Document:

EXHIBIT 10.1

***Confidential  treatment has been requested for portions of this exhibit.  The
copy  filed  herewith  omits  the  information  subject  to the  confidentiality
request.  Omissions are designated as [***]. A complete  version of this exhibit
has been filed separately with the Securities and Exchange Commission.

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EXECUTION COPY

                       EXCLUSIVE LICENSE, DEVELOPMENT AND
                           COMMERCIALIZATION AGREEMENT

                                 BY AND BETWEEN

                        MSD WARWICK (MANUFACTURING) LTD.

                                       AND

                            DOV PHARMACEUTICAL, INC.

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         EXCLUSIVE LICENSE, DEVELOPMENT AND COMMERCIALIZATION AGREEMENT

      THIS AGREEMENT  (including all exhibits,  schedules and other attachments,
this  "Agreement"),  effective as of the Closing Date  (defined  below),  by and
between MSD WARWICK  (MANUFACTURING)  LTD., a corporation organized and existing
under the laws of Bermuda  ("MERCK"),  with a  principal  place of  business  at
Chesney   House,   96  Pitts  Bay  Road,   Pembroke  HM  08,   Bermuda  and  DOV
Pharmaceutical,  Inc., a corporation  organized  and existing  under the laws of
Delaware,  with  a  principal  place  of  business  at  433  Hackensack  Avenue,
Hackensack, NJ 07601 ("DOV").

                                    RECITALS:

      WHEREAS,  DOV has developed DOV Know-How (as hereinafter  defined) and has
rights to DOV Patent Rights (as hereinafter defined); and

      WHEREAS, MERCK and DOV desire to enter into a collaboration to develop the
Compound  (as  hereinafter  defined)  upon the  terms and  conditions  set forth
herein; and

      WHEREAS, MERCK desires to obtain a license under the DOV Patent Rights and
DOV Know-How,  upon the terms and conditions set forth herein and DOV desires to
grant such a license; and

      WHEREAS,  MERCK  desires to obtain a right of first  refusal to obtain the
rights to develop DOV 102,677 for the  treatment  and/or  prevention  of anxiety
and/or depression;

      NOW, THEREFORE,  in consideration of the foregoing premises and the mutual
covenants herein contained, the Parties hereby agree as follows:

1.    DEFINITIONS

      Unless specifically set forth to the contrary herein, the following terms,
whether used in the singular or plural,  shall have the respective  meanings set
forth below:

1.1   "ACT" shall mean, as applicable,  the United States Federal Food, Drug and
      Cosmetic  Act,  21 U.S.C.  ss.ss.  301 et seq.,  and/or the Public  Health
      Service  Act, 42 U.S.C.  ss.ss.  262 et seq.,  as such may be amended from
      time to time.

1.2   "AFFILIATE"  shall mean, in relation to a Party, any corporation or entity
      that,  directly  or  indirectly  owns,  is  owned  by or is  under  common
      ownership with such Party. For purposes of this definition, the term "own"
      (as used in the terms  "owns,"  "owned by" and "under  common  ownership")
      means direct or indirect  beneficial  or legal  ownership of fifty percent
      (50%) or more of the voting interest in, or fifty percent (50%) or more of
      the equity of or the right to appoint  fifty  percent (50%) or more of the
      directors or managers of that  corporation or other business entity or the
      power to direct or cause the direction of the  management  and policies of
      such  corporation or entity,  whether  pursuant to the ownership of voting
      securities, by contract or otherwise.

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1.3   "ASYMMETRIC PROCESS" shall mean, (i) with regard to the manufacture of DOV
      21,947 , a process whereby no significant amount of DOV 102,677 is created
      and (ii) with regard to the manufacture of DOV 102,677,  a process whereby
      no significant amount of DOV 21,947 is created.

1.4   "BANKRUPTCY EVENT" is defined in Section 9.3.2.

1.5   "CALENDAR  QUARTER"  shall  mean  the  respective  periods  of  three  (3)
      consecutive  calendar months ending on March 31, June 30, September 30 and
      December 31.

1.6   "CALENDAR  YEAR" shall mean each  successive  period of twelve (12) months
      commencing on January 1 and ending on December 31.

1.7   "CHANGE OF CONTROL" is defined in Section 12.2.

1.8   "CLINICAL  TRIAL" shall mean a Phase I Clinical  Trial,  Phase II Clinical
      Trial, Phase III Clinical Trial and/or Phase IV Clinical Trial.

1.9   "CLOSING DATE" shall mean the date upon which the HSR Conditions have been
      met.

1.10  "COLLABORATION  TERM"  shall mean the  duration of the  Collaboration,  as
      described more fully in Section 2.7.

1.11  "COLLABORATION" shall mean the activities undertaken by the Parties hereto
      as set forth in Article 2.

1.12  "COMBINATION  DRUG" shall mean a Product that  includes one or more active
      ingredients  other  than  Compound  in  combination  with  Compound.   All
      references  to  Product  in this  Agreement  shall be  deemed  to  include
      Combination Drug.

1.13  "COMMERCIALLY  REASONABLE  EFFORTS" shall mean with respect to the efforts
      to be  expended  by a Party  with  respect to any  objective,  reasonable,
      diligent,  good faith efforts to accomplish  such  objective as such Party
      would  normally  use to  accomplish  a  similar  objective  under  similar
      circumstances,  it being  understood  and agreed that with  respect to the
      research,  development or commercialization  of Compound or Product,  such
      efforts shall be  substantially  equivalent to those efforts and resources
      commonly used by a Party for a similar  pharmaceutical product owned by it
      or to which it has  rights,  which  product  is at a similar  stage in its
      development or product life and is of similar market potential taking into
      account  efficacy,  safety,  approved  labeling,  the  competitiveness  of
      alternative products in the marketplace,  the patent and other proprietary
      position of the product,  the likelihood of regulatory  approval given the
      Regulatory Authority involved,  the profitability of the product including
      the  royalties  payable  to  licensors  of  patent  or other  intellectual
      property  rights,   alternative   products  and  other  relevant  factors.
      Expenditures  by MERCK for development of the Product or Compound that are
      comparable to expenditures by MERCK for similar products or compounds at a
      similar  commercial  value and stage of  development  shall be evidence of
      Commercially Reasonable Efforts.  Commercially Reasonable Efforts shall be
      determined on a market-by-market and Indication-by-Indication  basis for a
      particular  Compound or Product,  and it is anticipated  that the level of
      effort will be different for different markets, and will change over time,
      reflecting  changes  in  the  status  of the  Product  and  the  market(s)
      involved.  The  royalties  and other  payments made or required to be made
      hereunder or under the Wyeth Agreement shall not be factors in determining
      whether  a Party has used  Commercially  Reasonable  Efforts,  (that is, a
      Party may not apply lesser resources or efforts in support of a Product or
      Compound because such Product or Compound is subject to a royalty on sales
      or to any other payments under this Agreement or the Wyeth Agreement).

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1.14  "COMMITTEE"  shall mean the joint  development  committee  established  to
      facilitate the Collaboration, as more fully described in Section 2.3.1.

1.15  "COMPOUND"  shall mean DOV 21,947,  and/or DOV 216,303.  For  avoidance of
      doubt, "Compound" does not include DOV 102,677.

1.16  "CONFIDENTIAL  INFORMATION" shall mean any Information disclosed by either
      Party that such Party has either marked as confidential or proprietary, or
      has identified in writing as  confidential  or  proprietary  within thirty
      (30) days of  disclosure  to the other  Party ;  provided,  however,  that
      (subject  in all cases to Article 4 below,  including  without  limitation
      Sections  4.2 and  4.4)  information  regarding  the  Collaboration,  or a
      disclosing Party's business plans, strategies, technology,  manufacturing,
      research  and  development,  and  products  or  services  shall be  deemed
      Confidential  Information of the disclosing Party even if not so marked or
      identified.

1.17  "CONTROL",  "CONTROLS" OR "CONTROLLED  BY" shall mean, with respect to any
      item of or right  under DOV Patent  Rights,  DOV  Know-How,  MERCK  Patent
      Rights,  MERCK Know-How or MERCK Termination  Know-How,  the possession of
      (whether by ownership or license,  other than pursuant to this Agreement),
      or the ability of a Party and/or its Controlled Affiliates to grant access
      to, or a license or  sublicense  of,  such item or right as  provided  for
      herein without  violating the terms of any agreement or other  arrangement
      with any Third  Party  existing  at the time such Party  would be required
      hereunder  to grant the other Party such access or license or  sublicense.
      For avoidance of doubt,  intellectual  property rights that are Controlled
      by a Controlled  Affiliate of a Party shall be deemed to be  Controlled by
      such Party.

1.18  "CONTROLLED AFFILIATE" shall mean, in relation to a Party, any corporation
      or entity that,  directly or indirectly  controls,  is controlled by or is
      under common control with such Party. For purposes of this definition, the
      term  "control"  (as used in the  terms  "controls,"  "controlled  by" and
      "under  common  control")  means  direct or indirect  beneficial  or legal
      ownership of more than fifty percent  (50%) of the voting  interest in, or
      more than  fifty  percent  (50%) of the  equity of or the right to appoint
      more  than  fifty  percent  (50%) of the  directors  or  managers  of that
      corporation or other  business  entity or the power to direct or cause the
      direction of the  management  and policies of such  corporation or entity,
      whether  pursuant to the  ownership of voting  securities,  by contract or
      otherwise.

1.19  "CO-PROMOTION  AGREEMENT" shall have the meaning provided for in paragraph
      2 of Schedule 3.7.

1.20  "CRO" is defined in Section 2.2.1 hereof.

1.21  "DDMAC" shall mean the United States Food and Drug Administration Division
      of Drug Marketing, Advertising, and Communications.

1.22  "DETAIL" shall mean a product presentation in a face-to-face meeting in an
      individual  or  group  practice  setting  between  a  professional   sales
      representative  and a Target  Prescriber  in which one or more key product
      benefits are verbally  presented in a balanced  manner.  For  avoidance of
      doubt,  a Detail does not include a reminder or sample  drop.  "Detailing"
      shall mean the act of presenting a Detail.

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1.23  "DOV   21,947"   shall  mean  the   compound   having  a   chemical   name
      (+)-1-(3,4-dichlorophenyl)-3-azabicyclo[3.1.0]hexane,     including    all
      solvates, Prodrugs, salts and polymorphs thereof.

1.24  "DOV   102,677"   shall  mean  the   compound   having  a  chemical   name
      (-)-1-(3,4-dichlorophenyl)-3-azabicyclo[3.1.0]hexane,     including    all
      solvates, Prodrugs, salts and polymorphs thereof.

1.25  "DOV   216,303"   shall  mean  the   compound   having  a  chemical   name
      (+)-1-(3,4-dichlorophenyl)-3-azabicyclo[3.1.0]hexane,     including    all
      solvates, Prodrugs, salts and polymorphs thereof.

1.26  "DOV INFORMATION AND INVENTIONS" shall mean all protocols, formulas, data,
      Inventions, know-how and trade secrets, patentable or otherwise, resulting
      from the Collaboration developed or invented solely by employees of DOV or
      other persons not employed by MERCK acting on behalf of DOV.

1.27  "DOV KNOW-HOW" shall mean all information and materials, including but not
      limited  to  discoveries,  improvements,  processes,  methods,  protocols,
      formulas,  data  (including  data and results from  research,  preclinical
      development and Clinical Trials), inventions (including without limitation
      DOV  Information  and  Inventions  and DOV's and/or any of its  Controlled
      Affiliates'  rights in Joint  Information  and  Inventions),  know-how and
      trade  secrets,  patentable or otherwise,  which (i) are Controlled by DOV
      and/or any of its  Controlled  Affiliates as of the Closing Date or become
      Controlled by DOV and/or its Controlled Affiliates during the term of this
      Agreement,  (ii) are not generally known and (iii) are necessary or useful
      to  MERCK  in  connection   with  the   Collaboration   or  the  research,
      development, manufacture, marketing, use or sale of Compound or Product in
      the Territory, excluding, however, any MERCK Know-How.

1.28  "DOV PATENT RIGHTS" shall mean any and all Patent Rights Controlled by DOV
      or its Controlled  Affiliates as of the Closing Date or become  Controlled
      by DOV and/or its Controlled  Affiliates during the term of this Agreement
      that (i) would be practiced by the manufacture,  use, sale, offer for sale
      or  importation  of  Compound  or  Product;  or (ii)  claim or  cover  DOV
      Information  and Inventions,  including,  but not limited to, those Patent
      Rights listed on Schedule 1.28.

1.29  "DRUG   DEVELOPMENT   PLAN"  shall  mean  the   preclinical  and  clinical
      development  plan for Compound(s) and Product(s),  developed in accordance
      with the Collaboration as described in Article 2.

1.30  "EMEA"  shall mean the  European  Agency for the  Evaluation  of Medicinal
      Products (a cross-national Regulatory Authority in the European Union) and
      any  successor   Governmental  Authority  having  substantially  the  same
      function.

1.31  "EXECUTION DATE" shall mean the date of last execution by both Parties.

1.32  "FDA" shall mean the United States Food and Drug  Administration,  and any
      successor Governmental Authority having substantially the same function.

1.33  "FIELD"  shall mean (i) in the case of DOV  21,947,  the use of DOV 21,947
      and/or pharmaceutical preparations in final form containing DOV 21,947 for
      the  treatment  and/or  prevention  and/or  diagnosis  of diseases  and/or
      medical conditions in humans and/or animals; and (ii) in the case of

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      DOV 216,303, the use of DOV 216,303 and/or pharmaceutical  preparations in
      final form  containing  DOV 216,303 for the  treatment  and/or  prevention
      and/or  diagnosis of  depression,  anxiety or  addiction in humans  and/or
      animals.

1.34  "FILING" of an NDA shall mean the acceptance by a Regulatory  Authority of
      an NDA for filing.

1.35  "FIRST COMMERCIAL SALE" shall mean, with respect to any Product, the first
      sale by  MERCK  or a  Related  Party  for end use or  consumption  of such
      Product in a country,  excluding,  however, any sale or other distribution
      for use in a Clinical Trial.

1.36  "FIRST POSITION DETAIL" shall mean a Detail where key product messages and
      benefits are  presented  in the first  position and at least [***]% of the
      time available is spent on this presentation.

1.37  "GLP" or "GOOD LABORATORY PRACTICE" shall mean the applicable then-current
      standards for laboratory activities for pharmaceuticals or biologicals, as
      set forth in the Act and any regulations or guidance documents promulgated
      thereunder,  as  amended  from  time to time,  together  with any  similar
      standards of good  laboratory  practice as are required by any  Regulatory
      Authority in the Territory.

1.38  "GMP"  OR  "GOOD   MANUFACTURING   PRACTICE"  shall  mean  the  applicable
      then-current standards for United States Good Manufacturing  Practices, as
      specified  in the  United  States  Code  of  Federal  Regulations  and any
      regulations or guidance documents promulgated thereunder,  as amended from
      time to time,  together with any similar  standards of good  manufacturing
      practice as are required by any Regulatory Authority in the Territory.

1.39  "GOVERNMENTAL  AUTHORITY" means any government,  any governmental  entity,
      department,  commission, board, agency or instrumentality,  and any court,
      tribunal or judicial or arbitral body,  whether  federal,  state or local,
      including, without limitation, the U.S. Federal Trade Commission.

1.40  "HSR ACT" means the Hart-Scott-Rodino  Antitrust Improvements Act of 1974,
      as amended, 15 U.S.C. ss.18A.

1.41  "HSR  CLEARANCE  DATE" means the  earliest  date on which both  Parties or
      their  Controlled  Affiliates  have actual  knowledge  that all applicable
      waiting  periods  under  the  HSR Act  with  respect  to the  transactions
      contemplated hereunder have expired or have been terminated.

1.42  "HSR CONDITIONS" shall have the meaning provided in Section 11.2.

1.43  "HSR FILING" means filings by MERCK or its  Controlled  Affiliates and DOV
      with the United States Federal Trade Commission and the Antitrust Division
      of the United States  Department of Justice of a  Notification  and Report
      Form for Certain Mergers and  Acquisitions (as that term is defined in the
      HSR Act) with respect to the matters set forth in this Agreement, together
      with all required documentary attachments thereto.

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1.44  "IND" shall mean an investigational  new drug application,  clinical study
      application,   clinical  trial  exemption,   or  similar   application  or
      submission  for approval to conduct human  clinical  investigations  filed
      with or  submitted  to a  Regulatory  Authority  in  conformance  with the
      requirements of such Regulatory Authority.

1.45  "INDICATION"  shall  mean  the  primary  prophylactic  and/or  therapeutic
      purpose for which a Product is  developed  specifically  directed  towards
      obtaining  Regulatory  Approval  for use of such  Product  pursuant  to an
      approved  label  claim.  A single  Indication  shall  include  the primary
      disease and variants or sub-divisions or  sub-classifications  within such
      primary disease.  For example,  for purposes of this Agreement,  treatment
      and/or  prevention  of  anxiety  is a single  Indication;  treatment  of a
      particular  phobia  would be  treated as a  sub-classification  within the
      single  Indication  of  anxiety.  Treatment  and  prophylaxis  of the same
      general  psychiatric  disorder  (e.g.  anxiety)  as  defined by the DSM-IV
      (i.e.,  Diagnosis  and  Statistical  Manual)  shall be treated as the same
      Indication.  However,  treatment of depression shall be deemed a different
      Indication from treatment of anxiety.

1.46  "INFORMATION"  shall  mean any and all  information  and  data,  including
      without  limitation all MERCK Know-How,  MERCK Termination  Know-How,  DOV
      Know-How,  and all other scientific,  preclinical,  clinical,  regulatory,
      manufacturing,  marketing,  financial and commercial  information or data,
      whether  communicated in writing or orally or by any other method, that is
      provided by one Party (or such Party's Controlled Affiliates) to the other
      Party in connection with this Agreement.

1.47  "INITIATES"   shall  mean,   with  respect  to  a  Clinical   Trial,   the
      administration of the first dose to a patient in such Clinical Trial.

1.48  "INVENTION" shall mean any process, method, composition of matter, article
      of manufacture,  discovery or finding that is (i) conceived as a result of
      the Collaboration; or (ii) is conceived as a result of the practice of DOV
      Patent Rights during or after the term of the Collaboration.

1.49  "JOINT  INFORMATION  AND INVENTIONS"  shall mean all protocols,  formulas,
      data,  Inventions,  know-how and trade  secrets,  patentable or otherwise,
      resulting from  collaborative  activities  occurring  prior to the Closing
      Date, or during the  Collaboration  or resulting  from the practice of the
      DOV Patent Rights during or after the term of the Collaboration  developed
      or  invented  jointly by  employees  of MERCK and DOV or others  acting on
      behalf of MERCK and DOV.

1.50  "JOINT  PATENT  RIGHTS" shall mean any and all Patent Rights that claim or
      cover any Joint Information or Inventions.

1.51  "LAUNCH  DATE" shall mean the date  subsequent  to receiving the necessary
      Regulatory  Approvals in the United  States when the Parties will initiate
      Detailing  activities in the United States,  as such date is determined by
      MERCK.

1.52  "MAJOR  MARKET"  shall  mean any one of the  following  countries:  United
      States, Japan, the United Kingdom, France, Germany, Italy or Spain.

1.53  "MARKETING  AUTHORIZATION"  shall  mean  (i) for the  United  States,  the
      approval of an NDA,  and (ii) for any foreign  jurisdiction,  the approval
      from the  relevant  Regulatory  Authority  necessary  to market and sell a
      Product in that country,  including,  without  limitation,  all applicable
      pricing and government reimbursement approvals.

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1.54  "MERCK  INFORMATION  AND INVENTIONS"  shall mean all protocols,  formulas,
      data,  Inventions,  know-how and trade  secrets,  patentable or otherwise,
      resulting  from the  Collaboration  or resulting  from the practice of DOV
      Patent Rights during or after the term of the Collaboration,  developed or
      invented solely by employees of MERCK or other persons not employed by DOV
      acting on behalf of MERCK.

1.55  "MERCK  KNOW-HOW" shall mean all information and materials,  including but
      not limited to discoveries,  improvements,  processes, methods, protocols,
      formulas,  data  (including  data and results from  research,  preclinical
      development and Clinical Trials), inventions (including without limitation
      MERCK  Information and Inventions and MERCK's and/or any of its Controlled
      Affiliates'  rights in Joint  Information  and  Inventions),  know-how and
      trade  secrets,  patentable  or  otherwise,  which during the term of this
      Agreement,  (i) are  Controlled  by  MERCK  and/or  any of its  Controlled
      Affiliates, (ii) are not generally known and (iii) are necessary or useful
      to DOV in connection with the Collaboration.

1.56  "MERCK PATENT  RIGHTS" shall mean any and all Patent Rights  Controlled by
      MERCK  and/or  any of  MERCK's  Controlled  Affiliates,  that (i) would be
      practiced by the manufacture,  use, sale, offer for sale or importation of
      Compound  or  Product;  or (ii)  claim  or  cover  MERCK  Information  and
      Inventions or MERCK's rights in Joint Information and Inventions.

1.57  "MERCK  TERMINATION  KNOW-HOW"  shall mean all  information and materials,
      including  but  not  limited  to  discoveries,   improvements,  processes,
      methods,  protocols,  formulas,  data  (including  data and  results  from
      research,   preclinical  development  and  Clinical  Trials),   inventions
      (including without limitation MERCK Information and Inventions and MERCK's
      and/or any of its Controlled  Affiliates'  rights in Joint Information and
      Inventions),  know-how and trade secrets,  patentable or otherwise,  which
      during the term of this Agreement,  (i) are Controlled by MERCK and/or any
      of MERCK's Controlled Affiliates,  (ii) are not generally known, and (iii)
      are necessary for the research, development,  manufacture,  marketing, use
      or sale of Compound or Product in the Territory,  excluding,  however, any
      DOV Know-How. The MERCK Termination Know-How shall include the information
      of the type set forth in Schedule 1.57.

1.58  "MOTHER  LIQUOR"  shall mean a liquid stream (i)  containing  the negative
      isomer after recovery of the desired positive  isomer,  or (ii) containing
      the positive isomer after recovery of the desired negative isomer.

1.59  "NDA" shall mean a New Drug Application or Biologics  License  Application
      submitted  to the FDA, or a  Worldwide  Marketing  Application,  Marketing
      Authorization  Application or similar  application filed with a Regulatory
      Authority to obtain approval for marketing a biological or  pharmaceutical
      product in a foreign country or group of countries.

1.60  "NET SALES" shall mean the gross invoice price of Product sold by MERCK or
      any  Related  Party to the first  Third  Party,  after  deducting,  if not
      previously deducted, from the amount invoiced or received:

      (a) trade and  quantity  discounts  actually  allowed or taken  other than
      early pay cash discounts;

      (b) amounts  allowed or taken by reason of returns,  rebates,  chargebacks
      and other allowances;

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      (c) retroactive  price reductions that are actually allowed or granted and
      that are specifically identifiable as relating to Products; and

      (d) a fixed amount equal to [***] percent  ([***]%) of the amount invoiced
      to cover bad debt,  sales or excise taxes,  early payment cash  discounts,
      custom duties, and other governmental  charges,  sales commissions paid to
      Third Party distributors and/or selling agents, and the cost of devices or
      delivery systems used for dispensing or administering Product;

      With respect to sales of Combination  Drugs, Net Sales shall be calculated
      on the basis of the gross invoice price of Product(s)  containing the same
      strength of Compound sold without other active  ingredients.  In the event
      that Product is sold only as a Combination  Drug,  (y) with respect to any
      Combination  Drug in which  Compound  is  combined  only  with one or more
      active  ingredients  the  manufacture,   use,  sale,  offer  for  sale  or
      importation  of which active  ingredient(s)  would not practice any Patent
      Right Controlled by MERCK, MERCK's Controlled Affiliates or a Third Party,
      Net Sales shall be  calculated  on the basis of the gross invoice price of
      the Combination Drug and (z) with respect to any Combination Drug in which
      Compound  is  combined  only  with  one or  more  active  ingredients  the
      manufacture,  use sale,  offer  for sale or  importation  of which  active
      ingredient(s) would practice any Patent Right Controlled by MERCK, MERCK's
      Controlled Affiliates, or a Third Party, DOV and MERCK shall, prior to any
      sales  of such  Combination  Drug,  negotiate  in good  faith  to agree in
      writing on the relative value of Compound and each other active ingredient
      in such Combination  Drug, which  determination  shall be based upon sales
      prices for comparable  products.  Such relative  value(s) shall be used in
      calculating Net Sales.  The deductions set forth in paragraphs (a) through
      (d) above will be applied in calculating Net Sales for a Combination Drug.

1.61  "PARTY" shall mean MERCK and DOV,  individually,  and "PARTIES" shall mean
      MERCK and DOV, collectively.

1.62  "PATENT  RIGHTS"  shall  mean  patents  and  patent  applications  in  the
      Territory  (which for the  purposes of this  Agreement  shall be deemed to
      include  certificates of invention and  applications  for  certificates of
      invention),    including    provisionals,     divisions,    continuations,
      continuations-in-part,   reissues,  renewals,  extensions,   supplementary
      protection  certificates,  and the like of any  such  patents  and  patent
      applications,  and foreign equivalents  thereof, and shall include patents
      whose term has been  extended  by  statutory  patent term  adjustments  or
      extensions in any jurisdiction in the Territory, including but not limited
      to those patent term  adjustments  and extensions  granted under 37 C.F.R.
      ss.ss. 1.701 - 1.705, 35 U.S.C. ss. 154(b), or 35 U.S.C. ss. 156.

1.63  "PIVOTAL  CLINICAL  TRIAL"  shall  mean an  adequate  and  well-controlled
      Clinical Trial designed to demonstrate  efficacy of a Product  intended to
      form the basis of Filing an NDA .

1.64  "PHASE I CLINICAL  TRIAL" shall mean a human clinical trial in any country
      that would satisfy the requirements of 21 CFR 312.21(a).

1.65  "PHASE II CLINICAL TRIAL" shall mean a human clinical trial in any country
      that would satisfy the requirements of 21 CFR 312.21(b).

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1.66  "PHASE  III  CLINICAL  TRIAL"  shall  mean a human  clinical  trial in any
      country that would satisfy the requirements of 21 CFR 312.21(c).

1.67  "PHASE IV CLINICAL  TRIAL" shall mean a human clinical trial following the
      approval  of an NDA,  including  any human  clinical  trial in any country
      consistent with the description set forth in 21 CFR 312.85.

1.68  "PRODRUG" shall mean a compound that, upon metabolism  within the body, is
      converted  to DOV  21,947,  DOV  216,303  or  DOV  102,677,  the  in  vivo
      pharmacological  activity of which substantially  derives from the in vivo
      presence of the DOV 21,947, DOV 216,303 or DOV 102,677, respectively, into
      which the compound is converted.

1.69  "PRODUCT(S)"  shall mean any  pharmaceutical  preparation  in final  form,
      including without limitation any Combination Drug, containing Compound (i)
      for sale by prescription,  over-the-counter  or any other method,  or (ii)
      for administration to human patients in a Clinical Trial.

1.70  "REGULATORY  AUTHORITY"  shall mean any applicable  government  regulatory
      authority,  including  the FDA in the  United  States  and the EMEA in the
      European  Union,  involved in granting  approvals  for  manufacturing  and
      marketing a Product in the United States, or for manufacturing, marketing,
      reimbursement  and/or  pricing  of a Product  in any other  country in the
      Territory.

1.71  "RELATED  PARTY"  shall  mean each of  MERCK,  its  Affiliates,  and their
      respective  sublicensees (which term does not include distributors to whom
      MERCK sells,  without  restriction,  Product or Compound),  as applicable;
      provided, however, that a manufacturer that is sublicensed by MERCK solely
      for the purpose of  manufacturing  (and not for the purpose of developing,
      marketing  or  selling)  Compound  or Product  for MERCK and whose  Patent
      Rights are not Controlled by Merck shall not be deemed a "Related Party".

1.72  "SPECIALIST"  shall  mean a  psychiatrist  or  neurologist,  or such other
      specialist  medical or health care  professional  authorized  to prescribe
      Product under the laws of the jurisdiction in which such medical or health
      care  professional  is practicing,  to the extent that such  psychiatrist,
      neurologist or other specialist is approved by MERCK.

1.73  "SPECIALTY SALES  REPRESENTATIVES"  shall mean employees of DOV performing
      the sales promotion of pharmaceutical products to Target Prescribers.

1.74  "SUCCESSFUL  COMPLETION"  of a  Pivotal  Clinical  Trial  shall  mean  the
      achievement of a [***] and [***].

1.75  SYMMETRIC  PROCESS" shall mean, (i) with regard to the  manufacture of DOV
      21,947, a process whereby a significant amount of DOV 102,677 is made, and
      (ii) with regard to the  manufacture of DOV 102,677,  a process  whereby a
      significant amount of DOV 21,947 is made

1.76  "TARGET PRESCRIBER" shall mean a Specialist  identified as a member of the
      target  audience to whom DOV shall direct a Detail as  determined by MERCK
      in its marketing plans for Product.

1.77  "TERRITORY"  shall  mean all of the  countries  in the  world,  and  their
      territories and possessions.

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1.78  "THIRD  PARTY"  shall  mean an entity  other  than  MERCK and its  Related
      Parties, and DOV and its Affiliates.

1.79  "VALID  PATENT  CLAIM"  shall  mean a claim of an issued  patent  included
      within the DOV Patent Rights or Joint Patent Rights that claims the use or
      composition  of matter of  Compound  or  Product,  or a claim of an issued
      patent  included  within the MERCK Patent Rights that claims a composition
      of matter of Compound or Product,  the term and statutory  extensions,  if
      any,  of which  patent  have not yet  expired,  which  claim  has not been
      revoked or held unenforceable or invalid by a decision of a court or other
      governmental  agency of  competent  jurisdiction  (which  decision  is not
      appealable or has not been  appealed  within the time allowed for appeal),
      and which claim has not been disclaimed,  denied or admitted to be invalid
      or  unenforceable   through  reissue,   re-examination  or  disclaimer  or
      otherwise.

1.80  "WYETH" shall mean Wyeth Holdings Corporation, a Maine corporation.

1.81  "WYETH  AGREEMENT"  shall mean the certain  Amended and  Restated  License
      Agreement between DOV and Wyeth, effective as of May 29, 1998, relating to
      the license of DOV 216,303, as amended and restated on February 25, 2004.

2.    COLLABORATION

2.1   DRUG DEVELOPMENT PLAN.

      DOV and  MERCK  shall  engage  in the  Collaboration  upon the  terms  and
conditions set forth in this  Agreement.  The activities to be undertaken in the
course of the Collaboration  shall be set forth in the Drug Development Plan set
forth as Schedule 2.1 and incorporated by reference herein. The Drug Development
Plan is subject to  modification  by MERCK,  subject in all  respects  to and in
accordance with the terms and conditions of this Agreement.  MERCK shall present
any  modifications  (and if timing permits proposed  modifications)  of the Drug
Development Plan to the Committee for review and discussion,  and shall consider
in  good  faith  DOV's  input  with  regard  to  such  modifications.  The  Drug
Development  Plan shall include the preclinical  development  and  pre-Marketing
Authorization  Clinical Trials that MERCK plans to conduct,  and shall include a
plan describing with specificity the Clinical Trials to be undertaken to achieve
the Development  Milestones and Product Profile Milestones set forth in Sections
5.3 and 5.4,  and the  projected  time  frame for  these  Clinical  Trials.  For
avoidance  of doubt,  MERCK  shall have the right to  reasonably  determine  the
appropriate  Clinical Trials to be performed to achieve  Development  Milestones
and Product Profile Milestones. Notwithstanding anything herein to the contrary,
the Drug  Development  Plan shall  provide for  conducting  Clinical  Trials the
successful  outcome of which will result in the  achievement  of the  milestones
provided for in Sections  5.3(a) and 5.4 of this  Agreement,  where the Clinical
Trials  are  adequately  designed  and  powered  to  provide  data that has both
statistical and clinical significance.

2.2   CONDUCT OF COLLABORATION.

2.2.1 MERCK shall be responsible for all formulation,  preclinical  development,
      clinical  development and regulatory  work, and  manufacturing of clinical
      supplies   pursuant  to  the  Drug  Development   Plan.  Merck  shall  use
      Commercially  Reasonable  Efforts to perform  the Drug  Development  Plan.
      MERCK shall be responsible  for all regulatory  activities,  both prior to
      and after  obtaining  Marketing  Authorization,  including  global  safety
      reporting.  MERCK  shall be  entitled  to utilize  the  services  of Third
      Parties to  perform  its  Collaboration  activities.  To the extent  MERCK
      determines to use DOV as a Contract Research  Organization  ("CRO"),  such
      activities  shall be pursuant to an agreement  containing  customary terms
      and conditions and commercial  terms  negotiated in good faith between the
      Parties.  Pursuant to such an agreement, DOV shall use only Clinical Trial
      facilities  approved in advance by MERCK, and shall be entitled to utilize
      the service of Third Parties to perform its  activities as a CRO only upon
      MERCK's  prior written  consent.  Notwithstanding  any such consent,  each
      Party  shall  remain  at  all  times  fully  liable  for  its   respective
      responsibilities under the Collaboration.

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2.2.2 DOV and MERCK shall  conduct any  activities  that either  Party  performs
      pursuant to the  Collaboration  in compliance  with all  applicable  laws,
      rules and  regulations,  including,  without  limitation,  Good Laboratory
      Practice and Good Manufacturing Practice, to the extent applicable.  It is
      not  contemplated  that DOV shall use animals in performing its activities
      under the  Collaboration.  Each  Party  hereby  certifies  that it has not
      employed  or  otherwise  used in any  capacity,  and  will not  employ  or
      otherwise use in any capacity,  the services of any person  debarred under
      United States law,  including but not limited to 21 U.S.C. ss. 335(a),  in
      performing any portion of the Collaboration.

2.3   JOINT DEVELOPMENT  COMMITTEE.  The Parties hereby establish a committee to
      facilitate the Collaboration as follows:

2.3.1 COMPOSITION OF THE JOINT DEVELOPMENT COMMITTEE. The Collaboration shall be
      conducted  under  the  direction  of a joint  development  committee  (the
      "Committee")  comprised  of  three  representatives  of  MERCK  and  three
      representatives  of DOV. Each Party may change its  representatives to the
      Committee from time to time, in its sole discretion, effective upon notice
      to the  other  Party of such  change.  These  representatives  shall  have
      appropriate technical credentials,  experience and knowledge,  and ongoing
      familiarity  with  the   Collaboration.   Additional   representatives  or
      consultants  may from time to time, by mutual  consent of the Parties,  be
      invited to attend Committee meetings,  subject to such representative's or
      consultant's  written agreement to comply with the requirements of Article
      4. The Committee shall be chaired by a representative  of MERCK, and MERCK
      will have final  decision  making  authority on all issues  related to the
      research,    development,    regulatory   approval,    manufacturing   and
      commercialization  of Compounds  and  Products.  DOV shall have a right to
      review and provide comments on the Drug Development Plan, and in the event
      DOV has a substantive  dispute in regard to the Drug Development Plan, the
      Parties' representatives may refer the issue in dispute to the appropriate
      Executive Vice President,  MERCK Research Laboratories,  for MERCK and the
      Chief  Executive  Officer  for DOV.  In the  event  that  the  appropriate
      Executive  Vice  President  of MERCK  Research  Laboratories  or the Chief
      Executive Officer of DOV requests, in writing within fifteen (15) business
      days after the  referral  of the dispute to such  parties,  or within such
      extended period agreed upon by such executives, such executives shall meet
      in-person  to attempt to resolve the  dispute.  If  unresolved,  the final
      resolution  and/or  course  of  conduct  shall be  determined  by  MERCK's
      President,   MERCK  Research   Laboratories,   in  such  executive's  sole
      discretion.  Each  Party  shall  bear  its  own  expenses  related  to the
      attendance  of such  meetings  by its  representatives.  Each Party  shall
      provide  Committee  members with reasonable access during regular business
      hours  to  all  its  records  and  documents   that  are  related  to  the
      Collaboration or to the development of the Product.

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2.3.2 MEETINGS.   The  Committee  shall  meet  in  accordance  with  a  schedule
      established  by  mutual  written  agreement  of the  Parties,  but no less
      frequently  than once per  Calendar  Quarter,  with the  location for such
      meetings  alternating  between  DOV and MERCK  facilities  (or such  other
      location  as  may be  determined  by the  Committee).  Alternatively,  the
      Committee may meet by means of  teleconference,  videoconference  or other
      similar communications equipment. The Committee shall confer regarding the
      status of the Collaboration,  review relevant data and the progress of the
      Drug  Development  Plan,  consider and advise on any technical issues that
      arise  relating to the  Collaboration  that may be referred to, or invited
      for referral by, the Committee.  MERCK will provide DOV with copies of any
      minutes taken of Committee meetings.

2.4 EXCHANGE OF  INFORMATION.  DOV shall  transfer  copies of all  documents and
materials  Controlled by DOV or DOV's  Controlled  Affiliates  embodying the DOV
Know-How and the subject  matter of the DOV Patent Rights to MERCK within thirty
(30) days after the Closing  Date of this  Agreement  (the  "Initial  Transition
Period") and provide MERCK reasonable  technical  support from DOV technical and
scientific  personnel during this the Initial  Transition Period relating to the
use of such DOV Know-How and the practice of such DOV Patent  Rights,  solely to
the extent permitted under the licenses  granted to MERCK herein.  Following the
Initial  Transition Period,  from time to time upon MERCK's reasonable  request,
DOV shall provide reasonable technical support from DOV technical and scientific
personnel,  relating to the use of DOV  Know-How  and the practice of DOV Patent
Rights,  solely to the  extent  permitted  under the  licenses  granted to MERCK
herein.  In furtherance of the foregoing,  DOV shall  cooperate with MERCK,  and
shall cause its Controlled Affiliates and Third Party manufacturers to cooperate
with  MERCK,  in order to  accomplish  an orderly  transition  of  manufacturing
technology for Compound to MERCK.

2.5   RECORDS AND REPORTS.

2.5.1 DOV RECORDS.  If DOV is utilized as a CRO, DOV shall maintain records,  in
      sufficient detail and in good scientific manner appropriate for patent and
      regulatory purposes,  which shall fully and properly reflect all work done
      and results achieved in the performance of the Collaboration by DOV.

2.5.2 COPIES AND  INSPECTION  OF  RECORDS.  MERCK  shall have the right,  during
      normal business hours and upon reasonable  notice, to inspect and copy all
      such records of DOV  referred to in Section  2.5.1.  MERCK shall  maintain
      such  records  and the  information  disclosed  therein in  confidence  in
      accordance with Section 4.1. MERCK shall have the right to arrange for its
      employees  and/or  consultants  involved  in the  activities  contemplated
      hereunder  to visit the  offices  and  laboratories  of DOV and any of its
      Third Party  contractors  as  permitted  under  Section 2.2 during  normal
      business hours and upon reasonable  notice,  to discuss the  Collaboration
      work and its  results  in  detail  with the  technical  personnel  and any
      permitted Third Party contractors of DOV. Upon request,  DOV shall provide
      copies of the records described in Section 2.5.1.

2.5.3 QUARTERLY REPORTS.  The Parties shall each prepare a written report, which
      shall be delivered to the other Party at least  fifteen (15) days prior to
      each  quarterly  meeting of the  Committee,  which report shall inform the
      Committee of the work performed to date on the Collaboration, evaluate the
      work performed in relation to the goals of the  Collaboration  and provide
      such other information as may be reasonably  requested by the Committee (a
      "Collaboration  Quarterly  Report").  The  MERCK  Collaboration  Quarterly
      Report shall include  Information in sufficient detail that performance by
      MERCK of the Drug Development Plan and progress achieved in performing the
      Drug Development Plan may be ascertained.

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2.5.4 LDRC AND EDRC  REPORTS.  Only to the extent  applicable  to Compounds  and
      Products,  during  the  Collaboration  Term,  MERCK  shall  provide to DOV
      progress  reports  provided in accordance  with MERCK's  regular  business
      practices to MERCK's Early Development  Review Committee ("EDRC") and Late
      Development  Review Committee  ("LDRC"),  or the respective  successors to
      such  committees,  in order to keep DOV  informed  of the  progress of the
      conduct of activities under the  Collaboration  and the development of the
      Compounds and Products.

2.6   INFORMATION AND INVENTIONS. The entire right, title and interest in:

      (a)   DOV Information and Inventions shall be owned solely by DOV;

      (b)   MERCK Information and Inventions shall be owned solely by MERCK; and

      (c)   Joint  Information and Inventions  shall be owned jointly by DOV and
            MERCK.  Each of the  Parties,  as owners  of a joint  and  undivided
            interest in the Joint  Information  and  Inventions and Joint Patent
            Rights, shall have the right to exploit and to grant licenses in and
            to such Joint Information and Inventions and/or Joint Patent Rights,
            without an accounting or  obligation  to, or other consent  required
            from, the other Party, unless otherwise specified in this Agreement.
            Each Party  further  agrees to execute  such  documents as the other
            Party may  reasonably  require to give  effect to the intent of this
            Section  2.6(c).  For avoidance of doubt,  this Section 2.6(c) shall
            not  supersede  the licenses and other  rights  granted  pursuant to
            Article 3.

      Each Party shall  promptly  disclose to the other Party,  in writing,  the
      development,   making,  conception  or  reduction  to  practice  of  Joint
      Information   and  Inventions  or,   respectively,   DOV  Information  and
      Inventions and MERCK Information and Inventions.

2.7 COLLABORATION TERM AND TERMINATION. Except as otherwise provided herein, the
term of the Collaboration  shall commence on the Closing Date and continue until
approval of the NDA by the FDA for the first Product.

2.8 DEVELOPMENT REPORTS FOLLOWING TERMINATION OF COLLABORATION.  Notwithstanding
any  other  provision  of  this  Agreement,  following  the  termination  of the
Collaboration,  MERCK  shall  provide a  development  report  to DOV upon  DOV's
request no more frequently than  semianually,  which report shall include (i) an
update describing the development efforts of MERCK and its Controlled Affiliates
pertaining to the Compound and the Product,  and (ii) a description  of clinical
studies  commenced  to  achieve   Development   Milestones  or  Product  Profile
Milestones as described in Section 5.3 or Section 5.4, respectively.

3.    LICENSE; EXCHANGE OF INFORMATION; DEVELOPMENT AND COMMERCIALIZATION

3.1   LICENSE GRANT.

3.1.1 DOV hereby grants to MERCK an exclusive license (even as to DOV, except as
      set forth in  Section  3.1.2  below)  in the  Territory  under DOV  Patent
      Rights,  DOV's  and its  Controlled  Affiliates'  rights  in Joint  Patent
      Rights, and DOV Know-How, with a right to sublicense,  to make, have made,
      use,  offer to sell,  sell or import  Compound(s)  and  Product(s)  in the
      Field.  For the avoidance of doubt,  DOV reserves all rights not expressly
      licensed to MERCK under this  Agreement  (e.g.,  DOV reserves the right to
      make,  use,  sell,  offer to sell and  import DOV  216,303  outside of the
      Field).

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3.1.2 DOV hereby retains the right in the Territory  under DOV Patent Rights and
      DOV  Know-How,  to make or have made DOV  21,947 for the  purposes  of (i)
      making,  having made, using,  offering for sale,  selling or importing DOV
      102,677 and/or any pharmaceutical  preparation or preparations  containing
      DOV 102,667 and (ii) conforming to any  then-applicable  requirements of a
      Regulatory  Authority,  provided  that DOV may not use DOV  21,947 for any
      other  purposes or provide DOV 21,947 to any other  person  other than for
      the purpose of having DOV 102,677 made, and any DOV 21,947 in DOV's or any
      of its  Controlled  Affiliates'  or any  Third  Party's  possession  after
      completion  of the  process  of  making  DOV  102,677  shall  be  promptly
      destroyed.

3.2.  NON-EXCLUSIVE LICENSE GRANTS.

3.2.1 In the event that the making,  having made,  use, offer for sale,  sale or
      import by MERCK, or MERCK's Related Parties,  of Compound(s) or Product(s)
      in the Field would  infringe  during the term of this Agreement a claim of
      an issued patent Controlled by DOV or its Controlled  Affiliates and which
      patent is not covered by the grant in Section  3.1,  DOV hereby  grants to
      MERCK,  to the  extent  DOV is  legally  able to do so,  a  non-exclusive,
      sublicensable, royalty-free license in the Territory under any such issued
      patent for MERCK and  MERCK's  Related  Parties to make,  have made,  use,
      sell,  offer  for  sale  or  import  Compound(s)  and  Product(s)  in  the
      Territory.

3.2.2 DOV hereby grants to MERCK a non-sublicenseable,  non-exclusive license to
      use DOV  102,677 for the purpose of  developing  an assay  relating to DOV
      21,947 that  quantifies the level,  if any, of DOV 102,677  present in DOV
      21,947 in vitro or in vivo.

3.2.3 MERCK hereby grants to DOV a non-sublicenseable,  non-exclusive license to
      use DOV 21,947 for the  purpose of  developing  an assay  relating  to DOV
      102,677 that  quantifies  the level,  if any, of DOV 21,947 present in DOV
      102,677 in vitro or in vivo.

3.3.  SUBLICENSES.

3.3.1 MERCK may grant  written  sublicenses  of the  licenses  granted  it under
      Sections 3.1 and 3.2 above (each,  a  "Sublicense  Agreement"),  provided,
      however,  that no sublicense  granted under this Agreement  shall be valid
      unless each sublicensee (a "MERCK  Sublicensee") agrees in writing in such
      Sublicense Agreement:

      (i)   to exercise its rights under the  sublicense in accordance  with the
            applicable terms of this Agreement;

      (ii)  to maintain  records  that Merck  would be required to retain  under
            this Agreement and to permit auditors of DOV to inspect such records
            on the same basis as such records  could be inspected if retained by
            MERCK;

      (iii) to, in the event of a Bankruptcy Event affecting MERCK, (a) transfer
            to  DOV  any  MERCK   Termination   Know-How  to  which  such  MERCK
            Sublicensee  has access no later  than 60 days  after the  effective
            date of such Bankruptcy  Event,  (b) transfer to DOV any Information
            or Joint  Information and Inventions to which such MERCK Sublicensee
            has access and that is necessary or useful to the prosecution of DOV
            Patent Rights or Joint Patent Rights no less than 30 days before any
            application  deadline  applicable  to any DOV Patent  Right or Joint
            Patent  Right;  (c) transfer to DOV title to or  sponsorship  of any
            IND, NDA or other  regulatory  filing held in the name of such MERCK
            Sublicensee  pertaining  to the Compound or the Product,  or if such
            transfer  is not  legally  permissible  or such  items do not relate
            solely to Compound

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            or Product,  to grant DOV the right,  with right to  sublicense,  to
            access,  use and  cross-reference  such data,  filings and approvals
            from  Regulatory   Authorities,   which  right  shall  be  exclusive
            (including as to the MERCK  Sublicensee) with respect to Compound or
            Product;  and (d) provide to DOV reasonable  technical  support from
            technical and scientific  personnel to effect the complete  transfer
            of MERCK  Termination  Know-How to which such MERCK  Sublicensee has
            access,  including  Information  necessary  for the use of any MERCK
            Termination Know-How and the practice of any MERCK Patent Rights and
            Joint  Patent  Rights in relation  to  Compound or Product;  and (e)
            provide  that all of the  provisions  of the  foregoing  clauses (a)
            through  (d)  shall  survive  any   termination  of  the  applicable
            Sublicense Agreement;

      (iv)  to observe all other applicable terms of this Agreement; and

      (v)   that (a) DOV shall be a third party beneficiary under the applicable
            Sublicense  Agreement solely for purposes of enforcing its rights in
            the event of a Bankruptcy  Event  affecting  MERCK;  and (b) that in
            such a Bankruptcy  Event,  if the  Sublicense  Agreement by MERCK is
            rejected  and the  MERCK  Sublicensee  does not  elect to treat  the
            Sublicense  Agreement  as  terminated,  then the  MERCK  Sublicensee
            shall, at DOV's option,  enter into a license  agreement with DOV on
            the  same  terms  and  conditions  as  the   applicable   Sublicense
            Agreement.

3.3.2 (a) Contemporaneously with the execution of a Sublicensee Agreement, MERCK
      shall obtain from each MERCK  Sublicensee a written  acknowledgement  (the
      "Sublicensee  Acknowledgement")  stating  that  the  Sublicense  Agreement
      executed   between  such  MERCK   Sublicensee  and  MERCK  contains  those
      provisions  required by Section 3.3.1 of this Agreement.  During the first
      twelve months following the Closing Date, MERCK shall promptly provide DOV
      with a copy of each  Sublicense  Acknowledgement.  Thereafter,  MERCK will
      provide DOV with copies of any additional Sublicense Acknowledgements upon
      request, but no more frequently than once per year.

      (b)  MERCK  shall  maintain  a list of MERCK  Sublicensees  and a  general
      description  of the  subject  matter  of each  Sublicense  Agreement  (the
      "Sublicensee  List").   During  the  first  twelve  months  following  the
      Execution  Date, the Sublicensee  List shall be updated  contemporaneously
      upon the execution of each Sublicense  Agreement and provided  promptly to
      DOV  following  the execution of each  Sublicense  Agreement.  Thereafter,
      MERCK will  provide DOV with a copy of the updated  Sublicensee  List upon
      request, but no more frequently than once per year. .

3.3.3 MERCK unconditionally guarantees the performance of all MERCK Sublicensees
      in  accordance  with  the  terms of this  Agreement,  and  MERCK  shall be
      responsible  for enforcing the provisions of any  sublicense  agreement to
      ensure  that  the  MERCK  Sublicensees  do not  breach  the  terms of this
      Agreement.

3.3.4 In the event of a Bankruptcy Event affecting MERCK, any and all Sublicense
      Agreements shall immediately terminate.

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3.4.  RIGHT OF FIRST REFUSAL FOR DOV 102,677.

3.4.1.RIGHT OF FIRST REFUSAL. In the event that DOV desires to commercialize DOV
      102,677 or a Product  containing it for the treatment and/or prevention of
      depression  and/or  anxiety in humans  and/or  animals,  MERCK will have a
      right of first refusal with regard to obtaining  exclusive  rights to such
      commercialization.  In such a circumstance, DOV shall present a good faith
      offer for the commercialization rights for DOV 102,677.  Thereafter, after
      a sixty  (60) day period of good faith  negotiation,  if it is  reasonably
      apparent that the Parties are unable to reach agreement with regard to the
      terms and  conditions  under  which MERCK may obtain  exclusive  rights to
      commercialize   DOV  102,677  for  the  treatment  and/or   prevention  of
      depression and/or anxiety in humans and/or animals, then DOV shall be free
      to  commercialize  DOV 102,677  itself or to negotiate  with Third Parties
      with  respect  to  the   commercialization   of  DOV  102,677   through  a
      collaboration or by such Third Party,  provided,  however,  that
      prior to entering into an agreement  granting  rights to a Third Party for
      commercializing  DOV 102,677 for lesser compensation than DOV's last offer
      to MERCK,  DOV shall offer the  compensation  and other relevant  material
      terms to MERCK in writing.  If MERCK does not accept such compensation and
      other  relevant  material in writing  within  thirty (30) days, it will be
      deemed to have waived its rights.

3.5.  NO IMPLIED  LICENSES.  Except as specifically set forth in this Agreement,
      neither  Party shall  acquire any license or other  intellectual  property
      interest, by implication or otherwise,  in any Information disclosed to it
      under  this  Agreement  or  under  any  patents  or  patent   applications
      Controlled by the other Party or its Controlled Affiliates.

3.6.  DEVELOPMENT AND COMMERCIALIZATION.

      MERCK   shall  use   Commercially   Reasonable   Efforts  to  develop  and
commercialize  a Product  containing  at least one of the  Compounds  at its own
expense.  For  avoidance  of doubt,  a temporary  suspension,  not to exceed six
months,  of the  development  or  commercialization  of a Product due to MERCK's
reasonable determination that the Product is materially unsafe for use in humans
shall not cause MERCK to be in breach of this Section 3.6. For the  avoidance of
doubt, in the event of any such  suspension,  the provisions of Article 10 shall
apply.

3.7.  OPTION FOR DOV TO CO-PROMOTE PRODUCTS IN UNITED STATES.

3.7.1.MERCK hereby grants DOV an option to co-promote  the Product in the United
      States  only  (the   "Co-promotion   Option")  by  Detailing   Product  to
      Specialists  designated  by MERCK as Target  Prescribers,  subject  to the
      provisions of this Section 3.7, and  conditioned on DOV and MERCK entering
      into a  Co-Promotion  Agreement on terms and  conditions  consistent  with
      Schedule 3.7.

3.7.2.MERCK shall  determine the Launch Date of the Product,  and shall keep DOV
      apprised at quarterly  Committee  meetings of any changes in the projected
      Launch  Date for the  Product,  so that DOV has  reasonable  notice of the
      projected  Launch Date.  DOV will notify MERCK in writing of its intent to
      exercise  the  Co-Promotion  Option  twenty-four  (24) months prior to the
      projected Launch Date as communicated by MERCK (the "Exercise  Date").  If
      DOV chooses to exercise the Co-Promotion  Option, MERCK and DOV will enter
      into a Co-Promotion Agreement consistent with the terms and conditions set
      forth in Schedule 3.7 no later than eighteen (18) months before the Launch
      Date.

3.7.3.If DOV  exercises  the  Co-Promotion  Option,  DOV  shall be  required  to
      commence  Detailing  on the  Launch  Date for the  Product,  and  shall be
      required to deploy a sufficient number of Specialty

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      Sales  Representatives  as  determined  by  MERCK,  based on the reach and
      frequency of Detailing  that MERCK  determines  is desirable to the Target
      Prescribers.  For  avoidance  of doubt,  DOV shall be required to deploy a
      minimum of [***] and, unless otherwise  agreed upon in writing,  a maximum
      of [***] Specialty Sales Representatives, with the specific number of such
      Specialty  Sales  Representatives  to be  determined by MERCK based on the
      desired  reach and  frequency  of  Detailing  to Target  Prescribers,  and
      communicated  by MERCK to DOV at least sixty (60) days before the Exercise
      Date. In the event that DOV has an existing  sales force that is detailing
      a  DOV  product  to  the  same  Target   Prescribers   and  employs   more
      representatives    than   the   required   number   of   Specialty   Sales
      Representatives as determined by MERCK, MERCK shall consider in good faith
      utilizing such existing DOV sales force.  Compensation  in any event shall
      be as described in Paragraph 2(e) of Schedule 3.7.

3.7.4. The Co-Promotion Option shall lapse if:

      (a)   DOV does not notify  MERCK in writing of its intent to exercise  the
            Co-Promotion Option by the Exercise Date; or

      (b)   DOV cannot  provide the number of  Specialty  Sales  Representatives
            provided for in Section  3.7.3,  unless  otherwise  agreed to by the
            Parties; or

      (c)   The Agreement is terminated pursuant to Article 9.

3.8.  SUPPLY BY MERCK TO DOV OF MOTHER LIQUOR CONTAINING DOV 102, 677.

3.8.1.In  the  event  that  MERCK   develops  an  Asymmetric   Process  for  the
      manufacture of DOV 21,947, MERCK shall have no obligation to supply to DOV
      Mother Liquor containing DOV 102,677. In the event that MERCK manufactures
      DOV 21,947 using a Symmetric Process,  MERCK shall, upon DOV's request and
      subject to the terms and  conditions  of this Section  3.8,  supply to DOV
      such  quantities  of the Mother  Liquor  containing  DOV 102,677  that are
      obtained  by MERCK and its  Controlled  Affiliates  in the  course of such
      manufacturing  process  (except  such small  quantities  of Mother  Liquor
      needed by MERCK for  development of assays,  analytical  methods and other
      similar purposes).

3.8.2.Any  quantities of such Mother Liquor  supplied by MERCK shall be supplied
      "where is" and "as is",  with no  warranty as to the quality of the Mother
      Liquor  or its  fitness  for use for any  purpose.  Title and risk of loss
      shall shift to DOV upon delivery by MERCK at MERCK's site of  manufacture.
      DOV shall  develop  appropriate  packaging  and  labeling  for such Mother
      Liquor, and provide such packaging and labeling to MERCK.

3.8.3.DOV shall pay for any  transportation  or insurance costs  associated with
      the delivery of such  quantities  of Mother  Liquor,  and shall  reimburse
      MERCK for out of pocket costs incurred by MERCK in the recovery,  storage,
      packaging and labeling of such Mother Liquor.

3.8.4.DOV  shall  have  reasonable  access to  MERCK's  and  MERCK's  Controlled
      Affiliates'  data in  order  to  support  its  submissions  to  Regulatory
      Authorities relating to DOV 102,677;  provided,  however, that such access
      shall be  limited  to  employees  of DOV,  and  shall not be  extended  to
      consultants,  partners,  agents,  licensees or other Third Parties,  other
      than those  consultants  or  independent  Third Parties  involved with the
      analysis  of  studies  being  conducted  or data being  collected  for the
      purpose  of  gaining  Marketing   Authorization,   or  involved  with  the
      preparation  or  submission of materials to  Regulatory  Authorities;  and
      provided,  further  that  MERCK  shall  be  reimbursed  for  its  and  its
      Controlled   Affiliates'   fully   allocated  costs  for  supporting  such
      submissions to Regulatory Authorities.

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3.8.5.Any  obligation of MERCK or its Controlled  Affiliates  under this Section
      3.8 to supply Mother Liquor to DOV shall immediately cease upon any Change
      of Control in which a Major  Pharma  Entity (as  defined in Section  12.2)
      obtains  control  of  DOV by  acquiring  DOV's  assets  or  voting  equity
      securities (by asset purchase,  merger,  consolidation,  reorganization or
      otherwise), or upon the granting by DOV to any Third Party of any license,
      promotion  rights,  distribution  rights or other  rights  relating to DOV
      102,677.

3.9.  ASYMMETRIC TECHNOLOGY.  (a) In the event that MERCK develops an Asymmetric
      Process for  manufacture  of DOV 21,947,  MERCK shall so notify DOV. MERCK
      shall  thereafter,  upon  DOV's  request,  provide  technical  information
      necessary to permit DOV to manufacture  DOV 102,677 using such  Asymmetric
      Process ("MERCK Asymmetric  Technology").  To the extent DOV utilizes such
      MERCK Asymmetric  Technology,  and to the extent that the use of the MERCK
      Asymmetric  Technology  in the making or having made of DOV 102,677  would
      infringe  during the term of this  Agreement  a claim of an issued  patent
      Controlled by MERCK or its Controlled  Affiliates,  MERCK hereby grants to
      DOV, to the extent MERCK or its Controlled  Affiliates are legally able to
      do so, a non-exclusive, fully paid-up, sublicensable, royalty-free license
      in the Territory under the MERCK Asymmetric Technology and any such issued
      patent for DOV, DOV's Controlled Affiliates and its and their sublicensees
      to make or have made DOV 102,677 in the Territory.

      (b) In the event that DOV develops an Asymmetric  Process for  manufacture
of DOV 102,677,  DOV shall so notify MERCK. DOV shall  thereafter,  upon MERCK's
request,  provide technical information necessary to permit MERCK to manufacture
DOV 21,947 using such Asymmetric Process ("DOV Asymmetric  Technology").  To the
extent  MERCK  or  its  Controlled   Affiliates  utilizes  such  DOV  Asymmetric
Technology,  and to the extent that the use of the DOV Asymmetric  Technology in
the making or having made of DOV 21,947 would  infringe  during the term of this
Agreement  a claim  of an  issued  patent  Controlled  by DOV or its  Controlled
Affiliates,  DOV hereby  grants to MERCK,  to the  extent DOV or its  Controlled
Affiliates  are  legally  able  to  do  so,  a  non-exclusive,   fully  paid-up,
sublicensable,  royalty-free  license in the Territory  under the DOV Asymmetric
Technology and any such issued patent for MERCK,  MERCK's Controlled  Affiliates
and its and their sublicensees to make or have made DOV 21,947 in the Territory.

4.    CONFIDENTIALITY AND PUBLICATION

4.1 NONDISCLOSURE OBLIGATION.  Except to the extent expressly authorized by this
Agreement or otherwise agreed in writing by the Parties,  the Parties agree that
each Party (the "Receiving Party") shall keep confidential and shall not publish
or  otherwise  disclose  and  shall  not use for any  purpose  any  Confidential
Information  furnished to it by, or otherwise belonging to, the other Party (the
"Disclosing  Party")  pursuant to this Agreement,  except that a Receiving Party
may disclose  Confidential  Information of the Disclosing Party to its employees
and consultants who are required to have access to the Confidential  Information
in connection  with the exercise of Receiving  Party's rights and performance of
its  obligations   under  this  Agreement.   Each  Party  may  use  Confidential
Information  of the other Party only to the extent  required to  accomplish  the
purposes  of this  Agreement.  The  Receiving  Party  will use at least the same
standard  of care as it uses to  protect  its own  Confidential  Information  to
ensure that its employees,  agents, consultants and other representatives do not
disclose or make any unauthorized  use of such  Confidential  Information.  Each
Party will promptly notify the other upon discovery of any  unauthorized  use or
disclosure of the other Party's Confidential Information.

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4.2 EXCEPTIONS.  The  obligations of  confidentiality  and non-use  contained in
Section 4.1 will not apply to the extent it can be  established by the Receiving
Party by competent proof that such Confidential Information:

      (a)   is now, or  hereafter  becomes,  through no act or failure to act on
            the part of the Receiving Party, generally known or available;

      (b)   is  known by the  Receiving  Party  at the  time of  receiving  such
            information,  other than under a duty of confidentiality owed to the
            Disclosing Party, as evidenced by its records;

      (c)   is hereafter  furnished to the Receiving Party by a Third Party that
            does not owe a duty of  confidentiality  to the Disclosing  Party in
            relation to such Confidential Information;

      (d)   is  independently  developed by the Receiving Party without the aid,
            application  or use of  Confidential  Information  of the Disclosing
            Party, as evidenced by its records; or

      (e)   is the subject of a written  permission to disclose  provided by the
            Disclosing Party.

4.3 TERMS OF AGREEMENT.  This  Agreement and the terms hereof will be considered
Confidential Information of both Parties.  Notwithstanding the foregoing, either
Party may disclose such terms as are required to be disclosed  under  strictures
of  confidentiality  (i) to bona fide  potential  sublicensees  or (ii) for fund
raising or financing  efforts to investors  and lenders and bona fide  potential
investors and lenders,  provided,  however, that the term of confidentiality for
such entities shall be no less than ten (10) years.  In addition,  the Agreement
and terms hereof may be disclosed as otherwise  required  pursuant to applicable
law,  regulation  or  stock  market  or  stock  exchange  rule  (e.g.,  rules or
regulations of the United States Securities and Exchange Commission,  the Nasdaq
or the NYSE);  provided  that a Party  proposing  to make such a  disclosure  as
required by law,  rule or  regulation  shall inform the other Party a reasonable
time prior to such  required  disclosure,  shall  provide the other Party with a
copy of the text of such  proposed  disclosure  sufficiently  in  advance of the
proposed  disclosure  to afford such other  Party a  reasonable  opportunity  to
review and comment upon the proposed disclosure (including,  if applicable,  the
redacted  version of this Agreement) and shall reasonably  consider,  consistent
with applicable law, rule and regulation  (including  interpretations  thereof),
the  requests  of the other  Party  regarding  confidential  treatment  for such
disclosure.

4.4   AUTHORIZED DISCLOSURE.

4.4.1 The Receiving Party may disclose Confidential Information belonging to the
      Disclosing Party to the extent such disclosure is reasonably  necessary in
      the following instances:

      (a)   filing or prosecuting Patent Rights relating to the Collaboration;

      (b)   regulatory filings;

      (c)   prosecuting or defending litigation;

      (d)   complying with applicable court orders or governmental regulations;

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      (e)   disclosure  to  Affiliates,  sublicensees,  employees,  consultants,
            agents or other Third  Parties in  connection  with due diligence or
            similar investigations by such Third Parties, in each case who agree
            to be bound by similar terms of confidentiality and non-use at least
            equivalent in scope to those set forth in this Article 4; and

      (f)   disclosure  deemed necessary by counsel to the Receiving Party to be
            disclosed  to such Party's  attorneys,  independent  accountants  or
            financial  advisors for the sole purpose of enabling such attorneys,
            independent  accountants or financial  advisors to provide advice to
            the  Receiving   Party,   on  the  condition  that  such  attorneys,
            independent  accountants and financial advisors agree to be bound by
            the  confidentiality  and  non-use  obligations  contained  in  this
            Agreement;  provided,  however, that the term of confidentiality for
            such attorneys, independent accountants and financial advisors shall
            be no less than ten (10) years.

      Notwithstanding the foregoing,  in the event a Party is required to make a
      disclosure  of the other  Party's  Confidential  Information  pursuant  to
      Sections 4.3 or 4.4, it will seek to secure confidential treatment of such
      information  at least as diligently as such Party would use to protect its
      own Confidential Information.

4.4.2 MERCK may disclose Confidential Information belonging to DOV to the extent
      such disclosure is reasonably deemed necessary by MERCK to be disclosed to
      Related Parties, agents,  consultants,  and/or other Third Parties for any
      and all purposes  MERCK and its  Affiliates  reasonably  deem necessary or
      advisable for the research and development, manufacturing and/or marketing
      of the  Product  (or for such  entities  to  determine  their  interest in
      performing  such  activities  in  accordance  with this  Agreement  on the
      condition that such Third Parties agree to be bound by the confidentiality
      and non-use obligations  contained in this Agreement;  provided,  however,
      that the term of  confidentiality  for such Third Parties shall be no less
      than ten (10) years.

4.5 DOV KNOW-HOW.  DOV agrees to keep confidential all DOV Know-How  exclusively
licensed to MERCK  pursuant to this  Agreement,  subject to the  exceptions  set
forth in Sections 4.2 and 4.4.1 (i.e., as if DOV were the Receiving Party of the
DOV Know-How for purposes of such Sections 4.2 and 4.4.1).

4.6  PUBLICATION.  MERCK  shall  have  the  right  to  publish  results  of  the
Collaboration without restriction.  Except for disclosures permitted pursuant to
Section  4.1 and  4.2,  if DOV,  its  employees  or  consultants  wish to make a
publication,  DOV  shall  deliver  to  MERCK  a  copy  of the  proposed  written
publication  or an outline of an oral  disclosure at least sixty (60) days prior
to  submission  for  publication  or  presentation,  and MERCK shall provide its
comments  with respect to such  publication  or  disclosure  within  thirty (30)
business days of receiving  such written copy. The review period may be extended
for an additional  thirty (30) days if MERCK can  demonstrate a reasonable  need
for such  extension,  including but not limited to the preparation and filing of
patent  applications.  MERCK  shall  have the  right (a) to  propose  reasonable
modifications  to the  publication or  presentation  for patent reasons or trade
secret  reasons  or  (b)  to  request  a  reasonable  delay  in  publication  or
presentation  in order to protect  patentable  information.  If MERCK requests a
delay,  DOV shall delay  submission or  presentation  for a period of forty-five
(45) days from the date DOV delivers the  aforesaid  copy or outline to MERCK to
enable patent  applications  protecting MERCK's rights in such information to be
filed in accordance  with Article 7 below.  Upon  expiration of sixty (60) days,
DOV shall be free to proceed  with the  publication  or  presentation.  If MERCK
requests  modifications to the publication or presentation,  DOV shall edit such
publication  to  prevent  disclosure  of trade  secret or  proprietary  business
information prior to submission of

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the  publication or  presentation.  MERCK and DOV will each comply with standard
academic   practice   regarding   authorship  of  scientific   publications  and
recognition of contribution of other Parties in any publications relating to the
Collaboration.

4.7 PUBLICITY/USE OF NAMES. Neither Party shall use the name,  trademark,  trade
name or logo of the other Party, its Affiliates or their respective employees in
any publicity,  promotion, news release or disclosure relating to this Agreement
or its subject matter, without the prior express written permission of the other
Party,  except as may be required by law or  expressly  permitted by Section 4.3
above.  Promptly  after the Execution  Date, the Parties will release a mutually
agreeable press release, which release shall be consistent with the requirements
of the Wyeth Agreement.

5.    PAYMENTS; ROYALTIES AND REPORTS

5.1 EXECUTION FEE. In consideration  for DOV's granting of the license under the
DOV  Patent  Rights and DOV  Know-How,  MERCK  shall pay DOV an amount  equal to
thirty-five  million  dollars ($US 35 million)  within ten (10) business days of
the Closing Date. This payment is not refundable or creditable against any other
payments  or  obligations  of MERCK  coming  due and does not  create any future
performance obligations on the part of DOV.

5.2   COLLABORATION FUNDING.

5.2.1 MERCK shall pay for all costs and expenses  incurred in performance of the
      Drug Development Plan,  including  manufacture and formulation of Compound
      and Product,  costs incurred in all research and development,  preclinical
      and  clinical  trials,   pre-marketing  and  post-marketing   studies  and
      surveillance and manufacture of clinical supplies. None of these costs and
      expenses shall offset or be credited against any fees,  royalties or other
      payments required to be made by MERCK to DOV under this Agreement.

5.2.2 To the extent  that MERCK  determines  to use DOV as a CRO,  DOV and MERCK
      shall negotiate competitive rates for the performance of such functions in
      connection  with the  negotiation  of a definitive  agreement  pursuant to
      Section 2.2.

5.3   DEVELOPMENT MILESTONE PAYMENTS

      Subject to the terms and conditions of this Agreement,  MERCK shall pay to
DOV the following payments based on the achievement of the following  milestones
("Development Milestones"):

      (a) MERCK shall make the following  payments for the first  achievement of
the  following  Development  Milestones  by MERCK or any  Related  Party for any
Product:

         (i)      [***]                             $US [***]

         (ii)     [***]                             $US [***]

         (iii)    [***]                             $US [***]

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         (iv)     [***]                             $US [***]

         (v)      [***]                             $US [***]

         (vi)     [***]                             $US [***]

         (vii)    [***]                             $US [***]

         (viii)   [***]                             $US [***]

      (b) MERCK shall make the following  payments for the  achievement by MERCK
or any  Related  Party  of the  following  Development  Milestones  for a second
Indication for the first Product:

         (i)      [***]                             $US [***]

         (ii)     [***]                             $US [***]

      (c) The above  Development  Milestones  are not  refundable  or creditable
against any other  payments or obligations of MERCK coming due and do not create
any future  performance  obligations on the part of DOV, except as expressly set
forth in this  Agreement.  These payments shall not be triggered by any clinical
development  work  performed  by DOV (i) prior to the Closing Date or (ii) after
the Closing Date if such work is not in the  performance  of activities as a CRO
pursuant to the Drug Development  Plan. MERCK shall notify DOV in writing within
thirty (30) days following the achievement of each  Development  Milestone,  and
shall make the appropriate payment within thirty (30) days after the achievement
of such Development Milestone.  The milestone payment shall be payable only upon
the initial  achievement of such  Development  Milestone and no amounts shall be
due  hereunder  for  subsequent  or  repeated  achievement  of such  Development
Milestone.

      (d) (i) If during the Term of the  Agreement,  MERCK has not Initiated the
first  Phase II  Clinical  Trial for DOV  21,947 by [***],  MERCK  shall  make a
payment to DOV of [***] dollars ($US $[***]).

            (ii) If during the Term of the  Agreement,  MERCK has not  Initiated
the first Phase II Clinical  Trial for DOV 21,947 by [***],  MERCK shall pay DOV
an additional [***] dollars ($US [***]).

            (iii) If during the Term of the  Agreement,  MERCK has not Initiated
the first Phase II Clinical  Trial for DOV 21,947 by [***],  MERCK shall pay DOV
an  additional  [***]  dollars  ($US [***]);  thereafter  during the Term of the
Agreement  MERCK shall pay DOV an additional  [***] dollars ($US [***]),  due on
[***] of each Calendar Year unless MERCK has, prior [***] of such Calendar Year,
Initiated the first Phase II Clinical Trial for DOV 21,947.

            (iv) Payments  pursuant to this Section  5.3(d) are  conditioned  on
DOV's timely fulfillment of all of its material  obligations under the Agreement
that would reasonably have an effect on the commencement of the applicable Phase
II Clinical  Trial,  and all such  payments  shall be fully  creditable  against
subsequent Development Milestones payable by MERCK to DOV.

5.4   PRODUCT PROFILE MILESTONES

5.4.1 In the event  the DOV  21,947  development  program  generates  adequately
      powered data to support inclusion of the following  statements in Sections
      5.4.1(a) or (b) based upon clinically significant

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      data  about  [***] in either  (i) the [***] for a  Product,  or (ii) in an
      [***]  in  the  United  States,  MERCK  shall  pay  additional  milestones
      ("Product Profile Milestones"), as follows:

      (a)   [***]:

            (i)   [***], or                             $US [***]

            (ii)  [***]                                 $US [***]

      (b)   [***]:

              In at least [***] as measured by:         $US [***]

            (i)   [***],

            (ii)  [***],

            (iii) [***], or

            (iv)  [***].

5.4.2 In the event the DOV  21,947  development  program  generates  data as set
      forth in either  5.4.1(a) or (b),  fifty percent  (50%) of the  applicable
      Product  Profile  Milestone(s)  will be  pre-paid  at the same time as the
      Product  Development  Milestone set forth in Section  5.3(a)(iii)  for the
      [***],  and the remaining fifty percent (50%) will be pre-paid at the same
      time as the Product Development  Milestone set forth in Section 5.3(a)(vi)
      ([***]).

5.4.3 In the event that MERCK receives an Adverse FDA Decision  (defined  below)
      with regard to a statement  as  described  in Section  5.4.1(a) or Section
      5.4.1(b), MERCK shall credit the Product Profile Milestone previously paid
      for  pursuant to Section  5.4.1(a)  or Section  5.4.1(b)  against  royalty
      payments  made by MERCK to DOV pursuant to Section 5.6,  which credit will
      be spread equally over the first five years  following the Launch Date (or
      if an Adverse FDA  Decision  is  received by MERCK after the Launch  Date,
      over the first five years  following  notification to MERCK of the Adverse
      DDMAC  Decision),  or such  longer  period as  necessary  to obtain a full
      credit of such  Product  Profile  Milestone.  Such credit shall be MERCK's
      sole remedy, and DOV's entire liability, for an Adverse FDA Decision.

            For purposes of this Section 5.4.3,  an "Adverse FDA Decision" shall
      be defined as occurring in the event that a decision is made by the FDA as
      set forth in either clause (a) or (b) of this Section 5.4.3.

      (a) An Adverse FDA Decision shall be deemed to occur if MERCK submits data
      to the FDA for  inclusion of a statement in the  FDA-approved  labeling of
      the Product as set forth in Section  5.4.1(a) or (b),  and if, after MERCK
      exercises  Commercially  Reasonable  Efforts to obtain the  inclusion of a
      such a statement  in the  FDA-approved  labeling of the  Product,  the FDA
      determines that the data presented by MERCK to support such a statement is
      not  sufficient  to support  inclusion  of such  statement in the approved
      labeling  for the  Product.  If MERCK  obtains  an  Adverse  FDA  Decision
      pursuant to Section  5.4.3(a)  relating to labeling as set forth in either
      Section 5.4.1(a) or (b), MERCK shall not be required to seek to publish or
      distribute  advertisements or promotional labeling  inconsistent with such
      Adverse FDA Decision.

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      (b) In addition to Section  5.4.3(a),  an Adverse  FDA  Decision  shall be
      deemed to occur if, after MERCK exercises Commercially  Reasonable Efforts
      to publish or distribute  advertisements  or  promotional  labeling as set
      forth in Section  5.4.1(a) or (b),  DDMAC objects to the inclusion of such
      statement in  advertisements or promotional  labeling,  and if MERCK after
      exercising  Commercially  Reasonable  Efforts  to  persuade  DDMAC  of the
      appropriateness of such statement,  is unsuccessful in persuading DDMAC or
      other  appropriate  officials  of  the  FDA to  either  (i)  withdraw  its
      objection,  or (ii) state that it will not take  enforcement  action  with
      regard to such statement in advertisements or promotional  labeling as set
      forth in Section  5.4.1(a)  or (b),  or (iii)  state that it will not take
      action  against MERCK with respect to the continued use of such  statement
      in advertisements or promotional labeling.

5.4.4 If,  subsequent  to receiving  an Adverse FDA Decision  pursuant to either
      Section  5.4.3(a) or (b),  MERCK obtains data from  Clinical  Trials for a
      Product to support inclusion of the statements in Sections 5.4.1(a) or (b)
      based upon clinically  significant data in either the  FDA-approved  label
      for the Product or promotional  or advertising  statements (as provided in
      Section 5.4.1(i) or (ii)),  MERCK shall exercise  Commercially  Reasonable
      Efforts to either (i) obtain FDA approval for  inclusion of a statement in
      the FDA-approved  labeling of the Product as set forth in Section 5.4.1(a)
      or (b), or (ii) to publish or  distribute  advertisements  or  promotional
      labeling as set forth in Section 5.4.1(a) or (b).

      (a) In the event that,  after  receiving  an Adverse FDA  Decision,  MERCK
      obtains FDA  approval for  inclusion  of a statement  in the  FDA-approved
      labeling  of the Product as set forth in Section  5.4.1(a)  or (b),  MERCK
      shall  cease to take a credit  against  royalties  as set forth in Section
      5.4.3, and shall, within thirty (30) days of such FDA approval,  refund to
      DOV the amount  previously  credited  against  royalties  relating to such
      statement.

      (b) In the event that MERCK  publishes or  distributes  advertisements  or
      promotional  labeling  as set forth in  Section  5.4.1(a)  or (b)  without
      obtaining FDA approval for inclusion of such statement in the FDA-approved
      labeling  of the  Product,  and if MERCK does not  receive an Adverse  FDA
      Decision  regarding the inclusion of such statements in  advertisements or
      promotional  labeling within six (6) months of the initial  publication or
      distribution of such advertisements or promotional  labeling,  MERCK shall
      thereafter  cease  to take a  credit  against  royalties  as set  forth in
      Section 5.4.3,  and shall  immediately upon the expiration of such six (6)
      month  period  refund  to  DOV  the  amount  previously  credited  against
      royalties relating to such statement.

      5.5   SALES MILESTONE PAYMENTS

      Subject to the terms and conditions of this Agreement,  MERCK shall pay to
DOV the following payments based on the achievement of the following  milestones
("Sales Milestones"):

      (i)   Upon  achievement  of worldwide Net Sales of Product
            in one Calendar Year of [***] dollars (US [***])           $US [***]

      (ii)  Upon  achievement  of worldwide Net Sales of Product
            in one Calendar Year of [***] dollars (US [***])           $US [***]

      (iii) Upon  achievement  of worldwide Net Sales of Product
            in one Calendar Year of [***] dollars (US [***])           $US [***]

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None  of  the  payments  attributable  to  Sales  Milestones  is  refundable  or
creditable  against any other payments or obligations of MERCK coming due and do
not create any future  performance  obligations  on the part of DOV. MERCK shall
notify DOV in writing within thirty (30) days following the end of each Calendar
Year in which a Sales  Milestone  is  achieved,  and shall make the  appropriate
payment within thirty (30) days after the end of the Calendar Year in which such
Sales  Milestone is achieved.  The milestone  payment shall be payable only upon
the initial  achievement  of such Sales  Milestone  and no amounts  shall be due
hereunder for subsequent or repeated  achievement of such Sales  Milestone.  For
avoidance of doubt,  each Sales  Milestone  is  separately  achievable,  and the
achievement of all Sales  Milestone will yield  aggregated  payments by MERCK to
DOV of $US [***].  If Net Sales of Product  reach $US [***] in one year, a Sales
Milestone payment of $US [***] will be due. If thereafter,  Net Sales of Product
reach $US [***] in a second year, a Sales Milestone payment of $US [***] will be
due. If thereafter Net Sales of Product reach $US [***] in a third year, a Sales
Milestone payment of $US [***] will be due.

5.6   ROYALTIES

5.6.1 ROYALTIES  PAYABLE BY MERCK.  Subject to the terms and  conditions of this
      Agreement,   MERCK   shall   pay   DOV   royalties,    calculated   on   a
      Product-by-Product basis, as set forth in this Section 5.6.1.

5.6.1.1 PATENT  ROYALTIES.  For those  countries  where the sale of a Product by
      MERCK or its Related  Parties  would,  but for either the existence of the
      license  grants  provided in Sections  3.1 and 3.2, or MERCK's  Control of
      those MERCK Patent Rights  claiming or covering  compositions of matter of
      Product  or  Compound,  infringe a Valid  Patent  Claim,  MERCK  shall pay
      royalties to DOV in an amount  equal to the  following  percentage  of Net
      Sales of Products:

      (a)   [***]  of  worldwide  Net  Sales  in  each  Calendar  Year up to and
            including [***] dollars ($US [***]);

      (b)   [***] of worldwide  Net Sales in each  Calendar Year for the portion
            of  Net  Sales  exceeding  [***]  dollars  ($US  [***]),  up to  and
            including [***] dollars ($US [***]);

      (c)   [***] of worldwide  Net Sales in each  Calendar Year for the portion
            of  Net  Sales  exceeding  [***]  dollars  ($US  [***]),  up to  and
            including [***] dollars ($US [***]); and

      (d)   [***] of worldwide  Net Sales in each  Calendar Year for the portion
            of Net Sales exceeding [***] dollars ($US [***]).

5.6.1.2 KNOW-HOW  ROYALTY.  In  countries  where the sale of  Product  would not
      result in a royalty payment obligation under Section 5.6.1.1,  MERCK shall
      pay  royalty  rates that  shall be set at [***]  percent  ([***]%)  of the
      applicable royalty rate determined according to Section 5.6.1.1.

5.6.1.3 Royalty tiers pursuant to 5.6.1.1 and 5.6.1.2 shall be calculated  based
      on worldwide Net Sales of each Product, provided that the determination of
      whether the royalty shall be calculated  under 5.6.1.1 or 5.6.1.2 shall be
      determined on a country-by-country basis. Royalties on each Product at the
      rates set forth above shall continue on a  country-by-country  basis until
      the expiration of the later of: (i) the last-to-expire Valid Patent Claim;
      and (ii) ten (10) years after  First  Commercial  Sale of such  Product in
      such country (the  "Royalty  Period").  All  royalties  are subject to the
      following conditions:

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      (a)   that only one royalty  shall be due with respect to the same unit of
            Product;

      (b)   that no royalties shall be due upon the sale or other transfer among
            MERCK or any Related  Party,  but in such cases the royalty shall be
            due and calculated  upon MERCK's or the Related Party's Net Sales to
            the first Third Party;

      (c)   that no royalties  shall accrue on the sale or other  disposition of
            Product by MERCK or its Related Parties for use in a Clinical Trial;
            and

      (d)   that no  royalties  shall  accrue on the  disposition  of Product in
            reasonable  quantities  by MERCK or its  Related  Parties as samples
            (promotion or otherwise) or as donations (for example, to non-profit
            institutions or government agencies for a non-commercial purpose).

5.6.2 CHANGE IN SALES PRACTICES. The Parties acknowledge that during the term of
      this Agreement, MERCK's sales practices for the marketing and distribution
      of  Product  may  change to the  extent to which  the  calculation  of the
      payment  for  royalties  on Net  Sales  may  become  impractical  or  even
      impossible.  In such event the  Parties  agree to meet and discuss in good
      faith new ways of compensating  DOV to the extent  currently  contemplated
      under Section 5.6.1.

5.6.3 ROYALTIES FOR BULK COMPOUND. In those cases where MERCK or a Related Party
      sells bulk  Compound  rather than  Product to a Third  Party,  the royalty
      obligations of Section 5.6.1 shall apply to such sale of bulk Compound.

5.6.4 COMPULSORY  LICENSES.  If MERCK or a  Related  Party,  as a  condition  of
      obtaining or maintaining Marketing Authorization in a country, is required
      to grant a compulsory  license to a Third Party with respect to Product in
      any country in the Territory,  and the royalty rate under such  compulsory
      license is lower than the royalty rate provided by Section 5.6.1, then the
      royalty  rate  to be paid by  MERCK  on Net  Sales  under  the  applicable
      compulsory license in that country under Section 5.6.1 shall be reduced to
      the rate paid by the compulsory licensee.

5.6.5 THIRD PARTY  LICENSES.  In the event that one or more patent licenses from
      other Third Parties are required by MERCK or its Related  Parties in order
      to  make,  have  made,  use,  offer  to  sell,  sell  or  import  Compound
      (hereinafter "Third Party Patent Licenses"), [***] percent ([***]%) of the
      consideration  actually  paid under such Third  Party  Patent  Licenses by
      MERCK or its  Related  Parties  for sale of such  Compound or Product in a
      country for a Calendar  Quarter  shall be  creditable  against the royalty
      payments  due DOV by MERCK with  respect to the sale of such  Compound  or
      Products in such country;  provided,  however,  that in no event shall the
      royalties  owed by MERCK to DOV for such Calendar  Quarter in such country
      be reduced by more than [***] percent ([***]%).

5.7 REPORTS; PAYMENT OF ROYALTY. During the term of this Agreement following the
First  Commercial  Sale of a Product,  MERCK  shall  furnish to DOV a  quarterly
written  report for the Calendar  Quarter  showing the Net Sales of all Products
subject  to  royalty  payments  sold by MERCK  and its  Related  Parties  in the
Territory  during the  reporting  period and the  royalties  payable  under this
Agreement.  Reports shall be due on the thirtieth (30th) day following the close
of each Calendar Quarter. Royalties shown to have accrued by each royalty report
shall be due and  payable on the date such  royalty  report is due.  MERCK shall
keep complete and accurate records in sufficient  detail to enable the royalties
payable hereunder to be determined.

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5.8   AUDITS.

      (a)   Upon  the  written  request  of DOV and not more  than  once in each
            Calendar Year,  MERCK shall permit an independent  certified  public
            accounting firm of nationally  recognized  standing  selected by DOV
            and reasonably acceptable to MERCK, at DOV's expense, to have access
            during normal  business hours to such of the records of MERCK as may
            be reasonably  necessary to verify the accuracy of the  Development,
            Product Profile and Sales  Milestones and royalty reports  hereunder
            for any year ending not more than [***] ([***])  months prior to the
            date of such request. The accounting firm shall disclose to DOV only
            whether the royalty  reports are correct or incorrect and the amount
            of any discrepancy. No other information shall be provided to DOV.

      (b)   If such  accounting  firm  correctly  identifies a discrepancy  made
            during such period,  the appropriate Party shall pay the other Party
            the amount of the  discrepancy  within  thirty (30) days of the date
            DOV  delivers  to MERCK such  accounting  firm's  written  report so
            correctly  concluding,  or as otherwise  agreed upon by the Parties.
            The  fees  charged  by such  accounting  firm  shall be paid by DOV;
            provided,  however,  that if such audit uncovers a non-payment or an
            underpayment of milestone  payments or royalties by MERCK during the
            audited period that exceeds the greater of [***] dollars ($US [***])
            or percent  ([***]%) of the total  milestone  payments or  royalties
            owed, then the fees of such accounting firm shall be paid by MERCK.

      (c)   MERCK  shall  include in each  sublicense  granted by it pursuant to
            this Agreement a provision requiring the sublicensee to make reports
            to MERCK,  to keep and  maintain  records of sales made  pursuant to
            such  sublicense  and to  grant  access  to such  records  by  DOV's
            independent  accountant  to the same extent  required of MERCK under
            this Agreement.

      (d)   DOV shall treat all  financial  information  subject to review under
            this Section 5.8 or under any  sublicense  agreement  in  accordance
            with the  confidentiality  and non-use provisions of this Agreement,
            and shall  cause its  accounting  firm to enter  into an  acceptable
            confidentiality  agreement  with MERCK  and/or its  Related  Parties
            obligating it to retain all such information in confidence  pursuant
            to such confidentiality agreement.

5.9 PAYMENT  EXCHANGE  RATE.  All payments to be made by MERCK to DOV under this
Agreement  shall be made in United States  dollars and may be paid by check made
to the order of DOV or bank wire transfer in immediately available funds to such
bank account in the United  States as may be  designated  in writing by DOV from
time to time.  In the case of  sales  outside  the  United  States,  the rate of
exchange to be used in computing  the monthly  amount of currency  equivalent in
United  States  dollars  due DOV shall be made at the  monthly  rate of exchange
utilized by MERCK in its worldwide accounting system, prevailing on the third to
the last  business day of the month  preceding the month in which such sales are
recorded by MERCK.

5.10 DOV  216,303  COMPETITION  WITH DOV  21,947.  If,  during  the term of this
Agreement  MERCK  reasonably  demonstrates  that the sale by  prescription  of a
finished  pharmaceutical  product  containing  DOV 216,303 by DOV,  Wyeth or any
Affiliate or licensee of DOV or Wyeth has  adversely  affected  MERCK's sales by
prescription  of DOV  21,947  for an  Indication  for which  MERCK has  obtained
Marketing  Authorization,  upon MERCK's  request the parties shall  negotiate in
good faith to determine either (i) a commercially  reasonable amount of monetary
compensation that DOV should pay MERCK, or (ii) any other reasonable  adjustment
of payments made under this Agreement,  in either such case to compensate  MERCK
for such lost sales.  The Parties agree that disputes arising under this Section
5.10 shall be governed by the dispute resolution procedures set forth in Section
12.6.

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5.11 INCOME TAX WITHHOLDING.  If laws, rules or regulations  require withholding
of income taxes or other taxes  imposed upon  payments set forth in this Article
5, MERCK  shall make such  withholding  payments  as may be  required  and shall
subtract such  withholding  payments from the payments set forth in this Article
5. MERCK shall submit  appropriate  proof of payment of the withholding taxes to
DOV within a reasonable period of time.

6.    REPRESENTATIONS AND WARRANTIES

6.1  REPRESENTATIONS AND WARRANTIES OF DOV. DOV represents and warrants to MERCK
that as of the date of this Agreement:

      (a)   to DOV's knowledge, the DOV Patent Rights and DOV Know-How exist and
            are not invalid or unenforceable, in whole or in part;

      (b)   DOV is duly  organized  and validly  existing  under the laws of its
            state of incorporation;

      (c)   DOV has the full corporate right,  power and authority to enter into
            this  Agreement,  to  perform  the  Collaboration  and to grant  the
            licenses granted under Article 3 hereof, provided, however, that any
            DOV representation or warranty pertaining to DOV Patent Rights or to
            the infringement of Third Party Patent Rights is made exclusively by
            DOV in Sections 6.1(g) and 6.1(h) below and not this Section 6.1(c);

      (d)   to DOV's  knowledge,  this Agreement is legally binding upon DOV and
            enforceable  in  accordance  with  its  terms,  and  the  execution,
            delivery, and performance of this Agreement by DOV does not conflict
            with any agreement, instrument or understanding, oral or written, to
            which it is a party or by which it may be  bound,  nor  violate  any
            material  law or  regulation  of any  court,  governmental  body  or
            administrative or other agency having jurisdiction over it;

      (e)   DOV has received from Wyeth an acknowledgment  that DOV has provided
            to Wyeth the  information  required  under  Section 4.1 of the Wyeth
            Agreement,  and that Wyeth has  declined  to  exercise  the right of
            first refusal conferred by Section 4.1 of the Wyeth Agreement;

      (f)   DOV has not previously assigned, transferred,  conveyed or otherwise
            encumbered its right, title and interest in DOV Patent Rights or DOV
            Know-How;

      (g)   to DOV's  knowledge,  it is the sole and exclusive owner or licensee
            of the DOV Patent Rights and DOV Know-How, all of which are free and
            clear of any liens,  charges and encumbrances,  and no other person,
            corporate  or  other  private  entity,  or  governmental  entity  or
            subdivision  thereof,  has any claim of  ownership  whatsoever  with
            respect to the DOV Patent Rights and DOV  Know-How,  or, in the case
            of  Wyeth,  Wyeth  has no  basis  for  objecting  to the  sublicense
            thereof;

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      (h)   to DOV's  knowledge,  the  exercise of the license  granted to MERCK
            under the DOV Patent  Rights  and DOV  Know-How,  including  without
            limitation  the  development,  manufacture,  use, sale and import of
            Compound  and  Products  do  not  interfere  with  or  infringe  any
            intellectual property rights owned or possessed by any Third Party;

      (i)   to DOV's  knowledge,  there are no claims,  judgments or settlements
            against  or owed by DOV  and no  pending  or  threatened  claims  or
            litigation relating to the DOV Patent Rights and DOV Know-How; and

      (j)   DOV has  disclosed  to MERCK  all  reasonably  relevant  information
            regarding the DOV Patent Rights and DOV Know-How licensed under this
            Agreement, including without limitation all patent opinions obtained
            by DOV related thereto.

6.2  REPRESENTATIONS  AND WARRANTIES OF MERCK.  MERCK represents and warrants to
DOV that as of the date of this Agreement:

      (a)   MERCK has the full  right,  power and  authority  to enter into this
            Agreement and to perform the Collaboration;

      (b)   MERCK is duly  organized and validly  existing under the laws of its
            country of incorporation;

      (c)   to MERCK's  knowledge,  this Agreement is legally binding upon MERCK
            and  enforceable  in accordance  with its terms,  and the execution,
            delivery,  and  performance  of this  Agreement  by  MERCK  does not
            conflict with any agreement,  instrument or  understanding,  oral or
            written,  to which it is a party  or by which it may be  bound,  nor
            violate any material law or  regulation  of any court,  governmental
            body or administrative or other agency having jurisdiction over it;

      (d)   MERCK is a direct or  indirect  wholly-owned  subsidiary  of Merck &
            Co., Inc.; and

      (e)   MERCK is not  actively  engaged in the clinical  development  of any
            compound for the Indication of depression (as defined under DSM-IV).

6.3 DISCLAIMER.  THE FOREGOING WARRANTIES OF EACH PARTY ARE IN LIEU OF ANY OTHER
WARRANTIES,  EXPRESS OR  IMPLIED,  INCLUDING  WITHOUT  LIMITATION,  ANY  IMPLIED
WARRANTIES OF NONINFRINGEMENT,  ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR ANY
IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE,  ALL OF WHICH ARE HEREBY
SPECIFICALLY EXCLUDED AND DISCLAIMED.

7.    PATENT PROVISIONS

7.1 FILING,  PROSECUTION AND MAINTENANCE OF PATENTS.  DOV shall file,  prosecute
and maintain in the Territory, upon appropriate consultation with MERCK, the DOV
Patent  Rights  licensed  to MERCK  under  this  Agreement.  MERCK  shall  file,
prosecute and maintain in the Territory, upon appropriate consultation with DOV,
the Joint Patent Rights. With respect to DOV Information and Inventions, DOV may
elect not to file and if so,  DOV shall  notify  MERCK and MERCK  shall have the
right to file such patent  applications.  In such event,  DOV shall execute such
documents and perform such acts at DOV's expense as may be reasonably  necessary
in a timely manner to allow MERCK to continue such  prosecution on behalf of and
in the name of DOV. In each case,  the filing  Party  shall give the  non-filing
Party an opportunity to review the text of the application before filing,  shall
consult with the  non-filing  Party with respect  thereto,  and shall supply the
non-filing  Party with a copy of the application as filed,  together with notice
of its filing date and serial number. For those patents and patent  applications
covered in this Section 7.1, each filing Party shall keep the  non-filing  Party
advised of the status of the actual and  prospective  patent  filings and,  upon
request,  shall  provide  advance  copies of any papers  related to the  filing,
prosecution  and  maintenance  of such patent  filings.  DOV shall promptly give
notice to MERCK of the grant,  lapse,  revocation,  surrender,  invalidation  or
abandonment  of any DOV  Patent  Rights  licensed  to  MERCK  for  which  DOV is
responsible  for the filing,  prosecution and  maintenance.  With respect to all
filings  hereunder,  the filing  Party shall be  responsible  for payment of all
costs and expenses related to such filings.

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7.2 OPTION OF MERCK TO PROSECUTE AND MAINTAIN PATENTS.  DOV shall give notice to
MERCK of any desire to cease prosecution and/or maintenance of DOV Patent Rights
on a country by country basis in the Territory  and, in such case,  shall permit
MERCK, in its sole  discretion,  to continue  prosecution or maintenance of such
DOV Patent Rights at its own expense. If MERCK elects to continue prosecution or
maintenance  or to file based on DOV's  election not to file pursuant to Section
7.1 above,  DOV shall  execute  such  documents  and perform  such acts at DOV's
expense as may be reasonably  necessary for MERCK to perform such prosecution or
maintenance  or  filing  on  behalf  of and  in  the  name  of  DOV.  All of the
out-of-pocket  expenses and costs incurred by MERCK to continue  prosecution and
maintenance of DOV Patent Rights shall be fully creditable against royalties due
under Section 5.6 of this Agreement;  provided, however, that no royalty payment
when  due,  regardless  of the  number  of such  credits  available  to MERCK in
accordance with the terms of this Agreement, shall be reduced by more than fifty
percent  (50%).  Unused  credits  may be carried  over into  subsequent  royalty
periods.

7.3   INTERFERENCE, OPPOSITION, REEXAMINATION AND REISSUE.

7.3.1 Each Party shall,  within ten (10) days of learning of such event,  inform
      the other  Party of any  request  for,  or filing or  declaration  of, any
      interference,  opposition, reissue or reexamination relating to DOV Patent
      Rights or Joint Patent Rights.  MERCK and DOV shall thereafter consult and
      cooperate  fully to  determine a course of action with respect to any such
      proceeding.  MERCK  shall  have  the  right  to  review  and  approve  any
      submission to be made in connection with such  proceeding  relating to DOV
      Patent Rights.

7.3.2 DOV  shall  not  initiate  any  reexamination,   interference  or  reissue
      proceeding relating to DOV Patent Rights without the prior written consent
      of MERCK,  which consent shall not be unreasonably  withheld.  MERCK shall
      not  initiate  any  reexamination,   interference  or  reissue  proceeding
      relating to Joint Patent Rights without the prior written  consent of DOV,
      which consent shall not be unreasonably withheld.

7.3.3 In connection with any interference, opposition, reissue, or reexamination
      proceeding relating to DOV Patent Rights or Joint Patent Rights, MERCK and
      DOV will cooperate  fully and will provide each other with any information
      or assistance  that either may reasonably  request.  Each Party shall keep
      the other Party informed of developments in any such action or proceeding,
      including,  to the extent permissible by law, consultation on and approval
      of any settlement, the status of any settlement negotiations and the terms
      of any offer related thereto.

7.3.4 DOV shall bear the expense of any interference, opposition, reexamination,
      or reissue  proceeding  relating to DOV Patent Rights.  Both Parties shall
      share equally the expense of any interference,  opposition,  reexamination
      or reissue proceeding related to Joint Patent Rights.

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7.3.5 Regardless  of which Party has the right to initiate  and  prosecute  such
      action,  both Parties shall, as soon as practicable after receiving notice
      of such  certification,  convene and consult with each other regarding the
      appropriate course of conduct for such action.  The  non-initiating  Party
      shall  have  the  right  to be kept  fully  informed  and  participate  in
      decisions regarding the appropriate course of conduct for such action, and
      the right to join and participate in such action.

7.4   ENFORCEMENT AND DEFENSE.

7.4.1 DOV shall give MERCK notice of either (i) any  infringement  of DOV Patent
      Rights or (ii) any  misappropriation  or misuse of DOV  Know-How  that may
      come to DOV's  attention.  MERCK  and DOV  shall  thereafter  consult  and
      cooperate fully to determine a course of action, including but not limited
      to the  commencement  of legal  action by either or both MERCK and DOV, to
      terminate any infringement of DOV Patent Rights or any misappropriation or
      misuse of DOV Know-How. However, DOV, upon notice to MERCK, shall have the
      first right to initiate and prosecute such legal action at its own expense
      and in the  name  of DOV and  MERCK,  or to  control  the  defense  of any
      declaratory judgment action relating to DOV Patent Rights or DOV Know-How.
      DOV shall  promptly  inform MERCK if it elects not to exercise  such first
      right and MERCK shall  thereafter  have the right to either  initiate  and
      prosecute  such  action or to  control  the  defense  of such  declaratory
      judgment action in the name of MERCK and, if necessary, DOV; provided that
      MERCK shall not admit the invalidity or fail to defend the validity of any
      DOV  Patent  Right   without  DOV's  prior  consent  which  shall  not  be
      unreasonably  withheld.  Each Party shall have the right to be represented
      by counsel of its own choice.

7.4.2 In the event that DOV elects not to initiate  and  prosecute  an action as
      provided  in Section  7.4.1,  and MERCK  elects to do so, the costs of any
      agreed-upon  course of  action to  terminate  infringement  of DOV  Patent
      Rights or  misappropriation  or misuse of DOV Know-How,  including without
      limitation  the costs of any legal action  commenced or the defense of any
      declaratory judgment, shall be shared equally by DOV and MERCK.

7.4.3 For any action to terminate any  infringement  of DOV Patent Rights or any
      misappropriation  or misuse of DOV  Know-How,  in the event  that MERCK is
      unable to initiate or prosecute  such action  solely in its own name,  DOV
      will  join  such  action  voluntarily  and  will  execute  and  cause  its
      Affiliates  to  execute  all  documents  necessary  for MERCK to  initiate
      litigation to prosecute and maintain such action.  In connection  with any
      action,  MERCK and DOV will  cooperate  fully and will  provide each other
      with any  information or assistance  that either may  reasonably  request.
      Each Party shall keep the other informed of  developments in any action or
      proceeding,  including,  to the extent permissible by law, consultation on
      and approval of any settlement,  the status of any settlement negotiations
      and the terms of any offer related thereto.

7.4.4 Any recovery  obtained by either or both MERCK and DOV in connection  with
      or as a result of any action  contemplated by this Section 7.4, whether by
      settlement or otherwise, shall be shared in order as follows:

      (a)   the Party that  initiated and prosecuted the action shall recoup all
            of its costs and expenses incurred in connection with the action;

      (b)   the other  Party  shall then,  to the extent  possible,  recover its
            costs and expenses incurred in connection with the action; and

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      (c)   the amount of any  recovery  remaining  shall then be allocated on a
            [***]%/[***]%  basis,  with the Party that  initiated and prosecuted
            the action  receiving  [***]% of the  recovery  and the other  Party
            receiving [***]% of the recovery.

7.4.5 DOV shall  inform  MERCK of any  certification  regarding  any DOV  Patent
      Rights it has received pursuant to either 21 U.S.C. ss.ss.355(b)(2)(A)(iv)
      or  (j)(2)(A)(vii)(IV)  or  its  successor  provisions,   or  any  similar
      provisions in a country in the Territory other than the United States, and
      shall provide MERCK with a copy of such certification within five (5) days
      of receipt.  DOV's and MERCK's  rights with respect to the  initiation and
      prosecution of any legal action as a result of such  certification  or any
      recovery  obtained as a result of such legal action shall be as defined in
      Sections  7.4.1 through 7.4.4 hereof;  provided,  however,  that DOV shall
      exercise  its first right to initiate and  prosecute  any action and shall
      inform  MERCK of such  decision  within  ten (10) days of  receipt  of the
      certification, after which time MERCK shall have the right to initiate and
      prosecute such action.

7.5 PATENT TERM RESTORATION,  EXTENSION OR ADJUSTMENT.  The Parties hereto shall
cooperate with each other,  including  without  limitation to provide  necessary
information  and  assistance  as the other  Party  may  reasonably  request,  in
obtaining patent term restoration, extension or adjustment certificates or their
equivalents  in any  country in the  Territory  where  applicable  to DOV Patent
Rights or Joint Patent Rights.  The Party  responsible  for prosecuting a patent
application included in the DOV Patent Rights or Joint Patent Rights shall apply
promptly for patent term restoration or adjustment after the application  issues
as a U.S. or foreign patent,  consistent  with those  procedures set forth in 35
U.S.C. ss.ss. 154(b) and 155A or their foreign equivalents. For any patent which
encompasses  within its scope  Compound or Product,  either as a composition  of
matter or as a process for using such  composition,  that has been  subjected to
regulatory review by the FDA or comparable  foreign regulatory agency, the owner
of record for such patent shall apply for patent term  extension  in  accordance
with the  procedures set forth in 35 U.S.C ss. 156. For any Product or Compound,
if the Party sponsoring the regulatory review thereof is not the owner of record
of all patents  eligible for patent term extension under 35 U.S.C.  ss. 156, the
Party sponsoring the regulatory  review for Compound or Product shall inform the
owner of record promptly of any regulatory  approval that triggers the aforesaid
obligation to apply for patent term extension.  In the event that elections with
respect to obtaining such patent term  restoration,  extension or adjustment are
to be made,  MERCK shall have the right to make the  election  and DOV agrees to
abide by such election.

7.6 WYETH AGREEMENT.  The Parties acknowledge that DOV's rights to prosecute and
maintain  DOV Patent  Rights  relating  to DOV  216,303 are subject to the Wyeth
Agreement,  and that this Article 7 shall be interpreted and applied in a manner
consistent with the relevant provisions of the Wyeth Agreement.

7.7 EFFECT OF CERTAIN TERMINATIONS.  Notwithstanding the foregoing provisions of
Article 7 to the contrary,  in the event of a termination  of this  Agreement by
either Party  pursuant to Section 9.2 or by DOV  pursuant to Section 9.3,  MERCK
shall have no rights and DOV shall have no obligations under this Article 7 with
respect to DOV Patent Rights.

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8.    INDEMNIFICATION

8.1   BY MERCK. MERCK agrees to indemnify,  hold harmless and defend DOV and its
      officers,  directors,  shareholders,  employees,  successors  and  assigns
      (collectively,  the "DOV Indemnified Parties") against any and all losses,
      costs,  expenses,  fees or damages  arising  out of or  relating to claims
      asserted by any Third Party, whether governmental and private, arising out
      of or  relating  to (i)  personal  injury  arising  from the  development,
      manufacture,  use,  sale or other  disposition  of Product by MERCK or its
      Related  Parties under this  Agreement;  (ii) MERCK's breach of any of its
      representations and warranties set forth in Section 6.2 of this Agreement;
      (iii)  MERCK's  failure  to comply  with all  applicable  laws,  rules and
      regulations;  or (iv) the gross negligence or willful misconduct of any of
      the MERCK Indemnified Parties as defined below,  provided that MERCK shall
      not be required to indemnify,  hold harmless or defend any DOV Indemnified
      Party against any claim  arising out of or related to any DOV  Indemnified
      Party's  (w) use,  development  and/or  commercialization  of any  product
      containing a Compound in the event of DOV's  obtaining of rights  relating
      to Compounds  and Products  pursuant to Section  9.4.3;  (x) use of Mother
      Liquor  provided  by MERCK to DOV  pursuant  to  Section  3.8;  (y)  gross
      negligence  or  willful  misconduct,  or (z)  failure  to comply  with all
      applicable laws, rules and regulations.

8.2   BY DOV. DOV agrees to  indemnify,  hold  harmless and defend MERCK and its
      officers,  directors,  shareholders,  employees,  successors  and  assigns
      (collectively,  the  "MERCK  Indemnified  Parties")  against  any  and all
      losses,  costs,  expenses,  fees or damages  arising out of or relating to
      claims  asserted by any Third  Party,  whether  governmental  and private,
      arising  out  of  or   relating  to  (i)  DOV's   breach  of  any  of  its
      representations and warranties set forth in Section 6.1 of this Agreement;
      (ii)  DOV's  failure  to  comply  with  all  applicable  laws,  rules  and
      regulations;  (iii) in the event of DOV's  obtaining of rights relating to
      Compounds and Products pursuant to Section 9.4.3,  DOV's use,  development
      and/or  commercialization  of any product containing a Compound;  (iv) any
      use by DOV or any other person of Mother  Liquor  provided by MERCK to DOV
      pursuant to Section 3.8; or (v) the gross negligence or willful misconduct
      of any of the DOV  Indemnified  Parties,  provided  that DOV  shall not be
      required to indemnify, hold harmless or defend any MERCK Indemnified Party
      against  any claim  arising  out of or  related  to any MERCK  Indemnified
      Party's  (y) gross  negligence  or willful  misconduct,  or (z) failure to
      comply with all applicable laws, rules and regulations.

8.3   PROCEDURE.  If either Party is seeking  indemnification under Sections 8.1
      or 8.2 (the  "Indemnified  Party"),  it shall  inform the other Party (the
      "Indemnifying  Party")  of the  claim  giving  rise to the  obligation  to
      indemnify pursuant to such section as soon as reasonably practicable after
      receiving notice of the claim. The Indemnifying Party shall have the right
      to assume  the  defense  of any such  claim for which it is  obligated  to
      indemnify the Indemnified  Party.  The  Indemnified  Party shall cooperate
      with the Indemnifying  Party and the  Indemnifying  Party's insurer as the
      Indemnifying Party may reasonably request, and at the Indemnifying Party's
      cost  and  expense.   The  Indemnified  Party  shall  have  the  right  to
      participate,  at its own  expense and with  counsel of its choice,  in the
      defense  of any claim or suit that has been  assumed  by the  Indemnifying
      Party.  Neither  Party shall have the  obligation  to indemnify  the other
      Party in  connection  with any  settlement  made  without the  Indemnified
      Party's written consent,  which consent shall not be unreasonably withheld
      or delayed.  If the Parties cannot agree as to the application of Sections
      8.1 or 8.2 to any claim,  pending  resolution  of the dispute  pursuant to
      Section 12.6,  the Parties may conduct  separate  defenses of such claims,
      with each  Party  retaining  the right to claim  indemnification  from the
      other Party in accordance  with Sections 8.1 or 8.2 upon resolution of the
      underlying claim.

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9.    TERM AND TERMINATION

9.1 TERM AND  EXPIRATION.  This  Agreement  shall be effective as of the Closing
Date and, unless terminated  earlier pursuant to Sections 9.2 or 9.3 below, this
Agreement shall continue in effect until  expiration of all royalty  obligations
hereunder.  Upon  expiration  of this  Agreement,  MERCK's  and  DOV's  licenses
pursuant to Section 3.1 and Section 3.2 shall  become fully  paid-up,  perpetual
licenses.

9.2  TERMINATION  BY MERCK WITHOUT  CAUSE.  Notwithstanding  anything  contained
herein to the contrary,  MERCK shall have the right to terminate  this Agreement
at any time in its sole discretion by giving [***] ([***]) days' advance written
notice to DOV. Prior to the effective date of the  termination of this Agreement
pursuant to this Section 9.2,  MERCK shall return or cause to be returned to DOV
all  Information  in tangible  form  received  from DOV and all copies  thereof;
provided,  however,  that MERCK may retain one copy of Information received from
DOV in its confidential files for record purposes.

9.3.  TERMINATION FOR CAUSE. This Agreement may be terminated at any time during
      the term of this Agreement:

9.3.1.upon  written  notice by either  Party if the other  Party is in breach of
      any material  obligation  hereunder  and has not cured such breach  within
      ninety  (90) days after  written  notice  requesting  cure of the  breach,
      subject to Section 9.3.2;  provided,  however, that in the event of a good
      faith  dispute with respect to the  existence  of a material  breach,  the
      ninety (90) day cure period shall be tolled until such time as the dispute
      is resolved pursuant to Section 12.6 hereof; or

9.3.2.either   Party   upon   the   filing   or   institution   of   bankruptcy,
      reorganization,  liquidation  or  receivership  proceedings,  or  upon  an
      assignment  of a  substantial  portion of the  assets  for the  benefit of
      creditors by the other party (a "Bankruptcy  Event"),  provided,  however,
      that in the case of any  involuntary  bankruptcy  proceeding such right to
      terminate shall only become effective if the Party consents to involuntary
      bankruptcy or such  proceeding  is not  dismissed  within ninety (90) days
      after the filing thereof.

9.3.3.In the event that MERCK  breaches a material  obligation  of the Agreement
      after the First  Commercial Sale in the United States,  EMEA or Japan, and
      such breach relates only to the  development or  commercialization  of the
      Product in a single country or group of countries,  the Agreement shall be
      terminable  by DOV only in the country or group of countries to which such
      breach  relates.  For  avoidance of doubt,  a failure of MERCK to exercise
      Commercially  Reasonable Efforts pursuant to Section 3.6 shall be deemed a
      breach of a material obligation of MERCK.

9.4   EFFECT OF TERMINATION; SURVIVAL.

9.4.1 EFFECT ON  LICENSES.  (a) In the event of  termination  under  Section 9.2
      above or  termination  by DOV  pursuant  to  Section  9.3  above,  MERCK's
      licenses  pursuant  to  Sections  3.1 and 3.2 shall  terminate  as of such
      termination  date,  provided,  however,  that  MERCK  shall  have a  fully
      paid-up,  non-exclusive  license to use DOV Information and Inventions and
      Joint Information and Inventions for internal research purposes only.

      (b) In the event of  termination  by MERCK  pursuant to Section 9.3 above,
      all  licenses  pursuant to  Sections  3.1 and 3.2 shall  become  perpetual
      licenses, subject to the obligation to pay

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      milestones and royalties as set forth in this Section  9.4.1(b),  provided
      that  any  license  to DOV  216,303  will  be  subject  to the  terms  and
      conditions of the Wyeth Agreement,  and MERCK's rights pursuant to Section
      3.4 shall become perpetual.  DOV shall,  within thirty (30) days after the
      effective  date of such  termination,  return or cause to be  returned  to
      MERCK all Information in tangible form, and all substances or compositions
      delivered or provided by MERCK, as well as any other material  provided by
      MERCK in any medium.  In the event of such a termination  by MERCK,  MERCK
      shall continue to have an obligation to pay DOV milestones pursuant to and
      under the terms set forth in Sections 5.3, 5.4 and 5.5,  provided that the
      amount of such milestone  payments shall be [***] percent  ([***]%) of the
      amounts set forth in Sections  5.3, 5.4 and 5.5,  and MERCK shall  further
      continue to have an obligation to pay DOV royalties  pursuant to and under
      the terms set  forth in  Section  5.6,  provided  that the  amount of such
      royalties  shall be [***]  percent  ([***]%)  of the  amounts set forth in
      Section 5.6.

9.4.2 PAYMENT  OBLIGATIONS  FOLLOWING  TERMINATION.  In the event of termination
      under Section 9.2 or 9.3 above,  each Party shall pay all amounts then due
      and owing as of the effective date of such termination no later than sixty
      (60)  days  after  the  effective  date of such  termination  (such 60 day
      period, the "Transition Period").

9.4.3 KNOW-HOW AND PATENT TRANSFERS, REGULATORY FILINGS AND LICENSES.

      (a)   In the event of  termination  by MERCK pursuant to Section 9.2 or by
            DOV  pursuant  to Section  9.3  above,  no later than the end of the
            Transition Period,  MERCK shall deliver to DOV the MERCK Termination
            Know-How;  provided;  however,  that MERCK and its  Affiliates  will
            transfer to DOV any Information or Joint  Information and Inventions
            necessary or useful to the prosecution of DOV Patent Rights or Joint
            Patent  Rights no less than thirty (30) days before any  application
            deadline applicable to any DOV Patent Right or Joint Patent Rights.

      (b)   Effective only upon the event of termination of this Agreement under
            Section  9.2 or by DOV  pursuant  to Section  9.3  above,  (i) MERCK
            hereby  transfers,  and  agrees  to  transfer,  to DOV  title  to or
            sponsorship of any IND, NDA or other  regulatory  filing held in the
            name of MERCK or its Related  Parties  pertaining to the Compound or
            the Product or, (ii) if such transfer is not legally  permissible or
            such items do not relate solely to Compound or Product, MERCK hereby
            grants,  and  agrees  to  grant,  DOV the  right,  with the right to
            sublicense,  to access, use and  cross-reference  such data, filings
            and  approvals  from  Regulatory  Authorities,  which right shall be
            exclusive  (including  as to MERCK)  with  respect to  Compound  and
            Product.

      (c)   Effective  upon  the  effective  date  of the  termination  of  this
            Agreement under Section 9.2 or 9.3 above, MERCK hereby grants to DOV
            a paid-up, royalty-free,  perpetual, irrevocable, exclusive (even as
            to MERCK and its  Affiliates)  license,  under MERCK Patent  Rights,
            MERCK's and its  Controlled  Affiliates'  rights  under Joint Patent
            Rights,  and MERCK  Termination  Know-How,  to the extent  that such
            MERCK Patent Rights and MERCK  Termination  Know-How are exclusively
            related  to  Compound(s)   and/or   Product(s),   with  a  right  to
            sublicense,  to make,  have made, use, offer to sell, sell or import
            Compound(s)  and/or  Product(s)  for use and sale in the  country or
            countries to which such termination relates.

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      (d)   Effective  upon  the  effective  date  of the  termination  of  this
            Agreement under Section 9.2 or 9.3 above, MERCK hereby grants to DOV
            a  paid-up,  royalty-free,  perpetual,  irrevocable,   non-exclusive
            license,  under MERCK  Patent  Rights,  MERCK's  and its  Controlled
            Affiliates'  rights under Joint Patent Rights and MERCK  Termination
            Know-How that are not licensed  under Section  9.4.3(b) and that are
            related  to  Compound(s)   and/or   Product(s),   with  a  right  to
            sublicense,  to make,  have made, use, offer to sell, sell or import
            Compound(s)  and/or  Product(s)  for use and sale in the  country or
            countries to which such termination relates.

      (e)   Following the effective  date of the  termination  of this Agreement
            under  Section 9.2 or 9.3 above,  neither  MERCK nor its  Controlled
            Affiliates  shall sue or  otherwise  assert  any claim  against  (or
            participate  in or join or  otherwise  aid in any  claim  or  action
            against)   DOV,  any  contract   manufacturer   of  DOV  and/or  any
            sublicensee  of DOV to the  extent  that  such  claim is or would be
            based on the  manufacture,  use, sale, offer for sale or importation
            of Compound(s)  and/or  Product(s),  which  manufacture,  use, sale,
            offer for sale or importation is or would be alleged to infringe any
            Patent  Right  (now or in the  future)  Controlled  by  MERCK or its
            Controlled Affiliates .

      (f)   No  later  than  the end of the  Transition  Period,  MERCK  and its
            Controlled  Affiliates shall transfer at no cost to DOV any Compound
            or Product in MERCK's  possession or in the  possession of a Related
            Party.

      (g)   During the Transition  Period,  MERCK and its Controlled  Affiliates
            shall  provide  reasonable  technical  support  from  technical  and
            scientific  personnel  of MERCK and its  Affiliates  to  effect  the
            complete  transfer  of  Information  from  MERCK  to DOV,  including
            Information  necessary for the use of MERCK Termination Know-How and
            the  practice  of MERCK  Patent  Rights and Joint  Patent  Rights in
            relation to Compound or Product.

9.4.4 Notwithstanding  anything in this Section 9.4, MERCK shall not be required
      to  provide a  license  under  MERCK  Patent  Rights or MERCK  Termination
      Know-How,  for use of Compound(s)  and/or Product(s) in humans as a result
      of a termination of this Agreement,  if (a) [***] and (b) either (i) [***]
      or  (ii)  [***].  For  the  avoidance  of  doubt,  (y) in the  event  of a
      determination  by MERCK that such Product is materially  unsafe for use in
      humans,  the  provisions of Article 10 shall apply and (z) nothing in this
      Section  9.4.4 shall prevent DOV from  exercising  any of its rights under
      Section 9.4.3 in connection with the use of Compound(s)  and/or Product(s)
      in non-humans.

9.5   SURVIVAL.  Expiration or termination  of this Agreement  shall not relieve
      the  Parties  of any  obligation  accruing  prior  to such  expiration  or
      termination.  Any expiration or  termination  of this  Agreement  shall be
      without  prejudice to the rights of either Party against the other accrued
      or accruing  under this  Agreement  prior to  expiration  or  termination,
      including   without   limitation  the  obligation  to  pay  royalties  for
      Product(s) or Compound sold prior to such expiration or  termination.  The
      provisions  of  Article 4 (other  than  Section  4.5)  shall  survive  the
      expiration or  termination  of this Agreement and shall continue in effect
      for ten (10)  years.  In  addition,  the  provisions  of  Articles 1, 6, 7
      (subject to Section 7.7), 8, and 12 and Sections 9.4 and 9.5 shall survive
      any expiration or termination of this Agreement.

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9.6 UNITED STATES  BANKRUPTCY  CODE. All licenses and rights to licenses granted
under or pursuant to this  Agreement  are, and shall  otherwise be deemed to be,
for  purposes  of  Section  365(n) of the  United  States  Bankruptcy  Code (the
"Code"),  licenses of rights to "intellectual property" as defined under Section
101(35A) of the Code.  Either  Party,  as a licensee  of such rights  under this
Agreement (the "non-Bankrupt party"), shall retain and may fully exercise all of
its rights and elections  under the Code, and upon  commencement of a bankruptcy
proceeding by or against the other Party (the "Bankrupt  Party") under the Code,
shall be entitled  to a complete  duplicate  of, or  complete  access to (as the
non-Bankrupt Party deems  appropriate),  any such intellectual  property and all
embodiments of such intellectual  property.  Such intellectual  property and all
embodiments  thereof shall be promptly  delivered to the non-Bankrupt  Party (i)
upon any such  commencement  of a bankruptcy  proceeding  upon  written  request
therefor by the non-Bankrupt Party, unless the Bankrupt Party elects to continue
to perform all of its obligations  under this Agreement or (ii) if not delivered
under (i) above,  upon the  rejection  of this  Agreement by or on behalf of the
Bankrupt Party upon written  request  therefor by the  non-Bankrupt  Party.  The
foregoing  provisions  of Section  9.6 are without  prejudice  to any rights the
non-Bankrupt Party may have arising under the Code or other applicable law.

10.   SAFETY ISSUES.

      10.1 In the event that MERCK  determines  that the  Product is  materially
      unsafe for use in humans, MERCK agrees to meet promptly with DOV following
      such  determination,  (i) to show DOV all  preclinical  and clinical  data
      related to the Product,  including  the data  demonstrating  such material
      lack of safety  for use in  humans;  (ii) to  explain to DOV the basis for
      MERCK's reasonable determination that the Product is materially unsafe for
      use in humans,  including the factors  supporting  MERCK's  decision;  and
      (iii) to discuss  with DOV  whether  Compound  or Product  may be safe for
      Indications other than those tested by MERCK, or may be safe using reduced
      doses, or may be safe for administration to patient populations other than
      those tested by MERCK.

      10.2 [***].

11.   CONDITIONS TO CLOSING; HSR ACT

11.1  HSR FILING.

      (a)   Each of MERCK and DOV  shall,  within  fifteen  (15) days  after the
            Execution Date, file with the United States Federal Trade Commission
            and the  Antitrust  Division  of the  United  States  Department  of
            Justice,  any HSR  Filing  required  of it  under  the HSR Act  with
            respect to the transactions  contemplated  hereby.  The Parties will
            cooperate   with  one  another  to  the  extent   necessary  in  the
            preparation  of any such HSR Filing.  Each Party will be responsible
            for its own costs, expenses, and filing fees associated with any HSR
            Filing.

      (b)   In  respect  of any HSR  Filing,  each of MERCK and DOV will use its
            good faith efforts to eliminate any concern on the part of any court
            or  Governmental  Authority  regarding  the legality of the proposed
            transaction, including cooperating in good faith with any government
            investigation and the prompt production of documents and information
            demanded  by a second  request for  documents  and of  witnesses  if
            requested.

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11.2  CLOSING  DATE OF  AGREEMENT.  The Closing  Date shall not occur until such
      time as (a) the  waiting  period  under the HSR Act shall have  expired or
      earlier been terminated; (b) no injunction (whether temporary, preliminary
      or permanent) prohibiting consummation of the transactions contemplated by
      this Agreement or any material portion hereof shall be in effect;  and (c)
      no  requirements  or  conditions  shall have been  imposed  in  connection
      therewith   which  are  not   reasonably   satisfactory   to  the  Parties
      (collectively, the "HSR Conditions").

11.3  PORTIONS OF  AGREEMENT  EFFECTIVE AS OF  EXECUTION  DATE.  Notwithstanding
      Section 11.2 and anything in this Agreement to the contrary, the following
      provisions  of the  Agreement  shall be in full force and effect as of the
      Execution  Date:  Article 1  (Definitions),  Article 4  (Confidentiality),
      Article 6 (Representations  and Warranties),  Article 8 (Indemnification),
      Article 9 (Termination)  Article 11 (Conditions to Closing;  HSR Act), and
      Article 12 (Miscellaneous).

12.   MISCELLANEOUS

12.1 FORCE MAJEURE. Neither Party shall be held liable to the other Party nor be
deemed to have  defaulted  under or breached this Agreement for failure or delay
in  performing  any  obligation  under this  Agreement  to the extent  that such
failure  or delay is caused by or results  from  causes  beyond  the  reasonable
control of the  affected  Party,  potentially  including,  but not  limited  to,
embargoes,  war,  acts of war (whether  war be declared or not),  insurrections,
riots, civil commotions,  strikes,  lockouts or other labor disturbances,  fire,
floods,  or other  acts of God,  or acts,  omissions  or delays in acting by any
Governmental  Authority or the other Party.  The affected Party shall notify the
other Party of such force majeure circumstances as soon as reasonably practical,
and shall promptly undertake all reasonable efforts necessary to cure such force
majeure circumstances.

12.2  ASSIGNMENT/  CHANGE OF CONTROL.  Except as provided in this Section  12.2,
this Agreement may not be assigned or otherwise  transferred,  nor may any right
or obligation hereunder be assigned or transferred,  by either Party without the
consent of the other  Party.  MERCK may,  without  DOV's  consent,  assign  this
Agreement  and its rights  and  obligations  hereunder  in whole or in part to a
MERCK Affiliate or in connection with a Change of Control (as defined below). In
the event of such Change of Control,  MERCK will promptly (but in no event later
than five (5) days  thereafter)  notify DOV of such Change of Control.  DOV may,
without  MERCK's  consent,  assign this Agreement and its rights and obligations
hereunder (except as specified below) in connection with a Change of Control. In
the event of such Change of Control,  DOV will  promptly  (but in no event later
than five (5) days  thereafter)  notify  MERCK of such  Change of  Control.  Any
assignee  shall  assume all  assigned  obligations  of its  assignor  under this
Agreement.  Any attempted  assignment  not in accordance  with this Section 12.2
shall be void. In addition to MERCK's rights set forth above,  in the event of a
Change of  Control  in which a Major  Pharma  Entity  obtains  control of DOV by
acquiring DOV's assets or voting equity  securities (by asset purchase,  merger,
consolidation, reorganization or otherwise) (a) all provisions of this Agreement
that require MERCK to provide  information  to DOV shall  terminate,  except (i)
royalty  reports  pursuant to Section 5.7; (ii) notices of the attainment of any
Development  Milestone or Product Profile Milestone (as described in Section 5.3
or Section 5.4 hereunder);  and (iii)  disclosures to DOV required under Section
9.4.4 or Section 10; and (b) DOV's  option to  co-promote  Product in the United
States pursuant to Section 3.7 shall terminate  immediately  upon such Change of
Control. A "Change of Control" of a Party shall be

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*** CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO THIS MATERIAL.

deemed  to occur if such  Party  is  involved  in a  merger,  reorganization  or
consolidation, or if there is a sale of all or substantially all of such Party's
assets or business relating to this Agreement or if a person or group other than
the current controlling person or group shall effectively acquire control of the
management and policies of such Party.  Also, for purposes of this Section 12.2,
"Major Pharma  Entity"  shall mean any health care  company,  or group of health
care companies  acting in concert to effect a Change of Control of DOV, for whom
the worldwide sales of pharmaceutical products (collectively in the case of such
a group of  companies)  in the Calendar Year that preceded the Change of Control
is in excess of [***] U.S. Dollars ($[***]), as reported by such entity or group
or as reported by IMS America Ltd. of Plymouth Meeting,  Pennsylvania ("IMS") or
any successor to IMS. In the event of any permitted  assignment for either Party
hereunder,  no Patent Rights, or any Information for purposes of the definitions
of DOV Know-How,  MERCK Know-How and MERCK  Termination  Know-How,  of any Third
Party, or any of such Third Party's  Affiliates that is an acquiring party shall
be deemed  "Controlled"  for any  purpose  hereunder  if such  Patent  Rights or
Information were not so Controlled prior to such permitted assignment.

12.3  SEVERABILITY.  If any  one or  more of the  provisions  contained  in this
Agreement  is  held  invalid,  illegal  or  unenforceable  in any  respect,  the
validity,  legality and  enforceability  of the remaining  provisions  contained
herein shall not in any way be affected or impaired thereby,  unless the absence
of the invalidated  provision(s) adversely affects the substantive rights of the
Parties. The Parties shall in such an instance use their best efforts to replace
the  invalid,  illegal  or  unenforceable  provision(s)  with  valid,  legal and
enforceable provision(s) which, insofar as practical,  implement the purposes of
this Agreement.

12.4 NOTICES.  All notices which are required or permitted hereunder shall be in
writing and sufficient if delivered personally,  sent by facsimile (and promptly
confirmed  by personal  delivery,  registered  or  certified  mail or  overnight
courier), sent by nationally-recognized  overnight courier or sent by registered
or certified  mail,  postage  prepaid,  return receipt  requested,  addressed as
follows:

         If to DOV, to:                    DOV Pharmaceutical, Inc.
                                           433 Hackensack Avenue
                                           Hackensack, NJ  07601
                                           Attention: CEO
                                           Facsimile No.: (201) 968-0986

                  and:                     Attention: Office of General Counsel
                                           Facsimile No.: (201) 968-0986

         If to MERCK, to:                  MSD Warwick (Manufacturing) Ltd.
                                           Chesney House
                                           96 Pitts Bay Road,
                                           Pembroke HM 08,
                                           Bermuda
                                           Attention:  Financial Director

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                    with a copy to:        MERCK & Co., Inc.
                                           One MERCK Drive
                                           P.O. Box 100, WS3A-65
                                           Whitehouse Station, NJ 08889-0100
                                           Attention: Office of Secretary
                                           Facsimile No.: (908)735-1246

                    and                    MERCK & Co., Inc.
                                           One MERCK Drive
                                           Attention: Chief Licensing Officer
                                           P.O. Box 100, WS2A-30
                                           Whitehouse Station, NJ 08889-0100
                                           Facsimile: (908)735-1214

or to such other address(es) as the Party to whom notice is to be given may have
furnished to the other Party in writing in accordance herewith.  Any such notice
shall be deemed to have been given: (a) when delivered,  if personally delivered
or  sent  by  facsimile  on a  business  day  (or  if  delivered  or  sent  on a
non-business  day, then on the next business day); (b) on the business day after
dispatch,  if sent by  nationally-recognized  overnight  courier;  or (c) on the
fifth (5th) business day following the date of mailing, if sent by mail.

12.5  APPLICABLE  LAW.  This  Agreement  shall be governed by and  construed  in
accordance  with the laws of the State of New Jersey and the patent  laws of the
United  States,  without  reference  to any rules of conflict of laws or renvoi,
provided  that any  dispute  relating  to the scope,  validity,  enforceability,
infringement  or misuse of any Patent Rights shall be governed by, and construed
and enforced in accordance  with, the  substantive  laws of the  jurisdiction in
which such Patent Right originates.  The United Nations conventions on Contracts
for the International Sale of Goods shall not apply.

12.6     DISPUTE RESOLUTION.

12.6.1   The Parties shall negotiate in good faith and use reasonable efforts to
         settle any  dispute,  controversy  or claim  arising from or related to
         this  Agreement  or the  breach  thereof.  If the  Parties do not fully
         settle,  and a Party  wishes to pursue the matter,  each such  dispute,
         controversy  or claim that is not an "Excluded  Claim" shall be finally
         resolved  by binding  arbitration  in  accordance  with the  Commercial
         Arbitration  Rules  and  Supplementary  Procedures  for  Large  Complex
         Disputes of the American Arbitration  Association ("AAA"), and judgment
         on  the   arbitration   award  may  be  entered  in  any  court  having
         jurisdiction thereof.

12.6.2   The  arbitration  shall  be  conducted  by a  panel  of  three  persons
         experienced  in the  pharmaceutical  business.  Within thirty (30) days
         after initiation of arbitration,  each Party shall select one person to
         act as arbitrator;  and the two Party-selected arbitrators shall select
         a third arbitrator within thirty (30) days of their appointment. If the
         arbitrators  selected  by the  Parties are unable or fail to agree upon
         the third  arbitrator,  the third  arbitrator shall be appointed by the
         AAA.  The place of  arbitration  shall be New York,  New York,  and all
         proceedings and communications shall be in English.

12.6.3   Either Party may apply to the arbitrators for interim injunctive relief
         until the arbitration award is rendered or the controversy is otherwise
         resolved.  Either Party also may, without waiving any remedy under this
         Agreement,  seek from any court having  jurisdiction  any injunctive or
         provisional  relief necessary to protect the rights or property of that
         Party pending the arbitration

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         award. The arbitrators shall have no authority to award punitive or any
         other type of damages not measured by a Party's  compensatory  damages.
         Each Party shall bear its own costs and  expenses and  attorneys'  fees
         and an equal share of the arbitrators' fees and any administrative fees
         of arbitration.

12.6.4   Except  to the  extent  necessary  to  confirm  an  award  or as may be
         required by law,  neither a Party nor an  arbitrator  may  disclose the
         existence,  content,  or results of an  arbitration  without  the prior
         written  consent of both Parties.  In no event shall an  arbitration be
         initiated  after the date  when  commencement  of a legal or  equitable
         proceeding  based on the dispute,  controversy or claim would be barred
         by the applicable New Jersey statute of limitations.

12.6.5   The Parties  agree that,  in the event of a dispute  over the nature or
         quality  of  performance  under  this  Agreement,   neither  Party  may
         terminate this Agreement until final  resolution of the dispute through
         arbitration or other judicial determination.  The Parties further agree
         that any payments made pursuant to this Agreement pending resolution of
         the dispute shall be refunded if an arbitrator or court determines that
         such payments are not due.

12.6.6   In any  arbitration  on the issue of whether  MERCK  used  Commercially
         Reasonable  Efforts to develop a Product pursuant to Section 3.6, MERCK
         shall  have the burden of proving  that it has  exercised  Commercially
         Reasonable Efforts, provided,  however, that MERCK shall be presumed to
         have met such obligation if MERCK does not materially  deviate from the
         objectives, plans and timelines described in the Drug Development Plan.
         If MERCK  does  materially  deviate  from  the  objectives,  plans  and
         timelines  described in the Drug Development Plan, MERCK shall have the
         burden of demonstrating that, under the circumstances,  MERCK exercised
         Commercially Reasonable Efforts to develop the Product.

12.6.7   [***].

12.6.8   As used  in this  Section,  the  term  "Excluded  Claim"  shall  mean a
         dispute,  controversy  or  claim  that  concerns  (a) the  validity  or
         infringement of a patent, trademark or copyright; or (b) any antitrust,
         anti-monopoly  or  competition  law  or  regulation,   whether  or  not
         statutory.

12.7  ENTIRE  AGREEMENT;   AMENDMENTS.   This  Agreement   contains  the  entire
understanding of the Parties with respect to the  Collaboration and the licenses
granted hereunder.  Any other express or implied agreements and  understandings,
either oral or written, with regard to the Collaboration or the licenses granted
hereunder  (including but not limited to the Material  Transfer  Agreement dated
August 4, 2004) are  superseded by the terms of this  Agreement.  This Agreement
may be amended,  or any term hereof modified,  only by a written instrument duly
executed by authorized representatives of both Parties hereto.

12.8 HEADINGS.  The captions to the several Articles and Sections hereof are not
a part of this  Agreement,  but are merely for convenience to assist in locating
and reading the several Articles and Sections hereof.

12.9 INDEPENDENT CONTRACTORS. It is expressly agreed that DOV and MERCK shall be
independent  contractors and that the relationship between the Parties shall not
constitute a partnership,  joint venture or agency.  Neither DOV nor MERCK shall
have the authority to make any statements, representations or commitments of any
kind, or to take any action,  which shall be binding on the other Party, without
the prior written consent of the other Party.

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12.10 WAIVER.  The waiver by either Party hereto of any right  hereunder,  or of
any failure of the other Party to perform,  or of any breach by the other Party,
shall not be deemed a waiver of any other right hereunder or of any other breach
by or failure of such other Party, whether of a similar nature or otherwise.

12.11 CUMULATIVE  REMEDIES.  No remedy referred to in this Agreement is intended
to be  exclusive,  but each shall be  cumulative  and in  addition  to any other
remedy referred to in this Agreement or otherwise available under law.

12.12  WAIVER OF RULE OF  CONSTRUCTION.  Each Party has had the  opportunity  to
consult with counsel in connection with the review,  drafting and negotiation of
this Agreement. Accordingly, the rule of construction that any ambiguity in this
Agreement shall be construed against the drafting Party shall not apply.

12.13 COUNTERPARTS.  This Agreement may be executed in two or more counterparts,
each of which  shall be  deemed an  original,  but all of which  together  shall
constitute one and the same instrument.

                  [Remainder of page intentionally left blank.]

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      IN WITNESS  WHEREOF,  the Parties have executed  this  Agreement as of the
date first set forth above.

MSD WARWICK (MANUFACTURING) LTD.           DOV PHARMACEUTICAL, INC.

BY:      /s/ Kevin Latham                  BY:   /s/ Arnold S. Lippa
      -----------------------                   ----------------------
NAME:    Kevin Latham                      NAME:  Arnold S. Lippa

TITLE:   Vice President                    TITLE: Chief Executive Officer

DATE:    August 5, 2004                    DATE:  August 5, 2004

Merck  &  Co.,  Inc.  hereby  makes  the  following  limited  guarantees  of the
obligations of MSD Warwick (Manufacturing) Ltd. under this Agreement:  (1) Merck
& Co.,  Inc.  guarantees  payment by MSD  Warwick  (Manufacturing)  Ltd.  of its
payment obligations pursuant to this Agreement, for the duration of such payment
obligations  pursuant to this  Agreement;  (2) Merck & Co., Inc.  guarantees the
solvency of MSD Warwick (Manufacturing) Ltd. during the term of this Agreement.

MERCK & CO., INC.

By:      /s/ Judy C. Lewent
    --------------------------------
Name:    Judy C. Lewent
Title:   Executive VP & CFO,
         President Human Health Asia

/rsk

8/05/04

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                         SCHEDULE 1.28 DOV PATENT RIGHTS
                         -------------------------------

U.S. Pat. No. 6,372,919

U.S. Pat. No. 6,204,284

                              Schedule 1.28; Page 1

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                    SCHEDULE 1.57 MERCK TERMINATION KNOW-HOW
                    ----------------------------------------

***CONFIDENTIAL  TREATMENT HAS BEEN  REQUESTED FOR THIS ENTIRE  SCHEDULE,  WHICH
CONSISTS OF A TOTAL OF ONE PAGE.  A COMPLETE  VERSION OF THIS  SCHEDULE HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 [***]

                              Schedule 1.57; Page 1

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                       SCHEDULE 2.1 DRUG DEVELOPMENT PLAN

               PRELIMINARY PROPOSED DEVELOPMENT PROGRAM FOR [***]

***CONFIDENTIAL  TREATMENT HAS BEEN  REQUESTED FOR THIS ENTIRE  SCHEDULE,  WHICH
CONSISTS OF A TOTAL OF FIVE PAGES. A COMPLETE  VERSION OF THIS SCHEDULE HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 [***]

                              Schedule 2.1; Page 1

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                  SCHEDULE 3.7 CO-PROMOTION OF PRODUCTS BY DOV

***  CONFIDENTIAL  TREATMENT HAS BEEN REQUESTED AS TO THIS MATERIAL.  A COMPLETE
VERSION OF THIS  SCHEDULE  HAS BEEN FILED  SEPARATELY  WITH THE  SECURITIES  AND
EXCHANGE COMMISSION.

1. GENERAL:  This Schedule sets out the terms under which DOV may co-promote the
Product  by  Detailing  to  psychiatrists  and  neurologists,   subject  to  the
negotiation and execution of a definitive Co-Promotion Agreement.

2. CO-PROMOTION AGREEMENT.  Upon exercise by DOV of the Co-Promotion Option, and
pursuant to the  procedures  set forth in Section 3.7,  the Parties  shall enter
into an agreement  relating to the  Detailing of Products to Target  Prescribers
(the "Co-Promotion Agreement"). The Co-Promotion Agreement shall include but not
be limited to the following provisions:

      (a)   Recruitment and Training.  All DOV Specialty  Sales  Representatives
            shall be recruited by DOV at DOV's sole  expense.  MERCK will assist
            DOV in  establishing  skill and  experience  criteria for  Specialty
            Sales  Representatives who are Detailing to Target  Prescribers.  At
            the request of DOV, and at DOV's  expense,  MERCK will assist in the
            recruitment of the Specialty  Sales  Representatives.  DOV Specialty
            Sales  Representatives  will be available for training [***] ([***])
            months  prior to the Launch  Date and will be trained on the Product
            by MERCK, subject to the remaining provisions of this paragraph. DOV
            will be  responsible  for  expenses  including  but not  limited  to
            travel, lodging, meals and representative salary and benefits during
            the  training  period.  MERCK will be  responsible  for the costs of
            MERCK employees  providing the training,  the training  facility and
            training  materials.  The  training  will be carried  out at a MERCK
            training facility and will be equivalent to the training received by
            the  corresponding  MERCK  specialty sales force. A component of the
            training period includes training on selling skills which MERCK will
            provide to DOV Specialty Sales Representatives if DOV agrees.

      (b)   Launch Meeting: DOV Specialty Sales  Representatives will attend the
            same  launch  meeting as the  corresponding  MERCK  specialty  sales
            force.

      (c)   Position of Details:  MERCK shall  determine the Target  Prescribers
            and territory alignment for the Product.  Details to be delivered by
            DOV for the Product will be First Position  Details for the duration
            of the  Co-Promotion  Agreement  unless  otherwise  agreed to by the
            Parties.

      (d)   Content  of  Details.  The  form  and  content  of  all  information
            communicated in all Details or other  communications  to health care
            professionals  by DOV for the Product  shall be those  developed  by
            MERCK  at its sole  expense  and in use by the  corresponding  MERCK
            sales  force.  DOV will limit its claims of efficacy  and safety for
            the  Product to those which are  consistent  with  MERCK's  approved
            labeling for the product and shall  provide  appropriate  balance in
            all  communications  regarding  the  product.  DOV shall  Detail the
            Product in strict  adherence to all  applicable  legal,  regulatory,
            professional and policy requirements, including, but not limited to,
            all applicable MERCK policies that have been communicated to DOV, as
            they exist at the time of the Detail.

      (e)   Compensation.  Commencing on the Launch Date, MERCK shall compensate
            DOV,  commensurate  with  MERCK  standards,  for all costs  directly
            related to a Specialty  Sales  Representative  including  salary and
            benefits [***]. MERCK shall compensate DOV for

                              Schedule 3.7; Page 1

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***  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO THIS MATERIAL.

            100% of the cost of the Specialty Sales Representatives,  limited to
            those costs  described  above, if no other product is being Detailed
            by the DOV Specialty Sales  Representative.  If there is a non-MERCK
            product, in addition to the Product,  also being Detailed by the DOV
            Specialty Sales Representatives,  then MERCK will compensate DOV for
            a proportional share of a DOV Specialty Sales Representative's cost,
            based on activity related to the Product. If 100% of a DOV Specialty
            Sales Representative's  expenses are being paid by MERCK, then MERCK
            may at its discretion and at no additional  cost, add a second MERCK
            product to be Detailed by the DOV Specialty Sales Representative.

      (f)   Schedule  of  Payments.  Within  thirty (30) days of the end of each
            Calendar Quarter,  DOV shall submit to MERCK an invoice containing a
            schedule of Specialty Sales  Representative  activities and expenses
            for review and approval.  MERCK shall make the required  payments to
            DOV within sixty (60) days after the invoice is approved.

      (g)   Performance Criteria. The Parties shall agree on a minimum number of
            total  Details to be conducted by DOV each year for Product based on
            industry  standard  performance  expectations  of a Specialty  Sales
            Representative  (calls and Details per day).  Compensation to DOV as
            provided above will be subject to adjustment if the minimum level of
            such Details is not achieved.

      (h)   Sampling   and   Promotional   Materials.    DOV   Specialty   Sales
            Representatives  are  required  to use  only  promotional  materials
            provided  to  them  by  MERCK.   MERCK  shall  provide  samples  and
            promotional  material to DOV Specialty  Sales  Representatives  in a
            manner and  quantity  consistent  with its  provision of samples and
            promotional material to its own corresponding sales force.

      (i)   Maintenance and Audit of Records. Under the Co-Promotion  Agreement,
            DOV will be  responsible  for the  maintenance  of accurate  records
            corresponding  to the invoice of the expenses and  activities of its
            Specialty  Sales  Representatives  engaged in  Detailing  including,
            without  limitation,  an  accurate  monthly  record of the number of
            Details, by position. MERCK shall have the right to review and audit
            all such records.

      (j)   Exclusivity.  During the term of any Co-Promotion Agreement, neither
            DOV  nor  any  DOV   Affiliate   shall  use  any   Specialty   Sales
            Representatives  that are used for  Detailing  the Product to Detail
            any  other  non-MERCK  product  that  is  indicated  for  a  similar
            Indication as such Product.

      (k)   Term and Termination.  The term of the Co-Promotion  Agreement shall
            continue  until the last to expire  Valid Patent Claim in the United
            States,  or as long as MERCK  Details  such  Product  in the  United
            States,  whichever occurs later. The Co-Promotion Agreement shall be
            subject to termination:

            (i)   by MERCK in the event of a DOV Change of Control;

            (ii)  by MERCK at any  time,  if  evidence  that DOV is not  meeting
                  expected minimum Detail levels;

            (iii) by DOV at any time with at  least[***]  ([***])  months  prior
                  written notice;

            (iv)  by either Party immediately in the event of termination of the
                  Agreement,   or  upon  twelve  months   written   notice  upon
                  expiration of the Agreement;

                              Schedule 3.7; Page 2

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            (v)   by either Party in the event of an uncured  material breach by
                  the other Party, including, but not limited to, a violation by
                  DOV in promoting or  Detailing  the Product of any  applicable
                  law,  regulation  or  procedure  applicable  to the  sale  and
                  promotion of such a Product  including  any  applicable  MERCK
                  policy that was communicated to DOV; or;

            (vi)  by  either  Party  in  the  event  of  other  mutually  agreed
                  termination events as set forth in the Co-Promotion  Agreement
                  (breach, bankruptcy, etc.).

                              Schedule 3.7; Page 3Exhibit 4.1

    

APOLLO GOLD CORPORATION

 and  

 

as Trustee  

 

INDENTURE  

 Dated as of             
  

 Providing for the Issuance of

Debt Securities in Series  

   APOLLO GOLD CORPORATION

 RECONCILIATION AND TIE BETWEEN TRUST INDENTURE ACT OF 1939  

 AND INDENTURE PROVISIONS*  

	TRUST INDENTURE

ACT SECTION
	 	INDENTURE SECTION

	Section 310	 	(a)(1)	 	7.9
	 	 	(a)(2)	 	7.9
	 	 	(a)(3)	 	Not Applicable
	 	 	(a)(4)	 	Not Applicable
	 	 	(b)	 	7.8
	 	 	 	 	7.10
	

Section 311	
 	

(a)	
 	

7.13(a)
	 	 	 	 	7.13(c)
	 	 	(b)	 	7.13(b)
	 	 	(b)(2)	 	8.3(a)(2)
	 	 	 	 	8.3(b)
	

Section 312	
 	

(a)	
 	

8.1
	 	 	 	 	8.2(a)
	 	 	(b)	 	8.2(b)
	 	 	(c)	 	8.2(c)
	

Section 313	
 	

(a)	
 	

8.3(a)
	 	 	(b)	 	8.3(b)
	 	 	(c)	 	8.3(d)
	 	 	(d)	 	8.3(c)
	

Section 314	
 	

(a)	
 	

8.4
	 	 	(b)	 	Not Applicable
	 	 	(c)(1)	 	1.2
	 	 	(c)(2)	 	1.2
	 	 	(c)(3)	 	Not Applicable
	 	 	(d)	 	Not Applicable
	 	 	(e)	 	1.2
	

Section 315	
 	

(a)	
 	

7.1(a)
	 	 	(b)	 	7.2
	 	 	 	 	8.3(a)(6)
	 	 	(c)	 	7.1(b)
	 	 	(d)	 	7.1(c)
	 	 	(d)(1)	 	7.1(a)
	 	 	(d)(2)	 	7.1(c)(2)
	 	 	(d)(3)	 	7.1(c)(3)
	 	 	(e)	 	6.14
	

Section 316	
 	

(a)	
 	

1.1
	 	 	(a)(1)(A)	 	6.2
	 	 	 	 	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)	 	11.3
	

Section 318	
 	

(a)	
 	

1.7

	*
	This
reconciliation and tie shall not, for any purpose, be deemed to be a part of the Indenture. 

ii

   TABLE OF CONTENTS  

	 
	 
	 
	 	Page

	ARTICLE ONE    DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	 	1
	

 	

SECTION 1.1	

DEFINITIONS	
 	

1
	 	SECTION 1.2	COMPLIANCE CERTIFICATES AND OPINIONS	 	7
	 	SECTION 1.3	FORM OF DOCUMENTS DELIVERED TO TRUSTEE	 	8
	 	SECTION 1.4	ACTS OF HOLDERS	 	9
	 	SECTION 1.5	NOTICES, ETC., TO TRUSTEE AND COMPANY	 	10
	 	SECTION 1.6	NOTICE TO HOLDERS; WAIVER	 	11
	 	SECTION 1.7	CONFLICT WITH TRUST INDENTURE ACT	 	11
	 	SECTION 1.8	EFFECT OF HEADINGS AND TABLE OF CONTENTS	 	12
	 	SECTION 1.9	SUCCESSORS AND ASSIGNS	 	12
	 	SECTION 1.10	SEPARABILITY CLAUSE	 	12
	 	SECTION 1.11	BENEFITS OF INDENTURE	 	12
	 	SECTION 1.12	NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS, EMPLOYEES AND SHAREHOLDERS	 	12
	 	SECTION 1.13	GOVERNING LAW	 	12
	 	SECTION 1.14	LEGAL HOLIDAYS	 	12
	 	SECTION 1.15	MONEYS OF DIFFERENT CURRENCIES TO BE SEGREGATED	 	12
	 	SECTION 1.16	PAYMENT TO BE IN PROPER CURRENCY	 	13
	 	SECTION 1.17	LANGUAGE OF NOTICES, ETC	 	13
	 	SECTION 1.18	CHANGES IN EXHIBITS	 	13
	 	SECTION 1.19	COUNTERPART ORIGINALS	 	13
	
ARTICLE TWO    ISSUANCE OF SECURITIES 	
 	

13
	

 	

SECTION 2.1	

CREATION OF SECURITIES IN AMOUNT UNLIMITED	
 	

13
	 	SECTION 2.2	DOCUMENTS REQUIRED FOR ISSUANCE OF EACH SERIES OF SECURITIES OTHER THAN MEDIUM-TERM DEBT SECURITIES	 	14
	
ARTICLE THREE    ISSUANCE OF MEDIUM-TERM DEBT SECURITIES 	
 	

17
	

 	

SECTION 3.1	

DOCUMENTS REQUIRED FOR ISSUANCE OF EACH SERIES OF MEDIUM-TERM DEBT SECURITIES	
 	

17
	 	SECTION 3.2	FORM OF MEDIUM-TERM DEBT SECURITIES	 	21
	
ARTICLE FOUR    THE SECURITIES 	
 	

21
	

 	

SECTION 4.1	

FORM AND DENOMINATION	
 	

21
	 	SECTION 4.2	EXECUTION, DELIVERY, DATING AND AUTHENTICATION	 	21
	 	SECTION 4.3	TEMPORARY SECURITIES	 	23
	 	SECTION 4.4	REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE	 	24
	 	SECTION 4.5	MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES	 	27
	 	SECTION 4.6	PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED	 	27
	 	SECTION 4.7	PERSONS DEEMED OWNERS	 	28
	 	SECTION 4.8	CANCELLATION	 	29
	 	SECTION 4.9	COMPUTATION OF INTEREST	 	29
	 	SECTION 4.10	CURRENCY AND MANNER OF PAYMENT IN RESPECT OF SECURITIES	 	29
	 	SECTION 4.11	SECURITIES IN GLOBAL FORM	 	33
	 	SECTION 4.12	CUSIP, ISIN AND COMMON CODE NUMBERS	 	25
	 	 	 	 	 

iii

 

	
ARTICLE FIVE    SATISFACTION AND DISCHARGE 	
 	

35
	

 	

SECTION 5.1	

SATISFACTION AND DISCHARGE OF INDENTURE IN RESPECT OF ANY SERIES OF SECURITIES	
 	

35
	 	SECTION 5.2	APPLICATION OF TRUST MONEY	 	36
	 	SECTION 5.3	SATISFACTION, DISCHARGE AND DEFEASANCE OF SECURITIES OF ANY SERIES	 	36
	 	SECTION 5.4	REINSTATEMENT	 	38
	 	SECTION 5.5	DEFINITIONS	 	38
	
ARTICLE SIX    REMEDIES 	
 	

39
	

 	

SECTION 6.1	

EVENTS OF DEFAULT	
 	

39
	 	SECTION 6.2	ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT	 	40
	 	SECTION 6.3	COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE	 	41
	 	SECTION 6.4	TRUSTEE MAY FILE PROOFS OF CLAIM	 	41
	 	SECTION 6.5	TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES	 	42
	 	SECTION 6.6	APPLICATION OF MONEY COLLECTED	 	42
	 	SECTION 6.7	LIMITATION ON SUITS	 	43
	 	SECTION 6.8	UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL, PREMIUM AND INTEREST	 	43
	 	SECTION 6.9	RESTORATION OF RIGHTS AND REMEDIES	 	43
	 	SECTION 6.10	RIGHTS AND REMEDIES CUMULATIVE	 	43
	 	SECTION 6.11	DELAY OR OMISSION NOT WAIVER	 	44
	 	SECTION 6.12	CONTROL BY HOLDERS	 	44
	 	SECTION 6.13	WAIVER OF PAST DEFAULTS	 	44
	 	SECTION 6.14	UNDERTAKING FOR COSTS	 	44
	 	SECTION 6.15	WAIVER OF USURY, STAY OR EXTENSION LAWS	 	45
	
ARTICLE SEVEN    THE TRUSTEE 	
 	

45
	

 	

SECTION 7.1	

CERTAIN DUTIES AND RESPONSIBILITIES	
 	

45
	 	SECTION 7.2	NOTICE OF DEFAULTS	 	46
	 	SECTION 7.3	CERTAIN RIGHTS OF TRUSTEE	 	46
	 	SECTION 7.4	NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES	 	47
	 	SECTION 7.5	MAY HOLD SECURITIES	 	47
	 	SECTION 7.6	MONEY HELD IN TRUST	 	47
	 	SECTION 7.7	COMPENSATION AND REIMBURSEMENT	 	47
	 	SECTION 7.8	DISQUALIFICATION; CONFLICTING INTERESTS	 	48
	 	SECTION 7.9	CORPORATE TRUSTEE REQUIRED; ELIGIBILITY	 	48
	 	SECTION 7.10	RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR	 	49
	 	SECTION 7.11	ACCEPTANCE OF APPOINTMENT BY SUCCESSOR	 	50
	 	SECTION 7.12	MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS	 	51
	 	SECTION 7.13	PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY	 	51
	 	SECTION 7.14	JUDGMENT CURRENCY	 	51
	 	SECTION 7.15	APPOINTMENT OF AUTHENTICATING AGENT	 	52
	 	 	 	 	 

iv

 

	
ARTICLE EIGHT    HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY 	
 	

54
	

 	

SECTION 8.1	

COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF HOLDERS	
 	

54
	 	SECTION 8.2	PRESERVATION OF INFORMATION; COMMUNICATIONS TO HOLDERS	 	54
	 	SECTION 8.3	REPORTS BY TRUSTEE	 	54
	 	SECTION 8.4	REPORTS BY COMPANY	 	55
	
ARTICLE NINE    CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER 	
 	

55
	

 	

SECTION 9.1	

COMPANY MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS	
 	

55
	 	SECTION 9.2	SUCCESSOR PERSON SUBSTITUTED	 	56
	
ARTICLE TEN    SUPPLEMENTAL INDENTURES 	
 	

56
	

 	

SECTION 10.1	

SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS	
 	

56
	 	SECTION 10.2	SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS	 	57
	 	SECTION 10.3	EXECUTION OF SUPPLEMENTAL INDENTURES	 	58
	 	SECTION 10.4	EFFECT OF SUPPLEMENTAL INDENTURES	 	58
	 	SECTION 10.5	CONFORMITY WITH TRUST INDENTURE ACT	 	59
	 	SECTION 10.6	REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES	 	59
	
ARTICLE ELEVEN    COVENANTS 	
 	

59
	

 	

SECTION 11.1	

PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST	
 	

59
	 	SECTION 11.2	MAINTENANCE OF OFFICE OR AGENCY	 	59
	 	SECTION 11.3	MONEY FOR SECURITIES PAYMENTS TO BE HELD IN TRUST	 	60
	 	SECTION 11.4	STATEMENT BY OFFICERS AS TO DEFAULT	 	61
	 	SECTION 11.5	ADDITIONAL AMOUNTS	 	61
	
ARTICLE TWELVE    REDEMPTION OF SECURITIES 	
 	

62
	

 	

SECTION 12.1	

APPLICABILITY OF ARTICLE	
 	

62
	 	SECTION 12.2	ELECTION TO REDEEM; NOTICE TO TRUSTEE	 	62
	 	SECTION 12.3	SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED	 	63
	 	SECTION 12.4	NOTICE OF REDEMPTION	 	63
	 	SECTION 12.5	DEPOSIT OF REDEMPTION PRICE	 	64
	 	SECTION 12.6	SECURITIES PAYABLE ON REDEMPTION DATE	 	64
	 	SECTION 12.7	SECURITIES REDEEMED IN PART	 	65
	
ARTICLE THIRTEEN    SINKING FUNDS 	
 	

65
	

 	

SECTION 13.1	

APPLICABILITY OF ARTICLE	
 	

65
	 	SECTION 13.2	SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES	 	65
	 	SECTION 13.3	REDEMPTION OF SECURITIES FOR SINKING FUND	 	65
	 	 	 	 	 

v

 

	
ARTICLE FOURTEEN    MEETINGS OF HOLDERS OF SECURITIES 	
 	

66
	

 	

SECTION 14.1	

PURPOSES FOR WHICH MEETINGS MAY BE CALLED	
 	

66
	 	SECTION 14.2	CALL, NOTICE AND PLACE OF MEETINGS	 	66
	 	SECTION 14.3	PERSONS ENTITLED TO VOTE AT MEETINGS	 	66
	 	SECTION 14.4	QUORUM; ACTION	 	66
	 	SECTION 14.5	DETERMINATION OF VOTING RIGHTS; CONDUCT AND ADJOURNMENT OF MEETINGS	 	67
	 	SECTION 14.6	COUNTING VOTES AND RECORDING ACTION OF MEETINGS	 	68

	
EXHIBIT A	

[Reserved]	
 	

 
	
EXHIBIT B.1	

Form of Certificate to be given by Person entitled to receive Bearer Security	
 	

 
	
EXHIBIT B.2	

Form of Certificate to be given by Euroclear and CEDEL in connection with the Exchange of a portion of Temporary Global Security.	
 	

 
	
EXHIBIT B.3	

Form of Certificate to be given by Euroclear and CEDEL to obtain Interest prior to an Exchange Date	
 	

 
	
EXHIBIT B.4	

Form of Certificate to be given by Beneficial Owners to obtain Interest prior to an Exchange Date	
 	

 
	
EXHIBIT B.5	

Form of Confirmation to be Sent to Purchasers of Bearer Securities	
 	

 

vi

  

        INDENTURE dated
    as of            ,    ,
    between APOLLO GOLD CORPORATION, a corporation duly organized and existing
    under the laws of the Yukon Teritory(herein called the "Company"), having
    its registered office at 4601 DTC Blvd., Suite 750 Denver Colorado 80237,
    and                        ,
    as Trustee (herein called the "Trustee"), the office of the Trustee at which
    at the date hereof its corporate trust business is principally administered
    being . 

RECITALS OF THE COMPANY  

        The Company has duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of its debentures, notes or other
evidences of indebtedness (herein called the "Securities"), to be issued in one or more series as in this Indenture provided. 

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

        NOW,
THEREFORE, THIS INDENTURE WITNESSETH: 

        For
and in consideration of the premises and the purchase of the Securities by the Holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Securities or of series thereof, as follows: 

ARTICLE ONE  

 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION  

        SECTION
1.1    DEFINITIONS    

        For
all purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise requires: 

        (a)   the
terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular; 

        (b)   all
other terms used herein which are defined in the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them therein; 

        (c)   all
accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles, and, except as
otherwise herein expressly provided, the term "generally accepted accounting principles" with respect to any computation required or permitted hereunder shall mean such accounting principles as are
generally accepted in the United States of America at the date of such computation; 

        (d)   the
words "herein," "hereof" and "hereunder" and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other
subdivision; and 

        (e)   the
principal amount of any non-interest bearing or other discount security at any date shall be the principal amount thereof that would be shown on a
balance sheet of the issuer dated such date prepared in accordance with generally accepted accounting principles. 

        Certain
terms, used principally within an Article of this Indenture, may be defined in that Article. 

        "Act,"
when used with respect to any Holder, has the meaning specified in Section 1.4. 

        "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" when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of 

1

 

voting
securities, by contract or otherwise; and the terms "controlling" and "controlled" have meanings correlative to the foregoing. 

        "Authenticating
Agent" means any Person authorized by the Trustee pursuant to Section 7.15 to act on behalf of the Trustee to authenticate Securities of one or more series. 

        "Authorized
Newspaper" means a newspaper of general circulation in the place of publication, printed in the official language of the country of publication and customarily published on
each Business Day, whether or not published on Saturdays, Sundays or holidays. Whenever successive weekly publications in an Authorized Newspaper are authorized or required hereunder, they may be made
(unless otherwise expressly provided herein) on the same or different days of the week and in the same or different Authorized Newspapers. 

        "Bearer
Security" means any Security which is not registered in the Security Register as to both principal and interest (including without limitation any Security in temporary or
definitive global bearer form). 

        "Board
of Directors" means either the board of directors of the Company, any executive officer of the Company duly authorized to act in the name of or on behalf of such board of
directors or any committee consisting of two or more persons, who need not be directors, duly authorized to act in the name of or on behalf of such board. 

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

        "Business
Day," when used with respect to any Place of Payment or place of publication, means each day on which commercial banks and foreign exchange markets settle payments in the Place
of Payment or place of publication, or as specified for a series of Securities pursuant to Section 2.2 or Section 3.1, as the case may be. Unless otherwise specified pursuant to
Section 2.2 or Section 3.1, as the case may be, when used with respect to Securities bearing interest at a rate or rates determined by reference to
London interbank offered rates for deposits in U.S. Dollars, "Business Day" shall exclude any day on which commercial banks and foreign exchange markets do not settle payments in London. 

        "Commission"
means the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act or, if at any time after the execution of this instrument such
Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time. 

        "Company"
means the Person named as the "Company" in the first paragraph of this instrument until a successor Person shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter "Company" shall mean such successor Person. 

        "Company
Request," "Request of the Company," "Company Order" or "Order of the Company" means a written request or order signed in the name of the Company by its Chairman of the Board,
its Chief Executive Officer, its Chief Operating Officer, President, a Vice President or any person acting in a similar capacity, and by its Treasurer, an Assistant Treasurer, its Controller, an
Assistant Controller, its Chief Financial Officer, its Chief Accounting Officer, Secretary, an Assistant Secretary or any person acting in a similar capacity, and delivered to the Trustee. 

        "Component
Currency" has the meaning specified in Section 4.10(i). 

        "Conversion
Date" has the meaning specified in Section 4.10(e). 

        "Conversion
Rate" has the meaning specified in Section 7.14. 

2

 

        "Corporate
Trust Office" means the principal office of the Trustee in            , at which at any particular time its corporate trust business shall be principally administered,
which office at the date hereof is                        , except that with respect to the presentation of Securities (or Coupons,
 if any, representing an installment of interest) for payment or for
registration of transfer and exchange, such term shall mean the office or the agency of the Trustee in said city at which at any particular time its corporate agency business shall be conducted. 

        "Corporation"
includes corporations, associations, companies, limited liability companies, partnerships and business trusts. 

        "Coupon"
or "coupon" means any interest coupon appertaining to a Bearer Security. 

        "Defaulted
Interest" has the meaning specified in Section 4.6. 

        "Depositary"
means, unless otherwise specified by the Company pursuant to either Section 2.2 or 3.1, with respect to Securities of any series issuable or issued as a Global
Security,                        or any successor thereto registered as a clearing agency under the Exchange Act or other
applicable statute or regulation. 

        "Discharged"
has the meaning specified in Section 5.5. 

        "Dollar,"
"U.S. Dollar" or "$" means the coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts. 

        "Dollar
Equivalent of the Currency Unit" has the meaning specified in Section 4.10(h). 

        "Dollar
Equivalent of the Foreign Currency" has the meaning specified in Section 4.10(g). 

        "ECU"
means the European Currency Unit as defined and revised from time to time by the Council of the European Communities. 

        "Euroclear"
means the operator of the Euroclear System. 

        "European
Communities" means the European Economic Community, the European Coal and Steel Community and the European Atomic Energy Community. 

        "Event
of Default" has the meaning specified in Section 6.1. 

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

        "Exchange
Rate Agent" means the entity appointed by the Company pursuant to Section 1.4(g). Unless otherwise specified as contemplated by Section 2.2 or Section 3.1,
as the case may be, the Luxembourg Stock Exchange shall act as Exchange Rate Agent for purposes of Section 4.10 in the case of each series of Securities listed on the Luxembourg Stock Exchange. 

        "Exchange
Rate Officers' Certificate" means a telecopy or tested telex or a certificate setting forth (1) the applicable Official Currency Unit Exchange Rate and (2) the
Dollar or Foreign Currency or currency unit amounts of principal, premium, if any, and interest, if any, respectively (on an aggregate basis and on the basis of a Security having a principal amount of
1,000 units in the relevant currency or currency unit), payable on the basis of such Official Currency Unit Exchange Rate, sent (in the case of a telecopy or telex) or executed (in the case of a
certificate) by the Chairman, Controller or any Assistant Controller or by the Treasurer or any Assistant Treasurer of the Company or any person acting in a similar capacity and delivered to the
Trustee; such telecopy, tested telex or certificate need not comply with Section 1.2. 

        "Foreign
Currency" means any currency, including, without limitation, the ECU, issued by the government of one or more countries other than the United States of America or by a
recognized confederation or association of such governments. 

3

 

        "Foreign
Government Securities" has the meaning specified in Section 5.5. 

        "Funded
Debt" means any Indebtedness maturing by its terms more than one year from the date of the issuance thereof, including any Indebtedness renewable or extendible at the option of
the obligor to a date later than one year from the date of the original issuance thereof. 

        "Global
Security" means with respect to any series of Securities issued hereunder, a Security which is executed by the Company and authenticated and delivered by the Trustee to the
Depositary or pursuant to the Depositary's instruction, all in accordance with this Indenture and an indenture supplemental hereto, if any, or Board Resolution and pursuant to a Company Request, which
shall be registered in the name of the Depositary or its nominee and which shall represent, and shall be denominated in an amount equal to the aggregate principal amount of all of the Outstanding
Securities of such series or any portion thereof, in either case having the same terms, including, without limitation, the same original issue date, date or dates on which principal is due, and
interest rate or method of determining interest. 

        "Holder"
or "holder" means, with respect to a Registered Security, the Person in whose name at the time a particular Registered Security is registered in the Security Register and, with
respect to a Bearer Security and/or a Coupon, the bearer thereof. 

        "Indebtedness"
of any Person means all indebtedness representing money borrowed which is created, assumed, incurred or guaranteed in any manner by such Person or for which such Person is
otherwise responsible or liable (whether by agreement to purchase indebtedness of, or to supply funds to or invest in, others). 

        "Indenture"
means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to
the applicable provisions hereof and shall include the terms of particular series of Securities established as contemplated by Section 2.2 and Section 3.1, as the case may be. 

        "Interest,"
when used with respect to an Original Issue Discount Security which by its terms bears interest only after Maturity, means interest payable after Maturity. 

        "Interest
Payment Date," when used with respect to any Security, means the Stated Maturity of an installment of interest on such Security. 

        "Issue
Date" means, with respect to any Securities of a series, the date on which such Securities are authenticated and delivered pursuant to this Indenture. 

        "Market
Exchange Rate" has the meaning specified in Section 4.10(i). 

        "Maturity,"
when used with respect to any Security, means the date on which the principal of such Security or an 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 or otherwise. 

        "Medium-Term
Debt Securities" has the meaning specified in Section 3.1. 

        "Medium-Term
Debt Securities Certificate" shall mean a certificate signed by the Chairman of the Board, the Chief Executive Officer, the Chief Operating Officer, the
President, any Vice President or any person acting in a similar capacity, the Chief Financial Officer, the Chief Accounting Officer, the Treasurer, the Controller, any Secretary or Assistant
Treasurer, Assistant
Controller or Assistant Secretary of the Company, or any person acting in a similar capacity or any other employee of the Company designated by a Board Resolution as having the authority to deliver a
Medium-Term Debt Securities Certificate hereunder. 

        "Officers'
Certificate" means a certificate signed by the Chairman of the Board, the Chief Executive Officer, the Chief Operating Officer, the President, any Vice President or any person
acting 

4

 

in
a similar capacity, and by the Chief Financial Officer, the Chief Accounting Officer, the Treasurer, the Controller, the Secretary or any Assistant Treasurer, Assistant Controller, Assistant
Secretary or any person acting in a similar capacity, of the Company, and delivered to the Trustee. Each such Officers' Certificate shall contain the statements provided in Section 1.2 if and
to the extent required by the provisions of such Section. 

        "Official
Currency Unit Exchange Rate" means, with respect to any payment to be made hereunder, the exchange rate between the relevant currency unit and the currency or currency unit of
payment calculated by the Exchange Rate Agent for the Securities of the relevant series (in the case of ECU, reported by the Commission of the European Communities and on the date hereof based on the
rates in effect at 2:30 p.m., Brussels time, on the exchange markets of the Component Currencies of ECU), on the Business Day (in the city in which such Exchange Rate Agent has its principal
office) immediately preceding delivery of any Exchange Rate Officers' Certificate. 

        "Opinion
of Counsel" means a written opinion of counsel, who may be counsel for or an employee of the Company. Each Opinion of Counsel shall contain the statements provided in
Section 1.2 if and to the extent required by the provisions of such Section. 

        "Original
Issue Discount Security" means (1) any Security which provides for an amount less than the principal amount thereof to be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 6.2, and (2) any other security deemed an Original Issue Discount Security for United States Federal income tax purposes. 

        "Outstanding"
or "outstanding," when used with respect to Securities, means, as of the date of determination, all Securities theretofore authenticated and delivered under this Indenture,
except: 

        (1)   Securities
theretofore canceled by the Trustee or delivered or deemed delivered to the Trustee for cancellation; 

        (2)   Securities
for whose payment or redemption money in thenecessary amount and in the required currency or currency unit hasbeen theretofore deposited with the Trustee or
any Paying Agent (otherthan the Company) in trust or set aside and segregated in trust by theCompany (if the Company shall act as its own Paying Agent) for the Holders of such Securities; PROVIDED
that, if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made; and 

        (3)   Securities
which have been paid pursuant to Section 4.5 orin exchange for or in lieu of which other Securities have beenauthenticated anddelivered pursuant to
this Indenture, other than any such Securities in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Securities are held by a bona fide purchaser in
whose hands such Securities are valid obligations of the Company; 

        PROVIDED,
HOWEVER, that in determining whether the Holders of the requisite principal amount of the Outstanding Securities have given any request, demand, authorization, direction,
notice, consent or waiver hereunder or whether a quorum is present at a meeting of Holders of Outstanding Securities or the number of votes entitled to be cast by each Holder of a Security in respect
of such Security at any such meeting, (1) the principal amount of an Original Issue 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, (2) the principal
amount of a Security denominated in a Foreign Currency or currency unit shall be the Dollar equivalent obtained by converting the specified Foreign Currency or currency unit into Dollars at the Market
Exchange Rate on the date of such determination (or, in the case of a Security denominated in a currency unit for which there is no Market Exchange Rate, the Dollar equivalent obtained by adding
together the results obtained by converting the Specified Amount of each Component Currency into Dollars at the Market Exchange 

5

 

Rate
for each such Component Currency on the date of such determination) of the principal amount (or, in the case of an Original Issue Discount Security, of the amount determined as provided in
(1) above) of such Security, and (3) Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or
waiver, only Securities which the Trustee knows to be so owned shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee's right so to act with respect to such Securities and that the pledgee is not the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor. 

        "Paying
Agent" means the Trustee or any other Person authorized by the Company to pay the principal of (and premium, if any) or interest, if any, on any Securities on behalf of the
Company. 

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

        "Place
of Payment," when used with respect to the Securities of any series, means the place or places where the principal of (and premium, if any) and interest, if any, on the Securities
of that series are payable as specified in accordance with Section 2.2 or Section 3.1, as the case may be. 

        "Predecessor
Security" of any particular Security means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security; and, for the
purposes of this definition, any Security authenticated and delivered under Section 4.5 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence
the same debt as the mutilated, destroyed, lost or stolen Security. 

        "Redemption
Date," when used with respect to any Security to be redeemed, means the date fixed for such redemption by or pursuant to this Indenture. 

        "Redemption
Price," when used with respect to any Security to be redeemed, means the price, in the currency or currency unit in which such Security is payable, at which it is to be
redeemed pursuant to this Indenture. 

        "Registered
Security" means any Security registered in the Security Register (including without limitation any Security in temporary or definitive global registered form). 

        "Regular
Record Date" for the interest payable on any Interest Payment Date on the Registered Securities of any series means the date specified for that purpose as contemplated by
Section 2.2 or Section 3.1, as the case may be, which date shall be, unless otherwise specified pursuant to Section 2.2 or Section 3.1, as the case may be, the fifteenth
day preceding such Interest Payment Date, whether or not such day shall be a Business Day. 

        "Required
Currency" has the meaning specified in Section 1.16. 

        "Responsible
Trust Officer," when used with respect to the Trustee, means the chairman or any vice chairman of the board of directors, the chairman or any vice chairman of the executive
committee of the board of directors, the chairman of the trust committee, the president, any vice president, any assistant vice president, the secretary, any assistant secretary, the treasurer, any
assistant treasurer, the cashier, any assistant cashier, any trust officer or assistant trust officer, the controller or any assistant controller or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is
referred because of his knowledge of and familiarity with the particular subject. 

6

 

        "Securities"
has the meaning stated in the first recital of this Indenture and more particularly means any Securities (including Medium-Term Debt Securities) authenticated
and delivered under this Indenture and, in the case of any Bearer Security, shall include where appropriate any Coupons appertaining thereto. 

        "Security
Register" has the meaning specified in Section 4.4. 

        "Security
Registrar" means the Person appointed as the initial Security Registrar in Section 4.4 or any Person appointed by the Company as a successor or replacement Security
Registrar. 

        "Special
Record Date" for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 4.6. 

        "Specified
Amount" has the meaning specified in Section 4.10(i). 

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

        "Subsidiary"
means any Corporation a majority of the Voting Shares of which are at the time owned or controlled, directly or indirectly, by the Company or by one or more Subsidiaries, or
by the Company and one or more Subsidiaries. 

        "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. 

        "Trust
Indenture Act" means the Trust Indenture Act of 1939, as amended by the Trust Indenture Reform Act of 1990, and as in force on the date as of which this instrument is executed,
except as provided in Section 10.5. 

        "United
States" means the United States of America (including the states and the District of Columbia), its territories, its possessions and other areas subject to its jurisdiction. 

        "U.S.
Government Obligations" has the meaning specified in Section 5.5. 

        "Valuation
Date" has the meaning specified in Section 4.10(e). 

        "Vice
President," when used with respect to the Company or the Trustee, means any vice president, whether or not designated by a number or a word or words added before or after the title
"vice president," including, without limitation, any assistant vice president. 

        "Voting
Shares" means, with respect to any Corporation, securities of any class or classes of capital stock in such Corporation entitling the holders thereof (whether at all times or at
the times that such class of capital stock has voting power by reason of the happening of any contingency) to vote in the election of members or the board of directors of comparable body of such
Corporation. 

        "Yield
to Maturity" means the yield to maturity, calculated at the time of issuance of a series of Securities or, if applicable, at the most recent redetermination of interest on such
series and calculated in accordance with accepted financial practice. 

        SECTION
1.2    COMPLIANCE CERTIFICATES AND OPINIONS    

        Upon
any application or request by the Company to the Trustee to take any action under any provision of this Indenture, the Company shall furnish to the Trustee an Officers' Certificate
stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have 

7

 

been
complied with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with, except that in the case of any such application
or request as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate or
opinion need be furnished. 

        Unless
expressly otherwise specified with respect to any certificate or opinion provided for in this Indenture, every certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture (other than annual certificates provided pursuant to Section 11.4) shall include: 

        (1)   a
statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions herein relating thereto; 

        (2)   a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are
based; 

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

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

        SECTION
1.3    FORM OF DOCUMENTS DELIVERED TO TRUSTEE    

        In
any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or
covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. Any certificate or opinion of an officer of the
Company may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to the matters upon which such certificate or opinion is based are erroneous. Any such certificate or Opinion of Counsel may be based, insofar as
it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the Company stating that the information with respect to such factual matters is in
the possession of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are
erroneous. 

        Where
any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they
may, but need not, be consolidated and form one instrument. 

8

   
        SECTION 1.4    ACTS OF HOLDERS    

        (a)   Any
request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders of Securities of any
series may be embodied in and evidenced by (1) one or more instruments of substantially similar tenor signed by such Holders in person or by proxies or agents duly appointed in writing,
(2) the record of such Holders voting in favor thereof, either in person or by proxies or agents duly appointed in writing, at any meeting of Holders of Securities of such series duly called
and held in accordance with the provisions of Article Fourteen, or (3) a combination of any such record and one or more instruments of substantially similar tenor signed by such Holders in
person or by proxies or agents duly appointed in writing. Except as herein otherwise expressly provided, such action shall become effective when such record and/or instrument or instruments are
delivered to the Trustee and, where it is hereby expressly required, to the Company. Such record or instrument or instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the "Act" of the Holders signing such instrument or instruments or so voting at any such meeting. Proof of execution of any such instrument or of a writing appointing any such
proxy or agents shall be sufficient for any purpose of this Indenture and (subject to Section 7.1) conclusive in favor of the Trustee and the Company, if made in the manner provided in this
Section. The record of any meeting of Holders of Securities shall be proved in the manner provided in Section 14.6. 

        (b)   The
fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution or by a certificate of a
notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to him the execution thereof. Where
such execution is by a signer acting in a capacity other than his individual capacity, such certificate or affidavit shall also constitute sufficient proof of his authority. 

        (c)   The
principal amount and serial numbers of Bearer Securities held by any Person, and the date of holding the same, may be proved by the production of such Bearer
Securities or by a certificate executed by any trust company, bank, banker or other depository, wherever situated, showing that at the date therein mentioned such Person had on deposit with such
depository, or exhibited to it, the Bearer Securities therein described; or such facts may be proved by the certificate or affidavit of the Person holding such Bearer Securities, if such certificate
or affidavit is deemed by the Trustee to be satisfactory. The Trustee and the Company may assume that such ownership of any Bearer Security continues until (1) another certificate or affidavit
bearing a later date issued in respect of the same Bearer Security is produced, (2) such Bearer Security is produced to the Trustee by some other Person, (3) such Bearer Security is
surrendered in exchange for a Registered Security, or (4) such Bearer Security is no longer Outstanding. 

        (d)   The
fact and date of execution of any such instrument or writing pursuant to Subsection (c) above, the authority of the Person executing the same and the
principal amount and serial numbers of Bearer Securities held by the Person so executing such instrument or writing and the date of holding the same may also be proved in any other manner which the
Trustee deems sufficient; and the Trustee may in any instance require further proof with respect to any of the matters referred to in this Clause. 

        (e)   The
principal amount and serial numbers of Registered Securities held by any Person and the date of holding the same shall be proved by the Security Register. 

        (f)    Any
request, demand, authorization, direction, notice, consent, waiver or other Act of a Holder shall bind every future Holder of the same Security and/or Coupon and the
Holder of every Security and/or Coupon issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the
Trustee or the Company in reliance thereon, whether or not notation of such action is made upon such Security and/or Coupon. 

9

 

        (g)   Whenever
any Act is to be taken hereunder by the Holders of two or more series of Securities denominated in different currencies (or currency units), then, for the
purpose of determining the principal amount of Securities held by such Holders, the aggregate principal amount of the Securities denominated in a Foreign Currency (or any currency unit) shall be
deemed to be that amount determined by the Company or by an authorized Exchange Rate Agent and evidenced to the Trustee by an Officers' Certificate as of the date of the taking of such Act by the
Holders of the requisite percentage in principal amount of the Securities is evidenced to the Trustee to be equal to the Dollar equivalent obtained by converting the specified Foreign Currency or
currency unit into Dollars at the Market Exchange Rate on such date (or, in the case of a Security denominated in a currency unit for which there is no Market Exchange Rate, the Dollar equivalent
obtained by adding together the results obtained by converting the Specified Amount of each Component Currency into Dollars at the Market Exchange Rate for each such Component Currency on such date)
of the principal amount (or, in the case of an Original Issue Discount Security, the principal amount thereof that would be due and payable as of the declaration of acceleration of the Maturity
thereof pursuant to Section 6.2) of such Security. An Exchange Rate Agent may be authorized in advance or from time to time by the Company. Any such determination by the Company or by any such
Exchange Rate Agent shall be conclusive and binding on all Holders, the Company and the Trustee, and neither the Company nor any such Exchange Rate Agent shall be liable therefor in the absence of bad
faith. 

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

        SECTION
1.5    NOTICES, ETC., TO TRUSTEE AND COMPANY    

        Any
request, demand, authorization, direction, notice, consent, waiver or other Act of Holders or other document provided or permitted by this Indenture to be made upon, given or
furnished to, or filed with, 

        (1)   the
Trustee by any Holder or by the Company shall be made, given, furnished or filed in writing to or with the Trustee at its Corporate Trust Office and unless otherwise
herein expressly provided, any such document shall be deemed to be sufficiently made, given, furnished or filed upon its receipt by a Responsible Trust Officer of the Trustee, or 

        (2)   the
Company by the Trustee or by any Holder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing and delivered in
person, mailed, first-class postage prepaid, or sent by overnight courier or, until such time as the Company shall have notified the Trustee in writing that it shall no longer accept delivery of
notice by telecopy or given by telecopy to the Company addressed to it at the address of its registered office specified in the first paragraph of this instrument or at any other address previously
furnished in writing to the Trustee by the Company, or at its telecopy number from time to time furnished in writing to the Trustee expressly for purposes of this Indenture, Attention: Secretary. 

10

 

        SECTION
1.6    NOTICE TO HOLDERS; WAIVER    

        (a)   Where
this Indenture provides for notice to Holders of any event: 

        (1)   if
any of the Securities affected by such event are Registered Securities, such notice shall be sufficiently given (unless otherwise herein expressly provided or unless
otherwise specified in such Securities) if in writing and mailed, first-class postage prepaid, delivered in person, or sent by overnight courier, to each Holder affected by such event, at such
Holder's address as it appears in the Security Register, within the time prescribed for the giving of such notice, and 

        (2)   if
any of the Securities affected by such event are Bearer Securities, such notice shall be sufficiently given (unless otherwise herein expressly provided or unless
otherwise specified in such Securities) if (i) published once in an Authorized Newspaper in New York City and London and, if applicable, in Luxembourg or such other place of publication as may
be required pursuant to the rules and regulations of any securities exchange on which such Securities are listed, and (ii) mailed, first-class postage prepaid, delivered in person or sent by
overnight courier to such Persons whose names were previously filed with the Trustee, within the time prescribed for the giving of such notice. 

        In
case by reason of the suspension of regular mail service or by reason of any other cause it shall be impracticable to give such notice to Holders of Registered Securities in the
manner specified above, then such notification as shall be made with the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder. In case by reason of the
suspension of publication of any Authorized Newspaper or Authorized Newspapers or by reason of any other cause it shall be impracticable to publish any notice to Holders of Bearer Securities as
provided above, then such notification to Holders of Bearer Securities as shall be given with the approval of the Trustee shall constitute sufficient notice to such Holders for every purpose
hereunder. 

        (b)   In
any case where notice to a Holder of Registered Securities is given in any manner specified in Subsection (a) above, such notice shall be conclusively presumed
to have been duly given, whether or not such Holder receives such notice. In any case where notice to Holders of Registered Securities is given in any manner specified in Subsection (a) above,
neither the failure to deliver, mail or send such notice, nor any defect in any notice so mailed or sent, to any particular Holder of a Registered Security shall affect the sufficiency of such notice
with respect to other Holders of Registered Securities or the sufficiency of any notice to Holders of Bearer Securities given as provided herein. Neither the failure to give notice by publication to
Holders of Bearer Securities as provided in Subsection (a) above, nor any defect in any notice so published, shall affect the sufficiency of any notice to Holders of Registered Securities given
as provided herein. 

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

        SECTION
1.7    CONFLICT WITH TRUST INDENTURE ACT    

        If
any provision hereof limits, qualifies or conflicts with the duties imposed by any of Sections 310 to 317, inclusive, of the Trust Indenture Act through operation of
Section 318(c) thereof, such imposed duties shall control. If any provision of this Indenture modifies or excludes any provision of the Trust Indenture Act that may be so modified or excluded,
the latter provision shall be deemed to apply to this Indenture as so modified or excluded, as the case may be. 

11

 

        SECTION
1.8    EFFECT OF HEADINGS AND TABLE OF CONTENTS    

        The
Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 

        SECTION
1.9    SUCCESSORS AND ASSIGNS    

        All
covenants and agreements in this Indenture by the Company shall bind its successors and assigns, whether so expressed or not. 

        SECTION
1.10    SEPARABILITY CLAUSE    

        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
1.11    BENEFITS OF INDENTURE    

        Nothing
in this Indenture or in the Securities or Coupons, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder and the Holders, any
benefit or any legal or equitable right, remedy or claim under this Indenture. 

        SECTION
1.12    NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS, EMPLOYEES AND SHAREHOLDERS    

        No
director, officer, employee, incorporator or shareholder of the Company, as such, shall have any liability for any obligations of the Company under the Securities, this Indenture, or
for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder by accepting Securities waives and releases all such liability. The waiver and release are part
of the consideration for issuance of the Securities. 

        SECTION
1.13    GOVERNING LAW    

        THIS
INDENTURE AND THE SECURITIES AND COUPONS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPALS
THEREOF. 

        SECTION
1.14    LEGAL HOLIDAYS    

        Except
as otherwise specified as contemplated by Section 2.2 or Section 3.1, as the case may be, in any case where any Interest Payment Date, Redemption Date or Stated
Maturity of any Security or Coupon shall not be a Business Day at any Place of Payment, then (notwithstanding any other provision of this Indenture or of such Security or Coupon) payment of interest
or principal (and premium, if any) need not be made at such Place of Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment with the same force and effect
as if made on the Interest Payment Date or Redemption Date, or at the Stated Maturity, as the case may be, PROVIDED that no interest shall accrue for the period from and after such Interest Payment
Date, Redemption Date or Stated Maturity, as the case may be, to the next succeeding Business Day at such Place of Payment. 

        SECTION
1.15    MONEYS OF DIFFERENT CURRENCIES TO BE SEGREGATED    

        The
Trustee shall segregate moneys, funds and accounts held by the Trustee hereunder in one currency (or currency unit) from any moneys, funds or accounts in any other currencies (or
currency units), notwithstanding any provision herein which would otherwise permit the Trustee to commingle such amounts. 

12

 

        SECTION
1.16    PAYMENT TO BE IN PROPER CURRENCY    

        In
the case of any Security denominated in any particular currency or currency unit (the "Required Currency"), subject to applicable law and except as otherwise provided herein, therein
or in or pursuant to the related Board Resolution, Medium-Term Debt Securities Certificate or supplemental indenture, the obligation of the Company to make any payment of principal,
premium or interest thereon shall not be discharged or satisfied by any tender by the Company, or recovery by the Trustee, in any currency or currency unit other than the Required Currency, except to
the extent that such tender or recovery shall result in the Trustee's timely holding the full amount of the Required Currency then due and payable. If any such tender or recovery is made in other than
the Required Currency, the Trustee may take such actions as it considers appropriate to exchange such other currency or currency unit for the Required Currency. The costs and risks of any such
exchange, including without limitation the risks of delay and exchange rate fluctuation, shall be borne by the Company, the Company shall be liable for any shortfall or delinquency in the full amount
of the Required Currency then due and payable, and in no circumstances shall the Trustee be liable therefor. The Company hereby waives any defense of payment based upon any such tender or recovery
which is not in the Required Currency, or which, when exchanged for the Required Currency by the Trustee, is less than the full amount of the Required Currency then due and payable. 

        SECTION
1.17    LANGUAGE OF NOTICES, ETC.    

        Any
request, demand, authorization, direction, notice, consent or waiver required or permitted under this Indenture shall be in the English language, except that any published notice may
be in an official language of the country of publication. 

        SECTION
1.18    CHANGES IN EXHIBITS    

        At
any time and from time to time, the Company may substitute a new form, or add new forms, of the Exhibits hereto. Such substitution shall be effective upon receipt by the Trustee of
such new form of Exhibit and a Board Resolution or Officers' Certificate adopting such new form of Exhibit, and thereafter all references in this Indenture to such Exhibit shall be deemed to refer to
such new form of Exhibit. 

        SECTION
1.19    COUNTERPART ORIGINALS    

        The
parties may sign any number of copies of this Indenture by the parties thereto in separate counterparts, each of which when signed shall be deemed to be an original, but all of them
together represent the same agreement. 

ARTICLE TWO  

 ISSUANCE OF SECURITIES  

        SECTION
2.1    CREATION OF SECURITIES IN AMOUNT UNLIMITED    

        An
unlimited aggregate principal amount of Securities may be issued pursuant to this Article Two and, in the case of Medium-Term Debt Securities, pursuant to Article Three.
The Securities (including Medium-Term Debt Securities) may be authenticated and delivered, as authorized by the Board of Directors, in an unlimited number of series up to an aggregate
principal amount of Securities for such series as from time to time may be authorized by the Board of Directors. All Securities of each series of this Indenture shall be equally and ratably entitled
to the benefits hereof with respect to such series without preference, priority or distinction on account of the actual time of the authentication and delivery or Stated Maturity of the Securities of
such series. 

13

 

        SECTION
2.2    DOCUMENTS REQUIRED FOR ISSUANCE OF EACH SERIES OF SECURITIES OTHER THAN MEDIUM-TERM DEBT
SECURITIES    

        At
any time and from time to time, Securities of each series created pursuant to the provisions of this Article Two may be executed by the Company and delivered to the Trustee and shall
be authenticated by the Trustee and delivered to, or upon the order of, the Company upon receipt by the Trustee of the following: 

        (a)   A
Board Resolution or Board Resolutions authorizing the execution, authentication and delivery of the Securities of the series, and specifying: 

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

        (2)   any
limit upon the aggregate principal amount of the Securities of the series which may be authenticated and delivered under this Article Two (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 4.3, 4.4, 4.5, 10.6 or 12.7 and except for
any Securities which, pursuant to Section 4.2, are deemed never to have been authenticated and delivered hereunder); 

        (3)   the
date or dates on which the principal (and premium, if any) of any of the Securities of the series are payable or the method of determination thereof; 

        (4)   the
rate or rates, or the method of determination thereof, at which any of the Securities of the series shall bear interest, if any, the date or dates from which such
interest shall accrue, the Interest Payment Dates on which such interest shall be payable and the Regular Record Date for the interest payable on any Registered Securities on any Interest Payment
Date; 

        (5)   if
an Original Issue Discount Security, the Yield to Maturity; 

        (6)   the
place or places where the principal of (and premium, if any) and interest, if any, on any of the Securities and Coupons, if any, of the series shall be payable and
the office or agency for the Securities of the series maintained by the Company pursuant to Section 11.2; 

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

        (8)   the
terms of any sinking fund and the obligation, if any, of the Company to redeem or purchase Securities of the series pursuant to any sinking fund or analogous
provisions or at the option of a Holder thereof and the period or periods within which, the price or prices at which and the terms and conditions upon which Securities of the series shall be redeemed
or purchased, in whole or in part; 

        (9)   the
terms of the obligation of the Company, if any, to permit the conversion of the Securities of the series into stock or other securities of the Company or of any
other corporation; 

        (10) the
terms, if any, for the attachment to Securities of the series of warrants, options or other rights to purchase or sell stock or other securities of the Company; 

        (11) if
other than denominations of $1,000 and in any integral multiple thereof, if Registered Securities, and $5,000, if Bearer Securities, for Securities denominated in
Dollars, the denominations in which the Securities of the series shall be issuable; 

14

 

        (12) if
other than the principal amount thereof, the portion of the principal amount of any of the Securities of the series which shall be payable upon declaration of
acceleration of the Maturity thereof pursuant to Section 6.2; 

        (13) the
application, if any, of Section 5.3, or such other means of satisfaction and discharge as may be specified for the Securities and Coupons, if any, for a
series; 

        (14) any
deletions or modifications of or additions to the Events of Default set forth in Section 6.1 or covenants of the Company set forth in Section 8.4,
Article Nine or Article Eleven pertaining to the Securities of the series; 

        (15) the
forms of the Securities and Coupons, if any, of the series; 

        (16) if
other than Dollars, the currency or currencies, or currency unit or units, in which the Securities of such series will be denominated and/or in which payment of the
principal of (and premium, if any) and interest, if any, on any of the Securities of the series shall be payable and the Exchange Rate Agent, if any, for such series; 

        (17) if
the principal of (and premium, if any) or interest, if any, on any of the Securities of the series are to be payable at the election of the Company or a Holder
thereof, or under some or all other circumstances, in a currency or currencies, or currency unit or units, other than that in which the Securities are denominated, the period or periods within which,
and the terms and conditions upon which, such election may be made, or the other circumstances under which any of the Securities are to be so payable, including without limitation the application of
Section 4.10(b) and any deletions to, modifications of or additions to the provisions thereof, and any provision requiring the Holder to bear currency exchange costs by deduction from such
payments; 

        (18) if
the amount of payments of principal of (and premium, if any) or interest, if any, on any of the Securities of the series may be determined with reference to an index
based on (i) a currency or currencies or currency unit or units other than that in which such Securities are stated to be payable or
(ii) any method, not inconsistent with the provisions of this Indenture, specified in or pursuant to such Board Resolution, then in each case (i) and (ii) the manner in which such
amounts shall be determined; 

        (19) whether
the Securities of the series are to be issued as Registered Securities or Bearer Securities (with or without Coupons), or any combination thereof, whether
Bearer Securities may be exchanged for Registered Securities of the series and whether Registered Securities may be exchanged for Bearer Securities of the series (if permitted by applicable laws and
regulations) and the circumstances under which and the place or places where any such exchanges, if permitted, may be made; and whether any Securities of the series are to be issuable initially in
temporary global form and whether any Securities of the series are to be issuable in definitive global form with or without Coupons and, if so, whether beneficial owners of interests in any such
definitive Global Security may exchange such interests for Securities of such series and of like tenor of any authorized form and denomination and the circumstances under which and the place or places
where any such exchanges may occur, if other than in the manner provided in Section 4.4; 

        (20) whether
and under what circumstances and with what procedures and documentation the Company will pay additional amounts on any of the Securities and Coupons, if any, of
the series to any Holder who is not a U.S. Person (including definition of such term), in respect of any tax assessment or governmental charge withheld or deducted and, if so, whether the Company will
have the option to redeem such Securities rather than pay additional amounts (and the terms of any such option); 

15

 

        (21) the
Person to whom any interest on any Registered Security of the series shall be payable, if other than the Person in whose name that Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, the manner in which, or the Person to whom, any interest on any Bearer Security of the
series 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, any interest
payable on a temporary Global Security on an Interest Payment Date will be paid if other than in the manner provided in Section 4.3; and 

        (22) any
other terms of any of the Securities of the series (which terms shall not be inconsistent with the provisions of this Indenture). 

        If
any of the terms of the series are established by action taken pursuant to a Board Resolution or Board Resolutions, an Officers' Certificate certifying as to such action also shall be
delivered to the Trustee. 

        (b)   In
case the Securities of the series to be authenticated and delivered are to be created pursuant to one or more supplemental indentures, such supplemental indenture or
indentures, accompanied by a Board Resolution or Board Resolutions authorizing such supplemental indenture or indentures and designating the new series to be created and prescribing pursuant to
Subsection (a) above, consistent with the applicable provisions of this Indenture, the terms and provisions relating to the Securities of the series. 

        (c)   [Reserved.] 

        (d)   An
Opinion of Counsel that all instruments furnished to the Trustee pursuant to this Article 2 conform to the requirements of this Indenture and constitute
sufficient authority hereunder for the Trustee to authenticate and deliver the Securities and to deliver the Coupons, if any, of the series; that all conditions precedent provided for in this
Indenture relating to the authentication and delivery of the Securities and delivery of the Coupons, if any, of the series have been complied with; that the Company has corporate power to execute and
deliver the supplemental indenture, if any, and to issue the Securities and Coupons, if any, of the series and has duly taken all necessary corporate action for those purposes; and that the
supplemental indenture, if any, as executed and delivered and the Securities and Coupons, if any, of the series, when issued, will be the legal, valid and binding obligations of the Company
enforceable against the Company in accordance with their terms (subject to applicable bankruptcy, insolvency, fraudulent transfer or conveyance, reorganization, moratorium or other laws affecting
creditors' rights generally from time to time in effect, the enforceability of the Company's obligations also being subject to general principles of equity (regardless of whether such enforceability
is considered in a proceeding in equity or at law), and to such other exceptions that are customary in the circumstances); that the Securities and Coupons, if any, of the series, when issued, will be
entitled to the benefits of this Indenture, equally and ratably with all other Securities and Coupons, if any, of such series theretofore issued and then outstanding hereunder; and that the amount of
Securities then outstanding under this Indenture, including the Securities of the series, will not exceed the amount at the time permitted by law or this Indenture. 

16

  

        (e)   An
Officers' Certificate stating that the Company is not in default under this Indenture and that the issuance of the Securities and Coupons, if any, of the series will
not result in any breach of any of the terms, conditions or provisions of, or constitute a default under, the Company's Memorandum of Association and Articles of Association, or other comparable
organizational documents, as applicable, or any indenture, mortgage, deed of trust or other agreement or instrument to which the Company is a party or by which it is bound, or any order of any court
or administrative agency entered in any proceeding to which the Company is a party or by which it may be bound or to which it may be subject; and that all conditions precedent provided in this
Indenture relating to the authentication and delivery of the Securities and Coupons, if any, of the series have been complied with. 

        (f)    Such
other documents as the Trustee may reasonably require. 

ARTICLE THREE  

 ISSUANCE OF MEDIUM-TERM DEBT SECURITIES  

        SECTION
3.1    DOCUMENTS REQUIRED FOR ISSUANCE OF EACH SERIES OF MEDIUM-TERM DEBT SECURITIES    

        At
any time, and from time to time, Securities (sometimes referred to herein as "Medium-Term Debt Securities") of each series created pursuant to the provisions of this
Article Three may be executed by the Company and delivered to the Trustee and shall be authenticated by the Trustee and delivered to, or upon the order of, the Company upon receipt by the Trustee of
the following: 

        (a)   A
Board Resolution or Board Resolutions authorizing the execution, authentication and delivery of Medium-Term Debt Securities up to a specified aggregate
principal amount, in such series and subject to such terms as shall be established by officers of the Company authorized by such resolutions to establish such series and terms. 

        (b)   A
Medium-Term Debt Securities Certificate requesting the Trustee to authenticate and deliver Medium-Term Debt Securities of a series as
contemplated by Section 4.2, and specifying the following terms with respect to the Medium-Term Debt Securities of the particular series, authorized pursuant to the Board Resolution
or Board Resolutions referred to in Subsection (a) above: 

        (1)   the
title of the Medium-Term Debt Securities of the series (which shall distinguish the Medium-Term Debt Securities of the series from all other
Securities); 

        (2)   the
date of the Medium-Term Debt Securities of the series; 

        (3)   any
limit upon the aggregate principal amount of the Medium-Term Debt Securities of the series which may be authenticated and delivered under this Article Three (except
for Medium-Term Debt Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Medium-Term Debt Securities of the series
pursuant to Section 4.3, 4.4, 4.5, 10.6 or 12.7 and except for any Medium-Term Debt Securities which, pursuant to Section 4.2, are deemed never to have been authenticated and
delivered hereunder); 

        (4)   the
date or dates on which the principal (and premium, if any) of any of the Medium-Term Debt Securities of the series are payable or the method of
determination thereof, which in any event may not be less than nine months subsequent to the date of the first authentication of Medium-Term Debt Securities of the series; 

        (5)   the
rate or rates, or the method of determination thereof, at which any of the Medium-Term Debt Securities of the series shall bear interest, if any, the
date or dates from 

17

 

which
such interest shall accrue, the Interest Payment Dates on which such interest shall be payable and the Regular Record Date for the interest payable on any Medium-Term Debt Securities
of the series that are Registered Securities on any Interest Payment Date; 

        (6)   If
an Original Issue Discount security, the Yield to Maturity; 

        (7)   the
place or places where the principal of (and premium, if any) and interest, if any, on any of the Medium-Term Debt Securities and Coupons, if any, of the
series shall be payable and the office or agency for the Medium-Term Debt Securities of the series maintained by the Company pursuant to Section 11.2; 

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

        (9)   the
terms of any sinking fund and the obligation, if any, of the Company to redeem or purchase Medium-Term Debt Securities of the series pursuant to any
sinking fund or analogous provisions or at the option of a Holder thereof and the period or periods within which, the price or prices at which and the terms and conditions upon which
Medium-Term Debt Securities of the series shall be redeemed or purchased, in whole or in part; 

        (10) the
terms of the obligation of the Company, if any, to permit the conversion of the Medium-Term Debt Securities of the series into shares or other
securities of the Company or of any other corporation; 

        (11) the
terms, if any, for the attachment to Medium-Term Debt Securities of the series of warrants, options or other rights to purchase or sell shares or other
securities of the Company; 

        (12) if
other than denominations of $1,000 and in any integral multiple thereof, if Registered Securities, and $5,000 if Bearer Securities, for Medium-Term Debt
Securities denominated in Dollars, the denominations in which the Medium-Term Debt Securities of the series shall be issuable; 

        (13) if
other than the principal amount thereof, the portion of the principal amount of any of the Medium-Term Debt Securities of the series which shall be
payable upon declaration of acceleration of the Maturity thereof pursuant to Section 6.2; 

        (14) the
application, if any, of Section 5.3, or such other means of satisfaction and discharge as may be specified for the Medium-Term Debt Securities
and Coupons, if any, of the series; 

        (15) any
deletions or modifications of or additions to the Events of Default set forth in Section 6.1 or covenants of the Company set forth in Section 8.4,
Article Nine or Article Eleven pertaining to the Medium-Term Debt Securities of the series; 

        (16) if
other than Dollars, the currency or currencies, or currency unit or units, in which the Medium-Term Debt Securities of the series will be denominated
and/or in which payment of the principal of (and premium, if any) and interest, if any, on any of the Medium-Term Debt Securities of the series shall be payable and the Exchange Rate
Agent, if any, for such series; 

        (17) if
the principal of (and premium, if any) or interest, if any, on any of the Securities of the series are to be payable at the election of the Company or Holder
thereof, or under some or all other circumstances, in a currency or currencies, or currency unit or units, other than that in which the Medium-Term Debt Securities are stated to be
payable, the period or periods within which, and the terms and conditions upon which, such election may be made, or the other circumstances under which any of the Medium-Term Debt
Securities are to be so 

18

 

payable,
including without limitation the application of Section 4.10(b) and any deletions to, modification of or additions to the provisions thereof, and any provision requiring the Holder to
bear currency exchange costs by deduction from such payments; 

        (18) if
the amount of payments of principal of (and premium, if any) or interest, if any, on any of the Medium-Term Debt Securities of the series may be
determined with reference to an index based on (i) a currency or currencies or currency unit or units other than that in which such Securities are stated to be payable or (ii) any
method, not inconsistent with the provisions of this Indenture, specified in or pursuant to such Board Resolution, then in each case (i) and (ii) the manner in which such amounts shall
be determined; 

        (19) whether
the Medium-Term Debt Securities of the series are to be issued as Registered Securities or Bearer Securities (with or without Coupons), or any
combination thereof, whether Bearer Securities may be exchanged for Registered Securities of the series and whether Registered Securities may be exchanged for Bearer Securities of the series (if
permitted by applicable laws and regulations) and the circumstances under which and the place or places where any such exchanges, if permitted, may be made; and whether any Medium-Term
Debt Securities of the series are to be issuable initially in temporary global form and whether any Medium-Term Debt Securities of the series are to be issuable in definitive global form with or
without Coupons and, if so, whether beneficial owners of interests in any such definitive Global Medium-Term Debt Security may exchange such interests for Medium-Term Debt
Securities of such series and of like tenor of any authorized form and denomination and the circumstances under which and the place or places where any such exchange may occur, if other than in the
manner provided in Section 4.4; 

        (20) whether
and under what circumstances and with what procedures and documentation the Company will pay additional amounts on any of the Medium-Term Debt
Securities of the series to any Holder who is not a U.S. Person (including a definition of such term), in respect of any tax
assessment or governmental charge withheld or deducted and, if so, whether the Company will have the option to redeem such Medium-Term Debt Securities rather than pay additional amounts
(and the terms of any such option); 

        (21) the
Person to whom any interest on any Medium-Term Debt Security of the series shall be payable, if other than the Person in whose name that
Medium-Term Debt Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, the manner in which, or the person to
whom, any interest on any Bearer Security of the series 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, any interest payable on a temporary Global Medium-Term Debt Security on an Interest Payment Date will be paid if other than in the manner provided in
Section 4.3; 

        (22) the
forms of the Medium-Term Debt Securities and Coupons, if any, of the series; and 

        (23) any
other terms of any of the Medium-Term Debt Securities of the series (which terms shall not be inconsistent with the provisions of this Indenture). 

        Unless
the Company shall be required to deliver an Officers' Certificate pursuant to Subsection (d) below in connection with the authentication of the Medium-Term Debt
Securities of the series, the delivery of such Medium-Term Debt Securities Certificate to the Trustee shall be deemed to be a certification by the Company that all matters certified in the
most recent Officers' Certificate delivered to the Trustee pursuant to Subsection (d) below continue to be true and correct, as if such Officers' Certificate related to the
Medium-Term Debt Securities covered by 

19

 

such
Medium-Term Debt Securities Certificate, on and as of the date of such Medium-Term Debt Securities Certificate. The delivery of such Medium-Term Debt
Securities Certificate also shall be deemed to be a certification that the Board Resolution or Board Resolutions referred to in Subsection (a) above are in full force and effect on and as of
the date of such Medium-Term Debt Securities Certificate and that the terms and form or forms of the Medium-Term Debt Securities and Coupons, if any, of the series have been
established by an officer or officers of the Company authorized by such Board Resolution or Board Resolutions in accordance with the provisions thereof and hereof. 

        (c)   If
(1) the Company shall not have previously delivered to the Trustee an Opinion of Counsel to the effect set forth in this Subsection (c) with respect to
the Medium-Term Debt Securities authorized pursuant to the Board Resolution or Board Resolutions referred to in Subsection (a) above or (2) if the Medium-Term
Debt Securities Certificate referred to in Subsection (b) above
specifies a means of satisfaction and discharge other than the application of Section 5.3 with respect to the series of Medium-Term Debt Securities to which such
Medium-Term Debt Securities Certificate relates, an Opinion of Counsel that the Medium-Term Debt Securities have been duly authorized by resolutions of the Board of Directors
of the Company, subject to the establishment of certain terms of the Medium-Term Debt Securities and Coupons, if any, of the series by officers of the Company authorized by such
resolutions to establish such terms, that when the terms of the Medium-Term Debt Securities and Coupons, if any, of the series have been established as provided in such resolutions and in
this Indenture and the Medium-Term Debt Securities and Coupons, if any, of the series have been executed, authenticated and delivered in accordance with the provisions of this Indenture,
the Medium-Term Debt Securities and Coupons, if any, of the series, assuming they do not violate any applicable law then binding on the Company, will constitute legal, valid and binding
obligations of the Company (subject to applicable bankruptcy, insolvency, fraudulent transfer or conveyance, reorganization, moratorium or other laws affecting creditors' rights generally from time to
time in effect, the enforceability of the Company's obligations also being subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or
at law) and to such other exceptions that are customary in the circumstances) entitled to the benefits of this Indenture, equally and ratably with all other Securities and Coupons, if any, of such
series theretofore issued and then outstanding hereunder, and that the amount of Securities then outstanding under this Indenture, including the Medium-Term Debt Securities of the series,
will not exceed the amount at the time permitted by law or this Indenture. 

        (d)   If
the Company shall not have delivered an Officers' Certificate pursuant to the provisions of this Subsection (d) to the Trustee during the immediately preceding
12-month period, an Officers' Certificate stating that the Company is not in default under this Indenture, that the issuance of the Medium-Term Debt Securities and Coupons, if any, of the
series will not result in any breach of any of the terms, conditions or provisions of, or constitute a default under, the Company's Memorandum of Association or Articles of Association, or other
comparable organizational documents, as applicable, or any indenture, mortgage, deed of trust or other agreement or instrument to which the Company is a party or by which it is bound, or any order of
any court or administrative agency entered in any proceeding to which the Company is a party or by which it may be bound or to which it may be subject, that all laws and requirements with respect to
the execution and delivery by the Company of the Medium-Term Debt Securities and Coupons, if any, of the series have been complied with and that all conditions precedent provided in this
Indenture relating to the authentication and delivery of the Medium-Term Debt Securities and Coupons, if any, of the series have been complied with. 

        (e)   Such
other documents as the Trustee shall reasonably request. 

20

 

        SECTION
3.2    FORM OF MEDIUM-TERM DEBT SECURITIES    

        The
Medium-Term Debt Securities and Coupons, if any, of each series shall be in such forms as shall be specified as contemplated by Section 3.1. 

ARTICLE FOUR  

 THE SECURITIES  

        SECTION
4.1    FORM AND DENOMINATION    

        All
Securities of any one series and the Coupons appertaining to any Bearer Securities of such series shall be substantially identical except, in the case of Registered Securities, as to
denomination and except as may otherwise be provided in or pursuant to the Board Resolution referred to in Section 2.2 or Section 3.1, as the case may be, and (subject to
Section 4.2) set forth in the Officers' Certificate or Medium-Term Debt Securities Certificate referred to in Section 2.2 or Section 3.1, as the case may be, or in any
indenture supplemental hereto. 

        The
Securities of each series shall be issuable in such denominations as shall be specified as contemplated by Section 2.2 or Section 3.1, as the case may be. In the
absence of any such provisions with respect to the Securities of any series, the Securities of such series denominated in Dollars shall be issuable in denominations of $l,000 and in any integral
multiple thereof, if registered, and in denominations of $5,000 if bearer. Securities of each series shall be numbered, lettered or otherwise distinguished in such manner or in accordance with such
plan as the officers of the Company executing the same may determine with the approval of the Trustee. Each Security shall bear the appropriate legends, if any, as required by U.S. Federal tax law and
regulations. 

        SECTION
4.2    EXECUTION, DELIVERY, DATING AND AUTHENTICATION    

        The
Securities shall be executed on behalf of the Company by a manual or facsimile signature of its Chairman, its President, any of its Vice Presidents, its Treasurer, any Assistant
Treasurer, its Secretary, any Assistant Secretary or any person acting in a similar capacity, under its corporate seal reproduced thereon. Any Coupons shall be executed on behalf of the Company by the
manual or facsimile signature of any such officer of the Company. In case any of the above referenced officers of the Company who shall have signed any of the Securities or Coupons shall cease to be
such officer before the Securities so signed shall have been authenticated and delivered by the Trustee or disposed of by the Company, such Securities nevertheless may be authenticated and delivered
or disposed of as though the person who signed such Securities and/or Coupons had not ceased to be such officer; and any Securities or Coupons may be signed on behalf of the Company by such persons
as, at the actual date
of the execution of such Security or Coupon, shall be such officers of the Company, although at the date of the execution of this Indenture any such person was not such officer. 

        At
any time and from time to time, the Company may deliver Securities of any series, together with any Coupons appertaining thereto, executed by the Company to the Trustee for
authentication, together (except in the case of any Medium-Term Debt Securities) with a Company Order for the authentication and delivery of such Securities, and the Trustee in accordance
with the Company Order (or, in the case of Medium-Term Debt Securities of any series, upon receipt of a Medium-Term Debt Securities Certificate and in accordance with the terms
thereof) shall authenticate and make available for delivery such Securities; PROVIDED, HOWEVER, that, unless otherwise specified in the Board Resolution (or, in the case of any Bearer Securities that
are Medium-Term Debt Securities in the Medium-Term Debt Securities Certificate) with respect to an Bearer Securities, in connection with its original issuance, no Bearer
Security (including any temporary Bearer Security issued pursuant to Section 4.3 which is not in global form) shall be mailed or otherwise delivered to any location in the United States; and
PROVIDED FURTHER that, unless otherwise specified in the Board Resolution (or, in the case of any Bearer Securities that are Medium-Term Debt Securities, in the Medium-Term 

21

 

Debt
Securities Certificate) with respect to such Bearer Securities, such Bearer Security may be delivered in connection with its original issuance only if the Person entitled to receive such Bearer
Security (including any temporary Bearer Security issued pursuant to Section 4.3 which is not in global form) shall have furnished to the Company or any agent, underwriter or selling group
member a certificate substantially in the form set forth in Exhibit B.1 to this Indenture, dated no earlier than 15 days prior to the earlier of the date on which such Bearer Security is
delivered and the date on which any temporary Security first becomes exchangeable for such Bearer Security in accordance with the terms of such temporary Security and this Indenture. In connection
with the original issuance of any Bearer Security and unless otherwise specified in the Board Resolution (or, in the case of any Bearer Securities that are Medium-Term Debt Securities, in
the Medium-Term Debt Securities Certificate) with respect to such Bearer Securities, a confirmation substantially in the form set forth in Exhibit B.5 to this Indenture shall be
sent to each purchaser thereof. If any Security shall be represented by a definitive Global Bearer Security, then, for purposes of this Section and Section 4.3, the notation of a beneficial
owner's interest therein upon original issuance of such Security or upon exchange of a portion of a temporary Global Security shall be deemed to be delivery in connection with its original issuance of
such beneficial owner's interest in such definitive Global Bearer Security. Except as permitted by Section 4.5, the Trustee shall not authenticate and make available for delivery any Bearer
Security unless all appurtenant Coupons for interest then matured have been detached and canceled. 

        The
Trustee shall not be required to authenticate Securities of any series if the issue of such Securities pursuant to this Indenture will affect the Trustee's own rights, duties or
immunities under the Securities and this Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee, or if the Trustee determines that such action may not lawfully be taken. 

        Unless
otherwise specified pursuant to Section 3.1(b)(2), each Registered Security shall be dated the date of its authentication, and each Bearer Security and any Bearer Security
in global form shall be dated as of the date of original issuance of the first Security of such series to be issued. 

        No
Security or Coupon shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a certificate of
authentication substantially in the form provided for below executed by the Trustee by manual signature, and such certificate upon any Security shall be conclusive evidence, and the only evidence,
that such Security has been duly authenticated and delivered hereunder. Notwithstanding the foregoing, if any Security shall have been duly authenticated and delivered hereunder but never issued and
sold by the Company, and the Company shall deliver such Security to the Trustee for cancellation as provided in Section 4.8 together with a written statement (which need not comply with
Section 1.2 and need not be accompanied by an Opinion of Counsel) stating that such Security has never been issued and sold by the Company, for all purposes of this Indenture such Security
shall be deemed never to have been authenticated and delivered hereunder and shall never be entitled to the benefits of this Indenture. 

        The
Trustee's certificate of authentication shall be in substantially the following form: 

        Dated:

        This
is one of the Securities of the series designated herein issued under the within-mentioned Indenture. 

	 	 	 
	, as Trustee
	

 	
 	

By:	
 	

 
 Authorized Signatory

22

   
        SECTION 4.3    TEMPORARY SECURITIES    

        Pending
the preparation of definitive Securities of any series, the Company may execute, and upon Company Order (or, in the case of Medium-Term Debt Securities, receipt of
the Medium-Term Debt Securities Certificate with respect to such Medium-Term Debt Securities) the Trustee shall authenticate and make available for delivery, temporary
Securities which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which
they are issued, in registered form or, if authorized, in bearer form with one or more Coupons or without Coupons, and with such appropriate insertions, omissions, substitutions and other variations
as the officers executing such Securities may determine, as evidenced conclusively by their execution of such Securities. Such temporary Securities may be in global form. 

        Except
in the case of temporary Global Securities (which shall be exchanged in accordance with the provisions of the following subsections), if temporary Securities of any series are
issued, the Company will cause definitive Securities of that series to be prepared without unreasonable delay. After the preparation of definitive Securities of such series, the temporary Securities
of such series shall be exchangeable for definitive Securities of such series upon surrender of the temporary Securities of such series at the office or agency of the Company maintained pursuant to
Section 11.2 in a Place of Payment for such series for the purpose of exchanges of Securities of such series, without charge to the Holder. Upon surrender for cancellation of any one or more
temporary Securities of any series (accompanied by any unmatured Coupons) the Company shall execute and the Trustee shall authenticate and make available for delivery in exchange therefor a like
aggregate principal amount of definitive Securities of the same series and of like tenor or authorized denominations; PROVIDED, HOWEVER, that, unless otherwise specified as contemplated by
Section 2.2 or Section 3.1, as the case may be, no definitive Bearer Security shall be delivered in exchange for a temporary Registered Security; PROVIDED FURTHER that a definitive
Bearer Security shall be delivered in exchange for a temporary Bearer Security only in compliance with the conditions set forth in Section 4.2. 

        If
temporary Bearer Securities of any series are issued in global form, such temporary Global Bearer Securities shall, unless otherwise specified as contemplated by Section 2.2 or
Section 3.1, as the case may be, be delivered to the London office of the Depositary, for the benefit of Euroclear and CEDEL Bank, societe anonyme ("CEDEL"), for credit to the
respective accounts of the beneficial owners of interests in such Securities (or to such other accounts as they may direct). 

        Without
unnecessary delay but in any event not later than the date specified in, or determined pursuant to the terms of, any such temporary Global Security (the "Exchange Date"), the
Company shall deliver to the Trustee definitive Securities, in aggregate principal amount equal to the principal amount of such temporary Global Security, executed by the Company. On or after the
Exchange Date such temporary Global Security shall be surrendered by the Depositary to the Trustee, as the Company's agent for such purpose, to be exchanged, in whole or from time to time in part, for
definitive Securities without charge and the Trustee shall authenticate and make available for delivery, in exchange for each portion of such temporary Global Security, an equal aggregate principal
amount of definitive Securities of the same series of authorized denominations and of like tenor as the portion of such temporary Global Security to be exchanged. The definitive Securities to be
delivered in exchange for any such temporary Global Security shall be in bearer form, registered form, definitive Global form or any combination thereof, as specified as contemplated by
Section 2.2 or Section 3.1, as the case may be, and, if any combination thereof is so specified, as requested by the beneficial owner thereof; PROVIDED, HOWEVER, that, unless otherwise
specified as contemplated by Section 2.2 or Section 3.1, as the case may be, upon such presentation by the Depositary, such temporary Global Security shall be accompanied by a
certificate dated the Exchange Date or a subsequent date and signed by Euroclear as to the portion of such temporary Global Security held for its account then to be exchanged and a certificate dated
the Exchange Date or a subsequent date and signed by CEDEL as to the portion of such temporary Global Security held for its account then to be exchanged, each in the 

23

 

form
set forth in Exhibit B.2 to this Indenture; PROVIDED FURTHER that definitive Bearer Securities (including a definitive Global Bearer Security) shall be delivered in exchange for a portion
of a temporary Global Security only in compliance with the requirements of Section 4.2. 

        Unless
otherwise specified as contemplated by Section 2.2 or Section 3.1, as the case may be, the interest of a beneficial owner of Securities of a series in a temporary
Global Bearer Security shall be exchanged for definitive Bearer Securities of the same series and of like tenor following the Exchange Date when the beneficial owner instructs Euroclear or CEDEL, as
the case may be, to request such exchange on his behalf and delivers to Euroclear or CEDEL, as the case may be, a certificate substantially in the form set forth in Exhibit B.1 to this
Indenture, dated no earlier than 15 days prior to the Exchange Date, copies of which certificate shall be available from the offices of Euroclear, CEDEL, the Trustee, any Authenticating Agent
appointed for such series of Securities and any Paying Agent appointed for such series of Securities. Unless otherwise specified as contemplated by Section 2.2 or Section 3.1, as the
case may be, any such exchange shall be made free of charge to the beneficial owners of such temporary Global Security, except that a Person receiving definitive Securities must bear the cost of
insurance, postage, transportation and the like in the event that such Person does not take delivery of such definitive Securities in person at the offices of Euroclear or CEDEL. The definitive Bearer
Securities to be delivered in exchange for any portion of a temporary Global Security shall be delivered only outside the United States. 

        Until
exchanged in full as provided above, the temporary Securities of any series shall in all respects be entitled to the same benefits under this Indenture as definitive Securities of
the same series and of like tenor authenticated and delivered hereunder, except that, unless otherwise specified as contemplated by Section 2.2 or Section 3.1, as the case may be,
interest payable on a temporary Global Bearer Security on an Interest Payment Date for Securities of such series occurring prior to the applicable Exchange Date shall be payable to Euroclear and CEDEL
on such Interest Payment Date upon delivery by
Euroclear and CEDEL to the Trustee of a certificate or certificates substantially in the form set forth in Exhibit B.3 to this Indenture, for credit without further interest on or after such
Interest Payment Date to the respective accounts of the Persons who are the beneficial owners of such temporary Global Security (or to such other accounts as they may direct) on such Interest Payment
Date and who have each delivered to Euroclear or CEDEL, as the case may be, a certificate substantially in the form set forth in Exhibit B.4 to this Indenture. Any interest so received by
Euroclear and CEDEL and not paid as herein provided shall be returned to the Trustee immediately prior to the expiration of two years after such Interest Payment Date in order to be repaid to the
Company in accordance with Section 11.3. 

        SECTION
4.4    REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE    

        The
Company shall cause to be kept at an office or agency to be maintained by the Company in accordance with Section 11.2 a register (being the combined register of the Security
Registrar and all additional transfer agents designated pursuant to Section 11.2 for the purpose of registration of transfer of Securities and sometimes collectively referred to as the
"Security Register") in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration of Registered Securities and the registration of transfers of
Registered Securities. The Trustee is hereby appointed the initial Security Registrar, with the Security Register initially to be kept
at                        at all reasonable times each register
maintained by the Security Registrar and any additional transfer agents shall be open for inspection by the Trustee. 

        Subject
to Section 4.11, upon surrender for registration of transfer of any Registered Security of any series at the office or agency of the Company maintained pursuant to
Section 11.2 for such purpose in a Place of Payment for such series, the Company shall execute, and the Trustee shall authenticate and make available for delivery, in the name of the designated
transferee or transferees, one or more new Registered Securities of the same series of any authorized denominations and of a 

24

 

like
aggregate principal amount and tenor. 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
denominations and of a like aggregate principal amount and tenor, upon surrender of the Securities to be exchanged at any such office or agency. Whenever any Securities are so surrendered for
exchange. the Company shall execute, and the Trustee shall authenticate and make available for delivery, the Securities which the Holder making the exchange is entitled to receive. Unless otherwise
specified as contemplated by Section 2.2 or Section 3.1, as the case may be, Bearer Securities may not be issued in exchange for Registered Securities. 

        Subject
to Section 4.11, at the option of the Holder and unless otherwise specified as contemplated by Section 2.2 or Section 3.1, as the case may be, Bearer
Securities of any series may be exchanged for Registered Securities of the same series of any authorized denominations and of a like aggregate principal amount and tenor, upon surrender of the Bearer
Securities to be exchanged at any such office or agency, with all unmatured Coupons and all matured Coupons in default appertaining thereto. If the Holder of a Bearer Security is unable to produce any
such unmatured Coupon or Coupons or matured
Coupon or Coupons in default, such exchange may be effected if the Bearer Securities are accompanied by payment in funds acceptable to the Company in an amount equal to the face amount of such missing
Coupon or Coupons, or the surrender of such missing Coupon or Coupons may be waived by the Company and the Trustee if there is furnished to them such security or indemnity as they may require to save
each of them and any Paying Agent harmless. If thereafter the Holder of such Security shall surrender to any Paying Agent any such missing Coupon in respect of which such a payment shall have been
made, such Holder shall be entitled to receive the amount of such payment; PROVIDED, HOWEVER, that, except as otherwise provided in Section 11.2, interest represented by Coupons shall be
payable only upon presentation and surrender of those Coupons at an office or agency located outside the United States. Notwithstanding the foregoing, in case a Bearer Security of any series is
surrendered at any such office or agency in exchange for a Registered Security of the same series and like tenor after the close of business at such office or agency on (1) any Regular Record
Date and before the opening of business at such office or agency on the relevant Interest Payment Date, or (2) any Special Record Date and before the opening of business at such office or
agency on the related proposed date for payment of Defaulted Interest, such Bearer Security shall be surrendered without the Coupon relating to such Interest Payment Date or proposed date for payment,
as the case may be, and interest or Defaulted Interest, as the case may be, will not be payable on such Interest Payment Date or proposed date for payment, as the case may be, in respect of the
Registered Security issued in exchange for such Bearer Security, but will be payable only to the Holder of such Coupon when due in accordance with the provisions of this Indenture. 

        Whenever
any Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and make available for delivery, the Securities which the Holder
making the exchange is entitled to receive. 

        Notwithstanding
the foregoing, except as otherwise specified as contemplated by Section 2.2 or Section 3.1, as the case may be, any definitive Global Bearer Security shall
be exchangeable only as provided in this Subsection. If the beneficial owners of interests in a definitive Global Bearer Security are entitled to exchange such interests for Securities of such series
and of like tenor and principal amount of another authorized form and denomination, as specified as contemplated by Section 2.2 or Section 3.1, as the case may be, then without
unnecessary delay but in any event not later than the earliest date on which such interest may be so exchanged, the Company shall deliver to the Trustee definitive Securities in an aggregate principal
amount equal to the principal amount of such definitive Global Bearer Security, executed by the Company. On or after the earliest date on which such interests may be so exchanged, such definitive
Global Bearer Security shall be surrendered by the Depositary or such other depositary or Depositary) as shall be specified in the Company Order or Medium-Term Debt Securities Certificate,
as the case may be, with respect thereto to the Trustee, as the Company's 

25

 

agent
for such purpose, to be exchanged, in whole or from time to time in part, for definitive Securities without charge and the Trustee shall authenticate and make available for delivery, in exchange
for each portion of such definitive Global Bearer Security, an equal aggregate principal amount of definitive Securities of the same series of authorized denominations and of like tenor as the portion
of such definitive Global Bearer Security to be exchanged which, unless the Securities of the series are not issuable both as Bearer Securities and as Registered Securities, as specified as
contemplated by Section 2.2 or Section 3.1, as the case may be, shall be in the form of Bearer Securities or Registered Securities, or any combination thereof, as shall be specified by
the beneficial owner thereof; PROVIDED, HOWEVER, that no such exchanges may occur during a period beginning at the opening of business 15 Business Days before any selection of Securities of that
series to be redeemed and ending on the relevant Redemption Date; PROVIDED FURTHER that no Bearer Security delivered in exchange for a portion of a definitive Global Security shall be mailed or
otherwise delivered to any location in the United States. If a Registered Security is issued in exchange for any portion of a definitive Global Bearer Security after the close of business at the
office or agency where such exchange occurs on (1) any Regular Record Date and before the opening of business at such office or agency on the relevant Interest Payment Date, or (2) any
Special Record Date and before the opening of business at such office or agency on the related proposed date for payment of interest or Defaulted Interest, as the case may be, will not be payable on
such Interest Payment Date or proposed date for payment, as the case may be, in respect of such Registered Security, but will be payable on such Interest Payment Date or proposed date for payment, as
the case may be, only to the Person to whom interest in respect of such portion of such definitive Global Bearer Security is payable in accordance with the provisions of this Indenture. 

        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 for exchange shall (if so required by the Company or the Trustee or any transfer agent) be duly
endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar or any transfer agent, duly executed by the Holder thereof or his
attorney duly authorized in writing. 

        No
service charge shall be made for any registration of transfer or exchange of Securities, but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of Securities, other than exchanges pursuant to Section 4.3, Section 10.6 or Section 12.7
not involving any transfer. 

        The
Company shall not be required (1) to issue, register the transfer of or exchange Securities of any series during a period beginning at the opening of business 15 Business Days
before any selection of Securities of that series to be redeemed and ending at the close of business on (i) if Securities of the series are issuable only as Registered Securities, the day of
the mailing of the relevant notice of redemption and (ii) if Securities of the series are issuable as Bearer Securities, the day of the first publication of the relevant notice of redemption
or, if Securities of the series are also issuable as Registered Securities and there is no publication, the day of mailing of the relevant notice of redemption, or (2) to register the transfer
of or exchange any Registered Security so selected for redemption, in whole or in part, except the unredeemed portion of any Security being redeemed in part, or (3) to exchange any Bearer
Security so selected for redemption except that such a Bearer Security may be exchanged for a Registered Security of that series and like tenor; PROVIDED that such Registered Security shall be
simultaneously surrendered for redemption. 

26

 

        SECTION
4.5    MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES    

        If
any mutilated Security or Security with a mutilated Coupon appertaining to it is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and make
available for delivery in exchange therefor a new Security of the same series and of like tenor and principal amount and bearing a number not contemporaneously outstanding with Coupons corresponding
to the Coupons, if any, appertaining to the surrendered Security, PROVIDED that if such new Security is a Bearer Security, such Security shall be delivered only outside the United States. 

        If
there shall be delivered to the Company and the Trustee (1) evidence to their satisfaction of the destruction, loss or theft of any Security or Coupon and (2) 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 or
Coupon has been acquired by a bona fide purchaser, the Company shall execute and the Trustee shall authenticate and make available for delivery, in lieu of any such destroyed, lost or stolen Security
or in exchange for the Security to which a destroyed, lost or stolen Coupon appertains (upon surrender to the Trustee of such Security with all appurtenant Coupons not destroyed, lost or stolen), a
new Security of the same series and of like tenor and principal amount and bearing a number not contemporaneously outstanding, with Coupons corresponding to the Coupons, if any, appertaining to such
destroyed, lost or stolen Security or to the Security to which such destroyed, lost or stolen Coupon appertains. 

        In
case any such mutilated, destroyed, lost or stolen Security or Coupon has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new
Security or Coupon, pay such Security or Coupon; PROVIDED, HOWEVER, that principal of (and premium, if any) and any interest on Bearer Securities shall, except as otherwise provided in
Section 11.2, be payable only at an office or agency located outside the United States and, unless otherwise specified as contemplated by Section 2.2 or Section 3.1, as the case
may be, any interest on Bearer Securities shall be payable only upon presentation and surrender of the Coupons appertaining thereto. 

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

        Every
new Security or Coupon of any series issued pursuant to this Section in lieu of any mutilated, destroyed, lost or stolen Security or Coupon shall constitute an original additional
contractual obligation of the Company, whether or not the mutilated, 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 or Coupons 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 or Coupons. 

        SECTION
4.6    PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED    

        Unless
otherwise provided as contemplated by Section 2.2 or Section 3.1, as the case may be, with respect to any series of Securities, interest on any Registered Security
which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest. At the option of the Company, interest on the Registered Securities of any series that bears interest may be paid by
mailing a check to the address of any Holder as such address shall appear in the Security Register. 

27

 

        Any
interest on any Registered Security of any series which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called "Defaulted Interest")
shall forthwith cease to be payable to the Holder on the relevant Regular Record Date by virtue of having been such
Holder, and such Defaulted Interest may be paid by the Company, at its election in each case, as provided in Clause (1) or Clause (2) below: 

        (1)   The
Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Registered Securities of such series (or their respective Predecessor
Securities) are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify the
Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Security of such series and the date of the proposed payment, and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the
date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this Clause provided. Thereupon the Trustee shall
fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less
than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to each Holder of
Securities of such series at his address as it appears in the Security Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose names the Securities of such series (or their respective Predecessor
Securities) are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following Clause (2). 

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

        If
any installment of interest the Stated Maturity of which is on or prior to the Redemption Date for any Security called for redemption pursuant to Article Twelve is not paid or duly
provided for on or prior to the Redemption Date in accordance with the foregoing provisions of this Section, such interest shall be payable as part of the Redemption Price of such Securities. 

        Subject
to the foregoing provisions of this Section and Section 4.4, each Security delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of
any other Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security. 

        SECTION
4.7    PERSONS DEEMED OWNERS    

        Prior
to due presentment of a Registered Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name
such Registered Security is registered as the owner of such Registered Security for the purpose of receiving payment of principal of (and premium, if any) and (subject to Sections 4.4, 4.6 and 4.11
and unless otherwise specified as contemplated by Section 2.2 or Section 3.1, as the case may be) interest on such Security and for all other purposes whatsoever, whether or not such
Security is overdue, and neither 

28

 

the
Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary. 

        Title
to any Bearer Security and any Coupons shall pass by delivery. The Company, the Trustee and any agent of the Company or the Trustee may treat the Holder of any Bearer Security and
the Holder of any Coupon as the absolute owner of such Security or Coupon for the purpose of receiving payment thereof or on account thereof (unless otherwise specified as contemplated by
Section 2.2 or Section 3.1, as the case may be) and for all other purposes whatsoever, whether or not such Security or Coupon be overdue, and neither the Company, the Trustee nor any
agent of the Company or the Trustee shall be affected by notice to the contrary. 

        SECTION
4.8    CANCELLATION    

        All
Securities and Coupons surrendered for payment, redemption, registration of transfer or exchange or for credit against any sinking fund payment shall, if surrendered to any Person
other than the Trustee, be delivered to the Trustee. All Securities and Coupons so delivered shall be promptly canceled by the Trustee. All Bearer Securities and unmatured Coupons held by the Trustee
pending such cancellation shall be deemed to be delivered for cancellation for all purposes of this Indenture and the Securities. The Company may at any time deliver to the Trustee for cancellation
any Securities previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and may deliver to the Trustee (or to any other Person for delivery to the
Trustee) for cancellation any Securities previously authenticated hereunder which the Company has not issued and sold, and all Securities so delivered to the Trustee shall be promptly canceled by the
Trustee. No Securities shall be authenticated in lieu of or in exchange for any Securities canceled as provided in this Section, except as expressly permitted by this Indenture. All canceled
Securities and Coupons held by the Trustee shall be disposed of in a manner selected by the Trustee unless otherwise directed by a Company Order; PROVIDED, HOWEVER, that the Trustee may, but shall not
be required to, destroy such canceled Securities and Coupons. 

        SECTION
4.9    COMPUTATION OF INTEREST    

        Except
as otherwise specified as contemplated by Section 2.2 or Section 3.1, as the case may be, for Securities of any series, interest on the Securities of each series
shall be computed on the basis of a 360-day year of twelve 30-day months. 

        SECTION
4.10    CURRENCY AND MANNER OF PAYMENT IN RESPECT OF SECURITIES    

        The
provisions of this Section shall apply to the Securities of any series unless otherwise provided as contemplated by Section 2.2 or Section 3.1, as the case may be. 

        (a)   The
following payment provisions shall apply to any Registered Security of any series denominated in a Foreign Currency or any currency unit, including without
limitation, the ECU, except as provided in Subsection (b) below: 

        (1)   Except
as provided in Subsection (a)(2) or in Subsection (e) below, payment of principal of and premium, if any, on such Registered Security will be made at the
Place of Payment by delivery of a check in the currency or currency unit in which the Security is denominated on the payment date against surrender of such Registered Security, and any interest on any
Registered Security will be paid at the Place of Payment by mailing a check in the currency or currency unit in which such interest is payable (which shall be the same as that in which the Security is
denominated unless otherwise provided) to the Person entitled thereto at the address of such Person appearing on the Security Register. 

        (2)   Payment
of the principal of, premium, if any, and interest, if any, on such Security may also, subject to applicable laws and regulations, be made at such other place or
places as may be designated by the Company by any appropriate method. 

29

 

        (b)   With
respect to any Registered Security of any series denominated in any currency unit, including without limitation, the ECU, if the following provisions (or any
substitute therefor, or addition thereto, not inconsistent with this Indenture) are established pursuant to Section 2.2 or Section 3.1, as the case may be, and if the Company has not,
before the delivery of the election referred to in Clause (1) below, deposited funds or securities in compliance with Section 5.1 or Subsection (a)(1) or (if specified pursuant to
Section 2.2 or Section 3.1, as the case may be) Subsection (a)(2) of Section 5.3, the following payment provisions shall apply to any payment to be made prior to the giving of any
notice to Holders of any election to redeem pursuant to Section 12.4, except as otherwise provided in Subsections (e) and (f) below: 

        (1)   A
Holder of Securities of a series shall have the option to elect to receive payments of principal of, premium, if any, and interest, if any, on such Securities in a
currency or currency unit (including Dollars), other than that in which the Security is denominated, such election, as designated in the certificates for such Securities (or as provided by
Section 2.2 or Section 3.1, as the case may be, or a supplemental indenture hereto with respect to uncertificated securities), shall be made by delivering to the Paying Agent a written
election, to be in form and substance satisfactory to the Paying Agent, not later than the close of business in New York, New York, on the day 15 days prior to the applicable payment date. Such
election will remain in effect for such Holder until changed by the Holder by written notice to the Paying Agent (but any such written notice must be received by the Paying Agent not later than the
close of business on the day 15 days prior to the next payment date to be effective for the payment to be made on such payment date and no such change may be made with respect to payments to be
made on any Security of such series with respect to which notice of redemption has been given by the Company pursuant to Article Twelve). Any Holder of any such Security who shall not have delivered
any such election to the Paying Agent in accordance with this Subsection (b) will be paid the amount due on the applicable payment date in the relevant currency unit as provided in Subsection
(a) of this Section. Payment of principal of and premium, if any, shall be made on the payment date therefor against surrender of such Security. Payment of principal, premium, if any, and
interest, if any, shall be made at the Place of Payment by mailing at such location a check, in the applicable currency or currency unit, to the Holder entitled thereto at the address of such Holder
appearing on the Security Register. 

        (2)   Payment
of the principal of, premium, if any, and interest, if any, on such Security may also, subject to applicable laws and regulations, be made at such other place or
places as may be designated by the Company by any appropriate method. 

        (c)   Payment
of the principal of and premium, if any, and interest, if any, on any Bearer Security will be made, except as provided in Section 4.3 with respect to
temporary Global Securities, unless otherwise specified pursuant to Section 2.2 or Section 3.1, as the case may be, and/or Section 10.1(8), at such place or places outside the
United States as may be designated by the Company pursuant to any applicable laws or regulations by any appropriate method in the currency or currencies or currency unit or units in which the Security
is payable (except as provided in Subsection (e) below) on the payment date therefor against surrender of the Bearer Security, in the case of payment of principal and premium, if any, or the
relevant Coupon, in the case of payment of interest, if any, to a Paying Agent designated for such series pursuant to Section 11.2. 

        (d)   Not
later than ten Business Days (with respect to any Place of Payment) prior to each payment date, the Paying Agent shall deliver to the Company a copy of its record of
the respective aggregate amounts of principal of, premium, if any, and interest, if any, on the Securities to be made on such payment date, in the currency or currency unit in which each of the
Securities is payable, specifying the amounts so payable in respect of Registered Securities and Bearer Securities and in respect of the Registered Securities as to which the Holders of Securities
denominated in any currency unit shall have elected to be paid in another currency or currency unit as provided in Subsection 

30

 

(b) above.
If the election referred to in Subsection (b) above has been provided for pursuant to Section 2.2 or Section 3.1, as the case may be, and if at least one Holder
has made such election, then, not later than the fifth Business Day (with respect to any Place of Payment) prior to the applicable payment date the Company will deliver to the Trustee an Exchange Rate
Officers' Certificate in respect of the Dollar or Foreign Currency or currency unit payments to be made on such payment date. The Dollar or Foreign Currency or currency unit amount receivable by
Holders of Registered Securities denominated in a currency unit who have elected payment in another currency or currency unit as provided in Subsection (b) above shall be determined by the
Company on the basis of the applicable Official Currency Unit Exchange Rate set forth in the applicable Exchange Rate Officers' Certificate. 

        (e)   If
a Foreign Currency in which any Security is denominated or payable ceases to be recognized both by the government of the country which issued such currency and for
the settlement of transactions by public institutions of or within the international banking community, or if ECU ceases to be used within the European Monetary System, or if any other currency unit
in which a Security is denominated or payable ceases to be used for the purposes for which it was established, in each case as determined in good faith by the Company, then with respect to each date
for the payment of principal of, premium, if any, and interest, if any, on the applicable Security denominated or payable in such Foreign Currency, ECU or such other currency unit occurring after the
last date on which such Foreign Currency, ECU or such other currency unit was so used (the "Conversion Date"), the Dollar shall become the currency of payment for use on each such payment date (but
ECU or the Foreign Currency or the currency unit previously the currency of payment shall, at the Company's election, resume being the currency of payment on the first such payment date preceded by 15
Business Days during which the circumstances which gave rise to the Dollar becoming such currency no longer prevail, in each case as determined in good faith by the Company). The Dollar amount to be
paid by the Company to the Trustee and by the Trustee or any Paying Agent to the Holder of such Security with respect to such payment date shall be the Dollar Equivalent of the Foreign Currency or, in
the case of a currency unit, the Dollar Equivalent of the currency unit, as determined by the Exchange Rate Agent (which shall be delivered in writing to the Trustee not later than the fifth Business
Day prior to the applicable payment date) as of the Conversion Date or, if later, the date most recently preceding the payment date in question on which such determination is possible of performance,
but not more than 15 days before such payment date (such Conversion Date or date preceding a payment date as aforesaid being called the "Valuation Date") in the manner provided in Subsection
(g) or (h) below. 

        (f)    If
the Holder of a Registered Security denominated in a currency unit elects payment in a specified Foreign Currency or currency unit as provided for by Subsection
(b) and such Foreign Currency ceases to be used both by the government of the country which issued such currency and for the settlement of transactions by public institutions of or within the
international banking community, or if ECU ceases to be used within the European Monetary System, or if another currency unit ceases to be used for the purposes for which it is established, in each
case as determined in good faith by the Company, such Holder shall (subject to Subsection (e) above) receive payment in the currency unit in which the Security is denominated. Each payment
covered by an election pursuant to Subsection (b) above shall be governed by the provisions of this Subsection (f) (but, subject to any contravening valid election pursuant to Subsection
(b) above, the specified Foreign Currency or ECU or other currency unit shall, at the Company's election, resume being the currency or currency unit, as applicable, of payment with respect to
Holders who have so elected, but only with respect to payments on payment dates preceded by 15 Business Days during which the circumstances which gave rise to such currency unit becoming the currency
unit of payment, no longer prevail, in each case as determined in good faith by the Company). 

31

   
        (g)   The "Dollar Equivalent of the Foreign Currency" shall be determined by the Exchange Rate Agent as of each Valuation Date and shall be obtained by converting the
specified Foreign Currency into Dollars at the Market Exchange Rate on the Valuation Date. 

        (h)   The
"Dollar Equivalent of the Currency Unit" shall be determined by the Exchange Rate Agent as of each Valuation Date and shall be the sum obtained by adding together
the results obtained by converting the Specified Amount of each Component Currency into Dollars at the Market Exchange Rate on the Valuation Date for such Component Currency. 

        (i)    For
purposes of this Section 4.10 the following terms shall have the following meanings: 

        A
"Component Currency" shall mean any currency which, on the Conversion Date, was a component currency of the relevant currency unit, including without limitation, the ECU. 

        A
"Specified Amount" of a Component Currency shall mean the number of units (including decimals) which such Component Currency represented in the relevant currency unit, on the
Conversion Date or, if ECU and such currency unit is being used for settlement of transactions by public institutions of or within the European Communities or was so used after the Conversion Date,
the Valuation Date or the last date the currency unit was so used, whichever is later. If after such date the official unit of any Component Currency is altered by way of combination or subdivision,
the Specified Amount of such Component Currency shall be divided or multiplied in the same proportion. If after such date two or more Component Currencies are consolidated into a single currency, the
respective Specified Amounts of such Component Currencies shall be replaced by an amount in such single currency equal to the sum of the respective Specified Amounts of such consolidated Component
Currencies expressed in such single currency, and such amount shall thereafter be a Specified Amount and such single currency shall thereafter be a Component Currency. If after such date any Component
Currency shall be divided into two or more currencies, the Specified Amount of such Component Currency shall be replaced by specified amounts of such two or more currencies, the sum of which, at the
Market Exchange Rate of such two or more currencies on the date of such replacement, shall be equal to the Specified Amount of such former Component Currency and such amounts shall thereafter be
Specified Amounts and such currencies shall thereafter be Component Currencies. 

        "Market
Exchange Rate" shall mean, as of any date, for any currency or currency unit the noon Dollar buying rate for that currency or currency unit, as the case may be, for cable
transfers quoted in New York City on such date as certified for customs purposes by the Federal Reserve Bank of New York or such other rate as may be established pursuant to Section 2.2 or
Section 3.1, as the case may be. If such
rates are not available for any reason with respect to one or more currencies or currency units for which an Exchange Rate is required, the Exchange Rate Agent shall use, in its sole discretion and
without liability on its part, such quotation of the Federal Reserve Bank of New York as of the most recent available date, or quotations from one or more major banks in New York City or in the
country of issue of the currency or currency unit in question, or such other quotations as the Exchange Rate Agent shall deem appropriate. Unless otherwise specified by the Exchange Rate Agent, if
there is more than one market for dealing in any currency or currency unit by reason of foreign exchange regulations or otherwise, the market to be used in respect of such currency or currency unit
shall be that upon which a nonresident issuer of securities designated in such currency or currency unit would, as determined in its sole discretion and without liability on the part of the Exchange
Rate Agent, purchase such currency or currency unit in order to make payments in respect of such securities. 

        All
decisions and determinations of the Exchange Rate Agent regarding the Dollar Equivalent of the Foreign Currency, the Dollar Equivalent of the Currency Unit and the Market Exchange
Rate shall be in its sole discretion and shall, in the absence of manifest error, be conclusive for all purposes and irrevocably binding upon the Company and all Holders of the Securities and Coupons
denominated or 

32

 

payable
in the relevant currency or currency units. In the event that a Foreign Currency ceases to be used both by the government of the country which issued such currency and for the settlement of
transactions by public institutions of or within the international banking community, the Company, after learning thereof, will immediately give notice thereof to the Trustee (and the Trustee will
promptly thereafter give notice in the manner provided in Section 1.6 to the Holders) specifying the Conversion Date. In the event the ECU ceases to be used within the European Monetary System,
or any other currency unit in which Securities or Coupons are denominated or payable, ceases to be used for the purposes for which it was established, the Company, after learning thereof, will
immediately give notice thereof to the Trustee (and the Trustee will promptly thereafter give notice in the manner provided in Section 1.6 to the Holders) specifying the Conversion Date. Any
actions taken pursuant to the parentheticals at the end of the first sentence of Section 4.10(e) and at the end of Section 4.10(f) shall be promptly set forth in like notices from the
Company to the Trustee and then from the Trustee to the Holders (which notice may be mailed with payment to the Holders). 

        Subject
to the provisions of Sections 7.1 and 7.3, the Trustee shall be fully justified and protected in relying and acting upon information received by it from the Company and the
Exchange Rate Agent, and shall not otherwise have any duty or obligation to determine such information independently. 

        SECTION
4.11    SECURITIES IN GLOBAL FORM    

        (a)   If
Securities of a series are issuable in global form, as specified as contemplated by Section 2.2 or Section 3.1, as the case may be, then,
notwithstanding Subsection (a)(8) of Section 2.2 or Subsection (b)(9) of Section 3.1, as the case may be, and the provisions of Section 4.1, such Security shall represent such of
the Outstanding Securities of such series as shall be specified therein and may provide that it shall represent the aggregate amount of Outstanding Securities from time to time endorsed thereon and
that the aggregate amount of Outstanding Securities represented thereby may from time to time be reduced or increased to reflect exchanges. Any endorsement of a Global Security to reflect the amount,
or any increase or decrease in the amount, of Outstanding Securities represented thereby shall be made by the Trustee in such manner and upon instructions given by such Person or Persons as shall be
specified therein or in the Company Order (or, in the case of Medium-Term Debt Securities, the Medium-Term Debt Securities Certificate) to be delivered to the Trustee pursuant
to Section 4.2 or Section 4.3. Subject to the provisions of Section 4.2 and, if applicable, Section 4.3, the Trustee shall deliver and redeliver any Security in definitive
global bearer form in the manner and upon written instructions given by the Person or Persons specified therein or in the applicable Company Order (or, in the case of Medium-Term Debt
Securities, the Medium-Term Debt Securities Certificate). If a Company Order (or, in the case of Medium-Term Debt Securities, Medium-Term Debt Securities
Certificate) pursuant to Section 4.2 or 4.3 has been, or simultaneously is, delivered, any instructions by the Company with respect to endorsement of delivery or redelivery of a Security in
global form shall be in writing but need not comply with Section 1.2 and need not be accompanied by an Opinion of Counsel. 

        (b)   Any
Global Security shall be registered in the name of the Depositary for such Global Security or Securities or its nominee, shall be delivered by the Trustee or its
agent to the Depositary or pursuant to the Depositary's instruction and shall bear a legend substantially to the following effect: "Unless and until it is exchanged in whole or in part for the
individual Securities represented hereby, this Global Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the
Depositary." 

        (c)   Notwithstanding
any other provisions of this Section 4.11 or of Section 4.4 and subject to the provisions of Subsection (d) below, unless the terms
of a Global Security expressly permit such Global Security to be exchanged in whole or in part for individual Securities, a Global Security may be transferred, in whole but not in part and in the
manner provided in Section 4.4, only to a nominee of 

33

 

the
Depositary for such Global Security, or to the Depositary, or a successor Depositary for such Global Security selected or approved by the Company, or to a nominee of such successor Depositary. 

        (d)   (1)
If at any time the Depositary for a Global Security notifies the Company that it is unwilling or unable to continue as Depositary for such Global Security or if at
any time the Depositary for the Securities for such series ceases to be a clearing agency registered under the Exchange Act or other applicable statute or regulation, the Company shall appoint a
successor Depositary with respect to such Global Security. If a successor Depositary for such Global Security is not appointed by the Company within 90 days after the Company receives such
notice or becomes aware of such ineligibility, the Company will execute, and the Trustee or its agent, upon receipt of a company Request for the authentication and delivery of individual Securities of
such series in exchange for such Global Security, will authenticate and deliver, individual Securities of such series of like tenor and terms in an aggregate principal amount equal to the principal
amount of the Global Security in exchange for such Global Security. 

        (2)   The
Company may at any time and in its sole discretion determine that the Securities of any series or portion thereof issued or issuable in the form of one or more
Global Securities shall no longer be represented by such Global Security or Securities. In such event the Company will execute, and the Trustee, upon receipt of a Company Request for the
authentication and delivery of individual Securities of such series in exchange in whole or in part for such Global Security, will authenticate and deliver individual Securities of such series of like
tenor and terms in definitive form in an aggregate principal amount equal to the principal amount of such Global Security or Securities representing such series or portion thereof in exchange for such
Global Security or Securities. 

        (3)   If
specified by the Company pursuant to Sections 2.2 and 3.1 with respect to Securities issued or issuable in the form of a Global Security, the Depositary for such
Global Security may surrender such Global Security in exchange in whole or part for individual Securities of such series of like tenor and terms in definitive form on such terms as are acceptable to
the Company and such Depositary. Thereupon the Company shall execute, and the Trustee or its agent shall authenticate and deliver, without service charge, (i) to each Person specified by such
Depositary a new Security or Securities of the same series of like tenor and terms and of any authorized denomination as requested by such Person in aggregate principal amount equal to and in exchange
for such Person's beneficial interest in the Global Security; and (ii) to such Depositary a new Global Security of like tenor and terms and in an authorized denomination equal to the
difference. If any, between the principal amount of the surrendered Global Security and the aggregate principal amount of Securities delivered to the Holders thereof. 

        (4)   In
any exchange provided for in any of the preceding three Clauses, the Company will execute and the Trustee or its agent will authenticate and deliver individual
Securities in definitive registered form in authorized denominations. Upon the exchange of the entire principal amount of a Global Security for individual Securities, such Global Security shall be
cancelled by Trustee or its agent. Except as provided in the preceding Clause, Securities issued in exchange for a Global Security pursuant to this Section shall be registered in such names and in
such authorized denominations as the Depositary for such Global Security, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee or the Security
Registrar. The Trustee or the Security Registrar shall deliver such Securities to the Persons in whose names such Securities are so registered. 

        (e)   The
provisions of the last sentence of the fifth paragraph of Section 4.2 shall apply to any Security represented by a Global Security if such Security was never
issued and sold by the Company and the Company delivers to the Trustee the Global Security together with written instructions (which need not comply with Section 1.2 and need not be accompanied
by an Opinion of Counsel) with regard to the reduction in the principal amount of Securities represented thereby, together with the written statement contemplated by the last sentence of the fifth
paragraph of Section 4.2. 

34

 

        (f)    Notwithstanding
the provisions of Section 4.6, unless otherwise specified as contemplated by Section 2.2 or Section 3.1, as the case may be, payment
of principal of and any premium and any interest on any Global Security shall be made to the Person or Persons specified therein. 

        (g)   Notwithstanding
the provisions of Section 4.7 and except as provided in the preceding Subsection, the Company, and any agent of the Company may, and the Trustee
and any agent of the Trustee, at the direction of the Company, may treat a Person as the Holder of such principal amount of Outstanding Securities represented by a definitive Global Security as shall
be specified in a written statement of the Holder of such definitive Global Security or, in the case of a definitive Global Security in bearer form, of Euroclear or CEDEL which is produced to the
Trustee by such Person; PROVIDED, HOWEVER, that none of the Company, the Trustee, the Security Registrar or any Paying Agent shall have any responsibility or liability for any aspect of the records
relating to or payments made on account of beneficial ownership interests in a Security in global form or for maintaining, supervising or reviewing any records relating to such beneficial ownership
interests. 

        SECTION
4.12    CUSIP, ISIN AND COMMON CODE NUMBERS    

        The
Company in issuing the Securities may use a "CUSIP," "ISIN" or "Common Code" number, and if so, the Trustee shall use the CUSIP, ISIN and Common Code number in notices of redemption
or exchange as a convenience to Holders; PROVIDED, HOWEVER, that any such notice may state that no representation is made as to the correctness or accuracy of the CUSIP, ISIN and Common Code number
printed in the notice or on the Securities, and the reliance may be placed only on the other identification numbers printed on the Securities. The Company shall promptly notify the Trustee of any
change in any CUSIP, ISIN or Common Code number. 

ARTICLE FIVE  

 SATISFACTION AND DISCHARGE  

        SECTION
5.1    SATISFACTION AND DISCHARGE OF INDENTURE IN RESPECT OF ANY SERIES OF SECURITIES    

        This
Indenture shall upon Company Request cease to be of further effect with respect to a series of Securities (except as to any surviving rights of (as applicable) registration of
transfer or exchange of Securities and Coupons, if any, of such series herein expressly provided for), and the Trustee, at the request and expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture with respect to such series, when 

        (1)   either

        (i)    all
Securities and Coupons, if any, of such series theretofore authenticated and delivered (other than (A) Securities and Coupons of such series which have been
destroyed, lost or stolen and which have been replaced or paid as provided in Section 4.5 and (B) Securities and Coupons of such series for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 11.3) have been delivered to the
Trustee for cancellation; or 

        (ii)   all
such Securities and Coupons of such series not theretofore delivered to the Trustee for cancellation 

        (A)  have
become due and payable, or 

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

35

 

        (C)  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, 

and
the Company, in the case of (A), (B) or (C) above, has deposited or caused to be deposited with the Trustee as trust funds in trust for the purpose an amount in the currency or
currency unit in which such Securities and Coupons of such series are payable sufficient (in the opinion of a nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee) without consideration of any reinvestment and after payment of all taxes or other charges and assessments in respect thereof payable by the Trustee to
pay and discharge the entire indebtedness on such Securities and Coupons of such series not theretofore delivered to the Trustee for cancellation, for principal (and premium, if any) and interest, if
any, to the date of such deposit (in the case of Securities and Coupons of such series which have become due and payable) or to the Stated Maturity or Redemption Date, as the case may be; 

        (2)   the
Company has paid or caused to be paid all other sums payable hereunder by the Company with respect to such series of Securities; and 

        (3)   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 the Securities of the series under this Indenture have been complied with. 

        Notwithstanding
the satisfaction and discharge of this Indenture with respect to a series, the obligations of the Company in Sections 4.4, 4.5, 5.2, 5.4, 7.7 and 11.2, the Company's
rights of optional redemption, if any, the obligations of the Trustee to any Authenticating Agent under Section 7.15 and, if money shall have been deposited with the Trustee pursuant to
Subsection (1)(B) of this Section 5.1, the obligations of the Trustee under Section 5.2 and the last paragraph of Section 11.3 shall survive. 

        SECTION
5.2    APPLICATION OF TRUST MONEY    

        Subject
to the provisions of the last paragraph of Section 11.3, all money deposited with the Trustee pursuant to Sections 5.1 and 5.3 (and all money received as payment in
connection with U.S. Government Obligations and Foreign Government Securities deposited pursuant to Section 5.3) shall be held in trust and applied by it, in accordance with the provisions of
the Securities and Coupons, if any, 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 premium, if any) and interest, if any, for whose payment such money has been deposited with the Trustee. 

        SECTION
5.3    SATISFACTION, DISCHARGE AND DEFEASANCE OF SECURITIES OF ANY SERIES    

        (a)   If
this Section is specified, as contemplated by Section 2.2 or Section 3.1, as the case may be, to be applicable to Securities and Coupons, if any, of any
series, at the Company's option, either 

        (1)   the
Company will be deemed to have been Discharged (as defined below) from its obligations with respect to Securities and Coupons, if any, of such series or 

        (2)   the
Company will cease to be under any obligation with respect to such series to comply with any term, provision or condition set forth in (i) Sections 9.1 and
9.2 or (ii) the instrument or instruments setting forth the terms, provisions or conditions of such series pursuant to Section 2.2 or Section 3.1, as the case may be (PROVIDED, in
the case of this Clause (ii), that such instrument or instruments specify which terms, provisions or conditions, if any, are subject to this Subsection (a)(2) and that no such instrument may
specify that the Company may cease to comply with any obligations as to which it may not be Discharged pursuant to the definition of "Discharged"). 

36

 

        (b)   A
Discharge pursuant to Subsection (a)(1) above shall be effective with respect to the Securities and Coupons, if any, of such series after the applicable conditions set
forth below in (1) and either Clause (2) or Clause (3) have been satisfied, and the Company's release from its obligations to comply with certain obligations with respect to such
series pursuant to Subsection (a)(2) above shall be effective with respect to the Securities and Coupons, if any, of such series on the first day after the applicable conditions set forth below in
Clause (1) and either Clause (2) or Clause (3) have been satisfied: 

        (1)   the
Company has: 

        (i)    paid
or caused to be paid all other sums payable with respect to the Outstanding Securities and Coupons, if any, of such series (in addition to any required under
Subsection (b)(2) or (b)(3)); and 

        (ii)   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 the entire indebtedness on all Outstanding Securities and Coupons, if any, of any such series have been complied with; 

        (2)   (i) the
Company shall have deposited or caused to be deposited irrevocably with the Trustee as a trust fund specifically pledged as security for, and dedicated
solely to, the benefit of the Holders of the Securities and Coupons, if any, of such series (A) money in an amount (in such currency, currencies or currency unit or units in which any
Outstanding Securities and Coupons, if any, of such series are payable) or (B) in the case of Securities and Coupons, if any, denominated in Dollars, U.S. Government Obligations or, in the case
of Securities and Coupons, if any, denominated in a Foreign Currency, Foreign Government Securities, which through the payment of interest and principal in respect thereof in accordance with their
terms will provide, not later than one day before the due date of any payment of principal (including any premium) and interest, if any, under the Securities and Coupons, if any, of such series, money
in an amount or (C) a combination of Clauses (A) and (B), which in any case of Clauses (A), (B) and (C) is sufficient (in the opinion with respect to Clauses (B) and
(C) of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee) to pay and discharge each installment of principal
of (including premium, if any, on), and interest, if any, on, the Outstanding Securities and Coupons, if any, of such series on the dates such installments of interest or principal are due (either at
maturity, upon redemption or otherwise, as the case may be) in the currency, currencies or currency unit or units, in which such Securities and Coupons, if any, are payable; 

        (ii)   (A)
no Event of Default or event (including such deposit) which with notice or lapse of time would become an Event of Default shall have occurred and be continuing on
the date of such deposit and after giving effect to such deposit, (B) no Event of Default as defined in Clause (5) or Clause (6) of Section 6.1, or event which with notice
or lapse of time or both would become an Event of Default under either such clause, shall have occurred within 90 days after the date of such deposit, and (C) such deposit and the
related intended consequence under Subsection (a)(1) or Subsection (a)(2) above will not result in any default or event of default under any material indenture, agreement or other instrument binding
upon the Company or any Subsidiary; 

        (iii)  (A)
in the event of the legal defeasance option, the Company shall have delivered to the Trustee an Opinion of Counsel stating that (x) the Company has received
from the Internal Revenue Service a ruling, or (y) since the date of this Indenture 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 shall confirm that, the Holders of Securities of such series will not recognize income, gain or loss for Federal income tax purposes as a result of such
defeasance and will be subject to Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such defeasance had not occurred; 

37

  

        (B)  in
the event of the covenant defeasance option, the Company shall have delivered to the Trustee an Opinion of Counsel to the effect that the Holders of Securities of
such series will not recognize income, gain or loss for Federal income tax purposes as a result of such covenant defeasance and will be subject to Federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such covenant defeasance had not occurred; and 

        (3)   the
Company has properly fulfilled such other means of satisfaction and discharge as is specified, as contemplated by Section 2.2 or Section 3.1, as the
case may be, to be applicable to the Securities and Coupons, if any, of such series. 

        (c)   Any
deposits with the Trustee referred to in Subsection (b)(2)(i) above will be made under the terms of an escrow trust agreement in form and substance
satisfactory to the Trustee. If any Outstanding Securities and Coupons, if any, of such series are to be redeemed prior to their Stated Maturity, whether pursuant to any mandatory redemption
provisions or in accordance with any mandatory sinking fund requirement, the applicable escrow trust agreement will provide therefor and the Company will make arrangements for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Company. 

        SECTION
5.4    REINSTATEMENT    

        If
the Trustee is unable to apply any money, U.S. Government Obligations or Foreign Government Securities in accordance with Section 5.1 by reason of any legal proceeding or by
reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Company's obligations under this Indenture and the
Securities and Coupons, if any, of such series shall bc revived and reinstated as though no deposit had occurred pursuant to Section 5.1 until such time as the Trustee is permitted to apply all
such money, U.S. Government Obligations or Foreign Government Securities in accordance with this Article Five; PROVIDED, HOWEVER, that if the Company has made any payment of interest on or principal
of (and premium, if any) on any Securities and Coupons, if any, of such series because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such
series of Securities and Coupons, if any, to receive such payment from the money, U.S. Government Obligations or Foreign Government Securities held by the Trustee. 

        SECTION
5.5    DEFINITIONS    

        The
following terms, as used in this Article, shall have the following meanings: 

        "Discharged"
means that the Company will be deemed to have paid and discharged the entire indebtedness represented by, and obligations under, the Securities and Coupons, if any, of the
series as to which this Section is specified as applicable as aforesaid and to have satisfied all the obligations under this Indenture relating to the Securities and Coupons, if any, of such series
(and the Trustee, at the request and expense of the Company, will execute proper instruments acknowledging the same), except (1) the rights of Holders thereof to receive, from the trust fund
described in Section 5.3(b)(2)(i), payment of the principal of (and premium, if any) and the interest, if any, on such Securities and Coupons, if any, when such payments are due, (2) the
Company's obligations with respect to such Securities and Coupons, if any, under Sections 4.4 and 4.5 (insofar as applicable to Securities of such series), 5.2, 5.4, 11.2 and 11.3 (last paragraph
only) the Company rights of optional redemption, if any, and the Company's obligations to the Trustee under Section 7.7, (3) the rights of Holders of Securities of any series with
respect to the currency or currency units in which they are to receive payments of principal, premium, if any, and interest, if any, and (4) the rights, powers, trusts, duties and immunities of
the Trustee hereunder, will survive such discharge. The Company will reimburse the trust fund for any loss suffered by it as a result of any tax, fee or other charge imposed on or assessed against
deposited U.S. Government Obligations or Foreign Government Securities, as the case may be, or any principal or interest paid 

38

 

on
such obligations, and, subject to the provisions of Section 7.7, will indemnify the Trustee against any claims made against the Trustee in connection with any such loss. 

        "Foreign
Government Securities" means, with respect to Securities and Coupons, if any, of any series that are denominated in a Foreign Currency, securities that are (1) direct
obligations of the government that issued or caused to be issued such currency for the payment of which obligations its full faith and credit is pledged or (2) obligations of a Person
controlled or supervised by and acting as an agency or instrumentality of such government the timely payment of which is unconditionally guaranteed as a full faith and credit obligation by such
government, which, in either case under Clause (1) or Clause (2), are not callable or redeemable at the option of the issuer thereof. 

        "U.S.
Government Obligations" means securities that are (1) direct obligations of the United States of America for the payment of which its full faith and credit is pledged or
(2) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America the timely payment of which is unconditionally guaranteed as a
full faith and credit obligation of the United States of America, which, in either case under Clause (1) or Clause (2), are not callable or redeemable at the option of the issuer
thereof, and will also include a depository receipt issued by a bank or trust company as custodian with respect to any such U.S. Government Obligation or a specific payment of interest on or principal
of any such U.S. Government Obligation held by such custodian for the account of the holder of a depository receipt, PROVIDED that (except as required by law) such custodian is not authorized to make
any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the U.S. Government Obligation or the specific payment of
interest on or principal of the U.S. Government Obligation evidenced by such depository receipt. 

ARTICLE SIX  

 REMEDIES  

        SECTION
6.1    EVENTS OF DEFAULT    

        "Event
of Default" with respect to any series of Securities means each one of the events specified below in this Section 6.1, unless it is either inapplicable to a particular
series or is specifically deleted or modified in or pursuant to the supplemental indenture, Board Resolution or Medium-Term Debt Securities Certificate establishing such series of
Securities: 

        (1)   default
in the payment of any installment of interest upon any of the Securities of such series, as and when the same shall become due and payable, and continuance of
such default for a period of 30 days; or 

        (2)   default
in the payment of the principal of or premium, if any, on any of the Securities of such series, as and when the same shall become due and payable (subject to
Clause (3) below) either at maturity, upon redemption, by declaration or otherwise; or 

        (3)   default
in the making of any payment for a sinking, purchase or analogous fund provided for in respect of such series of Securities, as and when the same shall become
due and payable, and continuance of such default for a period of 30 days; or 

        (4)   failure
on the part of the Company duly to observe or perform any other of the covenants or agreements on the part of the Company in respect of the Securities of such
series, or in this Indenture contained with respect to such series, for a period of 90 days after the date on which written notice of such failure requiring the Company to remedy the same and
stating that such notice is a "Notice of Default" hereunder, shall have been given, by registered or certified mail, to 

39

 

the
Company by the Trustee, or to the Company and the Trustee by the holders of at least 25% in aggregate principal amount of the Securities of such series at the time Outstanding; or 

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

        (6)   commencement
by the Company of a voluntary case under any applicable Federal, state or foreign bankruptcy, insolvency or other similar law now or hereafter in effect, or
consent by the Company to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of the Company or for any
substantial part of its property, or any general assignment by the Company for the benefit of creditors, or failure by the Company generally to pay its debts as they become due, or the taking by the
Company of any corporate action in furtherance of any of the foregoing; or 

        (7)   any
other Event of Default provided with respect to Securities of that series. 

        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, then in each and every such case, either the Trustee or the Holders of
not less than 25% in aggregate principal amount of the Outstanding Securities of that series (except in the case of an Event of Default specified in Clause (5) or Clause (6) of
Section 6.1) may declare the principal amount (or, if the Securities of that series are Original Issue Discount Securities, such portion of the principal amount as may be specified in the terms
of that series) of all of the Securities of that series, together with accrued interest thereon, if any, 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), together with accrued interest thereon, if any, shall become immediately due and payable. If an Event of
Default specified in Clause (5) or Clause (6) of Section 6.1 occurs, such principle amount 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 Securities of 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 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 

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

        (i)    all
overdue interest on all Securities of that series, 

        (ii)   the
principal of (and premium, if any, on) 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 without duplication of any amount thereof paid or deposited pursuant to Clause (i) above or Clause (iii) below, 

        (iii)  to
the extent that payment of such interest is lawful, interest upon overdue interest at the rate or rates prescribed therefor in such Securities without duplication
of any amount thereof paid or deposited pursuant to Clause (i) above or Clause (ii) above, and 

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

40

 

and 

        (2)   all
Events of Default with respect to Securities of that series, other than the nonpayment 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: 

        (1)   default
shall be made in the payment of any installment of interest on any Security or Coupon as and when the same shall become due and payable, and such default shall
have continued for the period of grace provided for with respect to such Security or Coupon, as the case may be, 

        (2)   default
shall be made in the payment of the principal of or premium, if any, on any Security as and when the same shall have become due and payable (subject to
Clause (3) below), whether at maturity of the Security or upon redemption or by declaration or otherwise, and such default shall have continued for any period of grace provided for with respect
to such Security, or 

        (3)   default
shall be made in the payment for any sinking, purchase or analogous fund provided for in respect of any Security as and when the same shall become due and
payable, and such default shall have continued for any period of grace provided for with respect to such Security, 

the
Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Securities and Coupons, if any, the whole amount then due and payable on such Securities and Coupons, if
any, for principal (and premium, if any) and interest, if any, and, to the extent that payment of such interest shall be legally enforceable, interest on any overdue principal (and premium, if any)
and on any overdue installments of interest, if any, at the rate or rates prescribed therefor in such Securities and Coupons, if any, 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 Coupons,
if any, and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities and Coupons, if any,
wherever situated. 

        If
an Event of Default with respect to Securities and Coupons, if any, 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 and/or Coupons 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 

41

 

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, 

        (1)   to
file and prove a claim for the whole amount of principal (and premium, if any) and interest, if any, 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 

        (2)   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 and/or Coupons 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;
PROVIDED that the Trustee may, on the behalf of the Holders, vote for the election of a trustee in bankruptcy or similar official, or be a member of a creditors' or similar committee. 

        SECTION
6.5    TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES    

        All
rights of action and claims under this Indenture or the Securities and Coupons, if any, may be prosecuted and enforced by the Trustee without the possession of any of the Securities
or Coupons, if any, 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 and Coupons, if any, 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 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 premium, if any) or interest, upon presentation of the Securities and Coupons, if any, 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; 

        SECOND:
to the payment of the amounts then due and unpaid for principal of (and premium, if any) and interest on the Securities and Coupons, if any, 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 and/or Coupons for principal (and
premium, if any) and interest, if any, respectively; and 

        THIRD:
the balance, if any, to the Person or Persons entitled thereto. 

42

 

        SECTION
6.7    LIMITATION ON SUITS    

        No
Holder of Securities 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: 

        (1)   an
Event of Default with respect to Securities of such series shall have occurred and be continuing and such Holder has previously given written notice to the Trustee of
such continuing Event of Default; 

        (2)   the
Holders of not less than 25% in principal amount of the Outstanding Securities of that series or, in the case of an Event of Default specified in Clause (5)
or Clause (6) of Section 6.1, of all series (voting as a class) with respect to which such Event of Default has occurred and is continuing, 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; 

        (3)   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; 

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

        (5)   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 or, in the case of an Event of Default specified in Clause (5) or Clause (6) of Section 6.1, of all series (voting as a class) with
respect to which such Event of Default has occurred and is continuing; 

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 (including without
limitation the provisions of Section 6.12) 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, PREMIUM AND INTEREST    

        Notwithstanding
any other provision in this Indenture, the Holder of any Security or any Coupon shall have the right, which is absolute and unconditional, to receive payment of the
principal of (and premium, if any) and (subject to Section 4.6) interest, if any, on such Security or Coupon on the Stated Maturity or Maturities expressed in such Security (or, in the case of
redemption, on the Redemption Date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder. 

        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 and 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 and/or Coupons, if any, in the last paragraph of
Section 4.5, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any 

43

 

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 and/or Coupons 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. Subject to the provisions of Section 6.7, every right and remedy given by this Article 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 not less than 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; PROVIDED that 

        (1)   such
direction shall not be in conflict with any rule of law or with this Indenture; 

        (2)   the
Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction; and 

        (3)   subject
to the provisions of Section 7.1, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a
Responsible Trust Officer or Officers of the Trustee, determine that the action so directed would involve the Trustee in personal liability. 

        SECTION
6.13    WAIVER OF PAST DEFAULTS    

        The
Holders of not less than a majority in principal amount of the Outstanding Securities of any series may on behalf of the Holders of all the Securities of such series waive any past
default hereunder with respect to such series and its consequences, except a default 

        (1)   in
the payment of the principal of (or premium, if any) or interest, if any, on any Security of such series or in the payment of any sinking or purchase fund or
analogous obligation with respect to the Securities of such series, or 

        (2)   in
respect of a covenant or provision hereof which under Article Ten cannot be modified or amended without the consent of the Holder of each Outstanding Security of such
series affected. 

        Upon
any such waiver, such default shall cease to exist with respect to such series, and any Event of Default with respect to such series arising therefrom shall be deemed to have been
cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon. 

        SECTION
6.14    UNDERTAKING FOR COSTS    

        All
parties to this Indenture agree, and each Holder of a Security and/or Coupon by his or her 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 and expenses,
against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any
suit instituted by the Company, to any suit instituted by 

44

 

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 premium, if any) or interest, if any, on any Security or the payment of interest on any Coupon on or after the
Stated Maturity or Maturities expressed in such Security (or, in the case of redemption, on or after the Redemption Date). 

        SECTION
6.15    WAIVER OF USURY, STAY OR EXTENSION LAWS    

        The
Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage
of, any usury, stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and the Company (to the extent that
it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not 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 had been enacted. 

ARTICLE SEVEN  

 THE TRUSTEE  

        SECTION
7.1    CERTAIN DUTIES AND RESPONSIBILITIES.    

        (a)   Except
during the continuance of an Event of Default, 

        (1)   the
Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read
into this Indenture against the Trustee; and 

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

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

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

        (1)   this
Subsection shall not be construed to limit the effect of Subsection (a) or Subsection (b) of this Section; 

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

        (3)   the
Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of a majority
in principal amount of the Outstanding Securities of any series, given pursuant to Section 6.12, 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; and 

45

  

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

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

        SECTION
7.2    NOTICE OF DEFAULTS    

        Within
90 days after the occurrence of any default hereunder with respect to the Securities of any series, the Trustee shall transmit to the Holders of Securities of such series
notice as provided in Section 1.6 of such default hereunder known to the Trustee, unless such default shall have been cured or waived; PROVIDED, HOWEVER, that, except in the case of a default
in the payment of the principal of (or premium, if any, on) or interest on any Security of such series or in the payment of any sinking fund installment or analogous obligation with respect to
Securities of such series, the Trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee or a trust committee of directors or Responsible
Trust Officers of the Trustee in good faith determines that the withholding of such notice is in the interest of the Holders of Securities of such series; PROVIDED FURTHER that in the case of any
default of the character specified in Section 6.1(4) with respect to Securities of such series, no such notice to Holders shall be given until at least 90 days after the occurrence of
such default. For the purpose of this Section, the term "default" means any event which is, or after notice or lapse of time or both would become, an Event of Default with respect to Securities of
such series. 

        SECTION
7.3    CERTAIN RIGHTS OF TRUSTEE    

        Subject
to the provisions of Section 7.1: 

        (1)   the
Trustee may rely and shall be protected in acting or refraining from acting in reliance upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, coupon, other evidence of indebtedness or other paper or document reasonably believed by it to be genuine and to have been signed or
presented by the proper party or parties; 

        (2)   any
request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order and any resolution of the Board of
Directors may be sufficiently evidenced by a Board Resolution; 

        (3)   whenever
in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, rely upon an Officers' Certificate; 

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

        (5)   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
pursuant to this Indenture, unless such Holders shall have offered to the Trustee reasonable security and indemnity against the costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction; 

46

 

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

        (7)   the
Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or counsel, and the Trustee shall
not be responsible for any misconduct or negligence on the part of any agent or counsel appointed with due care (and, in the case of any agent, with the prior written consent of the Company; and 

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

        SECTION
7.4    NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES    

        The
recitals contained herein and in the Securities, except the Trustee's certificates of authentication, shall be taken as the statements of the Company, and the Trustee assumes no
responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities. Neither the Trustee nor any Authenticating Agent
shall be accountable for the use or application by the Company of Securities or the proceeds thereof. 

        SECTION
7.5    MAY HOLD SECURITIES.    

        The
Trustee, any Paying Agent, any Security Registrar or any other agent of the Company, in its individual or any other capacity, may become the owner or pledgee of Securities or
warrants to purchase Securities and, subject to Sections 7.8 and 7.13, may otherwise deal with the Company with the same rights it would have if it were not Trustee, Paying Agent, Security Registrar
or such other agent. 

        SECTION
7.6    MONEY HELD IN TRUST.    

        Except
as provided in Section 1.15, money held by the Trustee or any Paying Agent in trust hereunder need not be segregated from other funds except to the extent required by law.
The Trustee or any Paying Agent shall be under no liability for interest on any money received by it hereunder except as otherwise agreed with the Company. 

        SECTION
7.7    COMPENSATION AND REIMBURSEMENT.    

        The
Company agrees: 

        (1)   to
pay to the Trustee from time to time in Dollars such compensation as shall be agreed to in writing between the Company and the Trustee for all services rendered by it
hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust); 

        (2)   except
as otherwise expressly provided herein, to reimburse the Trustee in Dollars upon its request for all reasonable expenses, disbursements and advances incurred or
made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the expenses and
disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence or bad faith; and 

        (3)   to
indemnify the Trustee in Dollars for, and to hold it harmless against, any and all loss, liability, damage, claim or expense, including taxes (other than taxes based
upon, or measured or 

47

 

determined
by, the income of the Trustee) incurred without negligence or bad faith on its part, arising out of or in connection with the acceptance or administration of the trust or trusts hereunder,
including the costs and expenses of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder. 

        As
security for the performance of the obligations of the Company under this Section, the Trustee shall have a lien prior to the Securities upon all property and funds held or collected
by the Trustee as such, except funds held in trust for the payment of principal of, premium, if any, or interest, if any, on particular Securities. 

        When
the Trustee incurs expenses or renders services in connection with an Event of Default specified in Section 6.1(5) and Section 6.1(6), the expenses (including the
reasonable charges and expenses of its counsel) and the compensation for the services are intended to constitute expenses of administration under any applicable Federal, state or foreign bankruptcy,
insolvency or other similar law. The provisions of this Section shall survive the termination of this Indenture. 

        SECTION
7.8    DISQUALIFICATION; CONFLICTING INTERESTS    

        If
the Trustee has or shall acquire any conflicting interest, as defined in Section 310(b) of the Trust Indenture Act, with respect to the Securities of any series, it shall,
within 90 days after ascertaining that it has such conflicting interest, either eliminate such conflicting interest or resign with respect to the Securities of that series in the manner and
with the effect provided by, and subject to the provisions of, Section 310(b) of the Trust Indenture Act and this Indenture. 

        In
the event that the Trustee shall fail to comply with the provisions of the preceding sentence with respect to the Securities of any series, the Trustee shall, within 10 days
after the expiration of such 90-day period, transmit, in the manner and to the extent provided in Section 1.6, to all Holders of Securities of that series notice of such failure. 

        Nothing
herein shall prevent the Trustee from filing with the Commission the application referred to in the penultimate paragraph of Section 310(b) of the Trust Indenture Act. 

        To
the extent permitted by the Trust Indenture Act, the Trustee shall not be deemed to have a conflicting interest with respect to the Securities of any series by virtue of being Trustee
with respect to the Securities of any particular series of Securities other than that series or any series of securities issued under any subordinated indenture entered into by the Company. 

        SECTION
7.9    CORPORATE TRUSTEE REQUIRED; ELIGIBILITY    

        There
shall at all times be a Trustee for each series of Securities hereunder which shall be either (1) a corporation organized and doing business under the laws of the United
States of America, any State thereof or the District of Columbia, which is authorized under such laws to exercise corporate trust powers and is subject to supervision or examination by Federal or
State authority or (2) a corporation or other Person organized and doing business under the laws of a foreign government that is permitted to act as Trustee pursuant to a rule, regulation or
order of the Commission, which is authorized under such laws to exercise corporate trust powers and is subject to supervision or examination by authority of such foreign government or a political
subdivision thereof substantially equivalent to supervision or examination applicable to United States institutional trustees; in either case having a combined capital and surplus of at least
$50,000,000. If such corporation or Person publishes reports of condition at least annually, pursuant to law or to the requirements of said supervising or examining authority, then for the purposes of
this Section, the combined capital and surplus of such corporation or Person shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.
Neither the Company nor any Person directly or indirectly controlling, controlled by, or under common control with the Company shall serve as trustee for the Securities of any series issued hereunder.
If at any time the Trustee shall cease to be eligible in 

48

 

accordance
with the provisions of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article. 

        SECTION
7.10    RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR    

        (a)   No
resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until the acceptance of appointment by
the successor Trustee in accordance with the applicable requirements of Section 7.11. 

        (b)   The
Trustee may resign at any time with respect to the Securities of one or more series by giving written notice thereof to the Company. If the instrument of acceptance
by a successor Trustee required by Section 7.11 shall not have been delivered to the resigning Trustee within 30 days after the giving of such notice of resignation, the resigning
Trustee may petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series. 

        (c)   The
Trustee may be removed at any time with respect to the Securities of any series by Act of the Holders of a majority in principal amount of the Outstanding Securities
of such series, delivered to the Trustee and to the Company. If an instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within 30 days after the giving
of such notice of removal, the removed Trustee may petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series. 

        (d)   If
at any time: 

        (1)   the
Trustee shall fail to comply with Section 310(b) of the Trust Indenture Act pursuant to Section 7.8 after written request therefor by the Company or by
any Holder who has been a bona fide Holder of a Security of a series as to which the Trustee has a conflicting interest for at least six months; or 

        (2)   the
Trustee for a series shall cease to be eligible under Section 7.9 and shall fail to resign after written request therefor by the Company or by any Holder of
Securities of such series; or 

        (3)   the
Trustee shall become incapable of acting; or 

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

then,
in any such case, (i) the Company by a Board Resolution may remove the Trustee with respect to all Securities, or (ii) subject to Section 6.14, any Holder who has been a
bona fide Holder of a Security for at least six months (and, in the case of Clause (1) above, who is a holder of a Security of a series as to which the Trustee has a conflicting interest) may,
on behalf of himself or herself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee with respect to all Securities and the appointment of a
successor Trustee or Trustees with respect to such series, or in the case of Clause (4) above with the respect to all series. 

        (e)   If
the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of the Trustee for any cause, with respect to the
Securities of one or more series, the Company, by a Board Resolution, shall promptly appoint a successor Trustee or Trustees with respect to the Securities of that or those series (it being understood
that any such successor Trustee may be appointed with respect to the Securities of one or more of or all such series and that at any time there shall be only one Trustee with respect to the Securities
of any particular series) and such successor Trustee or Trustees shall comply with the applicable requirements of Section 7.11. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee with respect to the Securities of any series shall be appointed by Act of the Holders of a majority in principal amount of the
Outstanding Securities of such series delivered to the Company and 

49

 

the
retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such appointment in accordance with the applicable requirements of Section 7.11, become the
successor Trustee with respect to the Securities of such series and to that extent supersede the successor Trustee appointed by the Company. If no successor Trustee with respect to the Securities of
any series shall have been so appointed by the Company or the Holders and accepted appointment in the manner required by Section 7.11, any Holder who has been a bona fide Holder of a Security
of such series for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor Trustee with respect
to the Securities of such series. 

        (f)    The
Company shall give notice of each resignation and each removal of the Trustee with respect to the Securities of any series and each appointment of a successor
Trustee with respect to the Securities of any series by giving notice of such event to all Holders of Securities of such series as provided by Section 1.6. Each notice shall include the name of
the successor Trustee with respect to the Securities of such series and the address of its Corporate Trust Office. 

        SECTION
7.11    ACCEPTANCE OF APPOINTMENT BY SUCCESSOR    

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

        (b)   In
case of the appointment hereunder of a successor Trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee and
each successor Trustee with respect to the Securities of one or more series shall execute and deliver an indenture supplemental hereto wherein each successor Trustee shall accept such appointment and
which (1) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor Trustee all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates, (2) if the retiring Trustee is not retiring with respect to
all Securities, shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities
of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (3) shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental
indenture shall constitute such Trustees cotrustees of the same trust and that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Trustee; and upon the execution and delivery of such supplemental indenture, the resignation or removal of the retiring Trustee shall become effective to the extent
provided therein and each such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such successor Trustee relates; but, on request of the Company or any successor Trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder with respect to the Securities of that or those series to which the appointment of such
successor Trustee relates. 

50

 

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

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

        SECTION
7.12    MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS    

        Any
corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, PROVIDED that such
corporation shall be otherwise qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case any
Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver
the Securities so authenticated with the same effect as if such successor Trustee had itself authenticated such Securities. 

        SECTION
7.13    PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY    

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

        SECTION
7.14    JUDGMENT CURRENCY    

        The
Company agrees, to the fullest extent that it may effectively do so under applicable law, that if for the purpose of obtaining a judgment in any court with respect to any obligation
of the Company hereunder or under any Security or Coupon, it shall become necessary to convert into any other currency or currency unit any amount in the currency or currency unit due hereunder or
under such Security or Coupon, then such conversion shall be made at the Conversion Rate (as defined below) as in effect on the date the Company shall make payment to any Person in satisfaction of
such judgment. If pursuant to any such judgment, conversion shall be made on a date other than the date payment is made and there shall occur a change between such Conversion Rate and the Conversion
Rate as in effect on the date of payment or distribution, the Company agrees, to the fullest extent that it may effectively do so under applicable law, to pay such additional amounts (if any) as may
be necessary to ensure that the amount paid is the amount in such other currency or currency unit which, when converted at the Conversion Rate as in effect on the date of payment or distribution, is
the amount then due hereunder or under such Security or Coupon. Any amount due from the Company under this Section 7.14 shall be due as a separate debt and is not to be affected by or merged
into any judgment being obtained for any other sums due hereunder or in respect of any Security or Coupon so that in any event the Company's obligations hereunder or under such Security or Coupon will
be effectively maintained as obligations in such currency or currency unit. In no event, however, shall the Company be required to pay more in the currency or currency unit stated to be due hereunder
or under such Security or Coupon. 

        For
purposes of this Section 7.14, "Conversion Rate" shall mean, as of any date, for any currency or currency unit into which an amount due hereunder or under any Security or
Coupon is to be converted, the noon buying rate in the other currency or currency unit for that currency or currency unit for cable transfers quoted in New York City on such date as certified for
customs purposes by the Federal Reserve Bank of New York. If such rates are not available for any reason with respect to one 

51

 

or
more currencies or currency units for which a Conversion Rate is required, the Exchange Rate Agent shall use, in its sole discretion and without liability on its part, such quotation of the Federal
Reserve Bank of New York as of the most recent available date, or quotations from one or more major banks in New York City or in the country of issue of the currency in question, or such other
quotations as the Exchange Rate Agent shall deem appropriate. Unless otherwise specified by the Exchange Rate Agent, if there is more than one market for dealing in a currency or currency unit by
reason of foreign exchange regulations or otherwise, the market to be used in respect of such currency or currency unit shall be that upon which a nonresident issuer of securities designated in such
currency or currency unit would, as determined in its sole discretion and without liability on the part of the Exchange Rate Agent, purchase such currency or currency unit in order to make payments in
respect of such Securities. If there does not exist a quoted exchange rate in any currency or currency unit (the "First Currency") for another currency unit (the "Second Currency"), then the
Conversion Rate for the Second Currency shall be equal to equivalent amount in the First Currency obtained by converting the Specified Amount of each Component Currency of the Second Currency into the
First Currency at the Conversion Rate (determined as provided above) for each such Component Currency on such date (or, if the First Currency is a currency unit for which there is no quoted exchange
rate in any Component Currency, by converting the Specified Amount of each Component Currency of the Second Currency into the Specified Amount of each Component Currency of the First Currency at the
Conversion Rate (determined as provided above) for each such Component Currency on such date). 

        SECTION
7.15    APPOINTMENT OF AUTHENTICATING AGENT    

        The
Company may appoint an Authenticating Agent or Agents with respect to one or more series of Securities which shall be authorized to act on behalf of the Trustee to authenticate
Securities of such series issued upon original issue or upon exchange, registration of transfer or partial redemption thereof or pursuant to Section 4.5, and Securities so authenticated shall
be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee's certificate of authentication, such reference shall be deemed to include authentication and delivery on behalf of the Trustee
by an Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the Trustee and shall at
all times be a corporation having a combined capital and surplus of not less than the equivalent of $50,000,000 and subject to supervision or examination by Federal, state or District of Columbia
authority or the equivalent foreign authority, in the case of an Authenticating Agent who is not organized and doing business under the laws of the United States of America, any state thereof or the
District of Columbia. If such Authenticating Agent publishes reports of condition at least annually, pursuant to law or to the requirements of said supervising or examining authority, then for the
purposes of this Section, the combined capital and surplus of such Authenticating Agent shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published. If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, such Authenticating
Agent shall resign immediately in the manner and with the effect specified in this Section. 

        Any
corporation into which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or
consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate agency or corporate trust business of such Authenticating Agent, shall continue to be
an Authenticating Agent; PROVIDED such corporation shall be otherwise eligible under this Section, without the execution or filing of any paper or any further act on the part of the Trustee or such
Authenticating Agent. 

        An
Authenticating Agent may resign at any time by giving written notice thereof to the Trustee and to the Company. The Company may at any time terminate the agency of an Authenticating
Agent 

52

 

by
giving written notice thereof to such Authenticating Agent and to the Trustee. Upon receiving such a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of this Section, the Company may appoint a successor Authenticating Agent which shall be acceptable to the Trustee and shall mail, or
cause to be mailed, written notice of such appointment by first-class mail, postage prepaid, to all Holders of Registered Securities, if any, of the series with respect to which such Authenticating
Agent will serve, as their names and addresses appear in the Security Register. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights,
powers and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section. The Company agrees to pay to each Authenticating Agent from time to time reasonable compensation for its services under this Section. 

        If
an appointment with respect to one or more series is made pursuant to this Section, the Securities of such series may have endorsed thereon, in addition to the Trustee's certificate
of authentication, an alternative certificate of authentication in the following form: 

        This
is one of the Securities of the series designated herein issued under the within-mentioned Indenture. 

	 	 	 
 as Trustee
	

 	
 	

By:	
 	

 
 As Authenticating Agent
	

 	
 	

By:	
 	

 
 Authorized [Officer] [Signatory]

53

   
        If all the Securities of a series may not be originally issued at one time, and if the Trustee does not have an office capable of authenticating Securities upon original issuance located
in a Place of Payment or other place where the Company wishes to have Securities of such series authenticated upon original issuance, the Company shall appoint in accordance with this Section an
Authenticating Agent (which may be an Affiliate of the Company if eligible to be appointed as an Authenticating Agent hereunder) having an office in such Place of Payment or other place designated by
the Company with respect to such series of Securities. 

ARTICLE EIGHT  

 HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY  

        SECTION 8.1    COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF HOLDERS    

        The
Company will furnish or cause to be furnished to the Trustee: 

        (1)   semiannually,
not later than 15 days after each Regular Record Date, a list in such form as the Trustee may reasonably require, of the names and addresses of the
Holders of each series of Registered Securities as of the preceding Regular Record Date, as the case may be, and such information concerning the Holders of Bearer Securities which is known to the
Company or any Paying Agent other than the Company; PROVIDED, HOWEVER, that the Company and such Paying Agents shall have no obligation to investigate any matter relating to any Holder of a Bearer
Security or a Coupon; and 

        (2)   at
such other times as the Trustee may request in writing, within 30 days after the receipt by the Company of any such request, a list of similar form and
content, such list to be dated as of a date not more than 15 days prior to the time such list is furnished, and such information concerning the Holders of Bearer Securities which is known to
the Company or any such Paying Agent; PROVIDED, HOWEVER, that the Company and such Paying Agents shall have no obligation to investigate any matter relating to any Holder of a Bearer Security or a
Coupon. 

Notwithstanding
the foregoing Clauses (1) and (2), at such times as the Trustee is the Security Registrar and Paying Agent with respect to a particular series of Securities, no such list shall
be required to be furnished in respect of such series 

        SECTION 8.2    PRESERVATION OF INFORMATION; COMMUNICATIONS TO HOLDERS    

        (a)   The
Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders of each series contained in the most recent list
furnished to the Trustee as provided in Section 8.1 and the names and addresses of Holders of each series received by the Trustee in any capacity as Security Registrar or Paying Agent. The
Trustee may destroy any list furnished to it as provided in Section 8.1 upon receipt of a new list so furnished. 

        (b)   The
rights of Holders to communicate with other Holders with respect to their rights under this Indenture or under the Securities, and the corresponding rights and
duties of the Trustee, shall be as provided by the Trust Indenture Act. 

        (c)   Every
Holder of Securities, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor any agent of either
of them shall be held accountable by reason of any disclosure of information as to the names and addresses of Holders made pursuant to the Trust Indenture Act. 

        SECTION 8.3    REPORTS BY TRUSTEE    

        (a)   Within
60 days after May 15 of each year commencing with the May 15 following the Issue Date, the Trustee shall transmit to Holders such reports
concerning the Trustee and its actions under 

54

 

this
Indenture as may be required pursuant to the Trust Indenture Act in the manner provided pursuant thereto. 

        (b)   A
copy of each such report shall, at the time of such transmission to Holders, be filed by the Trustee with each stock exchange upon which the Securities are listed,
with the Commission and with the Company. The Company will notify the Trustee in writing when the Securities are listed on any stock exchange. 

        SECTION 8.4    REPORTS BY COMPANY    

        The
Company shall: 

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

        (2)   file
with the Trustee and the Commission, in accordance with rules and regulations prescribed from time to time by the Commission, such additional information, documents
and reports with respect to compliance by the Company with the conditions and covenants of this Indenture as may be required from time to time in such rules and regulations; 

        (3)   transmit
by mail to all Holders of Securities, in the manner and to the extent provided in the Trust Indenture Act with respect to reports to be transmitted pursuant to
the requirements of the Trust Indenture Act, within 30 days after the filing thereof with the Trustee, such summaries of any information, documents and reports required to be filed by the
Company pursuant to Clause (1) or Clause (2) of this Section as may be required by rules and regulations prescribed from time to time by the Commission; and 

        (4)   promptly
notify the Trustee when any Securities are listed on any stock exchange. 

ARTICLE NINE  

 CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER  

        SECTION 9.1    COMPANY MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS    

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

        (1)   the
Person formed by such consolidation or into which the Company is merged or the Person which acquires by conveyance or transfer the properties and assets of the
Company shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual payment of the principal of, and
premium, if any, and interest, if any, on all the Securities and the performance or observance of every covenant of this Indenture on the part of the Company to be performed or observed; 

        (2)   immediately
after giving effect to such transaction, no Event of Default, and no event which, after notice or lapse of time, or both, would become an Event of Default,
shall have occurred and be continuing; and 

55

 

        (3)   the
Company has delivered to the Trustee an Officers' Certificate and an Opinion of Counsel each stating that such consolidation, merger, conveyance or transfer and such
supplemental indenture comply with this Article and that all conditions precedent herein provided for relating to such transaction have been complied with. 

        SECTION 9.2    SUCCESSOR PERSON SUBSTITUTED    

        Upon
any consolidation or merger, or any conveyance or transfer of the properties and assets of the Company substantially as an entirety in accordance with Section 9.1, the
successor Person formed by such consolidation or into which the Company is merged or to which such conveyance or transfer 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 Person had been named as the Company herein; and in the event of any such conveyance or transfer, the Company
(which term shall for this purpose mean the Person named as the "Company" in the first paragraph of this instrument or any successor Person which shall have theretofore become such in the manner
prescribed in Section 9.1) shall be discharged from all liability under this Indenture and in respect of the Securities and may be dissolved and liquidated. In the event of any such conveyance
or transfer, the Company as the predecessor Person shall be relieved of all such obligations and may be dissolved, wound-up or liquidated at any time thereafter. 

ARTICLE TEN  

 SUPPLEMENTAL INDENTURES  

        SECTION 10.1    SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS    

        Without
the consent of any Holders, the Company, when authorized by or pursuant to a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes: 

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

        (2)   to
add to the covenants of the Company, or to surrender any right or power herein conferred upon the Company, for the benefit of the Holders of all or any series of
Securities (and if such covenants are to be for the benefit of less than all series of Securities, stating that such covenants are expressly being included solely for the benefit of such series). 

        (3)   to
add any additional Events of Default with respect to all or any series of the Securities (and, if such Event of Default is applicable to less than all series of
Securities, specifying the series to which such Event of Default is applicable); 

        (4)   to
add to or change any of the provisions of this Indenture to such extent as shall be necessary to facilitate the issuance of Securities in bearer form, registrable or
not registrable as to principal, and with or without interest coupons; to change or eliminate any restrictions on the payment of principal of or any premium or interest on Bearer Securities, to permit
Bearer Securities to be issued in exchange for Registered Securities, to permit Bearer Securities to be issued in exchange for Bearer Securities of other authorized denominations; PROVIDED that any
such addition or change shall not adversely affect the interests of the Holders of Securities of any series or any related Coupons in any material respect; 

        (5)   to
change or eliminate any of the provisions of this Indenture; PROVIDED that any such change or elimination shall become effective only when there is no Security
Outstanding of any series created prior to the execution of such supplemental indenture which is adversely affected by such change in or elimination of such provision; 

56

 

        (6)   to
establish the form or terms of Securities of any series as permitted by Sections 2.2 and 3.1; 

        (7)   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 7.11(b); 

        (8)   if
allowed under applicable laws and regulations, to permit payment in the United States of principal, premium or interest on Bearer Securities or Coupons, if any; 

        (9)   to
provide for the issuance of uncertificated Securities of one or more series in addition to or in place of certificated Securities; 

       (10)  to
cure any ambiguity or to correct or supplement any provision herein which may be defective or inconsistent with any other provision herein PROVIDED such other
provision as may be made shall not adversely affect the interests of the Holders of outstanding Securities of any series in any material respect; 

       (11)  to
make any other provisions with respect to matters or questions arising under this Indenture; PROVIDED such other provisions as may be made shall not adversely affect
the interests of the Holders of outstanding Securities of any series in any material respect; or 

       (12)  to
secure the Securities of any or all series. 

        SECTION 10.2    SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS    

        With
the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities of all series affected by such supplemental indenture (acting as one class),
by Act of said Holders delivered to the Company and the Trustee, the Company, when authorized by or pursuant to a Board Resolution, and the Trustee 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 Securities of such series under this indenture; PROVIDED, HOWEVER, that no such supplemental indenture shall, without the consent of the Holder of each outstanding Security affected thereby, 

        (1)   change
the Stated Maturity of the principal of, or any installment of principal of or interest on, any Security, or reduce the principal amount thereof or the rate of
interest thereon or the redemption thereof, or reduce the amount of the principal of an Original Issue Discount Security that would be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 6.2, or change any Place of Payment where, or the currency, currencies or currency unit or units in which, any Security or the principal, any premium or the
interest thereon 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), or affect adversely the terms, if any, of conversion of any Security into shares or other securities of the Company or of any other corporation, 

        (2)   reduce
the percentage in principal amount of the Outstanding Securities of any series, the consent of whose Holders is required for any such 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) provided for in this Indenture, 

        (3)   change
any obligation of the Company, with respect to Outstanding Securities of a series, to maintain an office or agency in the places and for the purposes specified in
Section 11.2 for such series, or 

57

 

        (4)   modify
any of the provisions of this Section or Section 6.13, except to increase any such percentage or to provide with respect to any particular series the right
to condition the effectiveness of any supplemental indenture as to that series on the consent of the Holders of a specified percentage of the aggregate principal amount of Outstanding Securities of
such series (which provision may be made pursuant to Section 2.2 or Section 3.1, as the case may be, without the consent of any Holder) or 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; PROVIDED, HOWEVER, that this Clause shall not be deemed to require the
consent of any Holder with respect to changes in the references to "the Trustee" and concomitant changes in this Section, or the deletion of this proviso, in accordance with the requirements of
Section 7.11(b) and 10.1(7). 

        For
purposes of this Section 10.2, if the Securities of any series are issuable upon the exercise of warrants, each holder of an unexercised and unexpired warrant with respect to
such series shall be deemed to be a Holder of Outstanding Securities of such series in the amount issuable upon the exercise of such warrant. For such purposes, the ownership of any such warrant shall
be determined by the Company in a manner consistent with customary commercial practices. The Trustee for such series shall be entitled to rely on an Officers' Certificate as to the principal amount of
Securities of such series in respect of which consents shall have been executed by holders of such warrants. 

        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 any Act of Holders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall
approve the substance thereof. 

        In
connection with any supplemental indenture or waiver under this Article Ten, the Company may, but shall not be obligated to, offer to any Holder who consents to such supplemental
indenture, or to all Holders, consideration for such Holder's consent to such supplemental indenture. 

        SECTION 10.3    EXECUTION OF SUPPLEMENTAL INDENTURES    

        In
executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture,
the Trustee shall be entitled to receive (in addition to the opinion which the Trustee is entitled to receive pursuant to Section 2.2), 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 may, but shall not be obligated to,
enter into any such supplemental indenture which affects the Trustee's own rights, duties, immunities or liabilities under this Indenture or otherwise. 

        SECTION 10.4    EFFECT OF SUPPLEMENTAL INDENTURES    

        Upon
the execution of any supplemental indenture under this Article, this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder shall be bound thereby, unless it makes a change described in any of
Clauses (1) through (4) of Section 10.2, in which case, the supplemental indenture shall bind only each Holder of a Security or portion of a Security that evidences the same debt as the
consenting Holder's Security; PROVIDED that any such waiver shall not impair or affect the right of any Holder to receive payment of principal 

58

 

and
premium of and interest on a Security, on or after the respective dates set for such amounts to become due and on or after such respective dates. 

        SECTION 10.5    CONFORMITY WITH TRUST INDENTURE ACT    

        Every
supplemental indenture executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act as then in effect. 

        SECTION 10.6    REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES    

        Securities
of any series authenticated and delivered after the execution of any supplemental indenture pursuant to this Article may, and shall if required by the Trustee, bear a notation
in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Securities of any series so modified as to conform, in the opinion
of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding Securities of
such series. 

ARTICLE ELEVEN  

 COVENANTS  

        SECTION 11.1    PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST    

        The
Company covenants and agrees for the benefit of each series of Securities and Coupons, if any, that it will duly and punctually pay the principal of (and premium, if any, on) and
interests if any, on the Securities and Coupons, if any, of that series in accordance with the terms of the Securities and Coupons, if any, of such series and this Indenture. 

        SECTION 11.2    MAINTENANCE OF OFFICE OR AGENCY    

        If
Securities of a series are issuable only as Registered Securities, the Company will maintain in each Place of Payment for such series an office or agency where Securities of that
series may be presented or surrendered for payment, where Securities of that series may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in
respect of the Securities of that series and this Indenture may be served. If Securities of a series are issuable as both Registered or Bearer Securities or only as Bearer Securities, the Company will
maintain (1) in the Borough of Manhattan, The City of New York, an office or agency where any Registered Securities of that series may be presented or surrendered for payment, where any
Registered Securities of that series may be surrendered for registration of transfer, where Securities of that series may be surrendered for exchange, where notices and demands to or upon the Company
in respect of the Securities of that series and this Indenture may be served and where Bearer Securities of that series and related Coupons may be presented or surrendered for payment in the
circumstances described in the proviso contained in the last sentence of this first paragraph of Section 11.2 (and not otherwise), (2) subject to any laws or regulations applicable
thereto, in a Place of Payment for that series which is located outside the United States, an office or agency where Securities of that series and related Coupons may be presented and surrendered for
payment (including payment of any additional amounts payable on Securities of that series pursuant to Section 11.5); PROVIDED, HOWEVER, that if the Securities of that series are listed on any
stock exchange located outside the United States and such stock exchange shall so require, the Company will maintain a Paying Agent for the Securities of that series in any required city located
outside the United States, so long as the Securities of that series are listed on such exchange, and (3) subject to any laws or regulations applicable thereto, in a Place of Payment for that
series located outside the United States, an office or agency where any Registered Securities of that series may be surrendered for registration of transfer, where Securities of that series may be
surrendered for exchange and where notices and demands to or upon the Company in respect of the 

59

 

Securities
of that series and this Indenture may be served. The Company will give prompt written notice to the Trustee and the Holders of the location, and any change in the location, of any such
office or agency. If at any time the Company shall fail to maintain any such required office or agency in respect of any series of Securities or shall fail to furnish the Trustee with the address
thereof, such presentations and surrenders of Securities of that series may be made and notices and demands may be made or served at the Corporate Trust Office of the Trustee, except that Bearer
Securities of that series and the related Coupons may be presented and surrendered for payment (including payment of any additional amounts payable on Bearer Securities of that series pursuant to
Section 11.5) at the London office of the Trustee (or an agent with a London office appointed by the Trustee and acceptable to the Company), and the Company hereby appoints the same as its
agent to receive such respective presentations, surrenders, notices and demands. No payment of principal, premium or interest on Bearer Securities shall be made at any office or agency of the Company
in the United States or by check mailed to any address in the United States or by transfer to an account maintained with a bank located in the United States; PROVIDED, HOWEVER, that, if the Securities
of a series are denominated and payable in Dollars, payment of principal of and any premium and interest on any Bearer Security (including any additional amounts payable on Securities of such series
pursuant to Section 11.5) shall be made at the office of the Company's Paying Agent in the Borough of Manhattan, The City of New York, if (but only if) payment in Dollars of the full amount of
such principal, premium, interest or additional amounts, as the case may be, at all offices or agencies outside the United States maintained for the purpose by the Company in accordance with this
Indenture is illegal or effectively precluded by exchange controls or other similar restrictions. 

        The
Company may also from time to time designate one or more other offices or agencies where the Securities of one or more series may be presented or surrendered for any or all such
purposes 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 obligation to maintain an office
or agency in accordance with the requirements set forth above for Securities of any series for such purposes. The Company will give prompt written notice to the Trustee and the Holders of any such
designation or rescission and of any change in the location of any such other office or agency. 

        SECTION 11.3    MONEY FOR SECURITIES PAYMENTS TO BE HELD IN TRUST    

        If
the Company shall at any time act as its own Paying Agent with respect to any series of Securities, it will, on or before each due date of the principal of (and premium, if any, on)
or interest, if any, on any of the Securities of that series, segregate and hold in trust for the benefit of the Persons entitled thereto a sum in the relevant currency (or a sufficient number of
currency units, as the case may be) sufficient to pay the principal (and premium, if any, on) or interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as
herein provided and will promptly notify the Trustee of its action or failure so to act. 

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

        The
Company will cause each Paying Agent for any series of Securities other than the Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree
with the Trustee, subject to the provisions of this Section, that such Paying Agent will: 

        (1)   hold
all sums held by it for the payment of the principal of (and premium, if any, on) or interest, if any, on Securities of that series in trust for the benefit of the
Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided; 

60

  

        (2)   give
the Trustee notice of any default by the Company (or any other obligor upon the Securities of that series) in making of any payment of principal (and premium, if
any, on) or interest, if any, on the Securities of that series; and 

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

        The
Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to
pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money. 

        Any
money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of (and premium, if any, on) or interest, if any, on any
Security of any series and remaining unclaimed for two years after such principal (and premium, if any) or interest has become due and payable shall be paid to the Company, or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Security and Coupons, if any, shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and
all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; PROVIDED, HOWEVER, that the Trustee or
such Paying Agent, before being required to make any such repayment, may at the expense and at the direction of the Company cause to be published once, in a newspaper published in the English
language, customarily published on each Business Day and of general circulation in the Borough of Manhattan, The City of New York, notice that such money remains unclaimed and that, after a date
specified herein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining will be repaid to the Company. 

        The
Company initially authorizes the Trustee to act as Paying Agent for the Securities on its behalf. The Company may at any time and from time to time authorize one or more Persons to
act as Paying Agent in addition to or in place of the Trustee with respect to any series of Securities issued under this Indenture. 

        SECTION
11.4    STATEMENT BY OFFICERS AS TO DEFAULT    

        The
Company will deliver to the Trustee, within 120 days after the end of each fiscal year if any Securities are outstanding under this Indenture, a written certificate signed by
the chairman, chief executive officer, the chief financial officer, the chief accounting officer of the Company or any person acting in a similar capacity, stating that: 

        (1)   a
review of the activities of the Company during such year and of performance under this Indenture has been made under his or her supervision; 

        (2)   to
his or her knowledge, based on such review, the Company has fulfilled all its obligations, and has complied with all conditions and covenants, under this Indenture
throughout such year, or, if there has been a default in the fulfillment of any such obligation, condition or covenant, specifying each such default known to him or her and the nature and status
thereof. 

For
purposes of this Section 11.4, compliance shall be determined without regard to any grace period or requirement of notice provided pursuant to the terms of this Indenture. 

        SECTION
11.5    ADDITIONAL AMOUNTS    

        If
the Securities of a series provide for the payment of additional amounts, the Company will pay to the Holder of any Security of such series or any related Coupon additional amounts as
provided 

61

 

therein.
Whenever in this Indenture there is mentioned, in any context, the payment of the principal of or any premium or interest on, or in respect of, any Security of any series or payment of any
related Coupon or the net proceeds received on the sale or exchange of any Security of any series, such mention shall be deemed to include mention of the payment of additional amounts provided for in
this Section to the extent that, in such context, additional amounts are, were or would be payable in respect thereof pursuant to the provisions of this Section and express mention of the payment of
additional amounts (if applicable) in any provisions hereof shall not be construed as excluding additional amounts in those provisions hereof where such express mention is not made. 

        If
the Securities of a series provide for the payment of additional amounts, at least 10 days prior to the first Interest Payment Date with respect to that series of Securities
(or if the Securities of that series will not bear interest prior to Maturity, the first day on which a payment of principal and any premium is made), and at least 10 days prior to each date of
payment of principal and any premium or interest if there has been any change with respect to the matters set forth in the below-mentioned Officers' Certificate, the Company will furnish the Trustee
and the Company's Paying Agent or Paying Agents, if other than the Trustee, with an Officers' Certificate instructing the Trustee and such Paying Agent or
Paying Agents whether such payment of principal of and any premium or interest on the Securities of that series shall be made to Holders of Securities of that series or any related Coupons who are
United States Aliens (as defined in such Securities) without withholding for or on account of any tax, assessment or other governmental charge described in the Securities of that series. If any such
withholding shall be required, then such Officers' Certificate shall specify by country the amount, if any, required to be withheld on such Payments to such Holders of Securities or Coupons and the
Company will pay to the Trustee or such Paying Agent the additional amounts required by this Section. The Company covenants to indemnify the Trustee and any Paying Agent for, and to hold them harmless
against, any loss, liability or expense reasonably incurred without negligence or bad faith on their part arising out of or in connection with actions taken or omitted by any of them in reliance on
any Officers' Certificate furnished pursuant to this Section. 

ARTICLE TWELVE  

 REDEMPTION OF SECURITIES  

        SECTION
12.1    APPLICABILITY OF ARTICLE    

        The
Company may reserve the right to redeem and pay before Stated Maturity all or any part of the Securities of any series, either by optional redemption, sinking or purchase fund or
analogous obligation or otherwise, by provision therefor in the form of Security for such series established and approved pursuant to Section 2.2 or Section 3.1, as the case may be, and
on such terms as are specified in such form or in the Board Resolution or indenture supplemental hereto with respect to Securities of such series as provided in Section 2.2 or
Section 3.1, as the case may be. Securities of any series which are redeemable before their Stated Maturity shall be redeemable in accordance with their terms and (except as otherwise specified
as contemplated by Section 2.2 or Section 3.1, as the case may be, for Securities of any series) in accordance with this Article. 

        SECTION
12.2    ELECTION TO REDEEM; NOTICE TO TRUSTEE    

        If
the Company shall desire to exercise the right to redeem all, or, as the case may be, any part of the Securities of any series, the Company shall, at least 60 days prior to the
Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notifying the Trustee of such Redemption Date and of the principal amount of Securities of such
series to be redeemed. In the case of any redemption of Securities (1) prior to the expiration of any restriction on such redemption provided in the terms of such Securities or elsewhere in
this Indenture, or (2) pursuant to an election 

62

 

of
the Company which is subject to a condition specified in the terms of such Securities, the Company shall furnish the Trustee with an Officers' Certificate evidencing compliance with such
restriction. 

        SECTION
12.3    SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED    

        If
less than all the Securities of any series are to be redeemed, the particular Securities to be redeemed shall be selected not more than 60 days prior to the Redemption Date by
the Trustee, from the Outstanding Securities of such series not previously called for redemption, by such method as the Trustee shall deem fair and appropriate and which may provide for the selection
for redemption of portions (equal to the minimum authorized denomination for Securities of that series or any integral multiple thereof) of the principal amount of Securities of such series of a
denomination larger than the minimum authorized denomination for Securities of that series. Unless otherwise provided in the terms of a particular series of Securities, the portions of the principal
of Securities so selected for partial redemption shall be equal to the minimum authorized denomination of the Securities of such series, or an integral multiple thereof, and the principal amount which
remains outstanding shall not be less than the minimum authorized. 

        The
Trustee shall promptly notify the Company in writing of the Securities selected for redemption and, in the case of any Securities selected for partial redemption, the principal
amount thereof to be redeemed. 

        For
all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of any Securities redeemed or
to be redeemed only in part, to the portion of the principal amount of such Securities which has been or is to be redeemed. 

        SECTION
12.4    NOTICE OF REDEMPTION    

        Notice
of redemption shall be given not less than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed, as provided in
Section 1.6. 

        Each
such notice of redemption shall specify the Redemption Date, the Redemption Price, the Place or Places of Payment, that the Securities of such series are being redeemed at the
option of the Company pursuant to provisions contained in the terms of the Securities of such series or in a supplemental indenture establishing such series, if such be the case, together with a brief
statement of the facts permitting such redemption, that on the Redemption Date the Redemption Price will become due and payable upon each Security redeemed, that payment will be made upon presentation
and surrender of the applicable Securities, that all Coupons, if any, maturing subsequent to the date fixed for redemption shall be void, that any interest accrued to the Redemption Date will be paid
as specified in said notice, that the redemption is pursuant to the sinking fund, if such is the case, and that on and after said Redemption Date any interest thereon or on the portions thereof to be
redeemed will cease to accrue unless the Company shall default in the payment of the Redemption Price (including any applicable accrued interest). If less than all the Securities of any series are to
be redeemed, the notice of redemption shall specify the registration and, if any, CUSIP, ISIN or Common Code numbers of the Securities of such series to be redeemed, and, if only Bearer Securities of
any series are to be redeemed, and if such Bearer Securities may be exchanged for Registered Securities, the last date on which exchanges of Bearer Securities for Registered Securities not subject to
redemption may be made. In case any Security of any series is to be redeemed in part only, the notice of redemption shall state the portion of the principal amount thereof to be redeemed and shall
state that on and after the Redemption Date, upon surrender of such Security and any Coupons appertaining thereto, a new Security or Securities of such series in principal amount equal to the
unredeemed portion thereof and with appropriate Coupons will be issued, or, in the case of Registered Securities providing appropriate space for such notation, at the option of the Holders, the
Trustee, in 

63

 

lieu
of delivering a new Security or Securities as aforesaid, may make a notation on such Security of the payment of the redeemed portion thereof. 

        Notice
of redemption of Securities to be redeemed at the election of the Company shall be given by the Company or, at the Company's request, by the Trustee in the name and at the expense
of the Company. 

        SECTION
12.5    DEPOSIT OF REDEMPTION PRICE    

        On
or before 11:00 a.m. on any Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own paying Agent, segregate
and hold in trust as provided in Section 11.3) an amount of money in the relevant currency (or a sufficient number of currency units, as the case may be) sufficient to pay the Redemption Price
of, and (except if the Redemption Date shall be an Interest Payment Date) accrued interest on, all the Securities which are to be redeemed on that date. 

        SECTION
12.6    SECURITIES PAYABLE ON REDEMPTION DATE    

        Notice
of redemption having been given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified, and
from and after such date (unless the Company shall default in the payment of the Redemption Price and accrued interest) such Securities shall cease to bear interest and the Coupons for such interest
appertaining to any Bearer Securities so to be redeemed, except to the extent provided below, shall be void. Upon surrender of any such Security for redemption in accordance with said notice, together
with all Coupons, if any, appertaining thereto maturing after the Redemption Date, such Security shall be paid by the Company at the Redemption Price, together with accrued interest to the Redemption
Date; PROVIDED, HOWEVER, that installments of interest on Bearer Securities whose Stated Maturity is on or prior to the Redemption Date shall be payable only at an office or agency located outside the
United States (except otherwise provided in Section 11.2) and, unless otherwise specified as contemplated by Section 2.2 or Section 3.1, as the case may be, only upon presentation
and surrender of Coupons for such interest; PROVIDED FURTHER that, unless otherwise specified as contemplated by Section 2.2 or Section 3.1, as the case may be, installments of interest
on Registered Securities whose Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders of such Securities, or one or more Predecessor Securities, registered as such at
the close of business on the relevant Record Dates according to their terms and the provisions of Section 4.6. 

        If
any Bearer Security surrendered for redemption shall not be accompanied by all appurtenant Coupons maturing after the Redemption Date, such Security may be paid after deducting from
the Redemption Price an amount equal to the face amount of all such missing Coupons, or the surrender of such missing Coupon or Coupons may be waived by the Company and the Trustee if there be
furnished to them such security or indemnity as they may require to save each of them and any Paying Agent harmless. If thereafter the Holder of such Security shall surrender to the Trustee or any
Paying Agent any such missing Coupon in respect of which a deduction shall have been made from the Redemption Price, such Holder shall be entitled to receive the amount so deducted; PROVIDED, HOWEVER,
that interest represented by Coupons shall be payable only at an office or agency located outside the United States (except as otherwise provided in Section 11.2) and, unless otherwise
specified as contemplated by Section 2.2 or Section 3.1, as the case may be, only upon presentation and surrender of those coupons. 

        If
any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal and any premium shall, until paid, bear interest from the Redemption Date
at the rate prescribed therefor in the Security. 

64

 

        SECTION
12.7    SECURITIES REDEEMED IN PART    

        Any
Security which is to be redeemed only in part shall be surrendered at a Place of Payment therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or
his attorney duly authorized in writing), and the Company shall execute, and the Trustee shall authenticate and make available for delivery to the Holder of such Security without service charge, a new
Security or Securities (with appropriate Coupons) of the same series and Stated Maturity, of any authorized denomination as requested by such Holder, in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Security so surrendered or, in the case of Registered Securities providing appropriate space for such notation, at the option of the Holder,
the Trustee, in lieu of delivering a new Security or Securities as aforesaid, may make a notation on such Security of the Payment of the redeemed portion thereof. 

ARTICLE THIRTEEN  

 SINKING FUNDS  

        SECTION
13.1    APPLICABILITY OF ARTICLE    

        The
provisions of this Article shall be applicable to any sinking fund for the retirement of Securities of a series, except as otherwise specified as contemplated by Section 2.2
or Section 3.1, as the case may be, for Securities of such series. 

        The
minimum amount of any sinking fund payment provided for by the terms of Securities of any series is herein referred to as a "mandatory sinking fund payment," and any payment in
excess of such minimum amount provided for by the terms of Securities of any series is herein referred to as an "optional sinking fund payment." If provided for by the terms of Securities of any
series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 13.2. Each sinking fund payment shall be applied to the redemption of Securities of any
series as provided for by the terms of Securities of such series. 

        SECTION
13.2    SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES    

        The
Company (1) may deliver Outstanding Securities (including all unmatured Coupons appertaining thereto) of a series (other than any previously called for redemption) and
(2) may apply as a credit Securities of a series which have been redeemed either at the election of the Company pursuant to the terms of such Securities or through the application of permitted
optional sinking fund payments pursuant to the terms of such Securities, in each case in satisfaction of all or any part of any sinking fund payment with respect to the Securities of such series
required to be made pursuant to the terms of such Securities as provided for by the terms of such series; PROVIDED that such Securities have
not been previously so credited. Such Securities shall be received and the outstanding principal amount thereof credited for such purpose by the Trustee at the Redemption Price specified in such
Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly. 

        SECTION
13.3    REDEMPTION OF SECURITIES FOR SINKING FUND    

        Not
less than 60 days 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 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 Securities of that series pursuant to Section 13.2 and will also deliver to the Trustee any Securities (including all unmatured Coupons
appertaining thereto) to be so delivered. Not less than 30 days before each such sinking fund payment date the Trustee shall select the Securities to 

65

 

be
redeemed upon such sinking fund payment date in the manner specified in Section 12.3 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 12.4. Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Section 12.6 and
12.7. 

ARTICLE FOURTEEN  

 MEETINGS OF HOLDERS OF SECURITIES  

        SECTION
14.1    PURPOSES FOR WHICH MEETINGS MAY BE CALLED    

        A
meeting of Holders of Securities of any series may be called at any time and from time to time pursuant to this Article to make, give or take any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture to be made, given or taken by Holders of Securities of such series. 

        SECTION
14.2    CALL, NOTICE AND PLACE OF MEETINGS    

        (a)   The
Trustee may at any time call a meeting of Holders of Securities of any series for any purpose specified in Section 14.1, to be held at such time and at such
place in the Borough of Manhattan, The City of New York, or in London, as the Trustee shall determine. Notice of every meeting of Holders of Securities of any series, setting forth the time and the
place of such meeting and in general terms the action proposed to be taken at such meeting, shall be given, in the manner provided in Section 1.6, not less than 20 nor more than 180 days
prior to the date fixed for the meeting; PROVIDED, HOWEVER, that publication shall occur at least twice, with each publication to be not less than 20 nor more than 180 days prior to the date
fixed for the meeting. 

        (b)   In
case at any time the Company, by or pursuant to a Board Resolution, or the Holders of at least 25% in principal amount of the Outstanding Securities of any series
shall have requested the Trustee to call a meeting of the Holders of Securities of such series for any purpose specified in Section 14.1, by written request setting forth in reasonable detail
the action proposed to be taken at the meeting, and the Trustee shall not have made the first publication of the notice of such meeting within 20 days after receipt of such request or shall not
thereafter proceed to cause the meeting to be held as provided herein, then the Company or the Holders of Securities of such series in the amount above specified, as the case may be, may determine the
time and the place in the Borough of Manhattan, The City of New York, or in London, for such meeting and may call such meeting for such purposes by giving notice thereof as provided in Subsection
(a) of this Section. 

        SECTION
14.3    PERSONS ENTITLED TO VOTE AT MEETINGS    

        To
be entitled to vote at any meeting of Holders of Securities of any series, a Person shall be (1) a Holder of one or more Outstanding Securities of such series or (2) a
Person appointed by an instrument in writing as proxy for a Holder or Holders of one or more Outstanding Securities of such series by such Holder or Holders. The only Persons who shall be entitled to
be present or to speak at any meeting of Holders of Securities of any series shall be the Persons entitled to vote at such meeting and their counsel, any representatives of the Trustee and its counsel
and any representatives of the Company and its counsel. 

        SECTION
14.4    QUORUM; ACTION    

        The
Persons entitled to vote a majority in principal amount of the Outstanding Securities of a series shall constitute a quorum for a meeting of Holders of Securities of such series. In
the absence of a quorum within 30 minutes of the time appointed for any such meeting, the meeting shall, if convened at the request of Holders of Securities of such series, be dissolved. In any other
case the meeting may be adjourned for a period of not less than 10 days as determined by the chairman of the meeting prior 

66

 

to
the adjournment of such meeting. In the absence of a quorum at any such adjourned meeting, such adjourned meeting may be further adjourned for a period of not less than 10 days as determined
by the chairman of the meeting prior to the adjournment of such adjourned meeting. Notice of the reconvening of any adjourned meeting shall be given as provided in Section 14.2(a), except that
such notice need be given only once not less than five days prior to the date on which the meeting is scheduled to be reconvened. 

        Except
as limited by the proviso to Section 10.2, and subject to the provisions described in the next succeeding paragraph, any resolution presented to a meeting or adjourned
meeting duly reconvened at which a quorum is present as aforesaid may be adopted by the affirmative vote of the Holders of a majority in principal amount of the Outstanding Securities of that series;
PROVIDED, HOWEVER, that any resolution with respect to any request, demand, authorization, direction, notice, consent, waiver or other action which this Indenture expressly provides may be made, given
or taken by the Holders of a specified percentage, which is equal to or less than a majority, in principal amount of the Outstanding Securities of a series may be adopted at a meeting or an adjourned
meeting duly reconvened and at which a quorum is present as aforesaid by the affirmative vote of the Holders of such specified percentage in principal amount of the Outstanding Securities of that
series. Any resolution passed or decision taken at any meeting of Holders of Securities of any series duly held in accordance with this Section shall be binding on all the Holders of Securities of
such series and the related Coupons, whether or not present or represented at the meeting. 

        With
respect to any consent, waiver or other action which this Indenture expressly provides may be given by the Holders of a specified percentage of Outstanding Securities of all series
affected thereby (acting as one class), only the principal amount of Outstanding Securities of any series represented at a meeting or adjourned meeting duly reconvened at which a quorum is present,
held in accordance with this Section, and voting in favor of such action, shall be counted for purposes of calculating the aggregate principal amount of Outstanding Securities of all series affected
thereby favoring such action. 

        SECTION
14.5    DETERMINATION OF VOTING RIGHTS; CONDUCT AND ADJOURNMENT OF MEETINGS    

        (a)   Notwithstanding
any other provisions of this Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting of Holders of
Securities of a series in regard to proof of the holding of Securities of such series and of the appointment of proxies and in regard to the appointment and duties of inspectors of votes, the
submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall deem appropriate. Except as
otherwise permitted or required by any such regulations, the holding of Securities shall be proved in the manner specified in Section 1.4 and the appointment of any proxy shall be proved in the
manner specified in Section 1.4 or by having the signature of the person executing the proxy witnessed or guaranteed by any trust company, bank or banker authorized by Section 1.4 to
certify to the holder of Bearer Securities. Such regulations may provide that written instruments appointing proxies, regular on their face, may be presumed valid and genuine without the proof
specified in Section 1.4 or other proof. 

        (b)   The
Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have been called by the Company or by Holders of
Securities as provided in Section 14.2(b), in which case the Company or the Holders of Securities of the series calling the meeting, as the case may be, shall in like manner appoint a temporary
chairman. A permanent chairman and a permanent secretary of the meeting shall be elected by vote of the Persons entitled to vote a majority in principal amount of the outstanding Securities of such
series represented at the meeting. 

        (c)   At
any meeting each Holder of a Security of such series or proxy shall be entitled to one vote for each $1,000 (or the equivalent thereof) principal amount of the
Outstanding Securities of such 

67

 

series
held or represented by him; PROVIDED, HOWEVER, that no vote shall be cast or counted at any meeting in respect of any Security challenged as not Outstanding and ruled by the chairman of the
meeting to be not Outstanding. The chairman of the meeting shall have no right to vote, except as a Holder of a Security of such series or proxy. 

        (d)   Any
meeting of Holders of Securities of any series duly called pursuant to Section 14.2 at which a quorum is present may be adjourned from time to time by Persons
entitled to vote a majority in principal amount of the Outstanding Securities of such series represented at the meeting; and the meeting may be held as so adjourned without further notice. 

        SECTION
14.6    COUNTING VOTES AND RECORDING ACTION OF MEETINGS    

        The
vote upon any resolution submitted to any meeting of Holders of Securities of any series shall be by written ballots on which shall be subscribed the signatures of the Holders of
Securities of such series or of their representatives by proxy and the principal amounts and serial numbers of the Outstanding Securities of such series held or represented by them. The permanent
chairman of the meeting shall
appoint two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary of the meeting their verified written reports
in duplicate of all votes cast at the meeting. A record, at least in duplicate, of the proceedings of each meeting of Holders of Securities of any series shall be prepared by the secretary of the
meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more persons having knowledge of the
facts setting forth a copy of the notice of the meeting and showing that said notice was given as provided in Section 14.2 and, if applicable, Section 14.4. Each copy shall be signed and
verified by the affidavits of the permanent chairman and secretary of the meeting and one such copy shall be delivered to the Company, and another to the Trustee to be preserved by the Trustee, the
latter to have attached thereto the ballots voted at the meeting. Any record so signed and verified shall be conclusive evidence of the matters therein stated. 

68

   
        IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, and their respective corporate seals to be hereunto affixed and attested, all as of the day and
year first above written. 

	 	 	APOLLO GOLD CORPORATION
	

 	
 	

By	
 	

 

	[SEAL]	 	 	 	 
	

Attest:	
 	

 	
 	

 
	

 
	
 	

 	
 	

 
	

 	
 	

 
 as Trustee,
	

 	
 	

By	
 	

 

	[SEAL]	 	 	 	 
	

Attest:	
 	

 	
 	

 
	

 
	
 	

 	
 	

 

69

 

	STATE OF NEW YORK	 	)	 	 
	 	 	)	 	ss.:
	COUNTY OF NEW YORK	 	)	 	 

        On the            day
  of                        ,
              , before
  me personally came, to me known, who, being by me duly sworn, did depose and
  say that he is a                        of
  APOLLO GOLD CORPORATION, one of the corporations described in and which executed
  the foregoing instrument; that he knows the seal of said corporation; that the
  seal affixed to said instrument is such corporate seal; that it was so affixed
  by authority of the Board of Directors of said corporation; and that he signed
  his name thereto by like authority. 

	 	 	 
    Notary Public

Notary Public, State of New York
	 	 	No.	 	 

	 	 	Qualified in	 	 

	 	 	Commission Expires	 	 

	STATE OF NEW YORK	 	)	 	 
	 	 	)	 	ss.:
	COUNTY OF NEW YORK	 	)	 	 

        On
the            day of                        ,
            , before me personally came                        , to me
known, who, being by me duly sworn, did depose and say that he is a
                        of                 
       , one of the corporations described in and which executed the foregoing instrument; that he knows the seal of said corporation; that the seal affixed to said
instrument is such corporate seal; that it was so affixed by authority of the Board of Directors of said corporation; and that he signed his name thereto by like authority. 

	 	 	 
    Notary Public

Notary Public, State of New York
	 	 	No.	 	 

	 	 	Qualified in	 	 

	 	 	Commission Expires	 	 

70

   EXHIBIT A  

 [RESERVED]  

A-1

   EXHIBIT B  

 [FORMS OF CERTIFICATION]  

B-1

   EXHIBIT B.1  

 [FORM OF CERTIFICATE TO BE GIVEN BY

PERSON ENTITLED TO RECEIVE BEARER SECURITY]  

CERTIFICATE

  APOLLO GOLD CORPORATION 

 [INSERT TITLE OR SUFFICIENT DESCRIPTION

OF SECURITIES TO BE DELIVERED]  

        This is to certify that the above-captioned Securities are not being acquired by or on behalf of a United States person, or for offer to resell or for resale to a
United States person or any person inside the United States, or, if a beneficial interest in the Securities is being acquired by a United States person, that such United States person is a financial
institution as defined in Section 1.165-12(c)(1)(v) of the United States Treasury Regulations, or is acquiring through a financial institution, and that the Securities were
held by a financial institution that has agreed to comply with the requirements of Section 165(j)(3)(A), (B) or (C) of the Internal Revenue Code of 1986, as amended, and the
regulations thereunder and that it is not purchasing for offer to resell or for resale inside the United States. 

        As
used herein, "United States person" means any citizen or resident of the United States, any corporation, partnership or other entity created or organized in or under the laws of the
United States, or any estate or trust the income of which is subject to United States Federal income taxation regardless of its source, and "United States" means the United States of America
(including the states and the District of Columbia), its territories, its possessions and other areas subject to its jurisdiction. 

        We
undertake to advise you by telex if the above statement as to beneficial ownership is not correct on the date of delivery of the above-captioned Securities in bearer form as to all
such Securities. 

        We
understand that this certificate may be required in connection with certain tax legislation in the United States. If administrative or legal proceedings are commenced or threatened in
connection with which this certificate is or would be relevant, we irrevocably authorize you to produce this certificate or a copy thereof to any interested party in such proceedings. 

Dated:                    ,       

[To be dated on or after

                        ,              the date

determined as provided in the

Indenture] 

	 	 	[Name of Person Entitled to Receive Bearer Security]
	

 	
 	

	 	 	(Authorized Signatory)
	 	 	Name:

Title:

B-1-1

   EXHIBIT B.2  

 [FORM OF CERTIFICATE TO BE GIVEN BY

EUROCLEAR AND CEDEL

IN CONNECTION WITH THE EXCHANGE OF A

PORTION OF A TEMPORARY GLOBAL SECURITY]  

CERTIFICATE

  APOLLO GOLD CORPORATION

 [INSERT TITLE OR SUFFICIENT DESCRIPTION

OF SECURITIES TO BE DELIVERED]  

        This is to certify with respect to $                    principal amount of the
above-captioned Securities (i) that we have received from each of the persons
appearing in our records as persons entitled to a portion of such principal amount (our "Qualified Account Holders") a certificate with respect to such portion substantially in the form attached
hereto and (ii) that we are not submitting herewith for exchange any portion of the temporary global Security representing the above-captioned Securities excepted in such certificates. 

        We
further certify that as of the date hereof we have not received any notification from any of our Qualified Account Holders to the effect that the statements made by such Qualified
Account Holders with respect to any portion of the part submitted herewith for exchange are no longer true and cannot be relied upon as of the date hereof. 

Date:                    ,       

[To be dated no earlier than

The Exchange Date] 

	 	 	[MORGAN GUARANTY TRUST COMPANY

OF NEW YORK, BRUSSELS OFFICE,

as Operator of the Euroclear System]

[CEDEL]
	

 	
 	

By	
 	

 
	 	 	 	 	

B-2-1

   EXHIBIT B.3  

 [FORM OF CERTIFICATE TO BE GIVEN BY

EUROCLEAR AND CEDEL

TO OBTAIN INTEREST PRIOR TO AN EXCHANGE DATE]  

CERTIFICATE

  APOLLO GOLD CORPORATION

 [INSERT TITLE OR SUFFICIENT DESCRIPTION OF SECURITIES]  

        We confirm that the interest payable on the Interest Payment Date on [Insert Date] will be paid to each of the persons appearing in our
records as being entitled to interest payable on such date from whom we have received a written certification, dated not earlier than such Interest Payment Date, substantially in the form attached
hereto. We undertake to retain certificates received from our member organizations in connection herewith for four years from the end of the calendar year in which such certificates are received. 

        We
undertake that any interest received by us and not paid as provided above shall be returned to the Trustee for the above Securities immediately prior to the expiration of two years
after such Interest Payment Date in order to be repaid by such Trustee to the above issuer at the end of two years after such Interest Payment Date. 

Date:                    ,       

[To be dated on or after the

relevant Interest Payment Date] 

	 	 	[MORGAN GUARANTY TRUST COMPANY

OF NEW YORK, BRUSSELS OFFICE,

as Operator of the Euroclear System]

[CEDEL]
	

 	
 	

By	
 	

 
	 	 	 	 	

B-3-1

   EXHIBIT B.4  

 [FORM OF CERTIFICATE TO BE GIVEN BY BENEFICIAL OWNERS

TO OBTAIN INTEREST PRIOR TO AN EXCHANGE DATE]  

CERTIFICATE

  APOLLO GOLD CORPORATION

 [INSERT TITLE OR SUFFICIENT

DESCRIPTION OF SECURITIES]  

        This is to certify that as of the Interest Payment Date on [Insert Date] and except as provided in the third paragraph hereof, the
above-captioned Securities held by you for our account are not beneficially owned by a United States person, and have not been acquired by or on behalf of a United States person, or for offer to
resell or for resale to a United States person or any person inside the United States, or, if any of such Securities held by you for our account are beneficially owned by a United States person,
(i) such United States person is a financial institution within the meaning of Section 1.165-12(c)(1)(v) of the United States Treasury Regulations purchasing for its
own account or has acquired such Securities through a financial institution and (ii) such Securities are held by a financial institution that has agreed to comply with the requirements of
Section 165(j)(3)(A), (B) or (C) of the Internal Revenue Code of 1986, as amended, and the regulations thereunder and that it did not purchase for offer to resell or for resale
inside the United States. 

        As
used herein, "United States person" means any citizen or resident of the United States, any corporation, partnership or other entity created or organized in or under the laws of the
United States or any estate or trust the income of which is subject to United States Federal income taxation regardless of its source, and "United States" means the United States of America (including
the states and the District of Columbia), its territories, its possessions and other areas subject to its jurisdiction. 

        This
certificate excepts and does not relate to U.S. $                    principal amount of the above-captioned Securities appearing in your books as
being held for our account as to which
we are not yet able to
certify and as to which we understand interest cannot be credited unless and until we are able to so certify. 

        We
understand that this certificate may be required in connection with certain tax legislation in the United States. If administrative or legal proceedings are commenced or threatened in
connection with which this certificate is or would be relevant, we irrevocably authorize you to produce this certificate or a copy thereof to any interested party in such proceedings. 

Date:                    ,       

[To be dated on or after

the 15th day before the

relevant Interest Payment Date] 

	 	 	[Name of Person Entitled to Receive Interest]
	

 	
 	

	 	 	(Authorized Signature)
	 	 	Name:

Title:

B-4-1

   EXHIBIT B.5  

 [FORM OF CONFIRMATION TO BE SENT TO

PURCHASERS OF BEARER SECURITIES]  

        By your purchase of the securities referred to in the accompanying confirmation (the "Securities"): 

        You
represent that you are not a United States person or, if you are a United States person, you are a financial institution as that term is defined in
Section 1.165-12(c)(1)(v) of the United States Treasury Regulations, or are acquiring through a financial institution, and that the Securities will be held by a financial
institution that agrees to comply with the requirements of Section 165(j)(3)(A), (B) or (C) of the United States Internal Revenue Code of 1986, as amended, and the regulations
thereunder and are not purchasing the Securities on behalf of any United States person other than such a financial institution or for offer to resell or for resale inside the United States. 

        If
you are a dealer, (a) you also represent that you have not offered, sold or delivered, and agree that you will not offer, sell, resell or deliver, any of such Securities,
directly or indirectly, in the United States or to any United States person other than such a financial institution and (b) you agree that you will deliver to all purchasers of such Securities
from you a written statement in this form. 

        As
used herein, "United States" means the United States of America (including the states and the District of Columbia), its territories, its possessions and other areas subject to its
jurisdiction and "United States person" means a citizen or resident of the United States, a corporation, partnership or other entity created or organized in or under the laws of the United States and
an estate or trust the income of which is subject to United States Federal income taxation regardless of its source. 

B-5-1

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