Document:

fc_ex46-70628.htm

    EXHIBIT 4.6

     

    UNLESS
      PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT
      TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER
      OF
      (i) JUNE 22, 2007, AND (ii) THE DATE THE ISSUER BECAME A REPORTING ISSUER IN
      ANY
      PROVINCE OR TERRITORY OF CANADA.

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN OFFERED AND SOLD IN AN
      “OFFSHORE TRANSACTION” IN RELIANCE UPON REGULATION S AS PROMULGATED BY THE
      SECURITIES AND EXCHANGE COMMISSION. ACCORDINGLY, THE SECURITIES REPRESENTED
      BY
      THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES
      ACT
      OF 1933 (THE “SECURITIES ACT”) AND MAY NOT BE TRANSFERRED OTHER THAN IN
      ACCORDANCE WITH REGULATION S, PURSUANT TO REGISTRATION UNDER THE SECURITIES
      ACT,
      OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
      ACT, THE AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF
      THE
      CORPORATION. THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE
      SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN
      COMPLIANCE WITH THE SECURITIES ACT.

     

    UNLESS
      NOTICE IS OTHERWISE PROVIDED, THE WARRANTS EVIDENCED HEREBY ARE EXERCISABLE
      ON
      OR BEFORE 5:00 PM (TORONTO TIME) ON DECEMBER 21, 2008, AFTER WHICH TIME THE
      WARRANTS EVIDENCED HEREBY SHALL BE DEEMED TO BE VOID AND OF NO FURTHER FORCE
      AND
      EFFECT.

     

    2007
      SERIES  II WARRANTS TO PURCHASE COMMON SHARES

    OF

    FIRSTGOLD
      CORP.

     

    
      	
              Certificate
                Number 2007 II-«Warrant_No»

            	
              Number
                of warrants represented
                by this certificate
                - «Warrants»

            

    

     

    THIS
      CERTIFIES THAT, for value received, ·
      of
«Reg_Address_1», «Reg_Address_2», «Reg_City», «Reg_Province», «Reg_Postal» is
      entitled, at any time prior to the Expiry Time, to purchase, at the Exercise
      Price, one Common Share in the capital of the Corporation, for each whole
      Warrant evidenced hereby, by surrendering to the Corporation, 3108 Gabbert
      Dr.,
      Suite 210, Cameron Park, CA 95682 Attention: Scott Dockter, or such other
      address as may be notified in writing by the Corporation, this Warrant, together
      with a Subscription Form, duly completed and executed, and cash or a certified
      cheque, money order or bank draft in lawful
      money of the United States of America payable to or to the order of the
      Corporation for the amount equal to the Exercise Price per Common Share
      multiplied by the number of Common Shares subscribed for, on and subject to
      the
      terms and conditions set forth below.

     

    Nothing
      contained herein shall confer any right upon the Holder to subscribe for or
      purchase any shares of the Corporation at any time after the Expiry Time, and
      from and after the Expiry Time these Warrants and all rights hereunder shall
      be
      void and of no value.

     

    
      	
              1.

            	
              Definitions

            

    

     

    In
      this
      Warrant, including the preamble, unless there is something in the subject matter
      or context inconsistent therewith, the following expressions shall have the
      following meanings namely:

     

    
      	
              (a)

            	
              “Business
                Day” means a day which is not a Saturday, Sunday, or a civic
                or
                statutory holiday in the City of Toronto,
                Ontario;

            

    

     

    
      	
              (b)  

            	
              “Common
                Shares” means the shares of common stock of the Corporation as
                such shares were constituted on the date hereof, as the same may
                be
                reorganized, reclassified or redesignated pursuant to any of the
                events
                set out in Section 12 hereof;

            

    

     

    
      	
              (c)  

            	
              “Corporation”
                means Firstgold Corp., a corporation formed under the laws of Delaware
                and
                its successors and assigns;

            

    

     

    
      	
              (d)  

            	
              “Current
                Market Price” at any date, means the weighted average of the sale
                prices per Common Share at which the Common Shares have traded on
                the
                Exchange, or, if the Common Shares in respect of which a determination
                of
                Current Market Price is being made are not listed thereon, on such
                stock
                exchange on which such shares are listed as may be selected for such
                purpose by the directors, or, if the Common Shares are not listed
                on any
                stock exchange, then on the over-the-counter market, for any 20
                consecutive trading days selected by the Corporation commencing not
                later
                than 45 trading days and ending no later than 5 trading days before
                such
                date; provided, however, if such Common Shares are not traded during
                such
                45 day period for at least 20 consecutive trading days, the simple
                average
                of the following prices established for each of 20 consecutive trading
                days selected by the Corporation commencing not later than 45 trading
                days
                before such date:

            

    

     

    
      	
            	
              (i)

            	
              the
                average of the bid and ask prices for each day on which there was
                no
                trading, and

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              (ii)

            	
              the
                closing price of the Common Shares for each day that there was
                trading,

            

    

     

    or
      in the
      event that at any date the Common Shares are not listed on any exchange or
      on
      the over-the-counter market, the Current Market Price shall be as determined
      by
      the directors or such firm of independent chartered accountants as may be
      selected by the directors acting reasonably and in good faith in their sole
      discretion; for these purposes, the weighted average price for any period shall
      be determined by dividing the aggregate sale prices during such period by the
      total number of Common Shares sold during such period;

     

    
      	
              (e)  

            	
              “Equity
                Shares” means the Common Shares and any shares of any other class
                or series of the Corporation which may from time to time be authorized
                for
                issue if by their terms such shares confer on the holders hereof
                the right
                to participate in the distribution of assets upon the voluntary or
                involuntary liquidation, dissolution or winding up of the Corporation
                beyond a fixed sum or a fixed sum plus accrued
                dividends;

            

    

     

    
      	
              (f)  

            	
              “Exchange”
                means either the Toronto Stock Exchange or the TSX Venture
                Exchange;

            

    

     

    
      	
              (g)  

            	
              “Exercise
                Price” means US$0.65 per Common Share, unless such price shall
                have been adjusted in accordance with the provisions of Section 12,
                in
                which case it shall mean the adjusted price in effect at such
                time;

            

    

     

    
      	
              (h)  

            	
              “Expiry
                Time” means 5:00 in the afternoon, Toronto time, on December 21,
                2008;

            

    

     

    
      	
              (i)  

            	
              “Form
                of Transfer” means the form of transfer annexed hereto as
                Schedule “B”;

            

    

     

    
      	
              (j)  

            	
              “Holder”
                means the registered holder of this
                Warrant;

            

    

     

    
      	
              (k)  

            	
              “person”
                means an individual, corporation, partnership, unincorporated syndicate,
                unincorporated organization, trust, trustee, executor, administrator,
                or
                other legal representative, or any group or combination
                thereof;

            

    

     

    
      	
              (l)  

            	
              “Subscription
                Form” means the form of subscription annexed hereto as Schedule
                “A”;

            

    

     

    
      	
              (m)  

            	
              “this
                Warrant”, “Warrant”, “herein”,
                “hereby”, “hereof”,
                “hereto”, “hereunder” and similar
                expressions mean or refer to this Warrant and any deed or instrument
                supplemental or ancillary thereto and any schedules hereto or thereto
                and
                not to any particular article, section, subsection, clause, subclause
                or
                other portion hereof; and

            

    

     

    
      	
              (n)  

            	
              “Warrant
                Shares” means the Common Shares issuable at any time upon the
                exercise of this Warrant.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              2.  

            	
              Expiry
                Time

            

    

     

    After
      the
      Expiry Time, all rights under any Warrants evidenced hereby, in respect of
      which
      the right of subscription and purchase herein provided for shall not theretofore
      have been exercised, shall wholly cease and terminate and such Warrants shall
      be
      void and of no value or effect.

     

    
      	
              3.  

            	
              Exercise
                Procedure

            

    

     

    The
      Holder may exercise the right of purchase herein provided for by surrendering
      or
      delivering to the Corporation at the address set forth on the face page hereof
      or such other address as may be notified in writing by the Corporation, prior
      to
      the Expiry Time:

     

    
      	
            	
              (a)

            	
              this
                Warrant, with the Subscription Form duly completed and executed by
                the
                Holder or its legal representative or attorney, duly appointed by
                an
                instrument in writing in form and manner satisfactory to the Corporation,
                and

            

    

    
      	
            	
              (b)

            	
              cash
                or a certified cheque, money order or bank draft payable to or to
                the
                order of the Corporation in lawful money of the United States of
                America
                in an amount equal to the Exercise Price multiplied by the number
                of
                Common Shares for which subscription is being
                made.

            

    

     

    Any
      Warrant and cash, certified cheque, money order or bank draft referred to in
      the
      foregoing clauses (a) and (b) shall be deemed to be surrendered only upon actual
      receipt by the Corporation.

     

    This
      Warrant is exchangeable, upon the surrender hereof by the Holder, for new
      warrants of like tenor, and bearing the same legends, representing, in the
      aggregate, the right to subscribe for the number of Common Shares which may
      be
      subscribed for hereunder.

     

    
      	
              4.  

            	
              Entitlement
                to Certificate

            

    

     

    Upon
      such
      delivery and payment as aforesaid, the Corporation shall cause to be issued
      to
      the Holder hereof the Common Shares subscribed for not exceeding those which
      such Holder is entitled to purchase pursuant to this Warrant and the Holder
      hereof shall become a shareholder of the Corporation in respect of such shares
      with effect from the date of such delivery and payment and shall be entitled
      to
      delivery of a certificate or certificates evidencing such shares and the
      Corporation shall cause such certificate or certificates to be mailed to the
      Holder hereof at the address or addresses specified in such subscription within
      five (5) business days of such delivery and payment.

     

    
      	
              5.  

            	
              Register
                of Warrantholders and Transfer of
                Warrants

            

    

     

    The
      Corporation shall cause a register to be kept in which shall be entered the
      names and addresses of all holders of the Warrants and the number of Warrants
      held by them. No transfer of Warrants shall be valid unless made by the Holder
      or its executors, administrators or other legal representatives or its attorney
      duly appointed by an instrument in writing in form and execution satisfactory
      to
      the Corporation upon compliance with such reasonable requirements as the
      Corporation may prescribe, including compliance with all applicable securities
      legislation, and recorded on the register of holders of Warrants maintained
      by
      the Corporation, nor until stamp or governmental or other charges arising by
      reason of such transfer have been paid.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      transferee of a Warrant shall, after a Form of Transfer is duly completed and
      the Warrant is lodged with the Corporation and upon compliance with all other
      reasonable requirements of the Corporation or law, be entitled to have its
      name
      entered on the register as the owner of such Warrant, free from all equities
      or
      rights of set-off or counterclaim between the Corporation and the transferor
      or
      any previous holder of such Warrant, save in respect of equities of which the
      Corporation is required to take notice by statute or by order of a court of
      competent jurisdiction. The Corporation may treat the registered holder of
      any
      Warrant certificate as the absolute owner of the Warrants represented thereby
      for all purposes, and the Corporation shall not be affected by any notice or
      knowledge to the contrary except where the Corporation is required to take
      notice by statute or by order of a court of competent jurisdiction.

     

    
      	
              6.  

            	
              Partial
                Exercise

            

    

     

    The
      Holder may subscribe for and purchase a number of Common Shares less than the
      number the Holder is entitled to purchase pursuant to this Warrant. In the
      event
      of any such subscription and purchase prior to the Expiry Time, the Holder
      shall
      in addition be entitled to receive, without charge, a new Warrant certificate
      in
      respect of the balance of the Common Shares of which he was entitled to purchase
      pursuant to this certificate and which were then not purchased.

     

    
      	
              7.  

            	
              No
                Fractional Shares

            

    

     

    Notwithstanding
      any adjustments provided for in Section 12 hereof or otherwise, the Corporation
      shall not be required upon the exercise of any Warrants, to issue fractional
      Common Shares in satisfaction of its obligations hereunder. Where a fractional
      Common Share would, but for this Section 7, have been issued upon exercise
      of a
      Warrant, in lieu thereof, the holder of this Warrant shall receive the number
      of
      shares rounded up or down to the nearest whole share.

    
      	
              8.  

            	
              Not
                a Shareholder

            

    

     

    Nothing
      in this certificate or in the holding of the Warrants evidenced hereby shall
      be
      construed as conferring upon the Holder any right or interest whatsoever as
      a
      shareholder of the Corporation.

     

    
      	
              9.  

            	
              No
                Obligation to Purchase

            

    

     

    Nothing
      herein contained or done pursuant hereto shall obligate the Holder to purchase
      or pay for or the Corporation to issue any shares except those shares in respect
      of which the Holder shall have exercised its right to purchase hereunder in
      the
      manner provided herein.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              10.  

            	
              Ranking
                of Warrants

            

    

     

    All
      2007
      Series II warrants shall rank pari passu, notwithstanding the actual
      date of the issue thereof.

     

    
      	
              11.  

            	
              Covenants

            

    

     

    
      	
              (a)  

            	
              The
                Corporation covenants and agrees
                that:

            

    

     

    
      	
            	
              (i)

            	
              so
                long as any Warrants evidenced hereby remain outstanding, it shall
                reserve
                and there shall remain unissued out of its authorized capital a sufficient
                number of Common Shares to satisfy the right of purchase herein provided
                for should the Holder determine to exercise its rights in respect
                of all
                the Common Shares for the time being called for by such outstanding
                Warrants; and

            

    

     

    
      	
            	
              (ii)

            	
              all
                Common Shares which shall be issued upon the exercise of the right
                to
                purchase herein provided for, upon payment therefor of the amount
                at which
                such Common Shares may at the time be purchased pursuant to the provisions
                hereof, shall be issued as fully paid and non-assessable Common Shares
                and
                the holders thereof shall not be liable to the Corporation or to
                its
                creditors in respect thereof.

            

    

     

    
      	
              (b)  

            	
              The
                Corporation shall make all requisite filings under
                the applicable securities
                legislation.

            

    

     

    
      	
              (c)  

            	
              The
                Corporation shall use all reasonable efforts to preserve and maintain
                its
                corporate existence.

            

    

     

    
      	
              12.  

            	
              Adjustment
                to Exercise Price

            

    

     

    The
      Exercise Price in effect at any time is subject to adjustment from time to
      time
      in the events and in the manner provided as follows:

     

    
      	
              (a)  

            	
              If
                and whenever at any time after the date hereof the
                Corporation:

            

    

     

    
      	
            	
              (i)

            	
              issues
                Common Shares or securities exchangeable for or convertible into
                Common
                Shares to all or substantially all the holders of the Common Shares
                as a
                stock dividend; or

            

    

     

    
      	
            	
              (ii)

            	
              makes
                a distribution on its outstanding Common Shares payable in Common
                Shares
                or securities exchangeable for or convertible into Common Shares;
                or

            

    

     

    
      	
            	
              (iii)

            	
              subdivides
                its outstanding Common Shares into a greater number of shares;
                or

            

    

     

    
      	
            	
              (iv)

            	
              consolidates
                its outstanding Common Shares into a smaller number of
                shares;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (any
      of
      such events being called a “Common Share Reorganization”), then
      the Exercise Price will be adjusted effective immediately after the effective
      date or record date for the happening of a Common Share Reorganization, as
      the
      case may be, at which the holders of Common Shares are determined for the
      purpose of the Common Share Reorganization by multiplying the Exercise Price
      in
      effect immediately prior to such effective date or record date by a fraction,
      the numerator of which is the number of Common Shares outstanding on such
      effective date or record date before giving effect to such Common Share
      Reorganization and the denominator of which is the number of Common Shares
      outstanding immediately after giving effect to such Common Share Reorganization
      (including, in the case where securities exchangeable for or convertible into
      Common Shares are distributed, the number of Common Shares that would have
      been
      outstanding had all such securities been exchanged for or converted into Common
      Shares on such effective date or record date).

     

    
      	
              (b)  

            	
              If
                and whenever at any time after the date hereof the Corporation fixes
                a
                record date for the issue of rights, options or warrants to the holders
                of
                all or substantially all of its outstanding Common Shares under which
                such
                holders are entitled to subscribe for or purchase Common Shares or
                securities exchangeable for or convertible into Common Shares,
                where:

            

    

     

    
      	
            	
              (i)

            	
              the
                right to subscribe for or purchase Common Shares, or the right to
                exchange
                securities for or convert securities into Common Shares, expires
                not more
                than 45 days after the date of such issue (the period from the record
                date
                to the date of expiry being herein in this Section 12 called the
                “Rights Period”),
                and

            

    

     

    
      	
            	
              (ii)

            	
              the
                cost per Common Share during the Rights Period (inclusive of any
                cost of
                acquisition of securities exchangeable for or convertible into Common
                Shares in addition to any direct cost of Common Shares) (herein in
                this
                Section 12 called the “Per Share Cost”) is less than 95%
                of the Current Market Price of the Common Shares on the record
                date,

            

    

     

    (any
      of
      such events being called a “Rights Offering”), then the
      Exercise Price will be adjusted effective immediately after the end of the
      Rights Period to a price determined by multiplying the Exercise Price in effect
      immediately prior to the end of the Rights Period by a fraction:

     

    
      	
            	
              (A)

            	
              the
                numerator of which is the aggregate
                of:

            

    

     

    
      	
            	
              (1)

            	
              the
                number of Common Shares outstanding as of the record date for the
                Rights
                Offering; and

            

    

     

    
      	
            	
              (2)

            	
              a
                number determined by dividing the product of the Per Share Cost
                and:

            

    

     

    
      	
            	
              (I)

            	
              where
                the event giving rise to the application of this subsection 12(b)
                was the
                issue of rights, options or warrants to the holders of Common Shares
                under
                which such holders are entitled to subscribe for or purchase additional
                Common Shares, the number of Common Shares so subscribed for or purchased
                during the Rights Period, or

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              (II)

            	
              where
                the event giving rise to the application of this subsection 12(b)
                was the
                issue of rights, options or warrants to the holders of Common Shares
                under
                which such holders are entitled to subscribe for or purchase securities
                exchangeable for or convertible into Common Shares, the number of
                Common
                Shares for which those securities so subscribed for or purchased
                during
                the Rights Period could have been exchanged or into which they could
                have
                been converted during the Rights
                Period,

            

    

     

    by
      the
      Current Market Price of the Common Shares as of the record date for the Rights
      Offering; and

     

    
      	
            	
              (B)

            	
              the
                denominator of which is:

            

    

     

    
      	
            	
              (1)

            	
              in
                the case described in subparagraph 12(b)(ii)(A)(2)(I), the number
                of
                Common Shares outstanding, or

            

    

     

    
      	
            	
              (2)

            	
              in
                the case described in subparagraph 12(b)(ii)(A)(2)(II), the number
                of
                Common Shares that would be outstanding if all the Common Shares
                described
                in subparagraph 12(b)(ii)(A)(2)(II) had been
                issued,

            

    

     

    as
      at the
      end of the Rights Period.

     

    Any
      Common Shares owned by or held for the account of the Corporation or any
      subsidiary or affiliate (as defined in the Securities Act (Ontario)) of
      the Corporation will be deemed not to be outstanding for the purpose of any
      such
      computation.

     

    If
      by the
      terms of the rights, options or warrants referred to in this Section 12, there
      is more than one purchase, conversion or exchange price per Common Share, the
      aggregate price of the total number of additional Common Shares offered for
      subscription or purchase, or the aggregate conversion or exchange price of
      the
      convertible securities so offered, will be calculated for purposes of the
      adjustment on the basis of:

     

    
      	
            	
              (I)

            	
              the
                lowest purchase, conversion or exchange price per Common Share, as
                the
                case may be, if such price is applicable to all Common Shares which
                are
                subject to the rights, options or warrants,
                and

            

    

     

    
      	
            	
              (II)

            	
              the
                average purchase, conversion or exchange price per Common Share,
                as the
                case may be, if the applicable price is determined by reference to
                the
                number of Common Shares acquired.

            

    

     

    To
      the
      extent that any adjustment in the Exercise Price occurs pursuant to this Section
      12 as a result of the fixing by the Corporation of a record date for the
      distribution of rights, options or warrants referred to in this Section 12,
      the
      Exercise Price will be readjusted immediately after the expiration of any
      relevant exchange, conversion or exercise right to the Exercise Price which
      would then be in effect based upon the number of Common Shares actually issued
      and remaining issuable after such expiration, and will be further readjusted
      in
      such manner upon expiration of any further such right.

     

    If
      the
      Holder has exercised this Warrant in accordance herewith during the period
      beginning immediately after the record date for a Rights Offering and ending
      on
      the last day of the Rights Period therefor, the Holder will, in addition to
      the
      Common Shares to which it is otherwise entitled upon such exercise, be entitled
      to that number of additional Common Shares equal to the result obtained when
      the
      Exercise Price in effect immediately prior to the end of such Rights Offering
      pursuant to this subsection is multiplied by the number of Common Shares
      received upon the exercise of this Warrant during such period, and the resulting
      product is divided by the Exercise Price as adjusted for such Rights Offering
      pursuant to this subsection; provided that the provisions of Section 7 will
      be
      applicable to any fractional interest in a Common Share to which such Holder
      might otherwise be entitled. Such additional Common Shares will be deemed to
      have been issued to the Holder immediately following the end of the Rights
      Period and a certificate for such additional Common Shares will be delivered
      to
      such Holder within ten (10) Business Days following the end of the Rights
      Period.

     

    
      	
              (c)  

            	
              If
                and whenever at any time after the date hereof the Corporation fixes
                a
                record date for the issue or the distribution to the holders of all
                or
                substantially all its Common Shares
                of:

            

    

     

    
      	
            	
              (i)

            	
              shares
                of the Corporation of any class other than Common
                Shares;

            

    

     

    
      	
            	
              (ii)

            	
              rights,
                options or warrants to acquire shares or securities exchangeable
                for or
                convertible into shares or property or other assets of the
                Corporation;

            

    

     

    
      	
            	
              (iii)

            	
              evidence
                of indebtedness; or

            

    

     

    
      	
            	
              (iv)

            	
              any
                property or other assets,

            

    

     

    and
      if
      such issuance or distribution does not constitute (A) a Common Share
      Reorganization, (B) a Rights Offering or (C) the issue of rights, options or
      warrants to the holders of all or substantially all of its outstanding Common
      Shares under which such holders are entitled to subscribe for or purchase Common
      Shares or securities exchangeable for or convertible into Common Shares,
      where:

     

    
      	
            	
              (x)

            	
              the
                right to subscribe for or purchase Common Shares, or the right to
                exchange
                securities for or convert securities into Common Shares, expires
                not more
                than 45 days after the date of such issue,
                and

            

    

    
      	
            	
              (y)

            	
              the
                cost per Common Share during the Rights Period, inclusive of the
                Per Share
                Cost, is 95% or more than the Current Market Price of the Common
                Shares on
                the record date

            

    

     

    (any
      of
      such non-excluded events being called a “Special
      Distribution”), the Exercise Price will be adjusted effective
      immediately after such record date to a price determined by multiplying the
      Exercise Price in effect on such record date by a fraction:

     

    
      	
            	
              (A)

            	
              the
                numerator of which is:

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              (1)

            	
              the
                product of the number of Common Shares outstanding on such record
                date and
                the Current Market Price of the Common Shares on such record date;
                less

            

    

     

    
      	
            	
              (2)

            	
              the
                aggregate fair market value (as determined by action by the directors
                of
                the Corporation, subject, however, to the prior written consent of
                the
                Exchange, where required) to the holders of the Common Shares of
                such
                securities or property or other assets so issued or distributed in
                the
                Special Distribution; and

            

    

     

    
      	
            	
              (B)

            	
              the
                denominator of which is the number of Common Shares outstanding on
                such
                record date multiplied by the Current Market Price of the Common
                Shares on
                such record date.

            

    

     

    Any
      Common Shares owned by or held for the account of the Corporation or any
      subsidiary or affiliate (as defined in the Securities Act (Ontario)) of
      the Corporation will be deemed not to be outstanding for the purpose of any
      such
      computation.

     

    
      	
              (d)  

            	
              If
                and whenever at any time after the date hereof there is a Common
                Share
                Reorganization, a Rights Offering, a Special Distribution, a
                reclassification or redesignation of the Common Shares outstanding
                at any
                time or change of the Common Shares into other shares or into other
                securities (other than a Common Share Reorganization), or a consolidation,
                amalgamation or merger of the Corporation with or into any other
                corporation or other entity (other than a consolidation, amalgamation
                or
                merger which does not result in any reclassification or redesignation
                of
                the outstanding Common Shares or a change of the Common Shares into
                other
                shares), or a transfer of the undertaking or assets of the Corporation
                as
                an entirety or substantially as an entirety to another corporation
                or
                other entity (any of such events being called a “Capital
                Reorganization”), the Holder, upon exercising this Warrant after
                the effective date of such Capital Reorganization, will be entitled
                to
                receive in lieu of the number of Common Shares to which such Holder
                was
                theretofore entitled upon such exercise, the aggregate number of
                shares,
                other securities or other property which such Holder would have been
                entitled to receive as a result of such Capital Reorganization if,
                on the
                effective date thereof, the Holder had been the registered holder
                of the
                number of Common Shares to which such Holder was theretofore entitled
                upon
                exercise of this Warrant. If determined appropriate by action of
                the
                directors of the Corporation, appropriate adjustments will be made
                as a
                result of any such Capital Reorganization in the application of the
                provisions set forth in this Section 12 with respect to the rights
                and
                interests thereafter of the Holder to the end that the provisions
                set
                forth in this Section 12 will thereafter correspondingly be made
                applicable as nearly as may reasonably be in relation to any shares,
                other
                securities or other property thereafter deliverable upon the exercise
                hereof. Any such adjustment must be made by and set forth in an amendment
                to this Warrant approved by action by the directors of the Corporation
                and
                will for all purposes  be conclusively deemed to be an
                appropriate adjustment.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (e)  

            	
              If
                at any time after the date hereof and prior to the Expiry Time any
                adjustment in the Exercise Price shall occur as a result
                of:

            

    

     

    
      	
            	
              (i)

            	
              an
                event referred to in subsection
                12(a);

            

    

     

    
      	
            	
              (ii)

            	
              the
                fixing by the Corporation of a record date for an event referred
                to in
                subsection 12(b); or

            

    

     

    
      	
            	
              (iii)

            	
              the
                fixing by the Corporation of a record date for an event referred
                to in
                subsection 12(c) if such event constitutes the issue or distribution
                to
                the holders of all or substantially all of its outstanding Common
                Shares
                of (A) Equity Shares, or (B) securities exchangeable for or convertible
                into Equity Shares at an exchange or conversion price per Equity
                Shares
                less than the Current Market Price on such record date or (C) rights,
                options or warrants to acquire Equity Shares at an exercise, exchange
                or
                conversion price per Equity Share less than the Current Market Price
                on
                such record date,

            

    

     

    then,
      where required, the number of Common Shares purchasable upon the subsequent
      exercise of this Warrant shall be simultaneously adjusted by multiplying the
      number of Common Shares purchasable upon the exercise of this Warrant
      immediately prior to such adjustment by a fraction which shall be the reciprocal
      of the fraction employed in the adjustment of the Exercise Price. To the extent
      any adjustment in subscription rights occurs pursuant to this subsection 12(e)
      as a result of a distribution of exchangeable or convertible securities other
      than Equity Shares referred to in subsection 12(a) or as a result of the fixing
      by the Corporation of a record date for the distribution of rights, options
      or
      warrants referred to in subsection 12(b), the number of Common Shares
      purchasable upon exercise of this Warrant shall be readjusted immediately after
      the expiration of any relevant exchange, conversion or exercise right to the
      number of Common Shares which would be purchasable based upon the number of
      Common Shares actually issued and remaining issuable immediately after such
      expiration, and shall be further readjusted in such manner upon expiration
      of
      any further such right. To the extent that any adjustment in subscription rights
      occurs pursuant to this subsection 12(e) as a result of the fixing by the
      Corporation of a record date for the distribution of exchangeable or convertible
      securities other than Equity Shares or rights, options or warrants referred
      to
      in subsection 12(c), the number of Common Shares purchasable upon exercise
      of
      this Warrant shall be readjusted immediately after the expiration of any
      relevant exchange, conversion or exercise right to the number which would be
      purchasable pursuant to this subsection 12(e) if the fair market value of such
      securities or such rights, options or warrants had been determined for purposes
      of the adjustment pursuant to this subsection 12(e) on the basis of the number
      of Equity Shares issued and remaining issuable immediately after such
      expiration, and shall be further readjusted in such manner upon expiration
      of
      any further such right.

     

    
      	
              13.  

            	
              Rules
                Regarding Calculation of Adjustment of Exercise
                Price

            

    

     

    
      	
              (a)  

            	
              The
                adjustments provided for in Section 12 are cumulative and will, in
                the
                case of adjustments to the Exercise Price, be computed to the nearest
                one-tenth of one cent and will be made successively whenever an event
                referred to therein occurs, subject to the following subsections
                of this
                Section 13.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (b)  

            	
              No
                adjustment in the Exercise Price is required to be made unless such
                adjustment would result in a change of at least 1% in the prevailing
                Exercise Price; provided, however, that any adjustments which, except
                for
                the provisions of this subsection, would otherwise have been required
                to
                be made, will be carried forward and taken into account in any subsequent
                adjustments.

            

    

     

    
      	
              (c)  

            	
              No
                adjustment in the Exercise Price will be made in respect of any event
                described in Section 12, other than the events referred to in clauses
                12(a)(iii) and (iv), if the Holder is entitled to participate in
                such
                event on the same terms, mutatis mutandis, as if the Holder had
                exercised this Warrant prior to or on the effective date or record
                date of
                such event.

            

    

     

    
      	
              (d)  

            	
              No
                adjustment in the Exercise Price will be made under Section 12 in
                respect
                of the issue from time to time of Common Shares issuable from time
                to time
                as dividends paid in the ordinary course to holders of Common Shares
                who
                exercise an option or election to receive substantially equivalent
                dividends in Common Shares in lieu of receiving a cash dividend,
                and any
                such issue will be deemed not to be a Common Share
                Reorganization.

            

    

     

    
      	
              (e)  

            	
              If
                at any time a dispute arises with respect to adjustments provided
                for in
                Section 12 or the failure to make adjustments, such dispute will
                be
                conclusively determined by the auditors of the Corporation or if
                they are
                unable or unwilling to act, by such other firm of independent chartered
                accountants certified by the United States Public Accounting Oversight
                Board as may be selected by action by the directors of the Corporation
                and
                any such determination, where required, will be binding upon the
                Corporation, the Holder and shareholders of the Corporation. The
                Corporation will provide such auditors or accountants with access
                to all
                necessary records of the
                Corporation.

            

    

     

    
      	
              (f)  

            	
              In
                case the Corporation after the date of issuance of this Warrant takes
                any
                action affecting the Common Shares, other than action described in
                Section
                12, which in the opinion of the board of directors of the Corporation
                would materially affect the rights of the Holder, the Exercise Price
                will
                be adjusted in such manner, if any, and at such time, by action by
                the
                directors of the Corporation but subject in all cases to the prior
                written
                consent of the Exchange, where required, and any necessary regulatory
                approval.  Failure of the taking of action by the directors of
                the Corporation so as to provide for an adjustment on or prior to
                the
                effective date of any action by the Corporation affecting the Common
                Shares will be conclusive evidence that the board of directors of
                the
                Corporation has determined that it is equitable to make no adjustment
                in
                the circumstances.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (g)  

            	
              If
                the Corporation sets a record date to determine the holders of the
                Common
                Shares for the purpose of entitling them to receive any dividend
                or
                distribution or sets a record date to take any other action and,
                thereafter and before the distribution to such shareholders of any
                such
                dividend or distribution or the taking of any other action, decides
                not to
                implement its plan to pay or deliver such dividend or distribution
                or take
                such other action, then no adjustment in the Exercise Price will
                be
                required by reason of the setting of such record
                date.

            

    

     

    
      	
              (h)  

            	
              In
                the absence of a resolution of the directors of the Corporation fixing
                a
                record date for a Special Distribution or Rights Offering, the Corporation
                will be deemed to have fixed as the record date therefor the date
                on which
                the Special Distribution or Rights Offering is
                effected.

            

    

     

    
      	
              (i)  

            	
              As
                a condition precedent to the taking of any action which would require
                any
                adjustment to this Warrant, including the Exercise Price, the Corporation
                must take any corporate action which may be necessary in order that
                the
                Corporation have unissued and reserved in its authorized capital
                and may
                validly and legally issue as fully paid and non-assessable all the
                shares
                or other securities which the Holder is entitled to receive on the
                full
                exercise thereof in accordance with the provisions
                hereof.

            

    

     

    
      	
              (j)  

            	
              The
                Corporation will from time to time, immediately after the occurrence
                of
                any event which requires an adjustment or readjustment as provided
                in
                Section 12, forthwith give notice to the Holder specifying the event
                requiring such adjustment or readjustment and the results thereof,
                including the resulting Exercise
                Price.

            

    

     

    
      	
              (k)  

            	
              The
                Corporation covenants to and in favour of the Holder that so long
                as this
                Warrant remains outstanding, it will give notice to the Holder of
                its
                intention to fix a record date for any event referred to in subsections
                12(a), (b) or (c) (other than the subdivision or consolidation of
                the
                Common Shares) which may give rise to an adjustment in the Exercise
                Price,
                and, in each case, such notice must specify the particulars of such
                event
                and the record date and the effective date for such event; provided
                that
                the Corporation is only required to specify in such notice such
                particulars of such event as have been fixed and determined on the
                date on
                which such notice is given. Such notice shall be given not less than
                14
                days prior to each such applicable record date or effective
                date.

            

    

     

    
      	
              14.  

            	
              Consolidation
                and Amalgamation

            

    

     

    
      	
              (a)  

            	
              The
                Corporation shall not enter into any transaction whereby all or
                substantially all of its undertaking, property and assets would become
                the
                property of any other corporation (herein called a “successor
                corporation”) whether by way of reorganization, reconstruction,
                consolidation, amalgamation, merger, transfer, sale, disposition
                or
                otherwise, unless prior to or contemporaneously with the consummation
                of
                such transaction the Corporation and the successor corporation shall
                have
                executed such instruments and done such things as, in the opinion
                of
                counsel to the Holder, are necessary or advisable to establish that
                upon
                the consummation of such
                transaction:

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              (i)

            	
              the
                successor corporation will have assumed all the covenants and obligations
                of the Corporation under this Warrant,
                and

            

    

     

    
      	
            	
              (ii)

            	
              the
                Warrant will be a valid and binding obligation of the successor
                corporation entitling the Holder, as against the successor corporation,
                to
                all the rights of the Holder under this
                Warrant.

            

    

     

    
      	
              (b)  

            	
              Whenever
                the conditions of subsection 14(a) shall have been duly observed
                and
                performed the successor corporation shall possess, and from time
                to time
                may exercise, each and every right and power of the Corporation under
                this
                Warrant in the name of the Corporation or otherwise and any act or
                proceeding by any provision hereof required to be done or performed
                by any
                director or officer of the Corporation may be done and performed
                with like
                force and effect by the like directors or officers of the successor
                corporation.

            

    

     

    
      	
              15.  

            	
              Representation
                and Warranty of
                Corporation

            

    

     

    The
      Corporation hereby represents and warrants with and to the Holder that the
      Corporation is duly authorized and has the corporate and lawful power and
      authority to create and issue this Warrant and the Common Shares issuable upon
      the exercise hereof and perform its obligations hereunder and that this Warrant
      represents a valid, legal and binding obligation of the Corporation enforceable
      in accordance with its terms.

     

    
      	
              16.  

            	
              United
                States Securities Law
                Matters

            

    

     

    
      	
              (a)  

            	
              Neither
                this Warrant nor the Warrant Shares have been registered under the
                U.S.
                Securities Act, or any state securities
                laws.

            

    

     

    
      	
              (b)  

            	
              By
                subscribing for this Warrant the Holder is deemed to have represented
                to
                the Corporation that this Warrant and, if applicable, the Warrant
                Shares
                (collectively, the "Securities") have been acquired for investment
                for the
                Holder’s own account, not as a nominee agent, and not with a view to the
                resale or distribution of any part thereof to any U.S. Person within
                the
                meaning of Regulation S under the U.S. Securities Act, the Holder
                has no
                present intention of selling, granting any participation in, or otherwise
                distributing the same to any U.S. Person and the Holder does not
                have any
                contract, undertaking, agreement or arrangement with any U.S. Person
                to
                sell, transfer or grant participations to such person or to any third
                person residing in the United States, with respect to any of the
                Securities.

            

    

     

    
      	
              (c)  

            	
              The
                Securities shall be deemed restricted securities under the U.S. Securities
                Act and may not be resold in the United States unless they are registered
                under the Act and any applicable state securities law, or in the
                opinion
                of counsel in form and substance reasonably satisfactory to the
                Corporation, an exemption from such registration is
                available.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (d)  

            	
              Rule
                144 promulgated under the U.S. Securities Act provides, in substance,
                that
                (1) after one year from the date restricted securities have been
                purchased and fully paid for, a holder may transfer restricted securities
                in the United States provided certain conditions are met, e.g., certain
                public information is available about the Corporation, and specific
                limitations on the amount of shares which can be sold within certain
                periods and the manner in which such shares must be sold are complied
                with, and (2) after two years from the date the Securities have been
                purchased and fully paid for, holders who are not “affiliates” of the
                Corporation may sell restricted securities in the United States without
                satisfying such conditions.

            

    

     

    
      	
              (e)  

            	
              If
                the requirements of Rule 144 are not met, registration under the
                U.S.
                Securities Act, compliance with Regulation A, or some other registration
                exemption will be required for any disposition of the Securities
                in the
                United States The United States Securities and Exchange Commission
                has
                expressed its opinion that persons proposing to sell restricted securities
                other than in a registered offering or other than pursuant to Rule
                144
                will have a substantial burden of proof in establishing that an exemption
                from registration is available for such offers or sales in the United
                States and such persons and the brokers who participate in the
                transactions do so at their own
                risk.

            

    

     

    
      	
              17.  

            	
              If
                Share Transfer Books
                Closed

            

    

     

    The
      Corporation shall not be required to deliver certificates for Common Shares
      while the share transfer books of the Corporation are properly closed, prior
      to
      any meeting of shareholders or for the payment of dividends or for any other
      purpose and in the event of the surrender of any Warrant in accordance with
      the
      provisions hereof and the making of any subscription and payment for the Common
      Shares called for thereby during any such period delivery of certificates for
      Common Shares may be postponed for not exceeding five (5) Business Days after
      the date of the re-opening of said share transfer books. Provided however that
      any such postponement of delivery of certificates shall be without prejudice
      to
      the right of the Holder, if the Holder has surrendered the same and made payment
      during such period, to receive such certificates for the Common Shares called
      for after the share transfer books have been re-opened.

     

    
      	
              18.  

            	
              Protection
                of Shareholders, Officers and
                Directors

            

    

     

    Subject
      as herein provided, all or any of the rights conferred upon the Holder may
      be
      enforced by the Holder by appropriate legal proceedings. No recourse under
      or
      upon any obligation, covenant or agreement herein contained or in any of the
      Warrants represented hereby shall be taken against any shareholder, officer
      or
      director of the Corporation, either directly or through the Corporation, it
      being expressly agreed and declared that the obligations under the Warrants
      evidenced hereby, are solely corporate obligations of the Corporation and that
      no personal liability whatever shall attach to or be incurred by the
      shareholders, officers, or directors of the Corporation or any of them in
      respect thereof, any and all rights and claims against every such shareholder,
      officer or director being hereby expressly waived as a condition of and as
      a
      consideration for the issue of the Warrants evidenced hereby.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              19.  

            	
              Lost
                Certificate

            

    

     

    If
      the
      Warrant certificate evidencing the Warrants issued hereby becomes stolen, lost,
      mutilated or destroyed the Corporation may, on such terms, as it may in its
      discretion impose, respectively issue and countersign a new warrant of like
      denomination, tenor and date as the certificate so stolen, lost mutilated or
      destroyed.

     

    
      	
              20.  

            	
              Governing
                Law

            

    

     

    The
      corporate laws of the State of Delaware shall govern all issues concerning
      the
      relative rights of the Corporation and its stockholders.  All other
      questions concerning the construction, validity, enforcement and interpretation
      of this Warrant shall be governed by the internal laws of the State of
      California, without giving effect to any choice of law or conflict of law
      provision or rule (whether of the State of California or any other
      jurisdictions) that would cause the application of the laws of any jurisdictions
      other than the State of California.

     

    
      	
              21.  

            	
              Severability

            

    

     

    If
      any
      one or more of the provisions or parts thereof contained in this Warrant should
      be or become invalid, illegal or unenforceable in any respect in any
      jurisdiction, the remaining provisions or parts thereof contained herein shall
      be and shall be conclusively deemed to be, as to such jurisdiction, severable
      therefrom and:

     

    
      	
            	
              (i)

            	
              the
                validity, legality or enforceability of such remaining provisions
                or parts
                thereof shall not in any way be affected or impaired by the severance
                of
                the provisions or parts thereof severed;
                and

            

    

     

    
      	
            	
              (ii)

            	
              the
                invalidity, illegality or unenforceability of any provision or part
                thereof contained in this Warrant in any jurisdiction shall not affect
                or
                impair such provision or part thereof or any other provisions of
                this
                Warrant in any other jurisdiction.

            

    

     

    
      	
              22.  

            	
              Headings

            

    

     

    The
      headings of the articles, sections, subsections and clauses of this Warrant
      have
      been inserted for convenience and reference only and do not define, limit,
      alter
      or enlarge the meaning of any provision of this Warrant.

     

    
      	
              23.  

            	
              Numbering
                of Articles, etc.

            

    

     

    Unless
      otherwise stated, a reference herein to a numbered or lettered article, section,
      subsection, clause, subclause or schedule refers to the article, section,
      subsection, clause, subclause or schedule bearing that number or letter in
      this
      Warrant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              24.  

            	
              Gender

            

    

     

    Whenever
      used in this Warrant, words importing the singular number only shall include
      the
      plural, and vice versa, and words importing the masculine gender shall include
      the feminine gender.

     

    
      	
              25.  

            	
              Day
                not a Business Day

            

    

     

    In
      the
      event that any day on or before which any action is required to be taken
      hereunder is not a Business Day, then such action shall be required to be taken
      on or before the requisite time on the next succeeding day that is a Business
      Day. If the payment of any amount is deferred for any period, then such period
      shall be included for purposes of the computation of any interest payable
      hereunder.

     

    
      	
              26.  

            	
              Computation
                of Time Period

            

    

     

    Except
      to
      the extent otherwise provided herein, in the computation of a period of time
      from a specified date to a later specified date, the word “from” means “from and
      including” and the words “to” and “until” each mean “to but
      excluding”.

     

    
      	
              27.  

            	
              Binding
                Effect

            

    

     

    This
      Warrant and all of its provisions shall enure to the benefit of the Holder
      and
      his heirs, executors, administrators, legal personal representatives, permitted
      assigns and successors and shall be binding upon the Corporation and its
      successors and permitted assigns.

     

    
      	
              28.  

            	
              Notice

            

    

     

    Any
      notice, document or communication required or permitted by this Warrant to
      be
      given by a party hereto shall be in writing and is sufficiently given if
      delivered personally, or if sent by prepaid registered mail, or if transmitted
      by any form of recorded telecommunication tested prior to transmission, to
      such
      party addressed as follows:

     

    
      	
            	
              (i)

            	
              to
                the Holder, in the register to be maintained pursuant to Section
                5 hereof;
                and

            

    

     

    
      	
            	
              (ii)

            	
              to
                the Corporation at:

            

    

     

    3108
      Gabbert
      Dr.

    Suite
      210

    Cameron
      Park, CA 95682

     

    Attention:
      Scott Dockter

     

    Telecopier: (530)
      677-7626

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Notice
      so
      mailed shall be deemed to have been given on the third (3rd) Business
      Day
      after deposit in a post office or public letter box. Neither party shall mail
      any notice, request or other communication hereunder during any period in which
      applicable postal workers are on strike or if such strike is imminent and may
      reasonably be anticipated to affect the normal delivery of mail. Notice
      transmitted by a form of recorded telecommunication or delivered personally
      shall be deemed given on the day of transmission or personal delivery, as the
      case may be. Any party may from time to time notify the other in the manner
      provided herein of any change of address which thereafter, until change by
      like
      notice, shall be the address of such party for all purposes hereof.

     

    
      	
              29.  

            	
              Time
                of Essence

            

    

     

    Time
      shall be of the essence hereof.

     

    IN
      WITNESS WHEREOF the Corporation has caused this Warrant certificate to
      be signed by its duly authorized officer as of this _______ day of
      ________, 2007.

     

    
      	
              FIRSTGOLD
                CORP.

            
	
              Per:

            	 
	 	
              Authorized
                Signing Officer

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      “A”

     

    SUBSCRIPTION
      FORM

     

    
      	
              TO:

            	
              FIRSTGOLD
                CORP.

            

    

     

    3108
      Gabbert Dr.

    Suite
      210

    Cameron
      Park, CA 95682

     

    The
      undersigned holder of the within Warrant certificate hereby irrevocably
      subscribes for
                         
      Common Shares of Firstgold
      Corp. (the “Corporation”) pursuant to the within Warrant
      certificate at the Exercise Price per share specified in the said Warrant
      certificate and encloses herewith cash or a certified cheque, money order or
      bank draft payable to the order of the Corporation in payment of the
      subscription price therefor.  Capitalized terms used herein have the
      meanings set forth in the within Warrant certificate.

     

    The
      undersigned hereby acknowledges that the following legends will be placed on
      the
      certificates representing the Common Shares being acquired if the Warrants
      are
      exercised prior to expiry of the hold periods applicable to the
      Warrants:

     

    UNLESS
      PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT
      TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER
      OF
      (i) APRIL ·,
      2007, AND (ii) THE DATE THE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE
      OR
      TERRITORY OF CANADA.

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN OFFERED AND SOLD IN AN
      “OFFSHORE TRANSACTION” IN RELIANCE UPON REGULATION S AS PROMULGATED BY THE
      SECURITIES AND EXCHANGE COMMISSION. ACCORDINGLY, THE SECURITIES REPRESENTED
      BY
      THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
      (THE
“SECURITIES ACT”) AND MAY NOT BE TRANSFERRED OTHER THAN IN ACCORDANCE WITH
      REGULATION S, PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT
      TO
      AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT, THE
      AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY.
      THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING
      TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE
      SECURITIES ACT.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    The
      undersigned hereby certifies that the undersigned is not a U.S. Person or a
      person in the United States, and is not acquiring any of the Common Shares
      issuable upon the exercise of the Warrants for the account or benefit of a
      U.S.
      Person or a person in the United States.  For purposes hereof “United
      States” and “U.S. Person” shall have the meanings given to such terms in
      Regulation S under the United States Securities Act of 1933, as
      amended.

    DATED
      this           
      day of
                                     ,
      200     .

     

    
      	 	 	
              NAME:

            	 
	 	 	
              Signature:

            	 
	 	 	
              Address:

            	 
	 	 	 	 

    

    

    
      	o	
              Please
                check box if these Common Share certificates are to be delivered
                at the
                office where this Warrant certificate is surrendered, failing which
                the
                Common Shares certificates will be mailed to the subscriber at the
                address
                set out above.

            	 

    

     

    
      If
        any
        Warrants represented by this certificate are not being exercised, a new Warrant
        certificate will be issued and delivered with the Common Share
        certificates.  

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      “B”

     

    Form
      of Transfer

     

    THE
      WARRANTS REPRESENTED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED OTHER THAN IN ACCORDANCE WITH
      REGULATION S PROMULGATED UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE
      “SECURITIES ACT”), PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT, OR
      PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT,
      THE AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE
      CORPORATION.

     

    FOR
      VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
      unto (name)
                                         
      (the “Transferee”),
      of                                                                           
   

                                                                                                          (residential
      address)
                   
Warrants of Firstgold
      Corp. (the “Corporation”) registered in the name of the
      undersigned on the records of the Corporation represented by the within
      certificate, and irrevocably appoints the Secretary of the Corporation as the
      attorney of the undersigned to transfer the said securities on the books or
      register of transfer, with full power of substitution.

    The
      undersigned hereby certifies that
      the transfer of these securities is not being made to, and the offer of these
      securities was not made to, and the person named above is not, a person in
      the
      United States or a U.S. person (as such terms are defined in Regulation S under
      the United States Securities Act of 1933) unless an effective
      U.S.
      registration statement covering these securities is in place or a U.S. exemption
      from registration is available.

    DATED
      the          day of
                                ,
      200    .

     

    
      	 	 	 
	
              Signature
                Guaranteed

            	 	
              (Signature
                of Warrant Holder, to be the same as appears on the face of this
                Warrant
                Certificate)EXHIBIT 4.4

 

 

 

AVIGEN,
INC.,
ISSUER

 

AND

 

[TRUSTEE],
TRUSTEE

_______________________

INDENTURE

DATED AS OF [__], 200__

_______________________

SENIOR DEBT
SECURITIES

TABLE OF CONTENTS
(1)

	 		 	PAGE 
	 
	ARTICLE 1 	    
    	DEFINITIONS 	1 
	1.01 		Definitions Of Terms 	1 
	ARTICLE 2 		ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND
      EXCHANGE OF SECURITIES 	5 
	2.01 		Designation And Terms Of Securities 	5 
	2.02 		Form Of Securities And Trustee’s
      Certificate 	7 
	2.03 		Denominations: Provisions For Payment 	7 
	2.04 		Execution And Authentications 	9 
	2.05 		Registration Of Transfer And Exchange 	9 
	2.06 		Temporary Securities 	10 
	2.07 		Mutilated, Destroyed, Lost Or Stolen
    Securities 	11 
	2.08 		Cancellation 	12 
	2.09 		Benefits Of Indenture 	12 
	2.10 		Authenticating Agent 	12 
	2.11 		Global Securities 	13 
	ARTICLE 3 		REDEMPTION OF SECURITIES AND SINKING FUND
      PROVISIONS 	14 
	3.01 		Redemption 	14 
	3.02 		Notice Of Redemption 	14 
	3.03 		Payment Upon Redemption 	15 
	3.04 		Sinking Fund 	15 
	3.05 		Satisfaction Of Sinking Fund Payments With
      Securities 	16 
	3.06 		Redemption Of Securities For Sinking
      Fund 	16 
	ARTICLE 4 		COVENANTS 	16 
	4.01 		Payment Of Principal, Premium And
      Interest 	16 
	4.02 		Maintenance Of Office Or Agency 	17 
	4.03 		Paying Agents 	17 
	4.04 		Appointment To Fill Vacancy In Office Of
    Trustee 	18 
	4.05 		Compliance With Consolidation
      Provisions 	18 
	ARTICLE 5 		SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE
      TRUSTEE  	18 
	5.01 		Company To Furnish Trustee Names And Addresses Of
      Securityholders 	18 

-i-

TABLE
OF CONTENTS 
(CONTINUED)

	 		 	PAGE 
	 
	5.02 		Preservation Of Information; Communications With
      Securityholders 	19 
	5.03 	 	Reports By
      The Company 	19 
	5.04 	    
    	Reports By The Trustee 	19 
	ARTICLE
      6 		REMEDIES
      OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF
      DEFAULT  	20 
	6.01 		Events Of Default 	20 
	6.02 		Collection
      Of Indebtedness And Suits For Enforcement By
Trustee 	21 
	6.03 		Application Of Moneys Collected 	23 
	6.04 		Limitation
      On Suits 	23 
	6.05 		Rights And Remedies Cumulative; Delay Or Omission Not
      Waiver 	24 
	6.06 		Control By
      Securityholders 	24 
	6.07 		Undertaking To Pay Costs 	25 
	ARTICLE
      7 		CONCERNING
      THE TRUSTEE 	25 
	7.01 		Certain Duties And Responsibilities Of
    Trustee 	25 
	7.02 		Certain
      Rights Of Trustee 	26 
	7.03 		Trustee Not Responsible For Recitals Or Issuance Or
      Securities 	27 
	7.04 		May Hold
      Securities 	28 
	7.05 		Moneys Held In Trust 	28 
	7.06 		Compensation And Reimbursement 	28 
	7.07 		Reliance On Officers’ Certificate 	29 
	7.08 		Disqualification; Conflicting Interests 	29 
	7.09 		Corporate Trustee Required; Eligibility 	29 
	7.10 		Resignation And Removal; Appointment Of
      Successor 	29 
	7.11 		Acceptance Of Appointment By Successor 	30 
	7.12 		Merger,
      Conversion, Consolidation Or Succession To Business 	32 
	7.13 		Preferential Collection Of Claims Against The
      Company 	32 
	7.14 		Notice Of
      Default 	32 
	ARTICLE 8 		CONCERNING THE SECURITYHOLDERS 	32 
	8.01 		Evidence
      Of Action By Securityholders 	32 
	8.02 		Proof Of Execution By Securityholders 	33 

-ii-

TABLE
OF CONTENTS 
(CONTINUED)

	 		 	PAGE 
	 
	8.03 		Who May Be Deemed Owners 	33 
	8.04 		Certain
      Securities Owned By Company Disregarded 	33 
	8.05 	    
    	Actions Binding On Future Securityholders 	34 
	ARTICLE
      9 		SUPPLEMENTAL INDENTURES 	34 
	9.01 	 	Supplemental Indentures Without The Consent Of
      Securityholders 	34 
	9.02 		Supplemental Indentures With Consent Of
      Securityholders 	35 
	9.03 		Effect Of Supplemental Indentures 	36 
	9.04 		Securities
      Affected By Supplemental Indentures 	36 
	9.05 		Execution Of Supplemental Indentures 	36 
	ARTICLE
      10 		SUCCESSOR
      ENTITY 	37 
	10.01 		Company May Consolidate, Etc. 	37 
	10.02 		Successor
      Entity Substituted 	37 
	10.03 		Evidence Of Consolidation, Etc. To Trustee 	38 
	ARTICLE
      11 		SATISFACTION AND DISCHARGE 	38 
	11.01 		Satisfaction And Discharge Of Indenture 	38 
	11.02 		Discharge
      Of Obligations 	38 
	11.03 		Deposited Moneys To Be Held In Trust 	39 
	11.04 		Payment Of
      Moneys Held By Paying Agents 	39 
	11.05 		Repayment To Company 	39 
	ARTICLE
      12 		IMMUNITY
      OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND
      DIRECTORS  	39 
	12.01 		No Recourse 	39 
	ARTICLE
      13 		MISCELLANEOUS PROVISIONS 	40 
	13.01 		Effect On Successors And Assigns 	40 
	13.02 		Actions By
      Successor 	40 
	13.03 		Surrender Of Company Powers 	40 
	13.04 		Notices 	40 
	13.05 		Governing Law 	40 
	13.06 		Treatment
      Of Securities As Debt 	41 
	13.07 		Certificates And Opinions As To Conditions
      Precedent 	41 

-iii-

TABLE
OF CONTENTS 
(CONTINUED)

	 		 	PAGE 
	 
	              13.08 	     	Payments On Business Days 	41 
	13.09 	 	Conflict
      With Trust Indenture Act 	41 
	13.10 	 	Counterparts 	41 
	13.11 	 	Separability 	41 
	13.12 	 	Compliance Certificates 	42 

-iv-

INDENTURE

     INDENTURE, dated as of [·], 200__,
among AVIGEN,
INC., a Delaware corporation (the
“Company”), and [TRUSTEE],
as trustee (the “Trustee”):

     WHEREAS, for its lawful corporate purposes, the Company has
duly authorized the execution and delivery of this Indenture to provide for the
issuance of debt securities (hereinafter referred to as the “Securities”), in an
unlimited aggregate principal amount to be issued from time to time in one or
more series as in this Indenture provided, as registered Securities without
coupons, to be authenticated by the certificate of the Trustee;

     WHEREAS, to provide the terms and conditions upon which the
Securities are to be authenticated, issued and delivered, the Company has duly
authorized the execution of this Indenture; and

     WHEREAS, all things necessary to
make this Indenture a valid agreement of the Company, in accordance with its
terms, have been done.

     NOW,
THEREFORE, in consideration of the
premises and the purchase of the Securities by the holders thereof, it is
mutually covenanted and agreed as follows for the equal and ratable benefit of
the holders of Securities:

ARTICLE
1

DEFINITIONS

     1.01 Definitions Of Terms. The terms defined in
this Section (except as in this Indenture or any indenture supplemental hereto
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 and shall include the plural
as well as the singular. All other terms used in this Indenture that are defined
in the Trust Indenture Act of 1939, as amended, or that are by reference in such
Act defined in the Securities Act of 1933, as amended (except as herein or any
indenture supplemental hereto 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 the
execution of this instrument.

     “Authenticating Agent”
means an authenticating agent with respect to all or any of the series of
Securities appointed by the Trustee pursuant to Section 2.10.

     “Bankruptcy Law” means
Title 11, U.S. Code, or any similar federal or state law for the relief of
debtors.

     “Board Of Directors”
means the Board of Directors of the Company or any duly authorized committee of
such Board.

     “Board Resolution”
means a copy of a resolution certified by the Secretary or an
Assistant Secretary of the Company to
have been duly adopted by the Board of Directors and to be in full force and
effect on the date of such certification.

1

     “Business Day” means,
with respect to any series of Securities, any day other than a day on which
federal or state banking institutions in the Borough of Manhattan, the City of
New York, or in the city of the Corporate Trust Office of the Trustee, are
authorized or obligated by law, executive order or regulation to
close.

     “Certificate” means a
certificate signed by any Officer. The Certificate need not comply with the
provisions of Section 13.07.

     “Company” means
Avigen, Inc., a corporation duly organized and existing under the laws of the
State of Delaware, and, subject to the provisions of Article Ten, shall also
include its successors and assigns.

     “Corporate Trust
Office” means the office of the Trustee at which, at any particular
time, its corporate trust business shall be principally administered, which
office at the date hereof is located at ________________________________.
 
     “Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law.

     “Default” means any
event, act or condition that with notice or lapse of time, or both, would
constitute an Event of Default.

     “Depositary” means,
with respect to Securities of any series for which the Company shall determine
that such Securities will be issued as a Global Security, The Depository Trust
Company, New York, New York, another clearing agency, or any successor
registered as a clearing agency under the Securities and Exchange Act of 1934,
as amended (the “Exchange Act”), or other applicable statute or regulation,
which, in each case, shall be designated by the Company pursuant to either
Section 2.01 or 2.11.

     “Event Of Default”
means, with respect to Securities of a particular series, any event specified in
Section 6.01, continued for the period of time, if any, therein
designated.

     “Global Security”
means, with respect to any series of Securities, a Security executed by the
Company and delivered by the Trustee to the Depositary or pursuant to the
Depositary’s instruction, all in accordance with the Indenture, which shall be
registered in the name of the Depositary or its nominee.

     “Governmental
Obligations” means securities that are (a) direct obligations of the
United States of America for the payment of which its full faith and credit is
pledged or (b) obligations of a Person controlled or supervised by and acting as
an agency or instrumentality of the United States of America, the payment of
which is unconditionally guaranteed as a full faith and credit obligation by the
United States of America that, in either case, are not callable or redeemable at
the option of the issuer thereof at any time prior to the stated maturity of the
Securities, and shall also include a depositary receipt issued by a bank or
trust company as custodian with respect to any such Governmental Obligation or a
specific payment of principal of or interest on any such Governmental Obligation
held by such custodian for the account of the holder of such depositary receipt;
provided, however, that (except as required by law) such custodian is not
authorized to make any deduction from the amount payable to the holder of such
depositary receipt from any amount received by the custodian in respect of the
Governmental Obligation or the specific payment of principal of or interest on
the Governmental Obligation evidenced by such depositary receipt.

2

     “Herein”, “Hereof” and
“Hereunder”, and other words of similar import, refer to this Indenture
as a whole and not to any particular Article, Section or other
subdivision.

     “Indenture” means this
instrument as originally executed or as it may from time to time be supplemented
or amended by one or more indentures supplemental hereto entered into in
accordance with the terms hereof.

     “Interest Payment
Date”, when used with respect to any installment of interest on a
Security of a particular series, means the date specified in such Security or in
a Board Resolution or in an indenture supplemental hereto with respect to such
series as the fixed date on which an installment of interest with respect to
Securities of that series is due and payable.

     “Officer” means, with
respect to the Company, the chairman of the Board of Directors, a chief
executive officer, a president, a chief financial officer, a chief operating
officer, any executive vice president, any senior vice president, any vice
president, the treasurer or any assistant treasurer, the controller or any
assistant controller or the secretary or any assistant secretary.

     “Officers’
Certificate” means a certificate signed by any two Officers. Each such
certificate shall include the statements provided for in Section 13.07, if and
to the extent required by the provisions thereof.

     “Opinion Of Counsel”
means an opinion in writing subject to customary exceptions of legal counsel,
who may be an employee of or counsel for the Company, that is delivered to the
Trustee in accordance with the terms hereof. Each such opinion shall include the
statements provided for in Section 13.07, if and to the extent required by the
provisions thereof.

     “Outstanding”, when
used with reference to Securities of any series, means, subject to the
provisions of Section 8.04, as of any particular time, all Securities of that
series theretofore authenticated and delivered by the Trustee under this
Indenture, except (a) Securities theretofore canceled by the Trustee or any
paying agent, or delivered to the Trustee or any paying agent for cancellation
or that have previously been canceled; (b) Securities or portions thereof for
the payment or redemption of which moneys or Governmental Obligations 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, however, that if such Securities or portions of such
Securities are to be redeemed prior to the maturity thereof, notice of such
redemption shall have been given as provided in Article Three, or provision
satisfactory to the Trustee shall have been made for giving such notice; and (c)
Securities in lieu of or in substitution for which other Securities shall have
been authenticated and delivered pursuant to the terms of Section
2.07.

3

     “Person” means any individual,
corporation, partnership, joint venture, joint-stock company, limited liability
company, association, trust, unincorporated organization, any other entity or
organization, including a government or political subdivision or an agency or
instrumentality thereof. 

     “Predecessor Security” of any
particular Security means every previous Security evidencing all or a portion of
the same debt as that evidenced by such particular Security; and, for the
purposes of this definition, any Security authenticated and delivered under
Section 2.07 in lieu of a lost, destroyed or stolen Security shall be deemed to
evidence the same debt as the lost, destroyed or stolen Security. 

     “Responsible Officer” when used
with respect to the Trustee means the chairman of its board of directors, the
chief executive officer, the president, any vice president, the secretary, the
treasurer, any trust officer, any corporate 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
or her knowledge of and familiarity with the particular subject. 

     “Securities” means the debt Securities authenticated and delivered under
this Indenture. 

     “Securityholder”, “holder of
Securities”, “registered holder”, or other similar term, means the Person or
Persons in whose name or names a particular Security shall be registered on the
books of the Company kept for that purpose in accordance with the terms of this
Indenture. 

     “Security Register” and
“Security Registrar” shall have the meanings as set forth in Section 2.05.

     “Subsidiary” means, with respect
to any Person, (i) any corporation at least a majority of whose outstanding
Voting Stock shall at the time be owned, directly or indirectly, by such Person
or by one or more of its Subsidiaries or by such Person and one or more of its
Subsidiaries, (ii) any general partnership, joint venture or similar entity, at
least a majority of whose outstanding partnership or similar interests shall at
the time be owned by such Person, or by one or more of its Subsidiaries, or by
such Person and one or more of its Subsidiaries and (iii) any limited
partnership of which such Person or any of its Subsidiaries is a general
partner. 

     “Trustee” means
______________________________, and, subject to the provisions of Article Seven,
shall also include its successors and assigns, and, if at any time there is more
than one Person acting in such capacity hereunder, “Trustee” shall mean each
such Person. The term “Trustee” as used with respect to a particular series of
the Securities shall mean the trustee with respect to that series. 

     “Trust Indenture
Act” means the Trust Indenture Act of
1939, as amended. 

     “Voting Stock”, as applied to
stock of any Person, means shares, interests, participations or other
equivalents in the equity interest (however designated) in such Person having
ordinary voting power for the election of a majority of the directors (or the
equivalent) of such Person, other than shares, interests, participations or
other equivalents having such power only by reason of the occurrence of a
contingency. 

4 

ARTICLE 2 

ISSUE, DESCRIPTION, TERMS, EXECUTION,
REGISTRATION AND EXCHANGE 
OF SECURITIES

     2.01 Designation And Terms Of
Securities. 

          (a) The aggregate principal amount of Securities that may be
authenticated and delivered under this Indenture is unlimited. The Securities
may be issued in one or more series up to the aggregate principal amount of
Securities of that series from time to time authorized by or pursuant to a Board
Resolution or pursuant to one or more indentures supplemental hereto. Prior to
the initial issuance of Securities of any series, there shall be established in
or pursuant to a Board Resolution, and set forth in an Officers’ Certificate, or
established in one or more indentures supplemental hereto: 

                    (1) the title of the Securities of the series (which shall
distinguish the Securities of that series from all other Securities);

                    (2) any limit upon the aggregate principal amount of the
Securities of that series that may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Securities of that
series); 

                    (3) the date or dates on which the principal of the Securities of
the series is payable, any original issue discount that may apply to the
Securities of that series upon their issuance, the principal amount due at
maturity, and the place(s) of payment; 

                    (4) the rate or rates at which the Securities of the series shall
bear interest or the manner of calculation of such rate or rates, if any;

                    (5) the date or dates from which such interest shall accrue, the
Interest Payment Dates on which such interest will be payable or the manner of
determination of such Interest Payment Dates, the place(s) of payment, and the
record date for the determination of holders to whom interest is payable on any
such Interest Payment Dates or the manner of determination of such record dates;

                    (6) the right, if any, to extend the interest payment periods and
the duration of such extension; 

                    (7) the period or periods within which, the price or prices at
which and the terms and conditions upon which Securities of the series may be
redeemed, in whole or in part, at the option of the Company; 

                    (8) the obligation, if any, of the Company to redeem or purchase
Securities of the series pursuant to any sinking fund, mandatory redemption, or
analogous provisions (including payments made in cash in satisfaction of future
sinking fund obligations) or at the option of a holder thereof and the period or
periods within which, the price or prices at which, and the terms and conditions
upon which, Securities of the series shall be redeemed or purchased, in whole or
in part, pursuant to such obligation;

5 

                    (9) the form of the Securities of the series including
the form of the Certificate of Authentication for such series;

                    (10) if other than denominations of one thousand U.S.
dollars ($1,000) or any integral multiple thereof, the denominations in which
the Securities of the series shall be issuable;

                    (11) any and all other terms (including terms, to the
extent applicable, relating to any auction or remarketing of the Securities of
that series and any security for the obligations of the Company with respect to
such Securities) with respect to such series (which terms shall not be
inconsistent with the terms of this Indenture, as amended by any supplemental
indenture) including any terms which may be required by or advisable under
United States laws or regulations or advisable in connection with the marketing
of Securities of that series;

                    (12) whether the Securities are issuable as a Global
Security and, in such case, the terms and the identity of the Depositary for
such series;

                    (13) whether the Securities will be convertible into or
exchangeable for shares of common stock or other securities of the Company or
any other Person and, if so, the terms and conditions upon which such Securities
will be so convertible or exchangeable, including the conversion or exchange
price, as applicable, or how it will be calculated and may be adjusted, any
mandatory or optional (at the Company’s option or the holders’ option)
conversion or exchange features, and the applicable conversion or exchange
period;

                    (14) if other than the principal amount thereof, the
portion of the principal amount of Securities of the series which shall be
payable upon declaration of acceleration of the maturity thereof pursuant to
Section 6.01;

                    (15) any additional or different Events of Default or
restrictive covenants (which may include, among other restrictions, restrictions
on the Company’s ability or the ability of the Company’s Subsidiaries to: incur
additional indebtedness; issue additional securities; create liens; pay
dividends or make distributions in respect of their capital stock; redeem
capital stock; pay dividends, make distributions or transfer assets; make
investments or other restricted payments; sell or otherwise dispose of assets;
enter into sale-leaseback transactions; engage in transactions with stockholders
and affiliates; issue or sell stock of their Subsidiaries; or effect a
consolidation or merger) or financial covenants (which may include, among other
financial covenants, financial covenants that require the Company and its
Subsidiaries to maintain specified interest coverage, fixed charge, cash
flow-based or asset-based ratios) provided for with respect to the Securities of
the series;

                    (16) if other than dollars, the coin or currency in which
the Securities of the series are denominated (including, but not limited to,
foreign currency);

6

                    (17) the terms and conditions, if any, upon which the Company shall
pay amounts in addition to the stated interest, premium, if any and principal
amounts of the Securities of the series to any Securityholder that is not a
“United States person” for federal tax purposes; and 

                    (18) any restrictions on transfer, sale or assignment of the
Securities of the series. 

     All
Securities of any one series shall be substantially identical except as to
denomination and except as may otherwise be provided in or pursuant to any such
Board Resolution or in any indentures supplemental hereto. 

     If any of
the terms of the series are established by action taken pursuant to a Board
Resolution of the Company, a copy of an appropriate record of such action shall
be certified by the secretary or an assistant secretary of the Company and
delivered to the Trustee at or prior to the delivery of the Officers’
Certificate of the Company setting forth the terms of the series. 

     Securities of any particular series may be issued at various times, with
different dates on which the principal or any installment of principal is
payable, with different rates of interest, if any, or different methods by which
rates of interest may be determined, with different dates on which such interest
may be payable and with different redemption dates. 

     2.02 Form Of Securities And Trustee’s Certificate. The Securities of any series and the Trustee’s certificate of
authentication to be borne by such Securities shall be substantially of the
tenor and purport as set forth in one or more indentures supplemental hereto or
as provided in a Board Resolution, and set forth in an Officers’ Certificate,
and they may have such letters, numbers or other marks of identification or
designation and such legends or endorsements printed, lithographed or engraved
thereon as the Company may deem appropriate and as are not inconsistent with the
provisions of this Indenture, or as may be required to comply with any law or
with any rule or regulation made pursuant thereto or with any rule or regulation
of any securities exchange on which Securities of that series may be listed, or
to conform to usage. 

     2.03 Denominations: Provisions For Payment.
The Securities shall be issuable as registered Securities and in the
denominations of one thousand U.S. dollars ($1,000) or any integral multiple
thereof, subject to Section 2.01(a)(10). The Securities of a particular series
shall bear interest payable on the dates and at the rate specified with respect
to that series. Subject to Section 2.01 (a)(16), the principal of and the
interest on the Securities of any series, as well as any premium thereon in case
of redemption thereof prior to maturity, shall be payable in the coin or
currency of the United States of America that at the time is legal tender for
public and private debt, at the office or agency of the Company maintained for
that purpose in the Borough of Manhattan, the City and State of New York. Each
Security shall be dated the date of its authentication. Interest on the
Securities shall be computed on the basis of a 360-day year composed of twelve
30-day months. 

     The
interest installment on any Security that is payable, and is punctually paid or
duly provided for, on any Interest Payment Date for Securities of that series
shall be paid to the Person in whose name said Security (or one or more
Predecessor Securities) is registered at the close of business on the
regular record date for such interest installment. In the event that any
Security of a particular series or portion thereof is called for redemption and
the redemption date is subsequent to a regular record date with respect to any
Interest Payment Date and prior to such Interest Payment Date, interest on such
Security will be paid upon presentation and surrender of such Security as
provided in Section 3.03.

7 

     Any interest on any Security that is
payable, but is not punctually paid or duly provided for, on any Interest
Payment Date for Securities of the same series (herein called “Defaulted
Interest”) shall forthwith cease to be payable to the registered holder on the
relevant regular record date by virtue of having been such holder; and such
Defaulted Interest shall be paid by the Company, at its election, as provided in
clause (1) or clause (2) below:

                    (1) The Company may make payment of any Defaulted
Interest on Securities to the Persons in whose names such Securities (or their
respective Predecessor Securities) are registered at the close of business on a
special record date for the payment of such Defaulted Interest, which shall be
fixed in the following manner: the Company shall notify the Trustee in writing
of the amount of Defaulted Interest proposed to be paid on each such Security
and the date of the proposed payment, and at the same time the Company shall
deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest as in this clause
provided. Thereupon the Trustee shall fix a special record date for the payment
of such Defaulted Interest which shall not be more than 15 nor less than 10 days
prior to the date of the proposed payment and not less than 10 days after the
receipt by the Trustee of the notice of the proposed payment. The Trustee shall
promptly notify the Company of such special record date and, in the name and at
the expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the special record date therefor to be mailed, first
class postage prepaid, to each Securityholder at the Securitholder’s address as
it appears in the Security Register (as hereinafter defined), not less than 10
days prior to such special record date. Notice of the proposed payment of such
Defaulted Interest and the special record date therefor having been mailed as
aforesaid, such Defaulted Interest shall be paid to the Persons in whose names
such Securities (or their respective Predecessor Securities) are registered on
such special record date.

                    (2) The Company may make payment of any Defaulted
Interest on any Securities in any other lawful manner not inconsistent with the
requirements of any securities exchange on which such Securities may be listed,
and upon such notice as may be required by such exchange, if, after notice given
by the Company to the Trustee of the proposed payment pursuant to this clause,
such manner of payment shall be deemed practicable by the Trustee.

     Unless otherwise set forth in a
Board Resolution or one or more indentures supplemental hereto establishing the
terms of any series of Securities pursuant to Section 2.01 hereof, the term
“regular record date” as used in this Section with respect to a series of
Securities and any Interest Payment Date for such series shall mean either the
fifteenth day of the month immediately preceding the month in which an Interest
Payment Date established for such series pursuant to Section 2.01 hereof shall
occur, if such Interest Payment Date is the first day of a month, or the first
day of the month in which an Interest Payment Date established for such series
pursuant to Section 2.01 hereof shall occur, if such Interest Payment Date is
the fifteenth day of a month, whether or not such date is a Business Day.

8

     Subject
to the foregoing provisions of this Section, each Security of a series delivered
under this Indenture upon transfer of or in exchange for or in lieu of any other
Security of such series shall carry the rights to interest accrued and unpaid,
and to accrue, that were carried by such other Security. 

     2.04 Execution And Authentications. The
Securities shall be signed on behalf of the Company by one of its Officers.
Signatures may be in the form of a manual or facsimile signature. 

     The
Company may use the facsimile signature of any Person who shall have been an
Officer, notwithstanding the fact that at the time the Securities shall be
authenticated and delivered or disposed of such Person shall have ceased to be
such an officer of the Company. The Securities may contain such notations,
legends or endorsements required by law, stock exchange rule or usage. Each
Security shall be dated the date of its authentication by the Trustee.

     A
Security shall not be valid until authenticated manually by an authorized
signatory of the Trustee, or by an Authenticating Agent. Such signature shall be
conclusive evidence that the Security so authenticated has been duly
authenticated and delivered hereunder and that the holder is entitled to the
benefits of this Indenture. At any time and from time to time after the
execution and delivery of this Indenture, the Company may deliver Securities of
any series executed by the Company to the Trustee for authentication, together
with a written order of the Company for the authentication and delivery of such
Securities, signed by an Officer, and the Trustee in accordance with such
written order shall authenticate and deliver such Securities. 

     In
authenticating such Securities and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to Section 7.01) shall be fully protected in
relying upon, an Opinion of Counsel stating that the form and terms thereof have
been established in conformity with the provisions of this Indenture.

     The
Trustee shall not be required to authenticate such Securities if the issue of
such Securities pursuant to this Indenture will affect the Trustee’s own rights,
duties or immunities under the Securities and this Indenture or otherwise in a
manner that is not reasonably acceptable to the Trustee. 

     2.05 Registration Of Transfer And
Exchange. 

          (a) Securities of
any series may be exchanged upon presentation thereof at the office or agency of
the Company designated for such purpose in the Borough of Manhattan, the City
and State of New York, for other Securities of such series of authorized
denominations, and for a like aggregate principal amount, upon payment of a sum
sufficient to cover any tax or other governmental charge in relation thereto,
all as provided in this Section. In respect of any Securities so surrendered for
exchange, the Company shall execute, the Trustee shall authenticate and such
office or agency shall deliver in exchange therefor the Security or Securities
of the same series that the Securityholder making the exchange shall be entitled
to receive, bearing numbers not contemporaneously outstanding. 

9 

          (b) The Company shall keep, or cause to be kept, at its office or
agency designated for such purpose in the Borough of Manhattan, the City and
State of New York, or such other location designated by the Company, a register
or registers (herein referred to as the “Security Register”) in which, subject
to such reasonable regulations as it may prescribe, the Company shall register
the Securities and the transfers of Securities as in this Article provided and
which at all reasonable times shall be open for inspection by the Trustee. The
registrar for the purpose of registering Securities and transfer of Securities
as herein provided shall be appointed as authorized by Board Resolution (the
“Security Registrar”). 

     Upon
surrender for transfer of any Security at the office or agency of the Company
designated for such purpose, the Company shall execute, the Trustee shall
authenticate and such office or agency shall deliver in the name of the
transferee or transferees a new Security or Securities of the same series as the
Security presented for a like aggregate principal amount. 

     All
Securities presented or surrendered for exchange or registration of transfer, as
provided in this Section, shall be accompanied (if so required by the Company or
the Security Registrar) by a written instrument or instruments of transfer, in
form satisfactory to the Company or the Security Registrar, duly executed by the
registered holder or by such holder’s duly authorized attorney in writing.

          (c) Except as provided pursuant to Section 2.01 pursuant to a
Board Resolution, and set forth in an Officers’ Certificate, or established in
one or more indentures supplemental to this Indenture, no service charge shall
be made for any exchange or registration of transfer of Securities, or issue of
new Securities in case of partial redemption of any series, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge in relation thereto, other than exchanges pursuant to Section 2.06,
Section 3.03(b) and Section 9.04 not involving any transfer. 

          (d) The Company shall not be required (i) to issue, exchange or
register the transfer of any Securities during a period beginning at the opening
of business 15 days before the day of the mailing of a notice of redemption of
less than all the Outstanding Securities of the same series and ending at the
close of business on the day of such mailing, nor (ii) to register the transfer
of or exchange any Securities of any series or portions thereof called for
redemption, other than the unredeemed portion of any such Securities being
redeemed in part. The provisions of this Section 2.05 are, with respect to any
Global Security, subject to Section 2.11 hereof. 

     2.06 Temporary Securities. Pending the
preparation of definitive Securities of any series, the Company may execute, and
the Trustee shall authenticate and deliver, temporary Securities (printed,
lithographed or typewritten) of any authorized denomination. Such temporary
Securities shall be substantially in the form of the definitive Securities in
lieu of which they are issued, but with such omissions, insertions and
variations as may be appropriate for temporary Securities, all as may be
determined by the Company. 

10 

Every temporary Security of any series
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 Securities of such series. Without unnecessary delay the Company
will execute and will furnish definitive Securities of such series and thereupon
any or all temporary Securities of such series may be surrendered in exchange
therefor (without charge to the holders), at the office or agency of the Company
designated for the purpose in the Borough of Manhattan, the City and State of
New York, and the Trustee shall authenticate and such office or agency shall
deliver in exchange for such temporary Securities an equal aggregate principal
amount of definitive Securities of such series, unless the Company advises the
Trustee to the effect that definitive Securities need not be executed and
furnished until further notice from the Company. Until so exchanged, the
temporary Securities of such series shall be entitled to the same benefits under
this Indenture as definitive Securities of such series authenticated and
delivered hereunder. 

     2.07 Mutilated, Destroyed, Lost Or Stolen Securities. In case any temporary or definitive Security shall become
mutilated or be destroyed, lost or stolen, the Company (subject to the next
succeeding sentence) shall execute, and upon the Company’s request the Trustee
(subject as aforesaid) shall authenticate and deliver, a new Security of the
same series, bearing a number not contemporaneously outstanding, in exchange and
substitution for the mutilated Security, or in lieu of and in substitution for
the Security so destroyed, lost or stolen. In every case the applicant for a
substituted 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 the Trustee evidence to their satisfaction of the destruction,
loss or theft of the applicant’s Security and of the ownership thereof. The
Trustee may authenticate any such substituted Security and deliver the same upon
the written request or authorization of any officer of the Company. Upon the
issuance of any substituted 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 (including the fees and expenses of
the Trustee) connected therewith. 

     In case
any Security that has matured or is about to mature shall become mutilated or be
destroyed, lost or stolen, the Company may, instead of issuing a substitute
Security, pay or authorize the payment of the same (without surrender thereof
except in the case of a mutilated Security) if the applicant for such payment
shall furnish to the Company and the Trustee such security or indemnity as they
may require to save 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 Security and of the ownership thereof. 

     Every
replacement Security issued pursuant to the provisions of this Section shall
constitute an additional contractual obligation of the Company whether or not
the mutilated, destroyed, lost or stolen Security shall be found at any time, or
be enforceable by anyone, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Securities of the
same series duly issued hereunder. All 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
Securities, and shall preclude (to the extent lawful) 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. 

11 

     2.08
Cancellation. All Securities surrendered for the purpose of payment, redemption,
exchange or registration of transfer 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 cancelled by it, and no Securities shall be issued in
lieu thereof except as expressly required or permitted by any of the provisions
of this Indenture. On request of the Company at the time of such surrender, the
Trustee shall deliver to the Company canceled Securities held by the Trustee. In
the absence of such request the Trustee may dispose of canceled Securities in
accordance with its standard procedures and deliver a certificate of disposition
to the Company. If the Company shall otherwise acquire any of the Securities,
however, such acquisition shall not operate as a redemption or satisfaction of
the indebtedness represented by such Securities unless and until the same are
delivered to the Trustee for cancellation.

     2.09 Benefits Of
Indenture. Nothing in this Indenture or in the Securities, express or implied, shall
give or be construed to give to any Person, other than the parties hereto and
the holders of the Securities 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 such covenants, conditions and provisions being
for the sole benefit of the parties hereto and of the holders of the
Securities.

     2.10 Authenticating
Agent. So long as any of the Securities of any series remain Outstanding there
may be an Authenticating Agent for any or all such series of Securities which
the Trustee shall have the right to appoint. Said Authenticating Agent shall be
authorized to act on behalf of the Trustee to authenticate Securities of such
series issued upon exchange, transfer or partial redemption thereof, and
Securities so authenticated shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder. All references in this Indenture to the authentication of
Securities by the Trustee shall be deemed to include authentication by an
Authenticating Agent for such series. Each Authenticating Agent shall be
acceptable to the Company and shall be a corporation that has a combined capital
and surplus, as most recently reported or determined by it, sufficient under the
laws of any jurisdiction under which it is organized or in which it is doing
business to conduct a trust business, and that is otherwise authorized under
such laws to conduct such business and is subject to supervision or examination
by federal or state authorities. If at any time any Authenticating Agent shall
cease to be eligible in accordance with these provisions, it shall resign
immediately.

     Any
Authenticating Agent may at any time resign by giving written notice of
resignation to the Trustee and to the Company. The Trustee may at any time (and
upon request by the Company shall) terminate the agency of any Authenticating
Agent by giving written notice of termination to such Authenticating Agent and
to the Company. Upon resignation, termination or cessation of eligibility of any
Authenticating Agent, the Trustee may appoint an eligible successor
Authenticating Agent acceptable to the Company. Any successor Authenticating
Agent, upon acceptance of its appointment hereunder, shall become vested with
all the rights, powers and duties of its predecessor hereunder as if originally
named as an Authenticating Agent pursuant hereto.

12

     2.11
Global Securities.

          (a) If the Company shall establish pursuant to Section
2.01 that the Securities of a particular series are to be issued as a Global
Security, then the Company shall execute and the Trustee shall, in accordance
with Section 2.04, authenticate and deliver, a Global Security that (i) shall
represent, and shall be denominated in an amount equal to the aggregate
principal amount of, all of the Outstanding Securities of such series, (ii)
shall be registered in the name of the Depositary or its nominee, (iii) shall be
delivered by the Trustee to the Depositary or pursuant to the Depositary’s
instruction and (iv) shall bear a legend substantially to the following effect:
“Except as otherwise provided in Section 2.11 of the Indenture, this Security
may be transferred, in whole but not in part, only to another nominee of the
Depositary or to a successor Depositary or to a nominee of such successor
Depositary.”

          (b) Notwithstanding the provisions of Section 2.05, the
Global Security of a series may be transferred, in whole but not in part and in
the manner provided in Section 2.05, only to another nominee of the Depositary
for such series, or to a successor Depositary for such series selected or
approved by the Company or to a nominee of such successor
Depositary.

          (c) If at any time the Depositary for a series of the
Securities notifies the Company that it is unwilling or unable to continue as
Depositary for such series or if at any time the Depositary for such series
shall no longer be registered or in good standing under the Exchange Act, or
other applicable statute or regulation, and a successor Depositary for such
series is not appointed by the Company within 90 days after the Company receives
such notice or becomes aware of such condition, as the case may be, or if an
Event of Default has occurred and is continuing and the Company has received a
request from the Depositary, this Section 2.11 shall no longer be applicable to
the Securities of such series and the Company will execute, and subject to
Section 2.04, the Trustee will authenticate and deliver the Securities of such
series in definitive registered form without coupons, in authorized
denominations, and in an aggregate principal amount equal to the principal
amount of the Global Security of such series in exchange for such Global
Security. In addition, the Company may at any time determine that the Securities
of any series shall no longer be represented by a Global Security and that the
provisions of this Section 2.11 shall no longer apply to the Securities of such
series. In such event the Company will execute and, subject to Section 2.04, the
Trustee, upon receipt of an Officers’ Certificate evidencing such determination
by the Company, will authenticate and deliver the Securities of such series in
definitive registered form without coupons, in authorized denominations, and in
an aggregate principal amount equal to the principal amount of the Global
Security of such series in exchange for such Global Security. Upon the exchange
of the Global Security for such Securities in definitive registered form without
coupons, in authorized denominations, the Global Security shall be canceled by
the Trustee. Such Securities in definitive registered form issued in exchange
for the Global Security pursuant to this Section 2.11(c) shall be registered in
such names and in such authorized denominations as the Depositary, pursuant to
instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee. The Trustee shall deliver such Securities to the
Depositary for delivery to the Persons in whose names such Securities are so
registered.

13

ARTICLE
3

REDEMPTION OF
SECURITIES AND SINKING FUND PROVISIONS

     3.01 Redemption. The Company may redeem the
Securities of any series issued hereunder on and after the dates and in
accordance with the terms established for such series pursuant to Section 2.01
hereof.

     3.02
Notice Of Redemption.

          (a) In case the Company shall desire to exercise such
right to redeem all or, as the case may be, a portion of the Securities of any
series in accordance with any right the Company reserved for itself to do so
pursuant to Section 2.01 hereof, the Company shall, or shall cause the Trustee
to, give notice of such redemption to holders of the Securities of such series
to be redeemed by mailing, first class postage prepaid, a notice of such
redemption not less than 30 days and not more than 90 days before the date fixed
for redemption of that series to such holders at their last addresses as they
shall appear upon the Security Register, unless a shorter period is specified in
the Securities to be redeemed. Any notice that is mailed in the manner herein
provided shall be conclusively presumed to have been duly given, whether or not
the registered holder receives the notice. In any case, failure duly to give
such notice to the holder of any Security of any series designated for
redemption in whole or in part, or any defect in the notice, shall not affect
the validity of the proceedings for the redemption of any other Securities of
such series or any other series. In the case of any redemption of Securities
prior to the expiration of any restriction on such redemption provided in the
terms of such Securities or elsewhere in this Indenture, the Company shall
furnish the Trustee with an Officers’ Certificate evidencing compliance with any
such restriction.

     Each such notice of redemption shall
specify the date fixed for redemption and the redemption price at which
Securities of that series are to be redeemed, and shall state that payment of
the redemption price of such Securities to be redeemed will be made at the
office or agency of the Company in the Borough of Manhattan, the City and State
of New York, upon presentation and surrender of such Securities, that interest
accrued to the date fixed for redemption will be paid as specified in said
notice, that from and after said date interest will cease to accrue and that the
redemption is for a sinking fund, if such is the case. If less than all the
Securities of a series are to be redeemed, the notice to the holders of
Securities of that series to be redeemed in part shall specify the particular
Securities to be so redeemed.

     In case any Security is to be
redeemed in part only, the notice that relates to such 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 Security, a new Security
or Securities of such series in principal amount equal to the unredeemed portion
thereof will be issued.

14

          (b) If less than all the Securities of a series are to
be redeemed, the Company shall give the Trustee at least 45 days’ notice (unless
a shorter notice shall be satisfactory to the Trustee) in advance of the date
fixed for redemption as to the aggregate principal amount of Securities of the
series to be redeemed, and thereupon the Trustee shall select, by lot or in such
other manner as it shall deem appropriate and fair in its discretion and that
may provide for the selection of a portion or portions (equal to one thousand
U.S. dollars ($1,000) or any integral multiple thereof) of the principal amount
of such Securities of a denomination larger than $1,000, the Securities to be
redeemed and shall thereafter promptly notify the Company in writing of the
numbers of the Securities to be redeemed, in whole or in part. The Company may,
if and whenever it shall so elect, by delivery of instructions signed on its
behalf by an Officer, instruct the Trustee or any paying agent to call all or
any part of the Securities of a particular series for redemption and to give
notice of redemption in the manner set forth in this Section, such notice to be
in the name of the Company or its own name as the Trustee or such paying agent
may deem advisable. In any case in which notice of redemption is to be given by
the Trustee or any such paying agent, the Company shall deliver or cause to be
delivered to, or permit to remain with, the Trustee or such paying agent, as the
case may be, such Security Register, transfer books or other records, or
suitable copies or extracts therefrom, sufficient to enable the Trustee or such
paying agent to give any notice by mail that may be required under the
provisions of this Section.

     3.03
Payment Upon Redemption.

          (a) If the giving of notice of redemption shall have
been completed as above provided, the Securities or portions of Securities of
the series to be redeemed 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 interest accrued to the date fixed for redemption and
interest on such Securities or portions of Securities shall cease to accrue on
and after the date fixed for redemption, unless the Company shall default in the
payment of such redemption price and accrued interest with respect to any such
Security or portion thereof. On presentation and surrender of such Securities on
or after the date fixed for redemption at the place of payment specified in the
notice, said Securities shall be paid and redeemed at the applicable redemption
price for such series, together with interest accrued thereon to the date fixed
for redemption (but if the date fixed for redemption is an interest payment
date, the interest installment payable on such date shall be payable to the
registered holder at the close of business on the applicable record date
pursuant to Section 2.03).

          (b) Upon presentation of any Security of such series
that is to be redeemed in part only, the Company shall execute and the Trustee
shall authenticate and the office or agency where the Security is presented
shall deliver to the holder thereof, at the expense of the Company, a new
Security of the same series of authorized denominations in principal amount
equal to the unredeemed portion of the Security so presented.

     3.04 Sinking Fund. The provisions of Sections
3.04, 3.05 and 3.06 shall be applicable to any sinking fund for the retirement
of Securities of a series, except as otherwise specified as contemplated by
Section 2.01 for Securities of such series.

     The
minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a “mandatory sinking fund
payment,” and any payment in excess of such minimum amount provided for by the
terms of Securities of any series is herein referred to as an “optional sinking
fund payment”. If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided
in Section 3.05. Each sinking fund payment shall be applied to the redemption of
Securities of any series as provided for by the terms of Securities of such
series.

15

     3.05 Satisfaction Of Sinking Fund Payments With
Securities. The Company (i) may deliver Outstanding Securities of a series
and (ii) may apply as a credit Securities of a series that have been redeemed
either at the election of the Company pursuant to the terms of such Securities
or through the application of permitted optional sinking fund payments pursuant
to the terms of such Securities, in each case in satisfaction of all or any part
of any sinking fund payment with respect to the Securities of such series
required to be made pursuant to the terms of such Securities as provided for by
the terms of such series, provided that such Securities have not been previously
so credited.

     Such Securities shall be received
and credited for such purpose by the Trustee at the redemption price specified
in such Securities for redemption through operation of the sinking fund and the
amount of such sinking fund payment shall be reduced accordingly.

     3.06 Redemption Of Securities For Sinking Fund.
Not less than 45 days prior to each sinking fund payment date for any series of
Securities (unless a shorter period shall be satisfactory to the Trustee), the
Company will deliver to the Trustee an Officers’ Certificate specifying the
amount of the next ensuing sinking fund payment for that series pursuant to the
terms of the series, the portion thereof, if any, that is to be satisfied by
delivering and crediting Securities of that series pursuant to Section 3.05 and
the basis for such credit and will, together with such Officers’ Certificate,
deliver to the Trustee any Securities to be so delivered. Not less than 30 days
before each such sinking fund payment date the Trustee shall select the
Securities to be redeemed upon such sinking fund payment date in the manner
specified in Section 3.02 and cause notice of the redemption thereof to be given
in the name of and at the expense of the Company in the manner provided in
Section 3.02. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in Section
3.03.

ARTICLE
4

COVENANTS

     4.01 Payment Of Principal, Premium And Interest.
The Company will duly and punctually pay or cause to be paid the principal of
(and premium, if any) and interest on the Securities of that series at the time
and place and in the manner provided herein and established with respect to such
Securities. Payments of principal on the Securities may be made at the time
provided herein and established with respect to such Securities by U.S. dollar
check drawn on and mailed to the address of the Securityholder entitled thereto
as such address shall appear in the Security Register, or U.S. dollar wire
transfer to, a U.S. dollar account (such wire transfer to be made only to a
Securityholder of an aggregate principal amount of Securities of the applicable
series in excess of U.S. $2,000,000 and only if such Securityholder shall have
furnished wire instructions to the Trustee no later than 15 days prior to the
relevant payment date). Payments of interest on the Securities may be made at
the time provided herein and established with respect to such Securities by U.S.
dollar check mailed to the address of the Securityholder entitled thereto as
such address shall appear in the Security Register, or U.S. dollar wire transfer
to, a U.S. dollar account (such a wire transfer to be made only to a
Securityholder of an aggregate principal amount of Securities of the applicable
series in excess of U.S. $2,000,000 and only if such Securityholder shall have
furnished wire instructions in writing to the Security Registrar and the Trustee
no later than 15 days prior to the relevant payment date.

16

     4.02 Maintenance Of Office Or Agency. So long as
any series of the Securities remain Outstanding, the Company agrees to maintain
an office or agency in the Borough of Manhattan, the City and State of New York,
with respect to each such series and at such other location or locations as may
be designated as provided in this Section 4.02, where (i) Securities of that
series may be presented for payment, (ii) Securities of that series may be
presented as herein above authorized for registration of transfer and exchange,
and (iii) notices and demands to or upon the Company in respect of the
Securities of that series and this Indenture may be given or served, such
designation to continue with respect to such office or agency until the Company
shall, by written notice signed by any officer authorized to sign an Officers’
Certificate and delivered to the Trustee, designate some other office or agency
for such purposes or any of them. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee
with the address thereof, such presentations, notices and demands may be made or
served at the Corporate Trust Office of the Trustee, and the Company hereby
appoints the Trustee as its agent to receive all such presentations, notices and
demands. The Company initially appoints the Corporate Trust Office of the
Trustee located in the Borough of Manhattan, the City of New York as its paying
agent with respect to the Securities.

     4.03
Paying Agents.

          (a) If the Company shall appoint one or more paying
agents for all or any series of the Securities, other than the Trustee, the
Company will cause each 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:

                    (1) that it will hold all sums held by it as such agent
for the payment of the principal of (and premium, if any) or interest on the
Securities of that series (whether such sums have been paid to it by the Company
or by any other obligor of such Securities) in trust for the benefit of the
Persons entitled thereto;

                    (2) that it will give the Trustee notice of any failure
by the Company (or by any other obligor of such Securities) to make any payment
of the principal of (and premium, if any) or interest on the Securities of that
series when the same shall be due and payable;

                    (3) that it will, at any time during the continuance of
any failure referred to in the preceding paragraph (a)(2) above, upon the
written request of the Trustee, forthwith pay to the Trustee all sums so held in
trust by such paying agent; and

                    (4) that it will perform all other duties of paying
agent as set forth in this Indenture.

          (b) If the Company shall act as its own paying agent
with respect to any series of the Securities, it will on or before each due date
of the principal of (and premium, if any) or interest on Securities of that
series, set aside, segregate and hold in trust for the benefit of the Persons
entitled thereto a sum sufficient to pay such principal (and premium, if any) or
interest so becoming due on Securities of that series until such sums shall be
paid to such Persons or otherwise disposed of as herein provided and will
promptly notify the Trustee of such action, or any failure (by it or any other
obligor on such Securities) to take such action. 

17

Whenever the Company
shall have one or more paying agents for any series of Securities, it will,
prior to each due date of the principal of (and premium, if any) or interest on
any Securities of that series, deposit with the paying agent a sum sufficient to
pay the principal (and premium, if any) or interest so becoming due, such sum to
be held in trust for the benefit of the Persons entitled to such principal,
premium or interest, and (unless such paying agent is the Trustee) the Company
will promptly notify the Trustee of this action or failure so to
act.

          (c) Notwithstanding anything in this Section to the
contrary, (i) the agreement to hold sums in trust as provided in this Section is
subject to the provisions of Section 11.05, and (ii) the Company may at any
time, for the purpose of obtaining the satisfaction and discharge of this
Indenture or for any other purpose, pay, or direct any paying agent to pay, to
the Trustee all sums held in trust by the Company or such paying agent, such
sums to be held by the Trustee upon the same terms and conditions as those upon
which such sums were held by the Company or such paying agent; and, upon such
payment by the Company or any paying agent to the Trustee, the Company or such
paying agent shall be released from all further liability with respect to such
money.

     4.04 Appointment To Fill Vacancy In Office Of
Trustee. The Company, whenever necessary to avoid or fill a vacancy in the
office of Trustee, will appoint, in the manner provided in Section 7.10, a
Trustee, so that there shall at all times be a Trustee hereunder.

     4.05 Compliance With Consolidation Provisions. The
Company will not, while any of the Securities remain Outstanding, consolidate
with or merge into any other Person, in either case where the Company is not the
survivor of such transaction, or sell or convey all or substantially all of its
property to any other Person unless the provisions of Article Ten hereof are
complied with.

ARTICLE
5

SECURITYHOLDERS’
LISTS AND REPORTS BY THE COMPANY AND THE 
TRUSTEE

     5.01
Company To Furnish Trustee Names And Addresses Of Securityholders.
The Company will
furnish or cause to be furnished to the Trustee (a) within 15 days after each
regular record date (as defined in Section 2.03) a list, in such form as the
Trustee may reasonably require, of the names and addresses of the holders of
each series of Securities as of such regular record date, provided that the
Company shall not be obligated to furnish or cause to furnish such list at any
time that the list shall not differ in any respect from the most recent list
furnished to the Trustee by the Company and (b) at such other times as the
Trustee may request in writing within 30 days after the receipt by the Company
of any such request, a list of similar form and content as of a date not more
than 15 days prior to the time such list is furnished; provided, however, that,
in either case, no such list need be furnished for any series for which the
Trustee shall be the Security Registrar.

18

     5.02
Preservation Of Information; Communications With
Securityholders.

          (a) The Trustee shall preserve, in as current a form as
is reasonably practicable, all information as to the names and addresses of the
holders of Securities contained in the most recent list furnished to it as
provided in Section 5.01 and as to the names and addresses of holders of
Securities received by the Trustee in its capacity as Security Registrar (if
acting in such capacity).

          (b) The Trustee may destroy any list furnished to it as
provided in Section 5.01 upon receipt of a new list so furnished.

          (c) Securityholders may communicate as provided in
Section 312(b) of the Trust Indenture Act with other Securityholders with
respect to their rights under this Indenture or under the Securities, and, in
connection with any such communications, the Trustee shall satisfy its
obligations under Section 312(b) of the Trust Indenture Act in accordance with
the provisions of Section 312(b) of the Trust Indenture Act.

     5.03 Reports By The Company. The Company covenants
and agrees to provide a copy to the Trustee, after the Company files 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 the Securities and Exchange Commission may from time to time
by rules and regulations prescribe) that the Company files with the Securities
and Exchange Commission pursuant to Section 13 or Section 15(d) of the Exchange
Act; provided, however, the Company shall not be required to deliver to the
Trustee any materials for which the Company has sought and received confidential
treatment by the SEC.

     5.04
Reports By The Trustee.

          (a) If required by Section 313(a) of the Trust Indenture
Act, the Trustee, within sixty (60) days after each May 1, shall transmit by
mail, first class postage prepaid, to the Securityholders, as their names and
addresses appear upon the Security Register, a brief report dated as of such May
1, which complies with Section 313(a) of the Trust Indenture Act. The Trustee
shall comply with Section 313(b) and 313(c) of the Trust Indenture
Act.

          (b) A copy of each such report shall, at the time of
such transmission to Securityholders, be filed by the Trustee with the Company,
with each securities exchange upon which any Securities are listed (if so
listed) and also with the Securities and Exchange Commission. The Company agrees
to notify the Trustee when any Securities become listed on any securities
exchange.

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ARTICLE
6

REMEDIES OF THE
TRUSTEE AND SECURITYHOLDERS ON EVENT OF 
DEFAULT

     6.01 Events Of
Default.

          (a) Whenever used herein with respect to Securities of a
particular series, “Event of Default” means any one or more of the following
events that has occurred and is continuing:

                    (1) the Company defaults in the payment of any
installment of interest upon any of the Securities of that series, as and when
the same shall become due and payable, and such default continues for a period
of 90 days; provided, however, that a valid extension of an interest payment
period by the Company in accordance with the terms of any indenture supplemental
hereto shall not constitute a default in the payment of interest for this
purpose;

                    (2) the Company defaults in the payment of the principal
of (or premium, if any, on) any of the Securities of that series as and when the
same shall become due and payable whether at maturity, upon redemption, by
declaration or otherwise, or in any payment required by any sinking or analogous
fund established with respect to that series; provided, however, that a valid
extension of the maturity of such Securities in accordance with the terms of any
indenture supplemental hereto shall not constitute a default in the payment of
principal or premium, if any;

                    (3) the Company fails to observe or perform any other of
its covenants or agreements with respect to that series contained in this
Indenture or otherwise established with respect to that series of Securities
pursuant to Section 2.01 hereof (other than a covenant or agreement that has
been expressly included in this Indenture solely for the benefit of one or more
series of Securities other than such series) for a period of 90 days after the
date on which written notice of such failure, requiring the same to be remedied
and stating that such notice is a “Notice of Default” hereunder, shall have been
given to the Company by the Trustee, by registered or certified mail, or to the
Company and the Trustee by the holders of at least 25% in principal amount of
the Securities of that series at the time Outstanding;

                    (4) the Company pursuant to or within the meaning of any
Bankruptcy Law (i) commences a voluntary case, (ii) consents to the entry of an
order for relief against it in an involuntary case, (iii) consents to the
appointment of a Custodian of it or for all or substantially all of its property
or (iv) makes a general assignment for the benefit of its creditors;
or

                    (5) a court of competent jurisdiction enters an order
under any Bankruptcy Law that (i) is for relief against the Company in an
involuntary case, (ii) appoints a Custodian of the Company for all or
substantially all of its property or (iii) orders the liquidation of the
Company, and the order or decree remains unstayed and in effect for 90
days.

          (b) In each and every such case (other than an Event of
Default specified in clause (4) or clause (5) above), unless the principal of
all the Securities of that series shall have already become due and payable,
either the Trustee or the holders of not less than 25% in aggregate principal
amount of the Securities of that series then Outstanding hereunder, by notice in
writing to the Company (and to the Trustee if given by such Securityholders),
may declare the principal of (and premium, if any, on) and accrued and unpaid
interest on all the Securities of that series to be due and payable immediately,
and upon any such declaration the same shall become and shall be immediately due
and payable. If an Event of Default specified in clause (4) or clause (5) above
occurs, the principal of and accrued and unpaid interest on all the Securities
of that series shall automatically be immediately due and payable without any
declaration or other act on the part of the Trustee or the holders of the
Securities.

20

          (c) At any time after the principal of (and premium, if
any, on) and accrued and unpaid interest on the Securities of that 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 holders of a majority in aggregate principal amount of the
Securities of that series then Outstanding hereunder, by written notice to the
Company and the Trustee, may rescind and annul such declaration and its
consequences if: (i) the Company has paid or deposited with the Trustee a sum
sufficient to pay all matured installments of interest upon all the Securities
of that series and the principal of (and premium, if any, on) any and all
Securities of that series that shall have become due otherwise than by
acceleration (with interest upon such principal and premium, if any, and, to the
extent that such payment is enforceable under applicable law, upon overdue
installments of interest, at the rate per annum expressed in the Securities of
that series to the date of such payment or deposit) and the amount payable to
the Trustee under Section 7.06, and (ii) any and all Events of Default under the
Indenture with respect to such series, other than the nonpayment of principal on
(and premium, if any, on) and accrued and unpaid interest on Securities of that
series that shall not have become due by their terms, shall have been remedied
or waived as provided in Section 6.06.

     No such rescission and annulment
shall extend to or shall affect any subsequent default or impair any right
consequent thereon.

          (d) In case the Trustee shall have proceeded to enforce
any right with respect to Securities of that series 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, subject to any
determination in such proceedings, the Company and the Trustee shall be restored
respectively to their former positions and rights hereunder, and all rights,
remedies and powers of the Company and the Trustee shall continue as though no
such proceedings had been taken.

     6.02
Collection Of Indebtedness And Suits For Enforcement By
Trustee.

          (a) The Company covenants that (i) in case it shall
default in the payment of any installment of interest on any of the Securities
of a series, or in any payment required by any sinking or analogous fund
established with respect to that series as and when the same shall have become
due and payable, and such default shall have continued for a period of 90 days,
or (ii) in case it shall default in the payment of the principal of (or premium,
if any, on) any of the Securities of a series when the same shall have become
due and payable, whether upon maturity of the Securities of a 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
Securities of that series, the whole amount that then shall have been become due
and payable on all such Securities 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 per annum expressed in the Securities of that series; and, in addition
thereto, such further amount as shall be sufficient to cover the costs and
expenses of collection, and the amount payable to the Trustee under Section
7.06.

21

          (b) If the Company shall fail to pay such amounts
forthwith 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 proceeding to judgment or final
decree, and may enforce any such judgment or final decree against the Company or
other obligor upon the Securities of that series and collect the moneys adjudged
or decreed to be payable in the manner provided by law or equity out of the
property of the Company or other obligor upon the Securities of that series,
wherever situated.

          (c)
In case of any receivership, insolvency, liquidation, bankruptcy,
reorganization, readjustment, arrangement, composition or judicial proceedings
affecting the Company, or its creditors or property, the Trustee shall have
power to intervene in such proceedings and take any action therein that may be
permitted by the court and shall (except as may be otherwise provided by law) be
entitled to file such proofs of claim and other papers and documents as may be
necessary or advisable in order to have the claims of the Trustee and of the
holders of Securities of such series allowed for the entire amount due and
payable by the Company under the Indenture at the date of institution of such
proceedings and for any additional amount that may become due and payable by the
Company after such date, and to collect and receive any moneys or other property
payable or deliverable on any such claim, and to distribute the same after the
deduction of the amount payable to the Trustee under Section 7.06; and any
receiver, assignee or trustee in bankruptcy or reorganization is hereby
authorized by each of the holders of Securities of such series to make such
payments to the Trustee, and, in the event that the Trustee shall consent to the
making of such payments directly to such Securityholders, to pay to the Trustee
any amount due it under Section 7.06.

          (d) All rights of action and of asserting claims under
this Indenture, or under any of the terms established with respect to Securities
of that series, may be enforced by the Trustee without the possession of any of
such Securities, or the production thereof at any trial or other proceeding
relative thereto, and any such suit or proceeding instituted by the Trustee
shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall, after provision for payment to the Trustee of any
amounts due under Section 7.06, be for the ratable benefit of the holders of the
Securities of such series.

     In case of an Event of Default
hereunder, 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 specific enforcement of any covenant or agreement contained in the 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.

22

     Nothing contained herein shall be
deemed to authorize the Trustee to authorize or consent to or accept or adopt on
behalf of any Securityholder any plan of reorganization, arrangement, adjustment
or composition affecting the Securities of that series or the rights of any
holder thereof or to authorize the Trustee to vote in respect of the claim of
any Securityholder in any such proceeding.

     6.03 Application Of Moneys Collected. Any moneys
collected by the Trustee pursuant to this Article with respect to a particular
series of Securities 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
Securities of that series, and notation thereon of the payment, if only
partially paid, and upon surrender thereof if fully paid:

     First, to the payment of reasonable
costs and expenses of collection and of all amounts payable to the Trustee under
Section 7.06;

     Second, to the payment of the
amounts then due and unpaid upon Securities of such series for principal (and
premium, if any) and interest, in respect of which or for the benefit of which
such money has been collected, ratably, without preference or priority of any
kind, according to the amounts due and payable on such Securities for principal
(and premium, if any) and interest, respectively; and

     Third, to the payment of the
remainder, if any, to the Company or any other Person lawfully entitled
thereto.

     6.04 Limitation On Suits. No holder of any
Security of any series shall have any right by virtue or by availing of any
provision of this Indenture to institute any suit, action or proceeding in
equity or at law 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
(i) such holder previously shall have given to the Trustee written notice of an
Event of Default and of the continuance thereof with respect to the Securities
of such series specifying such Event of Default, as hereinbefore provided; (ii)
the holders of not less than 25% in aggregate principal amount of the Securities
of such series then Outstanding shall have made written request upon the Trustee
to institute such action, suit or proceeding in its own name as Trustee
hereunder; (iii) such holder or holders shall have offered to the Trustee such
reasonable indemnity as it may require against the costs, expenses and
liabilities to be incurred therein or thereby; (iv) the Trustee for 90 days
after its receipt of such notice, request and offer of indemnity, shall have
failed to institute any such action, suit or proceeding; and (v) during such 90
day period, the holders of a majority in principal amount of the Securities of
that series do not give the Trustee a direction inconsistent with the
request.

23

     Notwithstanding anything contained
herein to the contrary or any other provisions of this Indenture, the right of
any holder of any Security to receive payment of the principal of (and premium,
if any) and interest on such Security, as therein provided, on or after the
respective due dates expressed in such Security (or in the case of redemption,
on the redemption date), or to institute suit for the enforcement of any such
payment on or after such respective dates or redemption date, shall not be
impaired or affected without the consent of such holder and by accepting a
Security hereunder it is expressly understood, intended and covenanted by the
taker and holder of every Security of such series with every other such taker
and holder and the Trustee, that no one or more holders of Securities of such
series shall have any right in any manner whatsoever 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 Securities, 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 Securities of such series. For the
protection and enforcement of the provisions of this Section, each and every
Securityholder and the Trustee shall be entitled to such relief as can be given
either at law or in equity.

     6.05
Rights And Remedies Cumulative; Delay Or Omission Not
Waiver.

          (a) Except as otherwise provided in Section 2.07, all
powers and remedies given by this Article to the Trustee or to the
Securityholders shall, to the extent permitted by law, be deemed cumulative and
not exclusive of any other powers and remedies available to the Trustee or the
holders of the Securities, by judicial proceedings or otherwise, to enforce the
performance or observance of the covenants and agreements contained in this
Indenture or otherwise established with respect to such Securities.

          (b) No delay or omission of the Trustee or of any holder
of any of the Securities to exercise any right or power accruing upon any Event
of 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 6.04, every
power and remedy given by this Article or by law to the Trustee or the
Securityholders may be exercised from time to time, and as often as shall be
deemed expedient, by the Trustee or by the Securityholders.

     6.06 Control By Securityholders. The holders of a
majority in aggregate principal amount of the Securities of any series at the
time Outstanding, determined in accordance with Section 8.04, shall have the
right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee with respect to such series; provided, however, that such direction
shall not be in conflict with any rule of law or with this Indenture. Subject to
the provisions of Section 7.01, the Trustee shall have the right to decline to
follow any such direction if the Trustee in good faith shall, by a Responsible
Officer or officers of the Trustee, determine that the proceeding so directed,
subject to the Trustee’s duties under the Trust Indenture Act, would involve the
Trustee in personal liability or might be unduly prejudicial to the
Securityholders not involved in the proceeding. The holders of a majority in
aggregate principal amount of the Securities of any series at the time
Outstanding affected thereby, determined in accordance with Section 8.04, may on
behalf of the holders of all of the Securities of such series waive any past
default in the performance of any of the covenants contained herein or
established pursuant to Section 2.01 with respect to such series and its
consequences, except a default in the payment of the principal of, or premium,
if any, or interest on, any of the Securities of that series as and when the
same shall become due by the terms of such Securities otherwise than by
acceleration (unless such default has been cured and a sum sufficient to pay all
matured installments of interest and principal and any premium has been
deposited with the Trustee (in accordance with Section 6.01(c)). Upon any such
waiver, the default covered thereby shall be deemed to be cured for all purposes
of this Indenture and the Company, the Trustee and the holders of the 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.

24

     6.07 Undertaking To Pay Costs. All parties to
this Indenture agree, and each holder of any Securities by such holder’s
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 shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, holding more than 10% in aggregate principal amount of the
Outstanding Securities of any series, or to any suit instituted by any
Securityholder for the enforcement of the payment of the principal of (or
premium, if any) or interest on any Security of such series, on or after the
respective due dates expressed in such Security or established pursuant to this
Indenture.

ARTICLE
7

CONCERNING THE
TRUSTEE

     7.01
Certain Duties And Responsibilities Of Trustee.

          (a) The Trustee, prior to the occurrence of an Event of Default with
respect to the Securities of a series and after the curing of all Events of
Default with respect to the Securities of that series that may have occurred,
shall undertake to perform with respect to the Securities of such series such
duties and only such duties as are specifically set forth in this Indenture, and
no implied covenants shall be read into this Indenture against the Trustee. In
case an Event of Default with respect to the Securities of a series has occurred
(that has not been cured or waived), the Trustee shall exercise with respect to
Securities of that series 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.

          (b) 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:

               (i)
prior to the occurrence of an Event of Default with respect to
the Securities of a series and after the curing or waiving of all such Events of
Default with respect to that series that may have occurred:

                    (a)
the duties and obligations of the Trustee shall with respect to the Securities
of such series be determined solely by the express provisions of this Indenture,
and the Trustee shall not be liable with respect to the Securities of such
series 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

25

                    (b)
in the absence of bad faith on the part of the Trustee, the Trustee may with
respect to the Securities of such series 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 that 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;

               (ii) the Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer or Responsible Officers of
the Trustee, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;

               (iii) 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 principal amount of the
Securities of any 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
with respect to the Securities of that series; and

               (iv) None of the provisions contained in this Indenture
shall require the Trustee to expend or risk its own funds or otherwise incur
personal financial liability in the performance of any of its duties or in the
exercise of any of its rights or powers if there is reasonable ground for
believing that the repayment of such funds or liability is not reasonably
assured to it under the terms of this Indenture or adequate indemnity against
such risk is not reasonably assured to it.

     7.02
Certain Rights Of Trustee. Except as otherwise provided in
Section 7.01:

          (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, order, approval, bond,
security 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 a Board Resolution
or an instrument signed in the name of the Company by any authorized officer of
the Company (unless other evidence in respect thereof is specifically prescribed
herein);

          (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 or suffered or
omitted hereunder in good faith and in reliance thereon;

26

          (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 Securityholders pursuant to the provisions of this
Indenture, unless such Securityholders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities
that may be incurred therein or thereby; nothing contained herein shall,
however, relieve the Trustee of the obligation, upon the occurrence of an Event
of Default with respect to a series of the Securities (that has not been cured
or waived), to exercise with respect to Securities of that series such of the
rights and powers vested in it by this Indenture, and to 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;

          (e) The Trustee shall not be liable for any action taken
or omitted to be taken 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,
approval, bond, security, or other papers or documents, unless requested in
writing so to do by the holders of not less than a majority in principal amount
of the Outstanding Securities of the particular series affected thereby
(determined as provided in Section 8.04); provided, however, that if the payment
within a reasonable time to the Trustee of the costs, expenses or liabilities
likely to be incurred by it in the making of such investigation is, in the
opinion of the Trustee, not reasonably assured to the Trustee by the security
afforded to it by the terms of this Indenture, the Trustee may require
reasonable indemnity against such costs, expenses or liabilities as a condition
to so proceeding. The reasonable expense of every such examination shall be paid
by the Company or, if paid by the Trustee, shall be repaid by the Company upon
demand; 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 appointed with due care by it
hereunder.

     In addition, the Trustee shall not
be deemed to have knowledge of any Default or Event of Default except (1) any
Event of Default occurring pursuant to Sections 6.01(a)(1), and 6.01(a)(2) or
(2) any Default or Event of Default of which the Trustee shall have received
written notification in the manner set forth in this Indenture or a Responsible
Officer of the Trustee shall have obtained actual knowledge. Delivery of
reports, information and documents to the Trustee under Section 5.03 is for
informational purposes only and the information and the Trustee’s receipt of the
foregoing shall not constitute constructive notice of any information contained
therein, or determinable from information contained therein including the
Company’s compliance with any of their covenants thereunder (as to which the
Trustee is entitled to rely exclusively on an Officers’
Certificate).

     7.03
Trustee Not Responsible For Recitals Or Issuance Or
Securities.

          (a) The recitals contained herein and in the Securities
shall be taken as the statements of the Company, and the Trustee assumes no
responsibility for the correctness of the same.

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          (b) The Trustee makes no representations as to the
validity or sufficiency of this Indenture or of the Securities.

          (c) The Trustee shall not be accountable for the use or
application by the Company of any of the Securities or of the proceeds of such
Securities, or for the use or application of any moneys paid over by the Trustee
in accordance with any provision of this Indenture or established pursuant to
Section 2.01, or for the use or application of any moneys received by any paying
agent other than the Trustee.

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

     7.05 Moneys Held In Trust. Subject to the
provisions of Section 11.05, 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. The Trustee shall be under no liability for interest on
any moneys received by it hereunder except such as it may agree with the Company
to pay thereon.

     7.06
Compensation And Reimbursement.

          (a) The Company covenants and agrees to pay to the
Trustee, and the Trustee shall be entitled to, such reasonable compensation
(which shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust) as the Company and the Trustee
may from time to time agree in writing, for all services rendered by it in the
execution of the trusts hereby created and in the exercise and performance of
any of the powers and duties hereunder of the Trustee, and, except as otherwise
expressly provided herein, 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
and except as the Company and Trustee may from time to time agree in writing.
The Company also covenants to indemnify the Trustee (and its officers, agents,
directors and employees) for, and to hold it harmless against, any loss,
liability or expense incurred without negligence or bad faith on the part of the
Trustee and arising out of or in connection with the acceptance or
administration of this trust, including the reasonable costs and expenses of
defending itself against any claim of liability in the premises.

          (b) The obligations of the Company under this Section to
compensate and indemnify the Trustee and to pay or reimburse the Trustee for
reasonable expenses, disbursements and advances shall constitute additional
indebtedness hereunder. Such additional indebtedness shall be secured by a lien
prior to that of the 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 Securities.

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     7.07 Reliance On Officers’ Certificate. Except as
otherwise provided in Section 7.01, whenever in the administration of the
provisions of this Indenture the Trustee shall deem it reasonably necessary or
desirable that a matter be proved or established prior to taking or suffering or
omitting to take 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 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 to be taken by it under the provisions of this Indenture upon the faith
thereof.

     7.08 Disqualification; Conflicting Interests. If
the Trustee has or shall acquire any “conflicting interest” within the meaning
of Section 310(b) of the Trust Indenture Act, the Trustee and the Company shall
in all respects comply with the provisions of Section 310(b) of the Trust
Indenture Act.

     7.09 Corporate Trustee Required; Eligibility.
There shall at all times be a Trustee with respect to the Securities issued
hereunder which shall at all times be a corporation organized and doing business
under the laws of the United States of America or any state or territory thereof
or of the District of Columbia, or a corporation or other Person permitted to
act as trustee by the Securities and Exchange Commission, authorized under such
laws to exercise corporate trust powers, having a combined capital and surplus
of at least fifty million U.S. dollars ($50,000,000), and subject to supervision
or examination by federal, state, territorial, or District of Columbia
authority.

     If such corporation or other Person
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, the combined capital and surplus of such corporation
or other Person shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published. The Company may not,
nor may any Person directly or indirectly controlling, controlled by, or under
common control with the Company, serve as Trustee. In case at any time the
Trustee shall cease to be eligible in accordance with the provisions of this
Section, the Trustee shall resign immediately in the manner and with the effect
specified in Section 7.10.

     7.10
Resignation And Removal; Appointment Of Successor.

          (a) The Trustee or any successor hereafter appointed may
at any time resign with respect to the Securities of one or more series by
giving written notice thereof to the Company and by transmitting notice of
resignation by mail, first class postage prepaid, to the Securityholders of such
series, as their names and addresses appear upon the Security Register. Upon
receiving such notice of resignation, the Company shall promptly appoint a
successor trustee with respect to Securities of such series by written
instrument, in duplicate, executed by order of the Board of Directors, 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 mailing of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor trustee with respect to
Securities of such series, or any Securityholder of that series who has been a
bona fide holder of a Security or Securities for at least six months may 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.

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

               (i) the Trustee shall fail to comply with the provisions
of Section 7.08 after written request therefor by the Company or by any
Securityholder who has been a bona fide holder of a Security or Securities for
at least six months; or

               (ii) the Trustee shall cease to be eligible in accordance
with the provisions of Section 7.09 and shall fail to resign after written
request therefor by the Company or by any such Securityholder; or

               (iii) the Trustee shall become incapable of acting, or
shall be adjudged a bankrupt or insolvent, or commence a voluntary bankruptcy
proceeding, or a receiver of the Trustee or of its property shall be appointed
or consented to, 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 with respect to all Securities and appoint a successor
trustee by written instrument, in duplicate, executed by order of the Board of
Directors, one copy of which instrument shall be delivered to the Trustee so
removed and one copy to the successor trustee, or any Securityholder who has
been a bona fide holder of a Security or Securities for at least six months may,
on behalf of that holder and all others similarly situated, petition any court
of competent jurisdiction for the removal of the Trustee 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 and appoint a successor
trustee.

          (c) The holders of a majority in aggregate principal
amount of the Securities of any series at the time Outstanding may at any time
remove the Trustee with respect to such series by so notifying the Trustee and
the Company and may appoint a successor Trustee for such series with the consent
of the Company.

          (d) Any resignation or removal of the Trustee and
appointment of a successor trustee with respect to the Securities of a series
pursuant to any of the provisions of this Section shall become effective upon
acceptance of appointment by the successor trustee as provided in Section
7.11.

          (e) Any successor trustee appointed pursuant to this
Section may be appointed with respect to the Securities of one or more series or
all of such series, and at any time there shall be only one Trustee with respect
to the Securities of any particular series.

     7.11
Acceptance Of Appointment By Successor.

          (a) In case of the appointment hereunder of a successor
trustee with respect to all Securities, every such successor trustee so
appointed shall execute, acknowledge and deliver to the Company and to the
retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such
successor trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee;
but, on the request of the Company or the successor trustee, such retiring
Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor trustee all the rights, powers, and trusts of the
retiring Trustee and shall duly assign, transfer and deliver to such successor
trustee all property and money held by such retiring Trustee
hereunder.

30

          (b) In case of the appointment hereunder of a successor
trustee with respect to the Securities of one or more (but not all) series, the
Company, the retiring Trustee and each successor trustee with respect to the
Securities of one or more series shall execute and deliver an indenture
supplemental hereto wherein each successor trustee shall accept such appointment
and which (i) shall contain such provisions as shall be necessary or desirable
to transfer and confirm to, and to vest in, each successor trustee all the
rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor
trustee relates, (ii) shall contain such provisions as shall be deemed necessary
or desirable to confirm that all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series as to
which the retiring Trustee is not retiring shall continue to be vested in the
retiring Trustee, and (iii) 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 indenture shall constitute such Trustees
co-trustees of the same trust, that each such Trustee shall be trustee of a
trust or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Trustee and that no Trustee shall be responsible
for any act or failure to act on the part of any other Trustee hereunder; and
upon the execution and delivery of such supplemental indenture the resignation
or removal of the retiring Trustee shall become effective to the extent provided
therein, such retiring Trustee shall with respect to the Securities of that or
those series to which the appointment of such successor trustee relates have no
further responsibility for the exercise of rights and powers or for the
performance of the duties and obligations vested in the Trustee under this
Indenture, and each such successor trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series
to which the appointment of such successor trustee relates; but, on request of
the Company or any successor trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor trustee, to the extent contemplated by
such supplemental indenture, the property and money held by such retiring
Trustee hereunder with respect to the Securities of that or those series to
which the appointment of such successor trustee relates.

          (c) Upon request of any such successor trustee, the
Company shall execute any and all instruments for more fully and certainly
vesting in and confirming to such successor trustee all such rights, powers and
trusts referred to in paragraph (a) or (b) of this Section, as the case may
be.

          (d) No successor trustee shall accept its appointment
unless at the time of such acceptance such successor trustee shall be qualified
and eligible under this Article.

          (e) Upon acceptance of appointment by a successor
trustee as provided in this Section, the Company shall transmit notice of the
succession of such trustee hereunder by mail, first class postage prepaid, to
the Securityholders, as their names and addresses appear upon the Security
Register. If the Company fails to transmit such notice within ten days after
acceptance of appointment by the successor trustee, the successor trustee shall
cause such notice to be transmitted at the expense of the Company.

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     7.12 Merger, Conversion, Consolidation Or Succession
To Business. Any corporation into which the Trustee may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to the corporate trust business of the
Trustee, including the administration of the trust created by this Indenture,
shall be the successor of the Trustee hereunder, provided that such corporation
shall be qualified under the provisions of Section 7.08 and eligible under the
provisions of Section 7.09, 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 any Securities shall have been authenticated,
but not delivered, by the Trustee then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect
as if such successor Trustee had itself authenticated such
Securities.

     7.13 Preferential Collection Of Claims Against The
Company. The Trustee shall comply with Section 311(a) of the Trust Indenture
Act, excluding any creditor relationship described in Section 311(b) of the
Trust Indenture Act. A Trustee who has resigned or been removed shall be subject
to Section 311(a) of the Trust Indenture Act to the extent included
therein.

     7.14 Notice Of Default. If any Default or any
Event of Default occurs and is continuing and if such Default or Event of
Default is known to a Responsible Officer of the Trustee, the Trustee shall mail
to each Securityholder in the manner and to the extent provided in Section
313(c) of the Trust Indenture Act notice of the Default or Event of Default
within 45 days after it occurs, unless such Default or Event of Default has been
cured; provided, however, that, except in the case of a default in the payment
of the principal of (or premium, if any) or interest on any Security, 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 determine that the
withholding of such notice is in the interest of the
Securityholders.

ARTICLE
8

CONCERNING THE
SECURITYHOLDERS

     8.01 Evidence Of Action By Securityholders.
Whenever in this Indenture it is provided that the holders of a majority or
specified percentage in aggregate principal amount of the Securities of a
particular 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
majority or specified percentage of that series have joined therein may be
evidenced by any instrument or any number of instruments of similar tenor
executed by such holders of Securities of that series in person or by agent or
proxy appointed in writing.

32

     If the Company shall solicit from
the Securityholders of any series any request, demand, authorization, direction,
notice, consent, waiver or other action, the Company may, at its option, as
evidenced by an Officers’ Certificate, fix in advance a record date for such
series for the determination of Securityholders entitled to give such request,
demand, authorization, direction, notice, consent, waiver or other action, but
the Company shall have no obligation to do so. If such a record date is fixed,
such request, demand, authorization, direction, notice, consent, waiver or other
action may be given before or after the record date, but only the
Securityholders of record at the close of business on the record date shall be
deemed to be Securityholders for the purposes of determining whether
Securityholders of the requisite proportion of Outstanding Securities of that
series have authorized or agreed or consented to such request, demand,
authorization, direction, notice, consent, waiver or other action, and for that
purpose the Outstanding Securities of that series shall be computed as of the
record date; provided, however, that no such authorization, agreement or consent
by such Securityholders on the record date shall be deemed effective unless it
shall become effective pursuant to the provisions of this Indenture not later
than six months after the record date.

     8.02 Proof Of Execution By Securityholders.
Subject to the provisions of Section 7.01, proof of the execution of any
instrument by a Securityholder (such proof will not require notarization) or the
Securityholder’s agent or proxy and proof of the holding by any Person of any of
the Securities shall be sufficient if made in the following manner:

          (a) The fact and date of the execution by any such
Person of any instrument may be proved in any reasonable manner acceptable to
the Trustee.

          (b) The ownership of Securities shall be proved by the
Security Register of such Securities or by a certificate of the Security
Registrar thereof.

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

     8.03 Who May Be Deemed Owners. Prior to the due
presentment for registration of transfer of any Security, the Company, the
Trustee, any paying agent and any Security Registrar may deem and treat the
Person in whose name such Security shall be registered upon the books of the
Company as the absolute owner of such Security (whether or not such Security
shall be overdue and notwithstanding any notice of ownership or writing thereon
made by anyone other than the Security Registrar) for the purpose of receiving
payment of or on account of the principal of, premium, if any, and (subject to
Section 2.03) interest on such Security and for all other purposes; and neither
the Company nor the Trustee nor any paying agent nor any Security Registrar
shall be affected by any notice to the contrary.

     8.04 Certain Securities Owned By Company
Disregarded. In determining whether the holders of the requisite aggregate
principal amount of Securities of a particular series have concurred in any
direction, consent or waiver under this Indenture, the Securities of that series
that are owned by the Company or any other obligor on the Securities of that
series or by any Person directly or indirectly controlling or controlled by or
under common control with the Company or any other obligor on the Securities of
that 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 Securities of such series that the Trustee actually knows are so
owned shall be so disregarded. 

33

The Securities so
owned that have been pledged in good faith may be regarded as Outstanding for
the purposes of this Section, if the pledgee shall establish to the satisfaction
of the Trustee the pledgee’s right so to act with respect to such 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. In case of a dispute as to such right, any decision by the
Trustee taken upon the advice of counsel shall be full protection to the
Trustee.

     8.05 Actions Binding On Future Securityholders. At
any time prior to (but not after) the evidencing to the Trustee, as provided in
Section 8.01, of the taking of any action by the holders of the majority or
percentage in aggregate principal amount of the Securities of a particular
series specified in this Indenture in connection with such action, any holder of
a Security of that series that is shown by the evidence to be included in the
Securities the holders of which have consented to such action may, by filing
written notice with the Trustee, and upon proof of holding as provided in
Section 8.02, revoke such action so far as concerns such Security. Except as
aforesaid any such action taken by the holder of any Security shall be
conclusive and binding upon such holder and upon all future holders and owners
of such Security, and of any Security issued in exchange therefor, on
registration of transfer thereof or in place thereof, irrespective of whether or
not any notation in regard thereto is made upon such Security. Any action taken
by the holders of the majority or percentage in aggregate principal amount of
the Securities of a particular 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 Securities of that series.

ARTICLE
9

SUPPLEMENTAL
INDENTURES

     9.01 Supplemental Indentures Without The Consent Of
Securityholders. In addition to any supplemental indenture otherwise
authorized by this Indenture, the Company 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 as then in effect),
without the consent of the Securityholders, for one or more of the following
purposes:

          (a) to cure any ambiguity, defect, or inconsistency
herein or in the Securities of any series;

          (b) to comply with Article Ten;

          (c) to provide for uncertificated Securities in addition
to or in place of certificated Securities;

          (d) to add to the covenants, restrictions, conditions or
provisions relating to the Company for the benefit of the holders of all or any
series of Securities (and if such covenants, restrictions, conditions or
provisions are to be for the benefit of less than all series of Securities,
stating that such covenants, restrictions, conditions or provisions are
expressly being included solely for the benefit of such series), to make the
occurrence, or the occurrence and the continuance, of a default in any such
additional covenants, restrictions, conditions or provisions an Event of
Default, or to surrender any right or power herein conferred upon the
Company;

34

          (e) to add to, delete from, or revise the conditions,
limitations, and restrictions on the authorized amount, terms, or purposes of
issue, authentication, and delivery of Securities, as herein set
forth;

          (f) to make any change that does not adversely affect
the rights of any Securityholder in any material respect;

          (g) to provide for the issuance of and establish the
form and terms and conditions of the Securities of any series as provided in
Section 2.01, to establish the form of any certifications required to be
furnished pursuant to the terms of this Indenture or any series of Securities,
or to add to the rights of the holders of any series of Securities;

          (h) to evidence and provide for the acceptance of
appointment hereunder by a successor trustee; or

          (i) to comply with any requirements of the Securities
and Exchange Commission or any successor in connection with the qualification of
this Indenture under the Trust Indenture Act.

     The Trustee is hereby authorized to
join with the Company in the execution of any such supplemental indenture, and
to make any further appropriate agreements and stipulations that may be therein
contained, but the Trustee shall not be obligated to enter into any such
supplemental indenture that affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise.

     Any supplemental indenture
authorized by the provisions of this Section may be executed by the Company and
the Trustee without the consent of the holders of any of the Securities at the
time Outstanding, notwithstanding any of the provisions of Section
9.02.

     9.02 Supplemental Indentures With Consent Of
Securityholders. With the consent (evidenced as provided in Section 8.01) of
the holders of not less than a majority in aggregate principal amount of the
Securities of each series affected by such supplemental indenture or indentures
at the time Outstanding, the Company, when authorized by a Board Resolution, 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 as then in effect) 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 not
covered by Section 9.01 the rights of the holders of the Securities of such
series under this Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the holders of each Security then
Outstanding and affected thereby, (a) extend the fixed maturity of any
Securities of any series, 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 or (b) reduce the aforesaid percentage of
Securities, the holders of which are required to consent to any such
supplemental indenture.

35

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

     9.03 Effect Of Supplemental Indentures. Upon the
execution of any supplemental indenture pursuant to the provisions of this
Article or of Section 10.01, this Indenture shall, with respect to such series,
be and be deemed to be modified and amended in accordance therewith and the
respective rights, limitations of rights, obligations, duties and immunities
under this Indenture of the Trustee, the Company and the holders of Securities
of the 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.

     9.04 Securities Affected By Supplemental
Indentures. Securities of any series affected by a supplemental indenture,
authenticated and delivered after the execution of such supplemental indenture
pursuant to the provisions of this Article or of Section 10.01, may bear a
notation in form approved by the Company, provided such form meets the
requirements of any securities exchange upon which such series may be listed, as
to any matter provided for in such supplemental indenture. If the Company shall
so determine, new Securities of that series so modified as to conform, in the
opinion of the Board of Directors, to any modification of this Indenture
contained in any such supplemental indenture may be prepared by the Company,
authenticated by the Trustee and delivered in exchange for the Securities of
that series then Outstanding.

     9.05 Execution Of Supplemental Indentures. Upon
the request of the Company, accompanied by its Board Resolutions authorizing the
execution of any such supplemental indenture, and upon the filing with the
Trustee of evidence of the consent of Securityholders required to consent
thereto 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. The Trustee, subject to the provisions of
Section 7.01, may receive an Officers’ Certificate or an Opinion of Counsel as
conclusive evidence that any supplemental indenture executed pursuant to this
Article is authorized or permitted by, and conforms to, the terms of this
Article and that it is proper for the Trustee under the provisions of this
Article to join in the execution thereof; provided, however, that such Officers’
Certificate or Opinion of Counsel need not be provided in connection with the
execution of a supplemental indenture that establishes the terms of a series of
Securities pursuant to Section 2.01 hereof.

     Promptly after the execution by the
Company and the Trustee of any supplemental indenture pursuant to the provisions
of this Section, the Trustee shall transmit by mail, first class postage
prepaid, a notice, setting forth in general terms the substance of such
supplemental indenture, to the Securityholders of all series affected thereby as
their names and addresses appear upon the Security Register. Any failure of the
Trustee to mail such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such supplemental
indenture.

36

ARTICLE
10

SUCCESSOR
ENTITY

     10.01 Company May Consolidate, Etc. Except as
provided pursuant to Section 2.01 pursuant to a Board Resolution, and set forth
in an Officers’ Certificate, or established in one or more indentures
supplemental to this Indenture, nothing contained in this Indenture shall
prevent any consolidation or merger of the Company with or into any other Person
(whether or not affiliated with the Company) 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, conveyance, transfer or other disposition of
the property of the Company or its successor or successors as an entirety, or
substantially as an entirety, to any other corporation (whether or not
affiliated with the Company or its successor or successors) authorized to
acquire and operate the same; provided, however, (a) the Company hereby
covenants and agrees that, upon any such consolidation or merger (in each case,
if the Company is not the survivor of such transaction), sale, conveyance,
transfer or other disposition, the due and punctual payment of the principal of
(premium, if any) and interest on all of the Securities of all series in
accordance with the terms of each series, according to their tenor, and the due
and punctual performance and observance of all the covenants and conditions of
this Indenture with respect to each series or established with respect to such
series pursuant to Section 2.01 to be kept or performed by the Company shall be
expressly assumed, by supplemental indenture (which shall conform to the
provisions of the Trust Indenture Act, as then in effect) reasonably
satisfactory in form to the Trustee executed and delivered to the Trustee by the
entity formed by such consolidation, or into which the Company shall have been
merged, or by the entity which shall have acquired such property and (b) in the
event that the Securities of any series then Outstanding are convertible into or
exchangeable for shares of common stock or other securities of the Company, such
entity shall, by such supplemental indenture, make provision so that the
Securityholders of Securities of that series shall thereafter be entitled to
receive upon conversion or exchange of such Securities the number of securities
or property to which a holder of the number of shares of common stock or other
securities of the Company deliverable upon conversion or exchange of those
Securities would have been entitled had such conversion or exchange occurred
immediately prior to such consolidation, merger, sale, conveyance, transfer or
other disposition.

     10.02
Successor Entity Substituted.

          (a) In case of any such consolidation, merger, sale,
conveyance, transfer or other disposition and upon the assumption by the
successor entity by supplemental indenture, executed and delivered to the
Trustee and satisfactory in form to the Trustee, of the obligations set forth
under Section 10.01 on all of the Securities of all series Outstanding, such
successor entity shall succeed to and be substituted for the Company with the
same effect as if it had been named as the Company herein, and thereupon the
predecessor corporation shall be relieved of all obligations and covenants under
this Indenture and the Securities.

          (b) In case of any such consolidation, merger, sale,
conveyance, transfer or other disposition, such changes in phraseology and form
(but not in substance) may be made in the Securities thereafter to be issued as
may be appropriate.

37

          (c) Nothing contained in this Article shall require any
action by the Company in the case of a consolidation or merger of any Person
into the Company where the Company is the survivor of such transaction, or the
acquisition by the Company, by purchase or otherwise, of all or any part of the
property of any other Person (whether or not affiliated with the
Company).

     10.03 Evidence Of Consolidation, Etc. To Trustee.
The Trustee, subject to the provisions of Section 7.01, may receive an Officers’
Certificate or an Opinion of Counsel as conclusive evidence that any such
consolidation, merger, sale, conveyance, transfer or other disposition, and any
such assumption, comply with the provisions of this Article.

ARTICLE
11

SATISFACTION AND
DISCHARGE

     11.01 Satisfaction And Discharge Of Indenture. If
at any time: (a) the Company shall have delivered to the Trustee for
cancellation all Securities of a series theretofore authenticated and not
delivered to the Trustee for cancellation (other than any Securities that shall
have been destroyed, lost or stolen and that shall have been replaced or paid as
provided in Section 2.07 and Securities for whose payment money or Governmental
Obligations have theretofore been deposited in trust or segregated and held in
trust by the Company and thereupon repaid to the Company or discharged from such
trust, as provided in Section 11.05); or (b) all such Securities of a particular
series not theretofore delivered to the Trustee for cancellation shall have
become due and payable, or are by their terms to become due and payable within
one year or are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption, and the
Company shall deposit or cause to be deposited with the Trustee as trust funds
the entire amount in moneys or Governmental Obligations or a combination
thereof, sufficient in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay at maturity or upon redemption all Securities
of that series not theretofore delivered to the Trustee for cancellation,
including principal (and premium, if any) and interest due or to become due to
such date of maturity or date fixed for redemption, as the case may be, and if
the Company shall also pay or cause to be paid all other sums payable hereunder
with respect to such series by the Company then this Indenture shall thereupon
cease to be of further effect with respect to such series except for the
provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03 and 7.10, that shall
survive until the date of maturity or redemption date, as the case may be, and
Sections 7.06 and 11.05, that shall survive to such date and thereafter, and the
Trustee, on demand of the Company and at the cost and expense of the Company
shall execute proper instruments acknowledging satisfaction of and discharging
this Indenture with respect to such series.

     11.02 Discharge Of Obligations. If at any time all
such Securities of a particular series not heretofore delivered to the Trustee
for cancellation or that have not become due and payable as described in Section
11.01 shall have been paid by the Company by depositing irrevocably with the
Trustee as trust funds moneys or an amount of Governmental Obligations
sufficient to pay at maturity or upon redemption all such Securities of that
series not theretofore delivered to the Trustee for cancellation, including
principal (and premium, if any) and interest due or to become due to such date
of maturity or date fixed for redemption, as the case may be, and if the Company
shall also pay or cause to be paid all other sums payable hereunder by the
Company with respect to such series, then after the date such moneys or
Governmental Obligations, as the case may be, are deposited with the Trustee the
obligations of the Company under this Indenture with respect to such series
shall cease to be of further effect except for the provisions of Sections 2.03,
2.05, 2.07, 4,01, 4.02, 4,03, 7.06, 7.10 and 11.05 hereof that shall survive
until such Securities shall mature and be paid.

38

     Thereafter, Sections 7.06 and 11.05
shall survive.

     11.03 Deposited Moneys To Be Held In Trust. All
moneys or Governmental Obligations deposited with the Trustee pursuant to
Sections 11.01 or 11.02 shall be held in trust and shall be available for
payment as due, either directly or through any paying agent (including the
Company acting as its own paying agent), to the holders of the particular series
of Securities for the payment or redemption of which such moneys or Governmental
Obligations have been deposited with the Trustee.

     11.04 Payment Of Moneys Held By Paying Agents. In
connection with the satisfaction and discharge of this Indenture all moneys or
Governmental Obligations then held by any paying agent under the provisions of
this Indenture shall, upon demand of the Company, be paid to the Trustee and
thereupon such paying agent shall be released from all further liability with
respect to such moneys or Governmental Obligations.

     11.05 Repayment To Company. Any moneys or
Governmental Obligations deposited with any paying agent or the Trustee, or then
held by the Company, in trust for payment of principal of or premium, if any, or
interest on the Securities of a particular series that are not applied but
remain unclaimed by the holders of such Securities for at least two years after
the date upon which the principal of (and premium, if any) or interest on such
Securities shall have respectively become due and payable, or such other shorter
period set forth in applicable escheat or abandoned or unclaimed property law,
shall be repaid to the Company on May 31 of each year or upon the Company’s
request or (if then held by the Company) shall be discharged from such trust;
and thereupon the paying agent and the Trustee shall be released from all
further liability with respect to such moneys or Governmental Obligations, and
the holder of any of the Securities entitled to receive such payment shall
thereafter, as a general creditor, look only to the Company for the payment
thereof.

ARTICLE
12

IMMUNITY OF
INCORPORATORS, STOCKHOLDERS, OFFICERS AND 
DIRECTORS

     12.01 No Recourse. No recourse under or upon any
obligation, covenant or agreement of this Indenture, or of any Security, or for
any claim based thereon or otherwise in respect thereof, shall be had against
any incorporator, stockholder, officer or director, past, present or future as
such, of the Company or of any predecessor or successor corporation, either
directly or through the Company or any such predecessor or successor
corporation, 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 predecessor or 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 any of the Securities or implied therefrom;
and that any and all such personal liability of every name and nature, 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 any of the Securities 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 issuance of such Securities.

39

ARTICLE
13

MISCELLANEOUS
PROVISIONS

     13.01 Effect On Successors And Assigns. All the
covenants, stipulations, promises and agreements in this Indenture made by or on
behalf of the Company shall bind its successors and assigns, whether so
expressed or not.

     13.02 Actions By Successor. 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 corresponding board,
committee or officer of any corporation that shall at the time be the lawful
successor of the Company.

     13.03 Surrender Of Company Powers. 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 reserved to the
Company, and thereupon such power so surrendered shall terminate both as to the
Company and as to any successor corporation.

     13.04 Notices. Except as otherwise expressly
provided herein, any notice, request or demand that by any provision of this
Indenture is required or permitted to be given, made or served by the Trustee or
by the holders of Securities or by any other Person pursuant to this Indenture
to or on the Company may be given or served by being deposited in first class
mail, postage prepaid, addressed (until another address is filed in writing by
the Company with the Trustee), as follows: 1301 Harbor Bay Parkway, Alameda,
California 94502. Any notice, election, request or demand by the Company or any
Securityholder or by any other Person pursuant to this Indenture to or upon the
Trustee shall be deemed to have been sufficiently given or made, for all
purposes, if given or made in writing at the Corporate Trust Office of the
Trustee.

     13.05 Governing Law. This Indenture and each
Security shall be deemed to be a contract made under the internal laws of the
State of New York, and for all purposes shall be construed in accordance with
the laws of said State, except to the extent that the Trust Indenture Act is
applicable.

40

     13.06 Treatment Of Securities As Debt. It is
intended that the Securities will be treated as indebtedness and not as equity
for federal income tax purposes. The provisions of this Indenture shall be
interpreted to further this intention.

     13.07
Certificates And Opinions As To Conditions Precedent.

          (a) 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 provided for in this Indenture (other than the certificate
to be delivered pursuant to Section 13.12) 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
documents is specifically required by any provision of this Indenture relating
to such particular application or demand, no additional certificate or opinion
need be furnished.

          (b) Each certificate or opinion provided for in this
Indenture and delivered to the Trustee with respect to compliance with a
condition or covenant in this Indenture shall include (i) a statement that the
Person making such certificate or opinion has read such covenant or condition;
(ii) 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; (iii) a statement that, in the opinion of such
Person, such Person has made such examination or investigation as is reasonably
necessary to enable such Person to express an informed opinion as to whether or
not such covenant or condition has been complied with; and (iv) a statement as
to whether or not, in the opinion of such Person, such condition or covenant has
been complied with.

     13.08 Payments On Business Days. Except as provided
pursuant to Section 2.01 pursuant to a Board Resolution, and set forth in an
Officers’ Certificate, or established in one or more indentures supplemental to
this Indenture, in any case where the date of maturity of interest or principal
of any Security or the date of redemption of any Security shall not be a
Business Day, then payment of interest or principal (and premium, if any) may be
made on the next succeeding Business Day with the same force and effect as if
made on the nominal date of maturity or redemption, and no interest shall accrue
for the period after such nominal date.

     13.09 Conflict With Trust Indenture Act. If and to
the extent that any provision of this Indenture limits, qualifies or conflicts
with the duties imposed by Sections 310 to 317, inclusive, of the Trust
Indenture Act, such imposed duties shall control.

     13.10 Counterparts. 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.

     13.11 Separability. In case any one or more of the
provisions contained in this Indenture or in the Securities of any series shall
for any reason be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other
provisions of this Indenture or of such Securities, but this Indenture and such
Securities shall be construed as if such invalid or illegal or unenforceable
provision had never been contained herein or therein.

41

     13.12 Compliance Certificates. The Company shall
deliver to the Trustee, within 120 days after the end of each fiscal year during
which any Securities of any series were outstanding, an officer’s certificate
stating whether or not the signer knows of any Default or Event of Default that
occurred during such fiscal year. Such certificate shall contain a certification
from the principal executive officer, principal financial officer or principal
accounting officer of the Company that a review has been conducted of the
activities of the Company and the Company’s performance under this Indenture and
that the Company has complied with all conditions and covenants under this
Indenture. For purposes of this Section 13.12, such compliance shall be
determined without regard to any period of grace or requirement of notice
provided under this Indenture. If the officer of the Company signing such
certificate has knowledge of such a Default or Event of Default, the certificate
shall describe any such Default or Event of Default and its status.

[Signature Page
Follows]

42

     IN
WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed as of the day and year first written above.

		AVIGEN, INC. 
		 
		By: 	 
		Name: 	 
		Title: 	 
		 
		[TRUSTEE], as
      Trustee 
		 
		By: 	 
		Name: 	 
		Title: 	 

SIGNATURE PAGE TO INDENTURE – SENIOR DEBT SECURITIES

CROSS-REFERENCE TABLE
(1)

	SECTION
      OF TRUST
      INDENTURE ACT
      OF 1939, AS
      AMENDED 		SECTION OF INDENTURE 
	310(a) 		7.09 
	310(b) 		7.08 
	 	   	7.10 
	310(c) 		Inapplicable 
	311(a) 		7.13 
	311(b) 		7.13 
	311(c) 		Inapplicable 
	312(a) 		5.01 
	 		5.02(a) 
	312(b) 		5.02(c) 
	312(c) 		5.02(c) 
	313(a) 		5.04(a) 
	313(b) 		5.04(b) 
	313(c) 		5.04(a) 
	 		5.04(b) 
	313(d) 		5.04(c) 
	314(a) 		5.03 
	 		13.12 
	314(b) 		Inapplicable 
	314(c) 		13.07(a) 
	314(d) 		Inapplicable 
	314(e) 		13.07(b) 
	314(f) 		Inapplicable 
	315(a) 		7.01(a) 
	 		7.01(b) 
	315(b) 		7.14 
	315(c) 		7.01 
	315(d) 		7.01(b) 
	315(e) 		6.07 
	316(a) 		6.06 
	 		8.04 
	316(b) 		6.04 
	316(c) 		8.01 
	317(a) 		6.02 
	317(b) 		4.03 
	318(a) 		13.09 

____________________
 

	(1)	     	This Cross-Reference Table
      does not constitute part of the Indenture and shall not have any bearing
      on the interpretation of any of its terms or
  provisions.

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