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|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
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| Exhibit                10(y)   **AGREEMENT**                                                                                                                                                                                                                                                                                                                                                                                                                            |
| **24                JANUARY 2007**                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **CREDIT                FACILITY** **for** **WESTERN                POWER DISTRIBUTION HOLDINGS LIMITED** **arranged                by** **BARCLAYS                CAPITAL****BAYERISCHE                LANDESBANK acting through its London Branch****LLOYDS                TSB BANK plc****as                Mandated Lead Arrangers** **with** **LLOYDS                TSB BANK plc****as                Facility Agent** **£150,000,000**  |

----

**CONTENTS**

| **Clause** | **Page** |
|------------|----------|

| 1.  | Interpretation                             | 1  |
|-----|--------------------------------------------|----|
| 2.  | Facilities                                 | 9  |
| 3.  | Purpose                                    | 10 |
| 4.  | Conditions                Precedent        | 10 |
| 5.  | Utilisation                                | 11 |
| 6.  | Extension                Option            | 11 |
| 7.  | Optional                Currencies         | 12 |
| 8.  | Repayment                of Loans          | 14 |
| 9.  | Prepayment                and Cancellation | 14 |
| 10. | Interest                                   | 17 |
| 11. | Terms                                      | 18 |
| 12. | Market                Disruption           | 19 |
| 13. | Taxes                                      | 20 |
| 14. | Increased                Costs             | 22 |
| 15. | Mitigation                                 | 23 |
| 16. | Payments                                   | 24 |
| 17. | Representations                            | 26 |
| 18. | Information                Covenants       | 28 |
| 19. | Financial                Covenants         | 31 |
| 20. | General                Covenants           | 32 |
| 21. | Default                                    | 35 |
| 22. | The                Administrative Parties  | 38 |
| 23. | Evidence                and Calculations   | 43 |
| 24. | Fees                                       | 43 |
| 25. | Indemnities                and Break Costs | 44 |
| 26. | Expenses                                   | 46 |
| 27. | Amendments                and Waivers      | 46 |
| 28. | Changes                to the Parties      | 47 |
| 29. | Disclosure                of Information   | 50 |
| 30. | Set-Off                                    | 50 |
| 31. | Pro                Rata Sharing            | 50 |
| 32. | Severability                               | 52 |
| 33. | Counterparts                               | 52 |
| 34. | Notices                                    | 52 |
| 35. | Language                                   | 53 |
| 36. | Governing                Law               | 53 |
| 37. | Enforcement                                | 54 |

----

| **Schedule** | **Page** |
|--------------|----------|

| 1. | Original                Parties                  | 55 |
|----|--------------------------------------------------|----|
| 2. | Conditions                Precedent Documents    | 56 |
| 3. | Form                of Request                   | 57 |
| 4. | Calculation                of the Mandatory Cost | 58 |
| 5. | Form                of Transfer Certificate      | 60 |
| 6. | Form                of Compliance Certificate    | 62 |

| Signatories | 63 |
|-------------|----|

**THIS      AGREEMENT **

**BETWEEN**

| **(1)** | **WESTERN                POWER DISTRIBUTION HOLDINGS LIMITED**(registered                in England and Wales with number 4267536)                (the **Borrower**); |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(2)** | **BARCLAYS                CAPITAL**,                **BAYERISCHE                LANDESBANK**                acting through its London Branch and **LLOYDS                TSB BANK plc**                each in this capacity as a **Mandated                Lead** **Arranger**and                together in this capacity, the **Mandated                Lead** **Arrangers**; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(3)** | **THE                FINANCIAL INSTITUTIONS**listed                in Schedule 1 (Original Parties) as original lenders (the **Original                Lenders)**; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(4)** | **LLOYDS                TSB BANK PLC as facility agent (in this capacity the Facility                Agent);** |
|---------|----------------------------------------------------------------------------------------------------------------|

**IT      IS AGREED **

| **1.** | **INTERPRETATION** |
|--------|--------------------|

| **1.1** | **Definitions** |
|---------|-----------------|

**Act**

**Administrative      Party**

**Affiliate**

**Applicable      Accounting Principles**

**Authority**

**Availability      Period**

**Balancing      and Settlement Code**

**Balancing      and Settlement Code Framework**

**Break      Costs**

**Business      Day**

|   | (a) | if                on that day a payment in or a purchase of a currency (other than                euro) is                to be made, the principal financial centre of the country of that                currency; or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if                on that day a payment in or purchase of euro is to be made, which                is also                a TARGET Day. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

**Commitment**

|   | (a) | for                an Original Lender, the amount set opposite its name in Schedule                1                (Original Parties) under the heading "Commitments" and the amount                of any                other Commitment it acquires; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | for                any other Lender, the amount of any commitment it                acquires, |
|--------|-----|-----------------------------------------------------------------------------------------------|

**Compliance      Certificate**

**Default**

|   | (a) | an                Event of Default; or |
|--------|-----|----------------------------------------|

|   | (b) | an                event which would be (with the lapse of time, the expiry of a grace                period, the giving of notice or the making of any determination under                the                Finance Documents or any combination of them) an Event of                Default. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Distribution      Company **

**Environmental      Law**

**euro**
**euros**
**€**

**Event      of Default**

**Existing      Tranche C Facility **

**Extended      Final Maturity Date**

**Facility**

**Facility      Office**

|   | (a) | on                or before the date it becomes a Lender;                or |
|--------|-----|-----------------------------------------------------------------------------|

|   | (b) | by                not less than five Business Days'                notice, |
|--------|-----|----------------------------------------------------------------------------|

**Fee      Letter**

**Final      Maturity Date **

|   | (a) | the                fifth anniversary of the date of this Agreement;                or |
|--------|-----|---------------------------------------------------------------------------------------|

|   | (b) | if                the extension option in Clause 6 (Extension Option) is exercised                the                Extended Final Maturity Date. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

**Finance      Document **

|   | (a) | this                Agreement; |
|--------|-----|--------------------------------|

|   | (b) | a                Fee Letter; |
|--------|-----|------------------------------|

|   | (c) | a                Transfer Certificate; or |
|--------|-----|-------------------------------------------|

|   | (d) | any                other document designated as such by the Facility Agent and the                Borrower. |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

**Finance      Party**

**Financial      Indebtedness**

|   | (a) | moneys                borrowed; |
|--------|-----|---------------------------------|

|   | (b) | any                acceptance credit; |
|--------|-----|---------------------------------------|

|   | (c) | any                bond, note, debenture, loan stock or other similar                instrument; |
|--------|-----|--------------------------------------------------------------------------------------------------|

|   | (d) | any                finance or capital lease; |
|--------|-----|----------------------------------------------|

|   | (e) | receivables                sold or discounted (otherwise than on a non-recourse                basis); |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (f) | the                acquisition cost of any asset to the extent payable after its acquisition                or possession by the party liable where the deferred payment is arranged                primarily as a method of raising finance or financing the acquisition                of                that asset; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | any                derivative transaction protecting against or benefiting from fluctuations                in any rate or price (and, except for non-payment of an amount, the                then                mark to market value of the derivative transaction will be used to                calculate its amount); |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | any                other transaction (including any forward sale or purchase agreement)                which                has the commercial effect of a                borrowing; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | any                counter-indemnity obligation in respect of any guarantee, indemnity,                bond,                letter of credit or any other instrument issued by a bank or financial                institution; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | any                guarantee, indemnity or similar assurance against financial loss                of any                person in respect of any item referred to in paragraphs (a) to (i)                above. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Group**

**Holding      Company**

**Increased      Cost**

|   | (a) | an                additional or increased cost; |
|--------|-----|-------------------------------------------------|

|   | (b) | a                reduction in the rate of return under a Finance Document or on its                overall                capital; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | a                reduction of an amount due and payable under any Finance                Document, |
|--------|-----|----------------------------------------------------------------------------------------------------|

**Lender**

|   | (a) | an                Original Lender; or |
|--------|-----|---------------------------------------|

|   | (b) | any                person which becomes a Lender after the date of this                Agreement. |
|--------|-----|---------------------------------------------------------------------------------------------------|

**LIBOR**

|   | (a) | the                applicable Screen Rate; or |
|--------|-----|-----------------------------------------------|

|   | (b) | if                no Screen Rate is available for the relevant currency or Term of                that Loan                or overdue amount, the arithmetic mean (rounded upward to four decimal                places) of the rates, as supplied to the Facility Agent at its request,                quoted by the Reference Banks to leading banks in the London interbank                market, |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Licence**

|   | (a) | the                electricity distribution licence made and treated as granted to each                Distribution Company under Section 6(1)(c) of the Act pursuant to                a                licensing scheme made by the Secretary of State under Part II of                Schedule                7 to the Utilities Act 2000 on 28 September 2001;                or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | by                any statutory amendment or replacement licence or licences granted                pursuant to the Utilities Act 2000 which permit a Distribution Company                to                distribute electricity in the Authorised                Area; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Loan**

**Majority      Lenders**

|   | (a) | whose                share in the outstanding Loans and whose undrawn Commitments then                aggregate 662/3%                or more of the aggregate of all the outstanding Loans and the undrawn                Commitments of all the Lenders; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if                there is no Loan then outstanding, whose undrawn Commitments then                aggregate 662/3%                or more of the Total Commitments;                or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | if                there is no Loan then outstanding and the Total Commitments have                been                reduced to zero, whose Commitments aggregated 662/3%                or more of the Total Commitments immediately before the                reduction.  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**            Mandatory Cost**

**Margin**

**Material      Adverse Effect**

**Maturity      Date**

**Moody's**

**OFGEM      **

**Optional      Currency**

**Original      Financial Statements**

**Participating      Member States**

**Party**

**Pro      Rata Share**

|   | (a) | for                the purpose of determining a Lender's share in a utilisation of the                Facility, the proportion which its Commitment under the Facility                bears to                all the Commitments under the Facility;                and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | for                any other purpose on a particular                date: |
|--------|-----|---------------------------------------------------------------------------|

|   | (i) | the                proportion which a Lender's share of the Loans (if any) bears to                all the                Loans; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | if                there is no Loan outstanding on that date, the proportion which its                Commitment bears to the Total Commitments on that date;                or |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | if                the Total Commitments have been cancelled, the proportion which its                Commitments bore to the Total Commitments immediately before being                cancelled. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Rate      Fixing Day **

|   | (a) | the                first day of a Term for a Loan denominated in Sterling;                or |
|--------|-----|----------------------------------------------------------------------------------------------|

|   | (b) | the                second Business Day before the first day of a Term for a Loan denominated                in any other currency; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------|

**Reference      Banks**

**Repeating      Representations**

**Request**

**Rollover      Loan**

|   | (a) | to                be made on the same day that a maturing Loan is due to be                repaid; |
|--------|-----|----------------------------------------------------------------------------------------------------|

|   | (b) | the                aggregate amount of which is equal to or less than the maturing                Loan; |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (c) | in                the same currency as the maturing Loan;                and |
|--------|-----|------------------------------------------------------------------------------|

|   | (d) | to                be made for the purpose of refinancing a maturing                Loan. |
|--------|-----|------------------------------------------------------------------------------------------|

**S&P**

**Screen      Rate**

**Secretary      of State**

**Security      Interest**

**Sterling**
**£**

**Subsidiary      **

|   | (a) | a                subsidiary within the meaning of section 736 of the Companies Act                1985 as                amended by the Limited Liability Partnership Regulations 2001;                and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | unless                the context otherwise requires, a subsidiary undertaking within the                meaning of section 258 of the Companies Act 1985 as amended by the                Limited                Liability Partnership Regulations                2001. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**TARGET      Day**

**Tax**

**Tax      Deduction**

**Tax      Payment**

**Term**

**Total      Commitments**

**Transfer      Certificate**

**U.K.**

**U.S.      Dollars**
**U.S.$**

**Utilisation      Date**

| **1.2** | **Construction** |
|---------|------------------|

| (a) | The                following definitions have the meanings given to them in Clause 19.1                (Definitions): |
|-----|-----------------------------------------------------------------------------------------------------------------------|

|   | (i) | Consolidated                EBITDA; |
|--------|-----|-------------------------------------|

|   | (ii) | Interest                Payable; |
|--------|------|----------------------------------|

|   | (iii) | Measurement                Period; |
|--------|-------|------------------------------------|

|   | (iv) | Regulatory                Asset Base; and |
|--------|------|-------------------------------------------|

|   | (v) | Total                Net Debt. |
|--------|-----|--------------------------------|

| (b) | In                this Agreement, unless the contrary intention appears, a reference                to: |
|-----|---------------------------------------------------------------------------------------------------------|

|   | (i) | an                **amendment**                includes a supplement, novation, restatement or re-enactment and                **amended**                will be construed accordingly; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**assets**

**authorisation**

**Barclays      Capital**

**disposal**
**dispose**

**indebtedness**

**know      your customer requirements**

**person**

**regulation**

**Winding-up**

|   | (ii) | a                currency is a reference to the lawful currency for the time being                of the                relevant country; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | a                Default being **outstanding**                means that it has not been remedied or                waived; |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | a                provision of law is a reference to that provision as extended, applied,                amended or re-enacted and includes any subordinate                legislation; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | a                Clause, a Subclause or a Schedule is a reference to a clause or subclause                of, or a schedule to, this                Agreement; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | a                person includes its successors in title, permitted assigns and permitted                transferees; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------|

|   | (vii) | a                Finance Document or another document is a reference to that Finance                Document or other document as amended;                and |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | a                time of day is a reference to London                time. |
|--------|--------|----------------------------------------------------------------------------|

| (c) | Unless                the contrary intention appears, a reference to a **month**                or                **months**                is                a reference to a period starting on one day in a calendar month and                ending                on the numerically corresponding day in the next calendar month or                the                calendar month in which it is to end, except                that: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | if                the numerically corresponding day is not a Business Day, the period                will                end on the next Business Day in that month (if there is one) or the                preceding Business Day (if there is                not); |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | if                there is no numerically corresponding day in that month, that period                will                end on the last Business Day in that month;                and |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | notwithstanding                subparagraph (i) above, a period which commences on the last Business                Day                of a month will end on the last Business Day in the next month or                the                calendar month in which it is to end, as                appropriate. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Unless                expressly provided to the contrary in a Finance Document, a person                who is                not a party to a Finance Document may not enforce any of its terms                under                the Contracts (Rights of Third Parties) Act 1999 and notwithstanding                any                term of any Finance Document, the consent of any third party is not                required for any variation (including any release or compromise of                any                liability) or termination of that Finance                Document. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Unless                the contrary intention appears: |
|-----|-------------------------------------------------------|

|   | (i) | a                reference to a Party will not include that Party if it has ceased                to be a                Party under this Agreement; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | a                word or expression used in any other Finance Document or in any notice                given in connection with any Finance Document has the same meaning                in that                Finance Document or notice as in this Agreement;                and |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | any                obligation of the Borrower under the Finance Documents which is not                a                payment obligation remains in force for so long as any payment obligation                of the Borrower is or may be outstanding under the Finance                Documents. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | The                headings in this Agreement do not affect its                interpretation. |
|-----|------------------------------------------------------------------------------------------------|

| **2.** | **FACILITIES** |
|--------|----------------|

| **2.1** | **Facility** |
|---------|--------------|

| **2.2** | **Nature                of a Finance Party's rights and                obligations** |
|---------|--------------------------------------------------------------------------------------|

|   | (a) | the                obligations of a Finance Party under the Finance Documents are                several; |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

|   | (b) | failure                by a Finance Party to perform its obligations does not affect the                obligations of any other Party under the Finance                Documents; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | no                Finance Party is responsible for the obligations of any other Finance                Party under the Finance Documents; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the                rights of a Finance Party under the Finance Documents are separate                and                independent rights; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | a                debt arising under the Finance Documents to a Finance Party is a                separate                and independent debt; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | a                Finance Party may, except as otherwise stated in the Finance Documents,                separately enforce those rights. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

| **3.** | **PURPOSE** |
|--------|-------------|

| **3.1** | **Loans** |
|---------|-----------|

| **3.2** | **No                obligation to monitor** |
|---------|---------------------------------------------|

| **4.** | **CONDITIONS                PRECEDENT** |
|--------|-----------------------------------------|

| **4.1** | **Conditions                precedent documents** |
|---------|---------------------------------------------------|

| **4.2** | **Further                conditions precedent** |
|---------|-------------------------------------------------|

|   | (a) | the                Repeating Representations are correct in all material respects;                and |
|--------|-----|-------------------------------------------------------------------------------------------------------|

|   | (b) | no                Default or, in the case of a Rollover Loan, no Event of Default is                outstanding or would result from the                Loan. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **4.3** | **Maximum                number** |
|---------|-----------------------------------|

| **5.** | **UTILISATION** |
|--------|-----------------|

| **5.1** | **Giving                of Requests** |
|---------|---------------------------------------|

| (a) | The                Borrower may borrow a Loan by giving to the Facility Agent a duly                completed Request. |
|-----|------------------------------------------------------------------------------------------------------------------------|

| (b) | Unless                the Facility Agent otherwise agrees, the latest time for receipt                by the                Facility Agent of a duly completed Request is 11.00 a.m. one Business                Day before the Rate Fixing Day for the proposed                borrowing. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Each                Request is irrevocable. |
|-----|---------------------------------------------|

| **5.2** | **Completion                of Requests** |
|---------|-------------------------------------------|

|   | (a) | the                Utilisation Date is a Business Day falling within the Availability                Period; |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

|   | (b) | The                amount of the Loan requested is: |
|--------|-----|-----------------------------------------------------|

|   | (i) | a                minimum of £5,000,000                or                its equivalent in accordance with Clause 7.5 (Optional Currency                equivalents), and an integral multiple of 1,000,000 units of that                currency; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the                maximum undrawn amount available under this Agreement for Loans under                the                Facility on the proposed Utilisation Date;                or |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | such                other amount as the Facility Agent may agree;                and |
|--------|-------|--------------------------------------------------------------------------------------|

|   | (c) | the                proposed Term complies with this                Agreement. |
|--------|-----|-------------------------------------------------------------------------------|

| **5.3** | **Advance                of Loan** |
|---------|------------------------------------|

| (a) | The                Facility Agent must promptly notify each Lender of the details of                the                requested Loan and the amount of its share in that                Loan. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The                amount of each Lender's share of the Loan will be its Pro Rata Share                on                the proposed Utilisation Date. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | No                Lender is obliged to participate in a Loan if as a result the Loans                would                exceed the Total Commitments. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | If                the conditions set out in this Agreement have been met, each Lender                must                make its share in the Loan available to the Facility Agent for the                Borrower on the Utilisation Date. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **6.** | **EXTENSION                OPTION** |
|--------|-------------------------------------|

| (a) | The                Borrower may by notice to the Facility Agent (the **Initial                Extension Request**)                not more than 60 days and not less than 30 days before the first                anniversary of the date of this Agreement, request that the Final                Maturity                Date be extended for a further period of one                year. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The                Borrower may by notice to the Facility Agent (the **Second                Extension Request**)                not more than 60 days and not less than 30 days before the second                anniversary of the date of this Agreement, request that the Final                Maturity                Date: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | with                respect to Lenders who have agreed to the Initial Extension Request,                be                extended for a further period of one year;                and/or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | if                no Initial Extension Request has been made, or with respect to Lenders                who                refused the Initial Extension                Request: |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | be                extended for a period of one year;                or |
|--------|-----|------------------------------------------------------------------------|

|   | (B) | be                extended for a period of two years, |
|--------|-----|-------------------------------------------------------|

| (c) | The                Facility Agent must promptly notify the Lenders of any Initial Extension                Request or Second Extension Request (an **Extension                Request**). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Each                Lender may, in its sole discretion, agree to any Extension Request.                Each                Lender that agrees to an Extension Request by the date falling 15                days                before, the relevant anniversary of the date of this Agreement, will                extend its Commitment for a further period of one year or two years,                as                applicable, from the then current Final Maturity Date and the Final                Maturity Date with respect to the Commitment of that Lender will                be                extended accordingly. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | If                any Lender fails to reply to an Extension Request on or before the                date                falling 15 days before the relevant anniversary of the date of this                Agreement, it will be deemed to have refused that Extension Request                and                its Commitment will not be                extended. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | Subject                to paragraph (h) below, each Extension Request is                irrevocable. |
|-----|------------------------------------------------------------------------------------------------------|

| (g) | If                one or more (but not all) of the Lenders agree to an Extension Request,                then the Facility Agent must notify the Borrower and the Lenders                which                have agreed to the extension, identifying in that notification which                Lenders have not agreed to the Extension                Request. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | The                Borrower may, on the basis that one or more of the Lenders have not                agreed                to the Extension Request and no later than the date falling five                days                before the relevant anniversary of the date of this Agreement, withdraw                the request by notice to the Facility Agent which will promptly notify                the                Lenders. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.** | **OPTIONAL                CURRENCIES** |
|--------|----------------------------------------|

| **7.1** | **General** |
|---------|-------------|

**Agent's      Spot Rate of Exchange**

**Pre-approved      Currency**

**Sterling      Amount**

|   | (a) | if                the Loan is denominated in Sterling, its amount;                or |
|--------|-----|--------------------------------------------------------------------------------------|

|   | (b) | in                the case of any Loan denominated in an Optional Currency, its equivalent                in Sterling calculated on the basis of the Agent's Spot Rate of Exchange                one Business Day before the Rate Fixing Day for that                Term. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.2** | **Selection** |
|---------|---------------|

| (a) | The                Borrower must select the currency of a Loan in its Request. The Borrower                may select Sterling or an Optional Currency for a                Loan. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Unless                the Facility Agent otherwise agrees, the Loans may not be denominated                at                any one time in more than three                currencies. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.3** | **Selection                of Optional Currencies** |
|---------|-----------------------------------------------------|

| (a) | A                Loan may be denominated in an Optional Currency for a Term                if: |
|-----|------------------------------------------------------------------------------------------------|

|   | (i) | that                Optional Currency is readily available in the amount required and                freely                convertible into Sterling in the relevant interbank market on the                Rate                Fixing Day and the first day of that Term;                and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | that                Optional Currency is a Pre-approved Currency or has been previously                approved by the Facility Agent (acting on the instruction of all                the                Lenders). |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | If                the Facility Agent has received a request from the Borrower for a                currency                to be approved as an Optional Currency (other than a Pre-approved                Currency), the Facility Agent must, within five Business Days, confirm                to                the Borrower: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | whether                or not the Lenders have given their approval;                and |
|--------|-----|-----------------------------------------------------------------------------------------|

|   | (ii) | if                approval has been given, the minimum amount (and, if required, integral                multiples) for any Loan in that                currency. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.4** | **Revocation                of currency** |
|---------|-------------------------------------------|

| (a) | Notwithstanding                any other term of this Agreement, if before 9.30 a.m. on any Rate                Fixing Day the Facility Agent receives notice from a Lender                that: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the                Optional Currency requested is not readily available to it in the                relevant                interbank market in the amount and for the period required;                or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | participating                in a Loan in the proposed Optional Currency might contravene any                law or                regulation applicable to it, |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | In                this event: |
|-----|-------------------------------|

|   | (i) | that                Lender must participate in the Loan in Sterling;                and |
|--------|-----|-----------------------------------------------------------------------------------------|

|   | (ii) | the                share of that Lender in the Loan and any other similarly affected                Lender(s) will be treated as a separate Loan denominated in Sterling                during that Term. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Any                part of a Loan treated as a separate Loan under this Subclause will                not be                taken into account for the purposes of any limit on the number of                Loans or                currencies outstanding at any one                time. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | A                Loan will still be treated as a Rollover Loan if it is not denominated                in                the same currency as the maturing Loan by reason only of the operation                of                this Subclause. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.5** | **Optional                Currency equivalents** |
|---------|--------------------------------------------------|

|   | (a) | whether                any limit under this Agreement has been                exceeded; |
|--------|-----|-----------------------------------------------------------------------------------------|

|   | (b) | the                amount of a Loan; |
|--------|-----|--------------------------------------|

|   | (c) | the                share of a Lender in a Loan; |
|--------|-----|-------------------------------------------------|

|   | (d) | the                amount of any repayment of a Loan;                or |
|--------|-----|-------------------------------------------------------------------------|

|   | (e) | the                undrawn amount of a Lender's                Commitment, |
|--------|-----|----------------------------------------------------------------------------|

| **7.6** | **Notification** |
|---------|------------------|

| **8.** | **REPAYMENT                OF LOANS** |
|--------|---------------------------------------|

| **9.** | **PREPAYMENT                AND CANCELLATION** |
|--------|------------------------------------------------|

| **9.1** | **Mandatory                prepayment - illegality** |
|---------|------------------------------------------------------|

| (a) | A                Lender must notify the Borrower promptly if it becomes aware that                it is                unlawful in any jurisdiction for that Lender to perform any of its                obligations under a Finance Document or to fund or maintain its share                in                any Loan. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | After                notification under paragraph (a)                above: |
|-----|-----------------------------------------------------------------------------|

|   | (i) | the                Borrower must repay or prepay the share of that Lender in each Loan                made                to it on the date specified in paragraph (c) below;                and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the                Commitment of that Lender will be immediately                cancelled. |
|--------|------|--------------------------------------------------------------------------------------------|

| (c) | The                date for repayment or prepayment of a Lender's share in a Loan will                be: |
|-----|-----------------------------------------------------------------------------------------------------------|

|   | (i) | the                Business Day following receipt by the Borrower of notice from the                Lender                under paragraph (a) above; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | if                later, the latest date allowed by the relevant                law. |
|--------|------|--------------------------------------------------------------------------------------|

| **9.2** | **Mandatory                prepayment - change of                control** |
|---------|----------------------------------------------------------------------------|

| (a) | If,                except in the context of a group reorganisation where the Borrower                continues to be controlled directly or indirectly, by PPL Corporation,                the                Borrower becomes aware of any person (whether alone or together with                any                associated person or persons) gaining control of the Borrower (for                these                purposes "associated person" means, in relation to any person, a                person                who is (i) "acting in concert" (as defined in the City Code on Takeovers                and Mergers) with that person or (ii) a "connected person" (as defined                in                section 839 of the Income and Corporation Taxes Act 1988) of that                person, and "control" has the meaning given to it in section 416 of                the Income and Corporation Taxes Act                1988): |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the                Borrower shall promptly give notice of such change of control to                the                Facility Agent; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the                Lenders and the Borrower shall immediately enter into negotiations                for a                period of not more than 30 days from the date of the change of                control with a view to agreeing whether the Facility shall continue                to be                made available and on what terms; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | during                this 30-day negotiation period, the Borrower may not issue a Request                for a                Loan that is not a Rollover Loan, unless otherwise agreed by the                Majority                Lenders; and |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | if                no such agreement is reached within the said period of 30 days                then: |
|--------|------|------------------------------------------------------------------------------------------------------------|

|   | (A) | any                Lender may on 10 days' notice to the Facility Agent and to the Borrower                require the repayment of its share in each Loan and cancel its Commitment;                and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | the                Majority Lenders may on 10 days' notice to the Borrower require repayment                in full of all outstanding Loans and cancel the Total                Commitments. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **9.3** | **Voluntary                prepayment** |
|---------|-----------------------------------------|

| (a) | The                Borrower may, by giving not less than three                Business Days' prior notice to the Facility Agent, prepay any Loan                at any                time in whole or in part. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | A                prepayment of part of a Loan drawn in US Dollars must be in a minimum                amount of $5,000,000                and an integral multiple of U.S. $1,000,000. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | A                prepayment of part of a Loan drawn in Sterling or any Optional Currency                other than US Dollar must be in a minimum amount of £5,000,000 (or its                equivalent) and an integral multiple of £1,000,000 (or its                equivalent). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **9.4** | **Automatic                cancellation** |
|---------|-------------------------------------------|

| **9.5** | **Voluntary                cancellation** |
|---------|-------------------------------------------|

| (a) | The                Borrower may, by giving not less than three                Business Days' prior notice to the Facility Agent, cancel the unutilised                amount of the Total Commitments in whole or in                part. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Partial                cancellation of the Total Commitments must be in a minimum amount                of                £5,000,000                and an integral multiple of £1,000,000. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Any                cancellation in part will be applied against the relevant Commitment                of                each Lender *pro                rata*. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **9.6** | **Involuntary                prepayment and                cancellation** |
|---------|---------------------------------------------------------------------------|

| (a) | If                the Borrower is, or will be, required to pay to a Lender a Tax Payment                or                an Increased Cost, the Borrower may, while the requirement continues,                give                notice to the Facility Agent requesting prepayment and cancellation                in                respect of that Lender. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | After                notification under paragraph (a)                above: |
|-----|----------------------------------------------------------------------------------|

|   | (i) | the                Borrower must repay or prepay that Lender's share in each Loan made                to it                on the date specified in paragraph (c) below;                and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the                Commitment of that Lender will be immediately                cancelled. |
|--------|------|--------------------------------------------------------------------------------------------|

| (c) | The                date for repayment or prepayment of a Lender's share in a Loan will                be the                last day of the current Term for that Loan or, if earlier, the date                specified by the Borrower in its                notification. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **9.7** | **Re-borrowing                of Loans** |
|---------|------------------------------------------|

| **9.8** | **Miscellaneous                provisions** |
|---------|---------------------------------------------|

| (a) | Any                notice of prepayment and/or cancellation under this Agreement is                irrevocable and must specify the relevant date(s) and the affected                Loans                and Commitments. The Facility Agent must notify the Lenders promptly                of                receipt of any such notice. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | All                prepayments under this Agreement must be made with accrued interest                on the                amount prepaid. No premium or penalty is payable in respect of any                prepayment except for Break Costs. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | The                Majority Lenders may agree a shorter notice period for a voluntary                prepayment or a voluntary                cancellation. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | No                prepayment or cancellation is allowed except in accordance with the                express terms of this Agreement. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

| (e) | No                amount of the Total Commitments cancelled under this Agreement may                subsequently be reinstated. |
|-----|---------------------------------------------------------------------------------------------------------------------------------|

| **10.** | **INTEREST** |
|---------|--------------|

| **10.1** | **Calculation                of interest** |
|----------|--------------------------------------------|

|   | (a) | Margin; |
|--------|-----|---------|

|   | (b) | LIBOR;                and |
|--------|-----|---------------------------|

|   | (c) | Mandatory                Cost. |
|--------|-----|--------------------------------|

| **10.2** | **Payment                of interest** |
|----------|----------------------------------------|

| **10.3** | **Interest                on overdue amounts** |
|----------|------------------------------------------------|

| (a) | If                the Borrower fails to pay any amount payable by it under the Finance                Documents, it must immediately on demand by the Facility Agent pay                interest on the overdue amount from its due date up to the date of                actual                payment, both before, on and after                judgment. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Interest                on an overdue amount is payable at a rate determined by the Facility                Agent                to be 1% per annum above the rate which would have been payable if                the                overdue amount had, during the period of non-payment, constituted                a Loan                in the currency of the overdue amount. For this purpose, the Facility                Agent may (acting reasonably): |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | select                successive Terms of any duration of up to three months;                and |
|--------|-----|--------------------------------------------------------------------------------------------------|

|   | (ii) | determine                the appropriate Rate Fixing Day for that                Term. |
|--------|------|----------------------------------------------------------------------------------------|

| (c) | Notwithstanding                paragraph (b) above, if the overdue amount is a principal amount of a                Loan and becomes due and payable prior to the last day of its current                Term, then: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the                first Term for that overdue amount will be the unexpired portion                of that                Term; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the                rate of interest on the overdue amount for that first Term will be                1% per                annum above the rate then payable on that                Loan. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Interest                (if unpaid) on an overdue amount will be compounded with that overdue                amount at the end of each of its Terms but will remain immediately                due and                payable. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **10.4** | **Notification                of rates of interest** |
|----------|------------------------------------------------------|

| **10.5** | **Margin** |
|----------|------------|

| (a) | The                applicable Margin for all Loans will be determined in accordance                with the                table below and by reference to the percentage rate per annum specified                in                Column 2 as set out below opposite the long term credit rating assigned                to                the Borrower and published by Moody's and/or S&P as specified in                Column 1 as set out below; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Column                1****Credit                Rating****(S&P/Moody's)** | **Column                2****Margin****%** |
|----------------------------------------------------------------------------------|--------------------------------------------|

| BBB+/Baa1                (or higher) | 0.35 |
|--------------------------------------|------|

| BBB/Baa2 | 0.45 |
|----------|------|

| BBB-/Baa3 | 0.65 |
|-----------|------|

| BB+/Ba1 | 0.80 |
|---------|------|

| BB/Ba2                (or lower) | 1.00 |
|----------------------------------|------|

| (b) | Initially                the applicable Margin shall be 0.65% per annum. |
|-----|--------------------------------------------------------------------------|

| (c) | During                any period in which (i) an Event of Default is outstanding; and/or                (ii)                there is no long term credit rating assigned to the Borrower by either                S&P or Moody's, the applicable Margin shall, in each case, be 1.00%                per annum. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | In                the event that the long term credit ratings assigned to the Borrower                by                S&P and Moody's would indicate a different Margin under (a) above then                the lower of the two credit ratings shall apply to determine the                applicable Margin, save that, in the event that there is more than                one                notch difference between the two credit ratings, then the middle                level                shall apply to determine the applicable Margin and, in the event                that                there are an even number of levels between the two credit ratings                (and                therefore no middle level) the higher of the two middle levels shall                be                used to determine the applicable                Margin. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Any                adjustment to the Margin pursuant to paragraphs (a) to (d) above                shall be                made on the date of publication by S&P and/or Moody's of a long term                credit rating of the Borrower (or an amendment of a previously published                rating) or on the date in which no long term credit rating is assigned                to                the Borrower, if such publication (or amendment) would result in                a change                in the Margin as provided above and, for the avoidance of doubt,                such                adjustment shall apply to Loans currently outstanding at such date                of                publication and with effect from such                date. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | Promptly                after becoming aware of the same, the Borrower shall inform the Facility                Agent in writing if any of the circumstances contemplated by paragraphs                (b) through (d) apply. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **11.** | **TERMS** |
|---------|-----------|

| **11.1** | **Selection                - Loans** |
|----------|--------------------------------------|

| (a) | Each                Loan has one Term only. |
|-----|---------------------------------------------|

| (b) | The                Borrower must select the Term for a Loan in the relevant                Request. |
|-----|-----------------------------------------------------------------------------------------------------|

| (c) | Subject                to the following provisions of this Clause, each Term for a Loan                will be                one, two, three or six months' or for a period of one to thirty days'                duration as selected by the Borrower or any other period agreed by                the                Borrower and the Lenders. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | The                Borrower shall not use its right under paragraph (c) above to select                for a                Loan a Term of less than one month's duration more than six times                in any                calendar year. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **11.2** | **No                overrunning the Final Maturity                Date** |
|----------|--------------------------------------------------------------------------|

| **11.3** | **Other                adjustments** |
|----------|--------------------------------------|

| **11.4** | **Notification** |
|----------|------------------|

| **12.** | **MARKET                DISRUPTION** |
|---------|--------------------------------------|

| **12.1** | **Failure                of a Reference Bank to supply a                rate** |
|----------|--------------------------------------------------------------------------------|

| **12.2** | **Market                disruption** |
|----------|--------------------------------------|

| (a) | In                this Clause, each of the following events is a **market                disruption event**: |
|-----|--------------------------------------------------------------------------------------------------------------|

|   | (i) | LIBOR                is to be calculated by reference to the Reference Banks but no, or                only                one, Reference Bank supplies a rate by 12.00 noon on the Rate Fixing                Day;                or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the                Facility Agent receives by close of business on the Rate Fixing Day                notification from Lenders whose shares in the relevant Loan exceed                50% of                that Loan that such Lenders are unable to obtain matching deposits                in the                relevant interbank market or the rate at which they can do so is                in excess                of LIBOR for the relevant Term. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The                Facility Agent must promptly notify the Borrower and the Lenders                of a                market disruption event. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | After                notification under paragraph (b) above, the rate of interest on each                Lender's share in the affected Loan for the relevant Term will be                the                aggregate of the applicable: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Margin; |
|--------|-----|---------|

|   | (ii) | rate                notified to the Facility Agent by that Lender as soon as practicable,                and                in any event before interest is due to be paid in respect of that                Term, to                be that which expresses as a percentage rate per annum the cost to                that                Lender of funding its share in that Loan from whatever source it                may                reasonably select; and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Mandatory                Cost. |
|--------|-------|--------------------------------|

| **12.3** | **Alternative                basis of interest or                funding** |
|----------|----------------------------------------------------------------------------|

| (a) | If                a market disruption event occurs and the Facility Agent or the Borrower                so                requires, the Borrower and the Facility Agent must enter into negotiations                for a period of not more than 30 days with a view to agreeing an                alternative basis for determining the rate of interest and/or funding                for                the affected Loan and any future                Loan. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Any                alternative basis agreed will be, with the prior consent of all the                Lenders, binding on all the                Parties. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| **13.** | **TAXES** |
|---------|-----------|

| **13.1** | **General** |
|----------|-------------|

**Tax      Credit**

**U.K.      Lender**

| **13.2** | **Tax                gross-up** |
|----------|---------------------------------|

| (a) | The                Borrower must make all payments to be made by it under the Finance                Documents without any Tax Deduction, unless a Tax Deduction is required                by                law. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | If: |
|-----|-----|

|   | (i) | a                Lender is not, or ceases to be, a U.K. Lender;                or |
|--------|-----|-----------------------------------------------------------------------------------|

|   | (ii) | the                Borrower or a Lender is aware that the Borrower must make a Tax Deduction                (or that there is a change in the rate or the basis of a Tax                Deduction), |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Except                as provided below, if a Tax Deduction is required by law to be made                by the                Borrower or the Facility Agent, the amount of the payment due from                the                Borrower will be increased to an amount which (after making the Tax                Deduction) leaves an amount equal to the payment which would have                been due                if no Tax Deduction had been                required. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Except                as provided below, the Borrower is not required to make an increased                payment under paragraph (c) above to a Lender that is not, or has                ceased to be, a U.K. Lender in excess of the amount that the Borrower                would have had to pay had the Lender been, or not ceased to be, a                U.K.                Lender. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Paragraph                (d) above will not apply if the Lender has ceased to be a U.K. Lender                by                reason of any change after the date it became a Lender under this                Agreement in (or in the interpretation, administration, or application                of)                any law or double taxation agreement or any published practice or                concession of any relevant taxing                authority. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | Where                a Lender fails to give notice under paragraph (b) above within 60                days                after it obtains knowledge (or, after reasonable due enquiry, ought                to                have obtained knowledge) of such event, then such Lender shall, with                respect to any claim made by it under this Clause 13.2 (Tax gross-up),                only be entitled to claim an increased payment for the period from                and                after the date that is 60 days prior to the date on which the Lender                does                give notice. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | If                the Borrower is required to make a Tax Deduction, it must make the                minimum                Tax Deduction and must make any payment required in connection with                that                Tax Deduction within the time allowed by                law. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | Within                30 days of making either a Tax Deduction or a payment required in                connection with a Tax Deduction, the Borrower must deliver to the                Facility                Agent for the relevant Finance Party evidence satisfactory to that                Finance                Party (acting reasonably) that the Tax Deduction has been made or                (as                applicable) the appropriate payment has been paid to the relevant                taxing                authority. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **13.3** | **Tax                indemnity** |
|----------|----------------------------------|

| (a) | Except                as provided below, the Borrower must indemnify a Finance Party against                any                loss or liability which that Finance Party (in its absolute discretion)                determines will be or has been suffered (directly or indirectly)                by that                Finance Party for or on account of Tax in relation to a payment received                or receivable (or any payment deemed to be received or receivable)                under a                Finance Document. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Paragraph (a)                above does not apply to any Tax assessed on a Finance Party under                the laws                of the jurisdiction in which: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | that                Finance Party is incorporated or, if different, the jurisdiction                (or                jurisdictions) in which that Finance Party is treated as resident                for tax                purposes; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | that                Finance Party's Facility Office is located in respect of amounts                received                or receivable in that jurisdiction, |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | A                Finance Party making, or intending to make, a claim under                paragraph (a) above must promptly notify the Borrower of the event                which will give, or has given, rise to the                claim. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **13.4** | **Tax                Credit** |
|----------|-------------------------------|

| **13.5** | **Tax                Warranty of Lenders** |
|----------|--------------------------------------------|

| **13.6** | **Stamp                taxes** |
|----------|--------------------------------|

| **13.7** | **Value                added taxes** |
|----------|--------------------------------------|

| (a) | All                costs and expenses payable under a Finance Document by the Borrower                are                exclusive of any value added tax or any other Tax of a similar nature                which might be chargeable in connection with that amount. If any                such Tax                is chargeable, the Borrower must pay to the Finance Party (in addition                to                and at the same time as paying that amount) an amount equal to the                amount                of that Tax. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The                obligation of the Borrower under paragraph (a) above will be reduced                to the extent that the Finance Party determines (acting reasonably)                that                it is entitled to repayment or a credit in respect of the relevant                Tax. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **14.** | **INCREASED                COSTS** |
|---------|------------------------------------|

| **14.1** | **Increased                Costs** |
|----------|------------------------------------|

|   | (a) | the                introduction of, or any change in, or any change in the interpretation                or                application of, any law or regulation;                or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | compliance                with any law or regulation, |
|--------|-----|-------------------------------------------------------|

| **14.2** | **Exceptions** |
|----------|----------------|

|   | (a) | compensated                for under another Clause or would have been but for an exception                to that                Clause; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | a                Tax on the overall net income of a Finance Party or any of its                Affiliates; |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (c) | attributable                to a Finance Party or its Affiliate wilfully failing to comply with                any                law or regulation; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | attributable                to the implementation or application of or compliance with the                "International Convergence of Capital Measurement and Capital Standards,                a                Revised Framework" published by Basel Committee on Banking and Supervision                in June 2004 in the form existing on the date of this Agreement                (**Basel                II**)                or any other law or regulation which implements Basel II (whether                such                implementation, application or compliance is by a government, regulator,                Finance Party or any of its Affiliates);                or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | incurred                in any period or periods ending prior to the date falling 60 days                before                the date any demand in relation to that Increased Cost is made (save                where                the relevant Finance Party (after due enquiry) was unaware of the                existence of such Increased Cost or where such Increased Cost is                caused by                reason of a change in (or in the interpretation, administration or                application of) law with retrospective                effect). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **14.3** | **Claims** |
|----------|------------|

| **15.** | **MITIGATION** |
|---------|----------------|

| **15.1** | **Mitigation** |
|----------|----------------|

| (a) | Each                Finance Party must, in consultation with the Borrower, take all reasonable                steps to mitigate any circumstances which arise and which result                or would                result in: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | any                Tax Payment or Increased Cost being payable to that Finance                Party; |
|--------|-----|------------------------------------------------------------------------------------------------------|

|   | (ii) | that                Finance Party being able to exercise any right of prepayment and/or                cancellation under this Agreement by reason of any                illegality; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | that                Finance Party incurring any cost of complying with the minimum reserve                requirements of the European Central Bank;                or |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | the                occurrence of any market disruption                event, |
|--------|------|------------------------------------------------------------------------------|

| (b) | A                Finance Party is not obliged to take any step under this Subclause                if, in                the opinion of that Finance Party (acting reasonably), to do so might                be                prejudicial to it. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Each                Finance Party must promptly notify the Borrower of any circumstances                as                described in 15.1(a)(i) to (iv). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | The                Borrower must indemnify each Finance Party for all costs and expenses                reasonably incurred by it as a result of any step taken under this                Clause                15.1 (Mitigation). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **15.2** | **Substitution** |
|----------|------------------|

|   | (a) | any                Tax Payment or Increased Cost being payable to that Finance                Party; |
|--------|-----|------------------------------------------------------------------------------------------------------|

|   | (b) | that                Finance Party being able to exercise any right of prepayment and/or                cancellation under this Agreement by reason of any                illegality; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | that                Finance Party incurring any cost of complying with the minimum reserve                requirements of the European Central Bank;                or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the                occurrence of any market disruption                event, |
|--------|-----|------------------------------------------------------------------------------|

|   | (i) | such                novation shall not conflict with or violate any law applicable to                or                binding on such Finance Party (or, if applicable, its Affiliate);                and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the                Borrower shall have paid to the Finance Party (or, if applicable,                its                Affiliate) all amounts accrued and owing                hereunder. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | the                relevant Finance Party shall have mitigated the effect of the relevant                event or circumstance as provided in Clause 15.1(a), and the novation                would have no greater or further mitigating effect;                or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | the                relevant event or circumstances are applicable to all Finance                Parties. |
|--------|-----|----------------------------------------------------------------------------------------------------------|

| **15.3** | **Conduct                of business by a Finance                Party** |
|----------|--------------------------------------------------------------------------|

|   | (a) | interfere                with the right of any Finance Party to arrange its affairs (Tax or                otherwise) in whatever manner it thinks fit or oblige any Finance                Party to                investigate or claim any Tax Credit;                or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | oblige                any Finance Party to disclose any information relating to its affairs                (Tax                or otherwise) or any computation in respect of                Tax. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **16.** | **PAYMENTS** |
|---------|--------------|

| **16.1** | **Place** |
|----------|-----------|

|   | (a) | in                the principal financial centre of the country of the relevant currency;                or |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (b) | in                the case of euro, in the principal financial centre of a Participating                Member State or London, |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------|

| **16.2** | **Funds** |
|----------|-----------|

| **16.3** | **Distribution** |
|----------|------------------|

| (a) | Each                payment received by the Facility Agent under the Finance Documents                for                another Party must, except as provided below, be made available by                the                Facility Agent to that Party by payment (as soon as practicable after                receipt) to its account with such office or                bank: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | in                the principal financial centre of the country of the relevant currency;                or |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (ii) | in                the case of euro, in the principal financial centre of a Participating                Member State or London, |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------|

| (b) | The                Facility Agent may apply any amount received by it for the Borrower                in or                towards payment (as soon as practicable after receipt) of any amount                due                from the Borrower under the Finance Documents or in or towards the                purchase of any amount of any currency to be so                applied. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Where                a sum is paid to the Facility Agent under this Agreement for another                Party, the Facility Agent is not obliged to pay that sum to that                Party                until it has established that it has actually received it. However,                the                Facility Agent may assume that the sum has been paid to it, and,                in                reliance on that assumption, make available to that Party a corresponding                amount. If it transpires that the sum has not been received by the                Facility Agent, that Party must immediately on demand by the Facility                Agent refund any corresponding amount made available to it together                with                interest on that amount from the date of payment to the date of receipt                by                the Facility Agent at a rate calculated by the Facility Agent to                reflect                its cost of funds. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **16.4** | **Currency** |
|----------|--------------|

| (a) | Unless                a Finance Document specifies that payments under it are to be made                in a                different manner, the currency of each amount payable under the Finance                Documents is determined under this                Clause. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Interest                is payable in the currency in which the relevant amount in respect                of                which it is payable is denominated. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | A                repayment or prepayment of any principal amount is payable in the                currency                in which that principal amount is denominated on its due                date. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Amounts                payable in respect of costs and expenses are payable in the currency                in                which they are incurred. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Each                other amount payable under the Finance Documents is payable in                Sterling. |
|-----|-------------------------------------------------------------------------------------------------------------|

| **16.5** | **No                set-off or counterclaim** |
|----------|-----------------------------------------------|

| **16.6** | **Business                Days** |
|----------|----------------------------------|

| (a) | If                a payment under the Finance Documents is due on a day which is not                a                Business Day, the due date for that payment will instead be the next                Business Day in the same calendar month (if there is one) or the                preceding                Business Day (if there is not) or whatever day the Facility Agent                determines is market practice. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | During                any extension of the due date for payment of any principal under                this                Agreement interest is payable on that principal at the rate payable                on the                original due date. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **16.7** | **Partial                payments** |
|----------|-------------------------------------|

| (a) | If                any Administrative Party receives a payment insufficient to discharge                all                the amounts then due and payable by the Borrower under the Finance                Documents, the Administrative Party must apply that payment towards                the                obligations of the Borrower under the Finance Documents in the following                order: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **(i)** | **first**,                in or towards payment *pro                rata*of                any unpaid fees, costs and expenses of the Administrative Parties                under                the Finance Documents; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **(ii)** | **secondly**,                in or towards payment *pro                rata*of                any accrued interest or fee due but unpaid under this                Agreement; |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **(iii)** | **thirdly**,                in or towards payment *pro                rata*of                any principal amount due but unpaid under this Agreement;                and |
|--------|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **(iv)** | **fourthly**,                in or towards payment *pro                rata*of                any other sum due but unpaid under the Finance                Documents. |
|--------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The                Facility Agent must, if so directed by all the Lenders, vary the                order set                out in subparagraphs (a)(ii) to (iv)                above. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | This                Subclause will override any appropriation made by the                Borrower. |
|-----|----------------------------------------------------------------------------------------------------|

| **16.8** | **Timing                of payments** |
|----------|---------------------------------------|

| **17.** | **REPRESENTATIONS** |
|---------|---------------------|

| **17.1** | **Representations** |
|----------|---------------------|

| **17.2** | **Status** |
|----------|------------|

| **17.3** | **Powers                and authority** |
|----------|-----------------------------------------|

| **17.4** | **Legal                validity** |
|----------|-----------------------------------|

| **17.5** | **Non-conflict** |
|----------|------------------|

|   | (a) | any                law or regulation applicable to it and violation of which has or                is likely                to have a Material Adverse Effect;                or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | its                constitutional documents. |
|--------|-----|----------------------------------------------|

| **17.6** | **No                Event of Default** |
|----------|----------------------------------------|

| **17.7** | **Authorisations** |
|----------|--------------------|

| **17.8** | **Financial                statements** |
|----------|-----------------------------------------|

|   | (a) | have                been prepared in accordance with accounting principles and practices                generally accepted in its jurisdiction of incorporation, consistently                applied; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | fairly                represent its consolidated financial condition as at the date to                which                they were drawn up, |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

| **17.9** | **No                material adverse change** |
|----------|-----------------------------------------------|

| **17.10** | **Litigation** |
|-----------|----------------|

| **17.11** | **Winding                Up** |
|-----------|-------------------------------|

| **17.12** | **Non-Violation                of other Agreements** |
|-----------|------------------------------------------------------|

| **17.13** | **Times                for making representations** |
|-----------|-----------------------------------------------------|

| (a) | The                representations set out in this Clause are made by the Borrower on                the                date of this Agreement. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The                representations in Clauses 17.2 to 17.7 (inclusive) are deemed to                be                repeated by the Borrower on the date of each Request and the first                day of                each Term. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | When                a representation is repeated, it is applied to the circumstances                existing                at the time of repetition. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| **18.** | **INFORMATION                COVENANTS** |
|---------|------------------------------------------|

| **18.1** | **Financial                statements** |
|----------|-----------------------------------------|

| (a) | The                Borrower must supply to the Facility Agent in sufficient copies for                all                the Lenders: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | its                audited consolidated financial statements for each of its financial                years; |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

|   | (ii) | the                audited financial statements for each Distribution Company for each                of                their respective financial years;                and |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | its                interim financial statements for the first half-year of each of its                financial years. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------|

| (b) | All                financial statements must be supplied as soon as they are available                and: |
|-----|------------------------------------------------------------------------------------------------------------|

|   | (i) | in                the case of the Borrower's audited consolidated financial statements                within 180 days; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | in                the case of each Distribution Company's audited financial statements                within 180 days; and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | in                the case of the Borrower's interim financial statements within                90 days, |
|--------|-------|---------------------------------------------------------------------------------------------------------------|

| **18.2** | **Form                of Financial Statement** |
|----------|------------------------------------------------|

|   | (a) | The                Borrower and the Facility Agent (on behalf of and after consultation                with                all the Lenders) shall, on the request of the Facility Agent or the                Borrower, negotiate in good faith with a view to agreeing such amendments                to the above financial ratio and/or the definitions of the terms                used in                it as are necessary to give the Lenders comparable protection to                that                contemplated at the date of this                Agreement; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If                amendments are agreed by the Borrower and the Majority Lenders within                25                days, those amendments shall take effect in accordance with the terms                of                that agreement; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | If                such amendments are not so agreed within 25 days, the Borrower                shall: |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (i) | within                30 days after the end of that 25 day period;                and |
|--------|-----|---------------------------------------------------------------------------------------|

|   | (ii) | with                all subsequent financial statements to be delivered to the Facility                Agent                under Clause 18.1, |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| **18.3** | **Compliance                Certificate** |
|----------|-------------------------------------------|

| (a) | The                Borrower must supply to the Facility Agent a Compliance Certificate                with                each set of its financial statements, sent to the Facility Agent                under                this Agreement. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | A                Compliance Certificate must be signed by two directors of the                Borrower. |
|-----|---------------------------------------------------------------------------------------------------------|

| **18.4** | **Information                - miscellaneous** |
|----------|------------------------------------------------|

|   | (a) | copies                of all documents despatched by the Borrower to its creditors generally                or                any class of them at the same time as they are                despatched; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | promptly                upon becoming aware of them, details of any litigation, arbitration                or                administrative proceedings which are current, threatened or pending                and                which might, if adversely determined, have a Material Adverse                Effect; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | promptly                on request, a list of the then current Material Subsidiaries;                and |
|--------|-----|----------------------------------------------------------------------------------------------------------|

|   | (d) | promptly                on request, such further information regarding the financial condition                and                operations of the Group as any Finance Party through the Facility                Agent                may reasonably request. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **18.5** | **Notification                of Default** |
|----------|--------------------------------------------|

| (a) | The                Borrower must notify the Facility Agent of any Default (and the steps,                if                any, being taken to remedy it) promptly upon becoming aware of its                occurrence. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Promptly                on request by the Facility Agent, the Borrower must supply to the                Facility                Agent a certificate signed by two of its directors on its behalf,                certifying that no Default is outstanding or, if a Default is outstanding,                specifying the Default and the steps, if any, being taken to remedy                it. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **18.6** | **Use                of websites** |
|----------|------------------------------------|

| (a) | Except                as provided below, the Borrower may deliver any information under                this                Agreement to a Lender by posting it on to an electronic website                if: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the                Facility Agent and the Lender                agree; |
|--------|-----|------------------------------------------------------------------------|

|   | (ii) | the                Borrower and the Facility Agent designate an electronic website for                this                purpose; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the                Borrower notifies the Facility Agent of the address of and password                for                the website; and |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | the                information posted is in a format agreed between the Borrower and                the                Facility Agent. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Notwithstanding                the above, the Borrower must supply to the Facility Agent in paper                form a                copy of any information posted on the website together with sufficient                copies for: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | any                Lender not agreeing to receive information via the website;                and |
|--------|-----|---------------------------------------------------------------------------------------------------|

|   | (ii) | within                10 Business Days of request any other Lender, if that Lender so                requests. |
|--------|------|----------------------------------------------------------------------------------------------------------------|

| (c) | The                Borrower must promptly upon becoming aware of its occurrence, notify                the                Facility Agent if: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the                website cannot be accessed; |
|--------|-----|------------------------------------------------|

|   | (ii) | the                website or any information on the website is infected by any electronic                virus or similar software; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the                password for the website is changed;                or |
|--------|-------|---------------------------------------------------------------------------|

|   | (iv) | any                information to be supplied under this Agreement is posted on the                website                or amended after being posted. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| **18.7** | **Know                your customer requirements** |
|----------|----------------------------------------------------|

| (a) | The                Borrower must promptly on the request of any Finance Party supply                to that                Finance Party any documentation or other evidence which is reasonably                requested by that Finance Party (whether for itself, on behalf of                any                Finance Party or any prospective new Lender) to enable a Finance                Party or                prospective new Lender to carry out and be satisfied with the results                of                all applicable know your customer                requirements. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Each                Lender must promptly on the request of the Facility Agent supply                to the                Facility Agent any documentation or other evidence which is reasonably                required by the Facility Agent to carry out and be satisfied with                the                results of all know your customer                requirements. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **19.** | **FINANCIAL                COVENANTS** |
|---------|----------------------------------------|

| **19.1** | **Definitions** |
|----------|-----------------|

**Consolidated      EBITDA**

|   | (a) | adding                back Interest Payable; |
|--------|-----|----------------------------------------------|

|   | (b) | taking                no account of any exceptional or extraordinary                item; |
|--------|-----|-------------------------------------------------------------------------------------------|

|   | (c) | excluding                any amount attributable to minority                interests; |
|--------|-----|----------------------------------------------------------------------------------------|

|   | (d) | adding                back depreciation and amortisation; |
|--------|-----|-----------------------------------------------------------|

|   | (e) | taking                no account of any revaluation of an asset or any loss or gain over                book                value arising on the disposal of an asset (otherwise than in the                ordinary                course of trading) by a member of the Group during that Measurement                Period; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | taking                no account of any return on pension scheme assets or any interest                on                pension scheme liabilities. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

**Interest      Payable**

**Measurement      Period**

**Regulatory      Asset Base**

**Total      Net Debt**

| **19.2** | **Interpretation** |
|----------|--------------------|

| (a) | Except                as provided to the contrary in this Agreement, an accounting term                used in                this Clause is to be construed in accordance with the principles                applied                in connection with the Original Financial                Statements. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Any                amount in a currency other than Sterling                is                to be taken into account at its Sterling                equivalent calculated on the basis                of: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the                Facility Agent's spot rate of exchange for the purchase of the relevant                currency in the London foreign exchange market with Sterling                at                or about 11.00 a.m. on the day the relevant amount falls to be                calculated; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | if                the amount is to be calculated on the last day of a financial period                of                the Borrower, the relevant rates of exchange used by the Borrower                in, or                in connection with, its financial statements for that                period. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | No                item must be credited or deducted more than once in any calculation                under                this Clause. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|

| **19.3** | **Interest                cover** |
|----------|-----------------------------------|

| **19.4** | **Asset                Cover** |
|----------|--------------------------------|

| **20.** | **GENERAL                COVENANTS** |
|---------|--------------------------------------|

| **20.1** | **General** |
|----------|-------------|

| **20.2** | **Authorisations** |
|----------|--------------------|

| **20.3** | **Compliance                with laws** |
|----------|-----------------------------------------|

| **20.4** | **Pari                passu ranking** |
|----------|---------------------------------------|

*pari      passu *

| **20.5** | **Negative                pledge** |
|----------|------------------------------------|

| (a) | Except                as provided below, neither the Borrower nor any Distribution Company                may                create or allow to exist any Security Interest on any of its                assets. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Paragraph (a)                does not apply to: |
|-----|------------------------------------------------------|

|   | (i) | any                Security Interest created under or in connection with or arising                out of                the Balancing and Settlement Code or any transactions or arrangements                entered into in connection with the management of risks relating                thereto; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | in                respect of overdue amounts which have not been overdue for more than                30                days and/or are being contested in good faith, liens arising solely                by                operation of law or by order of a court or tribunal (or by an agreement                of                similar effect) and/or in the ordinary course of business or                operations; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | any                Security Interest created after the date of this Agreement for the                sole                purpose of re-financing all or any part of the Facility (at the option                of                the Borrower) provided that the monies borrowed or raised on such                Security                Interest shall, to that extent, be applied reasonably promptly in                accordance with this Agreement in or towards repayment of the                Facility; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | any                Security Interest arising out of title retention provisions in a                supplier's standard conditions of supply of goods acquired in the                ordinary                course of business or operations; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | any                Security Interest created on any asset acquired after the date of                this                Agreement for the sole purpose of financing or re-financing that                acquisition and securing a principal, capital or nominal amount not                exceeding the cost of that acquisition, provided that the Security                Interest is removed or discharged within six months of the date of                acquisition of such asset; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | any                Security Interest outstanding on or over any asset acquired after                the date                of this Agreement and in existence at the date of such acquisition,                provided that the Security Interest is removed or discharged within                six                months of the date of acquisition of such                asset; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | any                Security Interest created on any asset to secure any Financial                Indebtedness incurred in connection with the financing of any asset                or                project in respect of which the repayment of that Financial Indebtedness                is to be made from the revenues arising out of, or other proceeds                of                realisation from, that asset or project, with recourse to those revenues                and proceeds and other assets used in connection with, or forming                the                subject matter of, that asset or project but without recourse (or                with                such limited recourse as the Majority Banks may from time to time                agree)                to any other assets of the Group; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | any                netting arrangements under any swap or other hedging transaction                which is                on standard market terms; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ix) | any                Security Interest created or outstanding with the prior approval                of the                Majority Banks; and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (x) | any                Security Interest created or outstanding on or over assets of: |
|--------|-----|-----------------------------------------------------------------------------------|

|   | (A) | the                Borrower provided that the aggregate outstanding principal or nominal                amount secured by all Security Interests created or outstanding under                this                exception on or over such assets shall not at any time exceed £5,000,000                or its equivalent; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | a                Distribution Company provided that the aggregate outstanding principal                or                nominal amount secured by all Security Interests created or outstanding                under this exception on or over such assets shall not at any time                exceed                £25,000,000 or its equivalent for each Distribution                Company. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **20.6** | **Disposals** |
|----------|---------------|

| (a) | Except                as provided below, no member of the Group may, either in a single                transaction or in a series of transactions and whether related or                not,                dispose of all or any part of its assets (other than cash) which                is                substantial in the context of the consolidated total assets of the                Group. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Paragraph                (a) does not apply to: |
|-----|-------------------------------------------------|

|   | (i) | any                disposal made in the ordinary course of business or operations of                the                disposing entity (including, without limitation, disposals of subsidiaries                or lines of business, provided that this shall not include a disposal                of                the core electricity distribution                business); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | disposals                on normal commercial terms of obsolete assets or assets no longer                required                for the purpose of the relevant Person's business or                operations; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | any                realisation of investments acquired, purchased or made by the temporary                application of funds not immediately required in the relevant Person's                business or operations; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | the                exchange of assets for other assets of a similar or superior nature                and                value, or the sale of assets on normal commercial terms for cash                which is                payable in full on the completion of the sale and is to be, and is,                applied in or towards the purchase of similar assets within six                months; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | the                disposal of assets by one wholly-owned Subsidiary of the Borrower                to                another or (if the consideration for the disposal does not exceed                a normal                commercial consideration) to the Borrower by one of its                Subsidiaries; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | disposals                of any National Grid shares on normal commercial                terms; |
|--------|------|-------------------------------------------------------------------------------------------------|

|   | (vii) | disposals                in connection with sale-and-leaseback or sale and repurchase transactions                or any other form of "off balance sheet" financing, provided that                the                aggregate book value (in the books of the disposing party) of all                assets                the subject of all such disposals made during the period commencing                on the                date of this Agreement and ending on the date when no amount remains                to be                lent or remains payable under this Agreement shall not exceed: |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | £5,000,000                in the case of disposals made by the Borrower;                and |
|--------|-----|--------------------------------------------------------------------------------------------------|

|   | (B) | £50,000,000                in the case of disposals made by each Distribution Company;                and |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   | (viii) | any                disposal which the Majority Banks shall have agreed shall not be                taken                into account. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

| **20.7** | **Financial                indebtedness of Western Power Distribution                LLP** |
|----------|--------------------------------------------------------------------------------------------|

| **20.8** | **Change                of business** |
|----------|---------------------------------------|

| **20.9** | **Environmental                matters** |
|----------|------------------------------------------|

| **20.10** | **Insurance** |
|-----------|---------------|

| **20.11** | **Licence** |
|-----------|-------------|

|   | (a) | each                Distribution Company complies in all respects with the terms of its                Licence where failure to comply would have a Material Adverse Effect                or                would have a material adverse effect on that Distribution Company's                ability to perform its obligations under the                Licence; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | it                will promptly notify the Facility Agent upon receipt by the Distribution                Companies of any notice from the government, any court or any regulatory                authority or agency of a revocation, termination, material adverse                amendment, suspension or withdrawal of a Licence unless contemporaneously                that Licence is to be replaced, substituted or reissued on the same,                or                substantially the same or improved terms;                and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the                Distribution Companies will comply with the requirements of all applicable                rules, regulations, orders and other requirements of the Secretary                of                State and/or OFGEM under the Act of any other law applicable to the                conduct of the business of the distribution of electricity, where                failure                to comply would have a Material Adverse Effect or would have a material                adverse effect on that Distribution Company's ability to perform                its                obligations under the Licence. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **20.12** | **Arm's                Length Transactions** |
|-----------|----------------------------------------------|

| **21.** | **DEFAULT** |
|---------|-------------|

| **21.1** | **Events                of Default** |
|----------|--------------------------------------|

| **21.2** | **Non-payment** |
|----------|-----------------|

|   | (a) | its                failure to pay is caused by administrative or technical error;                and |
|--------|-----|------------------------------------------------------------------------------------------------------|

|   | (b) | payment                is made within three Business Days of its due                date. |
|--------|-----|-------------------------------------------------------------------------------------------|

| **21.3** | **Breach                of other obligations** |
|----------|------------------------------------------------|

| (a) | The                Borrower does not perform or comply with its obligations under                Clause 19 (Financial Covenants), Clause 20.5 (Negative pledge) or                Clause 20.6 (Disposals). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The                Borrower does not perform or comply with any of its other obligations                under any Finance Document in any material respect or any representation                or warranty by the Borrower in this Agreement or in any document                delivered                under it is or proves to have been incorrect when made or deemed                repeated,                unless the non-compliance or circumstances giving rise to the                misrepresentation, as the case may be, is capable of remedy and is                not                remedied within 30 days of the earlier of the Facility Agent giving                notice                requiring the same to be remedied and the Borrower becoming aware                of such                non-compliance or misrepresentation, as the case may                be. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **21.4** | **Cross-default** |
|----------|-------------------|

| **21.5** | **Insolvency** |
|----------|----------------|

| (a) | Any                of the following occurs in respect of the                Borrower: |
|-----|---------------------------------------------------------------------------------------|

|   | (i) | it                is unable to pay its debts generally as they fall due or it is deemed                by a                court of competent jurisdiction to be                insolvent; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | it                suspends making payments on all or any class of its debts or publicly                announces an intention to do so; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | by                reason of actual or anticipated financial difficulties, it begins                negotiations with all or any class of its creditors for the general                rescheduling of its indebtedness;                or |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | a                moratorium is declared in respect of any of its                indebtedness. |
|--------|------|-----------------------------------------------------------------------------------------------|

| (b) | If                a moratorium occurs in respect of the Borrower, the ending of the                moratorium will not remedy any Event of Default caused by the                moratorium. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **21.6** | **Insolvency                proceedings** |
|----------|-------------------------------------------|

| (a) | Except                as provided below, any of the following occurs in respect of the                Borrower: |
|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (i) | any                person presents a petition for its winding-up, administration or                dissolution; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (ii) | an                order for its winding-up, administration or dissolution is                made; |
|--------|------|---------------------------------------------------------------------------------------------------|

|   | (iii) | any                liquidator, trustee in bankruptcy, judicial custodian, compulsory                manager,                receiver, administrative receiver, administrator or similar officer                is                appointed in respect of it or any of its                assets; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | its                directors or other officers request the appointment of a liquidator,                trustee in bankruptcy, judicial custodian, compulsory manager, receiver,                administrative receiver, administrator or similar officer;                or |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | any                other analogous step or procedure is taken in any                jurisdiction. |
|--------|-----|---------------------------------------------------------------------------------------------------|

| (b) | Paragraph                (a) does not apply to (i) a petition for winding-up presented by                a                creditor which is being actively contested in good faith and with                due                diligence and with a reasonable prospect of success or (ii) a voluntary                solvent winding-up, amalgamation, reconstruction or reorganisation                or                otherwise part of a solvent scheme of arrangement, in each case on                terms                approved by the Majority Lenders. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **21.7** | **Creditors'                process** |
|----------|---------------------------------------|

| **21.8** | **Licence** |
|----------|-------------|

| (a) | Any                Licence is revoked or surrendered or ceases to be held by the relevant                Distribution Company other than in circumstances which permit the                relevant                Distribution Company or its Affiliates to carry on the distribution                business of that Distribution Company either without a licence as                a result                of any change in the Act or regulatory regime or with a new licence,                permitting the distribution of electricity in the authorised areas                covered                by the Licence, issued under the Act or pursuant to the Utilities                Act,                2000; or |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | any                Licence is amended in a manner                that; |
|-----|------------------------------------------------------------------------|

|   | (i) | would                materially restrict the ability of the Distribution Companies to                pay                dividends to their Holding Company (excluding, for the avoidance                of doubt,                as a result of a price control review by OFGEM);                and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | would                have a Material Adverse Effect. |
|--------|------|------------------------------------------------------|

| **21.9** | **Balancing                and Settlement Code** |
|----------|--------------------------------------------------|

| (a) | A                Distribution Company ceases to be a party to the Balancing and Settlement                Code Framework Agreement other than in circumstances where that                Distribution Company is able to carry on its distribution business;                or |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | a                Distribution Company breaches the Balancing and Settlement Code and                such                breach has or is reasonably likely to have a Material Adverse Effect                other                than in circumstances where that Distribution Company is able to                carry on                its distribution business. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **21.10** | **Ownership                of Distribution Companies** |
|-----------|--------------------------------------------------------|

| **21.11** | **Ring                Fence** |
|-----------|-------------------------------|

| **21.12** | **Unlawfulness** |
|-----------|------------------|

| **21.13** | **Repudiation** |
|-----------|-----------------|

| **21.14** | **Acceleration** |
|-----------|------------------|

|   | (a) | cancel                the Total Commitments; and/or |
|--------|-----|-----------------------------------------------------|

|   | (b) | declare                that all or part of any amounts outstanding under the Finance Documents                are: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

|   | (i) | immediately                due and payable; and/or |
|--------|-----|----------------------------------------------------|

|   | (ii) | payable                on demand by the Facility Agent acting on the instructions of the                Majority                Lenders. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------|

| **22.** | **THE                ADMINISTRATIVE PARTIES** |
|---------|-----------------------------------------------|

| **22.1** | **Appointment                and duties of the Facility                Agent** |
|----------|--------------------------------------------------------------------------------|

| (a) | Each                Finance Party (other than the Facility Agent) irrevocably appoints                the                Facility Agent to act as its agent under the Finance                Documents. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Each                Finance Party irrevocably authorises the Facility Agent                to: |
|-----|------------------------------------------------------------------------------------------------|

|   | (i) | perform                the duties and to exercise the rights, powers and discretions that                are                specifically given to it under the Finance Documents, together with                any                other incidental rights, powers and discretions;                and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | execute                each Finance Document expressed to be executed by the Facility                Agent. |
|--------|------|-------------------------------------------------------------------------------------------------------------|

| (c) | The                Facility Agent has only those duties which are expressly specified                in the                Finance Documents. Those duties are solely of a mechanical and                administrative nature. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.2** | **Role                of the Mandated Lead                Arranger** |
|----------|----------------------------------------------------------------------|

| **22.3** | **No                fiduciary duties** |
|----------|----------------------------------------|

| **22.4** | **Individual                position of an Administrative                Party** |
|----------|----------------------------------------------------------------------------------|

| (a) | If                it is also a Lender, each Administrative Party has the same rights                and                powers under the Finance Documents as any other Lender and may exercise                those rights and powers as though it were not an Administrative                Party. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Each                Administrative Party may: |
|-----|-----------------------------------------------|

|   | (i) | carry                on any business with the Borrower or its related entities (including                acting as an agent or a trustee for any other financing);                and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | retain                any profits or remuneration it receives under the Finance Documents                or in                relation to any other business it carries on with the Borrower or                its                related entities. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.5** | **Reliance** |
|----------|--------------|

|   | (a) | rely                on any notice or document believed by it to be genuine and correct                and to                have been signed by, or with the authority of, the proper                person; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | rely                on any statement made by any person regarding any matters which may                reasonably be assumed to be within his knowledge or within his power                to                verify; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | engage,                pay for and rely on professional advisers selected by it (including                those                representing a Party other than the Facility Agent);                and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | act                under the Finance Documents through its personnel and                agents. |
|--------|-----|-------------------------------------------------------------------------------------------------|

| **22.6** | **Majority                Lenders' instructions** |
|----------|---------------------------------------------------|

| (a) | The                Facility Agent is fully protected if it acts on the instructions                of the                Majority Lenders in the exercise of any right, power or discretion                or any                matter not expressly provided for in the Finance Documents. Any such                instructions given by the Majority Lenders will be binding on all                the                Lenders. In the absence of instructions, the Facility Agent may act                as it                considers to be in the best interests of all the                Lenders. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The                Facility Agent is not authorised to act on behalf of a Lender (without                first obtaining that Lender's consent) in any legal or arbitration                proceedings in connection with any Finance                Document. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | The                Facility Agent may require the receipt of security satisfactory to                it,                whether by way of payment in advance or otherwise, against any liability                or loss which it may incur in complying with the instructions of                the                Majority Lenders. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.7** | **Responsibility** |
|----------|--------------------|

| (a) | No                Administrative Party is responsible to any other Finance Party for                the                adequacy, accuracy or completeness                of: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | any                Finance Document or any other document;                or |
|--------|-----|------------------------------------------------------------------------------|

|   | (ii) | any                statement or information (whether written or oral) made in or supplied                in                connection with any Finance                Document. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Without                affecting the responsibility of the Borrower for information supplied                by                it or on its behalf in connection with any Finance Document, each                Lender                confirms that it: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | has                made, and will continue to make, its own independent appraisal of                all                risks arising under or in connection with the Finance Documents (including                the financial condition and affairs of the Borrower and its related                entities and the nature and extent of any recourse against any Party                or                its assets); and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | has                not relied exclusively on any information provided to it by any                Administrative Party in connection with any Finance                Document. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | (i) | Nothing                in this Agreement will oblige the Facility Agent to satisfy any know                your                customer requirement in relation to the identity of any person on                behalf                of any Finance Party. |
|-----|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Each                Finance Party confirms to the Facility Agent that it is solely responsible                for any know your customer requirements it is required to carry out                and                that it may not rely on any statement in relation to those requirements                made by any other person. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.8** | **Exclusion                of liability** |
|----------|-------------------------------------------|

| (a) | The                Facility Agent is not liable or responsible to any other Finance                Party for                any action taken or not taken by it in connection with any Finance                Document, unless directly caused by its gross negligence or wilful                misconduct. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | No                Party may take any proceedings against any officer, employee or agent                of                the Facility Agent in respect of any claim it might have against                the                Facility Agent or in respect of any act or omission of any kind by                that                officer, employee or agent in connection with any Finance Document.                Any                officer, employee or agent of the Facility Agent may rely on this                Subclause and enforce its terms under the Contracts (Rights of Third                Parties) Act 1999. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.9** | **Default** |
|----------|-------------|

| (a) | The                Facility Agent is not obliged to monitor or enquire whether a Default                has                occurred. The Facility Agent is not deemed to have knowledge of the                occurrence of a Default. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | If                the Facility Agent: |
|-----|---------------------------------------|

|   | (i) | receives                notice from a Party referring to this Agreement, describing a Default                and                stating that the event is a Default;                or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | is                aware of the non-payment of any principal or interest or any fee                payable                to a Lender under this Agreement, |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.10** | **Information** |
|-----------|-----------------|

| (a) | The                Facility Agent must promptly forward to the person concerned the                original                or a copy of any document which is delivered to the Facility Agent                by a                Party for that person. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Except                where a Finance Document specifically provides otherwise, the Facility                Agent is not obliged to review or check the adequacy, accuracy or                completeness of any document it forwards to another                Party. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Except                as provided above, the Facility Agent has no                duty: |
|-----|-----------------------------------------------------------------------------------------|

|   | (i) | either                initially or on a continuing basis to provide any Lender with any                credit                or other information concerning the risks arising under or in connection                with the Finance Documents (including any information relating to                the                financial condition or affairs of the Borrower or its related entities                or                the nature or extent of recourse against any Party or its assets)                whether                coming into its possession before, on or after the date of this Agreement;                or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | unless                specifically requested to do so by a Lender in accordance with a                Finance                Document, to request any certificate or other document from the                Borrower. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | In                acting as the Facility Agent, the agency division of the Facility                Agent is                treated as a separate entity from its other divisions and departments.                Any                information acquired by the Facility Agent which, in its opinion,                is                acquired by it otherwise than in its capacity as the Facility Agent                may be                treated as confidential by the Facility Agent and will not be treated                as                information possessed by the Facility Agent in its capacity as                such. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | The                Facility Agent is not obliged to disclose to any person any confidential                information supplied to it by a member of the Group solely for the                purpose                of evaluating whether any waiver or amendment is required to any                term of                the Finance Documents. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | The                Borrower irrevocably authorises the Facility Agent to disclose to                the                other Finance Parties any information which, in its opinion, is received                by it in its capacity as the Facility                Agent. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.11** | **Indemnities** |
|-----------|-----------------|

| (a) | Without                limiting the liability of the Borrower under the Finance Documents,                each                Lender must indemnify the Facility Agent for that Lender's Pro Rata                Share                of any loss or liability incurred by the Facility Agent in acting                as the                Facility Agent, except to the extent that the loss or liability is                caused                by the Facility Agent's gross negligence or wilful                misconduct. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The                Facility Agent may deduct from any amount received by it for a Lender                any                amount due to the Facility Agent from that Lender under a Finance                Document                but unpaid. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | The                Borrower must indemnify the Facility Agent against any loss or liability                properly incurred by the Facility Agent as a result                of: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | investigating                any event which the Facility Agent reasonably believes to be a Default;                or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | acting                or relying on any notice which the Facility Agent reasonably believes                to                be genuine, correct and appropriately                authorised. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.12** | **Compliance** |
|-----------|----------------|

| **22.13** | **Resignation                of the Facility Agent** |
|-----------|------------------------------------------------------|

| (a) | The                Facility Agent may resign and appoint any of its Affiliates as successor                Facility Agent by giving notice to the Lenders and the                Borrower. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Alternatively,                the Facility Agent may resign by giving notice to the Lenders and                the                Borrower, in which case the Majority Lenders may appoint a successor                Facility Agent. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | If                no successor Facility Agent has been appointed under paragraph (b)                above                within 30 days after notice of resignation was given, the Facility                Agent may appoint a successor Facility                Agent. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | The                person(s) appointing a successor Facility Agent must, if practicable,                consult with the Borrower prior to the appointment. Any successor                Facility                Agent must have an office in the                U.K. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | The                resignation of the Facility Agent and the appointment of any successor                Facility Agent will both become effective only when the successor                Facility                Agent notifies all the Parties that it accepts its appointment. On                giving                the notification, the successor Facility Agent will succeed to the                position of the Facility Agent and the term "Facility Agent" will                mean the                successor Facility Agent. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | The                retiring Facility Agent must, at its own cost, make available to                the                successor Facility Agent such documents and records and provide such                assistance as the successor Facility Agent may reasonably request                for the                purposes of performing its functions as the Facility Agent under                the                Finance Documents. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | Upon                its resignation becoming effective, this Clause will continue to                benefit the retiring Facility Agent in respect of any action taken                or not                taken by it in connection with the Finance Documents while it was                the                Facility Agent, and, subject to paragraph (f) above, it will have no                further obligations under any Finance                Document. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | The                Majority Lenders may, by notice to the Facility Agent, require it                to                resign under paragraph (b)                above. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.14** | **Relationship                with Lenders** |
|-----------|----------------------------------------------|

| (a) | The                Facility Agent may treat each Lender as a Lender, entitled to payments                under this Agreement and as acting through its Facility Office(s)                until it                has received not less than five Business Days' prior notice from                that                Lender to the contrary. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The                Facility Agent may at any time, and must if requested to do so by                the                Majority Lenders, convene a meeting of the                Lenders. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | The                Facility Agent must keep a register of all the Parties and supply                any                other Party with a copy of the register on request. The register                will                include each Lender's Facility Office(s) and contact details for                the                purposes of this Agreement. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.15** | **Facility                Agent's management time** |
|-----------|-----------------------------------------------------|

| **22.16** | **Notice                period** |
|-----------|----------------------------------|

| **23.** | **EVIDENCE                AND CALCULATIONS** |
|---------|----------------------------------------------|

| **23.1** | **Accounts** |
|----------|--------------|

*prima      facie *

| **23.2** | **Certificates                and determinations** |
|----------|----------------------------------------------------|

| **23.3** | **Calculations** |
|----------|------------------|

| **24.** | **FEES** |
|---------|----------|

| **24.1** | **Facility                Agent's fee** |
|----------|-----------------------------------------|

| **24.2** | **Arrangement                fee** |
|----------|------------------------------------|

| **24.3** | **Commitment                fee** |
|----------|-----------------------------------|

| (a) | The                Borrower must pay a commitment fee computed at the rate of 40% of                the                Margin from time to time on the undrawn, uncancelled amount of each                Lender's Commitment calculated from the later                of: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the                date of this Agreement; and |
|--------|-----|------------------------------------------------|

|   | (ii) | the                earlier of either |
|--------|------|--------------------------------------|

|   | (A) | the                date on which the Existing Tranche C Facility is irrevocably cancelled                in                full; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | the                date falling 10 Business Days after the date of this Agreement. |
|--------|-----|------------------------------------------------------------------------------------|

| (b) | Accrued                commitment fee is payable quarterly in arrear. Accrued commitment                fee is                also payable to the Facility Agent for a Lender on the date its Commitment                is cancelled in full. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **24.4** | **Utilisation                fee** |
|----------|------------------------------------|

| (a) | The                Borrower must pay to the Facility Agent for each Lender a utilisation                fee                computed at the rate of 0.05% per annum of the aggregate amount of                the                Loans for each day on which the aggregate amount of the Loans exceeds                50%                of the Total Commitments. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Utilisation                fee is payable on the amount of each Lender's share in the                Loans. |
|-----|-------------------------------------------------------------------------------------------------------------|

| (c) | Accrued                utilisation fee is payable quarterly in arrear. Accrued utilisation                fee is                also payable to the Facility Agent for a Lender on the date that                its                Commitment is cancelled and its share in the Loans prepaid or repaid                in                full. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **24.5** | **Extension                Fee** |
|----------|----------------------------------|

| (a) | The                Borrower must pay to the Facility Agent for each Lender whose Commitment                is extended under Clause 6 (Extension Option) an extension fee of                0.05% of                the Lender's Commitment which is to be                extended. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The                Borrower must pay to the Facility Agent for each Lender which agrees                to an                Extension Request (having confirmed to the Borrower that it has obtained                credit approval for such extension) but whose Commitment is not extended                because the Borrower elects to withdraw its Extension Request pursuant                to                Clause 6(h) (Extension Option) a work fee of 0.025% of the Lender's                Commitment that was to be extended. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Each                extension fee is payable on the date that the Final Maturity Date                is                extended (or would have been extended, had the Extension Request                not been                withdrawn under Clause 6(h) (Extension                Option)). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | An                extension fee is payable in respect of each period of one year that                a                Lender agrees to. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

| **25.** | **INDEMNITIES                AND BREAK COSTS** |
|---------|------------------------------------------------|

| **25.1** | **Currency                indemnity** |
|----------|---------------------------------------|

| (a) | The                Borrower must, as an independent obligation, indemnify each Finance                Party                against any loss or liability which that Finance Party incurs as                a                consequence of: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | that                Finance Party receiving an amount in respect of the Borrower's liability                under the Finance Documents; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | that                liability being converted into a claim, proof, judgment or                order, |
|--------|------|------------------------------------------------------------------------------------------------------|

| (b) | Unless                otherwise required by law, the Borrower waives any right it may have                in                any jurisdiction to pay any amount under the Finance Documents in                a                currency other than that in which it is expressed to be                payable. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **25.2** | **Other                indemnities** |
|----------|--------------------------------------|

|   | (a) | the                occurrence of any Event of Default; |
|--------|-----|--------------------------------------------------------|

|   | (b) | (other                than by reason of negligence or default by a Finance Party) a Loan                not                being made after a Request has been delivered for that Loan;                or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the                receipt or recovery by any party (or the Facility Agent on its behalf)                of                all or any part of a Loan or overdue sum due from the Borrower otherwise                than on the Final Maturity Date or Maturity Date (as relevant) of                that                Loan or, in the case of an overdue sum, the last day of an interest                period                relating to that overdue sum, as the case may be or a Loan or any                part                thereof not being prepaid in accordance with a notice of                prepayment. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **25.3** | **Break                Costs** |
|----------|--------------------------------|

| (a) | The                Borrower must pay to each Lender its Break                Costs. |
|-----|-------------------------------------------------------------------------------------|

| (b) | Break                Costs are the amount (if any) determined by the relevant Lender by                which: |
|-----|---------------------------------------------------------------------------------------------------------------|

|   | (i) | the                interest which that Lender would have received for the period from                the                date of receipt of any part of its share in a Loan or an overdue                amount to                the last day of the applicable Term for that Loan or overdue amount                if the                principal or overdue amount received had been paid on the last day                of that                Term; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the                amount which that Lender would be able to obtain by placing an amount                equal to the amount received by it on deposit with a leading bank                in the                appropriate interbank market for a period starting on the Business                Day                following receipt and ending on the last day of the applicable                Term. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Each                Lender must supply to the Facility Agent for the Borrower details                of the                amount of any Break Costs claimed by it under this                Subclause. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **26.** | **EXPENSES** |
|---------|--------------|

| **26.1** | **Initial                costs** |
|----------|----------------------------------|

| **26.2** | **Subsequent                costs** |
|----------|-------------------------------------|

|   | (a) | the                negotiation, preparation, printing and execution of any Finance Document                (other than a Transfer Certificate) executed after the date of this                Agreement; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | any                amendment, waiver or consent requested by or on behalf of the Borrower                or                specifically allowed by this                Agreement. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **26.3** | **Enforcement                costs** |
|----------|--------------------------------------|

| **27.** | **AMENDMENTS                AND WAIVERS** |
|---------|-------------------------------------------|

| **27.1** | **Procedure** |
|----------|---------------|

| (a) | Except                as provided in this Clause, any term of the Finance Documents may                be                amended or waived with the agreement of the Borrower and the Majority                Lenders. The Facility Agent may effect, on behalf of any Finance                Party, an                amendment or waiver allowed under this                Clause. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The                Facility Agent must promptly notify the other Parties of any amendment                or                waiver effected by it under paragraph (a) above. Any such amendment                or                waiver is binding on all the                Parties. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **27.2** | **Exceptions** |
|----------|----------------|

| (a) | An                amendment or waiver which relates                to: |
|-----|------------------------------------------------------------------------|

|   | (i) | the                definition of **Majority                Lenders**                in                Clause 1.1 (Definitions) or Consolidated EBITDA, Interest Payable,                Regulatory Asset Base or Total Net Debt in Clause 19.1                (Definitions); |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | an                extension of the date of payment of any amount to a Lender under                the                Finance Documents; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | a                reduction in the Margin or a reduction in the amount of any payment                of                principal, interest, fee or other amount payable to a Lender under                the                Finance Documents; |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | an                increase in, or an extension of, a Commitment or the Total                Commitments; |
|--------|------|----------------------------------------------------------------------------------------------------------|

|   | (v) | a                term of a Finance Document which expressly requires the consent of                each                Lender; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | the                right of a Lender to assign or transfer its rights or obligations                under                the Finance Documents; or |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | this                Clause, |
|--------|-------|-----------------------------|

| (b) | An                amendment or waiver which relates to the rights or obligations of                an                Administrative Party may only be made with the consent of that                Administrative Party. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **27.3** | **Change                of currency** |
|----------|---------------------------------------|

| **27.4** | **Waivers                and remedies cumulative** |
|----------|----------------------------------------------------|

|   | (a) | may                be exercised as often as necessary; |
|--------|-----|--------------------------------------------------------|

|   | (b) | are                cumulative and not exclusive of its rights under the general law;                and |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (c) | may                be waived only in writing and                specifically. |
|--------|-----|-------------------------------------------------------------------------------|

| **28.** | **CHANGES                TO THE PARTIES** |
|---------|-------------------------------------------|

| **28.1** | **Assignments                and transfers by the                Borrower** |
|----------|-----------------------------------------------------------------------------|

| **28.2** | **Assignments                and transfers by Lenders** |
|----------|---------------------------------------------------------|

| (a) | A                Lender (the **Existing                Lender**)                may, subject to the following provisions of this Subclause, at any                time                assign or transfer (including by way of novation) any of its rights                and                obligations under this Agreement to any other person (the **New                Lender**). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Unless                the Borrower and the Facility Agent otherwise agree, a transfer of                part of                a Commitment or rights and obligations under this Agreement by the                Existing Lender must be in a minimum amount of                £5,000,000. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | The                consent of the Borrower is required for any assignment or transfer                unless                the New Lender is another Lender or an Affiliate of a Lender. The                consent                of the Borrower must not be unreasonably withheld or delayed. The                Borrower                will be deemed to have given its consent five Business Days after                the                Lender has requested it unless consent is expressly refused by the                Borrower within that time. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | The                Facility Agent is not obliged to execute a Transfer Certificate until                it                has completed all know your customer requirements to its satisfaction.                The                Facility Agent must promptly notify the Existing Lender and the New                Lender                if there are any such requirements. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | The                Borrower may not withhold its consent solely because the assignment                or                transfer might increase the Mandatory                Cost. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | A                transfer of obligations will be effective only if                either: |
|-----|-------------------------------------------------------------------------------------------|

|   | (i) | the                obligations are novated in accordance with the following provisions                of                this Clause; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the                New Lender confirms to the Facility Agent and the Borrower in form                and                substance satisfactory to the Facility Agent that it is bound by                the terms                of this Agreement as a Lender. On the transfer becoming effective                in this                manner the Existing Lender will be released from its obligations                under                this Agreement to the extent that they are transferred to the New                Lender. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | Unless                the Facility Agent otherwise agrees, the New Lender must pay to the                Facility Agent for its own account, on or before the date any assignment                or transfer occurs, a fee of £2000. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | Any                reference in this Agreement to a Lender includes a New Lender but                excludes                a Lender if no amount is or may be owed to or by it under this                Agreement. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **28.3** | **Procedure                for transfer by way of                novations** |
|----------|------------------------------------------------------------------------------|

| (a) | In                this Subclause: |
|-----|-----------------------------------|

**Transfer      Date**

|   | (i) | the                proposed Transfer Date specified in that Transfer Certificate;                and |
|--------|-----|------------------------------------------------------------------------------------------------------|

|   | (ii) | the                date on which the Facility Agent executes that Transfer                Certificate. |
|--------|------|--------------------------------------------------------------------------------------------------------|

| (b) | A                novation is effected if: |
|-----|-------------------------------------------|

|   | (i) | the                Existing Lender and the New Lender deliver to the Facility Agent a duly                completed Transfer Certificate; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the                Facility Agent executes it. |
|--------|------|------------------------------------------------|

| (c) | Each                Party (other than the Existing Lender and the New Lender) irrevocably                authorises the Facility Agent to execute any duly completed Transfer                Certificate on its behalf. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | On                the Transfer Date: |
|-----|--------------------------------------|

|   | (i) | the                New Lender will assume the rights and obligations of the Existing                Lender                expressed to be the subject of the novation in the Transfer Certificate                in                substitution for the Existing Lender;                and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the                Existing Lender will be released from those obligations and cease                to have                those rights. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------|

| **28.4** | **Limitation                of responsibility of Existing                Lender** |
|----------|-----------------------------------------------------------------------------------|

| (a) | Unless                expressly agreed to the contrary, an Existing Lender is not responsible                to                a New Lender for the legality,                validity, adequacy,                accuracy, completeness or performance                of: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | any                Finance Document or any other document;                or |
|--------|-----|------------------------------------------------------------------------------|

|   | (ii) | any                statement or information (whether written or oral) made in or supplied                in                connection with any Finance                Document, |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Each                New Lender confirms to the Existing Lender and the other Finance                Parties                that it: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | has                made, and will continue to make, its own independent appraisal of                all                risks arising under or in connection with the Finance Documents (including                the financial condition and affairs of the Borrower and its related                entities and the nature and extent of any recourse against any Party                or                its assets) in connection with its participation in this Agreement;                and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | has                not relied exclusively on any information supplied to it by the Existing                Lender in connection with any Finance                Document. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Nothing                in any Finance Document requires an Existing Lender                to: |
|-----|-----------------------------------------------------------------------------------------------|

|   | (i) | accept                a re-transfer from a New Lender of any of the rights and obligations                assigned or transferred under this Clause;                or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | support                any losses incurred by the New Lender by reason of the non-performance                by                the Borrower of its obligations under any Finance Document or                otherwise. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **28.5** | **Costs                resulting from change of Lender or Facility                Office** |
|----------|--------------------------------------------------------------------------------------------|

|   | (a) | a                Lender assigns or transfers any of its rights and obligations under                the                Finance Documents or changes its Facility Office;                and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | as                a result of circumstances existing at the date the assignment, transfer                or                change occurs, the Borrower would be obliged to pay a Tax Payment                or an                Increased Cost, |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **28.6** | **Changes                to the Reference Banks** |
|----------|---------------------------------------------------|

| (a) | If                a Reference Bank (or, if a Reference Bank is not a Lender, the Lender                of                which it is an Affiliate) ceases to be a Lender, the Facility Agent                must                (in consultation with the Borrower) appoint another Lender or an                Affiliate                of a Lender to replace that Reference                Bank. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | If                a Reference Bank ceases to have a London office or novates or assigns                all                its rights and obligations under this Agreement or if any Commitments                of                any Reference Bank are cancelled or if Loans it has advanced are                prepaid                it shall be replaced as a Reference Bank by such other Bank with                an office                in London as the Facility Agent (after consultation with the Borrower)                shall designate by notice to the Borrower and the                Banks. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **29.** | **DISCLOSURE                OF INFORMATION** |
|---------|----------------------------------------------|

| (a) | Each                Finance Party must keep confidential any information supplied to                it by or                on behalf of the Borrower in connection with the Finance Documents.                However, a Finance Party is entitled to disclose                information: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | which                is publicly available, other than as a result of a breach by that                Finance                Party of this Clause; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | in                connection with any legal or arbitration                proceedings; |
|--------|------|----------------------------------------------------------------------------------------|

|   | (iii) | if                required to do so under any law or                regulation; |
|--------|-------|---------------------------------------------------------------------------------|

|   | (iv) | to                a governmental, banking, taxation or other regulatory                authority; |
|--------|------|---------------------------------------------------------------------------------------------------|

|   | (v) | to                its professional advisers; |
|--------|-----|----------------------------------------------|

|   | (vi) | to                the extent allowed under paragraph (b) below;                or |
|--------|------|----------------------------------------------------------------------------------------|

|   | (vii) | with                the agreement of the Borrower. |
|--------|-------|----------------------------------------------------|

| (b) | A                Finance Party may disclose to an Affiliate or any person with whom                it may                enter, or has entered into, any kind of transfer, participation or                other                agreement in relation to this Agreement (a **participant**): |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | a                copy of any Finance Document; and |
|--------|-----|----------------------------------------------------|

|   | (ii) | any                information which that Finance Party has acquired under or in connection                with any Finance Document. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------|

| **30.** | **SET-OFF** |
|---------|-------------|

| **31.** | **PRO                RATA SHARING** |
|---------|-------------------------------------|

| **31.1** | **Redistribution** |
|----------|--------------------|

**recovering      Lender**
**recovery**

|   | (a) | the                recovering Lender must, within three Business Days, supply details                of the                recovery to the Facility Agent; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the                Facility Agent must calculate whether the recovery is in excess of                the                amount which the recovering Lender would have received if the recovery                had                been received by the Facility Agent under this Agreement;                and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the                recovering Lender must pay to the Facility Agent an amount equal                to the                excess (the **redistribution**). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| **31.2** | **Effect                of redistribution** |
|----------|---------------------------------------------|

| (a) | The                Facility Agent must treat a redistribution as if it were a payment                by the                Borrower under this Agreement and distribute it among the Lenders,                other                than the recovering Lender,                accordingly. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | When                the Facility Agent makes a distribution under paragraph (a) above,                the recovering Lender will be subrogated to the rights of the Finance                Parties which have shared in that                redistribution. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | If                and to the extent that the recovering Lender is not able to rely                on any                rights of subrogation under paragraph (b) above, the Borrower will                owe the recovering Lender a debt which is equal to the redistribution,                immediately payable and of the type originally                discharged. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | If: |
|-----|-----|

|   | (i) | a                recovering Lender must subsequently return a recovery, or an amount                measured by reference to a recovery, to the Borrower;                and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the                recovering Lender has paid a redistribution in relation to that                recovery, |
|--------|------|-------------------------------------------------------------------------------------------------------------|

| **31.3** | **Exceptions** |
|----------|----------------|

|   | (a) | it                would not, after the payment, have a valid claim against the Borrower                in                the amount of the redistribution;                or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | it                would be sharing with another Finance Party any amount which the                recovering Lender has received or recovered as a result of legal                or                arbitration proceedings, where: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the                recovering Lender notified the Facility Agent of those proceedings;                and |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

|   | (ii) | the                other Finance Party had an opportunity to participate in those proceedings                but did not do so or did not take separate legal or arbitration                proceedings as soon as reasonably practicable after receiving notice                of                them. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **32.** | **SEVERABILITY** |
|---------|------------------|

|   | (a) | the                legality, validity or enforceability in that jurisdiction of any                other                term of the Finance Documents; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the                legality, validity or enforceability in other jurisdictions of that                or any                other term of the Finance                Documents. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **33.** | **COUNTERPARTS** |
|---------|------------------|

| **34.** | **NOTICES** |
|---------|-------------|

| **34.1** | **In                writing** |
|----------|-------------------------------|

| (a) | Any                communication in connection with a Finance Document must be in writing                and, unless otherwise stated, may be                given: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | in                person, by post, or fax or any other electronic communication approved                by                the Facility Agent; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | if                between the Facility Agent and a Lender and the Facility Agent and                the                Lender agree, by e-mail or other electronic                communication. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | For                the purpose of the Finance Documents, an electronic communication                will be                treated as being in writing. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Unless                it is agreed to the contrary, any consent or agreement required under                a                Finance Document must be given in                writing. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **34.2** | **Contact                details** |
|----------|------------------------------------|

| (a) | Except                as provided below, the contact details of each Party for all                communications in connection with the Finance Documents are those                notified                by that Party for this purpose to the Facility Agent on or before                the date                it becomes a Party. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The                contact details of the Borrower for this purpose are: |
|-----|--------------------------------------------------------------------------|

| (c) | The                contact details of the Facility Agent for this purpose                are: |
|-----|-----------------------------------------------------------------------------------------------|

| (d) | Any                Party may change its contact details by giving five Business Days'                notice                to the Facility Agent or (in the case of the Facility Agent) to the                other                Parties. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Where                a Party nominates a particular department or officer to receive a                communication, a communication will not be effective if it fails                to                specify that department or officer. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **34.3** | **Effectiveness** |
|----------|-------------------|

| (a) | Except                as provided below, any communication in connection with a Finance                Document                will be deemed to be given as                follows: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | if                delivered in person, at the time of                delivery; |
|--------|-----|--------------------------------------------------------------------------------|

|   | (ii) | if                posted, five days after being deposited in the post, postage prepaid,                in a                correctly addressed envelope; and |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | if                by fax, when received in legible                form. |
|--------|-------|-------------------------------------------------------------------------|

| (b) | A                communication given under paragraph (a) above but received on a                non-working day or after business hours in the place of receipt will                only                be deemed to be given on the next working day in that                place. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | A                communication to the Facility Agent will only be effective on actual                receipt by it. |
|-----|---------------------------------------------------------------------------------------------------------------------|

| **34.4** | **The                Borrower** |
|----------|---------------------------------|

| **35.** | **LANGUAGE** |
|---------|--------------|

| (a) | Any                notice given in connection with a Finance Document must be in                English. |
|-----|----------------------------------------------------------------------------------------------------------|

| (b) | Any                other document provided in connection with a Finance Document must                be: |
|-----|----------------------------------------------------------------------------------------------------------|

|   | (i) | in                English; or |
|--------|-----|-------------------------------|

|   | (ii) | (unless                the Facility Agent otherwise agrees) accompanied by a certified English                translation. In this case, the English translation prevails unless                the                document is a statutory or other official                document. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **36.** | **GOVERNING                LAW** |
|---------|----------------------------------|

| **37.** | **ENFORCEMENT** |
|---------|-----------------|

| **37.1** | **Jurisdiction** |
|----------|------------------|

| (a) | The                English courts have exclusive jurisdiction to settle any dispute                in                connection with any Finance                Document. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The                English courts                are the most appropriate and convenient courts to settle any such                dispute                and the Borrower waives objection to those courts on the grounds                of                inconvenient forum or otherwise in relation to proceedings in connection                with any Finance Document. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | This                Clause is for the benefit of the Finance Parties only. To the extent                allowed by law, a Finance Party may                take: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | proceedings                in any other court; and |
|--------|-----|----------------------------------------------------|

|   | (ii) | concurrent                proceedings in any number of                jurisdictions. |
|--------|------|--------------------------------------------------------------------------------------|

**THIS      AGREEMENT **

----

**SCHEDULE      1**

**ORIGINAL      PARTIES**

|  **Name                of Original Lender**                                 |  **Commitments**       |
|----------------------------------------------------------------------------------|-----------------------------|
|                                                                             |                        |
|  **Barclays                Bank PLC**                                       |  £50,000,000      |
|  **Bayerische                Landesbank, acting through its London Branch** |  £50,000,000      |
|  **Lloyds                TSB Bank plc**                                     |  £50,000,000      |
|                                                                             |                        |
|  **Total                Commitments**                                       |  **£150,000,000** |

----

**SCHEDULE      2**

**CONDITIONS      PRECEDENT DOCUMENTS**

**Borrower**

| 1. | A                certified copy of the certificate of incorporation and the memorandum                and                articles of the Borrower. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | A                certified copy of a resolution of the board of directors or a committee                of                the board of directors of the Borrower approving the terms of, and                the                transactions contemplated by, the Finance                Documents. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | A                specimen of the signature of each person authorised on behalf of                the                Borrower to execute or witness the execution of any Finance Document                or to                sign or send any document or notice in connection with any Finance                Document. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | A                certificate of an authorised signatory of the Borrower confirming                that: |
|----|---------------------------------------------------------------------------------------------------------|

|   | (a) | each                copy document provided by it pursuant to this Schedule 2 is correct,                complete and full force and effect as at a date no earlier than the                date                of this Agreement; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | borrowing                the Total Commitments would not cause any borrowing limit binding                on the                Borrower to be exceeded. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

**Legal      opinions**

**Other      documents and evidence**

| 1. | Evidence                that all fees and expenses then due and payable from the Borrower                under                this Agreement have been or will be paid no later than the first                Utilisation Date. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Copies                of each duly executed Fee Letter. |
|----|---------------------------------------------------------|

| 3. | The                Original Financial Statements. |
|----|---------------------------------------------------|

| 4. | Evidence                that the Existing Tranche C Facility will be irrevocably prepaid                and                cancelled in full on or by the first Utilisation                Date. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SCHEDULE      3**

**FORM      OF REQUEST**

**WESTERN      POWER DISTRIBUTION HOLDINGS LIMITED **
**-      **
**£150,000,000**
**      Credit Agreement dated 24 January 2007 (as amended and restated from time to      time) (the Agreement)**

| 1. | We                refer to the Agreement. This is a                Request. |
|----|-----------------------------------------------------------------------------|

| 2. | We                wish to borrow a Loan on the following                terms: |
|----|--------------------------------------------------------------------------------|

|   | (a) | Utilisation                Date:                [               ] |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Amount/currency:                [               ] |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Term:                [               ]. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

| 3. | Our                payment instructions are:                [               ]. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | We                confirm that each condition precedent under the Agreement which must                be                satisfied on the date of this Request is so                satisfied. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | We                confirm that as at [relevant testing date] Consolidated EBITDA was                [            ]                and Interest Payable was                [           ];                therefore, the ratio of Consolidated EBITDA to Interest Payable was                [    ] to 1. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | This                Request is irrevocable. |
|----|---------------------------------------------|

----

**SCHEDULE      4**

**CALCULATION      OF THE MANDATORY COST**

| **1.** | **General** |
|--------|-------------|

| **2.** | **For                a Lender lending from a Facility Office in the                U.K.** |
|--------|-------------------------------------------------------------------------------------------|

| (a) | The                relevant rate for a Lender lending from a Facility Office in the                U.K. is                the arithmetic mean of the rates notified by that Lender to the Facility                Agent and calculated in accordance with the following                formulae: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| AB                    + C(B - D) + E x 0.01 | per                    cent. per annum |
|---------------------------------------------|----------------------------------------|
| 100                    - (A + C)            |

| E                  x 0.01 | per                  cent. per annum |
|---------------------------|--------------------------------------|
| 300                       |

| (b) | For                the purposes of this paragraph 2: |
|-----|------------------------------------------------------|

|   | **(i)** | **eligible                liabilities**                and **special                deposit**                have the meanings given to them at the time of application of the                formula                by the Bank of England; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **(ii)** | **fees                rules**                means the then current rules on periodic fees in the Supervision                Manual of                the FSA Handbook; and |
|--------|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **(iii)** | **tariff                base**                has the meaning given to it in the fees                rules. |
|--------|-----------|-------------------------------------------------------------------------------------------------------------|

| (c) | (i) | In                the application of the formulae, A, B, C and D are included as figures                and                not as percentages, e.g. if A = 0.5% and B = 15%, AB is calculated                as 0.5                x 15. A negative result obtained by subtracting D from B is taken                as                zero. |
|-----|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Each                Lender must supply to the Facility Agent the information required                by it to                make a calculation of the rate for that Lender. The Facility Agent                may                assume that this information is correct in all                respects. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | (i) | Each                rate calculated in accordance with a formula is, if necessary, rounded                upward to four decimal places. |
|-----|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | If                a Lender fails to do so, the Facility Agent may assume that the Lender's                obligations in respect of cash ratio deposits, special deposits and                the                fees rules are the same as those of a typical bank from its jurisdiction                of incorporation with a Facility Office in the same jurisdiction                as its                Facility Office. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | The                Facility Agent has no liability to any Party if its calculation over                or                under compensates any Lender. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| **3.** | **For                a Lender lending from a Facility Office in a Participating Member                State** |
|--------|---------------------------------------------------------------------------------------------------------------|

| (a) | The                relevant rate for a Lender lending from a Facility Office in a                Participating Member State is the percentage rate per annum notified                by                that Lender to the Facility Agent as its cost of complying with the                minimum reserve requirements of the European Central                Bank. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | If                a Lender fails to specify a rate under paragraph (a) above, the                Facility Agent will assume that the Lender has not incurred any such                cost. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **4.** | **Changes** |
|--------|-------------|

|   | (a) | any                change in law or regulation; or |
|--------|-----|----------------------------------------------------|

|   | (b) | any                requirement imposed by the Bank of England, the Financial Services                Authority or the European Central Bank (or, in any case, any successor                authority). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SCHEDULE      5**

**FORM      OF TRANSFER CERTIFICATE**

**Existing      Lender**
**New      Lender**

**WESTERN      POWER DISTRIBUTION HOLDINGS LIMITED **
**-      **
**£150,000,000**
**      Credit Agreement dated 24 January 2007 (as amended and restated from time to      time) **
**      Agreement**

| 1. | The                Existing Lender transfers by novation to the New Lender the Existing                Lender's rights and obligations referred to in the Schedule below                in                accordance with the terms of the                Agreement. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | The                proposed Transfer Date is                [          ]. |
|----|-----------------------------------------------------------------------------------------------------------------------------|

| 3. | The                administrative details of the New Lender for the purposes of the                Agreement                are set out in the Schedule. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | This                Transfer Certificate is governed by English                law. |
|----|-------------------------------------------------------------------------------------|

----

**THE      SCHEDULE**

**Rights      and obligations to be transferred by novation**

**Administrative      details of the New Lender**

| **[EXISTING                LENDER]** | **[NEW                LENDER]**  |
|--------------------------------------|---------------------------------------|
| By:                                  | By:                                   |

----

**SCHEDULE      6**

**FORM      OF COMPLIANCE CERTIFICATE**

**WESTERN      POWER DISTRIBUTION HOLDINGS LIMITED **
**-      £**
**150,000,000**
**      Credit Agreement dated 24 January 2007 (as amended and restated from time to      time) **
**      Agreement**

| 1. | We                refer to the Agreement. This is a Compliance                Certificate. |
|----|--------------------------------------------------------------------------------------------|

| 2. | We                confirm that as at [relevant testing date], Consolidated EBITDA was                [          ] and                Interest Payable was                [          ], therefore                the ratio of Consolidated EBITDA to Interest Payable was                [          ] to                1. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | We                confirm that as at [relevant testing date], Regulatory Asset Base                was                [          ] and Total                Net Debt was                [          ]; therefore                Regulatory Asset Base exceeded Total Net Debt by                [          ]. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | We                set out below calculations establishing the figures in paragraph                2                above: |
|----|---------------------------------------------------------------------------------------------------------------------------|

| 5. | [We                confirm that no Default is outstanding as at [relevant testing                date].]1 |
|----|----------------------------------------------------------------------------------------------------------------|

| 1 | If                  this statement cannot be made, the certificate should identify                  any Default                  that is outstanding and the steps, if any, being taken to remedy                  it. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATORIES**

**Borrower**

**WESTERN      POWER DISTRIBUTION HOLDINGS LIMITED**

**Mandated      Lead Arranger**

**BARCLAYS      CAPITAL**

**BAYERISCHE      LANDESBANK**

| By: | STEVE                J MEYER |   | MATTHEW                WILLIAMS |
|-----|------------------------------|--------|---------------------------------|

**LLOYDS      TSB BANK PLC**

**Original      Lenders**

**BARCLAYS      BANK PLC**

**BAYERISCHE      LANDESBANK**

| By: | STEVE                J MEYER |   | MATTHEW                WILLIAMS |
|-----|------------------------------|--------|---------------------------------|

**LLOYDS      TSB BANK PLC**

**Facility      Agent**

**LLOYDS      TSB BANK PLC**