          
             

          

        

      

      
         

        (iv) For
purposes of the foregoing, the term "forfeiture restrictions" will include the
right of the Corporation to repurchase the Purchased Shares pursuant to the
Repurchase Right.  The term "disqualifying disposition" means any sale
or other disposition1
of the Purchased Shares within two (2) years after the Grant Date or within one
(1) year after the exercise date of the Option.

         

      

      (v)     
In the absence of final Treasury Regulations relating to Incentive Options, it
is not certain whether Optionee may, in connection with the exercise of the
Option for any Purchased Shares at the time subject to forfeiture restrictions,
file a protective election under Code Section 83(b) which would limit
Optionee's ordinary income upon a disqualifying disposition to the excess of the
Fair Market Value of the Purchased Shares on the date the Option is exercised
over the Exercise Price paid for the Purchased Shares.  Accordingly,
such election if properly filed will only be allowed to the extent the final
Treasury Regulations permit such a protective election.

       

      (vi)    
The Code Section 83 (b) election will be effective in limiting the
Optionee's alternative minimum taxable income to the excess of the Fair Market
Value of the Purchased Shares at the time the Option is exercised over the
Exercise Price paid for those shares.

       

      Page 2 of
the attached form for making the election should be filed with any election made
in connection with the exercise of an Incentive Option.

       

       

       

      
 

      ________________

      1      Generally,
a disposition of shares purchased under an Incentive Option includes any
transfer of legal title, including a transfer by sale, exchange or gift, but
does not include a transfer to the Optionee's spouse, a transfer into joint
ownership with right of survivorship if Optionee remains one of the joint
owners, a pledge, a transfer by bequest or inheritance or certain tax-free
exchanges permitted under the Code.

      

        
          
             

          

          
            - 13 -

            
              

            

          

          
             

          

        

      

       

      SECTION
83(b) ELECTION

       

      This
statement is being made under Section 83(b) of the Internal Revenue
Code, pursuant to Treas. Reg. Section 1.83-2.

       

      
        	
                (1)

              	
                The
      taxpayer who performed the services
is:

              

      

       

      Name:

      Address:

      Taxpayer
Ident. No.:

       

      
        	
                (2)

              	
                The
      property with respect to which the election is being made is __________
      shares of the common stock of OcuSense,
Inc.

              

      

       

      
        	
                (3)

              	
                The
      property was issued on __________,
_____.

              

      

       

      
        	
                (4)

              	
                The
      taxable year in which the election is being made is the calendar year
      _____.

              

      

       

      
        	
                (5)

              	
                The
      property is subject to a repurchase right pursuant to which the issuer has
      the right to acquire the property at the lower of the purchase
      price paid per share or the fair market value per share, if for any reason
      taxpayer's service with the issuer terminates.  The issuer's
      repurchase right will lapse in a series of annual and monthly installments
      over a four (4)-year period ending on __________,
  20__.

              

      

       

      
        	
                (6)

              	
                The
      fair market value at the time of transfer (determined without regard to
      any restriction other than a restriction which by its terms will never
      lapse) is $__________ per
share.

              

      

       

      
        	
                (7)

              	
                The
      amount paid for such property is $__________ per
  share.

              

      

       

      
        	
                (8)

              	
                A
      copy of this statement was furnished to OcuSense, Inc. for whom taxpayer
      rendered the services underlying the transfer of
  property.

              

      

       

      
        	
                (9)

              	
                This
      statement is executed on __________,
_____.

              

      

       

       

      
        
          	
                  Spouse
      (if any)

                	
                  Taxpayer

                

        

      

       

      This
election must be filed with the Internal Revenue Service Center with which
taxpayer files his or her Federal income tax returns and must be made within
thirty (30) days after the execution date of the Stock Purchase
Agreement.  This filing should be made by registered or certified
mail, return receipt requested.  Optionee must retain two (2) copies
of the completed form for filing with his or her Federal and state tax returns
for the current tax year and an additional copy for his or her
records.

      
        
           

        

        
          - 14 -

          
            

          

        

        
           

        

      

       

      The
property described in the above Section 83(b) election is comprised of
shares of common stock acquired pursuant to the exercise of an incentive stock
option under Section 422 of the Internal Revenue Code (the
"Code").  Accordingly, it is the intent of the Taxpayer to utilize
this election to achieve the following tax results:

       

      1.            
One purpose of this election is to have the alternative minimum taxable income
attributable to the purchased shares measured by the amount by which the fair
market value of such shares at the time of their transfer to the Taxpayer
exceeds the purchase price paid for the shares.  In the absence of
this election, such alternative minimum taxable income would be measured by the
spread between the fair market value of the purchased shares and the purchase
price which exists on the various lapse dates in effect for the forfeiture
restrictions applicable to such shares.

       

      2.            
Section 421(a)(l) of the Code expressly excludes from income any excess of
the fair market value of the purchased shares over the amount paid for such
shares.  Accordingly, this election is also intended to be effective
in the event there is a "disqualifying disposition" of the shares, within the
meaning of Section 421(b) of the Code, which would otherwise render
the provisions of Section 83(a) of the Code applicable at that
time.  Consequently, the Taxpayer hereby elects to have the amount of
disqualifying disposition income measured by the excess of the fair market value
of the purchased shares on the date of transfer to the Taxpayer over the amount
paid for such shares.  Since Section 421 (a) presently
applies to the shares which are the subject of this
Section 83(b) election, no taxable income is actually recognized for
regular tax purposes at this time, and no income taxes are payable, by the
Taxpayer as a result of this election.  The foregoing election is to
be effective to the full extent permitted under the Code.

       

      THIS
PAGE 2 IS TO BE ATTACHED TO ANY SECTION 83(b) ELECTION FILED IN CONNECTION
WITH THE EXERCISE OF AN INCENTIVE STOCK OPTION UNDER THE FEDERAL TAX
LAWS.

      
        
           

        

        
          - 15 -

          
            

          

        

        
           

        

      

      APPENDIX

       

      The
following definitions shall be in effect under the Agreement:

       

      A.          
 Agreement
shall mean this Stock Purchase Agreement.

       

      B.            
Board
shall mean the Corporation's Board of Directors.

       

      C.            
Change in
Control shall mean a change in ownership or control of the Corporation
effected through any of the following transactions:

       

      (i)      
a merger, consolidation or other reorganization approved by the Corporation's
stockholders, unless securities
representing more than fifty percent (50%) of the total combined voting power of
the voting securities of the successor corporation are immediately thereafter
beneficially owned, directly or indirectly and in substantially the same
proportion, by the persons who beneficially owned the Corporation's outstanding
voting securities immediately prior to such transaction, or

       

      (ii)      
a stockholder-approved sale, transfer or other disposition of all or
substantially all of the Corporation's assets in complete liquidation or
dissolution of the Corporation, or

       

      (iii)    
the acquisition, directly or indirectly by any person or related group of
persons (other than the Corporation or a person that directly or indirectly
controls, is controlled by, or is under common control with, the Corporation),
of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act)
of securities possessing more than fifty percent (50%) of the total combined
voting power of the Corporation's outstanding securities pursuant to a tender or
exchange offer made directly to the Corporation's stockholders.

       

      In no
event shall any public offering of the Corporation's securities be deemed to
constitute a Change in Control.

       

      D.            
Code
shall mean the Internal Revenue Code of 1986, as amended.

       

      E.            
Common
Stock shall mean the Corporation's common stock.

       

      F.            
Corporation
shall mean OcuSense, Inc., a Delaware corporation, and any successor corporation
to all or substantially all of the assets or voting stock of OcuSense, Inc.
which shall by appropriate action adopt the Plan.

       

      G.            
Disposition
Notice shall have the meaning assigned to such term in
Paragraph E.2.

       

      H.           
 Exercise
Price shall have the meaning assigned to such term in
Paragraph A.1.

       

      I.            
Fair
Market Value per share of Common Stock on any relevant date shall be
determined in accordance with the following provisions:

      
        
           

        

        
          - 16 -

          
            

          

        

        
           

        

      

       

      (i)   
 If the Common Stock is at the time traded on the Nasdaq National Market,
then the Fair Market Value shall be the closing selling price per share of
Common Stock on the date in question, as such price is reported by the National
Association of Securities Dealers on the Nasdaq National Market and published in
The Wall Street Journal.  If there is no closing selling price for the
Common Stock on the date in question, then the Fair Market Value shall be the
closing selling price on the last preceding date for which such quotation
exists.

       

      (ii)   
If the Common Stock is at the time listed on any Stock Exchange, then the Fair
Market Value shall be the closing selling price per share of Common Stock on the
date in question on the Stock Exchange determined by the Plan Administrator to
be the primary market for the Common Stock, as such price is officially quoted
in the composite tape of transactions on such exchange and published in The Wall Street
Journal.  If there is no closing selling price for the Common
Stock on the date in question, then the Fair Market Value shall be the closing
selling price on the last preceding date for which such quotation
exists.

       

      (iii)  
If the Common Stock is at the time neither listed on any Stock Exchange nor
traded on the Nasdaq National Market, then the Fair Market Value shall be
determined by the Plan Administrator after taking into account such factors as
the Plan Administrator shall deem appropriate.

       

      J.             
First
Refusal Right shall mean the right granted to the Corporation in
accordance with Article E.

       

      K.            
Grant
Date shall have the meaning assigned to such term in
Paragraph A.1.

       

      L.            
Grant
Notice shall mean the Notice of Grant of Stock Option pursuant to which
Optionee has been informed of the basic terms of the Option.

       

      M.           
Incentive
Option shall mean an option which satisfies the requirements of Code
Section 422.

       

      N.           
Market
Stand-Off shall mean the market stand-off restriction specified in
Paragraph C.3.

       

      O.           
1933
Act shall mean the Securities Act of 1933, as amended.

       

      P.            
1934
Act shall mean the Securities Exchange Act of 1934, as
amended.

       

      Q.           
Non-Statutory
Option shall mean an option not intended to satisfy the requirements of
Code Section 422.

       

      R.            
Option
shall have the meaning assigned to such term in Paragraph A.1.

       

      S.            
Option
Agreement shall mean all agreements and other documents evidencing the
Option.

       

      T.            
Optionee
shall mean the person to whom the Option is granted under the
Plan.

      
        
           

        

        
          - 17 -

          
            

          

        

        
           

        

      

       

      U.            
Owner
shall mean Optionee and all subsequent holders of the Purchased Shares who
derive their chain of ownership through a Permitted Transfer from
Optionee.

       

      V.           
Parent
shall mean any corporation (other than the Corporation) in an unbroken chain of
corporations ending with the Corporation, provided each corporation in the
unbroken chain (other than the Corporation) owns, at the time of the
determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

       

      W.           Permitted
Transfer shall mean (i) a gratuitous transfer of the Purchased
Shares, provided and only if Optionee obtains the Corporation's prior written
consent to such transfer, (ii) a transfer of title to the Purchased Shares
effected pursuant to Optionee's will or the laws of inheritance following
Optionee's death or (iii) a transfer to the Corporation in pledge as
security for any purchase-money indebtedness incurred by Optionee in connection
with the acquisition of the Purchased Shares.

       

      X.           
 Plan
shall mean the Corporation's 2003 Stock Option/Stock Issuance Plan.

       

      Y.            
Plan
Administrator shall mean either the Board or a committee of the Board
acting in its capacity as administrator of the Plan.

       

      Z.            
Prior
Purchase Agreement shall have the meaning assigned to such term in
Paragraph D.4.

       

      AA.         Purchased
Shares shall have the meaning assigned to such term in
Paragraph A.I.

       

      AB.         
Recapitalization
shall mean any stock split, stock dividend, recapitalization, combination of
shares, exchange of shares or other change affecting the Corporation's
outstanding Common Stock as a class without the Corporation's receipt of
consideration.

       

      AC.        
 Reorganization
shall mean any of the following transactions:

       

      (i)    
a merger or consolidation in which the Corporation is not the surviving
entity,

       

      (ii)   
a sale, transfer or other disposition of all or substantially all of the
Corporation's assets,

       

      (iii)  
a reverse merger in which the Corporation is the surviving entity but in which
the Corporation's outstanding voting securities are transferred in whole or in
part to a person or persons different from the persons holding those securities
immediately prior to the merger, or

       

      (iv)  
any transaction effected primarily to change the state in which the Corporation
is incorporated or to create a holding company structure.

       

      AD.         Repurchase
Price shall mean the lower of (i) the
Exercise Price or (ii) the Fair Market Value per share of Common Stock on
the date of Optionee's cessation of Service.

      
        
           

        

        
          - 18 -

          
            

          

        

        
           

        

      

       

      AE.          Repurchase
Right shall mean the right granted to the Corporation in accordance with
Article D.

       

      AF.          SEC
shall mean the Securities and Exchange Commission.

       

      AG.          Service
shall mean the Optionee's performance of services for the Corporation (or any
Parent or Subsidiary) in the capacity of an employee, subject to the control and
direction of the employer entity as to both the work to be performed and the
manner and method of performance, a non-employee member of the board of
directors or an independent consultant.

       

      AH.         Subsidiary
shall mean any corporation (other than the Corporation) in an unbroken chain of
corporations beginning with the Corporation, provided each corporation (other
than the last corporation) in the unbroken chain owns, at the time of the
determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

       

      AI.           Target
Shares shall have the meaning assigned to such term in
Paragraph E.2.

       

      AJ.           Vesting
Schedule shall mean the vesting schedule specified in the Grant Notice
pursuant to which the Optionee is to vest in the Option Shares in a series of
installments over his or her period of Service.

       

      AK.         Unvested
Shares shall have the meaning assigned to such term in
Paragraph D.I.

      
        
           

        

        
          - 19 -

          
            

          

        

        
           

        

      

      
        ADDENDUM
TO

        STOCK
PURCHASE AGREEMENT

         

        The
following provisions are hereby incorporated into, and are hereby made a part
of, that certain Stock Purchase Agreement (the "Purchase Agreement") by and
between OcuSense, Inc. (the "Corporation") and _____________________________
("Optionee") evidencing the shares of Common Stock purchased on this date by
Optionee under the Corporation's 2003 Stock Option/Stock Issuance Plan, and such
provisions shall be effective immediately.  All capitalized terms in
this Addendum, to the extent not otherwise defined herein, shall have the
meanings assigned to such terms in the Purchase Agreement.

         

        INVOLUNTARY
TERMINATION FOLLOWING

        A
CHANGE IN CONTROL

         

        1.           
 To the extent the Repurchase Right is assigned to the successor
corporation (or parent thereof) in connection with a Change in Control or
otherwise continued in full force and effect pursuant to the terms of the Change
in Control transaction, no accelerated vesting of the Purchased Shares shall
occur upon that Change in Control, and the Repurchase Right shall continue to
remain in full force and effect in accordance with the provisions of the
Purchase Agreement.  Optionee shall, over his or her period of Service
following such Change in Control, continue to vest in the Purchased Shares in
one or more installments in accordance with the provisions of the Purchase
Agreement.  However, upon an Involuntary Termination of Optionee's
Service within eighteen (18) months following such Change in Control, the
Repurchase Right shall terminate automatically, and all the Purchased Shares
shall immediately vest in full at that time.  Any unvested escrow
account maintained on Optionee's behalf pursuant to Paragraph D.6 of the
Purchase Agreement shall also vest at the time of such Involuntary Termination
and shall be paid to Optionee promptly thereafter.

         

        2.             
For purposes of this Addendum, the following definitions shall be in
effect:

         

        An Involuntary Termination shall
mean the termination of Optionee's Service by reason of:

         

        (i)    
Optionee's involuntary dismissal or discharge by the Corporation for reasons
other than for Misconduct, or

         

        (ii)   Optionee's
voluntary resignation following (A) a change in his or her position with
the Corporation (or Parent or Subsidiary employing Optionee) which
materially reduces his or her duties and responsibilities or the level of
management to which he or she reports, (B) a reduction in Optionee's level
of compensation (including base salary, fringe benefits and target bonus under
any corporate-performance based incentive programs) by more than fifteen percent
(15%) or (C) a relocation of Optionee's place of employment by more than
fifty (50) miles, provided and only if such change, reduction or relocation is
effected by the Corporation without Optionee's consent.

        
          
             

          

          
            - 20
-

            
              

            

          

          
             

          

        

         

        Misconduct shall mean the
termination of Optionee's Service by reason of Optionee's commission of any act
of fraud, embezzlement or dishonesty, any unauthorized use or disclosure by
Optionee of confidential information or trade secrets of the Corporation (or any
Parent or Subsidiary), or any other intentional misconduct by Optionee adversely
affecting the business or affairs of the Corporation (or any Parent or
Subsidiary) in a material manner.  The foregoing definition shall not
in any way preclude or restrict the right of the Corporation (or any Parent or
Subsidiary) to discharge or dismiss Optionee or any other person in the Service
of the Corporation (or any Parent or Subsidiary) for any other acts or
omissions, but such other acts or omissions shall not be deemed, for purposes of
the Plan and this Addendum, to constitute grounds for termination for
Misconduct.

         

        IN WITNESS WHEREOF, OcuSense,
Inc. has caused this Addendum to be executed by its duly-authorized officer as
of the Effective Date specified below.

         

        
          
            
              
                
                  
                    
                      
                        
                          
                            	 
      	
                                    OCUSENSE,
      INC.

                                  
	 	 	 
	 
      	
                                    By:

                                  	 
      
	 	 	 
	 
      	
                                    Title:

                                  	 
      

                          

                        

                      

                    

                  

                

              

            

          

        

         

        
          

          
            
              
                
                  
                    
                      
                        	
                                EFFECTIVE
      DATE:

                              	
                                 

                              	 ,	 
      	 

                        
                          
                             

                          

                          
                            - 21
-

                            
                              

                            

                          

                          
                             

                          

                        

                      

                       

                    

                  

                

              

            

          

        

      

      OCUSENSE, INC.

       

      STOCK ISSUANCE
AGREEMENT

       

      AGREEMENT made as of this
_____ day of __________, _____ by and between OcuSense, Inc., a Delaware
corporation, and ____________________, Participant in the Corporation's 2003
Stock Option/Stock Issuance Plan.

       

      All
capitalized terms in this Agreement shall have the meaning assigned to them in
this Agreement or in the attached Appendix.

       

      
        	
                 
      

              	
                A.

              	
                PURCHASE
      OF SHARES

              

      

       

      1.            
Purchase.  Participant
hereby purchases ___________________ shares of Common Stock (the "Purchased
Shares") pursuant to the provisions of the Stock Issuance Program at the
purchase price of $_____________ per share (the "Purchase Price").

       

      2.            
Payment.  Concurrently
with the delivery of this Agreement to the Corporation, Participant shall pay
the Purchase Price for the Purchased Shares in cash or cash equivalent and shall
deliver a duly-executed blank Assignment Separate from Certificate (in the form
attached hereto as Exhibit I) with respect to the Purchased
Shares.

       

      3.            
Stockholder
Rights.  Until such time as the Corporation exercises the
Repurchase Right or the First Refusal Right, Participant (or any successor in
interest) shall have all stockholder rights (including voting, dividend and
liquidation rights) with respect to the Purchased Shares, subject, however, to
the transfer restrictions of Articles B and C.

       

      
        	
                 
      

              	
                B.

              	
                SECURITIES
      LAW COMPLIANCE

              

      

       

      1.            
Restricted
Securities.  The Purchased Shares have not been registered
under the 1933 Act and are being issued to Participant in reliance upon the
exemption from such registration provided by SEC Rule 701 for stock
issuances under compensatory benefit plans such as the
Plan.  Participant hereby confirms that Participant has been informed
that the Purchased Shares are restricted securities under the 1933 Act and may
not be resold or transferred unless the Purchased Shares are first registered
under the Federal securities laws or unless an exemption from such registration
is available.  Accordingly, Participant hereby acknowledges that
Participant is acquiring the Purchased Shares for investment purposes only and
not with a view to resale and is prepared to hold the Purchased Shares for an
indefinite period and that Participant is aware that SEC Rule 144 issued
under the 1933 Act which exempts certain resales of unrestricted securities is
not presently available to exempt the resale of the Purchased Shares from the
registration requirements of the 1933 Act.

       

      2.            
Disposition
of Purchased Shares.  Participant shall make no disposition of
the Purchased Shares (other than a Permitted Transfer) unless and until there is
compliance with all of the following requirements:

      
        
           

        

        
          - 1
-

          
            

          

        

        
           

        

      

       

      (i)    
Participant shall have provided the Corporation with a written summary of the
terms and conditions of the proposed disposition.

       

      (ii)   
Participant shall have complied with all requirements of this Agreement
applicable to the disposition of the Purchased Shares.

       

      (iii)  
Participant shall have provided the Corporation with written assurances, in form
and substance satisfactory to the Corporation, that (a) the proposed
disposition does not require registration of the Purchased Shares under the 1933
Act or (b) all appropriate action necessary for compliance with the
registration requirements of the 1933 Act or any exemption from registration
available under the 1933 Act (including Rule 144) has been
taken.

       

      The
Corporation shall not be required
(i) to transfer on its books any Purchased Shares which have been sold or
transferred in violation of the provisions of this Agreement or (ii) to
treat as the owner of the Purchased Shares, or otherwise to accord voting,
dividend or liquidation rights to, any transferee to whom the Purchased Shares
have been transferred in contravention of this Agreement.

       

      3.             
Restrictive
Legends.  The stock certificates for the Purchased Shares shall
be endorsed with one or more of the following restrictive legends:

       

      "The
shares represented by this certificate have not been registered under the
Securities Act of 1933.  The shares may not be sold or offered for
sale in the absence of (a) an effective registration statement for the
shares under such Act, (b) a "no action" letter of the Securities and
Exchange Commission with respect to such sale or offer or (c) satisfactory
assurances to the Corporation that registration under such Act is not required
with respect to such sale or offer."

       

      "The
shares represented by this certificate are subject to certain repurchase rights
and rights of first refusal granted to the Corporation and accordingly may not
be sold, assigned, transferred, encumbered, or in any manner disposed of except
in conformity with the terms of a written agreement dated __________, 20___,
between the Corporation and the registered holder of the shares (or the
predecessor in interest to the shares).  A copy of such agreement is
maintained at the Corporation's principal corporate offices."

       

      
        	
                 
      

              	
                C.

              	
                TRANSFER
      RESTRICTIONS

              

      

       

      1.             
Restriction
on Transfer.  Except for any Permitted Transfer, Participant
shall not transfer, assign, encumber or otherwise dispose of any of the
Purchased Shares which are subject to the Repurchase Right, hi addition,
Purchased Shares which are released from the Repurchase Right shall not be
transferred, assigned, encumbered or otherwise disposed of in contravention of
the First Refusal Right or the Market Stand-Off.

      
        
           

        

        
          - 2
-

          
            

          

        

        
           

        

      

       

      2.            
Transferee
Obligations.  Each person (other than the Corporation) to whom
the Purchased Shares are transferred by means of a Permitted Transfer must, as a
condition precedent to the validity of such transfer, acknowledge in writing to
the Corporation that such person is bound by the provisions of this Agreement
and that the transferred shares are subject to (i) the Repurchase Right,
(ii) the First Refusal Right and (iii) the Market Stand-Off, to the
same extent such shares would be so subject if retained by
Participant.

       

      
        	
                 
      

              	
                3.

              	
                Market
      Stand-Off.

              

      

       

      (a)         In
connection with any underwritten public offering by the Corporation of its
equity securities pursuant to an effective registration statement filed under
the 1933 Act, including the Corporation's initial public offering, Owner shall
not sell, make any short sale of, loan, hypothecate, pledge, grant any option
for the purchase of, or otherwise dispose or transfer for value or otherwise
agree to engage in any of the foregoing transactions with respect to, any
Purchased Shares without the prior written consent of the Corporation or its
underwriters.  Such restriction (the "Market Stand-Off") shall be in
effect for such period of time from and after the effective date of the final
prospectus for the offering as may be requested by the Corporation or such
underwriters.  In no event, however, shall such period exceed one
hundred eighty (180) days, and the Market Stand-Off shall in no event be
applicable to any underwritten public offering effected more than two (2) years
after the effective date of the Corporation's initial public
offering.

       

      (b)         Owner
shall be subject to the Market Stand-Off provided and only if
the officers and directors of the Corporation are also subject to similar
restrictions.

       

      (c)         Any
new, substituted or additional securities which are by reason of any
Recapitalization or Reorganization distributed with respect to the Purchased
Shares shall be immediately subject to the Market Stand-Off, to the same extent
the Purchased Shares are at such time covered by such provisions.

       

      (d)         In
order to enforce the Market Stand-Off, the Corporation may impose stop-transfer
instructions with respect to the Purchased Shares until the end of the
applicable stand-off period.

       

      
        	
                 
      

              	
                D.

              	
                REPURCHASE
      RIGHT

              

      

       

      1.            
Grant.  The
Corporation is hereby granted the right (the "Repurchase Right"), exercisable at
any time during the sixty (60)-day period following the date Participant ceases
for any reason to remain in Service, to repurchase at the Repurchase Price any
or all of the Purchased Shares in which Participant is not, at the time of his
or her cessation of Service, vested in accordance with the provisions of the
Vesting Schedule set forth in Paragraph D.3 or the special vesting
acceleration provisions of Paragraph D.5 (such shares to be hereinafter
referred to as the "Unvested Shares").

       

      2.            
Exercise
of the Repurchase Right.  The Repurchase Right shall be
exercisable by written notice delivered to each Owner of the Unvested Shares
prior to the expiration of the sixty (60)-day exercise period.  The
notice shall indicate the number of Unvested Shares to be repurchased, the
Repurchase Price to be paid per share and the date on which the repurchase is to
be effected, such date to be not more than thirty (30) days after the date of
such notice.  The certificates representing the Unvested Shares to be
repurchased shall be delivered to the Corporation on the closing date specified
for the repurchase.  Concurrently with the receipt of such stock
certificates, the Corporation shall pay to Owner, in cash or cash equivalents
(including the cancellation of any purchase-money indebtedness), an amount equal
to the Repurchase Price for the Unvested Shares which are to be repurchased from
Owner.

      
        
           

        

        
          - 3
-

          
            

          

        

        
           

        

      

       

      3.            
Termination
of the Repurchase Right.  The Repurchase Right shall terminate
with respect to any Unvested Shares for which it is not timely exercised under
Paragraph D.2.  In addition, the Repurchase Right shall terminate
and cease to be exercisable with respect to any and all Purchased Shares in
which Participant vests in accordance with the following Vesting
Schedule:

       

      (i)    
Participant shall vest in twenty-five percent (25%) of the Purchased Shares, and
the Repurchase Right shall concurrently lapse with respect to those Purchased
Shares, upon Participant's completion of one (1) year of Service measured from
__________, _____.

       

      (ii)   Participant
shall vest in the remaining seventy-five percent (75%) of the Purchased Shares,
and the Repurchase Right shall concurrently lapse with respect to those
Purchased Shares, in a series of thirty-six (36) successive equal monthly
installments upon Participant's completion of each additional month of Service
over the thirty-six (36)-month period measured from the date on which the first
twenty-five percent (25%) of the Purchased Shares vests hereunder.

       

      All
Purchased Shares as to which the Repurchase Right lapses shall, however, remain
subject to (i) the First Refusal Right and (ii) the Market
Stand-Off.

       

      4.            
Recapitalization.  Any
new, substituted or additional securities or other property (including cash paid
other than as a regular cash dividend) which is by reason of any
Recapitalization distributed with respect to the Purchased Shares shall be
immediately subject to the Repurchase Right and any escrow requirements
hereunder, but only to the extent the Purchased Shares are at the time covered
by such right or escrow requirements.  Appropriate adjustments to
reflect such distribution shall be made to the number and/or class of Purchased
Shares subject to this Agreement and to the Repurchase Price per share to be
paid upon the exercise of the Repurchase Right in order to reflect the effect of
any such Recapitalization upon the Corporation's capital structure; provided, however,
that the aggregate Repurchase Price shall remain the same.

       

      
        	
                 
      

              	
                5.

              	
                Change
      in Control.

              

      

       

      (a)          The
Repurchase Right shall automatically terminate in its entirety, and all the
Purchased Shares shall vest in full, immediately prior to the consummation of
any Change in Control, except to the extent the Repurchase Right is to be
assigned to the successor corporation in such Change in Control or otherwise
continued in full force and effect pursuant to the terms of the Change in
Control transaction.

      
        
           

        

        
          - 4
-

          
            

          

        

        
           

        

      

       

      (b)         To
the extent the Repurchase Right remains in effect following a Change in Control,
such right shall apply to any new securities or other property (including any
cash payments) received in exchange for the Purchased Shares in consummation of
the Change in Control, but only to the extent the Purchased Shares are at the
time covered by such right.  Appropriate adjustments shall be made to
the Repurchase Price per share payable upon exercise of the Repurchase Right to
reflect the effect (if any) of the Change in Control upon the Corporation's
capital structure; provided, however,
that the aggregate Repurchase Price shall remain the same.  The new
securities or other property (including any cash payments) issued or distributed
with respect to the Purchased Shares in consummation of the Change in Control
shall be immediately deposited in escrow with the Corporation (or the successor
entity) and shall not be released from escrow until Participant vests in such
securities or other property in accordance with the same Vesting
Schedule in effect for the Purchased Shares.

       

      
        	
                 
      

              	
                E.

              	
                RIGHT
      OF FIRST REFUSAL

              

      

       

      1.            
Grant.  The
Corporation is hereby granted the right of first refusal (the "First Refusal
Right"), exercisable in connection with any proposed transfer of the Purchased
Shares in which Participant has vested in accordance with the provisions of
Article D.  For purposes of this • Article E, the term
"transfer" shall include any sale, assignment, pledge, encumbrance or other
disposition of the Purchased Shares intended to be made by Owner, but shall not
include any Permitted Transfer.

       

      2.            
Notice of
Intended Disposition.  In the event any Owner of Purchased
Shares in which Participant has vested desires to accept a bona fide third-party
offer for the transfer of any or all of such shares (the Purchased Shares
subject to such offer to be hereinafter referred to as the Target Shares"),
Owner shall promptly (i) deliver to the Corporation written notice (the
"Disposition Notice") of the terms of the offer, including the purchase price
and the identity of the third-party offerer, and (ii) provide satisfactory
proof that the disposition of the Target Shares to such third-party offeror
would not be in contravention of the provisions set forth in Articles B and
C.

       

      3.            
Exercise
of the First Refusal Right.  The Corporation shall, for a
period of twenty-five (25) days following receipt of the Disposition Notice,
have the right to repurchase any or all of the Target Shares subject to the
Disposition Notice upon the same terms as those specified therein or upon such
other terms (not materially different from those specified in the Disposition
Notice) to which Owner consents.  Such right shall be exercisable
by delivery of written notice (the "Exercise Notice") to Owner prior to the
expiration of the twenty-five (25)-day exercise period.  If such right
is exercised with respect to all the Target Shares, then the Corporation shall
effect the repurchase of such shares, including payment of the purchase price,
not more than five (5) business days after delivery of the Exercise Notice; and
at such time the certificates representing the Target Shares shall be delivered
to the Corporation.

       

      Should
the purchase price specified in the Disposition Notice be payable in property
other than cash or evidences of indebtedness, the Corporation shall have the
right to pay the purchase price in the form of cash equal in amount to the value
of such property.  If Owner and the Corporation cannot agree on such
cash value within ten (10) days after the Corporation's receipt of the
Disposition Notice, the valuation shall be made by an appraiser of recognized
standing selected by Owner and the Corporation or, if they cannot agree on an
appraiser within twenty (20) days after the Corporation's receipt of the
Disposition Notice, each shall select an appraiser of recognized standing and
the two (2) appraisers shall designate a third appraiser of recognized standing,
whose appraisal shall be determinative of such value.  The cost of
such appraisal shall be shared equally by Owner and the
Corporation.  The closing shall then be held on the later of (i) the
fifth (5th) business day following delivery of the Exercise Notice or
(ii) the fifth (5th) business day after such valuation shall have been
made.

      
        
           

        

        
          - 5
-

          
            

          

        

        
           

        

      

       

      4.            
Non-Exercise
of the First Refusal Right.  In the event the Exercise Notice
is not given to Owner prior to the expiration of the twenty-five (25)-day
exercise period, Owner shall have a period of thirty (30) days thereafter in
which to sell or otherwise dispose of the Target Shares to the third-party
offerer identified in the Disposition Notice upon terms (including the purchase
price) no more favorable to such third-party offerer than those specified
in the Disposition Notice; provided, however,
that any such sale or disposition must not be effected in contravention of the
provisions of Articles B and C.  The third-party offerer shall acquire
the Target Shares subject to the First Refusal Right and the provisions and
restrictions of Article B and Paragraph C.3, and any subsequent
disposition of the acquired shares must be effected in compliance with the terms
and conditions of such First Refusal Right and the provisions and restrictions
of Article B and Paragraph C.3.  In the event Owner does not
effect such sale or disposition of the Target Shares within the specified thirty
(30)-day period, the First Refusal Right shall continue to be applicable to any
subsequent disposition of the Target Shares by Owner until such right
lapses.

       

      5.            
Partial
Exercise of the First Refusal Right.  In the event the
Corporation makes a timely exercise of the First Refusal Right with respect to a
portion, but not all, of the Target Shares specified in the Disposition Notice,
Owner shall have the option, exercisable by written notice to the Corporation
delivered within five (5) business days after Owner's receipt of the Exercise
Notice, to effect the sale of the Target Shares pursuant to either of the
following alternatives:

       

      (i)    
sale or other disposition of all the Target Shares to the third-party offerer
identified in the Disposition Notice, but in full compliance with the
requirements of Paragraph E.4, as if the Corporation did not exercise the
First Refusal Right; or

       

      (ii)  
sale to the Corporation of the portion of the Target Shares which the
Corporation has elected to purchase, such sale to be effected in substantial
conformity with the provisions of Paragraph E.3.  The First
Refusal Right shall continue to be applicable to any subsequent disposition of
the remaining Target Shares until such right lapses.

       

      Owner's
failure to deliver timely notification to the Corporation shall be deemed to be
an election by Owner to sell the Target Shares pursuant to alternative
(i) above.

       

      
        	
                 
      

              	
                6.

              	
                Recapitalization/Reorganization.

              

      

       

      (a)         Any
new, substituted or additional securities or other property which is by reason
of any Recapitalization distributed with respect to the Purchased Shares shall
be immediately subject to the First Refusal Right, but only to the extent the
Purchased Shares are at the time covered by such right.

      
        
           

        

        
          - 6
-

          
            

          

        

        
           

        

      

       

      (b)         In
the event of a Reorganization, the First Refusal Right shall remain in full
force and effect and shall apply to the new capital stock or other property
received in exchange for the Purchased Shares in consummation of the
Reorganization, but only to the extent the Purchased Shares are at the time
covered by such right.

       

      7.            
Lapse.  The
First Refusal Right shall lapse upon the earliest to occur of
(i) the first date on which shares of the Common Stock are held of record
by more than five hundred (500) persons, (ii) a determination made by the
Board that a public market exists for the outstanding shares of Common Stock or
(iii) a firm commitment underwritten public offering, pursuant to an
effective registration statement under the 1933 Act, covering the offer and sale
of the Common Stock in the aggregate amount of at least twenty million dollars
($20,000,000).  However, the Market Stand-Off shall continue to remain
in full force and effect following the lapse of the First Refusal
Right.

       

      
        	
                 
      

              	
                F.

              	
                SPECIAL
      TAX ELECTION

              

      

       

      1.            
Section 83(b) Election.  Under
Code Section 83, the excess of the Fair Market Value of the Purchased
Shares on the date any forfeiture restrictions applicable to such shares lapse
over the Purchase Price paid for those shares will be reportable as ordinary
income on the lapse date.  For this purpose, the term "forfeiture
restrictions" includes the right of the Corporation to repurchase the Purchased
Shares pursuant to the Repurchase Right.  Participant may elect under
Code Section 83(b) to be taxed at the time the Purchased Shares are
acquired, rather than when and as such Purchased Shares cease to be subject to
such forfeiture restrictions.  Such election must be filed with the
Internal Revenue Service within thirty (30) days after the date of this
Agreement.  Even if the Fair Market Value of the Purchased Shares on
the date of this Agreement equals the Purchase Price paid (and thus no tax is
payable), the election must be made to avoid adverse tax consequences in the
future.

       

      THE
FORM FOR MAKING THIS ELECTION IS ATTACHED AS EXHIBIT II
HERETO.  PARTICIPANT UNDERSTANDS THAT FAILURE TO MAKE THIS FILING
WITHIN THE APPLICABLE THIRTY (30)-DAY PERIOD WILL RESULT IN THE RECOGNITION OF
ORDINARY INCOME AS THE FORFEITURE RESTRICTIONS LAPSE.

       

      2.            
FILING
RESPONSIBILITY.  PARTICIPANT ACKNOWLEDGES
THAT IT IS PARTICIPANT'S SOLE RESPONSIBILITY, AND NOT THE CORPORATION'S, TO FILE
A TIMELY ELECTION UNDER CODE SECTION 83(b), EVEN IF PARTICIPANT REQUESTS THE
CORPORATION OR ITS REPRESENTATIVES TO MAKE THIS FILING ON HIS OR HER
BEHALF.

       

      
        	
                 
      

              	
                G.

              	
                GENERAL
      PROVISIONS

              

      

       

      1.            
Assignment.  The
Corporation may assign the Repurchase Right and/or the First Refusal Right to
any person or entity selected by the Board, including (without limitation) one
or more stockholders of the Corporation.

      
        
           

        

        
          - 7
-

          
            

          

        

        
           

        

      

       

      2.            
At
Will Employment.  Nothing in this Agreement or in the Plan
shall confer upon Participant any right to continue in Service for any period of
specific duration or interfere with or otherwise restrict in any way the rights
of the Corporation (or any Parent or Subsidiary employing or retaining
Participant) or of Participant, which rights are hereby expressly reserved by
each, to terminate Participant's Service at any time for any reason, with or
without cause.

       

      3.            
Notices.  Any
notice required to be given under this Agreement shall be in writing and shall
be deemed effective upon personal delivery or upon deposit in the U.S. mail,
registered or certified, postage prepaid and properly addressed to the party
entitled to such notice at the address indicated below such party's signature
line on this Agreement or at such other address as such party may designate by
ten (10) days advance written notice under this paragraph to all other parties
to this Agreement.

       

      4.            
No
Waiver.  The failure of the Corporation in any instance to
exercise the Repurchase Right or the First Refusal Right shall not constitute a
waiver of any other repurchase rights and/or rights of first refusal that may
subsequently arise under the provisions of this Agreement or any other agreement
between the Corporation and Participant.  No waiver of any breach or
condition of this Agreement shall be deemed to be a waiver of any other or
subsequent breach or condition, whether of like or different
nature.

       

      5.            
Cancellation
of Shares.  If the Corporation shall make available, at the
time and place and in the amount and form provided in this Agreement, the
consideration for the Purchased Shares to be repurchased in accordance with the
provisions of this Agreement, then from and after such time, the person from
whom such shares are to be repurchased shall no longer have any rights as a
holder of such shares (other than the right to receive payment of such
consideration in accordance with this Agreement).  Such shares shall
be deemed purchased in accordance with the applicable provisions hereof, and the
Corporation shall be deemed the owner and holder of such shares, whether or not
the certificates therefor have been delivered as required by this
Agreement.

       

      
        	
                 
      

              	
                H.

              	
                MISCELLANEOUS
      PROVISIONS

              

      

       

      1.            
Governing
Law.  This Agreement shall be governed by, and construed in
accordance with, the laws of the State of California without resort to that
State's conflict-of-laws rules.

       

      2.            
Participant
Undertaking.  Participant hereby agrees to take whatever
additional action and execute whatever additional documents the Corporation may
deem necessary or advisable in order to carry out or effect one or more of the
obligations or restrictions imposed on either Participant or the Purchased
Shares pursuant to the provisions of this Agreement.

       

      3.            
Agreement
is Entire Contract.  This Agreement constitutes the entire
contract between the parties hereto with regard to the subject matter
hereof.  This Agreement is made pursuant to the provisions of the Plan
and shall in all respects be construed in conformity with the terms of the
Plan.

      
        
           

        

        
          - 8
-

          
            

          

        

        
           

        

      

       

      4.            
Counterparts.  This
Agreement may be executed in counterparts, each of which shall be deemed to be
an original, but all of which together shall constitute one and the same
instrument.

       

      5.            
Successors
and Assigns.  The provisions of this Agreement shall inure to
the benefit of, and be binding upon, the Corporation and its successors and
assigns and upon Participant, Participant's assigns and the legal
representatives, heirs and legatees of Participant's estate, whether or not any
such person shall have become a party to this Agreement and have agreed in
writing to join herein and be bound by the terms hereof.

       

      IN WITNESS WHEREOF, the
parties have executed this Agreement on the day and year first indicated
above.

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	 
      	
                                                    OCUSENSE,
      INC.

                                                  
	 	 	 
	 	 	 
	 
      	
                                                    By:

                                                  	 
      
	 	 	 
	 
      	
                                                    Title:

                                                  	 
      
	 	 	 
	 
      	
                                                    Address:

                                                  	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                                                     

                                                  	
                                                    ,
      PARTICIPANT

                                                  
	 	 	 
	 
      	
                                                    Address:

                                                  	 
      
	 	 	 

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

        
          
             

          

          
            - 9
-

            
              

            

          

          
             

          

        

      

       

      SPOUSAL
ACKNOWLEDGMENT

       

      The
undersigned spouse of Participant has read and hereby approves the foregoing
Stock Issuance Agreement.  In consideration of the Corporation's
granting Participant the right to acquire the Purchased Shares in accordance
with the terms of such Agreement, the undersigned hereby agrees to be
irrevocably bound by all the terms of such Agreement, including (without
limitation) the right of the Corporation (or its assigns) to purchase any
Purchased Shares in which Participant is not vested at the time of his or her
cessation of Service.

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	 
      	 
      	 
      
	 
      	
                                    PARTICIPANT'S
      SPOUSE

                                  
	 	 	 
	 
      	
                                    Address:

                                  	 
      
	 
      	 
      	 
      

                          

                        

                      

                    

                  

                

              

            

          

          
            
               

            

            
              - 10
-

              
                

              

            

            
               

            

          

        

         

      

      EXHIBIT
I

       

      ASSIGNMENT
SEPARATE FROM CERTIFICATE

       

      FOR VALUE
RECEIVED __________ hereby sell(s), assign(s) and transfers) unto OcuSense, Inc.
(the "Corporation"), ______________ (_____) shares of the Common Stock of the
Corporation standing in his or her name on the books of the Corporation
represented by Certificate No. __________ herewith and do(es) hereby
irrevocably constitute and appoint ___________ Attorney to transfer the said
stock on the books of the Corporation with full power of substitution in the
premises.

       

      
        
          
            
              
                
                  	
                          Dated:

                        	 
      	 

                

              

            

          

        

      

       

      

      
        
          
            
              	 
      	 
      
	 
      	
                      Signature

                    

            

          

        

      

       

       

       

       

      Instruction: Please do not
fill in any blanks other than the signature line. Please sign exactly as you
would like your name to appear on the issued stock certificate.  The
purpose of this assignment is to enable the Corporation to exercise the
Repurchase Right without requiring additional signatures on the part of
Participant.

      
        
           

        

        
          - 11
-

          
            

          

        

        
           

        

      

      EXHIBIT
II

       

      SECTION
83(b) TAX ELECTION

      
        
           

        

        
          - 12
-

          
            

          

        

        
           

        

      

      SECTION
83(b) TAX ELECTION

       

      This
statement is being made under Section 83(b) of the Internal Revenue
Code, pursuant to Treas. Reg. Section 1.83-2.

       

      
        	
                (1)

              	
                The
      taxpayer who performed the services
is:

              

      

       

      Name:

      Address:

      Taxpayer
Ident. No.:

       

      (2)           The
property with respect to which the election is being made is __________shares of
the common stock of OcuSense, Inc.

       

      (3)           The
property was issued on ___________, _____.

       

      (4)           The
taxable year in which the election is being made is the calendar year
_____.

       

      (5)           The
property is subject to a repurchase right pursuant to which the issuer has the
right to acquire the property at the lower of the purchase price
paid per share or the fair market value per share, if for any reason taxpayer's
service with the issuer terminates.  The issuer's repurchase right
will lapse in a series of annual and monthly installments over a four (4)-year
period ending on ___________, 20___.

       

      (6)           The
fair market value at the time of transfer (determined without regard to any
restriction other than a restriction which by its terms will never
lapse) is $_____ per share.

       

      (7)           The
amount paid for such property is $_____ per share.

       

      (8)           A
copy of this statement was furnished to OcuSense, Inc. for whom taxpayer
rendered the services underlying the transfer of property.

       

      (9)           This
statement is executed on ___________, _____.

       

       

      
        
          
            	
                    Spouse
      (if any)

                  	
                    Taxpayer

                  

          

        

      

       

      This
election must be filed with the Internal Revenue Service Center with which
taxpayer files his or her Federal income tax returns and must be made within
thirty (30) days after the execution date of the Stock Issuance
Agreement.  This filing should be made by registered or certified
mail, return receipt requested.  Participant must retain two (2)
copies of the completed form for filing with his or her Federal and state tax
returns for the current tax year and an additional copy for his or her
records.

      
        
           

        

        
          - 13
-

          
            

          

        

        
           

        

      

      EXHIBIT
III

       

      2003
STOCK OPTION/STOCK ISSUANCE PLAN

      
        
           

        

        
          - 14
-

          
            

          

        

        
           

        

      

      APPENDIX

       

      The
following definitions shall be in effect under the Agreement:

       

      
        	
                 
      

              	
                A.

              	
                Agreement
      shall mean this Stock Issuance
Agreement.

              

      

       

      B.           
Board
shall mean the Corporation's Board of Directors.

       

      C.            
Change in
Control shall mean a change in ownership or control of the Corporation
effected through any of the following transactions:

       

      (i)    
a merger, consolidation or other reorganization approved by the Corporation's
stockholders, unless securities
representing more than fifty percent (50%) of the total combined voting power of
the voting securities of the successor corporation are immediately thereafter
beneficially owned, directly or indirectly and in substantially the same
proportion, by the persons who beneficially owned the Corporation's outstanding
voting securities immediately prior to such transaction, or

       

      (ii)   
a stockholder-approved sale, transfer or other disposition of all or
substantially all of the Corporation's assets in complete liquidation or
dissolution of the Corporation, or

       

      (iii)  
the acquisition, directly or indirectly by any person or related group of
persons (other than the Corporation or a person that directly or indirectly
controls, is controlled by, or is under common control with, the Corporation),
of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act)
of securities possessing more than fifty percent (50%) of the total combined
voting power of the Corporation's outstanding securities pursuant to a tender or
exchange offer made directly to the Corporation's stockholders.

       

      In no
event shall any public offering of the Corporation's securities be deemed to
constitute a Change in Control.

       

      D.            
Code
shall mean the Internal Revenue Code of 1986, as amended.

       

      E.            
Common
Stock shall mean the Corporation's common stock.

       

      F.            
Corporation
shall mean OcuSense, Inc., a Delaware corporation, and any successor corporation
to all or substantially all of the assets or voting stock of OcuSense, Inc.
which shall by appropriate action adopt the Plan.

       

      G.            
Disposition
Notice shall have the meaning assigned to such term in
Paragraph E.2.

       

      H.          
  Exercise
Notice shall have the meaning assigned to such term in Paragraph
E.3.

       

      I.            
 Fair
Market Value per share of Common Stock on any relevant date shall be
determined in accordance with the following provisions:

      
        
           

        

        
          - 15
-

          
            

          

        

        
           

        

      

       

      (i)    
If the Common Stock is at the time traded on the Nasdaq National Market, then
the Fair Market Value shall be the closing selling price per share of Common
Stock on the date in question, as such price is reported by the National
Association of Securities Dealers on the Nasdaq National Market and published in
The Wall Street Journal.  If there is no closing selling price for the
Common Stock on the date in question, then the Fair Market Value shall be the
closing selling price on the last preceding date for which such quotation
exists.

       

      (ii)   
If the Common Stock is at the time listed on any Stock Exchange, then the Fair
Market Value shall be the closing selling price per share of Common Stock on the
date in question on the Stock Exchange determined by the Plan Administrator to
be the primary market for the Common Stock, as such price is officially quoted
in the composite tape of transactions on such exchange and published in The Wall Street
Journal.  If there is no closing selling price for the Common
Stock on the date in question, then the Fair Market Value shall be the closing
selling price on the last preceding date for which such quotation
exists.

       

      (iii)  
If the Common Stock is at the time neither listed on any Stock Exchange nor
traded on the Nasdaq National Market, then the Fair Market Value shall be
determined by the Plan Administrator after taking into account such factors as
the Plan Administrator shall deem appropriate.

       

      J.            
 First
Refusal Right shall have the meaning assigned to such term in
Article E.

       

      K.            Market
Stand-Off shall mean the market stand-off restriction specified in
Paragraph C.4.

       

      L.            
1933
Act shall mean the Securities Act of 1933, as amended.

       

      M.          
 Owner
shall mean Participant and all subsequent holders of the Purchased Shares who
derive their chain of ownership through a Permitted Transfer from
Participant.

       

      N.           
Parent
shall mean any corporation (other than the Corporation) in an unbroken chain of
corporations ending with the Corporation, provided each corporation in the
unbroken chain (other than the Corporation) owns, at the time of the
determination, stock possessing fifty percent (50%) or more of the total,
combined voting power of all classes of stock in one of the other corporations
in such chain.

       

      O.            
Participant
shall mean the person to whom shares are issued under the Stock Issuance
Program.

       

      P.            
Permitted
Transfer shall mean (i) a gratuitous transfer of the Purchased
Shares, provided and only if Participant obtains the Corporation's prior written
consent to such transfer, (ii) a transfer of title to the Purchased Shares
effected pursuant to Participant's will or the laws of inheritance following
Participant's death or (iii) a transfer to the Corporation in pledge as
security for any purchase-money indebtedness incurred by Participant in
connection with the acquisition of the Purchased Shares.

      
        
           

        

        
          - 16
-

          
            

          

        

        
           

        

      

       

      Q.            
Plan
shall mean the Corporation's 2003 Stock Option/Stock Issuance Plan attached
hereto as Exhibit HI.

       

      R.            
Plan
Administrator shall mean either the Board or a committee of the Board
acting in its capacity as administrator of the Plan.

       

      S.            
Purchase
Price shall have the meaning assigned to such term in Paragraph
A.l.

       

      T.            
Purchased
Shares shall have the meaning assigned to such term in
Paragraph A.1.

       

      U.            Recapitalization
shall mean any stock split, stock dividend, recapitalization, combination of
shares, exchange of shares or other change affecting the Corporation's
outstanding Common Stock as a class without the Corporation's receipt of
consideration.

       

      V.            
Reorganization
shall mean any of the following transactions:

       

      (i)    
a merger or consolidation in which the Corporation is not the surviving
entity,

       

      (ii)   
a sale, transfer or other disposition of all or substantially all of the
Corporation's assets,

       

      (iii)  
a reverse merger in which the Corporation is the surviving entity but in which
the Corporation's outstanding voting securities are transferred in whole or in
part to a person or persons different from the persons holding those securities
immediately prior to the merger, or

       

      (iv)  
any transaction effected primarily to change the state in which the Corporation
is incorporated or to create a holding company structure.

       

      W.           Repurchase
Price shall mean the lower of (i) the
Exercise Price or (ii) the Fair Market Value per share of Common Stock on
the date of Participant's cessation of Service.

       

      X.           
Repurchase
Right shall mean the right granted to the Corporation in accordance with
Article D.

       

      Y.            
SEC
shall mean the Securities and Exchange Commission.

       

      Z.            
Service
shall mean the Participant's performance of services for the Corporation (or any
Parent or Subsidiary) in the capacity of an employee, subject to the control and
direction of the employer entity as to both the work to be performed and the
manner and method of performance, a non-employee member of the board of
directors or an independent consultant.

       

      AA.         Stock
Issuance Program shall mean the Stock Issuance Program under the
Plan.

      
        
           

        

        
          - 17
-

          
            

          

        

        
           

        

      

       

      AB.          Subsidiary
shall mean any corporation (other than the Corporation) in an unbroken chain of
corporations beginning with the Corporation, provided each corporation (other
than the last corporation) in the unbroken chain owns, at the time of the
determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

       

      AC.          Target
Shares shall have the meaning assigned to such term in
Paragraph E.2.

       

      AD.         Vesting
Schedule shall mean the vesting schedule specified in Paragraph D.3
pursuant to which Participant is to vest in the Purchased Shares in a series of
installments over the Participant's period of Service.

       

      AE.          Unvested
Shares shall have the meaning assigned to such term in
Paragraph D.1.

      
        
           

        

        
          - 18
-

          
            

          

        

        
           

        

      

       

      ADDENDUM
TO

      STOCK
ISSUANCE AGREEMENT

       

      The
following provisions are hereby incorporated into, and are hereby made a part
of, that certain Stock Issuance Agreement (the "Issuance Agreement") by and
between OcuSense, Inc. (the "Corporation") and _________________ ("Participant")
evidencing the shares of Common Stock purchased on this date by Participant
under the Corporation's 2003 Stock Option/Stock Issuance Plan, and such
provisions shall be effective immediately.  All capitalized terms in
this Addendum, to the extent not otherwise defined herein, shall have the
meanings assigned to such terms in the Issuance Agreement.

       

      INVOLUNTARY
TERMINATION FOLLOWING

      A
CHANGE IN CONTROL

       

      1.            
To the extent the Repurchase Right is assigned to the successor corporation (or
parent thereof) in connection with a Change in Control or is otherwise to
continue in rail force and effect pursuant to the terms of the Change in Control
transaction, no accelerated vesting of the Purchased Shares shall occur upon
that Change in Control, and the Repurchase Right shall continue to remain in
full force and effect in accordance with the provisions of the Issuance
Agreement.  Participant shall, over his or her period of Service
following such Change in Control, continue to vest in the Purchased Shares in
one or more installments in accordance with the provisions of the Issuance
Agreement.  However, upon an Involuntary Termination of Participant's
Service within eighteen (18) months following such Change in Control, the
Repurchase Right shall terminate automatically, and all the Purchased Shares
shall immediately vest in full at that time.  Any unvested escrow
account maintained on Participant's behalf pursuant to Paragraph D.5 of the
Issuance Agreement shall also vest at the time of such Involuntary Termination
and shall be paid to Participant promptly thereafter.

       

      
        	
                 
      

              	
                2.

              	
                For
      purposes of this Addendum, the following definitions shall be in
      effect:

              

      

       

      An Involuntary Termination shall
mean the termination of Participant's Service by reason of:

       

      (a)   
Participant's involuntary dismissal or discharge by the Corporation for reasons
other than for Misconduct, or

       

      (a)   
Participant's voluntary resignation following (1) a change in his or her
position with the Corporation (or Parent or Subsidiary employing Participant)
which materially reduces his or her duties and responsibilities or the level of
management to which he or she reports, (2) a reduction in Participant's level of
compensation (including base salary, fringe benefits and target bonus under any
corporate-performance based incentive programs) by more than fifteen percent
(15%) or (3) a relocation of Participant's place of employment by more than
fifty (50) miles, provided and only if such change, reduction or relocation is
effected by the Corporation without Participant's consent.

      
        
           

        

        
          - 19
-

          
            

          

        

        
           

        

      

       

      Misconduct shall include the
termination of Participant's Service by reason of Participant's commission of
any act of fraud, embezzlement or dishonesty, any unauthorized use or disclosure
by Participant of confidential information or trade secrets of the Corporation
(or any Parent or Subsidiary), or any other intentional misconduct by
Participant adversely affecting the business or affairs of the Corporation (or
any Parent or Subsidiary) in a material manner.  The foregoing
definition shall not in any way preclude or restrict the right of the
Corporation (or any Parent or Subsidiary) to discharge or dismiss Participant or
any other person in the Service of the Corporation (or any Parent or Subsidiary)
for any other acts or omissions, but such other acts or omissions shall not be
deemed, for purposes of the Plan and this Addendum, to constitute grounds for
termination for Misconduct.

       

      IN WITNESS WHEREOF, OcuSense,
Inc. has caused this Addendum to be executed by its duly-authorized officer as
of the Effective Date specified below.

       

      
        
          
            
              
                
                  
                    
                      
                        
                          	 
      	
                                  OCUSENSE,
      INC.

                                
	 	 	 
	 
      	
                                  By:

                                	 
      
	 	 	 
	 
      	
                                  Title:

                                	 
      

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        

        
          
            
              
                
                  
                    
                      	
                              EFFECTIVE
      DATE:

                            	
                               

                            	 ,	 
      	 

                    

                  

                

              

            

          

        

- 20 -ex4_6.htm

    
      

    

    Exhibit 4.6

     

    
      CENTEX
CORPORATION

      

      Issuer

      

      AND

      

      U.S. BANK
NATIONAL ASSOCIATION

      

      Trustee

      
 

      ---------------

      

      

      I N D E N
T U R E

      

      Dated as
of November 5, 2008

      

      

      ---------------

      

      

      SUBORDINATED
DEBT SECURITIES

      (Issuable
in Series)

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      TIE-SHEET

      

      of
provisions of the Trust Indenture Act of 1939 with the Indenture, dated as of
November 5, 2008, between Centex Corporation and U.S. Bank National Association,
as Trustee:

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      Section
      of Act

                                    	 
      	
                                      Section
      of Indenture

                                    
	
                                      310

                                    	
                                      (a)(1)

                                    	
                                      8.09

                                    
	 
      	
                                      (a)(2)

                                    	
                                      8.09

                                    
	 
      	
                                      (a)(3)

                                    	
                                      Not
      applicable

                                    
	 
      	
                                      (a)(4)

                                    	
                                      Not
      applicable

                                    
	 
      	
                                      (b)

                                    	
                                      8.08
      and 8.10(b)

                                    
	 
      	
                                      (c)

                                    	
                                      Not
      applicable

                                    
	
                                      311

                                    	
                                      (a)

                                    	
                                      8.13

                                    
	 
      	
                                      (b)

                                    	
                                      8.13

                                    
	 
      	
                                      (c)

                                    	
                                      Not
      applicable

                                    
	
                                      312

                                    	
                                      (a)

                                    	
                                      6.01
      and 6.02(a)

                                    
	 
      	
                                      (b)

                                    	6.02(b) 
      
	 
      	
                                      (c)

                                    	6.02(c) 
      
	
                                      313

                                    	
                                      (a)

                                    	
                                      6.04(a)

                                    
	 
      	
                                      (b)(l)

                                    	
                                      Not
      applicable

                                    
	 
      	
                                      (b)(2)

                                    	6.04(b) 
      
	 
      	
                                      (c)

                                    	6.04(c) 
      
	 
      	
                                      (d)

                                    	6.04(d) 
      
	
                                      314

                                    	
                                      (a)(l)

                                    	
                                      6.03(a)

                                    
	 
      	
                                      (a)(2)

                                    	6.03(b) 
      
	 
      	
                                      (a)(3)

                                    	
                                      6.03(c)

                                    
	 
      	
                                      (b)

                                    	
                                      Not
      applicable

                                    
	 
      	
                                      (c)(l)

                                    	
                                      15.07

                                    
	 
      	
                                      (c)(2)

                                    	
                                      15.07

                                    
	 
      	
                                      (c)(3)

                                    	
                                      Not
      applicable

                                    
	 
      	
                                      (d)

                                    	
                                      Not
      applicable

                                    
	 
      	
                                      (e)

                                    	
                                      15.07

                                    
	
                                      315

                                    	
                                      (a)(l)

                                    	
                                      8.01(a)(1)

                                    
	 
      	
                                      (a)(2)

                                    	
                                      8.01(a)(2)

                                    
	 
      	
                                      (b)

                                    	
                                      7.07

                                    
	 
      	
                                      (c)

                                    	
                                      8.01

                                    
	 
      	
                                      (d)

                                    	
                                      8.01

                                    
	 
      	
                                      (e)

                                    	
                                      7.08

                                    
	
                                      316

                                    	
                                      (a)(l)

                                    	
                                      7.01
      and 7.06

                                    
	 
      	
                                      (a)(2)

                                    	
                                      Omitted

                                    
	 
      	
                                      (a)

                                    	
                                      last
      sentence 9 04

                                    
	 
      	
                                      (b)

                                    	
                                      7.04

                                    
	
                                      317

                                    	
                                      (a)

                                    	
                                      7.02

                                    
	 
      	
                                      (b)

                                    	5.05 
      
	
                                      318

                                    	
                                      (a)

                                    	
                                      15.09

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

      This
tie-sheet is not a part of the Indenture as executed.

      
        
           

        

        
          -1-

          
            

          

        

        
           

        

      

      INDENTURE, dated as of November 5,
2008, between CENTEX CORPORATION, a corporation duly organized and existing
under the laws of the State of Nevada (hereinafter sometimes referred to as the
“Company”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association
duly organized and existing under the laws of the United States of America
(hereinafter sometimes referred to as the “Trustee”).

       

      PRELIMINARY
STATEMENT

       

      The Company has duly authorized the
execution and delivery of this Indenture to provide for one or more series of
Subordinated Debt Securities, issuable as provided in this Indenture. Each
series of such Subordinated Debt Securities will be issued only under a separate
Series Supplement to this Indenture duly executed and delivered by the Company
and the Trustee and limited to amounts therein prescribed. All covenants and
agreements made by the Company herein are for the benefit and security of the
holders of Subordinated Debt Securities. The Company is entering into this
Indenture, and the Trustee is accepting the trust created hereby, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged.

       

      ARTICLE
ONE

      DEFINITIONS.

       

      SECTION
1.01.  The terms defined in this Section 1.01 (except as herein
otherwise expressly provided or unless the context otherwise requires) for all
purposes of this Indenture and of any indenture supplemental hereto shall have
the respective meanings specified in this Section 1.01. All other terms used in
this Indenture which are defined in the Trust Indenture Act of 1939 or which are
by reference therein defined in the Securities Act of 1933, as amended (except
as herein otherwise expressly provided or unless the context otherwise
requires), shall have the meanings assigned to such terms in said Trust
Indenture Act and in said Securities Act as in force at the date of this
Indenture as originally executed.  

       

      Authorized
Newspaper:

      

      The term “authorized newspaper” shall
mean a newspaper printed in the English language and customarily published at
least once a day for at least five days in each calendar week, whether or not
published on Saturdays, Sundays or legal holidays, and of general circulation in
the Borough of Manhattan, The City of New York. Whenever under the provisions of
this Indenture two or more publications of a notice or other communication are
required or permitted, such publications may be in the same or different
newspapers.

      

      Board of
Directors:

      

      The term “Board of Directors” shall
mean the Board of Directors of the Company and duly authorized committees of
such Board.

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

      Business
Day:

      

      The term “business day” shall mean
any day except a Saturday, a Sunday or a day on which banking institutions are
legally authorized to close in The City of New York or Dallas,
Texas.

      

      Capitalized
Lease Obligation:

      

      The term “Capitalized Lease
Obligation” shall mean any obligation of the Company, as lessee or guarantor, to
pay rent under a lease of real or personal property, which obligation, in the
judgment of the Company, is required to be capitalized on the balance sheet of
the Company in accordance with generally accepted accounting
principles.

      

      Certificate
of a Firm of Independent Public Accountants:

      

      The term “Certificate of a Firm of
Independent Public Accountants” shall mean a certificate signed by an
individual, partnership or corporation engaged in accounting work who may be the
accountants regularly employed by the Company. Each such certificate shall
include the statements provided for in Section 15.07, if and to the extent
required by the provisions thereof.

      

      Company:

      

      The term “Company” shall mean CENTEX
CORPORATION, a Nevada corporation, and, subject to the provisions of Article
Twelve, shall also include its successors and assigns.

      

      Corporate
trust office:

      

      The term “corporate trust office” of
the Trustee shall mean with respect to functions required to be transacted in
New York, an office or agency of the Trustee in the Borough of Manhattan, City
and State of New York, designated by the Trustee, from time to time, as the
Trustee's corporate trust office for purposes of this Indenture which office at
the date of the execution of this Indenture is located at U.S. Bank National
Association, 100 Wall Street, Suite 1600, New York, New York 10005, Mail Station
EX-NY-Wall, and with respect to any other function to be performed by Trustee
hereunder either at the foregoing address or at the corporate trust office of
Trustee which office at the date of execution of this Indenture is located at
14241 Dallas Parkway, Dallas, Texas 75254 or at any other office or agency so
designated by the Trustee.

       

      Subordinated
Debt Security; “outstanding” with reference to Subordinated Debt
Securities:

      

      The term “Subordinated Debt Security”
or “Subordinated Debt Securities” shall mean a Subordinated Debt Security or
Subordinated Debt Securities, as the case may be, consisting of debentures,
notes and/or other unsecured evidences of indebtedness, authenticated and
delivered under this Indenture.

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

      The term “outstanding”, when used
with reference to Subordinated Debt Securities, shall, subject to the provisions
of Section 9.04, mean, as of any particular time, all Subordinated Debt
Securities authenticated and delivered by the Trustee under this Indenture,
except

      

      (a) Subordinated Debt Securities
theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

      

      (b) Subordinated Debt Securities for
the payment or redemption for which moneys in the necessary amount shall have
been deposited in trust with the Trustee or with any paying agent (other than
the Company) or shall have been set aside and segregated in trust by the Company
(if the Company shall act as its own paying agent), provided that, if such
Subordinated Debt Securities are to be redeemed, notice of such redemption shall
have been given as in Article Four provided or provision satisfactory to the
Trustee shall have been made for giving such notice; and

      

      (c) Subordinated Debt Securities in
lieu of or in substitution for which other Subordinated Debt Securities shall
have been authenticated and delivered pursuant to the terms of Section
2.08.

      

      Subordinated
Debt Security Register; Subordinated Debt Security Registrar:

      

      The terms “Subordinated Debt Security
Register” and “Subordinated Debt Security Registrar” shall have the respective
meanings specified in Section 2.06.

      

      Event of
Default; default:

      

      The term “Event of Default” shall
mean any event specified in Section 7.01, continued for the period of time, if
any, and after the giving of notice, if any, therein designated.

      

      Unless the context otherwise
requires, the term “default” shall mean any occurrence which is, or with notice
or the lapse of time or both would become, an Event of Default; provided that
any occurrence which would become an Event of Default pursuant to Section
7.01(c) hereof shall not be deemed a default (but may nonetheless constitute an
Event of Default upon notice and lapse of time as provided in Section 7.01(c)
for purposes of the Indenture) until the expiration of five days after such
occurrence shall first become known, or in the exercise of reasonable care
should become known, to an officer of the Company.

      

      Holder:

      

      The term “holder”, “holder of
Subordinated Debt Securities”, or other similar term, shall mean any person in
whose name a Subordinated Debt Security shall at the time be registered in the
Subordinated Debt Security Register kept for that purpose.

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

      Indenture:

      

      The term “Indenture” shall mean this
instrument as originally executed, or, if amended or supplemented as herein
provided, as so amended or supplemented.

      

      Officers'
Certificate:

      

      The term “Officers' Certificate”
shall mean a certificate signed by the Chairman of the Board, the President or
any Vice President and by the Treasurer or any Assistant Treasurer or the
Secretary or any Assistant Secretary of the Company. Each such certificate shall
include the statements provided for in Section 15.07, if and to the extent
required by the provisions thereof.

      

      Opinion
of Counsel:

      

      The term “Opinion of Counsel” shall
mean an opinion in writing signed by legal counsel who shall be satisfactory to
the Trustee and may be counsel to the Company. Each such opinion shall include
the statements provided for in Section 15.07, if and to the extent required by
the provisions thereof.

      

      Responsible
Officer:

      

      The term “responsible officer” when
used with respect to the Trustee shall mean the chairman or the vice-chairman of
the board of directors, the chairman of the executive committee of the board of
directors, the president, any vice president, any second or assistant vice
president, the cashier, any assistant cashier, the secretary, any assistant
secretary, the treasurer, any assistant treasurer, any senior trust officer or
trust officer, or any other officer or assistant officer of the Trustee
customarily performing functions similar to those performed by the persons who
at the time shall be such officers, respectively, or to whom any corporate trust
matter is referred because of his knowledge of and familiarity with the
particular subject.

      

      Senior
Indebtedness of the Company:

      

      The term “Senior Indebtedness of the
Company” shall mean (a) the principal of, and premium, if any, and interest on,
(i) indebtedness (other than the Subordinated Debt Securities) of the Company
for money borrowed, whether or not evidenced by bonds, notes, debentures or
similar obligations, including any guarantee by the Company of any indebtedness
for money borrowed of any other person, whether any such indebtedness or
guarantee is outstanding on the date of this Indenture or is hereafter created,
assumed or incurred, (ii) Capitalized Lease Obligations of the Company, whether
outstanding on the date of this Indenture or hereafter incurred, (iii) all
indebtedness arising in favor of any bonding company under any performance or
payment bond or other similar bond issued by a company in connection with any
construction contract to which the Company is or was a party, and (iv)
indebtedness or obligations incurred, assumed or guaranteed by the Company
(whether outstanding on the date of this Indenture or hereafter created, assumed
or incurred) in connection with the acquisition or improvement of any property
or asset, tangible or intangible (including, without limitation, services or
materials purchased or contracted for purchase in the ordinary course of the
Company's business), or the acquisition by it or a Subsidiary of the Company of
any other business, unless, in each case referred to in clauses (i), (ii), (iii)
and (iv) above, by the terms of the instrument creating or evidencing the
indebtedness it is provided that such indebtedness ranks on a parity with the
Subordinated Debt Securities and is entitled to like rights of subrogation, or
is subordinated to, or is otherwise not superior in right of payment to, the
Subordinated Debt Securities; and (b) any other indebtedness, liability or
obligation, contingent or otherwise, of the Company (any such indebtedness,
liability or obligation being hereinafter in this definition referred to as an
“Obligation”), and any guarantee, endorsement or other contingent obligation in
respect of an Obligation of another, which is created, assumed or incurred by
the Company after the date of this Indenture and which, when created, assumed or
incurred, is specifically designated by the Company as Senior Indebtedness of
the Company for the purposes hereof in the instrument creating or evidencing
such Obligation or in the instrument creating or evidencing the Company's
liability with respect to the Obligation of another; and (c) any refundings,
renewals or extensions of any indebtedness, liability or obligation described in
clause (a) or (b) above.

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

      Series:

      

      The term “Series” shall mean a
separate series of Subordinated Debt Securities issued pursuant to this
Indenture and the related Series Supplement.

      

      Series
Supplement or Supplement:

      

      The term “Series Supplement” or
“Supplement” shall mean an indenture supplemental to this Indenture that
authorizes a particular Series.

      

      Subsidiary:

      

      The term “Subsidiary” with respect to
any person shall mean a corporation or association, more than 50% of the voting
securities of which is owned by that person or by one or more of its other
Subsidiaries, or by that person in conjunction with one or more of its other
Subsidiaries. The term “voting securities” shall mean those securities of a
corporation or association having voting power for the election of directors or
trustees, either at all times or only so long as no senior class of securities
has such voting power arising out of defaults in dividends or the existence of
some other default, and the above percentage shall mean such number of units
thereof as shall have such percentage of such voting power.

      

      Trust
Indenture Act of 1939:

      

      The term “Trust Indenture Act of
1939” (except as herein otherwise expressly provided or unless the context
otherwise requires) shall mean the Trust Indenture Act of 1939 as in force at
the date of this Indenture as originally executed.

      

      Trustee:

      

      The term “Trustee” shall mean U.S.
Bank National Association, and, subject to the provisions of Article Eight,
shall also include its successors and assigns.

      

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

       

      ARTICLE
TWO

      ISSUE,
DESCRIPTION, FORM, EXECUTION, REGISTRATION OF TRANSFER AND EXCHANGE OF
SUBORDINATED DEBT SECURITIES.

       

      SECTION
2.01.  The Subordinated Debt Securities and the Trustee's certificate
of authentication are to be substantially in the forms set forth in this Section
2.01, with such appropriate insertions, omissions, substitutions, amendments,
changes and other variations as are required or permitted by this Indenture or
any Series Supplement, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange on which the
Subordinated Debt Securities may be listed or as may, consistently herewith, be
determined by the officers executing such Subordinated Debt Securities as
evidenced by their execution of the Subordinated Debt
Securities.  

       

      The definitive Subordinated Debt
Securities shall be printed, lithographed or engraved or produced by any
combination of these methods on steel engraved borders or may be produced in any
other manner permitted by any Series Supplement or the rules of any securities
exchange on which the Subordinated Debt Securities may be listed, all as
determined by the officers executing such Subordinated Debt Securities, as
evidenced by their execution of such Subordinated Debt Securities.

       

      The form of Subordinated Debt
Securities and the Trustee's certificate of authentication are to be
substantially in the following forms, respectively:

      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

      [FORM OF
FACE OF SUBORDINATED DEBT SECURITY]

       

      
        
          
            
              
                
                  
                    
                      	
                              No.

                            	 	
                              $

                            	 
	 
      	 	 
      	 
	 	 	 	 

                    

                  

                

              

            

          

        

      

      

      CENTEX
CORPORATION

       

      [SUBORDINATED
DEBT SECURITY]

       

      CENTEX CORPORATION, a corporation duly
organized and existing under the laws of the State of Nevada (herein referred to
as the “Company”), for value received, hereby promises to pay to
_________________________________ or registered assigns, the principal sum of
________________ Dollars on __________, _____, in such coin or currency of the
United States of America as at the time of payment is legal tender for the
payment of public and private debts, and to pay interest on said principal sum
at the rate per annum specified in the title of this [Subordinated Debt
Security], with respect to interest accrued from [insert accrual date] to the
date of the current interest payment, to the registered holder hereof as of the
close of business on the _______ day of the month next preceding the month in
which an interest payment is due, in like coin or currency, all at any office or
agency of the Company to be maintained by the Company pursuant to Section 5.02
of the Indenture, which at all times shall include an office or agency in the
Borough of Manhattan, The City of New York, such interest payments to be made,
except as otherwise provided in the Indenture hereinafter referred to, [insert
interest frequency] on [insert payment dates], in each year, commencing
_____________, 20__, until payment of said principal sum has been made or duly
provided for; provided, however, that payment of interest may be made at the
option of the Company by check mailed on or before such payment date to the
address of the person entitled thereto as such address shall appear on the
Subordinated Debt Security Register.

       

      This [Subordinated Debt Security] shall
be deemed to be a contract made under the laws of the State of Texas, and for
all purposes shall be construed in accordance with the laws of said
State.

       

      Additional provisions of this
[Subordinated Debt Security] are contained on the reverse hereof and such
provisions shall for all purposes have the same effect as though fully set forth
at this place.

       

      This [Subordinated Debt Security] shall
not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been signed by the Trustee under the
Indenture.

       

      IN WITNESS WHEREOF, CENTEX CORPORATION
has caused this instrument to be signed in its corporate name by the facsimile
signature of its President or a Vice President and by its Secretary or an
Assistant Secretary by his or her signature or a facsimile thereof, and a
facsimile of its corporate seal to be affixed hereunto or imprinted
hereon.

       

      
        
          
            
              	 
      	
                      Dated:

                    	 	 
      

            

          

        

      

      
        
           

        

        
          -8-

          
            

          

        

        
           

        

      

       

      
        
          
            
              
                
                  	 
      	 	
                          CENTEX
      CORPORATION

                        
	 	 	 
	 
      	 	
                          By:

                        	 
      
	 
      	 	 
      	
                          [Title]

                        
	
                          ATTEST:

                        	 	 
      	 
      
	 
      	 	 
      	 
      
	
                          [Title]

                        	 	 
      	 
      

                

              

            

          

        

      

      

       

      TRUSTEE'S
CERTIFICATE OF AUTHENTICATION

       

      This is one of the [Subordinated Debt
Securities] described in the within-mentioned Indenture.

       

      
        
          
            
              	 
      	
                      U.S.
      BANK NATIONAL ASSOCIATION,

                    
	 
      	
                      as
      Trustee

                    
	 	 
	 
      	
                      By:

                    	 
      
	 
      	 
      	
                      Authorized
      Signature

                    

            

          

        

      

      
        
           

        

        
          -9-

          
            

          

        

        
           

        

      

      [FORM OF
REVERSE OF SUBORDINATION DEBT SECURITY]

       

      CENTEX
CORPORATION

       

      This [Subordinated Debt Security] is
one of a duly authorized issue of Subordinated Debt Securities of the Company
issued and to be issued in one or more Series, and this [Subordinated Debt
Security] is one of the Series of Subordinated Debt Securities designated as its
[Subordinated Debt Securities] (herein referred to as the [Subordinated Debt
Securities]), limited to the aggregate principal amount of __________________
Million Dollars ($__________________), all issued or to be issued under and
pursuant to an indenture dated as of ________, 20__ (herein referred to as the
“Indenture”), duly executed and delivered by the Company to _____________
(referred to herein as the “Trustee”), to which Indenture and all indentures
supplemental thereto (including the Series Supplement dated as of ____________,
20__ which authorizes the [Subordinated Debt Securities]) reference is hereby
made for a description of the rights, limitations of rights, obligations, duties
and immunities thereunder of the Trustee, the Company and the holders of the
Subordinated Debt Securities of each particular Series and the terms upon which
the Subordinated Debt Securities of each Series are, and are to be,
authenticated and delivered. All terms used in this Subordinated Debt Security
which are defined in the Indenture shall have the meanings assigned to them in
the Indenture. As provided in the Indenture, the Subordinated Debt Securities
are issuable in Series which may vary as in the Indenture provided or
permitted.

       

      [The indebtedness evidenced by the
[Subordinated Debt Securities] is, to the extent and in the manner provided in
the Indenture, subordinated and subject in right of payment to the prior payment
in full of all Senior Indebtedness of the Company. As provided in the Indenture,
each holder of this [Subordinated Debt Security], by his acceptance hereof,
agrees to and shall be bound by all the provisions of the Indenture relating to
such subordination and authorizes the Trustee to take such action in his behalf
as may be necessary or appropriate to effectuate the subordination as provided
in the Indenture and appoints the Trustee his attorney-in-fact for any and all
such purposes.]

       

      In case an Event of Default shall have
occurred and be continuing with respect to the [Subordinated Debt Securities],
the principal hereof may be declared, and upon such declaration shall become,
due and payable, in the manner, with the effect and subject to the conditions
provided in the Indenture. The Indenture provides that in certain events such
declaration and its consequences may be waived by the holders of a majority in
aggregate principal amount of the [Subordinated Debt Securities] then
outstanding. An Event of Default with respect to the Subordinated Debt Security
of any other Series issued under the Indenture, including the failure to make
any payment of principal or interest with respect thereto when and as due, will
not be an Event of Default with respect to [Subordinated Debt
Securities].

       

      The Indenture contains provisions
permitting the Company and the Trustee, with the consent of the holders of not
less than a majority in aggregate principal amount of the [Subordinated Debt
Securities] at the time outstanding, evidenced as in the Indenture provided, to
execute supplemental indentures adding any provisions to or changing in any
manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or modifying in any manner the rights of the holders of
the [Subordinated Debt Securities]; provided, however, that no such supplemental
indenture shall (i) extend the fixed maturity of any [Subordinated Debt
Securities], or reduce the principal amount thereof, or reduce the rate or
extend the time of payment of interest thereon, or reduce any premium payable on
the redemption thereof, without the consent of the holder of each [Subordinated
Debt Security] so affected, or (ii) reduce the aforesaid percentage of
[Subordinated Debt Securities], the consent of the holders of which is required
for any such supplemental indenture, without the consent of the holders of all
[Subordinated Debt Securities] then outstanding. It is also provided in the
Indenture that the holders of a majority in aggregate principal amount of the
[Subordinated Debt Securities] at the time outstanding may on behalf of the
holders of all the [Subordinated Debt Securities] waive any past default under
the Indenture and its consequences, except a default in the payment of the
principal of, or premium, if any, or interest on any of the [Subordinated Debt
Securities]. Any such consent or waiver by the holder of this [Subordinated Debt
Security] (unless revoked as provided in the Indenture) shall be conclusive and
binding upon such holder and upon all future holders and owners of this
[Subordinated Debt Security] and of any [Subordinated Debt Security] issued in
exchange or substitution herefor, whether or not any notation of such consent or
waiver is made upon this [Subordinated Debt Security].

       

      
        
          
             

          

          
            -10-

            
              

            

          

          
             

          

        

      

      

      Subject to the rights of holders of
Senior Indebtedness of the Company set forth in the Indenture, no reference
herein to the Indenture and no provision of this [Subordinated Debt 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 [Subordinated Debt Security] at the place, at the respective
times, at the rate and in the currency herein prescribed.

       

      The [Subordinated Debt Securities] are
issuable in registered form in denominations of $1,000 and any integral multiple
of $l,000.

       

      [As provided in the Indenture, the
[Subordinated Debt Securities] may be redeemed, at the option of the Company, as
a whole or from time to time in part (otherwise than through the operation of
the Sinking Fund), at any time prior to maturity, upon the notice referred to
below, [on terms specified in the Series Supplement]. Notwithstanding the
foregoing, no such redemption may be made prior to ________, 2___ , directly or
indirectly from or in anticipation of moneys borrowed by the Company at an
interest cost which is less than the [interest rate of the [Subordinated Debt
Securities] as specified in the Series Supplement.]

       

      [The [Subordinated Debt Securities] are
entitled to the benefits of a Sinking Fund, operation of the provisions of which
is required to begin on ____________, 2___ as provided in the Series Supplement.
The [Subordinated Debt Securities] are subject to redemption (on notice as set
forth below) through the operation of the Sinking Fund at a redemption price
equal to the principal amount thereof, together with accrued and unpaid interest
to the date fixed for redemption.]

       

      Notice of redemption shall be given by
mailing by first-class mail a notice of such redemption not less than 20 nor
more than 60 days prior to the date fixed for redemption to the holders of
[Subordinated Debt Securities] to be redeemed to their last addresses as they
shall appear upon the Subordinated Debt Security Register for the [Subordinated
Debt Securities], all as provided in the Indenture.

       

      
        
           

        

        
          -11-

          
            

          

        

        
           

        

      

      Upon due presentment for registration
of transfer of this [Subordinated Debt Security] at any designated office or
agency of the Company to be maintained by the Company pursuant to Section 5.02
of the Indenture, which at all times shall include an office or agency in the
Borough of Manhattan, The City of New York, a new [Subordinated Debt Security]
or [Subordinated Debt Securities] of authorized denominations for an equal
aggregate principal amount will be issued to the transferee in exchange herefor,
subject to the limitations provided in the Indenture, without charge except for
any tax or other governmental charge imposed in connection therewith, and the
[Subordinated Debt Securities] may in like manner be exchanged for one or more
new [Subordinated Debt Securities] of other authorized denominations but of the
same aggregate principal amount.

       

      The Company, the Trustee, any paying
agent and any Subordinated Debt Security Registrar (as defined in the Indenture)
for the [Subordinated Debt Securities] may deem and treat the registered holder
hereof as the absolute owner of this [Subordinated Debt Security] (whether or
not this [Subordinated Debt Security] shall be overdue and notwithstanding any
notation of ownership or other writing hereon made by anyone other than the
Company or any such Subordinated Debt Security Registrar), for the purpose of
receiving payment hereof or on account hereof and for all other purposes, and
neither the Company nor the Trustee nor any paying agent nor any such
Subordinated Debt Security Registrar shall be affected by any notice to the
contrary.

       

      No recourse shall be had for the
payment of the principal of, or premium, if any, or interest on, this
[Subordinated Debt Security], or for any claim based hereon or otherwise in
respect hereof, or based on or in respect of the Indenture or any indenture
supplemental thereto, against any incorporator, stockholder, officer or
director, as such, past, present or future, of the Company or of any successor
corporation, whether by virtue of any constitution, statute or rule of law, or
by the enforcement of any assessment or penalty or otherwise, all such liability
being, by the acceptance hereof and as part of the consideration for the issue
hereof, expressly waived and released.

       

      
        
           

        

        
          -12-

          
            

          

        

        
           

        

      

      SECTION
2.02.  The aggregate principal amount of Subordinated Debt Securities
which may be authenticated and delivered under this Indenture is
unlimited.  

       

      The Subordinated Debt Securities may,
at the election of and as authorized by the Board of Directors, be issued in one
or more Series, and a particular Series shall be designated as the Board of
Directors may determine. Each Subordinated Debt Security shall bear upon its
face the designation so selected for the Series for which it belongs. All
Subordinated Debt Securities of the same Series shall be identical in all
respects except for the denominations thereof.

       

      Each Series of Subordinated Debt
Securities shall be created by a Series Supplement authorized by the Board of
Directors in establishing the terms and provisions of such Series. The several
Series may differ as between Series, in respect of any of the following matters:
(1) designation of the Series; (2) the maximum aggregate principal amount of the
Series; (3) accrual date; (4) interest rate; (5) stated maturity of principal;
(6) payment dates; (7) authorized denominations; (8) currency of issue and
payment; (9) redemption dates; (10) provisions relating to redemption of the
related Series on an optional or mandatory basis by the Company or pursuant to a
sinking fund; (11) subordination provisions; and (12) any other provisions
expressing or referring to the terms and conditions upon which the Subordinated
Debt Securities of that Series are to be issued under this Indenture which are
not in conflict with the provisions of this Indenture, or any provisions
expressly amending or modifying the terms of this Indenture with respect to the
Series of Subordinated Debt Securities to which such Series Supplement
relates.

       

      In authorizing issuance of any Series,
the Board of Directors shall determine and specify all matters in respect of the
Subordinated Debt Securities of such Series set forth in clauses (1) to (12)
inclusive and shall also determine and specify the form of Subordinated Debt
Securities of such Series.

       

      SECTION
2.03.  The Subordinated Debt Securities shall be executed by the
Company and be delivered to the Trustee for authentication, and the Trustee
shall thereupon, or from time to time thereafter, authenticate and deliver said
Subordinated Debt Securities to and upon the written order of the Company,
signed by its President or a Vice President and by its Treasurer, Assistant
Treasurer, Secretary or Assistant Secretary, without any further action by the
Company.  

       

      SECTION
2.04.  The Subordinated Debt Securities shall be issuable as
registered Subordinated Debt Securities without coupons in denominations
prescribed by the terms of the Series Supplement creating the particular Series.
Each Subordinated Debt Security shall be dated the date of its authentication,
shall bear interest from the applicable date, and shall be payable on the dates,
as prescribed by the terms of the Series Supplement creating the particular
Series.  

       

      The person in whose name any
Subordinated Debt Security is registered at the close of business on any record
date (as hereinafter defined) with respect to any interest payment date shall be
entitled to receive the interest payable on such interest payment date (subject
to the provisions of Article Four in the case of any Subordinated Debt Security
or Subordinated Debt Securities, or portion thereof, redeemed on a date
subsequent to the record date and on or prior to such interest payment date),
except if and to the extent the Company shall default in the payment of the
interest due on such interest payment date, in which case such defaulted
interest shall be paid to the persons in whose names outstanding Subordinated
Debt Securities are registered on a subsequent special record date established
by notice given by mail by or on behalf of the Company to the holders of
Subordinated Debt Securities not less than 15 days preceding such special record
date, which shall be not more than 15 days and not less than 10 days prior to
the date of the proposed payment. The term “record date” as used with respect to
any interest payment date shall mean the day of the calendar month prescribed by
the terms of the Series Supplement creating the particular Series preceding the
day on which such interest payment date falls or, in the case of defaulted
interest, the close of business on any special record date established as
hereinabove provided. The principal of, and premium, if any, and interest on,
the Subordinated Debt Securities shall be payable at the office or agency of the
Company designated for that purpose in the Borough of Manhattan, The City of New
York and any other office or agency of the Company designated for that purpose;
provided, however, that interest may be payable at the option of the Company by
check mailed to the address of the person entitled thereto as such address shall
appear on the Subordinated Debt Security Register.

       

      
        
           

        

        
          -13-

          
            

          

        

        
           

        

      

      SECTION
2.05.  The Subordinated Debt Securities shall be signed manually or by
facsimile signature on behalf of the Company by its President or a Vice
President under its corporate seal attested by the manual or facsimile signature
of its Secretary or an Assistant Secretary. The seal of the Company may be in
the form of a facsimile of the seal of the Company and may be impressed,
affixed, imprinted or otherwise reproduced on the Subordinated Debt
Securities.  

       

      Only such Subordinated Debt Securities
as shall bear thereon a certificate of authentication substantially in the form
hereinabove recited, manually executed by the Trustee, shall be entitled to the
benefits of this Indenture or be valid or obligatory for any purpose. Such
certificate by the Trustee upon any Subordinated Debt Security executed by the
Company shall be conclusive evidence that the Subordinated Debt Security so
authenticated has been duly authenticated and delivered hereunder.

       

      In case any officer of the Company who
shall have signed any of the Subordinated Debt Securities shall cease to be such
officer before the Subordinated Debt Securities so signed shall have been
authenticated and delivered by the Trustee, or disposed of by the Company, such
Subordinated Debt Securities nevertheless may be authenticated and delivered or
disposed of as though the person who signed such Subordinated Debt Securities
had not ceased to be such officer of the Company; and any Subordinated Debt
Security may be signed on behalf of the Company by such persons as, at the
actual date of the execution of such Subordinated Debt Security, shall be the
proper officers of the Company, although at the date of the execution of this
Indenture any such person was not an officer.

       

      SECTION
2.06.  The Subordinated Debt Securities may be exchanged for a like
aggregate principal amount of Subordinated Debt Securities of other authorized
denominations of a like Series. Subordinated Debt Securities to be exchanged
shall be surrendered at any office or agency to be maintained by the Company in
accordance with the provisions of Section 5.02, and the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor the
Subordinated Debt Security or Subordinated Debt Securities which the holder
making the exchange shall be entitled to receive.  

       

      
        
           

        

        
          -14-

          
            

          

        

        
           

        

      

      The Company shall keep or cause to be
maintained at said office or agency a register (herein sometimes referred to as
the “Subordinated Debt Security Register”) in which, subject to such reasonable
regulations as it may prescribe, the Company shall register Subordinated Debt
Securities and shall register the transfer of Subordinated Debt Securities as in
this Article Two provided. For the purposes of registration, exchange or
registration of transfer of Subordinated Debt Securities, the Trustee is hereby
appointed Subordinated Debt Security Registrar. Upon surrender for registration
of transfer of any Subordinated Debt Security at said office or agency, the
Company shall execute and the Trustee shall authenticate and deliver in the name
of the transferee or transferees a new Subordinated Debt Security or
Subordinated Debt Securities in a like aggregate principal amount and of a like
Series. At all reasonable times the Subordinated Debt Security Register shall be
open for inspection by the Trustee. No transfer of any Subordinated Debt
Security shall be valid unless made at said office or agency.

       

      All Subordinated Debt Securities
presented or surrendered for registration of transfer, exchange, redemption or
payment shall (if so required by the Company or the Trustee) be accompanied by a
written instrument or instruments of transfer, in form satisfactory to the
Company and the Trustee, duly executed by the registered holder or his attorney
duly authorized in writing.

       

      No service charge shall be made for any
exchange or registration of transfer of Subordinated Debt Securities, or issue
of new Subordinated Debt Securities in case of partial redemption, but the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto.

       

      For the Subordinated Debt Securities of
a Series which has a redemption provision, the Company shall not be required (i)
to issue, register the transfer of, or exchange any Subordinated Debt Security
during a period beginning at the opening of business 15 days before the mailing
of a notice of redemption of the Subordinated Debt Securities selected for
redemption and ending on the day of such mailing, or (ii) to register the
transfer of or exchange any Subordinated Debt Security so selected for
redemption in whole or in part, except the unredeemed portions of Subordinated
Debt Securities being redeemed in part.

       

      SECTION
2.07.  Pending the preparation of definitive Subordinated Debt
Securities, the Company may execute, and the Trustee shall authenticate and
deliver, temporary Subordinated Debt Securities (printed, lithographed or
typewritten), of any authorized denomination, and substantially in the form of
the definitive Subordinated Debt Securities, but with such omissions, insertions
and variations as may be appropriate for temporary Subordinated Debt Securities,
all as may be determined by the Company. Temporary Subordinated Debt Securities
may be issued without a recital of any specific redemption prices as prescribed
by the terms of the Series Supplement creating the particular Series and may
contain such reference to any provisions of this Indenture as may be
appropriate. Every temporary Subordinated Debt Security shall be executed by the
Company and be authenticated by the Trustee upon the same conditions and in
substantially the same manner, and with like effect, as the definitive
Subordinated Debt Securities. The Company shall execute and furnish definitive
Subordinated Debt Securities of the same Series as soon as practicable, and
thereupon any or all temporary Subordinated Debt  Securities of such
Series may be surrendered in exchange therefor at the corporate trust office of
the Trustee, and the Trustee shall authenticate and deliver in exchange for such
temporary Subordinated Debt Securities a like aggregate principal amount of
definitive Subordinated Debt Securities of the same Series. Until so exchanged,
the temporary Subordinated Debt Securities of such Series shall be entitled to
the same benefits under this Indenture as definitive Subordinated Debt
Securities of the same Series authenticated and delivered
hereunder.  

       

      
        
           

        

        
          -15-

          
            

          

        

        
           

        

      

      SECTION
2.08.  In case any temporary or definitive Subordinated Debt Security
shall become mutilated or be destroyed, lost or stolen, the Company in its
discretion may execute, and the Trustee shall authenticate and deliver, a new
Subordinated Debt Security of a like Series, in exchange and substitution for
the mutilated Subordinated Debt Security or in lieu of and substitution for the
Subordinated Debt Security destroyed, lost or stolen. In every case, the
applicant for a substituted Subordinated Debt Security shall furnish to the
Company and the Trustee such security or indemnity as may be required by them to
save each of them harmless, and, in every case of destruction, loss or theft,
the applicant shall also furnish to the Company and to the Trustee evidence to
their satisfaction of the destruction, loss or theft of such Subordinated Debt
Security and of the ownership thereof. The Trustee may authenticate any such
substituted Subordinated Debt Security and deliver the same upon the request or
authorization of the Company. Upon the issuance of any substituted Subordinated
Debt Security, the Company may require the payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation thereto and
any other expenses connected therewith, including fees and expenses of the
Trustee. In case any Subordinated Debt Security which has matured or is about to
mature or has been called for redemption shall become mutilated or be destroyed,
lost or stolen, the Company may, instead of issuing a substitute Subordinated
Debt Security of a like Series, pay or authorize the payment of the same
(without surrender thereof except in the case of a mutilated Subordinated Debt
Security) if the applicant for such payment shall furnish the Company and the
Trustee with such security or indemnity as may be required by them to save each
of them harmless, and, in case of destruction, loss or theft, evidence to the
satisfaction of the Company and the Trustee of the destruction, loss or theft of
such Subordinated Debt Security and of the ownership
thereof.  

       

      Every substituted Subordinated Debt
Security issued pursuant to the provisions of this Section 2.08 upon evidence
that any Subordinated Debt Security is destroyed, lost or stolen shall, with
respect to such Subordinated Debt Security, constitute an additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen
Subordinated Debt Security shall be found at any time, and shall be entitled to
all the benefits of this Indenture equally and proportionately with any and all
other Subordinated Debt Securities of the same Series duly issued hereunder. All
Subordinated Debt Securities shall be held and owned upon the express condition
that the foregoing provisions are exclusive with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Subordinated Debt Securities,
and shall preclude any and all other rights or remedies, notwithstanding any law
or statute existing or hereafter enacted to the contrary with respect to the
replacement or payment of negotiable instruments or other securities without
their surrender.

       

      SECTION
2.09.  All Subordinated Debt Securities surrendered for payment,
redemption, registration of transfer or exchange shall, if surrendered to the
Company or any paying agent, be delivered to the Trustee for cancellation, or,
if surrendered to the Trustee, shall be canceled by it, and no Subordinated Debt
Securities shall be issued in lieu thereof except as expressly permitted by any
of the provisions of this Indenture. On request of the Company, the Trustee
shall deliver to the Company canceled Subordinated Debt Securities held by the
Trustee; provided, however, that the Trustee may at any time destroy any
canceled Subordinated Debt Securities and deliver to the Company a certificate
of such destruction. If any of the Subordinated Debt Securities are acquired by
the Company, however, such acquisition shall not operate as a redemption or
satisfaction of the indebtedness represented by such Subordinated Debt
Securities unless and until the same are delivered to the Trustee or surrendered
to the Trustee for cancellation.  

       

      
        
           

        

        
          -16-

          
            

          

        

        
           

        

      

      SECTION
2.10.  Except as provided in Section 3.01, nothing in this Indenture
or in the Subordinated Debt Securities, expressed or implied, shall give or be
construed to give to any person, firm or corporation, other than the parties
hereto and the holders of the Subordinated Debt Securities of a Series, any
legal or equitable right, remedy or claim under or in respect of this Indenture,
or under any covenant, condition or provision herein contained; all its
covenants, conditions and provisions being for the sole benefit of the parties
hereto and of the holders of the Subordinated Debt Securities of such
Series.  

       

      ARTICLE
THREE

      SUBORDINATION
OF SUBORDINATED DEBT SECURITIES.

       

      SECTION
3.01.  Unless otherwise specified in the related Series Supplement and
except as otherwise provided in Section 3.09, the Company, for itself, its
successors and assigns, covenants and agrees, and each holder of Subordinated
Debt Securities, by his acceptance thereof, likewise covenants and agrees, that,
notwithstanding any other provisions of the Subordinated Debt Securities, this
Indenture or any other agreement under which the Subordinated Debt Securities
are outstanding, the payment of the principal of, and the premium or prepayment
charge, if any, sinking funds and interest on, each and all of the Subordinated
Debt Securities is hereby expressly subordinated, to the extent and in the
manner hereinafter set forth, to the prior payment in full of all Senior
Indebtedness of the Company.  

       

      SECTION
3.02. (a)  Unless otherwise specified in the related Series Supplement and
except as otherwise provided in Section 3.09, upon any distribution of assets of
the Company, upon any dissolution, winding up, liquidation, reorganization,
recapitalization or readjustment of the Company or its securities (whether in
bankruptcy, insolvency or receivership proceedings or upon an assignment for the
benefit of creditors or any other arrangement or marshaling of the assets and
liabilities of the Company, or otherwise):  

       

      (1)           the
holders of Senior Indebtedness of the Company shall first be entitled to receive
payment in full, or have provision satisfactory to such holders made for payment
in full, of the principal thereof, and the premium or prepayment charge, if any,
and interest thereon (including interest thereon accruing before or in respect
of periods subsequent to the commencement of any such bankruptcy, insolvency,
receivership, liquidation, reorganization or similar proceedings for dissolution
or winding up of the Company), before the holders of the Subordinated Debt
Securities are entitled to receive any payment or distribution in respect of the
principal of or interest on, the Subordinated Debt Securities, and

       

      (2)           any
payment or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, to which the holders of the
Subordinated Debt Securities would be entitled except for the provisions of
these subparagraphs (a)-(h) shall be paid by the liquidating trustee or agent or
other person making such payment or distribution, directly to the holders of the
Senior Indebtedness of the Company or their representative or representatives,
ratably according to the aggregate amounts remaining unpaid on account of the
principal of, and premium or prepayment charge, if any, and interest on, the
Senior Indebtedness of the Company held or represented by such holders
(including interest thereon accruing before or in respect of periods subsequent
to the commencement of any such proceedings as set forth above), to the extent
necessary to make payment in full of all Senior Indebtedness of the Company
remaining unpaid, after giving effect to any concurrent payment or distribution,
or provision therefor, to or for the holders of such Senior Indebtedness of the
Company.

       

      
        
          
             

          

          
            -17-

            
              

            

          

          
             

          

        

      

      

      (b)           Unless
specified otherwise in the related Series Supplement and except as otherwise
provided in Section 3.09, no payment on account of principal of, or premium, if
any, or interest on, the Subordinated Debt Securities shall be made by the
Company or received by any holder of the Subordinated Debt Securities, and no
redemption, retirement, purchase or other acquisition of the Subordinated Debt
Securities shall be made by the Company, (i) unless full payment of amounts then
due for principal of, premium and prepayment charge, if any, and interest on,
and sinking funds for, Senior Indebtedness of the Company has been made or duly
provided for in money or money's worth and (ii) if, at the time thereof or
immediately after giving effect thereto, there exists (and has not been waived)
an event of default or an event which with lapse of time or notice or both would
be an event of default under the provisions of any Senior Indebtedness of the
Company or any agreement under which such Senior Indebtedness of the Company is
then outstanding.

       

      As used in this subparagraph (b), the
term “Senior Indebtedness of the Company” shall not include (x) Senior
Indebtedness of the Company of the kind described in clause (a)(iii) or (a)(iv)
of the definition of Senior Indebtedness of the Company in Section 1.01, or (y)
any refundings, renewals or extensions of any Senior Indebtedness of the Company
of the kind described in clause (x) above.

       

      (c)           In
the event that any payment or distribution of assets of the Company of any kind
or character, whether in cash, property or securities, shall be received by the
holders of the Subordinated Debt Securities which such holders are not entitled
to receive under these subparagraphs (a)-(h), such payment or distribution shall
be held in trust by such holders of the Subordinated Debt Securities for, and
immediately paid over to, the holders of Senior Indebtedness of the Company
remaining unpaid or not provided for or their representative or representatives,
ratably according to the aggregate amounts remaining unpaid on account of the
principal of, and premium or prepayment charge, if any, and interest on, such
Senior Indebtedness of the Company, until all such Senior Indebtedness of the
Company shall have been paid in full, after giving effect to any concurrent
payment or distribution or provision therefor, to the holders of such Senior
Indebtedness of the Company.

       

      (d)           Upon
the payment in full of all Senior Indebtedness of the Company, the holders of
the Subordinated Debt Securities, ratably according to the aggregate amounts
owing thereon for principal, premium or prepayment charge, if any, and interest,
shall be subrogated to the rights of holders of Senior Indebtedness of the
Company to receive payments or distributions of assets of the Company applicable
to Senior Indebtedness of the Company until the principal of, premium or
prepayment charge, if any, and interest on the Subordinated Debt Securities
shall be paid in full. No such payments or distributions applicable to Senior
Indebtedness of the Company shall, as between the Company, its creditors other
than holders of Senior Indebtedness of the Company and holders of the
Subordinated Debt Securities, be deemed to be a payment by the Company on
account of the Subordinated Debt Securities; it being understood that the
provisions of these subparagraphs (a)-(h) are and are intended solely for the
purpose of defining the relative rights of the holders of the Subordinated Debt
Securities, on the one hand, and the holders of Senior Indebtedness of the
Company, on the other hand.

       

      
        
           

        

        
          -18-

          
            

          

        

        
           

        

      

      (e)           Unless
specified otherwise in the related Series Supplement and except as otherwise
provided in Section 3.09, in the event the Subordinated Debt Securities are
declared due and payable by the holders thereof prior to their final expressed
maturity date (under circumstances when the foregoing provisions of these
subparagraphs relative to bankruptcy, insolvency, receivership, liquidation,
reorganization or similar proceedings for dissolution or winding up of the
Company shall not be applicable) no payment of the principal of, or interest on,
the Subordinated Debt Securities which is due solely by reason of such
declaration shall be made, nor shall any application be made of any property or
assets of the Company to the purchase or other acquisition or retirement of the
Subordinated Debt Securities, unless, in either case, all principal of, and
premium or prepayment charge, if any, and interest on, Senior Indebtedness of
the Company shall be paid in full.

       

      (f)           The
holders of Senior Indebtedness of the Company may, at any time and from time to
time, without the consent of or notice to the holders of the Subordinated Debt
Securities, without incurring responsibility to the holders of the Subordinated
Debt Securities and without impairing or releasing the obligations of the
holders of the Subordinated Debt Securities hereunder to the holders of Senior
Indebtedness of the Company: (i) change the manner, place or terms of payment or
change or extend the time of payment of, or renew or alter Senior Indebtedness
of the Company, or otherwise amend in any manner Senior Indebtedness of the
Company or any instrument evidencing the same or any agreement under which
Senior Indebtedness of the Company is outstanding; (ii) sell, exchange, release
or otherwise deal with any property by whomsoever at any time pledged or
mortgaged to secure, or howsoever securing, Senior Indebtedness of the Company;
(iii) release anyone liable in any manner for the collection of Senior
Indebtedness of the Company; (iv) exercise or refrain from exercising any rights
against the Company and others; and (v) apply any sums by whomsoever paid or
howsoever realized to Senior Indebtedness of the Company.

       

      (g)           Unless
specified otherwise in the related Series Supplement and except as otherwise
provided in Section 3.09, so long as any Senior Indebtedness of the Company
shall remain outstanding, the holders of the Subordinated Debt Securities will
not declare the Subordinated Debt Securities due and payable by reason of any
default arising solely from the nonperformance or nonobservance of any provision
in any instrument evidencing Senior Indebtedness of the Company or in any
agreement under which any Senior Indebtedness of the Company is outstanding, and
the holders of the Subordinated Debt Securities will not bring or join with any
creditor (unless the holders of a majority in principal amount of outstanding
Senior Indebtedness of the Company shall also join) in bringing any proceeding
against the Company under any bankruptcy, reorganization, readjustment of debt,
arrangement of debt, receivership, liquidation or insolvency law or statute now
or hereafter in effect.

       

      
        
           

        

        
          -19-

          
            

          

        

        
           

        

      

      (h)           The
foregoing provisions regarding subordination are and are intended solely for the
purpose of defining the relative rights of the holders of Senior Indebtedness of
the Company on the one hand and the holders of the Subordinated Debt Securities
on the other hand. Such provisions are for the benefit of the holders of Senior
Indebtedness of the Company and shall be enforceable by them directly against
the holders of the Subordinated Debt Securities, and no holder of Senior
Indebtedness of the Company shall be prejudiced in his right to enforce
subordination of the Subordinated Debt Securities by any act or failure to act
by the Company or anyone in custody of its assets or property. Nothing contained
in the Subordinated Debt Securities, this Indenture or any other agreement under
which the Subordinated Debt Securities are outstanding is intended to or shall
impair, as between the Company and the holders of the Subordinated Debt
Securities, the obligations of the Company, which are unconditional and
absolute, to pay to the holders of the Subordinated Debt Securities the
principal of, premium, if any, and interest on, the Subordinated Debt Securities
as and when the same shall become due in accordance with their terms, nor shall
anything herein prevent the holders of the Subordinated Debt Securities from
exercising all remedies otherwise permitted by applicable law upon default under
the Subordinated Debt Securities, this Indenture or any other agreement under
which the Subordinated Debt Securities are outstanding, subject, however, to the
rights under the foregoing subparagraphs of the holders of Senior Indebtedness
of the Company.

       

      Nothing in this Section 3.02 shall
apply to claims of, or payments to, the Trustee under or pursuant to Section
8.06.

       

      SECTION
3.03.  No right of any present or future holder of any Senior
Indebtedness of the Company to enforce subordination, as herein provided, shall
at any time in any way be prejudiced or impaired by any act or failure to act on
the part of the Company or by any act or failure to act, in good faith, by any
such holder, or by any non-compliance by the Company with the terms, provisions
and covenants of this Indenture, regardless of any knowledge thereof any such
holder may have or be otherwise charged with.  

       

      SECTION
3.04.  Nothing contained in this Article Three or elsewhere in this
Indenture, or in any of the Subordinated Debt Securities, shall, however, (a)
affect the obligation of the Company to make, or prevent the Company from
making, at any time, except as provided in Section 3.02, payments of principal
of, or premium, if any, or interest on, the Subordinated Debt Securities or as a
Sinking Fund for the Subordinated Debt Securities, or (b) prevent the
application by the Trustee or any paying agent of any moneys deposited with it
hereunder by the Company to the payment of or on account of the principal of, or
the premium, if any, or interest on, the Subordinated Debt Securities or as a
Sinking Fund for the Subordinated Debt Securities, if the Trustee or such paying
agent, as the case may be, did not have the written notice provided for in
Section 3.06 on or prior to the second business day preceding the date such
payment is due; provided, however, that, unless prior to the date on which the
notice of redemption of any Subordinated Debt Securities is mailed pursuant to
Article Four the Trustee or any paying agent shall have received such notice,
the Trustee or any paying agent shall have full power and authority to receive
any moneys which may be paid to it for such purpose and to apply the same, to
the redemption of such Subordinated Debt Securities.  

       

      SECTION
3.05.  Each holder of Subordinated Debt Securities by his acceptance
thereof authorizes and directs the Trustee in his behalf to take such action as
may be necessary or appropriate to effectuate between the holders of
Subordinated Debt Securities and the holders of Senior Indebtedness of the
Company the subordination provided in this Article Three and appoints the
Trustee his attorney-in-fact for such purpose.  

       

      
        
           

        

        
          -20-

          
            

          

        

        
           

        

      

      SECTION
3.06.  Notwithstanding the provisions of this Article Three or any
other provisions of this Indenture, neither the Trustee nor any paying agent
shall be charged with knowledge of the existence of any Senior Indebtedness of
the Company, or of any default in the payment of the principal of, or premium,
if any, or interest on, or the existence of, or failure to comply with, any
covenant of or condition in, any Senior Indebtedness of the Company, or of the
maturity thereof by lapse of time, acceleration or otherwise, or of the
existence of any other fact which would prohibit the making of any payment
provided for hereunder to or by the Trustee, unless and until the Trustee or
such paying agent shall have received written notice thereof from the Company or
a holder, or a trustee or similar representative of any class, of Senior
Indebtedness of the Company; and, prior to the receipt of any such written
notice, the Trustee or any paying agent shall be entitled to assume that no such
default or other failure exists; provided, however, that, unless on the second
business day prior to the date upon which by the terms hereof any such moneys
may become payable for any purpose (including, without limitation, the payment
of either the principal of, or premium, if any, or interest on, any Subordinated
Debt Security) the Trustee or any paying agent shall have received the notice
provided for in this Section 3.06, then, anything herein contained to the
contrary notwithstanding, the Trustee or any paying agent shall have full power
and authority to receive such moneys and to apply the same to the purpose for
which they were received, and shall not have any liability for any such
application notwithstanding any notice to the contrary which may be received by
it on or after such date; and provided, further, that, unless prior to the date
on which the notice of redemption of any Subordinated Debt Securities of a
Series is mailed pursuant to Article Four the Trustee or any paying agent shall
have received such notice, then, anything herein contained to the contrary
notwithstanding, the Trustee or any paying agent shall have full power and
authority to receive any moneys which may be paid to it for such purpose and to
apply the same to the redemption of such Subordinated Debt Securities, and shall
not be affected by any notice to the contrary which may be received by it on or
after such date.  

       

      SECTION
3.07.  Notwithstanding anything herein contained to the contrary, all
the provisions of this Indenture shall, except as otherwise provided in Sections
3.09, 8.04, 8.06, 13.02 and 15.09, be subject to the provisions of this Article
Three, so far as the same may be applicable thereto.  

       

      SECTION
3.08.  In case at any time any paying agent other than the Trustee
shall have been appointed by the Company and be then acting hereunder, the term
“Trustee” as used in this Article Three shall in such case (unless the context
shall otherwise require) be construed as extending to and including such paying
agent within its meaning as fully for all intents and purposes as if such paying
agent were named in this Article Three in place of the
Trustee.  

       

      SECTION
3.09.  Money or securities deposited in trust with the Trustee
pursuant to and in accordance with Section 13.01 shall be for the sole benefit
of holders of Subordinated Debt Securities of such Series and, to the extent
allocated for the payment of such Subordinated Debt Securities, shall not be
subject to the subordination provisions of this Article Three. Otherwise, any
deposit of moneys by the Company with the Trustee (whether or not in trust) for
the payment of the principal of, or premium, if any, or interest or sinking
funds on, any Subordinated Debt Securities of such Series shall be subject to
the provisions of Sections 3.01 and 3.02 except that, if two business days prior
to the date on which by the terms of this Indenture any such moneys may become
payable for any purpose (including, without limitation, the payment of either
the principal of, or premium, if any, or interest on, any Subordinated Debt
Security of such Series), the Trustee shall not have received with respect to
such moneys the notice provided for in Section 3.06, then the Trustee or the
paying agent shall have full power and authority to receive such moneys and to
apply the same to the purpose for which they were received, and shall not have
any liability for any such application notwithstanding any notice to the
contrary which may be received by it after such date. This Section shall be
construed solely for the benefit of the Trustee and paying agent and shall not
otherwise affect the rights of holders of the Senior Indebtedness of the
Company.  

       

      
        
          
          

        

        
          -21-

          
            

          

        

        
          
          

        

      

       

      ARTICLE
FOUR

      REDEMPTION
OF SUBORDINATED DEBT SECURITIES - SINKING FUND.

       

      SECTION
4.01.  Subject to the provisions of Article Three and to any contrary
provisions set forth in the related Series Supplement, the Company may, at its
option, at any time prior to maturity, redeem all, or from time to time any
part, of the Subordinated Debt Securities of a Series, otherwise than through
the operation of the Sinking Fund provided for in this Article Four, at the
redemption prices and upon the conditions, if any, applicable thereto, as
permitted by the related Series Supplement for redemption otherwise than through
the operation of the Sinking Fund. The election of the Company to exercise such
option shall be evidenced by an Officers' Certificate.  

       

      Unless otherwise specified in the
related Series Supplement, the Company may not, however, redeem any of the
Subordinated Debt Securities of a Series pursuant to such option prior to the
time prescribed by the terms of the Series Supplement creating the particular
Series, directly or indirectly from or in anticipation of money borrowed having
an interest cost to the Company of less than the interest rate applicable to the
Subordinated Debt Securities of such Series. In the event the Company shall
optionally redeem any Subordinated Debt Securities of a Series prior to such
time, the Company shall deliver to the Trustee an Officers' Certificate stating
that such redemption will comply with this requirement.

       

      SECTION
4.02.  In case the Company shall desire to exercise such right to
redeem all or, as the case may be, any part of the Subordinated Debt Securities
in accordance with the right reserved so to do, it shall so notify the Trustee
in writing and it shall give notice of such redemption to holders of the
Subordinated Debt Securities to be redeemed as hereinafter in this Section 4.02
provided.  

       

      Notice of redemption shall be given to
the holders of Subordinated Debt Securities to be redeemed as a whole or in part
by mailing by first-class mail a notice of such redemption not less than 20 nor
more than 60 days prior to the date fixed for redemption to their last addresses
as they shall appear upon the Subordinated Debt Security Register, but failure
to give such notice by mail to the holders of any Subordinated Debt Security, or
any defect therein, shall not affect the validity of the proceedings for the
redemption of any other Subordinated Debt Security.

       

      
        
           

        

        
          -22-

          
            

          

        

        
           

        

      

      Each such notice of redemption shall
specify the date fixed for redemption and the redemption price at which
Subordinated Debt Securities are to be redeemed, and shall state that payment of
the redemption price of the Subordinated Debt Securities to be redeemed will be
made at the offices or agencies to be maintained by the Company in accordance
with the provisions of Section 5.02, upon presentation and surrender of such
Subordinated Debt Securities, that unpaid interest accrued to the date fixed for
redemption will be paid as specified in said notice, and that on and after said
date interest thereon will cease to accrue. If less than all the Subordinated
Debt Securities are to be redeemed, the notice of redemption shall specify the
Subordinated Debt Securities to be redeemed as a whole or in part. In case any
Subordinated Debt Security is to be redeemed in part only, the notice which
relates to such Subordinated Debt Security shall state the portion of the
principal amount thereof to be redeemed, and shall state that on and after the
redemption date, upon surrender of such Subordinated Debt Security, a new
Subordinated Debt Security or Subordinated Debt Securities of a like Series in
principal amount equal to the unredeemed portion thereof will be
issued.

       

      If less than all the Subordinated Debt
Securities of a Series are to be redeemed, the Company shall give the Trustee at
least 30 days' written notice in advance of the date fixed for redemption as to
the aggregate principal amount of Subordinated Debt Securities of such Series to
be redeemed, and thereupon the Trustee shall select, by random lot, the
particular Subordinated Debt Securities of such Series to be redeemed in whole
or in part and shall thereafter promptly notify the Company in writing of the
numbers of the Subordinated Debt Securities of such Series or portions thereof
to be redeemed. The selection of Subordinated Debt Securities to be redeemed may
provide for the selection of portions (equal to $1,000 (unless otherwise
provided in the related Series Supplement) or a multiple thereof) of the
principal of Subordinated Debt Securities of a denomination larger than $1,000
(unless otherwise provided in the related Series Supplement). The Subordinated
Debt Securities (or portions thereof) so selected shall be deemed duly
designated for redemption for all purposes of this Indenture. For the purposes
of such selection, the Company will close the Subordinated Debt Security
Register with respect to such Series for the purposes of exchange and transfer
of Subordinated Debt Securities of such Series, for a period not exceeding 15
days.

       

      SECTION
4.03.  If the giving of notice of redemption shall have been completed
as above provided, the Subordinated Debt Securities or portions of Subordinated
Debt Securities specified in such notice shall become due and payable on the
date and at the place stated in such notice at the applicable redemption price,
together with unpaid interest accrued to the date fixed for redemption, and on
and after such date fixed for redemption (unless the Company shall default in
the payment of such Subordinated Debt Securities at the redemption price,
together with unpaid interest accrued to the date fixed for redemption) interest
on the Subordinated Debt Securities or portions of Subordinated Debt Securities
so called for redemption shall cease to accrue. On presentation and surrender of
such Subordinated Debt Securities at the place stated in said notice, the said
Subordinated Debt Securities shall be paid and redeemed by the Company at the
applicable redemption price, together with unpaid interest accrued to the date
fixed for redemption.  

       

      Upon presentation of any Subordinated
Debt Security which is redeemed in part only, the Company shall execute, and the
Trustee shall authenticate and deliver, at the expense of the Company, a new
Subordinated Debt Security or Subordinated Debt Securities of a like Series in
principal amount equal to the unredeemed portion of the Subordinated Debt
Security so presented. Prior to the date fixed for the redemption of any
Subordinated Debt Securities as provided in this Article Four, the Company shall
deposit in trust with the Trustee or with any paying agent, or if and to the
extent that it shall be acting as its own paying agent, the Company shall set
aside, segregate and hold in trust, funds sufficient to redeem the Subordinated
Debt Securities or portions thereof to be redeemed on such date, at the
applicable redemption price, together with unpaid interest accrued to the date
fixed for redemption.

       

      
        
           

        

        
          -23-

          
            

          

        

        
           

        

      

      SECTION
4.04.  As and for a Sinking Fund for the retirement of Subordinated
Debt Securities of a Series, if as set forth in the related Series Supplement
the Company so elects to include a Sinking Fund obligation in the terms of the
Subordinated Debt Securities of a particular Series, the Company covenants that
on or before the applicable date or dates set forth in the Series Supplement, it
will pay to the Trustee a sum in cash sufficient to retire by redemption at the
Sinking Fund redemption price the principal amount of the Subordinated Debt
Securities of such Series on the date as prescribed by the terms of the Series
Supplement creating the particular Series; provided, however, that in any such
year in which such day is not a business day, such payment shall be made to the
Trustee on the last business day next preceding such day. In any year, the
Company may, at its sole option, increase the payment required to be made
pursuant to this Section 4.04 for such year by an amount as prescribed by the
terms of such Series Supplement; provided that such increase shall be an
integral multiple of $1,000 (unless otherwise provided in the related Series
Supplement).  

       

      All cash paid to the Trustee pursuant
to the provisions of this Section 4.04 shall be applied in accordance with the
provisions of this Article Four.

       

      SECTION
4.05.  In lieu of making all or any part of any mandatory Sinking Fund
payment as required pursuant to Section 4.04 in cash, the Company may (a)
deliver to the Trustee for cancellation Subordinated Debt Securities of such
Series theretofore issued and acquired by the Company at any time prior to the
first day of the month next preceding the due date of such payment and not
theretofore made the basis for the reduction of a Sinking Fund payment, or (b)
deliver to the Trustee an Officers' Certificate setting forth the principal
amount of any Subordinated Debt Securities of such Series theretofore redeemed
and paid pursuant to the provisions of this Article Four (otherwise than through
the operation of the mandatory Sinking Fund), or which have been duly called for
redemption (otherwise than through the operation of the mandatory Sinking Fund)
and the redemption price of which, together with the accrued and unpaid interest
thereon, shall have been deposited in trust for that purpose, as in this Article
Four provided, and in either case not theretofore made the basis of the
reduction of a Sinking Fund payment; and in each such case the principal amount
of Subordinated Debt Securities of such Series required by Section 4.04 to be
redeemed shall be reduced to the extent of the principal amount of the
Subordinated Debt Securities of such Series so delivered or referred to in such
certificate.  

       

      SECTION
4.06.  On or before the applicable date specified in the Series
Supplement of each year in which the Company is obligated to make a Sinking Fund
payment, the Company shall deliver to the Trustee:  

       

      (a)           An
Officers’ Certificate stating:

       

      
        
           

        

        
          -24-

          
            

          

        

        
           

        

      

      (i)    
        the manner in which the Company will
fulfill its Sinking Fund obligation under this Article Four for that
year:

       

      (ii)     
      the amount of cash, if any, which the
Company will pay to the Trustee on or before the next succeeding Sinking Fund
payment date;

       

      (iii)           the
principal amount of Subordinated Debt Securities of such Series, if any, which
the Company will surrender to the Trustee for cancellation in lieu of the
payment of cash, and that such Subordinated Debt Securities were theretofore
issued and acquired by the Company prior to said Sinking Fund payment date and
have not theretofore been made the basis for the reduction of a Sinking Fund
payment; and

       

      (iv)           the
principal amount of any Subordinated Debt Securities of such Series set forth in
a certificate of the character described in clause (b) of Section 4.05, if any
such certificate is to be concurrently delivered to the Trustee;

       

      (b)           The
Subordinated Debt Securities, if any, referred to in Section 4.06(a)(iii);
and

       

      (c)           The
certificate, if any, referred to in Section 4.06(a)(iv).

       

      SECTION
4.07.  On or before the applicable date specified in the Series
Supplement or, if such day is not a business day, on the last business day next
preceding such date of each year in which the Company is obligated to make a
Sinking Fund payment, the Company shall pay to the Trustee the amount of cash,
if any, payable on or before such Sinking Fund payment date, after giving credit
for the principal amount of any Subordinated Debt Securities delivered pursuant
to clause (a) of Section 4.05 or referred to in any certificate delivered
pursuant to clause (b) of Section 4.05, in respect of such Sinking Fund payment
date.  

       

      SECTION
4.08.  In the event that the amount of cash specified in the
certificate given pursuant to Section 4.06, plus the amount, if any, of cash
then held pursuant to Section 4.10, is in excess of one percent of the required
Sinking Fund payment, the Trustee shall, as soon as practicable after the
receipt of such certificate, take the action herein specified to call for
redemption, at the Sinking Fund redemption price, on the next succeeding Sinking
Fund payment date, an amount of Subordinated Debt Securities of such Series
sufficient to exhaust such funds as nearly as may be.  

       

      SECTION
4.09.  The Subordinated Debt Securities to be redeemed from time to
time as provided in Section 4.04 or Section 4.08 shall be selected by the
Trustee for redemption in the manner provided in Section 4.02 and notice thereof
shall be given by the Trustee to the Company, and the Company hereby irrevocably
authorizes the Trustee, in the name of and at the expense of the Company, to
give notice on behalf of the Company of the call of such Subordinated Debt
Securities, all in the manner and with the effect in this Article Four
specified, except that, in addition to the matters required to be included in
such notice by Section 4.02, such notice shall also state that the Subordinated
Debt Securities therein designated for redemption are to be redeemed through
operation of the Sinking Fund. Such Subordinated Debt Securities shall be
redeemed and paid in accordance with such notice in the manner and with the
effect provided in Sections 4.02 and 4.03.  

       

      
        
           

        

        
          -25-

          
            

          

        

        
           

        

      

      Subordinated Debt Securities redeemed
through operation of the Sinking Fund are to be redeemed at the redemption price
prescribed by the terms of the Series Supplement creating the particular Series
for redemption through operation of the Sinking Fund, such price being sometimes
referred to herein as the Sinking Fund redemption price.

       

      SECTION
4.10.  In the event that at the time of the receipt of the Officers'
Certificate required by Section 4.06 the sum of the amount of cash required to
be paid to the Trustee pursuant to Section 4.07 and the amount of cash then in
the hands of the Trustee in the Sinking Fund and not required for payment of
Subordinated Debt Securities previously called for redemption or purchased
through operation of the Sinking Fund, is one percent of the amount of the
required Sinking Fund payment or less, such moneys shall not, unless requested
by the Company in said Officers' Certificate, be applied to the redemption of
Subordinated Debt Securities, but shall be retained by the Trustee in the manner
directed by the Company in writing and added to the Sinking Fund payment to be
made in cash on the next succeeding Sinking Fund payment date, or, upon request
of the Company, shall be applied by the Trustee, to the extent practicable,
prior to the next succeeding Sinking Fund payment date to the purchase of
Subordinated Debt Securities of such Series, by public or private purchase in
the open market or otherwise, at prices (excluding accrued and unpaid interest
and brokerage commissions) not exceeding the Sinking Fund redemption
price.  

       

      SECTION
4.11.  All Subordinated Debt Securities surrendered to or purchased by
the Trustee, pursuant to the provisions of this Article Four, shall be forthwith
canceled by it, and at the written direction of the Company, such Subordinated
Debt Securities shall be destroyed by the Trustee, which shall deliver its
certificate of destruction thereof to the Company.  

       

      SECTION
4.12.  The Trustee shall not redeem any Subordinated Debt Securities
with Sinking Fund moneys or mail any notice of redemption of Subordinated Debt
Securities during the continuance of any Event of Default with respect to the
Subordinated Debt Securities of such Series, except that where notice of
redemption of any Subordinated Debt Securities shall have been mailed prior to
the occurrence of such Event of Default, the Trustee shall redeem such
Subordinated Debt Securities provided funds are deposited with it for such
purpose. Except as aforesaid, any moneys in the Sinking Fund at such time, and
any moneys thereafter paid into the Sinking Fund, shall during the continuance
of an Event of Default be held as security for the payment of all the
Subordinated Debt Securities; provided, however, that in case such Event of
Default shall have been waived as permitted by this Indenture or otherwise
cured, such moneys shall thereafter be held and applied in accordance with the
provisions of this Article Four.  

       

      ARTICLE
FIVE

      PARTICULAR
COVENANTS OF THE COMPANY.

       

      SECTION
5.01.  The Company will duly and punctually pay or cause to be paid
the principal of, premium, if any, and interest on each of the Subordinated Debt
Securities at the place, at the respective times and in the manner provided in
the Subordinated Debt Securities.  

       

      SECTION
5.02.  As long as any of the Subordinated Debt Securities remain
outstanding, the Company will maintain in the Borough of Manhattan, The City of
New York, an office or agency where the Subordinated Debt Securities may be
presented for registration of transfer and exchange as in this Indenture
provided, and where the Subordinated Debt Securities may be presented for
payment, and where notices or demands to or upon the Company in respect of the
Subordinated Debt Securities or of this Indenture may be served. Such an office
or agency may also be maintained by the Company, at its option, in other
locations. Until otherwise designated by the Company in a written notice to the
Trustee, such office or agency for purposes of registration of transfer and
exchange and presentation for payment shall be the corporate trust offices of
the Trustee. In case the Company shall fail to maintain such office or agency or
shall fail to give such notice of the location or of any change in the location
thereof, notices or demands may be served at the corporate trust office of the
Trustee.  

       

      
        
           

        

        
          -26-

          
            

          

        

        
           

        

      

      SECTION
5.03.  In order to prevent any accumulation of claims for interest
after maturity thereof, the Company will not directly or indirectly extend or
consent to the extension of the time for the payment of any claim for interest
on any of the Subordinated Debt Securities of a Series and will not directly or
indirectly be a party to or approve any such arrangement by the purchase or
funding of said claims for interest or in any other manner. No claim for
interest, the time of payment of which shall have been so extended or which
shall have been so purchased or funded, shall be entitled in case of an Event of
Default with respect to the Subordinated Debt Securities of such Series
hereunder to the benefit of this Indenture except after the prior payment in
full of the principal of all the Subordinated Debt Securities of such Series and
premiums, if any, and of all claims for interest not so extended, purchased or
funded; provided, however, that this Section 5.03 shall not apply in any case
where an extension shall be made pursuant to a plan proposed by the Company to
the holders of all the Subordinated Debt Securities of such Series then
outstanding.  

       

      SECTION
5.04.  The Company, whenever necessary to avoid or fill a vacancy in
the office of Trustee, will appoint, in the manner provided in Section 8.10, a
Trustee, so that there shall at all times be a Trustee
hereunder.  

       

      SECTION
5.05. (a)  The Trustee is appointed the initial paying agent. If the
Company shall appoint a paying agent other than the Trustee, it will cause such
paying agent to execute and deliver to the Trustee an instrument in which such
agent shall agree with the Trustee, subject to the provisions of this Section
5.05,  

       

      (1)           that
it will hold all sums held by it as such agent for the payment of the principal
of, premium, if any, and interest on the Subordinated Debt Securities of a
Series (whether such sums have been paid to it by the Company or by any other
obligor on the Subordinated Debt Securities) in trust for the benefit of the
holders of the Subordinated Debt Securities of such Series,

       

      (2)           that
it will give the Trustee written notice of any default by the Company (or by any
other obligor on the Subordinated Debt Securities of any Series) in making any
payment of the principal of or premium, if any, or interest on the Subordinated
Debt Securities of a Series when the same shall be due and payable,
and

       

      (3)           that
it will, at any time during the continuance of any such default, upon the
written request of the Trustee, forthwith pay to the Trustee all sums so held in
trust by such paying agent.

       

      
        
          
          

        

        
          -27-

          
            

          

        

        
          
          

        

      

       

      (b)           If
the Company shall act as its own paying agent, it will, on or before each due
date of the principal of and premium, if any, or interest on the Subordinated
Debt Securities of a Series, set aside, segregate and hold in trust for the
benefit of the holders of the Subordinated Debt Securities of such Series a sum
sufficient to pay such principal and premium, if any, or interest so becoming
due. The Company will promptly notify the Trustee in writing of any failure by
it to take such action or the failure by any other obligor on the Subordinated
Debt Securities of such Series to make any payment of the principal of or
premium, if any, or interest on the Subordinated Debt Securities of such Series
when the same shall be due and payable.

       

      (c)           Anything
in this Section 5.05 to the contrary notwithstanding, the Company may, at any
time, for the purpose of obtaining a satisfaction and discharge of this
Indenture, or for any other reason, pay or cause to be paid to the Trustee all
sums held in trust by it or any paying agent hereunder, as required by this
Section 5.05, such sums to be held by the Trustee upon the trusts herein
contained.

       

      (d)           Anything
in this Section 5.05 to the contrary notwithstanding, the agreement to hold sums
in trust as provided in this Section 5.05 is subject to the provisions of
Section 13.03 and 13.04.

       

      SECTION
5.06.  On or before the 90th day after the end of the Company's fiscal
year beginning with the year 2007, the Company will file with the Trustee an
Officers' Certificate (which, however, need not comply with Section 15.07)
stating that in the course of the performance of their duties as such officers
they would normally obtain knowledge of any action or failure to act on the part
of the Company in violation of any covenant, agreement, provision or condition
contained in this Indenture, stating whether or not they have obtained knowledge
of any action or failure to act on the part of the Company during the
immediately preceding fiscal year, in violation of any covenant, agreement,
provision or condition contained in this Indenture and, if so, specifying each
such default of which the signers may have knowledge and the nature
thereof.  

       

      ARTICLE
SIX

      LISTS OF
HOLDERS OF SUBORDINATED DEBT SECURITIES

      AND
REPORTS BY THE COMPANY AND THE TRUSTEE.

       

      SECTION
6.01.  The Company covenants and agrees that it will furnish or cause
to be furnished to the Trustee within 60 days after each interest payment date
and at such other times as the Trustee may request in writing, within 30 days
after receipt by the Company of any such request, a list in such form as the
Trustee may reasonably require containing all information in the possession or
control of the Company, or any of its paying agents, other than the Trustee, as
to the names and addresses of the holders of the Subordinated Debt Securities of
any Series obtained since the date as of which the next previous list, if any,
was furnished with respect to such Series; but so long as the Trustee is the
Subordinated Debt Security Registrar no such list shall be required to be
furnished. Any such list may be dated as of a date not more than 15 days prior
to the time such information is furnished or caused to be furnished, and need
not include information received after such date.  

       

      
        
          
             

          

          
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      SECTION
6.02. (a)  The Trustee shall preserve, in as current a form as reasonably
practicable, all information as to the names and addresses of the holders of
Subordinated Debt Securities (1) contained in the most recent list furnished to
it as provided in Section 6.01 and (2) received by it in the capacity of
Subordinated Debt Security Registrar or of paying agent (if so acting)
hereunder. The Trustee may destroy any list furnished to it pursuant to Section
6.01 upon receipt of a new list so furnished.  

       

      (b)           In
case three or more holders of Subordinated Debt Securities (hereinafter referred
to as “applicants”) apply in writing to the Trustee, and furnish to the Trustee
reasonable proof that each such applicant has owned a Subordinated Debt Security
for a period of at least six months preceding the date of such application, and
such application states that the applicants desire to communicate with other
holders of Subordinated Debt Securities of a particular Series (in which case
the applicants must all hold Subordinated Debt Securities of such Series) or
with holders of all Subordinated Debt Securities with respect to their rights
under this Indenture or under the Subordinated Debt Securities, and is
accompanied by a copy of the form of proxy or other communication which such
applicants propose to transmit, then the Trustee shall, within five business
days after the receipt of such application, at its election,
either,

       

      (1)           afford
such applicants access to the information preserved at the time by the Trustee
in accordance with the provisions of subsection (a) of this Section 6.02,
or

       

      (2)           inform
such applicants as to the approximate number of holders of Subordinated Debt
Securities of such Series or all Subordinated Debt Securities, as the case may
be, whose names and addresses appear in the information preserved at the time by
the Trustee, in accordance with the provisions of subsection (a) of this Section
6.02, and as to the approximate cost of mailing to such holders the form of
proxy or other communication, if any, specified in such
application.

       

      If the Trustee shall elect not to
afford such applicants access to such information the Trustee shall, upon the
written request of such applicants, mail to each holder of Subordinated Debt
Securities of such Series or all Subordinated Debt Securities, as the case may
be, whose name and address appears in the information preserved at the time by
the Trustee in accordance with the provisions of subsection (a) of this Section
6.02, a copy of the form of proxy or other communication which is specified in
such request, with reasonable promptness after a tender to the Trustee of the
material to be mailed and of payment, or provision for the payment, of the
reasonable expenses of mailing, unless within five days after such tender, the
Trustee shall mail to such applicants and file with the Securities and Exchange
Commission, together with a copy of the material to be mailed, a written
statement to the effect that, in the opinion of the Trustee, such mailing would
be contrary to the best interests of the holders of Subordinated Debt Securities
of such Series or all Subordinated Debt Securities, as the case may be, or would
be in violation of applicable law. Such written statement shall specify the
basis of such opinion. If said Commission, after opportunity for a hearing upon
the objections specified in the written statements so filed, shall enter an
order refusing to sustain any of such objections or if, after the entry of an
order sustaining one or more of such objections, said Commission shall find,
after notice and opportunity for hearing, that all the objections so sustained
have been met and shall enter an order so declaring, the Trustee shall mail
copies of such material to all holders of Subordinated Debt Securities of such
Series or all Subordinated Debt Securities, as the case may be, with reasonable
promptness after the entry of such order and the renewal of such tender;
otherwise the Trustee shall be relieved of any obligation or duty to such
applicants respecting their application.

       

      
        
           

        

        
          -29-

          
            

          

        

        
           

        

      

      (c)           Each
and every holder of the Subordinated Debt Securities, by receiving and holding
the same, agrees with the Company and the Trustee that neither the Company nor
the Trustee nor any paying agent nor any Subordinated Debt Security Registrar
should be held accountable by reason of the disclosure of any such information
as to the names and addresses of the holders of Subordinated Debt Securities in
accordance with the provisions of subsection (b) of this Section 6.02,
regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable by reason of mailing any material pursuant
to a request made under said subsection (b) or for taking any action in good
faith under said subsection (b).

       

      SECTION
6.03. (a)  The Company covenants and agrees to file with the Trustee,
within 15 days after the Company is required to file the same with the
Securities and Exchange Commission, copies of the annual reports and of the
information, documents and other reports (or copies of such portions of any of
the foregoing as said Commission may from time to time by rules and regulations
prescribe) which the Company may be required to file with said Commission
pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934;
or, if the Company is not required to file information, documents or reports
pursuant to either of such sections, then to file with the Trustee and said
Commission, in accordance with rules and regulations prescribed from time to
time by said Commission, such supplementary and periodic information, documents
and reports which may be required pursuant to Section 13 of the Securities
Exchange Act of 1934 in respect of a security listed and registered on a
national securities exchange as may be prescribed from time to time in such
rules and regulations.  

       

      (b)           The
Company covenants and agrees to file with the Trustee and the Securities and
Exchange Commission, in accordance with the rules and regulations prescribed
from time to time by said Commission, such additional information, documents and
reports with respect to compliance by the Company with the conditions and
covenants provided for in the Indenture as may be required from time to time by
such rules and regulations.

       

      (c)           The
Company covenants and agrees to transmit by mail to the holders of Subordinated
Debt Securities as their names and addresses appear on the Subordinated Debt
Security Register for each Series of Subordinated Debt Securities, (1) within 30
days after the filing thereof with the Trustee, such summaries of any
information, documents and reports required to be filed by the Company pursuant
to subsections (a) and (b) of this Section 6.03 as may be required by rules and
regulations prescribed from time to time by the Securities and Exchange
Commission, and (2) within 120 days after the end of each fiscal year of the
Company, copies of audited financial statements, on a consolidated basis if
applicable, including balance sheets, statements of operations, statements of
shareholders' equity and statements of changes in financial position, together
with the respective reports of independent certified public accountants relating
thereto.

       

      SECTION
6.04. (a)  Within 60 days after May 15 of each year commencing with the
year 2009, so long as any Subordinated Debt Securities of a particular Series
are outstanding hereunder, the Trustee shall transmit to the holders of each
such Series as hereinafter in this Section 6.04 provided, a brief report dated
as of such May 15, with respect to:  

       

      
        
           

        

        
          -30-

          
            

          

        

        
           

        

      

      (1)           its
eligibility under Section 8.09, and its qualifications under Section 8.08, or in
lieu thereof, if to the best of its knowledge it has continued to be eligible
and qualified under such Sections, a written statement to such
effect;

       

      (2)           the
character and amount of any advances (and if the Trustee elects so to state, the
circumstances surrounding the making thereof) made by the Trustee (as such)
which remain unpaid on the date of such report, and for the reimbursement of
which it claims or may claim a lien or charge, prior to that of the Subordinated
Debt Securities of such Series, on any property or funds held or collected by it
as Trustee, except that the Trustee shall not be required (but may elect) to
report such advances if such advances so remaining unpaid aggregate not more
than one-half of one percent of the principal amount of the Subordinated Debt
Securities of such Series outstanding on the date of such report;

       

      (3)           the
amount, interest rate and maturity date of all other indebtedness owing by the
Company (or by any other obligor on the Subordinated Debt Securities) to the
Trustee in its individual capacity, on the date of such report, with a brief
description of any property held as collateral security therefor, except an
indebtedness based upon a creditor relationship arising in any manner described
in paragraphs (2), (3), (4) or (6) of subsection (b) of Section
8.13;

       

      (4)           the
property and funds, if any, physically in the possession of the Trustee as such
on the date of such report;

       

      (5)           any
release, or release and substitution, of property subject to the lien of this
Indenture (and consideration therefor, if any) not previously
reported;

       

      (6)           any
additional issue of Subordinated Debt Securities not previously reported;
and

       

      (7)           any
action taken by the Trustee in the performance of its duties under this
Indenture which it has not previously reported and which in its opinion
materially affects the Subordinated Debt Securities except action in respect of
a default, notice of which has been or is to be withheld by it in accordance
with the provisions of Section 7.07.

       

      (b)           The
Trustee shall transmit to the holders of a Series, as hereinafter provided, a
brief report with respect to the character and amount of any advances (and if
the Trustee elects so to state, the circumstances surrounding the making
thereof) made by the Trustee as such since the date of the last report
transmitted pursuant to the provisions of subsection (a) of this Section 6.04
(or if no such report has yet been so transmitted, since the date of execution
of this Indenture), for the reimbursement of which it claims or may claim a lien
or charge prior to that of the Subordinated Debt Securities of such Series, on
property or funds held or collected by it as Trustee, and which it has not
previously reported pursuant to this subsection (b), except that the Trustee
shall not be required (but may elect) to report such advances if such advances
remaining unpaid at any time aggregate 10 percent or less of the principal
amount of Subordinated Debt Securities of such Series outstanding at such time,
such report to be transmitted within 90 days after such time.

       

      
        
           

        

        
          -31-

          
            

          

        

        
           

        

      

      (c)           Reports
pursuant to this Section 6.04 shall be transmitted by mail to all holders of
Subordinated Debt Securities of a Series, as the names and addresses of such
holders appear upon the Subordinated Debt Security Register.

       

      (d)           A
copy of each such report shall, at the time of such transmission to holders, be
filed by the Trustee with each stock exchange upon which the Subordinated Debt
Securities are listed and also with the Securities and Exchange Commission. The
Company agrees to notify the Trustee when and as the Subordinated Debt
Securities of any Series become listed on any stock exchange.

       

      ARTICLE
SEVEN

      REMEDIES
OF THE TRUSTEE AND HOLDERS OF

      SUBORDINATED
DEBT SECURITIES IN EVENT OF DEFAULT.

       

      SECTION
7.01.  In case one or more of the following Events of Default with
respect to the Subordinated Debt Securities of a Series shall have occurred and
be continuing, that is to say:  

       

      (a)           default
in the payment (whether or not prohibited by the provisions of Article Three) of
any installment of interest upon any of the Subordinated Debt Securities of such
Series as and when the same shall become due and payable, and continuance of
such default for a period of 30 days; or

       

      (b)           default
in the payment (whether or not prohibited by the provisions of Article Three) of
the principal of or premium, if any, on any of the Subordinated Debt Securities
of such Series or of any Sinking Fund payment as and when the same shall become
due and payable either at maturity, upon redemption, by declaration or
otherwise; or

       

      (c)           failure
on the part of the Company duly to observe or perform any other of the covenants
or agreements on the part of the Company in the Subordinated Debt Securities or
in this Indenture contained for a period of 60 days after the date on which
written notice (such written notice to state it is a “Notice of Default”
hereunder) of such failure, requiring the Company to remedy the same, shall have
been given to the Company by the Trustee, or to the Company and the Trustee by
the holders of at least 25 percent in principal amount of the Subordinated Debt
Securities of such Series at the time outstanding; or

       

      (d)           a
court having jurisdiction in the premises shall enter a decree or order for
relief in respect of the Company in an involuntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator
(or similar official) of the Company or for any substantial part of its property
or ordering the winding up or liquidation of its affairs, and such decree or
order shall remain unstayed and in effect for a period of 60 consecutive days;
or

       

      (e)           the
Company shall commence a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or shall consent to
the entry of an order for relief in an involuntary case under any such law, or
consent to the appointment or taking possession by a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or similar official) of the Company
or for any substantial part of its property, or make any general assignment for
the benefit of creditors, or shall fail generally to pay its debts as they
become due, or corporate action shall be taken by the Company in furtherance of
any such action;

       

      
        
           

        

        
          -32-

          
            

          

        

        
           

        

      

      then, and
in each and every such case, unless the principal of all the Subordinated Debt
Securities of such Series shall have already become due and payable, either the
Trustee or the holders of not less than 25 per cent in aggregate principal
amount of the Subordinated Debt Securities of such Series then outstanding
hereunder, by notice in writing to the Company (and to the Trustee if given by
holders of Subordinated Debt Securities of such Series) may, and at the request
of the holders of not less than 25 per cent in aggregate principal amount of the
Subordinated Debt Securities of such Series then outstanding hereunder, the
Trustee by notice in writing to the Company shall, declare the principal of all
the Subordinated Debt Securities of such Series to be due and payable
immediately, and upon any such declaration the same shall become and shall be
immediately due and payable, anything in this Indenture or in the said
Subordinated Debt Securities of such Series contained to the contrary
notwithstanding. This provision, however, is subject to the condition that if,
at anytime after the principal of the Subordinated Debt Securities of such
Series shall have been so declared due and payable, and before any judgment or
decree for the payment of the moneys due shall have been obtained or entered as
hereinafter provided, the Company shall pay or shall deposit with the Trustee a
sum sufficient to pay all matured installments of interest upon all the
Subordinated Debt Securities of that Series and the principal of and premium, if
any, on any and all such Subordinated Debt Securities which shall have become
due otherwise than by acceleration (with interest upon such principal and
premium, if any, and, to the extent that payment of such interest is enforceable
under applicable law, upon overdue installments of interest, at the rate borne
by the Subordinated Debt Securities of that Series to the date of such payment
or deposit) and such amount as shall be sufficient to cover reasonable
compensation to the Trustee, its agents, attorneys and counsel, and all other
expenses and liabilities incurred, and all advances made, by the Trustee except
as a result of its negligence or bad faith, and any and all defaults under the
Indenture, other than the nonpayment of the principal of Subordinated Debt
Securities of that Series which shall have become due by acceleration, shall
have been remedied -- then, and in every such case, the holders of a majority in
aggregate principal amount of the Subordinated Debt Securities of such Series
then outstanding, by written notice to the Company and to the Trustee, may waive
all defaults and rescind and annul such declaration and its consequences; but no
such waiver or rescission and annulment shall extend to or shall affect any
subsegment default or shall impair any right consequent thereon.

       

      In case the Trustee shall have
proceeded to enforce any right under this Indenture and such proceedings shall
have been discontinued or abandoned because of such rescission or annulment or
for any other reason or shall have been determined adversely to the Trustee,
then, and in every such case, the Company, the Trustee and the holders of the
Subordinated Debt Securities of such Series shall be restored respectively to
their former positions and rights hereunder, and all rights, remedies and powers
of the Company and the Trustee and the holders of the Subordinated Debt
Securities of such Series shall continue as though no such proceedings had been
taken.

       

      The Trustee shall not be charged with
notice of any default or Event of Default under subsections (c), (d) or (e) of
this Section 7.01 unless the Trustee shall have actually received written notice
thereof from the Company or any holder of Subordinated Debt Securities
describing said default or Event of Default or unless the Trustee shall have
actually become aware thereof.

       

      
        
           

        

        
          -33-

          
            

          

        

        
           

        

      

      SECTION
7.02.  The Company covenants that (1) in case default shall be made in
the payment of any installment of interest on any of the Subordinated Debt
Securities of a Series, as and when the same shall become due and payable, and
such default, shall have continued for a period of 60 days, or (2) in case
default shall be made in the payment of the principal of or premium, if any, on
any of the Subordinated Debt Securities of a Series or of any Sinking Fund
payment when the same shall have become payable, whether upon maturity of the
Subordinated Debt Securities of such Series or upon redemption or upon
declaration or otherwise then, upon demand of the Trustee, the Company will pay
to the Trustee, for the benefit of the holders of the Subordinated Debt
Securities of such Series, the whole amount that then shall have become due and
payable on all such Subordinated Debt Securities of such Series for principal
and premium, if any, or interest, or both, as the case may be, with interest
upon the overdue principal and premium, if any, and (to the extent that payment
of such interest is enforceable under applicable law) upon overdue installments
of interest at the rate borne by the Subordinated Debt Securities of such
Series; and, in addition thereto, such further amount as shall be sufficient to
cover reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel.  

       

      In case the Company shall fail
forthwith to pay such amounts upon such demand, the Trustee, in its own name and
as trustee of an express trust, shall be entitled and empowered to institute any
action or proceedings at law or in equity for the collection of the sums so due
and unpaid, and may prosecute any such action or proceedings to judgment or
final decree, and may enforce any such judgment or final decree against the
Company or any other obligor upon the Subordinated Debt Securities and collect
in the manner provided by law out of the property of the Company or other
obligor upon the Subordinated Debt Securities wherever situated the moneys
adjudged or decreed to be payable.

       

      In case there shall be pending
proceedings for the bankruptcy or for the reorganization of the Company or any
other obligor upon the Subordinated Debt Securities under the Federal bankruptcy
laws, as now or hereafter constituted, or any other Federal or State bankruptcy,
insolvency or similar laws relative to the Company or to such other obligor, its
creditors or its property, or in case a receiver or trustee shall have been
appointed for its property, or in case of any other judicial proceedings
relative to the Company or other obligor upon the Subordinated Debt Securities,
its creditors or its property, the Trustee irrespective of whether the principal
of any Subordinated Debt Securities shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the Trustee
shall have made any demand pursuant to the provisions of this Section 7.02,
shall be entitled and empowered, by intervention in such proceedings or
otherwise, to file and prove a claim or claims for the whole amount of principal
and premium, if any, and interest owing and unpaid in respect of the
Subordinated Debt Securities, and to file such other papers or documents as may
be necessary or advisable in order to have the claims of the Trustee (including
any claim for reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel) and of the holders of Subordinated Debt
Securities allowed in any judicial proceedings relative to the Company or other
obligor upon the Subordinated Debt Securities, its creditors or its property,
and to collect and receive any moneys or other property payable or deliverable
on any such claims, and to distribute all amounts received with respect to the
claims of the holders of Subordinated Debt Securities and of the Trustee on
their behalf; and any receiver, assignee, liquidator, sequestrator or trustee in
bankruptcy or reorganization is hereby authorized by each of the holders of
Subordinated Debt Securities to make payments to the Trustee, and, in the event
that the Trustee shall consent to the making of payments directly to the holders
of Subordinated Debt Securities, to pay to the Trustee such amount as shall be
sufficient to cover reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due to
the Trustee under Section 8.06.

       

      
        
           

        

        
          -34-

          
            

          

        

        
           

        

      

      All rights of action and of asserting
claims under this Indenture, or under any of the Subordinated Debt Securities,
may be enforced by the Trustee without the possession of any of the Subordinated
Debt Securities, or the production thereof in any trial or other proceedings
relative thereto, and any such action or proceedings instituted by the Trustee
shall be brought in its own name and as trustee of an express trust, and any
recovery of judgment shall be for the ratable benefit of the holders of the
Subordinated Debt Securities.

       

      In case of a default of which the
Trustee has or is deemed to have notice hereunder occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce the rights vested
in it by this Indenture by such appropriate judicial proceedings as the Trustee
shall deem most effectual to protect and enforce any of such rights, either at
law or in equity or in bankruptcy or otherwise, whether for the specified
enforcement of any covenant or agreement contained in this Indenture or in aid
of the exercise of any power granted in this Indenture, or to enforce any other
legal or equitable right vested in the Trustee by this Indenture or by
law.

       

      SECTION
7.03.  Subject to the provisions of Article Three, any moneys
collected by the Trustee pursuant to Section 7.02 shall be applied in the
following order, at the date or dates fixed by the Trustee and, in case of the
distribution of such moneys on account of principal or premium, if any, or
interest, upon presentation of the several Subordinated Debt Securities, and
stamping thereon the payment, if only partially paid, and upon surrender thereof
if fully paid:  

       

      FIRST: To the payment of costs and
expenses of collection, and reasonable compensation, expenses, disbursements and
advances of the Trustee, it agents and counsel, and any other amounts due to the
Trustee under this Indenture, including without limitation amounts due under
Section 8.06;

       

      SECOND: In case the principal of the
Subordinated Debt Securities of a Series shall not have become due, to the
payment of interest on the Subordinated Debt Securities, in the order of the
maturity of the installments of such interest, with interest (to the extent that
such interest has been collected by the Trustee) upon the overdue installments
of interest at the rate borne by the Subordinated Debt Securities of such
Series, such payments to be made ratably to the persons entitled thereto,
without discrimination or preference:

       

      THIRD: In case the principal of the
Subordinated Debt Securities of a Series shall have become due, by declaration
or otherwise, to the payment of the whole amount then owing and unpaid upon the
Subordinated Debt Securities of such Series for principal, and premium, if any,
and interest, with interest on the overdue principal, and premium, if any, and
(to the extent that such interest has been collected by the Trustee) upon
overdue installments of interest at the rate borne by the Subordinated Debt
Securities of such Series; and in case such moneys shall be insufficient to pay
in full the whole amount so due and unpaid on the Subordinated Debt Securities
of such Series, then to the payment of such principal, and premium, if any, and
interest, without preference or priority of principal, and premium, if any, over
interest, or of interest over principal, and premium, if any, or of any
installment of interest over any other installment of interest, or of any
Subordinated Debt Security of such Series over any other Subordinated Debt
Security of such Series, ratably to the aggregate of such principal, and
premium, if any, and accrued and unpaid interest.

       

      
        
           

        

        
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      SECTION
7.04.  No holder of any Subordinated Debt Security of a Series shall
have any right by virtue or by availing of any provision of this Indenture to
institute any action or proceedings at law or in equity or in bankruptcy or
otherwise, upon or under or with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless
such holder previously shall have given to the Trustee written notice of default
in respect of such Series and of the continuance thereof, as hereinbefore
provided, and unless also the holders of not less than 25 percent in aggregate
principal amount of the Subordinated Debt Securities of such Series then
outstanding shall have made written request upon the Trustee to institute such
action or proceedings in its own name as Trustee hereunder and shall have
furnished to the Trustee such reasonable indemnity as it may require against the
costs, expenses and liabilities to be incurred therein or thereby, and the
Trustee, for 60 days after its receipt of such notice, request and furnishing of
indemnity, shall have failed to institute any such action or proceedings and no
direction inconsistent with such written request shall have been given to the
Trustee pursuant to Section 7.06; it being understood and intended, and being
expressly covenanted by the taker and holder of every Subordinated Debt Security
of such Series with every other such taker and holder and the Trustee, that no
one or more holders of Subordinated Debt Securities of a Series shall have any
right in any manner whatever by virtue or by availing of any provision of this
Indenture to affect, disturb or prejudice the rights of the holders of any other
of such Subordinated Debt Securities of such Series, or to obtain or seek to
obtain priority over or preference to any other such holder, or to enforce any
right under this Indenture, except in the manner herein provided and for the
equal, ratable and common benefit of all holders of Subordinated Debt Securities
of such Series. For the protection and enforcement of the provisions of this
Section 7.04, each and every holder of such Series and the Trustee shall be
entitled to such relief as can be given either at law or in
equity.  

       

      Notwithstanding any other provisions in
this Indenture, however, the right of any holder of any Subordinated Debt
Security to receive payment of the principal of, and premium, if any, and
interest on, such Subordinated Debt Security, on or after the respective due
dates expressed in such Subordinated Debt Security, or to institute suit for the
enforcement of any such payment on or after such respective dates, shall not be
impaired or affected without the consent of such holder.

       

      SECTION
7.05.  All powers and remedies given by this Article Seven to the
Trustee or to the holders of Subordinated Debt Securities shall, to the extent
permitted by law, be deemed cumulative and not exclusive of any thereof or of
any other powers and remedies available to the Trustee or such holders, by
judicial proceedings or otherwise, to enforce the performance or observance of
the covenants and agreements contained in this Indenture, and no delay or
omission of the Trustee or of any holder of any of the Subordinated Debt
Securities to exercise any right or power accruing upon any default occurring
and continuing as aforesaid, shall impair any such right or power, or shall be
construed to be a waiver of any such default or an acquiescence therein; and,
subject to the provisions of Section 7.04, every power and remedy given by this
Article Seven or by law to the Trustee or to the holders of Subordinated Debt
Securities may be exercised from time to time, and as often as shall be deemed
expedient, by the Trustee or by such holders.  

       

      
        
           

        

        
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      SECTION
7.06.  The holders of a majority in aggregate principal amount of the
Subordinated Debt Securities of a Series at the time outstanding shall have the
right to direct the time, method, and place of conducting any proceeding of any
remedy available to the Trustee with respect to the Subordinated Debt Securities
of such Series, or exercising any trust or power conferred on the Trustee with
respect to such Series; provided, however, that the Trustee shall be entitled to
receive indemnity or security reasonably satisfactory to it prior to following
such direction or taking such action, and providing further that subject to the
provisions of Section 8.01 the Trustee shall have the right to decline to follow
any such direction if the Trustee being advised by counsel shall determine that
the action so directed may not lawfully be taken, or if the Trustee in good
faith shall, by a responsible officer or officers, determine that the action so
directed would be unduly prejudicial to the holders of the Subordinated Debt
Securities of such Series not taking part in such direction or would involve the
Trustee in personal liability. Prior to the declaration of the maturity of the
Subordinated Debt Securities of any Series as provided in Section 7.01, the
holders of a majority in aggregate principal amount of the Subordinated Debt
Securities of a Series at the time outstanding may on behalf of the holders of
all of the Subordinated Debt Securities of such Series waive any past default
hereunder and its consequences, except a default in the payment of the principal
of, or premium, if any, or interest on, any of the Subordinated Debt Securities
of such Series or in respect of a covenant or provision hereof which under
Section 11.02 cannot be modified or amended without the consent of the holder of
each Subordinated Debt Security so affected. In the case of any such waiver, the
Company, the Trustee and the holders of the Subordinated Debt Securities of such
Series shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other default
or impair any right consequent thereon.  

       

      SECTION
7.07.  The Trustee shall, within 90 days after the occurrence of a
default with respect to a Series of which the Trustee has or is deemed to have
knowledge hereunder, give to the holders of such Series, in the manner and to
the extent provided in subsection (c) of Section 6.04, notice of all such
defaults, unless such default shall have been cured before the giving of such
notice (the term “default” or “defaults” for the purposes of this Section 7.07
being hereby defined to be any event or events, as the case may be, specified in
clause (a), (b), (c), (d) and (e) of Section 7.01, not including periods of
grace, if any, provided for therein and irrespective of the giving of the
written notice specified in clause (c) of Section 7.01); provided, however,
that, except in the case of default in the payment of the principal of, or
premium, if any, or interest on, any of the Subordinated Debt Securities, or in
the payment of any Sinking Fund payment, the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive
committee, or a trust committee of directors and/or responsible officers, of the
Trustee in good faith determines that the withholding of such notice is in the
interests of the holders of such Series.  

       

      SECTION
7.08.  All parties to this Indenture agree, and each holder of any
Subordinated Debt Security by his acceptance thereof shall be deemed to have
agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against
the Trustee for any action taken or omitted by it as Trustee, the filing by any
party litigant in such suit of an undertaking to pay the costs of such suit, and
that such court may in its discretion assess reasonable costs, including
reasonable attorneys fees' against any party litigant in such suit, having due
regard to the merits and good faith of the claims or defenses made by such party
litigant; but the provisions of this Section 7.08 shall not apply to any suit
instituted by the Trustee, to any suit instituted by any holder of Subordinated
Debt Securities, or group of holders of Subordinated Debt Securities, holding in
the aggregate more than 10 percent in aggregate principal amount of the
Subordinated Debt Securities of a Series then outstanding, or to any suit
instituted by any holder of Subordinated Debt Securities for the enforcement of
the payment of the principal of, or premium, if any, or interest on, any
Subordinated Debt Security, on or after the due date expressed in such
Subordinated Debt Security.  

       

      
        
           

        

        
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      ARTICLE
EIGHT

      CONCERNING
THE TRUSTEE.

       

      SECTION
8.01.  The Trustee, prior to the occurrence of an Event of Default
with respect to the Subordinated Debt Securities of a particular Series and
after the curing or waiver of all Events of Default with respect to the
Subordinated Debt Securities of a particular Series which may have occurred,
undertakes to perform such duties and only such duties as are specifically set
forth in this Indenture. In case an Event of Default with respect to the
Subordinated Debt Securities of any Series has occurred (which has not been
cured or waived), the Trustee shall exercise such of the rights and powers
vested in it by this Indenture, and use the same degree of care and skill in
their exercise, as a prudent man would exercise or use under the circumstances
in the conduct of his own affairs.  

       

      No provision of this Indenture shall be
construed to relieve the Trustee from liability for its own negligent action,
its own negligent failure to act, or its own willful misconduct, except
that

       

      (a)           prior
to the occurrence of an Event of Default with respect to the Subordinated Debt
Securities of a particular Series and after the curing of all Events of Default
with respect to the Subordinated Debt Securities of any Series which may have
occurred:

       

      (1)           the
duties and obligations of the Trustee shall be determined solely by the express
provisions of this Indenture, and the Trustee shall not be liable except for the
performance of such duties and obligations as are specifically set forth in this
Indenture, and no implied covenants or obligations shall be read into this
Indenture against the Trustee; and

       

      (2)           in
the absence of bad faith on the part of the Trustee, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon any certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture; but in the case of
any such certificates or opinions which by any provision hereof are specifically
required to be furnished to the Trustee, the Trustee shall be under a duty to
examine the same to determine whether or not they conform to the requirements of
this Indenture;

       

      
        
           

        

        
          -38-

          
            

          

        

        
           

        

      

      (b)           the
Trustee shall not be liable for any error of judgment made in good faith by a
responsible officer, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;

       

      (c)           The
Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the holders of not
less than a majority in aggregate principal amount of the Subordinated Debt
Securities of a Series at the time outstanding relating to the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture
relating to such Series.

       

      None of the provisions contained in
this Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder or in the exercise of any of its rights or powers, if there is
reasonable ground for believing that the repayment of such funds is not
reasonably assured to it or at the option of the Trustee indemnity reasonably
satisfactory to the Trustee against such risk or liability has not been
provided.

       

      Whether or not herein expressly so
provided, every provision of this Indenture relating to the conduct or affecting
the liability of or affording protection to the Trustee shall be subject to the
provisions of this Section.

       

      SECTION
8.02.  Except as otherwise provided in Section
8.01:  

       

      (a)           The
Trustee may rely and shall be protected in acting or refraining from acting upon
any resolution, certificate, statement, instrument, opinion, report, notice,
request, consent. direction, approval, order, bond, debenture, or other paper or
document believed by it to be genuine and to have been signed or presented by
the proper party or parties;

       

      (b)           Any
request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by an instrument signed in the name of the Company by the
Chairman of the Board, President or any Vice President and the Secretary or an
Assistant Secretary or the Treasurer or an Assistant Treasurer (unless other
evidence in respect thereof be herein specifically prescribed); and any
resolution of the Board of Directors of the Company may be evidenced to the
Trustee by a copy thereof certified by the Secretary or an Assistant Secretary
of the Company;

       

      (c)           The
Trustee may consult with counsel and the written advice of such counsel or any
Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in good faith
and in reliance thereon;

       

      (d)           The
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request, order or direction of any of the
holders of Subordinated Debt Securities, pursuant to the provisions of this
Indenture, unless such holders shall have furnished to the Trustee reasonable
security or indemnity against the costs, expenses and liabilities which may be
incurred therein or thereby;

       

      
        
           

        

        
          -39-

          
            

          

        

        
           

        

      

      (e)           The
Trustee shall not be liable for any action taken or omitted by it in good faith
and believed by it to be authorized or within the discretion or rights or powers
conferred upon it by this Indenture;

       

      (f)           The
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, discretion, approval, bond, debenture or other
paper or document, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit, and, if
the Trustee shall determine to make such further inquiry or investigation, it
shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney; and

       

      (g)           The
Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys, and the Trustee
shall not be responsible for any misconduct or negligence on the part of any
agent or attorney (other than an employee of the Trustee) appointed by it with
due care hereunder.

       

      SECTION
8.03.  The recitals contained herein and in the Subordinated Debt
Securities (except in the Trustee's certificate of authentication) shall be
taken as the statements of the Company, and the Trustee assumes no
responsibility for the correctness of the same. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Subordinated Debt Securities. The Trustee shall not be accountable for the use
or application by the Company of any of the Subordinated Debt Securities or of
the proceeds thereof.  

       

      SECTION
8.04.  The Trustee or any paying agent or Subordinated Debt Security
Registrar, in its individual or any other capacity, may become the owner or
pledgee of Subordinated Debt Securities with the same rights it would have if it
were not Trustee, paying agent or Subordinated Debt Security
Registrar.  

       

      SECTION
8.05.  Subject to the provisions of Article Three and Section 13.04,
all moneys received by the Trustee shall, until used or applied as herein
provided, be held in trust for the purposes for which they were received, but
need not be segregated from other funds except to the extent required by law.
Neither the Trustee nor any paying agent shall be under any liability for
interest on any moneys received by it hereunder except such as it may agree in
writing with the Company to pay thereon. So long as no Event of Default with
respect to the Subordinated Debt Securities of any Series shall have occurred
and be continuing, all interest allowed on any such moneys shall be paid from
time to time upon the written order of the Company, signed by its President or
any Vice President or its Treasurer or an Assistant
Treasurer.  

       

      SECTION
8.06.  The Company covenants and agrees to pay to the Trustee from
time to time, and the Trustee shall be entitled to, reasonable compensation for
all services rendered by it hereunder (which shall not be limited by any
provision of law in regard to the compensation of a trustee of an express
trust), and, except as otherwise expressly provided, the Company will pay or
reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with
any of the provisions of this Indenture (including the reasonable compensation
and the expenses and disbursements of its counsel and of all persons not
regularly in its employ) except any such expense, disbursement or advance as may
arise from its negligence or bad faith.  

       

      
        
           

        

        
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      If any property other than cash shall
at any time be subject to a lien in favor of the holders of Subordinated Debt
Securities, the Trustee, if and to the extent authorized by a receivership or
bankruptcy court of competent jurisdiction or by the supplemental instrument
subjecting such property to such lien, shall be entitled to make advances for
the purpose of preserving such property or of discharging tax liens or other
prior liens or encumbrances thereon, provided that the Trustee shall be under no
affirmative duty to make such advances. The Company also covenants to indemnify
the Trustee, its directors, officers, employees or agents for, and to hold each
of them harmless against, any loss, liability or expense incurred without
negligence, intentional wrongdoing or bad faith on the part of the Trustee, its
directors, officers, employees or agents, arising out of or in connection with
the acceptance or administration of this trust, the offering, issuance or sale
of the Subordinated Debt Securities or any or all other transactions
contemplated hereunder, including the reasonable cost and expenses of defending
against any claim of liability in the premises. The obligations of the Company
under this Section 8.06 to compensate the Trustee, its directors, officers,
employees or agents and to pay or reimburse the Trustee, its directors,
officers, employees or agents for expenses, disbursements and advances shall
constitute additional indebtedness hereunder. The Trustee shall give the Company
prompt notice of any action commenced against it in respect of which indemnity
may be sought hereunder. The Trustee’s failure to so notify the Company shall
not relieve the Company from any liability under this Indenture with respect to
such action. In any such action the Company, by written notice to the Trustee,
may assume the defense thereof with counsel of the Trustee's choosing, who shall
be subject to the approval of the Company; and such approval shall not be
unreasonably withheld by the Company. In no event shall the Company be required
to indemnify or reimburse the Trustee hereunder in respect of any claim settled
or compromised without the Company’s consent. In no event shall the Company be
liable for the fees and expenses, which in all cases must be reasonable under
the circumstances, of more than one counsel in connection with any one action.
Such additional indebtedness shall be secured by a lien prior to that of the
Subordinated Debt Securities upon all property and funds held or collected by
the Trustee as such, except funds held in trust for the benefit of the holders
of particular Subordinated Debt Securities of any Series.

       

      SECTION
8.07.  Except as otherwise provided in Section 8.01, whenever in the
administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or
suffering any action hereunder, such matter (unless other evidence in respect
thereof be herein specifically prescribed) may, in the absence of negligence or
bad faith on the part of the Trustee, be deemed to be conclusively proved and
established by an Officers' Certificate delivered to the Trustee and such
Officers' Certificate, in the absence of negligence or bad faith on the part of
the Trustee, shall be full warrant to the Trustee for any action taken, suffered
or omitted by it under the provisions of this Indenture upon the faith
thereof.  

       

      SECTION
8.08. (a)  If the Trustee has or shall acquire any conflicting interest, as
defined in this Section 8.08, it shall, within 90 days after ascertaining that
it has such conflicting interest, either eliminate such conflicting interest or
resign in the manner and with the effect specified in Section 8.10, such
resignation to become effective upon the appointment of a successor trustee and
such successor's acceptance of such appointment, and the Company shall take
prompt steps to have a successor appointed in the manner provided in Section
8.10.  

       

      
        
           

        

        
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      (b)           In
the event that the Trustee shall fail to comply with the provisions of
subsection (a) of this Section 8.08, the Trustee shall, within 10 days after the
expiration of such 90 day period, transmit notice of such failure to the holders
of Subordinated Debt Securities in the manner and to the extent provided in
subsection (c) of Section 6.04.

       

      (c)           For
the purposes of this Section 8.08 the Trustee shall be deemed to have a
conflicting interest if

       

      (1)           the
Trustee is trustee under another indenture under which any other securities, or
certificates of interest or participation in any other securities, of the
Company, are outstanding unless such other indenture is a collateral trust
indenture under which the only collateral consists of Subordinated Debt
Securities issued under this Indenture, provided that there shall be excluded
from the operation of this paragraph any other indenture or indentures under
which other securities, or certificates of interest or participation in other
securities of the Company are outstanding if (i) this Indenture and such other
indenture or indentures are wholly unsecured and such other indenture or
indentures are hereafter qualified under the Trust Indenture Act of 1939, unless
the Securities and Exchange Commission shall have found and declared by order
pursuant to subsection (b) of Section 305 or subsection (c) of Section 307 of
the Trust Indenture Act of 1939 that differences exist between the provisions of
this Indenture and the provisions of such other indenture or indentures which
are so likely to involve a material conflict of interest as to make it necessary
in the public interest or for the protection of investors to disqualify the
Trustee from acting as such under this Indenture or such other indenture or
indentures, or (ii) the Company shall have sustained the burden of proving, on
application to the Securities and Exchange Commission and after opportunity for
hearing thereon that the trusteeship under this Indenture and such other
indenture or indentures is not so likely to involve a material conflict of
interest as to make it necessary in the public interest or for the protection of
investors to disqualify the Trustee from acting as such under one of such
indentures;

       

      (2)           the
Trustee or any of its directors or executive officers is an obligor upon the
Subordinated Debt Securities or an underwriter for the Company;

       

      (3)           the
Trustee directly or indirectly controls or is directly or indirectly controlled
by or is under direct or indirect common control with the Company or an
underwriter for the Company;

       

      (4)           the
Trustee or any of its directors or executive officers is a director, officer,
partner, employee, appointee, or representative of the Company, or of an
underwriter (other than the Trustee itself) for the Company who is currently
engaged in the business of underwriting, except that (A) one individual may be a
director and/or an executive officer of the Trustee and a director and/or an
executive officer of the Company, but may not be at the same time an executive
officer of both the Trustee and the Company; (B) if and so long as the number of
directors of the Trustee in office is more than nine, one additional individual
may be a director and/or an executive officer of the Trustee and a director of
the Company; and (C) the Trustee may be designated by the Company, or by any
underwriter for the Company, to act in the capacity of transfer agent,
registrar, custodian, paying agent, fiscal agent, escrow agent, or depositary,
or in any other similar capacity, or, subject to the provisions of paragraph (1)
of this subsection (c), to act as trustee whether under an indenture or
otherwise;

       

      
        
           

        

        
          -42-

          
            

          

        

        
           

        

      

      (5)           10
percent or more of the voting securities of the Trustee is beneficially owned
either by the Company or by any director, partner, or executive officer thereof,
or 20 percent or more of such voting securities is beneficially owned,
collectively, by any two or more of such persons; or 10 percent or more of the
voting securities of the Trustee is beneficially owned either by an underwriter
for the Company or by any director, partner, or executive officer thereof, or is
beneficially owned, collectively, by any two or more such persons;

       

      (6)           the
Trustee is the beneficial owner of, or holds as collateral security for an
obligation which is in default (as hereinafter in this subsection (c) defined),
(A) 5 percent or more of the voting securities, or 10 per cent or more of any
other class of security, of the Company, not including the Subordinated Debt
Securities issued under this Indenture and securities issued under any other
indenture under which the Trustee is also trustee, or (B) 10 percent or more of
any class of security of an underwriter for the Company;

       

      (7)           the
Trustee is the beneficial owner of, or holds as collateral security for an
obligation which is in default (as hereinafter in this subsection (c) defined),
5 per cent or more of the voting securities of any person who, to the knowledge
of the Trustee, owns 10 percent or more of the voting securities of, or controls
directly or indirectly, or is under direct or indirect common control with, the
Company;

       

      (8)           the
Trustee is the beneficial owner of, or holds as collateral security for an
obligation which is in default (as hereinafter in this subsection (c) defined),
10 per cent or more of any class of security of any person who, to the knowledge
of the Trustee, owns 50 per cent or more of the voting securities of the
Company; or

       

      (9)           the
Trustee owns on May 15 in any calendar year, in the capacity of executor,
administrator, testamentary or inter vivos trustee, guardian, committee or
conservator, or in any other similar capacity, an aggregate of 25 per cent or
more of the voting securities, or of any class of security, of any person, the
beneficial ownership of a specified percentage of which would have constituted a
conflicting interest under paragraph (6), (7) or (8) of this subsection (c). As
to any such securities of which the Trustee acquired ownership through becoming
executor, administrator, or testamentary trustee of an estate which included
them, the provisions of the preceding sentence shall not apply, for a period of
two years from the date of such acquisition, to the extent that such securities
do not exceed 25 percent of such voting securities or 25 per cent of any such
class of security. Promptly after May 15, in each calendar year, the Trustee
shall make a check of its holdings of such securities in any of the
above-mentioned capacities as of such May 15. If the Company fails to make
payment in full of principal of or interest on any of the Subordinated Debt
Securities when and as the same become due and payable, and such failure
continues for 30 days thereafter, the Trustee shall make a prompt check of its
holdings of such securities in any of the above-mentioned capacities as of the
date of the expiration of such 30 day period, and after such date,
notwithstanding the foregoing provisions of this paragraph (9), all such
securities so held by the Trustee, with sole or joint control over such
securities vested in it, shall, but only so long as such failure shall continue,
be considered as though beneficially owned by the Trustee for the purposes of
paragraphs (6), (7) and (8) of this subsection (c).

       

      
        
           

        

        
          -43-

          
            

          

        

        
           

        

      

      The specifications of percentages in
paragraphs (5) to (9), inclusive, of this subsection (c) shall not be construed
as indicating that the ownership of such percentages of the securities of a
person is or is not necessary or sufficient to constitute direct or indirect
control for the purposes of paragraph (3) or (7) of this subsection
(c).

       

      For the purposes of paragraphs (6),
(7), (8) and (9) of this subsection (c) only, (A) the terms “security” and
“securities” shall include only such securities as are generally known as
corporate securities, but shall not include any note or other evidence of
indebtedness issued to evidence an obligation to repay moneys lent to a person
by one or more banks, trust companies or banking firms, or any certificate of
interest or participation in any such note or evidence of indebtedness; (B) an
obligation shall be deemed to be “in default” when a default in payment of
principal shall have continued for 30 days or more and shall not have been
cured; and (C) the Trustee shall not be deemed to be the owner or holder of (i)
any security which it holds as collateral security (as trustee or otherwise) for
an obligation which is not in default as defined in clause (B) above, or (ii)
any security which it holds as collateral security under this Indenture,
irrespective of any default hereunder, or (iii) any security which it holds as
agent for collection, or as custodian, escrow agent, or depositary, or in any
similar representative capacity.

       

      Except as above provided, the word
“security” or “securities” as used in this Indenture shall mean any note, stock,
treasury stock, bond, debenture, evidence of indebtedness, certificate of
interest or participation in any profit-sharing agreement, collateral-trust
certificate, pre-organization certificate or subscription, transferable share,
investment contract, voting-trust certificate, certificate of deposit for a
security, fractional undivided interest in oil, gas, or other mineral rights,
or, in general, any interest or instrument commonly known as a “security”, or
any certificate of interest or participation in, temporary or interim
certificate for, receipt for, guarantee of or warrant or right to subscribe to
or purchase, any of the foregoing.

       

      (d)           For
the purposes of this Section 8.08:

       

      (1)           The
term “underwriter” when used with reference to the Company shall mean every
person who, within three years prior to the time as of which the determination
is made, has purchased from the Company with a view to, or has offered for sale
or has sold for the Company in connection with, the distribution of any security
of the Company outstanding at such time, or has participated or has had a direct
or indirect participation in any such undertaking, or has participated or has
had a participation in the direct or indirect underwriting of any such
undertaking, but such term shall not include a person whose interest was limited
to a commission from an underwriter or dealer not in excess of the usual and
customary distributors' or sellers' commission.

       

      (2)           The
term “director” shall mean any director of a corporation or any individual
performing similar functions with respect to any organization whether
incorporated or unincorporated.

       

      
        
           

        

        
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      (3)           The
term “person” shall mean an individual, a corporation, a partnership, an
association, a joint-stock company, a trust, an unincorporated organization, or
a government or political subdivision thereof. As used in this paragraph, the
term “trust” shall include only a trust where the interest or interests of the
beneficiary or beneficiaries are evidenced by a security.

       

      (4)           The
term “voting security” shall mean any security presently entitling the owner or
holder thereof to vote in the direction or management of the affairs of a
person, or any security issued under or pursuant to any trust, agreement or
arrangement whereby a trustee or trustees or agent or agents for the owner or
holder of such security are presently entitled to vote in the direction or
management of the affairs of a person.

       

      (5)           The
term “Company” shall mean any obligor upon the Subordinated Debt
Securities.

       

      (6)           The
term “executive officer” shall mean the president, every vice president, every
trust officer, the cashier, the secretary and the treasurer of a corporation,
and any individual customarily performing similar functions with respect to any
organization whether incorporated or unincorporated, but shall not include the
chairman of the board of directors.

       

      The percentage of voting securities and
other securities specified in this Section 8.08 shall be calculated in
accordance with the following provisions:

       

      (A)           A
specified percentage of the voting securities of the Trustee, the Company or any
other person referred to in this Section 8.08 (each of whom is referred to as a
“person” in this paragraph) means such amount of the outstanding voting
securities of such person as entitles the holder or holders thereof to cast such
specified percentage of the aggregate votes which the holders of all the
outstanding voting securities of such person are entitled to cast in the
direction or management of the affairs of such person.

       

      (B)           A
specified percentage of a class of securities of a person means such percentage
of the aggregate amount of securities of the class outstanding.

       

      (C)           The
term “amount”, when used in regard to securities, means the principal amount if
relating to evidences of indebtedness, the number of shares if relating to
capital shares, and the number of units if relating to any other kind of
security.

       

      (D)           The
term “outstanding” means issued and not held by or for the account of the
issuer. The following securities shall not be deemed outstanding within the
meaning of this definition:

       

      (i)      
     Securities of an issuer held in a sinking fund
relating to another class of securities of the issuer of the same
class.

       

      (ii)           Securities
of an issuer held in a sinking funds relating to another class of securities of
the issuer, if the obligation evidenced by such other class of securities is not
in default as to principal or interest or otherwise.

       

      
        
           

        

        
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      (iii)           Securities
pledged by the issuer thereof as security for an obligation of the issuer not in
default as to principal or interest or otherwise.

       

      (iv)           Securities
held in escrow if placed in escrow by the issuer thereof;

       

      provided,
however, that any voting securities of an issuer shall be deemed outstanding if
any person other than the issuer is entitled to exercise the voting rights
thereof.

       

      (E)           A
security shall be deemed to be of the same class as another if both securities
confer upon the holder or holders thereof substantially the same rights and
privileges; provided, however, that, in the case of secured evidences of
indebtedness, all of which are issued under a single indenture, differences in
the interest rates or maturity dates of various series thereof shall not be
deemed sufficient to constitute such series different classes; and provided,
further, that, in the case of unsecured evidences of indebtedness, differences
in the interest rates or maturity dates thereof shall not be deemed sufficient
to constitute them securities of different classes, whether or not they are
issued under a single indenture.

       

      SECTION
8.09.  The Trustee hereunder shall at all times be a corporation or
association organized and doing business under the laws of the United States or
of any State or of the District of Columbia, authorized under such laws to
exercise corporate trust powers, having a combined capital and surplus of at
least $10,000,000, subject to supervision or examination by Federal, State or
District of Columbia authority. If such corporation or association publishes
reports of condition at least annually, pursuant to law or to the requirements
of the aforesaid supervising or examining authority, then for the purposes of
this Section 8.09, the combined capital and surplus of such corporation shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. In case at any time the Trustee shall cease to
be eligible in accordance with the provisions of this Section 8.09, the Trustee
shall resign immediately in the manner and with the effect specified in Section
8.10.  

       

      SECTION
8.10. (a)  The Trustee may at any time resign with respect to one or more
or all Series of Subordinated Debt Securities by giving written notice by
first-class mail of such resignation to the Company. Upon receiving such notice
of resignation, the Company shall promptly appoint a successor trustee by
written instrument in duplicate executed by order of the Board of Directors of
the Company, one copy of which instrument shall be delivered to the resigning
Trustee and one copy to the successor trustee. If no successor trustee shall
have been so appointed and have accepted appointment within 30 days after the
giving of such notice of resignation, the resigning Trustee may petition any
court of competent jurisdiction for the appointment of a successor trustee, or
any holder who has been a bona fide holder of a Subordinated Debt Security or
Subordinated Debt Securities of the applicable Series for at least six months
may, subject to the provisions of Section 8.08, on behalf of himself and all
others similarly situated, petition any such court for the appointment of a
successor trustee. Such court may thereupon, after such notice, if any, as it
may deem proper and prescribe, appoint a successor trustee. Any resignation of
the Trustee shall be subject to the provisions of subparagraph (d)
hereof.  

       

      (b)           In
case at any time any of the following shall occur -

       

      
        
           

        

        
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      (1)           the
Trustee shall fail to comply with the provisions of subsection (a) of Section
8.08 with respect to any Series of Subordinated Debt Securities after written
request therefor by the Company or by any holder who has been a bona fide holder
of a Subordinated Debt Security or Subordinated Debt Securities of the
applicable Series for at least six months, or

       

      (2)           the
Trustee shall cease to be eligible in accordance with the provisions of Section
8.09 and shall fail to resign after written request therefor by the Company or
by any such holder, or

       

      (3)           the
Trustee shall become incapable of acting, or shall be adjudged a bankrupt or
insolvent, or a receiver of the Trustee or of its property shall be appointed,
or any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation,

       

      then, in
any such case, the Company may remove the Trustee and appoint a successor
trustee by written instrument, in duplicate, executed by order of the Board of
Directors of the Company, one copy of which instrument shall be delivered to the
Trustee so removed and one copy to the successor trustee, subject to the
provisions of Section 8.08, any holder who has been a bona fide holder of a
Subordinated Debt Security or Subordinated Debt Securities of such Series for at
least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee with
respect to the applicable Series and the appointment of a successor trustee.
Such court may thereupon, after such notice, if any, as it may deem proper and
prescribe, remove the Trustee with respect to the applicable Series and appoint
a successor trustee.

       

      (b)           The
Company may also remove the Trustee without cause, pursuant to the procedures
set forth in Section 8.10(b) hereof, if the Company has given 60 days written
notice to the Trustee and the holders of the applicable Series of Subordinated
Debt Securities and has delivered to the Trustee and such holders of
Subordinated Debt Securities an Officers' Certificate stating:

       

      (1)           the
reasons for such removal;

       

      (2)           that
such removal will in no way be detrimental to the interests of such holders of
Subordinated Debt Securities; and

       

      (3)           the
identity of the successor trustee to be appointed;

       

      provided
that (i) such successor trustee shall have a combined capital and surplus of at
least $10,000,000, (ii) the rating assigned to the debt obligations of such
successor trustee by the rating agency or agencies rating any such debt
obligations shall be no lower than the rating assigned, at the time of
appointment of the Trustee being replaced, to the debt obligations of the
Trustee being replaced, and (iii) such successor trustee shall be independent
and shall be eligible to act as Trustee pursuant to Sections 8.08 and 8.09
hereof; and, provided further that if after receiving such notice, the holders
of a majority in principal amount of the outstanding Subordinated Debt
Securities of the applicable Series shall notify the Trustee that they are
opposed to such removal, the Company shall not be entitled to remove the Trustee
pursuant to this Section 8.10(c) and the Company shall not be entitled to
exercise its rights pursuant to this Section 8.10(c) for six months after such
notice by the holders of Subordinated Debt Securities.

       

      
        
           

        

        
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      (d)           The
holders of a majority in aggregate principal amount of the Subordinated Debt
Securities of any Series at the time outstanding may at any time remove the
Trustee with respect to the Subordinated Debt Securities of such Series and
appoint a successor trustee of the applicable Series of Subordinated Debt
Securities by delivery to the Trustee so removed, to the successor trustee so
appointed and to the Company, the evidence provided for in Section 9.01 of the
action taken by the holders of the Subordinated Debt Securities.

       

      (e)           Any
resignation or removal of the Trustee and any appointment of a successor trustee
pursuant to any of the provisions of this Section 8.10 shall become effective
upon acceptance of appointment by the successor trustee as provided in Section
8.11.

       

      (f)           The
Company shall give notice of each resignation and each removal of the Trustee
and each appointment of a successor trustee by mailing written notice of such
event by first-class mail, postage prepaid, to the holders of the applicable
Series of Subordinated Debt Securities as their names and addresses appear in
the Subordinated Debt Security Register. Each notice shall include the name of
the successor trustee and the address of its designated corporate trust office.
If the Company fails to mail such notice within 10 days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such
notice to be mailed at the expense of the Company.

       

      SECTION
8.11.  Any successor trustee appointed as provided in Section 8.10
shall execute, acknowledge and deliver to the Company and to its predecessor
trustee an instrument accepting such appointment, and thereupon the resignation
or removal of the predecessor trustee with respect to all or any applicable
Series shall become effective and such successor trustee without any further
act, deed or conveyance shall become vested with all the rights, powers, duties
and obligations of its predecessor, with like effect as if originally named as
trustee herein; but, nevertheless, on the written request of the Company or of
the successor trustee, the trustee ceasing to act shall, upon payment of any
amounts then due it pursuant to the provisions of Section 8.06, execute and
deliver an instrument transferring to such successor trustee all the right and
powers of the trustee so ceasing to act. Upon request of any such successor
trustee, the Company shall execute any and all instruments in writing for more
fully and certainly vesting in and confirming to such successor trustee all such
rights and powers. Any trustee ceasing to act shall, nevertheless, retain a lien
upon all property or funds held or collected by such trustee to secure any
amounts then due it pursuant to the provisions of Section
8.06.  

       

      If a successor trustee is appointed
with respect to the Subordinated Debt Securities of one or more (but not all)
Series, the Company, the predecessor trustee and each successor trustee with
respect to the Subordinated Debt Securities of any applicable Series shall
execute and deliver an agreement supplemental hereto which shall contain such
provisions as shall be deemed necessary or desirable to confirm that all the
rights, powers, trusts and duties of the predecessor trustee with respect to the
Subordinated Debt Securities of any Series as to which the predecessor trustee
is not retiring shall continue to be vested in the predecessor trustee, and
shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one trustee, it being understood that nothing herein or
in such supplemental agreement shall constitute such trustees co-trustees of the
same trust and that each such trustee shall be a trustee of a trust or trusts
under separate Indentures.

       

      
        
           

        

        
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      No successor trustee shall accept
appointment as provided in this Section 8.11 unless at the time of such
acceptance such successor trustee shall be qualified under the provisions of
Section 8.08 and eligible under the provisions of Section 8.09.

       

      SECTION
8.12.  Any corporation or association into which the Trustee may be
merged or converted or with which it may be consolidated, or any corporation or
association resulting from any merger or conversion or consolidation to which
the Trustee shall be a party, or any corporation or association succeeding to
all or substantially all of the corporate trust business of the Trustee, shall
be the successor of the Trustee hereunder, provided such corporation or
association shall be qualified under the provisions of Section 8.08 and eligible
under the provisions of Section 8.09, without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding.  

       

      In case at the time such successor to
the Trustee shall succeed to the trusts created by this Indenture and any of the
Subordinated Debt Securities shall have been authenticated but not delivered,
any such successor to the Trustee may adopt the certificate of authentication of
any predecessor Trustee, and deliver such Subordinated Debt Securities so
authenticated; and in case at that time any of the Subordinated Debt Securities
shall not have been authenticated, any successor to the Trustee may authenticate
such Subordinated Debt Securities either in the name of any predecessor
hereunder or in the name of the successor trustee; and in all such cases such
certificate shall have the full force which it is anywhere in the Subordinated
Debt Securities or in this Indenture provided that the certificate of the
Trustee shall have; provided, however, that the right to adopt the certificate
of authentication of any predecessor Trustee or authenticate Subordinated Debt
Securities in the name of any predecessor Trustee shall apply only to its
successor or successors by merger, conversion or consolidation.

       

      SECTION
8.13. (a)  Subject to the provisions of subsection (b) of this Section
8.13, if the Trustee shall be or shall become a creditor, directly or
indirectly, secured or unsecured, of the Company on the Subordinated Debt
Securities within four months prior to a default, as defined in subsection (c)
of this Section 8.13, or subsequent to such a default, then, unless and until
such default shall be cured, the Trustee shall set apart and hold in a special
account for the benefit of the Trustee individually, the holders of the
Subordinated Debt Securities and the holders of other indenture securities (as
defined in subsection (c) of this Section 8.13):  

       

      (1)           an
amount equal to any and all reductions in the amount due and owing upon any
claim as such creditor in respect of principal or interest, effected after the
beginning of such four months' period and valid as against the Company and its
other creditors, except any such reduction resulting from the receipt or
disposition of any property described in paragraph (2) of this subsection, or
from the exercise of any right of set-off which the Trustee could have exercised
if a petition in bankruptcy had been filed by or against the Company upon the
date of such default; and

       

      
        
           

        

        
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      (2)           all
property received by the Trustee in respect of any claim as such creditor,
either as security therefor, or in satisfaction or composition thereof, or
otherwise, after the beginning of such four months' period, or an amount equal
to the proceeds of any such property, if disposed of, subject, however, to the
rights, if any, of the Company and its other creditors in such property or such
proceeds.

       

      Nothing herein contained, however,
shall affect the right of the Trustee

       

      (A)          to
retain for its own account (i) payments made on account of any such claim by any
person (other than the Company) who is liable thereon, and (ii) the proceeds of
the bona fide sale of any such claim by the Trustee to a third person, and (iii)
distributions made in cash, securities or other property in respect of claims
filed against the Company in bankruptcy or receivership or in proceedings for
reorganization pursuant to the Federal bankruptcy laws, as now or hereafter
constituted, or any other Federal or State bankruptcy, insolvency or similar
law;

       

      (B)           to
realize, for its own account, upon any property held by it as security for any
such claim, if such property was so held prior to the beginning of such four
months' period;

       

      (C)           to
realize, for its own account, but only to the extent of the claim hereinafter
mentioned, upon any property held by it as security for any such claim, if such
claim was created after the beginning of such four months' period and such
property was received as security therefor simultaneously with the creation
thereof, and if the Trustee shall sustain the burden of proving that at the time
such property was so received the Trustee had no reasonable cause to believe
that a default as defined in subsection (c) of this Section 8.13 would occur
within four months; or

       

      (D)           to
receive payment on any claim referred to in paragraph (B) or (C), against the
release of any property held as security for such claim as provided in such
paragraph (B) or (C), as the case may be, to the extent of the fair value of
such property,

       

      For the purposes of paragraphs (B), (C)
and (D), property substituted after the beginning of such four months' period
for property held as security at the time of such substitution shall, to the
extent of the fair value of the property released, have the same status as the
property released, and, to the extent that any claim referred to in any of such
paragraphs is created in renewal of or in substitution for or for the purpose of
repaying or refunding any preexisting claim of the Trustee as such creditor,
such claim shall have the same status as such preexisting claim. If the Trustee
shall be required to account, the funds and property held in such special
account and the proceeds thereof shall be apportioned between the Trustee, the
holders of Subordinated Debt Securities and the holders of other indenture
securities in such manner that the Trustee, the holders of Subordinated Debt
Securities and the holders of other indenture securities realize, as a result of
payments from such special account and payments of dividends on claims filed
against the Company in bankruptcy or receivership or in proceedings for
reorganization pursuant to the Federal bankruptcy laws, as now or hereafter
constituted, or any other Federal or State bankruptcy, insolvency or similar
law, the same percentage of their respective claims, figured before crediting to
the claim of the Trustee anything on account of the receipt by it from the
Company of the funds and property in such special account and before crediting
to the respective claims of the Trustee, the holders of Subordinated Debt
Securities and the holders of other indenture securities dividends on claims
filed against the Company in bankruptcy or receivership or in proceedings for
reorganization pursuant to the Federal bankruptcy laws, as now or hereafter
constituted, or any other Federal or State bankruptcy, insolvency or similar
law, but after crediting thereon receipts on account of the indebtedness
represented by their respective claims from all sources other than from such
dividends and from the funds and property so held in such special account. As
used in this paragraph, with respect to any claim, the term “dividends” shall
include any distribution with respect to such claim, in bankruptcy or
receivership or in proceedings for reorganization pursuant to the Federal
bankruptcy laws, as now or hereafter constituted, or any other Federal or State
bankruptcy, insolvency or similar law, whether such distribution is made in
cash, securities, or other property, but shall not include any such distribution
with respect to the secured portion, if any, of such claim. The court in which
said bankruptcy, receivership, or proceeding for reorganization is pending shall
have jurisdiction (i) to apportion between the Trustee, the holders of
Subordinated Debt Securities and the holders of other indenture securities, in
accordance with the provisions of this paragraph, the funds and property held in
such special account and the proceeds thereof, or (ii) in lieu of such
apportionment, in whole or in part, to give to the provisions of this paragraph
due consideration in determining the fairness of the distributions to be made to
the Trustee, the holders of Subordinated Debt Securities and the holders of
other indenture securities with respect to their respective claims, in which
event it shall not be necessary to liquidate or to appraise the value of any
securities or other property held in such special account or as security for any
such claim, or to make a specific allocation of such distributions as between
the secured and unsecured portions of such claims, or otherwise to apply the
provisions of this paragraph as a mathematical formula. Any Trustee which has
resigned or been removed after the beginning of such four months' period shall
be subject to the provisions of this subsection (a) as though such resignation
or removal had not occurred. If any Trustee has resigned or been removed prior
to the beginning of such four months' period, it shall be subject to the
provisions of this subsection (a) if and only if the following conditions
exist:

       

      
        
           

        

        
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      (i)      
     the receipt of property or reduction of claim
which would have given rise to the obligation to account, if such Trustee had
continued as trustee, occurred after the beginning of such four months' period;
and

       

      (ii)           such
receipt of property or reduction of claim occurred  within four months
after such resignation or removal.

       

      (b)           There
shall be excluded from the operation of subsection (a) of this Section 8.13 a
creditor relationship arising from

       

      (1)           the
ownership or acquisition of securities issued under any indenture, or any
security or securities having a maturity of one year or more at the time of
acquisition by the Trustee;

       

      (2)           advances
authorized by a receivership or bankruptcy court of competent jurisdiction, or
by this Indenture, for the purpose of preserving any property which shall at any
time be subject to the lien of this Indenture or of discharging tax liens or
other prior liens or encumbrances thereof, if notice of such advance and of the
circumstances surrounding the making thereof is given to the holders of
Subordinated Debt Securities at the time and in the manner provided in this
Indenture;

       

      
        
           

        

        
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      (3)           disbursements
made in the ordinary course of business in the capacity of trustee under an
indenture, transfer agent, registrar, custodian, paying agent, fiscal agent or
depositary, or other similar capacity;

       

      (4)           an
indebtedness created as a result of services rendered or premises rented; or an
indebtedness created as a result of goods or securities sold in a cash
transaction as defined in subsection (c) of this Section 8.13;

       

      (5)           the
ownership of stock or of other securities of a corporation organized under the
provisions of Section 25(a) of the Federal Reserve Act, as amended, which is
directly or indirectly a creditor of the Company; or

       

      (6)           the
acquisition, ownership, acceptance or negotiation of any drafts, bills of
exchange, acceptances or obligations which fall within the classification of
self-liquidating paper as defined in subsection (c) of this Section
8.13.

       

      (c)           As
used in this Section 8.13:

       

      (1)           The
term “default” shall mean any failure to make payment in full of the principal
of or interest on any of the Subordinated Debt Securities or upon the other
indenture securities when and as such principal or interest becomes due and
payable.

       

      (2)           The
term “other indenture securities” shall mean securities upon which the Company
is an obligor (as defined in the Trust Indenture Act of 1939) outstanding under
any other indenture (A) under which the Trustee is also trustee, (B) which
contains provisions substantially similar to the provisions of subsection (a) of
this Section 8.13, and (C) under which a default exists at the time of the
apportionment of the funds and property held in said special
account.

       

      (3)           The
term “cash transaction” shall mean any transaction in which full payment for
goods or securities sold is made within seven days after delivery of the goods
or securities in currency or in checks or other orders drawn upon banks or
bankers and payable upon demand.

       

      (4)           The
term “self-liquidating paper” shall mean any draft, bill of exchange, acceptance
or obligation which is made, drawn, negotiated or incurred by the Company for
the purpose of financing the purchase, processing, manufacture, shipment,
storage or sale of goods, wares or merchandise and which is secured by documents
evidencing title to, possession of, or a lien upon, the goods, wares or
merchandise or the receivables or proceeds arising from the sale of the goods,
wares or merchandise previously constituting the security, provided the security
is received by the Trustee simultaneously with the creation of the creditor
relationship with the Company arising from the making, drawing, negotiating or
incurring of the draft, bill of exchange, acceptance or obligation.

       

      
        
           

        

        
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      (5)           The
term “Company” shall mean any obligor upon the Subordinated Debt
Securities.

       

      ARTICLE
NINE

      CONCERNING
THE HOLDERS OF SUBORDINATED DEBT SECURITIES.

       

      SECTION
9.01.  Whenever in this Indenture it is provided that the holders of a
specified percentage in aggregate principal amount of the Subordinated Debt
Securities of a Series may take any action (including the making of any demand
or request, the giving of any notice, consent or waiver or the taking of any
other action), the fact that at the time of taking any such action the holders
of such specified percentage have joined therein may be evidenced (a) by any
instrument or any number of instruments of similar tenor executed by holders in
person or by agent or proxy appointed in writing, or (b) by the record of the
holders of the Subordinated Debt Securities of such Series voting in favor
thereof at any meeting of holders duly called and held in accordance with the
provisions of Article Ten, or (c) by a combination of such instrument or
instruments and any such record of such a meeting of
holders.  

       

      SECTION
9.02.  Subject to the provisions of Section 9.01 and Section 9.05,
proof of the execution of any instrument by a holder or his agent or proxy and
proof of the holding by any person of any of the Subordinated Debt Securities of
a Series shall be sufficient if made in the following
manner:  

       

      The fact and date of the execution by
any such person of any instrument may be proved by the certificate of any notary
public or other officer of any jurisdiction within the United States of America
authorized to take acknowledgments of deeds to be recorded in such jurisdiction,
that the person executing such instrument acknowledged to him the execution
thereof, by an affidavit of a witness to such execution sworn to before any such
notary or other such officer or by any other method or in any other manner as
shall be acceptable to the Trustee. If such execution is by an officer of a
corporation or association or a member of a partnership on behalf of such
corporation, association or partnership, such certificate or affidavit shall
also constitute sufficient proof of his authority.

       

      The ownership of Subordinated Debt
Securities of a Series shall be proved by the Subordinated Debt Security
Register or by a certificate of the Subordinated Debt Security Registrar
thereof.

       

      The Trustee shall not be bound to
recognize any person as a holder unless and until his title to the Subordinated
Debt Securities held by him is proved in the manner in this Article Nine
provided.

       

      The Trustee may require such additional
proof of any matter referred to in this Section 9.02 as it shall deem
necessary.

       

      The record of any holders' meeting
shall be proved in the manner provided in Section 10.06.

       

      SECTION
9.03.  The Company, the Trustee, any paying agent and any Subordinated
Debt Security Registrar may deem and treat the person in whose name any
Subordinated Debt Security shall be registered in the Subordinated Debt Security
Register as the absolute owner of such Subordinated Debt Security (whether or
not such Subordinated Debt Security shall be overdue and notwithstanding any
notation of ownership or other writing thereon made by anyone other than the
Company or any Subordinated Debt Security Registrar) for the purpose of
receiving payment thereof or on account thereof and for all other purposes, and
neither the Company nor the Trustee nor any paying agent nor any Subordinated
Debt Security Registrar shall be affected by any notice to the contrary. All
such payments so made to any such registered holder, or upon his order, shall be
valid, and, to the extent of the sum or sums so paid, effectual to satisfy and
discharge the liability for monies payable upon any such Subordinated Debt
Security.  

       

      
        
           

        

        
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      SECTION
9.04.  In determining whether the holders of the requisite aggregate
principal amount of Subordinated Debt Securities of a Series have concurred in
any direction, consent or waiver under this Indenture, Subordinated Debt
Securities of such Series which are owned by the Company, or any other obligor
on the Subordinated Debt Securities of such Series or by any person directly or
indirectly controlling or controlled by or under direct or indirect common
control with the Company, or any other obligor on the Subordinated Debt
Securities of such Series shall be disregarded and deemed not to be outstanding
for the purpose of any such determination, except that for the purpose of
determining whether the Trustee shall be protected in relying on any such
direction, consent or waiver only Subordinated Debt Securities of such Series
which the Trustee actually knows are so owned shall be so disregarded.
Subordinated Debt Securities of such Series so owned which have been pledged in
good faith may be regarded as outstanding for the purposes of this Section 9.04,
if the pledgee shall establish to the satisfaction of the Trustee the pledgee's
right to vote such Subordinated Debt Securities and that the pledgee is not a
person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company, or any such other
obligor.  

       

      Upon request of the Trustee, the
Company shall furnish to the Trustee promptly an Officers' Certificate listing
and identifying all Subordinated Debt Securities of such Series, if any, known
by the Company to be owned or held by or for the account of any of the above
described persons; and, subject to the provisions of Section 8.01, the Trustee
shall be entitled to accept such Officers' Certificate as conclusive evidence of
the facts therein set forth and of the fact that all Subordinated Debt
Securities of such Series not listed therein are outstanding for the purposes of
any such determination;

       

      SECTION
9.05.  At any time prior to (but not after) the evidencing to the
Trustee, as provided in Section 9.01, of the taking of any action by the holders
of the percentage in aggregate principal amount of the Subordinated Debt
Securities of a Series specified in this Indenture in connection with such
action, any holder of a Subordinated Debt Security of such Series the serial
number of which is shown by the evidence to be included in the Subordinated Debt
Securities of such Series the holders of which have consented to such action
may, by filing written notice with the Trustee at its office and upon proof of
holding as provided in Section 9.02, revoke such action so far as concerns such
Subordinated Debt Security. Except as aforesaid, any such action taken by the
holder of any Subordinated Debt Security shall be conclusive and binding upon
such holder and upon all future holders and owners of such Subordinated Debt
Security, and of any Subordinated Debt Security issued in exchange or
substitution therefor, irrespective of whether or not any notation in regard
thereto is made upon such Subordinated Debt Security. Any action taken by the
holders of the percentage in aggregate principal amount of the Subordinated Debt
Securities of a Series specified in this Indenture in connection with such
action shall be conclusively binding upon the Company, the Trustee and the
holders of all the Subordinated Debt Securities of such
Series.  

       

      
        
           

        

        
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      ARTICLE
TEN

      MEETINGS
OF HOLDERS OF SUBORDINATED DEBT SECURITIES.

       

      SECTION
10.01.  A meeting of holders of Subordinated Debt Securities of any or
all Series may be called at any time and from time to time pursuant to the
provisions of this Article Ten for any of the following
purposes:  

       

      (1)           to
give any notice to the Company or to the Trustee, or to give any directions to
the Trustee, or to consent to the waiving of any default hereunder and its
consequences, or to take any other action authorized to be taken by holders
pursuant to any of the provisions of Article Seven;

       

      (2)           to
remove the Trustee with respect to one or more or all Series and appoint a
successor trustee pursuant to the provisions of Article Eight;

       

      (3)           to
consent to the execution of an indenture or indentures supplemental hereto
pursuant to the provisions of Section 11.02; or

       

      (4)           to
take any other action authorized to be taken by or on behalf of the holders of
any specified aggregate principal amount of the Subordinated Debt Securities of
any or all Series under any other provision of this Indenture or under
applicable law.

       

      SECTION
10.02.  The Trustee may at any time call a meeting of holders of
Subordinated Debt Securities to take any action specified in Section 10.01, to
be held at such time and at such place as the Trustee shall determine. Notice of
every meeting of the holders of any or all Series, setting forth the time and
the place of such meeting and in general terms the action proposed to be taken
at such meeting shall be mailed to such holders of Subordinated Debt Securities
at that addresses as shown by the Subordinated Debt Security Register not less
than 20 nor more than 60 days prior to the date fixed for the
meeting.  

       

      SECTION
10.03.  In case at any time the Company, pursuant to a resolution of
its Board of Directors, shall have requested the Trustee to call a meeting of
holders of any or all Series, or the holders of at least 10 per cent in
aggregate principal amount of the Subordinated Debt Securities of the Series
then outstanding with respect to which a meeting is proposed to be called shall
have requested the Trustee to call a meeting of the holders of the applicable
Series, to take any action authorized in Section 10.01 by written request
setting forth in reasonable detail the action proposed to be taken at the
meeting, and the Trustee shall not have mailed the notice of such meeting within
20 days after receipt of such request, then the Company or the holders of
Subordinated Debt Securities of the applicable Series in the amount above
specified may determine the time and the place for such meeting and may call
such meeting by mailing notice thereof as provided in Section
10.02.  

       

      
        
           

        

        
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      SECTION
10.04.  To be entitled to vote at any meeting of holders of
Subordinated Debt Securities of any or all Series a person shall (a) be a holder
of one or more Subordinated Debt Securities with respect to which such meeting
was called, or (b) be a person appointed by an instrument in writing as proxy by
a holder of one or more Subordinated Debt Securities with respect to which such
meeting was called. The only persons who shall be entitled to be present or to
speak at any meeting of holders of Subordinated Debt Securities of any or all
Series shall be the persons entitled to vote at such meeting and their counsel
and any representatives of the Trustee and its counsel and any representatives
of the Company and its counsel.  

       

      SECTION
10.05.  Notwithstanding any other provisions of this Indenture, the
Trustee may make such reasonable regulations as it may deem advisable for any
meeting of holders of Subordinated Debt Securities, in regard to proof of the
holding of Subordinated Debt Securities and of the appointment of proxies, and
in regard to the appointment and duties of inspectors of votes, the submission
and examination of proxies, certificates and other evidence of the right to
vote, and such other matters concerning the conduct of the meeting as it shall
deem appropriate. Except as otherwise permitted or required by any such
regulations, the holding of Subordinated Debt Securities shall be proved in the
manner specified in Section 9.02 and the appointment of any proxy shall be
proved in the manner specified in said Section 9.02 or by having the signature
of the person executing the proxy witnessed or guaranteed by any bank, banker or
trust company. The Trustee shall, by an instrument in writing, appoint a
temporary chairman of the meeting, unless the meeting shall have been called by
the Company or by holders as provided in Section 10.03, in which case the
Company or the holders calling the meeting, as the case may be, shall in like
manner appoint a temporary chairman. A permanent chairman and a permanent
secretary of the meeting shall be elected by vote of the holders of a majority
in aggregate principal amount of the Subordinated Debt Securities represented at
the meeting and entitled to vote.  

       

      Subject to the provisions of Section
9.04, at any meeting each holder or proxy shall be entitled to one vote for each
$1,000 (unless otherwise provided in the related Series Supplement) principal
amount of Subordinated Debt Securities of the Series entitled to vote held or
represented by him; provided, however, that no vote shall be cast or counted at
any meeting in respect of any Subordinated Debt Security challenged as not
outstanding and ruled by the chairman of the meeting to be not outstanding. The
chairman of the meeting shall have no right to vote other than by virtue of
Subordinated Debt Securities of the Series entitled to vote held by him or
instruments in writing as aforesaid duly designating him as the person to vote
on behalf of other holders. Any meeting of holders duly called pursuant to the
provisions of Section 10.02 or 10.03 may be adjourned from time to time, and the
meeting may be held as so adjourned without further notice.

       

      At any meeting of holders of
Subordinated Debt Securities of any or all Series, the presence of persons
holding or representing Subordinated Debt Securities of the applicable Series in
an aggregate principal amount sufficient to take action upon the business for
the transaction of which such meeting was called shall be necessary to
constitute a quorum; but, if less than a quorum be present, the persons holding
or representing a majority of the Subordinated Debt Securities of the applicable
Series represented at the meeting may adjourn such meeting with the same effect
as though a quorum had been present.

       

      
        
           

        

        
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      SECTION
10.06.  The vote upon any resolution submitted to any meeting of
holders shall be by written ballots on which shall be subscribed the signatures
of the holders or proxies and the serial number or numbers of the Subordinated
Debt Securities held or represented by them. The permanent chairman of the
meeting shall appoint two inspectors of votes who shall count all votes cast at
the meeting for or against any resolution and who shall make and file with the
secretary of the meeting their verified written reports in duplicate of all
votes cast at the meeting. A record in duplicate of the proceedings of each
meeting of holders shall be prepared by the secretary of the meeting and there
shall be attached to said record the original reports of the inspectors of votes
on any vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was mailed as provided in Section 10.02. The record
shall be signed and verified by the affidavits of the permanent chairman and
secretary of the meeting and one of the duplicates shall be delivered to the
Company and the other to the Trustee to be preserved by the Trustee, the latter
to have attached thereto the ballots voted at the
meeting.  

       

      Any record so signed and verified shall
be conclusive evidence of the matters therein stated.

       

      ARTICLE
ELEVEN

      SUPPLEMENTAL
INDENTURES.

       

      SECTION
11.01.  The Company, when authorized by resolutions of its Board of
Directors, and the Trustee may from time to time and at any time enter into an
indenture or indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act of 1939 as in force at the date of the
execution thereof) for one or more of the following
purposes:  

       

      (a)           to
evidence the succession of another corporation to the Company or successive
successions, and the assumption by the successor corporation of the covenants,
agreements and obligations of the Company pursuant to Article
Twelve;

       

      (b)           to
add to the covenants of the Company such further covenants, restrictions,
conditions or provisions as its Board of Directors and the Trustee shall
consider to be for the protection of the holders of any Series of Subordinated
Debt Securities, and to make the occurrence, or the occurrence and continuance,
of a default in any of such additional covenants, restrictions, conditions or
provisions a default or an Event of Default permitting the enforcement of all or
any of the several remedies provided in this Indenture as herein set forth;
provided, however, that in respect of any such additional covenant, restriction,
condition or provision such supplemental indenture may provide for a particular
period of grace after default (which period may be shorter or longer than that
allowed in the case of other defaults) or may provide for an immediate
enforcement upon such default or may limit the remedies available to the Trustee
upon such default or may limit the right of the holders of a majority in
aggregate principal amount of the Subordinated Debt Securities of a Series to
waive such default;

       

      (c)           to
cure any ambiguity or to correct or supplement any provision contained herein or
in any supplemental indenture which may be defective or inconsistent with any
other provision contained herein or in any supplemental indenture; to convey,
transfer, assign, mortgage or pledge any property to or with the Trustee, or to
make such other provisions in regard to matters or questions arising under this
Indenture which shall not be inconsistent with the provisions of this Indenture,
provided that such action shall not adversely affect the interests of the
holders of the Subordinated Debt Securities; and

       

      
        
           

        

        
          -57-

          
            

          

        

        
           

        

      

      (d)           to
set forth the terms of any Series that has not theretofore been authorized by a
Series Supplement. The Trustee is hereby authorized to join with the Company in
the execution of any such supplemental indenture, to make any further
appropriate agreements and stipulations which may be therein contained and to
accept the conveyance, transfer, assignment, mortgage or pledge of any property
thereunder, but the Trustee shall not be obligated to enter into any such
supplemental indenture which affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.

       

      Any supplemental indenture authorized
by the provisions of this Section 11.01 may be executed by the Company and the
Trustee without the consent of the holders of any of the Subordinated Debt
Securities at the time outstanding, notwithstanding any of the provisions of
Section 11.02.

       

      SECTION
11.02.  With the consent (evidenced as provided in Section 9.01) of
the holders of not less than a majority in aggregate principal amount of the
Subordinated Debt Securities of each Series to be affected at the time
outstanding, the Company, when authorized by resolutions of its Board of
Directors, and the Trustee may from time to time and at any time enter into an
indenture or indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act of 1939 as in force at the date of the
execution thereof) for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of any
supplemental indenture or of modifying in any manner the rights of the holders
of the Subordinated Debt Securities of such Series; provided, however, that no
such supplemental indenture shall (i) extend the fixed maturity of any
Subordinated Debt Securities, or reduce the principal amount thereof, or reduce
the rate or extend the time of payment of interest thereon, or reduce any
premium payable upon the redemption thereof, without the consent of the holder
of each Subordinated Debt Security so affected, (ii) reduce the aforesaid
percentage of Subordinated Debt Securities of any Series, the consent of the
holders of which is required for any such supplemental indenture, without the
consent of the holders of all Subordinated Debt Securities of such Series then
outstanding, or (iii) modify any of the provisions of this Section or Section
7.06, except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent of
the holder of each Subordinated Debt Security affected
thereby.  

       

      Upon the request of the Company,
accompanied by a copy of resolutions of its Board of Directors certified by the
Secretary or an Assistant Secretary of the Company authorizing the execution of
any such supplemental indenture, and upon the filing with the Trustee of
evidence of the consent of the holders as aforesaid, the Trustee shall join with
the Company in the execution of such supplemental indenture unless such
supplemental indenture affects the Trustee's own rights, duties or immunities
under this Indenture or otherwise, in which case the Trustee may in its
discretion, but shall not be obligated to, enter into such supplemental
indenture.

       

      
        
           

        

        
          -58-

          
            

          

        

        
           

        

      

      It shall not be necessary for the
consent of the holders under this Section 11.02 to approve the particular form
of any proposed supplemental indenture, but it shall be sufficient if such
consent shall approve the substance thereof.

       

      Promptly after the execution by the
Company and the Trustee of any supplemental indenture pursuant to the provisions
of this Section 11.02, the Company shall mail to the holders to which such
supplemental indenture relates a notice, setting forth in general terms the
substance of such supplemental indenture. Any failure of the Company to mail
such notice, or any defect therein, shall not, however, in any way impair or
affect the validity of any such supplemental indenture.

       

      SECTION
11.03.  Upon the execution of any supplemental indenture pursuant to
the provisions of this Article Eleven, this Indenture shall be and be deemed to
be modified and amended in accordance therewith with respect to each Series of
Subordinated Debt Securities affected thereby or all Subordinated Debt
Securities, as the case may be, and the respective rights, limitations of
rights, obligations, duties and immunities under this Indenture of the Trustee,
the Company and the holders of Subordinated Debt Securities of each Series
affected thereby shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments, and all
the terms and conditions of any such supplemental indenture shall be and be
deemed to be part of the terms and conditions of this Indenture for any and all
purposes.  

       

      The Trustee, subject to the provisions
of Section 8.01, may receive an Opinion of Counsel as conclusive evidence that
any such supplemental indenture complies with the provisions of this Article
Eleven and that all conditions precedent thereto have been met.

       

      SECTION
11.04.  Subordinated Debt Securities authenticated and delivered after
the execution of any supplemental indenture pursuant to the provisions of this
Article Eleven or after any action taken at a meeting of holders of Subordinated
Debt Securities pursuant to Article Ten, may, and shall if required by the
Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture or as to any such action. New
Subordinated Debt Securities so modified as to conform, in the opinion of the
Trustee and the Board of Directors of the Company, to any modification of this
Indenture contained in any such supplemental indenture or reflecting such action
may be prepared by the Company, and such Subordinated Debt Securities may be
authenticated by the Trustee and delivered in exchange for the Subordinated Debt
Securities then outstanding.  

       

      ARTICLE
TWELVE

      CONSOLIDATION,
MERGER, SALE OR CONVEYANCE.

       

      SECTION
12.01. (a)  Nothing contained in this Indenture or in any of the
Subordinated Debt Securities shall prevent any consolidation or merger of the
Company with or into any other corporation or corporations or successive
consolidations or mergers in which the Company or its successor or successors
shall be a party or parties, or shall prevent any sale or conveyance of the
property of the Company as an entirety or substantially as an entirety to any
other corporation authorized to acquire and operate the same; provided, however,
and the Company hereby covenants and agrees, that any such consolidation,
merger, sale or conveyance shall be upon the condition that (a) immediately
after such consolidation, merger, sale or conveyance, the corporation (whether
the Company or such other corporation) formed by or surviving any such
consolidation or merger, or to which such sale or conveyance shall have been
made, shall not be in default in the performance or observance of any of the
terms, covenants and conditions of this Indenture to be kept or performed by the
Company; (b) the corporation (if other than the Company) formed by or surviving
any such consolidation or merger, or to which such sale or conveyance shall have
been made, shall be a corporation organized under the laws of the United States
of America or any state thereof; and (c) the due and punctual payment of the
principal of (and premium, if any) and interest on all of the Subordinated Debt
Securities, according to their tenor, and the due and punctual performance and
observance of all the covenants and conditions of this Indenture to be
performed, or observed by the Company, shall be expressly assumed by the
corporation formed by such consolidation, or into which the Company shall have
been merged, or by the corporation which shall have acquired such property, by
supplemental indenture, satisfactory in form to the Trustee, executed and
delivered to the Trustee by the corporation formed by such consolidation, or
into which the Company shall have been merged, or by the corporation which shall
have acquired such property.  

       

      
        
          
          

        

        
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      SECTION
12.02.  In case of any such consolidation, merger, sale or conveyance
in accordance with Section 12.01, such successor corporation shall succeed to
and be substituted for the Company with the same effect as if it had been named
herein as a party, and the Company (including any intervening successor to
either hereunder) shall be relieved of any further obligation under this
Indenture and the Subordinated Debt Securities; provided, however, that in the
case of a sale or conveyance of the property of the Company (including any such
intervening successor), in connection with which there is no plan providing for
the complete liquidation of the Company (including any such intervening
successor), the Company (including any such intervening successor) shall
continue to be liable on its obligations under this Indenture and the
Subordinated Debt Securities to the extent, but only to the extent, of liability
to pay the principal of and premium, if any, and interest on the Subordinated
Debt Securities at the time, places and rate, and in the coin or currency,
prescribed in this Indenture and the Subordinated Debt Securities. Any such
successor corporation thereupon may cause to be signed, and may issue either in
its own name or in the name of the Company any or all of the Subordinated Debt
Securities issuable hereunder which theretofore shall not have been signed by
the Company and delivered to the Trustee; and, upon the order of any such
successor corporation, and subject to all the terms, conditions and limitations
in this Indenture prescribed, the Trustee shall authenticate and shall deliver
any Subordinated Debt Securities which previously shall have been signed and
delivered by the officers of the Company to the Trustee for authentication, and
any Subordinated Debt Securities which such successor corporation thereafter
shall cause to be signed and delivered to the Trustee for that purpose. All the
Subordinated Debt Securities so issued shall in all respects have the same legal
rank and benefit under this Indenture as the Subordinated Debt Securities
theretofore or thereafter issued in accordance with the terms of this Indenture
as though all of such Subordinated Debt Securities had been issued at the date
of the execution hereof. In case of any such consolidation, merger, sale or
conveyance, such changes in phraseology and form (but not in substance) may be
made in the Subordinated Debt Securities thereafter to be issued as may be
appropriate.  

       

      
        
          
             

          

          
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      SECTION
12.03.  The Trustee, subject to the provisions of Sections 8.01 and
8.02, may receive an Officer's Certificate and an Opinion of Counsel as
conclusive evidence that any such consolidation, merger, sale or conveyance
complies with the provisions of this Article Twelve and that all conditions
precedent herein provided relating to such transaction have been complied
with.  

       

      ARTICLE
THIRTEEN

      SATISFACTION
AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS.

       

      SECTION
13.01.  The Company may terminate its obligation under the
Subordinated Debt Securities of a Series and this Indenture with respect to such
Subordinated Debt Securities (including without limitation the provisions of
Article Three), except those obligations referred to in the immediately
succeeding paragraph, if at any time (a) the Company shall have delivered to the
Trustee for cancellation all Subordinated Debt Securities of any Series
theretofore authenticated and delivered (other than any Subordinated Debt
Securities which shall have been destroyed, lost or stolen and which shall have
been replaced or paid as provided in Section 2.08) and the Company shall have
paid or caused to be paid all sums payable by it hereunder, or (b) if the
Company has irrevocably deposited or caused to be deposited with the Trustee
under the terms of an irrevocable trust agreement in form and substance
satisfactory to the Trustee, as trust funds in trust solely for the benefit of
the holders of the Subordinated Debt Securities of such Series for that purpose,
money or direct non-callable obligations of, or non-callable obligations
guaranteed by, the United States of America for the payment of which guarantee
or obligation the full faith and credit of the United States is pledged (“U.S.
Government Obligations”) maturing as to principal and interest in such amounts
and at such times as are sufficient, as verified in a Certificate of a Firm of
Independent Public Accountants, without consideration of any reinvestment of
such interest, to pay principal of and interest or sinking funds on the
outstanding Subordinated Debt Securities of such Series to maturity or
redemption as the case may be, provided that the Trustee or any paying agent
shall have been irrevocably instructed to apply such money or the proceeds of
such U.S. Government Obligations to the payment of said principal and interest
and said sinking fund with respect to the Subordinated Debt Securities of such
Series. The Company may make an irrevocable deposit pursuant to this Section
13.01 only if at such time it is not prohibited from doing so under the
provisions of Article Three and the Company shall have delivered to the Trustee
and any such paying agent an Officers' Certificate and an Opinion of Counsel,
each stating that all conditions herein precedent to the satisfaction and
discharge of this Indenture have been complied with and the Opinion of Counsel
further states that the making of such deposit (i) does not contravene or
violate any provision of any indenture, mortgage, loan agreement or other
similar agreement known to such counsel to which the Company is a party or by
which it or any of its property is bound, and (ii) does not require registration
by the deposit referred to above under the Investment Company Act of 1940, as
amended.  

       

      Notwithstanding the foregoing
paragraph, the Company's obligations in Sections 2.06, 2.08, 5.01, 5.02, 5.05,
6.01, 8.06, 8.10, 13.04 and 13.05 shall survive until the Subordinated Debt
Securities of such Series are no longer outstanding. Thereafter, the Company's
obligations in Section 8.06, 13.04 and 13.05 shall survive.

       

      After any such irrevocable deposit, the
Trustee upon request shall (i) acknowledge in writing the discharge of the
Company's obligations under the Subordinated Debt Securities of such Series and
this Indenture except for those surviving obligations specified above, (ii)
execute, deliver and file termination statements, releases and other instruments
of satisfaction, release and discharge with respect to such released security
interest and (iii) assign, transfer and deliver to the Company all the Trustee's
rights and interest in and to that portion of the trust estate so
released.

       

      
        
           

        

        
          -61-

          
            

          

        

        
           

        

      

      SECTION
13.02.  Subject to the provisions of Section 13.04, all moneys or U.S.
Government Obligations deposited with the Trustee pursuant to Section 13.01
shall be held in trust and, notwithstanding the provisions of Article Three,
applied by it to the payment, either directly or through any paying agent,
(including the Company acting as its own paying agent), to the holders of the
particular Subordinated Debt Securities of the applicable Series, for the
payment or redemption of which such moneys or U.S. Government Obligations have
been deposited with the Trustee, of all sums due and to become due thereon for
principal and interest and premium, if any, and Sinking Fund payments. Moneys
and securities so held in trust, to the extent allocated for the payment of
Subordinated Debt Securities of any applicable Series, are not subject to the
provisions of Article Three.  

       

      SECTION
13.03.  In connection with the satisfaction and discharge of this
Indenture with respect to the Subordinated Debt Securities of any Series, all
moneys then held by any paying agent under the provisions of this Indenture with
respect to such Series of Subordinated Debt Securities shall, upon demand of the
Company, be repaid to it or paid to the Trustee and thereupon such paying agent
shall be released from all further liability with respect to such
moneys.  

       

      SECTION
13.04.  Any moneys deposited with the Trustee or any paying agent for
the payment of the principal of and premium, if any, or interest on Subordinated
Debt Securities of any Series and not applied but remaining unclaimed by the
holders of Subordinated Debt Securities of such Series for three years after the
date upon which such payment shall have become due, shall be held uninvested and
without liability for interest and shall be repaid to the Company by the Trustee
or by such paying agent on demand; and the holder of any of the Subordinated
Debt Securities of the applicable Series entitled to receive such payment shall
thereafter look only to the Company for the payment thereof and all liability of
the Trustee or any paying agent with respect to such moneys shall thereupon
cease; provided, however, that the Trustee or such paying agent, before being
required to make any such repayment, may at the expense of the Company cause to
be published once a week for two successive weeks (in each case on any day of
the week) in an authorized newspaper a notice that said moneys have not been so
applied and that after a date named therein any unclaimed balance of said moneys
then remaining will be returned to the Company.  

       

      SECTION
13.05.  If the Trustee is unable to apply any money or U.S. Government
Obligations in accordance with Section 13.01 by reason of any legal proceeding
or by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Company's
obligations under this Indenture and the Subordinated Debt Securities of any
Series affected thereby shall be revived and reinstated as though no deposit had
occurred pursuant to Section 13.01, until such time as the Trustee is permitted
to apply all such money or U.S. Government Obligations in accordance with
Section 13.01; provided, however, that if the Company has made any payment of
interest on or principal of any Subordinated Debt Securities of such Series
because of the reinstatement of its obligations, the Company shall be subrogated
to the rights of the holders of such Subordinated Debt Securities to receive
such payment from the money or U.S. Government Obligations held by the
Trustee.  

       

      
        
           

        

        
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      ARTICLE
FOURTEEN

      IMMUNITY
OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS.

       

      SECTION
14.01.  No recourse under or upon any obligation, covenant or
agreement of this Indenture, or of any Subordinated Debt Security, or for any
claim based thereon or otherwise in respect thereof, shall be had against any
incorporator, stockholder, officer or director, as such, past, present or
future, of the Company or of any successor corporation, either directly or
through the Company, whether by virtue of any constitution, statute or rule of
law, or by the enforcement of any assessment or penalty or otherwise; it being
expressly understood that this Indenture and the obligations issued hereunder
are solely corporate obligations, and that no such personal liability whatever
shall attach to, or is or shall be incurred by, the incorporators, stockholders,
officers or directors, as such, of the Company or of any successor corporation,
or any of them, because of the creation of the indebtedness hereby authorized,
or under or by reason of the obligations, covenants or agreements contained in
this Indenture or in the Subordinated Debt Securities of any Series or implied
therefrom; and that any and all such personal liability, either at common law or
in equity or by constitution or statute, of, and any and all such rights and
claims against, every such incorporator, stockholder, officer or director, as
such, because of the creation of the indebtedness hereby authorized, or under or
by reason of the obligations, covenants or agreements contained in this
Indenture or in the Subordinated Debt Securities of any Series or implied
therefrom, are hereby expressly waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issue of such
Subordinated Debt Securities.  

       

      ARTICLE
FIFTEEN

      MISCELLANEOUS
PROVISIONS.

       

      SECTION
15.01.  All the covenants, stipulations, promises and agreements in
this Indenture contained by or on behalf of the Company shall bind its
successors and assigns, whether so expressed or not.  

       

      SECTION
15.02.  Any act or proceeding by any provision of this Indenture
authorized or required to be done or performed by any board, committee or
officer of the Company shall and may be done and performed with like force and
effect by the like board, committee or officer of any corporation that shall at
that time be the successor of the Company.  

       

      SECTION
15.03.  The Company by instrument in writing executed by authority of
its Board of Directors and delivered to the Trustee may surrender any of the
powers or right reserved to the Company and thereupon such power or right so
surrendered shall terminate both as to the Company and as to any successor
corporation.  

       

      SECTION
15.04.  Any notice or demand which by any provisions of this Indenture
is required or permitted to be given or served by the Trustee or by the holders
of Subordinated Debt Securities to or on the Company shall be delivered by hand
or sent by first-class mail, postage prepaid, addressed (until another address
is filed by the Company with the Trustee), as follows: Centex Corporation, 2728
North Harwood, Dallas, Texas 75201, Attention: Corporate Secretary. Any notice,
direction, request or demand by any holder to or upon the Trustee shall be
deemed to have been sufficiently given or made, for all purposes, if given or
made at the designated corporate trust offices of the
Trustee.  

       

      
        
           

        

        
          -63-

          
            

          

        

        
           

        

      

      SECTION
15.05.  Where this Indenture provides for notice to holders of any
event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class, postage prepaid, to
each holder affected by such event, at his address as it appears on the
Subordinated Debt Security Register, not later than the latest date, and not
earlier than the earliest date, prescribed for the giving of such notice. In any
case where notice to holders is given by mail, neither the failure to mail such
notice, nor any defect in any notice so mailed, to any particular holder shall
affect the sufficiency of such notice with respect to other holders, and any
notice which is mailed in the manner herein provided shall be conclusively
presumed to have been duly given.  

       

      When this Indenture provides for notice
in any manner, such notice may be waived in writing by the person entitled to
receive such notice, either before or after the event, and such waiver shall be
the equivalent of such notice. Waivers of notice by holders shall be filed with
the Trustee, but such filing shall not be a condition precedent to the validity
of any action taken in reliance upon such waiver.

       

      In case, by reason of the suspension
of, regular mail service as a result of a strike, work stoppage or similar
activity, it shall be impractical to mail notice of any event to holders of
Subordinated Debt Securities when such notice is required to be given pursuant
to any provision of this Indenture, then any manner of giving such notice as
shall be satisfactory to the Trustee shall be deemed to be a sufficient giving
of such notice.

       

      SECTION
15.06.  This Indenture, each indenture supplemental thereto and each
Subordinated Debt Security shall be deemed to be a contract made under the laws
of the State of Texas, and for all purposes shall be construed in accordance
with the laws of said State.  

       

      SECTION
15.07.  Upon any application or demand by the Company to the Trustee
to take any action under any of the provisions of this Indenture, the Company
shall furnish to the Trustee an Officers' Certificate stating that all
conditions precedent (including any covenant compliance with which constitutes a
condition precedent) provided for in this Indenture relating to the proposed
action have been complied with and an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent have been complied with,
except that in the case of any such application or demand as to which the
furnishing of such document is specifically required by any provision of this
Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished.  

       

      Each certificate or opinion provided
for in this Indenture and delivered to the Trustee with respect to compliance
with a condition or covenant provided for in this Indenture shall include (1) a
statement that the person making such certificate or opinion has read such
covenant or condition; (2) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based: (3) a statement that, in the opinion of
such person, he has made such examination or investigation as is necessary to
enable him to express an informed opinion as to whether or not such covenant or
condition has been complied with; and (4) a statement as to whether or not, in
the opinion of such person, such condition or covenant has been complied
with.

       

      
        
           

        

        
          -64-

          
            

          

        

        
           

        

      

      SECTION
15.08.  In any case where the date of maturity of interest on or
principal of the Subordinated Debt Securities or the date fixed for redemption
of any Subordinated Debt Security shall not be a business day then payment of
interest or principal and premium, if any, to the holders need not be made on
such date, but may be made on the next succeeding business day with the same
force and effect as if made on the date of maturity or the date fixed for
redemption, and no interest shall accrue for the period after such
date.  

       

      SECTION
15.09.  If and to the extent that any provision of this Indenture
limits, qualifies or conflicts with another provision included in this Indenture
which is required to be included in this Indenture by any of Sections 310 to
317, inclusive, of the Trust Indenture Act of 1939, such required provision
shall control.  

       

      SECTION
15.10.  In case any provision in this Indenture or in the Subordinated
Debt Securities 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.  

       

      SECTION
15.11.  This Indenture may be executed in any number of counterparts,
each of which shall be an original; but such counterparts shall together
constitute but one and the same instrument.  

       

      SECTION
15.12.  Unless specified otherwise in the Series Supplement, interest
on the Subordinated Debt Securities shall be computed on the basis of a 360-day
year consisting of twelve 30-day months.  

       

      SECTION
15.13.  U.S. Bank National Association, hereby accepts the trusts in
this Indenture declared and provided, upon the terms and conditions hereinabove
set forth.  

       

      
        
           

        

        
          -65-

          
            

          

        

        
           

        

      

      IN WITNESS WHEREOF, CENTEX CORPORATION
has caused this Indenture to be signed by its President or one of its Vice
Presidents, and its corporate seal to be affixed hereunto, and the same to be
attested by its Secretary or an Assistant Secretary, and U.S. BANK NATIONAL
ASSOCIATION, has caused this Indenture to be signed by one of its duly
authorized trust officers and its corporate seal to be affixed hereunto, and the
same to be duly attested, all as of the day and year first above
written.

       

      

      
        
          
            
              	 
      	 
      	
                      CENTEX
      CORPORATION

                    
	 
      	 
      	 
      	 
      
	 
      	 
      	
                      By:

                    	
                       /s/ Lawrence Angelilli

                    
	 
      	 
      	 
      	
                      Lawrence
      Angelilli

                    
	[SEAL]	 
      	 
      	
                      Senior
      Vice President - Finance

                    
	 
      	 
      	 
      	 
      
	
                      ATTEST:

                    	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                      /s/ James R. Peacock III

                    	 
      	 
      	 
      
	
                      James
      R. Peacock III

                    	 
      	 
      	 
      
	
                      Vice
      President, Deputy General Counsel

                    	 
      	 
      	 
      
	
                      and
      Secretary

                    	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
                      U.S.
      BANK NATIONAL ASSOCIATION,

                    
	 
      	 
      	
                      as
      Trustee

                    
	 
      	 
      	 
      	 
      
	 
      	 
      	
                      By:

                    	
                       /s/ Israel Lugo

                    
	 
      	 
      	 
      	
                      Israel
      Lugo

                    
	 
      	 
      	 
      	
                      Vice
      President

                    
	 
      	 
      	 
      	 
      
	
                      ATTEST:

                    	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                      /s/ Brad Hounsel

                    	 
      	 
      	 
      
	
                      Brad
      Hounsel

                    	 
      	 
      	 
      
	
                      Vice
      President

                    	 
      	 
      	 
      

            

          

        

      

      
        
           

        

        
          -66-

          
            

          

        

        
           

        

      

      STATE OF
TEXAS                  )

      )

      COUNTY OF
DALLAS           )

      

      BEFORE ME, the undersigned authority,
a Notary Public in and for said state, on this day personally appeared Lawrence
Angelilli and James R. Peacock III, known to me to be the persons and officers
whose names are subscribed to the foregoing instrument and acknowledged to me
that the same was the act of the said CENTEX CORPORATION, a Nevada corporation,
and that they executed the same as the act of said corporation for the purposes
and consideration therein expressed, and in the capacity therein
stated.

      

      GIVEN UNDER MY HAND AND SEAL OF
OFFICE, this 5th day of November, 2008.

      

      

      
        
          
            	 
      	
                    /s/ Dulce Avila

                  
	 
      	
                    Notary
      Public in and for the State of Texas

                  
	 
      	 
      
	[SEAL]	
                    My
      commission expires:

                  
	 
      	 
      
	 
      	
                    Nov. 17,
      2008

                  

          

        

      

      

      STATE OF
TEXAS                 
)

      )

      COUNTY OF
DALLAS           )

      

      BEFORE ME, the undersigned authority,
a Notary Public in and for said state, on this day personally appeared Israel
Lugo, known to me to be the person and officer whose name is subscribed to the
foregoing instrument and acknowledged to me that the same was the act of the
said U.S. BANK NATIONAL ASSOCIATION, a national banking association, and that he
executed the same as the act of said national banking association for the
purposes and consideration therein expressed, and in the capacity therein
stated.

      

      GIVEN UNDER MY HAND AND SEAL OF
OFFICE, this 5th day of November, 2008.

      

      

      
        
          
            
              
                
                  
                    
                      
                        
                          	 
      	
                                  /s/
      Yolanda G. Almaraz

                                
	 
      	
                                  Notary
      Public in and for the State of Texas

                                
	 
      	 
      
	[SEAL]	
                                  My
      commission expires:

                                
	 
      	 
      
	 	June
      12,
2011

                        

                      

                    

                  

                

              

            

          

        

      

       

       

      -67-

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