Document:

Unassociated Document

    REGISTRATION
      RIGHTS AGREEMENT

    

    This
      Registration Rights Agreement (this "Agreement")
      is
      made and entered into as of October 20, 2006, by and among Dolce
      Ventures Inc.,
      a Utah
      corporation (the "Company"),
      and
      the purchasers listed on Schedule
      I
      hereto
      (the "Purchasers").
      

    

    This
      Agreement is being entered into pursuant to the Series B Convertible Preferred
      Stock Purchase Agreement dated as of the date hereof among the Company and
      the
      Purchasers (the "Purchase
      Agreement").

    

    The
      Company and the Purchasers hereby agree as follows:

    

    
      	
            	1.	
              Definitions.

            

    

    

    Capitalized
      terms used and not otherwise defined herein shall have the meanings given such
      terms in the Purchase Agreement. As used in this Agreement, the following terms
      shall have the following meanings:

    

    "Advice"
      shall
      have meaning set forth in Section 3(m).

    

    "Affiliate"
      means,
      with respect to any Person, any other Person that directly or indirectly
      controls or is controlled by or under common control with such Person. For
      the
      purposes of this definition, "control,"
      when
      used with respect to any Person, means the possession, direct or indirect,
      of
      the power to direct or cause the direction of the management and policies of
      such Person, whether through the ownership of voting securities, by contract
      or
      otherwise; and the terms of "affiliated,"
      "controlling"
      and
      "controlled"
      have
      meanings correlative to the foregoing.

    

    "Board"
      shall
      have meaning set forth in Section 3(n).

    

      "Business
      Day"
      means
      any day except Saturday, Sunday and any day which shall be a legal holiday
      or a
      day on which banking institutions in the state of New York generally are
      authorized or required by law or other government actions to close.

    

    "Closing
      Date"
      means
      the date of the Closing of the purchase and sale of the Preferred Stock and
      the
      Warrants pursuant to the Purchase Agreement.

    

    "Commission"
      means
      the Securities and Exchange Commission.

    

    "Common
      Stock"
      means
      the Company's Common Stock, par value $.001 per share.

    

    "Effectiveness
      Date"
      means
      with respect to the Registration Statement the earlier of (A) the one hundred
      fortieth (140th)
      day
      following the Closing Date (or in the event the Registration Statement receives
      a “full review” by the Commission, the two hundredth (200th)
      day
      following the Closing Date) or (B) the
      date
      which is within three (3) Business Days after the date on which the Commission
      informs the Company that (i) the Commission will not review the Registration
      Statement or (ii) the
      Company may request the acceleration of the effectiveness of the Registration
      Statement and the Company makes such request; provided that,
      if the
      Effectiveness Date falls on a Saturday,
      Sunday or any other day which shall be a legal holiday or a day on which the
      Commission is authorized or required by law or other government actions to
      close, the Effectiveness Date shall be the following Business Day.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    "Effectiveness
      Period"
      shall
      have the meaning set forth in Section 2.

    "Event"
      shall
      have the meaning set forth in Section 7(e).

    

    "Event
      Date"
      shall
      have the meaning set forth in Section 7(e).

    

    "Exchange
      Act"
      means
      the Securities Exchange Act of 1934, as amended.

    

    "Filing
      Date"
      means
      the thirtieth (50th)
      day
      following the Closing Date;
      provided that,
      if the
      Filing Date falls on a Saturday,
      Sunday or any other day which shall be a legal holiday or a day on which the
      Commission is authorized or required by law or other government actions to
      close, the Filing Date shall be the following Business Day.

    

      "Holder"
      or
      "Holders"
      means
      the holder or holders, as the case may be, from time to time of Registrable
      Securities.

    

      "Indemnified
      Party"
      shall
      have the meaning set forth in Section 5(c).

    

      "Indemnifying
      Party"
      shall
      have the meaning set forth in Section 5(c).

     

    "Losses"
      shall
      have the meaning set forth in Section 5(a).

    

      "Person"
      means
      an individual or a corporation, partnership, trust, incorporated or
      unincorporated association, joint venture, limited liability company, joint
      stock company, government (or an agency or political subdivision thereof) or
      other entity of any kind.

    

    "Preferred
      Stock"
      means
      shares of the Company’s Series B Convertible Preferred Stock issued to the
      Purchasers pursuant to the Purchase Agreement.

    

    "Proceeding"
      means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened.

    

    "Prospectus"
      means
      the prospectus included in the Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), as amended or supplemented
      by
      any prospectus supplement, with respect to the terms of the offering of any
      portion of the Registrable Securities covered by the Registration Statement,
      and
      all other amendments and supplements to the Prospectus, including post-effective
      amendments, and all material incorporated by reference in such
      Prospectus.

     

    
      
         

      

      
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    "Registrable
      Securities"
      (i) the
      shares of Common Stock issuable upon conversion of the Preferred Stock and
      (ii)
      the shares of Common Stock issuable upon exercise of the Warrants. 

    

    "Registration
      Statement"
      means
      the registration statements and any additional registration statements
      contemplated by Section 2, including (in each case) the Prospectus, amendments
      and supplements to such registration statement or Prospectus, including pre-
      and
      post-effective amendments, all exhibits thereto, and all material incorporated
      by reference in such registration statement.

    

    "Rule
      144"
      means
      Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

    

    "Rule
      158"
      means
      Rule 158 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

    

    "Rule
      415"
      means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

    

      "Rule
      424"
      means
      Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

    

    "Securities
      Act"
      means
      the Securities Act of 1933, as amended.

    

    "Warrants"
      means
      the separate warrants to purchase shares of Common Stock issued to the
      Purchasers pursuant to the Purchase Agreement.

    

    
      	
            	2.	
              Resale
                Registration.

            

    

    

    On
      or
      prior to the Filing Date the Company shall prepare and file with the Commission
      a "resale" Registration Statement providing for the resale of all Registrable
      Securities for an offering to be made on a continuous basis pursuant to Rule
      415. The Registration Statement shall be on Form SB-2 (except if the Company
      is
      not then eligible to register for resale the Registrable Securities on Form
      SB-2, in which case such registration shall be on another appropriate form
      in
      accordance herewith and the Securities Act and the rules promulgated
      thereunder). Such Registration Statement shall cover to the extent allowable
      under the Securities Act and the rules promulgated thereunder (including Rule
      416), such indeterminate number of additional shares of Common Stock resulting
      from stock splits, stock dividends or similar transactions with respect to
      the
      Registrable Securities. The Company shall (i) not permit any securities other
      than the Registrable Securities and the securities to be listed on Schedule
      II
      hereto
      to be included in the Registration Statement and (ii) use its best efforts
      to
      cause the Registration Statement to be declared effective under the Securities
      Act as promptly as possible after the filing thereof, but in any event prior
      to
      the Effectiveness Date, and to keep such Registration Statement continuously
      effective under the Securities Act until such date as is the earlier of (x)
      the
      date when all Registrable Securities covered by such Registration Statement
      have
      been sold or (y) the date on which the Registrable Securities may be sold
      without any restriction pursuant to Rule 144(k) as determined by the counsel
      to
      the Company pursuant to a written opinion letter, addressed to the Company's
      transfer agent to such effect (the "Effectiveness
      Period").
      The
      Company shall request that the effective time of the Registration Statement
      is
      4:00 p.m. Eastern Time on the effective date. If at any time and for any reason,
      an additional Registration Statement is required to be filed because at such
      time the actual number of shares of Common Stock into which the Preferred Stock
      is convertible and the Warrants are exercisable plus the number of shares of
      Common Stock exceeds the number of Registrable Securities remaining under the
      Registration Statement, the Company shall have twenty (20) Business Days to
      file
      such additional Registration Statement, and the Company shall use its best
      efforts to cause such additional Registration Statement to be declared effective
      by the Commission as soon as possible, but in no event later than sixty (60)
      days after filing. 

    

    
      
         

      

      
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            	3.	
              Registration
                Procedures.

            

    

    

     In
      connection with the Company's registration obligations hereunder, the Company
      shall:

     

     (a)    Prepare
      and file with the Commission on or prior to the Filing Date, a Registration
      Statement on Form SB-2 (or if the Company is not then eligible to register
      for
      resale the Registrable Securities on Form SB-2 such registration shall be on
      another appropriate form in accordance herewith and the Securities Act and
      the
      rules promulgated thereunder) in accordance with the plan of distribution as
      set
      forth on Exhibit
      A
      hereto
      and in accordance with applicable law, and cause the Registration Statement
      to
      become effective and remain effective as provided herein; provided,
      however,
      that
      not less than five (5) Business Days prior to the filing of the Registration
      Statement or any related Prospectus or any amendment or supplement thereto
      (including any document that would be incorporated therein by reference), the
      Company shall (i) furnish to the Holders, copies of all such documents proposed
      to be filed, which documents (other than those incorporated by reference) will
      be subject to the review of such Holders, and (ii) cause its officers and
      directors, counsel and independent certified public accountants to respond
      to
      such inquiries as shall be necessary to conduct a reasonable review of such
      documents. The Company shall not file the Registration Statement or any such
      Prospectus or any amendments or supplements thereto to which the Holders of
      a
      majority of the Registrable Securities shall reasonably object in writing within
      three (3) Business Days of their receipt thereof.

    

    (b)    (i)
      Prepare and file with the Commission such amendments, including post-effective
      amendments, to the Registration Statement as may be necessary to keep the
      Registration Statement continuously effective as to the applicable Registrable
      Securities for the Effectiveness Period and prepare and file with the Commission
      such additional Registration Statements as necessary in order to register for
      resale under the Securities Act all of the Registrable Securities; (ii) cause
      the related Prospectus to be amended or supplemented by any required Prospectus
      supplement, and as so supplemented or amended to be filed pursuant to Rule
      424
      (or any similar provisions then in force) promulgated under the Securities
      Act;
      (iii) respond as promptly as possible, but in no event later than ten (10)
      Business Days, to any comments received from the Commission with respect to
      the
      Registration Statement or any amendment thereto and to provide the Holders,
      within such ten (10) Business Day period, true and complete copies of all
      correspondence from and to the Commission relating to the Registration
      Statement; (iv) file the final prospectus pursuant to Rule 424 of the Securities
      Act no later than 1:00 p.m. Eastern Time on the Business Day following the
      date
      the Registration Statement is declared effective by the Commission; and (v)
      comply in all material respects with the provisions of the Securities Act and
      the Exchange Act with respect to the disposition of all Registrable Securities
      covered by the Registration Statement during the Effectiveness Period in
      accordance with the intended methods of disposition by the Holders thereof
      set
      forth in the Registration Statement as so amended or in such Prospectus as
      so
      supplemented.

    

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    (c)    Notify
      the Holders of Registrable Securities as promptly as possible (and, in the
      case
      of (i)(A) below, not less than three (3) Business Days prior to such filing,
      and
      in the case of (iii) below, on the same day of receipt by the Company of such
      notice from the Commission) and (if requested by any such Person) confirm such
      notice in writing no later than one (1) Business Day following the day (i)(A)
      when a Prospectus or any Prospectus supplement or post-effective amendment
      to
      the Registration Statement is filed; (B) when the Commission notifies the
      Company whether there will be a "review" of such Registration Statement and
      whenever the Commission comments in writing on such Registration Statement
      and
      (C) with respect to the Registration Statement or any post-effective amendment,
      when the same has become effective; (ii) of any request by the Commission or
      any
      other Federal or state governmental authority for amendments or supplements
      to
      the Registration Statement or Prospectus or for additional information; (iii)
      of
      the issuance by the Commission of any stop order suspending the effectiveness
      of
      the Registration Statement covering any or all of the Registrable Securities
      or
      the initiation or threatening of any Proceedings for that purpose; (iv) if
      at
      any time any of the representations and warranties of the Company contained
      in
      any agreement contemplated hereby ceases to be true and correct in all material
      respects; (v) of the receipt by the Company of any notification with respect
      to
      the suspension of the qualification or exemption from qualification of any
      of
      the Registrable Securities for sale in any jurisdiction, or the initiation
      or
      threatening of any Proceeding for such purpose; and (vi) of the occurrence
      of
      any event that makes any statement made in the Registration Statement or
      Prospectus or any document incorporated or deemed to be incorporated therein
      by
      reference untrue in any material respect or that requires any revisions to
      the
      Registration Statement, Prospectus or other documents so that, in the case
      of
      the Registration Statement or the Prospectus, as the case may be, it will not
      contain any untrue statement of a material fact or omit to state any material
      fact required to be stated therein or necessary to make the statements therein,
      in the light of the circumstances under which they were made, not
      misleading.

    

    (d)    Use
      its
      best efforts to avoid the issuance of, or, if issued, obtain the withdrawal
      of,
      as promptly as possible, (i) any order suspending the effectiveness of the
      Registration Statement or (ii) any suspension of the qualification (or exemption
      from qualification) of any of the Registrable Securities
      for sale in any jurisdiction.

    

    (e)    If
      requested by the Holders of a majority in interest of the Registrable Securities
      and the “Registrable Securities” as defined in the Registration Rights Agreement
      dated September 7, 2006, by and among the Company and the purchasers listed
      on
      Schedule I thereto, (i) promptly incorporate in a Prospectus supplement or
      post-effective amendment to the Registration Statement such information as
      the
      Company reasonably agrees should be included therein and (ii) make all required
      filings of such Prospectus supplement or such post-effective amendment as soon
      as practicable after the Company has received notification of the matters to
      be
      incorporated in such Prospectus supplement or post-effective
      amendment.

     

    
      
         

      

      
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    (f)    If
      requested by any Holder, furnish to such Holder, without charge, at least one
      conformed copy of each Registration Statement and each amendment thereto,
      including financial statements and schedules, all documents incorporated or
      deemed to be incorporated therein by reference, and all exhibits to the extent
      requested by such Person (including those previously furnished or incorporated
      by reference) promptly after the filing of such documents with the
      Commission.

    

    (g)    Promptly
      deliver to each Holder, without charge, as many copies of the Prospectus or
      Prospectuses (including each form of prospectus) and each amendment or
      supplement thereto as such Persons may reasonably request; and subject to the
      provisions of Sections 3(m) and 3(n), the Company hereby consents to the use
      of
      such Prospectus and each amendment or supplement thereto by each of the selling
      Holders in connection with the offering and sale of the Registrable Securities
      covered by such Prospectus and any amendment or supplement thereto.

    

    (h)    Prior
      to
      any public offering of Registrable Securities, use its best efforts to register
      or qualify or cooperate with the selling Holders in connection with the
      registration or qualification (or exemption from such registration or
      qualification) of such Registrable Securities for offer and sale under the
      securities or Blue Sky laws of such jurisdictions within the United States
      as
      any Holder requests in writing, to keep each such registration or qualification
      (or exemption therefrom) effective during the Effectiveness Period and to do
      any
      and all other acts or things necessary or advisable to enable the disposition
      in
      such jurisdictions of the Registrable Securities covered by a Registration
      Statement; provided,
      however,
      that
      the Company shall not be required to qualify generally to do business in any
      jurisdiction where it is not then so qualified or to take any action that would
      subject it to general service of process in any such jurisdiction where it
      is
      not then so subject or subject the Company to any material tax in any such
      jurisdiction where it is not then so subject.

    

    (i)    Cooperate
      with the Holders to facilitate the timely preparation and delivery of
      certificates representing Registrable Securities to be sold pursuant to a
      Registration Statement, which certificates, to the extent permitted by the
      Purchase Agreement and applicable federal and state securities laws, shall
      be
      free of all restrictive legends, and to enable such Registrable Securities
      to be
      in such denominations and registered in such names as any Holder may request
      in
      connection with any sale of Registrable Securities.

    

    (j)    Upon
      the
      occurrence of any event contemplated by Section 3(c)(vi), as promptly as
      possible, prepare a supplement or amendment, including a post-effective
      amendment, to the Registration Statement or a supplement to the related
      Prospectus or any document incorporated or deemed to be incorporated therein
      by
      reference, and file any other required document so that, as thereafter
      delivered, neither the Registration Statement nor such Prospectus will contain
      an untrue statement of a material fact or omit to state a material fact required
      to be stated therein or necessary to make the statements therein, in the light
      of the circumstances under which they were made, not misleading.

    

    (k)    Use
      its
      best efforts to cause all Registrable Securities relating to the Registration
      Statement to be listed on the OTC Bulletin Board or any other securities
      exchange, quotation system or market, if any, on which similar securities issued
      by the Company are then listed or traded as and when required pursuant to the
      Purchase Agreement.

    

    (l)    Comply
      in
      all material respects with all applicable rules and regulations of the
      Commission and make generally available to its security holders all documents
      filed or required to be filed with the Commission, including, but not limited,
      to, earning statements satisfying the provisions of Section 11(a) of the
      Securities Act and Rule 158 not later than 45 days after the end of any 12-month
      period (or 90 days after the end of any 12-month period if such period is a
      fiscal year) commencing on the first day of the first fiscal quarter of the
      Company after the effective date of the Registration Statement, which statement
      shall conform to the requirements of Rule 158.

    

    
      
         

      

      
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    (m)    The
      Company may require each selling Holder to furnish to the Company information
      regarding such Holder and the distribution of such Registrable Securities as
      is
      required by law to be disclosed in the Registration Statement, Prospectus,
      or
      any amendment or supplement thereto, and the Company may exclude from such
      registration the Registrable Securities of any such Holder who unreasonably
      fails to furnish such information within a reasonable time after receiving
      such
      request.

    

    If
      the
      Registration Statement refers to any Holder by name or otherwise as the holder
      of any securities of the Company, then such Holder shall have the right to
      require (if such reference to such Holder by name or otherwise is not required
      by the Securities Act or any similar federal statute then in force) the deletion
      of the reference to such Holder in any amendment or supplement to the
      Registration Statement filed or prepared subsequent to the time that such
      reference ceases to be required.

    

    Each
      Holder covenants and agrees that it will not sell any Registrable Securities
      under the Registration Statement until the Company has electronically filed
      the
      Prospectus as then amended or supplemented as contemplated in Section 3(g)
      and
      notice from the Company that the Registration Statement and any post-effective
      amendments thereto have become effective as contemplated by Section
      3(c).

    

    Each
      Holder agrees by its acquisition of such Registrable Securities that, upon
      receipt of a notice from the Company of the occurrence of any event of the
      kind
      described in Section 3(c)(ii), 3(c)(iii), 3(c)(iv), 3(c)(v), 3(c)(vi) or 3(n),
      such Holder will forthwith discontinue disposition of such Registrable
      Securities under the Registration Statement until such Holder's receipt of
      the
      copies of the supplemented Prospectus and/or amended Registration Statement
      contemplated by Section 3(j), or until it is advised in writing (the
      "Advice")
      by the
      Company that the use of the applicable Prospectus may be resumed, and, in either
      case, has received copies of any additional or supplemental filings that are
      incorporated or deemed to be incorporated by reference in such Prospectus or
      Registration Statement.

    

    
      
         

      

      
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    (n)    At
      any
      time following the date that the Registration Statement is declared effective
      by
      the Commission, if (i) there is material non-public information regarding the
      Company which the Company's Board of Directors (the "Board")
      determines not to be in the Company's best interest to disclose and which the
      Company is not otherwise required to disclose, (ii) there is a significant
      business opportunity (including, but not limited to, the acquisition or
      disposition of assets (other than in the ordinary course of business) or any
      merger, consolidation, tender offer or other similar transaction) available
      to
      the Company which the Board determines not to be in the Company's best interest
      to disclose, or (iii) the Company is required to file a post-effective amendment
      to the Registration Statement to incorporate the Company’s quarterly and annual
      reports and audited financial statements on Forms 10-QSB and 10-KSB, then the
      Company may postpone or suspend effectiveness of a registration statement for
      a
      period not to exceed twenty (20) consecutive days; provided that the Company
      may
      not suspend effectiveness of a registration statement under this Section 3(n)
      for more than forty-five (45) days in the aggregate during any three hundred
      sixty (360) day period; provided,
      however,
      that no
      such suspension shall be permitted for consecutive twenty (20) day periods
      arising out of the same set of facts, circumstances or
      transactions.

    

    
      	
            	4.	
              Registration
                Expenses.

            

    

    

    All
      fees
      and expenses incident to the performance of or compliance with this Agreement
      by
      the Company, except as and to the extent specified in this Section 4, shall
      be
      borne by the Company whether or not the Registration Statement is filed or
      becomes effective and whether or not any Registrable Securities are sold
      pursuant to the Registration Statement. The fees and expenses referred to in
      the
      foregoing sentence shall include, without limitation, (i) all registration
      and
      filing fees (including, without limitation, fees and expenses (A) with respect
      to filings required to be made with the OTC Bulletin Board and each other
      securities exchange or market on which Registrable Securities are required
      hereunder to be listed, if any, (B) with respect to filing fees required to
      be
      paid to the National Association of Securities Dealers, Inc. and the NASD
      Regulation, Inc. and (C) in compliance with state securities or Blue Sky laws
      (including, without limitation, fees and disbursements of counsel for the
      Holders in connection with Blue Sky qualifications of the Registrable Securities
      and determination of the eligibility of the Registrable Securities for
      investment under the laws of such jurisdictions as the Holders of a majority
      of
      Registrable Securities may designate)), (ii) printing expenses (including,
      without limitation, expenses of printing certificates for Registrable Securities
      and of printing prospectuses if the printing of prospectuses is requested by
      the
      holders of a majority of the Registrable Securities included in the Registration
      Statement), (iii) messenger, telephone and delivery expenses, (iv) Securities
      Act liability insurance, if the Company so desires such insurance, and (v)
      fees
      and expenses of all other Persons retained by the Company in connection with
      the
      consummation of the transactions contemplated by this Agreement, including,
      without limitation, the Company's independent public accountants (including
      the
      expenses of any comfort letters or costs associated with the delivery by
      independent public accountants of a comfort letter or comfort letters). In
      addition, the Company shall be responsible for all of its internal expenses
      incurred in connection with the consummation of the transactions contemplated
      by
      this Agreement (including, without limitation, all salaries and expenses of
      its
      officers and employees performing legal or accounting duties), the expense
      of
      any annual audit, the fees and expenses incurred in connection with the listing
      of the Registrable Securities on any securities exchange as required
      hereunder.

    

    
      
         

      

      
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            	5.	
              Indemnification.

            

    

    

    (a)    Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless each Holder, the officers, directors, managers, partners, members,
      shareholders, agents, brokers, investment advisors and employees of each of
      them, each Person who controls any such Holder (within the meaning of Section
      15
      of the Securities Act or Section 20 of the Exchange Act) and the officers,
      directors, agents and employees of each such controlling Person, to the fullest
      extent permitted by applicable law, from and against any and all losses, claims,
      damages, liabilities, costs (including, without limitation, costs of preparation
      and attorneys' fees) and expenses (collectively, "Losses"),
      as
      incurred, arising out of or relating to any violation of securities laws or
      untrue or alleged untrue statement of a material fact contained in the
      Registration Statement, any Prospectus or any form of prospectus or in any
      amendment or supplement thereto or in any preliminary prospectus, or arising
      out
      of or relating to any omission or alleged omission of a material fact required
      to be stated therein or necessary to make the statements therein (in the case
      of
      any Prospectus or form of prospectus or supplement thereto, in the light of
      the
      circumstances under which they were made) not misleading, except to the extent,
      but only to the extent, that such untrue statements or omissions are based
      solely upon information regarding such Holder or such other Indemnified Party
      furnished in writing to the Company by such Holder expressly for use therein.
      The Company shall notify the Holders promptly of the institution, threat or
      assertion of any Proceeding of which the Company is aware in connection with
      the
      transactions contemplated by this Agreement.

    

    (b)    Indemnification
      by Holders.
      Each
      Holder shall, severally and not jointly, indemnify and hold harmless the
      Company, its directors, officers, agents and employees, each Person who controls
      the Company (within the meaning of Section 15 of the Securities Act and Section
      20 of the Exchange Act), and the directors, officers, agents and employees
      of
      such controlling Persons, to the fullest extent permitted by applicable law,
      from and against all Losses (as determined by a court of competent jurisdiction
      in a final judgment not subject to appeal or review), as incurred, arising
      solely out of or based solely upon any untrue statement of a material fact
      contained in the Registration Statement, any Prospectus, or any form of
      prospectus, or arising solely out of or based solely upon any omission of a
      material fact required to be stated therein or necessary to make the statements
      therein (in the case of any Prospectus or form of prospectus or supplement
      thereto, in the light of the circumstances under which they were made) not
      misleading, to the extent, but only to the extent, that such untrue statement
      or
      omission is contained in any information so furnished in writing by such Holder
      or other Indemnifying Party to the Company specifically for inclusion in the
      Registration Statement or such Prospectus. Notwithstanding anything to the
      contrary contained herein, each Holder shall be liable under this Section 5(b)
      for only that amount as does not exceed the net proceeds to such Holder as
      a
      result of the sale of Registrable Securities pursuant to such Registration
      Statement.

    

    (c)    Conduct
      of Indemnification Proceedings.
      If any
      Proceeding shall be brought or asserted against any Person entitled to indemnity
      hereunder (an "Indemnified
      Party"),
      such
      Indemnified Party promptly shall notify the Person from whom indemnity is sought
      (the "Indemnifying
      Party)
      in
      writing, and the Indemnifying Party shall be entitled to assume the defense
      thereof, including the employment of counsel reasonably satisfactory to the
      Indemnified Party and the payment of all fees and expenses incurred in
      connection with defense thereof; provided, that the failure of any Indemnified
      Party to give such notice shall not relieve the Indemnifying Party of its
      obligations or liabilities pursuant to this Agreement, except (and only) to
      the
      extent that it shall be finally determined by a court of competent jurisdiction
      (which determination is not subject to appeal or further review) that such
      failure shall have proximately and materially adversely prejudiced the
      Indemnifying Party.

    

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
      expenses; or (2) the Indemnifying Party shall have failed promptly to assume
      the
      defense of such Proceeding and to employ counsel reasonably satisfactory to
      such
      Indemnified Party in any such Proceeding; or (3) the named parties to any such
      Proceeding (including any impleaded parties) include both such Indemnified
      Party
      and the Indemnifying Party, and such parties shall have been advised by counsel
      that a conflict of interest is likely to exist if the same counsel were to
      represent such Indemnified Party and the Indemnifying Party (in which case,
      if
      such Indemnified Party notifies the Indemnifying Party in writing that it elects
      to employ separate counsel at the expense of the Indemnifying Party, the
      Indemnifying Party shall not have the right to assume the defense thereof and
      such counsel shall be at the expense of the Indemnifying Party). The
      Indemnifying Party shall not be liable for any settlement of any such Proceeding
      effected without its written consent, which consent shall not be unreasonably
      withheld or delayed. No Indemnifying Party shall, without the prior written
      consent of the Indemnified Party, effect any settlement of any pending or
      threatened Proceeding in respect of which any Indemnified Party is a party
      and
      indemnity has been sought hereunder, unless such settlement includes an
      unconditional release of such Indemnified Party from all liability on claims
      that are the subject matter of such Proceeding.

    

    All
      fees
      and expenses of the Indemnified Party (including reasonable fees and expenses
      to
      the extent incurred in connection with investigating or preparing to defend
      such
      Proceeding in a manner not inconsistent with this Section) shall be paid to
      the
      Indemnified Party, as incurred, within ten (10) Business Days of written notice
      thereof to the Indemnifying Party (regardless of whether it is ultimately
      determined that an Indemnified Party is not entitled to indemnification
      hereunder; provided,
      that the Indemnified Party shall reimburse all such fees and expenses to the
      extent it is finally judicially determined that such Indemnified Party is not
      entitled to indemnification hereunder).

    

    (d)    Contribution.
      If a
      claim for indemnification under Section 5(a) or 5(b) is due but unavailable
      to
      an Indemnified Party because of a failure or refusal of a governmental authority
      to enforce such indemnification in accordance with its terms (by reason of
      public policy or otherwise), then each Indemnifying Party, in lieu of
      indemnifying such Indemnified Party, shall contribute to the amount paid or
      payable by such Indemnified Party as a result of such Losses, in such proportion
      as is appropriate to reflect the relative benefits received by the Indemnifying
      Party on the one hand and the Indemnified Party on the other from the offering
      of the Preferred Stock and the Warrants. If, but only if, the allocation
      provided by the foregoing sentence is not permitted by applicable law, the
      allocation of contribution shall be made in such proportion as is appropriate
      to
      reflect not only the relative benefits referred to in the foregoing sentence
      but
      also the relative fault, as applicable, of the Indemnifying Party and
      Indemnified Party in connection with the actions, statements or omissions that
      resulted in such Losses as well as any other relevant equitable considerations.
      The relative fault of such Indemnifying Party and Indemnified Party shall be
      determined by reference to, among other things, whether any action in question,
      including any untrue or alleged untrue statement of a material fact or omission
      or alleged omission of a material fact, has been taken or made by, or relates
      to
      information supplied by, such Indemnifying Party or Indemnified Party, and
      the parties'
      relative intent, knowledge, access to information and opportunity to correct
      or
      prevent such action, statement or omission. The amount paid or payable by a
      party as a result of any Losses shall be deemed to include, subject to the
      limitations set forth in Section 5(c), any reasonable attorneys' or other
      reasonable fees or expenses incurred by such party in connection with any
      Proceeding to the extent such party would have been indemnified for such fees
      or
      expenses if the indemnification provided for in this Section was available
      to
      such party in accordance with its terms. In no event shall any selling Holder
      be
      required to contribute an amount under this Section 5(d) in excess of the net
      proceeds received by such Holder upon sale of such Holder’s Registrable
      Securities pursuant to the Registration Statement giving rise to such
      contribution obligation.

    

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding paragraph. No Person
      guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
      of
      the Securities Act) shall be entitled to contribution from any Person who was
      not guilty of such fraudulent misrepresentation. The indemnity and contribution
      agreements contained in this Section are in addition to any liability that
      the
      Indemnifying Parties may have to the Indemnified Parties pursuant to the law.
      

     

    
      	
            	6.	
              Rule
                144.

            

    

    

    As
      long
      as any Holder owns Preferred Stock, Warrants or Registrable Securities, the
      Company covenants to timely file (or obtain extensions in respect thereof and
      file within the applicable grace period) all reports required to be filed by
      the
      Company after the date hereof pursuant to Section 13(a) or 15(d) of the Exchange
      Act. As long as any Holder owns Preferred Stock, Warrants or Registrable
      Securities, if the Company is not required to file reports pursuant to Section
      13(a) or 15(d) of the Exchange Act, it will prepare and furnish to the Holders
      and make publicly available in accordance with Rule 144(c) promulgated under
      the
      Securities Act annual and quarterly financial statements, together with a
      discussion and analysis of such financial statements in form and substance
      substantially similar to those that would otherwise be required to be included
      in reports required by Section 13(a) or 15(d) of the Exchange Act, as well
      as
      any other information required thereby, in the time period that such filings
      would have been required to have been made under the Exchange Act. The Company
      further covenants that it will take such further action as any Holder may
      reasonably request, all to the extent required from time to time to enable
      such
      Person to sell Conversion Shares and Warrant Shares without registration under
      the Securities Act within the limitation of the exemptions provided by Rule
      144
      promulgated under the Securities Act, including providing any legal opinions
      relating to such sale pursuant to Rule 144. Upon the request of any Holder,
      the
      Company shall deliver to such Holder a written certification of a duly
      authorized officer as to whether it has complied with such
      requirements.

    

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

       

    

    
      	
            	7.	
              Miscellaneous.

            

    

    

    (a)    Remedies.
      In the
      event of a breach by the Company or by a Holder, of any of their obligations
      under this Agreement, such Holder or the Company, as the case may be, in
      addition to being entitled to exercise all rights granted by law and under
      this
      Agreement, including recovery of damages, will be entitled to specific
      performance of its rights under this Agreement.
      The Company and each Holder agree that monetary damages would not
      provide adequate
      compensation for any losses incurred by reason of a breach by it of any of
      the
      provisions of this Agreement and hereby further agrees that, in the event of
      any
      action for specific performance in respect of such breach, it shall waive the
      defense that a remedy at law would be adequate.

    

    (b)    No
      Inconsistent Agreements.
      Except
      for the Initial Transaction Documents, neither the Company nor any of its
      subsidiaries has, as of the date hereof entered into and currently in effect,
      nor shall the Company or any of its subsidiaries, on or after the date of this
      Agreement, enter into any agreement with respect to its securities that is
      inconsistent with the rights granted to the Holders in this Agreement or
      otherwise conflicts with the provisions hereof. Except for the Initial
      Transaction Documents and/or as disclosed in Schedule
      2.1(c)
      of the
      Purchase Agreement or Schedule
      II
      hereto,
      neither the Company nor any of its subsidiaries has previously entered into
      any
      agreement currently in effect granting any registration rights with respect
      to
      any of its securities to any Person. 

    

    (c)    No
      Piggyback on Registrations.
      Neither
      the Company nor any of its security holders (other than the Holders in such
      capacity pursuant hereto or as disclosed on Schedule
      2.1(c)
      of the
      Purchase Agreement, Schedule
      II
      hereto,
      or the Initial Transaction Documents) may include securities of the Company
      in
      the Registration Statement, and the Company shall not after the date hereof
      enter into any agreement providing such right to any of its securityholders
      (other than the Holders in such capacity pursuant hereto or as disclosed on
      Schedule
      2.1(c)
      of the
      Purchase Agreement, Schedule
      II
      hereto,
      or the Initial Transaction Documents), unless the right so granted is subject
      in
      all respects to the prior rights in full of the Holders set forth herein, and
      is
      not otherwise in conflict with the provisions of this Agreement.

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     

    (d)    Piggy-Back
      Registrations.
      If at
      any time when there is not an effective Registration Statement providing for
      the
      resale of the Registrable Securities, the Company shall determine to prepare
      and
      file with the Commission a registration statement relating to an offering for
      its own account or the account of others under the Securities Act of any of
      its
      equity securities, other than on Form S-4 or Form S-8 (each as promulgated
      under
      the Securities Act) or their then equivalents relating to equity securities
      to
      be issued solely in connection with any acquisition of any entity or business
      or
      equity securities issuable in connection with stock option or other employee
      benefit plans, the Company shall send to each holder of Registrable Securities
      written notice of such determination and, if within thirty (30) days after
      receipt of such notice, or within such shorter period of time as may be
      specified by the Company in such written notice as may be necessary for the
      Company to comply with its obligations with respect to the timing of the filing
      of such registration statement, any such holder shall so request in writing
      (which request shall specify the Registrable Securities intended to be disposed
      of by the Purchasers), the Company will cause the registration under the
      Securities Act of all Registrable Securities which the Company has been so
      requested to register by the holder, to the extent requisite to permit the
      disposition of the Registrable Securities so to be registered, provided that
      if
      at any time after giving written notice of its intention to register any
      securities and prior to the effective date of the registration statement filed
      in connection with such registration, the Company shall determine for any reason
      not to register or to delay registration of such securities, the Company may,
      at
      its election, give written notice of such determination to such holder and,
      thereupon, (i) in the case of a determination not to register, shall be relieved
      of its obligation to register any Registrable Securities in connection with
      such
      registration (but not from its obligation to pay expenses in accordance with
      Section 4 hereof), and (ii) in the case of a determination to delay registering,
      shall be permitted to delay registering any Registrable Securities being
      registered pursuant to this Section 7(d) for the same period as the delay in
      registering such other securities. The Company shall include in such
      registration statement all or any part of such Registrable Securities such
      holder requests to be registered; provided,
      however,
      that
      the Company shall not be required to register any Registrable Securities
      pursuant to this Section 7(d) that are eligible for sale pursuant to Rule 144(k)
      of the Securities Act. In the case of an underwritten public offering, if the
      managing underwriter(s) or underwriter(s) should reasonably object to the
      inclusion of the Registrable Securities in such registration statement, then
      if
      the Company after consultation with the managing underwriter should reasonably
      determine that the inclusion of such Registrable Securities would materially
      adversely affect the offering contemplated in such registration statement,
      and
      based on such determination recommends inclusion in such registration statement
      of fewer or none of the Registrable Securities of the Holders, then (x) the
      number of Registrable Securities of the Holders included in such registration
      statement shall be reduced pro-rata among such Holders (based
      upon the number of Registrable Securities requested to be included in the
      registration), if the Company after consultation with the underwriter(s)
      recommends the inclusion of fewer Registrable Securities, or (y) none of the
      Registrable Securities of the Holders shall be included in such registration
      statement, if the Company after consultation with the underwriter(s) recommends
      the inclusion of none of such Registrable Securities; provided,
      however,
      that if
      securities are being offered for the account of other persons or entities as
      well as the Company, such reduction shall not represent a greater fraction
      of
      the number of Registrable securities intended to be offered by the Holders
      than
      the fraction of similar reductions imposed on such other persons or entities
      (other than the Company).

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

     

    (e)    Failure
      to File Registration Statement and Other Events.
      The
      Company and the Purchasers agree that the Holders will suffer damages if the
      Registration Statement is not filed on or prior to the Filing Date and not
      declared effective by the Commission on or prior to the Effectiveness Date
      and
      maintained in the manner contemplated herein during the Effectiveness Period
      or
      if certain other events occur. The Company and the Holders further agree that
      it
      would not be feasible to ascertain the extent of such damages with precision.
      Accordingly, if (A) the Registration Statement is not filed on or prior to
      the
      Filing Date, or (B) the Registration Statement is not declared effective by
      the
      Commission on or prior to the Effectiveness Date (or in the event an additional
      Registration Statement is filed because the actual number of shares of Common
      Stock into which the Warrants are exercisable exceeds the number of shares
      of
      Common Stock initially registered is not filed and declared effective with
      the
      time periods set forth in Section 2), or (C) the Company fails to file with
      the
      Commission a request for acceleration in accordance with Rule 461 promulgated
      under the Securities Act within three (3) Business Days of the date that the
      Company is notified (orally or in writing, whichever is earlier) by the
      Commission that a Registration Statement will not be "reviewed," or not subject
      to further review, or (D) the Registration Statement is filed with and declared
      effective by the Commission but thereafter ceases to be effective as to all
      Registrable Securities at any time prior to the expiration of the Effectiveness
      Period, without being succeeded promptly by a subsequent Registration Statement
      filed with and declared effective by the Commission in accordance with Section
      2
      hereof, or (E) the Company has breached Section 3(n), or (F) trading in the
      Common Stock shall be suspended or if the Common Stock is delisted from or
      no
      longer quoted on the OTC Bulletin Board (or other principal exchange on which
      the Common Stock is listed or traded) for any reason for more than three (3)
      Business Days in the aggregate (any such failure or breach being referred to
      as
      an "Event,"
      and
      for purposes of clauses (A) and (B) the date on which such Event occurs, or
      for
      purposes of clause (C) the date on which such three (3) Business Day period
      is
      exceeded, or for purposes of clause (D) after more than fifteen (15) Business
      Days, or for purposes of clause (F) the date on which such three (3) Business
      Day period is exceeded, being referred to as "Event
      Date"),
      the
      Company shall pay an amount in cash as liquidated damages to each Holder equal
      to two percent (2%) for each calendar month (prorated for shorter periods)
      of
      the Holder’s initial investment in the Preferred Stock from the Event Date until
      the applicable Event is cured; provided,
      however,
      that in
      no event shall the amount of liquidated damages payable at any time and from
      time to time to any Holder pursuant to this Section 7(e) exceed an aggregate
      of
      twenty percent (20%) of the amount of the Holder’s initial investment in the
      Preferred Stock. Notwithstanding anything to the contrary in this paragraph
      (e),
      if (i) any of the Events described in clauses (A), (B), (C), (D) or (F) shall
      have occurred, (II) on or prior to the applicable Event Date, the Company shall
      have exercised its rights under Section 3(n) hereof and (III) the postponement
      or suspension permitted pursuant to such Section 3(n) shall remain effective
      as
      of such applicable Event Date, then the applicable Event Date shall be deemed
      instead to occur on the second Business Day following the termination of such
      postponement or suspension. Liquidated damages payable by the Company pursuant
      to this Section 7(e) shall be payable on the first (1st)
      Business Day of each thirty (30) day period following the Event Date.
      Notwithstanding anything to the contrary contained herein, in no event shall
      any
      liquidated damages be payable with respect to the Warrants or the Warrant
      Shares.

    

    (f)    Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given, unless the same shall be in writing
      and
      signed by the Company and the Holders of a majority of the Registrable
      Securities outstanding.

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

     

    (g)    Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be in writing and shall be deemed given and effective
      on the earlier of (i) the date of transmission, if such notice or communication
      is delivered via facsimile at the facsimile telephone number specified for
      notice prior to 5:00 p.m., New York City time, on a Business Day, (ii) the
      Business Day after the date of transmission, if such notice or communication
      is
      delivered via facsimile at the facsimile telephone number specified for notice
      later than 5:00 p.m., New York City time, on any date and earlier than 11:59
      p.m., New York City time, on such date, (iii) the Business Day following the
      date of mailing, if sent by overnight delivery by nationally recognized
      overnight courier service or (iv) actual receipt by the party to whom such
      notice is required to be given. The addresses for such communications shall
      be
      with respect to each Holder at its address set forth under its name on
Schedule
      I
      attached
      hereto with copies to its legal counsel named therein, or with respect to the
      Company, addressed to:

    

    c/o
      Beijing Zhong Ran Wei Ye Gas Co., Ltd. 

    N0.18
      Zhong Guan Cun Dong St.

    Haidian
      District

    Beijing,
      China

    Attention:
      Chen Fang

    Tel.
      No.:
      011-86-10-82600527

    Fax
      No.:
      011-010-82600042

    

    with
      copies (which copies 

    shall
      not
      constitute notice 

    to
      the
      Company) to:   GUZOV
      OFSINK, LLC

    600
      Madison Avenue, 14th Floor

    New
      York,
      New York 10022

    Attention:
      Darren Ofsink

    Tel.
      No.:
      (212) 371-8008, ext. 127

    Fax
      No.:
(212)
      688-7273

    

    or
      to
      such other address or addresses or facsimile number or numbers as any such
      party
      may most recently have designated in writing to the other parties hereto by
      such
      notice.

    

    (h)    Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and permitted assigns and shall inure to the benefit of each
      Holder and its successors and assigns. The Company may not assign this Agreement
      or any of its rights or obligations hereunder without the prior written consent
      of each Holder. Each Purchaser may assign its rights hereunder in the manner
      and
      to the Persons as permitted under the Purchase Agreement.

    

    (i)    Assignment
      of Registration Rights.
      The
      rights of each Holder hereunder, including the right to have the Company
      register for resale Registrable Securities in accordance with the terms of
      this
      Agreement, shall be automatically assignable by each Holder to any Person of
      all
      or a portion of
      the
      Preferred Stock or
      Registrable Securities if: (i) the Holder agrees in writing with the transferee
      or assignee to assign such rights, and a copy of such agreement is furnished
      to
      the Company within a reasonable time after such assignment, (ii) the Company
      is,
      within a reasonable time after such transfer or assignment, furnished with
      written notice of (a) the name and address of such transferee or assignee,
      and
      (b) the securities with respect to which such registration rights are being
      transferred or assigned, (iii) following such transfer or assignment the further
      disposition of such securities by the transferee or assignees is restricted
      under the Securities Act and applicable state securities laws, (iv) at or before
      the time the Company receives the written notice contemplated by clause (ii)
      of
      this Section, the transferee or assignee agrees in writing with the Company
      to
      be bound by all of the provisions of this Agreement, and (v) such transfer
      shall
      have been made in accordance with the applicable requirements of the Purchase
      Agreement. The rights to assignment shall apply to the Holders (and to
      subsequent) successors and assigns. 

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

     

    (j)    Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement and shall become effective when
      counterparts have been signed by each party and delivered to the other parties
      hereto, it being understood that all parties need not sign the same counterpart.
      In the event that any signature is delivered by facsimile transmission, such
      signature shall create a valid binding obligation of the party executing (or
      on
      whose behalf such signature is executed) the same with the same force and effect
      as if such facsimile signature were the original thereof.

    

    (k)    Governing
      Law; Jurisdiction.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of New York, without giving effect to any of the conflicts
      of
      law principles which would result in the application of the substantive law
      of
      another jurisdiction. This Agreement shall not be interpreted or construed
      with
      any presumption against the party causing this Agreement to be drafted. The
      Company and the Holders agree that venue for any dispute arising under this
      Agreement will lie exclusively in the state or federal courts located in New
      York County, New York, and the parties irrevocably waive any right to raise
      forum
      non conveniens
      or any
      other argument that New York is not the proper venue. The Company and the
      Holders irrevocably consent to personal jurisdiction in the state and federal
      courts of the state of New York. The Company and the Holders consent to process
      being served in any such suit, action or proceeding by mailing a copy thereof
      to
      such party at the address in effect for notices to it under this Agreement
      and
      agrees that such service shall constitute good and sufficient service of process
      and notice thereof. Nothing in this Section 7(k) shall affect or limit any
      right
      to serve process in any other manner permitted by law. The Company and the
      Holders hereby agree that the prevailing party in any suit, action or proceeding
      arising out of or relating to this Agreement or the Purchase Agreement, shall
      be
      entitled to reimbursement for reasonable legal fees from the non-prevailing
      party. The parties hereby waive all rights to a trial by jury.

    

    (l)    Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any remedies
      provided by law.

    

    (m)    Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held to be
      invalid, illegal, void or unenforceable in any respect, the remainder of the
      terms, provisions, covenants and restrictions set forth herein shall remain
      in
      full force and effect and shall in no way be affected, impaired or invalidated,
      and the parties hereto shall use their reasonable efforts to find and employ
      an
      alternative means to achieve the same or substantially the same result as that
      contemplated by such term, provision, covenant or restriction. It is hereby
      stipulated and declared to
      be the
      intention of the parties that they would have executed the remaining terms,
      provisions, covenants and restrictions without including any of such that may
      be
      hereafter declared invalid, illegal, void or unenforceable.

    

    (n)    Headings.
      The
      headings herein are for convenience only, do not constitute a part of this
      Agreement and shall not be deemed to limit or affect any of the provisions
      hereof.

    

    (o)    Shares
      Held by the Company and its Affiliates.
      Whenever the consent or approval of Holders of a specified percentage of
      Registrable Securities is required hereunder, Registrable Securities held by
      the
      Company or its Affiliates (other than any Holder or transferees or successors
      or
      assigns thereof if such Holder is deemed to be an Affiliate solely by reason
      of
      its holdings of such Registrable Securities) shall not be counted in determining
      whether such consent or approval was given by the Holders of such required
      percentage.

    

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

     

    (p)    Independent
      Nature of Purchasers.
      The
      Company acknowledges that the obligations of each Purchaser under the
      Transaction Documents are several and not joint with the obligations of any
      other Purchaser, and no Purchaser shall be responsible in any way for the
      performance of the obligations of any other Purchaser under the Transaction
      Documents. The Company acknowledges that the decision of each Purchaser to
      purchase Securities pursuant to the Purchase Agreement has been made by such
      Purchaser independently of any other Purchaser and independently of any
      information, materials, statements or opinions as to the business, affairs,
      operations, assets, properties, liabilities, results of operations, condition
      (financial or otherwise) or prospects of the Company or of its Subsidiaries
      which may have made or given by any other Purchaser or by any agent or employee
      of any other Purchaser, and no Purchaser or any of its agents or employees
      shall
      have any liability to any Purchaser (or any other person) relating to or arising
      from any such information, materials, statements or opinions. The Company
      acknowledges that nothing contained herein, or in any Transaction Document,
      and
      no action taken by any Purchaser pursuant hereto or thereto (including, but
      not
      limited to, the (i) inclusion of a Purchaser in the Registration Statement
      and
      (ii) review by, and consent to, such Registration Statement by a Purchaser)
      shall be deemed to constitute the Purchasers as a partnership, an association,
      a
      joint venture or any other kind of entity, or create a presumption that the
      Purchasers are in any way acting in concert or as a group with respect to such
      obligations or the transactions contemplated by the Transaction Documents.
      The
      Company acknowledges that each Purchaser shall be entitled to independently
      protect and enforce its rights, including without limitation, the rights arising
      out of this Agreement or out of the other Transaction Documents, and it shall
      not be necessary for any other Purchaser to be joined as an additional party
      in
      any proceeding for such purpose. The Company acknowledges that for reasons
      of
      administrative convenience only, the Transaction Documents have been prepared
      by
      counsel for  one
      of
      the Purchasers and such counsel does not represent the other Purchasers and
      the
      other Purchasers
      have retained their own individual counsel with respect to the transactions
      contemplated hereby.  The Company acknowledges that it has elected to
      provide all Purchasers with the same terms and Transaction Documents for the
      convenience of the Company and not because it was required or requested to
      do so
      by the Purchasers. 

    

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Registration Rights
      Agreement to be duly executed by their respective authorized persons as of
      the
      date first indicated above.

     

    
      	 	 	 
	 	DOLCE
              VENTURES, INC. 
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:

              Title:
                

            
	 	 

    

    
      	 	 	 
	 	PURCHASERS:
	 	 
	 	
              Name
                of Purchaser: 

            
	 
 	 
 	 
 
	 	By:  	 
	
               

            	
              
Name:

              Title:
                

            
	 	 
              

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

     

    Schedule
      I

    List
      of Purchasers 

    

      
        	
                Names
                  and Addresses

              	
                Number
                  of Preferred Shares

              	
                Dollar
                  Amount of

              
	
                of
                  Purchasers

              	
                & Warrants
                  Purchased

              	
                Investment

              
	 	 	 
	 	
                 

              	 
	
                Vision
                  Opportunity Master Fund, Ltd.

              	
                Preferred
                  Shares: 729,927

              	
                $2,000,000

              
	
                20
                  W 55th St., 5th floor 

              	
                Series
                  A Warrants: 729,927

              	 
	
                New
                  York, NY 10019

              	
                Series
                  B Warrants: 364,964

              	 
	
                Tax
                  ID: 27-0120759

              	
                Series
                  J Warrants: 664,452

              	 
	
                Series
                  C Warrants: 664,452

              	 	 
	
                Series
                  D Warrants: 332,226

              	 	 
	 	 	 
	
                Nite
                  Capital LP

              	
                Preferred
                  Shares:  127,737 

              	
                $350,000

              
	
                100
                  East Cook Avenue

              	
                Series
                  A Warrants: 127,737

              	 
	
                Suite
                  201

              	
                Series
                  B Warrants: 63,869

              	 
	
                Libertyville,
                  IL 60048

              	
                Series
                  J Warrants: 116,279

              	 
	
                TAX
                  ID: 20-1487251

              	
                Series
                  C Warrants: 116,279

              	 
	
                Series
                  D Warrants: 58,140

              	 	 
	 	 	 
	
                Ijaz
                  Malik

              	
                Preferred
                  Shares:  20,000 

              	
                $54,800

              
	
                Share
                  number: 20,000 shares

              	
                Series
                  A Warrants: 20,000

              	 
	
                Ss#
                  080 50 5823

              	
                Series
                  B Warrants: 10,000

              	 
	
                58
                  west 58 street

              	
                Series
                  J Warrants: 18,206

              	 
	
                New
                  York NY 10019

              	
                Series
                  C Warrants: 18,206

              	 
	
                Series
                  D Warrants: 9,103

              	 	 

      

       

    

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

     

    Schedule
      II

    Securities
      Permitted to be Included on Registration Statement 

    

    [SEE
      ATTACHED SPREADSHEET]

     

    
      
         

      

      
        -20-

        
          

        

      

      
         

      

    

     

    Exhibit
      A

    Plan
      of Distribution

     

    The
      selling security holders and any of their pledgees, donees, assignees and
      successors-in-interest may, from time to time, sell any or all of their shares
      of common stock being offered under this prospectus on any stock exchange,
      market or trading facility on which shares of our common stock are traded or
      in
      private transactions. These sales may be at fixed or negotiated prices. The
      selling security holders may use any one or more of the following methods when
      disposing of shares:

     

    
      	 	
              ·

            	
              ordinary
                brokerage transactions and transactions in which the broker-dealer
                solicits purchasers;

            

    

     

    
      	 	
              ·

            	
              block
                trades in which the broker-dealer will attempt to sell the shares
                as agent
                but may position and resell a portion of the block as principal to
                facilitate the transaction;

            

    

     

    
      	 	
              ·

            	
              purchases
                by a broker-dealer as principal and resales by the broker-dealer
                for its
                account;

            

    

     

    
      	 	
              ·

            	
              an
                exchange distribution in accordance with the rules of the applicable
                exchange;

            

    

     

    
      	 	
              ·

            	
              privately
                negotiated transactions;

            

    

     

    
      	 	
              ·

            	
              to
                cover short sales made after the date that the registration statement
                of
                which this prospectus is a part is declared effective by the
                Commission;

            

    

     

    
      	 	
              ·

            	
              broker-dealers
                may agree with the selling security holders to sell a specified number
                of
                such shares at a stipulated price per
                share;

            

    

     

    
      	 	
              ·

            	
              a
                combination of any of these methods of sale;
                and

            

    

     

    
      	 	
              ·

            	
              any
                other method permitted pursuant to applicable
                law.

            

    

     

    The
      shares may also be sold under Rule 144 under the Securities Act of 1933, as
      amended (“Securities Act”), if available, rather than under this prospectus. The
      selling security holders have the sole and absolute discretion not to accept
      any
      purchase offer or make any sale of shares if they deem the purchase price to
      be
      unsatisfactory at any particular time.

     

    The
      selling security holders may pledge their shares to their brokers under the
      margin provisions of customer agreements. If a selling security holder defaults
      on a margin loan, the broker may, from time to time, offer and sell the pledged
      shares.

     

    Broker-dealers
      engaged by the selling security holders may arrange for other broker-dealers
      to
      participate in sales. Broker-dealers may receive commissions or discounts from
      the selling security holders (or, if any broker-dealer acts as agent for the
      purchaser of shares, from the purchaser) in amounts to be negotiated, which
      commissions as to a particular broker or dealer may be in excess of customary
      commissions to the extent permitted by applicable law.

     

    
      
         

      

      
        -21-

        
          

        

      

      
         

      

    

     

    If
      sales
      of shares offered under this prospectus are made to broker-dealers as
      principals, we would be required to file a post-effective amendment to the
      registration statement of which this prospectus is a part. In the post-effective
      amendment, we would be required to disclose the names of any participating
      broker-dealers and the compensation arrangements relating to such
      sales.

     

    The
      selling security holders and any broker-dealers or agents that are involved
      in
      selling the shares offered under this prospectus may be deemed to be
“underwriters” within the meaning of the Securities Act in connection with these
      sales. Commissions received by these broker-dealers or agents and any profit
      on
      the resale of the shares purchased by them may be deemed to be underwriting
      commissions or discounts under the Securities Act. Any broker-dealers or agents
      that are deemed to be underwriters may not sell shares offered under this
      prospectus unless and until we set forth the names of the underwriters and
      the
      material details of their underwriting arrangements in a supplement to this
      prospectus or, if required, in a replacement prospectus included in a
      post-effective amendment to the registration statement of which this prospectus
      is a part.

     

    The
      selling security holders and any other persons participating in the sale or
      distribution of the shares offered under this prospectus will be subject to
      applicable provisions of the Exchange Act, and the rules and regulations under
      that act, including Regulation M. These provisions may restrict activities
      of,
      and limit the timing of purchases and sales of any of the shares by, the selling
      security holders or any other person. Furthermore, under Regulation M, persons
      engaged in a distribution of securities are prohibited from simultaneously
      engaging in market making and other activities with respect to those securities
      for a specified period of time prior to the commencement of such distributions,
      subject to specified exceptions or exemptions. All of these limitations may
      affect the marketability of the shares.

     

    If
      any of
      the shares of common stock offered for sale pursuant to this prospectus are
      transferred other than pursuant to a sale under this prospectus, then subsequent
      holders could not use this prospectus until a post-effective amendment or
      prospectus supplement is filed, naming such holders. We offer no assurance
      as to
      whether any of the selling security holders will sell all or any portion of
      the
      shares offered under this prospectus.

     

    We
      have
      agreed to pay all fees and expenses we incur incident to the registration of
      the
      shares being offered under this prospectus. However, each selling security
      holder and purchaser is responsible for paying any discounts, commissions and
      similar selling expenses they incur. 

     

    We
      and
      the selling security holders have agreed to indemnify one another against
      certain losses, damages and liabilities arising in connection with this
      prospectus, including liabilities under the Securities Act.

     

    
      
         

      

      
        -22-EXHIBIT
      4.1

    

    FORM
      OF SENIOR DEBT

    SECURITIES
      INDENTURE

     

    
      

      

    

    WESTERN
      GOLDFIELDS, INC. 

    

    INDENTURE

    

    DATED
      AS OF ____________ __, 200__

    

    
      
        

      

    TRUSTEE

    

    SENIOR
      DEBT SECURITIES

    

    
      

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

    

      
        	
                ARTICLE
                  I. DEFINITIONS
                  AND INCORPORATION BY REFERENCE

              	
                1

              
	 	 	 
	
                Section
                  1.1.

              	
                Definitions

              	
                1

              
	
                Section
                  1.2.

              	
                Definitions

              	
                5

              
	
                Section
                  1.3.

              	
                Incorporation
                  by Reference of Trust Indenture Act

              	
                5

              
	 	 	 
	
                ARTICLE
                  II. SECURITIES

              	
                6

              
	 	 	 
	
                Section
                  2.1.

              	
                Amount
                  Unlimited; Issuable in Series

              	
                6

              
	
                Section
                  2.2.

              	
                Establishment
                  of Terms of Series of Securities

              	
                6

              
	
                Section
                  2.3.

              	
                Authentication
                  and Delivery of Securities

              	
                9

              
	
                Section
                  2.4.

              	
                Execution
                  of Securities; Trustee's Certificate of Authentication; Form of
                  Securities

              	
                10

              
	
                Section
                  2.5.

              	
                Registrar
                  and Paying Agent

              	
                11

              
	
                Section
                  2.6.

              	
                Paying
                  Agent to Hold Money in Trust

              	
                12

              
	
                Section
                  2.7.

              	
                Securityholder
                  Lists

              	
                12

              
	
                Section
                  2.8.

              	
                Transfer
                  and Exchange

              	
                12

              
	
                Section
                  2.9.

              	
                Mutilated,
                  Destroyed, Lost and Stolen Securities

              	
                13

              
	
                Section
                  2.10.

              	
                Outstanding
                  Securities

              	
                14

              
	
                Section
                  2.11.

              	
                Treasury
                  Securities

              	
                14

              
	
                Section
                  2.12.

              	
                Temporary
                  Securities

              	
                14

              
	
                Section
                  2.13.

              	
                Cancellation

              	
                15

              
	
                Section
                  2.14.

              	
                Defaulted
                  Interest

              	
                15

              
	
                Section
                  2.15.

              	
                Global
                  Securities

              	
                15

              
	
                Section
                  2.16.

              	
                CUSIP
                  Numbers

              	
                16

              
	 	 	 
	
                ARTICLE
                  III. REDEMPTION

              	
                17

              
	 	 	 
	
                Section
                  3.1.

              	
                Notice
                  to Trustee

              	
                17

              
	
                Section
                  3.2.

              	
                Selection
                  of Securities to be Redeemed

              	
                17

              
	
                Section
                  3.3.

              	
                Notice
                  of Redemption

              	
                17

              
	
                Section
                  3.4.

              	
                Effect
                  of Notice of Redemption

              	
                18

              
	
                Section
                  3.5.

              	
                Deposit
                  of Redemption Price

              	
                18

              
	
                Section
                  3.6. 

              	
                Securities
                  Redeemed in Part

              	
                18

              
	 	 	 
	
                ARTICLE
                  IV. COVENANTS

              	
                18

              
	 	 	 
	
                Section
                  4.1.

              	
                Payment
                  of Principal and Interest

              	
                18

              
	
                Section
                  4.2.

              	
                SEC
                  Reports

              	
                18

              
	
                Section
                  4.3.

              	
                Compliance
                  Certificate

              	
                19

              
	
                Section
                  4.4.

              	
                Stay,
                  Extension and Usury Laws

              	
                19

              
	
                Section
                  4.5.

              	
                Corporate
                  Existence

              	
                19

              
	 	 	 
	
                ARTICLE
                  V. SUCCESSORS

              	
                20

              
	 	 	 
	
                Section
                  5.1.

              	
                When
                  Company May Merge, Etc

              	
                20

              
	
                Section
                  5.2.

              	
                Successor
                  Corporation Substituted

              	
                20

              

      

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

      
        	
                ARTICLE
                  VI. DEFAULTS
                  AND REMEDIES

              	
                20

              
	 	 	 
	
                Section
                  6.1.

              	
                Events
                  of Default

              	
                20

              
	
                Section
                  6.2.

              	
                Acceleration
                  of Maturity; Rescission and Annulment

              	
                22

              
	
                Section
                  6.3.

              	
                Collection
                  of Indebtedness and Suits for Enforcement by Trustee

              	
                23

              
	
                Section
                  6.4.

              	
                Trustee
                  May File Proofs of Claim

              	
                23

              
	
                Section
                  6.5.

              	
                Trustee
                  May Enforce Claims Without Possession of Securities

              	
                24

              
	
                Section
                  6.6.

              	
                Application
                  of Money Collected

              	
                24

              
	
                Section
                  6.7.

              	
                Limitation
                  on Suits

              	
                25

              
	
                Section
                  6.8.

              	
                Unconditional
                  Right of Holders to Receive Principal and Interest

              	
                25

              
	
                Section
                  6.9.

              	
                Restoration
                  of Rights and Remedies

              	
                26

              
	
                Section
                  6.10. 

              	
                Rights
                  and Remedies Cumulative

              	
                26

              
	
                Section
                  6.11.

              	
                Delay
                  or Omission Not Waiver

              	
                26

              
	
                Section
                  6.12.

              	
                Control
                  by Holders

              	
                26

              
	
                Section
                  6.13.

              	
                Waiver
                  of Past Defaults

              	
                26

              
	
                Section
                  6.14.

              	
                Undertaking
                  for Costs

              	
                27

              
	 	 	 
	
                ARTICLE
                  VII. TRUSTEE

              	
                27

              
	 	 	 
	
                Section
                  7.1.

              	
                Duties
                  of Trustee

              	
                27

              
	
                Section
                  7.2.

              	
                Rights
                  of Trustee

              	
                28

              
	
                Section
                  7.3.

              	
                Individual
                  Rights of Trustee

              	
                29

              
	
                Section
                  7.4.

              	
                Trustee's
                  Disclaimer

              	
                29

              
	
                Section
                  7.5.

              	
                Notice
                  of Defaults

              	
                29

              
	
                Section
                  7.6. 

              	
                Reports
                  by Trustee to Holders

              	
                29

              
	
                Section
                  7.7.

              	
                Compensation
                  and Indemnity

              	
                30

              
	
                Section
                  7.8.

              	
                Replacement
                  of Trustee

              	
                30

              
	
                Section
                  7.9. 

              	
                Successor
                  Trustee by Merger, Etc

              	
                31

              
	
                Section
                  7.10.

              	
                Eligibility;
                  Disqualification

              	
                32

              
	
                Section
                  7.11.

              	
                Preferential
                  Collection of Claims Against Company.

              	
                32

              
	 	 	 
	
                ARTICLE
                  VIII. SATISFACTION
                  AND DISCHARGE; DEFEASANCE

              	
                32

              
	 	 	 
	
                Section
                  8.1.

              	
                Satisfaction
                  and Discharge of Indenture

              	
                32

              
	
                Section
                  8.2.

              	
                Application
                  of Trust Funds; Indemnification

              	
                33

              
	
                Section
                  8.3.

              	
                Legal
                  Defeasance of Securities of any Series

              	
                34

              
	
                Section
                  8.4.

              	
                Covenant
                  Defeasance

              	
                35

              
	
                Section
                  8.5.

              	
                Repayment
                  to Company

              	
                35

              
	 	 	 
	
                ARTICLE
                  IX. AMENDMENTS
                  AND WAIVERS

              	
                35

              
	 	 	 
	
                Section
                  9.1.

              	
                Without
                  Consent of Holders

              	
                35

              
	
                Section
                  9.2.

              	
                With
                  Consent of Holders

              	
                36

              
	
                Section
                  9.3.

              	
                Compliance
                  with Trust Indenture Act

              	
                37

              
	
                Section
                  9.4.

              	
                Revocation
                  and Effect of Consents

              	
                37

              
	
                Section
                  9.5.

              	
                Notation
                  on or Exchange of Securities

              	
                38

              
	
                Section
                  9.6.

              	
                Trustee
                  Protected

              	
                38

              
	 	 	 
	
                ARTICLE
                  X. MISCELLANEOUS

              	
                38

              
	 	 	 
	
                Section
                  10.1.

              	
                Trust
                  Indenture Act Controls

              	
                38

              
	
                Section
                  10.2.

              	
                Notices

              	
                38

              

      

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

       

      
        	
                Section
                  10.3.

              	
                Communication
                  by Holders with Other Holders.

              	
                39

              
	
                Section
                  10.4.

              	
                Certificate
                  and Opinion as to Conditions Precedent

              	
                39

              
	
                Section
                  10.5.

              	
                Statements
                  Required in Certificate or Opinion

              	
                40

              
	
                Section
                  10.6.

              	
                Rules
                  by Trustee and Agents

              	
                40

              
	
                Section
                  10.7.

              	
                Legal
                  Holidays

              	
                40

              
	
                Section
                  10.8. 

              	
                No
                  Recourse Against Others

              	
                40

              
	
                Section
                  10.9.

              	
                Counterparts

              	
                40

              
	
                Section
                  10.11.

              	
                No
                  Adverse Interpretation of Other Agreements

              	
                41

              
	
                Section
                  10.12. 

              	
                Successors

              	
                41

              
	
                Section
                  10.13. 

              	
                Severability

              	
                41

              
	
                Section
                  10.14.

              	
                Table
                  of Contents, Headings, Etc

              	
                41

              
	 	 	 
	
                ARTICLE
                  XI. SINKING
                  FUNDS

              	
                41

              
	 	 	 
	
                Section
                  11.1.

              	
                Applicability
                  of Article

              	
                41

              
	
                Section
                  11.2. 

              	
                Satisfaction
                  of Sinking Fund Payments with Securities

              	
                42

              
	
                Section
                  11.3. 

              	
                Redemption
                  of Securities for Sinking Fund

              	
                42

              
	 	 	 
	
                ARTICLE
                  XII GUARANTEES.

              	
                43

              
	 	 	 
	
                Section
                  12.1. 

              	
                Unconditional
                  Guarantee.

              	
                43

              
	
                Section
                  12.2. 

              	
                Limitation
                  of Subsidiary Guarantor's Liability.

              	
                44

              
	
                Section
                  12.3. 

              	
                Contribution.

              	
                44

              
	
                Section
                  12.4. 

              	
                Execution
                  and Delivery of Subsidiary Guarantees.

              	
                44

              
	
                Section
                  12.5

              	
                Addition
                  of Subsidiary Guarantors.

              	
                45

              
	
                Section
                  12.6. 

              	
                Severability.

              	
                45

              

      

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

    WESTERN
      GOLDFIELDS, INC. 

    

    Reconciliation
      and tie between the Trust Indenture Act of 1939 and

    Indenture,
      dated as of ____________ __, 200__.

     

    
      
        	
                Section
                  310 

              	 	
                (a)(1)

              	 	
                7.10

              
	 	 	
                (a)(2)
                  

              	 	
                7.10

              
	 	 	
                (a)(3)
                  

              	 	
                Not
                  Applicable

              
	 	 	
                (a)(4)
                  

              	 	
                Not
                  Applicable

              
	 	 	
                (a)(5)
                  

              	 	
                7.10

              
	 	 	
                (b)
                  

              	 	
                7.10

              
	 	 	
                (c)

              	 	
                Not
                  Applicable

              
	 	 	 	 	 
	
                Section
                  311

              	 	
                (a)
                  

              	 	
                7.11

              
	 	 	
                (b)
                  

              	 	
                7.11

              
	 	 	
                (c)
                  

              	 	
                Not
                  Applicable

              
	 	 	 	 	 
	
                Section
                  312

              	 	
                (a)
                  

              	 	
                2.7

              
	 	 	
                (b)
                  

              	 	
                10.3

              
	 	 	
                (c)
                  

              	 	
                10.3

              
	 	 	 	 	 
	
                Section
                  313

              	 	
                (a)

              	 	
                7.6

              
	 	 	
                (b)(1)

              	 	
                7.6

              
	 	 	
                (b)(2)
                  

              	 	
                7.6

              
	 	 	
                (c)(1)
                  

              	 	
                7.6

              
	 	 	
                (d)
                  

              	 	
                7.6

              
	 	 	 	 	 
	
                Section
                  314

              	 	
                (a)
                  

              	 	
                4.2,
                  10.2, 10.5

              
	 	 	
                (b)
                  

              	 	
                Not
                  Applicable

              
	 	 	
                (c)(1)
                  

              	 	
                10.4

              
	 	 	
                (c)(2)
                  

              	 	
                10.4

              
	 	 	
                (c)(3)
                  

              	 	
                Not
                  Applicable

              
	 	 	
                (d)
                  

              	 	
                Not
                  Applicable

              
	 	 	
                (e)
                  

              	 	
                10.5

              
	 	 	
                (f)
                  

              	 	
                Not
                  Applicable

              
	 	 	 	 	 
	
                Section
                  315

              	 	
                (a)
                  

              	 	
                7.1

              
	 	 	
                (b)
                  

              	 	
                7.5

              
	 	 	
                (c)
                  

              	 	
                7.1

              
	 	 	
                (d)
                  

              	 	
                7.1

              
	 	 	
                (e)
                  

              	 	
                6.14

              

      

       

      
        
          
          

        

        
          iv

          
            

          

        

        
          
          

        

      

       

      
        	
                Section
                  316

              	 	
                (a)
                  

              	 	
                2.10

              
	 	 	
                (a)(1)(A)
                  

              	 	
                6.12

              
	 	 	
                (a)(1)(B)
                  

              	 	
                6.13

              
	 	 	
                (a)(2)

              	 	
                Not
                  Applicable

              
	 	 	
                (b)
                  

              	 	
                6.8

              
	 	 	 	 	 
	
                Section
                  317

              	 	
                (a)(1)
                  

              	 	
                6.3

              
	 	 	
                (a)(2)
                  

              	 	
                6.4

              
	 	 	
                (b)
                  

              	 	
                2.6

              
	 	 	 	 	 
	
                Section
                  318

              	 	
                (a)
                  

              	 	
                10.1

              

      

       

    

    
      
        
        

      

      
        v

        
          

        

      

      
        
        

      

    

     

    INDENTURE

    

    Indenture
      dated as of __________ __, 200_, between Western Goldfields, Inc., an Idaho
      corporation (the "Company"), and ________________________
      ("Trustee").

    

    WITNESSETH

    

    WHEREAS,
      the Company has duly authorized the issuance, execution and delivery, from
      time
      to time, of its unsecured debentures, notes or other evidences of indebtedness
      (hereinafter referred to as the "Securities"), without limit as to principal
      amount, issuable in one or more Series (as hereinafter defined), the amount
      and
      terms of each such Series to be determined as hereinafter provided; and, 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;

    

    WHEREAS,
      all things necessary to make this Indenture a valid indenture and agreement
      according to its terms have been done;

    

    NOW,
      THEREFORE:

    

    In
      consideration of the premises and the purchases of the Securities by the holders
      thereof, the Company and the Trustee mutually covenant and agree for the equal
      and proportionate benefit of the respective holders from time to time of the
      Securities as follows:

    

    ARTICLE
      I.

    DEFINITIONS
      AND INCORPORATION BY REFERENCE

    

    Section
      1.1. Definitions.

    

    "Additional
      Amounts" means any additional amounts which are required hereby or by any
      Security, under circumstances specified herein or therein, to be paid by the
      Company in respect of certain taxes imposed on Holders specified therein and
      which are owing to such Holders.

    

    "Affiliate"
      of any specified person means any other person directly or indirectly
      controlling or controlled by or under direct or indirect common control with
      such specified person. For the purposes of this definition, "control"
      (including, with correlative meanings, the terms "controlled by" and "under
      common control with"), as used with respect to any person, shall mean the
      possession, directly or indirectly, of the power to direct or cause the
      direction of the management or policies of such person, whether through the
      ownership of voting securities or by agreement or otherwise.

    

    "Agent"
      means any Registrar, Paying Agent or Service Agent.

    

    "Authorized
      Newspaper" means a newspaper in an official language of the country of
      publication customarily published at least once a day for at least five days
      in
      each calendar week and of general circulation in the place in connection with
      which the term is used. If it shall be impractical in the opinion of the Trustee
      to make any publication of any notice required hereby in an Authorized
      Newspaper, any publication or other notice in lieu thereof that is made or
      given
      by the Trustee shall constitute a sufficient publication of such
      notice.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    "Bearer"
      means anyone in possession from time to time of a Bearer Security.

    

    "Bearer
      Security" means any Security, including any interest coupon appertaining
      thereto, that does not provide for the identification of the Holder
      thereof.

    

    "Board
      of
      Directors" means the Board of Directors of the Company or any duly authorized
      committee thereof.

    

    "Board
      Resolution" means a copy of a resolution certified by the Secretary or an
      Assistant Secretary of the Company to have been adopted by the Board of
      Directors or pursuant to authorization by the Board of Directors and to be
      in
      full force and effect on the date of the certificate and delivered to the
      Trustee.

    

    "Business
      Day" means, unless otherwise provided by Board Resolution, Officers' Certificate
      or supplemental indenture hereto for a particular Series, any day except a
      Saturday, Sunday or a legal holiday in the City of New York on which banking
      institutions are authorized or required by law, regulation or executive order
      to
      close.

    

    "Company"
      means the party named as such above until a successor replaces it and thereafter
      means the successor.

    

    "Company
      Order" means a written order signed in the name of the Company by two Officers,
      one of whom must be the Company's chief executive officer, chief financial
      officer or principal accounting officer.

    

    "Company
      Request" means a written request signed in the name of the Company by its
      Chairman of the Board, a President or a Vice President, and by either its Chief
      Financial Officer, Treasurer, an Assistant Treasurer, its Secretary or an
      Assistant Secretary, and delivered to the Trustee.

    

    "Corporate
      Trust Office" means the office of the Trustee located in _____________, or
      such
      other office as may be designated by the Trustee to the Company in
      writing.

    

    "Debt"
      of
      any person as of any date means, without duplication, all obligations of such
      person in respect of borrowed money, including all interest, fees and expenses
      owed in respect thereto (whether or not the recourse of the lender is to the
      whole of the assets of such person or only to a portion thereof), or evidenced
      by bonds, notes, debentures or similar instruments.

    

    "Default"
      means any event which is, or after notice or passage of time would be, an Event
      of Default.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    "Depository"
      means, with respect to the Securities of any Series issuable or issued in whole
      or in part in the form of one or more Global Securities, the person designated
      as Depository for such Series by the Company, which Depository shall be a
      clearing agency registered under the Exchange Act; and if at any time there
      is
      more than one such person, "Depository" as used with respect to the Securities
      of any Series shall mean the Depository with respect to the Securities of such
      Series.

    

    "Discount
      Security" means any Security that provides for an amount less than the stated
      principal amount thereof to be due and payable upon declaration of acceleration
      of the maturity thereof pursuant to Section 6.2.

    

    "Dollars"
      means the currency of the United States of America.

    

    "Exchange
      Act" means the Securities Exchange Act of 1934, as amended.

    

    "Global
      Security" or "Global Securities" means a Security or Securities, as the case
      may
      be, in the form established pursuant to Section 2.2 evidencing all or part
      of a
      Series of Securities, issued to the Depository for such Series or its nominee,
      and registered in the name of such Depository or nominee.

    

    "Holder"
      or "Securityholder" means a person in whose name a Security is registered or
      the
      holder of a Bearer Security.

    

    "Indenture"
      means this Indenture as amended from time to time and shall include the form
      and
      terms of particular Series of Securities established as contemplated
      hereunder.

    

    "interest"
      with respect to any Discount Security which by its terms bears interest only
      after Maturity, means interest payable after Maturity.

    

    "Maturity,"
      when used with respect to any Security or installment of principal thereof,
      means the date on which the principal of such Security or such installment
      of
      principal becomes due and payable as therein or herein provided, whether at
      the
      Stated Maturity or by declaration of acceleration, call for redemption, notice
      of option to elect repayment or otherwise.

    

    "Officer"
      means the Chairman of the Board, any President, any Vice-President, the Chief
      Financial Officer, the Treasurer, the Secretary, any Assistant Treasurer or
      any
      Assistant Secretary of the Company.

    

    "Officers'
      Certificate" means a certificate signed by two Officers, one of whom must be
      the
      Company's principal executive officer, principal financial officer or principal
      accounting officer.

    

    "Opinion
      of Counsel" means a written opinion of legal counsel who is acceptable to the
      Trustee. The counsel may be an employee of or counsel to the
      Company.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    "person"
      means any individual, corporation, partnership, joint venture, association,
      limited liability company, joint-stock company, trust, unincorporated
      organization or government or any agency or political subdivision
      thereof.

    

    "principal"
      of a Security means the principal of the Security plus, when appropriate, the
      premium, if any, on, and any Additional Amounts in respect of, the
      Security.

    

    "Responsible
      Officer" means any officer of the Trustee in its Corporate Trust Office and
      also
      means, with respect to a particular corporate trust matter, any other officer
      to
      whom any corporate trust matter is referred because of his or her knowledge
      of
      and familiarity with a particular subject.

    

    "SEC"
      means the Securities and Exchange Commission.

    

    "Securities"
      has the meaning given such item in the preamble hereto.

    

    "Securities
      Act" means the Securities Act of 1933, as amended.

    

    "Series"
      or "Series of Securities" means each series of debentures, notes or other debt
      instruments of the Company created pursuant to Sections 2.1 and 2.2
      hereof.

    

    "Significant
      Subsidiary" means (i) any direct or indirect Subsidiary of the Company that
      would be a "significant subsidiary" as defined in Article 1, Rule 1-02 of
      Regulation S-X, promulgated pursuant to the Securities Act, as such regulation
      is in effect on the date hereof, or (ii) any group of direct or indirect
      Subsidiaries of the Company that, taken together as a group, would be a
      "significant subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X,
      promulgated pursuant to the Securities Act, as such regulation is in effect
      on
      the date hereof.

    

    "Stated
      Maturity," when used with respect to any Security or any installment of
      principal thereof or interest thereon, means the date specified in such Security
      as the fixed date on which the principal of such Security or such installment
      of
      principal or interest is due and payable.

    

    "Subsidiary"
      of any specified person means any corporation of which at least a majority
      of
      the outstanding stock having by the terms thereof ordinary voting power for
      the
      election of directors of such corporation (irrespective of whether or not at
      the
      time stock of any other class or classes of such corporation shall have or
      might
      have voting power by reason of the happening of any contingency) is at the
      time
      directly or indirectly owned by such person, or by one or more other
      Subsidiaries, or by such person and one or more other Subsidiaries.

    

    "Subsidiary
      Guarantee" means a guarantee by any Subsidiary Guarantor of the Company's
      payment obligations under the Securities.

    

    "Subsidiary
      Guarantor" means (i) each Subsidiary of the Company executing this Indenture,
      (ii) each Subsidiary of the Company that executes a supplemental indenture
      and
      becomes a guarantor of the Company's payment obligations under the Securities
      pursuant to Section 12.5, and (iii) any Subsidiary of the Company that is a
      successor corporation of any Subsidiary of the Company referred to in clauses
      (i) and (ii). 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    "TIA"
      means the Trust Indenture Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb)
      as in
      effect on the date of this Indenture; provided, however, that in the event
      the
      Trust Indenture Act of 1939 is amended after such date, "TIA" means, to the
      extent required by any such amendment, the Trust Indenture Act as so
      amended.

    

    "Trustee"
      means the person named as the "Trustee" in the first paragraph of this
      instrument until a successor Trustee shall have become such pursuant to the
      applicable provisions of this Indenture, and thereafter "Trustee" shall mean
      or
      include each person who is then a Trustee hereunder, and if at any time there
      is
      more than one such person, "Trustee" as used with respect to the Securities
      of
      any Series shall mean the Trustee with respect to Securities of that
      Series.

    

    Section
      1.2. Definitions.

     

    
      	
              TERM

            	 	
              DEFINED
                IN SECTION

            	 
	
              "Bankruptcy
                Law"

            	 	 	
              6.1

            	 
	
              "Custodian"

            	 	 	
              6.1

            	 
	
              "Government
                Obligations"

            	 	 	
              8.3

            	 
	
              "Legal
                Holiday"

            	 	 	
              10.7

            	 
	
              "mandatory
                sinking fund payment"

            	 	 	
              11.1

            	 
	
              "optional
                sinking fund payment"

            	 	 	
              11.1

            	 
	
              "Paying
                Agent"

            	 	 	
              2.5

            	 
	
              "Registrar"

            	 	 	
              2.5

            	 
	
              "Service
                Agent"

            	 	 	
              2.5

            	 
	
              "successor
                person"

            	 	 	
              5.1

            	 

    

    

    Section
      1.3. Incorporation
      by Reference of Trust Indenture Act.

    

    Whenever
      this Indenture refers to a provision of the TIA, the provision is incorporated
      by reference in and made a part of this Indenture. The following TIA terms
      used
      in this Indenture have the following meanings:

    

    "Commission"
      means the SEC.

    

    "indenture
      securities" means the Securities.

    

    "indenture
      security holder" means a Securityholder.

    

    "indenture
      to be qualified" means this Indenture.

    

    "indenture
      trustee" or "institutional trustee" means the Trustee.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    "obligor"
      on the indenture securities means the Company and any successor obligor upon
      the
      Securities.

    

    All
      other
      terms used in this Indenture that are defined by the TIA, defined by TIA
      reference to another statute or defined by SEC rule under the TIA and not
      otherwise defined herein are used herein as so defined.

    

    Section
      1.4.  Rules
      of
      Construction.

    

    Unless
      the context otherwise requires:

    

    (a) a
      term
      has the meaning assigned to it;

    

    (b) an
      accounting term not otherwise defined has the meaning assigned to it in
      accordance with generally accepted accounting principles;

    

    (c) "or"
      is
      not exclusive;

    

    (d) words
      in
      the singular include the plural, and in the plural include the singular;
      and

    

    (e) provisions
      apply to successive events and transactions.

    

    ARTICLE
      II.

    SECURITIES

    

    Section
      2.1. Amount
      Unlimited; Issuable in Series.

    

    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. All Securities of a Series shall be identical except as may be set
      forth
      in a Board Resolution, a supplemental indenture or an Officers' Certificate
      detailing the adoption of the terms thereof pursuant to the authority granted
      under a Board Resolution. In the case of Securities of a Series to be issued
      from time to time, the Board Resolution, Officers' Certificate or supplemental
      indenture may provide for the method by which specified terms (such as interest
      rate, maturity date, record date or date from which interest shall accrue)
      are
      to be determined. Securities may differ between Series in respect of any
      matters, provided that all Series of Securities shall be equally and ratably
      entitled to the benefits of the Indenture.

    

    Section
      2.2. Establishment
      of Terms of Series of Securities.

    

    At
      or
      prior to the issuance of any Securities within a Series, the following shall
      be
      established (as to the Series generally, in the case of subparagraph 2.2.1
      and
      either as to such Securities within the Series or as to the Series generally
      in
      the case of subparagraphs 2.2.2 through 2.2.22) by a Board Resolution, a
      supplemental indenture or an Officers' Certificate pursuant to authority granted
      under a Board Resolution:

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    2.2.1. the
      title
      of the Series (which shall distinguish the Securities of that particular Series
      from the Securities of any other Series);

    

    2.2.2. any
      limit
      upon the aggregate principal amount of the Securities of the Series which 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 the Series pursuant to Section 2.8,
      2.9,
      2.10, 3.6 or 9.5);

    

    2.2.3. the
      forms
      of the Securities of the Series in bearer or fully-registered form, whether
      any
      Securities of the Series may be represented initially by a Security in temporary
      or permanent global form and, if so, the initial Depository with respect to
      any
      such temporary or permanent global Security and, as applicable, whether and
      the
      circumstances under which beneficial owners of interests in any such temporary
      or permanent global Security may exchange such interests for Securities of
      such
      Series and of like tenor of any authorized form and denomination, and any other
      terms required for the establishment of a Series of Securities in bearer form,
      including, but not limited to, tax compliance procedures;

    

    2.2.4. the
      price
      or prices (expressed as a percentage of the principal amount thereof) at which
      the Securities of the Series will be issued;

    

    2.2.5. the
      person to whom any interest on any Security of the Series issued in
      fully-registered form shall be payable, if other than the person in whose name
      that Security is registered at the close of business on the regular record
      date
      for such interest, and the manner in which, the person to whom, any interest
      on
      any Security of the Series issued in bearer form shall be payable, if otherwise
      than upon presentation and surrender of the coupons appertaining thereto as
      they
      severally mature, and the extent to which, or the manner in which (including
      any
      certification requirement and other terms and conditions under which), any
      interest payable on a temporary or permanent global Security on an interest
      payment date will be paid if other than as described herein;

    

       2.2.6. the
      date
      or dates on which the principal of the Securities of the Series is payable
      or
      the method or methods, if any, used to determine those dates;

    

    2.2.7. the
      rate
      or rates (which may be fixed or variable) per annum or, if applicable, the
      method used to determine such rate or rates (including, but not limited to,
      any
      commodity, commodity index, stock exchange index or financial index) at which
      the Securities of the Series shall bear interest, if any, the date or dates
      from
      which such interest, if any, shall accrue, the date or dates on which such
      interest, if any, shall commence and be payable and any regular record date
      for
      the interest payable on any interest payment date;

    

    2.2.8. the
      place
      or places where and the manner in which the principal of and interest, if any,
      on the Securities of the Series shall be payable, any Securities of the Series
      issued as Registered Securities may be surrendered for registration of transfer,
      Securities of the Series may be surrendered for exchange and notices and demands
      to or upon the Company in respect of the Securities of the Series and this
      Indenture may be served;

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    2.2.9. if
      applicable, the period or periods within which, the price or prices at which
      and
      the terms and conditions upon which the Securities of the Series may be
      redeemed, in whole or in part, at the option of the Company;

    

    2.2.10. the
      obligation, if any, of the Company to redeem or purchase the Securities of
      the
      Series pursuant to any sinking fund or analogous provisions or at the option
      of
      a Holder thereof, the conditions, if any, giving rise to such obligation, 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, and, if applicable,
      any provisions for the remarketing of such Securities;

    

    2.2.11. if
      other
      than denominations of $1,000 and any integral multiple thereof, the
      denominations in which the Securities of the Series shall be
      issuable;

    

    2.2.12. the
      currency or currencies, including composite currencies, in which payment of
      the
      principal of or interest on the Securities of the Series shall be payable if
      other than the currency of the United States, and if so, whether the Securities
      of the Series may be satisfied and discharged other than as provided in Article
      VIII;

    

    2.2.13 if
      the
      amount of payments of principal of or interest on the Securities of the Series
      is to be determined with reference to an index, formula or other method, or
      based on a coin or currency other than that in which the Securities of the
      Series are stated to be payable, the manner in which such amounts shall be
      determined and the calculation agent, if any, with respect thereto;

    

    2.2.14. if
      other
      than the principal amount thereof, the portion of the principal amount of the
      Securities of the Series that shall be payable upon declaration of acceleration
      of the maturity thereof pursuant to Section 6.2;

    

    2.2.15. if
      the
      Holders of Securities of the Series may convert or exchange the Securities
      into
      or for securities of the Company or other property, the period or periods within
      which, the rate or rates at which and the terms and conditions upon which
      Securities of the Series may be converted or exchanged, in whole or in
      part;

    

    2.2.16. any
      terms
      applicable to Discount Securities of the Series, if any, including the issue
      price thereof and the rate or rates at which the original issue discount will
      accrue;

    

    2.2.17. whether
      the Securities of the Series, in whole or any specified part, shall not be
      defeasible pursuant to Section 8.3 or Section 8.4 or both such Sections and,
      if
      other than by an Officer's Certificate, the manner in which any election by
      the
      Company to defease such Securities shall be evidenced;

    

    2.2.18. the
      provisions, if any, relating to any security provided for the Securities of
      the
      Series;

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    2.2.19. any
      addition to or change in the Events of Default which applies to any Securities
      of the Series and any change in the right of the Trustee or the requisite
      Holders of such Securities to declare the principal amount thereof due and
      payable pursuant to Section 6.2;

    

    2.2.20. any
      addition to or change in the covenants set forth in Articles IV or V which
      applies to Securities of the Series;

    

    2.2.21. any
      other
      terms of the Securities of the Series (which terms shall not be inconsistent
      with the provisions of this Indenture, except as permitted by Section 9.1,
      but
      which may modify or delete any provision of this Indenture insofar as it applies
      to such Series); and

    

    2.2.22. any
      depositories, interest rate calculation agents, exchange rate calculation agents
      or other agents with respect to Securities of such Series if other than those
      appointed herein.

    

    All
      Securities of any one Series need not be issued at the same time and may be
      issued from time to time, consistent with the terms of this Indenture, if so
      provided by or pursuant to the Board Resolution, supplemental indenture or
      Officers' Certificate referred to above, and the authorized principal amount
      of
      any Series may not be increased to provide for issuances of additional
      Securities of such Series, unless otherwise provided in such Board Resolution,
      supplemental indenture or Officers' Certificate.

    

    Section
      2.3. Authentication
      and Delivery of Securities.

    

    At
      any
      time and from time to time after the execution and delivery of this Indenture,
      the Company may deliver any Series of Securities executed by the Company to
      the
      Trustee for authentication by it, and the Trustee shall thereupon authenticate
      and deliver said Securities to or upon a Company Order, without any further
      corporate action by the Company. If the form or terms of such Series of
      Securities have been established in or pursuant to one or more Board Resolutions
      or a supplemental indenture as permitted by this Section 2.3 and Section 2.2,
      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 7.1) shall be fully protected
      in
      relying upon:

    

    (1) each
      Board Resolution relating to such Series of Securities;

    

    (2) an
      executed supplemental indenture, if any, relating to such series of
      Securities;

    

    (3) an
      Officers' Certificate setting forth the form and terms of the Securities,
      stating that the form and terms of the Securities have been established pursuant
      to Section 2.2 and subparagraph 2.4.3 and comply with this Indenture, and
      covering such other matters as the Trustee may reasonably request;

    

    (4) an
      Opinion of Counsel to the effect that:

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    (a) if
      the
      form of such Securities has been established by or pursuant to resolutions
      of
      the Board of Directors of the Company as permitted by subparagraph 2.4.3 that
      such form has been established in conformity with the provisions of this
      Indenture;

    

    (b) if
      the
      terms of such Securities have been established by or pursuant to Board
      Resolutions as permitted by Section 2.1, that such terms have been established
      in conformity with the provisions of this Indenture;

    

    (c) that
      such
      Securities, when authenticated and delivered by the Trustee and executed and
      issued by the Company in the manner and subject to any conditions specified
      in
      such Opinion of Counsel, will be valid and binding obligations of the Company,
      except as any rights thereunder may be limited by bankruptcy, insolvency and
      other similar laws affecting the enforcement of creditor's rights generally
      and
      by general equity principles;

    

    (d) that
      all
      laws and requirements in respect of the execution and delivery by the Company
      of
      such Securities have been complied with and that authentication and delivery
      of
      the Securities by the Trustee will not violate the terms of this Indenture;
      and

    

    (e) covering
      such other matters as the Trustee may reasonably request.

    

    Each
      Registered Security shall be dated the date of its authentication. Any Series
      of
      Bearer Securities shall be dated as provided in the Board Resolution or the
      provisions of the supplemental indenture creating such Series.

    

    Section
      2.4. Execution
      of Securities; Trustee's Certificate of Authentication; Form of
      Securities.

    

    2.4.1. Two
      Officers shall sign the Securities for the Company by manual or facsimile
      signature. If an Officer whose signature is on a Security no longer holds that
      office at the time the Security is authenticated, the Security shall
      nevertheless be valid.

    

    2.4.2. Only
      such
      Securities bearing a certificate of authentication executed by the Trustee
      by
      the manual signature of one of its Responsible Officers, shall be entitled
      to
      the benefits of this Indenture or be valid or obligatory for any purpose. Such
      certificate by the Trustee upon any Security executed by the Company 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.

    

    The
      Trustee shall have the right to decline to authenticate and deliver any
      Securities of such Series: (a) if the Trustee, being advised by counsel,
      determines that such action may not lawfully be taken; or (b) if the Trustee
      in
      good faith shall determine that such action would expose the Trustee to personal
      liability to Holders of any then outstanding Series of Securities.

    

    The
      Trustee may appoint an authenticating agent acceptable to the Company to
      authenticate Securities. An authenticating agent may authenticate Securities
      whenever the Trustee may do so. Each reference in this Indenture to
      authentication by the Trustee includes authentication by such agent. An
      authenticating agent has the same rights as an Agent to deal with the Company
      or
      an Affiliate.

     

    
      
        
        

      

      
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    2.4.3. The
      Securities of each series shall be substantially of the tenor and purport as
      shall be authorized by a Board Resolution or in an indenture or indentures
      supplemental hereto, in each case with such appropriate insertions, omissions,
      substitutions and other variations as are required or permitted by this
      Indenture, and may have such letters, numbers or other marks of identification
      or designation and such legends or endorsements thereon as the Board of
      Directors of 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 stock exchange on which the Securities may be listed, or
      to
      conform to usage.

    

    The
      definitive Securities may be printed, lithographed or fully or partly engraved
      or produced in any other manner, all as determined by the officers executing
      such Securities, as evidenced by their executions thereof.

    

    Section
      2.5. Registrar
      and Paying Agent.

    

    The
      Company shall maintain, with respect to each Series of Securities, an office
      or
      agency where Securities of such Series may be presented or surrendered for
      payment ("Paying Agent"), where Securities of such Series may be surrendered
      for
      registration of transfer or exchange ("Registrar") and where notices and demands
      to or upon the Company in respect of the Securities of such Series and this
      Indenture may be served ("Service Agent"). The Registrar shall keep a register
      with respect to each Series of Securities and to their transfer and exchange.
      

    The
      Corporate Trust Office of the Trustee shall be such office or agency for all
      of
      the aforesaid purposes unless the Company shall maintain some other office
      or
      agency for such purposes and The Company will give prompt written notice to
      the
      Trustee of the name and address, and any change in the name or address, of
      each
      Registrar, Paying Agent or Service Agent. If at any time the Company shall
      fail
      to maintain any such required Registrar, Paying Agent or Service Agent or shall
      fail to furnish the Trustee with the name and address thereof, such
      presentations, surrenders, 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, surrenders, notices
      and
      demands.

    

    The
      Company may also from time to time designate one or more co-registrars,
      additional paying agents or additional service agents and may from time to
      time
      rescind such designations; provided, however, that no such designation or
      rescission shall in any manner relieve the Company of its obligations to
      maintain a Registrar, Paying Agent and Service Agent in each place so specified
      pursuant to Section 2.2 for Securities of any Series for such purposes. The
      Company will give prompt written notice to the Trustee of any such designation
      or rescission and of any change in the name or address of any such co-registrar,
      additional paying agent or additional service agent. The term "Registrar"
      includes any co-registrar; the term "Paying Agent" includes any additional
      paying agent; and the term "Service Agent" includes any additional service
      agent.

     

    
      
        
        

      

      
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    The
      Company hereby appoints the Trustee the initial Registrar, Paying Agent and
      Service Agent for each Series unless another Registrar, Paying Agent or Service
      Agent, as the case may be, is appointed prior to the time Securities of that
      Series are first issued.

    

    Section
      2.6. Paying
      Agent to Hold Money in Trust.

    

    The
      Company shall require each Paying Agent other than the Trustee to agree in
      writing that the Paying Agent will hold in trust, for the benefit of
      Securityholders of any Series of Securities, or the Trustee, all money held
      by
      the Paying Agent for the payment of principal of or interest on the Series
      of
      Securities, and will notify the Trustee of any default by the Company in making
      any such payment. While any such default continues, the Trustee may require
      a
      Paying Agent to pay all money held by it to the Trustee. The Company at any
      time
      may require a Paying Agent to pay all money held by it to the Trustee. Upon
      payment over to the Trustee, the Paying Agent (if other than the Company or
      a
      Subsidiary) shall have no further liability for the money. If the Company or
      a
      Subsidiary acts as Paying Agent, it shall segregate and hold in a separate
      trust
      fund for the benefit of Securityholders of any Series of Securities all money
      held by it as Paying Agent.

    

    Section
      2.7. Securityholder
      Lists.

    

    The
      Trustee shall preserve in as current a form as is reasonably practicable the
      most recent list available to it of the names and addresses of Securityholders
      of each Series of Securities and shall otherwise comply with TIA Section 312(a).
      If the Trustee is not the Registrar, the Company shall furnish to the Trustee
      at
      least ten days before each interest payment date and at such other times as
      the
      Trustee may request in writing a list, in such form and as of such date as
      the
      Trustee may reasonably require, of the names and addresses of Securityholders
      of
      each Series of Securities.

    

    Section
      2.8. Transfer
      and Exchange.

    

    Upon
      surrender for registration of transfer of any Security at the office or agency
      of the Company designated for such purposes, the Company shall execute, and
      the
      Trustee shall authenticate and deliver, in the name of the designated transferee
      or transferees, one or more new Securities of any authorized denomination or
      denominations of a like aggregate principal amount and tenor. No service charge
      shall be made for any registration of transfer or exchange (except as otherwise
      expressly permitted herein), but the Company may require payment of a sum
      sufficient to cover any transfer tax or similar governmental charge payable
      in
      connection therewith (other than any such transfer tax or similar governmental
      charge payable upon exchanges pursuant to Sections 2.12, 3.6 or
      9.5).

    

    At
      the
      option of the Holder, Registered Securities of any Series may be exchanged
      for
      other Registered Securities of the same Series of any authorized denomination
      or
      denominations, of a like aggregate principal amount and tenor, upon surrender
      of
      the Securities to be exchanged at such office or agency. Whenever any Securities
      are so surrendered for exchange, the Company shall execute, and the Trustee
      shall authenticate and deliver, the Securities which the Holder making the
      exchange is entitled to receive. Bearer Securities may not be issued in exchange
      for Registered Securities.

     

    
      
        
        

      

      
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    All
      Securities issued upon any registration of transfer or exchange of Securities
      shall be the valid obligations of the Company, evidencing the same debt, and
      entitled to the same benefits under this Indenture, as the Securities
      surrendered upon such registration of transfer or exchange.

    

    Every
      Registered Security presented or surrendered for registration of transfer or
      exchange shall be duly endorsed, or be accompanied by a written instrument
      of
      transfer in form satisfactory to the Company and the Registrar duly executed,
      by
      the Holder thereof or his attorney duly authorized in writing.

    

    Neither
      the Company nor the Registrar shall be required (a) to issue, register the
      transfer of, or exchange Securities of any Series for the period beginning
      at
      the opening of business 15 days immediately preceding the mailing of a notice
      of
      redemption of Securities of that Series selected for redemption and ending
      at
      the close of business on the day of such mailing, or (b) to register the
      transfer of or exchange Securities of any Series selected, called or being
      called for redemption as a whole or the portion being redeemed of any such
      Securities selected, called or being called for redemption in part.

    

    Section
      2.9. Mutilated,
      Destroyed, Lost and Stolen Securities.

    

    If
      any
      mutilated Security is surrendered to the Trustee, the Company shall execute
      and
      the Trustee shall authenticate and deliver in exchange therefor a new Security
      of the same Series and of like tenor and principal amount and bearing a number
      not contemporaneously outstanding.

    

    If
      there
      shall be delivered to the Company and the Trustee (i) evidence to their
      satisfaction of the destruction, loss or theft of any Security and (ii) such
      security or indemnity as may be required by them to save each of them and any
      agent of either of them harmless, then, in the absence of notice to the Company
      or the Trustee that such Security has been acquired by a bona fide purchaser,
      the Company shall execute and upon its request the Trustee shall authenticate
      and make available for delivery, in lieu of any such destroyed, lost or stolen
      Security, a new Security of the same Series and of like tenor and principal
      amount and bearing a number not contemporaneously outstanding.

    

    In
      case
      any such mutilated, destroyed, lost or stolen Security has become or is about
      to
      become due and payable, the Company in its discretion may, instead of issuing
      a
      new Security, pay such Security.

    

    Upon
      the
      issuance of any new Security under this Section 2.9, 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.

     

    
      
        
        

      

      
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    Every
      new
      Security of any Series issued pursuant to this Section in lieu of any destroyed,
      lost or stolen Security shall constitute an original additional contractual
      obligation of the Company, whether or not the destroyed, lost or stolen Security
      shall be at any time enforceable by anyone, and shall be entitled to all the
      benefits of this Indenture equally and proportionately with any and all other
      Securities of that Series duly issued hereunder.

    

    The
      provisions of this Section are exclusive and shall preclude (to the extent
      lawful) all other rights and remedies with respect to the replacement or payment
      of mutilated, destroyed, lost or stolen Securities.

    

    Section
      2.10. Outstanding
      Securities.

    

    The
      Securities outstanding at any time are all the Securities authenticated by
      the
      Trustee except for those canceled by it, those delivered to it for cancellation,
      those reductions in the interest on a Global Security effected by the Trustee
      in
      accordance with the provisions hereof and those described in this Section as
      not
      outstanding.

    

    If
      a
      Security is replaced pursuant to Section 2.9, it ceases to be outstanding until
      the Trustee receives proof satisfactory to it that the replaced Security is
      held
      by a bona fide purchaser.

    

    If
      the
      Paying Agent (other than the Company, a Subsidiary or an Affiliate of any
      thereof) holds on the Maturity of Securities of a Series money sufficient to
      pay
      such Securities payable on that date, then on and after that date such
      Securities of the Series cease to be outstanding and interest on them ceases
      to
      accrue.

    

    A
      Security does not cease to be outstanding because the Company or an Affiliate
      holds the Security.

    

    In
      determining whether the Holders of the requisite principal amount of outstanding
      Securities have given any request, demand, authorization, direction, notice,
      consent or waiver hereunder, the principal amount of a Discount Security that
      shall be deemed to be outstanding for such purposes shall be the amount of
      the
      principal thereof that would be due and payable as of the date of such
      determination upon a declaration of acceleration of the Maturity thereof
      pursuant to Section 6.2.

    

    Section
      2.11. Treasury
      Securities.

    

    In
      determining whether the Holders of the required principal amount of Securities
      of a Series have concurred in any request, demand, authorization, direction,
      notice, consent or waiver, Securities of a Series owned by the Company or an
      Affiliate shall be disregarded, except that for the purposes of determining
      whether the Trustee shall be protected in relying on any such request, demand,
      authorization, direction, notice, consent or waiver only Securities of a Series
      that the Trustee knows are so owned shall be so disregarded.

    

    Section
      2.12. Temporary
      Securities.

    

    Until
      definitive Securities are ready for delivery, the Company may prepare and the
      Trustee shall authenticate temporary Securities upon a Company Order. Temporary
      Securities shall be substantially in the form of definitive Securities but
      may
      have variations that the Company considers appropriate for temporary Securities.
      Without unreasonable delay, the Company shall prepare and the Trustee upon
      request shall authenticate definitive Securities of the same Series and date
      of
      maturity in exchange for temporary Securities. Until so exchanged, temporary
      Securities shall have the same rights under this Indenture as the definitive
      Securities.

     

    
      
        
        

      

      
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    Section
      2.13. Cancellation.

    

    The
      Company at any time may deliver Securities to the Trustee for cancellation.
      The
      Registrar and the Paying Agent shall forward to the Trustee any Securities
      surrendered to them for registration of transfer, exchange or payment. The
      Trustee shall cancel all Securities surrendered for transfer, exchange, payment,
      replacement or cancellation and shall destroy such canceled Securities (subject
      to the record retention requirement of the Exchange Act) and deliver a
      certificate of such destruction to the Company, unless the Company otherwise
      directs. The Company may not issue new Securities to replace Securities that
      it
      has paid or delivered to the Trustee for cancellation.

    

    Section
      2.14. Defaulted
      Interest.

    

    Unless
      the terms of a Series of Securities adopted pursuant to Section 2.2 shall
      provide otherwise, if the Company defaults in a payment of interest on a Series
      of Securities, it shall pay the defaulted interest, plus, to the extent
      permitted by law, any interest payable on the defaulted interest, to the persons
      who are Securityholders of the Series on a subsequent special record date.
      The
      Company shall fix the record date and payment date. At least 30 days before
      the
      record date, the Company shall mail to the Trustee and to each Securityholder
      of
      the Series a notice that states the record date, the payment date and the amount
      of interest to be paid. The Company may pay defaulted interest in any other
      lawful manner.

    

    Section
      2.15. Global
      Securities.

    

    2.15.1. Terms
      of
      Securities. A Board Resolution, a supplemental indenture hereto or an Officers'
      Certificate shall establish whether the Securities of a Series shall be issued
      in whole or in part in the form of one or more Global Securities and the
      Depository for such Global Security or Securities.

    

    2.15.2.
      Transfer and Exchange. Notwithstanding any provisions to the contrary contained
      in Section 2.8 of the Indenture and in addition thereto, any Global Security
      shall be exchangeable pursuant to Section 2.8 of the Indenture for Securities
      registered in the names of Holders other than the Depository for such Security
      or its nominee only if (i) such Depository notifies the Company that it is
      unwilling or unable to continue as Depository for such Global Security or if
      at
      any time such Depository ceases to be a clearing agency registered under the
      Exchange Act, and, in either case, the Company fails to appoint a successor
      Depository within 90 days of such event, (ii) the Company executes and delivers
      to the Trustee an Officers' Certificate to the effect that such Global Security
      shall be so exchangeable or (iii) an Event of Default with respect to the
      Securities represented by such Global Security shall have happened and be
      continuing. Any Global Security that is exchangeable pursuant to the preceding
      sentence shall be exchangeable for Securities registered in such names as the
      Depository shall direct in writing in an aggregate principal amount equal to
      the
      principal amount of the Global Security with like tenor and terms.

     

    
      
        
        

      

      
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    Except
      as
      provided in this Section 2.15.2, a Global Security may not be transferred except
      as a whole by the Depository with respect to such Global Security to a nominee
      of such Depository, by a nominee of such Depository to such Depository or
      another nominee of such Depository or by the Depository or any such nominee
      to a
      successor Depository or a nominee of such a successor Depository.

    

    2.15.3. Legend.
      Any Global Security issued hereunder shall bear a legend in substantially the
      following form:

    

    "This
      Security is a Global Security within the meaning of the Indenture hereinafter
      referred to and is registered in the name of the Depository or a nominee of
      the
      Depository. This Security is exchangeable for Securities registered in the
      name
      of a person other than the Depository or its nominee only in the limited
      circumstances described in the Indenture, and may not be transferred except
      as a
      whole by the Depository to a nominee of the Depository, by a nominee of the
      Depository to the Depository or another nominee of the Depository or by the
      Depository or any such nominee to a successor Depository or a nominee of such
      a
      successor Depository."

    

    2.15.4. Acts
      of
      Holders. The Depository, as a Holder, may appoint agents and otherwise authorize
      participants to give or take any request, demand, authorization, direction,
      notice, consent, waiver or other action which a Holder is entitled to give
      or
      take under the Indenture.

    

    2.15.5. Payments.
      Notwithstanding the other provisions of this Indenture, unless otherwise
      specified as contemplated by Section 2.2, payment of the principal of and
      interest, if any, on any Global Security shall be made to the Holder
      thereof.

    

    2.15.6. Consents,
      Declaration and Directions. Except as provided in subparagraph 2.15.5, the
      Company, the Trustee and any Agent shall treat a person as the Holder of such
      principal amount of outstanding Securities of such Series represented by a
      Global Security as shall be specified in a written statement of the Depository
      with respect to such Global Security, for purposes of obtaining any consents,
      declarations, waivers or directions required to be given by the Holders pursuant
      to this Indenture.

    

    Section
      2.16. CUSIP
      Numbers.

    

    The
      Company in issuing the Securities may use "CUSIP" numbers (if then generally
      in
      use), and, if so, the Trustee shall use "CUSIP" numbers in notices of redemption
      as a convenience to Holders; provided that any such notice may state that no
      representation is made as to the correctness of such numbers either as printed
      on the Securities or as contained in any notice of a redemption and that
      reliance may be placed only on the other elements of identification printed
      on
      the Securities, and any such redemption shall not be affected by any defect
      in
      or omission of such numbers.

     

    
      
        
        

      

      
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    ARTICLE
      III.

    REDEMPTION

    

    Section
      3.1. Notice
      to
      Trustee.

    

    The
      Company may, with respect to any Series of Securities, reserve the right to
      redeem and pay the Series of Securities or may covenant to redeem and pay the
      Series of Securities or any part thereof prior to the Stated Maturity thereof
      at
      such time and on such terms as provided for in such Securities. If a Series
      of
      Securities is redeemable and the Company wants or is obligated to redeem prior
      to the Stated Maturity thereof all or part of the Series of Securities pursuant
      to the terms of such Securities, it shall notify the Trustee of the redemption
      date and the principal amount of Series of Securities to be redeemed. The
      Company shall give the notice at least 45 days before the redemption date (or
      such shorter notice as may be acceptable to the Trustee).

    

    Section
      3.2. Selection
      of Securities to be Redeemed.

    

    Unless
      otherwise indicated for a particular Series by a Board Resolution, a
      supplemental indenture or an Officers' Certificate, if less than all the
      Securities of a Series are to be redeemed, the Trustee shall select the
      Securities of the Series to be redeemed by lot or in any other manner that
      the
      Trustee deems fair and appropriate. The Trustee shall make the selection from
      Securities of the Series outstanding not previously called for redemption.
      The
      Trustee may select for redemption portions of the principal of Securities of
      the
      Series that have denominations larger than $1,000. Securities of the Series
      and
      portions of them it selects shall be in amounts of $1,000 or whole multiples
      of
      $1,000 or, with respect to Securities of any Series issuable in other
      denominations pursuant to Section 2.2.11, the minimum principal denomination
      for
      each Series and integral multiples thereof. Provisions of this Indenture that
      apply to Securities of a Series called for redemption also apply to portions
      of
      Securities of that Series called for redemption.

    

    Section
      3.3. Notice
      of
      Redemption.

    

    Unless
      otherwise indicated for a particular Series by Board Resolution, a supplemental
      indenture hereto or an Officers' Certificate, at least 30 days but not more
      than
      60 days before a redemption date, the Company shall mail a notice of redemption
      by first-class mail to each Holder whose Securities are to be redeemed and
      if
      any Bearer Securities are outstanding, publish on one occasion a notice in
      an
      Authorized Newspaper.

    

    The
      notice shall identify the Securities of the Series to be redeemed and shall
      state:

    

     
      (a) the
      redemption date;

     

    
      
        
        

      

      
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      (b) the
      redemption price;

    

      (c) the
      name
      and address of the Paying Agent;

    

      (d)
       that
      Securities of the Series called for redemption must be surrendered to the Paying
      Agent to collect the redemption price;

    

      (e) that
      interest on Securities of the Series called for redemption ceases to accrue
      on
      and after the redemption date; and

    

      (f)
       any
      other
      information as may be required by the terms of the particular Series or the
      Securities of a Series being redeemed.

    

    At
      the
      Company's request, the Trustee shall give the notice of redemption in the
      Company's name and at its expense.

    

    Section
      3.4. Effect
      of
      Notice of Redemption.

    

    Once
      notice of redemption is mailed or published as provided in Section 3.3,
      Securities of a Series called for redemption become due and payable on the
      redemption date and at the redemption price. A notice of redemption may not
      be
      conditional. Upon surrender to the Paying Agent, such Securities shall be paid
      at the redemption price plus accrued interest to the redemption
      date.

    

    Section
      3.5. Deposit
      of Redemption Price.

    

    On
      or
      before the redemption date, the Company shall deposit with the Paying Agent
      money sufficient to pay the redemption price of and accrued interest, if any,
      on
      all Securities to be redeemed on that date.

    

    Section
      3.6.  Securities
      Redeemed in Part.

    

    Upon
      surrender of a Security that is redeemed in part, the Trustee shall authenticate
      for the Holder a new Security of the same Series and the same maturity equal
      in
      principal amount to the unredeemed portion of the Security
      surrendered.

    

    ARTICLE
      IV.

    COVENANTS

    

    Section
      4.1. Payment
      of Principal and Interest.

    

    The
      Company covenants and agrees for the benefit of the Holders of each Series
      of
      Securities that it will duly and punctually pay the principal of and interest,
      if any, on the Securities of that Series in accordance with the terms of such
      Securities and this Indenture. 

    

    Section
      4.2. SEC
      Reports.

    

    The
      Company shall deliver to the Trustee within 15 days after it files them with
      the
      SEC, 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 SEC may
      by
      rules and regulations prescribe) which the Company is required to file with
      the
      SEC pursuant to Section 13 or 15(d) of the Exchange Act. The Company also shall
      comply with the other provisions of TIA Section 314(a).

     

    
      
        
        

      

      
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    Section
      4.3. Compliance
      Certificate.

    

    The
      Company shall deliver to the Trustee, within 120 days after the end of each
      fiscal year of the Company, an Officers' Certificate stating that a review
      of
      the activities of the Company and its Subsidiaries during the preceding fiscal
      year has been made under the supervision of the signing Officers with a view
      to
      determining whether the Company has kept, observed, performed and fulfilled
      its
      obligations under this Indenture, and further stating, as to each such Officer
      signing such certificate, that to the best of his knowledge the Company has
      kept, observed, performed and fulfilled each and every covenant contained in
      this Indenture and is not in default in the performance or observance of any
      of
      the terms, provisions and conditions hereof (or, if a Default or Event of
      Default shall have occurred, describing all such Defaults or Events of Default
      of which he may have knowledge).

    

    The
      Company will, so long as any of the Securities are outstanding, deliver to
      the
      Trustee, forthwith upon becoming aware of any Default or Event of Default,
      an
      Officers' Certificate specifying such Default or Event of Default and what
      action the Company is taking or proposes to take with respect
      thereto.

    

    Section
      4.4. Stay,
      Extension and Usury Laws.

    

    The
      Company covenants (to the extent that it may lawfully do so) that it will not
      at
      any time insist upon, plead, or in any manner whatsoever claim or take the
      benefit or advantage of, any stay, extension or usury law wherever enacted,
      now
      or at any time hereafter in force, which may affect the covenants or the
      performance of this Indenture or the Securities; and the Company (to the extent
      it may lawfully do so) hereby expressly waives all benefit or advantage of
      any
      such law and covenants that it will not, by resort to any such law, hinder,
      delay or impede the execution of any power herein granted to the Trustee, but
      will suffer and permit the execution of every such power as though no such
      law
      has been enacted.

    

    Section
      4.5. Corporate
      Existence.

    

    Subject
      to Article V, the Company will do or cause to be done all things necessary
      to
      preserve and keep in full force and effect its corporate existence and the
      corporate, partnership or other existence of each Significant Subsidiary in
      accordance with the respective organizational documents of each Significant
      Subsidiary and the rights (charter and statutory), licenses and franchises
      of
      the Company and its Significant Subsidiaries; provided, however, that the
      Company shall not be required to preserve any such right, license or franchise,
      or the corporate, partnership or other existence of any Significant Subsidiary,
      if the Board of Directors shall determine that the preservation thereof is
      no
      longer desirable in the conduct of the business of the Company and its
      Subsidiaries taken as a whole and that the loss thereof is not adverse in any
      material respect to the Holders.

    
 

    
      
        
        

      

      
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    ARTICLE
      V.

    SUCCESSORS

    

    Section
      5.1. When
      Company May Merge, Etc.

    

    The
      Company shall not consolidate with or merge with or into any other person or
      convey, transfer or lease its properties and assets substantially as an entirety
      to any person, unless:

    

    (a) either
      (1) the Company shall be the continuing corporation or (2) the person (if other
      than the Company) formed by such consolidation or into which the Company is
      merged or the person which acquires by conveyance, transfer or lease the
      properties and assets of the Company substantially as an entirety (i) shall
      be a
      corporation, partnership, limited liability company, trust or other entity
      organized and validly existing under the laws of the United States or any state
      thereof or the District of Columbia and (ii) shall expressly assume, by an
      indenture supplemental hereto, executed and delivered to the Trustee, in form
      satisfactory to the Trustee, all of the obligations of the Company under the
      Securities and this Indenture; 

    

    (b) immediately
      after giving effect to the transaction, no Default or Event of Default shall
      have occurred and be continuing; and

    

    (c) the
      Company shall have delivered to the Trustee an Officer's Certificate and an
      Opinion of Counsel, each stating that such consolidation, merger, conveyance,
      transfer or lease and, if a supplemental indenture is required in connection
      with such transaction, such supplemental indenture, comply with this Article
      and
      that all conditions precedent herein provided for relating to such transaction
      have been satisfied.

    

    Section
      5.2. Successor
      Corporation Substituted.

    

    Upon
      any
      consolidation or merger, or any sale, lease, conveyance or other disposition
      of
      the properties and assets substantially as an entirety of the Company in
      accordance with Section 5.1, the successor person formed by any such
      consolidation or into which the Company is merged or the successor person to
      which such conveyance, transfer or lease is made shall succeed to, and be
      substituted for, and may exercise every right and power of the Company under
      this Indenture with the same effect as if such successor had been named as
      the
      Company herein; and thereafter, except in the case of a lease of its properties
      and assets substantially as an entirety, the Company shall be discharged from
      all obligations and covenants under this Indenture and the Securities.

     

    ARTICLE
      VI.

    DEFAULTS
      AND REMEDIES

    

    Section
      6.1. Events
      of
      Default.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

    "Event
      of
      Default," whenever used herein with respect to Securities of any Series, means
      any one of the following events, unless in the establishing Board Resolution,
      supplemental indenture or Officers' Certificate it is provided that such Series
      shall not have the benefit of said Event of Default:

    

    (a) the
      Company defaults in (i) the payment of the principal of any Security of such
      Series at its Maturity or (ii) the payment of any interest on any Security
      of
      that Series when it becomes due and payable, and continuance of such default
      for
      a period of 30 days (unless the entire amount of such payment is deposited
      by
      the Company with the Trustee or with a Paying Agent prior to the expiration
      of
      such period of 30 days);

    

    (b) the
      Company fails to comply with any of its agreements in the Securities or this
      Indenture (other than those referred to in clause (a) above and other than
      a
      covenant or warranty a default in whose performance or whose breach is elsewhere
      in this Section specifically deal with or which has been expressly included
      in
      this Indenture solely for the benefit of a Series of Securities other than
      such
      Series) and such failure continues for 60 days after there has been given,
      by
      registered or certified mail, to the Company by the Trustee or to the Company
      and the Trustee by the Holders of at least 25% in principal amount of the
      outstanding Securities of that Series a written notice specifying such default
      or breach and requiring it to be remedied and stating that such notice is a
      "Notice of Default" hereunder; 

    

    (c) 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,

    

    (iv) makes
      a
      general assignment for the benefit of its creditors, or

    

    (v) generally
      is unable to pay its debts as the same become due; or

    

    (d) a
      court
      of competent jurisdiction enters an order or decree 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 or any of its Significant Subsidiaries, and
      the
      order or decree remains unstayed and in effect for 60 days; or

     

    
      
        
        

      

      
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    (e) any
      other
      Event of Default provided with respect to Securities of that Series, which
      is
      specified in a Board Resolution, a supplemental indenture hereto or an Officers'
      Certificate, in accordance with Section 2.2 hereof.

    

    The
      term
      "Bankruptcy Law" means Title 11, U.S. Code or any similar Federal or state
      law
      for the relief of debtors. The term "Custodian" means any receiver, trustee,
      assignee, liquidator or similar official under any Bankruptcy Law.

    

    Section
      6.2. Acceleration
      of Maturity; Rescission and Annulment.

    

    If
      an
      Event of Default with respect to Securities of any Series at the time
      outstanding occurs and is continuing (other than an Event of Default referred
      to
      in Section 6.1(c) or (d)) then in every such case the Trustee or the Holders
      of
      not less than 25% in principal amount of the outstanding Securities of that
      Series may declare the principal amount (or, if any Securities of that Series
      are Discount Securities, such portion of the principal amount as may be
      specified in the terms of such Securities) of and accrued and unpaid interest,
      if any, on all of the Securities of that Series to be due and payable
      immediately, by a notice in writing to the Company (and to the Trustee if given
      by Holders), and upon any such declaration such principal amount (or specified
      amount) and accrued and unpaid interest, if any, shall become immediately due
      and payable. If an Event of Default specified in Section 6.1(c) or (d) shall
      occur, the principal amount (or specified amount) of and accrued and unpaid
      interest, if any, on all outstanding Securities shall ipso facto become and
      be
      immediately due and payable without any declaration or other act on the part
      of
      the Trustee or any Holder.

    

    At
      any
      time after such a declaration of acceleration with respect to any Series has
      been made and before a judgment or decree for payment of the money due has
      been
      obtained by the Trustee as hereinafter in this Article VI provided, the Holders
      of a majority in principal amount of the outstanding Securities of that Series,
      by written notice to the Company and the Trustee, may rescind and annul such
      declaration and its consequences if:

    

    (a) the
      Company has paid or deposited with the Trustee a sum sufficient to
      pay:

    

    (i) all
      overdue interest, if any, on all Securities of that Series,

    

    (ii) the
      principal of any Securities of that Series which have become due otherwise
      than
      by such declaration of acceleration and interest thereon at the rate or rates
      prescribed therefor in such Securities,

    

    (iii) to
      the
      extent that payment of such interest is lawful, interest upon any overdue
      principal and overdue interest at the rate or rates prescribed therefor in
      such
      Securities, and

    

    (iv)
       all
      sums
      paid or advanced by the Trustee hereunder and the reasonable compensation,
      expenses, disbursements and advances of the Trustee, its agents and counsel;
      and

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    

    (b) all
      Events of Default with respect to Securities of that Series, other than the
      non-payment of the principal of Securities of that Series which have become
      due
      solely by such declaration of acceleration, have been cured or waived as
      provided in Section 6.13.

    

    No
      such
      rescission shall affect any subsequent Default or impair any right consequent
      thereon.

    

    Section
      6.3. Collection
      of Indebtedness and Suits for Enforcement by Trustee.

    

    The
      Company covenants that if

    

    (a) default
      is made in the payment of any interest on any Security when such interest
      becomes due and payable and such default continues for a period of 30 days,
      or

    

    (b) default
      is made in the payment of principal of any Security at the Maturity thereof,
      or

    

    (c) default
      is made in the deposit of any sinking fund payment when and as due by the terms
      of a Security,

    

    then,
      the
      Company will, upon demand of the Trustee, pay to it, for the benefit of the
      Holders of such Securities, the whole amount then due and payable on such
      Securities for principal and interest and, to the extent that payment of such
      interest shall be legally enforceable, interest on any overdue principal or
      any
      overdue interest, at the rate or rates prescribed therefor in such Securities,
      and, in addition thereto, such further amount as shall be sufficient to cover
      the costs and expenses of collection, including the reasonable compensation,
      expenses, disbursements and advances of the Trustee, its agents and
      counsel.

    

    If
      the
      Company fails to pay such amounts forthwith upon such demand, the Trustee,
      in
      its own name and as trustee of an express trust, may institute a judicial
      proceeding for the collection of the sums so due and unpaid, may prosecute
      such
      proceeding to judgment or final decree and may enforce the same against the
      Company or any other obligor upon such Securities and collect the moneys
      adjudged or deemed to be payable in the manner provided by law out of the
      property of the Company or any other obligor upon such Securities, wherever
      situated.

    

    If
      an
      Event of Default with respect to any Securities of any Series occurs and is
      continuing, the Trustee may in its discretion proceed to protect and enforce
      its
      rights and the rights of the Holders of Securities of such Series by such
      appropriate judicial proceedings as the Trustee shall deem most effectual to
      protect and enforce any such rights, whether for the specific enforcement of
      any
      covenant or agreement in this Indenture or in aid of the exercise of any power
      granted herein, or to enforce any other proper remedy.

    

    Section
      6.4. Trustee
      May File Proofs of Claim.

    

    In
      case
      of the pendency of any receivership, insolvency, liquidation, bankruptcy,
      reorganization, arrangement, adjustment, composition or other judicial
      proceeding relative to the Company or any other obligor upon the Securities
      or
      the property of the Company or of such other obligor or their creditors, the
      Trustee (irrespective of whether the principal of the Securities shall then
      be
      due and payable as therein expressed or by declaration or otherwise and
      irrespective of whether the Trustee shall have made any demand on the Company
      for the payment of overdue principal or interest) shall be entitled and
      empowered, by intervention in such proceeding or otherwise,

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    

    (a) to
      file
      and prove a claim for the whole amount of principal and interest owing and
      unpaid in respect of the Securities and to file such other papers or documents
      as may be necessary or advisable in order to have the claims of the Trustee
      (including any claim for the reasonable compensation, expenses, disbursements
      and advances of the Trustee, its agents and counsel) and of the Holders allowed
      in such judicial proceeding, and

    

    (b) to
      collect and receive any moneys or other property payable or deliverable on
      any
      such claims and to distribute the same, and any custodian, receiver, assignee,
      trustee, liquidator, sequestrator or other similar official in any such judicial
      proceeding is hereby authorized by each Holder to make such payments to the
      Trustee and, in the event that the Trustee shall consent to the making of such
      payments directly to the Holders, to pay to the Trustee any amount due it for
      the reasonable compensation, expenses, disbursements and advances of the
      Trustee, its agents and counsel, and any other amounts due the Trustee under
      Section 7.7.

    

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

    

    Section
      6.5. Trustee
      May Enforce Claims Without Possession of Securities.

    

    All
      rights of action and claims under this Indenture or the Securities may be
      prosecuted and enforced by the Trustee without the possession of any of the
      Securities or the production thereof in any proceeding relating thereto, and
      any
      such 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 the payment of the reasonable compensation, expenses, disbursements and
      advances of the Trustee, its agents and counsel, be for the ratable benefit
      of
      the Holders of the Securities in respect of which such judgment has been
      recovered.

    

    Section
      6.6. Application
      of Money Collected.

    

    Any
      money
      collected by the Trustee pursuant to this Article VI shall be applied in the
      following order, at the date or dates fixed by the Trustee and, in case of
      the
      distribution of such money on account of principal or interest, upon
      presentation of the Securities and the notation thereon of the payment if only
      partially paid and upon surrender thereof if fully paid:

    

    First:
      To
      the payment of all amounts due the Trustee under Section 7.7; and

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    

    Second:
      To the payment of the amounts then due and unpaid for principal of and interest
      on the Securities 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 interest,
      respectively; and

    

    Third:
      To
      the Company.

    

    Section
      6.7. Limitation
      on Suits.

    

    No
      Holder
      of any Security of any Series shall have any right to institute any proceeding,
      judicial or otherwise, with respect to this Indenture, or for the appointment
      of
      a receiver or trustee, or for any other remedy hereunder, unless

    

    (a) such
      Holder has previously given written notice to the Trustee of a continuing Event
      of Default with respect to the Securities of that Series;

    

    (b)
       the
      Holders of not less than 25% in principal amount of the outstanding Securities
      of that Series shall have made written request to the Trustee to institute
      proceedings in respect of such Event of Default in its own name as Trustee
      hereunder;

    

    (c)
       such
      Holder or Holders have offered to the Trustee reasonable indemnity against
      the
      costs, expenses and liabilities to be incurred in compliance with such
      request;

    

    (d) the
      Trustee for 60 days after its receipt of such notice, request and offer of
      indemnity has failed to institute any such proceeding; and

    

    (e) no
      direction inconsistent with such written request has been given to the Trustee
      during such 60-day period by the Holders of a majority in principal amount
      of
      the outstanding Securities of that Series;

    

    it
      being
      understood and intended that no one or more of such Holders shall have any
      right
      in any manner whatever by virtue of, or by availing of, any provision of this
      Indenture to affect, disturb or prejudice the rights of any other of such
      Holders, or to obtain or to seek to obtain priority or preference over any
      other
      of such Holders or to enforce any right under this Indenture, except in the
      manner herein provided and for the equal and ratable benefit of all such
      Holders.

    

    Section
      6.8. Unconditional
      Right of Holders to Receive Principal and Interest.

    

    Notwithstanding
      any other provision in this Indenture, the right, which is absolute and
      unconditional, of any Holder of any Security to receive payment of the principal
      of and interest on such Security on the Stated Maturity or Maturities expressed
      in such Security (or in the case of redemption, on the redemption date) held
      by
      such Holder, on or after the respective due dates expressed in the Securities
      or
      any redemption date, or to bring suit for the enforcement of any such payment
      on
      or after the respective dates, shall not be impaired or affected adversely
      without the consent of each such Holder.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    

    Section
      6.9. Restoration
      of Rights and Remedies.

    

    If
      the
      Trustee or any Holder has instituted any proceeding to enforce any right or
      remedy under this Indenture and such proceeding has been discontinued or
      abandoned for any reason, or has been determined adversely to the Trustee or
      to
      such Holder, then and in every such case, subject to any determination in such
      proceeding, the Company, the Trustee and the Holders shall be restored severally
      and respectively to their former positions hereunder and thereafter all rights
      and remedies of the Trustee and the Holders shall continue as though no such
      proceeding had been instituted.

    

    Section
      6.10.  Rights
      and Remedies Cumulative.

    

    Except
      as
      otherwise provided with respect to the replacement or payment of mutilated,
      destroyed, lost or stolen Securities in Section 2.9, no right or remedy herein
      conferred upon or reserved to the Trustee or to the Holders is intended to
      be
      exclusive of any other right or remedy, and every right and remedy shall, to
      the
      extent permitted by law, be cumulative and in addition to every other right
      and
      remedy given hereunder or now or hereafter existing at law or in equity or
      otherwise. The assertion or employment of any right or remedy hereunder, or
      otherwise, shall not prevent the concurrent assertion or employment of any
      other
      appropriate right or remedy.

    

    Section
      6.11. Delay
      or
      Omission Not Waiver.

    

    No
      delay
      or omission of the Trustee or of any Holder of any Securities to exercise any
      right or remedy accruing upon any Event of Default shall impair any such right
      or remedy or constitute a waiver of any such Event of Default or an acquiescence
      therein. Every right and remedy given by this Article VI or by law to the
      Trustee or to the Holders may be exercised from time to time, and as often
      as
      may be deemed expedient, by the Trustee or by the Holders, as the case may
      be.

    

    Section
      6.12. Control
      by Holders.

    

    The
      Holders of a majority in principal amount of the outstanding Securities of
      any
      Series 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 the Securities of such
      Series. However, the Trustee may refuse to follow any direction that conflicts
      with law or this Indenture or that the Trustee determines in good faith is
      unduly prejudicial to the rights of other Holders or would involve the Trustee
      in personal liability.

    

    Section
      6.13. Waiver
      of
      Past Defaults.

    

    The
      Holders of a majority in aggregate principal amount of the outstanding
      Securities of any Series, by notice to the Trustee (and without notice to any
      other Holder), may on behalf of the Holders of all of the Securities of such
      Series waive an existing Default with respect to such Series and its
      consequences except that the consent of the Holders of 100% of the Securities
      of
      such Series shall be required to waive (a) an Event of Default described in
      Section 6.1(a) with respect to such Series or (b) a Default in respect of a
      provision that under Section 9.2 cannot be amended without the consent of the
      Holder of each outstanding Security of the Series affected. When a Default
      is
      waived, it is deemed cured, but no such waiver shall extend to any subsequent
      or
      other Default or impair any consequent right.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    

    Section
      6.14. Undertaking
      for Costs.

    

    All
      parties to this Indenture agree, and each Holder of any Security by his
      acceptance thereof shall be deemed to have agreed, that any court may in its
      discretion require, in any suit for the enforcement of any right or remedy
      under
      this Indenture, or in any suit against the Trustee for any action taken,
      suffered 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 6.14 shall not apply to any suit instituted by the
      Company, to any suit instituted by the Trustee, to any suit instituted by any
      Holder, or group of Holders, holding in the aggregate more than 10% in principal
      amount of the outstanding Securities of any Series, or to any suit instituted
      by
      any Holder for the enforcement of the payment of the principal of or interest
      on
      any Security on or after the Stated Maturity or Stated Maturities expressed
      in
      such Security (or, in the case of redemption, on the redemption
      date).

    

    ARTICLE
      VII.

    TRUSTEE

    

    Section
      7.1. Duties
      of
      Trustee.

    

    (a) If
      an
      Event of Default has occurred and is continuing, the Trustee shall exercise
      the
      rights and powers vested in it by this Indenture and use the same degree of
      care
      and skill in its exercise as a prudent man would exercise or use under the
      circumstances in the conduct of his own affairs.

    

    (b) Except
      during the continuance of an Event of Default:

    

    (i) The
      Trustee need perform only those duties that are specifically set forth in this
      Indenture and no others. The permissive right of the Trustee to take or refrain
      from taking any action hereunder shall not be construed as a duty.

    

    (ii) In
      the
      absence of bad faith on its part, the Trustee may conclusively rely, as to
      the
      truth of the statements and the correctness of the opinions expressed therein,
      upon Officers' Certificates or Opinions of Counsel furnished to the Trustee
      and
      conforming to the requirements of this Indenture; however, in the case of any
      such Officers' Certificates or Opinions of Counsel which by any provisions
      hereof are specifically required to be furnished to the Trustee, the Trustee
      shall examine such Officers' Certificates and Opinions of Counsel to determine
      whether or not they conform to the requirements of this Indenture.

    

    (c) The
      Trustee may not be relieved from liability for its own negligent action, its
      own
      negligent failure to act or its own willful misconduct, except
      that:

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    

    (i) This
      paragraph does not limit the effect of paragraph (b) of this
      Section.

    

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

    

    (iii) The
      Trustee shall not be liable with respect to any action taken, suffered or
      omitted to be taken by it with respect to Securities of any Series in good
      faith
      in accordance with the direction of the Holders of a majority in principal
      amount of the outstanding Securities of such Series 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 such Series.

    

    (d) Every
      provision of this Indenture that in any way relates to the Trustee is subject
      to
      paragraph (a), (b) and (c) of this Section 7.1.

    

    (e)
       The
      Trustee may refuse to perform any duty or exercise any right or power unless
      it
      receives indemnity satisfactory to it against any loss, liability or
      expense.

    

    (f)
       The
      Trustee shall not be liable for interest on any money received by it except
      as
      the Trustee may agree in writing with the Company. Money held in trust by the
      Trustee need not be segregated from other funds except to the extent required
      by
      law.

    

    (g) No
      provision of this Indenture shall require the Trustee to risk its own funds
      or
      otherwise incur any financial liability in the performance of any of its duties,
      or in the exercise of any of its rights or powers, if it shall have reasonable
      grounds for believing that repayment of such funds or adequate indemnity against
      such risk is not reasonably assured to it.

    

    (h)
       The
      Paying Agent, the Registrar and any authenticating agent shall be entitled
      to
      the protections, immunities and standard of care as are set forth in paragraphs
      (a), (b) and (c) of this Section with respect to the Trustee.

    

    Section
      7.2. Rights
      of
      Trustee.

    

    (a) The
      Trustee may rely on and shall be protected in acting or refraining from acting
      upon any document believed by it to be genuine and to have been signed or
      presented by the proper person. The Trustee need not investigate any fact or
      matter stated in the document.

    

    (b)
       Before
      the Trustee acts or refrains from acting, it may require an Officers'
      Certificate or an Opinion of Counsel. The Trustee shall not be liable for any
      action it takes or omits to take in good faith in reliance on such Officers'
      Certificate or Opinion of Counsel.

    

    (c)
       The
      Trustee may act through agents and shall not be responsible for the misconduct
      or negligence of any agent appointed with due care. No Depository shall be
      deemed an agent of the Trustee and the Trustee shall not be responsible for
      any
      act or omission by any Depository.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    

    (d) The
      Trustee shall not be liable for any action it takes or omits to take in good
      faith which it believes to be authorized or within its rights or
      powers.

    

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

    

    (f)
       The
      Trustee shall be under no obligation to exercise any of the rights or powers
      vested in it by this Indenture at the request or direction of any of the Holders
      of Securities unless such Holders shall have offered to the Trustee reasonable
      security or indemnity against the costs, expenses and liabilities which might
      be
      incurred by it in compliance with such request or direction.

    

    Section
      7.3. Individual
      Rights of Trustee.

    

    The
      Trustee in its individual or any other capacity may become the owner or pledgee
      of Securities and may otherwise deal with the Company or an Affiliate with
      the
      same rights it would have if it were not Trustee. Any Agent may do the same
      with
      like rights. The Trustee is also subject to Sections 7.10 and 7.11.

    

    Section
      7.4. Trustee's
      Disclaimer.

    

    The
      Trustee shall not be responsible for and makes no representation as to the
      validity or adequacy of this Indenture or the Securities, it shall not be
      accountable for the Company's use of the proceeds from the Securities and it
      shall not be responsible for any statement or recital herein or any statement
      in
      the Securities or any other document in connection with the sale of the
      Securities or pursuant to this Indenture other than its
      authentication.

    

    Section
      7.5. Notice
      of
      Defaults.

    

    If
      a
      Default or Event of Default occurs and is continuing with respect to the
      Securities of any Series and if it is known to a Responsible Officer of the
      Trustee, the Trustee shall mail to each Securityholder of the Securities of
      that
      Series and, if any Bearer Securities are outstanding, publish on one occasion
      in
      an Authorized Newspaper, notice of a Default or Event of Default within 90
      days
      after it occurs or, if later, after a Responsible Officer of the Trustee has
      knowledge of such Default or Event of Default. Except in the case of a Default
      or Event of Default in payment of principal of or interest on any Security
      of
      any Series, the Trustee may withhold the notice if and so long as its corporate
      trust committee or a committee of its Responsible Officers in good faith
      determines that withholding the notice is in the interests of Securityholders
      of
      that Series.

    

    Section
      7.6.  Reports
      by Trustee to Holders.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    

    Within
      60
      days after [date] in each year, the Trustee shall transmit by mail to all
      Securityholders, as their names and addresses appear on the register kept by
      the
      Registrar and, if any Bearer Securities are outstanding, publish in an
      Authorized Newspaper, a brief report dated as of such [date], in accordance
      with, and to the extent required under, TIA Section 313.

    

    A
      copy of
      each report at the time of its mailing to Securityholders of any Series shall
      be
      filed with the SEC and each stock exchange on which the Securities of that
      Series are listed. The Company shall promptly notify the Trustee when Securities
      of any Series are listed on any stock exchange.

    

    Section
      7.7. Compensation
      and Indemnity.

    

    The
      Company shall pay to the Trustee from time to time reasonable compensation
      for
      its services. The Trustee's compensation shall not be limited by any law on
      compensation of a trustee of an express trust. The Company shall reimburse
      the
      Trustee upon request for all reasonable out-of-pocket expenses incurred by
      it.
      Such expenses shall include the reasonable compensation and expenses of the
      Trustee's agents and counsel.

    

    The
      Company shall indemnify the Trustee (including the cost of defending itself)
      against any loss, liability or expense incurred by it except as set forth in
      the
      next paragraph in the performance of its duties under this Indenture as Trustee
      or Agent. The Trustee shall notify the Company promptly of any claim for which
      it may seek indemnity. The Company shall defend the claim and the Trustee shall
      cooperate in the defense. The Trustee may have separate counsel and the Company
      shall pay the reasonable fees and expenses of such counsel. The Company need
      not
      pay for any settlement made without its consent, which consent shall not be
      unreasonably withheld. This indemnification shall apply to officers, directors,
      employees, shareholders and agents of the Trustee.

    

    The
      Company need not reimburse any expense or indemnify against any loss or
      liability determined by a court to have been incurred by the Trustee or by
      any
      officer, director, employee, shareholder or agent of the Trustee through
      negligence or bad faith.

    

    To
      secure
      the Company's payment obligations in this Section 7.7, the Trustee shall have
      a
      lien prior to the Securities of any Series on all money or property held or
      collected by the Trustee, except that held in trust to pay principal and
      interest on particular Securities of that Series.

    

    When
      the
      Trustee incurs expenses or renders services after an Event of Default specified
      in Section 6.1(e) or (f) occurs, the expenses and the compensation for the
      services are intended to constitute expenses of administration under any
      Bankruptcy Law.

    

    Section
      7.8. Replacement
      of Trustee.

    

    A
      resignation or removal of the Trustee and appointment of a successor Trustee
      shall become effective only upon the successor Trustee's acceptance of
      appointment as provided in this Section 7.8.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    

    The
      Trustee may resign with respect to the Securities of one or more Series by
      so
      notifying the Company. The Holders of a majority in principal amount of the
      Securities of any Series may remove the Trustee with respect to that Series
      by
      so notifying the Trustee and the Company in writing. The Company may remove
      the
      Trustee with respect to Securities of one or more Series if:

    

    (a) the
      Trustee fails to comply with Section 7.10;

    

    (b)
       the
      Trustee is adjudged bankrupt or insolvent or an order for relief is entered
      with
      respect to the Trustee under any Bankruptcy Law;

    

    (c) a
      Custodian or public officer takes charge of the Trustee or its property;
      or

    

    (d) the
      Trustee becomes incapable of acting.

    

    If
      the
      Trustee resigns or is removed or if a vacancy exists in the office of Trustee
      for any reason, the Company shall promptly appoint a successor Trustee. Within
      one year after the successor Trustee takes office, the Holders of a majority
      in
      principal amount of the then outstanding Securities may appoint a successor
      Trustee to replace the successor Trustee appointed by the Company.

    

    If
      a
      successor Trustee with respect to the Securities of any one or more Series
      does
      not take office within 60 days after the retiring Trustee resigns or is removed,
      the retiring Trustee, the Company or the Holders of at least 10% in principal
      amount of the Securities of the applicable Series may petition any court of
      competent jurisdiction for the appointment of a successor Trustee.

    

    If
      the
      Trustee with respect to the Securities of any one or more Series fails to comply
      with Section 7.10, any Securityholder of the applicable Series may petition
      any
      court of competent jurisdiction for the removal of the Trustee and the
      appointment of a successor Trustee.

    

    A
      successor Trustee shall deliver a written acceptance of its appointment to
      the
      retiring Trustee and to the Company. Immediately after that, the retiring
      Trustee shall transfer all property held by it as Trustee to the successor
      Trustee subject to the lien provided for in Section 7.7, the resignation or
      removal of the retiring Trustee shall become effective, and the successor
      Trustee shall have all the rights, powers and duties of the Trustee with respect
      to each Series of Securities for which it is acting as Trustee under this
      Indenture. A successor Trustee shall mail a notice of its succession to each
      Securityholder of each such Series and, if any Bearer Securities are
      outstanding, publish such notice on one occasion in an Authorized Newspaper.
      Notwithstanding replacement of the Trustee pursuant to this Section 7.8, the
      Company's obligations under Section 7.7 hereof shall continue for the benefit
      of
      the retiring trustee with respect to reasonable expenses and liabilities
      incurred by it prior to such replacement.

    

    Section
      7.9.  Successor
      Trustee by Merger, Etc.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    

    If
      the
      Trustee consolidates with, merges or converts into, or transfers all or
      substantially all of its corporate trust business to, another corporation,
      the
      successor corporation without any further act shall be the successor
      Trustee.

    

    Section
      7.10. Eligibility;
      Disqualification.

    

    This
      Indenture shall always have a Trustee who satisfies the requirements of TIA
      Section 310(a)(1), (2) and (5). The Trustee shall always have a combined capital
      and surplus of at least $25,000,000 as set forth in its most recent published
      annual report of condition. The Trustee shall comply with TIA Section
      310(b).

    

    Section
      7.11. Preferential
      Collection of Claims Against Company.

    

    The
      Trustee is subject to TIA Section 311(a), excluding any creditor relationship
      listed in TIA Section 311(b). A Trustee who has resigned or been removed shall
      be subject to TIA Section 311(a) to the extent indicated.

    

    ARTICLE
      VIII.

    SATISFACTION
      AND DISCHARGE; DEFEASANCE

    

    Section
      8.1. Satisfaction
      and Discharge of Indenture.

    

    This
      Indenture shall upon Company Order cease to be of further effect (except as
      hereinafter provided in this Section 8.1), and the Trustee, at the expense
      of
      the Company, shall execute proper instruments acknowledging satisfaction and
      discharge of this Indenture, when

    

    (a) either

    

    (i) all
      Securities theretofore authenticated and delivered (other than Securities that
      have been destroyed, lost or stolen and that have been replaced or paid) have
      been delivered to the Trustee for cancellation; or

    

    (ii) all
      such
      Securities not theretofore delivered to the Trustee for cancellation pursuant
      to
      (i) above

    

    (1)
       have
      become due and payable, or

    

    (2)
       will
      become due and payable at their Stated Maturity within one year, or

    

    (3)
       are
      to be
      called for redemption within one year under arrangements satisfactory to the
      Trustee for the giving of notice of redemption by the Trustee in the name,
      and
      at the expense, of the Company, or

    

    (4)
       are
      deemed paid and discharged pursuant to Section 8.3, as applicable;

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    

    and
      the
      Company, in the case of (1), (2) or (3) above, has deposited or caused to be
      deposited with the Trustee in trust an amount, without reinvestment, which
      is
      sufficient for the purpose of paying and discharging the entire indebtedness
      on
      such Securities not theretofore delivered to the Trustee for cancellation,
      for
      principal and interest to the date of such deposit (in the case of Securities
      which have become due and payable on or prior to the date of such deposit)
      or to
      the Stated Maturity or redemption date, as the case may be;

    

    (b)
       the
      Company has paid or caused to be paid all other sums payable hereunder by the
      Company; and

    

    (c)
       the
      Company has delivered to the Trustee an Officers' Certificate and an Opinion
      of
      Counsel, each stating that all conditions precedent herein provided for relating
      to the satisfaction and discharge of this Indenture have been complied
      with.

    

    Notwithstanding
      the satisfaction and discharge of this Indenture, the obligations of the Company
      to the Trustee under Section 7.7, and, if money shall have been deposited with
      the Trustee pursuant to clause (a) of this Section, the provisions of Sections
      2.5, 2.8, 2.9, 8.1, 8.2 and 8.5 shall survive.

    

    Section
      8.2. Application
      of Trust Funds; Indemnification.

    

    (a) Subject
      to the provisions of Section 8.5, all money deposited with the Trustee pursuant
      to Section 8.1, all money and Government Obligations deposited with the Trustee
      pursuant to Section 8.3 or 8.4 and all money received by the Trustee in respect
      of Government Obligations deposited with the Trustee pursuant to Section 8.3
      or
      8.4, shall be held in trust and applied by it, in accordance with the provisions
      of the Securities and this Indenture, to the payment, either directly or through
      any Paying Agent (including the Company acting as its own Paying Agent) as
      the
      Trustee may determine, to the persons entitled thereto, of the principal and
      interest for whose payment such money has been deposited with or received by
      the
      Trustee or to make mandatory sinking fund payments or analogous payments as
      contemplated by Sections 8.3 or 8.4.

    

    (b)
       The
      Company shall pay and shall indemnify the Trustee against any tax, fee or other
      charge imposed on or assessed against Government Obligations deposited pursuant
      to Sections 8.3 or 8.4 or the interest and principal received in respect of
      such
      Government Obligations other than any payable by or on behalf of
      Holders.

    

    (c)
       The
      Trustee shall deliver or pay to the Company from time to time upon Company
      Request any Government Obligations or money held by it as provided in Sections
      8.3 or 8.4 which, in the opinion of a nationally recognized firm of independent
      certified public accountants expressed in a written certification thereof
      delivered to the Trustee, are then in excess of the amount thereof which then
      would have been required to be deposited for the purpose for which such
      Government Obligations or money were deposited or received. This provision
      shall
      not authorize the sale by the Trustee of any Government Obligations held under
      this Indenture.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    

    Section
      8.3. Legal
      Defeasance of Securities of any Series.

    

    Unless
      this Section 8.3 is otherwise specified, pursuant to subparagraph 2.2.17, to
      be
      inapplicable to Securities of any Series, the Company shall be deemed to have
      paid and discharged the entire indebtedness on all the outstanding Securities
      of
      such Series on the date of the deposit referred to in subparagraph (c)(1)
      hereof, and the provisions of this Indenture, as it relates to such outstanding
      Securities of such Series, shall no longer be in effect (and the Trustee, at
      the
      expense of the Company, shall, at Company Request, execute proper instruments
      acknowledging the same), except as to:

    

    (a) the
      rights of Holders of Securities of such Series to receive, from the trust funds
      described in subparagraph (c)(1) hereof, (i) payment of the principal of and
      each installment of principal of and interest on the outstanding Securities
      of
      such Series on the Stated Maturity of such principal or installment of principal
      or interest and (ii) the benefit of any mandatory sinking fund payments
      applicable to the Securities of such Series on the day on which such payments
      are due and payable in accordance with the terms of this Indenture and the
      Securities of such Series;

    

    (b)
       the
      provisions of Sections 2.5, 2.8, 2.9, 8.2, 8.3 and 8.5; and

    

    (c)
       the
      rights, powers, trust and immunities of the Trustee hereunder;

    

    provided
      that, the following conditions shall have been satisfied:

    

    (1) The
      Company shall have irrevocably deposited with the Trustee, in trust, (i)
      sufficient funds in the currency or currency unit in which the Securities of
      such Series are denominated to pay, without reinvestment, the principal of
      and
      interest to Stated Maturity (or redemption) on, the Securities of such Series,
      or (ii) such amount of direct obligations of, or obligations the principal
      of
      and interest on which are fully guaranteed by, the government which issued
      the
      currency in which the Securities of such series are denominated ("Government
      Obligations"), and which are not subject to prepayment, redemption or call,
      as
      will, together with the predetermined and certain income to accrue thereon
      without consideration of any reinvestment thereof, be sufficient to pay when
      due
      the principal of, and interest to Stated Maturity (or redemption) on, the
      Securities of such Series.

    

    (2) The
      Company shall (i) have delivered an Opinion of Counsel that the Company has
      met
      all of the conditions precedent to such defeasance and that the Holders of
      the
      Securities of such Series will not recognize income, gain or loss for United
      States Federal income tax purposes as a result of such defeasance, and will
      be
      subject to tax in the same manner as if no defeasance and discharge or covenant
      defeasance, as the case may be, had occurred or (ii) the Company shall have
      delivered to the Trustee an Opinion of Counsel to the effect that (A) the
      Company has received from, or there has been published by, the Internal Revenue
      Service a ruling or (B) since the date this Indenture was first executed, there
      has been a change in the applicable federal income tax law, in either case
      to
      the effect that, and based thereon such Opinion of Counsel in the United States
      shall confirm that, the holders of outstanding Securities of that particular
      Series will not recognize income, gain or loss for federal income tax purposes
      as a result of such defeasance.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    

    Section
      8.4. Covenant
      Defeasance.

    

    Unless
      this Section 8.4 is otherwise specified pursuant to subparagraph 2.2.17 to
      be
      inapplicable to Securities of any Series, on the date of the deposit referred
      to
      in subparagraph (a) hereof, the Company may omit to comply with any term,
      provision or condition set forth under Sections 4.2, 4.3, 4.4, 4.5 and 5.1
      as
      well as any additional covenants contained in a supplemental indenture hereto
      for a particular Series of Securities or a Board Resolution or an Officers'
      Certificate delivered pursuant to Section 2.2.21 (and the failure to comply
      with
      any such covenants shall not constitute a Default or Event of Default under
      Section 6.1) and the occurrence of any event described in clause (e) of Section
      6.1 shall not constitute a Default or Event of Default hereunder, with respect
      to the Securities of such Series, provided that the following conditions shall
      have been satisfied:

    

    (a) The
      Company shall have irrevocably deposited with the Trustee, in trust, (i)
      sufficient funds in the currency or currency unit in which the Securities of
      such Series are denominated to pay the principal of and interest to Stated
      Maturity (or redemption) on, the Securities of such Series, or (ii) such amount
      of Government Obligations, which are not subject to prepayment, redemption
      or
      call, as will, together with the predetermined and certain income to accrue
      thereon without consideration of any reinvestment thereof, be sufficient to
      pay
      when due the principal of, and interest to Stated Maturity (or redemption)
      on,
      the Securities of such Series.

    

    (b) The
      Company shall have delivered an Opinion of Counsel that the Company has met
      all
      of the conditions precedent to such defeasance and that the Holders of the
      Securities of such series will not recognize income, gain or loss for United
      States Federal income tax purposes as a result of such defeasance, and will
      be
      subject to tax in the same manner as if no defeasance and discharge or covenant
      defeasance, as the case may be, had occurred.

    

    Section
      8.5. Repayment
      to Company.

    

    The
      Trustee and the Paying Agent shall pay to the Company upon request any money
      held by them for the payment of principal and interest that remains unclaimed
      for two years. After that, Securityholders entitled to the money must look
      to
      the Company for payment as general creditors unless an applicable abandoned
      property law designates another person.

    

    ARTICLE
      IX.

    AMENDMENTS
      AND WAIVERS

    

    Section
      9.1.  Without
      Consent of Holders.

    

    The
      Company and the Trustee may amend or supplement this Indenture or the Securities
      of one or more Series without the consent of any Securityholder:

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    

    (a) to
      evidence the succession of another corporation to the Company and the assumption
      by any such successor of the covenants of the Company herein and in the
      Securities;

    

    (b) to
      add to
      the covenants, agreements and obligations of the Company for the benefit of
      the
      Holders of all of the Securities or any Series thereof, or to surrender any
      right or power herein conferred upon the Company;

    

    (c) to
      establish the forms or terms of Securities of any Series;

    

    (d) to
      evidence and provide for the acceptance of appointment hereunder by a successor
      Trustee with respect to the Securities of one or more series and to 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, pursuant to the requirements of Section 7.8;

    

    (e) to
      cure
      any ambiguity, defect or inconsistency;

    

    (f) to
      add
      to, change or eliminate any of the provisions of this Indenture (which addition,
      change or elimination may apply to one or more Series of Securities), provided
      that any such addition, change or elimination shall neither (i) apply to any
      Security of any Series created prior to the execution of such supplemental
      indenture and entitled to the benefit of such provision nor (ii) modify the
      rights of the Holder of any such Security with respect to such
      provision;

    

    (g) to
      secure
      the Securities; or

    

    (h) to
      make
      any other change that does not adversely affect the rights of any Securityholder
      in any material respect.

    

    Section
      9.2. With
      Consent of Holders.

    

    With
      the
      written consent of the Holders of at least a majority in aggregate principal
      amount of the outstanding Securities of each Series affected by such
      supplemental indenture, the Company and the Trustee may amend this Indenture
      or
      the Securities of any Series or may enter into an indenture or indentures
      supplemental hereto for the purpose of adding any provisions to or changing
      in
      any manner or eliminating any of the provisions of this Indenture or of
      modifying in any manner the rights of the Holders of the Securities of such
      series and any related coupons under this Indenture; provided, however, that
      no
      such amendment or supplemental indenture shall, without the consent of the
      Holder of each outstanding Security affected thereby:

    

    (a) change
      the Stated Maturity of the principal of, or any installment of principal or
      interest on, any such Security or reduce the principal amount thereof or the
      rate of interest thereon or any premium payable upon redemption thereof or
      reduce the amount of principal of any such Discount Security that would be
      due
      and payable upon a declaration of acceleration of maturity thereof pursuant
      to
      Section 6.2, or change the coin or currency in which, any principal of, or
      any
      installment of interest on, any such Security is payable, or impair the right
      to
      institute suit for the enforcement of any such payment on or after the Stated
      Maturity thereof (or, in the case of redemption, on or after the redemption
      date);

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    

    (b) reduce
      the percentage in principal amount of the outstanding Securities of any series,
      the consent of whose Holders is required for any such amendment or supplemental
      indenture, or the consent of whose Holders is required for any waiver (of
      compliance with certain provisions of this Indenture or certain defaults
      hereunder and their consequences) with respect to the Securities of such Series
      provided for in this Indenture; or

    

    (c) modify
      any of the provisions of this Section, Section 6.4 or 6.7, except to increase
      the percentage of outstanding Securities of such Series required for such
      actions to provide that certain other provisions of this Indenture cannot be
      modified or waived without the consent of the Holder of each outstanding
      Security affected thereby.

    

    A
      supplemental indenture which changes or eliminates any covenant or other
      provision of this Indenture which has expressly been included solely for the
      benefit of one or more particular Series of Securities, or which modifies the
      rights of the Holders of Securities of such Series with respect to such covenant
      or other provision, shall be deemed not to affect the rights under this
      Indenture of the Holders of Securities of any other Series.

    

    It
      shall
      not be necessary for the consent of the Holders under this Section 9.2 to
      approve the particular form of any proposed amendment or supplemental indenture,
      but it shall be sufficient if such consent approves the substance
      thereof.

    

    After
      an
      amendment or supplemental indenture under this Section 9.2 becomes effective,
      the Company shall mail to each Holder of the particular Securities affected
      thereby and, if any Bearer Securities affected thereby are outstanding, publish
      on one occasion in an Authorized Newspaper, a notice briefly describing the
      amendment. Any failure by the Company to mail or publish such notice, or any
      defect therein, shall not, however, in any way impair or affect the validity
      of
      any such amendment or supplemental indenture.

    

    Section
      9.3. Compliance
      with Trust Indenture Act.

    

    Every
      amendment to this Indenture or the Securities of one or more Series shall be
      set
      forth in a supplemental indenture hereto that complies with the TIA as then
      in
      effect.

    

    Section
      9.4.  Revocation
      and Effect of Consents.

    

    Until
      an
      amendment or waiver becomes effective, a consent to it by a Holder of a Security
      is a continuing consent by the Holder and every subsequent Holder of a Security
      or portion of a Security that evidences the same debt as the consenting Holder's
      Security, even if notation of the consent is not made on any Security. However,
      any such Holder or subsequent Holder may revoke the consent as to his Security
      or portion of a Security if the Trustee receives the notice of revocation before
      the date the amendment or waiver becomes effective.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    

    Any
      amendment or waiver once effective shall bind every Securityholder of each
      Series affected by such amendment or waiver unless it is of the type described
      in any of clauses (a) through (c) of Section 9.2. In that case, the amendment
      or
      waiver shall bind each Holder of a Security who has consented to it and every
      subsequent Holder of a Security or portion of a Security that evidences the
      same
      debt as the consenting Holder's Security.

    

    Section
      9.5. Notation
      on or Exchange of Securities.

    

    The
      Trustee may place an appropriate notation about an amendment or waiver on any
      Security of any Series thereafter authenticated. The Company in exchange for
      Securities of that Series may issue and the Trustee shall authenticate upon
      request new Securities of that Series that reflect the amendment or
      waiver.

    

    Section
      9.6. Trustee
      Protected.

    

    In
      executing, or accepting the additional trusts created by, any supplemental
      indenture permitted by this Article IX or the modifications thereby of the
      trusts created by this Indenture, the Trustee shall be entitled to receive,
      and
      (subject to Section 7.1) shall be fully protected in relying upon, an Opinion
      of
      Counsel stating that the execution of such supplemental indenture is authorized
      or permitted by this Indenture. The Trustee shall sign all supplemental
      indentures, except that the Trustee need not sign any supplemental indenture
      that adversely affects its rights.

    

    ARTICLE
      X.

    MISCELLANEOUS

    

    Section
      10.1. Trust
      Indenture Act Controls.

    

    If
      any
      provision of this Indenture limits, qualifies, or conflicts with another
      provision which is required or deemed to be included in this Indenture by the
      TIA, such required or deemed provision shall control.

    

      Section
      10.2. Notices.

    

    Any
      notice or communication by the Company or the Trustee to the other is duly
      given
      if in writing and delivered in person or mailed by first-class mail (registered
      or certified, return receipt requested), telecopier or overnight air courier
      guaranteeing next day delivery, to the other's address:

    

    if
      to the
      Company:

    

    Western
      Goldfields, Inc. 

    2
      Blor
      Street 

    Suite
      2102, P.O. Box 110

    Toronto,
      Ontario 

    Canada
      M4W 3EZ 

    Attention:
      Chief Financial Officer

    Fax:
      __________________________

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    

    if
      to the
      Trustee:

    ______________________________

    ______________________________

    ______________________________

    ______________________________

    Fax:
      ___________________________

    

    The
      Company or the Trustee by notice to the other may designate additional or
      different addresses for subsequent notices or communications.

    

    Any
      notice or communication to a Securityholder shall be mailed by first-class
      mail,
      certified or registered, return receipt requested, or by overnight courier
      guaranteeing next day delivery to his or her address shown on the register
      kept
      by the Registrar and, if any Bearer Securities are outstanding, published in
      an
      Authorized Newspaper. Failure to mail a notice or communication to a
      Securityholder of any Series or any defect in it shall not affect its
      sufficiency with respect to other Securityholders of that or any other
      Series.

    

    If
      a
      notice or communication is mailed, personally delivered or published in the
      manner provided above, within the time prescribed, it is duly given, whether
      or
      not the Securityholder receives it.

    

    If
      the
      Company mails a notice or communication to Securityholders, it shall mail a
      copy
      to the Trustee and each Agent at the same time.

    

    Section
      10.3. Communication
      by Holders with Other Holders.

    

    Securityholders
      of any Series may communicate pursuant to TIA Section 312(b) with other
      Securityholders of that Series or any other Series with respect to their rights
      under this Indenture or the Securities of that Series or all Series. The
      Company, the Trustee, the Registrar and anyone else shall have the protection
      of
      TIA Section 312(c).

    

    Section
      10.4. Certificate
      and Opinion as to Conditions Precedent.

    

    Upon
      any
      request or application by the Company to the Trustee to take any action under
      this Indenture, the Company shall furnish to the Trustee:

    

    (a) an
      Officers' Certificate stating that, in the opinion of the signers, all
      conditions precedent, if any, provided for in this Indenture relating to the
      proposed action have been complied with; and

    

    (b)
       an
      Opinion of Counsel stating that, in the opinion of such counsel, all such
      conditions precedent have been complied with.

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    

    Section
      10.5. Statements
      Required in Certificate or Opinion.

    

    Each
      certificate or opinion with respect to compliance with a condition or covenant
      provided for in this Indenture (other than a certificate provided pursuant
      to
      TIA Section 314(a)(4)) shall comply with the provisions of TIA Section 314(e)
      and shall include:

    

    (a) a
      statement that the person making such certificate or opinion has read such
      covenant or condition;

    

    (b)
       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;

    

    (c)
       a
      statement that, in the opinion of such person, he has made such examination
      or
      investigation as is necessary to enable him to express an informed opinion
      as to
      whether or not such covenant or condition has been complied with;
      and

    

    (d)
       a
      statement as to whether or not, in the opinion of such person, such condition
      or
      covenant has been complied with.

    

    Section
      10.6. Rules
      by
      Trustee and Agents.

    

    The
      Trustee may make reasonable rules for action by or a meeting of Securityholders
      of one or more Series. Any Agent may make reasonable rules and set reasonable
      requirements for its functions.

    

    Section
      10.7. Legal
      Holidays.

    

    Unless
      otherwise provided by Board Resolution, Officers' Certificate or supplemental
      indenture for a particular Series, a "Legal Holiday" is any day that is not
      a
      Business Day. If a payment date is a Legal Holiday at a place of payment,
      payment may be made at that place on the next succeeding day that is not a
      Legal
      Holiday, and no interest shall accrue for the intervening period.

    

    Section
      10.8.  No
      Recourse Against Others.

    

    A
      director, officer, employee or stockholder, as such, of the Company shall not
      have any liability for any obligations of the Company under the Securities
      or
      the Indenture or for any claim based on, in respect of or by reason of such
      obligations or their creation. Each Securityholder by accepting a Security
      waives and releases all such liability. The waiver and release are part of
      the
      consideration for the issue of the Securities. All Securities, including Global
      Securities, shall bear a legend in a form substantially setting forth the
      foregoing statements in this Section 10.8.

    

    Section
      10.9. Counterparts.

     

    
      
        
        

      

      
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    This
      Indenture may be executed in any number of counterparts and by the parties
      hereto in separate counterparts, each of which when so executed shall be deemed
      to be an original and all of which taken together shall constitute one and
      the
      same agreement.

    

    Section
      10.10.  Governing
      Laws.

    

    THIS
      INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE STATE OF
      NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT
      REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF THAT WOULD DEFER TO THE LAWS
      OF ANOTHER JURISDICTION.

    

    Section
      10.11. No
      Adverse Interpretation of Other Agreements.

    

    This
      Indenture may not be used to interpret another indenture, loan or debt agreement
      of the Company or a Subsidiary. Any such indenture, loan or debt agreement
      may
      not be used to interpret this Indenture.

    

    Section
      10.12.  Successors.

    

    All
      agreements of the Company in this Indenture and the Securities shall bind its
      successor. All agreements of the Trustee in this Indenture shall bind its
      successor.

    

    Section
      10.13.  Severability.

    

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

    

    Section
      10.14. Table
      of
      Contents, Headings, Etc.

    

    The
      Table
      of Contents, Cross Reference Table, and headings of the Articles and Sections
      of
      this Indenture have been inserted for convenience of reference only, are not
      to
      be considered a part hereof, and shall in no way modify or restrict any of
      the
      terms or provisions hereof.

    

    ARTICLE
      XI.

    SINKING
      FUNDS

    

    Section
      11.1. Applicability
      of Article.

    

    The
      provisions of this Article XI shall be applicable to any sinking fund for the
      retirement of the Securities of a Series, except as otherwise permitted or
      required by any form of Security of such Series issued pursuant to this
      Indenture.

    

    The
      minimum amount of any sinking fund payment provided for by the terms of the
      Securities of any Series is herein referred to as a "mandatory sinking fund
      payment" and any other amount provided for by the terms of Securities of such
      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 11.2. Each
      sinking fund payment shall be applied to the redemption of Securities of any
      Series as provided for by the terms of the Securities of such
      Series.

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    

    Section
      11.2.  Satisfaction
      of Sinking Fund Payments with Securities.

    

    The
      Company may, in satisfaction of all or any part of any sinking fund payment
      with
      respect to the Securities of any Series to be made pursuant to the terms of
      such
      Securities (1) deliver outstanding Securities of such Series to which such
      sinking fund payment is applicable (other than any of such Securities previously
      called for mandatory sinking fund redemption) and (2) apply as a credit
      Securities of such Series to which such sinking fund payment is applicable
      and
      which have been redeemed either at the election of the Company pursuant to
      the
      terms of such Series of Securities (except pursuant to any mandatory sinking
      fund) or through the application of permitted optional sinking fund payments
      or
      other optional redemptions pursuant to the terms of such Securities, provided
      that such Securities have not been previously so credited. Such Securities
      shall
      be received by the Trustee, together with an Officers' Certificate with respect
      thereto, not later than 15 days prior to the date on which the Trustee begins
      the process of selecting Securities for redemption, and shall be credited for
      such purpose by the Trustee at the 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. If as a result of the delivery or
      credit of Securities in lieu of cash payments pursuant to this Section 11.2.
      The
      principal amount of Securities of such Series to be redeemed in order to exhaust
      the aforesaid cash payment shall be less than $100,000, the Trustee need not
      call Securities of such Series for redemption, except upon receipt of a Company
      Order that such action be taken, and such cash payment shall be held by the
      Trustee or a Paying Agent and applied to the next succeeding sinking fund
      payment, provided, however, that the Trustee or such Paying Agent shall from
      time to time upon receipt of a Company Order pay over and deliver to the Company
      any cash payment so being held by the Trustee or such Paying Agent upon delivery
      by the Company to the Trustee of Securities of that Series purchased by the
      Company having an unpaid principal amount equal to the cash payment required
      to
      be released to the Company.

    

    Section
      11.3.  Redemption
      of Securities for Sinking Fund.

    

    Not
      less
      than 45 days (unless otherwise indicated in the Board Resolution, supplemental
      indenture hereto or Officers' Certificate in respect of a particular Series
      of
      Securities) prior to each sinking fund payment date for any Series of
      Securities, the Company will deliver to the Trustee an Officers' Certificate
      specifying the amount of the next ensuing mandatory sinking fund payment for
      that Series pursuant to the terms of that Series, the portion thereof, if any,
      which is to be satisfied by payment of cash and the portion thereof, if any,
      which is to be satisfied by delivering and crediting of Securities of that
      Series pursuant to Section 11.2. and the optional amount, if any, to be added
      in
      cash to the next ensuing mandatory sinking fund payment, and the Company shall
      thereupon be obligated to pay the amount therein specified. Not less than 30
      days (unless otherwise indicated in the Board Resolution, Officers' Certificate
      or supplemental indenture in respect of a particular Series of Securities)
      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 3.2 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 3.3. Such notice having been duly given, the redemption of such
      Securities shall be made upon the terms and in the manner stated in Sections
      3.4, 3.5 and 3.6.

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      XII. 

    GUARANTEES 

     

    Section
      12.1.  Unconditional
      Guarantee. 

     

    (a)
       Each
      Subsidiary Guarantor hereby, jointly and severally, unconditionally guarantees
      to each Holder and to the Trustee the due and punctual payment of the principal
      of, and interest on the Securities and all other amounts due and payable under
      this Indenture and the Securities by the Company whether at maturity, by
      acceleration, redemption, repurchase or otherwise, including, without
      limitation, interest on the overdue principal of and interest on the Securities,
      to the extent lawful, all in accordance with the terms hereof and thereof;
      subject, however, to the limitations set forth in this Article XII.

     

    (b)
       Failing
      payment when due of any amount so guaranteed for whatever reason, the Subsidiary
      Guarantors will be jointly and severally obligated to pay the same immediately.
      Each Subsidiary Guarantor hereby agrees that its obligations hereunder shall
      be
      unconditional, irrespective of the validity, regularity or enforceability of
      the
      Securities or this Indenture, the absence of any action to enforce the same,
      any
      waiver or consent by any Holder of the Securities with respect to any provisions
      hereof or thereof, the recovery of any judgment against the Company, any action
      to enforce the same or any other circumstance which might otherwise constitute
      a
      legal or equitable discharge or defense of a guarantor. Each Subsidiary
      Guarantor hereby waives diligence, presentment, demand of payments, filing
      of
      claims with a court in the event of insolvency or bankruptcy of the Company,
      any
      right to require a proceeding first against the Company, protest, notice and
      all
      demands whatsoever and covenants that this Subsidiary Guarantee will not be
      discharged except by complete performance of the obligations contained in the
      Securities, this Indenture and in the Subsidiary Guarantee. If any Holder or the
      Trustee is required by any court or otherwise to return to the Company, any
      Subsidiary Guarantor, or any custodian, trustee, liquidator or other similar
      official acting in relation to the Company or any Subsidiary Guarantor, any
      amount paid by the Company or any Subsidiary Guarantor to the Trustee or such
      Holder, the Subsidiary Guarantee, to the extent theretofore discharged, shall
      be
      reinstated in full force and effect. Each Subsidiary Guarantor agrees it shall
      not be entitled to any right of subrogation in relation to the Holders in
      respect of any obligations guaranteed hereby until payment in full of all
      obligations guaranteed hereby. Each Subsidiary Guarantor further agrees that,
      as
      between each Subsidiary Guarantor, on the one hand, and the Holders and the
      Trustee, on the other hand, (1) the maturity of the payment of principal of,
      interest, if any, and additional interest, if any, with respect to the
      Securities guaranteed hereby may be accelerated as provided in Article VI for
      the purposes of the applicable Subsidiary Guarantee, notwithstanding any stay,
      injunction or other prohibition preventing such acceleration in respect of
      the
      obligations guaranteed in this Indenture, and (2) in the event of any
      acceleration of such obligations as provided in Article VI, such obligations
      (whether or not due and payable) shall forthwith become due and payable by
      each
      Subsidiary Guarantor for the purpose of the applicable Subsidiary Guarantee.
      

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

    

    (c) A
      director, officer, employee or stockholder, as such, of an Subsidiary Guarantor
      shall not have any liability for any obligations of such Subsidiary Guarantor
      under this Indenture or for any claim based on, in respect of or by reason
      of
      such obligations or their creation.

     

    Section
      12.2.  Limitation
      of Subsidiary Guarantor's Liability. 

     

    Each
      Subsidiary Guarantor and by its acceptance hereof each Holder of Securities
      hereby confirms that it is the intention of all such parties that the guarantee
      by such Subsidiary Guarantor pursuant to its Subsidiary Guarantee not constitute
      a fraudulent transfer or conveyance for purposes of any federal, state or
      foreign law. To effectuate the foregoing intention, the Holders of Securities
      and each Subsidiary Guarantor hereby irrevocably agree that the obligations
      of
      each Subsidiary Guarantor under its Subsidiary Guarantee shall be limited to
      the
      maximum amount as will, after giving effect to all other contingent and fixed
      liabilities of such Subsidiary Guarantor and after giving effect to any
      collections from or payments made by or on behalf of any other Subsidiary
      Guarantor in respect of the obligations of such other Subsidiary Guarantor
      under
      its Subsidiary Guarantee, result in the obligations of such Subsidiary Guarantor
      under the Subsidiary Guarantee not constituting a fraudulent conveyance or
      fraudulent transfer under federal, state or foreign law. 

    

    Section
      12.3.  Contribution.
      

     

    In
      order
      to provide for just and equitable contribution among the Subsidiary Guarantors,
      the Subsidiary Guarantors agree, inter se, that in the event any payment or
      distribution is made by any Subsidiary Guarantor (a "Funding Guarantor") under
      the Subsidiary Guarantee, such Funding Guarantor shall be entitled to a
      contribution from each other Subsidiary Guarantor for all payments, damages
      and
      expenses incurred by the Funding Guarantor in discharging the Company's
      obligations with respect to the Securities or any other Subsidiary Guarantor's
      obligations with respect to the Subsidiary Guarantee. 

     

    Section
      12.4.  Execution
      and Delivery of Subsidiary Guarantees. 

     

    Each
      Subsidiary Guarantor hereby agrees that its execution and delivery of this
      Indenture or any supplemental indentures pursuant to Article IX shall evidence
      its Subsidiary Guarantee set forth in Section 12.1 without the need for any
      further notation on the Securities. 

     

    Each
      of
      the Subsidiary Guarantors hereby agrees that its Subsidiary Guarantee set forth
      in Section 12.1 shall remain in full force and effect notwithstanding any
      failure to endorse on each Security a notation relating to such Subsidiary
      Guarantee. 

     

    If
      an
      Officer of a Subsidiary Guarantor whose signature is on this Indenture or any
      supplemental indenture no longer holds that office at the time the Trustee
      authenticates such Securities or at any time thereafter, such Subsidiary
      Guarantor's Subsidiary Guarantee shall be valid nevertheless. 

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

     

    The
      delivery of any Security by the Trustee, after the authentication thereof
      hereunder, shall constitute due delivery of any Subsidiary Guarantee set forth
      in this Indenture on behalf of the Subsidiary Guarantor. 

     

    Section
      12.5 Addition
      of Subsidiary Guarantors.

    

    Any
      Person that was not a Subsidiary Guarantor on the date hereof may become a
      Subsidiary Guarantor by executing and delivering to the Trustee (A) a
      supplemental indenture in form and substance satisfactory to the Trustee, which
      subjects such Person to the provisions (including the representations and
      warranties) of this Indenture as a Subsidiary Guarantor and (B) an Opinion
      of
      Counsel and Officer's Certificate to the effect that such supplemental indenture
      has been duly authorized and executed by such Person and constitutes the legal,
      valid, binding and enforceable obligation of such Person (subject to customary
      exceptions concerning creditor's rights and equitable principles as may be
      acceptable to the Trustee in its discretion and provided that no opinion need
      be
      rendered concerning the enforceability of the Subsidiary
      Guarantee).

    

    Section
      12.6.  Severability.
      

     

    In
      case
      any provision of this Subsidiary Guarantee shall be invalid, illegal or
      unenforceable, that portion of such provision that is not invalid, illegal
      or
      unenforceable shall remain in effect, and the validity, legality, and
      enforceability of the remaining provisions shall not in any way be affected
      or
      impaired thereby. 

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

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

     

    
      	 	 	 
	 	WESTERN GOLDFIELDS, INC.
	 
 	 
 	 
 
	 	 	 
	 	
              

              By:

              Title:

            

    

    
      	 	 	 
	 	[TRUSTEE]
	 
 	 
 	 
 
	
            	 	 
	 	
              

              By:

              Title:

            

      	 	 	 
	 	 
	 	 
	 	 
	 	SUBSIDIARY
              GUARANTORS, AS APPLICABLE
	 
 	 
 	 
 
	
            	
              

            
	 	
            
	 	
            

    

     

    
      
        
        

      

      
        46

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