Document:

Proton Laboratories, Inc.

                   April 18, 2007 Stock and Stock Option Plan

1.     PURPOSE.  The  purpose  of  the  Proton  Laboratories,  Inc., dated April
18,2007  Stock  and  Stock  Option Plan ("the Plan") is to promote the financial
interests  of  the  Company,  its subsidiaries and its shareholders by providing
incentives  in the form of stock and stock options to consultants, key employees
and  directors who contribute materially to the success and profitability of the
Company.  The  grants  of  stock  or  stock  options  will  recognize and reward
outstanding individual performances and contributions and will give such persons
a proprietary interest in the Company, thus enhancing their personal interest in
the  Company's  continued  success  and progress. This Plan will also assist the
Company  and  its  subsidiaries  in  attracting,  retaining  and  motivating key
employees  and  directors.  The  options  granted  under this Plan may be either
Incentive  Stock Options, as that term is defined in Section 422 of the Internal
Revenue Code of 1986, as amended, or Nonqualified options taxed under Section 83
of  the  Internal  Revenue  Code  of  1986,  as  amended.

     RULE  16B-3  PLAN.  The Company is subject to the reporting requirements of
the  Securities  Exchange  Act  of  1934,  as  amended (the "Exchange Act"), and
therefore  the Plan is intended to comply with all applicable conditions of Rule
16b-3 (and all subsequent revisions thereof) promulgated under the Exchange Act.
To  the extent any provision of the Plan or action by the Committee or the Board
of  Directors or Committee fails to so comply, it shall be deemed null and void,
to  the  extent  permitted  by  law  and  deemed  advisable by the Committee. In
addition,  the  Committee or the Board of Directors may amend the Plan from time
to  time  as  it  deems  necessary  in  order  to  meet  the requirements of any
amendments to Rule 16b-3 without the consent of the shareholders of the Company.

     EFFECTIVE  DATE OF PLAN. The effective date of this Plan shall be April 18,
2007(the  "Effective Date". The Board of Directors shall, within one year of the
Effective Date, submit the Plan for approval to the shareholders of the Company.
The  plan  shall  be  approved  by at least a majority of shareholders voting in
person or by proxy at a duly held shareholders' meeting, or if the provisions of
the  corporate  charter,  by-laws  or  applicable state law prescribes a greater
degree  of  shareholder approval for this action, the approval by the holders of
that  percentage, at a duly held meeting of shareholders. No Incentive Option or
Nonqualified  Stock 0ption shall be granted pursuant to the Plan ten years after
the  Effective  Date.  In  the  event  that  the  Plan is not    approved by the
shareholders  of  the  Company,  the  Plan shall be deemed to be a non-qualified
stock  option  plan.

     REGISTRATION  OF  SHARES  IN THE PLAN. The Company may register some or all
the  shares  in this plan on SEC Form S-8 or other appropriate form from time to
time.

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2.     DEFINITIONS.  The  following  definitions  shall  apply  to  this  Plan:

     (a)  "Affiliate"  means  any  parent  corporation  and  any  subsidiary
corporation. The term "parent corporation" means any corporation (other than the
Company) in an unbroken chain of corporations ending with the Company if, at the
time  of  the  action  or  transaction, each of the  corporations other than the
Company  owns stock possessing 50% or more of the total combined voting power of
all  classes  of  stock  in one of the other corporations in the chain. The term
"subsidiary  corporation"  means  any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if, at the time of the
action  or transaction, each of the corporations other than the last corporation
in  the  unbroken  chain owns stock possessing 50% or more of the total combined
voting  power  of  all  classes of stock in one of the other corporations in the
chain.

     (b)  "Agreement" means, individually or collectively, any agreement entered
into  pursuant  to the Plan pursuant to which Stock or Stock Options are granted
to  a  participant.

     (c)  "Award"  means  each  of the following granted under this Plan: Stock,
Incentive  Stock  Options  or  Nonqualified  Stock  Options.

     (d)  "Board"  means  the  board  of  directors  of  the  Company.

     (e)  "Cause" shall mean, for purposes of whether and when a participant has
incurred  a  Termination  of Employment for Cause: (i) any act or omission which
permits  the  Company  to terminate the written agreement or arrangement between
the  participant  and the Company or a Subsidiary or Parent for Cause as defined
in  such  agreement  or  arrangement;  or  (ii)  in  the  event there is no such
agreement  or  arrangement  or  the agreement or arrangement does not define the
term  "cause,"  then  Cause  shall  mean  an  act  or  acts of dishonesty by the
participant  resulting  or intending to result directly or indirectly in gain to
or  personal enrichment of the participant at the Company's expense and/or gross
negligence  or  willful  misconduct  on  the  part  of  the  participant.

     (f)  "Change  in  Control"  means,  for  purposes  of  this  Plan:

     i.  there  shall  be  consummated  (a)  any  consolidation or merger of the
Company  in  which the Company is not the continuing or surviving corporation or
pursuant  to  which shares of the Company's common stock would be converted into
cash,  securities or other property, other than a merger of the Company in which
the  holders  of the Company's common stock immediately prior to the merger have
substantially  the same proportionate ownership of common stock of the surviving
corporation  immediately  after  the merger; or (b) any sale, lease, exchange or
other  transfer  (in one transaction or a series of related transactions) of all
or  substantially  all  of  the assets of the Company; (iii) after the effective
date of this Plan a new person becomes the new owner of a simple majority of the
outstanding  common  stock  of  the  Company,  or,

     ii.  the shareholders of the Company shall approve any plan or proposal for
the  liquidation  or  dissolution  of  the  Company.

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     (g)  "Code"  means  the  Internal  Revenue  Code of 1986, as amended, final
Treasury  Regulations  thereunder  and  any  subsequent  Internal  Revenue Code.

     (h)  "Committee" means the Compensation Committee of the Board of Directors
or  such  other  committee  designated  by the Board of Directors. The Committee
shall  be  comprised  solely  of at least two members who are both Disinterested
Persons  and  Outside  Directors.

     (i)  "Common  Stock"  means  the  Common  Stock, par value per share of the
Company  whether presently or hereafter issued, or such other class of shares or
securities  as  to  which  the  Plan  may  be applicable, pursuant to Section 11
herein.

     (j)  "Company"  means  Proton  Laboratories,  Inc.,  a  State of Washington
Corporation  and  includes  any  successor or assignee company corporations into
which  the Company may be merged, changed or consolidated; any company for whose
securities the securities of the Company shall be exchanged; and any assignee of
or  successor  to  substantially  all  of  the  assets  of  the  Company.

     (k)  "Continuous  Service"  means  the  absence  of  any  interruption  or
termination  of  employment  with  or  service  to  the Company or any Parent or
Subsidiary  of the Company that now exists or hereafter is organized or acquired
by  or  acquires  the  Company.  Continuous  Service  shall  not  be  considered
interrupted  in  the  case of sick leave, military leave, or any other bona fide
leave of absence of less than ninety (90) days (unless the participants right to
reemployment is guaranteed by statute or by contract)or in the case of transfers
between  locations  of  the  Company  or  between  the  Company, its Parent, its
Subsidiaries  or  its successors (l) "Date of Grant" means the date on which the
Committee  grants  Stock  or  Stock  Options.

     (m) "Director" means any member of the Board of Directors of the Company or
any  Parent  or  subsidiary  of  the  Company  that  now  exists or hereafter is
organized  or  acquired  by  or  acquires  the  Company.

     (n) "Non Employee Director" means a "Non Employee Director" as that term is
defined  in  Rule  16b-3  under  the  Exchange  Act.

     (o)  "Eligible Persons" shall mean, with respect to the Plan, those persons
who,  at  the  time  that  an  Award  is  granted, are (i)officers, directors or
employees of the Company or Affiliate or (ii) vendors, consultants, attorneys or
subcontractors  of  the  Company  or  its  affiliates.

     (p)  "Employee" means any person employed on an hourly or salaried basis by
the  Company  or  any  Parent  or  Subsidiary  of the Company that now exists or
thereafter  is  organized  or  acquired  by  or  acquires  the  Company.

     (q)  "Exchange  Act"  means the Securities Exchange Act of 1934, as amended
and  the  rules  and  regulations  promulgated  thereunder.

     (r)  "Fair  Market  Value" means (i) if closing prices for the Common Stock
are  not  furnished  through  a quotation medium such as the NYSE, Amex, Nasdaq,
OTCBB  or  Pink  Sheets,  the  value  established  by  the

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Committee,  in its sole discretion, for purposes of the Plan; (ii) if the Common
Stock  is  listed  or  admitted to trade on a quotation medium such as the NYSE,
Amex,  Nasdaq,  OTCBB  or  Pink Sheets, the closing price of the Common Stock so
listed  or  admitted  to  trade  on  such date or, if there is no trading of the
Common  Stock  on  such  date, then the closing price of the Common Stock on the
next preceding day on which there was trading in such shares; or (iii)if trading
in  the stock or a price quotation does not occur on the Date of Grant, the next
preceding  date  on  which  the  stock  was  traded  or  a price was quoted will
determine  the  fair  market  value.

     (s)  "Incentive  Stock  Option"  means  a stock option, granted pursuant to
either  this  Plan  or  any  other  plan  of  the  Company,  that  satisfies the
requirements  of  Section  422  of  the  Code  and that entitles the Optionee to
purchase  stock  of the Company or in a corporation that at the time of grant of
the option was a Parent or subsidiary of the Company or a predecessor company of
any  such  company.

     (t) "Nonqualified Stock Option" means an Option to purchase Common Stock in
the  Company  granted under the Plan other than an Incentive Stock Option within
the   meaning  of  Section  422  of  the  Code.

     (u)  "Option"  means  a  stock  option  granted  pursuant  to  the  Plan.

     (v)  "Option  Period"  means  the period beginning on the Date of Grant and
ending  on  the  day prior to the tenth anniversary of the Date of Grant or such
shorter  termination  date  as  set  by  the  Committee.

     (w)  "Optionee"  means an Employee, Officer Director, vendors, consultants,
attorneys  or  subcontractors  who  receives  an  Option.

     (x)  "Parent" means any corporation    which owns 50% or more of the voting
securities  of  the  Company.

     (y) "Plan" means this April 18, 2007 Stock and Stock Option Plan as amended
from  time  to  time.

     (z)  "Share"  means  the  Common  Stock,  as  adjusted  in  accordance with
Paragraph  11  of  the  Plan.

     (aa)  "Ten  Percent  Shareholder"  means an individual who, at the time the
Stock  or  Option  is  granted, owns Stock possessing more than 10% of the total
combined  voting  power  of  all  classes  of  stock  of  the  Company or of any
Affiliate. An individual shall be considered as owning the Stock owned, directly
or  indirectly, by or for his brothers and sisters (whether by the whole or half
blood),  spouse, ancestors, and lineal descendants; and Stock owned, directly or
indirectly,  by  or  for  a corporation, partnership, estate, or trust, shall be
considered  as being owned proportionately by or for its shareholders, partners,
or  beneficiaries.

     (bb)  "Termination"  or "Termination of Employment" means the occurrence of
any  act  or event whether pursuant to an employment agreement or otherwise that
actually  or effectively causes or results in the person's ceasing, for whatever
reason,  to  be  an  officer  or employee of the Company or of any Subsidiary or
Parent  including,

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without  limitation,  death, disability, dismissal, severance at the election of
the  participant,  retirement,  or  severance as a result of the discontinuance,
liquidation,  sale  or  transfer by the Company or its Subsidiaries or Parent of
all  businesses  owned  or  operated  by  the  Company  or  its  Subsidiaries. A
Termination  of  Employment  shall  occur  to  an  employee who is employed by a
Subsidiary  if the Subsidiary shall cease to be a Subsidiary and the participant
shall  not  immediately  thereafter  become  an  employee  of  the  Company or a
Subsidiary.

     (cc)  "Subsidiary"  means  any  corporation  50%  or  more  of  the  voting
securities  of which are owned directly or indirectly by the Company at any time
during  the  existence  of  this  Plan.

     In  addition,  certain  other  terms  used  in  this  Plan  shall  have the
definitions  given  to  them  in  the  first  place  in  which  they  are  used.

3.     ADMINISTRATION.

a.     This  Plan  will be administered by the Committee. A majority of the full
Committee  constitutes  a quorum for purposes of administering the Plan, and all
determinations  of  the  Committee  shall  be  made by a majority of the members
present  at  a  meeting at which a quorum is present or by the unanimous written
consent  of  the  Committee.

b.     If  no Committee has been appointed, members of the Board may vote on any
matters  affecting  the  administration of the Plan or the grant of any Stock or
Stock  Option  pursuant to the Plan, except that no such member shall act on the
granting  of  Stock or a Stock Option to himself, but such member may be counted
in  determining  the  existence  of  a quorum at any meeting of the Board during
which  action is taken with respect to the granting of Stock or Stock Options to
him.

c.     Subject  to  the  terms  of  this  Plan,  the  Committee has the sole and
exclusive  power  to:

     i.  select  the  participants  in  this  Plan.

     ii.  establish  the  terms  of  the  Stock or Stock Options granted to each
participant  which  may  not  be  the  same  in  each  case.

     iii.  determine  the  total number of Stock or Stock Options to grant to an
Optionee,  which  may  not  be  the  same  in  each  case.

     iv.  fix the Option period for any Option granted which may not be the same
in  each  case.

     v.  make  all  other  determinations necessary or advisable under the Plan.

     vi.  determine  the  minimum number of shares with respect to which Options
may  be  exercised  in  part  at  any  time.

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     vii.  The  Committee  has  the  sole  and  absolute discretion to determine
whether  the  performance  of  an eligible Employee warrants an award under this
Plan,  and  to  determine  the  amount  of  the  award.

     viii.  The Committee has full and exclusive power to construe and interpret
this Plan, to prescribe and rescind rules and regulations relating to this Plan,
and  take  all actions necessary or advisable for the Plan's administration. Any
such  determination  made  by  the  Committee  will  be final and binding on all
persons.

d.     A  member  of  the Committee will not be liable for performing any act or
making  any  determination  in  good  faith.

4.     SHARES SUBJECT TO THIS PLAN. Subject to the provisions of Paragraph 11 of
the Plan, the maximum aggregate number of Shares that may be granted or optioned
and sold under the Plan shall be 4,200,000 Shares. Such shares may be authorized
but  unissued,  or  may  be treasury shares. If an Option shall expire or become
unexercisable  for  any  reason  without  having  been  exercised  in  full, the
unpurchased  Shares  that  were subject to the Option shall, unless the Plan has
then  terminated,  be  available  for  other  Options  under  the  Plan.

     a.     Eligible  Persons.  Every  Eligible  Person, as the Committee in its
sole  discretion  designates, is eligible to participate in this Plan. Directors
who  are  not employees of the Company or any subsidiary or Parent shall only be
eligible  to  receive  Stock  and Incentive Stock Options if and as permitted be
applicable  law  and  regulations. The Committee's award to a participant in any
year  does  not  require  the Committee to make an award that participant in any
other  year.  Furthermore, the Committee may award different amounts of Stock or
Stock Options to different participants. The Committee may consider such factors
as it deems pertinent in selecting participants and in determining the amount of
their  Stock  or  Stock  Options,  including,  without  limitation:

     (i)     the  financial  condition  of  the  Company  or  its  Subsidiaries;

     (ii)     expected  profits  for  the  current  or  future  years;

     (iii)     the  contributions  of  a  prospective  participant  to  the
profitability  and  success  of  the  Company  or  its  Subsidiaries;  and

     (iv)     the  adequacy of the prospective participant's other compensation.

     Participants  may  include  persons  to whom stock, stock options, or other
benefits  previously  were  granted under this or another plan of the Company or
any  Subsidiary,  whether or not the previously granted benefits have been fully
exercised.

     b.     No  Right  of  Employment.  An  Eligible  Person's right, if any, to
continue  to  serve  the Company and its Subsidiaries as an Employee will not be
enlarged  or  otherwise  affected  by  his  designation  as  a

<PAGE>
participant  under  this Plan, and such designation will not in any way restrict
the  right of the Company or any Subsidiary, as the case may be, to terminate at
any  time  the  employment  of  any  Eligible  Person.

5.     REQUIREMENTS  OF OPTION GRANTS. Each Option granted under this Plan shall
satisfy  the  following  requirements.

     a.     Written  Option. An Option shall be evidenced by a written Agreement
specifying:

          (i)  the  number of Shares that may be purchased by its exercise, (ii)
the  intent  of  the Committee as to whether the Option is be an Incentive Stock
Option  or  a Non-qualified Stock Option, (iii) the Option period for any Option
granted  and  (iv)  such  terms  and  conditions consistent with the Plan as the
Committee shall determine, all of which may differ between various Optionees and
various  Agreements.

     b.     Duration  of  Option.  Each  Option may be exercised only during the
Option  Period  designated  for  the  Option by the Committee. At the end of the
Option  Period  the  Option  shall  expire.

     c.     Option  Exerciseability.  The  Committee, on the grant of an Option,
each  Option  shall  be  exercisable  only  in  accordance  with  its  terms.

     d.     Acceleration  of Vesting. Subject to the provisions of Section 5(b),
the  Committee  may, it its sole discretion, provide for the exercise of Options
either  as  to an increased percentage of shares per year or as to all remaining
shares.  Such  acceleration  of  vesting may be declared by the Committee at any
time  before  the  end  of  the  Option  Period, including, if applicable, after
termination of the Optionee's Continuous Service by reason of death, disability,
retirement  or  termination  of  employment.

     e.     Option Price. Except as provided in Section 6(a) the Option price of
each  Share subject to the Option shall equal the Fair Market Value of the Share
on  the  Option's  Date  of  Grant.

     f.     Termination  of  Employment  Any  Option which has not vested at the
time  the  Optionee  ceases  Continuous Service for any reason other than death,
disability  or retirement shall terminate upon the last day that the Optionee is
employed  by the Company. Incentive Stock Options must be exercised within three
months of cessation of Continuous Service for reasons other death, disability or
retirement  in  order  to  qualify  for  Incentive  Stock  Option tax treatment.
Nonqualified  Options  may  be  exercised  any  time  during  the  Option Period
regardless  of  employment  status.

     g.     Death.  In  the  case  of  death  of the Optionee, the beneficiaries
designated  by the Optionee shall have one year from the Optionee's demise or to
the  end  of  the  Option  Period, whichever is earlier, to exercise the Option,
provided, however, the Option may be exercised only for the number of Shares for
which it could have been exercised at the time the Optionee died, subject to any
adjustment  under  Sections  5(d)  and  11.

<PAGE>
     h.     Retirement.  Any  Option  which  has  not  vested  at  the  time the
Optionee  ceases  Continuous  Service due to retirement shall terminate upon the
last day that the Optionee is employed by the Company. Upon retirement Incentive
Stock  Options  must be exercised within three months of cessation of Continuous
Service  in  order  to  qualify  for  Incentive  Stock  Option  tax  treatment.
Nonqualified  Options  may  be  exercised  any  time  during  the  Option Period
regardless  of  employment  status.

     i.     Disability. In the event of termination of Continuous Service due to
total  and permanent disability (within the meaning of Section 422 of the Code),
the  Option shall lapse at the earlier of the end of the Option Period or twelve
months  after the date of such termination, provided, however, the Option can be
exercised  at  the  time the Optionee became disabled, subject to any adjustment
under  Sections  5(d)  and  11.

6.     INCENTIVE  STOCK OPTIONS. Any Options intended to qualify as an Incentive
Stock  Option  shall satisfy the following requirements in addition to the other
requirements  of  the  Plan:

     a.     Ten  Percent  Shareholders.  An  Option  intended  to  qualify as an
Incentive  Stock Option granted to an individual who, on the Date of Grant, owns
stock  possessing  more than ten (10) percent of the total combined voting power
of all classes of stock of either the Company or any Parent or Subsidiary, shall
be  granted  at a price of 110 percent of Fair Market Value on the Date of Grant
and  shall  be  exercised only during the five-year period immediately following
the Date of Grant. In calculating stock ownership of any person, the attribution
rules  of  Section  425(d)  of  the Code will apply. Furthermore, in calculating
stock  ownership,  any  stock that the individual may purchase under outstanding
options  will  not  be  considered.

     b.     Limitation  on  Incentive  Stock  Options. The aggregate Fair Market
Value,  determined on the date of Grant, of stock in the Company exercisable for
the first time by any Optionee during any calendar year, under the Plan  and all
other  plans of the Company or its Parent or Subsidiaries (within the meaning of
Subsection (d) of Section 422 of the Code) in any calendar year shall not exceed
$100,000.00.

     c.     Exercise  of  Incentive  Stock Options. No disposition of the shares
underlying  an Incentive Stock Option may be made within two years from the Date
of  Grant nor within one year after the exercise of such incentive Stock Option.

     d.     Approval  of  Plan.  No  Option  shall qualify as an Incentive Stock
Option unless this   Plan is approved by the shareholders within one year of the
Plan's  adoption  by  the  Board.

7.     NONQUALIFIED  AND  INCENTIVE  STOCK  OPTIONS.  Any Option not intended to
qualify  as  an  Incentive  Stock  Option  shall be a Nonqualified Stock Option.
Nonqualified  Stock  Options shall satisfy each of the requirements of Section 5
of  the  Plan.  An  Option intended to qualify as an Incentive Stock Option, but
which  does  not meet all the requirements of an Incentive Stock Option shall be
treated  as  a  Nonqualified  Stock  Option.

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8.     METHOD  OF  EXERCISE.  An Option granted under this Plan can be exercised
when  the  person entitled to exercise the Option (i) delivers written notice to
the  President  of  the  Company  of the decision to exercise; (ii) concurrently
tenders  to  the Company full payment for the Shares to be purchased pursuant to
the  exercise; and (iii) complies with such other reasonable requirements as the
Committee  establishes pursuant to Section 3 of the Plan. The day that the items
in  this  Section  8.(i), (ii) and (iii) are completed shall be deemed to be the
Exercise Day (the "Exercise Day"). During the lifetime of   the Employee to whom
an  Option  is granted, such Option may be exercised only by him. Payment to the
Company  by the Option holder of the Exercise Price of the Option may be in: (i)
cash,  (ii) cashier's check, (iii) certified check, or, (iv) wholly or partially
in  the  form  of  Common  Stock of the Company that has been held by the option
holder  for at least six months prior to the Exercise Day (the "In-Kind Exercise
Payment  Stock").  The  value of the In-Kind Exercise Payment Stock shall be the
closing  bid price of the Company's Common Stock on the business day immediately
prior to the Exercise Day. No person shall have the rights of a shareholder with
respect  to  Shares  subject  to  an  Option  granted  under  this  Plan until a
certificate  or  certificates  for  the  Shares  have  been  delivered  to  him.

     An  Option  granted  under  this Plan may be exercised in increments of not
less  than  10%  of the full number of Shares as to which it can be exercised. A
partial exercise of an Option will not affect the holder's right to exercise the
Option from time to time in accordance with this Plan as to the remaining Shares
subject  to  the  Option.

9.     TAXES.  COMPLIANCE  WITH LAW: APPROVAL OF REGULATORY BODIES. The Company,
if  necessary  or  desirable,  may  pay  or  withhold  the  amount  of  any  tax
attributable  to  any Shares deliverable or amounts payable under this Plan, and
the  Company may defer making delivery or payment until it is indemnified to its
satisfaction  for  the  tax.  Only in compliance with all applicable federal and
state  laws  and  regulations,  including, without limitation, state and federal
securities  laws,  and  the  rules of all stock exchanges on which the Company's
stock  is  listed  at  any time shall Options under the Plan be exerciseable, or
shall  Stock  approved for issuance under this Plan be deliverable.  Further, an
Option  is exercisable only if either (i) a registration statement pertaining to
the  Shares  to  be  issued  upon exercise of the Option has been filed with and
declared  effective  by  the  Securities  and  Exchange  Commission  and remains
effective  on  the  date of exercise, or (ii) an exemption from the registration
requirements  of  applicable  securities  laws  is available. This plan does not
require  the  Company, however, to file such registration statement or to assure
the  availability  of such exemptions. Any certificate issued to evidence Shares
issued under the Plan may bear such legends and statements, and shall be subject
to  such  transfer  restrictions,  as  the  Committee  deems advisable to assure
compliance with federal and state laws and regulations and with the requirements
of  this Section 9 of the Plan. No Option may be exercised, and no Shares may be
issued  under  this Plan, until the Company has obtained the consent or approval
of every regulatory body, federal or state, having jurisdiction over such matter
as  the  Committee  deems  advisable.

<PAGE>
     Each  Person  who  acquires  the  right to exercise an Option by bequest or
inheritance  may  be required by the Committee to furnish reasonable evidence of
ownership  of  the  Option  as  a  condition  to  his exercise of the Option. In
addition,  the  Committee  may  require  such  consents  and  release  of taxing
authorities  as  the  Committee  deems  advisable.

10.     ASSIGNABILITY.  An  Option  granted  under this Plan is not transferable
except  by  will  or  the  laws  of  descent and distribution. The Option may be
exercised  only  by  the  Optionee  during  the  life  of  the  Optionee.  More
particularly,  but without limitation of the foregoing, the Option may be not be
assigned  or transferred except as provided above and shall not be assignable by
operation  of  law  and shall not be subject to execution, attachment or similar
process.  Any  attempted  assignment,  transfer  or distribution contrary to the
provisions  hereof  shall  be  null  and  void  and  without  effect.

11.     ADJUSTMENT  UPON  CHANGE  OF  SHARES.  If  a  reorganization,  merger,
consolidation,  reclassification,  recapitalization,  combination or exchange of
shares,  stock  split,  stock  dividend,  rights offering, or other expansion or
contraction  of  the Common Stock of the Company occurs, the number and class of
Shares  for  which  Options  are  authorized  to be granted under this Plan, the
number and class of Shares then subject to Options previously granted under this
Plan,  and  the price per Share payable upon exercise of each Option outstanding
under  this  Plan  shall  be equitably adjusted by the Committee to reflect such
changes.  To the extent deemed equitable and appropriate by the Committee or the
Board,  subject  to  any  required  action  by  shareholders,  in  any  merger,
consolidation,  reorganization,  liquidation  or dissolution, any Option granted
under  the  Plan  shall  pertain to the securities and other property to which a
holder  of  the  number of Shares of stock covered by the Option would have been
entitled  to  receive  in  connection  with  such  event.

12.     ACCELERATIONS  OF  OPTIONS  UPON  CHANGE IN CONTROL. In the event that a
Change  of Control has occurred with respect to the Company, any and all Options
will  become  fully vested and immediately exercisable with such acceleration to
occur  without  the  requirement of any further act by either the Company or the
participant,  subject  to  Section  9  hereof.

13.     LIABILITY  OF  THE  COMPANY.  The Company, its Parent and any Subsidiary
that  is  in  existence or hereafter comes into existence shall not be liable to
any  person  for  any  tax consequences expected but not realized by an Eligible
Person  or  other  person  due  to  the  exercise  of  an  Option.

14.     EXPENSES  OF  PLAN. The Company shall bear the expenses of administering
the  Plan.

15.     DURATION  OF PLAN. Stock may be granted and Options may be granted under
this  Plan  only  within  10  years  from  the  effective  date  of  the  Plan.

16.     AMENDMENT,  SUSPENSION OR TERMINATION OF PLAN. The Board of Directors of
the  Company  may amend, terminate or suspend this Plan at any time, in its sole
and  absolute  discretion;  provided,  however,  that  to the extent required to
qualify  this  Plan  under  Rule  16b-3

<PAGE>
promulgated  under  Section  16 of the Exchange Act, no amendment that would (a)
materially  increase the number of shares of Stock that may be issued under this
Plan, (b) materially modify the requirements as to eligibility for participation
in  this  Plan,  or  (c)  otherwise materially increase the benefits accruing to
participants  under  this  Plan,  shall  be  made  without  the  approval of the
Company's  shareholders;  provided further, however, that to the extent required
to maintain the status of any Incentive Option under the Code, no amendment that
would  (a)  change  the  aggregate number of shares of Stock which may be issued
under  Incentive  Options, (b) change the class of employees eligible to receive
Incentive  Options,  or  (c)  decrease  the Option price for   Incentive Options
below  the  Fair  Market  Value of the Stock at the time it is granted, shall be
made  without  the  approval  of  the  Company's  shareholders.  Subject  to the
preceding  sentence,  the  Board  of  Directors shall have the power to make any
changes  in  the Plan and in the regulations and administrative provisions under
it  or  in any outstanding Incentive Option as in the opinion of counsel for the
Company  may  be  necessary  or  appropriate  from  time  to  time to enable any
Incentive  Option granted under this Plan to continue to qualify as an incentive
stock  option  or such other stock option as may be defined under the Code so as
to  receive  preferential  federal  income  tax  treatment.  Notwithstanding the
foregoing,  no  amendment,  suspension  or  termination of the Plan shall act to
impair  or  extinguish  rights  in  Options  already granted at the date of such
amendment,  suspension  or  termination.

17.     FORFEITURE.  Notwithstanding  any  other provisions of this Plan, if the
Committee finds by a majority vote after full consideration of the facts that an
Eligible  Person, before or after termination of his employment with the Company
or  an Affiliate for any reason (a) committed or engaged in fraud, embezzlement,
theft,  commission  of  a  felony,  or  proven  dishonesty  in the course of his
employment  by the Company or an Affiliate, which conduct damaged the Company or
Affiliate,  or  disclosed  trade  secrets of the Company or an Affiliate, or (b)
participated, engaged in or had a material, financial or other interest, whether
as  an  employee,  officer,  director,  consultant,  attorney,  contractor,
shareholder,  owner,  or otherwise, in any commercial endeavor anywhere which is
competitive with the business of the Company or an Affiliate without the written
consent  of  the  Company  or  Affiliate,  the Eligible Person shall forfeit all
outstanding  Options,  including  all  exercised  Options  and  other situations
pursuant  to which the Company has not yet delivered a stock certificate. Clause
(b)  shall  not be deemed to have been violated solely by reason of the Eligible
Person's  ownership of stock or securities of any publicly owned corporation, if
that  ownership  does  not  result  in effective control of the corporation. The
decision of the Committee as to the cause of an Employee's discharge, the damage
done  to  the  Company  or  an Affiliate, and the extent of an Eligible Person's
competitive  activity  shall  be  final.  No decision of the Committee, however,
shall  affect the finality of the discharge of the Employee by the Company or an
Affiliate  in  any  manner.

18.     INDEMNIFICATION  OF  THE  COMMITTEE  AND  THE  BOARD  OF DIRECTORS. With
respect to administration of this Plan, the Company shall indemnify each present
and  future member of the Committee and the Board of Directors against, and each
member  of  the  Committee  and the Board of Directors shall be entitled without
further  act  on  his  part  to

<PAGE>
indemnity  from  the  Company  for, all expenses (including attorney's fees, the
amount  of  judgments and the amount of approved settlements made with a view to
the  curtailment  of costs of litigation, other than amounts paid to the Company
itself)  reasonably  incurred  by  him  in connection with or arising out of any
action,  suit,  or proceeding in which he may be involved by reason of his being
or  having been a member of the Committee and/or the Board of Directors, whether
or  not  he  continues  to  be  a  member  of  the Committee and/or the Board of
Directors  at the time of incurring the expenses, including, without limitation,
matters  as  to  which  he  shall  be  finally  adjudged  in any action, suit or
proceeding  to  have been found to have been negligent in the performance of his
duty  as  a  member  of  the  Committee or the Board of Directors. However, this
indemnity shall not include any expenses incurred by any member of the Committee
and/or  the  Board  of  Directors  in respect of matters as to which he shall be
finally  adjudged in any action, suit or proceeding to have been guilty of gross
negligence  or  willful misconduct in the performance of his duty as a member of
the  Committee  and  the  Board  of  Directors.  In  addition,  no  right  of
indemnification  under  this  Plan  shall  be available to or enforceable by any
member  of the Committee and the Board of Directors unless, within 60 days after
institution of any action, suit or proceeding, he shall have offered the Company
the  opportunity  to  handle  and defend same at its own expense. The failure to
notify  the  Company  within  60  days shall only affect a Director or committee
member's  right  to  indemnification  if  said  failure  to notify results in an
impairment  of the Company's rights or is detrimental to the Company. This right
of  indemnification  shall  inure  to  the  benefit  of  the heirs, executors or
administrators  of  each  member of the Committee and the Board of Directors and
shall  be in addition to all other rights to which a member of the Committee and
the  Board  of  Directors  may  be  entitled  as  a  matter of law, contract, or
otherwise.

19.     GENDER.  If  the context requires, words of one gender when used in this
Plan  shall  include  the  others and words used in the singular or plural shall
include  the  other.

20.     HEADINGS. Headings of Articles and Sections are included for convenience
of  reference  only and do not constitute part of the Plan and shall not be used
in  construing  the  terms  of  the  Plan.

21.     OTHER COMPENSATION PLANS. The adoption of this Plan shall not affect any
other  stock,  stock option, incentive or other compensation or benefit plans in
effect for the Company or any Affiliate, nor shall the Plan preclude the Company
from  establishing  any  other  forms  of  incentive  or  other compensation for
employees  of  the  Company  or  any  Affiliate.

22.     OTHER  OPTIONS  OR  AWARDS.  The  grant of an Option or Awards shall not
confer upon the Eligible Person the right to receive any future or other Options
or  Awards  under  this Plan, whether or not Options or Awards may be granted to
similarly  situated  Eligible Persons, or the right to receive future Options or
Awards  upon  the  same  terms  or  conditions  as  previously  granted.

23.     GOVERNING  LAW.  The  provisions  of  this  Plan  shall  be  construed,
administered,  and  governed  under  the  laws  of  the  State  of  California.Unassociated Document

    EXHIBIT
      4.4 

     

    INSITE
      VISION INCORPORATED 

    Issuer
      

     

    AND
      

     

    [___________________]
      

    Trustee
      

     

    INDENTURE
      

     

    Dated
      as of [________]   

     

    Senior
      Debt Securities 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

       

      CROSS-REFERENCE
        TABLE

       

      
        	 	 	 
	
                Section
                  of Trust Indenture Act of 1939, as Amended 

              	 	
                Indenture

              
	 	 	 
	
                310(a)

              	 	
                7.9

              
	 	 	 
	
                310(b)

              	 	
                7.8;
                  7.10

              
	 	 	 
	
                310(c)

              	 	
                Inapplicable

              
	 	 	 
	
                311(a)

              	 	
                7.13

              
	 	 	 
	
                311(b)

              	 	
                7.13

              
	 	 	 
	
                311(c)

              	 	
                Inapplicable

              
	 	 	 
	
                312(a)

              	 	
                5.1;
                  5.2(a)

              
	 	 	 
	
                312(b)

              	 	
                5.2(c)

              
	 	 	 
	
                312(c)

              	 	
                Inapplicable

              
	 	 	 
	
                313(a)

              	 	
                5.4(a)

              
	 	 	 
	
                313(b)

              	 	
                5.4(b)

              
	 	 	 
	
                313(c)

              	 	
                5.4(a);
                  5.4(b)

              
	 	 	 
	
                313(d)

              	 	
                5.4(c)

              
	 	 	 
	
                314(a)

              	 	
                5.3;
                  4.6

              
	 	 	 
	
                314(b)

              	 	
                Inapplicable

              
	 	 	 
	
                314(c)

              	 	
                2.5;
                  13.7

              
	 	 	 
	
                314(d)

              	 	
                Inapplicable

              
	 	 	 
	
                314(e)

              	 	
                13.7

              
	 	 	 
	
                314(f)

              	 	
                Inapplicable

              
	 	 	 
	
                315(a)

              	 	
                7.1(a);
                  7.2

              
	 	 	 
	
                315(b)

              	 	
                7.14

              
	 	 	 
	
                315(c)

              	 	
                7.1

              
	 	 	 
	
                315(d)

              	 	
                7.1(b)

              
	 	 	 
	
                315(e)

              	 	
                6.7;
                  7.6

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	 	 
	
                316(a)

              	 	
                6.6;
                  8.4

              
	 	 	 
	
                316(b)

              	 	
                6.4

              
	 	 	 
	
                316(c)

              	 	
                8.1

              
	 	 	 
	
                317(a)

              	 	
                6.2

              
	 	 	 
	
                317(b)

              	 	
                4.3

              
	 	 	 
	
                318(a)

              	 	
                13.9

              

      

       

      
        	 	 	 
	
                 

              	 	
                The
                  cross-reference table set forth above does not constitute part of the
                  Indenture and shall not have any bearing on the interpretation
                  of any of
                  its terms or provisions.

              

      

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

     

    
      	
               

            	
                

            	
               

            	
                

            	
              PAGE

            
	 	 	 	 	 
	
              ARTICLE I

            	
                

            	
              DEFINITIONS

            	
                

            	
              1

            
	 	 	 
	
              Section 1.1  

            	
                

            	
              Definitions
                of Terms

            	
                

            	
              1

            
	 	 	 
	
              ARTICLE II

            	
                

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

            	
                

            	
              4

            
	 	 	 
	
              Section 2.1  

            	
                

            	
              Designation
                and Terms of Securities

            	
                

            	
              4

            
	 	 	 
	
              Section 2.2  

            	
                

            	
              Form
                of Securities and Trustee’s Certificate

            	
                

            	
              5

            
	 	 	 
	
              Section 2.3  

            	
                

            	
              Denominations:
                Provisions for Payment

            	
                

            	
              5

            
	 	 	 
	
              Section 2.4  

            	
                

            	
              Execution
                and Authentications

            	
                

            	
              6

            
	 	 	 
	
              Section 2.5  

            	
                

            	
              Registration
                of Transfer and Exchange

            	
                

            	
              7

            
	 	 	 
	
              Section 2.6  

            	
                

            	
              Temporary
                Securities

            	
                

            	
              8

            
	 	 	 
	
              Section 2.7  

            	
                

            	
              Mutilated,
                Destroyed, Lost or Stolen Securities

            	
                

            	
              8

            
	 	 	 
	
              Section 2.8  

            	
                

            	
              Cancellation

            	
                

            	
              9

            
	 	 	 
	
              Section 2.9  

            	
                

            	
              Benefits
                of Indenture

            	
                

            	
              9

            
	 	 	 
	
              Section 2.10

            	
                

            	
              Authenticating
                Agent

            	
                

            	
              9

            
	 	 	 
	
              Section 2.11

            	
                

            	
              Global
                Securities

            	
                

            	
              9

            
	 	 	 
	
              ARTICLE III

            	
                

            	
              REDEMPTION
                OF SECURITIES AND SINKING FUND PROVISIONS

            	
                

            	
              11

            
	 	 	 
	
              Section 3.1  

            	
                

            	
              Redemption

            	
                

            	
              11

            
	 	 	 
	
              Section 3.2  

            	
                

            	
              Notice
                of Redemption

            	
                

            	
              11

            
	 	 	 
	
              Section 3.3  

            	
                

            	
              Payment
                Upon Redemption

            	
                

            	
              12

            
	 	 	 
	
              Section 3.4  

            	
                

            	
              Sinking
                Fund

            	
                

            	
              12

            
	 	 	 
	
              Section 3.5  

            	
                

            	
              Satisfaction
                of Sinking Fund Payments with Securities

            	
                

            	
              12

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              Section 3.6  

            	
                

            	
              Redemption
                of Securities for Sinking Fund

            	
                

            	
              13

            
	 	 	 
	
              ARTICLE IV

            	
                

            	
              COVENANTS

            	
                

            	
              13

            
	 	 	 
	
              Section 4.1  

            	
                

            	
              Payment
                of Principal, Premium and Interest

            	
                

            	
              13

            
	 	 	 
	
              Section 4.2  

            	
                

            	
              Maintenance
                of Office or Agency

            	
                

            	
              13

            
	 	 	 
	
              Section 4.3  

            	
                

            	
              Paying
                Agents

            	
                

            	
              13

            

    

    

    
      	
                 
                Section 4.4  

            	
                

            	
              Appointment
                to Fill Vacancy in Office of Trustee

            	
                

            	
              14

            
	 	 	 
	
                 
                Section 4.5  

            	
                

            	
              Compliance
                with Consolidation Provisions

            	
                

            	
              14

            
	 	 	 	 	 
	
                 
                Section 4.6 

            	 	
              Statement
                by Officer as to Default

            	 	
              14

            
	 	 	 
	
              ARTICLE V

            	
                

            	
              SECURITYHOLDERS’
                LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

            	
                

            	
              15

            
	 	 	 
	
                 
                Section 5.1  

            	
                

            	
              Company
                to Furnish Trustee Names and Addresses of Securityholders

            	
                

            	
              15

            
	 	 	 
	
                 
                Section 5.2  

            	
                

            	
              Preservation
                of Information; Communications With Securityholders

            	
                

            	
              15

            
	 	 	 
	
                 
                Section 5.3  

            	
                

            	
              Reports
                by the Company

            	
                

            	
              15

            
	 	 	 
	
                 
                Section 5.4  

            	
                

            	
              Reports
                by the Trustee

            	
                

            	
              16

            
	 	 	 
	
              ARTICLE VI

            	
                

            	
              REMEDIES
                OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

            	
                

            	
              16

            
	 	 	 
	
                 
                Section 6.1  

            	
                

            	
              Events
                of Default

            	
                

            	
              16

            
	
               

            	 	 
	
                 
                Section 6.2  

            	
                

            	
              Collection
                of Indebtedness and Suits for Enforcement by Trustee

            	
                

            	
              17

            
	
               

            	 	 
	
                 
                Section 6.3  

            	
                

            	
              Application
                of Moneys Collected

            	
                

            	
              18

            
	
               

            	 	 
	
                 
                Section 6.4  

            	
                

            	
              Limitation
                on Suits

            	
                

            	
              19

            
	
               

            	 	 
	
                 
                Section 6.5  

            	
                

            	
              Rights
                and Remedies Cumulative; Delay or Omission Not Waiver

            	
                

            	
              19

            
	
               

            	 	 
	
                 
                Section 6.6  

            	
                

            	
              Control
                by Securityholders

            	
                

            	
              20

            
	
               

            	 	 
	
                 
                Section 6.7  

            	
                

            	
              Undertaking
                to Pay Costs

            	
                

            	
              20

            
	 	 	 
	
              ARTICLE VII

            	
                

            	
              CONCERNING
                THE TRUSTEE

            	
                

            	
              20

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                7.1  

            	
                

            	
              Certain
                Duties and Responsibilities of Trustee

            	
                

            	
              20

            
	 	 	 
	
              Section
                7.2  

            	
                

            	
              Certain
                Rights of Trustee

            	
                

            	
              21

            
	 	 	 
	
              Section
                7.3  

            	
                

            	
              Trustee
                Not Responsible for Recitals or Issuance or Securities

            	
                

            	
              23

            
	 	 	 
	
              Section
                7.4  

            	
                

            	
              May
                Hold Securities

            	
                

            	
              23

            
	 	 	 
	
              Section
                7.5  

            	
                

            	
              Moneys
                Held in Trust

            	
                

            	
              23

            
	 	 	 
	
              Section
                7.6  

            	
                

            	
              Compensation
                and Reimbursement

            	
                

            	
              23

            
	 	 	 
	
              Section
                7.7  

            	
                

            	
              Reliance
                on Officers’ Certificate

            	
                

            	
              24

            
	 	 	 
	
              Section
                7.8  

            	
                

            	
              Disqualification;
                Conflicting Interests

            	
                

            	
              24

            
	 	 	 
	
              Section
                7.9  

            	
                

            	
              Corporate
                Trustee Required; Eligibility

            	
                

            	
              24

            
	 	 	 
	
              Section 7.10

            	
                

            	
              Resignation
                and Removal; Appointment of Successor

            	
                

            	
              24

            

    

    

    
      	
              Section 7.11

            	
                

            	
              Acceptance
                of Appointment By Successor

            	
                

            	
              25

            
	 	 	 
	
              Section 7.12

            	
                

            	
              Merger,
                Conversion, Consolidation or Succession to Business

            	
                

            	
              26

            
	 	 	 
	
              Section 7.13

            	
                

            	
              Preferential
                Collection of Claims Against the Company

            	
                

            	
              27

            
	 	 	 
	
              Section 7.14

            	
                

            	
              Notice
                of Default

            	
                

            	
              27

            
	 	 	 
	
              ARTICLE VIII

            	
                

            	
              CONCERNING
                THE SECURITYHOLDERS

            	
                

            	
              27

            
	 	 	 
	
              Section
                8.1  

            	
                

            	
              Evidence
                of Action by Securityholders

            	
                

            	
              27

            
	 	 	 
	
              Section
                8.2  

            	
                

            	
              Proof
                of Execution by Securityholders

            	
                

            	
              27

            
	 	 	 
	
              Section
                8.3  

            	
                

            	
              Who
                May be Deemed Owners

            	
                

            	
              27

            
	 	 	 
	
              Section
                8.4  

            	
                

            	
              Certain
                Securities Owned by Company Disregarded

            	
                

            	
              28

            
	 	 	 
	
              Section
                8.5  

            	
                

            	
              Actions
                Binding on Future Securityholders

            	
                

            	
              28

            
	 	 	 
	
              ARTICLE IX

            	
                

            	
              SUPPLEMENTAL
                INDENTURES

            	
                

            	
              28

            
	 	 	 
	
              Section
                9.1  

            	
                

            	
              Supplemental
                Indentures Without the Consent of Securityholders

            	
                

            	
              28

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                9.2  

            	
                

            	
              Supplemental
                Indentures With Consent of Securityholders

            	
                

            	
              29

            
	 	 	 
	
              Section
                9.3  

            	
                

            	
              Effect
                of Supplemental Indentures

            	
                

            	
              29

            
	 	 	 
	
              Section
                9.4  

            	
                

            	
              Securities
                Affected by Supplemental Indentures

            	
                

            	
              30

            
	 	 	 
	
              Section
                9.5  

            	
                

            	
              Execution
                of Supplemental Indentures

            	
                

            	
              30

            
	 	 	 
	
              ARTICLE X

            	
                

            	
              SUCCESSOR
                ENTITY

            	
                

            	
              30

            
	 	 	 
	
              Section 10.1

            	
                

            	
              Company
                May Consolidate, Etc

            	
                

            	
              30

            
	 	 	 
	
              Section 10.2

            	
                

            	
              Successor
                Entity Substituted

            	
                

            	
              31

            
	 	 	 
	
              Section 10.3

            	
                

            	
              Evidence
                of Consolidation, Etc. to Trustee

            	
                

            	
              31

            
	 	 	 
	
              ARTICLE XI

            	
                

            	
              SATISFACTION
                AND DISCHARGE

            	
                

            	
              31

            
	 	 	 
	
              Section 11.1

            	
                

            	
              Satisfaction
                and Discharge of Indenture

            	
                

            	
              31

            
	 	 	 
	
              Section 11.2

            	
                

            	
              Discharge
                of Obligations

            	
                

            	
              32

            
	 	 	 
	
              Section 11.3

            	
                

            	
              Deposited
                Moneys to be Held in Trust

            	
                

            	
              32

            
	 	 	 
	
              Section 11.4

            	
                

            	
              Payment
                of Moneys Held by Paying Agents

            	
                

            	
              32

            
	 	 	 
	
              Section 11.5

            	
                

            	
              Repayment
                to Company

            	
                

            	
              32

            
	 	 	 
	
              ARTICLE XII

            	
                

            	
              IMMUNITY
                OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

            	
                

            	
              32

            

    

    

    
      	
              Section 12.1  

            	
                

            	
              No
                Recourse

            	
                

            	
              32

            
	 	 	 
	
              ARTICLE XIII

            	
                

            	
              MISCELLANEOUS
                PROVISIONS

            	
                

            	
              33

            
	 	 	 
	
              Section 13.1  

            	
                

            	
              Effect
                on Successors and Assigns

            	
                

            	
              33

            
	 	 	 
	
              Section 13.2  

            	
                

            	
              Actions
                by Successor

            	
                

            	
              33

            
	 	 	 
	
              Section 13.3  

            	
                

            	
              Surrender
                of Company Powers

            	
                

            	
              33

            
	 	 	 
	
              Section 13.4  

            	
                

            	
              Notices

            	
                

            	
              33

            
	 	 	 
	
              Section 13.5  

            	
                

            	
              Governing
                Law

            	
                

            	
              33

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              Section 13.6  

            	
                

            	
              Treatment
                of Securities as Debt

            	
                

            	
              34

            
	 	 	 
	
              Section 13.7  

            	
                

            	
              Compliance
                Certificates and Opinions

            	
                

            	
              34

            
	 	 	 
	
              Section 13.8  

            	
                

            	
              Payments
                on Business Days

            	
                

            	
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              Section 13.9  

            	
                

            	
              Conflict
                with Trust Indenture Act

            	
                

            	
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              Section 13.10

            	
                

            	
              Counterparts

            	
                

            	
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              Section 13.11

            	
                

            	
              Separability

            	
                

            	
              34

            
	 	 	 
	
              Section 13.12

            	
                

            	
              Compliance
                Certificates

            	
                

            	
              34

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    INDENTURE
      

     

    INDENTURE,
      dated as of [_________]
      by and
      between InSite Vision Incorporated, a Delaware corporation (the “Company”), and
 [________] , as trustee (the “Trustee”): 

     

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

     

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

     

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

     

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

     

    ARTICLE
      I

    DEFINITIONS
      

     

    SECTION
      1.1 DEFINITIONS OF TERMS. 

     

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

     

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

     

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

     

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

     

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

     

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

     

    “Certificate”
      means a certificate signed by the chairman of the Board of Directors, any
      principal executive officer, any chief executive officer, any president, any
      senior vice president, any vice president, any principal financial officer
      or
      any principal accounting officer, any treasurer or any assistant treasurer,
      any
      controller or any assistant controller, any secretary or any assistant secretary
      of the Company. The Certificate need not comply with the provisions of
      Section 13.7. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    “Corporate
      Trust Office” means the office of the Trustee at which, at any particular time,
      its corporate trust business shall be principally administered, which office
      at
      the date hereof is located at
            ,
            ;
      Attention:
            , except
      that whenever a provision herein refers to an office or agency of the Trustee
      in
      the Borough of Manhattan, the City of New York, such office is located, at
      the
      date hereof, at
            , Attn:
      Corporate Trust Services. 

     

    “Custodian”
      means any receiver, trustee, assignee, liquidator or similar official under
      any
      Bankruptcy Law. 

     

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

     

    “Depositary”
      means, with respect to Securities of any series for which the Company shall
      determine that such Securities will be issued as a Global Security, The
      Depository Trust Company, New York, New York, another clearing agency, or any
      successor registered as a clearing agency under the Securities and Exchange
      Act
      of 1934, as amended (the “Exchange Act”), or other applicable statute or
      regulation, which, in each case, shall be designated by the Company pursuant
      to
      either Section 2.1 or 2.11. 

     

    “Event
      of
      Default” means, with respect to Securities of a particular series, any event
      specified in Section 6.1, continued for the period of time, if any, therein
      designated. 

     

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

     

    “Governmental
      Obligations” means securities that are (a) direct obligations of the United
      States of America for the payment of which its full faith and credit is pledged
      or (b) obligations of a Person controlled or supervised by and acting as an
      agency or instrumentality of the United States of America, the payment of which
      is unconditionally guaranteed as a full faith and credit obligation by the
      United States of America that, in either case, are not callable or redeemable
      at
      the option of the issuer thereof, and shall also include a depositary receipt
      issued by a bank (as defined in Section 3(a)(2) of the Securities Act of
      1933, as amended) as custodian with respect to any such Governmental Obligation
      or a specific payment of principal of or interest on any such Governmental
      Obligation held by such custodian for the account of the holder of such
      depositary receipt; provided, however, that (except as required by law) such
      custodian is not authorized to make any deduction from the amount payable to
      the
      holder of such depositary receipt from any amount received by the custodian
      in
      respect of the Governmental Obligation or the specific payment of principal
      of
      or interest on the Governmental Obligation evidenced by such depositary receipt.
      

     

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

     

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

     

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

     

    “Officers’
      Certificate” means a certificate signed by a chief executive officer, a
      president, a senior vice president or a vice president and by the chief
      financial officer or the treasurer or an assistant treasurer or the controller
      or an assistant controller or the secretary or an assistant secretary of the
      Company that is delivered to the Trustee in accordance with the terms hereof.
      Each such certificate shall include the statements provided for in
      Section 13.7, if and to the extent required by the provisions thereof.

     

    
      
        
        

      

      
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    “Opinion
      of Counsel” means an opinion in writing subject to customary exceptions of legal
      counsel, who may be an employee of or counsel for the Company, that is delivered
      to the Trustee in accordance with the terms hereof. Each such opinion shall
      include the statements provided for in Section 13.7, if and to the extent
      required by the provisions thereof. 

     

    “Outstanding,”
      when used with reference to Securities of any series, means, subject to the
      provisions of Section 8.4, as of any particular time, all Securities of
      that series theretofore authenticated and delivered by the Trustee under this
      Indenture, except (a) Securities theretofore canceled by the Trustee or any
      paying agent, or delivered to the Trustee or any paying a agent for cancellation
      or that have previously been canceled; (b) Securities or portions thereof
      for the payment or redemption of which moneys or Governmental Obligations in
      the
      necessary amount shall have been deposited in trust with the Trustee or with
      any
      paying agent (other than the Company) or shall have been set aside and
      segregated in trust by the Company (if the Company shall act as its own paying
      agent); provided, however, that if such Securities or portions of such
      Securities are to be redeemed prior to the maturity thereof, notice of such
      redemption shall have been given as in Article Three provided, or provision
      satisfactory to the Trustee shall have been made for giving such notice; and
      (c) Securities in lieu of or in substitution for which other Securities
      shall have been authenticated and delivered pursuant to the terms of
      Section 2.7. 

     

    “Person”
      means any individual, corporation, partnership, joint venture, joint-stock
      company, limited liability company, unincorporated organization or government
      or
      any agency or political subdivision thereof. 

     

    “Predecessor
      Security” of any particular Security means every previous Security evidencing
      all or a portion of the same debt as that evidenced by such particular Security;
      and, for the purposes of this definition, any Security authenticated and
      delivered under Section 2.7 in lieu of a lost, destroyed or stolen Security
      shall be deemed to evidence the same debt as the lost, destroyed or stolen
      Security. 

     

    “Responsible
      Officer” when used with respect to the Trustee means any officer in the
      Corporate Trust Office of the Trustee, or to whom any corporate trust matter
      is
      referred because of his or her knowledge of and familiarity with the particular
      subject. 

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
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    ARTICLE
      II

    ISSUE,
      DESCRIPTION, TERMS, EXECUTION, REGISTRATION

    AND
      EXCHANGE OF SECURITIES

     

    SECTION
       2.1 DESIGNATION AND TERMS OF SECURITIES. 

     

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

     

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

     

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

     

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

     

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

     

    (5)
      the
      right, if any, to extend the interest payment periods and the duration of such
      extension;

     

    (6)
      the
      date or dates from which such interest shall accrue, the Interest Payment Dates
      on which such interest will be payable or the manner of determination of such
      Interest Payment Dates, the place(s) of payment, and the record date for the
      determination of holders to whom interest is payable on any such Interest
      Payment Dates or the manner of determination of such record dates;

     

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

     

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

     

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

     

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

     

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

     

    (12)
      the
      identity of the Depositary for any series of Securities issued; 

     

    
      
        
        

      

      
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    (13)
      if
      other than the principal amount thereof, the portion of the principal amount
      of
      Securities of the series which shall be payable upon declaration of acceleration
      of the maturity thereof pursuant to Section 6.1; 

     

    (14)
      any
      additional or different Events of Default or restrictive covenants or financial
      covenants provided for with respect to the Securities of the series;

     

    (15)
      if
      other than dollars, the coin or currency in which the Securities of the series
      are denominated (including, but not limited to, foreign currency); and

     

    (16)
      any
      restrictions on transfer, sale or assignment of the Securities of the series.
      

     

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

     

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

     

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

     

    SECTION 2.2
      FORM OF SECURITIES AND TRUSTEE’S CERTIFICATE. 

     

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

     

    SECTION 
      2.3 DENOMINATIONS: PROVISIONS FOR PAYMENT. 

     

    The
      Securities shall be issuable as registered Securities without coupons and
      in the denominations of one thousand U.S. dollars ($1,000) or any integral
      multiple thereof, subject to Section 2.1(10). The Securities of a
      particular series shall bear interest payable on the dates and at the rate
      specified with respect to that series. The principal of and the interest on
      the
      Securities of any series, as well as any premium thereon in case of redemption
      thereof prior to maturity, shall be payable in the coin or currency of the
      United States of America that at the time is legal tender for public and private
      debt, at the office or agency of the Company maintained for that purpose in
      the
      Borough of Manhattan, the City and State of New York. Each Security shall be
      dated the date of its authentication. Interest on the Securities shall be
      computed on the basis of a 360-day year composed of twelve 30-day months.

     

    The
      interest installment on any Security that is payable, and is punctually paid
      or
      duly provided for, on any Interest Payment Date for Securities of that series
      shall be paid to the Person in whose name said Security (or one or more
      Predecessor Securities) is registered at the close of business on the regular
      record date for such interest installment. In the event that any Security of
      a
      particular series or portion thereof is called for redemption and the redemption
      date is subsequent to a regular record date with respect to any Interest Payment
      Date and prior to such Interest Payment Date, interest on such Security will
      be
      paid upon presentation and surrender of such Security as provided in
      Section 3.3. 

     

    
      
        
        

      

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

     

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

     

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

     

    Unless
      otherwise set forth in a Board Resolution or one or more indentures supplemental
      hereto establishing the terms of any series of Securities pursuant to
      Section 2.1 hereof, the term “regular record date” as used in this Section
      with respect to a series of Securities and any Interest Payment Date for such
      series shall mean either the fifteenth day of the month immediately preceding
      the month in which an Interest Payment Date established for such series pursuant
      to Section 2.1 hereof shall occur, if such Interest Payment Date is the
      first day of a month, or the last day of the month immediately preceding the
      month in which an Interest Payment Date established for such series pursuant
      to
      Section 2.1 hereof shall occur, if such Interest Payment Date is the
      fifteenth day of a month, whether or not such date is a Business Day.

     

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

     

    SECTION
       2.4 EXECUTION AND AUTHENTICATIONS.

     

    The
      Securities shall be signed on behalf of the Company by its chief executive
      officer, or one of its presidents, or one of its senior vice presidents, or
      one
      of its vice presidents, or its chief financial officer, or its chief legal
      officer, or its treasurer, or one of its assistant treasurers, or its controller
      or one of its assistant controllers, or its secretary, or one of its assistant
      secretaries, under its corporate seal attested by its secretary or one of its
      assistant secretaries. Signatures may be in the form of a manual or facsimile
      signature. 

     

    The
      Company may use the facsimile signature of any Person who shall have been a
      chief executive officer, president, senior vice president or vice president
      thereof, chief financial officer, chief legal officer, treasurer or assistant
      treasurer, controller or assistant controller, secretary or assistant secretary
      thereof, notwithstanding the fact that at the time the Securities shall be
      authenticated and delivered or disposed of such Person shall have ceased to
      be
      such an officer of the Company. The seal of the Company may be in the form
      of a
      facsimile of such seal and may be impressed, affixed, imprinted or otherwise
      reproduced on the Securities. The Securities may contain such notations, legends
      or endorsements required by law, stock exchange rule or usage. Each Security
      shall be dated the date of its authentication by the Trustee. 

     

    
      
        
        

      

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

     

    In
      authenticating such Securities and accepting the additional responsibilities
      under this Indenture in relation to such Securities, the Trustee shall be
      entitled to receive, and (subject to Section 7.1) shall be fully protected
      in relying upon, an Opinion of Counsel stating that the form and terms thereof
      have been established in conformity with the provisions of this Indenture.
      

     

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

     

    SECTION
      2.5 REGISTRATION OF TRANSFER AND EXCHANGE. 

     

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

     

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

     

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

     

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

     

    (c)
      No
      service charge shall be made for any exchange or registration of transfer of
      Securities, or issue of new Securities in case of partial redemption of any
      series, but the Company may require payment of a sum sufficient to cover any
      tax
      or other governmental charge in relation thereto, other than exchanges pursuant
      to Section 2.6, Section 3.3(b) and Section 9.4 not involving any
      transfer. 

     

    
      
        
        

      

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

     

    SECTION
      2.6 TEMPORARY SECURITIES. 

     

    Pending
      the preparation of definitive Securities of any series, the Company may execute,
      and the Trustee shall authenticate and deliver, temporary Securities of any
      authorized denomination. Such temporary Securities shall be substantially in
      the
      form of the definitive Securities in lieu of which they are issued, but with
      such omissions, insertions and variations as may be appropriate for temporary
      Securities, all as may be determined by the Company. Every temporary Security
      of
      any series shall be executed by the Company and be authenticated by the Trustee
      upon the same conditions and in substantially the same manner, and with like
      effect, as the definitive Securities of such series. Without unnecessary delay
      the Company will execute and will furnish definitive Securities of such series
      and thereupon any or all temporary Securities of such series may be surrendered
      in exchange therefore (without charge to the holders), at the office or agency
      of the Company designated for the purpose in the Borough of Manhattan, the
      City
      and State of New York, and the Trustee shall authenticate and such office or
      agency shall deliver in exchange for such temporary Securities an equal
      aggregate principal amount of definitive Securities of such series, unless
      the
      Company advises the Trustee to the effect that definitive Securities need not
      be
      executed and furnished until further notice from the Company. Until so
      exchanged, the temporary Securities of such series shall be entitled to the
      same
      benefits under this Indenture as definitive Securities of such series
      authenticated and delivered hereunder. 

     

    SECTION
      2.7 MUTILATED, DESTROYED, LOST OR STOLEN SECURITIES. 

     

    In
      case
      any temporary Security shall become mutilated or be destroyed, lost or stolen,
      the Company (subject to the next succeeding sentence) shall execute, and upon
      the Company’s request the Trustee (subject as aforesaid) shall authenticate and
      deliver, a new Security of the same series, bearing a number not
      contemporaneously outstanding, in exchange and substitution for the mutilated
      Security, or in lieu of and in substitution for the Security so destroyed,
      lost
      or stolen. In every case the applicant for a substituted Security shall furnish
      to the Company and the Trustee such security or indemnity as may be required
      by
      them to save each of them harmless, and, in every case of destruction, loss
      or
      theft, the applicant shall also furnish to the Company and the Trustee evidence
      to their satisfaction of the destruction, loss or theft of the applicant’s
      Security and of the ownership thereof. The Trustee may authenticate any such
      substituted Security and deliver the same upon the written request or
      authorization of any officer of the Company. Upon the issuance of any
      substituted Security, the Company may require the payment of a sum sufficient
      to
      cover any tax or other governmental charge that may be imposed in relation
      thereto and any other expenses (including the fees and expenses of the Trustee)
      connected therewith. 

     

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

     

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

     

    
      
        
        

      

      
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    SECTION
      2.8 CANCELLATION. 

     

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

     

    SECTION
      2.9 BENEFITS OF INDENTURE. 

     

    Nothing
      in this Indenture or in the Securities, express or implied, shall give or be
      construed to give to any Person, other than the parties hereto and the holders
      of the Securities any legal or equitable right, remedy or claim under or in
      respect of this Indenture, or under any covenant, condition or provision herein
      contained; all such covenants, conditions and provisions being for the sole
      benefit of the parties hereto and of the holders of the Securities.

     

    SECTION
      2.10 AUTHENTICATING AGENT. 

     

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

     

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

     

    SECTION
      2.11 GLOBAL SECURITIES. 

     

    (a)
      If
      the Company shall establish pursuant to Section 2.01 that the Securities of
      a
      particular series are to be issued as a Global Security, the Company shall
      execute and the Trustee shall, in accordance with Section 2.4, authenticate
      and deliver, a Global Security that (i) shall represent, and shall be
      denominated in an amount equal to the aggregate principal amount of, all of
      the
      Outstanding Securities of such series, (ii) shall be registered in the name
      of the Depositary or its nominee, (iii) shall be delivered by the Trustee
      to the Depositary or pursuant to the Depositary’s instruction and
      (iv) shall bear a legend substantially to the following effect: “Except as
      otherwise provided in Section 2.11 of the Indenture, this Security may be
      transferred, in whole but not in part, only to another nominee of the Depositary
      or to a successor Depositary or to a nominee of such successor Depositary.”

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (b)
      Notwithstanding the provisions of Section 2.5, the Global Security of a
      series may be transferred, in whole but not in part and in the manner provided
      in Section 2.5, only to another nominee of the Depositary for such series,
      or to a successor Depositary for such series selected or approved by the Company
      or to a nominee of such successor Depositary. 

     

    (c)
      If at
      any time the Depositary for a series of the Securities notifies the Company
      that
      it is unwilling or unable to continue as Depositary for such series or if at
      any
      time the Depositary for such series shall no longer be registered or in good
      standing under the Exchange Act, or other applicable statute or regulation,
      and
      a successor Depositary for such series is not appointed by the Company within
      90
      days after the Company receives such notice or becomes aware of such condition,
      as the case may be, or if an Event of Default has occurred and is continuing
      and
      the Company has received a request from the Depositary, this Section 2.11
      shall no longer be applicable to the Securities of such series and the Company
      will execute, and subject to Section 2.4, the Trustee will authenticate and
      deliver the Securities of such series in definitive registered form without
      coupons, in authorized denominations, and in an aggregate principal amount
      equal
      to the principal amount of the Global Security of such series in exchange for
      such Global Security. In addition, the Company may at any time determine that
      the Securities of any series shall no longer be represented by a Global Security
      and that the provisions of this Section 2.11 shall no longer apply to the
      Securities of such series. In such event the Company will execute and, subject
      to Section 2.4, the Trustee, upon receipt of an Officers’ Certificate
      evidencing such determination by the Company, will authenticate and deliver
      the
      Securities of such series in definitive registered form without coupons, in
      authorized denominations, and in an aggregate principal amount equal to the
      principal amount of the Global Security of such series in exchange for such
      Global Security. Upon the exchange of the Global Security for such Securities
      in
      definitive registered form without coupons, in authorized denominations, the
      Global Security shall be canceled by the Trustee. Such Securities in definitive
      registered form issued in exchange for the Global Security pursuant to this
      Section 2.11(c) shall be registered in such names and in such authorized
      denominations as the Depositary, pursuant to instructions from its direct or
      indirect participants or otherwise, shall instruct the Trustee. The Trustee
      shall deliver such Securities to the Depositary for delivery to the Persons
      in
      whose names such Securities are so registered. 

     

    (d)
      None
      of the Trustee, the Security Registrar or any paying agent shall have any
      responsibility or obligation to any beneficial owner in a Global Security,
      a
      member of, or a participant in the Depositary or other Person with respect
      to
      the accuracy of the records of the Depositary or its nominee or of any
      participant or member thereof, with respect to any ownership interest in the
      Securities or with respect to the delivery to any participant, member,
      beneficial owner or other Person (other than the Depositary) of any notice
      (including any notice of redemption) or the payment of any amount, under or
      with
      respect to such Securities. All notices and communications to be given to the
      Securityholders and all payments to be made to Securityholders under the
      Securities and this Indenture shall be given or made only to or upon the order
      of the registered holders (which shall be the Depositary or its nominee in
      the
      case of the Global Security). The rights of beneficial owners in the Global
      Security shall be exercised only through the Depositary subject to the
      applicable procedures. The Trustee, the Security Registrar and any paying agent
      shall be entitled to rely and shall be fully protected in relying upon
      information furnished by the Depositary with respect to its members,
      participants and any beneficial owners. The Trustee, the Security Registrar
      and
      any paying agent shall be entitled to deal with any depositary (including the
      Depositary), and any nominee thereof, that is the registered holder of any
      Global Security for all purposes of this Indenture relating to such Global
      Security (including the payment of principal, premium, if any, and interest
      and
      additional amounts, if any, and the giving of instructions or directions by
      or
      to the owner or holder of a beneficial ownership interest in such Global
      Security) as the sole holder of such Global Security and shall have no
      obligations to the beneficial owners thereof. None of the Trustee, the Security
      Registrar or any paying agent shall have any responsibility or liability for
      any
      acts or omissions of any such depositary with respect to such Global Security,
      for the records of any such depositary, including records in respect of
      beneficial ownership interests in respect of any such Global Security, for
      any
      transactions between such depositary and any participant in such depositary
      or
      between or among any such depositary, any such participant and/or any holder
      or
      owner of a beneficial interest in such Global Security, or for any transfers
      of
      beneficial interests in any such Global Security. 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Notwithstanding
      the foregoing, with respect to any Global Security, nothing herein shall prevent
      the Company, the Trustee, the Security Registrar, any paying agent, or any
      other
      agent of the Company or any agent of the Trustee, from giving effect to any
      written certification, proxy or other authorization furnished by any depositary
      (including the Depositary), as a Securityholder, with respect to such Global
      Security or impair, as between such depositary and owners of beneficial
      interests in such Global Security, the operation of customary practices
      governing the exercise of the rights of such depositary (or its nominee) as
      Holder of such Global Security.

    

     

    ARTICLE
      III

    REDEMPTION
      OF SECURITIES AND

    SINKING
      FUND PROVISIONS

     

    SECTION
      3.1 REDEMPTION. 

     

    The
      Company may redeem the Securities of any series issued hereunder on and after
      the dates and in accordance with the terms established for such series pursuant
      to Section 2.1 hereof. 

     

    SECTION
      3.2 NOTICE OF REDEMPTION. 

     

    (a)
      In
      case the Company shall desire to exercise such right to redeem all or, as the
      case may be, a portion of the Securities of any series in accordance with any
      right the Company reserved for itself to do so pursuant to Section 2.1
      hereof, the Company shall, or shall cause the Trustee to, give notice of such
      redemption to holders of the Securities of such series to be redeemed by
      mailing, first class postage prepaid, a notice of such redemption not less
      than
      30 days and not more than 90 days before the date fixed for redemption of that
      series to such holders at their last addresses as they shall appear upon the
      Security Register, unless a shorter period is specified in the Securities to
      be
      redeemed. Any notice that is mailed in the manner herein provided shall be
      conclusively presumed to have been duly given, whether or not the registered
      holder receives the notice. In any case, failure duly to give such notice to
      the
      holder of any Security of any series designated for redemption in whole or
      in
      part, or any defect in the notice, shall not affect the validity of the
      proceedings for the redemption of any other Securities of such series or any
      other series. In the case of any redemption of Securities prior to the
      expiration of any restriction on such redemption provided in the terms of such
      Securities or elsewhere in this Indenture, the Company shall furnish the Trustee
      with an Officers’ Certificate evidencing compliance with any such restriction.

     

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

     

    In
      case
      any Security is to be redeemed in part only, the notice that relates to such
      Security shall state the portion of the principal amount thereof to be redeemed,
      and shall state that on and after the redemption date, upon surrender of such
      Security, a new Security or Securities of such series in principal amount equal
      to the unredeemed portion thereof will be issued.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

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

     

    SECTION
      3.3 PAYMENT UPON REDEMPTION. 

     

    (a)
      If
      the giving of notice of redemption shall have been completed as above provided,
      the Securities or portions of Securities of the series to be redeemed specified
      in such notice shall become due and payable on the date and at the place stated
      in such notice at the applicable redemption price, together with interest
      accrued to the date fixed for redemption and interest on such Securities or
      portions of Securities shall cease to accrue on and after the date fixed for
      redemption, unless the Company shall default in the payment of such redemption
      price and accrued interest with respect to any such Security or portion thereof.
      On presentation and surrender of such Securities on or after the date fixed
      for
      redemption at the place of payment specified in the notice, said Securities
      shall be paid and redeemed at the applicable redemption price for such series,
      together with interest accrued thereon to the date fixed for redemption (but
      if
      the date fixed for redemption is an interest payment date, the interest
      installment payable on such date shall be payable to the registered holder
      at
      the close of business on the applicable record date pursuant to
      Section 2.3). 

     

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

     

    SECTION
      3.4 SINKING FUND. 

     

    The
      provisions of Sections 3.4, 3.5 and 3.6 shall be applicable to any sinking
      fund
      for the retirement of Securities of a series, except as otherwise specified
      as
      contemplated by Section 2.1 for Securities of such series.

     

    The
      minimum amount of any sinking fund payment provided for by the terms of
      Securities of any series is herein referred to as a “mandatory sinking fund
      payment,” and any payment in excess of such minimum amount provided for by the
      terms of Securities of any series is herein referred to as an “optional sinking
      fund payment”. If provided for by the terms of Securities of any series, the
      cash amount of any sinking fund payment may be subject to reduction as provided
      in Section 3.5. 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
      3.5 SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES. 

     

    The
      Company (i) may deliver Outstanding Securities of a series and
      (ii) may apply as a credit Securities of a series that have been redeemed
      either at the election of the Company pursuant to the terms of such Securities
      or through the application of permitted optional sinking fund payments pursuant
      to the terms of such Securities, in each case in satisfaction of all or any
      part
      of any sinking fund payment with respect to the Securities of such series
      required to be made pursuant to the terms of such Securities as provided for
      by
      the terms of such series, provided that such Securities have not been previously
      so credited. Such Securities shall be received and credited for such purpose
      by
      the Trustee at the redemption price specified in such Securities for redemption
      through operation of the sinking fund and the amount of such sinking fund
      payment shall be reduced accordingly. 

     

    
      
        
        

      

      
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    SECTION
      3.6
      REDEMPTION OF SECURITIES FOR SINKING FUND. 

     

    Not
      less
      than 45 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 the series, the portion thereof, if any, that is to
      be
      satisfied by delivering and crediting Securities of that series pursuant to
      Section 3.5 and the basis for such credit and will, together with such
      Officers’ Certificate, deliver to the Trustee any Securities to be so delivered.
      Not less than 30 days before each such sinking fund payment date the Trustee
      shall select the Securities to be redeemed upon such sinking fund payment date
      in the manner specified in Section 3.2 and cause notice of the redemption
      thereof to be given in the name of and at the expense of the Company in the
      manner provided in Section 3.2. Such notice having been duly given, the
      redemption of such Securities shall be made upon the terms and in the manner
      stated in Section 3.3. 

     

    ARTICLE
      IV

    COVENANTS

     

    SECTION
      4.1 PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST.

     

    The
      Company will duly and punctually pay or cause to be paid the principal of (and
      premium, if any) and interest on the Securities of that series at the time
      and
      place and in the manner provided herein and established with respect to such
      Securities. 

     

    SECTION
      4.2 MAINTENANCE OF OFFICE OR AGENCY. 

     

    So
      long
      as any series of the Securities remain Outstanding, the Company agrees to
      maintain an office or agency in the Borough of Manhattan, the City and State
      of
      New York, with respect to each such series and at such other location or
      locations as may be designated as provided in this Section 4.2, where
      (i) Securities of that series may be presented for payment,
      (ii) Securities of that series may be presented as herein above authorized
      for registration of transfer and exchange, and (iii) notices and demands to
      or upon the Company in respect of the Securities of that series and this
      Indenture may be given or served, such designation to continue with respect
      to
      such office or agency until the Company shall, by written notice signed by
      any
      officer authorized to sign an Officers’ Certificate and delivered to the
      Trustee, designate some other office or agency for such purposes or any of
      them.
      If at any time the Company shall fail to maintain any such required office
      or
      agency or shall fail to furnish the Trustee with the address thereof, such
      presentations, notices and demands may be made or served at the Corporate Trust
      Office of the Trustee, and the Company hereby appoints the Trustee as its agent
      to receive all such presentations, notices and demands. The Company initially
      appoints the corporate trust office of [                        ],
      an
      affiliate of the Trustee, located in the Borough of Manhattan, the City of
      New
      York as its paying agent with respect to the Securities. 

     

    SECTION
      4.3 PAYING AGENTS. 

     

    (a)
      If
      the Company shall appoint one or more paying agents for all or any series of
      the
      Securities, other than the Trustee, the Company will cause each such paying
      agent to execute and deliver to the Trustee an instrument in which such agent
      shall agree with the Trustee, subject to the provisions of this Section:

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

    (c)
      Notwithstanding anything in this Section to the contrary, (i) the agreement
      to hold sums in trust as provided in this Section is subject to the provisions
      of Section 11.5, and (ii) the Company may at any time, for the purpose
      of obtaining the satisfaction and discharge of this Indenture or for any other
      purpose, pay, or direct any paying agent to pay, to the Trustee all sums held
      in
      trust by the Company or such paying agent, such sums to be held by the Trustee
      upon the same terms and conditions as those upon which such sums were held
      by
      the Company or such paying agent; and, upon such payment by the Company or
      any
      paying agent to the Trustee, the Company or such paying agent shall be released
      from all further liability with respect to such money. 

     

    SECTION
      4.4 APPOINTMENT TO FILL VACANCY IN OFFICE OF TRUSTEE. 

     

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

     

    SECTION
      4.5 COMPLIANCE WITH CONSOLIDATION PROVISIONS. 

     

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

     

    SECTION
      4.6 STATEMENT BY OFFICERS AS TO DEFAULT. 

     

    The
      Company will deliver to the Trustee, within 120 days after the end of each
      fiscal year of the Company, an Officers’ Certificate signed by the Company's
      Chief Executive Officer or Chief Financial Officer, stating whether or not
      to
      the best knowledge of the signer thereof the Company is in default in the
      performance and observance of any of the terms, provisions and conditions of
      this Indenture (without regard to any period of grace or requirement of notice
      provided hereunder) and, if the Company shall be in default, specifying all
      such
      defaults and the nature and status thereof of which such signer may have
      knowledge. 

     

    
      
        
        

      

      
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    ARTICLE
      V

    SECURITYHOLDERS’
      LISTS AND REPORTS BY

    THE
      COMPANY AND THE TRUSTEE

     

    SECTION
      5.1 COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF
      SECURITYHOLDERS.

     

    The
      Company will furnish or cause to be furnished to the Trustee: (1) not more
      than
      15 days after each regular record date (as defined in Section 2.3) a list,
      in
      such form as the Trustee may reasonably require, of the names and addresses
      of
      the Holders of each series of Securities as of such regular record date,
      provided that the Company shall not be obligated to furnish or cause to furnish
      such list at any time that the list shall not differ in any respect from the
      most recent list furnished to the Trustee by the Company; and  (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 as of a date not more than 15 days prior to the time such list is
      furnished; provided, however, that, in either case, no such list need be
      furnished for any series for which the Trustee shall be the Security
      Registrar.

     

     

    SECTION
      5.2 PRESERVATION OF INFORMATION; COMMUNICATIONS WITH SECURITYHOLDERS.

     

    (a)
      The
      Trustee shall preserve, in as current a form as is reasonably practicable,
      all
      information as to the names and addresses of the holders of Securities contained
      in the most recent list furnished to it as provided in Section 5.1 and as
      to the names and addresses of holders of Securities received by the Trustee
      in
      its capacity as Security Registrar (if acting in such capacity). 

     

    (b)
      The
      Trustee may destroy any list furnished to it as provided in Section 5.1
      upon receipt of a new list so furnished. 

     

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

     

    SECTION
      5.3 REPORTS BY THE COMPANY. 

     

    (a)
      The
      Company covenants and agrees to file with the Trustee, within 15 days after
      the
      Company has filed 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) that 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 such sections, then to file with the Trustee and the Commission,
      in
      accordance with the rules and regulations prescribed from time to time by the
      Commission, such of the supplementary and periodic information, documents and
      reports that 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. 

     

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

     

    (c)
      The
      Company covenants and agrees to transmit by mail, first class postage prepaid,
      or reputable overnight delivery service that provides for evidence of receipt,
      to the Securityholders, as their names and addresses appear upon the Security
      Register, within 30 days after the filing thereof with the Trustee, such
      summaries of any information, documents and reports required to be filed by
      the
      Company pursuant to subsections (a) and (b) of this Section as may be required
      by rules and regulations prescribed from time to time by the Commission.

     

    
      
        
        

      

      
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    (d)
      Delivery of reports, information and documents to the Trustee under this Section
      5.03 is for informational purposes only and the Trustee’s receipt of the
      foregoing shall not constitute constructive notice of any information contained
      therein or determinable from information contained therein, including the
      Company’s compliance with any of its respective covenants hereunder (as to which
      the Trustee is entitled to rely exclusively on Officers’ Certificates, except as
      otherwise provided herein).

     

    SECTION
      5.4 REPORTS BY THE TRUSTEE. 

     

    (a)
      On or
      before May 1 in each year in which any of the Securities are Outstanding,
      the Trustee shall transmit by mail, first class postage prepaid, to the
      Securityholders, as their names and addresses appear upon the Security Register,
      a brief report dated as of the preceding May 1, if and to the extent
      required under Section 313(a) of the Trust Indenture Act. 

     

    (b)
      The
      Trustee shall comply with Section 313(b) and 313(c) of the Trust Indenture
      Act. 

     

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

     

    ARTICLE
      VI

    REMEDIES
      OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT 

     

    SECTION
      6.1 EVENTS OF DEFAULT. 

     

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

     

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

     

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

     

    (3)
      the
      Company fails to observe or perform any other of its covenants or agreements
      with respect to that series contained in this Indenture or otherwise established
      with respect to that series of Securities pursuant to Section 2.1 hereof
      (other than a covenant or agreement that has been expressly included in this
      Indenture solely for the benefit of one or more series of Securities other
      than
      such series) for a period of 90 days after the date on which written notice
      of
      such failure, requiring the same to be remedied and stating that such notice
      is
      a “Notice of Default” hereunder, shall have been given to the Company by the
      Trustee, by registered or certified mail, or to the Company and the Trustee
      by
      the holders of at least 25% in principal amount of the Securities of that series
      at the time Outstanding; 

     

    
      
        
        

      

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

     

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

     

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

     

    (c)
      At
      any time after the principal of (and premium, if any, on) and accrued and unpaid
      interest on the Securities of that series shall have been so declared due and
      payable, and before any judgment or decree for the payment of the moneys due
      shall have been obtained or entered as hereinafter provided, the holders of
      a
      majority in aggregate principal amount of the Securities of that series then
      Outstanding hereunder, by written notice to the Company and the Trustee, may
      rescind and annul such declaration and its consequences if: (i) the Company
      has paid or deposited with the Trustee a sum sufficient to pay all matured
      installments of interest upon all the Securities of that series and the
      principal of (and premium, if any, on) any and all Securities of that series
      that shall have become due otherwise than by acceleration (with interest upon
      such principal and premium, if any, and, to the extent that such payment is
      enforceable under applicable law, upon overdue installments of interest, at
      the
      rate per annum expressed in the Securities of that series to the date of such
      payment or deposit) and the amount payable to the Trustee under
      Section 7.6, and (ii) any and all Events of Default under the
      Indenture with respect to such series, other than the nonpayment of principal
      on
      (and premium, if any, on) and accrued and unpaid interest on Securities of
      that
      series that shall not have become due by their terms, shall have been remedied
      or waived as provided in Section 6.6. 

     

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

     

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

     

    SECTION
      6.2 COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE.

     

    (a)
      The
      Company covenants that (i) in case it shall default in the payment of any
      installment of interest on any of the Securities of a series, and such default
      shall have continued for a period of 90 days, or (ii) in case it shall
      default in the payment of the principal of (or premium, if any, on) any of
      the
      Securities of a series when the same shall have become due and payable, whether
      upon maturity of the Securities of a series or upon redemption or upon
      declaration or otherwise, or in any payment required by any sinking or analogous
      fund established with respect to that series as and when the same shall have
      become due and payable, then, upon demand of the Trustee, the Company will
      pay
      to the Trustee, for the benefit of the holders of the Securities of that series,
      the whole amount that then shall have been become due and payable on all such
      Securities for principal (and premium, if any) or interest, or both, as the
      case
      may be, with interest upon the overdue principal (and premium, if any) and
      (to
      the extent that payment of such interest is enforceable under applicable law)
      upon overdue installments of interest at the rate per annum expressed in the
      Securities of that series; and, in addition thereto, such further amount as
      shall be sufficient to cover the costs and expenses of collection, and the
      amount payable to the Trustee under Section 7.6. 

     

    
      
        
        

      

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

     

    (c)
      In
      case of any receivership, insolvency, liquidation, bankruptcy, reorganization,
      readjustment, arrangement, composition or judicial proceedings affecting the
      Company, or its creditors or property, the Trustee shall have power to intervene
      in such proceedings and take any action therein that may be permitted by the
      court and shall (except as may be otherwise provided by law) be entitled to
      file
      such proofs of claim and other papers and documents as may be necessary or
      advisable in order to have the claims of the Trustee and of the holders of
      Securities of such series allowed for the entire amount due and payable by
      the
      Company under the Indenture at the date of institution of such proceedings
      and
      for any additional amount that may become due and payable by the Company after
      such date, and to collect and receive any moneys or other property payable
      or
      deliverable on any such claim, and to distribute the same after the deduction
      of
      the amount payable to the Trustee under Section 7.6; and any receiver,
      assignee or trustee in bankruptcy or reorganization is hereby authorized by
      each
      of the holders of Securities of such series to make such payments to the
      Trustee, and, in the event that the Trustee shall consent to the making of
      such
      payments directly to such Securityholders, to pay to the Trustee any amount
      due
      it under Section 7.6. 

     

    (d)
      All
      rights of action and of asserting claims under this Indenture, or under any
      of
      the terms established with respect to Securities of that series, may be enforced
      by the Trustee without the possession of any of such Securities, or the
      production thereof at any trial or other proceeding relative thereto, and any
      such suit or proceeding instituted by the Trustee shall be brought in its own
      name as trustee of an express trust, and any recovery of judgment shall, after
      provision for payment to the Trustee of any amounts due under Section 7.6,
      be for the ratable benefit of the holders of the Securities of such series.
       In
      case
      of an Event of Default hereunder, the Trustee may in its discretion proceed
      to
      protect and enforce the rights vested in it by this Indenture by such
      appropriate judicial proceedings as the Trustee shall deem most effectual to
      protect and enforce any of such rights, either at law or in equity or in
      bankruptcy or otherwise, whether for the specific enforcement of any covenant
      or
      agreement contained in the Indenture or in aid of the exercise of any power
      granted in this Indenture, or to enforce any other legal or equitable right
      vested in the Trustee by this Indenture or by law. Nothing
      contained herein shall be deemed to authorize the Trustee to authorize or
      consent to or accept or adopt on behalf of any Securityholder any plan of
      reorganization, arrangement, adjustment or composition affecting the Securities
      of that series or the rights of any holder thereof or to authorize the Trustee
      to vote in respect of the claim of any Securityholder in any such proceeding.
      

     

    SECTION
      6.3 APPLICATION OF MONEYS COLLECTED. 

     

    Any
      moneys collected by the Trustee pursuant to this Article with respect to a
      particular series of Securities shall be applied in the following order, at
      the
      date or dates fixed by the Trustee and, in case of the distribution of such
      moneys on account of principal (or premium, if any) or interest, upon
      presentation of the Securities of that series, and notation thereon of the
      payment,
      if only partially paid, and upon surrender thereof if fully paid: 

     

    
      
        
        

      

      
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    FIRST:
      To
      the payment of reasonable costs and expenses of collection and of all amounts
      payable to the Trustee under Section 7.6; 

     

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

     

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

     

    SECTION
      6.4 LIMITATION ON SUITS. 

     

    No
      holder
      of any Security of any series shall have any right by virtue or by availing
      of
      any provision of this Indenture to institute any suit, action or proceeding
      in
      equity or at law upon or under or with respect to this Indenture or for the
      appointment of a receiver or trustee, or for any other remedy hereunder, unless
      (i) such holder previously shall have given to the Trustee written notice
      of an Event of Default and of the continuance thereof with respect to the
      Securities of such series specifying such Event of Default, as hereinbefore
      provided; (ii) the holders of not less than 25% in aggregate principal
      amount of the Securities of such series then Outstanding shall have made written
      request upon the Trustee to institute such action, suit or proceeding in its
      own
      name as Trustee hereunder; (iii) such holder or holders shall have offered
      to the Trustee such reasonable indemnity as it may require against the costs,
      expenses and liabilities to be incurred therein or thereby; (iv) the
      Trustee for 60 days after its receipt of such notice, request and offer of
      indemnity, shall have failed to institute any such action, suit or proceeding
      and (v) during such 60 day period, the holders of a majority in principal
      amount of the Securities of that series do not give the Trustee a direction
      inconsistent with the request. 

     

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

     

    SECTION
      6.5 RIGHTS AND REMEDIES CUMULATIVE; DELAY OR OMISSION NOT WAIVER. 

     

    (a)
      Except as otherwise provided in Section 2.7, all powers and remedies given
      by this Article to the Trustee or to the Securityholders shall, to the extent
      permitted by law, be deemed cumulative and not exclusive of any other powers
      and
      remedies available to the Trustee or the holders of the Securities, by judicial
      proceedings or otherwise, to enforce the performance or observance of the
      covenants and agreements contained in this Indenture or otherwise established
      with respect to such Securities. 

     

    (b)
      No
      delay or omission of the Trustee or of any holder of any of the Securities
      to
      exercise any right or power accruing upon any Event of Default occurring and
      continuing as aforesaid shall impair any such right or power, or shall be
      construed to be a waiver of any such default or an acquiescence therein; and,
      subject to the provisions of Section 6.4, every power and remedy given

     

    by
      this
      Article or by law to the Trustee or the Securityholders may be exercised from
      time to time, and as often as shall be deemed expedient, by the Trustee or
      by
      the Securityholders. 

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    SECTION
      6.6 CONTROL BY SECURITYHOLDERS. 

     

    The
      holders of a majority in aggregate principal amount of the Securities of any
      series at the time Outstanding, determined in accordance with Section 8.1,
      shall have the right to direct the time, method and place of conducting any
      proceeding for any remedy available to the Trustee, or exercising any trust
      or
      power conferred on the Trustee with respect to such series; provided, however,
      that such direction shall not be in conflict with any rule of law or with this
      Indenture. Subject to the provisions of Section 7.1, the Trustee shall have
      the right to decline to follow any such direction if the Trustee in good faith
      shall, by a Responsible Officer or officers of the Trustee, determine that
      the
      proceeding so directed, subject to the Trustee’s duties under the Trust
      Indenture Act, would involve the Trustee in personal liability or might be
      unduly prejudicial to the Securityholders not involved in the proceeding. The
      holders of a majority in aggregate principal amount of the Securities of any
      series at the time Outstanding affected thereby, determined in accordance with
      Section 8.1, may on behalf of the holders of all of the Securities of such
      series waive any past default in the performance of any of the covenants
      contained herein or established pursuant to Section 2.1 with respect to
      such series and its consequences, except a default in the payment of the
      principal of, or premium, if any, or interest on, any of the Securities of
      that
      series as and when the same shall become due by the terms of such Securities
      otherwise than by acceleration (unless such default has been cured and a sum
      sufficient to pay all matured installments of interest and principal and any
      premium has been deposited with the Trustee (in accordance with
      Section 6.1(c)). Upon any such waiver, the default covered thereby shall be
      deemed to be cured for all purposes of this Indenture and the Company, the
      Trustee and the holders of the Securities of such series shall be restored
      to
      their former positions and rights hereunder, respectively; but no such waiver
      shall extend to any subsequent or other default or impair any right consequent
      thereon. 

     

    SECTION
      6.7 UNDERTAKING TO PAY COSTS. 

     

    All
      parties to this Indenture agree, and each holder of any Securities by such
      holder’s acceptance thereof shall be deemed to have agreed, that any court may
      in its discretion require, in any suit for the enforcement of any right or
      remedy under this Indenture, or in any suit against the Trustee for any action
      taken or omitted by it as Trustee, the filing by any party litigant in such
      suit
      of an undertaking to pay the costs of such suit, and that such court may in
      its
      discretion assess reasonable costs, including reasonable attorneys’ fees,
      against any party litigant in such suit, having due regard to the merits and
      good faith of the claims or defenses made by such party litigant; but the
      provisions of this Section shall not apply to any suit instituted by the
      Trustee, to any suit instituted by any Securityholder, or group of
      Securityholders, holding more than 10% in aggregate principal amount of the
      Outstanding Securities of any series, or to any suit instituted by any
      Securityholder for the enforcement of the payment of the principal of (or
      premium, if any) or interest on any Security of such series, on or after the
      respective due dates expressed in such Security or established pursuant to
      this
      Indenture. 

     

    ARTICLE
      VII

    CONCERNING
      THE TRUSTEE 

     

    SECTION
      7.1 CERTAIN DUTIES AND RESPONSIBILITIES OF TRUSTEE. 

     

    (a)
      The
      Trustee, prior to the occurrence of an Event of Default with respect to the
      Securities of a series and after the curing of all Events of Default with
      respect to the Securities of that series that may have occurred, shall undertake
      to perform with respect to the Securities of such series such duties and only
      such duties as are specifically set forth in this Indenture, and no implied
      covenants shall be read into this Indenture against the Trustee. In case an
      Event of Default with respect to the Securities of a series has occurred (that
      has not been cured or waived), the Trustee shall exercise with respect to
      Securities of that series such of the rights and powers vested in it by this
      Indenture, and use the same degree of care and skill in their exercise, as
      a
      prudent man would exercise or use under the circumstances in the conduct of
      his
      own affairs. 

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

    (iii)
      the
      Trustee shall not be liable with respect to any action taken or omitted to
      be
      taken by it in good faith in accordance with the direction of the holders of
      not
      less than a majority in principal amount of the Securities of any series at
      the
      time Outstanding relating to the time, method and place of conducting any
      proceeding for any remedy available to the Trustee, or exercising any trust
      or
      power conferred upon the Trustee under this Indenture with respect to the
      Securities of that series; and 

     

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

     

    SECTION
      7.2 CERTAIN RIGHTS OF TRUSTEE. 

     

    Except
      as
      otherwise provided in Section 7.1: 

     

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

     

    (b)
      Any
      request, direction, order or demand of the Company mentioned herein shall be
      sufficiently evidenced by a Board Resolution or an instrument signed in the
      name
      of the Company by any authorized officer of the Company (unless other evidence
      in respect thereof is specifically prescribed herein); 

     

    
      
        
        

      

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

     

    (d)
      The
      Trustee shall be under no obligation to exercise any of the rights or powers
      vested in it by this Indenture at the request, order or direction of any of
      the
      Securityholders pursuant to the provisions of this Indenture, unless such
      Securityholders shall have offered to the Trustee reasonable security or
      indemnity against the costs, expenses and liabilities that may be incurred
      therein or thereby; nothing contained herein shall, however, relieve the Trustee
      of the obligation, upon the occurrence of an Event of Default with respect
      to a
      series of the Securities (that has not been cured or waived), to exercise with
      respect to Securities of that series such of the rights and powers vested in
      it
      by this Indenture, and to use the same degree of care and skill in their
      exercise, as a prudent man would exercise or use under the circumstances in
      the
      conduct of his own affairs; 

     

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

     

    (f)
      The
      Trustee shall not be bound to make any investigation into the facts or matters
      stated in any resolution, certificate, statement, instrument, opinion, report,
      notice, request, consent, order, approval, bond, security, or other papers
      or
      documents; 

     

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

     

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

     

    (i)
      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,
      conclusively rely upon an Officers’ Certificate; 

     

    (j)
      the
      rights, privileges, protections, immunities and benefits given to the Trustee,
      including, without limitation, its right to be indemnified, are extended to,
      and
      shall be enforceable by, the Trustee in each of its capacities hereunder, and
      each agent, custodian and other Person employed to act hereunder; 

     

    (k)
      the
      Trustee may request that the Company deliver an Officers’ Certificate setting
      forth the names of individuals and/or titles of officers authorized at such
      time
      to take specified actions pursuant to this Indenture; 

     

    (l)
      the
      permissive right of the Trustee to take or refrain from taking any actions
      enumerated in this Indenture shall not be construed as a duty; 

     

    (m)
      anything in this Indenture notwithstanding, in no event shall the Trustee be
      liable for special, indirect, punitive or consequential loss or damage of any
      kind whatsoever (including but not limited to loss of profit), even if the
      Company or Guarantor has been advised as to the likelihood of such loss or
      damage and regardless of the form of action; and

     

    
      
        
        

      

      
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    (n)
      the
      Trustee shall not be responsible or liable for any failure or delay in the
      performance of its obligations under this Indenture arising out of or caused,
      directly or indirectly, by circumstances beyond its reasonable control,
      including, without limitation, acts of God; earthquakes; fire; flood; terrorism;
      wars and other military disturbances; sabotage; epidemics; riots; interruptions;
      loss or malfunctions of utilities, computer (hardware or software) or
      communication services; accidents; labor disputes; acts of civil or military
      authority and governmental action.

     

    SECTION
      7.3 TRUSTEE NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OR SECURITIES.

     

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

     

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

     

    (c)
      The
      Trustee shall not be accountable for the use or application by the Company
      of
      any of the Securities or of the proceeds of such Securities, or for the use
      or
      application of any moneys paid over by the Trustee in accordance with any
      provision of this Indenture or established pursuant to Section 2.1, or for
      the use or application of any moneys received by any paying agent other than
      the
      Trustee. 

     

    SECTION
      7.4 MAY HOLD SECURITIES. 

     

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

     

    SECTION
      7.5 MONEYS HELD IN TRUST. 

     

    Subject
      to the provisions of Section 11.5, all moneys received by the Trustee
      shall, until used or applied as herein provided, be held in trust for the
      purposes for which they were received, but need not be segregated from other
      funds except to the extent required by law. The Trustee shall be under no
      liability for interest on any moneys received by it hereunder except such as
      it
      may agree with the Company to pay thereon. 

     

    SECTION
      7.6 COMPENSATION AND REIMBURSEMENT. 

     

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

     

    (b)
      The
      obligations of the Company under this Section to compensate and indemnify the
      Trustee and to pay or reimburse the Trustee for reasonable expenses,
      disbursements and advances shall constitute additional indebtedness hereunder.
      Such additional indebtedness shall be secured by a lien prior to that of the
      Securities upon all property and funds held or collected by the Trustee as
      such,
      except funds held in trust for the benefit of the holders of particular
      Securities. 

     

    
      
        
        

      

      
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    (c)
      To
      the extent permitted by law, any compensation due or expense incurred by the
      Trustee after a default specified in or pursuant to Section 6.1 is intended
      to
      constitute an expense of administration under any then applicable bankruptcy
      or
      insolvency law. “Trustee” for purposes of this Section 7.6 shall include any
      predecessor Trustee but the negligence or bad faith of any Trustee shall not
      affect the rights of any other Trustee under this Section 7.6. 

     

    (d)
      The
      provisions of this Section 7.6 shall survive the satisfaction and discharge
      of
      this Indenture, the termination of this Indenture for any reason, or the earlier
      resignation or removal of the Trustee and shall apply with equal force and
      effect to the Trustee in its capacity as Authenticating Agent, Security
      Registrar or paying agent.

     

    SECTION
      7.7 RELIANCE ON OFFICERS’ CERTIFICATE. 

     

    Except
      as
      otherwise provided in Section 7.1, whenever in the administration of the
      provisions of this Indenture the Trustee shall deem it reasonably necessary
      or
      desirable that a matter be proved or established prior to taking or suffering
      or
      omitting to take any action hereunder, such matter (unless other evidence in
      respect thereof be herein specifically prescribed) may, in the absence of
      negligence or bad faith on the part of the Trustee, be deemed to be conclusively
      proved and established by an Officers’ Certificate delivered to the Trustee and
      such certificate, in the absence of negligence or bad faith on the part of
      the
      Trustee, shall be full warrant to the Trustee for any action taken, suffered
      or
      omitted to be taken by it under the provisions of this Indenture upon the faith
      thereof. 

     

    SECTION
      7.8 DISQUALIFICATION; CONFLICTING INTERESTS. 

     

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

     

    SECTION
      7.9 CORPORATE TRUSTEE REQUIRED; ELIGIBILITY. 

     

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

     

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

     

    SECTION
      7.10 RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR. 

     

    (a)
      The
      Trustee or any successor hereafter appointed may at any time resign with respect
      to the Securities of one or more series by giving written notice thereof to
      the
      Company and by transmitting notice of resignation by mail, first class postage
      prepaid, to the Securityholders of such series, as their names and addresses
      appear upon the Security Register. Upon receiving such notice of resignation,
      the Company shall promptly appoint a successor trustee with respect to
      Securities of such series by written instrument, in duplicate, executed by
      order
      of the Board of Directors, one copy of which instrument shall be delivered
      to
      the resigning Trustee and one copy to the successor trustee. If no successor
      trustee shall have been so appointed and have accepted appointment within 30
      days after the mailing of such notice of resignation, the resigning Trustee
      may
      petition any court of competent jurisdiction for the appointment of a successor
      trustee with respect to Securities of such series, or any Securityholder of
      that
      series who has been a bona fide holder of a Security or Securities for at least
      six months may on behalf of himself and all others similarly situated, petition
      any such court for the appointment of a successor trustee. Such court may
      thereupon after such notice, if any, as it may deem proper and prescribe,
      appoint a successor trustee. 

     

    
      
        
        

      

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

     

    (i)
      the
      Trustee shall fail to comply with the provisions of Section 7.8 after
      written request therefor by the Company or by any Securityholder who has been
      a
      bona fide holder of a Security or Securities for at least six months; or

     

    (ii)
      the
      Trustee shall cease to be eligible in accordance with the provisions of
      Section 7.9 and shall fail to resign after written request therefor by the
      Company or by any such Securityholder; or 

     

    (iii)
      the
      Trustee shall become incapable of acting, or shall be adjudged a bankrupt or
      insolvent, or commence a voluntary bankruptcy proceeding, or a receiver of
      the
      Trustee or of its property shall be appointed or consented to, or any public
      officer shall take charge or control of the Trustee or of its property or
      affairs for the purpose of rehabilitation, conservation or liquidation;

     

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

     

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

     

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

     

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

     

    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.

     

    
      
        
        

      

      
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    (b)
      In
      case of the appointment hereunder of a successor trustee with respect to the
      Securities of one or more (but not all) series, the Company, the retiring
      Trustee and each successor trustee with respect to the Securities of one or
      more
      series shall execute and deliver an indenture supplemental hereto wherein each
      successor trustee shall accept such appointment and which (i) shall contain
      such provisions as shall be necessary or desirable to transfer and confirm
      to,
      and to vest in, each successor trustee all the rights, powers, trusts and duties
      of the retiring Trustee with respect to the Securities of that or those series
      to which the appointment of such successor trustee relates, (ii) shall
      contain such provisions as shall be deemed necessary or desirable to confirm
      that all the rights, powers, trusts and duties of the retiring Trustee with
      respect to the Securities of that or those series as to which the retiring
      Trustee is not retiring shall continue to be vested in the retiring Trustee,
      and
      (iii) shall add to or change any of the provisions of this Indenture as
      shall be necessary to provide for or facilitate the administration of the trusts
      hereunder by more than one Trustee, it being understood that nothing herein
      or
      in such supplemental indenture shall constitute such Trustees co-trustees of
      the
      same trust, that each such Trustee shall be trustee of a trust or trusts
      hereunder separate and apart from any trust or trusts hereunder administered
      by
      any other such Trustee and that no Trustee shall be responsible for any act
      or
      failure to act on the part of any other Trustee hereunder; and upon the
      execution and delivery of such supplemental indenture the resignation or removal
      of the retiring Trustee shall become effective to the extent provided therein,
      such retiring Trustee shall with respect to the Securities of that or those
      series to which the appointment of such successor trustee relates have no
      further responsibility for the exercise of rights and powers or for the
      performance of the duties and obligations vested in the Trustee under this
      Indenture, and each such successor trustee, without any further act, deed or
      conveyance, shall become vested with all the rights, powers, trusts and duties
      of the retiring Trustee with respect to the Securities of that or those series
      to which the appointment of such successor trustee relates; but, on request
      of
      the Company or any successor trustee, such retiring Trustee shall duly assign,
      transfer and deliver to such successor trustee, to the extent contemplated
      by
      such supplemental indenture, the property and money held by such retiring
      Trustee hereunder with respect to the Securities of that or those series to
      which the appointment of such successor trustee relates. 

     

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

     

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

     

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

     

    SECTION
      7.12 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS. 

     

    Any
      Person 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 of the corporate trust business of the
      Trustee (including the administration of the trust created by this Indenture),
      shall be the successor of the Trustee hereunder, provided that such corporation
      shall be qualified under the provisions of Section 7.8 and eligible under
      the provisions of Section 7.9, without the execution or filing of any paper
      or any further act on the part of any of the parties hereto, anything herein
      to
      the contrary notwithstanding. In case any Securities shall have been
      authenticated, but not delivered, by the Trustee then in office, any successor
      by merger, conversion or consolidation to such authenticating Trustee may adopt
      such authentication and deliver the Securities so authenticated with the same
      effect as if such successor Trustee had itself authenticated such Securities.
      

     

    
      
        
        

      

      
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    SECTION
      7.13 PREFERENTIAL COLLECTION OF CLAIMS AGAINST THE COMPANY. 

     

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

     

    SECTION
      7.14 NOTICE OF DEFAULT. 

     

    If
      any
      Default or any Event of Default occurs and is continuing and if such Default
      or
      Event of Default is known to a Responsible Officer of the Trustee, the Trustee
      shall mail to each Securityholder in the manner and to the extent provided
      in
      Section 313(c) of the Trust Indenture Act notice of the Default or Event of
      Default within 45 days after it occurs, unless such Default or Event of Default
      has been cured. 

     

    ARTICLE
      VIII

    CONCERNING
      THE SECURITYHOLDERS

     

    SECTION
      8.1 EVIDENCE OF ACTION BY SECURITYHOLDERS. 

     

    Whenever
      in this Indenture it is provided that the holders of a majority or specified
      percentage in aggregate principal amount of the Securities of a particular
      series may take any action (including the making of any demand or request,
      the
      giving of any notice, consent or waiver or the taking of any other action),
      the
      fact that at the time of taking any such action the holders of such majority
      or
      specified percentage of that series have joined therein may be evidenced by
      any
      instrument or any number of instruments of similar tenor executed by such
      holders of Securities of that series in person or by agent or proxy appointed
      in
      writing. 

     

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

     

    SECTION
      8.2 PROOF OF EXECUTION BY SECURITYHOLDERS. 

     

    Subject
      to the provisions of Section 7.1, proof of the execution of any instrument
      by a Securityholder (such proof will not require notarization) or his agent
      or
      proxy and proof of the holding by any Person of any of the Securities shall
      be
      sufficient if made in the following manner: 

     

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

     

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

     

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

     

    SECTION
      8.3 WHO MAY BE DEEMED OWNERS. 

     

    
      
        
        

      

      
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    Prior
      to
      the due presentment for registration of transfer of any Security, the Company,
      the Trustee, any paying agent and any Security Registrar may deem and treat
      the
      Person in whose name such Security shall be registered upon the books of the
      Company as the absolute owner of such Security (whether or not such Security
      shall be overdue and notwithstanding any notice of ownership or writing thereon
      made by anyone other than the Security Registrar) for the purpose of receiving
      payment of or on account of the principal of, premium, if any, and (subject
      to
      Section 2.3) interest on such Security and for all other purposes; and
      neither the Company nor the Trustee nor any paying agent nor any Security
      Registrar shall be affected by any notice to the contrary. 

     

    SECTION
      8.4 CERTAIN SECURITIES OWNED BY COMPANY DISREGARDED. 

     

    In
      determining whether the holders of the requisite aggregate principal amount
      of
      Securities of a particular series have concurred in any direction, consent
      or
      waiver under this Indenture, the Securities of that series that are owned by
      the
      Company or any other obligor on the Securities of that series or by any Person
      directly or indirectly controlling or controlled by or under common control
      with
      the Company or any other obligor on the Securities of that series shall be
      disregarded and deemed not to be Outstanding for the purpose of any such
      determination, except that for the purpose of determining whether the Trustee
      shall be protected in relying on any such direction, consent or waiver, only
      Securities of such series that the Trustee actually knows are so owned shall
      be
      so disregarded. The Securities so owned that have been pledged in good faith
      may
      be regarded as Outstanding for the purposes of this Section, if the pledgee
      shall establish to the satisfaction of the Trustee the pledgee’s right so to act
      with respect to such Securities and that the pledgee is not a Person directly
      or
      indirectly controlling or controlled by or under direct or indirect common
      control with the Company or any such other obligor. In case of a dispute as
      to
      such right, any decision by the Trustee taken upon the advice of counsel shall
      be full protection to the Trustee. 

     

    SECTION
      8.5 ACTIONS BINDING ON FUTURE SECURITYHOLDERS. 

     

    At
      any
      time prior to (but not after) the evidencing to the Trustee, as provided in
      Section 8.1, of the taking of any action by the holders of the majority or
      percentage in aggregate principal amount of the Securities of a particular
      series specified in this Indenture in connection with such action, any holder
      of
      a Security of that series that is shown by the evidence to be included in the
      Securities the holders of which have consented to such action may, by filing
      written notice with the Trustee, and upon proof of holding as provided in
      Section 8.2, revoke such action so far as concerns such Security. Except as
      aforesaid any such action taken by the holder of any Security shall be
      conclusive and binding upon such holder and upon all future holders and owners
      of such Security, and of any Security issued in exchange therefor, on
      registration of transfer thereof or in place thereof, irrespective of whether
      or
      not any notation in regard thereto is made upon such Security. Any action taken
      by the holders of the majority or percentage in aggregate principal amount
      of
      the Securities of a particular series specified in this Indenture in connection
      with such action shall be conclusively binding upon the Company, the Trustee
      and
      the holders of all the Securities of that series. 

     

    ARTICLE
      IX

    SUPPLEMENTAL
      INDENTURES

     

    SECTION
      9.1 SUPPLEMENTAL INDENTURES WITHOUT THE CONSENT OF SECURITYHOLDERS.

     

    In
      addition to any supplemental indenture otherwise authorized by this Indenture,
      the Company and the Trustee may from time to time and at any time enter into
      an
      indenture or indentures supplemental hereto (which shall conform to the
      provisions of the Trust Indenture Act as then in effect), without the consent
      of
      the Securityholders, for one or more of the following purposes: 

     

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

     

    (b)
      to
      comply with Article Ten; 

     

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

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

    (g)
      to
      provide for the issuance of and establish the form and terms and conditions
      of
      the Securities of any series as provided in Section 2.1, to establish the
      form of any certifications required to be furnished pursuant to the terms of
      this Indenture or any series of Securities, or to add to the rights of the
      holders of any series of Securities; 

     

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

     

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

     

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

     

    Any
      supplemental indenture authorized by the provisions of this Section may be
      executed by the Company and the Trustee without the consent of the holders
      of
      any of the Securities at the time Outstanding, notwithstanding any of the
      provisions of Section 9.2. 

     

    SECTION
      9.2 SUPPLEMENTAL INDENTURES WITH CONSENT OF SECURITYHOLDERS. 

     

    With
      the
      consent (evidenced as provided in Section 8.1) of the holders of not less
      than a majority in aggregate principal amount of the Securities of each series
      affected by such supplemental indenture or indentures at the time Outstanding,
      the Company, when authorized by a Board Resolution, and the Trustee may from
      time to time and at any time enter into an indenture or indentures supplemental
      hereto (which shall conform to the provisions of the Trust Indenture Act as
      then
      in effect) for the purpose of adding any provisions to or changing in any manner
      or eliminating any of the provisions of this Indenture or of any supplemental
      indenture or of modifying in any manner not covered by Section 9.1 the
      rights of the holders of the Securities of such series under this Indenture;
      provided, however, that no such supplemental indenture shall, without the
      consent of the holders of each Security then Outstanding and affected thereby,
      (a) extend the fixed maturity of any Securities of any series, or reduce
      the principal amount thereof, or reduce the rate or extend the time of payment
      of interest thereon, or reduce any premium payable upon the redemption thereof
      or (b) reduce the aforesaid percentage of Securities, the holders of which
      are required to consent to any such supplemental indenture. 

     

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

     

    SECTION
      9.3 EFFECT OF SUPPLEMENTAL INDENTURES. 

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    Upon
      the
      execution of any supplemental indenture pursuant to the provisions of this
      Article or of Section 10.1, this Indenture shall, with respect to such
      series, be and be deemed to be modified and amended in accordance therewith
      and
      the respective rights, limitations of rights, obligations, duties and immunities
      under this Indenture of the Trustee, the Company and the holders of Securities
      of the series affected thereby shall thereafter be determined, exercised and
      enforced hereunder subject in all respects to such modifications and amendments,
      and all the terms and conditions of any such supplemental indenture shall be
      and
      be deemed to be part of the terms and conditions of this Indenture for any
      and
      all purposes. 

     

    SECTION
      9.4 SECURITIES AFFECTED BY SUPPLEMENTAL INDENTURES. 

     

    Securities
      of any series affected by a supplemental indenture, authenticated and delivered
      after the execution of such supplemental indenture pursuant to the provisions
      of
      this Article or of Section 10.1, may bear a notation in form approved by
      the Company, provided such form meets the requirements of any securities
      exchange upon which such series may be listed, as to any matter provided for
      in
      such supplemental indenture. If the Company shall so determine, new Securities
      of that series so modified as to conform, in the opinion of the Board of
      Directors, to any modification of this Indenture contained in any such
      supplemental indenture may be prepared by the Company, authenticated by the
      Trustee and delivered in exchange for the Securities of that series then
      Outstanding. 

     

    SECTION
      9.5 EXECUTION OF SUPPLEMENTAL INDENTURES. 

     

    Upon
      the
      request of the Company, accompanied by its Board Resolutions authorizing the
      execution of any such supplemental indenture, and upon the filing with the
      Trustee of evidence of the consent of Securityholders required to consent
      thereto as aforesaid, the Trustee shall join with the Company in the execution
      of such supplemental indenture unless such supplemental indenture affects the
      Trustee’s own rights, duties or immunities under this Indenture or otherwise, in
      which case the Trustee may in its discretion but shall not be obligated to
      enter
      into such supplemental indenture. The Trustee, subject to the provisions of
      Section 7.1, may receive an Officers’ Certificate or an Opinion of Counsel
      as conclusive evidence that any supplemental indenture executed pursuant to
      this
      Article is authorized or permitted by, and conforms to, the terms of this
      Article and that it is proper for the Trustee under the provisions of this
      Article to join in the execution thereof; provided, however, that such Officers’
Certificate or Opinion of Counsel need not be provided in connection with the
      execution of a supplemental indenture that establishes the terms of a series
      of
      Securities pursuant to Section 2.1 hereof. 

     

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

     

    ARTICLE
      X

    SUCCESSOR
      ENTITY 

     

    SECTION
      10.1 COMPANY MAY CONSOLIDATE, ETC. 

     

    Nothing
      contained in this Indenture or in any of the Securities shall prevent any
      consolidation or merger of the Company with or into any other Person (whether
      or
      not affiliated with the Company) or successive consolidations or mergers in
      which the Company or its successor or successors shall be a party or parties,
      or
      shall prevent any sale, conveyance, transfer or other disposition of the
      property of the Company or its successor or successors as an entirety, or
      substantially as an entirety, to any other Person (whether or not affiliated
      with the Company or its successor or successors) authorized to acquire and
      operate the same; provided, however, the Company hereby covenants and agrees
      that, upon any such consolidation or merger (in each case, if the Company is
      not
      the survivor of such transaction), sale, conveyance, transfer or other
      disposition, the due and punctual payment of the principal of (and premium,
      if
      any) and interest on all of the Securities of all series in accordance with
      the
      terms of each series, according to their tenor and the due and punctual
      performance and observance of all the covenants and conditions of this Indenture
      or established with respect to each series of Securities pursuant to Section
      2.1
      to be kept or performed by the Company shall be expressly assumed, by
      supplemental indenture (which shall conform to the provisions of the Trust
      Indenture Act, as then in effect) satisfactory in form to the Trustee executed
      and delivered to the Trustee by the entity formed by such consolidation, or
      into
      which the Company shall have been merged, or by the entity which shall have
      acquired such property. 

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    SECTION
      10.2 SUCCESSOR ENTITY SUBSTITUTED. 

     

    (a)
      In
      case of any such consolidation, merger, sale, conveyance, transfer or other
      disposition and upon the assumption by the successor entity by supplemental
      indenture, executed and delivered to the Trustee and satisfactory in form to
      the
      Trustee, of the obligations set forth under Section 10.1 on all of the
      Securities of all series Outstanding, such successor entity shall succeed to
      and
      be substituted for the Company with the same effect as if it had been named
      as
      the Company herein, and thereupon the predecessor corporation shall be relieved
      of all obligations and covenants under this Indenture and the Securities.

     

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

     

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

     

    SECTION
      10.3 EVIDENCE OF CONSOLIDATION, ETC. TO TRUSTEE. 

     

    The
      Trustee, subject to the provisions of Section 7.1, may receive an Officers’
Certificate or an Opinion of Counsel as conclusive evidence that any such
      consolidation, merger, sale, conveyance, transfer or other disposition, and
      any
      such assumption, comply with the provisions of this Article. 

     

    ARTICLE
      XI

    SATISFACTION
      AND DISCHARGE 

     

    SECTION
      11.1 SATISFACTION AND DISCHARGE OF INDENTURE. 

     

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

     

    (1)
      either (A) all Securities of that series theretofore authenticated and delivered
      (other than (i) any Securities that shall have been destroyed, lost or stolen
      and that shall have been replaced or paid as provided in Section 2.7 and (ii)
      Securities for whose payment money or noncallable Governmental Obligations
      have
      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 11.5) have been delivered to the Trustee for cancellation;
      or (B) all Securities of such series not theretofore delivered to the Trustee
      for cancellation (i) have become due and payable, or (ii) will by their terms
      become due and payable within one year, or (iii) are to be called for redemption
      within one year under arrangements satisfactory to the Trustee for the giving
      of
      notice of redemption, and the Company shall deposit or cause to be deposited
      with the Trustee as trust funds in trust for the purpose (x) moneys in an
      amount, or (y) noncallable Governmental Obligations the scheduled principal
      of
      and interest on which in accordance with their terms will provide, not later
      than the due date of any payment, money in an amount, or (z) a combination
      thereof, sufficient, in the case of (y) or (z), in the opinion of a nationally
      recognized firm of independent public accountants expressed in a written
      certification thereof delivered to the Trustee, to pay and discharge, at
      maturity or upon redemption, all Securities of that series not theretofore
      delivered to the Trustee for cancellation, including principal (and premium,
      if
      any) and interest due or to become due to such date of maturity or date fixed
      for redemption, as the case may be; 

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

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

     

    (3)
      the
      Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
      Counsel, each stating that all the conditions precedent herein provided for
      relating to the satisfaction and discharge of this Indenture with respect to
      such series of Securities have been complied with. Notwithstanding the
      satisfaction and discharge of this Indenture with respect to a series of
      Securities, the obligations of the Company under Section 7.6 and, if money
      shall
      have been deposited with the Trustee pursuant to subclause (y) of clause (1)
      of
      this Section, the obligations of the Trustee under Sections 11.3 and 11.5 shall
      survive. 

     

    SECTION
      11.2 DISCHARGE OF OBLIGATIONS. 

     

    If
      at any
      time all such Securities of a particular series not heretofore delivered to
      the
      Trustee for cancellation or that have not become due and payable as described
      in
      Section 11.1 shall have been paid by the Company by depositing irrevocably
      with the Trustee as trust funds moneys or an amount of Governmental Obligations
      sufficient to pay at maturity or upon redemption all such Securities of that
      series not theretofore delivered to the Trustee for cancellation, including
      principal (and premium, if any) and interest due or to become due to such date
      of maturity or date fixed for redemption, as the case may be, and if the Company
      shall also pay or cause to be paid all other sums payable hereunder by the
      Company with respect to such series, then after the date such moneys or
      Governmental Obligations, as the case may be, are deposited with the Trustee
      the
      obligations of the Company under this Indenture with respect to such series
      shall cease to be of further effect except for the provisions of Sections 2.3,
      2.5, 2.7, 4.1, 4.2, 4.3, 7.6, 7.10 and 11.5 hereof that shall survive until
      such
      Securities shall mature and be paid. 

     

    Thereafter,
      Sections 7.6 and 11.5 shall survive. 

     

    SECTION
      11.3 DEPOSITED MONEYS TO BE HELD IN TRUST. 

     

    All
      moneys or Governmental Obligations deposited with the Trustee pursuant to
      Sections 11.1 or 11.2 shall be held in trust and shall be available for payment
      as due, either directly or through any paying agent (including the Company
      acting as its own paying agent), to the holders of the particular series of
      Securities for the payment or redemption of which such moneys or Governmental
      Obligations have been deposited with the Trustee. 

     

    SECTION
      11.4 PAYMENT OF MONEYS HELD BY PAYING AGENTS. 

     

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

     

    SECTION
      11.5 REPAYMENT TO COMPANY. 

     

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

     

    ARTICLE
      XII

    IMMUNITY
      OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS 

     

    SECTION
      12.1 NO RECOURSE. 

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

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

     

    ARTICLE
      XIII

    MISCELLANEOUS
      PROVISIONS 

     

    SECTION
      13.1 EFFECT ON SUCCESSORS AND ASSIGNS. 

     

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

     

    SECTION
      13.2 ACTIONS BY SUCCESSOR. 

     

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

     

    SECTION
      13.3 SURRENDER OF COMPANY POWERS. 

     

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

     

    SECTION
      13.4 NOTICES. 

     

    Except
      as
      otherwise expressly provided herein, any notice, request or demand that by
      any
      provision of this Indenture is required or permitted to be given, made or served
      by the Trustee or by the holders of Securities or by any other Person pursuant
      to this Indenture to or on the Company may be given or served by being deposited
      in first class mail, postage prepaid, addressed (until another address is filed
      in writing by the Company with the Trustee), as follows: InSite Vision
      Incorporated, 965 Atlantic Avenue, Alameda, California 94501, Attention: Vice
      President, Finance and Administration. Any notice, election, request or demand
      by the Company or any Securityholder or by any other Person pursuant to this
      Indenture to or upon the Trustee shall be deemed to have been sufficiently
      given
      or made, for all purposes, if given or made in writing at the Corporate Trust
      Office of the Trustee. 

     

    SECTION
      13.5 GOVERNING LAW. 

     

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

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    SECTION
      13.6 TREATMENT OF SECURITIES AS DEBT. 

     

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

     

    SECTION
      13.7 COMPLIANCE CERTIFICATES AND OPINIONS. 

     

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

     

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

     

    SECTION
      13.8 PAYMENTS ON BUSINESS DAYS. 

     

    Except
      as
      provided pursuant to Section 2.1 pursuant to a Board Resolution, and set
      forth in an Officers’ Certificate, or established in one or more indentures
      supplemental to this Indenture, in any case where the date of maturity of
      interest or principal of any Security or the date of redemption of any Security
      shall not be a Business Day, then payment of interest or principal (and premium,
      if any) may be made on the next succeeding Business Day with the same force
      and
      effect as if made on the nominal date of maturity or redemption, and no interest
      shall accrue for the period after such nominal date. 

     

    SECTION
      13.9 CONFLICT WITH TRUST INDENTURE ACT. 

     

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

     

    SECTION
      13.10 COUNTERPARTS. 

     

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

     

    SECTION
      13.11 SEPARABILITY. 

     

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

     

    SECTION
      13.12 COMPLIANCE CERTIFICATES. 

     

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

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

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

     

    
      	 	 	 	 
	 	
              InSite
                Vision Incorporated

            	 
	 
 	 
 	
 	 
	 	By:  	 	 
	 	 	 	 
	 	Name:  	
               

            	 
	 	
              Title:

            	
            	 
	 	 	
            	 
	 	
              [

            	 	 
	 	 	
               

            	
              ],

            
	 	 	
              as
                Trustee

            	 

    

    
      
        
          	 	 	 	 
	 	By:  	 	 
	 	 	 	 
	 	Name:  	
                   

                	 
	 	
                  Title:

                	 	 

        

      

    

     

    
      
        
        

      

      
        35

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]