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| Dated                1                December 2006                                                                                                                                                                                                                                                          |
|   **WESTERN                POWER****DISTRIBUTION                (SOUTH WEST) PLC** and **HSBC                TRUSTEE (C.I.) LIMITED**    **TRUST                DEED** constituting£105,000,000                1.541 per cent. Index-Linked Notes due 2053 |
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----

**This      Trust Deed**
**between**

| **(1)  ** | **WESTERN                POWER DISTRIBUTION (SOUTH WEST) PLC**(“**WPD                South West**”                or the “**Issuer**”)                a company incorporated in England and Wales whose registered office                is at                Avonbank, Feeder Road, Bristol BS2 0TB                and |
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| **(2)  ** | **HSBC                TRUSTEE (C.I.) LIMITED**                (the “**Trustee**”,                which expression, where the context so admits, includes any other                trustee                for the time being of this Trust Deed) a company incorporated under                the                laws of Jersey whose registered office is at P.O. Box 88, 1 Grenville                Street, St. Helier, Jersey, JE4                9PF. |
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**Whereas:**

| (A)   | The                Issuer has authorised the issue of £105,000,000 1.541 per cent.                Index-Linked Notes due 2053 to be constituted by this Trust                Deed. |
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| (B)   | The                Trustee has agreed to act as trustee of this Trust Deed on the following                terms and conditions. |
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**This      Deed witnesses and it is declared**

| **1  ** | **Interpretation** |
|-------------------|--------------------|

| **1.1  ** | **Definitions:**                Capitalised terms used, but not defined, herein shall bear the same                respective meanings given to such terms in the Conditions and, in                addition, the following expressions have the following                meanings: |
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**Auditors**

**Authorised      Signatory**

**Clearing      System**

**Clearstream,      Luxembourg**

**Conditions**

**Couponholder**

**Coupons**

**EEA      Regulated Market**

**Euroclear**

**Event      of Default**

**Excluded      Subsidiary**

**Extraordinary      Resolution**

**FSMA**

**Global      Note**

**Group**

**Market**

**Material      Adverse Effect**

**Notes**

**Noteholder**

**outstanding**

**Paying      Agency Agreement**

**Paying      Agents**

**Potential      Event of Default**

**Principal      Paying Agent**

**Principal      Subsidiary**

**specified      office**

**Subsidiary**

**Successor**

**Temporary      Global Note**

**this      Trust Deed**

**trust      corporation**

| **1.2  ** | **Construction                of Certain References****:**                References to: |
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| **1.2.1  ** | costs,                charges, remuneration or expenses include any value added, turnover                or                similar tax charged in respect                thereof; |
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| **1.2.2  ** | “**pounds**”                “**sterling**”                or “**pounds                sterling**”                or the signs “**£**”                or “**GBP**”                shall be construed as references to the lawful currency for the time                being                of the United Kingdom; and |
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| **1.2.3  ** | any                provision of any statute shall be deemed also to refer to any statutory                modification or re-enactment thereof or any statutory instrument,                order or                regulation made thereunder or under such                re-enactment; |
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| **1.2.4  ** | Schedules,                Clauses and paragraphs shall be construed as references to, respectively,                the Schedules to and the Clauses and paragraphs of this Trust                Deed; |
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| **1.2.5  ** | any                action, remedy or method of judicial proceedings for the enforcement                of                rights of creditors shall be deemed to include, in respect of any                jurisdiction other than England, references to such action, remedy                or                method of judicial proceedings for the enforcement of rights of creditors                available or appropriate in such jurisdiction as shall most nearly                approximate thereto; |
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| **1.2.6  ** | principal                and/or premium and/or interest in respect of the Notes or to any                moneys                payable by the Issuer under this Trust Deed shall be deemed to include,                in                the case of principal and/or premium, a reference to any specific                redemption price (as specified in the Conditions) and, in any case,                a                reference to any additional amounts which may be payable under the                Conditions; and |
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| **1.2.7  ** | references                in this Trust Deed to “reasonable” or “reasonably” and similar expressions                relating to the Trustee and any exercise of power, opinion, determination                or other similar matter shall be construed as meaning reasonable                or                reasonably (as the case may be) having regard to, and taking into                account                the interests of, the Noteholders                only. |
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| **1.3  ** | **Headings:**                Headings shall be ignored in construing this Trust                Deed. |
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| **1.4  ** | **Contracts:**                References in this Trust Deed to any document are to such document                as                amended, supplemented or replaced from time to time and include any                document that amends, supplements or replaces                them. |
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| **1.5  ** | **Schedules:**                The Schedules are part of this Trust Deed and have effect                accordingly. |
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| **1.6  ** | **Contracts                (Rights of Third Parties) Act 1999:**A                person who is not a party to this Trust Deed has no right under the                Contracts (Rights of Third Parties) Act 1999 to enforce any term                of this                Trust Deed except and to the extent that Clause 7.4 expressly provides                for                such Act to apply. |
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| **2  ** | **Amount                of the Notes and Covenant to                Pay** |
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| **2.1  ** | **Amount                of the Notes:**                The aggregate nominal amount of the Notes is limited to                £105,000,000. |
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| **2.2  ** | **Covenant                to pay:**                The Issuer will on any date when any Notes become due to be redeemed                unconditionally pay to or to the order of the Trustee in pounds sterling                in same day funds the amount specified in the Conditions as being payable                in respect of the Notes becoming due for redemption on that date                and will                (subject to the Conditions) until such payment (both before and after                judgment) unconditionally so pay to or to the order of the Trustee                interest on the outstanding nominal amount of the Notes outstanding                as set                out in the Conditions provided that (1) payment of any sum due in                respect                of the Notes made to the Principal Paying Agent as provided in the                Paying                Agency Agreement shall, to that extent, satisfy such obligation except                to                the extent that there is failure in its subsequent payment to the                relevant                Noteholders or Couponholders under the Conditions and (2) a payment                made                after the due date or pursuant to Condition 9 will be deemed to have                been                made when the full amount due has been received by the Principal                Paying                Agent or the Trustee and notice to that effect has been given to                the                Noteholders (if required under Clause 6.9), except to the extent                that                there is failure in its subsequent payment to the relevant Noteholders                or                Couponholders under the Conditions. The Trustee will hold the benefit                of                this covenant on trust for the Noteholders and                Couponholders. |
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| **2.3  ** | **Discharge:**                Subject to Clause 2.4, any payment to be made in respect of the Notes                or                the Coupons by the Issuer or the Trustee may be made as provided                in the                Conditions and any payment so made will (subject to Clause 2.4) to                that                extent be a good discharge to the Issuer or the Trustee, as the case                may                be. |
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| **2.4  ** | **Payment                after a Default:**                At                any time after an Event of Default or a Potential Event of Default                has                occurred the Trustee may: |
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| **2.4.1  ** | by                notice in writing to the Issuer and the Paying Agents, require the                Paying                Agents, until notified by the Trustee to the contrary, so far as                permitted                by applicable law: |
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| (i)   | to                act as Paying Agents of the Trustee under this Trust Deed and the                Notes on                the terms of the Paying Agency Agreement (with consequential amendments                as                necessary and except that the Trustee’s liability for the indemnification,                remuneration and expenses of the Paying Agents will be limited to                the                amounts for the time being held by the Trustee in respect of the                Notes on                the terms of this Trust Deed) and thereafter to hold all Notes and                Coupons                and all moneys, documents and records held by them in respect of                Notes and                Coupons to the order of the Trustee                or |
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| (ii)   | to                deliver all Notes and Coupons and all moneys, documents and records                held                by them in respect of the Notes and Coupons to the Trustee or as                the                Trustee directs in such notice and |
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| **2.4.2  ** | by                notice in writing to the Issuer and until such notice is withdrawn                require                it to make all subsequent payments in respect of the Notes and Coupons                to                or to the order of the Trustee and not to the Principal Paying                Agent. |
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| **3  ** | **Form                of the Notes** |
|-------------------|--------------------------------------|

| **3.1  ** | **The                Global Notes:**                The Notes will initially be represented by the Temporary Global Note                in                the nominal amount of £105,000,000. Interests in the Temporary Global Note                will be exchangeable for the Global Note as set out in the Temporary                Global Note. The Global Note will be exchangeable for definitive                Notes as                set out in the Global Note. |
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| **3.2  ** | **The                Definitive Notes:**                The definitive Notes, the Coupons and Talons will be security printed                in                accordance with applicable legal and stock exchange requirements                substantially in the forms set out in Schedule 1. The Notes will                be                endorsed with the Conditions. |
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| **3.3  ** | **Signature:**                The Notes and the Coupons will be signed manually or in facsimile                by an                Authorised Signatory of the Issuer and the Notes will be authenticated                by                or on behalf of the Principal Paying Agent. The Issuer may use the                facsimile signature of a person who at the date of this Trust Deed                is such                an Authorised Signatory even if at the time of issue of any Notes                or                Coupons he no longer holds that office. Notes and Coupons so executed                and                authenticated will be binding and valid obligations of the                Issuer. |
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| **4  ** | **Stamp                Duties and Taxes** |
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| **4.1  ** | **Stamp                Duties:**                The Issuer will pay any stamp, issue, documentary or other taxes                and                duties, including interest and penalties, payable in Belgium, Luxembourg                and the United Kingdom in respect of the creation, issue and offering                of                the Notes and the Coupons and the execution or delivery of this Trust                Deed. The Issuer will also indemnify the Trustee, the Noteholders                and the                Couponholders from and against all stamp, issue, documentary or other                taxes paid by any of them in any jurisdiction in connection with                any                action taken by or on behalf of the Trustee or, as the case may be,                (and                where permitted under these presents so to do) the Noteholders or                the                Couponholders to enforce the Issuer’s obligations under this Trust Deed,                the Notes or the Coupons. |
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| **4.2  ** | **Change                of Taxing Jurisdiction:**                If                the Issuer becomes subject generally to the taxing jurisdiction of                a                territory or a taxing authority of or in that territory with power                to tax                other than or in addition to the United Kingdom or any such authority                of                or in such territory then the Issuer will (unless the Trustee otherwise                agrees) give the Trustee an undertaking satisfactory to the Trustee                in                terms corresponding to the terms of Condition 7 with the substitution                for,                or (as the case may require) the addition to, the references in that                Condition to the United Kingdom of references to that other or additional                territory or authority to whose taxing jurisdiction the Issuer has                become                so subject. In such event this Trust Deed, the Notes and the Coupons                will                be read accordingly. |
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| **5  ** | **Application                of Moneys Received by the                Trustee** |
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| **5.1  ** | **Declaration                of Trust:**                All moneys received by the Trustee in respect of the Notes or amounts                payable under this Trust Deed will, despite any appropriation of                all or                part of them by the Issuer, be held by the Trustee on trust to apply                them                (subject to Clause 5.2): |
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| **5.1.1  ** | first,                in payment of all costs, charges, expenses and liabilities properly                incurred by the Trustee (including remuneration payable to it) in                carrying                out its functions under this Trust Deed |
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| **5.1.2  ** | secondly,                in payment of any amounts owing in respect of the Notes or Coupons                *pari* *passu*                and rateably and |
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| **5.1.3  ** | thirdly,                in payment of any balance to the Issuer for                itself. |
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| **5.2  ** | **Accumulation:**                If                the amount of the moneys at any time available for payment in respect                of                the Notes under Clause 5.1 is less than 10 per cent. of the nominal                amount                of the Notes then outstanding, the Trustee may, at its discretion,                invest                such moneys. The Trustee may retain such investments and accumulate                the                resulting income until the investments and the accumulations, together                with any other funds for the time being under its control and available                for such payment, amount to at least 10 per cent. of the nominal                amount of                the Notes then outstanding and then such investments, accumulations                and                funds (after deduction of, or provision for, any applicable taxes)                will be                applied as specified in Clause 5.1. |
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| **5.3  ** | **Investment:**                Moneys held by the Trustee may be invested in its name or under its                control in any investments or other assets anywhere whether or not                they                produce income or deposited in its name or under its control at such                bank                or other financial institution in such currency as the Trustee may,                in its                absolute discretion, think fit. If that bank or institution is the                Trustee                or a subsidiary, holding or associated company of the Trustee, it                need                only account for an amount of interest equal to the standard amount                of                interest payable by it on such a deposit to an independent customer.                The                Trustee may at any time vary or transpose any such investments or                assets                or convert any moneys so deposited into any other currency, and will                not                be responsible for any resulting loss, whether by depreciation in                value,                change in exchange rates or                otherwise. |
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| **6  ** | **Covenants** |
|-------------------|---------------|

| **6.1  ** | **Books                of Account:**                keep, and procure that each of its Subsidiaries keeps, proper books                of                account and, at any time after an Event of Default or Potential Event                of                Default has occurred or if the Trustee reasonably believes that such                an                event has occurred, so far as permitted by applicable law, allow,                and                procure that each such Subsidiary will allow, the Trustee and anyone                appointed by it to whom the Issuer and/or the relevant Subsidiary                has no                reasonable objection, access to its books of account at all reasonable                times during normal business hours |
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| **6.2  ** | **Notice                of Events of Default:**                notify the Trustee in writing immediately on becoming aware of the                occurrence of any Event of Default or Potential Event of                Default |
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| **6.3  ** | **Information:**                so                far as permitted by applicable law, give the Trustee such information,                opinions and certificates as it reasonably requires to perform its                functions |
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| **6.4  ** | **Financial                Statements etc.:**                send to the Trustee at the time of their issue and in the case of                annual                financial statements in any event within 180 days of the end of each                financial year one copy in English of every balance sheet, profit                and loss                account, report or other notice, statement or circular issued, or                which                legally or contractually should be issued, to the members or creditors                (or                any class of them) of the Issuer or any holding company thereof generally                in their capacity as such |
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| **6.5  ** | **Certificate                of Authorised Signatories:**                send to the Trustee, within 14 days of its annual audited financial                statements being made available to its members, and also within 14                days of                any request by the Trustee a certificate of the Issuer signed by                any two                of its Authorised Signatories that, having made all reasonable enquiries,                to the best of the knowledge, information and belief of the Issuer                as at a                date (the “**Certification                Date**”)                not more than five days before the date of the certificate no Event                of                Default, Potential Event of Default, Restructuring Event or Potential                Restructuring Event (as defined below) or other breach of this Trust                Deed                had occurred since the Certification Date of the last such certificate                or                (if none) the date of this Trust Deed or, if such an event had occurred,                giving details of it |
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| **6.6  ** | **Certificate                of two directors of the Issuer:**                send to the Trustee, within 28 days of a request by the Trustee,                a                certificate signed by two directors of the Issuer as to the amount                of the                Capital and Reserves of the Issuer as at the date specified in such                request |
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| **6.7  ** | **Notices                to Noteholders:**                send to the Trustee not less than three days prior to being sent                to the                Noteholders the form of each notice to be given to Noteholders and,                once                given, two copies of each such notice, such notice to be in a form                approved by the Trustee (such approval, unless so expressed, not                to                constitute approval for the purposes of Section 21 of the FSMA of                any such                notice which is a communication within the meaning of Section 21                of the                FSMA) |
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| **6.8  ** | **Further                Acts:**                so                far as permitted by applicable law, do such further things as may                be                necessary in the opinion of the Trustee to give effect to this Trust                Deed |
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| **6.9  ** | **Notice                of late payment:**                forthwith upon request by the Trustee give notice to the Noteholders                of                any unconditional payment to the Principal Paying Agent or the Trustee                of                any sum due in respect of the Notes or Coupons made after the due                date for                such payment |
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| **6.10  ** | **Listing:**                use all reasonable endeavours to maintain the listing of the Notes                on the                official list of the Financial Services Authority in its capacity                as                competent authority under the FSMA and the trading of such Notes                on the                Market but, if it is unable to do so, having used such endeavours,                or if                the maintenance of such listing or trading is agreed by the Trustee                to be                unduly onerous and the Trustee is satisfied that the interests of                the                Noteholders would not be thereby materially prejudiced, instead use                all                reasonable endeavours to obtain and maintain a listing of the Notes                on                another stock exchange and for admission to trading on another market                in                each case approved in writing by the                Trustee |
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| **6.11  ** | **Change                in Agents:**                give at least 14 days’ prior notice to the Noteholders of any future                appointment, resignation or removal of a Paying Agent or of any change                by                a Paying Agent of its specified office and not make any such appointment                or removal without the Trustee’s written                approval |
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| **6.12  ** | **Notes                held by Issuer etc.:**                send to the Trustee as soon as practicable after being so requested                by the                Trustee a certificate of the Issuer signed by any two of its Authorised                Signatories stating the number of Notes held at the date of such                certificate by or on behalf of the Issuer or its                affiliates |
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| **6.13  ** | **Subsidiaries:**                give to the Trustee at the same time as sending the certificate referred                to in Clause 6.5 or within 28 days of a request by the Trustee, a                certificate signed by two directors of the Issuer listing those                Subsidiaries of the Issuer which as at the last day of the last financial                year of the Issuer or as at the date specified in such request were                Relevant Subsidiaries, Principal Subsidiaries and Excluded Subsidiaries                and confirming that there are no Subsidiaries of the type referred                to in                Clauses 6.14.1 or 6.14.2 |
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| **6.14  ** | **Restriction                on Principal Subsidiaries:**** **not                permit to exist and will not create any Subsidiary (not being an                Excluded                Subsidiary or any other Subsidiary whose only indebtedness for borrowed                money is Non-recourse                Indebtedness): |
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| **6.14.1  ** | whose                (a) profits on ordinary activities before tax or (b) gross assets,                in each                case attributable to the Issuer, represent 20 per cent. or more of                the                consolidated profits on ordinary activities before tax of the Group                or, as                the case may be, consolidated gross assets of the Group, in each                case as                calculated by reference to the then latest audited financial statements                of                such Subsidiary (consolidated in the case of a company which itself                has                Subsidiaries) and the then latest audited consolidated financial                statements of the Group provided that in the case of a Subsidiary                acquired                after the end of the financial period to which the then latest audited                consolidated financial statements of the Group relate, the reference                to                the then latest audited consolidated financial statements of the                Group for                the purposes of the calculation above shall, until consolidated financial                statements for the financial period in which the acquisition is made                have                been prepared and audited as aforesaid, be deemed to be a reference                to                such first-mentioned financial statements as if such Subsidiary had                been                shown in such financial statements by reference to its then latest                relevant audited financial statements, adjusted as deemed appropriate                by                the Auditors; or |
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| **6.14.2  ** | to                which is transferred all or substantially all of the business, undertaking                and assets of a Subsidiary of the Issuer which immediately prior                to such                transfer is a Subsidiary, with such profits and/or gross assets as                are                described in 6.14.1 above, |
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| **6.15  ** | forthwith                give notice in writing to the Trustee                of: |
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| **6.15.1  ** | the                occurrence of any Restructuring Event or of any event (a “**Potential                Restructuring Event**”)                which, depending on any certification as provided in the definition                of                “**Restructuring                Event**”,                may be a Restructuring Event; |
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| **6.15.2  ** | (if                at the time any Restructuring Event occurs there are Rated Securities)                the                occurrence of any Rating Downgrade in respect of that Restructuring                Event                within the Restructuring Period;                and |
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| **6.15.3  ** | (if                at the time any Restructuring Event occurs there are no Rated Securities)                the obtaining of a rating in accordance with the definition of                “**Negative                Rating Event**”                or the occurrence of a Negative Rating                Event |
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| **6.16  ** | **Covenant                of Compliance**:                The Issuer shall comply with and perform and observe all the provisions                of                the Trust Deed and the Notes which are expressed to be binding on                it and                shall take such steps as are reasonable to enforce all its rights                under                the Trust Deed and the Notes. The Conditions shall be binding on                the                Issuer and the Noteholders. The Trustee shall be entitled to enforce                the                obligations of the Issuer under the Notes as if the same were set                out and                contained in this Trust Deed, which shall be read and construed as                one                document with the Notes. |
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| **7  ** | **Remuneration                and Indemnification of the                Trustee** |
|-------------------|-----------------------------------------------------------------------------------|

| **7.1  ** | **Normal                Remuneration:**                So                long as any Note is outstanding the Issuer will pay the Trustee as                remuneration for its services as Trustee such sum on such dates in                each                case as they may from time to time agree. Such remuneration will                accrue                from day to day from the date of this Trust Deed. However, if any                payment                to a Noteholder or Couponholder of moneys due in respect of any Note                or                Coupon is improperly withheld or refused, such remuneration will                again                accrue as from the date of such withholding or refusal until payment                to                such Noteholder or Couponholder is duly                made. |
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| **7.2  ** | **Extra                Remuneration:**                If                an Event of Default or Potential Event of Default shall have occurred                or                if the Trustee finds it expedient or necessary or is requested by                the                Issuer to undertake duties which they both agree to be of an exceptional                nature or otherwise outside the scope of the Trustee’s normal duties under                this Trust Deed, the Issuer will pay such additional remuneration                as they                may agree or, failing agreement as to any of the matters in this                sub-Clause (or as to such sums referred to in Clause 7.1), as determined                by an investment bank (acting as an expert) selected by the Trustee                and                approved by the Issuer or, failing such approval, nominated by the                President for the time being of The Law Society of England and Wales.                The                expenses involved in such nomination and such investment bank’s fee will                be borne by the Issuer. The determination of such investment bank                will be                conclusive and binding on the Issuer, the Trustee, the Noteholders                and the                Couponholders save in the case of a manifest                error. |
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| **7.3  ** | **Expenses:**                The Issuer will also on demand by the Trustee pay or discharge all                costs,                charges, liabilities and expenses properly incurred by the Trustee                in the                preparation and execution of this Trust Deed and the performance                of its                functions under this Trust Deed including, but not limited to, legal                and                travelling expenses and any stamp, documentary or other taxes or                duties                paid by the Trustee in connection with any legal proceedings reasonably                brought or contemplated by the Trustee against the Issuer to enforce                any                provision of this Trust Deed, the Notes or the Coupons. Such costs,                charges, liabilities and expenses                will: |
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| **7.3.1  ** | in                the case of payments made by the Trustee before such demand carry                interest                from the date of the demand at the rate of 2 per cent. per annum                over the                base rate of HSBC Bank plc on the date on which the Trustee made                such                payments and |
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| **7.3.2  ** | in                other cases carry interest at such rate from 30 days after the date                of the                demand or (where the demand specifies that payment is to be made                on an                earlier date) from such earlier                date. |
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| **7.4  ** | **Indemnity:**                The Issuer will on demand by the Trustee indemnify it in respect                of                Amounts or Claims                paid or incurred by it in acting as trustee under this Trust Deed                (including (1) any Agent/Delegate Liabilities and (2) in respect                of                disputing or defending any Amounts or Claims made against the Trustee                or                any Agent/Delegate Liabilities). The Issuer will on demand by such                agent                or delegate indemnify it against such Agent/Delegate Liabilities.                “**Amounts                or Claims**”                are losses, liabilities, costs, claims, actions, demands or expenses                and                “**Agent/Delegate                Liabilities**”                are Amounts or Claims which the Trustee is or would be obliged to                pay or                reimburse to any of its agents or delegates appointed pursuant to                this                Trust Deed. The Contracts (Rights of Third Parties) Act 1999 applies                to                this Clause 7.4. |
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| **7.5  ** | **Continuing                Effect:**                Clauses 7.3 and 7.4 will continue in full force and effect as regards                the                Trustee even if it no longer is                Trustee. |
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| **8  ** | **Provisions                Supplemental to the Trustee Act 1925 and the Trustee Act                2000** |
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| **8.1  ** | **Advice:**                The Trustee may act on the opinion or advice of, or information obtained                from, any expert and will not be responsible to anyone for any loss                occasioned by so acting whether such advice is obtained or addressed                to                the Issuer, the Trustee or any other person. Any such opinion, advice                or                information may be sent or obtained by letter, telex or fax and the                Trustee will not be liable to anyone for acting in good faith on                any                opinion, advice or information purporting to be conveyed by such                means                even if it contains some error or is not authentic and notwithstanding                any                limitation on liability contained therein, monetary or                otherwise. |
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| **8.2  ** | **Trustee                to Assume Performance:**The                Trustee need not notify anyone of the execution of this Trust Deed                nor                shall it be bound to take any steps to ascertain whether any Event                of                Default, Potential Event of Default, Restructuring Event, Potential                Restructuring Event or Negative Rating Event has happened and, until                it                shall have actual knowledge or express notice to the contrary, the                Trustee                shall be entitled to assume that no Event of Default, Potential Event                of                Default, Restructuring Event, Potential Restructuring Event or Negative                Rating Event has happened and that the Issuer is observing and performing                all its obligations under this Trust Deed, the Notes and the                Coupons. |
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| **8.3  ** | **Resolutions                of Noteholders:**                The Trustee will not be responsible for having acted in good faith                on a                resolution purporting to have been passed at a meeting of Noteholders                in                respect of which minutes have been made and signed even if it is                later                found that there was a defect in the constitution of the meeting                or the                passing of the resolution or that the resolution was not valid or                binding                on the Noteholders or                Couponholders. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.4  ** | **Certificate                signed by Authorised Signatories:**                If                the Trustee, in the exercise of its functions, requires to be satisfied                or                to have information as to any fact or the expediency of any act,                it may                call for and accept as sufficient evidence of that fact or the expediency                of that act a certificate signed by any two Authorised Signatories                of the                Issuer as to that fact or to the effect that, in their opinion, that                act                is expedient and the Trustee need not call for further evidence and                will                not be responsible for any loss occasioned by acting on such a                certificate. The Trustee shall be entitled to rely on any certificate                of                two Authorised Signatories of the Issuer where the Issuer procures                the                delivery of the same pursuant to its obligations to do so under the                Conditions or this Trust Deed and such certificate shall be binding                on the                Issuer, the Trustee and the                Noteholders. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.5  ** | **Report                of the Auditors:**                The Trustee shall be entitled to rely on any certificate or report                of the                Auditors whether or not such report is addressed to the Trustee and                notwithstanding that such report and/or any engagement letter or                other                document entered into by the Trustee contains a monetary or other                limit on                the liability of the Auditors. Such report shall, in the absence                of                manifest error, be conclusive and binding on all parties, and the                Trustee                shall not be responsible for any loss occasioned by acting on any                such                report. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.6  ** | **Deposit                of Documents:**                The Trustee may appoint as custodian, on any terms, any bank or entity                whose business includes the safe custody of documents or any lawyer                or                firm of lawyers believed by it to be of good repute and may deposit                this                Trust Deed and any other documents with such custodian and pay all                sums                due in respect thereof. The Trustee is not obliged to appoint a custodian                of securities payable to bearer. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.7  ** | **Discretion:**                The Trustee will have absolute and uncontrolled discretion as to                the                exercise of its powers, trusts and discretions and will not be responsible                for any loss, liability, cost, claim, action, demand, expense or                inconvenience which may result from their exercise or                non-exercise. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.8  ** | **Agents:**                Whenever it considers it expedient in the interests of the Noteholders,                the Trustee may, in the conduct of its trust business, instead of                acting                personally, employ and pay an agent selected by it, whether or not                a                lawyer or other professional person, to transact or conduct, or concur                in                transacting or conducting, any business and to do or concur in doing                all                acts required to be done by the Trustee (including the receipt and                payment                of money). |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.9  ** | **Delegation:**                Whenever it considers it expedient in the interests of the Noteholders,                the Trustee may delegate to any person on any terms (including power                to                sub-delegate) all or any of its functions. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.10  ** | **Nominees:**In                relation to any asset held by it under this Trust Deed, the Trustee                may                appoint any person to act as its nominee on any                terms. |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.11  ** | **Forged                Notes:**                The Trustee will not be liable to the Issuer or any Noteholder or                Couponholder by reason of having accepted as valid or not having                rejected                any Note or Coupon purporting to be such and later found to be forged                or                not authentic. |
|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.12  ** | **Confidentiality:**                Unless ordered to do so by a court of competent jurisdiction the                Trustee                shall not be required to disclose to any Noteholder or Couponholder                any                confidential financial or other information made available to the                Trustee                by the Issuer and no Noteholder or Couponholder shall be entitled                to take                any action to obtain such information from the                Trustee. |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.13  ** | **Determinations                Conclusive:**                As                between itself and the Noteholders and Couponholders the Trustee                may in                its absolute discretion determine all questions and doubts arising                in                relation to any of the provisions of this Trust Deed including (without                limitation) determination of whether or not a default in performance                by                the Issuer of any obligation under the Notes or Trust Deed is materially                prejudicial to the interests of Noteholders and Couponholders. Such                determinations, whether made upon such a question actually raised                or                implied in the acts or proceedings of the Trustee, will be conclusive                and                shall bind the Trustee, the Noteholders and the                Couponholders. |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.14  ** | **Currency                Conversion:**                Where it is necessary or desirable to convert any sum from one currency                to                another, it will (unless otherwise provided hereby or required by                law) be                converted at such rate or rates, in accordance with such method and                as at                such date as may reasonably be specified by the Trustee but having                regard                to current rates of exchange, if available. Any rate, method and                date so                specified will be binding on the Issuer, the Noteholders and the                Couponholders. |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.15  ** | **Events                of Default:**                The Trustee may determine whether or not an Event of Default or Potential                Event of Default is in its opinion capable of remedy and/or materially                prejudicial to the interests of the Noteholders. Any such determination                will be conclusive and binding on the Issuer, the Noteholders and                the                Couponholders. |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.16  ** | **Payment                for and Delivery of Notes:**                The Trustee will not be responsible for the receipt or application                by the                Issuer of the proceeds of the issue of the Notes, any exchange of                Notes or                the delivery of Notes to the persons entitled to                them. |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.17  ** | **Notes                held by the Issuer etc.:**                In                the absence of knowledge or express notice to the contrary, the Trustee                may assume without enquiry (other than requesting a certificate under                Clause 6.12) that no Notes are for the time being held by or on behalf                of                the Issuer or its affiliates. |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.18  ** | **Responsibility                for agents etc.:**If                the Trustee exercises reasonable care in selecting any custodian,                agent,                delegate or nominee appointed under this clause (an “**Appointee**”),                it will not have any obligation to supervise the Appointee or be                responsible for any loss, liability, cost, claim, action, demand                or                expense incurred by reason of the Appointee’s misconduct or default or the                misconduct or default of any substitute appointed by the Appointee. |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.19  ** | **Responsibility                for Rating:**                The Trustee shall (a) have no responsibility for the maintenance                of any                rating of the Notes by any Rating Agency and (b) shall not be liable                to                Noteholders if any exercise by it of its trusts, powers and discretions                results in a change to the rating assigned by any Rating Agency to                any                class of Notes. |
|----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.20  ** | **No                Liability for error of judgement:**                The Trustee shall not be liable for any error of judgement made in                good                faith by any officer and/or employee of the Trustee in the administration                of its corporate matters. |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.21  ** | **Clearing                Systems:**                The Trustee may call for any certificate or other document to be                issued by                Euroclear, Clearstream, Luxembourg or any other clearing system through                which the Notes are cleared as to the principal amount of Notes                represented by a Global Note standing to the account of any person                and may                have regard to any information provided to it by Euroclear, Clearstream,                Luxembourg or such other clearing system as to the identity (either                individually or by category) of any of their accountholders with                entitlements to such Global Note, and the Trustee may consider such                interests as if such accountholders were the holders of any such                Global                Note. Any such certificate, document or information may be accepted                and                fully relied upon by the Trustee. The Trustee shall not be liable                to any                person by reason of having accepted as valid or accurate or not having                rejected any certificate, document or information to such effect                purporting to be issued by Euroclear, Clearstream, Luxembourg or                such                other clearing system and subsequently found to be forged, not authentic                or inaccurate. |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.22  ** | **Legal                Opinions:**The                Trustee shall not be responsible to any person for failing to request,                require or receive any legal opinion relating to the Notes or for                checking                or commenting upon the content of any such legal opinion and shall                not be                responsible for any loss, damage, cost, charge, claim, demand, expense,                judgment, action, proceeding or other liability whatsoever incurred                thereby. |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.23  ** | **No                Action:** |
|----------------------|-------------------------------|

| (i)   | The                Trustee shall not be bound to take any action in connection with                this                Trust Deed or any obligations arising pursuant thereto, including,                without                prejudice to the generality of the foregoing, forming any opinion                or                employing any financial adviser, where it is not satisfied that the                Issuer                will be able to indemnify it against all loss, damage, cost, charge,                claim, demand, expense, judgment, action, proceeding or other liability                whatsoever incurred thereby which may be incurred in connection with                such                action and may demand prior to taking any such action that there                be paid                to it in advance such sums as it reasonably considers (without prejudice                to any further demand) shall be sufficient so to indemnify it and                on such                demand being made the Issuer shall be obliged to make payment of                all such                sums in full. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | No                provision of this Trust Deed shall require the Trustee to do anything                which may (i) be illegal or contrary to applicable law or regulation;                or                (ii) cause it to expend or risk its own funds or otherwise incur                any loss,                damage, cost, charge, claim, demand, expense, judgment, action, proceeding                or other liability whatsoever incurred thereby in the performance                of any                of its duties or in the exercise of any of its rights, powers or                discretions, if it shall have reasonable grounds for believing that                repayment of such funds or adequate indemnity against such risk or                loss,                damage, cost, charge, claim, demand, expense, judgment, action, proceeding                or other liability whatsoever is not assured to                it. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.24  ** | **Professional****and other charges**:                Any trustee of the trust presents being a lawyer, accountant, broker                or                other person engaged in any profession or business shall be entitled                to                charge and be paid all usual and proper professional and other charges                for                business transacted and acts done by him or his firm in connection                with                the trusts of this Trust Deed or the Paying Agency Agreement and                also his                reasonable charges in addition to disbursements for all other work                and                business done and all time spent by him or his firm in connection                with                matters arising in connection with this Trust Deed including matters                which                might or should have been attended to in person by a trustee not                being a                banker, accountant or other professional                person. |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.25  ** | **Holder                Absolute Owner**:                The Issuer, any Paying Agent and the Trustee may (to the fullest                extent                permitted by applicable laws) deem and treat the bearer of any Note                or                Coupon as the absolute owner for all purposes (whether or not the                Note or                Coupon shall be overdue and notwithstanding any notice of ownership                or                writing on the Note or Coupon or any notice of previous loss or theft                of                the Note or Coupon or of any trust or interest therein) and shall                not be                required to obtain any proof thereof or as to the identity of such                bearer. |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.26  ** | **Enforcement**:                The Trustee may at any time, at its discretion and without notice,                take                such proceedings against the Issuer as it may think fit to enforce                the                provisions of the Trust Deed, the Notes and the Coupons, but it shall                not                be bound to take any such proceedings or any other action in relation                to                the Trust Deed, the Notes or the Coupons unless (a) it has been so                directed by an Extraordinary Resolution of the Noteholders or so                requested                in writing by the holders of at least one-quarter in outstanding                nominal                amount of the Notes then outstanding and (b) it has been indemnified                and/or secured to its satisfaction. No Noteholder or Couponholder                shall be                entitled to proceed directly against the Issuer unless the Trustee,                having                become bound so to proceed, fails so to do within a reasonable period                and                the failure shall be continuing. |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **9  ** | **Trustee                Liable for Negligence** |
|-------------------|--------------------------------------------------|

| **10  ** | **Waiver                and Proof of Default** |
|--------------------|------------------------------------------------|

| **10.1  ** | **Waiver:**                The Trustee may, without the consent of the Noteholders or Couponholders                and without prejudice to its rights in respect of any subsequent                breach,                from time to time and at any time, if in its opinion the interests                of the                Noteholders will not be materially prejudiced thereby, waive or authorise,                on such terms as seem expedient to it, any breach or proposed breach                by                the Issuer of this Trust Deed or the Conditions or determine that                an Event                of Default, Potential Event of Default, Restructuring Event or Potential                Restructuring Event will not be treated as such provided that the                Trustee                will not do so in contravention of an express direction given by                an                Extraordinary Resolution or a request made pursuant to Condition                9. No                such direction or request will affect a previous waiver, authorisation                or                determination. Any such waiver, authorisation or determination will                be                binding on the Noteholders and the Couponholders and, if the Trustee                so                requires, will be notified to the Noteholders as soon as                practicable. |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **10.2  ** | **Proof                of Default:**                Proof that the Issuer has failed to pay a sum due to the holder of                any one                Note or Coupon will (unless the contrary be proved) be sufficient                evidence                that it has made the same default as regards all other Notes or Coupons                which are then payable. |
|----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **11  ** | **Trustee                not Precluded from Entering into                Contracts** |
|--------------------|--------------------------------------------------------------------------------------|

| **12  ** | **Modification                and Substitution** |
|--------------------|--------------------------------------------------|

| **12.1  ** | **Modification:**                The Trustee may agree without the consent of the Noteholders or                Couponholders to any modification to this Trust Deed which is, in                its                opinion, of a formal, minor or technical nature or to correct a manifest                error. The Trustee may also so agree to any modification to this                Trust                Deed which is in its opinion not materially prejudicial to the interests                of the Noteholders, but such power does not extend to any such                modification as is mentioned in the proviso to paragraph 2 of Schedule                3. |
|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **12.2  ** | **Substitution:** |
|----------------------|-------------------|

| **12.2.1  ** | The                Trustee may, without the consent of the Noteholders or Couponholders,                agree to the substitution of the Issuer’s successor in business or any                Subsidiary of the Issuer (other than an Excluded Subsidiary) (the                “**Substituted                Obligor**”)                in place of the Issuer (or of any previous substitute under this                sub-Clause) as the principal debtor under this Trust Deed, the Notes                and                the Coupons provided that: |
|------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | a                deed is executed or undertaking given by the Substituted Obligor                to the                Trustee, in form and manner satisfactory to the Trustee, agreeing                to be                bound by this Trust Deed, the Notes and the Coupons (with consequential                amendments as the Trustee may deem appropriate) as if the Substituted                Obligor had been named in this Trust Deed, the Notes and the Coupons                as                the principal debtor in place of the Issuer |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | if                the Substituted Obligor is subject generally to the taxing jurisdiction                of                a territory or any authority of or in that territory with power to                tax                (the “**Substituted                Territory**”)                other than the territory to the taxing jurisdiction of which (or                to any                such authority of or in which) the Issuer is subject generally (the                “**Issuer’s                Territory**”),                the Substituted Obligor will (unless the Trustee otherwise agrees)                give to                the Trustee an undertaking satisfactory to the Trustee in terms                corresponding to Condition 7 with the substitution for the references                in                that Condition to the Issuer’s Territory of references to the Substituted                Territory whereupon the Trust Deed, the Notes and the Coupons will                be read                accordingly |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | if                any two Authorised Signatories of the Substituted Obligor certify                that it                will be solvent immediately after such substitution, the Trustee                need not                have regard to the Substituted Obligor’s financial condition, profits or                prospects or compare them with those of the Issuer |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi)   | the                Trustee is satisfied that the interests of the Noteholders will not                be                materially prejudiced by the                substitution |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vii)   | the                Issuer and the Substituted Obligor comply with such other requirements                as                the Trustee may direct in the interests of the Noteholders                and |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (viii)   | (unless                the Issuer’s successor in business is the Substituted Obligor as the                principal debtor under this Trust Deed, the Notes and the Coupons)                the                obligations of the Substituted Obligor as the principal debtor under                this                Trust Deed, the Notes and the Coupons are guaranteed by the Issuer                (with                consequential amendments as necessary) to the Trustee’s                satisfaction. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **12.2.2  ** | **Release                of Substituted Issuer:**                An                agreement by the Trustee pursuant to Clause 12.2 will, if so expressed,                release the Issuer (or a previous substitute) from any or all of                its                obligations under this Trust Deed, the Notes and the Coupons. Notice                of                the substitution will be given to the Noteholders within 14 days                of the                execution of such documents and compliance with such                requirements. |
|------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **12.2.3  ** | **Completion                of Substitution:**                On                completion of the formalities set out in Clause 12.2, the Substituted                Obligor will be deemed to be named in this Trust Deed, the Notes                and the                Coupons as the principal debtor in place of the Issuer (or of any                previous                substitute) and this Trust Deed, the Notes and the Coupons will be                deemed                to be amended as necessary to give effect to the                substitution. |
|------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **13  ** | **Appointment,                Retirement and Removal of the                Trustee** |
|--------------------|--------------------------------------------------------------------------------------|

| **13.1  ** | **Appointment:**                Subject as provided in clause 13.2 below, the Issuer has the power                of                appointing new trustees but no-one may be so appointed unless previously                approved by an Extraordinary Resolution. A trust corporation will                at all                times be a Trustee and may be the sole Trustee. Any appointment of                a new                Trustee will be notified by the Issuer to the Noteholders as soon                as                practicable. |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **13.2  ** | **Retirement                and Removal:**                Any Trustee may retire at any time on giving at least three months’                written notice to the Issuer without giving any reason or being                responsible for any costs occasioned by such retirement and the                Noteholders may by Extraordinary Resolution remove any Trustee provided                that the retirement or removal of a sole trust corporation will not                be                effective until a trust corporation is appointed as successor Trustee.                If                a sole trust corporation gives notice of retirement or an Extraordinary                Resolution is passed for its removal, the Issuer will use all reasonable                endeavours to procure that another trust corporation be appointed                as                Trustee and if it does not procure the appointment of a new trustee                within                30 days of the expiry of the Trustee’s notice referred to in this Clause,                the Trustee shall be entitled to procure forthwith a new                trustee. |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **13.3  ** | **Co-Trustees:**                The Trustee may, despite Clause 13.1, by written notice to the Issuer                appoint anyone to act as an additional Trustee jointly with the                Trustee: |
|----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **13.3.1  ** | if                the Trustee considers the appointment to be in the interests of the                Noteholders and/or the                Couponholders |
|------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| **13.3.2  ** | to                conform with a legal requirement, restriction or condition in a                jurisdiction in which a particular act is to be performed                or |
|------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **13.3.3  ** | to                obtain a judgment or to enforce a judgment or any provision of this                Trust                Deed in any jurisdiction. |
|------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| **13.4  ** | **Competence                of a Majority of Trustees:**                If                there are more than two Trustees the majority of them will be competent                to                perform the Trustee’s functions provided the majority includes a trust                corporation. |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **13.5  ** | **Merger:**                Any corporation into which the Trustee may be merged or converted                or with                which it may be consolidated, or any corporation resulting from any                merger, conversion or consolidation to which the Trustee shall be                a party,                or any corporation succeeding to all or substantially all the corporate                trust business of the Trustee, shall be the successor of the Trustee                hereunder, provided such corporation shall be otherwise qualified                and                eligible under this Clause, without the execution or filing of any                paper                or any further act on the part of the parties                hereto. |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **14  ** | **Couponholders** |
|--------------------|-------------------|

| **15  ** | **Currency                Indemnity** |
|--------------------|---------------------------------------|

| **15.1  ** | **Currency                of Account and Payment:**                Pounds sterling (the “**Contractual                Currency**”)                is the sole currency of account and payment for all sums payable                by the                Issuer under or in connection with this Trust Deed, the Notes and                the                Coupons, including damages. |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **15.2  ** | **Extent                of discharge:**                An                amount received or recovered in a currency other than the Contractual                Currency (whether as a result of, or of the enforcement of, a judgment                or                order of a court of any jurisdiction, in the insolvency, winding-up                or                dissolution of the Issuer or otherwise), by the Trustee or any Noteholder                or Couponholder in respect of any sum expressed to be due to it from                the                Issuer will only discharge the Issuer to the extent of the Contractual                Currency amount which the recipient is able to purchase with the                amount so                received or recovered in that other currency on the date of that                receipt                or recovery (or, if it is not practicable to make that purchase on                that                date, on the first date on which it is practicable to do                so). |
|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **15.3  ** | **Indemnity:**                If                that Contractual Currency amount is less than the Contractual Currency                amount expressed to be due to the recipient under this Trust Deed,                the                Notes or the Coupons, the Issuer will indemnify it against any loss                sustained by it as a result. In any event, the Issuer will indemnify                the                recipient against the cost of making any such                purchase. |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **15.4  ** | **Indemnity                separate:**                The indemnities in this Clause 15 and in Clause 7.4 constitute separate                and independent obligations from the other obligations in this Trust                Deed,                will give rise to a separate and independent cause of action, will                apply                irrespective of any indulgence granted by the Trustee and/or any                Noteholder or Couponholder and will continue in full force and effect                despite any judgment, order, claim or proof for a liquidated amount                in                respect of any sum due under this Trust Deed, the Notes and/or the                Coupons                or any other judgment or order. |
|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **16  ** | **Communications** |
|--------------------|--------------------|

| **17  ** | **Further                Issues** |
|--------------------|-----------------------------------|

| **17.1  ** | **Supplemental                Trust Deed:**                If                the Issuer issues further securities as provided in the Conditions,                the                Issuer shall, before their issue, execute and deliver to the Trustee                a                deed supplemental to this Trust Deed containing such provisions                (corresponding to any of the provisions of this Trust Deed) as the                Trustee                may require. |
|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **17.2  ** | **Meetings                of Noteholders:**                If                the Trustee so directs, Schedule 3 shall apply equally to Noteholders                and                to holders of any securities issued pursuant to the Conditions as                if                references in it to “Notes” and “Noteholders” were also to such securities                and their holders respectively. |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **18  ** | **Governing                Law and Submission to                Jurisdiction** |
|--------------------|--------------------------------------------------------------------------------|

| **18.1  ** | **Governing                Law**:                This Trust Deed shall be governed by and construed in accordance                with                English law. |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **18.2  ** | **Jurisdiction**:                The courts of England are to have jurisdiction to settle any disputes                which may arise out of or in connection with this Agreement and                accordingly any legal action or proceedings arising out of or in                connection with this Agreement (“**Proceedings**”)                may be brought in such courts. The Trustee irrevocably submits to                the                jurisdiction of such courts and waives any objection to Proceedings                in                such courts whether on the ground of venue or on the ground that                the                Proceedings have been brought in an inconvenient forum. These submissions                are for the benefit of the Issuer and shall not limit the right of                any of                it to take Proceedings in any other court of competent jurisdiction                nor                shall the taking of Proceedings in any one or more jurisdictions                preclude                the taking of Proceedings in any other jurisdiction (whether concurrently                or not). |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **18.3  ** | **Service                of Process**:                The Trustee irrevocably appoints HSBC Bank plc of 8 Canada Square,                London                E14 5HQ as its authorised agent for service of process in England.                If for                any reason such agent shall cease to be such agent for the service                of                process, the Trustee shall forthwith appoint a new agent for service                of                process in England and deliver to the Issuer a copy of the new agent’s                acceptance of that appointment within 30 days. Nothing shall affect                the                right to serve process in any other manner permitted by                law. |
|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **19  ** | **Counterparts** |
|--------------------|------------------|

----

**Schedule      1**

**Form      of Definitive Note**

| Denomination  | ISIN          | Series  | Certif.                No.  |
|--------------------|--------------------|--------------|----------------------------------|
| £50,000  | XS0276994059  |         |                             |

**WESTERN      POWER DISTRIBUTION (SOUTH WEST) PLC**

**(Incorporated      with limited liability in England and Wales)**

**£105,000,000**

**1.541      per cent. Index-Linked Notes due 2053**

**Notes**
**Issuer**
**Conditions**

**WESTERN      POWER DISTRIBUTION (SOUTH WEST) PLC**

----

**Terms      and Conditions**

** **
**Notes**
**Issuer**
**Trust      Deed**
**Issue**
**Date**
**Trustee**
**Noteholders**
**Couponholders**
**Coupons**
**Talons**

**Agency      Agreement**

| **1  ** | **FORM,                DENOMINATION AND TITLE** |
|-------------------|-------------------------------------------------|

| **1.1  ** | **Form                and Denomination** |
|---------------------|------------------------------------------|

| **1.2  ** | **Title** |
|---------------------|-----------|

| **1.3  ** | **Holder                Absolute Owner** |
|---------------------|------------------------------------------|

| **2  ** | **STATUS** |
|-------------------|------------|

*pari      passu*

| **3  ** | **NEGATIVE                PLEDGE** |
|-------------------|------------------------------------|

| **3.1  ** | **Negative                Pledge** |
|---------------------|------------------------------------|

**Security      Interest**

| (a)   | all                amounts payable by the Issuer under the Notes, the Coupons and the                Trust                Deed are secured equally and rateably with the Relevant Indebtedness                or                guarantee, as the case may be, by the same Security Interest, in                each case                to the satisfaction of the Trustee;                or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | such                other Security Interest or guarantee or other arrangement (whether                or not                including the giving of a Security Interest) is provided in respect                of all                amounts payable by the Issuer under the Notes, the Coupons and the                Trust                Deed either (i) as the Trustee shall in its absolute discretion deem                not                materially less beneficial to the interests of the Noteholders or                (ii) as                shall be approved by an Extraordinary Resolution (as defined in the                Trust                Deed) of the Noteholders, |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **3.2  ** | **Restriction                on distribution of                dividends** |
|---------------------|----------------------------------------------------------------------------|

| **3.3  ** | **Definitions** |
|---------------------|-----------------|

**Capital      and Reserves**

| (a)   | the                amount paid up or credited as paid up on the share capital of the                Issuer;                and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the                total of the capital, revaluation and revenue reserves of the Group                (as                defined below), including any share premium account, capital redemption                reserve and credit balance on the profit and loss account, but excluding                sums set aside for taxation and amounts attributable to outside                shareholders in Subsidiary Undertakings (as defined below) and deducting                any debit balance on the profit and loss                account, |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**consolidated**

**Distribution      Licence**

**Distribution      Subsidiary**

**Group**

**Net      Debt**

| (a)   | amounts                credited to current accounts or deposits and certificates of deposit                (with                a term not exceeding three months) at, or issued by, any bank, building                society or other financial                institution; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | cash                in hand; and |
|-----------------|----------------------------------|

| (c)   | the                lower of book and market value (calculated, where relevant, by reference                to their bid price) of gilts issued by the United Kingdom                Government, |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Regulatory      Asset Base**
**OFGEM**

**Relevant      Indebtedness**

**Subsidiary**

**Subsidiary      Undertaking**

| **4  ** | **INTEREST** |
|-------------------|--------------|

| **4.1  ** | **Interest                Rate and Interest Payment                Dates** |
|---------------------|----------------------------------------------------------------------------|

**Interest      Payment Date**

| **4.2  ** | **Interest                Accrual** |
|---------------------|-------------------------------------|

| **4.3  ** | **Calculation                of Broken Interest** |
|---------------------|---------------------------------------------------|

**Accrual**
**Date**

| **5  ** | **PAYMENTS                AND EXCHANGES OF TALONS** |
|-------------------|-----------------------------------------------------|

| **5.1  ** | **Payments                in respect of Notes** |
|---------------------|-------------------------------------------------|

| **5.2  ** | **Method                of Payment** |
|---------------------|--------------------------------------|

| **5.3  ** | **Missing                Unmatured Coupons** |
|---------------------|----------------------------------------------|

| **5.4  ** | **Payments                subject to Applicable Laws** |
|---------------------|--------------------------------------------------------|

| **5.5  ** | **Payment                only on a Presentation                Date** |
|---------------------|-----------------------------------------------------------------------|

**Presentation      Date**

| (a)   | is                or falls after the relevant due                date; |
|-----------------|------------------------------------------------------------------------|

| (b)   | is                a Business Day in the place of the specified office of the Paying                Agent at                which the Note or Coupon is presented for payment;                and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | in                the case of payment by credit or transfer to a pounds sterling account                in                London as referred to above), is a Business Day in                London. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Business      Day**

| **5.6  ** | **Exchange                of Talons** |
|---------------------|---------------------------------------|

| **5.7  ** | **Initial                Paying Agents** |
|---------------------|------------------------------------------|

| (a)   | there                will at all times be a Principal Paying                Agent; |
|-----------------|------------------------------------------------------------------------------------|

| (b)   | there                will at all times be at least one Paying Agent (which may be the                Principal                Paying Agent) having its specified office in a European city which                so long                as the Notes are admitted to official listing on the London Stock                Exchange                plc shall be London or such other place as the UK Listing Authority                may                approve; and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | there                will at all times be a Paying Agent in a Member State of the European                Union that is not obliged to withhold or deduct tax pursuant to European                Council Directive 2003/48/EC or any law implementing or complying                with, or                introduced in order to conform to, such                Directive. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **6  ** | **REDEMPTION                AND PURCHASE** |
|-------------------|--------------------------------------------|

| **6.1  ** | **Redemption                at Maturity** |
|---------------------|-------------------------------------------|

| **6.2  ** | **Redemption                at the option of the Issuer on 1 December                2026** |
|---------------------|---------------------------------------------------------------------------------------------|

**Redemption      Price**

| (i)   | their                outstanding nominal amount multiplied by the Index Ratio applicable                to the                date fixed for redemption; and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | the                price (multiplied by the Index Ratio applicable to the date fixed                for                redemption), as determined by an Independent Financial Adviser (as                defined                below) and expressed as a percentage rounded to three decimal places                (0.0005 being rounded down) at which the Gross Real Yield on the                Notes, if                they were to be purchased at such price on the third dealing day                prior to                the due date of redemption and calculated on the basis that they                remain                outstanding to 1 December 2053, would be equal to the Gross Real                Yield on                such dealing day of the Reference Stock (as defined below) on the                basis of                the middle market price of the Reference Stock prevailing at 11:00                a.m.                (London time) on such dealing day, as determined by an independent                financial adviser, independent investment bank or other expert (or                such                other person as the Trustee may approve) (an “**Independent                Financial Adviser**”). |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Reference      Stock**

**Gross      Real Yield**

| **6.3  ** | **Redemption                for Taxation Reasons** |
|---------------------|----------------------------------------------------|

| (a)   | as                a result of any change in, or amendment to, the laws or regulations                of a                Relevant Jurisdiction (as defined in Condition 7), or any change                in the                application or official interpretation of the laws or regulations                of a                Relevant Jurisdiction, which change or amendment becomes effective                after                29 November 2006, on the next Interest Payment Date the Issuer would                be                required to pay additional amounts as provided or referred to in                Condition                7; and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the                requirement cannot be avoided by the Issuer taking reasonable measures                available to it, |
|-----------------|---------------------------------------------------------------------------------------------------------------------------|

| **6.4  ** | **Redemption                at the option of Noteholders on a Restructuring                Event** |
|---------------------|----------------------------------------------------------------------------------------------------|

| (a)   |   |
|-----------------|--------|

| (i)   | If,                at any time while any of the Notes remains outstanding, a Restructuring                Event (as defined below) occurs and prior to the commencement of                or during                the Restructuring Period (as defined                below): |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (A)   | an                independent financial adviser (as described below) shall have certified                in                writing to the Trustee that such Restructuring Event will not be                or is                not, in its opinion, materially prejudicial to the interests of the                Noteholders; or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B)   | if                there are Rated Securities (as defined below), each Rating Agency                (as                defined below) that at such time has assigned a current rating to                the                Rated Securities confirms in writing to the Trustee that it will                not be                withdrawing or reducing the then current rating assigned to the Rated                Securities by it from an investment grade rating (BBB-/Baa3, or their                respective equivalents for the time being, or better) to a non-investment                grade rating (BB+/Bal, or their respective equivalents for the time                being,                or worse) or, if the Rating Agency shall have already rated the Rated                Securities below investment grade (as described above), the rating                will                not be lowered by one full rating category or more, in each case                as a                result, in whole or in part, of any event or circumstance comprised                in or                arising as a result of the applicable Restructuring                Event, |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | If,                at any time while any of the Notes remains outstanding, a Restructuring                Event occurs and (subject to Condition                6.4(a)(i)): |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (A)   | within                the Restructuring Period, either: |
|-----------------|---------------------------------------------------------|

| (B)   | an                independent financial adviser shall have certified in writing to                the                Trustee that such Restructuring Event is, in its opinion, materially                prejudicial to the interests of the Noteholders (a “**Negative                Certification**”), |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Restructuring      Put Option**

| (b)   | Promptly                upon the Issuer becoming aware of the occurrence of a Put Event (as                defined below), and in any event not later than 14 days after the                occurrence of a Put Event, the Issuer shall, and at any time upon                the                Trustee becoming similarly so aware the Trustee may, and if so requested                by the holders of at least one-quarter in nominal amount of the Notes                then                outstanding shall (and subject to it being indemnified and/or secured                to                its satisfaction), give notice (a “**Put                Event Notice**”)                to the Noteholders in accordance with Condition 12 specifying the                nature                of the Put Event and the procedure for exercising the Restructuring                Put                Option. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | To                exercise the Restructuring Put Option, the holder of a Note must                deliver                at the specified office of any Paying Agent on any Business Day (as                defined in Condition 5.5) at the place of such specified office falling                within the Put Period, a duly signed and completed notice of exercise                in                the form (for the time being current and which may, if this Note                is held                in a clearing system, be any form acceptable to the clearing system                delivered in a manner acceptable to the clearing system) obtainable                from                any specified office of any Paying Agent (a “**Put                Notice**”)                and in which the holder must specify a bank account (or, if payment                is to                be made by cheque, an address) to which payment is to be made under                this                paragraph accompanied by such Notes or evidence satisfactory to the                Paying                Agent concerned that such Notes will, following the delivery of the                Put                Notice, be held to its order or under its control. A Put Notice given                by a                holder of any Note shall be irrevocable except where, prior to the                due                date of redemption, an Event of Default has occurred and is continuing,                in                which event such holder, at its option, may elect by notice to the                Issuer                to withdraw the Put Notice. For the purposes of this Condition, the                “**Put                Period**”                shall mean the period of 45 days after that on which a Put Event                Notice is                given. Subject to the relevant Noteholder having complied with this                Condition, the Issuer shall redeem or, at the option of the Issuer,                purchase (or procure the purchase of) the relevant Note on the fifteenth                day after the date of expiry of the Put Period (the “**Put                Date**”)                unless previously redeemed or                purchased. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | For                the purposes of these Conditions: |
|-----------------|------------------------------------------------------|

| (i)   | A                “**Negative                Rating Event**”                shall be deemed to have occurred if (A) the Issuer does not, either                prior                to or not later than 14 days after the date of a Negative Certification                in                respect of the relevant Restructuring Event, seek, and thereupon                use all                reasonable endeavours to obtain, a rating of the Notes or any other                unsecured and unsubordinated debt of the Issuer (or of any Subsidiary                of                the Issuer and which is guaranteed on an unsecured and unsubordinated                basis by the Issuer) having an initial maturity of five years or                more from                a Rating Agency or (B) if it does so seek and use such endeavours,                it is                unable, as a result of such Restructuring Event, to obtain such a                rating                of at least investment grade (BBB-/Baa3, or their respective equivalents                for the time being). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | A                “**Put                Event**”                occurs on the date of the last to occur of (A) a Restructuring Event,                (B)                either a Rating Downgrade or, as the case may be, a Negative Rating                Event                and (C) the relevant Negative                Certification. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | “**Rating                Agency**”                means Standard & Poor’s Ratings Services, a division of The                McGraw-Hill Companies, Inc. or any of its subsidiaries and their                successors, Moody’s Investors Service Limited or any of its subsidiaries                and their successors, Fitch Ratings Limited or any of its subsidiaries                and                their successors or any rating agency substituted for any of them                (or any                permitted substitute of them) by the Issuer from time to time with                the                prior written approval of the                Trustee. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | A                “**Rating                Downgrade**”                shall be deemed to have occurred in respect of a Restructuring Event                if                the then current rating assigned to the Rated Securities by any Rating                Agency (whether provided by a Rating Agency at the invitation of                the                Issuer or by its own volition) is withdrawn or reduced from an investment                grade rating (BBB-/Baa3) or their respective equivalents for the                time                being, or better) to a non-investment grade rating (BB+/Bal) or their                respective equivalents for the time being, or worse) or, if the Rating                Agency shall then have already rated the Rated Securities below investment                grade (as described above), the rating is lowered one full rating                category. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | “**Rated                Securities**”                means the Notes, if at any time and for so long as they have a rating                from                a Rating Agency, and otherwise any other unsecured and unsubordinated                debt                of the Issuer (or of any Subsidiary of the Issuer and which is guaranteed                on an unsecured and unsubordinated basis by the Issuer) having an                initial                maturity of five years or more which is rated by a Rating                Agency. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi)   | “**Restructuring                Event**”                means the occurrence of any one or more of the following                events: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (A)   | (x)                the Secretary of State for Trade and Industry (or any successor)                giving                any Distribution Subsidiary and/or the Issuer written notice of any                revocation of its Distribution Licence or (y) any Distribution Subsidiary                and/or the Issuer agreeing in writing with the Secretary of State                for                Trade and Industry (or any successor) to any revocation or surrender                of                its Distribution Licence or (z) any legislation (whether primary                or                subordinate) being enacted terminating or revoking the Distribution                Licence of any Distribution Subsidiary and/or the Issuer, except                in any                such case in circumstances where a licence or licences on substantially                no                less favourable terms is or are granted to (1) the Issuer or a                wholly-owned Subsidiary of the Issuer (the “**Relevant                Subsidiary**”),                and in the case of such Relevant Subsidiary at the time of such grant                it                either executes in favour of the Trustee an unconditional and irrevocable                guarantee in respect of the Notes in such form as the Trustee may                approve                or becomes the primary obligor under the Notes in accordance with                Condition 14; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B)   | any                modification (other than a modification which is of a formal, minor                or                technical nature) being made to the terms and conditions of any                Distribution Subsidiary’s or the Issuer’s Distribution Licence unless two                directors of the Distribution Subsidiary or, as the case may be,                of the                Issuer, have certified to the Trustee that the modified terms and                conditions are not materially less favourable to the business of                the                Distribution Subsidiary or, as the case may be, of the Issuer;                or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C)   | any                legislation (whether primary or subordinate) is enacted which removes,                qualifies or amends (other than an amendment which is of a formal,                minor                or technical nature) the functions and duties of the Secretary of                State                for Trade and Industry (or any successor) and/or the Gas and Electricity                Markets Authority (or any successor) under section 3A of the Electricity                Act 1989, as amended by the Utilities Act 2000 (as this may be amended                from time to time), unless two directors of the Issuer have certified                to                the Trustee that such removal, qualification or amendment does not                have a                materially adverse effect (as defined in the Trust Deed) on the financial                condition of the Issuer or any Distribution                Subsidiary. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vii)   | “**Restructuring                Period**”                means: |
|-------------------|-----------------------------------------------------------------------------|

| (A)   | if                at the time a Restructuring Event occurs there are Rated Securities,                the                period of 90 days starting from and including the day on which that                Restructuring Event occurs; or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B)   | if                at the time a Restructuring Event occurs there are no Rated Securities,                the period starting from and including the day on which that Restructuring                Event occurs and ending on the day 90 days following the later of                (x) the                date (if any) on which the Issuer shall seek to obtain a rating as                contemplated by the definition of Negative Rating Event; (y) the                expiry of                the 14 days referred to in the definition of Negative Rating Event;                and                (z) the date on which a Negative Certification shall have been given                to                the Issuer in respect of that Restructuring                Event. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (viii)   | A                Rating Downgrade or a Negative Rating Event or a non-investment grade                rating for the purpose of Condition 6.4(a)(i)(B) shall be deemed                not to                have occurred as a result or in respect of a Restructuring Event                if the                Rating Agency making the relevant reduction in rating or, where                applicable, declining to assign a rating of at least investment grade                as                provided in this Condition 6.4 does not announce or publicly confirm                or                inform the Trustee in writing at its request that the reduction or,                where                applicable, declining to assign a rating of at least investment grade                was                the result, in whole or in part, of any event or circumstance comprised                in                or arising as a result of the applicable Restructuring                Event. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **6.5  ** | **Early                Redemption for Index                Reasons** |
|---------------------|----------------------------------------------------------------------|

| (i)   | a                substitute Index (as defined in Condition 8) pursuant to Condition                8.3(ii)(A) fails to be determined for three consecutive months;                and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | the                Indexation Adviser (as defined in Condition 8) has notified the Trustee                pursuant to Condition 8.3(iii)(A)(x) that publication of the Index                (as                defined in Condition 8) has ceased;                and |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | an                Expert (as defined in Condition 8) has been appointed pursuant to                Condition 8.3(iii)(B) but such Expert has failed to determine an                amendment                or substitution of the Index after at least 30 days of being required                to                do so pursuant to Condition                8.3(iii)(B), |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **6.6  ** | **Purchases** |
|---------------------|---------------|

| **6.7  ** | **Cancellations** |
|---------------------|-------------------|

| **6.8  ** | **Notices                Final** |
|---------------------|----------------------------------|

| **7  ** | **TAXATION** |
|-------------------|--------------|

| **7.1  ** | **Payment                without Withholding** |
|---------------------|------------------------------------------------|

**Taxes**

| (a)   | presented                for payment by or on behalf of, a holder who is liable to the Taxes                in                respect of the Note or Coupon by reason of his having some connection                with                a Relevant Jurisdiction other than the mere holding of the Note or                Coupon;                or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | presented                for payment by or on behalf of a holder who could lawfully avoid                (but has                not so avoided) such deduction or withholding by complying or procuring                that any third party complies with any statutory requirements or                by making                or procuring that any third party makes a declaration of non-residence                or                other similar claim for exemption to any tax authority in the place                where                the relevant Note or Coupon is presented;                or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | where                such withholding or deduction is imposed on a payment to an individual                and                is required to be made pursuant to European Council Directive 2003/48/EC                or any law implementing or complying with, or introduced in order                to                conform to, such Directive; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | presented                for payment by or on behalf of a holder who would have been able                to avoid                such withholding or deduction by presenting the relevant Note or                Coupon to                another Paying Agent in a Member State of the European Union;                or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | presented                for payment more than 30 days after the Relevant Date (as defined                below)                except to the extent that a holder would have been entitled to additional                amounts on presenting the same for payment on the last day of the                period                of 30 days assuming, whether or not such is in fact the case, that                day to                have been a Presentation Date (as defined in Condition                5.5). |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.2  ** | **Interpretation** |
|---------------------|--------------------|

**Relevant      Date**

**Relevant      Jurisdiction**

| **7.3  ** | **Additional                Amounts** |
|---------------------|---------------------------------------|

| **8  ** | **INDEXATION** |
|-------------------|----------------|

| **8.1  ** | **Definitions** |
|---------------------|-----------------|

**Base      Index Figure**

**business      day**

**Index**
**Index      Figure**
*Further      information regarding the United Kingdom Retail Prices Index (for all items)      can      be found at the following website: www.statistics.gov.uk/rpi*

**Index      Figure applicable**

| IFA                  = RPIm                  - 3 +                          (*Day                  of Calculation Date*                  - 1)                       x                  (RPIm                  - 2 -                  RPIm                  - 3)                            (*Days                  in month of Calculation Date*) |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Calculation      Date**

**IFA**

**RPIm-3**

**RPIm-2**

**Indexation      Adviser**

**Index      Ratio**

**Reference**
**Gilt**

| **8.2  ** | **Application                of the Index Ratio** |
|---------------------|---------------------------------------------------|

| **8.3  ** | **Changes                in circumstances affecting the                Index** |
|---------------------|--------------------------------------------------------------------------------|

| (i)   | If                the Index is changed by the substitution of a new base therefor,                then with                effect from, and including, the calendar month in which such substitution                takes effect: |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (A)   | the                definition of “**Index**”                and “**Index                Figure**”                shall be deemed to refer to the new month in substitution for January                1987                (or, as the case may be, such other month as may have been substituted                therefor under this sub-paragraph (i));                and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B)   | the                new Base Index Figure shall be the product of the then existing Base                Index                Figure and the Index Figure applicable immediately following such                substitution, divided by the Index Figure applicable immediately                prior to                such substitution. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | If                in relation to a particular payment of interest or principal in respect                of                the Notes the Index relating to any month (the “**relevant                month**”),                which is required to be taken into account for the purposes of the                determination of the Index Figure applicable to any such payment                of                interest or principal is not published on or before the tenth business                day                before the date (the “**date                for payment**”)                on which such payment is due otherwise than because the Index has                ceased                to be published, the Index relating to the relevant month shall be                deemed                to be: |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (A)   | such                substitute index figure (if any) as the Indexation Adviser shall                agree to                have been published by the Bank of England or the United Kingdom                Debt                Management Office for the purposes of indexation of payments on the                Reference Gilt or, failing such publication, on any one or more issue                of                index-linked Treasury stock selected by the Indexation Adviser;                or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B)   | if                no such determination is made by the Indexation Adviser within seven                days,                the Index last published (or, if later, the substitute index figure                last                determined pursuant to sub-paragraph (A) above before the date for                payment). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   |   |
|-------------------|--------|

| (A)   | If: |
|-----------------|-----|

| (B)   | If                the Issuer and the Indexation Adviser fail to reach such agreement                within                20 business days following the giving of such notice by the Indexation                Adviser, a bank or other person in London shall be selected by the                Issuer                and approved by the Trustee and appointed by the Issuer, or, failing                agreement on such selection within 20 business days following the                expiry                of the 20 business day period referred to above, selected by the                Trustee                only, in its sole discretion and without further liability to any                person                for making such selection, and appointed by the Issuer (in each case,                such                bank or other person so appointed being referred to as the “**Expert**”),                to determine for the purpose of the Notes one or more adjustments                to the                Index or a substitute index (with or without adjustments) with the                intention that the same would leave the Issuer and the Noteholders                in no                better and no worse position than they would have been had the Index                not                ceased to be published or the relevant fundamental change not been                made.                Any Expert so appointed shall act as an expert and not as an arbitrator                and all fees, costs and expenses of the Expert, the Issuer and the                Trustee                in connection with such appointment shall be borne by the                Issuer. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|
| (C)  | If the Index shall be adjusted or replaced by a              substitute index as agreed by the Issuer and the Index Adviser or as              determined by the Expert pursuant to the foregoing paragraphs, as the              case              may be, references in these Conditions to the Index and to any Index              Figure shall be deemed amended in such manner as the Index Adviser              and the              Issuer may agree, or as the Expert may determine, to give effect to              such              adjustment or replacement. Such amendments shall be effective from              the              date of such agreement or determination and binding upon the Issuer,              the              Trustee and the Noteholders and the Issuer shall give notice to the              Noteholders in accordance with Condition 12 of such amendments as promptly              as practicable following such agreement or              determination. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.4  ** | **Appointment                of Indexation Adviser and                Expert** |
|---------------------|--------------------------------------------------------------------------------|

| **9  ** | **EVENTS                OF DEFAULT** |
|-------------------|--------------------------------------|

| **9.1  ** | **Events                of Default** |
|---------------------|--------------------------------------|

**Event      of Default**

| *(a)  * | *Non-Payment* |
|-------------------|---------------|

| *(b)  * | *Breach                of Other Obligations* |
|-------------------|----------------------------------------------|

| *(c)  * | *Cross-Default* |
|-------------------|-----------------|

*bona      fide*

| *(d)  * | *Winding-up* |
|-------------------|--------------|

| *(e)  * | *Winding-up                of Principal Subsidiary* |
|-------------------|-----------------------------------------------------|

| *(f)  * | *Ceasing                to Carry on the Business* |
|-------------------|---------------------------------------------------|

| *(g)  * | *Insolvency* |
|-------------------|--------------|

| *(h)  * | *Administration                and Enforcement Proceedings* |
|-------------------|-------------------------------------------------------------|

*Definitions*

**Excluded      Subsidiary**

| (i)   | which                is a single purpose company whose principal assets and business are                constituted by the ownership, acquisition, development and/or operation                of                an asset; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | none                of whose indebtedness for borrowed money in respect of the financing                of                such ownership, acquisition, development and/or operation of an asset                is                subject to any recourse whatsoever to any member of the Group (other                than                another Excluded Subsidiary) in respect of the repayment thereof,                except                as expressly referred to in sub-paragraph (ii)(C) of the definition                of                Non-recourse Indebtedness below;                and |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | which                has been designated as such by the Issuer by written notice to the                Trustee, provided that the Issuer may give written notice to the                Trustee                at any time that any Excluded Subsidiary is no longer an Excluded                Subsidiary, whereupon it shall cease to be an Excluded                Subsidiary; |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**indebtedness      for borrowed money**

**Non-recourse      Indebtedness**

| (i)   | which                is incurred by an Excluded Subsidiary;                or |
|-----------------|-------------------------------------------------------------------------------|

| (ii)   | in                respect of which the person or persons to whom any such indebtedness                for                borrowed money is or may be owed by the relevant borrower (whether                or not                a member of the Group) has or have no recourse whatsoever to any                member of                the Group (other than an Excluded Subsidiary) for the repayment thereof                other than: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Principal      Subsidiary**

| (i)   | whose                (a) profits on ordinary activities before tax or (b) gross assets,                in each                case attributable to the Issuer represent 20 per cent. or more of                the                consolidated profits on ordinary activities before tax of the Group                or, as                the case may be, consolidated gross assets of the Group, in each                case as                calculated by reference to the then latest audited financial statements                of                such Subsidiary (consolidated in the case of a company which itself                has                Subsidiaries) and the then latest audited consolidated financial                statements of the Group provided that in the case of a Subsidiary                acquired                after the end of the financial period to which the then latest audited                consolidated financial statements of the Group relate, the reference                to                the then latest audited consolidated financial statements of the                Group for                the purposes of the calculation above shall, until consolidated financial                statements for the financial period in which the acquisition is made                have                been prepared and audited as aforesaid, be deemed to be a reference                to                such first-mentioned financial statements as if such Subsidiary had                been                shown in such financial statements by reference to its then latest                relevant audited financial statements, adjusted as deemed appropriate                by                the Auditors; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | to                which is transferred all or substantially all of the business, undertaking                and assets of a Subsidiary of the Issuer which immediately prior                to such                transfer is a Principal Subsidiary, whereupon the transferor Subsidiary                shall immediately cease to be a Principal Subsidiary and the transferee                Subsidiary shall cease to be a Principal Subsidiary under the provisions                of this sub-paragraph (ii), upon publication of its next audited                financial                statements (but without prejudice to the provisions of sub-paragraph                (i)                above) but so that such transferor Subsidiary or such transferee                Subsidiary may be a Principal Subsidiary of the Issuer on or at any                time                after the date on which such audited financial statements have been                published by virtue of the provisions of sub-paragraph (i) above                or                before, on or at any time after such date by virtue of the provisions                of                this sub-paragraph (ii). |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **10  ** | **ENFORCEMENT** |
|--------------------|-----------------|

| **10.1  ** | **Enforcement                by the Trustee** |
|----------------------|-----------------------------------------------|

| **10.2  ** | **Enforcement                by the Noteholders** |
|----------------------|---------------------------------------------------|

| **11  ** | **REPLACEMENT                OF NOTES AND COUPONS** |
|--------------------|-----------------------------------------------------|

| **12  ** | **NOTICES** |
|--------------------|-------------|

| **12.1  ** | **Notices                to the Noteholders** |
|----------------------|-----------------------------------------------|

*Financial      Times*

| **12.2  ** | **Notices                from the Noteholders** |
|----------------------|-------------------------------------------------|

| **13  ** | **SUBSTITUTION** |
|--------------------|------------------|

| (a)   | the                Notes being unconditionally and irrevocably guaranteed by the                Issuer; |
|-----------------|---------------------------------------------------------------------------------------------------------|

| (b)   | the                Trustee being satisfied that the interests of the Noteholders will                not be                materially prejudiced by the substitution;                and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | certain                other conditions set out in the Trust Deed being complied                with. |
|-----------------|-------------------------------------------------------------------------------------------------------|

| **14  ** | **MEETINGS                OF NOTEHOLDERS, MODIFICATION, WAIVER, AUTHORISATION AND                DETERMINATION** |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| **14.1  ** | **Meetings                of Noteholders** |
|----------------------|--------------------------------------------|

| **14.2  ** | **Modification,                Waiver, Authorisation and                Determination** |
|----------------------|-----------------------------------------------------------------------------------------|

| **14.3  ** | **Trustee                to have Regard to Interests of Noteholders as a                Class** |
|----------------------|-------------------------------------------------------------------------------------------------|

| **14.4  ** | **Notification                to the Noteholders** |
|----------------------|----------------------------------------------------|

| **15  ** | **INDEMNIFICATION                OF THE TRUSTEE AND ITS CONTRACTING WITH THE                ISSUER** |
|--------------------|------------------------------------------------------------------------------------------------------|

| **15.1  ** | **Indemnification                of the Trustee** |
|----------------------|---------------------------------------------------|

| **15.2  ** | **Trustee                Contracting with the                Issuer** |
|----------------------|-----------------------------------------------------------------------|

| **16  ** | **FURTHER                ISSUES** |
|--------------------|-----------------------------------|

*pari*
*passu*

| **17  ** | **PRESCRIPTION** |
|--------------------|------------------|

| **18  ** | **GOVERNING                LAW** |
|--------------------|----------------------------------|

| **19  ** | **RIGHTS                OF THIRD PARTIES** |
|--------------------|--------------------------------------------|

----

----

**Form      of Coupon**

**WESTERN      POWER DISTRIBUTION (SOUTH WEST) PLC**

**WESTERN      POWER DISTRIBUTION (SOUTH WEST) PLC**

| Cp                No.  | Denomination  | ISIN          | Series  | Certif.                No.  |
|-----------------------------|--------------------|--------------------|--------------|----------------------------------|
|                        | £50,000  | XS0276994059  |         |                             |

----

**Form      of Talon**

**WESTERN      POWER DISTRIBUTION (SOUTH WEST) PLC**

**WESTERN      POWER DISTRIBUTION (SOUTH WEST) PLC**

| Cp                No.  | Denomination  | ISIN          | Series  | Certif.                No.  |
|-----------------------------|--------------------|--------------------|--------------|----------------------------------|
|                        | £50,000  | XS0276994059  |         |                             |

----

**Schedule      2**

**Part      1**

**Form      of Temporary Global Note**

**WESTERN      POWER DISTRIBUTION (SOUTH WEST) PLC**

**(Incorporated      with limited liability in England and Wales)**

**£105,000,000**

**1.541      per cent. Index-Linked Notes due 2053**

**Temporary      Global Note**

**Notes**
**Conditions**
**Trust      Deed**
**Issuer**
**Trustee**

**Exchange      Date**
**Global      Note**
**Euroclear**
**Clearstream,      Luxembourg**

**“CERTIFICATE**

**WESTERN      POWER DISTRIBUTION (SOUTH WEST) PLC**

**£105,000,000**

**1.541      per cent. Index-Linked Notes due 2053**

**Common      Code 027699405 ISIN XS0276994059 (the “Notes”)**

**“Member      Organisations**
**United      States persons**
**financial      institutions**

**[EUROCLEAR      BANK S.A./N.V.] or [CLEARSTREAM BANKING, SOCIÉTÉ ANONYME]**

| By:  | Dated:  |   |
|-----------|--------------|--------|

**“CERTIFICATE**

**WESTERN      POWER DISTRIBUTION (SOUTH WEST) PLC**

**£105,000,000**

**1.541      per cent. Index-Linked Notes due 2053**

**Common      Code 027699405 ISIN XS0276994059 (the “Notes”)**

| To:  | Euroclear                Bank S.A./N.V. or Clearstream Banking, société anonyme  |
|-----------|-------------------------------------------------------------------------------------------------|

**United      States person(s)**
**financial      institutions**

**United      States**
**possessions**

**Definitive      Notes**

**WESTERN      POWER DISTRIBUTION (SOUTH WEST) PLC**

----

**Schedule      of Exchanges for Interests in the Global Note**

| **Date                of Exchange** | **Amount                of decrease in nominal amount of this Temporary Global                Note** | **Nominal                amount of this Temporary Global Note following such                decrease** | **Notation                made by or on behalf of the Principal Paying                Agent** |
|-------------------------------------|------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|

----

**Schedule      2**

**Part      2**

**Form      of Global Note**

**WESTERN      POWER DISTRIBUTION (SOUTH WEST) PLC**

**(Incorporated      with limited liability in England and Wales)**

**£105,000,000**

**1.541      per cent. Index-Linked Notes due 2053**

**Global      Note**

**Notes**
**Conditions**
**Trust      Deed**
**Issuer**
**Trustee**

**Notices**

**Exchange      Date**
**Notices**

**Payments**

*prima      facie*

**Notices**

**Euroclear**
**Clearstream,      Luxembourg**
**Alternative      Clearing System**

**Prescription**

**Meetings**

**Purchase      and Cancellation**

**Trustee’s      Powers**

**Redemption      at the option of Noteholders on a Restructuring Event**

----

**WESTERN      POWER DISTRIBUTION (SOUTH WEST) PLC**

----

**Schedule      A**

**Nominal      Amount of this Global Note**

| **Date**                        | **Reason                for change in the nominal amount of this Global Note****1**   | **Amount                of such change**  | **Initial                nominal amount and nominal amount of this Global Note following such                change**  | **Notation                made by or on behalf of the nominal Paying Agent (other than in respect                of                the initial nominal amount)** |
|--------------------------------------|-------------------------------------------------------------------------------------------------|------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1                December 2006  | Not                applicable                                                              | Not                applicable             | £                zero                                                                                             | Not                applicable                                                                                                                               |

| 1 | State                whether increase/reduction following (1) exchange of part of Temporary                global Note (2) redemption of Notes or (3) purchase and cancellation                of                Notes. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Schedule      B**

**Interest      Payments in respect of this Global Note**

| **Date                made** | **Amount                of interest due and payable** | **Amount                of interest paid** | **Notation                made by or on behalf of the Principal Paying                Agent** |
|------------------------------|-------------------------------------------------------|--------------------------------------------|-----------------------------------------------------------------------------------------------|

----

**Schedule      C**

**Exercise      of Noteholders’ Option on Restructuring Event**

| **Date                of Exercise** | **Nominal                amount of this Global Note in respect of which exercise is                made** | **Date                on which redemption of such nominal amount is due** | **Notation                made by or on behalf of the Principal Paying                Agent** |
|-------------------------------------|-----------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|

----

**Schedule      3**

**Provisions      for Meetings of Noteholders**

**Interpretation**

| **1  ** | In                this Schedule: |
|-------------------|----------------------------------|

| **1.1  ** | references                to a meeting are to a meeting of Noteholders and include, unless                the                context otherwise requires, any                adjournment |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **1.2  ** | “**agent**”                means a holder of a voting certificate or a proxy for a                Noteholder |
|---------------------|--------------------------------------------------------------------------------------------------------------------------|

| **1.3  ** | “**block                voting instruction**”                means an instruction issued in accordance with paragraphs 8 to                14 |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| **1.4  ** | “**Extraordinary                Resolution**”                means a resolution passed at a meeting duly convened and held in                accordance with this Trust Deed by a majority of at least 75 per                cent. of                the votes cast |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **1.5  ** | “**voting                certificate**”                means a certificate issued in accordance with paragraphs 5, 6, 7                and 14                and |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **1.6  ** | references                to persons representing a proportion of the Notes are to Noteholders                or                agents holding or representing in the aggregate at least that proportion                in nominal amount of the Notes for the time being                outstanding. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Powers      of meetings**

| **2  ** | A                meeting shall, subject to the Conditions and without prejudice to                any                powers conferred on other persons by this Trust Deed, have power                by                Extraordinary Resolution: |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.1  ** | to                sanction any proposal by the Issuer or the Trustee for any modification,                abrogation, variation or compromise of, or arrangement in respect                of, the                rights of the Noteholders and/or the Couponholders against the Issuer,                whether or not those rights arise under this Trust                Deed |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.2  ** | to                sanction the exchange or substitution for the Notes of, or the conversion                of the Notes into, shares, notes or other obligations or securities                of the                Issuer or any other entity |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.3  ** | to                assent to any modification of this Trust Deed, the Notes or the Coupons                proposed by the Issuer or the                Trustee |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.4  ** | to                authorise anyone to concur in and do anything necessary to carry                out and                give effect to an Extraordinary                Resolution |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.5  ** | to                give any authority, direction or sanction required to be given by                Extraordinary Resolution |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------|

| **2.6  ** | to                appoint any persons (whether Noteholders or not) as a committee or                committees to represent the Noteholders’ interests and to confer on them                any powers or discretions which the Noteholders could themselves                exercise                by Extraordinary Resolution |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.7  ** | to                approve a proposed new Trustee and to remove a                Trustee |
|---------------------|-----------------------------------------------------------------------------------------|

| **2.8  ** | to                approve the substitution of any entity for the Issuer (or any previous                substitute) as principal debtor under this Trust Deed                and |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.9  ** | to                discharge or exonerate the Trustee from any liability in respect                of any                act or omission for which it may become responsible under this Trust                Deed,                the Notes or the Coupons |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**special      quorum resolution**

| (i)   | modifying                the maturity of the Notes or the dates on which interest is payable                on                them or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | modifying                the outstanding nominal amount of, or interest on, or other amounts                in                respect of or reducing or altering the method of calculating the                rate of                interest on, or any redemption amount of, the Notes                or |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | changing                the currency of payment of the Notes or the Coupons                or |
|-------------------|-----------------------------------------------------------------------------------------------|

| (iv)   | modifying                the provisions in this Schedule concerning the quorum required at                a                meeting or the majority required to pass an Extraordinary Resolution                or |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | amending                this proviso. |
|-----------------|---------------------------------------|

**Convening      a meeting**

| **3  ** | The                Issuer or the Trustee may at any time convene a meeting. If it receives                a                written request by Noteholders holding at least 10 per cent. in nominal                amount of the Notes for the time being outstanding and is indemnified                to                its satisfaction against all costs and expenses, the Trustee shall                convene                a meeting. Every meeting shall be held at a time and place approved                by the                Trustee. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **4  ** | At                least 21 days’ notice (exclusive of the day on which the notice is given                and of the day of the meeting) shall be given to the Noteholders.                A copy                of the notice shall be given by the party convening the meeting to                the                other parties. The notice shall specify the day, time and place of                meeting                and, unless the Trustee otherwise agrees, the nature of the resolutions                to                be proposed and shall explain how Noteholders may appoint proxies                or                representatives, obtain voting certificates and use block voting                instructions and the details of the time limits                applicable. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Arrangements      for voting**

| **5  ** | If                a holder of a Note wishes to obtain a voting certificate in respect                of it                for a meeting, he must deposit it for that purpose at least 48 hours                before the time fixed for the meeting with a Paying Agent or to the                order                of a Paying Agent with a bank or other depositary nominated by the                Paying                Agent for the purpose. The Paying Agent shall then issue a voting                certificate in respect of it. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **6  ** | A                voting certificate shall: |
|-------------------|--------------------------------------------|

| **6.1  ** | be                a document in the English language |
|---------------------|------------------------------------------------------|

| **6.2  ** | be                dated |
|---------------------|-------------------------|

| **6.3  ** | specify                the meeting concerned and the serial numbers of the Notes deposited                and |
|---------------------|---------------------------------------------------------------------------------------------------------------|

| **6.4  ** | entitle,                and state that it entitles, its bearer to attend and vote at that                meeting                in respect of those Notes. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7  ** | Once                a Paying Agent has issued a voting certificate for a meeting in respect                of                a Note, it shall not release the Note until                either: |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.1  ** | the                meeting has been concluded or |
|---------------------|--------------------------------------------------|

| **7.2  ** | the                voting certificate has been surrendered to the Paying                Agent. |
|---------------------|------------------------------------------------------------------------------------------------|

| **8  ** | If                a holder of a Note wishes the votes attributable to it to be included                in a                block voting instruction for a meeting, then, at least 48 hours before                the                time fixed for the meeting, (i) he must deposit the Note for that                purpose                with a Paying Agent or to the order of a Paying Agent with a bank                or other                depositary nominated by the Paying Agent for the purpose and (ii)                he or a                duly authorised person on his behalf must direct the Paying Agent                how                those votes are to be cast. The Paying Agent shall issue a block                voting                instruction in respect of the votes attributable to all Notes so                deposited. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **9  ** | A                block voting instruction shall: |
|-------------------|--------------------------------------------------|

| **9.1  ** | be                a document in the English language |
|---------------------|------------------------------------------------------|

| **9.2  ** | be                dated |
|---------------------|-------------------------|

| **9.3  ** | specify                the meeting concerned |
|---------------------|----------------------------------------------|

| **9.4  ** | list                the total number and serial numbers of the Notes deposited, distinguishing                with regard to each resolution between those voting for and those                voting                against it |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **9.5  ** | certify                that such list is in accordance with Notes deposited and directions                received as provided in paragraphs 8, 11 and 14                and |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **9.6  ** | appoint                a named person (a “**proxy**”)                to vote at that meeting in respect of those Notes and in accordance                with                that list. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **10  ** | Once                a Paying Agent has issued a block voting instruction for a meeting                in                respect of the votes attributable to any                Notes: |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **10.1  ** | it                shall not release the Notes, except as provided in paragraph 11,                until the                meeting has been concluded and |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| **10.2  ** | the                directions to which it gives effect may not be revoked or altered                during                the 48 hours before the time fixed for the                meeting. |
|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **11  ** | If                the receipt for a Note deposited with a Paying Agent in accordance                with                paragraph 8 is surrendered to the Paying Agent at least 48 hours                before                the time fixed for the meeting, the Paying Agent shall release the                Note                and exclude the votes attributable to it from the block voting                instruction. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **12  ** | Each                block voting instruction shall be deposited at least 24 hours before                the                time fixed for the meeting at such place as the Trustee shall designate                or                approve, and in default it shall not be valid unless the chairman                of the                meeting decides otherwise before the meeting proceeds to business.                If the                Trustee requires, a notarially certified copy of each block voting                instruction shall be produced by the proxy at the meeting but the                Trustee                need not investigate or be concerned with the validity of the proxy’s                appointment. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **13  ** | A                vote cast in accordance with a block voting instruction shall be                valid                even if it or any of the Noteholders’ instructions pursuant to which it                was executed has previously been revoked or amended, unless written                intimation of such revocation or amendment is received from the relevant                Paying Agent by the Issuer or the Trustee at its registered office                or by                the chairman of the meeting in each case at least 24 hours before                the time                fixed for the meeting. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **14  ** | No                Note may be deposited with or to the order of a Paying Agent at the                same                time for the purposes of both paragraph 5 and paragraph 8 for the                same                meeting. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Chairman**

| **15  ** | The                chairman of a meeting shall be such person as the Trustee may nominate                in                writing, but if no such nomination is made or if the person nominated                is                not present within 15 minutes after the time fixed for the meeting                the                Noteholders or agents present shall choose one of their number to                be                chairman, failing which the Issuer may appoint a                chairman. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **16  ** | The                chairman may, but need not, be a Noteholder or agent. The chairman                of an                adjourned meeting need not be the same person as the chairman of                the                original meeting. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Attendance**

| **17  ** | The                following may attend and speak at a                meeting: |
|--------------------|--------------------------------------------------------------------------------|

| **17.1  ** | Noteholders                and agents |
|----------------------|---------------------------------------|

| **17.2  ** | the                chairman |
|----------------------|-----------------------------|

| **17.3  ** | the                Issuer and the Trustee (through their respective representatives)                and                their respective financial and legal                advisers. |
|----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Quorum      and Adjournment**

| **18  ** | No                business (except choosing a chairman) shall be transacted at a meeting                unless a quorum is present at the commencement of business. If a                quorum is                not present within 15 minutes from the time initially fixed for the                meeting, it shall, if convened on the requisition of Noteholders                or if the                Issuer and the Trustee agree, be dissolved. In any other case it                shall be                adjourned until such date, not less than 14 nor more than 42 days                later,                and time and place as the chairman may decide. If a quorum is not                present                within 15 minutes from the time fixed for a meeting so adjourned,                the                meeting shall be dissolved. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **19  ** | Two                or more Noteholders or agents present in person shall be a                quorum: |
|--------------------|------------------------------------------------------------------------------------------------------|

| **19.1  ** | in                the cases marked “**No                minimum proportion**”                in the table below, whatever the proportion of the Notes which they                represent |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **19.2  ** | in                any other case, only if they represent the proportion of the Notes                shown                by the table below. |
|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

|  **Column                1**                    |  **Column                2**                        |  **Column                3**                               |
|-----------------------------------------------------------|---------------------------------------------------------------|----------------------------------------------------------------------|
|  Purpose                of meeting                   | Any                meeting except one referred to in column 3 | Meeting                previously adjourned through want of a quorum |
| Required                proportion                   | Required                proportion                       |
| To                pass a special quorum resolution   | 75                per cent.                              | 25                per cent.                                     |
| To                pass any other Extraordinary Resolution | A                clear majority                          | No                minimum proportion                            |
| Any                other purpose                     | 10                per cent.                              | No                minimum proportion                            |

| **20  ** | The                chairman may with the consent of (and shall if directed by) a meeting                adjourn the meeting from time to time and from place to place. Only                business which could have been transacted at the original meeting                may be                transacted at a meeting adjourned in accordance with this paragraph                or                paragraph 18. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **21  ** | At                least 10 days’ notice of a meeting adjourned through want of a quorum                shall be given in the same manner as for an original meeting and                that                notice shall state the quorum required at the adjourned meeting.                No notice                need, however, otherwise be given of an adjourned                meeting. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Voting**

| **22  ** | Each                question submitted to a meeting shall be decided by a show of hands                unless                a poll is (before, or on the declaration of the result of, the show                of                hands) demanded by the chairman, the Issuer, the Trustee or one or                more                persons representing 2 per cent. of the                Notes. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **23  ** | Unless                a poll is demanded a declaration by the chairman that a resolution                has or                has not been passed shall be conclusive evidence of the fact without                proof                of the number or proportion of the votes cast in favour of or against                it. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **24  ** | If                a poll is demanded, it shall be taken in such manner and (subject                as                provided below) either at once or after such adjournment as the chairman                directs. The result of the poll shall be deemed to be the resolution                of                the meeting at which it was demanded as at the date it was taken.                A demand                for a poll shall not prevent the meeting continuing for the transaction                of                business other than the question on which it has been                demanded. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **25  ** | A                poll demanded on the election of a chairman or on a question of                adjournment shall be taken at once. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| **26  ** | On                a show of hands every person who is present in person and who produces                a                Note or a voting certificate or is a proxy has one vote. On a poll                every                such person has one vote for each £50,000 nominal amount of Notes so                produced or represented by the voting certificate so produced or                for which                he is a proxy or representative. Without prejudice to the obligations                of                proxies, a person entitled to more than one vote need not use them                all or                cast them all in the same way. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **27  ** | In                case of equality of votes the chairman shall both on a show of hands                and                on a poll have a casting vote in addition to any other votes which                he may                have. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Effect      and Publication of an Extraordinary Resolution**

| **28  ** | An                Extraordinary Resolution shall be binding on all the Noteholders,                whether                or not present at the meeting, and on all the Couponholders and each                of                them shall be bound to give effect to it accordingly. The passing                of such                a resolution shall be conclusive evidence that the circumstances                justify                its being passed. The Issuer shall give notice of the passing of                an                Extraordinary Resolution to Noteholders within 14 days but failure                to do                so shall not invalidate the                resolution. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Minutes**

| **29  ** | Minutes                shall be made of all resolutions and proceedings at every meeting                and, if                purporting to be signed by the chairman of that meeting or of the                next                succeeding meeting, shall be conclusive evidence of the matters in                them.                Until the contrary is proved every meeting for which minutes have                been so                made and signed shall be deemed to have been duly convened and held                and                all resolutions passed or proceedings transacted at it to have been                duly                passed and transacted. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Trustee’s      Power to Prescribe Regulations**

| **30  ** | Subject                to all other provisions in this Trust Deed the Trustee may without                the                consent of the Noteholders prescribe such further regulations regarding                the holding of meetings and attendance and voting at them as it in                its                sole discretion determines including (without limitation) such                requirements as the Trustee thinks reasonable to satisfy itself that                the                persons who purport to make any requisition in accordance with this                Trust                Deed are entitled to do so and as to the form of voting certificates                or                block voting instructions so as to satisfy itself that persons who                purport                to attend or vote at a meeting are entitled to do                so. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**WESTERN      POWER DISTRIBUTION (SOUTH WEST) PLC**

| By:                  | D.C.S.                OOSTHUISEN  |   | By:     | SALLY                A. JONES     |
|---------------------------|----------------------------------------|--------|--------------|----------------------------------------|
| Title:               | DIRECTOR                          |   | Title:  | COMPANY                SECRETARY  |

**HSBC      TRUSTEE (C.I.) LIMITED**