Document:

Unassociated Document

    
      Exhibit
4.9

      
        Executed

      

      
        
          

        

      

    

     

    BANCOLOMBIA
S.A.

     

    6.125%
SUBORDINATED NOTES DUE 2020

     

      
        

      

    

    
      
 

    

    INDENTURE

     

    Dated as
of July 26, 2010

     

    
      
 

    The Bank
of New York Mellon

    Trustee

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    CROSS-REFERENCE
TABLE*

     

    
      
        	
                Trust
      Indenture

                Act
      Section

              	
                Indenture
      Section

              
	
                310(a)(1)

              	
                7.10

              
	
                  (a)(2)

              	
                7.10

              
	
                 
      (a)(5)

              	
                7.10

              
	
                 
      (b)

              	
                7.10

              
	
                311(a)

              	
                7.11

              
	
                 
      (b)

              	
                7.11

              
	
                312(a)

              	
                2.05

              
	
                 
      (b)

              	
                11.03

              
	
                 
      (c)

              	
                11.03

              
	
                313(a)

              	
                7.06

              
	
                 
      (b)(2)

              	
                7.06;
      7.07

              
	
                 
      (c)

              	
                7.06;
      11.02

              
	
                 
      (d)

              	
                7.06

              
	
                314(a)

              	
                4.03;11.02;
      11.05

              
	
                 
      (c)(1)

              	
                11.04

              
	
                 
      (c)(2)

              	
                11.04

              
	
                 
      (e)

              	
                11.05

              
	
                315(a)

              	
                7.01

              
	
                 
      (b)

              	
                7.05;
      11.02

              
	
                 
      (c)

              	
                7.01

              
	
                 
      (d)

              	
                7.01

              
	
                 
      (e)

              	
                6.10

              
	
                316(a)
      (last sentence)

              	
                2.09

              
	
                 
      (a)(1)(A)

              	
                6.05

              
	
                 
      (a)(1)(B)

              	
                6.04

              
	
                 
      (b)

              	
                6.06

              
	
                 
      (c)

              	
                2.12

              
	
                317(a)(1)

              	
                6.07

              
	
                 
      (a)(2)

              	
                6.08

              
	
                 
      (b)

              	
                2.04

              
	
                318(a)

              	
                11.01

              
	
                 
      (c)

              	
                11.01

              

      

    

    

    *  This
Cross Reference Table is not part of the Indenture.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    TABLE OF
CONTENTS

     

    
      
        
          
            
              
                
                  	 
      	 	
                          Page

                        	 
	 
      	 	 	 
	
                          ARTICLE
      1

                        	 
	
                          DEFINITIONS
      AND INCORPORATION

                        	 
	
                          BY
      REFERENCE

                        	 
	 	 
	
                          Section
      1.01

                        	
                          Definitions.

                        	 	 	1	 
	
                          Section
      1.02

                        	
                          Other
      Definitions.

                        	 	 	5	 
	
                          Section
      1.03

                        	
                          Incorporation
      by Reference of Trust Indenture Act.

                        	 	 	5	 
	
                          Section
      1.04

                        	
                          Rules
      of Construction.

                        	 	 	6	 
	 	 
	
                          ARTICLE
      2

                        	 
	
                          THE
      NOTES

                        	 
	 
      	 
      	 	 	 	 
	
                          Section
      2.01

                        	
                          Form
      and Dating.

                        	 	 	6	 
	
                          Section
      2.02

                        	
                          Execution
      and Authentication.

                        	 	 	7	 
	
                          Section
      2.03

                        	
                          Registrar
      and Paying Agent.

                        	 	 	7	 
	
                          Section
      2.04

                        	
                          Paying
      Agent to Hold Money in Trust.

                        	 	 	8	 
	
                          Section
      2.05

                        	
                          Holder
      Lists.

                        	 	 	8	 
	
                          Section
      2.06

                        	
                          Transfer
      and Exchange.

                        	 	 	8	 
	
                          Section
      2.07

                        	
                          Replacement
      Notes.

                        	 	 	12	 
	
                          Section
      2.08

                        	
                          Outstanding
      Notes.

                        	 	 	12	 
	
                          Section
      2.09

                        	
                          Treasury
      Notes.

                        	 	 	12	 
	
                          Section
      2.10

                        	
                          Temporary
      Notes.

                        	 	 	12	 
	
                          Section
      2.11

                        	
                          Cancellation.

                        	 	 	13	 
	
                          Section
      2.12

                        	
                          Defaulted
      Interest.

                        	 	 	13	 
	
                          Section
      2.13

                        	
                          Additional
      Amounts.

                        	 	 	13	 
	
                          Section
      2.14

                        	
                          Purchase
      of Notes.

                        	 	 	14	 
	
                          Section
      2.15

                        	
                          Unclaimed
      Amounts.

                        	 	 	14	 
	 
      	 
      	 	 	 	 
	
                          ARTICLE
      3

                        	 
	
                          REDEMPTION
      AND PREPAYMENT

                        	 
	 
      	 
      	 	 	 	 
	
                          Section
      3.01

                        	
                          Redemption
      and Prepayment.

                        	 	 	15	 
	
                          Section
      3.02

                        	
                          Mandatory
      Redemption.

                        	 	 	15	 
	 
      	 
      	 	 	 	 
	
                          ARTICLE
      4

                        	 
	
                          COVENANTS

                        	 
	 
      	 
      	 	 	 	 
	
                          Section
      4.01

                        	
                          Payment
      of Notes.

                        	 	 	15	 
	
                          Section
      4.02

                        	
                          Maintenance
      of Office or Agency.

                        	 	 	15	 
	
                          Section
      4.03

                        	
                          Provision
      of Financial Statements and Reports.

                        	 	 	16	 
	
                          Section
      4.04

                        	
                          Stay,
      Extension and Usury Laws.

                        	 	 	16	 
	
                          Section
      4.05

                        	
                          Further
      Actions.

                        	 	 	16	 
	
                          Section
      4.06

                        	
                          Compliance
      Certificate.

                        	 	 	16	 
	 	 
	
                          ARTICLE
      5

                        	 
	
                          SUCCESSORS

                        	 
	 
      	 
      	 	 	 	 
	
                          Section
      5.01

                        	
                          Merger,
      Consolidation, or Sale of Assets.

                        	 	 	17	 
	
                          Section
      5.02

                        	
                          Successor
      Corporation Substituted.

                        	 	 	17	 

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            	 
      	 	
                    Page

                  	 
	 	 
	
                    ARTICLE
      6

                  	 
	
                    DEFAULTS
      AND REMEDIES

                  	 
	 
      	 
      	 	 	 
	
                    Section
      6.01

                  	
                    Events
      of Default.

                  	 	 	18	 
	
                    Section
      6.02

                  	
                    Acceleration.

                  	 	 	18	 
	
                    Section
      6.03

                  	
                    Other
      Remedies.

                  	 	 	19	 
	
                    Section
      6.04

                  	
                    Waiver
      of Past Defaults

                  	 	 	19	 
	
                    Section
      6.05

                  	
                    Control
      by Majority.

                  	 	 	19	 
	
                    Section
      6.06

                  	
                    Rights
      of Holders of Notes to Receive Payment.

                  	 	 	19	 
	
                    Section
      6.07

                  	
                    Collection
      Suit by Trustee.

                  	 	 	20	 
	
                    Section
      6.08

                  	
                    Trustee
      May File Proofs of Claim.

                  	 	 	20	 
	
                    Section
      6.09

                  	
                    Priorities.

                  	 	 	20	 
	
                    Section
      6.10

                  	
                    Undertaking
      for Costs.

                  	 	 	21	 
	 
      	 
      	 	 	 	 
	
                    ARTICLE
      7

                  	 
	
                    TRUSTEE

                  	 
	 
      	 
      	 	 	 	 
	
                    Section
      7.01

                  	
                    Duties
      of Trustee.

                  	 	 	21	 
	
                    Section
      7.02

                  	
                    Rights
      of Trustee.

                  	 	 	22	 
	
                    Section
      7.03

                  	
                    Individual
      Rights of Trustee.

                  	 	 	23	 
	
                    Section
      7.04

                  	
                    Trustee’s
      Disclaimer.

                  	 	 	23	 
	
                    Section
      7.05

                  	
                    Notice
      of Defaults.

                  	 	 	23	 
	
                    Section
      7.06

                  	
                    Reports
      by Trustee to Holders of the Notes.

                  	 	 	23	 
	
                    Section
      7.07

                  	
                    Compensation
      and Indemnity.

                  	 	 	24	 
	
                    Section
      7.08

                  	
                    Replacement
      of Trustee.

                  	 	 	24	 
	
                    Section
      7.09

                  	
                    Successor
      Trustee by Merger, etc.

                  	 	 	25	 
	
                    Section
      7.10

                  	
                    Eligibility;
      Disqualification.

                  	 	 	25	 
	
                    Section
      7.11

                  	
                    Preferential
      Collection of Claims Against Company.

                  	 	 	26	 
	 
      	 
      	 	 	 	 
	
                    ARTICLE
      8

                  	 
	
                    AMENDMENT,
      SUPPLEMENT AND WAIVER

                  	 
	 
      	 
      	 	 	 	 
	
                    Section
      8.01

                  	
                    Without
      Consent of Holders of Notes.

                  	 	 	26	 
	
                    Section
      8.02

                  	
                    With
      Consent of Holders of Notes.

                  	 	 	26	 
	
                    Section
      8.03

                  	
                    Compliance
      with Trust Indenture Act.

                  	 	 	27	 
	
                    Section
      8.04

                  	
                    Revocation
      and Effect of Consents.

                  	 	 	28	 
	
                    Section
      8.05

                  	
                    Notation
      on or Exchange of Notes.

                  	 	 	28	 
	
                    Section
      8.06

                  	
                    Trustee
      to Sign Amendments, etc.

                  	 	 	28	 
	 
      	 
      	 	 	 	 
	
                    ARTICLE
      9

                  	 
	
                    SUBORDINATION

                  	 
	 
      	 
      	 	 	 	 
	
                    Section
      9.01

                  	
                    Agreement
      to Subordinate.

                  	 	 	28	 
	
                    Section
      9.02

                  	
                    Liquidation;
      Dissolution; Bankruptcy.

                  	 	 	28	 
	
                    Section
      9.03

                  	
                    Relative
      Rights.

                  	 	 	29	 
	
                    Section
      9.04

                  	
                    Subordination
      May Not Be Impaired by Company.

                  	 	 	29	 
	
                    Section
      9.05

                  	
                    Distribution
      or Notice to Representative.

                  	 	 	29	 
	
                    Section
      9.06

                  	
                    Rights
      of Trustee and Paying Agent.

                  	 	 	29	 
	
                    Section
      9.07

                  	
                    Authorization
      to Effect Subordination.

                  	 	 	30	 
	 
      	 
      	 	 	 	 
	
                    ARTICLE
      10

                  	 
	
                    SATISFACTION
      AND DISCHARGE

                  	 
	 
      	 
      	 	 	 	 
	
                    Section
      10.01

                  	
                    Satisfaction
      and Discharge.

                  	 	 	30	 
	
                    Section
      10.02

                  	
                    Application
      of Trust Money.

                  	 	 	31	 

          

        

      

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            	 
      	 
      	 	
                    Page

                  	 
	 	 
	
                    ARTICLE
      11

                  	 
	
                    MISCELLANEOUS

                  	 
	 
      	 
      	 	 	 
	
                    Section
      11.01

                  	
                    Trust
      Indenture Act Controls.

                  	 	 	31	 
	
                    Section
      11.02

                  	
                    Notices.

                  	 	 	31	 
	
                    Section
      11.03

                  	
                    Communication
      by Holders of Notes with Other Holders of Notes.

                  	 	 	32	 
	
                    Section
      11.04

                  	
                    Certificate
      and Opinion as to Conditions Precedent.

                  	 	 	32	 
	
                    Section
      11.05

                  	
                    Statements
      Required in Certificate or Opinion.

                  	 	 	33	 
	
                    Section
      11.06

                  	
                    Rules
      by Trustee and Agents.

                  	 	 	33	 
	
                    Section
      11.07

                  	
                    Currency
      Rate Indemnity.

                  	 	 	33	 
	
                    Section
      11.08

                  	
                    No
      Personal Liability of Directors, Officers, Employees and
      Stockholders.

                  	 	 	33	 
	
                    Section
      11.09

                  	
                    Governing
      Law.

                  	 	 	34	 
	
                    Section
      11.10

                  	
                    Maintenance
      of Office or Agent for Service of Process

                  	 	 	34	 
	
                    Section
      11.11

                  	
                    No
      Adverse Interpretation of Other Agreements.

                  	 	 	35	 
	
                    Section
      11.12

                  	
                    Successors.

                  	 	 	35	 
	
                    Section
      11.13

                  	
                    Severability.

                  	 	 	35	 
	
                    Section
      11.14

                  	
                    Counterpart
      Originals.

                  	 	 	35	 
	
                    Section
      11.15

                  	
                    Table
      of Contents, Headings, etc.

                  	 	 	35	 

          

        

      

    

    

    
      	
              EXHIBIT
      A

            	
              FORM
      OF NOTE

            

    

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

    INDENTURE
dated as of July 26, 2010 between Bancolombia S.A., a financial institution
incorporated under the laws of Colombia (sociedad
anόnima) (the “Company”), and The Bank of
New York Mellon, as trustee (the “Trustee”).

     

    The
Company and the Trustee agree as follows for the benefit of each other and for
the equal and ratable benefit of the Holders (as defined) of the 6.125%
Subordinated Notes due 2020 (the “Notes”):

     

    ARTICLE
1

    DEFINITIONS
AND INCORPORATION

    BY
REFERENCE

     

    Section
1.01         Definitions.

     

    “Additional Notes” means
additional Notes (other than the Initial Notes) issued under this Indenture in
accordance with Section 2.02 hereof, as part of the same series as the Initial
Notes.

     

    “Affiliate” of any specified
Person means any other Person directly or indirectly controlling or controlled
by or under direct or indirect common control with such specified
Person.  For purposes of this definition, “control,” as used with
respect to any Person, means the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of such
Person, whether through the ownership of voting securities, by agreement or
otherwise; provided
that beneficial ownership of 10% or more of the Voting Stock of a Person will be
deemed to be control.  For purposes of this definition, the terms
“controlling,” “controlled by” and “under common control with”
have correlative meanings.

     

    “Agent” means any Registrar,
co-registrar, Paying Agent or additional paying agent.

     

    “amend” means to amend,
supplement, restate, amend and restate or otherwise modify; and “amendment”
shall have a correlative meaning.

     

    “Applicable Procedures”
means, with respect to any transfer or exchange of or for beneficial interests
in any Global Note, the rules and procedures of the Depositary, Euroclear and
Clearstream that apply to such transfer or exchange.

     

    “Asset” means any asset or
property.

     

    “Bankruptcy Law” means the
provisions of the Financial Statute concerning bankruptcy of financial
institutions, the Decree 2211 of 2004, as amended, and any other Colombian law
or regulation regulating the insolvency of financial entities from time to
time.

     

    “Board of Directors” shall
mean, with respect to any Person, (i) in the case of any corporation, the board
of directors of such Person, (ii) in the case of any limited liability company,
the board of managers of such Person, (iii) in the case of any partnership, the
board of directors of the general partner of such Person and (iv) in any other
case, the functional equivalent of the foregoing.

     

    “Business Day” means any day
other than a Saturday, Sunday or other day on which banking institutions in New
York or Colombia are authorized or required by law to close.

     

    “Clearstream” means
Clearstream Banking, S.A.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    “Colombian GAAP” means
generally accepted accounting principles as prescribed by the Superintendency of
Finance for banks licensed to operate in Colombia, consistently applied, as in
effect on the Issue Date.

     

    “Company”  means
Bancolombia S.A., and any and all successors thereto.

     

    “Corporate Trust Office of the
Trustee” will be at the address of the Trustee specified in Section 11.02
hereof or such other address as to which the Trustee may give notice to the
Company.

     

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

     

    “Decree 1720” means Decree
1720 of 2001, issued by the Ministry of Finance and Public Credit, as amended
from time to time.

     

    “Default” means (1) any Event
of Default or (2) any event, act or condition that, after notice or the passage
of time or both, would be an Event of Default.

     

    “Definitive Note” means a
certificated Note registered in the name of the Holder thereof and issued in
accordance with Section 2.06 hereof, substantially in the form of Exhibit A
hereto except that such Note shall not bear the Global Note Legend and shall not
have the “Schedule of Exchanges of Interests in the Global Note” attached
thereto.

     

    “Depositary” means, with
respect to the Notes issuable or issued in whole or in part in global form, the
Person specified in Section 2.03 hereof as the Depositary with respect to the
Notes, and any and all successors thereto appointed as depositary hereunder and
having become such pursuant to the applicable provision of this
Indenture.

     

    “Equity Interests” of any
Person means (1) any and all shares or other equity interests (including common
stock, preferred stock, limited liability company interests and partnership
interests) in such Person and (2) all rights to purchase, warrants or options
(whether or not currently exercisable), participations or other equivalents of
or interests in (however designated) such shares or other interests in such
Person.

     

    “Euroclear” means Euroclear
Bank, S.A./N.V., as operator of the Euroclear system.

     

    “Exchange Act” means the
Securities Exchange Act of 1934, as amended.

     

    “Financial Statute” means
Decree 663 of 1993, as amended, of the Republic of Colombia.

     

    “Global Note Legend” means
the legend set forth in Section 2.06(f)(1) hereof, which is required to be
placed on all Global Notes issued under this Indenture.

     

    “Global Notes” means,
individually and collectively, each of the Restricted Global Notes and the
Unrestricted Global Notes deposited with or on behalf of and registered in the
name of the Depository or its nominee, substantially in the form of Exhibit A
hereto and that bears the Global Note Legend.

     

    “Government Securities” means
direct obligations of, or obligations guaranteed by, the United States of
America, and the payment for which the United States pledges its full faith and
credit.

     

    “Holder” means any registered
holder, from time to time, of the Notes.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    “Indebtedness” means, with
respect to any Person, any obligation, for the payment or repayment of money
borrowed or otherwise evidenced by debentures, Notes, bonds, or similar
instruments or any other obligation (including all trade payables and other
accounts payable and including payments relating to bank deposits) that would
appear or be treated as indebtedness upon a balance sheet if such Person
prepared it in accordance with Colombian GAAP as applicable to financial
institutions.

     

    “Indenture” means this
Indenture, as amended or supplemented from time to time.

     

    “Indirect Participant” means
a Person who holds a beneficial interest in a Global Note through a
Participant.

     

    “Intervention Measures” means
the measures described in article 114 of the Financial Statute that allow the
Superintendency of Finance to take possession of a financial
institution.

     

    “Initial Notes” means the
first US$620 million aggregate principal amount of Notes issued under this
Indenture on the date hereof.

     

    “Interest” means, with respect
to the Notes, interest on the Notes.

     

    “Issue Date” means the date on
which the Initial Notes are originally issued.

     

    “Notes” has the meaning
assigned to it in the preamble to this Indenture.  The Initial Notes
and the Additional Notes, if any, shall be treated as a single class for all
purposes under this Indenture, and unless the context otherwise requires, all
references to the Notes shall include the Initial Notes and the Additional
Notes, if any.

     

    “Obligation” means any
principal, interest, penalties, fees, indemnification, reimbursements, costs,
expenses, damages and other liabilities payable under any
Indebtedness.

     

    “Officer” means any of the
following of the Company:  the Chairman of the Board of Directors, the
Chief Executive Officer, the Chief Financial Officer, the President, any Vice
President, the Treasurer or the Secretary.

     

    “Officers’ Certificate” means
a certificate signed by two Officers.

     

    “Opinion of Counsel” means an
opinion from legal counsel who is reasonably acceptable to the Trustee, that
meets the requirements of Section 11.04 hereof.  The counsel may be an
employee of or counsel to the Company, any Subsidiary of the Company or the
Trustee.

     

    “Participant” means, with
respect to the Depositary, Euroclear or Clearstream, a Person who has an account
with the Depositary, Euroclear or Clearstream, respectively (and, with respect
to DTC, shall include Euroclear and Clearstream).

     

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

     

    “Preventive Measures” means
the measures described in article 113 of the Financial Statute, as amended from
time to time, that the Superintendency of Finance can take with respect to a
financial institution prior to and in order to avoid having to take an
Intervention Measure.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    “principal” means, with
respect to the Notes, the principal of, and premium, if any, on the
Notes.

     

    “Representative” means the
indenture trustee or other trustee, agent or representative for any Senior
External Liabilities.

     

    “Responsible Officer,” when
used with respect to the Trustee, means any officer within the Corporate Trust
Administration of the Trustee (or any successor group of the Trustee) having
direct responsibility for the administration of this Indenture and also means,
with respect to a particular corporate trust matter, any other officer to whom
such matter is referred because of his knowledge of and familiarity with the
particular subject.

     

    “SEC” means the U.S.
Securities and Exchange Commission.

     

    “Securities Act” means the
U.S. Securities Act of 1933, as amended.

     

    “Senior External Liabilities”
means any liabilities to third parties that constitute external debt of the
Company (pasivo
externo) under Colombian banking laws and accounting principles, whether
outstanding on the Issue Date or thereafter created, incurred or assumed, unless
the instrument creating or evidencing the same or pursuant to which the same is
outstanding expressly provides that such external debt shall not be senior in
right of payment to the Notes.

     

    “Stated Maturity” means, with
respect to any installment of interest or principal on any series of
Indebtedness, the date on which the payment of interest or principal was
scheduled to be paid in the documentation governing such Indebtedness as of the
date of this Indenture, and will not include any contingent obligations to repay
or repurchase any such interest or principal prior to the date originally
scheduled for the payment thereof.

     

    “Subsidiary” means, with
respect to any Person:

     

    (1)           any
corporation, limited liability company, association or other business entity of
which more than 50% of the total voting power of the Equity Interests entitled
(without regard to the occurrence of any contingency) to vote in the election of
the Board of Directors thereof are at the time owned or controlled, directly or
indirectly, by such Person or one or more of the other Subsidiaries of that
Person (or a combination thereof); and

     

    (2)           any
partnership (a) the sole general partner or the managing general partner of
which is such Person or a Subsidiary of such Person or (b) the only general
partners of which are such Person or of one or more Subsidiaries of such Person
(or any combination thereof).

     

    Unless
otherwise specified, “Subsidiary” refers to a Subsidiary of the
Company.

     

    “Superintendency of Finance”
means the Superintendencia Financiera de Colombia.

     

    “Tax” shall mean any tax,
duty, levy, impost, assessment or other governmental charge (including
penalties, interest and any other liabilities related thereto).

     

    “Taxing Authority” shall mean
any government or political subdivision or territory or possession of any
government or any authority or agency therein or thereof having power to
tax.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    “Technical Capital” means the
patrimonio técnico of
banks comprised of Tier One Capital (patrimonio básico) and Tier
Two Capital (patrimonio
adicional) pursuant to Decree 1720, or any other Colombian law or
regulation regulating the patrimonio técnico in effect
from time to time.

     

    “Tier One Capital” means, as
of any date of determination, the “Patrimonio Básico” as the
same is defined in article 5 of Decree 1720, or any other Colombian law or
regulation regulating the Patrimonio Básico in effect
from time to time.

     

    “Tier Two Capital” means, as
of any date of determination, the “Patrimonio Adicional” as the
same is defined in article 7 of Decree 1720, or any other Colombian law or
regulation regulating the Patrimonio Adicional in
effect from time to time.

     

    “Trust Indenture Act” means
the Trust Indenture Act of 1939, as amended (15 U.S.C. §§
77aaa-77bbbb).

     

    “Trustee” means The Bank of
New York Mellon until a successor replaces it in accordance with the applicable
provisions of this Indenture and thereafter means the successor serving
hereunder.

     

    “Voting Stock” of any
specified Person as of any date means the capital stock of such Person that is
at the time entitled to vote in the election of the Board of Directors of such
Person.

     

    Section
1.02         Other
Definitions.

     

    
      
        
          
            	 
      	 	
                    Defined in

                  	 
	
                    Term

                  	 	
                    Section

                  	 
	 	 	 	 	 
	
                    “Authentication
      Order”

                  	 	 	
                    2.02

                  	 
	
                    “DTC”

                  	 	 	
                    2.03

                  	 
	
                    “Event
      of Default”

                  	 	 	
                    6.01

                  	 
	
                    “Paying
      Agent”

                  	 	 	
                    2.03

                  	 
	
                    “Registrar”

                  	 	 	
                    2.03

                  	 

          

        

      

    

    

    Section
1.03         Incorporation by Reference of Trust
Indenture Act.

     

    Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture.

     

    The
following TIA terms have the following meanings when used in this
Indenture:

     

    “indenture securities” means
the Notes;

     

    “indenture security Holder”
means a Holder of a Note;

     

    “indenture to be qualified”
means this Indenture;

     

    “indenture trustee” or “institutional trustee” means
the Trustee; and

     

    “obligor” on the Notes means
the Company and any successor obligor upon the Notes.

     

    All other
terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule under the TIA have the
meanings so assigned to them.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    Section
1.04         Rules of
Construction.

     

    Unless
the context otherwise requires:

     

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

     

    (2)           an
accounting term not otherwise defined has the meaning assigned to it in
accordance with Colombian GAAP;

     

    (3)           “or”
is not exclusive;

     

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

     

    (5)           “will”
shall be interpreted to express a command;

     

    (6)           provisions
apply to successive events and transactions; and

     

    (7)           references
to sections of or rules under the Securities Act will be deemed to include
substitute, replacement of successor sections or rules adopted by the SEC from
time to time.

     

    ARTICLE
2

    THE
NOTES

     

    Section
2.01         Form and Dating.

     

    (a)           General.  The Notes
and the Trustee’s certificate of authentication will be substantially in the
form of Exhibit A hereto.  The Notes may have notations, legends or
endorsements required by law, stock exchange rule or usage.  Each Note
will be dated the date of its authentication.  The Notes shall be in
denominations of U.S.$2,000 and integral multiples of U.S.$1,000.

     

    The terms
and provisions contained in the Notes will constitute, and are hereby expressly
made, a part of this Indenture and the Company and the Trustee, by their
execution and delivery of this Indenture, expressly agree to such terms and
provisions and to be bound thereby.  However, to the extent any
provision of any Note conflicts with the express provisions of this Indenture,
the provisions of this Indenture shall govern and be controlling.

     

    (b)           Global
Notes.  Notes issued in global form will be substantially in
the form of Exhibit A hereto (including the Global Note Legend thereon and the
“Schedule of Exchanges of Interests in the Global Note” attached
thereto).  Notes issued in definitive form will be substantially in
the form of Exhibit A hereto (but without the Global Note Legend thereon and
without the “Schedule of Exchanges of Interests in the Global Note” attached
thereto).  Each Global Note will represent such of the outstanding
Notes as will be specified therein and each shall provide that it represents the
aggregate principal amount of outstanding Notes from time to time endorsed
thereon and that the aggregate principal amount of outstanding Notes represented
thereby may from time to time be reduced or increased, as appropriate, to
reflect exchanges.  Any endorsement of a Global Note to reflect the
amount of any increase or decrease in the aggregate principal amount of
outstanding Notes represented thereby will be made by the Trustee or the
Custodian, at the direction of the Trustee, in accordance with instructions
given by the Holder thereof as required by Section 2.06 hereof.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    Section
2.02         Execution and
Authentication.

     

    At least
one Officer must sign the Notes for the Company by manual or facsimile
signature.

     

    If an
Officer whose signature is on a Note no longer holds that office at the time a
Note is authenticated, the Note will nevertheless be valid.

     

    A Note
will not be valid until authenticated by the manual signature of the
Trustee.  The signature will be conclusive evidence that the Note has
been authenticated under this Indenture.

     

    The
Trustee will, upon receipt of a written order of the Company signed by an
Officer (an “Authentication
Order”), authenticate Notes for original issue that may be validly issued
under this Indenture, including any Additional Notes.  The aggregate
principal amount of Notes outstanding at any time may not exceed the aggregate
principal amount of Notes authorized for issuance by the Company pursuant to one
or more Authentication Orders, except as provided in Section 2.07
hereof.

     

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

     

    The
Trustee shall not be required to authenticate any Additional Notes, nor will it
be liable for its refusal to authenticate any Additional Notes, if (i) the issue
of such Additional Notes will affect the Trustee’s own rights, duties or
immunities under the Notes and this Indenture or otherwise in a manner which is
not reasonably acceptable to the Trustee, (ii) the Trustee, being advised by
counsel, determines that such action may not lawfully be taken or may expose the
Trustee to personal liability to existing Holders or others or (iii) the Company
fails to deliver to the Trustee an Opinion of Counsel stating that such
Additional Notes will be fungible with, and constitute a single issuance with,
the Initial Notes for U.S. federal income tax purposes.

     

    Section
2.03         Registrar and Paying
Agent.

     

    The
Company will maintain an office or agency where Notes may be presented for
registration of transfer or for exchange (“Registrar”) and an office or
agency where Notes may be presented for payment (“Paying
Agent”).  The Registrar will keep a register of the Notes and
of their transfer and exchange.  The Company may appoint one or more
co-registrars and one or more additional paying agents.  The term
“Registrar” includes any co-registrar and the term “Paying Agent” includes any
additional paying agent.  The Company may change any Paying Agent or
Registrar without notice to any Holder.  The Company will notify the
Trustee in writing of the name and address of any Agent not a party to this
Indenture.  If the Company fails to appoint or maintain another entity
as Registrar or Paying Agent, the Trustee shall act as such.  The
Company or any of its Subsidiaries may act as Paying Agent or
Registrar.

     

    The
Company initially appoints The Depository Trust Company (“DTC”) to act as Depositary
with respect to the Global Notes.

     

    The
Company initially appoints the Trustee to act as the Registrar and Paying Agent
and to act as Custodian with respect to the Global Notes.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    Section
2.04         Paying Agent to Hold Money in
Trust.

     

    The
Company will require each Paying Agent other than the Trustee to agree in
writing that the Paying Agent will hold in trust for the benefit of Holders or
the Trustee all money held by the Paying Agent for the payment of principal,
premium, if any, or interest on the Notes, and will notify the Trustee of any
default by the Company in making any such payment.  While any such
default continues, the Trustee may require a Paying Agent to pay all money held
by it to the Trustee.  The Company at any time may require a Paying
Agent to pay all money held by it to the Trustee.  Upon payment over
to the Trustee, the Paying Agent (if other than the Company or a Subsidiary)
will have no further liability for such money.  If the Company or a
Subsidiary acts as Paying Agent, it will segregate and hold in a separate trust
fund for the benefit of the Holders all money held by it as Paying
Agent.  Upon any Intervention Measure or Preventive Measure relating
to the Company, the Trustee will serve as Paying Agent for the Notes, to the
extent permitted by applicable Colombian laws.

     

    Section
2.05         Holder Lists.

     

    The
Trustee will preserve in as current a form as is reasonably practicable the most
recent list available to it of the names and addresses of all Holders and shall
otherwise comply with TIA § 312(a).  If the Trustee is not the
Registrar, the Company will furnish to the Trustee at least seven Business Days
before each interest payment date and at such other times as the Trustee may
request in writing, a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of the Holders and the Company
shall otherwise comply with TIA § 312(a).

     

    Section
2.06         Transfer and
Exchange.

     

    (a)           Transfer and Exchange of Global
Notes.  A Global Note may not be transferred except as a whole
by the Depositary to a nominee of the Depositary, by a nominee of the Depositary
to the Depositary or to another nominee of the Depositary, or by the Depositary
or any such nominee to a successor Depositary or a nominee of such successor
Depositary.  All Global Notes will be exchanged by the Company for
Definitive Notes if:

     

    (1)           the
Company delivers to the Trustee notice from the Depositary that it is unwilling
or unable to continue to act as Depositary or that it is no longer a clearing
agency registered under the Exchange Act and, in either case, a successor
Depositary is not appointed by the Company within ninety (90) days after the
date of such notice from the Depositary;

     

    (2)           the
Company in its sole discretion determines that the Global Notes (in whole but
not in part) should be exchanged for Definitive Notes and delivers a written
notice to such effect to the Trustee; or

     

    (3)           there
has occurred and is continuing a Default or Event of Default with respect to the
Notes.

     

    Upon the
occurrence of either of the preceding events in (1) or (2) above, Definitive
Notes shall be issued in such names as the Depositary shall instruct the
Trustee.  Global Notes also may be exchanged or replaced, in whole or
in part, as provided in Sections 2.07 and 2.10 hereof.  Every Note
authenticated and delivered in exchange for, or in lieu of, a Global Note or any
portion thereof, pursuant to this Section 2.06 or Section 2.07 or Section 2.10
hereof, shall be authenticated and delivered in the form of, and shall be, a
Global Note.  A Global Note may not be exchanged for another Note
other than as provided in this Section 2.06(a), however, beneficial interests in
a Global Note may be transferred and exchanged as provided in Section 2.06(b) or
(c) hereof and shall bear any legend required by Section 2.06(f)
hereof.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    (b)           Transfer and Exchange of Beneficial
Interests in the Global Notes.  The transfer and exchange of
beneficial interests in the Global Notes will be effected through the
Depositary, in accordance with the provisions of this Indenture and the
Applicable Procedures.  Transfers of beneficial interests in the
Global Notes also will require compliance with either subparagraph (1) or (2)
below, as applicable, as well as one or more of the other following
subparagraphs, as applicable:

     

    (1)           Transfer of Beneficial Interests in
the Same Global Note.  Beneficial interests in any Global Note
may be transferred to Persons who take delivery thereof in the form of a
beneficial interest in a Global Note.  No written orders or
instructions shall be required to be delivered to the Registrar to effect the
transfers described in this Section 2.06(b)(1).

     

    (2)           All Other Transfers and Exchanges of
Beneficial Interests in Global Notes.  In connection with all
transfers and exchanges of beneficial interests that are not subject to Section
2.06(b)(1) above, the transferor of such beneficial interest must deliver to the
Registrar either:

     

    (A)          both:

     

    (i)           a
written order from a Participant or an Indirect Participant given to the
Depositary in accordance with the Applicable Procedures directing the Depositary
to credit or cause to be credited a beneficial interest in another Global Note
in an amount equal to the beneficial interest to be transferred or exchanged;
and

     

    (ii)           instructions
given in accordance with the Applicable Procedures containing information
regarding the Participant account to be credited with such increase;
or

     

    (B)          both:

     

    (i)           a
written order from a Participant or an Indirect Participant given to the
Depositary in accordance with the Applicable Procedures directing the Depositary
to cause to be issued a Definitive Note in an amount equal to the beneficial
interest to be transferred or exchanged; and

     

    (ii)           instructions
given by the Depositary to the Registrar containing information regarding the
Person in whose name such Definitive Note shall be registered to effect the
transfer or exchange referred to in (1) above;

     

    (c)           Transfer or Exchange of Beneficial
Interests for Definitive Notes.

     

    (1)           Beneficial Interests in Global Notes
to Definitive Notes.  If any holder of a beneficial interest in
a Global Note proposes to exchange such beneficial interest for a Definitive
Note or to transfer such beneficial interest to a Person who takes delivery
thereof in the form of a Definitive Note, then, upon satisfaction of the
conditions set forth in Section 2.06(b)(2) hereof, the Trustee will cause the
aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 2.06(h) hereof, and the Company will execute and
the Trustee will authenticate and deliver to the Person designated in the
instructions a Definitive Note in the appropriate principal
amount.  Any Definitive Note issued in exchange for a beneficial
interest pursuant to this Section 2.06(c)(1) will be registered in such name or
names and in such authorized denomination or denominations as the holder of such
beneficial interest requests through instructions to the Registrar from or
through the Depositary and the Participant or Indirect Participant.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    (d)           Transfer and Exchange of Definitive
Notes for Beneficial Interests.

     

    (1)           Definitive Notes to Beneficial
Interests in Global Notes.  A Holder of a Definitive Note may
exchange such Note for a beneficial interest in a Global Note or transfer such
Definitive Notes to a Person who takes delivery thereof in the form of a
beneficial interest in a Global Note at any time.  Upon receipt of a
request for such an exchange or transfer, the Trustee will cancel the applicable
Definitive Note and increase or cause to be increased the aggregate principal
amount of one of the Global Notes.

     

    (e)           Transfer and Exchange of Definitive
Notes for Definitive Notes.  Upon request by a Holder of
Definitive Notes and such Holder’s compliance with the provisions of this
Section 2.06(e), the Registrar will register the transfer or exchange of
Definitive Notes.  Prior to such registration of transfer or exchange,
the requesting Holder must present or surrender to the Registrar the Definitive
Notes duly endorsed or accompanied by a written instruction of transfer in form
satisfactory to the Registrar duly executed by such Holder or by its attorney,
duly authorized in writing.  In addition, the requesting Holder must
provide any additional certifications, documents and information, as applicable,
requested by the Registrar.  A Holder of Definitive Notes may transfer
such Notes to a Person who takes delivery thereof in the form of a Definitive
Note.

     

    (f)           Legends.  The
legend in substantially the following form will appear on the face of all Global
Notes issued under this Indenture unless specifically stated otherwise in the
applicable provisions of this Indenture:

     

    “THIS
GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING
THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS
HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT
THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT
TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE
BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL
NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11
OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

     

    UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS
NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF
THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW
YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER
ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.”

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    (g)           Cancellation and/or Adjustment of
Global Notes.  At such time as all beneficial interests in a
particular Global Note have been exchanged for Definitive Notes or a particular
Global Note has been repurchased or canceled in whole and not in part, each such
Global Note will be returned to or retained and canceled by the Trustee in
accordance with Section 2.11 hereof.  At any time prior to such
cancellation, if any beneficial interest in a Global Note is exchanged for or
transferred to a Person who will take delivery thereof in the form of a
beneficial interest in another Global Note or for Definitive Notes, the
principal amount of Notes represented by such Global Note will be reduced
accordingly and an endorsement will be made on such Global Note by the Trustee
or by the Depositary at the direction of the Trustee to reflect such reduction;
and if the beneficial interest is being exchanged for or transferred to a Person
who will take delivery thereof in the form of a beneficial interest in another
Global Note, such other Global Note will be increased accordingly and an
endorsement will be made on such Global Note by the Trustee or by the Depositary
at the direction of the Trustee to reflect such increase.

     

    (h)           General Provisions Relating to
Transfers and Exchanges.

     

    (1)           To
permit registrations of transfers and exchanges, the Company will execute and
the Trustee will authenticate Global Notes and Definitive Notes upon receipt of
an Authentication Order in accordance with Section 2.02 hereof or at the
Registrar’s request.

     

    (2)           No
service charge will be made to a Holder of a beneficial interest in a Global
Note or to a Holder of a Definitive Note for any registration of transfer or
exchange, but the Company or the Registrar may require payment of a sum
sufficient to cover any transfer tax or similar governmental charge payable in
connection therewith (other than any such transfer taxes or similar governmental
charge payable upon exchange or transfer pursuant to Sections 2.10 and 8.05
hereof).

     

    (3)           All
Global Notes and Definitive Notes issued upon any registration of transfer or
exchange of Global Notes or Definitive Notes will be the valid obligations of
the Company, evidencing the same debt, and entitled to the same benefits under
this Indenture, as the Global Notes or Definitive Notes surrendered upon such
registration of transfer or exchange.

     

    (4)           Neither
the Registrar nor the Company will be required to register the transfer of or to
exchange a Note between a record date and the next succeeding interest payment
date.

     

    (5)           Prior
to due presentment for the registration of a transfer of any Note, the Trustee,
any Agent and the Company may deem and treat the Person in whose name any Note
is registered as the absolute owner of such Note for the purpose of receiving
payment of principal of and interest on such Notes and for all other purposes,
and none of the Trustee, any Agent or the Company shall be affected by notice to
the contrary.

     

    (6)           The
Trustee will authenticate Global Notes and Definitive Notes in accordance with
the provisions of Section 2.02 hereof.

     

    (7)           All
certifications, certificates and Opinions of Counsel, if any, required to be
submitted to the Registrar pursuant to this Section 2.06 to effect a
registration of transfer or exchange may be submitted by facsimile.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

    

    Section
2.07         Replacement
Notes.

     

    If any
mutilated Note is surrendered to the Trustee or the Company and the Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, the Company will issue and the Trustee, upon receipt of an Authentication
Order, will authenticate a replacement Note if the Trustee’s requirements are
met.  If required by the Trustee or the Company, an indemnity bond
must be supplied by the Holder that is sufficient in the judgment of the Trustee
and the Company to protect the Company, the Trustee, any Agent and any
authenticating agent from any loss that any of them may suffer if a Note is
replaced.  The Company and the Trustee may charge for its expenses in
replacing a Note.

     

    Every
replacement Note is an additional obligation of the Company and will be entitled
to all of the benefits of this Indenture equally and proportionately with all
other Notes duly issued hereunder.

     

    Section
2.08         Outstanding
Notes.

     

    The Notes
outstanding at any time are all the Notes authenticated by the Trustee except
for those canceled by it, those delivered to it for cancellation, those
reductions in the interest in a Global Note effected by the Trustee in
accordance with the provisions hereof, and those described in this Section 2.08
as not outstanding.  Except as set forth in Section 2.09 hereof, a
Note does not cease to be outstanding because the Company or an Affiliate of the
Company holds the Note.

     

    If a Note
is replaced pursuant to Section 2.07 hereof, it ceases to be outstanding unless
the Trustee receives proof satisfactory to it that the replaced Note is held by
a protected purchaser.

     

    If the
principal amount of any Note is considered paid under Section 4.01 hereof, it
ceases to be outstanding and interest on it ceases to accrue.

     

    If the
Paying Agent (other than the Company, a Subsidiary or an Affiliate of any
thereof) holds, on the Stated Maturity, money sufficient to pay Notes payable on
that date, then on and after that date such Notes will be deemed to be no longer
outstanding and will cease to accrue interest.

     

    Section
2.09         Treasury Notes.

     

    In
determining whether the Holders of the required principal amount of Notes have
concurred in any direction, waiver or consent, Notes owned by the Company, or by
any Person directly or indirectly controlling or controlled by or under direct
or indirect common control with the Company, will be considered as though not
outstanding, except that for the purposes of determining whether the Trustee
will be protected in relying on any such direction, waiver or consent, only
Notes that a Responsible Officer of the Trustee knows are so owned will be so
disregarded.

     

    Section
2.10         Temporary Notes.

     

    Until
certificates representing Notes are ready for delivery, the Company may prepare
and the Trustee, upon receipt of an Authentication Order, will authenticate
temporary Notes.  Temporary Notes will be substantially in the form of
certificated Notes but may have variations that the Company considers
appropriate for temporary Notes and as may be reasonably acceptable to the
Trustee.  Without unreasonable delay, the Company will prepare and the
Trustee will authenticate definitive Notes in exchange for temporary
Notes.

     

    Holders
of temporary Notes will be entitled to all of the benefits of this
Indenture.

     

    
      
        
        

      

      
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    Section
2.11         Cancellation.

     

    The
Company at any time may deliver Notes to the Trustee for
cancellation.  The Registrar and Paying Agent will forward to the
Trustee any Notes surrendered to them for registration of transfer, exchange or
payment.  The Trustee and no one else will cancel all Notes
surrendered for registration of transfer, exchange, payment, replacement or
cancellation and will destroy canceled Notes (subject to the record retention
requirement of the Exchange Act).  Upon written request, certification
of the destruction of all canceled Notes will be delivered to the
Company.  The Company may not issue new Notes to replace Notes that it
has paid or that have been delivered to the Trustee for cancellation for any
reason other than in connection with a transfer or exchange.

     

    Section
2.12         Defaulted
Interest.

     

    If the
Company defaults in a payment of interest on the Notes, it will pay the
defaulted interest in any lawful manner plus, to the extent lawful, interest
payable on the defaulted interest, to the Persons who are Holders on a
subsequent special record date, in each case at the rate provided in the Notes
and in Section 4.01 hereof.  The Company will notify the Trustee in
writing of the amount of defaulted interest proposed to be paid on each Note and
the date of the proposed payment.  The Company will fix or cause to be
fixed each such special record date and payment date; provided that no such special
record date may be less than 10 days prior to the related payment date for such
defaulted interest.  At least 15 days before the special record date,
the Company (or, upon the written request of the Company, the Trustee in the
name and at the expense of the Company) will mail or cause to be mailed to
Holders a notice that states the special record date, the related payment date
and the amount of such interest to be paid.

     

    Section
2.13         Additional
Amounts.

     

    All
payments made by the Company under or with respect to the Notes will be made
free and clear of and without withholding or deduction for or on account of any
present or future Taxes imposed or levied by or on behalf of any Taxing
Authority in any jurisdiction in which the Company is organized or is otherwise
resident for tax purposes or any jurisdiction from or through which payment is
made (each a “Relevant Taxing
Jurisdiction”), unless the Company is required to withhold or deduct
Taxes by law or by the interpretation or administration thereof.  If
the Company is required to withhold or deduct any amount for or on account of
Taxes imposed by a Relevant Taxing Jurisdiction, from any payment made under or
with respect to the Notes, the Company will pay such additional amounts (“Additional Amounts”) as may
be necessary so that the net amount received by each Holder of Notes (including
Additional Amounts) after such withholding or deduction will equal the amount
the Holder would have received if such Taxes had not been withheld or deducted;
provided, however, that
no Additional Amounts will be payable with respect to any Tax that would not
have been imposed, payable or due:

     

    (a)           but
for the existence of any present or former connection between the Holder (or the
beneficial owner of, or person ultimately entitled to obtain an interest in,
such Notes) and the Relevant Taxing Jurisdiction (including being a citizen or
resident or national of, or carrying on a business or maintaining a permanent
establishment in, or being physically present in, the Relevant Taxing
Jurisdiction) other than the mere holding of the Notes or enforcement of rights
thereunder or the receipt of payments in respect thereof;

     

    (b)           but
for the failure to satisfy any certification, identification or other reporting
requirements whether imposed by statute, treaty, regulation or administrative
practice, provided,
however, that the
Company has delivered a request to the Holder to comply with such requirements
at least 30 days prior to the date by which such compliance is required;
or

     

    
      
        
        

      

      
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    (c)           if
the presentation of Notes (where presentation is required) for payment had
occurred within 30 days after the date such payment was due and payable or was
duly provided for, whichever is later.

     

    In addition, Additional Amounts will
not be payable if the beneficial owner of, or person ultimately entitled to
obtain an interest in, such Notes had been the Holder of the Notes and such
beneficial owner would not be entitled to the payment of Additional Amounts by
reason of clause (a), (b) or (c) above.  In addition, Additional
Amounts will not be payable with respect to any Tax which is payable otherwise
than by withholding from payments of, or in respect of principal of, or any
interest on, the Notes.

     

    Whenever
in this Indenture there is mentioned, in any context, the payment of amounts
based upon the principal amount of the Notes or of principal, interest or of any
other amount payable under or with respect to any of the Notes, such mention
shall be deemed to include mention of the payment of Additional Amounts to the
extent that, in such context, Additional Amounts are, were or would be payable
in respect thereof.

     

    The
Company will provide the Trustee with documentation satisfactory to the Trustee
evidencing the payment of Additional Amounts.

     

    The
Company will pay any present or future stamp, court or documentary taxes, or any
other excise or property taxes, charges or similar levies which arise in any
jurisdiction from the execution, delivery or registration of the Notes or any
other document or instrument referred to therein, or the receipt of any payments
with respect to the Notes, excluding any such taxes, charges or similar levies
imposed by any jurisdiction other than a jurisdiction in which the Company is
organized or is otherwise resident for tax purposes, the United States of
America or any jurisdiction in which a Paying Agent is located, but not
excluding those resulting from, or required to be paid in connection with, the
enforcement of the Notes or any other such document or instrument following the
occurrence of any Event of Default with respect to the Notes.

     

    Section
2.14         Purchase of
Notes.

     

    The
Company may at anytime purchase Notes at any price in the open market, in
privately negotiated transactions or otherwise.  Notes so purchased by
the Company may be held, resold in accordance with the Securities Act of 1933,
as amended, or any exemption therefrom, or surrendered to the Trustee for
cancellation.

     

    Section
2.15         Unclaimed
Amounts.

     

    Any money
deposited with the Trustee or paying agent or held by the Company, in trust, for
the payment of principal, premium, interest or any Additional Amounts, that
remains unclaimed for two years after such amount becomes due and payable shall
be paid to the Company upon its request or, if held by the Company, shall be
discharged from such trust.  The Holder of the Notes will look only to
the Company for payment thereof, and all liability of the Trustee, Paying Agent
or of the Company shall thereupon cease.  However, the Trustee or
Paying Agent may at the expense of the Company cause to be published once in a
newspaper in each place of payment, or to be mailed to Holders, or both, notice
that the money remains unclaimed and any unclaimed balance of such money
remaining, after a specified date, will be repaid to the Company.

     

    
      
        
        

      

      
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    ARTICLE
3

    REDEMPTION
AND PREPAYMENT

     

    Section
3.01         Redemption and
Prepayment.

     

    The Notes
may not be redeemed prior to the Stated Maturity.

     

    Section
3.02         Mandatory
Redemption.

     

    The
Company is not required to make mandatory redemption or sinking fund payments
with respect to the Notes.

     

    ARTICLE
4

    COVENANTS

     

    Section
4.01         Payment of
Notes.

     

    The
Company will pay or cause to be paid the principal of, premium, if any, and
interest on, the Notes on the dates and in the manner provided in the
Notes.  Principal, premium, if any, and interest will be considered
paid on the date due if the Paying Agent, if other than the Company or a
Subsidiary thereof, holds as of 10:00 a.m. Eastern Standard Time on the Business
Day prior to the due date money deposited by the Company in immediately
available funds and designated for and sufficient to pay all principal, premium,
if any, and interest then due.

     

    The
Company will pay interest (including post-petition interest in any proceeding
under any Bankruptcy Law) on overdue principal at the rate equal to 1% per annum
in excess of the then applicable interest rate on the Notes to the extent
lawful; it will pay interest (including post-petition interest in any proceeding
under any Bankruptcy Law) on overdue installments of interest (without regard to
any applicable grace period) at the same rate to the extent lawful.

     

    Section
4.02         Maintenance of Office or
Agency.

     

    The
Company will maintain in the Borough of Manhattan, the City of New York, an
office or agency (which may be an office of the Trustee or an affiliate of the
Trustee, Registrar or co-registrar) where Notes may be surrendered for
registration of transfer or for exchange and where notices and demands to or
upon the Company in respect of the Notes and this Indenture may be
served.  The Company will give prompt written notice to the Trustee of
the location, and any change in the location, of such office or
agency.  If at any time the Company fails to maintain any such
required office or agency or fails to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or
served at the Corporate Trust Office of the Trustee.

     

    Initially
this agent will be CT Corporation System, and the Company agrees not to change
the designation of such agent without prior notice to the Trustee and
designation of a replacement agent in the Borough of Manhattan, The City of New
York.

     

    
      
        
        

      

      
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    Section
4.03         Provision of Financial Statements
and Reports.

     

    At all
times when the Company is required to file any financial statements or reports
with the SEC, the Company shall use its best efforts to file all required
statements or reports in a timely manner in accordance with the rules and
regulations of the SEC.  In addition, at any time when the Company is
not subject to or is not current in its reporting obligations under Section 13
or Section 15(d) of the Exchange Act or is not included on the SEC’s list of
foreign private issuers that claim exemption from the registration requirements
of Section 12(g) of the Exchange Act pursuant to Rule 12g3-2(b) thereunder and
any Note remain outstanding, the Company will make available, upon request, to
any Holder or any prospective purchaser of the Notes, who so requests in
writing, substantially the same financial and other information that we would be
required to include and file in an annual report on Form 20-F and reports on
Form 6-K.

     

    Delivery
of such reports, information and documents to the Trustee is for informational
purposes only, and the Trustee’s receipt of such 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 covenants hereunder (as to which the Trustee is entitled to conclusively
rely exclusively on an Officers’ Certificate).

     

    The
Company will at all times comply with TIA § 314(a).

     

    Section
4.04         Stay, Extension and Usury
Laws.

     

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

     

    Section
4.05         Further Actions.

     

    The
Company will, at its own cost and expense, satisfy any condition or take any
action (including the obtaining or effecting of any necessary consent, approval,
authorization, exemption, filing, license, order, recording or registration) at
any time required, as may be required by applicable law or may be necessary, in
accordance with applicable laws and/or regulations, to be taken, fulfilled or
done in order to (i) enable the Company to lawfully enter into, exercise its
rights and perform and comply with its obligations under this Indenture and the
Notes, as the case may be; (ii) ensure that its obligations under this Indenture
and the Notes are legally binding and enforceable; (iii) make this Indenture and
the Notes admissible in evidence in the courts of the State of New York and
Colombia; (iv) preserve the enforceability of, and maintain the Trustee’s rights
under, this Indenture; and (v) respond to any reasonable requests received from
the Trustee to enable the Trustee to facilitate the Trustee’s exercise of its
rights and performance of its obligations under this Indenture and the Notes,
including exercising and enforcing its rights under and carrying out the terms,
provisions and purposes of this Indenture and the Notes.

     

    Section
4.06         Compliance
Certificate.

     

    The
Company shall deliver to the Trustee, within one hundred twenty (120) days after
the end of each fiscal year of the Company, a certificate signed by either the
principal executive officer, principal financial officer or principal accounting
officer of the Company, 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 the
status thereof of which the signer may have knowledge.

     

    
      
        
        

      

      
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    ARTICLE
5

    SUCCESSORS

     

    Section
5.01         Merger, Consolidation, or Sale of
Assets.

     

    The
Company will not consolidate with or merge into, or sell, lease, convey or
transfer, in one transaction or a series of transactions, all or substantially
all of the Company’s properties and assets to any Person, unless:

     

    (1)           the
surviving entity, if other than the Company, is organized and existing under the
laws of Colombia or the United States and assumes via a supplemental indenture
all of the Obligations under the Notes and this Indenture,

     

    (2)           the
Company, or the surviving entity, as the case may be, is not immediately after
such transaction in Default under the Notes and this Indenture, and

     

    (3)           the Company, or the surviving entity,
has delivered to the Trustee an Officers' Certificate and an Opinion of Counsel,
each in form and substance satisfactory to the Trustee, stating that (i) such
consolidation, merger, or sale, lease, conveyance or transfer of assets, and any
supplemental indenture executed in connection with such transaction, complies
with the terms of this Section 5.01, (ii) all conditions precedent provided for
in this Indenture relating to the merger, consolidation or sale of assets have
been satisfied and (iii) the Notes constitute legal, valid and binding
obligations of the surviving entity, enforceable in accordance with their
terms..

     

    Section
5.02         Successor Corporation
Substituted.

     

    Upon any
consolidation or merger, or any sale, assignment, transfer, lease, conveyance or
other disposition of all or substantially all of the properties or assets of the
Company in a transaction that is subject to, and that complies with the
provisions of, Section 5.01 hereof, the successor Person formed by such
consolidation or into or with which the Company is merged or to which such sale,
assignment, transfer, lease, conveyance or other disposition is made shall
succeed to, and be substituted for (so that from and after the date of such
consolidation, merger, sale, assignment, transfer, lease, conveyance or other
disposition, the provisions of this Indenture referring to the “Company” shall
refer instead to the successor Person and not to the Company), and may exercise
every right and power of the Company under this Indenture with the same effect
as if such successor Person had been named as the Company herein; provided, however, that the
predecessor Company shall not be relieved from the obligation to pay the
principal of and interest on the Notes except in the case of a sale of all of
the Company’s assets in a transaction that is subject to, and that complies with
the provisions of, Section 5.01 hereof.

     

    
      
        
        

      

      
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    ARTICLE
6

    DEFAULTS
AND REMEDIES

     

    Section
6.01         Events of
Default.

     

    Each of
the following is an “Event of
Default”:

     

    (1)          failure
by the Company to pay interest on any of the Notes when it becomes due and
payable and the continuance of any such failure for thirty (30)
days;

     

    (2)          failure
by the Company to pay the principal on any of the Notes when it becomes due and
payable whether at Stated Maturity or otherwise and the continuance of any such
failure for seven (7) days;

     

    (3)          the
Company pursuant to or within the meaning of any Bankruptcy Law:

     

    (A)           commences
a voluntary case;

     

    (B)           consents
to the entry of an order for relief against it in an involuntary
case;

     

    (C)           consents
to the appointment of a Custodian of it or for all or substantially all of its
property;

     

    (D)           makes
a general assignment for the benefit of its creditors;

     

    (E)           is
subject to any other Intervention Measure or Preventive Measure; or

     

    (4)          the
Superintendency of Finance enters an order or decree under any Bankruptcy Law
that:

     

    (A)           is
for relief against the Company as debtor in an involuntary case;

     

    (B)           appoints
a Custodian of the Company or a Custodian for all or substantially all of the
assets of the Company; or

     

    (C)           orders
the liquidation of the Company and the order or decree remains unstayed and in
effect for sixty (60) days.

     

    Section
6.02         Acceleration.

     

    There is
no right of acceleration in the case of a default in any payment on the Notes
(whether when due or otherwise) or the performance of any of the Company’s other
obligations under this Indenture or the Notes.  Notwithstanding the
immediately preceding sentence, the Holders shall have the right to accelerate
the payments due under the Notes during the occurrence of an Event of a Default;
provided that there
shall have been a change, amendment or modification to the Colombian banking
laws that would permit such right without disqualifying the Notes from Tier Two
Capital status and the Holders exercise such right in accordance with applicable
Colombian banking law.

     

    
      
        
        

      

      
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    Section
6.03         Other Remedies.

     

    Subject
to the provisions of Article 9, if an Event of Default occurs and is continuing,
the Trustee may pursue any available remedy (excluding acceleration, except as
provided in Section 6.02 above) to collect the payment of principal, premium, if
any, and interest on the Notes or to enforce the performance of any provision of
the Notes or this Indenture.

     

    The
Trustee may maintain a proceeding even if it does not possess any of the Notes
or does not produce any of them in the proceeding.  A delay or
omission by the Trustee or any Holder of a Note in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default.  All
remedies are cumulative to the extent permitted by law.

     

    If the
Company fails to make payment of principal of or interest or Additional Amounts,
if any, on the Notes (and, in the case of payment of principal, such failure to
pay continues for seven (7) days or, in the case of payment of interest or
Additional Amounts, such failure to pay continues for thirty (30) days), each
Holder shall have the right to demand and collect under the Indenture and the
Company will pay to the Holders the applicable amount of such due and payable
principal, accrued interest and Additional Amounts, if any, on the
Notes.

     

    Section
6.04         Waiver of Past
Defaults

     

    Holders
of not less than a majority in aggregate principal amount of the then
outstanding Notes by notice to the Trustee may on behalf of the Holders of all
of the Notes waive an existing Default or Event of Default and its consequences
hereunder, except a continuing Default or Event of Default in the payment of the
principal of, premium, if any, or interest on, the Notes (including in
connection with an offer to purchase); provided, however, that the
Holders of a majority in aggregate principal amount of the then outstanding
Notes may rescind an acceleration and its consequences, including any related
payment default that resulted from such acceleration; provided, however, the Company has paid or deposited
with the Trustee all amounts due to the Trustee under Section 7.07 hereof and
reimbursed any and all fees, expenses, disbursements and advances of the
Trustee, its agents and counsel incurred in connection with such Default or
Event of Default.  Upon any such waiver, such Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to
have been cured for every purpose of this Indenture; but no such waiver shall
extend to any subsequent or other Default or impair any right consequent
thereon.

     

    Section
6.05         Control by
Majority.

     

    Holders
of a majority in aggregate principal amount of the then outstanding Notes may
direct the time, method and place of conducting any proceeding for exercising
any remedy available to the Trustee or exercising any trust or power conferred
on it.  However, the Trustee may refuse to follow any direction that
conflicts with law or this Indenture or that the Trustee determines may be
unduly prejudicial to the rights of other Holders or that may involve the
Trustee in personal liability.

     

    Section
6.06         Rights of Holders of Notes to
Receive Payment.

     

    Notwithstanding
any other provision of this Indenture, the right of any Holder to receive
payment of principal, premium, if any, and interest on the Note, on or after the
respective due dates expressed in the Note (including in connection with an
offer to purchase), or to bring suit for the enforcement of any such payment on
or after such respective dates, shall not be impaired or affected without the
consent of such Holder.

     

    
      
        
        

      

      
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    Section
6.07         Collection Suit by
Trustee.

     

    If an
Event of Default specified in Section 6.01(1) or (2) hereof occurs and is
continuing, the Trustee is authorized to recover judgment in its own name and as
trustee of an express trust against the Company for the whole amount of
principal of, premium, if any, and interest remaining unpaid on, the Notes and
interest on overdue principal and, to the extent lawful, interest and such
further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

     

    Section
6.08         Trustee May File Proofs of
Claim.

     

    The
Trustee is authorized to file such proofs of claim and other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel) and the Holders allowed in
any judicial proceedings relative to the Company (or any other obligor upon the
Notes), its creditors or its property and shall be entitled and empowered to
collect, receive and distribute any money or other property payable or
deliverable on any such claims and any custodian in any such judicial proceeding
is hereby authorized by each Holder to make such payments to the Trustee, and in
the event that the Trustee shall consent to the making of such payments directly
to the Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.07
hereof.  To the extent that the payment of any such compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other amounts due the Trustee under Section 7.07 hereof out of the estate in
any such proceeding, shall be denied for any reason, payment of the same shall
be secured by a Lien on, and shall be paid out of, any and all distributions,
dividends, money, securities and other properties that the Holders may be
entitled to receive in such proceeding whether in liquidation or under any plan
of reorganization or arrangement or otherwise.  Nothing herein
contained shall be deemed to authorize the Trustee to authorize or consent to or
accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of any Holder, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

     

    Section
6.09         Priorities.

     

    If the
Trustee collects any money pursuant to this Article 6, it shall pay out the
money in the following order:

     

    First:            to
the Trustee, its agents and attorneys for amounts due under Section 7.07 hereof,
including payment of all compensation, expenses and liabilities incurred, and
all advances made, by the Trustee and the costs and expenses of
collection;

     

    Second:        to
Holders for amounts due and unpaid on the Notes for principal, premium, if any,
and interest, ratably, without preference or priority of any kind, according to
the amounts due and payable on the Notes for principal, premium, if any and
interest, respectively; and

     

    Third:            to
the Company or to such party as a court of competent jurisdiction or relevant
entity shall direct.

     

    The
Trustee may fix a record date and payment date for any payment to Holders
pursuant to this Section 6.09.

     

    
      
         

      

      
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              Section
      6.10

            	
              Undertaking for
      Costs.

            

    

     

    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 a Trustee, a
court in its discretion may require the filing by any party litigant in the suit
of an undertaking to pay the costs of the suit, and the court in its discretion
may assess reasonable costs, including reasonable attorneys’ fees, against any
party litigant in the suit, having due regard to the merits and good faith of
the claims or defenses made by the party litigant.  This Section 6.10
does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section
6.06 hereof, or a suit by Holders of more than 10% in aggregate principal amount
of the then outstanding Notes.

     

    ARTICLE
7

    TRUSTEE

     

    
      	
              Section
      7.01

            	
              Duties of
      Trustee.

            

    

     

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

     

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

     

     (1)           the
duties of the Trustee will be determined solely by the express provisions of
this Indenture and the Trustee need perform only those duties that are
specifically set forth in this Indenture and no others, and no implied covenants
or obligations shall be read into this Indenture against the Trustee;
and

     

     (2)           in
the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Trustee and conforming
to the requirements of this Indenture.  However, the Trustee will
examine the certificates and opinions to determine whether or not they conform
to the requirements of this Indenture.

     

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

     

     (1)           this
paragraph does not limit the effect of paragraph (b) of this Section
7.01;

     

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

     

     (3)           the
Trustee will not be liable with respect to any action it takes or omits to take
in good faith in accordance with a direction received by it pursuant to Section
6.06 hereof.

     

    (d)           Whether
or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to paragraphs (a), (b), and (c) of
this Section 7.01.

     

    (e)           No
provision of this Indenture will require the Trustee to expend or risk its own
funds or incur any liability.  The Trustee will be under no obligation
to exercise any of its rights and powers under this Indenture at the request of
any Holders, unless such Holder has offered to the Trustee security and
indemnity satisfactory to it against any loss, liability or
expense.

    
      
         

      

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

     

    (g)           No
provision of this Indenture shall be deemed to impose any duty or obligation on
the Trustee to take or omit to take any action, or suffer any action to be taken
or omitted, in the performance of its duties or obligations under this
Indenture, or to exercise any right or power thereunder, to the extent that
taking or omitting to take such action or suffering such action to be taken or
omitted would violate applicable law binding upon it.

     

    (h)           The
Trustee shall not be deemed to have notice or knowledge of any Default or Event
of Default or knowledge of any cure of any Default or Event of Default unless
either (i) a Responsible Officer has actual knowledge thereof or (ii) written
notice of such Default, Event of Default or cure thereof has been given to the
Trustee at its Corporate Trust Office by the Company or any Holder.

    

    
      	
              Section
      7.02

            	
              Rights of
      Trustee.

            

    

     

    (a)           The
Trustee may conclusively rely upon any document believed by it to be genuine and
to have been signed or presented by the proper Person.  The Trustee
need not investigate any fact or matter stated in the document.

     

    (b)           Before
the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel or both.  The Trustee will not be
liable for any action it takes or omits to take in good faith in reliance on
such Officers’ Certificate or Opinion of Counsel.  The Trustee may
consult with counsel and the written advice of such counsel or any Opinion of
Counsel will be full and complete authorization and protection from liability in
respect of any action taken, suffered or omitted by it hereunder in good faith
and in reliance thereon.

     

    (c)           The
Trustee may act through its attorneys and agents and will not be responsible for
the misconduct or negligence of any agent appointed with due care.

     

    (d)           The
Trustee will not be liable for any action it takes or omits to take in good
faith that it believes to be authorized or within the rights or powers conferred
upon it by this Indenture.

     

    (e)           Unless
otherwise specifically provided in this Indenture, any demand, request,
direction or notice from the Company will be sufficient if signed by an Officer
of the Company.

     

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

     

    (g)           The
rights, privileges, protections, immunities and benefits provided to the Trustee
hereunder (including its right to be indemnified) are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder and to each of
its agents, custodians and other Persons duly employed by the Trustee
hereunder.

    
      
         

      

      
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    (h)           The
permissive rights of the Trustee enumerated herein shall not be construed as
duties.

     

    (i)
           The Trustee
may request that the Issuer deliver an Officers' Certificate setting forth the
name of the individuals and/or titles of officers authorized at such time to
take specific actions pursuant to this Indenture, which Officers' Certificate
may be signed by any Person authorized to sign an Officers' Certificate,
including any Person specified as so authorized in any such Officers'
Certificate previously delivered and not superseded.

     

    
      	
              Section
      7.03

            	
              Individual Rights of
      Trustee.

            

    

     

    The
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Company or any Affiliate of the Company
with the same rights it would have if it were not Trustee.  However,
in the event that the Trustee acquires any conflicting interest it must
eliminate such conflict within 90 days, apply to the SEC for permission to
continue as trustee (if this Indenture has been qualified under the TIA) or
resign.  Any Agent may do the same with like rights and
duties.  The Trustee is also subject to Sections 7.10 and 7.11
hereof.

     

    
      	
              Section
      7.04

            	
              Trustee’s
      Disclaimer.

            

    

     

    The
Trustee will not be responsible for and makes no representation as to the
validity or adequacy of this Indenture or the Notes, it shall not be accountable
for the Company’s use of the proceeds from the Notes or any money paid to the
Company or upon the Company’s direction under any provision of this Indenture,
it will not be responsible for the use or application of any money received by
any Paying Agent other than the Trustee, and it will not be responsible for any
statement or recital herein or any statement in the Notes or any other document
in connection with the sale of the Notes or pursuant to this Indenture other
than its certificate of authentication.

     

    
      	
              Section
      7.05

            	
              Notice of
      Defaults.

            

    

     

    If a
Default or Event of Default occurs and is continuing and if it is known to the
Trustee, the Trustee will mail to Holders a notice of the Default or Event of
Default within 90 days after it occurs.  Except in the case of a
Default or Event of Default in payment of principal of, premium, if any, or
interest on, any Note, the Trustee may withhold the notice if and so long as a
committee of its Responsible Officers in good faith determines that withholding
the notice is in the interests of the Holders.

     

    
      	
              Section
      7.06

            	
              Reports by Trustee to Holders
      of the Notes.

            

    

     

    (a)           Within
60 days after each May 15 beginning with the May 15 following the date of this
Indenture, and for so long as Notes remain outstanding, the Trustee will mail to
the Holders a brief report dated as of such reporting date that complies with
TIA § 313(a) (but if no event described in TIA § 313(a) has occurred
within the twelve months preceding the reporting date, no report need be
transmitted).  The Trustee also will comply with TIA
§ 313(b)(2).  The Trustee will also transmit by mail all reports
as required by TIA § 313(c).

     

    (b)           A
copy of each report at the time of its mailing to the Holders will be mailed by
the Trustee to the Company and filed by the Trustee with the SEC and each stock
exchange on which the Notes are listed in accordance with TIA
§ 313(d).  The Company will promptly notify the Trustee when the
Notes are listed on any stock exchange.

    
      
         

      

      
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              Section
      7.07

            	
              Compensation and
      Indemnity.

            

    

     

    (a)           The
Company will pay to the Trustee from time to time reasonable compensation for
its acceptance of this Indenture and services hereunder.  The
Trustee’s compensation will not be limited by any law on compensation of a
trustee of an express trust.  The Company will reimburse the Trustee
promptly upon request for all reasonable disbursements, advances and expenses
incurred or made by it in addition to the compensation for its
services.  Such expenses will include the reasonable compensation,
disbursements and expenses of the Trustee’s agents and counsel.

     

    (b)           The
Company will indemnify the Trustee against any and all losses, liabilities or
expenses incurred by it arising out of or in connection with the acceptance or
administration of its duties under this Indenture, including the costs and
expenses of enforcing this Indenture against the Company (including this Section
7.07) and defending itself against any claim (whether asserted by the Company,
any Holder or any other Person) or liability in connection with the exercise or
performance of any of its powers or duties hereunder, except to the extent any
such loss, liability or expense may be attributable to its negligence or bad
faith.  The Trustee will notify the Company promptly of any claim for
which it may seek indemnity.  Failure by the Trustee to so notify the
Company will not relieve the Company of its obligations
hereunder.  The Company will defend the claim and the Trustee will
cooperate in the defense.  The Trustee may have separate counsel and
the Company will pay the reasonable fees and expenses of such
counsel.  The Company need not pay for any settlement made without its
consent, which consent will not be unreasonably withheld.

     

    (c)           The
obligations of the Company under this Section 7.07 will survive the resignation
or removal of the Trustee and the satisfaction and discharge of this
Indenture.

     

    (d)           To
secure the Company’s payment obligations in this Section 7.07, the Trustee will
have a Lien prior to the Notes on all money or property held or collected by the
Trustee, except that held in trust to pay principal and interest on particular
Notes.  Such Lien will survive the satisfaction and discharge of this
Indenture.

     

    (e)           When
the Trustee incurs expenses or renders services after an Event of Default
specified in Section 6.01(3) or (4) hereof occurs, the expenses and the
compensation for the services (including the fees and expenses of its agents and
counsel) are intended to constitute expenses of administration under any
Bankruptcy Law.

     

    (f) 
          The Trustee will
comply with the provisions of TIA § 313(b)(2) to the extent
applicable.

     

    
      	
              Section
      7.08

            	
              Replacement of
      Trustee.

            

    

     

    (a)           A
resignation or removal of the Trustee and appointment of a successor Trustee
will become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section 7.08.

     

    (b)           The
Trustee may resign in writing at any time and be discharged from the trust
hereby created by so notifying the Company.  The Holders of a majority
in aggregate principal amount of the then outstanding Notes may remove the
Trustee by so notifying the Trustee and the Company in writing.  The
Company may remove the Trustee if:

     

     (1)           the
Trustee fails to comply with Section 7.10 hereof;

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

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

     

     (3)           a
custodian or public officer takes charge of the Trustee or its property;
or

     

     (4)           the
Trustee becomes incapable of acting.

     

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

     

    (d)           If
a successor Trustee does not take office within 60 days after the retiring
Trustee resigns or is removed, the retiring Trustee, the Company, or the Holders
of at least 10% in aggregate principal amount of the then outstanding Notes may,
at the expense of the Company, petition any court of competent jurisdiction for
the appointment of a successor Trustee.

     

    (e)           If
the Trustee, after written request by any Holder who has been a Holder for at
least six months, fails to comply with Section 7.10 hereof, such Holder may
petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor Trustee.

     

    (f)
           A successor
Trustee will deliver a written acceptance of its appointment to the retiring
Trustee and to the Company.  Thereupon, the resignation or removal of
the retiring Trustee will become effective, and the successor Trustee will have
all the rights, powers and duties of the Trustee under this
Indenture.  The successor Trustee will mail a notice of its succession
to Holders.  The retiring Trustee will promptly transfer all property
held by it as Trustee to the successor Trustee; provided all sums owing to
the Trustee hereunder have been paid and subject to the Lien provided for in
Section 7.07 hereof.  Notwithstanding replacement of the Trustee
pursuant to this Section 7.08, the Company’s obligations under Section 7.07
hereof will continue for the benefit of the retiring Trustee.

     

    
      	
              Section
      7.09

            	
              Successor Trustee by Merger,
      etc.

            

    

     

    If the
Trustee consolidates, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation or banking
association, the transferee or resulting, surviving or successor corporation
without any further act will be the successor Trustee.

     

    
      	
              Section
      7.10

            	
              Eligibility;
      Disqualification.

            

    

     

    There
will at all times be a Trustee hereunder that is a corporation organized and
doing business under the laws of the United States of America or of any state
thereof that is authorized under such laws to exercise corporate trustee power,
that is subject to supervision or examination by federal or state authorities
and that has a combined capital and surplus of at least $100.0 million as set
forth in its most recent published annual report of condition.

     

    This
Indenture will always have a Trustee who satisfies the requirements of TIA
§ 310(a)(1), (2) and (5).  The Trustee is subject to TIA
§ 310(b).

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    
      	
              Section
      7.11

            	
              Preferential Collection of
      Claims Against Company.

            

    

     

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

     

    ARTICLE
8

    AMENDMENT,
SUPPLEMENT AND WAIVER

     

    
      	
              Section
      8.01

            	
              Without Consent of Holders of
      Notes.

            

    

     

    Notwithstanding
Section 8.02 of this Indenture, the Company and the Trustee may amend or
supplement this Indenture or the Notes without the consent of any Holder of the
Note to:

     

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

     

     (2)           to
provide for uncertificated Notes in addition to or in place of certificated
Notes;

     

     (3)           to
provide for the assumption of the Company’s obligations to the Holders by a
successor to the Company pursuant to Article 5 hereof;

     

     (4)           to
make any change that would provide any additional rights or benefits to the
Holders or that does not adversely affect the legal rights hereunder of any
Holder;

     

     (5)           to
comply with requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the TIA;

     

     (6)           to
conform the text of this Indenture or the Notes to any provision of the
“Description of the Notes” section of the Company’s Prospectus Supplement dated
July 19, 2010, relating to the initial offering of the Notes, to the extent that
such provision in that “Description of Notes” was intended to be a verbatim
recitation of a provision of this Indenture or the Notes;

     

     (7)           to
provide for the issuance of Additional Notes in accordance with the limitations
set forth in this Indenture as of the date hereof; or

     

    Upon the
request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and
upon receipt by the Trustee of the documents described in Section 7.02 hereof,
the Trustee will join with the Company in the execution of any amended or
supplemental indenture authorized or permitted by the terms of this Indenture
and to make any further appropriate agreements and stipulations that may be
therein contained, but the Trustee will not be obligated to enter into such
amended or supplemental indenture that affects its own rights, duties or
immunities under this Indenture or otherwise.

     

    
      	
              Section
      8.02

            	
              With Consent of Holders of
      Notes.

            

    

     

    Except as
provided below in this Section 8.02, the Company and the Trustee may amend or
supplement this Indenture and the Notes with the consent of the Holders of at
least a majority in aggregate principal amount of the then outstanding Notes
(including, without limitation, Additional Notes, if any) voting as a single
class (including, without limitation, consents obtained in connection with a
tender offer or exchange offer for, or purchase of, the Notes), and, subject to
Sections 6.05 and 6.08 hereof, any existing Default or Event of Default (other
than a Default or Event of Default in the payment of the principal of, premium,
if any, or interest on, the Notes) or compliance with any provision of this
Indenture or the Notes may be waived with the consent of the Holders of a
majority in aggregate principal amount of the then outstanding Notes (including,
without limitation, Additional Notes, if any) voting as a single class
(including, without limitation, consents obtained in connection with a tender
offer or exchange offer for, or purchase of, the Notes).  However,
without the consent of each Holder affected, an amendment, supplement or waiver
under this Section 8.02 may not (with respect to any Notes held by a
non-consenting Holder):

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    (1)           reduce,
or change the Stated Maturity of, the principal of any Note;

     

    (2)           reduce
the rate of or extend the time for payment of interest on any Note;

     

    (3)           change
the currency or place of payment of principal of or interest on the
Notes;

     

    (4)           modify
or change the related definitions affecting the subordination of the Notes or
any provision of this Indenture (including the covenants in this Indenture) in a
manner that adversely affects the Holders;

     

    (5)           reduce
the percentage of Holders necessary to consent to an amendment or waiver to this
Indenture or the Notes;

     

    (6)           impair
the rights of Holders to receive payments of principal of or interest on the
Notes; or

     

    (7)           make
any change in these amendment and waiver provisions.

     

    Upon the
request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and
upon the filing with the Trustee of evidence satisfactory to the Trustee of the
consent of the Holders as aforesaid, and upon receipt by the Trustee of the
documents described in Section 7.02 hereof, the Trustee will join with the
Company in the execution of such amended or supplemental indenture unless such
amended or supplemental indenture directly affects the Trustee’s own rights,
duties or immunities under this Indenture or otherwise, in which case the
Trustee may in its discretion, but will not be obligated to, enter into such
amended or supplemental Indenture.

     

    It is not
be necessary for the consent of the Holders under this Section 8.02 to approve
the particular form of any proposed amendment, supplement or waiver, but it is
sufficient if such consent approves the substance thereof.

     

    After an
amendment, supplement or waiver under this Section 8.02 becomes effective, the
Company will mail to the Holders affected thereby a notice briefly describing
the amendment, supplement or waiver.  Any failure of the Company to
mail such notice, or any defect therein, will not, however, in any way impair or
affect the validity of any such amended or supplemental indenture or
waiver.

     

    
      	
              Section
      8.03

            	
              Compliance with Trust
      Indenture Act.

            

    

     

    Every
amendment or supplement to this Indenture or the Notes will be set forth in a
amended or supplemental indenture that complies with the TIA as then in
effect.

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    
      	
              Section
      8.04

            	
              Revocation and Effect of
      Consents.

            

    

     

    Until an
amendment, supplement or waiver becomes effective, a consent to it by a Holder
of a Note is a continuing consent by the Holder of a Note and every subsequent
Holder of a Note or portion of a Note that evidences the same debt as the
consenting Holder’s Note, even if notation of the consent is not made on any
Note.  However, any such Holder of a Note or subsequent Holder of a
Note may revoke the consent as to its Note if the Trustee receives written
notice of revocation before the date the amendment, supplement or waiver becomes
effective.  An amendment, supplement or waiver becomes effective in
accordance with its terms and thereafter binds every Holder.

     

    
      	
              Section
      8.05

            	
              Notation on or Exchange of
      Notes.

            

    

     

    The
Trustee may place an appropriate notation about an amendment, supplement or
waiver on any Note thereafter authenticated.  The Company in exchange
for all Notes may issue and the Trustee shall, upon receipt of an Authentication
Order, authenticate new Notes that reflect the amendment, supplement or
waiver.

     

    Failure
to make the appropriate notation or issue a new Note will not affect the
validity and effect of such amendment, supplement or waiver.

     

    
      	
              Section
      8.06

            	
              Trustee to Sign Amendments,
      etc.

            

    

     

    The
Trustee will sign any amended or supplemental indenture authorized pursuant to
this Article 9 if the amendment or supplement does not adversely affect the
rights, duties, liabilities or immunities of the Trustee.  The Company
may not sign an amended or supplemental indenture until the Board of Directors
of the Company approves it.  In executing any amended or supplemental
indenture, the Trustee will be entitled to receive and (subject to Section 7.01
hereof) will be fully protected in relying upon, in addition to the documents
required by Section 11.04 hereof, an Officers’ Certificate and an Opinion of
Counsel each stating that the execution of such amended or supplemental
indenture is authorized or permitted by this Indenture.

     

    ARTICLE
9

    SUBORDINATION

     

    
      	
              Section
      9.01

            	
              Agreement to
      Subordinate.

            

    

     

    The
Company agrees, and each Holder by accepting a Note agrees, that the
Indebtedness evidenced by the Notes is subordinated in right of payment, to the
extent and in the manner provided in this Article 9, to the prior payment in
full in cash or cash equivalents of all obligations in respect of all Senior
External Liabilities (whether outstanding on the date hereof or hereafter
created, incurred, assumed or guaranteed), and that the subordination is for the
benefit of the holders of Senior External Liabilities.

     

    
      	
              Section
      9.02

            	
              Liquidation; Dissolution;
      Bankruptcy.

            

    

     

    Upon any
distribution to creditors of the Company in a liquidation or dissolution of the
Company or in an Intervention Measure relating to the Company or its property,
in an assignment for the benefit of creditors or any marshaling of the Company’s
assets and liabilities:

     

     (1)           holders
of Senior External Liabilities will be entitled to receive payment in full of
all Obligations due in respect of such Senior External Liabilities (including
interest after the commencement of any bankruptcy proceeding at the rate
specified in the applicable Senior External Liabilities) before the Holders will
be entitled to receive any payment with respect to the Notes;
and

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

     (2)           until
all Obligations with respect to Senior External Liabilities (as provided in
clause (1) above) are paid in full, any distribution to which Holders would be
entitled but for this Article 9 will be made to holders of Senior External
Liabilities, as their interests may appear.

     

    
      	
              Section
      9.03

            	
              Relative
      Rights.

            

    

     

    This
Article 9 defines the relative rights of Holders and holders of Senior External
Liabilities.  Nothing in this Indenture will:

     

     (1)           impair,
as between the Company and Holders, the obligation of the Company, which is
absolute and unconditional, to pay principal of, premium and interest on, the
Notes in accordance with their terms;

     

     (2)           affect
the relative rights of Holders and creditors of the Company other than their
rights in relation to holders of Senior External Liabilities; or

     

     (3)           prevent
the Trustee or any Holder from exercising its available remedies upon a Default
or Event of Default, subject to the rights of holders and owners of Senior
External Liabilities to receive distributions and payments otherwise payable to
Holders.

     

    If the
Company fails because of this Article 9 to pay principal of, premium or interest
on, a Note on the due date, the failure is still a Default or Event of
Default.

     

    
      	
              Section
      9.04

            	
              Subordination May Not Be
      Impaired by Company.

            

    

     

    No right
of any holder of Senior External Liabilities to enforce the subordination of the
Indebtedness evidenced by the Notes may be impaired by any act or failure to act
by the Company or any Holder or by the failure of the Company or any Holder to
comply with this Indenture.

     

    
      	
              Section
      9.05

            	
              Distribution or Notice to
      Representative.

            

    

     

    Whenever
a distribution is to be made or a notice given to holders of Senior External
Liabilities, the distribution may be made and the notice given to their
Representative.

     

    Upon any
payment or distribution of assets of the Company referred to in this Article 9,
the Trustee and the Holders will be entitled to rely upon any order or decree
made by any court of competent jurisdiction or upon any certificate of such
Representative or of the liquidating trustee or agent or other Person making any
distribution to the Trustee or to the Holders for the purpose of ascertaining
the Persons entitled to participate in such distribution, the holders of the
Senior External Liabilities and other Indebtedness of the Company, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Article 9.

     

    
      	
              Section
      9.06

            	
              Rights of Trustee and Paying
      Agent.

            

    

     

    Notwithstanding
the provisions of this Article 9 or any other provision of this Indenture, the
Trustee will not be charged with knowledge of the existence of any facts that
would prohibit the making of any payment or distribution by the Trustee, and the
Trustee and the Paying Agent may continue to make payments on the Notes, unless
the Trustee has received at its Corporate Trust Office at least five (5)
Business Days prior to the date of such payment written notice of facts that
would cause the payment of any Obligations with respect to the Notes to violate
this Article 9.  Only the Company or a Representative may give the
notice.  Nothing in this Article 9 will impair the claims of, or
payments to, the Trustee under or pursuant to Section 7.07
hereof.

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    The
Trustee in its individual or any other capacity may hold Senior External
Liabilities with the same rights it would have if it were not
Trustee.  Any Agent may do the same with like rights.

     

    
      	
              Section
      9.07

            	
              Authorization to Effect
      Subordination.

            

    

     

    Each
Holder, by the Holder’s acceptance thereof, authorizes and directs the Trustee
on such Holder’s behalf to take such action as may be necessary or appropriate
to effectuate the subordination as provided in this Article 9, and appoints the
Trustee to act as such Holder’s attorney-in-fact for any and all such
purposes.  If the Trustee does not file a proper proof of claim or
proof of debt in the form required in any proceeding referred to in Section 6.08
hereof at least 30 days before the expiration of the time to file such claim,
the Representatives are hereby authorized to file an appropriate claim for and
on behalf of the Holders.

     

    ARTICLE
10

    SATISFACTION
AND DISCHARGE

     

    
      	
              Section
      10.01

            	
              Satisfaction and
      Discharge.

            

    

     

    This
Indenture will be discharged and will cease to be of further effect (except as
to rights of registration of transfer or exchange of Notes which shall survive
until all Notes have been canceled) as to all Notes issued hereunder, when
either:

     

    (1)           all
Notes that have been authenticated and delivered, except lost, stolen or
destroyed Notes that have been replaced or paid and Notes for whose payment
money has theretofore been deposited in trust or segregated and held in trust by
the Company and thereafter repaid to the Company or discharged from the trust,
have been delivered to the Trustee for cancellation; or

     

    (2)           (a)           all
Notes that have not been delivered to the Trustee for cancellation have become
due and payable and the Company has irrevocably deposited or caused to be
deposited with the Trustee as trust funds in trust solely for the benefit of the
Holders, cash in U.S. dollars, non-callable Government Securities, or a
combination thereof, in such amounts as will be sufficient, without
consideration of any reinvestment of interest, to pay and discharge the entire
Indebtedness (including all principal and accrued interest) on the Notes not
delivered to the Trustee for cancellation,

     

    (b)           the
Company has paid or caused to be paid all sums payable by it under this
Indenture,

     

    (c)           the
Company has delivered irrevocable instructions to the Trustee under this
Indenture to apply the deposited money toward the payment of the Notes at
maturity, and

     

    (d)           the
Holders have a valid, perfected, exclusive security interest in this
trust.

     

    In
addition, the Company must deliver an Officers’ Certificate and an Opinion of
Counsel to the Trustee each stating that all conditions precedent to
satisfaction and discharge have been satisfied.

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

    Notwithstanding
the satisfaction and discharge of this Indenture, if money has been deposited
with the Trustee pursuant to subclause (a) of clause (2) of this Section 10.01,
the provisions of Sections 10.02 hereof will survive.  In addition,
nothing in this Section 10.01 will be deemed to discharge those provisions of
Section 7.07 hereof, that, by their terms, survive the satisfaction and
discharge of this Indenture.

     

    
      	
              Section
      10.02

            	
              Application of Trust
      Money.

            

    

     

    All money
deposited with the Trustee pursuant to Section 10.01 hereof shall be held in
trust and applied by it, in accordance with the provisions of the Notes and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium, if
any) and interest for whose payment such money has been deposited with the
Trustee; but such money need not be segregated from other funds except to the
extent required by law.

     

    If the
Trustee or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 10.01 hereof by reason of any legal proceeding or by
reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Company’s
obligations under this Indenture and the Notes shall be revived and reinstated
as though no deposit had occurred pursuant to Section 10.01 hereof; provided that if the Company
has made any payment of principal of, premium, if any, or interest on, any Notes
because of the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of such Notes to receive such payment from the
money or Government Securities held by the Trustee or Paying Agent.

     

    ARTICLE
11

    MISCELLANEOUS

     

    
      	
              Section
      11.01

            	
              Trust Indenture Act
      Controls.

            

    

     

    If any
provision of this Indenture limits, qualifies or conflicts with the duties
imposed by TIA §318(c), the imposed duties will control.  If any
provision of this Indenture modifies or excludes any provision of the TIA which
may be so modified or excluded, the latter provision shall be deemed to apply to
this Indenture as so modified or to be excluded, as the case may
be.

     

    
      	
              Section
      11.02

            	
              Notices.

            

    

     

    Any
notice or communication to the Company or the Trustee is duly given if in
writing and delivered in Person or by first class mail (registered or certified,
return receipt requested), facsimile transmission or overnight air courier
guaranteeing next day delivery, to the applicable address:

    

    Bancolombia
S.A.

    Carrera
48 No. 26-85, Avenida Los Industriales

    Medellín,
Colombia

    Facsimile
No.:  (57)-1-488-6308

    Attention:  Juan
Manuel Lopez Leon

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    

    If to the
Trustee:

     

    The Bank
of New York Mellon

    101
Barclay Street, 4E

    New York,
New York 10286

    Facsimile
No.:  (212) 815-5603

    Attention:  International
Corporate Trust

    

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

     

    All
notices and communications (other than those sent to Holders) will be deemed to
have been duly given:  at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt acknowledged, if transmitted by facsimile; and
the next Business Day after timely delivery to the courier, if sent by overnight
air courier guaranteeing next day delivery.

     

    Any
notice or communication to a Holder will be mailed by first class mail,
certified or registered, return receipt requested, or by overnight air courier
guaranteeing next day delivery to its address shown on the register kept by the
Registrar.  Any notice or communication will also be so mailed to any
Person described in TIA § 313(c), to the extent required by the
TIA.  Failure to mail a notice or communication to a Holder or any
defect in it will not affect its sufficiency with respect to other
Holders.

     

    If a
notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives
it.  Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice.  Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such waiver.

     

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

     

    
      	
              Section
      11.03

            	
              Communication by Holders of
      Notes with Other Holders of
Notes.

            

    

     

    Holders
may communicate pursuant to TIA § 312(b) with other Holders with respect to
their rights under this Indenture or the Notes.  The Company, the
Trustee, the Registrar and anyone else shall have the protection of TIA
§ 312(c).

     

    
      	
              Section
      11.04

            	
              Certificate and Opinion as to
      Conditions Precedent.

            

    

     

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

     

    (1)           an
Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee (which must include the statements set forth in Section 11.05 hereof)
stating that, in the opinion of the signers, all conditions precedent and
covenants, if any, provided for in this Indenture relating to the proposed
action have been satisfied; and

     

    (2)           an
Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
(which must include the statements set forth in Section 11.05 hereof) stating
that, in the opinion of such counsel, all such conditions precedent and
covenants have been satisfied;

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

    provided
that in the case of any such request or application as to which the furnishing
of documents is specifically required by any provision of this Indenture
relating to such particular request or application, no additional certificate or
opinion shall be required.

     

    
      	
              Section
      11.05

            	
              Statements Required in
      Certificate or Opinion.

            

    

     

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

     

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

     

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

     

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

     

    (4)           a
statement as to whether or not, in the opinion of such Person, such condition or
covenant has been satisfied.

     

    
      	
              Section
      11.06

            	
              Rules by Trustee and
      Agents.

            

    

     

    The
Trustee may make reasonable rules for action by or at a meeting of
Holders.  The Registrar or Paying Agent may make reasonable rules and
set reasonable requirements for its functions.

     

    
      	
              Section
      11.07

            	
              Currency Rate
      Indemnity.

            

    

     

    The
Company has agreed that, if a judgment or order made by any court for the
payment of any amount in respect of any Notes is expressed in a currency other
than U.S. dollars, the Company will indemnify the relevant Holder against any
deficiency arising from any variation in rates of exchange between the date as
of which the denomination currency is notionally converted into the judgment
currency for the purposes of the judgment or order and the date of actual
payment.  This indemnity will constitute a separate and independent
obligation from the Company’s other obligations under the Indenture, will give
rise to a separate and independent cause of action, will apply irrespective of
any indulgence granted from time to time and will continue in full force and
effect notwithstanding any judgment or order for a liquidated sum or sums in
respect of amounts due under the Indenture or the Notes.

     

    
      	
              Section
      11.08

            	
              No Personal Liability of
      Directors, Officers, Employees and
  Stockholders.

            

    

     

    No past,
present or future director, officer, employee, incorporator or stockholder of
the Company, as such, will have any liability for any obligations of the Company
under the Notes or this Indenture or for any claim based on, in respect of, or
by reason of, such obligations or their creation.  Each Holder of
Notes by accepting a Note waives and releases all such liability.  The
waiver and release are part of the consideration for issuance of the
Notes.  The waiver may not be effective to waive liabilities under the
federal securities laws.

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

    
      	
              Section
      11.09

            	
              Governing Law,
      Jurisdiction.

            

    

     

    THE LAW
OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE AND
THE NOTES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO
THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY; PROVIDED, HOWEVER, THAT THE
AUTHORIZATION AND EXECUTION OF THIS INDENTURE AND THE NOTES BY THE COMPANY WILL
BE GOVERNED BY THE LAWS OF COLOMBIA.

     

    The
Company hereby irrevocably submits to the non-exclusive jurisdiction of any New
York state or federal court sitting in The City of New York, and any appellate
court from any thereof, in any action or proceeding commenced by the Trustee or
any Bondholder arising out of or relating to this Indenture, and the Company
hereby irrevocably agrees that all claims in respect of such action or
proceeding may be heard and determined in such New York state or federal
court.

     

    To the
extent that the Company has or hereafter may acquire or have attributed to it
any immunity under any law from jurisdiction of any court or from any legal
process (whether through service or notice, attachment prior to judgment,
attachment in aid of execution, execution or otherwise) with respect to itself
or its property, the Company hereby irrevocably waives such immunity in respect
of its obligations under this Indenture.  To the extent that the
Company has or hereafter may have any immunity under the laws of the Company (i)
from jurisdiction of any court, (ii) from any legal process in the courts of the
Company (other than immunity from attachment prior to judgment and attachment in
aid of execution), or (iii) from any legal process in any court other than a
court of the Company, whether through service or notice, attachment prior to
judgment, attachment in aid of execution or otherwise, with respect to itself or
its property, the Company hereby irrevocably waives such immunity to the fullest
extent permitted by law in respect of its obligations under this Indenture and
the Bonds.  In addition, the Company irrevocably waives, to the
fullest extent permitted by law, any objection to any suit, action or
proceeding, that may be brought in connection with this Indenture or the Bonds,
including such actions, suits or proceedings relating to securities laws of the
United States of America or any state thereof, in such courts whether on the
grounds of venue, residence or domicile or on the grounds that any such action
or proceeding has been brought in an inconvenient forum. The Company hereby
irrevocably waives, to the fullest extent permitted by law, any requirement or
other provision of law, rule, regulation or practice which requires or otherwise
establishes as a condition to the institution, prosecution or completion of any
action or proceeding (including appeals) arising out of or relating to this
Indenture the posting of any bond or the furnishing, directly or indirectly, of
any other security.

     

    Each
party hereto hereby irrevocably waives, to the fullest extent permitted by
applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this agreement, the notes or the transactions
contemplated hereby.

     

    
      	
              Section
      11.10

            	
              Maintenance of Office or Agent
      for Service of Process

            

    

     

    The
Company shall maintain an office or agent for service of process in the Borough
of Manhattan, The City of New York, where notices to and demands upon the
Company in respect of the Notes and this Indenture may be
served.  Initially this agent will be CT Corporation System, and the
Company will agree not to change the designation of such agent without prior
notice to the Trustee and designation of a replacement agent in the Borough of
Manhattan, The City of New York.

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    
      	
              Section
      11.11

            	
              No Adverse Interpretation of
      Other Agreements.

            

    

     

    This
Indenture may not be used to interpret any other indenture, loan or debt
agreement of the Company or its Subsidiaries or of any other
Person.  Any such indenture, loan or debt agreement may not be used to
interpret this Indenture.

     

    
      	
              Section
      11.12

            	
              USA Patriot
      Act.

            

    

     

    The
parties hereto acknowledge that, in accordance with Section 326 of the USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (as
amended, modified or supplemented from time to time, the “USA Patriot Act”), the
Trustee, like all financial institutions, is required to obtain, verify, and
record information that identifies each person or legal entity that opens an
account.   To the extent permitted by Colombian or other
applicable law, the Company agrees that it will provide the Trustee with such
information as the Trustee may request in order for the Trustee to satisfy the
requirements of the USA Patriot Act.

     

    
      	
              Section
      11.13

            	
              Successors.

            

    

     

    All
agreements of the Company in this Indenture and the Notes will bind its
successors.  All agreements of the Trustee in this Indenture will bind
its successors.

     

    
      	
              Section
      11.14

            	
              Severability.

            

    

     

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

     

    
      	
              Section
      11.15

            	
              Counterpart
      Originals.

            

    

     

    The
parties may sign any number of copies of this Indenture.  Each signed
copy will be an original, but all of them together represent the same
agreement.  Delivery of an executed counterpart of a signature page of
this Indenture by facsimile shall be as effective as delivery of a manually
executed counterpart of this Indenture.

     

    
      	
              Section
      11.16

            	
              Table of Contents, Headings,
      etc.

            

    

     

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

     

    [Signatures
on following page]

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

    SIGNATURES

     

    Dated as
of July 26, 2010

     

    
      
        	 
      	
                BANCOLOMBIA
      S.A.

              
	 
      	 
      	 
      
	 
      	
                By: 

              	
                /s/ JAIME VELÁZQUEZ

              
	 
      	 
      	
                Name:
      Jaime Velázquez

              
	 
      	 
      	
                Title:
      Chief Financial Officer

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ SERGIO RESTREPO

              
	 
      	 
      	
                Name:
      Sergio Restrepo

              
	 
      	 
      	
                Title:
      Executive Vice President

              
	 
      	 
      	 
      
	 
      	
                THE
      BANK OF NEW YORK MELLON, as Trustee

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ WILLIAM POTES

              
	 
      	 
      	
                Name:
      William Potes

              
	 
      	 
      	
                Title:
      Vice President

              

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

      

    EXHIBIT
A
  

    
      [Face of
Note] 

      
        

      

    

     

    CUSIP/CINS
05968LAB8

     

    6.125%
Subordinated Notes due 2020

     

    
      	
              No.
      1

            	
              $620,000,000

            

    

    

    BANCOLOMBIA
S.A.

     

    promises
to pay to Cede & Co. or registered assigns,

     

    the
principal sum of SIX HUNDRED TWENTY MILLION DOLLARS on July 26,
2020.

     

    Interest
Payment Dates: January 26 and July 26

     

    Record
Dates:  January 15 and July 15

     

    Dated:  July
26, 2010

     

    
      
        	 
      	
                BANCOLOMBIA
      S.A.

              
	 
      	 
      	 
      
	 
      	
                By:   

              	
                  

              
	 
      	 
      	
                Name:

              
	 
      	 
      	
                Title:

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                  

              
	 
      	 
      	
                Name:

              
	 
      	 
      	
                Title:

              

      

    

     

    This is
one of the Notes referred to

    in the
within-mentioned Indenture:

     

    THE BANK
OF NEW YORK MELLON,

      as
Trustee

     

    
      
        	
                By: 

              	
                  

              
	 
      	
                Authorized
      Signatory

              

      

    

     

      
        

        
          
             

          

          
            A-1

            
              

            

          

          
             

          

        

      

    

    

    [Back of
Note]

    6.125%
Subordinated Notes due 2020

     

    [Insert
the Global Note Legend pursuant to the provisions of the Indenture]

     

    Capitalized
terms used herein have the meanings assigned to them in the Indenture referred
to below unless otherwise indicated.

     

    (1)           Interest.  Bancolombia,
a Colombian financial institution (the “Company”), promises to pay
interest on the principal amount of this Note at 6.125% per annum from July 26,
2011 until maturity.  The Company will pay interest semi-annually in
arrears on January 26 and July 26 of each year, or if any such day is not a
Business Day, on the next succeeding Business Day (each, an “Interest Payment
Date”).  Interest on the Notes will accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from the
date of issuance; provided that if there is no
existing Default in the payment of interest, and if this Note is authenticated
between a record date referred to on the face hereof and the next succeeding
Interest Payment Date, interest shall accrue from such next succeeding Interest
Payment Date; provided
further that the first Interest Payment Date shall be January 26,
2011.  The Company will pay interest (including post-petition interest
in any proceeding under any Bankruptcy Law) on overdue principal and premium, if
any, from time to time on demand at a rate that is 1% per annum in excess of the
rate then in effect to the extent lawful; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest (without regard to any applicable grace periods) from
time to time on demand at the same rate to the extent
lawful.  Interest will be computed on the basis of a 360-day year of
twelve 30-day months.

     

    (2)           Method of
Payment.  If a Holder has given wire transfer instructions to
the Bank, copying the Trustee, at least ten Business Days prior to the
applicable payment date, the Trustee will make all payments on such Holder’s
Notes by wire transfer of immediately available funds to the account specified
in those instructions.  Otherwise, payments on the Notes will be made
at the office or agency of the Paying Agent and Registrar for the
Notes within the City and State of New York unless the Bank elects to make
interest payments by check mailed to the Holders at their addresses set forth in
the register of Holders.

     

    (3)           Paying
Agent and Registrar.  Initially, The Bank of New York Mellon,
the Trustee under the Indenture, will act as Paying Agent and
Registrar.  The Company may change any Paying Agent or Registrar
without notice to any Holder.  The Company or any of its Subsidiaries
may act in any such capacity.

     

    (4)           Indenture.  The
Company issued the Notes under an Indenture dated as of July 26, 2010 (the
“Indenture”) between
the Company and the Trustee.  The terms of the Notes include those
stated in the Indenture and those made part of the Indenture by reference to the
TIA.  The Notes are subject to all such terms, and Holders are
referred to the Indenture and such Act for a statement of such
terms.  To the extent any provision of this Note conflicts with the
express provisions of the Indenture, the provisions of the Indenture shall
govern and be controlling.  The Notes are unsecured obligations of the
Company.  The Indenture does not limit the aggregate principal amount
of Notes that may be issued thereunder.

    
      
         

      

      
        A-2

        
          

        

      

      
         

      

    

    (5)           Optional
Redemption.

     

    The Notes may not be redeemed prior to
the Stated Maturity.

     

    (6)           Mandatory
Redemption.

     

    The
Company is not be required to make mandatory redemption or sinking fund payments
with respect to the Notes.

     

    (7)           Denominations,
Transfer, Exchange.  The Notes are in registered form without
coupons in minimum denominations of $2,000 and integral multiples of
$1,000.  The transfer of Notes may be registered and Notes may be
exchanged as provided in the Indenture.  The Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents and the Company may require a Holder to pay any taxes and
fees required by law or permitted by the Indenture.

     

    (8)           Persons
Deemed Owners.  The registered Holder of a Note may be treated
as its owner for all purposes.

     

    (9)           Amendment,
Supplement and Waiver.  Subject to certain exceptions, the
Indenture or the Notes may be amended or supplemented with the consent of the
Holders of at least a majority in aggregate principal amount of the then
outstanding Notes including Additional Notes, if any, voting as a single class,
and any existing Default or Event or Default or compliance with any provision of
the Indenture or the Notes may be waived with the consent of the Holders of a
majority in aggregate principal amount of the then outstanding Notes including
Additional Notes, if any, voting as a single class.  Without the
consent of any Holder of a Note, the Indenture or the Notes may be amended or
supplemented to cure any ambiguity, defect or inconsistency, to provide for
uncertificated Notes in addition to or in place of certificated Notes, to
provide for the assumption of the Company’s obligations to Holders in case of a
merger or consolidation, to make any change that would provide any additional
rights or benefits to the Holders or that does not adversely affect the legal
rights under the Indenture of any such Holder, to comply with the requirements
of the SEC in order to effect or maintain the qualification of the Indenture
under the TIA, to conform the text of the Indenture or the Notes to any
provision of the “Description of Notes” section of the Company’s Prospectus
Supplement dated July 19, 2010, relating to the initial offering of the Notes,
to the extent that such provision in that “Description of the Notes” was
intended to be a verbatim recitation of a provision of the Indenture or the
Notes; to provide for the issuance of Additional Notes in accordance with the
limitations set forth in the Indenture.

     

    (10)         Defaults
and Remedies.  Events of Default include: (i) failure by the
Company to pay interest on any of the Notes when it becomes due and payable and
the continuance of any such failure for 30 days; (ii) failure by the Company to
pay the principal on any of the Notes when it becomes due and payable, whether
at Stated Maturity or otherwise and the continuance of any such failure for
seven days; (iii) the Company pursuant to or within the meaning of any
Bankruptcy Law (A) commences a voluntary case, (B) consents to the entry of an
order for relief against it in an involuntary case, (C) consents to the
appointment of a Custodian of it or for all or substantially all of its assets,
(D) makes a general assignment for the benefit of its creditors or (E) a
governmental intervention is declared with respect to the Company; or (iv) a
court of competent jurisdiction or relevant entity enters an order or decree
under any Bankruptcy Law that (A) is for relief against the Company as debtor in
an involuntary case, (B) appoints a Custodian of the Company or a Custodian for
all or substantially all of the assets of the Company, or (C) orders the
liquidation of the Company, and the order or decree remains unstayed and in
effect for 60 days.  If the Company fails to make payment of principal
of or interest or Additional Amounts, if any, on the Notes (and, in the case of
payment of principal, such failure to pay continues for seven (7) days or, in
the case of payment of interest or Additional Amounts, such failure to pay
continues for thirty (30) days), each Holder has the right to demand and collect
under the Indenture and the Company will pay to the Holders the applicable
amount of such due and payable principal, accrued interest and Additional
Amounts, if any, on the Notes.   There is no right of acceleration in
the case of a default in any payment on the Notes (whether when due or
otherwise) or the performance of any of the Company’s other obligations under
the Indenture or the Notes.  Notwithstanding the immediately
preceding sentence, the Holders shall have the right to accelerate the payments
due under the Notes during the occurrence of an Event of a Default; provided that there shall
have been a change, amendment or modification to the Colombian banking laws that
would permit such right without disqualifying the Notes from Tier Two Capital
status and the Holders exercise such right in accordance with applicable
Colombian banking law.  If any Event of Default occurs and is
continuing, the Trustee may pursue any available remedy (excluding acceleration,
except as provided herein) to collect the payment of principal and interest on
the Notes or to enforce the performance of any provision under the
Indenture.

    
      
         

      

      
        A-3

        
          

        

      

      
         

      

    

    (11)         Subordination.  Payment of
principal, interest and premium, if any, on the Notes is subordinated to the
prior payment of Senior External Liabilities on the terms provided in the
Indenture.

     

    (12)         Trustee
Dealings with Company.  The Trustee, in its individual or any
other capacity, may make loans to, accept deposits from, and perform services
for the Company or its Affiliates, and may otherwise deal with the Company or
its Affiliates, as if it were not the Trustee.

     

    (13)         No
Recourse Against Others.  A director, officer, employee,
incorporator or stockholder of the Company, as such, will not have any liability
for any obligations of the Company under the Notes or the Indenture or for any
claim based on, in respect of, or by reason of, such obligations or their
creation.  Each Holder by accepting a Note waives and releases all
such liability.  The waiver and release are part of the consideration
for the issuance of the Notes.

     

    (14)         Authentication.  This
Note will not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent.

     

    (15)         Abbreviations.  Customary
abbreviations may be used in the name of a Holder or an assignee, such
as:  TEN COM (= tenants in common), TEN ENT (= tenants by the
entireties), JT TEN (= joint tenants with right of survivorship and not as
tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors
Act).

     

    (16)         CUSIP
Numbers.  Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes.  No representation is made
as to the accuracy of such numbers as printed on the Notes and reliance may be
placed only on the other identification numbers placed thereon.

     

    (17)         GOVERNING LAW.  THE
LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE
AND THE NOTES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW
TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY; PROVIDED, HOWEVER, THAT THE
AUTHORIZATION AND EXECUTION OF THIS INDENTURE AND THE NOTES BY THE COMPANY WILL
BE GOVERNED BY THE LAWS OF COLOMBIA.

    
      
         

      

      
        A-4

        
          

        

      

      
         

      

    

    The
Company will furnish to any Holder upon written request and without charge a
copy of the Indenture and/or the Registration Rights
Agreement.  Requests may be made to:

     

    Bancolombia
S.A.

    Carrera
48 No. 26-85, Avenida Los Industriales

    Medellín,
Colombia

    

    Attention:  Juan
Manuel Lopez Leon

    
      
         

      

      
        A-5

        
          

        

      

      
         

      

    

    Assignment
Form

     

    To assign
this Note, fill in the form below:

     

    
      
        	
                (I) or (we) assign and transfer this Note to: 

              	
                  

              
	 
      	
                (Insert
      assignee’s legal name)

              

      

    

     

    
      	
                

            
	
              (Insert
      assignee’s soc. sec. or tax I.D. no.)

            
	 
      
	
                

            
	
                

            
	
                

            
	
                

            
	
              (Print
      or type assignee’s name, address and zip
code)

            

    

     

    
      
        	
                and irrevocably appoint 

              	
                  

              

      

    

    to
transfer this Note on the books of the Company.  The agent may
substitute another to act for him.

     

    
      
        	
                Date: 

              	
                    

              

      
  

    
      
        	
                Your Signature: 

              	
                  

              
	
                (Sign
      exactly as your name appears on the face of this
  Note)

              

      

    

    

    
      
        	
                Signature Guarantee*: 

              	
                  

              

      

    

    

    *           Participant
in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

    
      
         

      

      
        A-6

        
          

        

      

      
         

      

    

     

    
      
        	
                Date: 

              	
                  

              

      

    

    

    
      
        
          
            	
                    Your Signature: 

                  	
                      

                  
	
                    (Sign
      exactly as your name appears on the face of this
  Note)

                  

          

           

          
            	
                    Tax Identification No.: 

                  	
                      

                  

          

        

      

    

    

    
      
        	
                Signature Guarantee*: 

              	
                  

              

      

    

    

    *           Participant
in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

    
      
         

      

      
        A-7

        
          

        

      

      
         

      

    

    Schedule
of Exchanges of Interests in the Global Note *

     

    The
following exchanges of a part of this Global Note for an interest in another
Global Note or for a Definitive Note, or exchanges of a part of another Global
Note or Definitive Note for an interest in this Global Note, have been
made:

    

    
      
        	
                Date of Exchange

              	 
      	
                Amount of decrease in

                Principal Amount of 

                this Global Note

              	 
      	
                Amount of increase in
Principal Amount of 

                this Global Note

              	 
      	
                Principal Amount of

                this Global Note

                following such

                decrease 

                (or increase)

              	 
      	
                Signature of authorized

                officer of Trustee or

                Custodian

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

      

    

    

    
      	
              *

            	
              This schedule should be
      included only if the Note is issued in global
  form.

            

    

    
      
         

      

      
        A-8Unassociated Document

    Exhibit
10.1

    

    EXECUTIVE
EMPLOYMENT AGREEMENT

    

    

    This
Executive Employment Agreement is entered into as of January 1, 2010 (the “Effective Date”) by and
between Vu1 Corporation, a California corporation (the “Company”), and R. Gale Sellers
(“Executive”).

    

    1. Employment.  The
Company hereby employs Executive and Executive hereby accepts employment by the
Company as its Chief Executive Officer.  The Executive shall perform
such executive and managerial duties and responsibilities customary to his
office and as are reasonably necessary to the operations of the Company and as
may be assigned to him from time to time by or under authority of the Board of
Directors of the Company (the “Board”).  Executive
shall report to the Board.

    

    As a
condition to the effectiveness of this Agreement, concurrently with this
Agreement, Executive shall execute and deliver the Company Nondisclosure,
Invention Assignment, Noncompetition and Nonsolicitation Agreement in the form
attached hereto as Exhibit A, which is
part of this Agreement.

    

    2. Term.  Unless
earlier terminated by either party, the term of this Agreement shall be for the
calendar year 2010.

    

    3. Compensation.  During
the term of this Agreement, the Company shall pay or cause to be paid to
Executive, and Executive shall accept in exchange for the services rendered
hereunder by him, the following compensation:

    

    (a) Base
Salary.  Executive’s compensation shall consist of, in part, an
annual base salary (the “Base
Salary”) of $240,000 before all customary payroll
deductions.  The Base Salary shall be paid to Executive in
substantially equal installments and at the same intervals as other executives
of the Company are paid, at a minimum of one payment per calendar month. At the
option of the Board, the compensation may be converted to stock or stock options
at the current stock price on the day the agreement is signed by the Executive.
The option grants described above shall have a life of 10 years from January 1,
2010 and be issued from the 2007 Stock Compensation Plan with the exercise price
equal to the closing market price of the common stock on the date this agreement
is signed.

    

    (b) Stock Option
Compensation.  Executive shall be granted an option to purchase
1,000,000 shares of common stock which vests  immediately at 500,000
initial options upon signing the agreement, and then in equal monthly amounts
through 2010.  The option grants described above shall have a life of
10 years from January 1, 2010 and be issued from the 2007 Stock Compensation
Plan with the exercise price equal to the closing market price of the common
stock on the date this agreement is signed.

     

    
      
         

      

      
        - 1
-

        
          

        

      

      
         

      

    

    
 

    (c) Performance Incentive Compensation.
Executive shall be entitled to compensation based on a performance bonus
for achieving major milestones of growth, manufacturing, revenue and performance
of the company. These goals shall be determined by the board of directors as
part of the agreed upon strategic plan and budget goals and could include such
items as: 1) raising adequate capital levels on terms acceptable to the board
and in the best interest of shareholders; 2) achieving technology milestones
that allow completion of ESL technology for 3rd party
testing and certification, and manufacturing bulbs for sale; and 3) achieving
revenue targets for the company into defined distribution channels in the U.S.
and internationally. Executives’ performance incentive compensation shall be
decided and awarded no later than December 31 of 2010, or within one month after
termination of agreement by either party.

    

    (d) The board at its sole
discretion may award Executive a cash performance bonus up to half the base
compensation which executive may elect to convert to a grant of common stock at
closing stock price on day cash bonus is offered.

    

    4. Benefits.

    

    (a) Health
Benefits.  During the term of this Agreement, and pending the
Company’s ability to begin a health insurance plan, the Company shall provide
Executive with the family coverage health insurance provided to other senior
executives and Executive will be entitled to participate, subject to and in
accordance with applicable eligibility requirements, in fringe benefit programs
as shall be provided from time to time by, to the extent required, action of the
Board (or any person or committee appointed by the Board to determine fringe
benefit programs).

    

    (b) Business
Expenses.  Executive shall be reimbursed for all reasonable
business expenses according to the Company’s standard practices for expense
reimbursement.  The Executive, as a condition precedent to obtaining
such payment or reimbursement, shall provide to the Company any and all
statements, bills or receipts evidencing the travel or out-of-pocket expenses
for which the Executive seeks payment or reimbursement, and any other
information or materials, as the Company may from time to time reasonably
request.

    

    (c) Vacation.  During
the term of this Agreement, Executive shall be entitled to 20 days paid
vacation. Executive agrees that no more than 10 days vacation will be used
consecutively without prior consent of the Company. Unused vacation time may be
accrued during the term of this Agreement, but in no event shall Executive
accrue and carry over more than 10 days of paid vacation.  Any unused
vacation time above the amount that may be carried over shall be paid in
cash.

    

    5.
Payments and Benefits Upon Termination.

    

    (a) Voluntary Resignation by Employee or
Termination for Cause by the Company.  Following termination of
Executive’s employment by Executive or by the Company for Cause (as defined
below), Company shall pay Executive salary due and owing as of the Executive’s
last day of Employment, plus any accrued but unused vacation, less standard
deductions, and shall reimburse Executive for any outstanding
expenses.  If Executive voluntarily resigns, dies, is Disabled or is
terminated by the Company for Cause, then Executive will not be entitled to any
compensation provided by Section 6(b).

     

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

     

    (b) Termination Without Cause or
Following a Change of Control.  Upon termination of Executive’s
employment by the Company (i) for any reason other than Cause (as defined
below) or (ii) on or within 180 days after a Change of Control by the
Company of Executive, and in each case provided that the Executive signs a
release of all claims or potential claims against the Company, the Company shall
pay Executive six months of Executive’s annual Base Salary in effect immediately
prior to the date of Executive’s termination (the “Cash Severance”), payable in
lump sum or, provided appropriate escrow or means of guaranteeing availability
of funds, on the Company’s regularly scheduled pay day(s).  All
payments under this Section 6 are subject to applicable federal and state
payroll withholding or other applicable taxes.  In addition, any and
all stock options in Section 3 or granted subsequent to this Employment
Agreement  that are not vested as of the date of termination shall
vest immediately and become exercisable effective with the date of
termination.

    

    (c) “Cause”
Definition.  For purposes of this Agreement, “Cause” means, in the Company’s
sole determination using reasonable standards, the occurrence of any of the
following:  (i) the Executive's refusal to perform, or
Executive’s gross misconduct or negligence in the performance of, his duties and
responsibilities as Chief Executive Officer, or the breach by Executive of any
provision of this Agreement, but in each case, any occurrence of “Cause” under
this subsection 6.(c)(i) will exist only if Executive has received first written
notice of the alleged misconduct, negligence, or breach and has not performed
the duties or responsibilities or cured the alleged breach within the 30-day
period following Executive’s receipt of the notice; (ii) violation by
Executive of a state or federal law, rule or regulation involving the commission
of a crime against the Company (including violation of any statutory or common
law duty of loyalty to the Company) or that is potentially materially injurious
to the Company, or any felony or any crime involving moral turpitude, dishonesty
or theft; (iii) any act of misconduct, theft, misappropriation of Company
property, moral turpitude, fraud, intentional misrepresentation, bad faith or
dishonesty by Executive; (iv) any act by Executive that substantially
materially injures or could reasonably be expected to substantially materially
injure the business or business relationships of the Company; or
(vi) Executive’s inability to perform his duties because of sickness or
injury for more than 30 consecutive days.

    

    (d) “Change of Control”
Definition.  For purposes of this Agreement, “Change of Control” shall mean
the occurrence of any of the following events:  (i) the
consummation of the sale or disposition by the Company of all or substantially
all the Company’s assets in one or a series of related transactions; or
(ii) the consummation of a merger or consolidation of the Company or share
exchange involving any other corporation, other than (A) a merger,
consolidation or share exchange which would result in the voting securities of
the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of
the surviving entity) at least fifty percent (50%) of the total voting power
represented by the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation, or (B) a merger
effected solely for purposes of changing the domicile of the
Company.

     

    
      
         

      

      
        - 3
-

        
          

        

      

      
         

      

    

    
 

    4. Indemnification. Company will
indemnify, to the fullest extent permissible by applicable law as then in
effect, and defend Executive against charges or claims brought against company
or Executive in normal course of duties with Vu1 Corporation, provided that
Executive gives written notice to the Company promptly after Executive has
actual knowledge of any proceeding as to which indemnification may be sought
under this Agreement.  In no event shall the Company indemnify
Executive:  (a) from or on account of any act or omission of
Executive adjudged to be intentional misconduct or a knowing violation of law;
(b) from or on account of any act or omission of Executive as to which
Executive did not (x) act in good faith and (y) in a manner Executive
reasonably believed (i) in the case of conduct in Executive’s official
capacity with the Company, to be in the best interests of the Company, and
(ii) in all other cases, at least not opposed to the best interests of the
Company, and with respect to any criminal proceeding, Executive had no
reasonable cause to believe Executive’s conduct was unlawful, which
determination shall be made in accordance with RCW 23B.08.550 or by a court
of competent jurisdiction; (c) from or on account of any conduct of
Executive adjudged to be in violation of RCW 23B.08.310 (as may hereafter be
amended or supplemented); (d) from or on account of any transaction with
respect to which it is adjudged that Executive personally received a benefit in
money, property, or services, to which Executive was not legally entitled;
(e) in connection with any proceeding initiated by Executive against the
Company or any director or officer of the Company unless the Company has joined
in, or the Board of Directors has consented to, the initiation of such
proceeding, or the proceeding is one to enforce indemnification rights under
this Agreement or any applicable law; or (f) to the extent Executive
settles or otherwise disposes of a proceeding, or causes the settlement or
disposal of a proceeding, without the Company’s express prior written consent
(which consent shall not be unreasonably withheld), unless Executive receives
court approval for such settlement or other disposition where the Company had
the opportunity to oppose Executive’s request for such court
approval.

    

    6. Governing Law;
Venue.  This Agreement shall be governed by and construed in
accordance with the laws of the state of Washington applicable to contracts made
and to be performed there without giving effect to the principles of conflicts
of law.  The parties hereby consent and agree that the federal or
state courts of the State of Washington (located in Seattle, Washington) will
have jurisdiction to hear, determine, and enforce any claims or disputes arising
out of or related to the provisions of this Agreement.

    

    7. Arbitration and/or Attorneys’
Fees. Any
controversy or claim arising from, out of or relating to this Agreement, or the
breach hereof (other than controversies or claims arising from, out of or
relating to the provisions in Exhibit A), shall be determined by final and
binding arbitration in Seattle, Washington, in accordance with the Employment
Dispute Resolution Rules of the American Arbitration Association, by a panel of
not less than three (3) arbitrators appointed by the American Arbitration
Association. The decision of the arbitrators may be entered and enforced in any
court of competent jurisdiction be either the Company or the
Executive.

     

    The
Parties indicate their acceptance of the foregoing arbitration requirement by
initialing below.

    
    

     

    
      	 	/s/
      Mark Weber   	/s/
      R. Gale Sellers	 
	 	For the
      Company 	For the
      Executive	 

    

     

    
      
         

      

      
        - 4
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    The
substantially prevailing party in any arbitration litigation or similar
proceeding shall be entitled to recover from the other party all costs and
expenses, including reasonable attorneys’ fees and disbursements, in connection
with such litigation, arbitration or similar proceeding.

    

    8. Amendments; Waiver;
Cure.  No amendment, waiver or modification in whole or in part
of this Agreement, or any term or condition of this Agreement, shall be
effective unless in writing and duly signed by the party sought to be
bound.  Any waiver of any breach of any provision hereof or any right
or power by any party on one occasion shall not be construed as a waiver of, or
a bar to, the exercise of such right or power on any other occasion or as a
waiver of any subsequent breach.

    

    9. Binding Effect;
Successors.  This Agreement shall be binding upon, inure to the
benefit of and be enforceable by the Company and Executive and their respective
heirs, legal representatives, successors and assigns.

    

    EXECUTED
by the parties on date above:

     

    EXECUTIVE:

     

    
      
        
          
            
              	 	 	 
	 	 	 	 
	
                    	/s/ R.
      Gale Sellers	 
	 	R.
      Gale Sellers	 
	 	 	 	 
	 	 	 	 

            

          

        

      

    

     

    COMPANY:

     

    
      
        	 	VU1
CORPORATION	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Mark
      Weber	 
	 	Name: 	Mark
      Weber	 
	 	Title:  	Director	 
	 	 	 	 

      

    
      
         

      

      
        - 5
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    Exhibit
A

    

    Form
of Executive Nondisclosure, Nonsolicitation And

    Invention
Assignment Agreement

    

    

    This
Executive Nondisclosure, Nonsolicitation and Invention Assignment Agreement
Nondisclosure and Invention Assignment Agreement (“Agreement”) is entered into by
and between the individual referenced on the signature page (“Executive”) and Vu1
Corporation, a California corporation (the “Company”).

    

    The
parties agree as follows:

    

    1. Confidentiality.  Executive
recognizes that during the course of employment with the Company, Executive will
have access to certain Confidential Information (as defined below) relating to
the business of the Company.  Executive agrees that all Confidential
Information shall remain the exclusive property of the Company.

    

    At all
times during or following Executive’s employment with the Company, Executive
agrees not to disclose to anyone outside the Company, nor to use for any purpose
other than Executive’s work for the Company, (i) any Confidential Information or
(ii) any information the Company has received from others which Executive knows
the Company is obligated to treat as confidential or proprietary.

    

    2. Definition of Confidential
Information.  “Confidential Information”
means any information or material in which the Company has rights, whether or
not owned or developed by the Company, which is not generally known other than
by the Company, and which Executive may obtain knowledge of through or as a
result of the employment relationship established with the Company.

    

    Without
limiting the foregoing, Confidential Information includes:  (a) any
and all information in which the Company has rights relating to the invention,
design and development of the Company’s products and any other proprietary
technical information of the Company that is not generally known other than by
the Company; and (b) any and all business plans, marketing techniques and plans,
financial materials, cost data, customer lists, vendor lists, pricing policies
and other proprietary business information of the Company that is not generally
known other than by the Company.

    

    Confidential
Information will not include information that (i) Executive lawfully obtains
from any third party who has lawfully obtained such information; (ii) is
generally available to the public or is later published or generally disclosed
to the public by the Company; or (iii) was already known to or in possession of
Executive prior to disclosure by the Company.

    

    3. Inventions, Copyrights and
Patents.  The Company owns all Inventions and Works (as defined
below) that Executive makes, conceives, develops, discovers, reduces to practice
or fixes in a tangible medium of expression, alone or with others, either (a)
during the term of Executive’s employment by the Company (whether or not during
working hours), or (b) within 12 months after Executive’s employment ends if the
Invention or Work is derived from or relates to any work Executive performed for
the Company or involves the use or assistance of the Company’s facilities,
materials, personnel or Confidential Information.  The Company also
owns all Inventions and Works that Executive brings to the Company that are used
in the course of the Company’s business or that are incorporated into any
Inventions or Works that belong to the Company.

     

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

    
 

    Executive
will promptly disclose to the Company, hold in trust for the Company’s sole
benefit, and assign to the Company and hereby assigns exclusively to the Company
all Executive’s right, title, and interest in and to any and all Inventions and
Works.  Executive hereby waives any and all claims of any nature
whatsoever that Executive now or hereafter may have for infringement of any
patent resulting from any patent applications for any
Inventions.  Executive agrees that all Works shall be considered
“works made for hire” so that the Company will be considered the author of the
Works under the federal copyright laws.  At the Company’s direction
and expense Executive will execute all documents and take all actions necessary
or convenient for the Company to give effect to the assignment to, and vesting
of ownership in, the Company of all Inventions and Works.  The Company
shall have full control over all applications for patents or other legal
protection of Inventions and Works.

    

    “Inventions” means discoveries,
developments, concepts, ideas, improvements to existing technology, processes,
procedures, machines, products, compositions of matter, formulae, algorithms,
software, computer programs and techniques, and all other matters ordinarily
intended by the word “invention,” whether or not patentable or copyrightable,
including all copyrights (including renewal rights), patent rights and trade
secret rights, vested and contingent.  “Inventions” also includes all
records and expressions of those matters.  “Works” means original works of
authorship, including interim work product, modifications and derivative works,
and all similar matter, whether or not copyrightable.

    

    Except as
expressly provided herein, “Inventions” or “Works” shall not include inventions
or works for which no equipment, supplies, facilities or trade secret
information of the Company was used and which were developed entirely on
Executive’s own time, unless (a) the invention or work relates directly to the
Company’s actual or demonstrably anticipated business, or (b) the invention or
work derives from or relates to any work Executive performed for the
Company.

    

    4. Reverse
Engineering.  Executive agrees that Executive will not engage,
nor cause any other person, firm, corporation or other entity to engage, in the
reproduction of Confidential Information, Inventions or Works through the
techniques of “reverse engineering” as described in Title 17, United States
Code, Section 906, as such statute may be amended from time to
time.

    

    5. Return of
Materials.  At the time Executive leaves the employ of the
Company, or sooner at the request of the Company, Executive shall return all
papers, drawings, notes, memoranda, manuals, specifications, designs, devices,
documents, diskettes, tapes, prototypes and products, and any other material on
any media containing or disclosing any confidential or proprietary technical or
business information, except for any documents or other materials received as a
shareholder of the Company, this Agreement, the Executive Employment Agreement
and any other Company documents describing or setting forth Executive’s rights
to compensation or benefits from the Company.  Executive shall also
return any keys, pass cards, identification cards, or other property belonging
to the Company.

     

    
      
         

      

      
        A-2

        
          

        

      

      
         

      

    

     

    6. Non Competition with the
Company.  While employed by the Company and for 12 months after
employment ends, regardless of the reason it ends, Executive shall not do work
that competes with or relates to any of the Company’s products or activities
without first obtaining the Company’s written permission.  Any
business opportunities related to the Company’s business that Executive learns
of or obtains while employed by the Company (whether or not during working
hours) belong to the Company, and Executive shall pursue them only for the
Company’s benefit.

    

    7. Disclosure of New
Work.  Before Executive undertakes any work for any other party
during employment by the Company or within 12 months after employment ends that
will involve subject matter related to the Company’s activities, Executive shall
fully disclose the proposed work to the Company.

    

    8. Nonsolicitation.  So
long as Executive is employed by the Company and for 12 months after employment
ends, regardless of the reason it ends, Executive shall not directly or
indirectly (a) solicit any employee or executive to leave his or her employment
with the Company or (b) solicit business from clients, customers or account
holders of the Company that is substantially similar to the business then
conducted by the Company.  For purposes of the foregoing, Executive
shall not do any of the following:  (i) disclose to any third
party the names, backgrounds or qualifications of any Company employees or
executives or otherwise identify them as potential candidates for employment;
(ii) personally or through any other person, approach, recruit or otherwise
solicit employees or executives of the Company to work for any other employer;
(iii) participate in any pre-employment interviews with any person who was
employed by the Company during the term of this Agreement; (iv) disclose to
any third party the names, background or any information about any Company
clients, customers or account holders, or otherwise identify them as potential
sources of business; (v) personally or through any other person, approach
or otherwise solicit clients, customers or account holders of the Company as
potential sources of business.  The term “solicit” or “solicitation”
or the like does not include general advertisements or other solicitations to
the general public.

    

    9. No Conflicting
Agreements.  Except for obligations to former employers,
Executive is not a party to any agreements, such as confidentiality agreements,
or assignment of invention agreements, with any other party except for those
disclosed to the Company in writing prior to the execution of this
Agreement.  No agreement with a former employer prohibits Executive
from being employed by the Company.

    

    10. Trade
Secrets.  Executive acknowledges that disclosure or use of a
trade secret without express or implied consent violates the Uniform Trade
Secrets Act. RCW 19.108.010. Executive acknowledges that the Company is not
seeking to obtain such trade secrets and agrees not to improperly disclose trade
secrets to the Company.

    

    11. Injunctive
Relief.  Executive acknowledges that any violation of this
Agreement by Executive will cause irreparable injury to the Company and the
Company shall be entitled to extraordinary relief in court, including, but not
limited to, temporary restraining orders, preliminary injunctions, and permanent
injunctions, without the necessity of posting bond or security. Executive consents to
the Company notifying anyone to whom Executive may provide services of the
existence and terms of this Agreement.

     

    
      
         

      

      
        A-3

        
          

        

      

      
         

      

    

     

    13. Severability.  To
the extent that any provision of this Agreement shall be determined to be
invalid or unenforceable, such provision shall be deleted from this Agreement,
and the validity and enforceability of the remainder of this Agreement shall be
unaffected.  In furtherance of, and not in limitation of, the
foregoing, it is expressly agreed that, should the duration or geographical
extent of, or the business activities covered by this Agreement be finally
determined to be in excess of that which is valid or enforceable under
applicable law, such provision shall be construed to cover only that geography,
duration, extent, or activities that may validly or enforceably be covered.
Executive acknowledges the uncertainty of the law in this respect and expressly
stipulates that this Agreement shall be construed in a manner which renders its
provisions valid and enforceable to the maximum extent (not exceeding its
express terms) possible under applicable law.

    

    14. Governing Law;
Venue.  This Agreement shall be governed by and construed in
accordance with the laws of the state of Washington applicable to contracts made
and to be performed there without giving effect to the principles of conflicts
of law.  After consultation with its independent counsel, Executive
expressly acknowledges that (a) the parties could have elected California law as
the law that would govern this Agreement, and (b) California law may be
more favorable to Executive in certain material respects than Washington
law.  Notwithstanding the foregoing, Executive and the Company have
specifically bargained for this Agreement to be governed by Washington law
(without giving effect to the principles of conflicts of law).  The
parties hereby consent and agree that the federal or state courts of the State
of Washington (located in Seattle, Washington) will have jurisdiction to hear,
determine, and enforce any claims or disputes arising out of or related to the
provisions of this Agreement.

    

    14. Miscellaneous.  The
substantially prevailing party in any litigation brought under the terms of this
Agreement shall be entitled to an award of reasonable costs and expenses of
litigation and any appeal, including reasonable attorneys’
fees.  Executive’s obligations under this Agreement supplement and do
not limit other obligations Executive has to the Company, including without
limitation under the law of trade secrets.  This Agreement shall be
enforceable regardless of any claim Executive may have against the
Company.  If any provision of this Agreement is held to be
unenforceable as written, it shall be enforced to the maximum extent allowed by
applicable law.  If any provision of this Agreement is void or is so
declared, such provision shall be severed from this Agreement, which shall
otherwise remain in full force and effect.  This Agreement shall
survive termination of Executive’s employment, however caused.  This
Agreement is the final and complete expression of the parties’ agreement on
these subjects, and may be amended only in a writing signed by the Company and
Executive.

     

    DATED
this ___ day of July, 2010.

    
       

      EXECUTIVE:

       

      
        
          
            
              
                	 	 	 
	 	 	 	 
	
                      	 	 
	 	R.
      Gale Sellers	 
	 	 	 	 
	 	 	 	 

              

            

          

        

      

       

      COMPANY:

       

      
        	 	VU1
CORPORATION	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	Name: 	Mark
      Weber	 
	 	Title:  	Director	 
	 	 	 	 

      

    

     

    
      

      
        
           

        

        
          A-4

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