Document:

EXHIBIT 4.2

                               (Face of Security)

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO BARCLAYS BANK PLC,
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS 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.

BY PURCHASING THIS SECURITY, THE HOLDER AGREES TO CHARACTERIZE THIS SECURITY FOR
ALL U.S. FEDERAL INCOME TAX PURPOSES AS PROVIDED IN SECTION 7 ON THE FACE OF
THIS SECURITY.

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CUSIP NO. 06738C778                                           ISIN: US06738C7781
                                                          COMMON CODE: 023293455

                                BARCLAYS BANK PLC

                           MEDIUM-TERM NOTES, SERIES A

                                  ------------

                          IPATH(SM) EXCHANGE TRADED NOTES
                                DUE JUNE 12, 2036

        (LINKED TO THE DOW JONES - AIG COMMODITY INDEX TOTAL RETURN(SM))

              The following terms apply to this Security. Capitalized terms that
are not defined the first time they are used in this Security shall have the
meanings indicated elsewhere in this Security.

FACE AMOUNT:  $[ ], equal to [ ]          EARLY REDEMPTION: The Holder may,
Securities at $50 per Security.           subject to the notification
                                          requirements provided under Section 5
INDEX: The Dow Jones-AIG Commodity        hereof, require the Company to redeem
Index Total Return(SM).                   the Holder's Securities in whole or in
                                          part on any Redemption Date during the
INCEPTION DATE: June 6, 2006.             term of the Securities. If the Holder
                                          requires the Company to redeem the
INTEREST RATE: The principal of this      Holder's Securities on any Redemption
Security shall not bear interest.         Date, the Holder will receive a cash
                                          payment equal to the principal amount
DENOMINATION: $50.                        of the Holder's Securities TIMES the
                                          Index Factor on the applicable
PAYMENT AT MATURITY: On the Maturity      Valuation Date MINUS the Investor Fee
Date, the Company shall redeem this       on the applicable Valuation Date. The
Security by paying to the Holder a        Company shall not be required to
cash payment equal to the principal       redeem fewer than 50,000 Securities at
amount of the Holder's Securities         one time, PROVIDED THAT the Company
TIMES the Index Factor on the Final       may from time to time in its sole
Valuation Date MINUS the Investor Fee     discretion reduce, in part or in
on the Final Valuation Date unless        whole, this minimum redemption amount
such Securities were previously           on a consistent basis for all Holders
redeemed on a Redemption Date as          who hold Securities at the time the
provided under "Early Redemption".        reduction becomes effective.

                                          CALCULATION AGENT: Barclays Bank PLC.

                                          DEFEASANCE: Neither full defeasance
                                          nor covenant defeasance applies to
                                          this Security.

                                          LISTING: New York Stock Exchange.

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                                       -2-
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"Dow Jones," "AIG(R)", "Dow-Jones-AIG Commodity Index(SM)" and "DJAIGCI(SM)" are
service marks of Dow Jones & Company, Inc. and American International Group,
Inc., as the case may be, and have been licensed for use for certain purposes by
Barclays Bank PLC. The Index was designed by AIG International Inc. ("AIGI") and
is owned by AIG Financial Products Corp. ("AIG-FP"). The Index is calculated by
Dow Jones & Company, Inc. ("Dow Jones") in conjunction with AIG-FP. Barclays
Bank PLC's Securities based on the Dow Jones-AIG Commodity Index Total
Return(SM), are not sponsored, endorsed, sold or promoted by Dow Jones, AIG-FP,
American International Group, or any of their respective subsidiaries or
affiliates, and none of Dow Jones, AIG-FP, American International Group, or any
of their respective subsidiaries or affiliates, makes any representation
regarding the advisability of investing in such Securities.

The Securities are not sponsored, endorsed, sold or promoted by Dow Jones,
American International Group, AIG-FP or any of their respective subsidiaries or
affiliates. None of Dow Jones, American International Group, AIG-FP or any of
their affiliates makes any representation or warranty, express or implied, to
the owners of the Securities or any member of the public regarding the
advisability of investing in securities or commodities generally or in the
Securities particularly. The only relationship of such persons to Barclays Bank
PLC is the licensing of certain trademarks, trade names and service marks and of
the Dow Jones-AIG Commodity Index Total Return(SM), which is determined,
composed and calculated by Dow Jones in conjunction with AIG-FP without regard
to Barclays Bank PLC or the Securities. Dow Jones and AIG-FP have no obligation
to take the needs of Barclays Bank PLC or the owners of the Securities into
consideration in determining, composing or calculating the Dow Jones-AIG
Commodity Index Total Return(SM). None of Dow Jones, American International
Group, AIG-FP or any of their respective subsidiaries or affiliates is
responsible for or has participated in the determination of the timing of,
prices at or quantities of the Securities to be issued or in the determination
or calculation of the equation by which the Securities are to be converted into
cash. None of Dow Jones, American International Group, AIG-FP or any of their
respective subsidiaries or affiliates shall have any obligation or liability in
connection with the administration marketing or trading of the Securities.
Notwithstanding the foregoing, AIG-FP, American International Group and their
respective affiliates may independently issue and/or sponsor financial products
unrelated to the Securities currently being issued by Barclays Bank PLC, but
which may be similar to and competitive with the Securities. In addition,
American International Group, AIG-FP and their respective subsidiaries or
affiliates actively trade commodities, commodity indexes and commodity futures
(including the Dow Jones-AIG Commodity Index(SM) and the Dow Jones-AIG Commodity
Index Total Return(SM)) as well as swaps, options and derivatives which are
linked to commodity indexes and commodity futures. It is possible that this
trading activity will affect the value of the Dow Jones-AIG Commodity Index
Total Return(SM) and the Securities. This Security does not relate to the
exchange-traded physical commodities underlying any of the Dow Jones-AIG
Commodity Index Total Return(SM) components. Purchasers of the Securities should
not conclude that the inclusion of a futures contract in the Dow Jones-AIG
Commodity Index Total Return(SM) is any form of investment recommendation of the
futures contract of the underlying exchange-traded physical commodity by Dow
Jones, American International Group, AIG-FP or any of their respective
subsidiaries or affiliates. None of Dow Jones, American International Group,
AIG-FP or any of their respective subsidiaries or affiliates has made any due
diligence inquiries with respect to the exchange-traded futures contracts which
comprise the Dow Jones-AIG Commodity Index Total Return(SM) in connection with
the Securities.

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                                      -3-
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NONE OF DOW JONES, AMERICAN INTERNATIONAL GROUP, AIG-FP OR ANY OF THEIR
AFFILIATES GUARANTEES THE ACCURACY AND/OR THE COMPLETENESS OF THE DOW JONES-AIG
COMMODITY INDEX TOTAL RETURN(SM) OR ANY DATA INCLUDED THEREIN AND NONE OF DOW
JONES, AMERICAN INTERNATIONAL GROUP, AIG-FP OR ANY OF THEIR RESPECTIVE
SUBSIDIARIES OR AFFILIATES SHALL HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS OR
INTERRUPTIONS THEREIN. NONE OF DOW JONES, AMERICAN INTERNATIONAL GROUP, AIG-FP
OR ANY OF THEIR RESPECTIVE SUBSIDIARIES OR AFFILIATES MAKES ANY WARRANTY,
EXPRESS OR IMPLIED, AS TO THE RESULTS TO BE OBTAINED BY BARCLAYS BANK PLC,
OWNERS OF THE SECURITIES, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE DOW
JONES-AIG COMMODITY INDEX TOTAL RETURN(SM) OR ANY DATA INCLUDED THEREIN. NONE OF
DOW JONES, AMERICAN INTERNATIONAL GROUP, AIG-FP OR ANY OF THEIR RESPECTIVE
SUBSIDIARIES OR AFFILIATES MAKES ANY EXPRESS OR IMPLIED WARRANTIES, AND
EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OR USE WITH RESPECT TO DOW JONES-AIG COMMODITY INDEX TOTAL
RETURN(SM) OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING,
IN NO EVENT SHALL DOW JONES, AMERICAN INTERNATIONAL GROUP, AIG-FP OR ANY OF
THEIR RESPECTIVE SUBSIDIARIES OR AFFILIATES HAVE ANY LIABILITY FOR ANY LOST
PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES, EVEN
IF NOTIFIED OF THE POSSIBILITY THEREOF. THERE ARE NO THIRD PARTY BENEFICIARIES
OF ANY AGREEMENTS OR ARRANGEMENTS AMONG DOW JONES, AIG-FP AND BARCLAYS BANK PLC,
OTHER THAN AMERICAN INTERNATIONAL GROUP.

OTHER TERMS:

              All terms used in this Security that are not defined in this
Security but are defined in the Indenture referred to on the reverse of this
Security shall have the meanings assigned to them in the Indenture. Section
headings on the face of this Security are for convenience only and shall not
affect the construction of this Security.

              "BUSINESS DAY" means any day that is not a Saturday, a Sunday or a
day on which banking institutions in London or New York City generally are
authorized or obligated by law, regulation or executive order to close.

              "DEFAULT AMOUNT" means, on any day, an amount in U.S. dollars, as
determined by the Calculation Agent in its sole discretion, equal to the cost of
having a Qualified Financial Institution (selected as provided below) expressly
assume the due and punctual payment of the principal of this Security, and the
performance or observance of every covenant hereof and of the Indenture on the
part of the Company to be performed or observed with respect to this Security
(or to undertake other obligations providing substantially equivalent economic
value to the Holder of this Security as the Company's obligations hereunder).
Such cost will equal (i) the lowest amount that a Qualified Financial
Institution would charge to effect such assumption (or undertaking) plus (ii)
the reasonable expenses (including reasonable attorneys' fees) incurred by the
Holder of this Security in

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                                      -4-
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preparing any documentation necessary for such assumption (or undertaking).
During the Default Quotation Period, each Holder of this Security and the
Company may request a Qualified Financial Institution to provide a quotation of
the amount it would charge to effect such assumption (or undertaking). If either
party obtains a quotation, it must notify the other party in writing of the
quotation. The amount referred to in clause (i) of this paragraph will equal the
lowest (or, if there is only one, the only) quotation so obtained, and as to
which notice is so given, during the Default Quotation Period; PROVIDED THAT,
with respect to any quotation, the party not obtaining the quotation may object,
on reasonable and significant grounds, to the effectuation of such assumption
(or undertaking) by the Qualified Financial Institution providing such quotation
and notify the other party in writing of such grounds within two Business Days
after the last day of the Default Quotation Period, in which case that quotation
will be disregarded in determining the Default Amount. The "DEFAULT QUOTATION
PERIOD" shall be the period beginning on the day the Default Amount first
becomes due and ending on the third Business Day after such due date, unless no
such quotation is obtained, or unless every such quotation so obtained is
objected to within five Business Days after such due date as provided above, in
which case the Default Quotation Period will continue until the third Business
Day after the first Business Day on which prompt notice of a quotation is given
as provided above, unless such quotation is objected to as provided above within
five Business Days after such first Business Day, in which case, the Default
Quotation Period will continue as provided in this sentence. Notwithstanding the
foregoing, if the Default Quotation Period (and the subsequent two Business Day
objection period) has not ended prior to the Final Valuation Date, then the
Default Amount will equal the Face Amount.

              "FINAL VALUATION DATE" means June 5, 2036, or if such date is not
a Trading Day, the next succeeding Trading Day; PROVIDED, HOWEVER, that if the
Calculation Agent determines that a Market Disruption Event occurs or is
continuing on such date, the Final Valuation Date will be the first following
Trading Day on which the Calculation Agent determines that a Market Disruption
Event does not occur and is not continuing, PROVIDED that in no event will the
Final Valuation Date be postponed by more than five Trading Days.

              "INDEX COMPONENT" means, with respect to the Securities, any of
the futures contracts on physical commodities that comprise the Index.

              "INDEX FACTOR" means, on any given day, the amount equal to the
closing value of the Index on that day DIVIDED by the closing value of the Index
on the Inception Date.

              "INVESTOR FEE" means the amount equal to 0.75% per year TIMES the
principal amount of the Holder's Securities TIMES the Index Factor, calculated
on a daily basis in the following manner: (i) the Investor Fee on the Inception
Date shall equal zero; and (ii) on each subsequent calendar day until and
including the Final Valuation Date or, in the case of Securities with respect to
which the Holder has exercised its right of Early Redemption, the applicable
Valuation Date, the Investor Fee will increase by an amount equal to 0.75% TIMES
the principal amount of the Holder's Securities TIMES the Index Factor on that
day (or, if such day is not a Trading Day, the Index Factor on the immediately
preceding Trading Day) DIVIDED by 365.

              "MARKET DISRUPTION EVENT" means, with respect to the Securities,
in the opinion of the Calculation Agent and determined in its sole discretion:
(i) a material limitation, suspension or disruption in the trading of any Index
Component which results in a

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                                      -5-
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failure by the trading facility on which the relevant contract is traded to
report a daily contract reference price; (ii) the daily contract reference price
for any Index Component has increased or decreased from the previous day's daily
contract reference price by the maximum amount permitted under the applicable
rules or procedures of the relevant trading facility; (iii) AIG-FP and Dow Jones
fail to publish the closing value of the Index or the applicable trading
facility or other price source fails to announce or publish the daily contract
reference price for one or more Index Components; (iv) any other event, if the
Calculation Agent determines in its sole discretion that the event materially
interferes with the ability of Barclays Bank PLC or the ability of any
affiliates of Barclays Bank PLC to unwind all or a material portion of a hedge
with respect to the Securities that Barclays Bank PLC or any of its affiliates
have effected or may effect. The following events will not be Market Disruption
Events: (a) a limitation on the hours or numbers of days of trading on a trading
facility on which any Index Component is traded, but only if the limitation
results from an announced change in the regular business hours of the relevant
market; or (b) a decision by a trading facility to permanently discontinue
trading in any Index Component.

              "MATURITY DATE" means June 12, 2036, PROVIDED that if such date is
not a Business Day, the Maturity Date will be the next succeeding Business Day;
PROVIDED, HOWEVER, that if the fifth Business Day preceding June 12, 2036 does
not qualify as the Final Valuation Date referred to above, then the Maturity
Date will be the fifth Business Day following the Final Valuation Date.

              "QUALIFIED FINANCIAL INSTITUTION" means, at any time, a financial
institution organized under the laws of any jurisdiction in the United States of
America or Europe that at such time has outstanding debt obligations with a
stated maturity of one year or less from the date of issue and rated A-1 or
higher by Standard & Poor's, a division of The McGraw Hill Companies, Inc.,
Ratings Group (or any successor) or P-1 or higher by Moody's Investors Service,
Inc. (or any successor) or, in either case, such other comparable rating, if
any, then used by such rating agency.

              "REDEMPTION DATE" means the third Business Day following each
Valuation Date other than the Final Valuation Date. The final Redemption Date
shall be the third Business Day following such Valuation Date that is
immediately prior to the Final Valuation Date.

              "SUCCESSOR INDEX" means any substitute index approved by the
Calculation Agent as a Successor Index pursuant to Section 3 hereof.

              "TRADING DAY" means any day on which (i) the value of the Index is
published by AIG-FP and Dow Jones; (ii) trading is generally conducted on the
New York Stock Exchange; and (iii) trading is generally conducted on the markets
on which the Index Components are traded, in each case as determined by the
Calculation Agent in its sole discretion.

              "VALUATION DATE" means each Thursday from June 15, 2006 to June 5,
2036, inclusive, or if such date is not a Trading Day, the next succeeding
Trading Day; PROVIDED, HOWEVER, that if the Calculation Agent determines that a
Market Disruption Event occurs or is continuing on such date, the Valuation Date
will be the first following Trading Day on which the Calculation Agent
determines that a Market Disruption Event does not occur and is not continuing,
PROVIDED that in no event will any Valuation Date be postponed by more than five
Trading Days.

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                                      -6-
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                                -----------------------

              1.     PROMISE TO PAY AT MATURITY OR UPON EARLY REDEMPTION

              Barclays Bank PLC, a public limited company duly organized and
existing under the laws of England and Wales (herein called the "COMPANY," which
term includes any successor Person under the Indenture hereinafter referred to),
for value received, hereby promises to pay (or cause to be paid) to Cede & Co.,
as nominee for The Depository Trust Company, or registered assigns, the amount
as calculated and provided under (i) "Early Redemption" and elsewhere on the
face this Security on the applicable Redemption Date, in the case of any
Securities in respect of the which the Holder exercises such Holder's right to
require the Company to redeem such Holder's Securities prior to the Maturity
Date, or (ii) "Payment at Maturity" and elsewhere on the face of this Security
on the Maturity Date, in the case of all other Securities.

              2.     PAYMENT OF INTEREST

              The principal of this Security shall not bear interest.

              3.     DISCONTINUANCE OR MODIFICATION OF THE INDEX; MARKET
                     DISRUPTION EVENT

              If Dow Jones and AIG-FP discontinue publication of the Index and
Dow Jones and AIG-FP or any other Person or entity publishes an index that the
Calculation Agent determines is comparable to the Index and approves as a
Successor Index, then the Calculation Agent will determine the value of the
Index on the applicable Valuation Date and the amount payable on the Maturity
Date or any Redemption Date by reference to such Successor Index.

              If the Calculation Agent determines that the publication of the
Index is discontinued and that there is no Successor Index, or that the closing
value of the Index is not available because of a Market Disruption Event or for
any other reason, on any Valuation Date, or if for any other reason the Index is
not available to the Company or the Calculation Agent on any Valuation Date, the
Calculation Agent will determine the amount payable by a computation methodology
that the Calculation Agent determines will as closely as reasonably possible
replicate the Index.

              If the Calculation Agent determines that the Index, the Index
Components or the method of calculating the Index has been changed at any time
in any respect, including, without limitation, any addition, deletion or
substitution and any reweighting or rebalancing of Index Components, and whether
the change is made by AIG-FP and Dow Jones under their existing policies or
following a modification of those policies, is due to the publication of a
Successor Index, is due to events affecting one or more of the Index Components,
or is due to any other reason, then the Calculation Agent will be permitted (but
shall not be required) to make such adjustments to the Index or method of
calculating the Index as it believes are appropriate to ensure that the value of
the Index used to determine the amount payable on the Maturity Date or upon
Early Redemption is equitable.

              The Calculation Agent shall have the right to postpone a Valuation
Date, and thus the determination of the value of the Index, if the Calculation
Agent determines that, on

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                                      -7-
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such Valuation Date, a Market Disruption Event occurs or is continuing in
respect of any Index Component. If such a postponement occurs, the Calculation
Agent shall determine the value of the Index Components unaffected by the Market
Disruption Event by using the closing value of such Index Component or Index
Components on the scheduled Valuation Date and shall determine the value of any
affected Index Component by using the closing value of such Index Component on
the first Trading Day after that day on which no Market Disruption Event occurs
or is continuing with respect to such Index Component. In no event, however, may
the Calculation Agent postpone a Valuation Date by more than five Trading Days.

              In the event that a Valuation Date is postponed until the fifth
Trading Day following the scheduled Valuation Date, but a Market Disruption
Event occurs and is continuing on such day, that day shall nevertheless be a
Valuation Date, and the Calculation Agent shall determine the value of the Index
on such day by a good faith estimate of the value of the Index that would have
prevailed in the absence of a Market Disruption Event.

              The Calculation Agent shall have the right to make all
determinations and adjustments with respect to the Index in its sole discretion.

              4.     PAYMENT AT MATURITY OR UPON EARLY REDEMPTION

              The payment of this Security that becomes due and payable on the
Maturity Date or on a Redemption Date, as the case may be, shall be the cash
amount that must be paid to redeem this Security as provided above under
"Payment at Maturity" and "Early Redemption", respectively. The payment of this
Security that becomes due and payable upon acceleration of the Maturity Date
hereof after an Event of Default has occurred pursuant to the Indenture shall be
the Default Amount. When the principal referred to in either of the two
preceding sentences has been paid as provided herein (or such payment has been
made available), the principal of this Security shall be deemed to have been
paid in full, whether or not this Security shall have been surrendered for
payment or cancellation. References to the payment at maturity or upon early
redemption of this Security on any day shall be deemed to mean the payment of
cash that is payable on such day as provided in this Security. Notwithstanding
the foregoing, solely for the purpose of determining whether any consent,
waiver, notice or other action to be given or taken by Holders of Securities
pursuant to the Indenture has been given or taken by Holders of Outstanding
Securities in the requisite aggregate principal amount, the principal amount of
this Security will be deemed to equal the Face Amount. This Security shall cease
to be Outstanding as provided in the definition of such term in the Indenture
when the principal of this Security shall be deemed to have been paid in full as
provided above.

              5.     REDEMPTION MECHANICS

              Subject to the minimum redemption amount provided under "Early
Redemption", the Holder may require the Company to redeem the Holder's
Securities on any Redemption Date during the term of the Securities PROVIDED
that such Holder (i) delivers a notice of redemption to the Company via
electronic mail by no later than 11:00 a.m. New York time on the Business Day
prior to the applicable Valuation Date; (ii) delivers a signed confirmation of
redemption to the Company via facsimile by no later than 4:00 p.m. New York time
on the same day; (iii) instructs the Holder's DTC custodian to book a delivery
versus payment trade with respect to the Holder's Securities on the applicable
Valuation Date at a price equal to the principal amount of the Holder's
Securities TIMES the Index Factor on

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                                      -8-
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the applicable Valuation Date MINUS the Investor Fee on the applicable Valuation
Date, facing Barclays Capital DTC 5101; and (iv) causes the Holder's DTC
custodian to deliver the trade as booked for settlement via DTC prior to 10:00
a.m. New York time on the applicable Redemption Date, which shall be the third
Business Day following the applicable Valuation Date (other than the Final
Valuation Date). The final Redemption Date shall be the third Business Day
following such Valuation Date that is immediately prior to the Final Valuation
Date.

              6.     ROLE OF CALCULATION AGENT

              The Calculation Agent will be solely responsible for all
determinations and calculations regarding the value of the Securities, including
at maturity or upon early redemption; Market Disruption Events; Business Days;
Trading Days; the Investor Fee; the Default Amount; the closing value of the
Index on the Inception Date and on any Valuation Date; the Maturity Date;
Redemption Dates; the amount payable on the Securities and all such other
matters as may be specified elsewhere herein as matters to be determined by the
Calculation Agent. The Calculation Agent shall make all such determinations and
calculations in its sole discretion, and absent manifest error, all
determinations of the Calculation Agent shall be final and binding on the
Company, the Holder and all other Persons having an interest in this Security,
without liability on the part of the Calculation Agent.

              The Company shall take such action as shall be necessary to ensure
that there is, at all relevant times, a financial institution serving as the
Calculation Agent hereunder. The Company may, in its sole discretion at any time
and from time to time, upon written notice to the Trustee, but without notice to
the Holder of this Security, terminate the appointment of any Person serving as
the Calculation Agent and appoint another Person (including any Affiliate of the
Company) to serve as the Calculation Agent. Insofar as this Security provides
for the Calculation Agent to determine the value of the Index on any date or
other information from any institution or other source, the Calculation Agent
may do so from any source or sources of the kind contemplated or otherwise
permitted hereby notwithstanding that any one or more of such sources are the
Calculation Agent, Affiliates of the Calculation Agent or Affiliates of the
Company.

              7.     TAX CHARACTERIZATION

              By its purchase of this Security, the Holder, on behalf of itself
and any other Person having a beneficial interest in this Security, hereby
agrees with the Company (in the absence of an administrative determination or
judicial ruling to the contrary) to characterize this Security for all U.S.
federal income tax purposes as a pre-paid contract with respect to the Index.

              8.     PAYMENT

              Payment of any amount payable on this Security will be made in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts. Payment will be made to
an account designated by the Holder (in writing to the Company and the Trustee
on or before the applicable Valuation Date) and acceptable to the Company or, if
no such account is designated and acceptable as aforesaid, at the office or
agency of the Company maintained for that purpose in The City of New York,
PROVIDED, HOWEVER, that payment on the Maturity Date or any Redemption Date

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                                      -9-
<PAGE>

shall be made only upon surrender of this Security at such office or agency
(unless the Company waives surrender). Notwithstanding the foregoing, if this
Security is a Global Security, any payment may be made pursuant to the
Applicable Procedures of the Depositary as permitted in said Indenture.

              9.     REVERSE OF THIS SECURITY

              Reference is hereby made to the further provisions of this
Security set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place.

              10.    CERTIFICATE OF AUTHENTICATION

              Unless the certificate of authentication hereon has been executed
by the Trustee referred to on the reverse hereof by manual signature, this
Security shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

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                                      -10-
<PAGE>

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

                                        BARCLAYS BANK PLC

                                        By:
                                              Name:
                                              Title:

                                        By:
                                              Name:
                                              Title:

This is one of the Securities of the series designated herein and referred to in
the Indenture.

Dated:

                                        THE BANK OF NEW YORK

                                        By:
                                              Name:
                                              Title:

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                                      -11-
<PAGE>

                              (Reverse of Security)

This Security is one of a duly authorized issue of securities of the Company
(herein called the "SECURITIES") issued and to be issued in one or more series
under an Indenture, dated as of September 16, 2004 (herein called the
"INDENTURE," which term shall have the meaning assigned to it in such
instrument), between the Company and The Bank of New York, as Trustee (herein
called the "TRUSTEE," which term includes any successor trustee under the
Indenture), and reference is hereby made to the Indenture for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Trustee, the Holders of the Securities and of the terms upon
which the Securities are, and are to be, authenticated and delivered. Insofar as
the provisions of the Indenture may conflict with the provisions set forth on
the face of this Security, the latter shall control for purposes of this
Security.

This Security is one of the series designated on the face hereof, limited to an
aggregate initial offering price not to exceed $10,000,000,000 (or the
equivalent thereof in any other currency or currencies or currency units), which
amount may be increased at the option of the Company if in the future it
determines that it may wish to sell additional Securities of this series.
References herein to "THIS SERIES" mean the series designated on the face
hereof.

Payments under the Securities will be made without deduction or withholding for,
or on account of, any and all present or future income, stamp and other taxes,
levies, imposts, duties, charges, fees, deductions or withholdings ("TAXES") now
or hereafter imposed, levied, collected, withheld or assessed by or on behalf of
the United Kingdom or any political subdivision or authority thereof or therein
having the power to tax (each a "TAXING JURISDICTION"), unless such deduction or
withholding is required by law. If any such Taxes are at any time required by a
Taxing Jurisdiction to be deducted or withheld, the Company will, subject to the
exceptions and limitations set forth in Section 10.04 of the Indenture, pay such
additional amounts of the principal of such Security and any other amounts
payable on such Security ("ADDITIONAL AMOUNTS") as may be necessary in order
that the net amounts paid to the Holder of any Security, after such deduction or
withholding, shall equal the amounts of the principal of such Security and any
other amounts payable on such Security which would have been payable in respect
of such Security had no such deduction or withholding been required.

If at any time the Company determines that as a result of a change in or
amendment to the laws or regulations of a Taxing Jurisdiction (including any
treaty to which such Taxing Jurisdiction is a party), or a change in an official
application or interpretation of such laws or regulations (including a decision
of any court or tribunal), either generally or in relation to any particular
Securities, which change, amendment, application or interpretation becomes
effective on or after the Original Issue Date in making any payment of, or in
respect of, the principal amount of the Securities, the Company would be
required to pay any Additional Amounts with respect thereto, then the Securities
will be redeemable upon not less than 35 nor more than 60 days' notice by mail,
at any time thereafter, in whole but not in part, at the election of the

                  (Reverse of Security continued on next page)
                                      -12-
<PAGE>

Company as provided in the Indenture at a redemption price equal to the
principal amount thereof.

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal amount of the Securities at
the time Outstanding of all series to be affected (considered together as one
class for this purpose). The Indenture also contains provisions (i) permitting
the Holders of a majority in aggregate principal amount of the Securities at the
time Outstanding of all series to be affected under the Indenture (considered
together as one class for this purpose), on behalf of the Holders of all
Securities of such series, to waive compliance by the Company with certain
provisions of the Indenture and (ii) permitting the Holders of a majority in
aggregate principal amount of the Securities at the time Outstanding of any
series to be affected under the Indenture (with each such series considered
separately for this purpose), on behalf of the Holders of all Securities of such
series, to waive certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or
in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

As provided in and subject to the provisions of the Indenture, the Holder of
this Security shall not have any right to institute any proceeding, judicial or
otherwise, with respect to the Indenture or for the appointment of a receiver or
trustee or for any other remedy thereunder, unless such Holder shall have
previously given the Trustee written notice of a continuing Event of Default
with respect to the Securities of this series, the Holders of not less than 25%
in aggregate principal amount of the Securities of this series at the time
Outstanding shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default as Trustee and offered the
Trustee reasonable indemnity against the costs, expenses and liabilities to be
incurred in compliance with such request, and the Trustee shall not have
received from the Holders of a majority in principal amount of Securities of
this series at the time Outstanding a direction inconsistent with such request,
and shall have failed to institute any such proceeding, for 60 days after
receipt of such notice, request and offer of indemnity. The foregoing shall not
apply to any suit instituted by the Holder of this Security for the enforcement
of any payment of principal hereof on or after the respective due dates
expressed herein.

                  (Reverse of Security continued on next page)
                                      -13-
<PAGE>

No reference herein to the Indenture and no provision of this Security or of the
Indenture shall alter or impair the obligation of the Company, which is absolute
and unconditional, to pay the principal of this Security as herein provided.

As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Security is registrable in the Senior Debt Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of this
Security is payable, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Senior Debt Security
Registrar duly executed by, the Holder hereof or his attorney duly authorized in
writing. Thereupon one or more new Securities of this series and of like tenor,
of authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.

This Security, and any other Securities of this series and of like tenor, are
issuable only in registered form without coupons in denominations of any
multiple of $50. As provided in the Indenture and subject to certain limitations
therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series and of like tenor of a
different authorized denomination, as requested by the Holder surrendering the
same.

No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

Prior to due presentment of this Security for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

THIS SECURITY AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

                                      -14-EXHIBIT 10.5

                                                              September 22, 2006

Wilbert van den Hoek
Novellus Corporation
4000 North 1st Street
San Jose, CA. 95134

RE:  Agreed Milestones Under the Extended Collaboration Agreement between Neah
     Power Systems, Inc. (a state of Washington corporation) and Novellus
     Systems, Inc.

Dear Wilbert:

Set forth below are the agreed Milestones that were to be reasonably negotiated
in the ninety (90) days following the date of the Letter Agreement and Warrant.
All of the terms and conditions relating to these Milestones are stated in the
Letter Agreement dated May 22, 2006, except as otherwise stated herein.

     1.   Ten (10) percent of the Warrants granted to Novellus to purchase
          4,705,000 shares of the Common Stock of Neah Power Systems, Inc., the
          Nevada corporation, issued as part of the Letter Agreement and Warrant
          exchange between Neah and Novellus dated May 22, 2006 (hereinafter
          such Warrants are referred to as the "Warrants"), shall vest in full
          on the satisfaction of the following project Milestone, targeted for
          the end of Q4, 2006:

               Completion of a 10 W PPFC, i.e., a fully self contained fuel cell
               capable of producing 10 Watts of power continuously for 5 hours
               using one cartridge. The 10 W PPFC Prototype is to be in an
               elongated BA 5590 form factor including cartridge, all as
               specified by Thales.

     2.   Fifteen (15) percent of the Warrants shall vest in full on the
          satisfaction of the following project Milestone, targeted for the end
          of Q3, 2007:

               Completion of a fully self-contained fuel cell capable of
               producing 45 Watts of peak power and 300WH capability at 20 Watts
               average operating power. The prototype meeting these
               specifications is to be in a BA 5590 form factor including
               cartridge, all as specified by Thales.

     3.   Fifty (50) percent of the Warrants shall vest in full on the
          satisfaction of all of the following project Milestones, targeted for
          the end of Q4, 2007:

               o    Establishment of a pilot production line to assemble
                    completed fuel cells.

               o    Finalization of a 200 mm process flow, based on commercially
                    available equipment, and identification of a foundry that is
                    capable and willing to run the process.

               o    Demonstration of the viability of achieving porous silicon
                    membrane production with a total cost (i.e., projected tool
                    amortization cost per wafer plus consumables cost per wafer)
                    of $30 or less per wafer.

     4.   Twenty-five (25) percent of the Warrants shall vest in full on the
          satisfaction of all of the following project Milestones, targeted for
          the end of Q1, 2008:

               o    Reduction of the electrode catalyst loading from its current
                    30 mgcm(-2) to less than 8 mgcm(-2). Neah's 2007 goal is to
                    demonstrate viability of a 10 mgcm(-2) loading.
<PAGE>

               o    Development of a plan to scale Neah's fuel cell production
                    process to commercial volumes, and to adapt it to
                    commercially available equipment.

               These four (4) Milestones set forth above are each targeted to be
completed on or before the date specified in the specified Milestone ("Target
Date"). However, it is agreed that:

               o    If the Milestone is completed on or before 120 days
                    following the Target Date, there will be no penalty and 100%
                    of the Warrants scheduled to vest under the Milestone will
                    vest in Novellus;

               o    If the Milestone is completed after 120 days following the
                    Target Date but on or before 210 days following the Target
                    Date, there will be a one-third penalty and only 66.67% of
                    the Warrants scheduled to vest under the Milestone will vest
                    in Novellus;

               o    If the Milestone is completed after 210 days following the
                    Target Date but on or before 300 days following the Target
                    Date, there will be a two-third penalty and only 33.33% of
                    the Warrants scheduled to vest under the Milestone will vest
                    in Novellus;

               o    If the Milestone is completed after 300 days following the
                    Target Date, there will be a 100% penalty and 0% of the
                    Warrants scheduled to vest under the Milestone will vest in
                    Novellus;

If the foregoing accurately reflects the substance of our mutual agreement and
understanding relating to the Milestones, please so indicate by executing and
returning a copy of this Milestone Letter in the space provided below.

                                                              Very truly yours,

NEAH POWER SYSTEMS, INC.
(a Nevada corporation)

         /s/ Daniel Rosen
         ----------------
By:      Daniel Rosen
Its:     Chairman of the Board of Directors

NEAH POWER SYSTEMS, INC.
(a Washington corporation)

         /s/ Daniel Rosen
         ----------------
By:      Daniel Rosen
Its:     Chairman of the Board of Directors

AGREED AND ACCEPTED AS OF THE DATE OF THIS LETTER:

NOVELLUS SYSTEMS, INC.

         /s/ Wilbert van den Hoek
         ------------------------
By:      Wilbert van den Hoek
Its:     Executive Vice President

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