Exhibit 2.2

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THIS AMENDED AND RESTATED TRUST DEEDis made on 4th October, 2002 BETWEEN:

|(1) | UNITED UTILITIES PLC, a company
      incorporated under the laws of the England, whose registered office is at
      Dawson House, Great Sankey, Warrington WA5 3LW, England (“United”);
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|    |                                                                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | UNITED UTILITIES ELECTRICITY
      PLC(formerly called NORWEB plc), a company incorporated under the laws
      of the England, whose registered office is at Dawson House, Great Sankey,
      Warrington WA5 3LW, England (“UUE”);

|    |                                                                                                                                                                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | UNITED UTILITIES WATER PLC,
      a company incorporated under the laws of England, whose registered office
      is at P.O. Box 14, 410 Dawson House, Great Sankey, Warrington WA5 3LW, England
      (“UUW” and, together with United and UUE, the “Issuers”
      and each an “Issuer”); and

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | THE LAW DEBENTURE TRUST CORPORATION
      p.l.c., a company incorporated under the laws of England, whose registered
      office is at Fifth Floor, 100 Wood Street, London EC2V 7EX, England (the
      “Trustee”, which expression shall, wherever the context
      so admits, include such company and all other persons or companies for the
      time being the trustee or trustees of these presents) as trustee for the
      Noteholders, the Receiptholders and the Couponholders (each as defined below).

WHEREAS:

|(1) | The Issuers, North West Water Finance PLC (“NWW”), UUW (under its then name of North West Water Limited) as guarantor of Notes issued by NWW and the Trustee entered into a Trust Deed dated 13th October, 1998 and two trust deeds supplemental thereto dated 5th October, 1999 and 4th October, 2000 (the “Existing Trust Deeds”) relating to a U.S.$3,000,000,000 Euro Medium Term Note Programme established by the Issuers and NWW.
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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
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|(2) | With effect on and from 4th October,
      2001 NWW for the future ceased to be an issuer under the Programme but remains
      a party to, and liable as principal debtor under, the Existing Trust Deeds
      in respect of Notes issued by it prior to 4th October, 2001 and UUW
      ceased to be a guarantor under the Programme but remains a party to, and
      liable as guarantor under, the Existing Trust Deeds in respect of Notes
      issued by NWW prior to 4th October, 2001.

|    |                                                                                                                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | United, UUE, UUW and the Trustee
      entered into an Amended and Restated Trust Deed dated 4th October,
      2001 (the “Amended and Restated Trust Deed”) which amended
      and restated the Existing Trust Deeds.

|    |                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------
|(4) | Under the Amended and Restated
      Trust Deed UUW became a party to these presents as an Issuer of Notes under
      the Programme.

|    |                                                                                                                                                                                                                                                                                                                                                                                              
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|(5) | The parties hereto have determined
      to amend and restate the Amended and Restated Trust Deed in the manner hereinafter
      appearing in relation to issues of Notes made under the Programme on and
      after the date hereof other than any such issues which are to be consolidated
      and form a single series with any Series of Notes issued prior to the date
      hereof.

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
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|(6) | By resolutions of the Board of
      Directors of United dated 26th May, 1998, 25th September, 2001
      and 24th September, 2002 and of the financing committee of the Board of
      Directors of United dated 5th October, 1998, resolutions of the Board of
      Directors of UUE dated 24th June, 1998, 13th September, 2001 and
      25th September, 2002 and of the financing committee of the Board of
      Directors of UUE dated 5th October, 1998 and resolutions of the Board of
      Directors of UUW dated 12th September, 2002, each of them has resolved to

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| | establish a single Euro Medium
      Term Note Programme pursuant to which each of them may from time to time
      issue Notes as set out herein. Notes up to a maximum nominal amount (calculated
      in accordance with Clause 3(6) of the Programme Agreement (as defined below))
      from time to time outstanding of Euro 4,000,000,000 (subject to increase
      as provided in the Programme Agreement) (the “Programme Limit”)
      may be issued pursuant to the said Programme.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|    |                                                                                                                                                                                                                          
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|(7) | The Trustee has agreed to act
      as trustee of these presents for the benefit of the Noteholders, the Receiptholders
      and the Couponholders upon and subject to the terms and conditions of these
      presents.

NOW THIS TRUST DEED WITNESSES AND IT IS AGREED AND DECLARED as follows:

|1.  | Definitions                                                                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(A) | IN these presents unless there
      is anything in the subject or context inconsistent therewith the following
      expressions shall have the following meanings:

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Agency Agreement”
      means the amended and restated agreement dated 4th October, 2002, as amended
      and/or supplemented and/or restated from time to time, pursuant to which
      the Issuers have appointed the Principal Paying Agent and the other Paying
      Agents in relation to all or any Series of the Notes and any other agreement
      for the time being in force appointing further or other Paying Agents or
      Transfer Agents or another Principal Paying Agent, Exchange Agent or Registrar
      in relation to all or any Series of the Notes, or in connection with their
      duties, the terms of which have previously been approved in writing by the
      Trustee, together with any agreement for the time being in force amending
      or modifying with the prior written approval of the Trustee any of the aforesaid
      agreements;

| |                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------
| | “Appointee”
      means any attorney, manager, agent, delegate or other person appointed by
      the Trustee under these presents;

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Auditors”
      means the auditors for the time being of the relevant Issuer or, in the
      event of their being unable or unwilling promptly to carry out any action
      requested of them pursuant to the provisions of these presents, such other
      firm of accountants as may be nominated by the relevant Issuer and approved
      by the Trustee or, failing such nomination and/or approval, as may be nominated
      by the Trustee, in each case for the purposes of these presents;

| |                                                                                                                                                                                                                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Calculation Agent”
      means, in relation to all or any Series of the Notes, the person initially
      appointed as calculation agent in relation to such Notes by the relevant
      Issuer pursuant to the Agency Agreement or, if applicable, any Successor
      calculation agent in relation to all or any Series of the Notes;

| |                                                                            
| | ---------------------------------------------------------------------------
| | “Clearstream, Luxembourg”
      means Clearstream Banking, société anonyme;

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Conditions”
      means, in relation to the Notes of any Series, the terms and conditions
      endorsed on or incorporated by reference into the Note or Notes constituting
      such Series, such terms and conditions being in or substantially in the
      form set out in the First Schedule or in such other form, having regard
      to the terms of the Notes of the relevant Series, as may be agreed between
      the relevant Issuer, the Trustee and the relevant Dealer(s) as modified
      and supplemented by the Pricing Supplement applicable to the Notes of the
      relevant Series, in each case as from time to time modified in accordance
      with the provisions of these presents;

| |                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------
| | “Coupon” means
      an interest coupon appertaining to a Definitive Note (other than a Zero
      Coupon Note), such coupon being:

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| | (i) | if appertaining to a Fixed Rate Note, in the form or substantially in the form set out in Part V A of the Second Schedule or in such other form, having regard to the terms of issue of the Notes of the relevant Series, as may be agreed between the relevant Issuer, the Principal Paying Agent, the Trustee and the relevant Dealer(s); or
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                 
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) | if appertaining to a Floating
      Rate Note or an Index Linked Interest Note, in the form or substantially
      in the form set out in Part V B of the Second Schedule or in such other
      form, having regard to the terms of issue of the Notes of the relevant Series,
      as may be agreed between the relevant Issuer, the Principal Paying Agent,
      the Trustee and the relevant Dealer(s); or

| |       |                                                                                                                                                                                                                                                                                     
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iii) | if appertaining to a Definitive
      Note which is neither a Fixed Rate Note nor a Floating Rate Note nor an
      Index Linked Interest Note, in such form as may be agreed between the relevant
      Issuer, the Principal Paying Agent, the Trustee and the relevant Dealer(s),

| |                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------
| | and includes, where applicable,
      the Talon(s) appertaining thereto and any replacements for Coupons and Talons
      issued pursuant to Condition 11;

| |                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Couponholders”
      means the several persons who are for the time being holders of the Coupons
      and includes, where applicable, the Talonholders;

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Dealers”
      means ABN AMRO Bank N.V., Tokyo-Mitsubishi International plc, Deutsche Bank
      AG London, J.P. Morgan Securities Ltd., The Royal Bank of Scotland plc and
      UBS AG, acting through its business group UBS Warburg and any other entity
      which the relevant Issuer may appoint as a Dealer and notice of whose appointment
      has been given to the Principal Paying Agent and the Trustee by the relevant
      Issuer in accordance with the provisions of the Programme Agreement but
      excluding any entity whose appointment has been terminated in accordance
      with the provisions of the Programme Agreement and notice of such termination
      has been given to the Principal Paying Agent and the Trustee by the relevant
      Issuer in accordance with the provisions of the Programme Agreement and
      references to a “relevant Dealer” or “relevant
      Dealer(s)” mean, in relation to any Tranche or Series of Notes,
      the Dealer or Dealers with whom the relevant Issuer has agreed the issue
      of the Notes of such Tranche or Series and “Dealer” means
      any one of them;

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Definitive Note”
      means a Note in definitive form issued or, as the case may require, to be
      issued by the relevant Issuer in accordance with the provisions of the Programme
      Agreement or any other agreement between the relevant Issuer and the relevant
      Dealer(s) in relation to the Programme in exchange for either a Temporary
      Global Note or part thereof or a Permanent Global Note (all as indicated
      in the applicable Pricing Supplement), such Note in definitive form being
      in the form or substantially in the form set out in Part III of the Second
      Schedule with such modifications (if any) as may be agreed between the relevant
      Issuer, the Principal Paying Agent, the Trustee and the relevant Dealer(s)
      and having the Conditions endorsed thereon or, if permitted by the relevant
      Stock Exchange, incorporating the Conditions by reference (where applicable
      to this Trust Deed) as indicated in the applicable Pricing Supplement and
      having the relevant information supplementing, replacing or modifying the
      Conditions appearing in the applicable Pricing Supplement endorsed thereon
      or attached thereto and (except in the case of a Zero Coupon Note) having
      Coupons and, where appropriate, Receipts and/or Talons attached thereto
      on issue;

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| | “Distribution Compliance Period” means the period expiring 40 days after the later of the relevant Issue Date of the Notes of a Tranche and the completion of the distribution of all Notes of such Tranche as determined by the Principal Paying Agent (based on information provided by the relevant Dealer(s)) and notified by the Principal Paying Agent to the relevant Issuer and each of Euroclear and Clearstream, Luxembourg;
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| |                                                                                                                                                                                                                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Dual Currency Note”
      means a Note in respect of which payments of principal and/or interest are
      made or to be made in such different currencies, and at rates of exchange
      calculated upon such basis or bases, as the relevant Issuer and the relevant
      Dealer(s) may agree (as indicated in the applicable Pricing Supplement);

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| | -----------------------------------------------------------------------------------
| | “Early Redemption Amount”
      has the meaning ascribed thereto in Condition 7(e);

| |                                                                                      
| | -------------------------------------------------------------------------------------
| | “Euroclear”
      means Euroclear Bank S.A./N.V. as operator of the Euroclear System;

| |                                                                                                                                                                                                                                                                                            
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Event of Default”
      means any of the conditions, events or acts provided in Condition 10(a)
      to be events upon the happening of which the Notes of any Series would,
      subject only to notice by the Trustee as therein provided, become immediately
      due and repayable;

| |                                                                                                         
| | --------------------------------------------------------------------------------------------------------
| | “Extraordinary Resolution”
      has the meaning ascribed thereto in paragraph 20 of the Third Schedule;

| |                                                                                                                                                                                                                                                                                                                                           
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Fixed Rate Note”
      means a Note on which interest is calculated at a fixed rate payable in
      arrear on a fixed date or fixed dates in each year and on redemption or
      on such other dates as may be agreed between the relevant Issuer and the
      relevant Dealer(s) (as indicated in the applicable Pricing Supplement);

| |                                                                                                                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Floating Rate Note”
      means a Note on which interest is calculated at a floating rate payable
      one-, two-, three-, six- or twelve-monthly or in respect of such other period
      or on such date(s) as may be agreed between the relevant Issuer and the
      relevant Dealer(s) (as indicated in the applicable Pricing Supplement);

| |                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------
| | “Global Note”
      means a Temporary Global Note and/or a Permanent Global Note, as the context
      may require;

| |                                                                                                                                                                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Index Linked Interest
      Note” means a Note in respect of which the amount payable in respect
      of interest is calculated by reference to an index and/or a formula as the
      relevant Issuer and the relevant Dealer(s) may agree (as indicated in the
      applicable Pricing Supplement);

| |                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------
| | “Index Linked Note”
      means an Index Linked Interest Note and/or an Index Linked Redemption Note,
      as applicable;

| |                                                                                                                                                                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Index Linked Redemption
      Note” means a Note in respect of which the amount payable in respect
      of principal is calculated by reference to an index and/or a formula as
      the relevant Issuer and the relevant Dealer(s) may agree (as indicated in
      the applicable Pricing Supplement);

| |                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Interest Commencement
      Date” means, in the case of interest-bearing Notes, the date specified
      in the applicable Pricing Supplement from (and including) which such Notes
      bear interest, which may or may not be the Issue Date;

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| | “Interest Payment Date” means, in relation to any Floating Rate Note or Index Linked Interest Note, either:
| | -----------------------------------------------------------------------------------------------------------

| |     |                                                                                                                                                                                                                                                                                           
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) | the date which falls the number
      of months or other period specified as the “Interest Period”
      in the applicable Pricing Supplement after the preceding Interest Payment
      Date or the Interest Commencement Date (in the case of the first Interest
      Payment Date); or

| |      |                                                                                
| | ---- | -------------------------------------------------------------------------------
| | (ii) | such date or dates as are indicated
      in the applicable Pricing Supplement;

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Issue Date”
      means, in respect of any Note, the date of issue and purchase of such Note
      pursuant to and in accordance with the Programme Agreement or any other
      agreement between the relevant Issuer and the relevant Dealer(s), being
      in the case of any Definitive Note represented initially by a Global Note,
      the same date as the date of issue of the Global Note which initially represented
      such Note;

| |                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------
| | “Issue Price”
      means the price, generally expressed as a percentage of the nominal amount
      of the Notes, at which the Notes will be issued;

| |                                                                                                                                                                                                                                                                                                                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Liability”
      means any loss, damage, cost, charge, claim, demand, expense, judgment,
      action, proceeding or other liability whatsoever (including, without limitation,
      in respect of taxes, duties, levies, imposts and other charges) and including
      any value added tax or similar tax charged or chargeable in respect thereof
      and legal fees and expenses on a full indemnity basis;

| |                                                                          
| | -------------------------------------------------------------------------
| | “London Business Day”
      has the meaning set out in Condition 5(b)(v);

| |                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------
| | “London Stock Exchange”
      means the London Stock Exchange plc or such other body to which its functions
      have been transferred;

| |                                                                              
| | -----------------------------------------------------------------------------
| | “Material Subsidiary”
      has the meaning ascribed thereto in Condition 10;

| |                                                                                    
| | -----------------------------------------------------------------------------------
| | “Maturity Date”
      means the date on which a Note is expressed to be redeemable;

| |                                    
| | -----------------------------------
| | “month” means
      calendar month;

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Note” means
      a note issued pursuant to the Programme and denominated in such currency
      or currencies as may be agreed between the relevant Issuer and the relevant
      Dealer(s) which has such maturity and denomination as may be agreed between
      the relevant Issuer and the relevant Dealer(s) and issued or to be issued
      by the relevant Issuer pursuant to the Programme Agreement or any other
      agreement between the relevant Issuer and the relevant Dealer(s) relating
      to the Programme, the Agency Agreement and these presents and which shall
      initially be represented by, and comprised in, either (a) a Temporary
      Global Note which may (in accordance with the terms of such Temporary Global
      Note) be exchanged for Definitive Notes or a Permanent Global Note which
      Permanent Global Note may (in accordance with the terms of such Permanent
      Global Note) in turn be exchanged for Definitive Notes or (b) a Permanent
      Global Note which may (in accordance with the terms of such Permanent Global
      Note) be exchanged for Definitive Notes (all as indicated in the applicable
      Pricing Supplement) and includes any replacements for a Note issued pursuant
      to Condition 11;

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| | “Noteholders”
      means the several persons who are for the time being holders of outstanding
      Notes save that, in respect of the Notes of any Series, for so long as such
      Notes or any part thereof are represented by a Global Note deposited with
      a common depositary for Euroclear and Clearstream, Luxembourg, each person
      who is for the time being shown in the records of Euroclear or Clearstream,
      Luxembourg (other than Clearstream, Luxembourg, if Clearstream, Luxembourg
      shall be an accountholder of Euroclear and Euroclear, if Euroclear shall
      be an accountholder of Clearstream, Luxembourg) as the holder of a particular
      nominal amount of the Notes of such Series shall be deemed to be the holder
      of such nominal amount of such Notes (and the holder of the relevant Global
      Note shall be deemed not to be the holder) for all purposes of these presents
      other than with respect to the payment of principal or interest on such
      nominal amount of such Notes, the rights to which shall be vested, as against
      the relevant Issuer and the Trustee, solely in such common depositary and
      for which purpose such common depositary shall be deemed to be the holder
      of such nominal amount of such Notes in accordance with and subject to its
      terms and the provisions of these presents and the expressions “Noteholder”,
      “holder”  and “holder of Notes”
      and related expressions shall be construed accordingly;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------
| | “notice” means,
      in respect of a notice to be given to Noteholders, a notice validly given
      pursuant to Condition 14;

| |                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------
| | “Official List”
      has the meaning given in Section 103 of the Financial Services and Markets
      Act 2000;

| |                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------
| | “outstanding”
      means, in relation to the Notes of all or any Series, all the Notes of such
      Series issued other than:

| |     |                                                                       
| | --- | ----------------------------------------------------------------------
| | (a) | those Notes which have been
      redeemed pursuant to these presents;

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | those Notes in respect of which
      the date for redemption in accordance with the Conditions has occurred and
      the redemption moneys (including all interest payable thereon) have been
      duly paid to the Trustee or to the Principal Paying Agent in the manner
      provided in the Agency Agreement (and, where appropriate, notice to that
      effect has been given to the relative Noteholders in accordance with Condition 14)
      and remain available for payment against presentation of the relevant Notes
      and/or Receipts and/or Coupons;

| |     |                                                                                                       
| | --- | ------------------------------------------------------------------------------------------------------
| | (c) | those Notes which have been
      purchased and cancelled in accordance with Conditions 7(h) and 9(i);

| |     |                                                            
| | --- | -----------------------------------------------------------
| | (d) | those Notes which have become
      void under Condition 9;

| |     |                                                                                                                                                                       
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (e) | those mutilated or defaced Notes
      which have been surrendered and cancelled and in respect of which replacements
      have been issued pursuant to Condition 11;

| |     |                                                                                                                                                                                                                                                                                                                                                         
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (f) | (for the purpose only of ascertaining
      the nominal amount of the Notes outstanding and without prejudice to the
      status for any other purpose of the relevant Notes) those Notes which are
      alleged to have been lost, stolen or destroyed and in respect of which replacement
      notes have been issued pursuant to Condition 11; and

| |     |                                                                                                                                                                                                                                                                                                                                                         
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (g) | any Temporary Global Note to
      the extent that it shall have been exchanged for Definitive Notes or a Permanent
      Global Note and any Permanent Global Note to the extent that it shall have
      been exchanged for Definitive Notes in each case pursuant to its provisions,
      the provisions of these presents and the Agency Agreement,

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| | PROVIDED THAT for each of the following purposes,
      namely:
| | ---------------------------------------------------------------

| |     |                                                                                             
| | --- | --------------------------------------------------------------------------------------------
| | (i) | the right to attend and vote
      at any meeting of the holders of the Notes of any Series;

| |      |                                                                                                                                                                                                                           
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) | the determination of how many
      and which Notes of any Series are for the time being outstanding for the
      purposes of Clause 8(A), Conditions 10 and 15 and paragraphs 2,
      5, 6 and 9 of the Third Schedule;

| |       |                                                                                                                                                                                                                                                                               
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iii) | any discretion, power or authority
      (whether contained in these presents or vested by operation of law) which
      the Trustee is required, expressly or impliedly, to exercise in or by reference
      to the interests of the holders of the Notes of any Series; and

| |      |                                                                                                                                                                                                     
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iv) | the determination by the Trustee
      whether any event, circumstance, matter or thing is, in its opinion, materially
      prejudicial to the interests of the holders of the Notes of any Series,

| |                                                                                                                                                                                                                                                                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | those Notes of the relevant Series
      (if any) which are for the time being held by or on behalf of the relevant
      Issuer, any Subsidiary or holding company of the relevant Issuer or any
      other Subsidiary of any such holding company, in each case as beneficial
      owner, shall (unless and until ceasing to be so held) be deemed not to remain
      outstanding;

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Paying Agents”
      means, in relation to all or any Series of the Notes, the several institutions
      (including, where the context permits, the Principal Paying Agent) at their
      respective specified offices initially appointed as paying agents in relation
      to such Notes by the relevant Issuer and pursuant to the Agency Agreement
      and/or, if applicable, any Successor paying agents at their respective specified
      offices in relation to all or any Series of the Notes;

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Permanent Global Note”
      means a global note in the form or substantially in the form set out in
      Part II of the Second Schedule with such modifications (if any) as may be
      agreed between the relevant Issuer, the Principal Paying Agent, the Trustee
      and the relevant Dealer(s), together with the copy of the applicable Pricing
      Supplement annexed thereto, comprising some or all of the Notes of the same
      Series, issued by the relevant Issuer pursuant to the Programme Agreement
      or any other agreement between the relevant Issuer and the relevant Dealer(s)
      relating to the Programme, the Agency Agreement and these presents either
      in exchange for the whole or part of any Temporary Global Note issued in
      respect of such Notes or on issue;

| |                                                                                                                                                                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Potential Event of
      Default” means any condition, event or act which, with the lapse
      of time and/or the issue, making or giving of any notice, certification,
      declaration, demand, determination and/or request and/or the taking of any
      similar action and/or the fulfilment of any similar condition, would constitute
      an Event of Default;

| |                                                                               
| | ------------------------------------------------------------------------------
| | “Pricing Supplement”
      has the meaning set out in the Programme Agreement;

| |                                                                                                                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Principal Paying Agent”
      means, in relation to all or any Series of the Notes, Citibank, N.A. at
      its office at 5 Carmelite Street, London EC4Y 0PA or, if applicable, any
      Successor principal paying agent in relation to all or any Series of the
      Notes;

| |                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------
| | “Programme”
      means the Euro Medium Term Note Programme established by, or otherwise contemplated
      in, the Programme Agreement;

| |                                                                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Programme Agreement”
      means the amended and restated agreement of even date herewith between the
      Issuers and the Dealers named therein concerning the purchase of Notes to
      be

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| | issued pursuant to the Programme
      together with any agreement for the time being in force amending, replacing,
      novating or modifying such agreement and any accession letters and/or agreements
      supplemental thereto;                                                                                                                                                                                                                                                                
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | “Receipt”
      means a receipt attached on issue to a Definitive Note redeemable in instalments
      for the payment of an instalment of principal, such receipt being in the
      form or substantially in the form set out in Part IV of the Second Schedule
      or in such other form as may be agreed between the relevant Issuer, the
      Principal Paying Agent, the Trustee and the relevant Dealer(s) and includes
      any replacements for Receipts issued pursuant to Condition 11;

| |                                                                                                     
| | ----------------------------------------------------------------------------------------------------
| | “Receiptholders”
      means the several persons who are for the time being holders of the Receipts;

| |                                                                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Reference Banks”
      means the several banks initially appointed as reference banks in relation
      to the Notes and referred to in the Conditions and/or, if applicable, any
      Successor reference banks in relation to the Notes;

| |                                                              
| | -------------------------------------------------------------
| | “Relevant Date”
      has the meaning set out in Condition 8;

| |                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------
| | “repay”, “redeem”
      and “pay” shall each include both the others and cognate
      expressions shall be construed accordingly;

| |                                                                                   
| | ----------------------------------------------------------------------------------
| | “Securities Act”
      means the United States Securities Act of 1933, as amended;

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Series” means
      a Tranche of Notes together with any further Tranche or Tranches of Notes
      which are (i) expressed to be consolidated and form a single series and
      (ii) identical in all respects (including as to listing) except for their
      respective Issue Dates, Interest Commencement Dates and/or Issue Prices
      and the expressions “Notes of the relevant Series”, “holders
      of Notes of the relevant Series” and related expressions shall
      be construed accordingly;

| |                                                                                                                                                                                                                                                                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Stock Exchange”
      means the London Stock Exchange, or any other or further stock exchange(s)
      on which any Notes may from time to time be listed, and references in these
      presents to the “relevant Stock Exchange” shall, in relation
      to any Notes, be references to the Stock Exchange on which such Notes are,
      from time to time, or are intended to be, listed;

| |                                                                                                                                                                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Subsidiary”
      means any company which is for the time being a subsidiary (within the meaning
      of Section 736 of the Companies Act 1985 of Great Britain) or a subsidiary
      undertaking (within the meaning of Section 258 and Schedule 10A of the Companies
      Act 1985 of Great Britain);

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Successor”
      means, in relation to the Principal Paying Agent, the other Paying Agents,
      the Reference Banks and the Calculation Agent, any successor to any one
      or more of them in relation to the Notes which shall become such pursuant
      to the provisions of these presents and/or the Agency Agreement (as the
      case may be) and/or such other or further principal paying agent, paying
      agents, reference banks or calculation agent (as the case may be) in relation
      to the Notes as may (with the prior approval of, and on terms previously
      approved by, the Trustee in writing) from time to time be appointed as such,
      and/or, if applicable, such other or further specified offices (in the former
      case being within the same city as those for which they are substituted)
      as may from time to time be nominated, in each case by the relevant Issuer,
      and (except in the case of the initial appointments and specified offices
      made under and specified in the Conditions and/or the Agency Agreement,
      as the case may be)

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| | notice of whose appointment
      or, as the case may be, nomination has been given to the Noteholders;
| | -------------------------------------------------------------------------------------------------------
| |                                                                                                        
| | “Talonholders”
      means the several persons who are for the time being holders of the Talons;       

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Talons” means
      the talons (if any) appertaining to, and exchangeable in accordance with
      the provisions therein contained for further Coupons appertaining to, the
      Definitive Notes (other than the Zero Coupon Notes), such talons being in
      the form or substantially in the form set out in Part VI of the Second Schedule
      or in such other form as may be agreed between the relevant Issuer, the
      Principal Paying Agent, the Trustee and the relevant Dealer(s) and includes
      any replacements for Talons issued pursuant to Condition 11;

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Temporary Global Note”
      means a temporary global note in the form or substantially in the form set
      out in Part I of the Second Schedule with such modifications (if any)
      as may be agreed between the relevant Issuer, the Principal Paying Agent,
      the Trustee and the relevant Dealer(s), together with the copy of the applicable
      Pricing Supplement annexed thereto, comprising some or all of the Notes
      of the same Series, issued by the relevant Issuer pursuant to the Programme
      Agreement or any other agreement between the relevant Issuer and the relevant
      Dealer(s) relating to the Programme, the Agency Agreement and these presents;

| |                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “these presents”
      means this Amended and Restated Trust Deed and the Schedules and any trust
      deed supplemental hereto and the Schedules (if any) thereto and the Notes,
      the Receipts, the Coupons, the Talons, the Conditions and, unless the context
      otherwise requires, the Pricing Supplements, all as from time to time modified
      in accordance with the provisions herein or therein contained;

| |                                                                                               
| | ----------------------------------------------------------------------------------------------
| | “Tranche”
      means all Notes which are identical in all respects (including as to listing);

| |                                                                                                                                                                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | “Trust Corporation”
      means a corporation entitled by rules made under the Public Trustee Act
      1906 of Great Britain or entitled pursuant to any other comparable legislation
      applicable to a trustee in any other jurisdiction to carry out the functions
      of a custodian trustee;

| |                                                                                               
| | ----------------------------------------------------------------------------------------------
| | “Trustee Acts”
      means the Trustee Act 1925 and the Trustee Act 2000 of England and Wales;

| |                                                                       
| | ----------------------------------------------------------------------
| | “Zero Coupon Note”
      means a Note on which no interest is payable;

| |                                                                           
| | --------------------------------------------------------------------------
| | words denoting the singular shall
      include the plural and vice versa;

| |                                                                                       
| | --------------------------------------------------------------------------------------
| | words denoting one gender only
      shall include the other genders; and             
| |                                                                                       
| | words denoting persons only shall
      include firms and corporations and vice versa.
| |                                                                                       

|(B) | (i) | All references in these presents
      to principal and/or principal amount and/or interest in respect of the Notes
      or to any moneys payable by the relevant Issuer under these presents shall,
      unless the context otherwise requires, be construed in accordance with Condition
      6(f).
|--- | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                                                                                                                                                       
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) | All references in these presents
      to any statute or any provision of any statute shall be deemed also to refer
      to any statutory modification or re-enactment thereof or any statutory instrument,
      order or regulation made thereunder or under any such modification or re-enactment.

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| | (iii) | All references in these presents to guarantees or to an obligation being guaranteed shall be deemed to include respectively references to indemnities or to an indemnity being given in respect thereof.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iv) | All references in these presents
      to any action, remedy or method of proceeding for the enforcement of the
      rights of creditors shall be deemed to include, in respect of any jurisdiction
      other than England, references to such action, remedy or method of proceeding
      for the enforcement of the rights of creditors available or appropriate
      in such jurisdiction as shall most nearly approximate to such action, remedy
      or method of proceeding described or referred to in these presents.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (v) | All references in these presents
      to Euroclear and/or Clearstream, Luxembourg shall, whenever the context
      so permits, be deemed to include references to any successor operator and/or
      successor clearing system and/or any additional or alternative clearing
      system specified in the applicable Pricing Supplement or otherwise approved
      by the Trustee, the relevant Issuer and the Principal Paying Agent. All
      references in these presents to the common depositary shall, whenever the
      context so permits, be deemed to include references to any successor common
      depositary or any additional or alternative common depositary as is approved
      by the relevant Issuer, the Principal Paying Agent and the Trustee.

| |      |                                                                                                                                                                          
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (vi) | Unless the context otherwise
      requires words or expressions used in these presents shall bear the same
      meanings as in the Companies Act 1985 of Great Britain.

| |       |                                                                                                                                                                                                                                                                                       
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (vii) | In this Trust Deed references
      to Schedules, Clauses, sub-clauses, paragraphs and sub-paragraphs shall
      be construed as references to the Schedules to this Trust Deed and to the
      Clauses, sub-clauses, paragraphs and sub-paragraphs of this Trust Deed respectively.

| |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (viii) | All references in these presents
      involving compliance by the Trustee with a test of reasonableness shall
      be deemed to include a reference to a requirement that such reasonableness
      shall be determined by reference primarily to the interests of the holders
      of the Notes of the relevant one or more Series as a class and in the event
      of any conflict between such interests and the interests of any other person,
      the former shall prevail as being paramount.

| |      |                                                                                                                                                                 
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ix) | In these presents tables of
      contents and Clause headings are included for ease of reference and shall
      not affect the construction of these presents.

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(C) | Words and expressions defined
      in these presents or the Agency Agreement or used in the applicable Pricing
      Supplement shall have the same meanings where used herein unless the context
      otherwise requires or unless otherwise stated and provided that, in the
      event of inconsistency between the Agency Agreement and these presents,
      these presents shall prevail and, in the event of inconsistency between
      the Agency Agreement or these presents and the applicable Pricing Supplement,
      the applicable Pricing Supplement shall prevail.

|    |                                                                                                                                                                                                                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(D) | Subject to the provisions of
      Condition 4, all references in these presents to the “relevant
      currency” shall be construed as references to the currency in
      which payments in respect of the Notes and/or Receipts and/or Coupons of
      the relevant Series are to be made as indicated in the applicable Pricing
      Supplement.

|    |                                                                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(E) | As used herein, in relation
      to any Notes which have a “listing" or are “listed” on
      the London Stock Exchange, “listing” and “listed”
      shall be construed to mean that such Notes have been admitted to the Official
      List and admitted to trading on the London Stock Exchange's market

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| |                                                                                                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | for listed securities. All references
      in these presents to “listing” and “listed”
      shall include references to “quotation” and “quoted”
      respectively.

|
|

|2.  | Amount and Issue of the Notes                                     
|--- | ------------------------------------------------------------------
|(A) | Amount of the Notes, Pricing
      Supplements and Legal Opinions:

| |                                                                                                                                                                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | THE Notes will be issued in Series
      in an aggregate nominal amount from time to time outstanding not exceeding
      the Programme Limit from time to time and for the purpose of determining
      such aggregate nominal amount Clause 3(5) of the Programme Agreement
      shall apply.

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | By not later than 3.00 p.m. (London
      time) on the second London Business Day preceding each proposed Issue Date,
      the relevant Issuer shall deliver or cause to be delivered to the Trustee
      a copy of the applicable Pricing Supplement and drafts of all legal opinions
      to be given in relation to the relevant issue and shall notify the Trustee
      in writing without delay of the relevant Issue Date and the nominal amount
      of the Notes to be issued. Upon the issue of the relevant Notes, such Notes
      shall become constituted by these presents without further formality.

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | On such occasions as the Trustee
      so requests (on the basis that the Trustee considers it necessary in view
      of a change (or proposed change) in applicable law affecting the relevant
      Issuer, these presents, the Programme Agreement or the Agency Agreement
      or the Trustee has other reasonable grounds), the relevant Issuer will procure
      that (a) further legal opinion(s) (relating, if applicable, to any
      such change or proposed change) in such form and with such content as the
      Trustee may require from the legal advisers specified in the Programme Agreement
      or such other legal advisers as the Trustee may require is/are delivered
      to the Trustee. Whenever such a request is made with respect to any Notes
      to be issued, the receipt of such opinion in a form satisfactory to the
      Trustee shall be a further condition precedent to the issue of those Notes.

|    |                                                       
|--- | ------------------------------------------------------
|(B) | Covenant to repay principal
      and to pay interest:

| | The relevant Issuer covenants with the Trustee that it will, as and when the Notes of any Series or any of them or any instalment of principal in respect thereof becomes due to be redeemed in accordance with the Conditions, unconditionally pay or procure to be paid to or to the order of the Trustee in the relevant currency in immediately available funds the principal amount in respect of the Notes of such Series or the amount of such instalment becoming due for redemption on that date and (except in the case of Zero Coupon Notes) shall (subject to the provisions of the Conditions) in the meantime and until redemption in full of the Notes of such Series (both before and after any judgment or other order of a court of competent jurisdiction) unconditionally pay or procure to be paid to or to the order of the Trustee as aforesaid interest (which shall accrue from day to day) on the nominal amount of the Notes outstanding of such Series at rates and/or in
amounts calculated from time to time in accordance with, or specified in, and on the dates provided for in, the Conditions (subject to Clause 2(D)) PROVIDED THAT:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |     |                                                                                                                                                                                                                                                                                                                                                                                     
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) | every payment of principal or
      interest or other sum due in respect of the Notes made to or to the order
      of the Principal Paying Agent in the manner provided in the Agency Agreement
      shall be in satisfaction pro tanto of the relative covenant by the
      relevant Issuer in this Clause contained in relation to the Notes of such
      Series except to the

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| |  | extent that there is a default in
      the subsequent payment thereof in accordance with the Conditions to the
      relevant Noteholders, Receiptholders or Couponholders (as the case may be);
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) | in the case of any payment of
      principal which is not made to the Trustee or the Principal Paying Agent
      on or before the due date or which is so made on or after accelerated maturity
      following an Event of Default, interest shall (subject, where applicable,
      as provided in the Conditions) continue to accrue on the nominal amount
      of the relevant Notes (except in the case of Zero Coupon Notes to which
      the provisions of Condition 7(j) shall apply) (both before and after
      any judgment or other order of a court of competent jurisdiction) at the
      rates aforesaid up to and including the date which the Trustee determines
      to be the date on and after which payment is to be made in respect thereof
      as stated in a notice given to the holders of such Notes (such date to be
      not later than 30 days after the day on which the whole of such principal
      amount, together with an amount equal to the interest which has accrued
      and is to accrue pursuant to this proviso up to and including that date,
      has been received by the Trustee or the Principal Paying Agent); and

| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iii) | in any case where payment of
      the whole or any part of the principal amount of any Note is improperly
      withheld or refused upon due presentation thereof (other than in circumstances
      contemplated by (ii) above) interest shall accrue on the nominal amount
      of such Note (except in the case of Zero Coupon Notes to which the provisions
      of Condition 7(j) shall apply) payment of which has been so withheld
      or refused (both before and after any judgment or other order of a court
      of competent jurisdiction) at the rates aforesaid from the date of such
      withholding or refusal until the date on which, upon further presentation
      of the relevant Note, payment of the full amount (including interest as
      aforesaid) in the relevant currency payable in respect of such Note is made
      or (if earlier) the seventh day after notice is given to the relevant Noteholder(s)
      (whether individually or in accordance with Condition 14) that the full
      amount (including interest as aforesaid) in the relevant currency in respect
      of such Note is available for payment, provided that, upon further presentation
      thereof being duly made, such payment is made.

| |                                                                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Trustee will hold the benefit
      of this covenant on trust for the Noteholders, the Receiptholders and the
      Couponholders and itself in accordance with these presents.

|    |                                                                                                                                                                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(C) | Trustee’s
      requirements regarding Paying Agents etc:                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                
|    | At any time after an Event of
      Default or a Potential Event of Default shall have occurred or the Notes
      of all or any Series shall otherwise have become due and repayable or the
      Trustee shall have received any money which it proposes to pay under Clause 9
      to the relevant Noteholders, Receiptholders and/or Couponholders, the Trustee
      may:

| |     |                                                                                                                                                                                                                       
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) | by notice in writing to the
      relevant Issuer, the Principal Paying Agent and the other Paying Agents
      require the Principal Paying Agent and the other Paying Agents pursuant
      to the Agency Agreement:

| |  |     |                                                                                                                                                                                                                                                                                                                              
| |  | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (a) | to act thereafter as Principal
      Paying Agent and other Paying Agents respectively of the Trustee in relation
      to payments to be made by or on behalf of the Trustee under the terms of
      these presents mutatis mutandis on the terms provided in the Agency
      Agreement (save that the Trustee’s liability

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| |  |  | under any provisions thereof
      for the indemnification, remuneration and payment of out-of-pocket expenses
      of the Principal Paying Agent and the other Paying Agents shall be limited
      to the amounts for the time being held by the Trustee on the trusts of these
      presents relating to the Notes of the relevant Series and available for
      such purpose) and thereafter to hold all Notes, Receipts and Coupons and
      all sums, documents and records held by them in respect of Notes, Receipts
      and Coupons on behalf of the Trustee; or
| |  |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (b) | to deliver up all Notes, Receipts and Coupons and all sums, documents and records held by them in respect of Notes, Receipts and Coupons to the Trustee or as the Trustee shall direct in such notice provided that such notice shall be deemed not to apply to any documents or records which the Principal Paying Agent or relevant other Paying Agent is obliged not to release by any law or regulation; and
| |  | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) | by notice in writing to the
      relevant Issuer require each of them to make all subsequent payments in
      respect of the Notes, Receipts and Coupons to or to the order of the Trustee
      and not to the Principal Paying Agent and, with effect from the issue of
      any such notice to the relevant Issuer and until such notice is withdrawn,
      proviso (i) to sub-clause (B) of this Clause relating to the Notes
      shall cease to have effect.

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(D) | If the Floating Rate Notes or
      Index Linked Interest Notes of any Series become immediately due and repayable
      under Condition 10 the rate and/or amount of interest payable in respect
      of them will be calculated by the Calculation Agent at the same intervals
      as if such Notes had not become due and repayable, the first of which will
      commence on the expiry of the Interest Period during which the Notes of
      the relevant Series become so due and repayable mutatis mutandisin
      accordance with the provisions of Condition 5 except that the rates
      of interest need not be published.

|    |                      
|--- | ---------------------
|(E) | Currency of payments:

| | All payments in respect of, under and in connection with these presents and the Notes of any Series to the relevant Noteholders, Receiptholders and Couponholders shall be made in the relevant currency.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|    |               
|--- | --------------
|(F) | Further Notes:

| | The relevant Issuer shall be at liberty from time to time (but subject always to the provisions of these presents) without the consent of the Noteholders, Receiptholders or Couponholders to create and issue further Notes ranking pari passu in all respects (or in all respects save for the date from which interest thereon accrues and the amount of the first payment of interest on such further Notes) and so that the same shall be consolidated and form a single series with the outstanding Notes of a particular Series.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|    |                 
|--- | ----------------
|(G) | Separate Series:

| | The Notes of each Series shall form
      a separate Series of Notes and accordingly, unless for any purpose the Trustee
      in its absolute discretion shall otherwise determine, the provisions of
      this Clause and of Clauses 3 to 20 (both inclusive), 21(B) and the
      Third Schedule shall apply mutatis mutandis separately and independently
      to the Notes of each Series and in such Clauses and Schedule the expressions
      “Notes”, “Noteholders”, “Receipts”,
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | “Receiptholders”,
      “Coupons”, “Couponholders”, “Talons”
      and “Talonholders” shall be construed accordingly.
| | ---------------------------------------------------------------------------------------------------------------------

|
|

|3.  | Forms of the Notes
|--- | ------------------
|(A) | Global Notes:     

| | (i) | THE Notes of each Tranche will
      be represented on issue by either a single Temporary Global Note or a single
      Permanent Global Note. Each Temporary Global Note shall be exchangeable
      for either Definitive Notes together with, where applicable, Receipts and
      (except in the case of Zero Coupon Notes) Coupons and, where applicable,
      Talons attached, or a Permanent Global Note in each case in accordance with
      the provisions of such Temporary Global Note. Each Permanent Global Note
      shall be exchangeable for Definitive Notes together with, where applicable,
      Receipts and (except in the case of Zero Coupon Notes) Coupons and, where
      applicable, Talons attached, in accordance with the provisions of such Permanent
      Global Note. All Global Notes shall be prepared, completed and delivered
      to a common depositary for Euroclear and Clearstream, Luxembourg in accordance
      with the provisions of the Programme Agreement or to another appropriate
      depositary in accordance with any other agreement between the relevant Issuer
      and the relevant Dealer(s) and, in each case, the Agency Agreement.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) | Each Temporary Global Note shall
      be printed or typed in the form or substantially in the form set out in
      Part I of the Second Schedule and may be a facsimile. Each Temporary Global
      Note shall have annexed thereto a copy of the applicable Pricing Supplement
      and shall be signed manually or in facsimile by a person duly authorised
      by the relevant Issuer on behalf of the relevant Issuer and shall be authenticated
      by or on behalf of the Principal Paying Agent. Each Temporary Global Note
      so executed and authenticated shall be a binding and valid obligation of
      the relevant Issuer and title thereto shall pass by delivery.

| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iii) | Each Permanent Global Note shall
      be printed or typed in the form or substantially in the form set out in
      Part II of the Second Schedule and may be a facsimile. Each Permanent Global
      Note shall have annexed thereto a copy of the applicable Pricing Supplement
      and shall be signed manually or in facsimile by a person duly authorised
      by the relevant Issuer on behalf of the relevant Issuer and shall be authenticated
      by or on behalf of the Principal Paying Agent. Each Permanent Global Note
      so executed and authenticated shall be a binding and valid obligation of
      the relevant Issuer and title thereto shall pass by delivery.

|    |                  
|--- | -----------------
|(B) | Definitive Notes:

| | (i) | The Definitive Notes, the Receipts,
      the Coupons and the Talons shall be to bearer in the respective forms or
      substantially in the respective forms set out in Parts III, IV, V and VI,
      respectively, of the Second Schedule. The Definitive Notes, the Receipts,
      the Coupons and the Talons shall be serially numbered and, if listed or
      quoted, shall be security printed in accordance with the requirements (if
      any) from time to time of the relevant Stock Exchange and the relevant Conditions
      shall be incorporated by reference (where applicable to these presents)
      into such Definitive Notes if permitted by the relevant Stock Exchange (if
      any), or, if not so permitted, the Definitive Notes shall be endorsed with
      or have attached thereto the relevant Conditions, and, in either
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| |  | such case, the Definitive Notes
      shall have endorsed thereon or attached thereto a copy of the applicable
      Pricing Supplement (or the relevant provisions thereof). Title to the Definitive
      Notes, the Receipts, the Coupons and the Talons shall pass by delivery.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) | The Definitive Notes shall be
      signed manually or in facsimile by a person duly authorised by the relevant
      Issuer on behalf of the relevant Issuer and shall be authenticated by or
      on behalf of the Principal Paying Agent. The Definitive Notes so executed
      and authenticated, and the Receipts, the Coupons and Talons, upon execution
      and authentication of the relevant Definitive Notes, shall be binding and
      valid obligations of the relevant Issuer. The Receipts, the Coupons and
      the Talons shall not be signed. No Definitive Note and none of the Receipts,
      Coupons or Talons appertaining to such Definitive Note shall be binding
      or valid until such Definitive Note shall have been executed and authenticated
      as aforesaid.

|    |                      
|--- | ---------------------
|(C) | Facsimile signatures:

| | The relevant Issuer may use the
      facsimile signature of any person who at the date such signature is affixed
      to a Note is duly authorised by the relevant Issuer notwithstanding that
      at the time of issue of any of the Notes he may have ceased for any reason
      to be so authorised.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|    |                                            
|--- | -------------------------------------------
|(D) | Persons to be treated as
      Noteholders:

| | Except as ordered by a court
      of competent jurisdiction or as required by law, the relevant Issuer, the
      Trustee, the Principal Paying Agent and the other Paying Agents (notwithstanding
      any notice to the contrary and whether or not it is overdue and notwithstanding
      any notation of ownership or writing thereon or notice of any previous loss
      or theft thereof) may (i) for the purpose of making payment thereon or on
      account thereof deem and treat the bearer of any Global Note, Definitive
      Note, Receipt or Coupon as the absolute owner thereof and of all rights
      thereunder free from all encumbrances, and shall not be required to obtain
      proof of such ownership or as to the identity of the bearer and (ii) for
      all other purposes deem and treat:
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |     |                                                                       
| | --- | ----------------------------------------------------------------------
| | (a) | the bearer of any Definitive
      Note, Receipt, Coupon or Talon; and

| |     |                                                                                                                                                                                           
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | each person for the time being
      shown in the records of Euroclear or Clearstream, Luxembourg as having a
      particular nominal amount of Notes credited to his securities account,

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | as the absolute owner thereof
      and of all rights thereunder free from all encumbrances and shall not be
      required to obtain proof of such ownership (other than, in the case of any
      person for the time being so shown in such records, a certificate or letter
      of confirmation signed on behalf of Euroclear or Clearstream, Luxembourg
      or any other form of record made by any of them) or as to the identity of
      the bearer of any Global Note, Definitive Note, Receipt, Coupon or Talon.

|    |                                                             
|--- | ------------------------------------------------------------
|(E) | Certificates of Euroclear
      and Clearstream, Luxembourg:

| | The relevant Issuer and the Trustee may call for and, except in the case of manifest error, shall be at liberty to accept and place full reliance on as sufficient evidence thereof a certificate or letter of confirmation issued on behalf of Euroclear or Clearstream,
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|   | Luxembourg or any form of record
      made by either of them or such other form of evidence and/or information
      and/or certification as it shall, in its absolute discretion, think fit
      to the effect that at any particular time or throughout any particular period
      any particular person is, was, or will be, shown in its records as the holder
      of a particular nominal amount of Notes represented by a Global Note and,
      if it does so rely, such letter of confirmation, form of record, evidence,
      information or certification shall be conclusive and binding on all concerned.             | 
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|  
|4. | Fees, Duties And Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | THE relevant Issuer will pay
      any stamp, issue, registration, documentary and other fees, duties and taxes,
      including interest and penalties, payable on or in connection with (i) the
      execution and delivery of these presents, (ii) the constitution and original
      issue of the Notes, the Receipts and the Coupons and (iii) any action taken
      by or on behalf of the Trustee or (where permitted under these presents
      so to do) any Noteholder, Receiptholder or Couponholder to enforce, or to
      resolve any doubt concerning, or for any other purpose in relation to, these
      presents.

|
|

|5. | Covenant of Compliance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | THE relevant Issuer covenants
      with the Trustee that it will comply with and perform and observe all the
      provisions of these presents which are expressed to be binding on it. The
      Conditions shall be binding on the relevant Issuer, the Noteholders, the
      Receiptholders and the Couponholders. The Trustee shall be entitled to enforce
      the obligations of the relevant Issuer under the Notes, the Receipts and
      the Coupons as if the same were set out and contained in this Trust Deed,
      which shall be read and construed as one document with the Notes, the Receipts
      and the Coupons. The Trustee shall hold the benefit of this covenant upon
      trust for itself and the Noteholders, the Receiptholders and the Couponholders
      according to its and their respective interests.

|
|

|6.  | Cancellation Of Notes and
      Records                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(A) | THE relevant Issuer shall procure
      that all Notes issued by it (i) redeemed or (ii) purchased and surrendered
      for cancellation by or on behalf of the relevant Issuer or any Subsidiary
      of the relevant Issuer or (iii) which, being mutilated or defaced,
      have been surrendered and replaced pursuant to Condition 11 (together
      in each case with all unmatured Receipts and Coupons attached thereto or
      delivered therewith) and all relative Receipts and Coupons paid in accordance
      with the relevant Conditions or which, being mutilated or defaced, have
      been surrendered and replaced pursuant to Condition 11 shall forthwith
      be cancelled by or on behalf of the relevant Issuer and a certificate stating:

| | (a) | the aggregate principal amount
      of Notes which have been redeemed and the aggregate amounts in respect of
      Receipts and Coupons which have been paid;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                

| | (b) | the serial numbers of such Notes
      in definitive form and Receipts;
| | --- | -----------------------------------------------------------------------
| |     |                                                                        

| | (c) | the total numbers (where applicable,
      of each denomination) by maturity date of such Receipts and Coupons;
| | --- | ---------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                

| | (d) | the aggregate amount of interest
      paid (and the due dates of such payments) on Global Notes;
| | --- | -------------------------------------------------------------------------------------------------
| |     |                                                                                                  

| | (e) | the aggregate nominal amount of
      Notes (if any) which have been purchased by or on behalf of the relevant
      Issuer or any Subsidiary of the relevant Issuer and cancelled and the serial
      numbers of such Notes in definitive form and the total number (where
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| |  | applicable, of each denomination)
      by maturity date of the Receipts, Coupons and Talons attached thereto or
      surrendered therewith;
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------

| |     |                                                                                                                                                                                                                                                                                                                                           
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (f) | the aggregate nominal amounts
      of Notes and Receipts and the aggregate amounts in respect of Coupons which
      have been so surrendered and replaced and the serial numbers of such Notes
      in definitive form and the total number (where applicable, of each denomination)
      by maturity date of such Coupons and Talons;

| |     |                                                                                                                                                                                                                                                                                                                                                        
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (g) | the total number (where applicable,
      of each denomination) by maturity date of the unmatured Coupons missing
      from Definitive Notes bearing interest at a fixed rate which have been redeemed
      or surrendered and replaced and the serial numbers of the Definitive Notes
      to which such missing unmatured Coupons appertained; and

| |     |                                                                                                                                               
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------
| | (h) | the total number (where applicable,
      of each denomination) by maturity date of Talons which have been exchanged
      for further Coupons

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | shall be given to the Trustee
      by or on behalf of the relevant Issuer as soon as possible and in any event
      within four months after the date of such redemption, purchase, payment,
      exchange or replacement (as the case may be). The Trustee may accept such
      certificate as conclusive evidence of redemption, purchase or replacement
      pro tantoof the Notes or payment of interest thereon or exchange
      of the relative Talons respectively and of cancellation of the relative
      Notes and Coupons.

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(B) | The relevant Issuer shall procure
      (i) that the Principal Paying Agent shall keep a full and complete
      record of all Notes, Receipts, Coupons and Talons issued by it (other than
      serial numbers of Receipts and Coupons) and of their redemption, purchase
      by or on behalf of the relevant Issuer or any Subsidiary of the relevant
      Issuer and of all replacement notes, receipts, coupons or talons issued
      in substitution for lost, stolen, mutilated, defaced or destroyed Notes,
      Receipts, Coupons or Talons (ii) that the Principal Paying Agent shall
      in respect of the Coupons of each maturity retain (in the case of Coupons
      other than Talons) until the expiry of 10 years from the Relevant Date in
      respect of such Coupons and (in the case of Talons indefinitely) either
      all paid or exchanged Coupons of that maturity or a list of the serial numbers
      of Coupons of that maturity still remaining unpaid or unexchanged and (iii) that
      such records and Coupons (if any) shall be made available to the Trustee
      at all reasonable times.

|
|

|7.  | Non-Payment                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(A) | PROOF that as regards any specified
      Note, Receipt or Coupon the relevant Issuer has made default in paying any
      amount due in respect of such Note, Receipt or Coupon shall (unless the
      contrary be proved) be sufficient evidence that the same default has been
      made as regards all other Notes, Receipts or Coupons (as the case may be)
      in respect of which the relevant amount is due and payable.

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(B) | References in provisos (ii)
      and (iii) to Clause 2(B) and the provisions of any trust deed supplemental
      to this Trust Deed corresponding to provisos (ii) and (iii) to Clause 2(B)
      to “the rates aforesaid”
      shall, in the event of the Notes having become immediately due and repayable,
      with effect from the expiry of the interest period during which such Notes
      become due and repayable, be construed as references to rates of interest
      calculated mutatis mutandis in accordance with the Conditions except
      that no notices need be published in respect thereof.

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|8.  | Proceedings, Action and Indemnification                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(A) | The Trustee shall not be bound
      to take any proceedings mentioned in Condition 10 or any other action in
      relation to these presents unless respectively directed or requested to
      do so (i) by an Extraordinary Resolution or (ii) in writing by
      the holders of at least one-quarter in aggregate amount of the Notes then
      outstanding and in either case then only if it shall be indemnified to its
      satisfaction against all Liabilities to which it may thereby render itself
      liable or which it may incur by so doing.

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(B) | Only the Trustee may enforce
      the provisions of these presents. No Noteholder, Receiptholder or Couponholder
      shall be entitled to proceed directly against the relevant Issuer to enforce
      the performance of any of the provisions of these presents unless the Trustee
      having become bound as aforesaid to take proceedings fails to do so within
      a reasonable period and such failure is continuing.

|
|

|9. | Application of Moneys                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | ALL moneys received by the Trustee
      under these presents from the relevant Issuer (including any moneys which
      represent principal or interest in respect of Notes, Receipts or Coupons
      which have become void under Condition 9) shall, unless and to the
      extent attributable, in the opinion of the Trustee, to a particular Series
      of the Notes issued by the relevant Issuer, be apportioned pari passu
      and rateably between each Series of the Notes issued by the relevant Issuer,
      and all moneys received by the Trustee under these presents from the relevant
      Issuer to the extent attributable in the opinion of the Trustee to a particular
      Series of the Notes issued by the relevant Issuer or which are apportioned
      to such Series as aforesaid, be held by the Trustee upon trust to apply
      them (subject to Clause 11):

| |                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------
| | FIRST in payment or satisfaction
      of all amounts then due and unpaid under Clauses 14 and/or 15(J) to
      the Trustee and/or any Appointee;

| |                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| | SECONDLY in or towards payment
      pari passuand rateably of all principal and interest then due and
      unpaid in respect of the Notes of that Series;

| |                                                                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | THIRDLY in or towards payment
      pari passu and rateably of all principal and interest then due and
      unpaid in respect of the Notes of each other Series issued by the relevant
      Issuer; and

| |                                                                                                                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | FOURTHLY in payment of the balance
      (if any) to the relevant Issuer (without prejudice to, or liability in respect
      of, any question as to how such payment to the relevant Issuer shall be
      dealt with as between the relevant Issuer and any other person).

| |                                                                                                                                                                                                                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Without prejudice to this Clause
      9, if the Trustee holds any moneys which represent principal or interest
      in respect of Notes issued by the relevant Issuer which have become void
      or in respect of which claims have been prescribed under Condition 9, the
      Trustee will hold such moneys on the above trusts.

|
|

|10. | Notice of Payments                                                                                                                                                                                                                                                                                  
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | THE Trustee shall give notice
      to the relevant Noteholders in accordance with Condition 14 of the
      day fixed for any payment to them under Clause 9. Such payment may
      be made in accordance with Condition 6 and any payment so made shall
      be a good discharge to the Trustee.

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|11. | Investment by Trustee                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(A) | IF the amount of the moneys
      at any time available for the payment of principal and interest in respect
      of the Notes issued by the relevant Issuer under Clause 9 shall be
      less than 10 per cent. of the nominal amount of the Notes issued by
      the relevant Issuer then outstanding the Trustee may at its discretion invest
      such moneys in some or one of the investments authorised below. The Trustee
      at its discretion may vary such investments and may accumulate such investments
      and the resulting income until the accumulations, together with any other
      funds for the time being under the control of the Trustee and available
      for such purpose, amount to at least 10 per cent. of the nominal amount
      of the Notes issued by the relevant Issuer then outstanding and then such
      accumulations and funds shall be applied under Clause 9.

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(B) | Any moneys which under the trusts
      of these presents ought to or may be invested by the Trustee may be invested
      in the name or under the control of the Trustee in any investments or other
      assets in any part of the world, in each case authorised by English law
      for the investment by the trustees of trust moneys whether or not they produce
      income or by placing the same on deposit in the name or under the control
      of the Trustee at such bank or other financial institution and in such currency
      as the Trustee may think fit. If that bank or institution is the Trustee
      or a Subsidiary, holding or associated company of the Trustee, it need only
      account for an amount of interest equal to the amount of interest which
      would, at then current rates, be payable by it on such a deposit to an independent
      customer. The Trustee may at any time vary any such investments for or into
      other investments authorised as referred to above or convert any moneys
      so deposited into any other currency and shall not be responsible for any
      loss resulting from any such investments or deposits, whether due to depreciation
      in value, fluctuations in exchange rates or otherwise.

|
|

|12. | Partial Payments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | UPON any payment under Clause 9
      (other than payment in full against surrender of a Note, Receipt or Coupon)
      the Note, Receipt or Coupon in respect of which such payment is made shall
      be produced to the Trustee or the Paying Agent by or through whom such payment
      is made and the Trustee shall or shall cause such Paying Agent to enface
      thereon a memorandum of the amount and the date of payment but the Trustee
      may in any particular case dispense with such production and enfacement
      upon such indemnity being given as it shall think sufficient.

|
|

|13. | Covenants by the Issuers                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | THE relevant Issuer covenants
      with the Trustee that, so long as any of the Notes remains outstanding (or,
      in the case of paragraphs (vii), (viii), (xii), (xiii), (xv) and (xvii),
      so long as any of such Notes or the relative Receipts or Coupons remains
      liable to prescription or, in the case of sub-paragraph (xiv), until the
      expiry of a period of 30 days after the Relevant Date) it shall:

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) | give or procure to be given
      to the Trustee such opinions, certificates and information as it shall require
      and in such form as it shall require (including without limitation the procurement
      of all such certificates called for by the Trustee pursuant to Clause 15(C))
      for the purpose of the discharge or exercise of the duties, trusts, powers,
      authorities and discretions vested in it under these presents or by operation
      of law;

| |      |                                                                                                                                                                                                                                                                                     
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) | cause to be prepared and certified
      by its Auditors in respect of each financial accounting period accounts
      in such form as will comply with all relevant legal and accounting requirements
      and all requirements for the time being of the relevant Stock Exchange;

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| | (iii) | at all times keep proper books of account and allow the Trustee and any person appointed by the Trustee to whom the relevant Issuer shall have no reasonable objection free access to such books of account at all reasonable times during normal business hours;
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iv) | send to the Trustee (in addition
      to any copies to which it may be entitled as a holder of any securities
      of that Issuer) two copies in English of every balance sheet, profit and
      loss account, report, circular and notice of general meeting and every other
      document issued or sent to its shareholders together with any of the foregoing,
      and every document issued or sent to holders of securities other than its
      shareholders (including the Noteholders) as soon as practicable after the
      issue or publication thereof;

| |     |                                                                                                                                                                                                                                                                                                
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (v) | forthwith give notice in writing
      to the Trustee of the coming into existence of any security interest which
      would require any security to be given to the Notes pursuant to Condition
      3 or of the occurrence of any Event of Default or any Potential Event of
      Default;

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (vi) | give to the Trustee (a) within
      seven days after demand by the Trustee therefor and (b) (without the
      necessity for any such demand) promptly after the publication of its audited
      accounts in respect of each financial year commencing with the financial
      year ending 31st March, 1999 and in any event not later than 180 days
      after the end of each such financial year a certificate signed by two Directors
      of the relevant Issuer, to the effect that as at a date not more than seven
      days before delivering such certificate (the “relevant certification
      date”) there did not exist and had not existed since the relevant certification
      date of the previous certificate (or in the case of the first such certificate
      the date hereof) any Event of Default or any Potential Event of Default
      (or if such exists or existed specifying the same);

| |       |                                                                                                                                                                                                                                                                     
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (vii) | at all times execute and do
      all such further documents, acts and things as may be necessary at any time
      or times in the reasonable opinion of the Trustee for the purpose of discharging
      its functions under, or giving effect to, these presents;

| |        |                                                                                                                                       
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------
| | (viii) | at all times maintain a Principal
      Paying Agent, other Paying Agents and Reference Banks in accordance with
      the Conditions;

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ix) | use all reasonable endeavours
      to procure the Principal Paying Agent to notify the Trustee forthwith in
      the event that it does not, on or before the due date for any payment in
      respect of the Notes issued by it or any of them or any of the relative
      Receipts or Coupons, receive unconditionally pursuant to the Agency Agreement
      payment of the full amount in the requisite currency of the moneys payable
      on such due date on all such Notes, Receipts or Coupons as the case may
      be;

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                  
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (x) | in the event of the unconditional
      payment to the Principal Paying Agent or the Trustee of any sum due in respect
      of the Notes or any of them or any of the relative Receipts or Coupons being
      made after the due date for payment thereof forthwith give or procure to
      be given notice to the relevant Noteholders in accordance with Condition 14
      that such payment has been made;

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (xi) | use all reasonable endeavours
      to maintain the quotation or listing on the relevant Stock Exchange of those
      of the Notes which are quoted or listed on the relevant Stock Exchange or,
      if it is unable to do so having used such endeavours, use all reasonable
      endeavours to obtain and maintain a quotation or listing of such Notes issued
      by it on such other stock exchange or exchanges or securities market or

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| |       | markets as the relevant Issuer
      may (with the prior written approval of the Trustee) decide and shall also
      upon obtaining a quotation or listing of such Notes issued by it on such
      other stock exchange or exchanges or securities market or markets enter
      into a trust deed supplemental to this Trust Deed to effect such consequential
      amendments to these presents as the Trustee may require or as shall be requisite
      to comply with the requirements of any such stock exchange or securities
      market;                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | (xii) | give notice to the Noteholders
      in accordance with Condition 14 of any appointment, resignation or
      removal of any Principal Paying Agent, Calculation Agent, Reference Bank
      or other Paying Agent (other than the appointment of the initial Principal
      Paying Agent, Calculation Agent, Reference Banks and other Paying Agents)
      after having obtained the prior written approval of the Trustee thereto
      or any change of any Paying Agent’s or Reference Bank’s specified
      office and (except as provided by the Agency Agreement or the Conditions)
      at least 30 days prior to such event taking effect; PROVIDED ALWAYS
      THAT so long as any of the Notes remains liable to prescription in the case
      of the termination of the appointment of the Principal Paying Agent no such
      termination shall take effect until a new Principal Paying Agent has been
      appointed on terms previously approved in writing by the Trustee;

| |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (xiii) | obtain the prior written approval
      of the Trustee to, and promptly give to the Trustee two copies of, the form
      of every notice given to the holders of any Notes issued by it in accordance
      with Condition 14 (such approval, unless so expressed, not to constitute
      approval of any such notice for the purposes of Section 21 of the Financial
      Services and Markets Act 2000 of the United Kingdom of a communication
      within the meaning of such Section);

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (xv) | comply with and perform all
      its obligations under the Agency Agreement and use all reasonable endeavours
      to procure that the Principal Paying Agent and the other Paying Agents comply
      with and perform all their respective obligations thereunder and any notice
      given by the Trustee pursuant to Clause 2(C)(i) and not make any amendment
      or modification to such Agreement without the prior written approval of
      the Trustee;

| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (xvi) | in order to enable the Trustee
      to ascertain the nominal amount of the Notes of each Series issued by the
      relevant Issuer for the time being outstanding for any of the purposes referred
      to in the proviso to the definition of “outstanding”
      in Clause 1, deliver to the Trustee as soon as practicable upon being
      so requested in writing by the Trustee a certificate in writing signed by
      two Directors of the relevant Issuer,

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| |  | setting out the total number
      and aggregate nominal amount of the Notes of each Series issued which:
| |  | ---------------------------------------------------------------------------------------------------------
| |  |                                                                                                          
| |  | (a)                                                                                                      

| |  |     |                                                                                                                                                                                                                                   
| |  | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (b) | are at the date of such certificate
      held by, for the benefit of, or on behalf of, the relevant Issuer, any Subsidiary
      or holding company of the relevant Issuer or any other Subsidiary of such
      holding company;

| |        |                                                                                           
| | ------ | ------------------------------------------------------------------------------------------
| | (xvii) | procure its Subsidiaries to
      comply with all applicable provisions of Condition 7(h);

| |         |                                                                                                                                                                                                                                                                                                                                                                                        
| | ------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (xviii) | use all reasonable endeavours
      to procure that each of the Paying Agents makes available for inspection
      by Noteholders, Receiptholders and Couponholders at its specified office
      copies of these presents, the Agency Agreement and the then latest audited
      balance sheet and profit and loss account (consolidated if applicable) of
      the relevant Issuer;

| |       |                                                                                                                                                                                                                                                                                                  
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (xix) | if, in accordance with the provisions
      of the Conditions, interest in respect of the Notes becomes payable at the
      specified office of any Paying Agent in the United States of America promptly
      give notice thereof to the relative Noteholders in accordance with Condition 14;

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (xx) | give to the Trustee at the same
      time as sending to it the certificates referred to in paragraph (vi) above,
      a certificate by the Auditors listing those Subsidiaries of the relevant
      Issuer which as at the relevant certification date (as defined in paragraph
      (vi) above) of the relevant certificate given under paragraph (vi) above
      or, as the case may be, as at the last day of the most recently ended financial
      period of the relevant Issuer were Material Subsidiaries for the purposes
      of Condition 10 and so that any certificate given under this paragraph
      may be relied upon by the Trustee whether or not it is addressed to the
      Trustee, whether or not it contains any limit on liability (monetary or
      otherwise) of the Auditors and whether or not it is given in conjunction
      with an engagement letter;

| |  | 
| |  | 

| | (xxi) | give to the Trustee, as soon
      as reasonably practicable after the acquisition or disposal of any company
      which thereby becomes or ceases to be a Material Subsidiary or after any
      transfer is made to any Subsidiary of the relevant Issuer which thereby
      becomes a Material Subsidiary, a certificate by the Auditors to such effect
      and so that any certificate given under this paragraph may be relied upon
      by the Trustee whether or not it is addressed to the Trustee, whether or
      not it contains any limit on liability (monetary or otherwise) of the Auditors
      and whether or not it is given in conjunction with an engagement letter;
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 
| |  | 

| | (xxii) | give prior notice to the Trustee of any proposed redemption pursuant to Condition 7(b) or 7(c) and, if it shall have given notice to the Noteholders of its intention to redeem any Notes pursuant to Condition 7(c), duly proceed to make drawings (if appropriate) and to redeem Notes accordingly;
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |         |                                                                                                                                              
| | ------- | ---------------------------------------------------------------------------------------------------------------------------------------------
| | (xxiii) | promptly provide the Trustee
      with copies of all supplements and/or amendments and/or restatements of
      the Programme Agreement; and

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| | (xxiv) | if there is a material change in generally accepted United Kingdom accounting practices or principles as adopted and applied in the Accounts, it will, at the request of the Trustee (such request to be made only following consultation with the relevant Issuer, procure the Auditors (a) to restate the Accounts in accordance with generally accepted United Kingdom accounting practices and/or principles applied in respect of the Accounts for the year ended 31st March, 1998; and (b) to calculate the Adjusted Capital and Reserves in accordance with such restated Accounts.
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                       
|-------------------------------------------------------
|14.   Remuneration
      and Indemnification of Trustee

|(A) | THE relevant Issuer shall pay
      to the Trustee remuneration for its services as trustee of these presents
      such amount as shall be agreed from time to time by exchange of letters
      between the relevant Issuer and the Trustee. Such remuneration shall accrue
      from day to day and be payable (in priority to payments to Noteholders,
      Receiptholders and Couponholders) up to and including the date when, all
      the Notes having become due for redemption, the redemption moneys and interest
      thereon to the date of redemption have been paid to the Principal Paying
      Agent or the Trustee PROVIDED THAT if upon due presentation of any Note,
      Receipt or Coupon or any cheque payment of the moneys due in respect thereof
      is improperly withheld or refused, remuneration will commence again to accrue
      until payment to such Noteholder, Receiptholder or Couponholder is duly
      made.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(B) | In the event of the occurrence
      of an Event of Default or a Potential Event of Default or the Trustee considering
      it expedient or necessary or being requested by the relevant Issuer to undertake
      duties which the Trustee and the relevant Issuer agree to be of an exceptional
      nature or otherwise outside the scope of the normal duties of the Trustee
      under these presents the relevant Issuer shall pay to the Trustee such additional
      remuneration as shall be agreed between them.

|    |                                                                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(C) | The relevant Issuer shall in
      addition pay to the Trustee an amount equal to the amount of any value added
      tax or similar tax chargeable in respect of its remuneration under these
      presents.

|    |                                                                            
|--- | ---------------------------------------------------------------------------
|(D) | In the event of the Trustee
      and the relevant Issuer failing to agree:

| |     |                                                                                                
| | --- | -----------------------------------------------------------------------------------------------
| | (1) | (in a case to which sub-clause (A)
      above applies) upon the amount of the remuneration; or

| |     |                                                                                                                                                                                                                                                              
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (2) | (in a case to which sub-clause (B)
      above applies) upon whether such duties shall be of an exceptional nature
      or otherwise outside the scope of the normal duties of the Trustee under
      these presents, or upon such additional remuneration,

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | such matters shall be determined
      by a merchant or investment bank (acting as an expert and not as an arbitrator)
      selected by the Trustee and approved by the relevant Issuer or, failing
      such approval, nominated (on the application of the Trustee) by the President
      for the time being of The Law Society of England and Wales (the expenses
      involved in such nomination and the fees of such merchant or investment
      bank being shared equally between the relevant Issuer and the Trustee) and
      the determination of any such merchant or investment bank shall be final
      and binding upon the Trustee and the relevant Issuer.

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(E) | The relevant Issuer shall, on
      written request, also pay or discharge all Liabilities properly incurred
      by the Trustee in relation to the preparation and execution of, the exercise
      of its powers and the performance of its duties under, and in any other
      manner in relation to, these presents, including but not limited to reasonable
      travelling expenses and any stamp, issue, registration, documentary and
      other taxes or duties paid or payable by the Trustee in connection with
      any action taken by or on behalf of the Trustee for enforcing, or resolving
      any doubt concerning, or for any other purpose in relation to, these presents.

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|(F) | All amounts payable pursuant to sub-clause (E) above and/or Clause 15(J) shall be payable by the relevant Issuer on the date specified in a demand by the Trustee and in the case of payments actually made by the Trustee prior to such demand shall (if not paid within three days after such demand and the Trustee so requires) carry interest at the rate of two per cent. per annum above the Base Rate from time to time of National Westminster Bank Plc from the date specified in such demand, and in all other cases shall (if not paid on the date specified in such demand or, if later, within three days after such demand and, in either case, the Trustee so requires) carry interest at such rate from the date specified in such demand. All remuneration payable to the Trustee shall carry interest at such rate from the due date therefor.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|    |                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(G) | Unless otherwise specifically
      stated in any discharge of these presents the provisions of this Clause
      and Clause 15(J) shall continue in full force and effect notwithstanding
      such discharge.

|    |                                                                                                                                                                                                                                                                  
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(H) | The Trustee shall be entitled
      in its absolute discretion to determine in respect of which Series of Notes
      any Liabilities incurred under these presents have been incurred or to allocate
      any such Liabilities between the Notes of any Series.

|                                       
|---------------------------------------
|15.    Supplement
      to Trustee Acts

| | SECTION 1 of the Trustee Act
      2000 shall not apply to the duties of the Trustee under the trusts constituted
      by these presents. The Trustee shall have all the powers conferred upon
      trustees by the Trustee Act 1925 of England and Wales and by way of supplement
      thereto it is expressly declared as follows:
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (A) | The Trustee may in relation
      to these presents act on the advice or opinion of or any information obtained
      from any lawyer, valuer, accountant, surveyor, banker, broker, auctioneer
      or other expert whether obtained by the relevant Issuer, the Trustee or
      otherwise and shall not be responsible for any Liability occasioned by so
      acting. The Trustee may rely without liability to Noteholders, Receiptholders
      or Couponholders on any certificate or report prepared by the Auditors pursuant
      to the Conditions and/or the Trust Deed whether or not addressed to the
      Trustee.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (B) | Any such advice, opinion or
      information may be sent or obtained by letter, telex, telegram, facsimile
      transmission or cable and the Trustee shall not be liable for acting in
      good faith on any advice, opinion or information purporting to be conveyed
      by any such letter, telex, telegram, facsimile transmission or cable although
      the same shall contain some error or shall not be authentic.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (C) | The Trustee may call for and
      shall be at liberty to accept as sufficient evidence of any fact or matter
      or the expediency of any transaction or thing a certificate signed by two
      Directors of the relevant Issuer and the Trustee shall not be bound in any
      such case to call for further evidence or be responsible for any Liability
      that may be occasioned by it or any other person acting on such certificate.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (D) | The Trustee shall be at liberty
      to hold these presents and any other documents relating thereto or to deposit
      them in any part of the world with any banker or banking company or company
      whose business includes undertaking the safe custody of documents or lawyer
      or firm of lawyers considered by the Trustee to be of good repute and the
      Trustee shall not be responsible for or required to insure against any Liability
      incurred in connection with any such holding or deposit and may pay all
      sums required to be paid on account of or in respect of any such deposit.

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| | (E) | The Trustee shall not be responsible
      for the receipt or application of the proceeds of the issue of any of the
      Notes by the relevant Issuer, the exchange of any Global Note for another
      Global Note or Definitive Notes or the delivery of any Global Note or Definitive
      Notes to the person(s) entitled to it or them.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (F) | The Trustee shall not be bound
      to give notice to any person of the execution of any documents comprised
      or referred to in these presents or to take any steps to ascertain whether
      any Event of Default or any Potential Event of Default has occurred and,
      until it shall have actual knowledge or express notice pursuant to these
      presents to the contrary, the Trustee shall be entitled to assume that no
      Event of Default or Potential Event of Default has occurred and that Issuer
      is/are observing and performing all its/their obligations under these presents.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (G) | Save as expressly otherwise
      provided in these presents, the Trustee shall have absolute and uncontrolled
      discretion as to the exercise or non-exercise of its trusts, powers, authorities
      and discretions under these presents (the exercise or non-exercise of which
      as between the Trustee and the Noteholders, the Receiptholders and the Couponholders
      shall be conclusive and binding on the Noteholders, the Receiptholders and
      the Couponholders) and shall not be responsible for any Liability which
      may result from their exercise or non-exercise.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (H) | The Trustee shall not be liable
      to any person by reason of having acted upon any Extraordinary Resolution
      in writing or any Extraordinary Resolution or other resolution purporting
      to have been passed at any meeting of the holders of Notes of all or any
      Series in respect whereof minutes have been made and signed even though
      subsequent to its acting it may be found that there was some defect in the
      constitution of the meeting or the passing of the resolution, (in the case
      of an Extraordinary Resolution in writing) that not all such holders had
      signed the Extraordinary Resolution or that for any reason the resolution
      was not valid or binding upon such holders and the relative Receiptholders
      and Couponholders.

| |     |                                                                                                                                                                                                                                     
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (I) | The Trustee shall not be liable
      to any person by reason of having accepted as valid or not having rejected
      any Note, Receipt or Coupon purporting to be such and subsequently found
      to be forged or not authentic.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (J) | Without prejudice to the right
      of indemnity by law given to trustees, the relevant Issuer shall indemnify
      the Trustee and every Appointee and keep it or him indemnified against all
      Liabilities to which it or he may be or become subject or which may be incurred
      by it or him in the execution or purported execution of any of its or his
      trusts, powers, authorities and discretions under these presents or its
      or his functions under any such appointment or in respect of any other matter
      or thing done or omitted in any way relating to these presents or any such
      appointment.

| |     |                                                                                                                                                                                                                                                                                            
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (K) | Any consent or approval given
      by the Trustee for the purposes of these presents may be given on such terms
      and subject to such conditions (if any) as the Trustee thinks fit and notwithstanding
      anything to the contrary in these presents may be given retrospectively.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (L) | The Trustee shall not (unless
      and to the extent ordered so to do by a court of competent jurisdiction)
      be required to disclose to any Noteholder, Receiptholder or Couponholder
      any information (including, without limitation, information of a confidential,
      financial or price sensitive nature) made available to the Trustee by the
      relevant Issuer or any other person in connection with these presents and
      no Couponholder, Receiptholder or Couponholder shall be entitled to take
      any action to obtain from the Trustee any such information.

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| | (M) | Where it is necessary or desirable for any purpose in connection with these presents to convert any sum from one currency to another it shall (unless otherwise provided by these presents or required by law) be converted at such rate or rates, in accordance with such method and as at such date for the determination of such rate of exchange, as may be agreed by the Trustee in consultation with the relevant Issuer and any rate, method and date so agreed shall be binding on the relevant Issuer, the Noteholders, the Receiptholders and the Couponholders.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (N) | The Trustee as between itself
      and the Noteholders, the Receiptholders and the Couponholders may determine
      all questions and doubts arising in relation to any of the provisions of
      these presents. Every such determination, whether or not relating in whole
      or in part to the acts or proceedings of the Trustee, shall be conclusive
      and shall bind the Trustee and the Noteholders, the Receiptholders and the
      Couponholders.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (O) | In connection with the exercise
      by it of any of its trusts, powers, authorities or discretions under these
      presents (including, without limitation, any modification, waiver, authorisation
      or determination), the Trustee shall have regard to the general interests
      of the Noteholders as a class but shall not have regard to any interests
      arising from circumstances particular to individual Noteholders, Receiptholders
      or Couponholders (whatever their number) and, in particular but without
      limitation, shall not have regard to the consequences of such exercise for
      individual Noteholders, Receiptholders or Couponholders (whatever their
      number) resulting from their being for any purpose domiciled or resident
      in, or otherwise connected with, or subject to the jurisdiction of, any
      particular territory or any political sub-division thereof and the Trustee
      shall not be entitled to require, nor shall any Noteholder, Receiptholder
      or Couponholder be entitled to claim, from the relevant Issuer, the Trustee
      or any other person any indemnification or payment in respect of any tax
      consequence of any such exercise upon individual Noteholders, the Receiptholders
      or Couponholders except to the extent already provided for in Condition 8
      and/or any undertaking given in addition thereto or in substitution therefor
      under these presents.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (P) | Any trustee of these presents
      being a lawyer, accountant, broker or other person engaged in any profession
      or business shall be entitled to charge and be paid all usual and proper
      professional and other charges for business transacted and acts done by
      him or his firm in connection with the trusts of these presents and also
      his reasonable charges in addition to disbursements for all other work and
      business done and all time spent by him or his firm in connection with matters
      arising in connection with these presents.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (Q) | The Trustee may whenever it
      thinks fit delegate by power of attorney or otherwise to any person or persons
      or fluctuating body of persons (whether being a joint trustee of these presents
      or not) all or any of its trusts, powers, authorities and discretions under
      these presents. Such delegation may be made upon such terms (including power
      to sub-delegate) and subject to such conditions and regulations as the Trustee
      may in the interests of the Noteholders think fit. Provided that the Trustee
      shall have exercised reasonable care in the selection of any such delegate
      the Trustee shall not be under any obligation to supervise the proceedings
      or acts of any such delegate or sub-delegate or be in any way responsible
      for any Liability incurred by reason of any misconduct or default on the
      part of any such delegate or sub-delegate. The Trustee shall within a reasonable
      time after any such delegation or any renewal, extension or termination
      thereof give notice thereof to the relevant Issuer.

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| | (R) | The Trustee may in the conduct of the trusts of these presents instead of acting personally employ and pay an agent (whether being a lawyer or other professional person) to transact or conduct, or concur in transacting or conducting, any business and to do, or concur in doing, all acts required to be done in connection with these presents (including the receipt and payment of money). Provided that the Trustee shall have exercised reasonable care in the selection of any such agent the Trustee shall not be in any way responsible for any Liability incurred by reason of any misconduct or default on the part of any such agent or be bound to supervise the proceedings or acts of any such agent.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (S) | The Trustee shall not be responsible
      for the execution, delivery, legality, effectiveness, adequacy, genuineness,
      validity, enforceability or admissibility in evidence of these presents
      or any other document relating or expressed to be supplemental thereto and
      shall not be liable for any failure to obtain any licence, consent or other
      authority for the execution, delivery, legality, effectiveness, adequacy,
      genuineness, validity, performance, enforceability or admissibility in evidence
      of these presents or any other document relating or expressed to be supplemental
      thereto.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (T) | The Trustee may call for any
      certificate or other document to be issued by Euroclear or Clearstream,
      Luxembourg as to the nominal amount of Notes represented by a Global Note
      standing to the account of any person. Any such certificate or other document
      shall be conclusive and binding for all purposes. The Trustee shall not
      be liable to any person by reason of having accepted as valid or not having
      rejected any certificate or other document to such effect purporting to
      be issued by Euroclear or Clearstream, Luxembourg and subsequently found
      to be forged or not authentic.

| |     |                                                                                                                                                                                                                                                
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (U) | The Trustee shall not be responsible
      to any person for failing to request, require or receive any legal opinion
      relating to the Notes of any Series or for checking or commenting upon the
      content of any such legal opinion.

| |     |                                                                                                                                                  
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------
| | (V) | The Trustee shall not be concerned,
      and need not enquire, as to whether or not any Notes are issued in breach
      of the Programme Limit.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (W) | The Trustee may rely on any
      certificate or report (whether or not addressed to the Trustee) of the Auditors
      or any other person called for by or provided to the Trustee for the purposes
      of these presents notwithstanding that such certificate or report and/or
      any engagement letter or other document entered into by the Trustee in connection
      therewith contains a monetary or other limit on the liability of the Auditors
      or such other person in respect thereof.

|
|

|16. | Trustee’s Liability                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | NOTHING in these presents shall
      in any case in which the Trustee has failed to show the degree of care and
      diligence required of it as trustee having regard to the provisions of these
      presents conferring on it any trusts, powers, authorities or discretions
      exempt the Trustee from or indemnify it against any liability for breach
      of trust of which it may be guilty in relation to its duties under these
      presents.

|
|

|17. | Trustee Contracting with Issuers                                                                                                                                                                                                                               
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | NEITHER the Trustee nor any director
      or officer or holding company, Subsidiary or associated company of a corporation
      acting as a trustee under these presents shall by reason of its or his fiduciary
      position be in any way precluded from:

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| | (i) | entering into or being interested in any contract or financial or other transaction or arrangement with the relevant Issuer or any person or body corporate associated with the relevant Issuer (including without limitation any contract, transaction or arrangement of a banking or insurance nature or any contract, transaction or arrangement in relation to the making of loans or the provision of financial facilities or financial advice to, or the purchase, placing or underwriting of or the subscribing or procuring subscriptions for or otherwise acquiring, holding or dealing with, or acting as paying agent in respect of, the Notes or any other notes, bonds, stocks, shares, debenture stock, debentures or other securities of, the relevant Issuer or any person or body corporate associated as aforesaid); or
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                                                                                                                                                                                               
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) | accepting or holding the trusteeship
      of any other trust deed constituting or securing any other securities issued
      by or relating to the relevant Issuer or any such person or body corporate
      so associated or any other office of profit under the relevant Issuer or
      any such person or body corporate so associated,

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | and shall be entitled to exercise
      and enforce its rights, comply with its obligations and perform its duties
      under or in relation to any such contract, transaction or arrangement as
      is referred to in (i) above or, as the case may be, any such trusteeship
      or office of profit as is referred to in (ii) above without regard to the
      interests of the Noteholders and notwithstanding that the same may be contrary
      or prejudicial to the interests of the Noteholders and shall not be responsible
      for any Liability occasioned to the Noteholders thereby and shall be entitled
      to retain and shall not be in any way liable to account for any profit made
      or share of brokerage or commission or remuneration or other amount or benefit
      received thereby or in connection therewith.

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Where any holding company, Subsidiary
      or associated company of the Trustee or any director or officer of the Trustee
      acting other than in his capacity as such a director or officer has any
      information, the Trustee shall not thereby be deemed also to have knowledge
      of such information and, unless it shall have actual knowledge of such information,
      shall not be responsible for any loss suffered by Noteholders resulting
      from the Trustee’s failing to take such information into account in
      acting or refraining from acting under or in relation to these presents.

|
|

|18. | Waiver, Authorisation and Determination                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(A) | THE Trustee may without the
      consent or sanction of the Noteholders, the Receiptholders or the Couponholders
      and without prejudice to its rights in respect of any subsequent breach,
      Event of Default or Potential Event of Default from time to time and at
      any time but only if and in so far as in its opinion the interests of the
      Noteholders shall not be materially prejudiced thereby waive or authorise
      any breach or proposed breach by the relevant Issuer of any of the covenants
      or provisions contained in these presents or determine that any Event of
      Default or Potential Event of Default shall not be treated as such for the
      purposes of these presents PROVIDED ALWAYS THAT the Trustee shall not exercise
      any powers conferred on it by this Clause in contravention of any express
      direction given by Extraordinary Resolution or by a request under Condition 10
      but so that no such direction or request shall affect any waiver, authorisation
      or determination previously given or made. Any such waiver, authorisation
      or determination may be given or made on such terms and subject to such
      conditions (if any) as the Trustee may determine, shall be binding on the
      Noteholders, the Receiptholders and the Couponholders and, if, but only
      if, the Trustee shall so require, shall be notified by the relevant Issuer
      to the Noteholders in accordance with Condition 14 as soon as practicable
      thereafter.

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|    | Modification                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(B) | The Trustee may without the
      consent or sanction of the Noteholders, the Receiptholders or the Couponholders
      at any time and from time to time concur with the relevant Issuer in making
      any modification (i) to these presents (other than the proviso to paragraph 5
      of the Third Schedule or any matters referred to in that proviso) which
      in the opinion of the Trustee it may be proper to make PROVIDED THAT the
      Trustee is of the opinion that such modification will not be materially
      prejudicial to the interests of the Noteholders or (ii) to these presents
      if in the opinion of the Trustee such modification is of a formal, minor
      or technical nature or to correct a manifest error or to comply with mandatory
      provisions of law. Any such modification may be made on such terms and subject
      to such conditions (if any) as the Trustee may determine, shall be binding
      upon the Noteholders, the Receiptholders and the Couponholders and, unless
      the Trustee agrees otherwise, shall be notified by the relevant Issuer to
      the Noteholders in accordance with Condition 14 as soon as practicable
      thereafter.

|    |                                                                                                                                                                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | Breach                                                                                                                                                                                                                                                                                                                     
|(C) | Any breach of or failure to
      comply with any such terms and conditions as are referred to in sub-clauses
      (A) and (B) of this Clause shall constitute a default by the relevant Issuer
      in the performance or observance of a covenant or provision binding on it
      under or pursuant to these presents.

|    |                                                                                 
|--- | --------------------------------------------------------------------------------
|19. | Holders of Definitive Notes Assumed to
      be Receiptholders and Couponholders

|(A) | WHEREVER in these presents the
      Trustee is required or entitled to exercise a power, trust, authority or
      discretion under these presents, except as ordered by a court of competent
      jurisdiction or as required by applicable law, the Trustee shall, notwithstanding
      that it may have express notice to the contrary, assume that each Noteholder
      is the holder of all Receipts and Coupons appertaining to each Definitive
      Note of which he is the holder.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|    |                                                                                                                                                                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | No
      Notice to Receiptholders or Couponholders                                                                                                                                                                                                                                                                                                                  
|(B) | Neither the Trustee nor the
      relevant Issuer shall be required to give any notice to the Receiptholders
      or Couponholders for any purpose under these presents and the Receiptholders
      or Couponholders shall be deemed for all purposes to have notice of the
      contents of any notice given to the Noteholders in accordance with Condition 14.

|
|

|20. | Currency Indemnity                                                                                                                                                                          
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | EACH of the relevant Issuer shall
      severally indemnify the Trustee, every Appointee, the Noteholders, the Receiptholders
      and the Couponholders and keep them indemnified against:

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | any Liability incurred by any
      of them arising from the non-payment by the relevant Issuer of any amount
      due to the Trustee or the Noteholders of the Notes and the relative Receiptholders
      or Couponholders under these presents by reason of any variation in the
      rates of exchange between those used for the purposes of calculating the
      amount due under a judgment or order in respect thereof and those prevailing
      at the date of actual payment by the relevant Issuer; and

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | any deficiency arising or resulting
      from any variation in rates of exchange between (i) the date as of
      which the local currency equivalent of the amounts due or contingently due
      under these presents (other than this Clause) is calculated for the purposes
      of any bankruptcy, insolvency or liquidation of the relevant Issuer and
      (ii) the final date for ascertaining the amount of claims in such bankruptcy,

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| |  | insolvency or liquidation. The amount of such
      deficiency shall be deemed not to be reduced by any variation in rates of
      exchange occurring between the said final date and the date of any distribution
      of assets in connection with any such bankruptcy, insolvency or liquidation.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The above indemnities shall constitute
      obligations of the relevant Issuer separate and independent from its other
      obligations under the other provisions of these presents and shall apply
      irrespective of any indulgence granted by the Trustee or the Noteholders,
      the Receiptholders or the Couponholders from time to time and shall continue
      in full force and effect notwithstanding the judgment or filing of any proof
      or proofs in any bankruptcy, insolvency or liquidation of the relevant Issuer
      for a liquidated sum or sums in respect of amounts due under these presents
      (other than this Clause). Any such deficiency as aforesaid shall be deemed
      to constitute a loss suffered by the Noteholders, the Receiptholders and
      the Couponholders and no proof or evidence of any actual loss shall be required
      by the relevant Issuer or its liquidator or liquidators.

|
|

|21. | New Trustee                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(A) | THE power to appoint a new trustee
      of these presents shall be vested in the Issuers jointly but no person shall
      be appointed who shall not previously have been approved by an Extraordinary
      Resolution. One or more persons may hold office as trustee or trustees of
      these presents but such trustee or trustees shall be or include a Trust
      Corporation. Whenever there shall be more than two trustees of these presents
      the majority of such trustees shall be competent to execute and exercise
      all the duties, powers, trusts, authorities and discretions vested in the
      Trustee by these presents provided that a Trust Corporation shall be included
      in such majority. Any appointment of a new trustee of these presents shall
      as soon as practicable thereafter be notified by the Issuers to the Principal
      Paying Agent and, in accordance with Condition 14, the Noteholders.

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | Separate
      and Co-Trustees                                                                                                                                                                                                                                                                                                                                                                                                           
|(B) | Notwithstanding the provisions
      of sub-clause (A) above, the Trustee may, upon giving prior written
      notice to each Issuer (but without the consent of the Issuers or the Noteholders,
      Receiptholders or Couponholders), appoint any person established or resident
      in any jurisdiction (whether a Trust Corporation or not) to act either as
      a separate trustee or as a co-trustee jointly with the Trustee:

| |     |                                                                                           
| | --- | ------------------------------------------------------------------------------------------
| | (i) | if the Trustee considers such
      appointment to be in the interests of the Noteholders;

| |      |                                                                                                                                                                                       
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) | for the purposes of conforming
      to any legal requirements, restrictions or conditions in any jurisdiction
      in which any particular act or acts is or are to be performed; or

| |       |                                                                                                                                                                                                                                   
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iii) | for the purposes of obtaining
      a judgment in any jurisdiction or the enforcement in any jurisdiction of
      either a judgment already obtained or any of the provisions of these presents
      against any of the Issuers.

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Each of the Issuers irrevocably
      appoints the Trustee to be its attorney in its name and on its behalf to
      execute any such instrument of appointment. Such a person shall (subject
      always to the provisions of these presents) have such trusts, powers, authorities
      and discretions (not exceeding those conferred on the Trustee by these presents)
      and such duties and obligations as shall be conferred or imposed by the
      instrument of appointment. The Trustee shall have power in like manner to
      remove any such person. Such reasonable remuneration as the Trustee may
      pay to any such person, together with any attributable Liabilities incurred
      by it in performing its function as such separate trustee or co-trustee,
      shall for the purposes of these presents be treated as Liabilities incurred
      by the Trustee.

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|22. | Trustee’s Retirement and Removal                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | A trustee of these presents may
      retire at any time on giving not less than three months’ prior written
      notice to the Issuers without giving any reason and without being responsible
      for any Liabilities incurred by reason of such retirement. The Noteholders
      may by Extraordinary Resolution remove any trustee or trustees for the time
      being of these presents. The Issuers jointly undertake that in the event
      of the only trustee of these presents which is a Trust Corporation giving
      notice under this Clause or being removed by Extraordinary Resolution they
      will use all reasonable endeavours to procure that a new trustee of these
      presents being a Trust Corporation is appointed as soon as reasonably practicable
      thereafter. The retirement or removal of any such trustee shall not become
      effective until a successor trustee being a Trust Corporation is appointed.

|
|

|23. | Trustee's Powers to be Additional                                                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | THE powers conferred upon the
      Trustee by these presents shall be in addition to any powers which may from
      time to time be vested in the Trustee by the general law or as a holder
      of any of the Notes, Receipts or Coupons.

|    |             
|--- | ------------
|24. | Substitution

|(A) | (1) | The Trustee may without the consent
      of the Noteholders, Receiptholders or Couponholders at any time agree with
      the relevant Issuer to the substitution in place of the relevant Issuer
      (or of the previous substitute under this Clause) as the principal debtor
      under these presents:
|--- | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |     |                                                                                                                                                                                                                                                                                                               
|    |     | (i)                                                                                                                                                                                                                                                                                                           

| |  |      |                                                                                                                                                                                                                            
| |  | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (ii) | of any Subsidiary of UUE in
      place of UUE, provided that UUE unconditionally and irrevocably guarantees
      to the satisfaction of the Trustee all amounts payable by such Subsidiary
      under these presents; or

| |  |       |                                                                                                                                                                                                                                             
| |  | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (iii) | of any Subsidiary of UUW in
      place of UUW as principal debtor, provided that UUW unconditionally and
      irrevocably guarantees to the satisfaction of the Trustee all amounts payable
      by such Subsidiary under these presents,

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (such substituted issuer being,
      in each case, hereinafter called the “New Company”) and
      provided further that a trust deed is executed or some other form of undertaking
      is given by the New Company in form and manner satisfactory to the Trustee,
      agreeing to be bound by the provisions of these presents with any consequential
      amendments which the Trustee may deem appropriate as fully as if the New
      Company had been named in these presents as the principal debtor in place
      of the relevant Issuer (or of the previous substitute under this Clause).

| |     |                                                                 
| | --- | ----------------------------------------------------------------
| | (2) | The following further conditions
      shall apply to (1) above:

| |  |     |                                                                                                                                                             
| |  | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (i) | the relevant Issuer and the
      New Company shall comply with such other requirements as the Trustee may
      direct in the interests of the Noteholders;

| |  |      |                                                                                                                                                                                                                                                           
| |  | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (ii) | each rating agency which, at
      the request of the relevant Issuer, shall have assigned a credit rating
      to the Notes shall have confirmed in writing to the Trustee that the substitution
      by itself and the circumstances pertaining to the

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| |  |       | substitution will not result
      in a downgrading of the then current credit rating assigned to the Notes
      by such rating agency;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  | (iii) | where the New Company is incorporated,
      domiciled or resident in, or subject generally to the taxing jurisdiction
      of, a territory other than or in addition to the United Kingdom or any political
      sub-division or any authority therein or thereof having power to tax, undertakings
      or covenants shall be given by the New Company in terms corresponding to
      the provisions of Condition 8 with the substitution for (or, as the
      case may be, the addition to) the references to the United Kingdom of references
      to that other or additional territory in which the New Company is incorporated,
      domiciled or resident or to whose taxing jurisdiction it is subject and
      (where applicable) Condition 7(b) shall be modified accordingly;

| |  |      |                                                                                                                                                                                                                                                           
| |  | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (iv) | without prejudice to the rights
      of reliance of the Trustee under the immediately following paragraph (iv),
      the Trustee is satisfied that the relevant transaction is not materially
      prejudicial to the interests of the Noteholders; and

| |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (v) | if two Directors of the New
      Company (or other officers acceptable to the Trustee) shall certify that
      the New Company is solvent at the time at which the relevant transaction
      is proposed to be effected (which certificate the Trustee may rely upon
      absolutely) the Trustee shall not be under any duty to have regard to the
      financial condition, profits or prospects of the New Company or to compare
      the same with those of the relevant Issuer or the previous substitute under
      this Clause as applicable.

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(B) | Any such trust deed or undertaking
      shall, if so expressed, operate to release the relevant Issuer or the previous
      substitute as aforesaid from all of its obligationsas principal debtor
      under these presents. Not later than 14 days after the execution of such
      documents and compliance with such requirements, the New Company shall give
      notice thereof in a form previously approved by the Trustee to the Noteholders
      in the manner provided in Condition 14. Upon the execution of such
      documents and compliance with such requirements, the New Company shall be
      deemed to be named in these presents as the principal debtor in place of
      the relevant Issuer (or in place of the previous substitute under this Clause)
      under these presents and these presents shall be deemed to be modified in
      such manner as shall be necessary to give effect to the above provisions
      and, without limitation, references in these presents to the relevant Issuer
      shall, unless the context otherwise requires, be deemed to be or include
      references to the New Company.

|
|

|25. | Notices                                                                                                                                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | ANY notice or demand to the Issuers
      or the Trustee to be given, made or served for any purposes under these
      presents shall be given, made or served by sending the same by pre-paid
      post (first class if inland, first class airmail if overseas) or facsimile
      transmission or by delivering it by hand as follows:

| | 
| | 

| | to United: | Dawson House
        Great Sankey
        Warrington WA5 3LW
        (Attention: Treasury Dealers)
        Facsimile No. 01925 285 163
| | ---------- | --------------------------------------------------------------------------------------------------------------------------------------

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| | to UUE:         | Dawson House
      Great Sankey
      Warrington WA5 3LW                    
| | --------------- | ----------------------------------------------------------------------------
| |                 |                                                                             
| |                 | (Attention: Treasury Dealers)
      Facsimile No. 01925 237 163             
| |                 |                                                                             
| | to UUW:         | Dawson House
      Great Sankey
      Warrington WA5 3LW                    
| |                 |                                                                             
| |                 | (Attention: Treasury Dealers)
      Facsimile No. 01925 237 163             
| |                 |                                                                             
| | to the Trustee: | Fifth Floor
      100 Wood Street
      London
      EC2V 7EX               
| |                 |                                                                             
| |                 | (Attention: the Manager 
      Trust Management)Facsimile No. 0207 696 5261

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | or to such other address or facsimile
      number as shall have been notified (in accordance with this Clause) to the
      other parties hereto and any notice or demand sent by post as aforesaid
      shall be deemed to have been given, made or served three days in the case
      of inland post or seven days in the case of overseas post after despatch
      and any notice or demand sent by facsimile transmission as aforesaid shall
      be deemed to have been given, made or served 24 hours after the time
      of despatch provided that in the case of a notice or demand given by facsimile
      transmission such notice or demand shall forthwith be confirmed by post.
      The failure of the addressee to receive such confirmation shall not invalidate
      the relevant notice or demand given by facsimile transmission.

|
|

|26. | Governing Law                                                                                
|--- | ---------------------------------------------------------------------------------------------
|    | THESE presents are governed by,
      and shall be construed in accordance with, English law.

|
|

|27. | Counterparts                                                                                                                                                                                                                                                                                                                                              
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | THIS Trust Deed and any trust
      deed supplemental hereto may be executed and delivered in any number of
      counterparts, all of which, taken together, shall constitute one and the
      same deed and any party to this Trust Deed or any trust deed supplemental
      hereto may enter into the same by executing and delivering a counterpart.

|
|

|28. | Contracts (Rights of
      Third Parties) Act 1999                                                                                                                                                                                                                                                                                                                                         
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | A person who is not a party to
      this Trust Deed or any trust deed supplemental hereto has no right by virtue
      of the Contracts (Rights of Third Parties) Act 1999 to enforce any term
      of this Trust Deed or any trust deed supplemental hereto, but this does
      not affect any right or remedy of a third party which exists or is available
      apart from that Act.

IN WITNESS  whereof this Trust Deed has been executed as a deed by the Issuers and the Trustee and delivered on the date stated on page 1.

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PRINCIPAL PAYING AGENT

Citibank, N.A.5 Carmelite Street,London EC4Y 0PA

PAYING AGENT

Banque Paribas Luxembourg10A Boulevard RoyalL-2449 Luxembourg

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THE FIRST SCHEDULETERMS AND CONDITIONS OF THE NOTES

This Note is one of a Series (as defined below) of Notes issued by United Utilities PLC, United Utilities Electricity PLC (UUE) or United Utilities Water PLC (UUW) (each an Issuer and, together, the Issuers) constituted by an Amended and Restated Trust Deed (such  Trust Deed as modified and/or supplemented and/or restated from time to time, the Trust Deed) dated 4 October, 2002 made between the Issuers and The Law Debenture Trust Corporation p.l.c. (the Trustee, which expression shall include any successor as trustee).

References herein to the Notes shall be references to the Notes of this Series and shall mean:

|(i) | in relation to any Notes represented by a global Note (a Global Note), units of the lowest Specified Denomination in the Specified Currency;
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------

|     |                     
|---- | --------------------
|(ii) | any Global Note; and

|      |                                                           
|----- | ----------------------------------------------------------
|(iii) | any definitive Notes issued in exchange for a Global Note.

References herein to the relevant Issuer shall be to the Issuer of the Notes named as such in the applicable Pricing Supplement (as defined below).

The Notes, the Receipts (as defined below) and the Coupons (as defined below) have the benefit of an Amended and Restated Agency Agreement (such Agency Agreement, as amended and/or supplemented and/or restated from time to time, the Agency Agreement)  dated 4 October, 2002 and made between the Issuers, Citibank, N.A. as issuing and principal paying agent and agent bank (the Principal Paying Agent, which expression shall include any successor principal paying agent), the other paying agents named therein  (together with the Principal Paying Agent, the Paying Agents, which expression shall include any additional or successor paying agents) and the Trustee.

Interest bearing definitive Notes (unless otherwise indicated in the applicable Pricing Supplement) have interest coupons (Coupons) and, if indicated in the applicable Pricing Supplement, talons for further Coupons (Talons) attached on issue. Any reference herein to  Coupons or coupons shall, unless the context otherwise requires, be deemed to include a reference to Talons or talons. Definitive Notes repayable in instalments have receipts (Receipts) for the payment of the instalments of principal (other than the final instalment)  attached on issue. Global Notes do not have Receipts, Coupons or Talons attached on issue.

The Pricing Supplement for this Note (or the relevant provisions thereof) is attached to or endorsed on this Note and supplements these Terms and Conditions and may specify other terms and conditions which shall, to the extent so specified or to the extent inconsistent  with these Terms and Conditions, replace or modify these Terms and Conditions for the purposes of this Note. References to the applicable Pricing Supplement are to the Pricing Supplement (or the relevant provisions thereof) attached to or endorsed on this Note.

The Trustee acts for the benefit of the holders for the time being of the Notes (the Noteholders, which expression shall, in relation to any Notes represented by a Global Note, be construed as provided below), the holders of the Receipts (the Receiptholders) and the  holders of the Coupons (the Couponholders, which expression shall, unless the context otherwise requires, include the holders of the Talons), in accordance with the provisions of the Trust Deed.



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As used herein, Tranche means Notes which are identical in all respects (including as to listing) and Series means a Tranche of Notes together with any further Tranche or Tranches of Notes which are (i) expressed to be consolidated and form a single series and (ii)  identical in all respects (including as to listing) except for their respective Issue Dates, Interest Commencement Dates and/or Issue Prices.

Copies of the Trust Deed, the Agency
  Agreement and the applicable Pricing Supplement are available for inspection
  during normal business hours at the registered office for the time being of
  the Trustee (being at 4 October, 2002 at Fifth Floor, 100 Wood Street,
  London EC2V 7EX) and at the specified office of each of the Paying Agents save
  that, if this Note is an unlisted Note of any Series, the applicable Pricing
  Supplement will only be available for inspection by a Noteholder holding one
  or more unlisted Notes of that Series and such Noteholder must produce evidence
  satisfactory to the Trustee or, as the case may be, the relevant Paying Agent
  as to its holding of such Notes and identity. The Noteholders, the Receiptholders
  and the Couponholders are deemed to have notice of, and are entitled to the
  benefit of, all the provisions of the Trust Deed, the Agency Agreement and the
  applicable Pricing Supplement which are applicable to them. The statements in
  these Terms and Conditions include summaries of, and are subject to, the detailed
  provisions of the Trust Deed and the Agency Agreement.

Words and expressions defined in the Trust Deed or the Agency Agreement or used in the applicable Pricing Supplement shall have the same meanings where used in these Terms and Conditions unless the context otherwise requires or unless otherwise stated and  provided that, in the event of inconsistency between the Trust Deed and the Agency Agreement, the Trust Deed will prevail and, in the event of inconsistency between the Agency Agreement or the Trust Deed and the applicable Pricing Supplement, the applicable Pricing  Supplement will prevail.

|1. | Form, Denomination and Title
|-- | ----------------------------

The Notes are in bearer form and, in the case of definitive Notes, serially numbered, in the Specified Currency and the Specified Denomination(s). Notes of one Specified Denomination may not be exchanged for Notes of another Specified Denomination.

This Note is a Fixed Rate Note, a Floating Rate Note, a Zero Coupon Note, an Index Linked Interest Note, an Index Linked Redemption Note, an Instalment Note, a Dual Currency Note or a Partly Paid Note, or a combination of any of the foregoing, depending upon the  Interest/Payment Basis and/or Redemption/Payment Basis shown in the applicable Pricing Supplement.

Definitive Notes are issued with Coupons attached, unless they are Zero Coupon Notes in which case references to Coupons and Couponholders in these Terms and Conditions are not applicable.

Subject as set out below, title to the Notes, Receipts and Coupons will pass by delivery. The relevant Issuer, any Paying Agent and the Trustee will (except as otherwise required by law) deem and treat the bearer of any Note, Receipt or Coupon as the absolute owner  thereof (whether or not overdue and notwithstanding any notice of ownership or writing thereon or notice of any previous loss or theft thereof) for all purposes but, in the case of any Global Note, without prejudice to the provisions set out in the next succeeding paragraph.

For so long as any of the Notes is
  represented by a Global Note held on behalf of Euroclear Bank S.A./N.V. as operator
  of the Euroclear System (Euroclear) and/or Clearstream Banking,
  société anonyme (Clearstream, Luxembourg), each person
  (other than Euroclear or Clearstream, Luxembourg) who is for the time being
  shown in the records of Euroclear or of Clearstream, Luxembourg as the holder
  of a particular nominal amount of such Notes (in which regard any certificate
  or other document issued by Euroclear or Clearstream, Luxembourg as to the nominal
  amount of such Notes standing to the account of any person shall be conclusive
  and binding for all purposes save in the case of manifest error) shall be treated
  by the relevant Issuer, the Paying Agents and the Trustee as the holder of such
  nominal amount of such Notes for all purposes other than with respect to the
  payment of principal or interest on such nominal amount of such Notes, for which
  purpose the bearer of the relevant Global Note shall be treated by the relevant
  Issuer, any Paying Agent and the Trustee as the holder of such nominal amount
  of such Notes in accordance with and subject to the terms of the relevant Global
  Note and the expressions Noteholder and holder of Notes
  and related expressions shall be construed accordingly.

Notes which are represented by
  a Global Note will be transferable only in accordance with the rules and procedures
  for the time being of Euroclear and Clearstream, Luxembourg, as the case may
  be. References to Euroclear and/or Clearstream, Luxembourg shall, whenever the
  context so permits, be deemed to include a reference to any successor operator
  and/or successor clearing system and/or any additional or alternative clearing
  system specified in the applicable Pricing Supplement or otherwise approved
  by the relevant Issuer, the Principal Paying Agent and the Trustee.



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|2. | Status of the Notes
|-- | -------------------

The Notes and any relative Receipts and Coupons are direct, unconditional, unsubordinated and (subject to the provisions of Condition 3) unsecured obligations of the relevant Issuer and rank pari passu among themselves and (subject as aforesaid and save for certain  obligations required to be preferred by law) equally with all other unsecured obligations (other than subordinated obligations, if any) of the Issuer, from time to time outstanding.

|3. | Negative Pledge
|-- | ---------------

So long as any of the Notes remains outstanding (as defined in the Trust Deed) the relevant Issuer will not create or permit to subsist any mortgage, charge, pledge, lien or other form of security interest upon the whole or any part of its undertaking, revenues or assets,  present or future, to secure payment of any present or future Relevant Indebtedness (as defined below) of the relevant Issuer or any Subsidiary thereof (as defined in the Trust Deed) or to secure any guarantee or indemnity in respect thereof, without at the same time  according to the Notes to the satisfaction of the Trustee, the same security as is created or subsisting to secure any such Relevant Indebtedness, guarantee or indemnity, or such other security as the Trustee shall in its absolute discretion deem not materially less beneficial  to the interests of the Noteholders or as shall be approved by an Extraordinary Resolution (as defined in the Trust Deed) of the Noteholders.

Relevant Indebtedness means any present or future indebtedness (whether being principal, premium or interest) for borrowed money (other than indebtedness for borrowed money with an initial maturity falling 20 years or more after the issue of the Notes and having a  maximum principal amount outstanding at any time not exceeding the greater of £250,000,000 and 20 per cent. of Adjusted Capital and Reserves (as defined in Condition 10) or indebtedness for borrowed money which has a stated maturity not exceeding one year) which  is in the form of, or represented or evidenced by, bonds, notes, debentures, debenture stock, loan stock or other securities, whether issued for cash or in whole or in part for a consideration other than cash and which, with the agreement of the relevant Issuer, are quoted,  listed, dealt in or traded on a stock exchange or over the counter or other recognised securities market (whether or not distributed by way of private
 placement).

|4. | Redenomination
|-- | --------------

| | 
| | 

| | (a) | Redenomination                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |     | Where redenomination is
        specified in the applicable Pricing Supplement as being applicable, the
        relevant Issuer may, without the consent of the Trustee, the Noteholders,
        the Receiptholders and the Couponholders, on giving prior notice to the
        Trustee, the Principal Paying Agent, Euroclear and Clearstream, Luxembourg
        and at least 30 days prior notice to the Noteholders in accordance
        with Condition 14, elect that, with effect from the Redenomination Date
        specified in the notice, the Notes shall be redenominated in euro.

| |                                          
| | -----------------------------------------
| | The election will have effect as follows:

| |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (i) | the Notes and the Receipts shall be deemed to be redenominated in euro in the denomination of euro 0.01 with a nominal amount for each Note and Receipt equal to the nominal amount of that Note or Receipt in the Specified Currency, converted into euro at the Established Rate, provided that, if the relevant Issuer determines, with the consent of the Trustee and the Principal Paying Agent, that the then market practice in respect of the redenomination in euro of internationally offered securities is different from the provisions specified above, such provisions shall be deemed to be amended so as to comply with such market practice and the relevant Issuer shall promptly notify the Noteholders in accordance with Condition 14, the stock exchange or other relevant authority (if any) on which the Notes are listed and the Paying Agents of such deemed amendments;

| |  |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |  | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (ii) | save to the extent
        that an Exchange Notice has been given in accordance with paragraph (iv)
        below, the amount of interest due in respect of the Notes will be calculated
        by reference to the aggregate nominal amount of Notes presented (or, as
        the case may be, in respect of which Coupons are presented) for payment
        by the relevant holder and the amount of such payment shall be rounded
        down to the nearest euro 0.01;
| |  |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               



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| |  | (iii) | if definitive Notes are required to be issued after the Redenomination Date, they shall be issued at the expense of the relevant Issuer in the denominations of euro 1,000, euro 10,000, euro 100,000 and (but only to the extent of any remaining amounts less than euro 1,000 or such smaller denominations as the Trustee and the Principal Paying Agent may approve) euro 0.01 and such other denominations as the Trustee and the Principal Paying Agent shall determine and as shall be notified to the Noteholders in accordance with Condition 14;
| |  | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |  | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (iv) | if definitive Notes have been issued prior to the Redenomination Date, all unmatured Coupons denominated in the Specified Currency (whether or not attached to the Notes) will become void with effect from the date on which the relevant Issuer gives notice (the Exchange Notice) that replacement euro-denominated Notes, Receipts and Coupons are available for exchange (provided that such Notes, Receipts and/or Coupons are so available) and no payments will be made in respect of them. The payment obligations contained in any Notes and Receipts so issued will also become void on that date although those Notes and Receipts will continue to constitute valid exchange obligations of the relevant Issuer. New euro-denominated Notes, Receipts and Coupons will be issued in exchange for Notes, Receipts and Coupons denominated in the Specified Currency in such manner as the Trustee and the Principal Paying Agent may specify and as shall be notified to the Note
holders in the Exchange Notice. No Exchange Notice may be given less than 15 days prior to any date for payment of principal or interest on the Notes;

| |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |  | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (v) | after the Redenomination Date, all payments in respect of the Notes, the Receipts and the Coupons, other than payments of interest in respect of periods commencing before the Redenomination Date, will be made solely in euro as though references in the Notes to the Specified Currency were to euro. Payments will be made in euro by credit or transfer to a euro account (or any other account to which euro may be credited or transferred) specified by the payee or, at the option of the payee, by a euro cheque;

| |  |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (vi) | if the Notes are Fixed Rate Notes and interest for any period ending on or after the Redenomination Date is required to be calculated for a period ending other than on an Interest Payment Date it will be calculated by applying the Rate of Interest to each Specified Denomination, multiplying such sum by the applicable Day Count Fraction (as defined in Condition 5(a)), and rounding the resultant figure to the nearest sub-unit (as defined in Condition 5(a)) of the relevant Specified Currency, half of any such sub-unit being rounded upwards or otherwise in accordance with the applicable market convention; and

| |  |       |                                                                                                                                              
| |  | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------
| |  | (vii) | if the Notes are Floating Rate Notes the applicable Pricing Supplement specifies any relevant changes to the provisions relating to interest.

| | 
| | 

| | (b) | Definitions                                                                                  
| | --- | ---------------------------------------------------------------------------------------------
| |     |                                                                                              
| |     | In these Terms and Conditions,
        the following expressions have the following meanings:

| |  |                                                                                                                                                                                                                                                                                                      
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Established Rate means the rate for the conversion of the Specified Currency (including compliance with rules relating to roundings in accordance with applicable European Community regulations) into euro established by the Council of the European Union pursuant to Article 123 of the Treaty;

| |  |                                                                                                                                     
| |  | ------------------------------------------------------------------------------------------------------------------------------------
| |  | euro means the currency introduced at the start of the third stage of European economic and monetary union pursuant to the Treaty;

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Redenomination
        Date means (in the case of interest bearing Notes) any date for
        payment of interest under the Notes or (in the case of Zero Coupon Notes)
        any date, in each case specified by the relevant Issuer in the notice
        given to the Noteholders pursuant to paragraph (a) above and which falls
        on or after the date on which the country of the Specified Currency first
        participates in the third stage of European economic and monetary union
        or otherwise participates in European economic and monetary union in a
        manner with similar effect to such third stage; and



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| |  | Treaty means the Treaty establishing the European Community, as amended.
| |  | --------------------------------------------------------------------------

|   |         
|-- | --------
|5. | Interest

| | 
| | 

| | (a) | Interest on Fixed Rate Notes                                                                                                                                                                                                                                                                                                                                                                                                
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                             
| |     | Each Fixed Rate Note bears
        interest on its outstanding nominal amount (or, if it is a Partly Paid
        Note, the amount paid up) from (and including) the Interest Commencement
        Date at the rate(s) per annum equal to the Rate(s) of Interest payable
        in arrear on the Interest Payment Date(s) in each year and on the Maturity
        Date if that does not fall on an Interest Payment Date.

| |  |                                                                                                                                                                                                                                                                                                                                             
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Except as provided in the applicable Pricing Supplement, the amount of interest payable on each Interest Payment Date ending on such date will amount to the Fixed Coupon Amount. Payments of interest on any Interest Payment Date will, if so specified in the applicable Pricing Supplement, amount to the Broken Amount(s) so specified.

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | If interest is required to be calculated for a period ending other than on an Interest Payment Date, such interest shall be calculated by applying the Rate of Interest to each Specified Denomination, multiplying such sum by the applicable Day Count Fraction, and rounding the resultant figure to the nearest sub-unit of the relevant Specified Currency, half of any such sub-unit being rounded upwards or otherwise in accordance with applicable market convention.

| |  |                               
| |  | ------------------------------
| |  | In these Terms and Conditions:

| |  |                                                                                                                           
| |  | --------------------------------------------------------------------------------------------------------------------------
| |  | Day Count Fraction means, in respect of the calculation of an amount of interest in accordance with this Condition 5(a):

| |  |     |                                                                             
| |  | --- | ----------------------------------------------------------------------------
| |  | (i) | if Actual/Actual (ISMA) is specified in the applicable Pricing Supplement:

| |  |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |  |  | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (a) | in the case of Notes where the number of days in the relevant period from (and including) the most recent Interest Payment Date (or, if none, the Interest Commencement Date) to (but excluding) the relevant payment date (the Accrual Period) is equal to or shorter than the Determination Period during which the Accrual Period ends, the number of days in such Accrual Period divided by the product of (1) the number of days in such Determination Period and (2) the number of Determination Dates (as specified in the applicable Pricing Supplement) that would occur in one calendar year; or

| |  |  |     |                                                                                                                                        
| |  |  | --- | ---------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (b) | in the case of Notes where the Accrual Period is longer than the Determination Period during which the Accrual Period ends, the sum of:

| |  |  |  |     |                                                                                                                                                                                                                                                                                                                                        
| |  |  |  | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  |  | (1) | the number of days in such Accrual Period falling in the Determination Period in which the Accrual Period begins divided by the product of (x) the number of days in such Determination Period and (y) the number of Determination Dates (as specified in the applicable Pricing Supplement) that would occur in one calendar year; and

| |  |  |  |     |                                                                                                                                                                                                                                                                                                          
| |  |  |  | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  |  | (2) | the number of days in such Accrual Period falling in the next Determination Period divided by the product of (x) the number of days in such Determination Period and (y) the number of Determination Dates (as specified in the applicable Pricing Supplement) that would occur in one calendar year; and

| |  |      |                                                                                                                                                                                                                                                                                                                                                                      
| |  | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (ii) | if 30/360 is specified in the applicable Pricing Supplement, the number of days in the period from (and including) the most recent Interest Payment Date (or, if none, the Interest Commencement Date) to (but excluding) the relevant payment date (such number of days being calculated on the basis of a year of 360 days with 12 30-day months) divided by 360;

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Determination
        Period means each period from (and including) a Determination Date
        to (but excluding) the next Determination Date (including, where either
        the Interest Commencement Date or the final Interest Payment Date is not
        a Determination Date, the period commencing on the first Determination
        Date prior to, and ending on the first Determination Date falling after,
        such date); and



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| |  | sub-unit means, with respect to any currency other than euro, the lowest amount of such currency that is available as legal tender in the country of such currency and, with respect to euro, means one cent.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 
| | 

| | (b) | Interest on Floating Rate Notes
      and Index Linked Interest Notes
| | --- | ---------------------------------------------------------------------
| |     |                                                                      
| |     | (i)                                                                  

| |  |  |                                                                                                                                                                                                                                                                         
| |  |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | Each Floating Rate Note and Index Linked Interest Note bears interest on its outstanding nominal amount (or, if it is a Partly Paid Note, the amount paid up) from (and including) the Interest Commencement Date and such interest will be payable in arrear on either:

| |  |  |     |                                                                                                                                         
| |  |  | --- | ----------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (A) | the Specified Interest Payment Date(s) (each an Interest Payment Date) in each year specified in the applicable Pricing Supplement; or

| |  |  |     |                                                                                                                                                                                                                                                                                                                                                                                                        
| |  |  | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (B) | if no Specified Interest Payment Date(s) is/are specified in the applicable Pricing Supplement, each date (each an Interest Payment Date) which falls the number of months or other period specified as the Specified Period in the applicable Pricing Supplement after the preceding Interest Payment Date or, in the case of the first Interest Payment Date, after the Interest Commencement Date.

| |  |  |                                                                                                                                                                                                                                                                                          
| |  |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | Such interest will be payable in respect of each Interest Period (which expression shall, in these Terms and Conditions, mean the period from (and including) an Interest Payment Date (or the Interest Commencement Date) to (but excluding) the next (or first) Interest Payment Date).

| |  |  |                                                                                                                                                                                                                                                                                                                                                           
| |  |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | If a Business Day Convention is specified in the applicable Pricing Supplement and (x) if there is no numerically corresponding day in the calendar month in which an Interest Payment Date should occur or (y) if any Interest Payment Date would otherwise fall on a day which is not a Business Day, then, if the Business Day Convention specified is:

| |  |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |  |  | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (1) | in any case where Specified Periods are specified in accordance with Condition 5(b)(i)(B) above, the Floating Rate Convention, such Interest Payment Date (i) in the case of (x) above, shall be the last day that is a Business Day in the relevant month and the provisions of (B) below shall apply mutatis mutandis or (ii) in the case of (y) above, shall be postponed to the next day which is a Business Day unless it would thereby fall into the next calendar month, in which event (A) such Interest Payment Date shall be brought forward to the immediately preceding Business Day and (B) each subsequent Interest Payment Date shall be the last Business Day in the month which falls the Specified Period after the preceding applicable Interest Payment Date occurred; or

| |  |  |     |                                                                                                                                 
| |  |  | --- | --------------------------------------------------------------------------------------------------------------------------------
| |  |  | (2) | the Following Business Day Convention, such Interest Payment Date shall be postponed to the next day which is a Business Day; or

| |  |  |     |                                                                                                                                                                                                                                                                                                                  
| |  |  | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (3) | the Modified Following Business Day Convention, such Interest Payment Date shall be postponed to the next day which is a Business Day unless it would thereby fall into the next calendar month, in which event such Interest Payment Date shall be brought forward to the immediately preceding Business Day; or

| |  |  |     |                                                                                                                                      
| |  |  | --- | -------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (4) | the Preceding Business Day Convention, such Interest Payment Date shall be brought forward to the immediately preceding Business Day.

| |  |  |                                                             
| |  |  | ------------------------------------------------------------
| |  |  | In this Condition, Business Day means a day which is both:

| |  |  |     |                                                                                                                                                                                                                                                                                      
| |  |  | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (A) | a day on which commercial banks and foreign exchange markets settle payments and are open for general business (including dealing in foreign exchange and foreign currency deposits) in London and any Additional Business Centre specified in the applicable Pricing Supplement; and



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| |  |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  |  | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (B) | either (1) in relation to any sum payable in a Specified Currency other than euro, a day on which commercial banks and foreign exchange markets settle payments and are open for general business (including dealing in foreign exchange and foreign currency deposits) in the principal financial centre of the country of the relevant Specified Currency (if other than London and any Additional Business Centre and which, if the Specified Currency is New Zealand dollars, shall be Auckland) or (2) in relation to any sum payable in euro, a day on which the Trans-European Automated Real-Time Gross Settlement Express Transfer (TARGET) System (the TARGET System) is open.

| | 
| | 

| | (ii) | Rate of Interest
| | ---- | ----------------
| |      |                 
| |      |                 

| | 
| | 

| |  |  | (A) | ISDA Determination for Floating Rate Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  |  | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  |  |     | Where ISDA Determination
        is specified in the applicable Pricing Supplement as the manner in which
        the Rate of Interest is to be determined, the Rate of Interest for each
        Interest Period will be the relevant ISDA Rate plus or minus (as indicated
        in the applicable Pricing Supplement) the Margin (if any). For the purposes
        of this sub-paragraph (A), ISDA Rate for an Interest Period
        means a rate equal to the Floating Rate that would be determined by the
        Principal Paying Agent under an interest rate swap transaction if the
        Principal Paying Agent were acting as Calculation Agent for that swap
        transaction under the terms of an agreement incorporating the 2000 ISDA
        Definitions and the Annex to the 2000 ISDA Definitions, each as amended
        and updated as at the Issue Date of the first Tranche of the Notes and
        as published by the International Swaps and Derivatives Association, Inc.
        (the ISDA Definitions) and under which:

| |  |  |  |     |                                                                               
| |  |  |  | --- | ------------------------------------------------------------------------------
| |  |  |  | (1) | the Floating Rate Option is as specified in the applicable Pricing Supplement;

| |  |  |  |     |                                                                                        
| |  |  |  | --- | ---------------------------------------------------------------------------------------
| |  |  |  | (2) | the Designated Maturity is a period specified in the applicable Pricing Supplement; and

| |  |  |  |     |                                                                                                                                                                                                                                                                                                                                  
| |  |  |  | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  |  | (3) | the relevant Reset Date is either (i) if the applicable Floating Rate Option is based on the London inter-bank offered rate (LIBOR) or on the Euro-zone inter-bank offered rate (EURIBOR) for a currency, the first day of that Interest Period or (ii) in any other case, as specified in the applicable Pricing Supplement.

| |  |  |  |                                                                                                                                                                                                                                                                                                                                                                                           
| |  |  |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  |  | For the purposes of this sub-paragraph (A), (i) Floating Rate, Calculation Agent, Floating Rate Option, Designated Maturity and Reset Date have the meanings given to those terms in the ISDA Definitions; and (ii) Euro- zone means the region comprised of Member States of the European Union that adopt or have adopted the single currency in accordance with the Treaty.

| | 
| | 

| |  |  | (B) | Screen Rate Determination for Floating Rate
      Notes                                                                                                                                                                                                             
| |  |  | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  |     |                                                                                                                                                                                                                                                                     
| |  |  |     | Where Screen Rate Determination
        is specified in the applicable Pricing Supplement as the manner in which
        the Rate of Interest is to be determined, the Rate of Interest for each
        Interest Period will, subject as provided below, be either:

| |  |  |  |     |                          
| |  |  |  | --- | -------------------------
| |  |  |  | (1) | the offered quotation; or

| |  |  |  |     |                                                                                                                                      
| |  |  |  | --- | -------------------------------------------------------------------------------------------------------------------------------------
| |  |  |  | (2) | the arithmetic mean (rounded if necessary to the fifth decimal place, with 0.000005 being rounded upwards) of the offered quotations,



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| |  |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |  |  |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  |  | (expressed as a percentage rate per annum) for the Reference Rate which appears or appear, as the case may be, on the Relevant Screen Page as at 11.00 a.m. (London time, in the case of LIBOR, or Brussels time, in the case of EURIBOR) on the Interest Determination Date in question plus or minus (as indicated in the applicable Pricing Supplement) the Margin (if any), all as determined by the Principal Paying Agent. If five or more of such offered quotations are available on the Relevant Screen Page, the highest (or, if there is more than one such highest quotation, one only of such quotations) and the lowest (or, if there is more than one such lowest quotation, one only of such quotations) shall be disregarded by the Principal Paying Agent for the purpose of determining the arithmetic mean (rounded as provided above) of such offered quotations.

| |  |  |  |                                                                                                                                                                                                                                                                                                                                                              
| |  |  |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  |  | The Agency Agreement contains provisions for determining the Rate of Interest in the event that the Relevant Screen Page is not available or if, in the case of (1) above, no such offered quotation appears or, in the case of (2) above, fewer than three such offered quotations appear, in each case as at the time specified in the preceding paragraph.

| |  |  |  |                                                                                                                                                                                                                                                                                     
| |  |  |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  |  | If the Reference Rate from time to time in respect of Floating Rate Notes is specified in the applicable Pricing Supplement as being other than LIBOR or EURIBOR, the Rate of Interest in respect of such Notes will be determined as provided in the applicable Pricing Supplement.

| |       |                                                               
| | ----- | --------------------------------------------------------------
| | (iii) | Minimum Rate of Interest and/or
      Maximum Rate of Interest
| |       |                                                               
| |       |                                                               

| |  |  |                                                                                                                                                                                                                                                                                                                                                                                             
| |  |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | If the applicable Pricing Supplement specifies a Maximum Rate of Interest for any Interest Period, then, in the event that the Rate of Interest in respect of such Interest Period determined in accordance with the provisions of paragraph (ii) above is greater than such Maximum Rate of Interest, the Rate of Interest for such Interest Period shall be such Maximum Rate of Interest.

| | 
| | 

| | (iv) | Determination of Rate of Interest
      and calculation of Interest Amounts
| | ---- | ---------------------------------------------------------------------------
| |      |                                                                            
| |      |                                                                            

| |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | The Principal Paying Agent will calculate the amount of interest (the Interest Amount) payable on the Floating Rate Notes or Index Linked Interest Notes in respect of each Specified Denomination for the relevant Interest Period. Each Interest Amount shall be calculated by applying the Rate of Interest to each Specified Denomination, multiplying such sum by the applicable Day Count Fraction, and rounding the resultant figure to the nearest sub-unit of the relevant Specified Currency, half of any such sub-unit being rounded upwards or otherwise in accordance with applicable market convention.

| |  |  |                                                                                                            
| |  |  | -----------------------------------------------------------------------------------------------------------
| |  |  | Day Count Fraction means, in respect of the calculation of an amount of interest for any Interest Period:

| |  |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  |  | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (i) | if Actual/365
        or Actual/Actual is specified in the applicable Pricing Supplement,
        the actual number of days in the Interest Period divided by 365 (or, if
        any portion of that Interest Period falls in a leap year, the sum of (A)
        the actual number of days in that portion of the Interest Period falling
        in a leap year divided by 366 and (B) the actual number of days in that
        portion of the Interest Period falling in a non-leap year divided by 365);



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| |  |  | (ii) | if Actual/365 (Fixed) is specified in the applicable Pricing Supplement, the actual number of days in the Interest Period divided by 365;
| |  |  | ---- | -------------------------------------------------------------------------------------------------------------------------------------------

| |  |  |       |                                                                                                                                                                                                                       
| |  |  | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (iii) | if Actual/365 (Sterling) is specified in the applicable Pricing Supplement, the actual number of days in the Interest Period divided by 365 or, in the case of an Interest Payment Date falling in a leap year, 366;

| |  |  |      |                                                                                                                                    
| |  |  | ---- | -----------------------------------------------------------------------------------------------------------------------------------
| |  |  | (iv) | if Actual/360 is specified in the applicable Pricing Supplement, the actual number of days in the Interest Period divided by 360;

| |  |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  |  | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (v) | if 30/360, 360/360
        or Bond Basis is specified in the applicable Pricing Supplement,
        the number of days in the Interest Period divided by 360 (the number of
        days to be calculated on the basis of a year of 360 days with 12 30-day
        months (unless (a) the last day of the Interest Period is the 31st day
        of a month but the first day of the Interest Period is a day other than
        the 30th or 31st day of a month, in which case the month that includes
        that last day shall not be considered to be shortened to a 30-day month,
        or (b) the last day of the Interest Period is the last day of the month
        of February, in which case the month of February shall not be considered
        to be lengthened to a 30-day month)); and

| |  |  |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |  |  | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (vi) | if 30E/360 or Eurobond Basis is specified in the applicable Pricing Supplement, the number of days in the Interest Period divided by 360 (the number of days to be calculated on the basis of a year of 360 days with 12 30-day months, without regard to the date of the first day or last day of the Interest Period unless, in the case of the final Interest Period, the Maturity Date is the last day of the month of February, in which case the month of February shall not be considered to be lengthened to a 30-day month).

| | 
| | 

| | (v) | Notification of Rate of Interest
      and Interest Amounts
| | --- | -----------------------------------------------------------
| |     |                                                            
| |     |                                                            

| | 
| | 

| | (vi) | Determination or Calculation
      by Trustee
| | ---- | ---------------------------------------------
| |      |                                              
| |      |                                              



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| |       |                          | subject always to any Minimum
        Rate of Interest or Maximum Rate of Interest specified in the applicable
        Pricing Supplement), it shall deem fair and reasonable in all the circumstances
        or, as the case may be, the Trustee shall calculate the Interest Amount(s)
        in such manner as it shall deem fair and reasonable in all the circumstances
        and each such determination or calculation shall be deemed to have been
        made by the Principal Paying Agent or the Calculation Agent, as applicable.
| | ----- | ------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (vii) | Certificates to be final

| |     |                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | --- | ------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                 | All certificates, communications,
        opinions, determinations, calculations, quotations and decisions given,
        expressed, made or obtained for the purposes of the provisions of this
        Condition 5(b), whether by the Principal Paying Agent or, if applicable,
        the Calculation Agent or the Trustee, shall (in the absence of wilful
        default, bad faith or manifest error) be binding on the relevant Issuer,
        the Trustee, the Principal Paying Agent, the Calculation Agent (if applicable),
        the other Paying Agents and all Noteholders, Receiptholders and Couponholders
        and (in the absence as aforesaid) no liability to the relevant Issuer,
        the Noteholders, the Receiptholders or the Couponholders shall attach
        to the Principal Paying Agent or, if applicable, the Calculation Agent
        or the Trustee in connection with the exercise or non-exercise by it of
        its powers, duties and discretions pursuant to such provisions.
| |     |                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (c) | Interest on Dual Currency Notes

| |     |                                                                                                                                                                                                                                                                                
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     | In the case of Dual Currency
        Notes, if the rate or amount of interest falls to be determined by reference
        to an exchange rate, the rate or amount of interest payable shall be determined
        in the manner specified in the applicable Pricing Supplement.
| |     |                                                                                                                                                                                                                                                                                
| | (d) | Interest on Partly Paid Notes                                                                                                                                                                                                                                                  

| |     |                                                                                                                                                                                                                                                                    
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     | In the case of Partly Paid
        Notes (other than Partly Paid Notes which are Zero Coupon Notes), interest
        will accrue as aforesaid on the paid-up nominal amount of such Notes and
        otherwise as specified in the applicable Pricing Supplement.
| |     |                                                                                                                                                                                                                                                                    
| | (e) | Accrual of interest                                                                                                                                                                                                                                                

| |  |                                                                                                                                                                                                                                                                                                                                                      
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Each Note (or, in the case of the redemption of part only of a Note, that part only of such Note) will cease to bear interest (if any) from the date for its redemption unless, upon due presentation thereof, payment of principal is improperly withheld or refused. In such event, interest will continue to accrue as provided in the Trust Deed.

|   |         
|-- | --------
|6. | Payments

| | (a) | Method of payment         
| | --- | --------------------------
| |     |                           
| |     | Subject as provided below:

| |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |  | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (i) | payments in a Specified Currency other than euro will be made by credit or transfer to an account in the relevant Specified Currency (which, in the case of a payment in Japanese Yen to a non-resident of Japan, shall be a non-resident account) maintained by the payee with, or by a cheque in such Specified Currency drawn on, a bank in the principal financial centre of the country of such Specified Currency (which, if the Specified Currency is New Zealand dollars, shall be Auckland); and

| |  |      |                                                                                                                                                                                                                   
| |  | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (ii) | payments in euro will be made by credit or transfer to a euro account (or any other account to which euro may be credited or transferred) specified by the payee or, at the option of the payee, by a euro cheque.

| |  |                                                                                                                                                                                      
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Payments will be subject in all cases to any fiscal or other laws and regulations applicable thereto in the place of payment, but without prejudice to the provisions of Condition 8.

| |     |                                                                                                                                                                                                                                                                                                                       
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | Presentation of definitive Notes, Receipts
      and Coupons                                                                                                                                                                                                                                                          
| |     |                                                                                                                                                                                                                                                                                                                       
| |     | Payments of principal in
        respect of definitive Notes will (subject as provided below) be made in
        the manner provided in paragraph (a) above only against presentation and
        surrender (or, in the case of part payment of any sum due, endorsement)
        of definitive Notes, and payments of



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| |  | interest in respect
        of definitive Notes will (subject as provided below) be made as aforesaid
        only against presentation and surrender (or, in the case of part payment
        of any sum due, endorsement) of Coupons, in each case at the specified
        office of any Paying Agent outside the United States (which expression,
        as used herein, means the United States of America (including the States
        and the District of Columbia, its territories, its possessions and other
        areas subject to its jurisdiction)).
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

| |  | Payments of instalments of principal (if any) in respect of definitive Notes, other than the final instalment, will (subject as provided below) be made in the manner provided in paragraph (a) above against presentation and surrender (or, in the case of part payment of any sum due, endorsement) of the relevant Receipt in accordance with the preceding paragraph. Payment of the final instalment will be made in the manner provided in paragraph (a) above only against presentation and surrender (or, in the case of part payment of any sum due, endorsement) of the relevant Note in accordance with the preceding paragraph. Each Receipt must be presented for payment of the relevant instalment together with the definitive Note to which it appertains. Receipts presented without the definitive Note to which they appertain do not constitute valid obligations of the relevant Issuer. Upon the date on which any definitive Note becomes due and repayable, unmatured Receipts
(if any) relating thereto (whether or not attached) shall become void and no payment shall be made in respect thereof.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Fixed Rate Notes in definitive form (other than Dual Currency Notes or Index Linked Notes) should be presented for payment together with all unmatured Coupons appertaining thereto (which expression shall for this purpose include Coupons falling to be issued on exchange of matured Talons), failing which the amount of any missing unmatured Coupon (or, in the case of payment not being made in full, the same proportion of the amount of such missing unmatured Coupon as the sum so paid bears to the sum due) will be deducted from the sum due for payment. Each amount of principal so deducted will be paid in the manner mentioned above against surrender of the relative missing Coupon at any time before the expiry of 10 years after the Relevant Date (as defined in Condition 8) in respect of such principal (whether or not such Coupon would otherwise have become void under Condition 9) or, if later, five years from the date on which such Coupon would otherwise have be
come due, but in no event thereafter.

| |  |                                                                                                                                                                                                                                 
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Upon any Fixed Rate Note in definitive form becoming due and repayable prior to its Maturity Date, all unmatured Talons (if any) appertaining thereto will become void and no further Coupons will be issued in respect thereof.

| |  |                                                                                                                                                                                                                                                                                                                                                       
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Upon the date on which any Floating Rate Note, Dual Currency Note or Index Linked Interest Note in definitive form becomes due and repayable, unmatured Coupons and Talons (if any) relating thereto (whether or not attached) shall become void and no payment or, as the case may be, exchange for further Coupons shall be made in respect thereof.

| |  |                                                                                                                                                                                                                                                                                                                                  
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | If the due date for redemption of any definitive Note is not an Interest Payment Date, interest (if any) accrued in respect of such Note from (and including) the preceding Interest Payment Date or, as the case may be, the Interest Commencement Date shall be payable only against surrender of the relevant definitive Note.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (c) | Payments in respect of Global Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |     | Payments of principal and
        interest (if any) in respect of Notes represented by any Global Note will
        (subject as provided below) be made in the manner specified above in relation
        to definitive Notes and otherwise in the manner specified in the relevant
        Global Note against presentation or surrender, as the case may be, of
        such Global Note at the specified office of any Paying Agent outside the
        United States. A record of each payment made against presentation or surrender
        of any Global Note, distinguishing between any payment of principal and
        any payment of interest, will be made on such Global Note by the Paying
        Agent to which it was presented and such record shall be prima facie
        evidence that the payment in question has been made.



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| | (d) | General provisions applicable to payments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |     | The holder of a Global Note
        shall be the only person entitled to receive payments in respect of Notes
        represented by such Global Note and the relevant Issuer will be discharged
        by payment to, or to the order of, the holder of such Global Note in respect
        of each amount so paid. Each of the persons shown in the records of Euroclear
        and Clearstream, Luxembourg as the beneficial holder of a particular nominal
        amount of Notes represented by such Global Note must look solely to Euroclear
        and Clearstream, Luxembourg, as the case may be, for his share of each
        payment so made by the relevant Issuer to, or to the order of, the holder
        of such Global Note.

| |  |                                                                                                                                                                                                                                                                                                                  
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Notwithstanding the provisions of paragraph (a) above, if any amount of principal and/or interest in respect of Notes is payable in U.S. dollars, such U.S. dollar payments of principal and/or interest in respect of such Notes will be made at the specified office of a Paying Agent in the United States if:

| |  |     |                                                                                                                                                                                                                                                                                                                                                            
| |  | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (i) | the relevant Issuer has appointed Paying Agents with specified offices outside the United States with the reasonable expectation that such Paying Agents would be able to make payment in U.S. dollars at such specified offices outside the United States of the full amount of principal and interest on the Notes in the manner provided above when due;

| |  |      |                                                                                                                                                                                                                                                                                       
| |  | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (ii) | payment of the full amount of such principal and interest at all such specified offices outside the United States is illegal or effectively precluded by exchange controls or other similar restrictions on the full payment or receipt of principal and interest in U.S. dollars; and

| |  |       |                                                                                                                                                                  
| |  | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (iii) | such payment is then permitted under United States law without involving, in the opinion of the relevant Issuer, adverse tax consequences to the relevant Issuer.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (e) | Payment Day                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |     | If the date for payment
        of any amount in respect of any Note, Receipt or Coupon is not a Payment
        Day, the holder thereof shall not be entitled to payment until the next
        following Payment Day in the relevant place and shall not be entitled
        to further interest or other payment in respect of such delay. For these
        purposes, Payment Day means any day which (subject to Condition
        9) is:

| |  |     |                                                                                                                                                                                         
| |  | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (i) | a day on which commercial banks and foreign exchange markets settle payments and are open for general business (including dealing in foreign exchange and foreign currency deposits) in:

| |  |  |     |                                    
| |  |  | --- | -----------------------------------
| |  |  | (A) | the relevant place of presentation;

| |  |  |     |        
| |  |  | --- | -------
| |  |  | (B) | London;

| |  |  |     |                                                                                    
| |  |  | --- | -----------------------------------------------------------------------------------
| |  |  | (C) | any Additional Financial Centre specified in the applicable Pricing Supplement; and

| |  |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (ii) | either (1) in relation to
        any sum payable in a Specified Currency other than euro, a day on which
        commercial banks and foreign exchange markets settle payments and are
        open for general business (including dealing in foreign exchange and foreign
        currency deposits) in the principal financial centre of the country of
        the relevant Specified Currency (if other than the place of presentation,
        London and any Additional Financial Centre and which if the Specified
        Currency is New Zealand dollars shall be Auckland) or (2) in relation
        to any sum payable in euro, a day on which the TARGET System is open.
| |  |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

| | (f) | Interpretation of principal and interest                                                                                                   
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                            
| |     | Any reference in these Terms
        and Conditions to principal in respect of the Notes shall be deemed to
        include, as applicable:

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| |  |     |                                                                                         
| |  | --- | ----------------------------------------------------------------------------------------
| |  | (i) | any additional amounts which may be payable with respect to principal under Condition 8;

| |  |      |                                          
| |  | ---- | -----------------------------------------
| |  | (ii) | the Final Redemption Amount of the Notes;

| |  |       |                                          
| |  | ----- | -----------------------------------------
| |  | (iii) | the Early Redemption Amount of the Notes;

| |  |      |                                                         
| |  | ---- | --------------------------------------------------------
| |  | (iv) | the Optional Redemption Amount(s) (if any) of the Notes;

| |  |     |                                                                        
| |  | --- | -----------------------------------------------------------------------
| |  | (v) | in relation to Notes redeemable in instalments, the Instalment Amounts;

| |  |      |                                                                                                     
| |  | ---- | ----------------------------------------------------------------------------------------------------
| |  | (vi) | in relation to Zero Coupon Notes, the Amortised Face Amount (as defined in Condition 7(e)(iii)); and

| |  |       |                                                                                                                
| |  | ----- | ---------------------------------------------------------------------------------------------------------------
| |  | (vii) | any premium and any other amounts which may be payable by the relevant Issuer under or in respect of the Notes.

| |  |                                                                                                                                                                                                                   
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Any reference in these Terms and Conditions to interest in respect of the Notes shall be deemed to include, as applicable, any additional amounts which may be payable with respect to interest under Condition 8.

|   |                        
|-- | -----------------------
|7. | Redemption and Purchase

| |     |                                                                                                                                                                                                                                                                                                                                                                   
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | Redemption at maturity                                                                                                                                                                                                                                                                                                                                            
| |     |                                                                                                                                                                                                                                                                                                                                                                   
| |     | Unless previously redeemed
        or purchased and in each case cancelled as specified below, each Note
        will be redeemed by the relevant Issuer at its Final Redemption Amount
        specified in, or determined in the manner specified in, the applicable
        Pricing Supplement in the relevant Specified Currency on the Maturity
        Date.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | Redemption for tax reasons                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |     | The Notes may be redeemed
        at the option of the relevant Issuer in whole, but not in part, at any
        time (if the Note is neither a Floating Rate Note nor an Index Linked
        Interest Note) or on any Interest Payment Date (if the Note is either
        a Floating Rate Note or an Index Linked Interest Note), on giving not
        less than 30 nor more than 60 days notice to the Trustee and the
        Principal Paying Agent and, in accordance with Condition 14, the Noteholders
        (which notice shall be irrevocable), if the relevant Issuer satisfies
        the Trustee immediately before the giving of the notice referred to above
        that on the occasion of the next payment due under the Notes, the relevant
        Issuer has or will become obliged to pay additional amounts as provided
        or referred to in Condition 8 as a result of any change in, or amendment
        to, the laws or regulations of the United Kingdom or any political subdivision
        of, or any authority in, or of, the United Kingdom having power to tax,
        or any change in the application or official interpretation of such laws
        or regulations, which change or amendment becomes effective on or after
        the Issue Date of the first Tranche of the Notes, provided that no such
        notice of redemption shall be given earlier than 90 days prior to the
        earliest date on which the relevant Issuer would be obliged to pay such
        additional amounts were a payment in respect of the Notes then due.

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Prior to the publication of any notice of redemption pursuant to this Condition, the relevant Issuer shall deliver to the Trustee a certificate signed by two Directors of the relevant Issuer stating that the relevant Issuer is entitled to effect such redemption and setting forth a statement of the change or amendment (as referred to above) which has occurred (irrespective of whether such change or amendment is then effective) describing the facts leading thereto and accompanied by an opinion in a form satisfactory to the Trustee of independent legal advisers of recognised standing to the effect that such change or amendment has occurred (irrespective of whether such change or amendment is then effective) and the relevant Issuer has or will become obliged to pay such additional amounts as a result of such change or amendment. The Trustee shall be entitled to accept such certificate and opinion as sufficient evidence of the satisfaction of the
conditions precedent set out above, in which event they shall be conclusive and binding on the Noteholders, the Receiptholders and the Couponholders.

| |  |                                                                                                                                                                                                                               
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Notes redeemed pursuant to this Condition 7(b) will be redeemed at their Early Redemption Amount referred to in paragraph (e) below together (if appropriate) with interest accrued to (but excluding) the date of redemption.



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| | (c) | Redemption at the option of the relevant
      Issuer (Issuer Call)                                                     
| | --- | ------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                         
| |     | If Issuer Call is specified
        in the applicable Pricing Supplement, the relevant Issuer may, having
        given:

| |  |     |                                                                                                       
| |  | --- | ------------------------------------------------------------------------------------------------------
| |  | (i) | not less than 30 nor more than 90 days notice to the Noteholders in accordance with Condition 15; and

| |  |      |                                                                                                                                
| |  | ---- | -------------------------------------------------------------------------------------------------------------------------------
| |  | (ii) | not less than 15 days before the giving of the notice referred to in (i), notice to the Trustee and the Principal Paying Agent;

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (which notices shall be
        irrevocable and shall specify the date fixed for redemption), redeem all
        or some only of the Notes then outstanding on any Optional Redemption
        Date and at the Optional Redemption Amount(s) specified in, or determined
        in the manner specified in, the applicable Pricing Supplement together,
        if appropriate, with interest accrued to (but excluding) the relevant
        Optional Redemption Date. Any such redemption must be of a nominal amount
        equal to the Minimum Redemption Amount or the Maximum Redemption Amount.
        In the case of a partial redemption of Notes, the Notes to be redeemed
        (Redeemed Notes) will be selected individually by lot, in
        the case of Redeemed Notes represented by definitive Notes, and in accordance
        with the rules of Euroclear and/or Clearstream, Luxembourg, in the case
        of Redeemed Notes represented by a Global Note, not more than 30 days
        prior to the date fixed for redemption (such date of selection being hereinafter
        called the Selection Date). In the case of Redeemed Notes
        represented by definitive Notes, a list of the serial numbers of such
        Redeemed Notes will be published in accordance with Condition 14 not less
        than 15 days prior to the date fixed for redemption. The aggregate nominal
        amount of Redeemed Notes represented by definitive Notes shall bear the
        same proportion to the aggregate nominal amount of all Redeemed Notes
        as the aggregate nominal amount of definitive Notes outstanding bears
        to the aggregate nominal amount of the Notes outstanding, in each case
        on the Selection Date, provided that, if necessary, appropriate adjustments
        shall be made to such nominal amounts to ensure that each represents an
        integral multiple of the Specified Denomination. No exchange of the relevant
        Global Note will be permitted during the period from (and including) the
        Selection Date to (and including) the date fixed for redemption pursuant
        to this paragraph (c) and notice to that effect shall be given by the
        relevant Issuer to the Noteholders in accordance with Condition 14 at
        least five days prior to the Selection Date.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (d) | Redemption at the option of the Noteholders
      (Investor Put)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |     | If Investor Put is specified
        in the applicable Pricing Supplement, upon the holder of any Note giving
        to the relevant Issuer in accordance with Condition 14 not less than 15
        nor more than 30 days notice, the relevant Issuer will, upon the
        expiry of such notice, redeem, subject to, and in accordance with, the
        terms specified in the applicable Pricing Supplement, in whole (but not
        in part), such Note on the Optional Redemption Date and at the Optional
        Redemption Amount together, if appropriate, with interest accrued to (but
        excluding) the Optional Redemption Date.

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | If this Note is in definitive form, to exercise the right to require redemption of this Note the holder of this Note must deliver such Note at the specified office of any Paying Agent at any time during normal business hours of such Paying Agent falling within the notice period, accompanied by a duly completed and signed notice of exercise in the form (for the time being current) obtainable from any specified office of any Paying Agent (a Put Notice) and in which the holder must specify a bank account (or, if payment is required to be made by cheque, an address) to which payment is to be made under this Condition.

| |     |                                                                                                                                                            
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| | (e) | Early Redemption Amounts                                                                                                                                   
| |     |                                                                                                                                                            
| |     | For the purpose of paragraph
        (b) above and Condition 10, the Notes will be redeemed at their Early
        Redemption Amount calculated as follows:

| |  |     |                                                                                                                      
| |  | --- | ---------------------------------------------------------------------------------------------------------------------
| |  | (i) | in the case of Notes with a Final Redemption Amount equal to the Issue Price, at the Final Redemption Amount thereof;

| |  |      |                                                                                                                                                                   
| |  | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (ii) | in the case of Notes (other than Zero Coupon Notes but including Instalment Notes and Partly Paid Notes) with a Final Redemption Amount which is or may be less or



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| |  |  | greater than the Issue
        Price or which is payable in a Specified Currency other than that in which
        the Notes are denominated, at the amount specified in, or determined in
        the manner specified in, the applicable Pricing Supplement or, if no such
        amount or manner is so specified in the applicable Pricing Supplement,
        at their nominal amount; or
| |  |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  |                                                                                                                                                                                                                                                                                                                                                                                               

| |  | (iii) | in the case of Zero Coupon Notes, at an amount (the Amortised Face Amount) equal to the sum of:
| |  | ----- | -------------------------------------------------------------------------------------------------

| |  |  |     |                         
| |  |  | --- | ------------------------
| |  |  | (A) | the Reference Price; and

| |  |  |     |                                                                                                                                                                                                                                                                                                    
| |  |  | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (B) | the product of the Accrual Yield (compounded annually) being applied to the Reference Price from (and including) the Issue Date of the first tranche of the Notes to (but excluding) the date fixed for redemption or (as the case may be) the date upon which such Notes become due and repayable.

| |  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |  |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | Where such calculation is to be made for a period which is not a whole number of years, it shall be made (1) in the case of a Zero Coupon Note other than a Zero Coupon Note payable in euro, on the basis of a 360-day year consisting of 12 months of 30 days each and (2) in the case of a Zero Coupon Note payable in euro, on the basis of the actual number of days elapsed divided by 365 (or, if any of the days elapsed falls in a leap year, the sum of (x) the number of those days falling in a leap year divided by 366 and (y) the number of those days falling in a non-leap year divided by 365) or (in either case) on such other calculation basis as may be specified in the applicable Pricing Supplement.

| |     |                                                                                                                                                                                                                                  
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (f) | Instalments                                                                                                                                                                                                                      
| |     |                                                                                                                                                                                                                                  
| |     | Instalment Notes will be
        redeemed in the Instalment Amounts and on the Instalment Dates. In the
        case of early redemption, the Early Redemption Amount will be determined
        pursuant to paragraph (e) above.

| |     |                                                                                                                                                                                                   
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (g) | Partly Paid Notes                                                                                                                                                                                 
| |     |                                                                                                                                                                                                   
| |     | Partly Paid Notes will be
        redeemed, whether at maturity, early redemption or otherwise, in accordance
        with the provisions of this Condition and the applicable Pricing Supplement.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (h) | Purchases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |     | The relevant Issuer or any
        Subsidiary (as defined in the Trust Deed) of the relevant Issuer may at
        any time purchase Notes (provided that, in the case of definitive Notes,
        all unmatured Receipts, Coupons and Talons appertaining thereto are purchased
        therewith) at any price in the open market or otherwise. If purchases
        are made by tender, tenders must be available to all Noteholders alike.
        Such Notes may be held, reissued, resold or, at the option of the relevant
        Issuer surrendered to any Paying Agent for cancellation.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) | Cancellation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |     | All Notes which are redeemed
        will forthwith be cancelled (together with all unmatured Receipts, Coupons
        and Talons attached thereto or surrendered therewith at the time of redemption).
        All Notes so cancelled and Notes purchased and cancelled pursuant to paragraph
        (h) above (together with all unmatured Receipts, Coupons and Talons cancelled
        therewith) shall be forwarded to the Principal Paying Agent and cannot
        be reissued or resold.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (j) | Late payment on Zero Coupon Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |     | If the amount payable in
        respect of any Zero Coupon Note upon redemption of such Zero Coupon Note
        pursuant to paragraph (a), (b), (c) or (d) above or upon its becoming
        due and repayable as provided in Condition 10 is improperly withheld or
        refused, the amount due and repayable in respect of such Zero Coupon Note
        shall be the amount calculated as provided in paragraph (e)(iii) above
        as though the references therein to the date fixed for the redemption
        or the date upon which such Zero Coupon Note becomes due and repayable
        were replaced by references to the date which is the earlier of:



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| |  |     |                                                                                          
| |  | --- | -----------------------------------------------------------------------------------------
| |  | (i) | the date on which all amounts due in respect of such Zero Coupon Note have been paid; and

| |  |      |                                                                                                                                                                                                                                                                        
| |  | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (ii) | five days after the date on which the full amount of the moneys payable in respect of such Zero Coupon Note has been received by the Principal Paying Agent or the Trustee and notice to that effect has been given to the Noteholders in accordance with Condition 14.

|   |         
|-- | --------
|8. | Taxation

All payments of principal and interest in respect of the Notes, Receipts and Coupons by the relevant Issuer will be made without withholding or deduction for or on account of any present or future taxes or duties of whatever nature imposed or levied by or on behalf of the  United Kingdom or any political subdivision or any authority thereof or therein having power to tax unless such withholding or deduction is required by law. In such event, the relevant Issuer will pay such additional amounts as shall be necessary in order that the net  amounts received by the holders of the Notes, Receipts or Coupons after such withholding or deduction shall equal the respective amounts of principal and interest which would otherwise have been receivable in respect of the Notes, Receipts or Coupons, as the case  may be, in the absence of such withholding or deduction; except that no such additional amounts shall be payable with respect to any Note, Receipt or Coupon:

|(i) | presented for payment by or on behalf of a holder who is liable for such taxes or duties in respect of such Note, Receipt or Coupon by reason of his having some connection with the United Kingdom other than the mere holding of such Note, Receipt or Coupon; or
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|     |                                                
|---- | -----------------------------------------------
|(ii) | presented for payment in the United Kingdom; or

|      |                                                                                                                                                                                                                                                                     
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(iii) | presented for payment to, or to a third party on behalf of, a holder who would not be liable to such withholding or deduction if such holder had made a declaration of non-residence or similar claim for exemption to any authority of or in the United Kingdom; or

|     |                                                                                                                                                                                                                                                                                           
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(iv) | presented for payment more than 30 days after the Relevant Date (as defined below) except to the extent that the holder thereof would have been entitled to an additional amount on presenting the same for payment on such thirtieth day assuming that day to have been a Payment Day; or

|    |                                                                                                                                                                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(v) | where such withholding or deduction is imposed on a payment to an individual and is required to be made pursuant to any European Union Directive on the taxation of savings implementing the conclusions of the ECOFIN Council Meeting of 2627 November, 2000 or any law implementing or complying with, or introduced in order to conform to, such Directive; or

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

As used herein, the Relevant Date means the date on which such payment first becomes due, except that, if the full amount of the moneys payable has not been duly received by the Trustee or the Principal Paying Agent on or prior to such due date, it means the date on  which, the full amount of such moneys having been so received, notice to that effect is duly given to the Noteholders in accordance with Condition 14.

|9. | Prescription
|-- | ------------

The Notes, Receipts and Coupons will become void unless presented for payment within a period of 10 years (in the case of principal) and five years (in the case of interest) after the Relevant Date (as defined in Condition 8) therefor.

There shall not be included in any Coupon sheet issued on exchange of a Talon any Coupon the claim for payment in respect of which would be void pursuant to this Condition or Condition 6(b) or any Talon which would be void pursuant to Condition 6(b).

|10. | Events of Default
|--- | -----------------

|    |                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | The Trustee at its discretion may, and if so requested in writing by the holders of at least one-quarter in principal amount of the Notes then outstanding or if so directed by an Extraordinary Resolution of the Noteholders shall, (but, in the case of the happening of any of the events mentioned in paragraphs (ii), (iii), (v), (vi) and (vii) below in relation to the relevant Issuer and (iii) to (vii) below



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| | (inclusive) in relation
        to a Material Subsidiary, only if the Trustee shall have certified in
        writing that such event is, in its opinion, materially prejudicial to
        the interests of the Noteholders) give notice to the relevant Issuer that
        the Notes are, and they shall accordingly thereupon become, immediately
        due and repayable at their Early Redemption Amount, together with accrued
        interest as provided in the Trust Deed, if any of the following events
        shall occur and be continuing:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

| | (i) | if default is made by the relevant Issuer for a period of 14 days or more in the payment of any principal or interest due in respect of the Notes or any of them; or
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) | if default is made by the relevant Issuer in the performance or observance of any material obligation, condition or provision binding upon it under the Notes or the Trust Deed (other than any obligation for the payment of any principal or interest in respect of the Notes) and, except where such default is, in the opinion of the Trustee, not capable of remedy when no such continuation and notice as is hereinafter mentioned will be required, such default continues for 30 days (or such longer period as the Trustee may permit) after written notice thereof has been given by the Trustee to the relevant Issuer requiring the same to be remedied; or

| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iii) | (1) any indebtedness for moneys borrowed (as defined below) of the relevant Issuer or any Material Subsidiary or (2) any present or future guarantee for, or indemnity in respect of, any indebtedness for moneys borrowed of any person given by the relevant Issuer or any Material Subsidiary where the relevant indebtedness for moneys borrowed when aggregated with all other indebtedness for moneys borrowed in respect of which one or more other events referred to in this paragraph (iii) shall have occurred exceeds whichever is the greater of £30,000,000 (or the equivalent in other currencies as determined by the Trustee) and two per cent. of the Adjusted Capital and Reserves:

| |  |     |                                                                                     
| |  | --- | ------------------------------------------------------------------------------------
| |  | (i) | is not paid or repaid or honoured when due or within any applicable grace period; or

| |  |      |                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (ii) | is declared to be or becomes enforceable, redeemable or repayable prior to the due date for payment thereof as a result of any actual default by the relevant Issuer or any Material Subsidiary, as the case may be, or as a result of an event of default (howsoever described) in relation thereto, unless such default or event of default is waived or remedied (to the satisfaction of the Trustee) within thirty business days,

| |  |                                                                              
| |  | -----------------------------------------------------------------------------
| |  | except, in any such case, where there is a bona fidedispute as to payment; or

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iv) | if an order is made or a resolution is passed for the winding up of, or an administration order is made in relation to, the relevant Issuer or any Material Subsidiary (save, in the case of a Material Subsidiary, (i) with the prior consent of the Trustee or the prior sanction of an Extraordinary Resolution for the purposes of or in connection with an amalgamation or reconstruction, or (ii) a voluntary solvent winding-up where surplus assets are available for distribution); or

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (v) | if an encumbrancer takes possession or an administrative or other receiver or an administrator is appointed of the whole or any substantial part of the undertaking, property and assets of the relevant Issuer or any Material Subsidiary or if a distress, execution or other process is levied or enforced upon or sued out against the whole or any substantial part of the assets of the relevant Issuer or any Material Subsidiary and, in the case of any of the foregoing events, is not discharged within 60 days or such longer period as the Trustee may allow; or

| |      |                                                                                                                                                 
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------
| | (vi) | if the relevant Issuer or any Material Subsidiary is unable to pay its debts within the meaning of Section 123(2) of the Insolvency Act 1986; or

| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (vii) | if the relevant Issuer or any Material Subsidiary shall cease to carry on the whole or substantially the whole of its business, save in any case for the purposes of amalgamation, merger, consolidation, reorganisation, reconstruction or other similar arrangement (a) not involving or arising out of the insolvency of the relevant Issuer or a Material Subsidiary and under which all or substantially all of its assets are transferred to the relevant Issuer or a Material Subsidiary  or one or more of the relevant Issuers other Subsidiaries or to a transferee or transferees which is or are, or immediately upon such transfer become(s), a Material Subsidiary or Material Subsidiaries provided that this exception (a) shall not apply where the transferor company is the relevant Issuer unless assets comprising the major part



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| |  | by value of the assets
        owned by the relevant transferor company immediately prior to such transfer
        are transferred to a single transferee company and contemporaneously with
        such transfer where the transferor company is the relevant Issuer (y)
        such transferee company assumes (to the satisfaction of the Trustee) all
        the obligations of the transferor company as principal debtor in respect
        of the Notes and (z) such transferor company unconditionally and irrevocably
        guarantees (to the satisfaction of the Trustee) the payment of all amounts
        payable by such transferee company as the new principal debtor or (b)
        under which all or substantially all of its assets are transferred to
        a third party or parties (whether associates or not) for full consideration
        on an arms length basis or (c) the terms of which have previously
        been approved by the Trustee in writing or by an Extraordinary Resolution
        of the Noteholders provided that in no event shall the relevant Issuer
        or any Material Subsidiary be deemed to have ceased to carry on the whole
        or substantially the whole of its business solely by reason of any forced
        divestiture imposed by any government or regulatory body or by reason
        of the loss of the Appointment or the Licence.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

|(b) | For the purposes of this Condition:
|--- | -----------------------------------

| |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Accounts means a consolidation of the annual statutory accounts of the relevant Issuer and (in each case) its Subsidiary Undertakings as prepared, audited and reported upon by the Auditors in accordance with the historical cost convention method as modified, if applicable, by the revaluation of land and buildings and otherwise in accordance with United Kingdom generally accepted accounting practices and principles;

| |                                                                                   
| | ----------------------------------------------------------------------------------
| | Adjusted Capital and Reserves means at any time a sum equal to the aggregate of:

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

| |      |                                                                                                                                                                                                                                                                                           
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) | the amounts standing to the credit of the capital and revenue reserves of the relevant Issuer and its Subsidiary Undertakings (including any share premium account and capital redemption reserve) after adding thereto any balance standing to the credit of the profit and loss account;

| |                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------
| | all based on the consolidated balance sheet of the relevant Issuer and its Subsidiary Undertakings as contained in the then latest Accounts but after:

| |     |                                                                                                  
| | --- | -------------------------------------------------------------------------------------------------
| | (i) | excluding all sums set aside for taxation (whether in respect of deferred taxation or otherwise);

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) | making such adjustments as may be appropriate in respect of any variation in the amount of such share capital or such reserves subsequent to the relevant balance sheet date and so that for this purpose share capital allotted shall be deemed to have been issued and if any issue or proposed issue of shares by the relevant Issuer for cash has been underwritten then such shares shall be deemed to have been issued and the amount (including any premium) of the subscription moneys payable in respect thereof (not being moneys payable later than six months after the date of allotment) shall to the extent so underwritten be deemed to have been paid up on the date when the issue of such shares was underwritten (or, if such underwriting was conditional, on the date when it became unconditional in all respects);

| |       |                                                                                                                                                                                                                                                                                                                                  
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iii) | making such adjustments as may be appropriate in respect of any distributions declared, recommended or made by the relevant Issuer or any of its Subsidiary Undertakings out of profits earned up to and including the date of such balance sheet to the extent that such distribution is not provided for in such balance sheet;

| |      |                                                                                                                                                                                                                                                                                                                                                                                                         
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iv) | making such adjustments as may be appropriate in respect of any variation in the interests of the relevant Issuer in its Subsidiary Undertakings (including, but without limiting the generality of the foregoing, any acquisition of a new Subsidiary Undertaking or disposal of an interest which causes an undertaking to cease to be a Subsidiary Undertaking) since the date of such balance sheet;

| |     |                                                                                                                                                                                                                                                                                                                        
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (v) | if the calculation is required for the purposes of or in connection with a transaction under or in connection with which any company is to become or cease to be a Subsidiary Undertaking of the relevant Issuer, making all such adjustments as would be appropriate if such transaction had been carried into effect;



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| |      |                                                                                                                    
| | ---- | -------------------------------------------------------------------------------------------------------------------
| | (vi) | excluding all minority interests and other third party interests in Subsidiary Undertakings of the relevant Issuer;

| |       |                                                                   
| | ----- | ------------------------------------------------------------------
| | (vii) | deducting any balance to the debit of the profit and loss account;

| |        |                                                                                        
| | ------ | ---------------------------------------------------------------------------------------
| | (viii) | deducting all amounts (if any) attributable to goodwill or any other intangible assets;

| |      |                                                                                                                                                                                                                                                                                                                                                                             
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ix) | excluding such part of the interests of the relevant Issuer or any of its Subsidiary Undertakings in an associated company (as defined in the Trust Deed), not being a Subsidiary Undertaking of the relevant Issuer, as is attributable to any post-acquisition undistributed profits and reserves, but including such interests at original cost or, if lower, book value;

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (x) | deducting (if not otherwise excluded) such amount as the Auditors shall consider appropriate in respect of any deferred taxation liabilities on the net amount by which the fixed assets of the relevant Issuer and its Subsidiary Undertakings shall have been written up as a result of any revaluation, and for this purpose a transfer of any assets by the relevant Issuer to any of its Subsidiary Undertakings, or by any of its Subsidiary Undertakings to the relevant Issuer or another of its Subsidiary Undertakings, for a consideration in excess of the book value thereof shall be deemed to be a writing up of the book value of such asset as a result of a revaluation;

| |      |                                                                                                                                                                                                                                             
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (xi) | deducting therefrom all amounts attributable (whether by way of share or loan capital or otherwise) to the interests of the relevant Issuer and its Subsidiary Undertakings (other than Excluded Subsidiaries) in Excluded Subsidiaries; and

| |       |                                                                                 
| | ----- | --------------------------------------------------------------------------------
| | (xii) | making such other adjustments (if any) as the Auditors may consider appropriate;

| |                                                                                            
| | -------------------------------------------------------------------------------------------
| | and so that no amount shall be included or excluded more than once in the same calculation;

The Trust Deed provides that, if there is a material change in generally accepted United Kingdom accounting practices or principles as adopted and applied in the Accounts, the relevant Issuer will, at the request of the Trustee, after consultation with the relevant Issuer,  procure the Auditors to restate the Accounts in accordance with generally accepted United Kingdom accounting practices and/or principles applied in respect of the Accounts for the year ended 31 March, 1998 and the Adjusted Capital and Reserves shall be calculated  accordingly.

The certificate of the Auditors as to the amount of the Adjusted Capital and Reserves at any time shall, in the absence of manifest error, be conclusive and binding on all parties.

Appointment means the Instrument of Appointment dated 24 August, 1989 under Sections 11 and 14 of the Water Act 1989 (as varied from time to time) appointing United Utilities Water PLC as a water undertaker and sewerage undertaker;

Auditors means the auditors for the time being of the relevant Issuer or, in the event of their being unable or unwilling to carry out any action requested of them pursuant to the Trust Deed, such other firm of chartered accountants as the Trustee may in writing nominate or  approve for the purpose;

Excluded Subsidiary means any Subsidiary of the relevant Issuer (i) which is a single purpose company whose principal assets and business are constituted by the ownership, acquisition, development and/or operation of an asset, (ii) none of whose liabilities in respect of  the financing of such ownership, acquisition, development and/or operation of an asset is subject to any recourse whatsoever to any member of the Group other than an Excluded Subsidiary, and (iii) which has been designated as such by the relevant Issuer by written  notice to the Trustee; provided that the relevant Issuer may give written notice to the Trustee at any time that any Excluded Subsidiary is no longer an Excluded Subsidiary, whereupon it shall cease to be an Excluded Subsidiary;

Group means the relevant Issuer and its Subsidiaries and member of the Group shall be construed accordingly;

indebtedness for moneys borrowed means any present or future indebtedness (being principal, premium or interest) for or in respect of (a) all moneys borrowed, (b) liabilities under or in respect of any acceptance or acceptance credit and (c) all notes, bonds, debentures,  debenture stock, loan stock or other securities offered, issued or distributed whether by way of public offer, private placing, acquisition consideration or otherwise and whether issued for cash or in whole or in part for a consideration other than cash which is not for the time  being owned by the relevant Issuer or any of its Subsidiary Undertakings and which does not amount to Project Finance Indebtedness;



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Licence means either the distribution licence granted to the relevant Issuer under Section 6(1)(c) of the Electricity Act 1989 as amended by Section 30 of the Utilities Act 2000 or the licence of the relevant Issuer having effect (in accordance with a scheme made by the  Secretary of State for Trade and Industry under Section 13(2)(a) of Schedule 7 of the Utilities Act 2000 which took effect on 1 October 2001) as if it were a distribution licence granted under Section 6(1)(c) of the Electricity Act 1989 as amended by Section 30 of the Utilities  Act 2000, as appropriate;

Material Subsidiary means any Subsidiary of the relevant Issuer (not being an Excluded Subsidiary) (i) whose gross revenues earned from outside the Group or whose gross assets (in each case consolidated in respect of a Subsidiary which itself has Subsidiaries, and in  each case attributable to the relevant Issuer all as shown in the latest audited accounts (consolidated or, as the case may be, unconsolidated) of such Subsidiary represent 20 per cent. or more of the consolidated gross revenues or, as the case may be, consolidated gross  assets (in each case attributable to the shareholders of its ultimate parent) of the relevant Issuer and in each case their respective Subsidiary Undertakings (other than Excluded Subsidiaries) all as shown in the latest Accounts; or (ii) to which is transferred all or substantially  all of the business, undertaking or assets of a Subsidiary which immediately prior to such transfer is a Material Subsidiary, whereupon the
transferor Subsidiary shall immediately cease to be a Material Subsidiary and the transferee Subsidiary shall immediately become a  Material Subsidiary under this sub-paragraph (ii) but shall cease to be a Material Subsidiary upon publication of its next audited accounts unless it would then be a Material Subsidiary under (i) above. A report by the Auditors (whether or not addressed to the Trustee) that in  their opinion a Subsidiary is or is not or was or was not at any particular time a Material Subsidiary shall, in the absence of manifest error, be conclusive and binding on all parties;

Project Finance Indebtedness means any indebtedness for moneys borrowed to finance the ownership, acquisition, development and/or operation of an asset (whether or not an asset of a member of the Group):

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

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

| |     |                                                                                                                                                 
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) | recourse for amounts limited to the cash flow or net cash flow (other than historic cash flow or historic net cash flow) from such asset; and/or

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) | recourse for the purpose only of enabling amounts to be claimed in respect of such indebtedness for moneys borrowed in an enforcement of any encumbrance given by such borrower over such asset or the income, cash flow or other proceeds deriving therefrom (or given by any shareholder or the like in the borrower over its shares or the like in the capital of the borrower) to secure such indebtedness for moneys borrowed, provided that (1) the extent of such recourse to such borrower is limited solely to the amount of any recoveries made on any such enforcement, and (2) such person or persons is/are not entitled, by virtue of any right or claim arising out of or in connection with such indebtedness for moneys borrowed, to commence proceedings for the winding up or dissolution of the borrower or to appoint or procure the appointment of any receiver, trustee or similar person or officer in respect
of the borrower or any of its assets (save for the assets the subject of such encumbrance); and/or

| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iii) | recourse to such borrower generally, or directly or indirectly to a member of the Group, under any form of assurance, undertaking or support, which recourse is limited to a claim for damages (other than liquidated damages and damages required to be calculated in a specified way) for breach of an obligation by the person against whom such recourse is available (not being a payment obligation or an obligation to procure payment by another or an indemnity in respect thereof or any obligation to comply or to procure compliance by another with any financial ratios or other tests of financial condition);

Subsidiary means a subsidiary within the meaning of Section 736 of the Companies Act 1985; and

Subsidiary Undertaking has the meaning ascribed thereto in Section 258 of the Companies Act 1985 (but, in relation to each Issuer shall exclude any Subsidiary Undertaking whose accounts are not included in the then latest Accounts, or (in the case of a Subsidiary  Undertaking which has first become a Subsidiary Undertaking of a member of the Group since the date as at which such Accounts were prepared) would not have been so included or consolidated if it had become so on or before that date).



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|    |                                                   
|--- | --------------------------------------------------
|11. | Replacement of Notes, Receipts, Coupons and Talons

Should any Note, Receipt, Coupon or Talon be lost, stolen, mutilated, defaced or destroyed, it may be replaced at the specified office of the Principal Paying Agent upon payment by the claimant of such costs and expenses as may be incurred in connection therewith and  on such terms as to evidence and indemnity as the Issuer may reasonably require. Mutilated or defaced Notes, Receipts, Coupons or Talons must be surrendered before replacements will be issued.

|12. | Agents
|--- | ------

The names of the initial Paying Agents and their initial specified offices are set out below.

The Issuer is entitled to vary or terminate the appointment of any Paying Agent and/or appoint additional or other Paying Agents and/or approve any change in the specified office through which any Paying Agent acts, provided that:

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

|     |                                                                                                                                                                                                                                                                                                          
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(ii) | so long as the Notes are listed on any stock exchange or admitted to listing by any other relevant authority, there will at all times be a Paying Agent with a specified office in such place as may be required by the rules and regulations of the relevant stock exchange or other relevant authority;

|      |                                                                                                                               
|----- | ------------------------------------------------------------------------------------------------------------------------------
|(iii) | there will at all times be a Paying Agent with a specified office in a city approved by the Trustee in continental Europe; and

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(iv) | if any European Union Directive on the taxation of savings implementing the conclusions of the ECOFIN Council meeting of 26-27th November, 2000 or any law implementing or complying with, or introduced in order to conform to, such Directive is introduced, the Issuer will ensure that it maintains a Paying Agent in a Member State of the European Union (other than the United Kingdom) that will not be obliged to withhold or deduct tax pursuant to any such Directive.

In acting under the Agency Agreement, the Paying Agents act solely as agents of the relevant Issuer and, in certain circumstances specified therein, of the Trustee and do not assume any obligation to, or relationship of trust with, any Noteholders, Receiptholders or  Couponholders.

|13. | Exchange of Talons
|--- | ------------------

On and after the Fixed Interest Date or the Interest Payment Date, as appropriate, on which the final Coupon comprised in any Coupon sheet matures, the Talon (if any) forming part of such Coupon sheet may be surrendered at the specified office of the Principal Paying  Agent or any other Paying Agent in exchange for a further Coupon sheet including (if such further Coupon sheet does not include Coupons to (and including) the final date for the payment of interest due in respect of the Note to which it appertains) a further Talon, subject  to the provisions of Condition 9.

|14. | Notices
|--- | -------

All notices regarding the Notes will be deemed to be validly given if published in a leading English language daily newspaper of general circulation in London. It is expected that such publication will be made in the Financial Times in London. The relevant Issuer shall also  ensure that notices are duly published in a manner which complies with the rules and regulations of any stock exchange or any other relevant authority on which the Notes are for the time being listed or by which they have been admitted to listing. Any such notice will be  deemed to have been given on the date of the first publication or, where required to be published in more than one newspaper, on the date of the first publication in all required newspapers. If publication as provided above is not practicable, notice will be given in such  other manner, and will be deemed to have been given on such date, as the Trustee may approve.

Until such time as any definitive Notes are issued, there may, so long as any Global Notes representing the Notes are held in their entirety on behalf of Euroclear and/or Clearstream, Luxembourg, be substituted for such publication in such newspaper(s) the delivery of the  relevant notice to Euroclear and/or Clearstream, Luxembourg for communication by them to the holders of the Notes and, in addition, for so long as any Notes are listed on a stock exchange or admitted to listing by any other relevant authority and the rules of that stock  exchange or other relevant authority so require, such notice will be published in a daily newspaper of general circulation in the place or places required by that stock exchange or other relevant authority. Any such notice shall be deemed to have been given to the holders of  the Notes on the seventh day after the day on which the said notice was given to Euroclear and/or Clearstream, Luxembourg.



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Notices to be given by any Noteholder shall be in writing and given by lodging the same, together (in the case of any Note in definitive form) with the relative Note or Notes, with the Principal Paying Agent. Whilst any of the Notes is represented by a Global Note, such notice  may be given by any holder of a Note to the Principal Paying Agent through Euroclear and/or Clearstream, Luxembourg, as the case may be, in such manner as the Principal Paying Agent and Euroclear and/or Clearstream, Luxembourg, as the case may be, may approve  for this purpose.

|15. | Meetings of Noteholders, Modification and Waiver
|--- | ------------------------------------------------

The Trust Deed contains provisions for convening meetings of the Noteholders to consider any matter affecting their interests, including the sanctioning by Extraordinary Resolution of a modification of the Notes, the Receipts, the Coupons or any of the provisions of the  Trust Deed. Such a meeting may be convened by the relevant Issuer or the Trustee and shall be convened by the relevant Issuer at the request of Noteholders holding not less than five per cent. in nominal amount of the Notes for the time being outstanding. The quorum at  any such meeting for passing an Extraordinary Resolution is one or more persons holding or representing a clear majority in nominal amount of the Notes for the time being outstanding, or at any adjourned meeting one or more persons being or representing Noteholders  whatever the nominal amount of the Notes so held or represented, except that at any meeting the business of which includes the modification of certain provisions of the
Notes, the Receipts, the Coupons or the Trust Deed (including modifying the date of maturity of the  Notes or any date for payment of interest thereon, reducing or cancelling the amount of principal or the rate or amount of interest payable in respect of the Notes or altering the currency of payment of the Notes, the Receipts or the Coupons), the quorum shall be one or  more persons holding or representing not less than two-thirds in nominal amount of the Notes for the time being outstanding, or at any adjourned such meeting one or more persons holding or representing not less than one-third in nominal amount of the Notes for the  time being outstanding. An Extraordinary Resolution passed at any meeting of the Noteholders shall be binding on all the Noteholders, whether or not they are present at the meeting, and on all Receiptholders and Couponholders.

The Trustee may agree, without the consent of the Noteholders, Receiptholders or Couponholders, to:

| | (i) | any modification of any of the provisions of these Terms and Conditions, the Notes, the Receipts, the Coupons or the Trust Deed which is not in the opinion of the Trustee materially prejudicial to the interests of the Noteholders; or
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                                                                                                                      
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) | any modification of the provisions of any of these Terms and Conditions, the Notes, the Receipts, the Coupons or the Trust Deed which is of a formal, minor or technical nature or is made to correct a manifest error or to comply with mandatory provisions of law.

The Trustee may also agree, without the consent of the Noteholders, Receiptholders or Couponholders, to the waiver or authorisation of any breach or proposed breach of any of these Terms and Conditions or any of the provisions of the Trust Deed or determine, without  any such consent as aforesaid, that any Event of Default or Potential Event of Default (as defined in the Trust Deed) shall not be treated as such, which in any such case is not, in the opinion of the Trustee, materially prejudicial to the interests of the Noteholders.

In connection with the exercise by it of any of its trusts, powers, authorities or discretions (including, but without limitation, any modification, waiver, authorisation or determination), the Trustee shall have regard to the general interests of the Noteholders as a class but shall  not have regard to any interests arising from circumstances particular to individual Noteholders, Receiptholders or Couponholders (whatever their number) and, in particular, but without limitation, shall not have regard to the consequences of such exercise for individual  Noteholders, Receiptholders or Couponholders (whatever their number) resulting from their being for any purpose domiciled or resident in, or otherwise connected with, or subject to the jurisdiction of, any particular territory and the Trustee shall not be entitled to require,  nor shall any Noteholder, Receiptholder or Couponholder be entitled to claim, from the relevant Issuer or any other person any indemnification
 or payment in respect of any tax consequence of any such exercise upon individual Noteholders, Receiptholders or  Couponholders except, in the case of the relevant Issuer to the extent provided for in Condition 8 and/or any undertaking given in addition to, or in substitution for, Condition 8 pursuant to the Trust Deed.

Any such modification shall be binding on the Noteholders, the Receiptholders and the Couponholders and, unless the Trustee otherwise agrees, any such modification shall be notified to the Noteholders in accordance with Condition 14 as soon as practicable thereafter.



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|    |                                                                            
|--- | ---------------------------------------------------------------------------
|16. | Indemnification of the Trustee and its Contracting with the relevant Issuer

The Trust Deed contains provisions for the indemnification of the Trustee and for its relief from responsibility, including provisions relieving it from taking action unless indemnified to its satisfaction.

The Trust Deed also contains provisions pursuant to which the Trustee is entitled, inter alia, (i) to enter into business transactions with the relevant Issuer and to act as trustee for the holders of any other securities issued by, or relating to, the relevant Issuer; (ii) to exercise  and enforce its rights, comply with its obligations and perform its duties under or in relation to any such transactions or, as the case may be, any such trusteeship without regard to the interests of, or consequences for, the Noteholders, Receiptholders or Couponholders,  and (iii) to retain and not be liable to account for any profit made or any other amount or benefit received thereby or in connection therewith.

|17. | Further Issues
|--- | --------------

The relevant Issuer is at liberty from time to time without the consent of the Noteholders, the Receiptholders or the Couponholders to create and issue further notes having terms and conditions the same as the Notes or the same in all respects save for the amount and  date of the first payment of interest thereon and so that the same shall be consolidated and form a single Series with the outstanding Notes. The Trust Deed contains provisions for convening a single meeting of the Noteholders and the holders of Notes of other Series in  certain circumstances where the Trustee so decides.

|18. | Substitution
|--- | ------------

The Trustee may agree, without the consent of the Noteholders, the Receiptholders or the Couponholders, to the substitution at any time or times:

| | (i)   | of any Subsidiary of
        United Utilities PLC in place of United Utilities PLC as principal debtor,
        subject to the irrevocable and unconditional guarantee of United Utilities
        PLC; or
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                           
| | (ii)  | of any Subsidiary of UUE in place of UUE as principal debtor, subject to the irrevocable and unconditional guarantee of UUE; or                                                                           
| |       |                                                                                                                                                                                                           
| | (iii) | of any Subsidiary of UUW in place of UUW as principal debtor, subject to the irrevocable and unconditional guarantee of UUW.                                                                              

Any such substitution shall also be subject to the relevant provisions of the Trust Deed, including a provision to the effect that the Trustee shall have received confirmation in writing from each rating agency which, at the request of the relevant Issuer, shall have assigned a  credit rating to the Notes that such substitution by itself and the circumstances pertaining to the substitution will not result in a downgrading of the then current credit rating assigned to the Notes by such rating agency.

|19. | Governing Law
|--- | -------------

The Trust Deed, the Notes, the Receipts and the Coupons are governed by, and shall be construed in accordance with, English law.

|20. | Contracts (Rights of Third Parties) Act 1999
|--- | --------------------------------------------

No person shall have any right to enforce any term or condition of this Note under the Contracts (Rights of Third Parties) Act 1999 but this does not affect any right or remedy of any person which exists or is available apart from that Act.



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THE SECONDSCHEDULE

FORMS OF GLOBAL AND DEFINITIVE NOTES, RECEIPTS, COUPONS AND TALONS

PART I

FORM
  OF TEMPORARY GLOBAL NOTE

[ANY UNITED STATES PERSON (AS DEFINED IN THE INTERNAL REVENUE CODE OF THE UNITED STATES) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.]
1

[UNITED UTILITIES PLC(the “Issuer”)(incorporated with limited liability
  in England)/

UNITED UTILITIES ELECTRICITY
  PLC(the “Issuer”)(incorporated with limited liability
  in England)/

UNITED UTILITIES WATER PLC(the “Issuer”)(incorporated with limited liability
  in England)]2

TEMPORARY GLOBAL NOTE

This Note is a Temporary Global Note
  in respect of a duly authorised issue of Notes of the Issuer (the “Notes”)
  of the Nominal Amount, Specified Currency(ies) and Specified Denomination(s)
  as are specified in the Pricing Supplement applicable to the Notes (the “Pricing
  Supplement”), a copy of which is annexed hereto. References herein
  to the Conditions shall be to the Terms and Conditions of the Notes as set out
  in the First Schedule to the Trust Deed (as defined below) as supplemented,
  replaced and modified by the Pricing Supplement but, in the event of any conflict
  between the provisions of the said Conditions and the information in the Pricing
  Supplement, the Pricing Supplement will prevail. Words and expressions defined
  in the Conditions and the Trust Deed shall bear the same meanings when used
  in this Global Note. This Global Note is issued subject to, and with the benefit
  of, the Conditions and an Amended and Restated Trust Deed (such Trust Deed as
  modified and/or supplemented and/or restated from time to time, the “Trust
  Deed”) dated 4th October, 2002 and made between (inter alios)
  the Issuer and The Law Debenture Trust Corporation p.l.c. as trustee for the
  holders of the Notes.

The Issuer, subject as hereinafter
  provided and subject to and in accordance with the Conditions and the Trust
  Deed, promises to pay to the bearer hereof on each Instalment Date (if the Notes
  are repayable in instalments) and on the Maturity Date and/or on such earlier
  date(s) as all or any of the Notes represented by this Global Note may become
  due and repayable in accordance with the Conditions and the Trust Deed, the
  amount payable under the Conditions in respect of such Notes on each such date
  and to pay interest (if any) on the nominal amount of the Notes from time to
  time represented by this Global Note calculated and payable as provided in the
  Conditions and the Trust

---

|1 | This legend can be deleted
        if the Notes have an initial maturity of 365 days or less.
|- | ---------------------------------------------------------------------------------------------
|2 | Delete as applicable.                                                                        

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Deed together with any other sums
  payable under the Conditions and the Trust Deed, upon presentation and, at maturity,
  surrender of this Global Note at the specified office of the Principal Paying
  Agent at 5 Carmelite Street, London EC4Y 0PA, England or such other specified
  office as may be specified for this purpose in accordance with the Conditions
  or at the specified office of any of the other Paying Agents located outside
  the United States, its territories and possessions (except as provided in the
  Conditions) from time to time appointed by the Issuer in respect of the Notes.
  On any redemption or payment of an instalment or interest being made in respect
  of, or purchase and cancellation of, any of the Notes represented by this Global
  Note details of such redemption, payment, purchase and cancellation (as the
  case may be) shall be entered by or on behalf of the Issuer in Schedule One
  hereto and the relevant space in Schedule One hereto recording any such redemption,
  payment, purchase and cancellation (as the case may be) shall be signed by or
  on behalf of the Issuer. Upon any such redemption, payment of an instalment,
  purchase and cancellation the nominal amount of this Global Note and the Notes
  represented by this Global Note shall be reduced by the nominal amount of such
  Notes so redeemed or purchased and cancelled or the amount of such instalment.
  The nominal amount from time to time of this Global Note and of the Notes represented
  by this Global Note following any such redemption, payment of an instalment,
  purchase and cancellation as aforesaid or any exchange as referred to below
  shall be the nominal amount most recently entered in the relevant column in
  Part II, III or IV of Schedule One hereto or in Schedule Two hereto.

Payments of principal and interest
  (if any) due prior to the Exchange Date (as defined below) will only be made
  to the bearer hereof to the extent that there is presented to the Principal
  Paying Agent by Clearstream Banking, société anonyme (“Clearstream,
  Luxembourg”) or Euroclear Bank S.A./N.V. as operator of the Euroclear
  System (“Euroclear”) a certificate in or substantially in
  the form set out in Part VII of the Second Schedule to the Trust Deed to the
  effect that it has received from or in respect of a person entitled to a particular
  nominal amount of the Notes represented by this Global Note (as shown by its
  records) a certificate in or substantially in the form of Certificate “A”
  as set out in Part VII of the Second Schedule to the Trust Deed. The bearer
  of this Global Note will not (unless upon due presentation of this Global Note
  for exchange, delivery of the appropriate number of Definitive Notes (together,
  if applicable, with the Receipts, Coupons and Talons appertaining thereto in
  or substantially in the forms set out in Parts III, IV, V and VI of the Second
  Schedule to the Trust Deed) or, as the case may be, issue and delivery (or,
  as the case may be, endorsement) of the Permanent Global Note is improperly
  withheld or refused and such withholding or refusal is continuing at the relevant
  payment date) be entitled to receive any payment hereon due on or after the
  Exchange Date.

On or after the date (the “Exchange
  Date”) which is 40 days after the Issue Date this Global Note may be exchanged
  (free of charge) in whole or in part for, as specified in the Pricing Supplement,
  either Definitive Notes and (if applicable) Receipts, Coupons and/or Talons
  (on the basis that all the appropriate details have been included on the face
  of such Definitive Notes and (if applicable) Receipts, Coupons and/or Talons
  and the relevant information supplementing, replacing or modifying the Conditions
  appearing in the Pricing Supplement has been endorsed on or attached to such
  Definitive Notes) or a Permanent Global Note in or substantially in the form
  set out in Part II of the Second Schedule to the Trust Deed (together with the
  Pricing Supplement attached thereto) upon notice being given by Euroclear and/or
  Clearstream, Luxembourg acting on the instructions of any holder of an interest
  in this Global Note and subject, in the case of Definitive Notes, to such notice
  period as is specified in the Pricing Supplement. If Definitive Notes and (if
  applicable) Receipts, Coupons and/or Talons have already been issued in exchange
  for all the Notes represented for the time being by the Permanent Global Note,
  then this Global Note may only thereafter be exchanged for Definitive Notes
  and (if applicable) Receipts, Coupons and/or Talons pursuant to the terms hereof.
  Presentation of this Global Note for exchange shall be made by the bearer hereof
  on any day

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(other than a Saturday or Sunday)
  on which banks are open for business in London at the office of the Principal
  Paying Agent specified above. The Issuer shall procure that Definitive Notes
  or (as the case may be) the Permanent Global Note shall be so issued and delivered
  in exchange for only that portion of this Global Note in respect of which there
  shall have been presented to the Principal Paying Agent by Euroclear or Clearstream,
  Luxembourg a certificate in or substantially in the form set out in Part VII
  of the Second Schedule to the Trust Deed to the effect that it has received
  from or in respect of a person entitled to a particular nominal amount of the
  Notes represented by this Global Note (as shown by its records) a certificate
  in or substantially in the form of Certificate “A” as set out in
  Part VII of the Second Schedule to the Trust Deed. On an exchange of the whole
  of this Global Note, this Global Note shall be surrendered to the Principal
  Paying Agent. On an exchange of part only of this Global Note, details of such
  exchange shall be entered by or on behalf of the Issuer in Schedule Two hereto
  and the relevant space in Schedule Two hereto recording such exchange shall
  be signed by or on behalf of the Issuer, whereupon the nominal amount of this
  Global Note and the Notes represented by this Global Note shall be reduced by
  the nominal amount of this Global Note so exchanged. On any exchange of this
  Global Note for a Permanent Global Note, details of such exchange shall be entered
  by or on behalf of the Issuer in Schedule Two to the Permanent Global Note and
  the relevant space in Schedule Two thereto recording such exchange shall be
  signed by or on behalf of the Issuer.

Until the exchange of the whole of this Global Note as aforesaid, the bearer hereof shall (subject as provided in the next paragraph) in all respects (except as otherwise provided herein) be entitled to the same benefits as if he were the bearer of Definitive Notes and the relative Receipts, Coupons and/or Talons (if any) in the form(s) set out in Parts III, IV, V and VI (as applicable) of the Second Schedule to the Trust Deed.

Each person (other than Euroclear or Clearstream, Luxembourg) who is for the time being shown in the records of Euroclear or Clearstream, Luxembourg as the holder of a particular nominal amount of the Notes represented by this Global Note (in which regard any certificate or other document issued by Euroclear or Clearstream, Luxembourg as to the nominal amount of such Notes standing to the account of any person shall be conclusive and binding for all purposes save in the case of manifest error) shall be treated by the Issuer, the Trustee, the Principal Paying Agent and any other Paying Agent as the holder of such nominal amount of such Notes for all purposes other than with respect to the payment of principal and interest on such nominal amount of such Notes, the right to which shall be vested, as against the Issuer, solely in the bearer of this Global Note in accordance with and subject to the terms of this Global Note and the Trust Deed.

No rights are conferred on any person by virtue of the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Global Note, but this does not affect any right or remedy of any person which exists or is available apart from that Act.

This Global Note is governed by, and shall be construed in accordance with, English law and the Issuer submits to the jurisdiction of the English courts for all purposes in connection with this Global Note.

This Global Note shall not be valid unless authenticated by Citibank, N.A., London office, as Principal Paying Agent.

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IN WITNESS whereof the Issuer has caused this Global Note to be signed manually or in facsimile by a person duly authorised on its behalf.

Issued as of ...........................................

[UNITED UTILITIES PLC/UNITED UTILITIES ELECTRICITY PLC/UNITED UTILITIES WATER PLC]1



By: .....................................................Duly Authorised

Authenticated byCitibank, N.A., London office,as Principal Paying Agent.



By: .....................................................Authorised Signatory

---

|1 | Delete as applicable.
|- | ---------------------

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Schedule One

PART I

INTEREST PAYMENTS

|Date
      made |  | Interest
      Payment 
      Date |  | Total
      amount of
      interest payable |  | Amount
      of 
      interest paid |  | Confirmation
      ofpayment by or on 
      behalf of the 
      Issuer | 
|--------------- |  | ---------------------------------- |  | -------------------------------------------- |  | ------------------------------------ |  | ------------------------------------------------------------------------ | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 
|                |  |                                    |  |                                              |  |                                      |  |                                                                          | 

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PART II

PAYMENT OF INSTALMENT AMOUNTS

|Date
      made |  | Total
      amount of 
      Instalment 
      Amounts payable |  | Amount
      of 
      Instalment 
      Amounts paid |  | Remaining
      nominal 
      amount of this 
      Global Note 
      following such 
      payment* |  | Confirmation
      ofpayment by or on
      behalf of the Issuer | 
|--------------- |  | -------------------------------------------------------------- |  | ----------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------ |  | ---------------------------------------------------------------- | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 
|                |  |                                                                |  |                                                       |  |                                                                                                        |  |                                                                  | 

* See most recent entry in Part II, III or IV or Schedule Two in order to determine this amount.

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PART III

REDEMPTIONS

|Date
      
      made |  | Total
      amount 
      of principal 
      payable |  | Amount
      of 
      principal paid |  | Remaining
      nominal 
      amount of this 
      Global Note 
      following such
      redemption* |  | Confirmation
      of 
      redemption by or on 
      behalf of the Issuer | 
|---------------------- |  | ----------------------------------------------------- |  | ------------------------------------- |  | -------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------- | 
|                       |  |                                                       |  |                                       |  |                                                                                                          |  |                                                                              | 

| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  | 

* See
  most recent entry in Part II, III or IV or Schedule Two in order to determine
  this amount.

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PART IV

PURCHASES AND CANCELLATIONS

|Date
      Made |  | Part
      of nominal amount of 
      this Global Note 
      purchased and cancelled |  | Remaining
      nominal 
      amount of this Global 
      Note following such
      purchase and 
      cancellation* |  | Confirmation
      of purchase 
      and cancellation by or on
      behalf of the Issuer | 
|--------------- |  | -------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------ | 
|                |  |                                                                                        |  |                                                                                                                         |  |                                                                                            | 
|                |  |                                                                                        |  |                                                                                                                         |  |                                                                                            | 

| |  |  |  |  |  |  | 
| |  |  |  |  |  |  | 

| |  |  |  |  |  |  | 
| |  |  |  |  |  |  | 

| |  |  |  |  |  |  | 
| |  |  |  |  |  |  | 

| |  |  |  |  |  |  | 
| |  |  |  |  |  |  | 

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| |  |  |  |  |  |  | 

| |  |  |  |  |  |  | 
| |  |  |  |  |  |  | 

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* See
  most recent entry in Part II, III or IV or Schedule Two in order to determine
  this amount.

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Schedule Two

EXCHANGES

FOR DEFINITIVE NOTES OR PERMANENT GLOBAL NOTE

The following exchanges of a part of this Global Note for Definitive Notes or a part of a Permanent Global Note have been made:

|DateMade |  | Nominal
      amount of this 
      Global Note exchanged for 
      Definitive Notes or a part 
      of a Permanent Global 
      Note |  | Remaining
      nominal amount 
      of this Global Note 
      following such exchange* |  | Notation
      made by or on
      behalf of the Issuer | 
|-------- |  | ---------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------- |  | ------------------------------------------------------- | 
|         |  |                                                                                                                                          |  |                                                                                           |  |                                                         | 

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* See
  most recent entry in Part II, III or IV of Schedule One or in this Schedule
  Two in order to determine this amount.

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67

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PART II

FORM
  OF PERMANENT GLOBAL NOTE

[ANY UNITED STATES PERSON (AS DEFINED IN THE INTERNAL REVENUE CODE OF THE UNITED STATES) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.]1

[UNITED UTILITIES PLC(the “Issuer”)(incorporated with limited liability
  in England)/

UNITED UTILITIES ELECTRICITY
  PLC(the “Issuer”)(incorporated with limited liability
  in England)/

UNITED UTILITIES WATER PLC(the “Issuer”)(incorporated with limited liability
  in England)]2

PERMANENT  GLOBAL NOTE

This Note is a Permanent Global Note in respect of a duly authorised issue of Notes of the Issuer (the “Notes”) of the Nominal Amount, Specified Currency(ies) and Specified Denomination(s) as are specified in the Pricing Supplement applicable to the Notes (the “Pricing Supplement”), a copy of which is annexed hereto.  References herein to the Conditions shall be to the Terms and Conditions of the Notes as set out in the First Schedule to the Trust Deed (as defined below) as supplemented, replaced and modified by the Pricing Supplement but, in the event of any conflict between the provisions of the said Conditions and the information in the Pricing Supplement, the Pricing Supplement will prevail.  Words and expressions defined in the Conditions shall bear the same meanings when used in this Global Note.  This Global Note is issued subject to, and with the benefit of, the Conditions and an Amended and Restated Trust Deed
(such Trust Deed as modified and/or supplemented and/or restated from time to time, the “Trust Deed”) dated 4th October, 2002 and made between (inter alios) the Issuer and The Law Debenture Trust Corporation p.l.c. as trustee for the holders of the Notes.

The Issuer, subject to and in accordance
  with the Conditions and the Trust Deed, promises to pay to the bearer hereof
  on each Instalment Date (if the Notes are repayable in instalments) and on the
  Maturity Date and/or on such earlier date(s) as all or any of the Notes represented
  by this Global Note may become due and repayable in accordance with the Conditions
  and the Trust Deed, the amount payable under the Conditions in respect of such
  Notes on each such date and to pay interest (if any) on the nominal amount of
  the Notes from time to time represented by this Global Note calculated and payable
  as provided in the Conditions and the Trust Deed together with any other sums
  payable under the Conditions and the Trust Deed, upon presentation and, at maturity,
  surrender of this Global Note at the specified office of the Principal Paying
  Agent at 5 Carmelite Street,

---

|1 | This legend can be deleted if the Notes have
      an initial maturity of 365 days or less.
|- | -------------------------------------------------------------------------------------------
|2 | Delete as applicable.                                                                      



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London EC4Y 0PA, England or such other
  specified office as may be specified for this purpose in accordance with the
  Conditions or at the specified office of any of the other Paying Agents located
  outside the United States, its territories and possessions (except as provided
  in the Conditions) from time to time appointed by the Issuer in respect of the
  Notes. On any redemption or payment of an instalment or interest being made
  in respect of, or purchase and cancellation of, any of the Notes represented
  by this Global Note details of such redemption, payment, purchase and cancellation
  (as the case may be) shall be entered by or on behalf of the Issuer in Schedule
  One hereto and the relevant space in Schedule One hereto recording any such
  redemption, payment, purchase and cancellation (as the case may be) shall be
  signed by or on behalf of the Issuer. Upon any such redemption, payment of an
  instalment, purchase and cancellation the nominal amount of this Global Note
  and the Notes represented by this Global Note shall be reduced by the nominal
  amount of such Notes so redeemed or purchased and cancelled or the amount of
  such instalment. The nominal amount from time to time of this Global Note and
  of the Notes represented by this Global Note following any such redemption,
  payment of an instalment, purchase and cancellation as aforesaid or any exchange
  as referred to below shall be the nominal amount most recently entered in the
  relevant column in Part II, III or IV of Schedule One hereto or in Schedule
  Two hereto.

[On any exchange of the Temporary Global Note issued in respect of the Notes for this Global Note or any part hereof, details of such exchange shall be entered by or on behalf of the Issuer in Schedule Two hereto and the relevant space in Schedule Two hereto recording such exchange shall be signed by or on behalf of the Issuer, whereupon the nominal amount of this Global Note and the Notes represented by this Global Note shall be increased by the nominal amount of the Temporary Global Note so exchanged.]1

[Upon any further Tranche of Notes of this Series being issued, details of such increase in the size of the Series shall be entered by or on behalf of the Issuer in Schedule Two hereto and the relevant space in Schedule Two hereto recording such increase shall be signed by or on behalf of the Issuer, whereupon the nominal amount of this Global Note and the Notes represented by this Global Note shall be increased by the nominal of such further Tranche.]2

This Global Note may be exchanged (free of charge) in whole, but not in part, for Definitive Notes and (if applicable) Receipts, Coupons and/or Talons in or substantially in the forms set out in Parts III, IV, V and VI of the Second Schedule to the Trust Deed (on the basis that all the appropriate details have been included on the face of such Definitive Notes and (if applicable) Receipts, Coupons and/or Talons and the relevant information supplementing, replacing or modifying the Conditions appearing in the Pricing Supplement has been endorsed on or attached to such Definitive Notes) either, as specified in the applicable Pricing Supplement:

|(i) | upon not less than 60 days’ written notice being given to the Principal Paying Agent by Euroclear Bank S.A./N.V. as operator of the Euroclear System (“Euroclear”) and/or Clearstream Banking, société anonyme (“Clearstream, Luxembourg”) (acting on the instructions of any holder of an interest in this Global Note); or
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|     |                                                
|---- | -----------------------------------------------
|(ii) | upon the occurrence of an Exchange
      Event.

| |                                 
| | --------------------------------
| | An “Exchange Event”
      means:

| |     |                                                          
| | --- | ---------------------------------------------------------
| | (1) | an Event of Default has occurred
      and is continuing;

---

|1 | Delete where the issue is made in accordance
      with TEFRA C.
|- | ----------------------------------------------------------------
|2 | Delete where the issue is made in accordance
      with TEFRA D.



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| | (2) | the Issuer has been notified that both Euroclear and Clearstream, Luxembourg have been closed for business for a continuous period of 14 days (other than by reason of holiday, statutory or otherwise) or have announced an intention permanently to cease business or have in fact done so and no alternative clearing system satisfactory to the Trustee is available; or
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |     |                                                                                                                                                                                         
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (3) | the Issuer has or will become
      obliged to pay additional amounts as provided for or referred to in Condition 7
      which would not be required were the Notes in definitive form.

If this Global Note is exchangeable following the occurrence of an Exchange Event:

| | (i) | the Issuer will promptly give notice to Noteholders in accordance with Condition 15 upon the occurrence of such Exchange Event; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) | Euroclear and/or Clearstream,
      Luxembourg (acting on the instructions of any holder of an interest in this
      Global Note) or the Trustee may give notice to the Principal Paying Agent
      requesting exchange and, in the event of the occurrence of an Exchange Event
      as described in (3) above, the Issuer may also give notice to the Principal
      Paying Agent requesting exchange. Any such exchange shall occur on a date
      specified in the notice not more than 60 days after the date of receipt
      of the first relevant notice by the Principal Paying Agent.

The first notice requesting exchange in accordance with the above provisions shall give rise to the issue of Definitive Notes for the total nominal amount of Notes represented by this Global Note.

Any such exchange as aforesaid will be made upon presentation of this Global Note by the bearer hereof on any day (other than a Saturday or Sunday) on which banks are open for business in London at the office of the Principal Paying Agent specified above.

The aggregate nominal amount of Definitive Notes issued upon an exchange of this Global Note will be equal to the aggregate nominal amount of this Global Note.  Upon exchange of this Global Note for Definitive Notes, the Principal Paying Agent shall cancel it or procure that it is cancelled.

Until the exchange of the whole of this Global Note as aforesaid, the bearer hereof shall (subject as provided in the next paragraph) in all respects be entitled to the same benefits as if he were the bearer of Definitive Notes and the relative Receipts, Coupons and/or Talons (if any) in the form(s) set out in Parts III, IV, V and VI (as applicable) of the Second Schedule to the Trust Deed.

Each person (other than Euroclear or Clearstream, Luxembourg) who is for the time being shown in the records of Euroclear or Clearstream, Luxembourg as the holder of a particular nominal amount of the Notes represented by this Global Note (in which regard any certificate or other document issued by Euroclear or Clearstream, Luxembourg as to the nominal amount of such Notes standing to the account of any person shall be conclusive and binding for all purposes save in the case of manifest error) shall be treated by the Issuer, the Trustee, the Principal Paying Agent and any other Paying Agent as the holder of such nominal amount of such Notes for all purposes other than with respect to the payment of principal and interest on such nominal amount of such Notes, the right to which shall be vested, as against the Issuer, solely in the bearer of this Global Note in accordance with and subject to the terms of this Global Note and the Trust Deed.

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No rights are conferred on any person by virtue of the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Global Note, but this does not affect any right or remedy of any person which exists or is available apart from that Act.

This Global Note is governed by, and shall be construed in accordance with, English law and the Issuer submits to the jurisdiction of the English courts for all purposes in connection with this Global Note.

This Global Note shall not be valid unless authenticated by Citibank, N.A., London office, as Principal Paying Agent.

IN WITNESS whereof the Issuer has caused this Global Note to be signed manually or in facsimile by a person duly authorised on its behalf.

Issued as of............................................

[UNITED UTILITIES PLC/UNITED UTILITIES ELECTRICITY PLC/UNITED UTILITIES WATER PLC]1



|By: .....................................................
|---------------------------------------------------------
|                                                         

Authenticated byCitibank, N.A., London office,as Principal Paying Agent.



|By: .....................................................
|---------------------------------------------------------
|                                                         



---

|1 | Delete as applicable.
|- | ---------------------

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Schedule One

PART I

INTEREST PAYMENTS

|Date made |  | Interest Payment
      Date |  | Total amount of
      interest payable |  | Amount of
      interest paid |  | Confirmation of
      payment by or on
      behalf of the
      Issuer | 
|--------- |  | --------------------------- |  | -------------------------------------- |  | ----------------------------- |  | ----------------------------------------------------------------------- | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 
|          |  |                             |  |                                        |  |                               |  |                                                                         | 



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PART II

PAYMENT OF INSTALMENT AMOUNTS

|Datemade |  | Total amountof Instalment 
      Amounts payable |  | Amount ofInstalment 
      Amounts paid |  | Remaining nominal
      
      amount of this 
      Global Note
      following such 
      payment * |  | Confirmation of
      
      payment by or on behalf 
      of the Issuer
|-------- |  | ------------------------------------------------ |  | --------------------------------------- |  | ------------------------------------------------------------------------------------------------------ |  | -------------------------------------------------------------------------
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
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|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
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|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          
|         |  |                                                  |  |                                         |  |                                                                                                        |  |                                                                          

* See most recent entry in Part II, III or IV or Schedule Two in order to determine this amount.

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PART III

REDEMPTION

|Datemade |  | Total amountof principalpayable |  | Amount ofprincipal paid |  | Remaining nominal
      
      amount of this 
      Global Note 
      following such
      redemption |  | Confirmation of
      
      redemption by or on 
      behalf of the Issuer
|-------- |  | ------------------------------- |  | ----------------------- |  | ------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------
|         |  |                                 |  |                         |  |                                                                                                         |  |                                                                             
|         |  |                                 |  |                         |  |                                                                                                         |  |                                                                             
|         |  |                                 |  |                         |  |                                                                                                         |  |                                                                             
|         |  |                                 |  |                         |  |                                                                                                         |  |                                                                             
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|         |  |                                 |  |                         |  |                                                                                                         |  |                                                                             
|         |  |                                 |  |                         |  |                                                                                                         |  |                                                                             
|         |  |                                 |  |                         |  |                                                                                                         |  |                                                                             
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|         |  |                                 |  |                         |  |                                                                                                         |  |                                                                             
|         |  |                                 |  |                         |  |                                                                                                         |  |                                                                             
|         |  |                                 |  |                         |  |                                                                                                         |  |                                                                             
|         |  |                                 |  |                         |  |                                                                                                         |  |                                                                             
|         |  |                                 |  |                         |  |                                                                                                         |  |                                                                             
|         |  |                                 |  |                         |  |                                                                                                         |  |                                                                             
|         |  |                                 |  |                         |  |                                                                                                         |  |                                                                             
|         |  |                                 |  |                         |  |                                                                                                         |  |                                                                             
|         |  |                                 |  |                         |  |                                                                                                         |  |                                                                             
|         |  |                                 |  |                         |  |                                                                                                         |  |                                                                             
|         |  |                                 |  |                         |  |                                                                                                         |  |                                                                             

* See most recent entry in Part II, III or IV or Schedule Two in order to determine this amount.

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PART IV

PURCHASES AND CANCELLATIONS

|Datemade |  | Part of nominal
      amount of 
      this Global Note
      purchased and cancelled |  | Remaining nominal
      
      amount of this Global 
      Note following such 
      purchase and cancellation |  | Confirmation of
      purchase 
      and cancellation by or on 
      behalf of the Issuer
|-------- |  | ------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------
|         |  |                                                                                       |  |                                                                                                                  |  |                                                                                            
|         |  |                                                                                       |  |                                                                                                                  |  |                                                                                            
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|         |  |                                                                                       |  |                                                                                                                  |  |                                                                                            
|         |  |                                                                                       |  |                                                                                                                  |  |                                                                                            
|         |  |                                                                                       |  |                                                                                                                  |  |                                                                                            
|         |  |                                                                                       |  |                                                                                                                  |  |                                                                                            
|         |  |                                                                                       |  |                                                                                                                  |  |                                                                                            
|         |  |                                                                                       |  |                                                                                                                  |  |                                                                                            
|         |  |                                                                                       |  |                                                                                                                  |  |                                                                                            
|         |  |                                                                                       |  |                                                                                                                  |  |                                                                                            

* See most recent entry in Part II, III or IV or Schedule Two in order to determine this amount.

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Schedule Two

[EXCHANGES]1 [INCREASES]2

|Date made |  | [Nominal amount
      
      of Temporary 
      Global Note 
      exchanged for this 
      Global Note]1 |  | [Amount of increase
      in 
      nominal amount of this 
      Global Note following
      issue of further 
      Tranche]2 |  | Nominal amount
      of this 
      Global Note following 
      such [exchange]1
      [increase]2* |  | Notation 
      made by or 
      on behalf of 
      the Issuer
|--------- |  | ----------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
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|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
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|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
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|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 
|          |  |                                                                                                             |  |                                                                                                                                 |  |                                                                                                      |  |                                                                 

* See most recent entry in Part II, III or IV of Schedule One or in this Schedule Two in order to determine this amount.

---

|1 | Delete where the issue is made in accordance with TEFRA C.
|- | ----------------------------------------------------------
|2 | Delete where the issue is made in accordance with TEFRA D.

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PART III

FORM
  OF DEFINITIVE NOTE

[ANY UNITED STATES PERSON (AS DEFINED
  IN THE INTERNAL REVENUE CODE OF THE UNITED STATES) WHO HOLDS THIS OBLIGATION
  WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING
  THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE
  CODE.]1

[UNITED UTILITIES PLC(the “Issuer”)(incorporated with limited liability
  in England)/

UNITED UTILITIES ELECTRICITY
  PLC(the “Issuer”)(incorporated with limited liability
  in England)/

UNITED UTILITIES WATER PLC(the “Issuer”)(incorporated with limited liability
  in England)]2

[Specified Currency and Nominal
  Amount of Tranche]NOTES DUE[Year of Maturity]

This Note is one of a Series of Notes
  of [Specified Currency(ies) and Specified Denomination(s)] each of the Issuer
  (“Notes”). References herein to the Conditions shall be to
  the Terms and Conditions [endorsed hereon/set out in the First Schedule to the
  Trust Deed (as defined below) which shall be incorporated by reference herein
  and have effect as if set out herein] as supplemented, replaced and modified
  by the relevant information (appearing in the Pricing Supplement (the “Pricing
  Supplement”)) endorsed hereon but, in the event of any conflict between
  the provisions of the said Conditions and such information in the Pricing Supplement,
  such information will prevail. Words and expressions defined in the Conditions
  shall bear the same meanings when used in this Note. This Note is issued subject
  to, and with the benefit of, the Conditions and an Amended and Restated Trust
  Deed (such Trust Deed as modified and/or supplemented and/or restated from time
  to time, the “Trust Deed”) dated 4th October, 2002 and made
  between (inter alios) the Issuer and The Law Debenture Trust Corporation
  p.l.c. as trustee for the holders of the Notes.

The Issuer, subject to and in accordance
  with the Conditions and the Trust Deed, promises to pay to the bearer hereof
  on [each Instalment Date and] the Maturity Date or on such earlier date as this
  Note may become due and repayable in accordance with the Conditions and the
  Trust Deed, the amount payable on redemption of this Note and to pay interest
  (if any) on the nominal amount of this Note calculated and payable as provided
  in the Conditions and the Trust Deed together with any other sums payable under
  the Conditions and the Trust Deed.

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|1 | This legend can be deleted if the Notes have an initial
      maturity of 365 days or less.
|- | -------------------------------------------------------------------------------------------
|2 | Delete as applicable.                                                                      



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This Note shall not be valid unless authenticated by Citibank, N.A., London office, as Principal Paying Agent.

IN WITNESS whereof this Note has been executed on behalf of the Issuer.

Issued as of ..........................................

[UNITED UTILITIES PLC/UNITED UTILITIES ELECTRICITY PLC/UNITED UTILITIES WATER PLC]1

By: .....................................................
                    DulySignatory

Authenticated byCitibank, N.A., London office,as Principal Paying Agent.

By: .....................................................Authorised Signatory

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|1 | Delete as applicable.
|- | ---------------------

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[Conditions]

[Conditions to be as set out in the First Schedule to this Trust Deed or such other form as may be agreed between the relevant Issuer, the Principal Paying Agent, the Trustee and the relevant Dealer(s), but shall not be endorsed if not required by the relevant Stock Exchange]

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Pricing Supplement[Here to be set out the text of the relevant
  information supplementing,replacing or modifying the Conditions which
  appears in the PricingSupplement relating to the Notes]

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PART IV

FORM
  OF RECEIPT

[UNITED UTILITIES PLC/UNITED UTILITIES ELECTRICITY PLC/UNITED UTILITIES WATER PLC]1

[Specified Currency and Nominal Amount of Tranche]

NOTES DUE

[Year of Maturity]

Series No. [       ]

Receipt for the sum of [       ]
  being the instalment of principal payable in accordance with the Terms and Conditions
  applicable to the Note to which this Receipt appertains (the “Conditions”)
  on [           ].

This Receipt is issued subject to and in accordance with the Conditions which shall be binding upon the holder of this Receipt (whether or not it is for the time being attached to such Note) and is payable at the specified office of any of the Paying Agents set out on the reverse of the Note to which this Receipt appertains (and/or any other or further Paying Agents and/or specified offices as may from time to time be duly appointed and notified to the Noteholders).

This Receipt must be presented for payment together with the Note to which it appertains.  The Issuer shall have no obligation in respect of any Receipt presented without the Note to which it appertains or any unmatured Receipts.

ANY UNITED STATES PERSON (AS DEFINED IN THE INTERNAL REVENUE CODE OF THE UNITED STATES) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

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|- | ---------------------

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PART V

FORM
  OF COUPON

On the front:

[UNITED UTILITIES PLC/UNITED UTILITIES ELECTRICITY PLC/UNITED UTILITIES WATER PLC]1

[Specified Currency and Nominal
  Amount of Tranche]NOTES DUE[Year of Maturity]

Series No. [       ]

[Coupon appertaining to a Note in
  the denomination of [Specified Currency and Specified Denomination]].2

Part A

[For Fixed Rate Notes:

|This Coupon is payable to
        bearer, separately
      negotiable and subject to
        the Terms and
      Conditions of the said Notes. | Coupon for
      [          ]
      due on [       ],
        [      ]]
|---------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------

Part B

[For Floating Rate Notes or Index Linked Interest Notes:

|Coupon for the amount due
        in accordance with
      the Terms and Conditions endorsed
        on,
      attached to or incorporated
        by reference
      into the said Notes on [the
        Interest Payment
      Date falling in [     ]
        [     ]/[   ]]. | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|                                                                                                                                                                                                                                                                                 | 
|This Coupon is payable to
        bearer, separately
      negotiable and subject to
        such Terms and
      Conditions, under which it
        may become void
      before its due date.]                                                                                 | 

ANY UNITED STATES PERSON (AS DEFINED IN THE INTERNAL REVENUE CODE OF THE UNITED STATES) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

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|1 | Delete as applicable.                                   
|- | --------------------------------------------------------
|2 | Delete where the Notes are all of the same denomination.

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PART VI

FORM
  OF TALON

On the front:

[UNITED UTILITIES PLC/UNITED UTILITIES ELECTRICITY PLC/UNITED UTILITIES WATER PLC]1

[Specified Currency and Nominal
  Amount of Tranche]NOTES DUE[Year of Maturity]

Series No. [       ]

[Talon appertaining to a Note in the
  denomination of [Specified Currency and Specified Denomination]]2.

On and after [              ]
  further Coupons [and a further Talon]3 appertaining to the Note to
  which this Talon appertains will be issued at the specified office of any of
  the Paying Agents set out on the reverse hereof (and/or any other or further
  Paying Agents and/or specified offices as may from time to time be duly appointed
  and notified to the Noteholders) upon production and surrender of this Talon.

This Talon may, in certain circumstances, become void under the Terms and Conditions endorsed on the Note to which this Talon appertains.

ANY UNITED STATES PERSON (AS DEFINED IN THE INTERNAL REVENUE CODE OF THE UNITED STATES) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

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|1 | Delete as applicable.                                   
|- | --------------------------------------------------------
|2 | Delete where the Notes are all of the same denomination.
|3 | Not required on last Coupon sheet.                      

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On the back of Receipts, Coupons and Talons:

PRINCIPAL PAYING AGENT

Citibank, N.A.5 Carmelite Street,London EC4Y 0PA

PAYING AGENT

Banque Paribas Luxembourg10A Boulevard RoyalL-2449 Luxembourg

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PART VII

FORM OF CERTIFICATE TO BE PRESENTED
  BY
  EUROCLEAR OR CLEARSTREAM, LUXEMBOURG

[UNITED UTILITIES PLC/UNITED UTILITIES ELECTRICITY PLC/UNITED UTILITIES WATER PLC]1

[Title of Notes]

(the “Securities”)

This is to certify that, based solely
  on certifications we have received in writing, by tested telex or by electronic
  transmission from member organisations appearing in our records as persons being
  entitled to a portion of the nominal amount set forth below (our “Member
  Organisations”) substantially to the effect set forth in the temporary Global
  Note representing the Securities, as of the date hereof, [       ]
  nominal amount of the above-captioned Securities (i) is owned by persons that
  are not citizens or residents of the United States, domestic partnerships, domestic
  corporations or any estate or trust the income of which is subject to United
  States Federal income taxation regardless of its source (“United States persons”),
  (ii) is owned by United States persons that (a) are foreign branches of United
  States financial institutions (as defined in U.S. Treasury Regulations Sections
  1.165-12(c)(1)(v) (“financial institutions”) purchasing for their own account
  or for resale, or (b) acquired the Securities through foreign branches of United
  States financial institutions and who hold the Securities through such United
  States financial institutions on the date hereof (and in either case (a) or
  (b), each such United States financial institution has agreed, on its own behalf
  or through its agent, that we may advise the Issuer or the Issuer's agent that
  it will comply with the requirements of Section 165(j)(3)(A), (B) or (C) of
  the Internal Revenue Code of 1986, as amended, and the regulations thereunder),
  or (iii) is owned by United States or foreign financial institutions for purposes
  of resale during the restricted period (as defined in U.S. Treasury Regulations
  Section 1.163-5(c)(2)(i)(D)(7)), and to the further effect that United States
  or foreign financial institutions described in Clause (iii) above (whether
  or not also described in Clause (i) or (ii)) have certified that they have
  not acquired the Securities for purposes of resale directly or indirectly to
  a United States person or to a person within the United States or its possessions.

If the Securities are of the category contemplated in Section 230.903(c)(3) of Regulation S under the Securities Act of 1933, as amended, then this is also to certify with respect to such principal amount of Securities set forth above that, except as set forth below, we have received in writing, by tested telex or by electronic transmission, from our Member Organisations entitled to a portion of such principal amount, certifications with respect to such portion, substantially to the effect set forth in the temporary Global Note representing the Securities.

We further certify (i) that we are
  not making available herewith for exchange (or, if relevant, exercise of any
  rights or collection of any interest) any portion of the temporary Global Note
  excepted in such certifications and (ii) that as of the date hereof we have
  not received any notification from any of our Member Organisations to the effect
  that the statements made by such Member Organisations with

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|- | ---------------------

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respect to any portion of the part
  submitted herewith for exchange (or, if relevant, exercise of any rights or
  collection of any interest) are no longer true and cannot be relied upon as
  of the date hereof.

We understand that this certification is required in connection with certain tax laws and, if applicable, certain securities laws of the United States.  In connection therewith, if administrative or legal proceedings or official enquiries are commenced or threatened in connection with which this certification is or would be relevant, we irrevocably authorise you to produce this certification to any interested party in such proceedings or enquiries.

Dated: , 200 1

Yours faithfully,

Euroclear Bank S.A./N.V.as operator of the EuroclearSystem]

or

[Clearstream, Luxembourg, société anonyme]

By:...............................

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|1 | To be dated no earlier than the
        date to which this certification relates, namely (a) the payment date
        or (b) the Exchange Date.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------

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CERTIFICATE “A”

[UNITED UTILITIES PLC/UNITED UTILITIES ELECTRICITY PLC/UNITED UTILITIES WATER PLC]1

[Title of Notes]

(the “Securities”)

This is to certify that as of the
  date hereof, and except as set forth below, the above-captioned Securities held
  by you for our account (i) are owned by person(s) that are not citizens or residents
  of the United States, domestic partnerships, domestic corporations or any estate
  or trust the income of which is subject to United States Federal income taxation
  regardless of its source (“United States person(s)”), (ii) are owned
  by United States person(s) that (a) are foreign branches of United States financial
  institutions (as defined in U.S. Treasury Regulations Section 1.165-12(c)(1)(v))
  (“financial institutions”) purchasing for their own account or for
  resale, or (b) acquired the Securities through foreign branches of United States
  financial institutions and who hold the Securities through such United States
  financial institutions on the date hereof (and in either case (a) or (b), each
  such United States financial institution hereby agrees, on its own behalf or
  through its agent, that you may advise the Issuer or the Issuer’s agent
  that it will comply with the requirements of Section 165(j)(3)(A), (B) or (C)
  of the Internal Revenue Code of 1986, as amended, and the regulations thereunder),
  or (iii) are owned by United States or foreign financial institution(s) for
  purposes of resale during the restricted period (as defined in U.S. Treasury
  Regulations Section 1.163-5(c)(2)(i)(D)(7)), and in addition if the owner of
  the Securities is a United States or foreign financial institution described
  in Clause (iii) above (whether or not also described in Clause (i)
  or (ii)) this is to further certify that such financial institution has not
  acquired the Securities for purposes of resale directly or indirectly to a United
  States person or to a person within the United States or its possessions.

If the Securities are of the category
  contemplated in Section 230.903(c)(2) of Regulation S under the Securities Act
  of 1933, as amended, (the “Act”) then this is also to certify that,
  except as set forth below, the Securities are beneficially owned by (a) non-U.S.
  person(s) or (b) U.S. person(s) who purchased the Securities in transactions
  which did not require registration under the Act. As used in this paragraph,
  the term “U.S. person” has the meaning given to it by Regulation
  S under the Act.

As used herein, “United States”
  means the United States of America (including the States and the District of
  Columbia); and its “possessions” include Puerto Rico, the U.S. Virgin
  Islands, Guam, American Samoa, Wake Island and the Northern Mariana Islands.

We undertake to advise you promptly by tested telex on or prior to the date on which you intend to submit your certification relating to the Securities held by you for our account in accordance with your operating procedures if any applicable statement herein is not correct on such date, and in the absence of any such notification it may be assumed that this certification applies as of such date.

This certification excepts and does
  not relate to [       ] of such interest
  in the above Securities in respect of which we are not able to certify and as
  to which we understand exchange and delivery of

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|- | ---------------------

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definitive Securities (or, if relevant,
  exercise of any right or collection of any interest) cannot be made until we
  do so certify.

We understand that this certification is required in connection with certain tax laws and, if applicable, certain securities laws of the United States.  In connection therewith, if administrative or legal proceedings or official enquiries are commenced or threatened in connection with which this certification is or would be relevant, we irrevocably authorise you to produce this certification to any interested party in such proceedings or enquiries.

Dated:        
  , 200  1

Name of person making certification

|By:
      .................................................
|-----------------------------------------------------------

---

|1 | To be dated no earlier than
        the fifteenth day prior to the date to which this certification relates,
        namely (a) the payment date or (b) the Exchange Date.
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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THE THIRDSCHEDULE

PROVISIONS FOR MEETINGS OF NOTEHOLDERS

|1. | (A) | As used in this Schedule the following
      expressions shall have the following meanings unless the context otherwise
      requires:
|-- | --- | ---------------------------------------------------------------------------------------------------------------------------------------

| |  |     |                                                                                                                                      
| |  | --- | -------------------------------------------------------------------------------------------------------------------------------------
| |  | (i) | “voting certificate”
      shall mean an English language certificate issued by a Paying Agent and
      dated in which it is stated:

| |  |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  |  | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (a) | that on the date thereof Notes
      (whether in definitive form or represented by a Global Note and not being
      Notes in respect of which a block voting instruction has been issued and
      is outstanding in respect of the meeting specified in such voting certificate
      or any adjourned such meeting) were deposited with such Paying Agent or
      (to the satisfaction of such Paying Agent) were held to its order or under
      its control or blocked in an account with a clearing system and that no
      such Notes will cease to be so deposited or held or blocked until the first
      to occur of:

| |  |  |  |     |                                                                                                                         
| |  |  |  | --- | ------------------------------------------------------------------------------------------------------------------------
| |  |  |  | (1) | the conclusion of the meeting
      specified in such certificate or, if later, of any adjourned such meeting;
      and

| |  |  |  |     |                                                                                    
| |  |  |  | --- | -----------------------------------------------------------------------------------
| |  |  |  | (2) | the surrender of the certificate
      to the Paying Agent who issued the same; and

| |  |  |     |                                                                                                                                                                           
| |  |  | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (b) | that the bearer thereof is entitled
      to attend and vote at such meeting and any adjourned such meeting in respect
      of the Notes represented by such certificate;

| |  |      |                                                                                                                            
| |  | ---- | ---------------------------------------------------------------------------------------------------------------------------
| |  | (ii) | “block voting instruction”
      shall mean an English language document issued by a Paying Agent and dated
      in which:

| |  |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  |  | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (a) | it is certified that Notes (whether
      in definitive form or represented by a Global Note and not being Notes in
      respect of which a voting certificate has been issued and is outstanding
      in respect of the meeting specified in such block voting instruction and
      any adjourned such meeting) have been deposited with such Paying Agent or
      (to the satisfaction of such Paying Agent) were held to its order or under
      its control or blocked in an account with a clearing system and that no
      such Notes will cease to be so deposited or held or blocked until the first
      to occur of:

| |  |  |  |     |                                                                                                                      
| |  |  |  | --- | ---------------------------------------------------------------------------------------------------------------------
| |  |  |  | (1) | the conclusion of the meeting
      specified in such document or, if later, of any adjourned such meeting;
      and

| |  |  |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  |  |  | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  |  | (2) | the surrender to the Paying
      Agent not less than 48 hours before the time for which such meeting
      or any adjourned such meeting is convened of the receipt issued by such
      Paying Agent in respect of each such deposited Note which is to be released
      or (as the case may require) the Note or Notes ceasing with the agreement
      of the Paying Agent to be held to its order or under its control or so blocked
      and the giving of notice by the Paying Agent to the relevant Issuer in

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| |  |  |  |  | accordance with paragraph 17
      hereof of the necessary amendment to the block voting instruction;
| |  |  |  |  | -----------------------------------------------------------------------------------------------------

| |  |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |  |  | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (b) | it is certified that each holder
      of such Notes or a duly authorised agent on his behalf has instructed such
      Paying Agent that the vote(s) attributable to the Note or Notes so deposited
      or held or blocked should be cast in a particular way in relation to the
      resolution or resolutions to be put to such meeting or any adjourned such
      meeting and that all such instructions are during the period commencing
      48 hours prior to the time for which such meeting or any adjourned
      such meeting is convened and ending at the conclusion or adjournment thereof
      neither revocable nor capable of amendment;

| |  |  |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  |  | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (c) | the aggregate principal amount
      of the Notes so deposited or held or blocked are listed distinguishing with
      regard to each such resolution between those in respect of which instructions
      have been given as aforesaid that the votes attributable thereto should
      be cast in favour of the resolution and those in respect of which instructions
      have been so given that the votes attributable thereto should be cast against
      the resolution; and

| |  |  |     |                                                                                                                                                                                                                                                                                                                
| |  |  | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (d) | one or more persons named in
      such document (each hereinafter called a “proxy”) is
      or are authorised and instructed by such Paying Agent to cast the votes
      attributable to the Notes so listed in accordance with the instructions
      referred to in (c) above as set out in such document;

| |  |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |  | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (iii) | “24 hours”
      shall mean a period of 24 hours including all or part of a day upon which
      banks are open for business in both the place where the relevant meeting
      is to be held and in each of the places where the Paying Agents have their
      specified offices (disregarding for this purpose the day upon which such
      meeting is to be held) and such period shall be extended by one period or,
      to the extent necessary, more periods of 24 hours until there is included
      as aforesaid all or part of a day upon which banks are open for business
      in all of the places as aforesaid; and

| |  |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (iv) | “48 hours”
      shall mean a period of 48 hours including all or part of two days upon which
      banks are open for business both in the place where the relevant meeting
      is to be held and in each of the places where the Paying Agents have their
      specified offices (disregarding for this purpose the day upon which such
      meeting is to be held) and such period shall be extended by one period or,
      to the extent necessary, more periods of 24 hours until there is included
      as aforesaid all or part of two days upon which banks are open for business
      in all of the places as aforesaid.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (B) | A holder of a Note (whether
        in definitive form or represented by a Global Note) may obtain a voting
        certificate in respect of such Note from a Paying Agent or require a Paying
        Agent to issue a block voting instruction in respect of such Note by depositing
        such Note with such Paying Agent or (to the satisfaction of such Paying
        Agent) by such Note being held to its order or under its control or being
        blocked in an account with a clearing system, in each case not less than
        48 hours before the time fixed for the relevant meeting and on the terms
        set out in sub-paragraph (A)(i)(a) or (A)(ii)(a) above (as the case may
        be), and (in the case of a block voting instruction) instructing such
        Paying Agent to the effect set out in sub-paragraph (A)(ii)(b) above.
        The holder of any voting certificate or the proxies named in any block
        voting

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | instruction shall for all purposes
      in connection with the relevant meeting or adjourned meeting of Noteholders
      be deemed to be the holder of the Notes to which such voting certificate
      or block voting instruction relates and the Paying Agent with which such
      Notes have been deposited or the person holding the same to the order or
      under the control of such Paying Agent or the clearing system in which such
      Notes have been blocked shall be deemed for such purposes not to be the
      holder of those Notes.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|2. | The relevant Issuer
      or the Trustee may at any time and the relevant Issuer shall upon a requisition
      in writing in the English language signed by the holders of not less than
      one-tenth in nominal amount of the Notes for the time being outstanding
      convene a meeting of the Noteholders and if the relevant Issuer makes default
      for a period of seven days in convening such a meeting the same may be convened
      by the Trustee or the requisitionists. Every such meeting shall be held
      at such time and place as the Trustee may appoint or approve.

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3. | At least 21 days’ notice
      (exclusive of the day on which the notice is given and the day on which
      the meeting is to be held) specifying the place, day and hour of meeting
      shall be given to the holders of the relevant Notes prior to any meeting
      of such holders in the manner provided by Condition 15. Such notice,
      which shall be in the English language, shall state generally the nature
      of the business to be transacted at the meeting thereby convened but (except
      for an Extraordinary Resolution) it shall not be necessary to specify in
      such notice the terms of any resolution to be proposed. Such notice shall
      include statements, if applicable, to the effect that Notes may, not less
      than 48 hours before the time fixed for the meeting, be deposited with Paying
      Agents or (to their satisfaction) held to their order or under their control
      or blocked in an account with a clearing system for the purpose of obtaining
      voting certificates or appointing proxies. A copy of the notice shall be
      sent by post to the Trustee (unless the meeting is convened by the Trustee),
      to the relevant Issuer (unless the meeting is convened by the relevant Issuer).

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|4. | A person (who may but need not
      be a Noteholder) nominated in writing by the Trustee shall be entitled to
      take the chair at the relevant meeting or adjourned meeting but if no such
      nomination is made or if at any meeting or adjourned meeting the person
      nominated shall not be present within 15 minutes after the time appointed
      for holding the meeting or adjourned meeting the Noteholders present shall
      choose one of their number to be Chairman, failing which the relevant Issuer
      may appoint a Chairman. The Chairman of an adjourned meeting need not be
      the same person as was Chairman of the meeting from which the adjournment
      took place.

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|5. | At any such meeting one or more
      persons present holding Definitive Notes or voting certificates or being
      proxies and holding or representing in the aggregate not less than one-tenth
      of the nominal amount of the Notes for the time being outstanding shall
      (except for the purpose of passing an Extraordinary Resolution) form a quorum
      for the transaction of business and no business (other than the choosing
      of a Chairman) shall be transacted at any meeting unless the requisite quorum
      be present at the commencement of the relevant business. The quorum at any
      such meeting for passing an Extraordinary Resolution shall (subject as provided
      below) be one or more persons present holding Definitive Notes or voting
      certificates or being proxies and holding or representing in the aggregate
      a clear majority in nominal amount of the Notes for the time being outstanding
      PROVIDED THAT at any meeting the business of which includes any of the following
      matters (each of which shall, subject only to Clause 18(B)(ii), only
      be capable of being effected after having been approved by Extraordinary
      Resolution) namely:

| |     |                                                                                                                                                                                                                                                                                                                                                               
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) | reduction or cancellation of
      the amount payable or, where applicable, modification, except where such
      modification is in the opinion of the Trustee bound to result in an increase,
      of the method of calculating the amount payable or modification of the date
      of payment or, where applicable, of the method of calculating the date

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| |      | of payment in respect of any
      principal or interest in respect of the Notes;                       
| | ---- | --------------------------------------------------------------------------------------------------------
| |      |                                                                                                         
| | (ii) | alteration of the currency in
      which payments under the Notes, Receipts and Coupons are to be made;

| |       |                                                                               
| | ----- | ------------------------------------------------------------------------------
| | (iii) | alteration of the majority required
      to pass an Extraordinary Resolution;

| |      |                                                                                                   
| | ---- | --------------------------------------------------------------------------------------------------
| | (iv) | the sanctioning of any such
      scheme or proposal as is described in paragraph 18(I) below; and

| |     |                                                                      
| | --- | ---------------------------------------------------------------------
| | (v) | alteration of this proviso or
      the proviso to paragraph 6 below;

| |                                                                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | the quorum shall be one or more
      persons present holding Definitive Notes or voting certificates or being
      proxies and holding or representing in the aggregate not less than two-thirds
      of the nominal amount of the Notes for the time being outstanding.

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|6. | If within 15 minutes (or such
      longer period not exceeding 30 minutes as the Chairman may decide) after
      the time appointed for any such meeting a quorum is not present for the
      transaction of any particular business, then, subject and without prejudice
      to the transaction of the business (if any) for which a quorum is present,
      the meeting shall if convened upon the requisition of Noteholders be dissolved.
      In any other case it shall stand adjourned to the same day in the next week
      (or if such day is a public holiday the next succeeding business day) at
      the same time and place (except in the case of a meeting at which an Extraordinary
      Resolution is to be proposed in which case it shall stand adjourned for
      such period, being not less than 13 clear days nor more than 42 clear
      days, and to such place as may be appointed by the Chairman either at or
      subsequent to such meeting and approved by the Trustee). If within 15 minutes
      (or such longer period not exceeding 30 minutes as the Chairman may decide)
      after the time appointed for any adjourned meeting a quorum is not present
      for the transaction of any particular business, then, subject and without
      prejudice to the transaction of the business (if any) for which a quorum
      is present, the Chairman may either (with the approval of the Trustee) dissolve
      such meeting or adjourn the same for such period, being not less than 13 clear
      days (but without any maximum number of clear days), and to such place as
      may be appointed by the Chairman either at or subsequent to such adjourned
      meeting and approved by the Trustee, and the provisions of this sentence
      shall apply to all further adjourned such meetings. At any adjourned meeting
      one or more persons present holding Definitive Notes of the relevant one
      or more Series or voting certificates or being proxies (whatever the nominal
      amount of the Notes so held or represented by them) shall (subject as provided
      below) form a quorum and shall have power to pass any Extraordinary Resolution
      or other resolution and to decide upon all matters which could properly
      have been dealt with at the meeting from which the adjournment took place
      had the requisite quorum been present PROVIDED THAT at any adjourned meeting
      the quorum for the transaction of business comprising any of the matters
      specified in the proviso to paragraph 5 above shall be one or more persons
      present holding Definitive Notes or voting certificates or being proxies
      and holding or representing in the aggregate not less than one-third of
      the nominal amount of the Notes for the time being outstanding.

|   |                                                                                                                                                                                                                                                                                                                                                                                               
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|7. | Notice of any adjourned meeting
      at which an Extraordinary Resolution is to be submitted shall be given in
      the same manner as notice of an original meeting but as if 10 were
      substituted for 21 in paragraph 3 above and such notice shall
      state the relevant quorum. Subject as aforesaid it shall not be necessary
      to give any notice of an adjourned meeting.

|   |                                                                                                                                                                                                       
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|8. | Every question submitted to
      a meeting shall be decided in the first instance by a show of hands and
      in case of equality of votes the Chairman shall both on a show of hands
      and on a
|   |                                                                                                                                                                                                       

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|   | poll have a casting vote in
      addition to the vote or votes (if any) to which he may be entitled as a
      Noteholder or as a holder of a voting certificate or as a proxy or as a
      representative.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|9. | At any meeting unless a poll
      is (before or on the declaration of the result of the show of hands) demanded
      by the Chairman, the relevant Issuer, the Trustee or any person present
      holding a Definitive Note of the relevant Series or a voting certificate
      or being a proxy (whatever the nominal amount of the Notes so held or represented
      by him) a declaration by the Chairman that a resolution has been carried
      or carried by a particular majority or lost or not carried by a particular
      majority shall be conclusive evidence of the fact without proof of the number
      or proportion of the votes recorded in favour of or against such resolution.

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|10. | Subject to paragraph 12
      below, if at any such meeting a poll is so demanded it shall be taken in
      such manner and subject as hereinafter provided either at once or after
      an adjournment as the Chairman directs and the result of such poll shall
      be deemed to be the resolution of the meeting at which the poll was demanded
      as at the date of the taking of the poll. The demand for a poll shall not
      prevent the continuance of the meeting for the transaction of any business
      other than the motion on which the poll has been demanded.

|    |                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|11. | The Chairman may with the consent
      of (and shall if directed by) any such meeting adjourn the same from time
      to time and from place to place but no business shall be transacted at any
      adjourned meeting except business which might lawfully (but for lack of
      required quorum) have been transacted at the meeting from which the adjournment
      took place.

|    |                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
|12. | Any poll demanded at any such
      meeting on the election of a Chairman or on any question of adjournment
      shall be taken at the meeting without adjournment.

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|13. | The Trustee and its lawyers
      and any director, officer or employee of a corporation being a trustee of
      these presents and any director or officer of the relevant Issuer and its
      or their lawyers and any other person authorised so to do by the Trustee
      may attend and speak at any meeting. Save as aforesaid, but without prejudice
      to the proviso to the definition of "outstanding" in Clause 1, no person
      shall be entitled to attend and speak nor shall any person be entitled to
      vote at any meeting of Noteholders or join with others in requesting the
      convening of such a meeting or to exercise the rights conferred on Noteholders
      by Condition 10 unless he either produces the Definitive Note or Definitive
      Notes of which he is the holder or a voting certificate or is a proxy. No
      person shall be entitled to vote at any meeting in respect of Notes held
      by, for the benefit of, or on behalf of, the relevant Issuer, any Subsidiary
      or holding company of the relevant Issuer or any other Subsidiary of any
      such holding company. Nothing herein shall prevent any of the proxies named
      in any block voting instruction or form of proxy from being a director,
      officer or representative of or otherwise connected with the relevant Issuer.

|    |                                                                 
|--- | ----------------------------------------------------------------
|14. | Subject as provided in paragraph 13
      hereof at any meeting:

| |     |                                                                                                                                                                 
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (A) | on a show of hands every person
      who is present in person and produces a Definitive Note or voting certificate
      or is a proxy shall have one vote; and

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (B) | on a poll every person who is
      so present shall have one vote in respect of each Euro 1 or such other
      amount as the Trustee may in its absolute discretion stipulate (or, in the
      case of meetings of holders of Notes denominated in another currency, such
      amount in such other currency as the Trustee in its absolute discretion
      may stipulate) in nominal amount of the Definitive Notes so produced or
      represented by the voting certificate so produced or in respect of which
      he is a proxy.

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| | Without prejudice to the obligations of the proxies named in any block voting instruction or form of proxy any person entitled to more than one vote need not use all his votes or cast all the votes to which he is entitled in the same way.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|    |                                                                                                  
|--- | -------------------------------------------------------------------------------------------------
|15. | The proxies named in any block
      voting instruction or form of proxy need not be Noteholders.

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|16. | Each block voting instruction
      together (if so requested by the Trustee) with proof satisfactory to the
      Trustee of its due execution on behalf of the relevant Paying Agent shall
      be deposited by the relevant Paying Agent at such place as the Trustee shall
      approve not less than 24 hours before the time appointed for holding
      the meeting or adjourned meeting at which the proxies named in the block
      voting instruction propose to vote and in default the block voting instruction
      shall not be treated as valid unless the Chairman of the meeting decides
      otherwise before such meeting or adjourned meeting proceeds to business.
      A notarially certified copy of each block voting instruction shall be deposited
      with the Trustee before the commencement of the meeting or adjourned meeting
      but the Trustee shall not thereby be obliged to investigate or be concerned
      with the validity of or the authority of the proxies named in any such block
      voting instruction.

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|17. | Any vote given in accordance
      with the terms of a block voting instruction shall be valid notwithstanding
      the previous revocation or amendment of the block voting instruction or
      of any of the relevant Noteholders' instructions pursuant to which it was
      executed provided that no intimation in writing of such revocation or amendment
      shall have been received from the relevant Paying Agent by the relevant
      Issuer at its registered office (or such other place as may have been required
      or approved by the Trustee for the purpose) by the time being 24 hours
      before the time appointed for holding the meeting or adjourned meeting at
      which the block voting instruction is to be used.

|    |                                                                                                                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|18. | A meeting of the Noteholders
      shall in addition to the powers hereinbefore given have the following powers
      exercisable only by Extraordinary Resolution (subject to the provisions
      relating to quorum contained in paragraphs 5 and 6 above) namely:

| |     |                                                                                                                                                                                                                    
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (A) | Power to sanction any compromise
      or arrangement proposed to be made between the relevant Issuer, the Trustee,
      any Appointee and the Noteholders, Receiptholders and Couponholders or any
      of them.

| |     |                                                                                                                                                                                                                                                                                                                                                                                    
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (B) | Power to sanction any abrogation,
      modification, compromise or arrangement in respect of the rights of the
      Trustee, any Appointee, the Noteholders, the Receiptholders, Couponholders,
      the relevant Issuer, or against any other or others of them or against any
      of their property whether such rights shall arise under these presents or
      otherwise.

| |     |                                                                                                                                                                   
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (C) | Power to assent to any modification
      of the provisions of these presents which shall be proposed by the relevant
      Issuer, the Trustee or any Noteholder.

| |     |                                                                                                                                                      
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------
| | (D) | Power to give any authority
      or sanction which under the provisions of these presents is required to
      be given by Extraordinary Resolution.

| |     |                                                                                                                                                                                                                                                                                                                    
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (E) | Power to appoint any persons
      (whether Noteholders or not) as a committee or committees to represent the
      interests of the Noteholders and to confer upon such committee or committees
      any powers or discretions which the Noteholders could themselves exercise
      by Extraordinary Resolution.

| |     |                                                                                                                                                     
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------
| | (F) | Power to approve of a person
      to be appointed a trustee and power to remove any trustee or trustees for
      the time being of these presents.

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| | (G) | Power to discharge or exonerate the Trustee and/or any Appointee from all liability in respect of any act or omission for which the Trustee and/or such Appointee may have become responsible under these presents.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |     |                                                                                                                                                                                                                                     
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (H) | Power to authorise the Trustee
      and/or any Appointee to concur in and execute and do all such deeds, instruments,
      acts and things as may be necessary to carry out and give effect to any
      Extraordinary Resolution.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (I) | Power to sanction any scheme
      or proposal for the exchange or sale of the Notes for or the conversion
      of the Notes into or the cancellation of the Notes in consideration of shares,
      stock, notes, bonds, debentures, debenture stock and/or other obligations
      and/or securities of the relevant Issuer or any other company formed or
      to be formed, or for or into or in consideration of cash, or partly for
      or into or in consideration of such shares, stock, notes, bonds, debentures,
      debenture stock and/or other obligations and/or securities as aforesaid
      and partly for or into or in consideration of cash.

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|19. | Any resolution passed at a meeting
      of the Noteholders duly convened and held in accordance with these presents
      shall be binding upon all the Noteholders whether present or not present
      at such meeting and whether or not voting and upon all Receiptholders and
      Couponholders and each of them shall be bound to give effect thereto accordingly
      and the passing of any such resolution shall be conclusive evidence that
      the circumstances justify the passing thereof. Notice of the result of the
      voting on any resolution duly considered by the Noteholders shall be published
      in accordance with Condition 14 by the relevant Issuer within 14 days
      of such result being known PROVIDED THAT the non-publication of such notice
      shall not invalidate such result.

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|20. | The expression “Extraordinary
      Resolution” when used in these presents means (a) a resolution passed
      at a meeting of the Noteholders duly convened and held in accordance with
      these presents by a majority consisting of not less than three-fourths of
      the persons voting thereat upon a show of hands or if a poll is duly demanded
      by a majority consisting of not less than three-fourths of the votes cast
      on such poll; or (b) a resolution in writing signed by or on behalf of all
      the Noteholders, which resolution in writing may be contained in one document
      or in several documents in like form each signed by or on behalf of one
      or more of the Noteholders.

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|21. | Minutes of all resolutions and
      proceedings at every meeting of the Noteholders shall be made and entered
      in books to be from time to time provided for that purpose by the relevant
      Issuer and any such minutes as aforesaid if purporting to be signed by the
      Chairman of the meeting at which such resolutions were passed or proceedings
      transacted shall be conclusive evidence of the matters therein contained
      and until the contrary is proved every such meeting in respect of the proceedings
      of which minutes have been made shall be deemed to have been duly held and
      convened and all resolutions passed or proceedings transacted thereat to
      have been duly passed or transacted.

|    |     |                                                                                                                                                                                                                               
|--- | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|22. | (A) | If and whenever the relevant
      Issuer shall have issued and have outstanding Notes of more than one Series
      the foregoing provisions of this Schedule shall have effect subject to the
      following modifications:

| |  |     |                                                                                                                                                                                                                             
| |  | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (i) | a resolution which in the opinion
      of the Trustee affects the Notes of only one Series shall be deemed to have
      been duly passed if passed at a separate meeting of the holders of the Notes
      of that Series;

| |  |      |                                                                                                                                                                                                                                                    
| |  | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (ii) | a resolution which in the opinion
      of the Trustee affects the Notes of more than one Series but does not give
      rise to a conflict of interest between the holders of Notes of any of the
      Series so affected shall be deemed to have

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95

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| |  |  |                                                                                                                
| |  |  | ---------------------------------------------------------------------------------------------------------------
| |  |  | been duly passed if passed at
      a single meeting of the holders of the Notes of all the Series so affected;

| |  |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (iii) | a resolution which in the opinion
      of the Trustee affects the Notes of more than one Series and gives or may
      give rise to a conflict of interest between the holders of the Notes of
      one Series or group of Series so affected and the holders of the Notes of
      another Series or group of Series so affected shall be deemed to have been
      duly passed only if passed at separate meetings of the holders of the Notes
      of each Series or group of Series so affected; and

| |  |      |                                                                                                                                                                                                                                                                                                             
| |  | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (iv) | to all such meetings all the
      preceding provisions of this Schedule shall mutatis mutandis apply
      as though references therein to Notes and Noteholders were references to
      the Notes of the Series or group of Series in question or to the holders
      of such Notes, as the case may be.

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (B) | If the relevant Issuer shall
      have issued and have outstanding Notes which are not denominated in Euro
      in the case of any meeting of holders of Notes of more than one currency
      the principal amount of such Notes shall (i) for the purposes of paragraph
      2 above be the equivalent in Euro at the spot rate of a bank nominated by
      the Trustee for the conversion of the relevant currency or currencies into
      Euro on the seventh dealing day prior to the day on which the requisition
      in writing is received by the relevant Issuer and (ii) for the purposes
      of paragraphs 5, 6 and 14 above (whether in respect of the meeting or any
      adjourned such meeting or any poll resulting therefrom) be the equivalent
      at such spot rate on the seventh dealing day prior to the day of such meeting.
      In such circumstances, on any poll each person present shall have one vote
      for each Euro 1 (or such other Euro amount as the Trustee may in its
      absolute discretion stipulate) in principal amount of the Notes (converted
      as above) which he holds or represents.

|    |                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|23. | Subject to all other provisions
      of these presents the Trustee may without the consent of any the relevant
      Issuer, the Noteholders, the Receiptholders or the Couponholders prescribe
      such further regulations regarding the requisitioning and/or the holding
      of meetings of Noteholders and attendance and voting thereat as the Trustee
      may in its sole discretion think fit.

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96

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|SIGNEDas a deed byUNITED UTILITIES PLCacting by its attorneyin the presence of: | )))))) | as Attorney for
      United Utilities PLC
|------------------------------------------------------------------------------- | ------ | ------------------------------------------

|                                                                                          |        |                                                       
|----------------------------------------------------------------------------------------- | ------ | ------------------------------------------------------
|Witness's signature:
      Name:
      Address:                                           |        |                                                       
|                                                                                          |        |                                                       
|                                                                                          |        |                                                       
|                                                                                          |        |                                                       
|SIGNEDas a deed byUNITED UTILITIES ELECTRICITPLCacting by its attorneyin the presence of: | )))))) | as Attorney for
      United Utilities Electricity PLC

|                                                                                      |        |                                                  
|------------------------------------------------------------------------------------- | ------ | -------------------------------------------------
|Witness's signature:
      Name:
      Address:                                       |        |                                                  
|                                                                                      |        |                                                  
|                                                                                      |        |                                                  
|                                                                                      |        |                                                  
|SIGNEDas a deed byUNITED UTILITIES WATER PLCacting by its attorneyin the presence of: | )))))) | as Attorney
        for UnitedUtilities Water PLC
|                                                                                      |        |                                                  
|Witness's signature:
      Name:
      Address:                                       |        |                                                  





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97

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|THE COMMON
        SEAL of
      THE LAW DEBENTURE TRUST
      CORPORATION p.l.c.was
        affixed tothis deed in the presence
        of: | )
      )
      )
      )
|-------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------

| |                     
| | --------------------
| | Director            
| |                     
| | Authorised Signatory

ICM:622070.2

Back to Contents
DATED
  4TH OCTOBER, 2002

UNITED UTILITIES PLC
- and -
UNITED UTILITIES ELECTRICITY
  PLC(formerly called NORWEB plc)- and -
UNITED UTILITIES WATER PLC
- and -
THE LAW DEBENTURE TRUST CORPORATION
  p.l.c.
AMENDED AND RESTATED TRUST DEED
relating to a
Euro 4,000,000,000Euro Medium Term Note Programme

For United Utilities PLC,
  United Utilties Electricity PLC and
  United Utilities Water PLC:

SLAUGHTER AND MAY35 Basinghall StreetLondonEC2V 5DB

For
  The Law Debenture Trust Corporation p.l.c.:

ALLEN & OVERY  One New Change  London  EC4M 9QQ




---



Back to Contents

TABLE
  OF CONTENTS



|CLAUSE | PAGE                                                                            
|------ | --------------------------------------------------------------------------------
|1.     | DEFINITIONS                                                                     
|2.     | AMOUNT AND
      ISSUE OF THE NOTES                                             
|3.     | FORMS OF THE
      NOTES                                                        
|4.     | FEES, DUTIES
      AND TAXES                                                    
|5.     | COVENANT
      OF COMPLIANCE                                                    
|6.     | CANCELLATION
      OF NOTES AND RECORDS                                         
|7.     | NON-PAYMENT                                                                     
|8.     | PROCEEDINGS,
      ACTION AND INDEMNIFICATION                                   
|9.     | APPLICATION OF MONEYS                                                           
|10.    | NOTICE OF PAYMENTS                                                              
|11.    | INVESTMENT
      BY TRUSTEE                                                     
|12.    | PARTIAL PAYMENTS                                                                
|13.    | COVENANTS
      BY THE ISSUERS                                                  
|14.    | REMUNERATION
      AND INDEMNIFICATION OF TRUSTEE                               
|15.    | SUPPLEMENT
      TO TRUSTEE ACTS                                                
|16.    | TRUSTEE'S LIABILITY                                                             
|17.    | TRUSTEE
      CONTRACTING WITH ISSUERS                                          
|18.    | WAIVER, AUTHORISATION AND DETERMINATION                                         
|       | MODIFICATION                                                                    
|       | BREACH                                                                          
|19.    | HOLDERS OF
      DEFINITIVE NOTES ASSUMED TO BE RECEIPTHOLDERS AND COUPONHOLDERS
|       | NO NOTICE
      TO RECEIPTHOLDERS OR COUPONHOLDERS                              
|20.    | CURRENCY INDEMNITY                                                              
|21.    | NEW TRUSTEE                                                                     
|       | SEPARATE
      AND CO-TRUSTEES                                                  
|22.    | TRUSTEE'S RETIREMENT AND REMOVAL                                                
|23.    | TRUSTEE'S POWERS TO BE ADDITIONAL                                               
|24.    | SUBSTITUTION                                                                    
|25.    | NOTICES                                                                         
|26.    | GOVERNING
      LAW                                                             
|27.    | COUNTERPARTS                                                                    
|28.    | CONTRACTS
      (RIGHTS OF THIRD PARTIES) ACT 1999                              



|SCHEDULES         
|------------------
|THE FIRST SCHEDULE
|                  
|THE SECONDSCHEDULE
|                  
|                  
|                  
|                  
|                  
|                  
|THE THIRD SCHEDULE

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Back to Contents

DATED
  4TH OCTOBER, 2002



UNITED UTILITIES PLC

- and -

UNITED UTILITIES ELECTRICITY
  PLC(formerly called NORWEB plc)- and -

UNITED UTILITIES WATER PLC

- and -

THE LAW DEBENTURE TRUST CORPORATION
  p.l.c.

---

AMENDED AND RESTATED TRUST DEED

relating to a

Euro 4,000,000,000Euro Medium Term Note Programme

---

For United Utilities PLC,
  United Utilties Electricity PLC and
  United Utilities Water PLC:

SLAUGHTER AND MAY35 Basinghall StreetLondonEC2V 5DB

For
  The Law Debenture Trust Corporation p.l.c.:

ALLEN & OVERY  One New Change  London  EC4M 9QQ




---