Document:

$375 million Multicurrency Revolving Credit Facility for Scottish Power plc

 EXHIBIT 4.12 
  
 CONFORMED COPY 
  
  
 AGREEMENT 
  
  
 DATED 3RD JUNE, 2004 
  
 US$375,000,000 
  
 MULTICURRENCY REVOLVING CREDIT FACILITY 
  
 For 
  
 SCOTTISH POWER PLC 
  
 arranged by 
  
 THE BANK OF TOKYO-MITSUBISHI, LTD. 
  
 BARCLAYS CAPITAL 
  
 COMMERZBANK AKTIENGESELLSCHAFT 
 (acting through COMMERZBANK SECURITIES) 
  
 HSBC BANK PLC 
  
 J.P. MORGAN PLC 
  
 and 
  
 THE ROYAL BANK OF SCOTLAND PLC 
  
  
 ALLEN & OVERY 
 ALLEN & OVERY LLP 
 LONDON

 CONTENTS 
  

					
	Clause

	  	 	  	Page

	 	  	 	  	 
	1.	  	Interpretation	  	2
	2.	  	The Facility	  	16
	3.	  	Purpose	  	17
	4.	  	Conditions Precedent	  	17
	5.	  	Utilisation - Loans	  	17
	6.	  	Repayment	  	18
	7.	  	Prepayment and Cancellation	  	19
	8.	  	Interest	  	21
	9.	  	Optional Currencies	  	22
	10.	  	Payments	  	23
	11.	  	Taxes	  	25
	12.	  	Market Disruption	  	27
	13.	  	Increased Costs	  	28
	14.	  	Illegality and Mitigation	  	29
	15.	  	Representations and Warranties	  	30
	16.	  	Undertakings	  	34
	17.	  	Default	  	41
	18.	  	The Agent and the Mandated Lead Arrangers	  	45
	19.	  	Fees	  	49
	20.	  	Expenses	  	50
	21.	  	Stamp Duties	  	50
	22.	  	Indemnities	  	50
	23.	  	Evidence And Calculations	  	51
	24.	  	Amendments and Waivers	  	52
	25.	  	Changes to the Parties	  	52
	26.	  	Disclosure of Information	  	55
	27.	  	Set-Off	  	55
	28.	  	Pro Rata Sharing	  	55
	29.	  	Severability	  	56
	30.	  	Counterparts	  	56
	31.	  	Notices	  	57
	32.	  	Governing Law	  	57
	33.	  	Jurisdiction	  	57
	34.	  	Service of Process	  	58
			
	Schedule	  	 	  	 
			
	1.	  	Original Parties	  	59
	2.	  	Conditions Precedent Documents	  	60
	3.	  	Calculation of the Mandatory Cost	  	62
	4.	  	Form of Request	  	64
	5.	  	Form of Novation Certificate	  	65
	6.	  	Form of Legal Opinion of Allen & Overy LLP	  	66
	7.	  	Form of Legal Opinion of Maclay Murray & Spens	  	68
	8.	  	Existing Borrowings	  	73
	9.	  	Form of Confidentiality Undertaking	  	75
			
	Signatory	  	 	  	79

  

 1 

 THIS AGREEMENT is dated 3rd June, 2004 BETWEEN: 
  

	(1)	SCOTTISH POWER PLC (Registered No. SC193794) (the Company); 

  

	(2)	THE BANK OF TOKYO-MITSUBISHI, LTD., BARCLAYS CAPITAL, COMMERZBANK AKTIENGESELLSCHAFT (acting through Commerzbank Securities), HSBC BANK PLC, J.P. MORGAN PLC and THE ROYAL
BANK OF SCOTLAND PLC as mandated lead arrangers (in this capacity the Mandated Lead Arrangers); 

  

	(3)	THE FINANCIAL INSTITUTIONS listed in Schedule 1 (Original Parties) as banks (the Original Banks); and 

  

	(4)	THE ROYAL BANK OF SCOTLAND PLC as agent (in this capacity the Agent). 

  
 IT IS AGREED as follows: 
  

	1.	INTERPRETATION  

  

	1.1	Definitions 

  
 In this Agreement: 
  
 Affiliate means a Subsidiary or a Holding Company (as defined in Section 736 of the Companies Act 1985) of a person and any other Subsidiary of
that Holding Company. 
  
 Agent’s Spot Rate of Exchange
means the Agent’s spot rate of exchange for the purchase of the relevant Optional Currency in the London foreign exchange market with US Dollars at or about 11.00 a.m. on a particular day. 
  
 Availability Period means the period from and including the date of
this Agreement to and including the Final Maturity Date. 
  
 Balance Sheet means, at any time, the latest published audited consolidated balance sheet of the Group on an historic cost basis. 
  
 Bank means: 
  

	 	(a)	any Original Bank; and 

  

	 	(b)	any bank, financial institution, trust, fund or other entity which has become a Party in accordance with Clause 25 (Changes to the Parties). 

  
 Borrowings means any indebtedness in respect of: 
  

	 	(a)	moneys borrowed and debit balances at banks and other financial institutions; 

  

	 	(b)	any debt security including any bond, note or loan stock; 

  

	 	(c)	any acceptance under any acceptance credit facility opened by a bank or other financial institution; 

  

 2 

	 	(d)	the sale or discounting of receivables (except to the extent that such sale or discounting is on a non-recourse basis); 

  

	 	(e)	any lease which the Company accounts for as a finance lease as such term is described in the Statement of Standard Accounting Practices No. 21 (or any successor statement or
financial reporting standard); 

  

	 	(f)	any accrued fixed or minimum premium payable on the repayment or redemption of any instrument referred to in paragraph (b) above; 

  

	 	(g)	for the purposes of Clause 17.5 (Cross-default) only, any derivative transaction including interest rate swaps, currency swaps (including spot and forward exchange contracts), caps,
collars, floors and similar obligations (and, when calculating the value of any such derivative transaction, only the marked to market value shall be taken into account); 

  

	 	(h)	the acquisition cost of any asset to the extent payable before or after the time of acquisition or possession by the party liable where the advance or deferred payment is arranged
primarily as a method of raising finance or financing the acquisition of that asset; 

  

	 	(i)	any other transaction which has the commercial effect of a borrowing, including for the avoidance of doubt, any proceeds received by any member of the Group in connection with a
securitisation or transaction of a similar effect in respect of the assets of that member of the Group; and 

  

	 	(j)	any guarantee, indemnity and/or other form of assurance against financial loss by any member of the Group in respect of any indebtedness of any person of a type referred to in
paragraphs (a) to (i) above (in the case of paragraph (g) above, for the purposes of Clause 17.5 (Cross-default) only). 

  
 Any amount outstanding in a currency other than Sterling is to be taken into account at its Sterling equivalent calculated on the basis of the
Agent’s spot rate of exchange at 11.00 a.m. on the day the relevant amount falls to be calculated. However, indebtedness owing by one member of the Group to another member of the Group shall not be taken into account as Borrowings and, for the
purposes of calculating the amount of Borrowings at any time: 
  

	 	(i)	deep discount borrowings will be valued at the amount attributed to them in the then latest Balance Sheet; and 

  

	 	(ii)	no item of indebtedness will be double counted by the inclusion of both the primary indebtedness and indebtedness arising under a guarantee, indemnity and/or other form of assurance
with respect to that primary indebtedness. 

  
 Business Day means a day (other than a Saturday or a Sunday) on which banks are open for business in: 
  

	 	(a)	London; and 

  

	 	(b)	Glasgow; and 

  

	 	(c)	New York; and 

  

 3 

	 	(d)	in relation to a transaction involving an Optional Currency (other than euros) the principal financial centre of the country of that Optional Currency; and 

 

	 	(e)	in relation to a transaction involving euros, a TARGET Day. 

  
 Commitment means: 
  

	 	(a)	for an Original Bank, the amount set opposite its name in Schedule 1 under the heading “Commitments” and the amount of any other Commitment it acquires under Clause 25
(Changes to the Parties); and 

  

	 	(b)	for any other Bank the amount of any Commitment it acquires under Clause 25 (Changes to the Parties), 

  
 to the extent not cancelled, transferred or reduced under this Agreement. 
  
 Consolidated Dividends means, in respect of any period, the aggregate
of any dividend or other distribution declared, recommended or made by the Company during that period. 
  
 Consolidated EBITDA means in respect of any financial year of the Group, the consolidated profits of the Group before: 
  

	 	(a)	Net Interest Payable; 

  

	 	(b)	tax; 

  

	 	(c)	depreciation; 

  

	 	(d)	amortisation (including, for the avoidance of doubt, of goodwill); and 

  

	 	(e)	extraordinary and exceptional items, 

  
 but adjusted by deducting any amount attributable to minority interests, as determined from the financial statements of the Group and compliance
certificates delivered under, respectively, Clause 16.2 (Financial information) and Clause 16.6 (Compliance certificates). 
  
 Dangerous Substance means any radioactive emissions and any natural or artificial substance (whether in solid or liquid form or in the form of a
gas or vapour and whether alone or in combination with any other substance) capable (in each case) of causing harm to man or any other living organism or damaging the environment or public health or welfare, including (without limitation) any
controlled, special, hazardous, toxic, radioactive or dangerous waste. 
  
 Default means an Event of Default or an event which, with the giving of notice, lapse of time, or fulfilment of any other applicable condition (or any combination of the foregoing), would constitute an Event of Default. 

 
 Earnings means, in respect of any period, the consolidated profits
of the Group after tax, adjusted by: 
  

	 	(a)	adding back any amount attributable to amortisation of goodwill; and 

  

	 	(b)	taking no account of any exceptional item, 

  

 4 

 as determined from the financial statements of the Group and compliance certificates delivered under,
respectively, Clause 16.2 (Financial information) and Clause 16.6 (Compliance certificates). 
  
 EC means the European Community and its successors. 
  
 EBITDA means in respect of any financial year of a company, the consolidated profits of that company before: 
  

	 	(a)	Net Interest Payable attributable to it; 

  

	 	(b)	tax; 

  

	 	(c)	depreciation; 

  

	 	(d)	amortisation (including, for the avoidance of doubt, of goodwill); and 

  

	 	(e)	extraordinary and exceptional items, 

  
 but adjusted by deducting any amount attributable to minority interests, in each case which are attributable to that company. 
  
 EIB means the European Investment Bank. 
  
 EIB Facilities means any credit facilities made available by the
European Investment Bank to a UK Subsidiary after the date of this Agreement. 
  
 Electricity Act means the Electricity Act 1989, as amended by the Utilities Act 2000 and, unless the context so requires, all subordinate legislation made pursuant thereto. 
  
 Energy Laws means the Electricity Act and all other laws, regulations
or requirements of any relevant authority (in so far as such regulations or requirements have the force of law) relating to the generation, transmission, distribution, supply or trading of electricity or any other sources of energy in each
jurisdiction in which any member of the Group carries on business at any time. 
  
 Environmental Claim means any claim by any person in connection with: 
  

	 	(a)	a breach, or alleged breach, of Environmental Law; 

  

	 	(b)	any accident, fire, explosion or other event of any type involving an emission or substance which is capable of causing harm to any living organism or the environment; or

  

	 	(c)	any other environmental contamination. 

  
 Environmental Law means all laws, regulations, codes of practice, circulars, guidance notices and the like (whether in the United Kingdom or
elsewhere) whether or not having the force of law but if not having the force of law compliance with which is customary in the industry in which any member of the Group operates concerning the protection of human health or the environment or the
conditions of the work place or the generation, transportation, storage, treatment or disposal of Dangerous Substances. 
  

 5 

 Environmental Licence means any permit, licence, authorisation, consent or other approval required
by any Environmental Law. 
  
 EURIBOR means for a Term of
any Loan or overdue amount in euro: 
  

	 	(a)	the applicable Screen Rate; or 

  

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

  
 as of 11.00 a.m. (Brussels time) on the Rate Fixing Day for the offering of deposits in euro for a period comparable to that Term. 
  
 euro means the single currency of the Participating Member States.

  
 Event of Default means an event specified as such in
Clause 17.1 (Events of Default). 
  
 Existing Facility
Agreement means the US$1,000,000,000 multicurrency credit facility dated 12th June, 2003 between, among others, the Company and the Agent. 
  
 Existing Facility A means Facility A as defined in the Existing Facility Agreement. 
  
 Existing Facility A Loan means the principal amount of a borrowing by the Company under Facility A or the principal
amount outstanding of that borrowing. 
  
 Existing Facility B
means Facility B as defined in the Existing Facility Agreement. 
  
 Existing Facility B Loan means the principal amount of a borrowing by the Company under Existing Facility B or the principal amount outstanding of that borrowing. 
  
 Existing Facility B Total Commitments means the Total Facility B Commitments as defined in the Existing Facility
Agreement. 
  
 Facility means the revolving credit
facility referred to in Clause 2 (The Facility). 
  
 Facility
Office means, subject to Clause 25.6 (Change of Facility Office)), the office(s) notified by a Bank to the Agent: 
  

	 	(a)	on or before the date it becomes a Bank; or 

  

	 	(b)	by not less than five Business Days’ notice, 

  
 as the office(s) through which it will perform all or any of its obligations under this Agreement. 
  
 Fee Letter means: 
  

	 	(a)	the letter dated the date of this Agreement between the Mandated Lead Arrangers and the Company setting out the amount of various fees referred to in Clause 19.1 (Front-end fees);

  

	 	(b)	the letter dated the date of this Agreement between the Agent and the Company setting out the amount of various fees referred to in Clause 19.4 (Agent’s fee).

  

 6 

 Final Maturity Date means 12th June, 2008. 
  
 Finance Document means this Agreement, a Fee Letter, a Novation Certificate or any other document designated as such by the Agent and the Company.

  
 Finance Party means a Mandated Lead Arranger, a Bank
or the Agent. 
  
 Group means at any time the Company and
its Subsidiaries at that time. 
  
 Hedging Liabilities
means indebtedness arising in respect of obligations of the type referred to in paragraph (g) of the definition of “Borrowings” in this Clause 1.1. 
  
 IBOR means LIBOR or EURIBOR. 
  
 Interest Payable means, in respect of any financial period, all interest, discount and acceptance commission and all
other continuing, regular or periodic costs, charges and expenses in the nature of interest (whether paid, payable or capitalised) or treated for accounting purposes as interest, incurred by the Group in effecting, servicing or maintaining Total
Consolidated Borrowings during that period. 
  
 Interest
Receivable means, in respect of any financial period, interest and amounts in the nature of interest received during that period by the Group from persons outside the Group. 
  
 Investments means: 
  

	 	(a)	cash on current account or cash on deposit with, or certificates of deposit issued by, or bills of exchange accepted by, any bank incorporated in an OECD country from which proceeds
are readily remittable to the United Kingdom, and in each case, where the deposit or the maturity is for a duration of six months or less; and 

  

	 	(b)	bonds or treasury bills issued by an OECD government or agency, bonds rated single-A or above by a major rating agency and commercial paper rated A1 or P1 by a major rating agency,
in each case, where the proceeds of which are readily remittable to the United Kingdom. 

  
 LIBOR means for a Term of any Loan or overdue amount (other than in euro): 
  

	 	(a)	the applicable Screen Rate; or 

  

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

  
 as of 11.00 a.m. on the Rate Fixing Day for the offering of deposits in the currency of that Loan or overdue amount for a period comparable to that Term.

  
 Licence means each licence or other similar
authorisation granted by any relevant UK or US authority (as the case may be) to a member of the Group carrying on business in the United Kingdom or United States (as the case may be) pursuant to any Energy Law or otherwise to permit it to carry out
generation, transmission, distribution or supply of electricity or to trade electricity. 
  

 7 

 Loan means the principal amount of a borrowing by the Company under this Agreement or the
principal amount outstanding of that borrowing. 
  
 Majority
Banks means, at any time, Banks: 
  

	 	(a)	the aggregate of whose shares in the outstanding Loans and undrawn Commitments then represents 66 2/3 per cent. or more of the aggregate of all the outstanding Loans and undrawn Commitments of all the Banks; 

  

	 	(b)	if there is no Loan then outstanding, whose undrawn Commitments then aggregate 66 2/3 per cent. or more of the Total Commitments; or 

  

	 	(c)	if there is no Loan then outstanding and the Total Commitments have been reduced to zero, whose Commitments aggregated 66 2/3 per cent. or more of the Total Commitments immediately before the reduction. 

  
 Mandatory Cost means the cost of complying with certain regulatory
requirements, expressed as a percentage rate per annum and calculated by the Agent under Schedule 3 (Calculation of Mandatory cost). 
  
 Mandatory Subsidiaries means: 
  

	 	(a)	SP Distribution, SP Manweb, SP Transmission, SP UK and PacifiCorp; and 

  

	 	(b)	any Subsidiary to whom a Mandatory Subsidiary sells, transfers, grants, leases or otherwise disposes of any Licence, in whole or in part. 

  
 Margin means: 
  

	 	(a)	0.50 per cent. per annum; or 

  

	 	(b)	at any time, if different, the rate per annum determined by reference to the lower of the Company’s long term credit ratings assigned by S&P or Moody’s (or any other
rating agency approved for this purpose by the Majority Banks) last published (and not withdrawn) at that time, as follows: 

  

					
	Rating

	 	Margin (% per annum)

	S&P	 	Moody’s	 	 
	A or better	 	A2 or better	 	0.40
	A-	 	A3	 	0.45
	BBB+	 	Baa1	 	0.50
	BBB	 	Baa2	 	0.55
	BBB- or lower
(or if (1) the
Borrower
ceases to have
such rating; or
(2) an Event of
Default is
outstanding)	 	Baa3 or lower (or if
(1) the Borrower
ceases to have such
rating; or (2) an
Event of Default is
outstanding)	 	0.75

  

 8 

 Material Adverse Effect means any effect which, in the opinion of the Majority Banks, is or is
reasonably likely to be materially adverse to the ability of the Company to perform any of its payment obligations under any of the Finance Documents (taking into account resources available to it without breaching the terms of this Agreement from
other members of the Group), or to comply with any of its obligations under Clause 16.12 (Financial covenants). 
  
 Moody’s means Moody’s Investors Service, Inc. 
  

Net Interest Payable means, in respect of any financial period, Interest Payable during that period less Interest Receivable during that period.

  
 Novation Certificate means a duly completed
certificate, substantially in the form of Schedule 5 (Form of Novation Certificate). 
  
 Ofgem means the Office of Gas and Electricity Markets. 
  
 Operating Profit means the consolidated net pre-taxation profits (after adding back Net Interest Payable and amortisation (including for the avoidance of doubt, of goodwill)) of the Group for a financial year
of the Group before taking account of any exceptional or extraordinary profits (or losses), as determined from the financial statements of the Group and compliance certificates delivered under, respectively, Clause 16.2 (Financial information) and
Clause 16.6 (Compliance certificates). 
  
 Optional
Currency means Sterling, euros or any other currency (other than US Dollars) which is for the time being freely transferable and convertible into US Dollars and deposits of which are readily available in the London interbank market. 

 
 Original Dollar Amount means: 
  

	 	(a)	the principal amount of a Loan denominated in US Dollars; or 

  

	 	(b)	the principal amount of a Loan denominated in an Optional Currency translated into US Dollars on the basis of the Agent’s Spot Rate of Exchange three Business Days before its
Utilisation Date. 

  
 Original Group
Accounts means the audited consolidated accounts of the Group for the year ended 31st March, 2004. 
  
 PacifiCorp means PacifiCorp (a company incorporated in Portland, Oregon). 
  
 PacifiCorp Facility means a US$800,000,000 loan facility for PacifiCorp dated 28th May, 2004. 
  
 Participating Member State means a member state of the European Communities that adopts or has adopted the euro as its lawful currency under the
legislation of the European Community for Economic Monetary Union. 
  
 Party means a party to this Agreement. 
  
 Permitted Security Interest means: 
  

	 	(a)	any Security Interest created or outstanding with the prior written consent of the Majority Banks; 

  

 9 

	 	(b)	any lien or hypothecation arising by operation of law or contained in a contract for the sale of goods, supply of services or joint operation of assets entered into in the ordinary
course of trade of the company creating the same; 

  

	 	(c)	Security Interests not otherwise permitted under paragraphs (a) and (b) above provided that the aggregate principal amount of the indebtedness secured by Security Interests
permitted under this paragraph (c) shall not at any time exceed an amount equal to 15 per cent. of Tangible Consolidated Net Worth at that time; 

  

	 	(d)	any Security Interest created by a Project Finance Subsidiary to secure its Project Finance Borrowings; and 

  

	 	(e)	any Security Interest created by PacifiCorp and permitted under clause 5.07 (Negative Pledge) of the PacifiCorp Facility. 

  
 Principal Subsidiary means: 
  

	 	(a)	each Mandatory Subsidiary and each other Subsidiary so designated by the Company in accordance with Clause 16.5 (Principal Subsidiaries) such that the aggregate EBITDA and Net
Assets of the Principal Subsidiary Group equals or exceeds 75 per cent. of Consolidated EBITDA and the Net Assets of the Group respectively, all as calculated by reference to (in the case of any Subsidiary) each relevant Subsidiary’s most
recent annual accounts and (in the case of the Group) in the most recent annual consolidated accounts of the Group and for this purpose Net Assets in relation to any Subsidiary means its total assets (excluding goodwill) less its total
liabilities and in relation to the Group means the total assets (excluding goodwill) of the Group less its total liabilities; and 

  

	 	(b)	any other Subsidiary or Subsidiaries of the Company to whom all or substantially all of the assets or business of a Principal Subsidiary are transferred. 

 
 Principal Subsidiary Group means at any time the Principal
Subsidiaries at that time. 
  
 Project Finance Borrowings
means any Borrowing which finances, and any Hedging Liabilities incurred in the financing of the acquisition, development, ownership and/or operation of an asset: 
  

	 	(a)	which is incurred by a Project Finance Subsidiary; or 

  

	 	(b)	in respect of which the person or persons to whom such Borrowing is or may be owed by the relevant debtor (whether or not a member of the Group) has or have no recourse whatsoever
to any member of the Group (other than to a Project Finance Subsidiary) for the repayment thereof other than: 

  

	 	(i)	recourse to such debtor 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 to such debtor for the purpose only of enabling amounts to be claimed in respect of such Borrowing in an enforcement of any Security Interest given by such debtor over such
asset or the income, cash flow or other proceeds deriving therefrom (or given by any shareholder or the like in the debtor over its shares or like interest in the capital of the debtor) to secure such Borrowing, provided that (I) the extent of such
recourse to such debtor 

  

 10 

 is limited solely to the amount of any recoveries made on any such enforcement, and (II) such person or
persons are not entitled, by virtue of any right or claim arising out of or in connection with such Borrowing, to commence proceedings for the winding up or dissolution of the debtor or to appoint or procure the appointment of any receiver, trustee
or similar person or officer in respect of the debtor or any of its assets (save only for the assets the subject of such Security Interest); and/or 
  

	 	(iii)	recourse to such debtor 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 (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) by the person against whom such recourse is available. 

  
 Project Finance Subsidiary means any Subsidiary of the Company:

  

	 	(a)	which is a company whose principal assets and business are constituted by the ownership, acquisition, development and/or operation of an asset whether directly or indirectly;

  

	 	(b)	none of whose Borrowings in respect of the financing of such ownership, acquisition, development and/or operation of an asset benefits from any recourse whatsoever to any member of
the Group (other than the Subsidiary itself or another Project Finance Subsidiary) in respect of the repayment thereof, except as expressly referred to in paragraph (b)(iii) of the definition of Project Finance Borrowings in this Clause 1.1; and

  

	 	(c)	which has been designated as such by the Company by written notice to the Agent, provided that the Company may give written notice to the Agent at any time that any Project Finance
Subsidiary is no longer a Project Finance Subsidiary, whereupon it shall cease to be a Project Finance Subsidiary. 

  
 Pro Rata Share means the proportion which a Bank’s Commitment bears to the Total Commitments at that time. 
  
 Qualifying Bank means an institution which is: 
  

	 	(a)	a bank which is within the charge to UK corporation tax in respect of, and beneficially entitled to, a payment of interest on a Loan made by a person that was a bank for the
purposes of section 349 of the Income and Corporation Taxes Act 1988 (as currently defined in section 840A of the Income and Corporation Taxes Act) at the time the Loan was made; or 

  

	 	(b)	a financial institution which is a resident (as defined in the appropriate double taxation agreement) in a country with which the UK has a double taxation agreement giving residents
of that country exemption from UK taxation on interest and which does not carry on a business in the UK through a permanent establishment with which the payment is effectively connected. 

  

 11 

 Rate Fixing Day means: 
  

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

  

	 	(b)	the second Business Day before the first day of a Term for a Loan denominated in US Dollars or an Optional Currency (other than Sterling or euros); or 

  

	 	(c)	the second TARGET Day before the first day of a Term for a Loan denominated in euros, 

  
 unless market practice differs in the Relevant Interbank Market for a currency, in which case the Rate Fixing Day for that
currency will be determined by the Agent in accordance with market practice in the Relevant Interbank Market (and if quotations would normally be given by leading banks in the Relevant Interbank Market on more than one day, the Rate Fixing Day will
be the last of those days). 
  
 Reference Banks means,
subject to Clause 25.4 (Reference Banks), the principal London offices of Barclays Bank PLC, HSBC Bank plc, JPMorgan Chase Bank and The Royal Bank of Scotland plc. 
  
 Relevant Interbank Market means in relation to euros, the European interbank market and, in relation to any other
currency, the London interbank market. 
  
 Repayment Date
means the last day of a Term for a Loan. 
  
 Request means
a request made by the Company for a Loan, substantially in the form of Schedule 4 (Form of Request). 
  
 Reservations means the qualifications as to matters of law only contained in the legal opinions set out in Schedule 6 (Form of legal opinion of
Allen & Overy LLP) and Schedule 7 (Form of legal opinion of Maclay Murray & Spens). 
  
 Rollover Loan means one or more Loans: 
  

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

  

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

  

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

  

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

  
 S&P means Standard & Poor’s Ratings Group, a division of the McGraw Hill Companies, Inc. 
  
 Screen Rate means: 
  

	 	(a)	for LIBOR, the British Bankers Association Interest Settlement Rate; and 

  

	 	(b)	for EURIBOR, the percentage rate per annum determined by the Banking Federation of the European Union, 

  
 for the relevant currency and Term displayed on the appropriate page of the Telerate screen selected by the Agent. If the
relevant page is replaced or the service ceases to be available, the Agent (after consultation with the Company and the Banks) may specify another page or service displaying the appropriate rate. 
  

 12 

 Security Interest means any mortgage, pledge, lien, charge, assignment by way of security or
subject to a proviso for redemption, assignation in security, standard security, hypothecation or security interest or any other agreement or arrangement having the effect of conferring security. 
  
 SP Distribution means SP Distribution Limited (Registered No.
SC189125). 
  
 SP Energy Management means ScottishPower
Energy Management Limited (Registered No.: SC215843). 
  
 SP
Manweb means SP Manweb plc (Registered No. 2366937). 
  
 SP Transmission means SP Transmission Limited (Registered No. SC189126). 
  
 SP UK means Scottish Power UK plc (Registered No. SC117120). 
  
 Sterling means the lawful currency for the time being of the UK. 
  
 Subsidiary means a subsidiary within the meaning of Section 736 of the Companies Act 1985, as amended by Section 144
of the Companies Act 1989. 
  
 Tangible Consolidated Net
Worth means at any time the aggregate of: 
  

	 	(a)	the amount paid up or credited as paid up on the issued share capital of the Company; and 

  

	 	(b)	the amount standing to the credit of the consolidated capital and revenue reserves of the Group; 

  
 based on the Balance Sheet but adjusted by: 
  

	 	(i)	adding any amount standing to the credit of the profit and loss account for the Group for the period ending on the date of the Balance Sheet, to the extent not included in
sub-paragraph (b) above and to the extent the amount is not attributable to any dividend or other distribution declared, recommended or made by any member of the Group; 

  

	 	(ii)	deducting any amount standing to the debit of the profit and loss account for the Group for the period ending on the date of the Balance Sheet, to the extent not included in
sub-paragraph (b) above; 

  

	 	(iii)	deducting any amount attributable to goodwill or any other intangible asset; 

  

	 	(iv)	deducting any amount attributable to a revaluation of assets after 31st March, 2004 or, in the case of assets of a company which becomes a member of the Group after that date, the
date on which that company becomes a member of the Group unless in either case such revaluation is based on valuations by independent valuers; 

  

	 	(v)	reflecting any variation in the amount of the issued share capital of the Company and the consolidated capital and revenue reserves of the Group after the date of the Balance Sheet;

  

 13 

	 	(vi)	reflecting any variation in the interest of the Company in any other member of the Group since the date of the Balance Sheet; 

  

	 	(vii)	excluding any amounts required to be set aside for taxation payable by the Group; 

  

	 	(viii)	excluding any amount attributable to minority interests; and 

  

	 	(ix)	eliminating inconsistencies between the accounting principles applied in connection with the Balance Sheet and those applied in connection with the Original Group Accounts,

  
 as determined from the financial statements of
the Group and compliance certificates delivered under, respectively, Clause 16.2 (Financial information) and Clause 16.6 (Compliance certificates). 
  
 TARGET Day means a day on which the Trans-European Automated Real-time Gross Settlement Express Transfer payment system is open for the settlement
of payments in euro. 
  
 Term means each period determined
under this Agreement by reference to which interest on a Loan or an overdue amount is calculated. 
  
 Total Commitments means the aggregate for the time being of the Commitments, being US$375,000,000 at the date of this Agreement. 
  
 Total Consolidated Borrowings means, at any time, the aggregate
principal amount (or amounts equivalent to principal, howsoever described) comprised in the Borrowings of the Company and its Subsidiaries at that time calculated on a consolidated basis. Any amount outstanding in a currency other than Sterling (the
Relevant Currency) is to be taken into account at its Sterling equivalent calculated on the basis of the Agent’s spot rate of exchange for the purchase of the Relevant Currency in the London foreign exchange market with Sterling at or
about 11.00 a.m. on the day the relevant amount falls to be calculated. 
  
 Total Consolidated Net Borrowings means, at any time, Total Consolidated Borrowings less: 
  

	 	(a)	the aggregate principal amount of Investments beneficially owned by the Group free from Security Interests (to the extent the proceeds of the same are readily remittable to the UK)
at that time; and 

  

	 	(b)	any indebtedness of a member of the Group in respect of Borrowings which, as to prepayment, repayment or payment of principal, interest or other amounts in respect of such
Borrowings, are subordinated on terms satisfactory to the Majority Banks to any Borrowings made under this Agreement. 

  
 UK means the United Kingdom. 
  
 UK Subsidiary means a Subsidiary of the Company incorporated in the UK. 
  
 Utilisation Date means the date of the advance of a Loan. 
  
 US Dollars or US$ means the lawful currency for the time being
of the United States of America. 
  

 14 

	1.2	Construction 

  

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

  

	 	(i)	assets includes present and future properties, revenues and rights of every description; 

  

	 	(ii)	an authorisation includes an authorisation, consent, approval, resolution, licence, exemption, filing, registration and notarisation; 

  

	 	(iii)	a regulation includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental body, agency, department or
regulatory, self-regulatory or other authority or organisation; 

  

	 	(iv)	a provision of a law is a reference to that provision as amended or re-enacted; 

  

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

  

	 	(vi)	a person includes its permitted successors and assigns; 

  

	 	(vii)	a Finance Document or another document is a reference to that Finance Document or that other document as amended, novated or supplemented in writing;

  

	 	(viii)	taxes means any present or future tax, levy, impost, duty or other charge, deduction or withholding of a similar nature (including any related penalty or interest);

  

	 	(ix)	a time of day is a reference to London time; and 

  

	 	(x)	know your customer requirements are the checks that a Finance Party requests in order to meet its obligations under applicable money laundering regulations to identify a
person who is (or is to become) its customer. 

  

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

  

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

  

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

  

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

  

	(c)	Unless the contrary intention appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that
Finance Document or notice as in this Agreement. 

  

					
	 (d)
	  	(i)	  	Terms used in the definitions of Borrowings, Consolidated Dividends, Consolidated EBITDA, Earnings, EBITDA, Interest Payable, Interest

  

 15 

 Receivable, Net Interest Payable, Operating Profit, Tangible Consolidated Net Worth, Total
Consolidated Borrowings and Total Consolidated Net Borrowings in Clause 1.1 (Definitions) are to be construed, and calculated, in accordance with the accounting principles applied in connection with the Original Group Accounts.

  

	 	(ii)	If there is a dispute as to any interpretation or computation for sub-paragraph (i) above, the interpretation or computation of the auditors for the time being of the Company will
prevail. 

  

	(e)	The index to and the headings in this Agreement are for convenience only and are to be ignored in construing this Agreement. 

  

					
	 (f)
	  	(i)	    	Unless expressly provided to the contrary in a Finance Document, a person who is not a party to a Finance Document may not enforce any of its terms under the Contracts (Rights of Third
Parties) Act 1999.

  

	 	(ii)	Notwithstanding any term of any Finance Document, the consent of any third party is not required for any variation (including any release or compromise of any liability under) or
termination of that Finance Document. 

  

	(g)	References to Barclays Capital means the investment banking division of Barclays Bank PLC. 

  

	2.	THE FACILITY  

  

	2.1	The Facility 

  
 Subject to the terms of this Agreement, the Banks grant to the Company a committed multicurrency revolving credit facility under which the Banks agree to
make Loans to the Company in an aggregate amount equal to the Total Commitments. 
  

	2.2	Number of Loans 

  
 No more than ten (10) Loans shall be outstanding at any time. 
  

	2.3	Limits 

  

	(a)	The aggregate Original Dollar Amount of all outstanding Loans shall not exceed the Total Commitments. 

  

	(b)	No Bank is obliged to participate in a Loan if it would cause the Original Dollar Amount of the aggregate of its participations in the Loans to exceed its Commitment.

  

	2.4	Nature of a Finance Party’s rights and obligations 

  

	(a)	The obligations of a Finance Party under the Finance Documents are several. Failure of a Finance Party to carry out those obligations does not relieve any other Party of its
obligations under the Finance Documents. No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents. 

  

	(b)	The rights of a Finance Party under the Finance Documents are divided rights. A Finance Party may, except as otherwise stated in the Finance Documents, separately enforce those
rights. 

  

 16 

	2.5	Change of Currency 

  
 If a change in any currency of a country occurs, this Agreement will be amended to the extent the Agent acting reasonably and in consultation with the
Company specifies to be necessary to reflect the change in currency and to put the Banks in the same position, so far as possible, that they would have been in if no change in currency had occurred. 
  

	3.	PURPOSE  

  

	3.1	Loans 

  
 The Company shall apply each Loan towards: 
  

	 	(a)	its working capital requirements; 

  

	 	(b)	acquisitions, provided the total consideration in respect of any such acquisition does not exceed U.S.$200,000,000; and 

  

	 	(c)	refinancing Existing Facility A of the Existing Facility Agreement in full. 

  

	3.2	No obligation to monitor 

  
 Without affecting the obligations of the Company in any way, no Finance Party is bound to monitor or verify the application of any Loan. 
  

	4.	CONDITIONS PRECEDENT  

  

	4.1	Documentary conditions precedent 

  
 The obligations of each Finance Party to the Company under this Agreement are subject to the condition precedent that the Agent has notified the Company
and the Banks that it has received all of the documents set out in Schedule 2 in form and substance satisfactory to the Agent. 
  

	4.2	Further conditions precedent 

  
 The obligations of each Bank to participate in a Loan are subject to the further conditions precedent that on both the date of the Request and the
Utilisation Date for that Loan: 
  

	 	(i)	the representations and warranties in Clause 15 (Representations and Warranties) to be repeated on those dates are correct and will be correct immediately after the Loan is made;
and 

  

	 	(ii)	no Default or, in the case of a Rollover Loan, no Event of Default is outstanding or could reasonably be expected to result from the making of the Loan. 

  

	5.	UTILISATION - LOANS  

  

	5.1	Receipt of Requests 

  
 On or after 12th June, 2004 the Company may borrow a Loan if the Agent receives a duly completed Request, not later than 12.00 noon one Business Day
before the applicable Rate Fixing Day. 
  

 17 

	5.2	Completion of Requests  

  
 A Request for a Loan will not be regarded as having been duly completed unless: 
  

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

  

	 	(b)	the principal amount of the Loan is a minimum of US$10,000,000 and an integral multiple of US$5,000,000 (or its equivalent in an Optional Currency) or the principal amount of the
Loan is equal to the balance of the undrawn Total Commitments as at the proposed Utilisation Date; 

  

	 	(c)	one Term is specified which: 

  

	 	(i)	does not extend beyond the Final Maturity Date; and 

  

	 	(ii)	is a period of one, two, three or six months. 

  

	 	(d)	the payment instructions comply with Clause 10 (Payments); 

  

	 	(e)	the amount selected under paragraph (b) above does not cause Clause 2.3 (Limits) to be contravened; and 

  

	 	(f)	if the currency selected is an Optional Currency it complies with Clause 9 (Optional Currencies). 

  

	5.3	Amount of each Bank’s participation in a Loan  

  
 The amount of each Bank’s participation in each Loan will be equal to the proportion of that Loan which its Commitment bears to the Total Commitments
on the date of receipt of the relevant Request. 
  

	5.4	Notification of the Banks  

  
 The Agent shall promptly notify each Bank of the details of the requested Loan and the amount of its participation in the Loan. 
  

	5.5	Payment of proceeds  

  
 Subject to the terms of this Agreement, each Bank shall make its participation in each Loan available to the Agent for the Company on the relevant
Utilisation Date. 
  

	6.	REPAYMENT  

  

	(a)	The Company must repay each Loan made to it in full on its Repayment Date. 

  

	(b)	Subject to the other terms of this Agreement, any amounts repaid under paragraph (a) above may be re-borrowed. 

  

	(c)	Any amount of any Loan still outstanding on the Final Maturity Date shall be repaid on that Final Maturity Date. 

  

	(d)	In relation to any outstanding Loan, if the Company does not serve a Request requesting a Loan with a proposed Utilisation Date on the last day of the Term for the outstanding Loan
in an amount at least equal to that Loan, the Company shall, unless it specifically notifies the Agent to the contrary not later than 3 Business Days prior to the last day of the relevant Term 

  

 18 

 be deemed to have served a Request and to have made the confirmations in paragraphs 2 to 4 inclusive of
the form of request in Schedule 4 (Form of Request) to this Agreement requesting a Loan in an equal amount to the outstanding Loan, with a proposed Utilisation Date of the last day of the Term, with a term of 3 months. The proceeds of the new Loan,
when made in accordance with the terms of this Agreement, shall be applied in repayment of the outstanding Loan. 
  

	7.	PREPAYMENT AND CANCELLATION  

  

	7.1	Automatic cancellation of the Total Commitments 

  
 The Commitment of each Bank shall be automatically cancelled at close of business on the last day of the Availability Period. 
  

	7.2	Voluntary cancellation 

  
 The Company may, by giving not less than five days’ prior notice to the Agent, cancel the unutilised portion of the Total Commitments in whole or in
part (but, if in part, in a minimum Original Dollar Amount of US$10,000,000 (or its comparable amounts in any Optional Currency) or the balance of the unutilised Total Commitments, whichever is lower). Any cancellation in part shall be applied
against the Commitment of each Bank pro rata. 
  

	7.3	Voluntary Prepayment 

  
 The Company may, on giving not less than ten days’ prior notice to the Agent, prepay all or any part of the Loans (but, if in part, in a minimum
Original Dollar Amount of US$10,000,000 (or its comparable amounts in any Optional Currency) or the balance of the outstanding Loans under the Facility, whichever is lower). Any partial prepayment of the Loans shall be applied pro rata against the
participation of each Bank in that Loan. 
  

	7.4	Additional right of prepayment and cancellation 

  
 If the Company is required to pay any amount to or for the account of a Bank under Clause 11 (Taxes) or Clause 13 (Increased Costs) the Company may,
whilst the circumstances giving rise to the requirement continue, serve a notice of prepayment and cancellation on that Bank through the Agent. On the date falling five Business Days after the date of service of the notice: 
  

	 	(a)	the Company shall prepay that Bank’s participation in all the Loans together with all other amounts payable by it to that Bank under this Agreement; and

  

	 	(b)	the Bank’s Commitment shall be cancelled. 

  

	7.5	Miscellaneous provisions 

  

	(a)	Any notice of prepayment and/or cancellation under this Agreement is irrevocable. The Agent shall notify the Banks promptly of receipt of any such notice. 

 

	(b)	All prepayments under this Agreement shall be made together with accrued interest on the amount prepaid. 

  

	(c)	No prepayment or cancellation is permitted except in accordance with the express terms of this Agreement. 

  

 19 

	(d)	Subject to the terms of this Agreement, any amount of a Loan repaid under this Agreement may subsequently be re-borrowed. 

  

	(e)	No amount of any Commitment cancelled under this Agreement may subsequently be reinstated. 

  

	7.6	Mandatory prepayment - change of control 

  

	(a)	For the purposes of this Clause: 

  
 a change of control occurs if any person or group of persons acting in concert gains control of the Company; 
  
 acting in concert has the meaning given to it in the City Code on
Takeovers and Mergers; and 
  
 control has the meaning
given to it in section 416 of the Income and Corporation Taxes Act 1988. 
  

	(b)	The Company must promptly notify the Agent if it becomes aware of any change of control. 

  

	(c)	Within 30 days after the earlier of notification by the Company to the Agent, or the Agent to the Banks, of a change of control, any Bank may, by notice from the Agent to the
Company: 

  

	 	(i)	cancel that Bank’s Commitment; and 

  

	 	(ii)	declare all that Bank’s Pro Rata Share in outstanding Loans, together with accrued interest and all other amounts accrued under the Finance Documents, to be immediately due and
payable. 

  
 Any such notice will take effect in
accordance with its terms. 
  

	7.7	Mandatory prepayment - securitisation proceeds 

  
 To the extent a securitisation by a UK Subsidiary is permitted under, and a prepayment is required by, Clause 16.13(e) (Restriction on Borrowings of UK
Subsidiaries): 
  

	 	(a)	if any UK Subsidiary receives proceeds from any securitisation of assets of the Group or transaction of a similar effect (the Securitisation Proceeds), the Company shall
notify the Agent promptly after receipt of those proceeds; 

  

	 	(b)	the Company shall promptly following receipt of those proceeds by the relevant member of the Group repay or prepay an amount equal to 75 per cent. of the Securitisation Proceeds
(less any fees, costs and expenses relating to the relevant issue of debt securities) in repayment or prepayment of the Loans and the Existing Facility B Loans, pro rata. 

  

	 	(c)	Total Commitments and Existing Facility B Total Commitments shall be cancelled on a pro rata basis by an amount equal to 75 per cent. of the Securitisation Proceeds.

  

 20 

	7.8	Mandatory prepayment - proceeds of new Group indebtedness 

  
 To the extent Borrowings by UK Subsidiaries are permitted under, and a prepayment is required by, paragraphs (d) and (g) of Clause 16.13 (Restriction on
Borrowings of UK Subsidiaries): 
  

	 	(a)	if any UK Subsidiary incurs any Borrowings after the date of this Agreement, the Company shall notify the Agent promptly after receipt of those proceeds; 

 

	 	(b)	the Company shall promptly following receipt by the relevant UK Subsidiary of any proceeds from the relevant Borrowings, repay or prepay an amount equal to 100 per cent. of those
proceeds (less any fees, costs and expenses relating to the Borrowings): in repayment or prepayment of the Loans and the Existing Facility B Loans, pro rata. 

  

	 	(c)	the Total Commitments and Existing Facility B Total Commitments shall be cancelled on a pro rata basis by an amount equal to 100 per cent. of the proceeds referred to in paragraph
(a) above. 

  

	8.	INTEREST  

  

	8.1	Interest rate 

  
 Subject to Clause 8.5 (Default interest), the rate of interest on each Loan for its Term is the rate per annum determined by the Agent to be the aggregate
of the applicable: 
  

	 	(a)	Margin; 

  

	 	(b)	IBOR; and 

  

	 	(c)	Mandatory Cost. 

  

	8.2	Margin adjustment 

  
 Any reduction or increase in the Margin during the Term of a Loan shall be determined on the Business Day immediately following receipt by the Agent of a
notice referred to in Clause 16.17 (Rating change) from the Company (or any equivalent notice from a Finance Party) and shall take effect from the date on which the relevant change in, or withdrawal of, the long term credit rating assigned to the
Company by S&P, Moody’s or any other rating agency approved for this purpose by the Majority Banks (as the case may be) was first published. 
  

	8.3	Non-Business Days 

  
 If a Term would otherwise end on a day which is not a Business Day, that Term shall instead end on the next Business Day in that calendar month (if there
is one) or the preceding Business Day (if there is not). 
  

	8.4	Due dates 

  
 Except as otherwise provided in this Agreement, accrued interest on each Loan is payable by the Company on the last day of its Term and also, if the Term
is longer than 6 months, on the date falling at 6 monthly intervals after the first day of that Term. 
  

 21 

	8.5	Default interest 

  

	(a)	If the Company fails to pay any amount payable by it under the Finance Documents, it shall forthwith on demand by the Agent pay interest on the overdue amount from the due date up
to the date of actual payment, both before, on and after judgement, at a rate (the default rate) determined by the Agent to be one per cent. per annum above the rate which would have been payable if the overdue amount had, during the period
of non-payment, constituted a Loan in the currency of the overdue amount for such successive Terms of such duration as the Agent may determine (each a Designated Term), that default rate applying to those overdue amounts instead of the rate
under Clause 8.1 (Interest rate). 

  

	(b)	The default rate will be determined on each Business Day or the first day of the relevant Designated Term, as appropriate. 

  

	(c)	If the Agent is informed that deposits in the currency of the overdue amount are not at the relevant time being made available by the Reference Banks to leading banks in the London
interbank market, the default rate will be determined by reference to the cost of funds to the Agent from whatever sources it reasonably selects, after consultation with the Reference Banks. 

  

	(d)	Default interest will be compounded at the end of each Designated Term. 

  

	8.6	Notification of rates of interest 

  
 The Agent shall promptly notify each relevant Party of the determination of a rate of interest under this Agreement. 
  

	8.7	Terms 

  

	(a)	Each Loan has one Term only which will commence on its Utilisation Date. 

  

	(b)	The Company will select the Term for a Loan in the relevant Request. If the Company does not deliver a notice, the Term will be three months. 

  

	(c)	Subject to the following provisions of this Clause, each Term for a Loan will be one, two, three or six months. 

  

	(d)	If a Term would otherwise overrun the Final Maturity Date it shall be shortened so that it ends on the Final Maturity Date. 

  

	9.	OPTIONAL CURRENCIES  

  

	9.1	Selection 

  

	(a)	The Company shall select the currency of a Loan in the relevant Request. 

  

	(b)	The currency of each Loan must be US Dollars or an Optional Currency. 

  

	(c)	The Company may not choose a currency if as a result the Loans would be denominated at any time in more than 3 currencies. 

  

	(d)	The Agent shall notify each Bank of the currency and the Original Dollar Amount of each Loan and the applicable Agent’s Spot Rate of Exchange promptly after they are
ascertained. 

  

 22 

	9.2	Revocation of currency 

  
 If, before 9.30 a.m. on any Rate Fixing Day, the Agent receives notice from a Bank that: 
  

	 	(a)	it is impracticable for the Bank to fund its participation in the relevant Loan in the relevant Optional Currency during its Term in the ordinary course of business in the London
interbank market; and/or 

  

	 	(b)	the use of the proposed Optional Currency might contravene any law or regulation, 

  
 the Agent shall give notice to the Company and to the Banks to that effect before 11.00 a.m. on that day. In this event:

  

	 	(i)	the Company and the Banks may agree that the drawdown will not be made; or 

  

	 	(ii)	in the absence of agreement, that Bank’s participation in the Loan (or, if more than one Bank is similarly affected, those Banks’ participations in the Loan) shall be
treated as a separate Loan denominated in US Dollars during the relevant Term. 

  

	9.3	Optional Currency equivalents 

  
 The equivalent in US Dollars of a Loan or part of a Loan in an Optional Currency for the purposes of calculating: 
  

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

  

	 	(b)	the amount of a Loan; 

  

	 	(c)	the share of a Bank in a Loan; 

  

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

  

	 	(e)	the undrawn amount of a Bank’s Commitment, 

  
 is its Original Dollar Amount. 
  

	9.4	Notification of rates and amounts 

  
 The Agent shall promptly notify each Party of any applicable Agent’s Spot Rate of Exchange or Original Dollar Amount. 
  

	10.	PAYMENTS 

  

	10.1	Place 

  
 All payments by the Company or a Bank under the Finance Documents shall be made to the Agent to its account at such office or bank as it may notify to the
Company or that Bank for this purpose. 
  

	10.2	Funds 

  
 Payments under the Finance Documents to the Agent shall be made for value on the due date at such times and in such funds as the Agent may specify to the
Party concerned as being customary at the time for the settlement of transactions in the relevant currency in the place for payment. 
  

 23 

	10.3	Distribution 

  

	(a)	Each payment received by the Agent under this Agreement for another Party shall, subject to paragraphs (b) and (c) below, be made available by the Agent to that Party by payment (on
the date and in the currency and funds of receipt) to its account with such office or bank: 

  

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

  

	 	(ii)	in the case of euro units or national currency units, in the principal financial centre of a Participating Member State or London, 

  
 as it may notify to the Agent for this purpose by not less than 5 Business
Days’ prior notice. 
  

	(b)	The Agent may apply any amount received by it for the Company in or towards payment (on the date and in the currency and funds of receipt) of any amount due from the Company under
the Finance Documents. 

  

	(c)	Where a sum is to be paid under the Finance Documents to the Agent for the account of another Party, the Agent is not obliged to pay that sum to that Party until it has established
that it has actually received that sum. The Agent may, however, assume that the sum has been paid to it in accordance with this Agreement and, in reliance on that assumption, make available to that Party a corresponding amount. If the sum has not
been made available but the Agent has paid a corresponding amount to another Party, that Party shall forthwith on demand refund the corresponding amount to the Agent together with interest on that amount from the date of payment to the date of
refund, calculated at a rate determined by the Agent to reflect its cost of funds. 

  

	10.4	Currency 

  

	(a)	A repayment or prepayment of a Loan or any part of a Loan is payable in the currency in which the Loan is denominated on its due date. 

  

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

  

	(c)	Amounts payable in respect of costs, expenses, taxes and the like are payable in the currency in which they are incurred. 

  

	(d)	Any other amount payable under the Finance Documents is, except as otherwise provided in this Agreement, payable in US Dollars. 

  

	10.5	Set-off and counterclaim 

  
 All payments made by the Company under the Finance Documents shall be made without set-off or counterclaim. 
  

	10.6	Non-Business Days 

  

	(a)	If a payment under the Finance Documents is due on a day which is not a Business Day, the due date for that payment shall instead be the next Business Day in the same calendar month
(if there is one) or the preceding Business Day (if there is not). 

  

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

  

 24 

	10.7	Partial payments 

  

	(a)	If the Agent receives a payment insufficient to discharge all the amounts then due and payable by the Company under the Finance Documents, the Agent shall apply that payment towards
the obligations of the Company under the Finance Documents in the following order: 

  

	 	(i)	first, in or towards payment of any unpaid costs and expenses of the Agent under the Finance Documents; 

  

	 	(ii)	secondly, in or towards payment pro rata of any accrued fees due but unpaid under Clause 19.2 (Commitment fee) and Clause 19.3 (Utilisation fee); 

  

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

  

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

  

	(b)	The Agent shall, if so directed by all the Banks, vary the order set out in subparagraphs (a)(ii) to (iv) above. 

  

	(c)	Paragraphs (a) and (b) above shall override any appropriation made by the Company. 

  

	10.8	Netting of payments 

  

	(a)	If on any date an amount (the first amount) is to be advanced or paid by a Bank under this Agreement and an amount (the second amount) is due from the Company to that
Bank under the Finance Documents, the Company instructs that Bank to apply the first amount in or towards payment of the second amount. 

  

	(b)	The relevant Bank shall remain obliged to advance any excess (or, as the case may be, the Company shall remain obliged to pay any shortfall) in accordance with this Clause 10.
Nothing in this Clause 10.8 shall be effective to create a charge. 

  

	11.	TAXES 

  

	11.1	Gross-up 

  
 All payments by the Company under the Finance Documents shall be made free and clear of and without deduction for or on account of any taxes levied or
imposed by or on behalf of the UK or any taxing authority thereof or therein except to the extent that the Company is required by law to make payment subject to any taxes. If any tax or amounts in respect of tax must be deducted from any amounts
payable or paid by the Company, or paid or payable by the Agent to a Bank, under the Finance Documents, the Company shall pay such additional amounts as may be necessary to ensure that the relevant Bank receives a net amount equal to the full amount
which it would have received had payment not been made subject to tax. 
  

	11.2	Tax receipts 

  
 All taxes required by law to be deducted or withheld by the Company from any amounts paid or payable under the Finance Documents shall be paid by the
Company when due and the Company shall, within 30 days of the payment being made, deliver to the Agent for the relevant Bank an original or certified copy of an official receipt or such other evidence, if any, as is then customary, evidencing that
such deduction or withholding has been made and has been accounted for to the appropriate authorities. 
  

 25 

	11.3	Qualifying Banks 

  

	(a)	If, otherwise than as a result of the introduction of, change in, or change in the interpretation, administration or application of, any law, treaty or regulation or any practice or
concession of the UK Inland Revenue occurring after the date of this Agreement, a Bank is not or has ceased to be a Qualifying Bank or is not or has ceased to be beneficially entitled to all interest received by it in respect of advances made by it
under this Agreement, the Company will not be liable to pay to or for the account of that Bank under Clause 11.1 (Gross-up) any amount in respect of taxes levied or imposed by the UK or any taxing authority of or in the UK in excess of the amount it
would have been obliged to pay if that Bank had been, or had not ceased to be a Qualifying Bank and had been beneficially entitled to all interest received by it in respect of advances made by it under this Agreement. 

  

	(b)	Each Bank warrants and represents to the Company on the date of this Agreement or (if later) on the date on which it becomes a Party that it is a Qualifying Bank and is beneficially
entitled to all interest receivable by it in respect of advances made by it under this Agreement. 

  

	(c)	Each Bank which ceases to be a Qualifying Bank or which ceases to be beneficially entitled to interest received by it in respect of advances made by it under this Agreement will
notify the Company forthwith upon becoming aware that it has so ceased. 

  

	11.4	Tax Credit 

  

	(a)	If the Company makes a payment pursuant to Clause 11.1 (Gross-up) for the account of any Bank and that Bank has received or been granted and utilised on an affiliated group basis a
credit against, or relief or remission or repayment of, any tax paid or payable by it (a Tax Credit) which is attributable to that payment or the corresponding payment under the Finance Document that Bank shall, to the extent that it can do
so without prejudice to the retention of the amount of such credit, relief, remission or repayment, pay to the Company such amount as the Bank shall have reasonably determined to be attributable to such payments and which will leave the Bank (after
such payment) in no better or worse position than it would have been if the Company had not been required to make any deduction or withholding. 

  

	(b)	Nothing in this Clause 11.4 shall interfere with the right of a Bank to arrange its tax affairs in whatever manner it thinks fit and without limiting the foregoing no Bank shall be
under any obligation, except as expressly stated in sub-clause (a) above, to claim a Tax Credit or to claim a Tax Credit in priority to any other claims, relief, credit or deduction available to it. No Bank shall be obliged to disclose any
information relating to its tax affairs or any computations in respect thereof. 

  

	11.5	Tax indemnity 

  
 In this Clause 11.5, Protected Party means a Finance Party which is or will be subject to any liability, or required to make any payment, for or on
account of tax in relation to a sum received or receivable (or any sum deemed for the purposes of tax to be received or receivable) under a Finance Document. 
  

	 	(a)	The Company shall (within three Business Days of demand by the Agent) pay to a Protected Party an amount equal to the loss, liability or cost which that Protected Party determines
will be or has been (directly or indirectly) suffered for or on account of tax by that Protected Party in respect of a Finance Document. 

  

 26 

	 	(b)	Paragraph (a) above shall not apply: 

  

	 	(i)	with respect to any tax assessed on a Finance Party: 

  

	 	(A)	under the law of the jurisdiction in which that Finance Party is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Finance Party is treated as
resident for tax purposes; or 

  

	 	(B)	under the law of the jurisdiction in which that Finance Party’s Facility Office is located in respect of amounts received or receivable in that jurisdiction,

  
 if that tax is imposed on or calculated by
reference to the net income received or receivable (but not any sum deemed to be received or receivable) by that Finance Party; or 
  

	 	(ii)	to the extent a loss, liability or cost: 

  

	 	(A)	is compensated for by an increased payment under Clause 11.1 (Gross-up) or 

  

	 	(B)	would have been compensated for by an increased payment under Clause 11.1 (Gross-up) but was not so compensated solely because one of the exclusions in Clause 11.3(a) (Qualifying
Banks) applied. 

  

	 	(c)	A Protected Party making, or intending to make a claim under paragraph (a) above shall promptly notify the Agent of the event which will give, or has given, rise to the claim,
following which the Agent shall notify the Company. 

  

	 	(d)	A Protected Party shall, on receiving a payment from a Company under this Clause 11.5, notify the Agent. 

  

	12.	MARKET DISRUPTION 

  

	12.1	Market disturbance 

  

	(a)	If IBOR is to be determined by reference to the Reference Banks and a Reference Bank does not supply an offered rate by 11.30 a.m. on the applicable Rate Fixing Day, the applicable
IBOR shall, subject to paragraph (b) below, be determined on the basis of the quotations of the remaining Reference Banks. 

  

	(b)	If, in relation to any proposed Loan: 

  

	 	(i)	IBOR is to be determined by reference to the Reference Banks and no, or only one, Reference Bank supplies a rate by 11.30 a.m. on the applicable Rate Fixing Day for the purposes of
determining the applicable IBOR; or 

  

	 	(ii)	the Agent otherwise determines (which determination, made by the Agent acting reasonably, shall be conclusive and binding on all parties) that adequate and fair means do not exist
for ascertaining the applicable IBOR, 

  
 the Agent
shall promptly notify the Company and the relevant Banks of the fact and that this Clause 12 is in operation. 
  

 27 

	12.2	Alternative rates 

  
 If the Agent gives a notice under Clause 12.1 (Market disturbance): 
  

	 	(a)	the Company and the Banks may (through the Agent) agree that in the case of a Loan which has not been borrowed, that Loan shall not be borrowed; or 

  

	 	(b)	in the absence of agreement, a Loan (if it has not been borrowed) shall still be made: and 

  

	 	(i)	the Term of the Loans concerned shall be one month; and 

  

	 	(ii)	during the Term of each Loan the rate of interest applicable to that Loan shall be the applicable Margin plus the Mandatory Cost plus the rate per annum which is expressed as a
percentage rate per annum of the cost to the Bank concerned of funding that Loan from whatever sources it may reasonably select, which rate shall be notified by the Bank concerned to the Agent before that last date of such Term.

  

	13.	INCREASED COSTS 

  

	13.1	Increased costs 

  

	(a)	Subject to Clause 13.2 (Exceptions), the Company shall forthwith on demand by a Finance Party or any of its Affiliates pay that Finance Party the amount of any increased cost
incurred by it as a result of: 

  

	 	(i)	the introduction of, or any change in, or any change in the interpretation or application of, any law or regulation (including any relating to taxation or reserve asset, special
deposit, cash ratio, liquidity or capital adequacy requirements or any other form of banking or monetary control); or 

  

	 	(ii)	compliance with any law or regulation made after the date of this Agreement. 

  

	(b)	In this Agreement increased cost means: 

  

	 	(i)	an additional cost incurred by a Finance Party or any of its Affiliates as a result of it having entered into, or performing, maintaining or funding its obligations under, this
Agreement; or 

  

	 	(ii)	that portion of an additional cost incurred by a Finance Party or any of its Affiliates in making, funding or maintaining all or any advances comprised in a class of advances formed
by or including the participations in the Loans made or to be made under this Agreement as is attributable to it making, funding or maintaining those participations; or 

  

	 	(iii)	a reduction in any amount payable to a Finance Party or any of its Affiliates or the effective return to a Finance Party or any of its Affiliates under this Agreement or on its
capital; or 

  

	 	(iv)	the amount of any payment made by a Finance Party or any of its Affiliates, or the amount of interest or other return foregone by a Finance Party or any of its Affiliates,
calculated by reference to any amount received or receivable by a Finance Party or any of its Affiliates from any other Party under this Agreement. 

  

 28 

	13.2	Exceptions 

  
 Clause 13.1 (Increased costs) does not apply to any increased cost: 
  

	 	(a)	compensated for by the payment of the Mandatory Cost; 

  

	 	(b)	attributable to any tax or amounts in respect of tax which must be deducted from any amounts payable or paid by the Company or payable or paid by the Agent to a Finance Party or any
of its Affiliates under the Finance Documents; 

  

	 	(c)	attributable to any change in the rate of tax on the overall net income, profits or gains of a Bank (or the overall net income, profits or gains of a division or branch of the Bank)
imposed in the jurisdiction in which its principal office or Facility Office is situate. 

  

	14.	ILLEGALITY AND MITIGATION 

  

	14.1	Illegality 

  
 If it is or becomes unlawful in any jurisdiction for a Bank to give effect to any of its obligations as contemplated by this Agreement or to fund or
maintain its participation in any Loan, then: 
  

	 	(a)	the Bank may notify the Company through the Agent accordingly; and 

  

					
	 (b)
	  	(i)	  	the Company shall to the extent required and within the period allowed by law or regulation or, if no period is allowed by law or regulation, forthwith prepay that Bank’s participation
in all the Loans together with all other amounts payable by it to that Bank under this Agreement; and

  

	 	(ii)	the Bank’s Commitment shall be cancelled. 

  

	14.2	Mitigation 

  
 Notwithstanding the provisions of Clauses 11 (Taxes), 13.1 (Increased costs) and 14.1 (Illegality), if in relation to a Bank or (as the case may be) the
Agent circumstances arise which would result in: 
  

	 	(a)	any deduction, withholding or payment of the nature referred to in Clause 11 (Taxes); or 

  

	 	(b)	any increased cost of the nature referred to in Clause 13.1 (Increased costs); or 

  

	 	(c)	a notification pursuant to 14.1 (Illegality), 

  
 then without in any way limiting, reducing or otherwise qualifying the rights of that Bank or the Agent, that Bank shall upon becoming aware of the same
notify the Agent thereof (whereupon the Agent shall notify the Company) and such Bank shall use reasonable endeavours to transfer its participation in the Facility and, in the case of the Agent or that Bank, its rights hereunder and under the
Finance Documents to another financial institution or Facility Office not affected by the circumstances having the results set out in (a), (b) or (c) above and shall otherwise take such reasonable steps as may be open to it to mitigate the effects
of such circumstances provided that such Bank or the Agent (as the case may be) shall not be under any obligation to take any such action if, in its reasonable opinion, to do so 
  

 29 

 might have a material adverse effect upon its business, operations or financial condition or might
involve it in any unlawful activity or any activity that is contrary to any request, guidance or directive of any competent authority (whether or not having the force of law) or (unless indemnified to its satisfaction) might involve it in any
expense or tax disadvantage. 
  

	15.	REPRESENTATIONS AND WARRANTIES 

  

	15.1	Representations and warranties 

  
 The Company (in respect of itself and the Group) makes the representations and warranties set out in this Clause 15 (Representations and warranties) to
each Finance Party. 
  

	15.2	Status 

  

	(a)	It is a limited liability company, duly incorporated and validly existing under the laws of the jurisdiction of its incorporation; and 

  

	(b)	each member of the Group has the power to own its assets and carry on its business as it is being conducted. 

  

	15.3	Powers and authority 

  
 It has the power to enter into and perform, and has taken all necessary action to authorise the entry into, performance and delivery of, the Finance
Documents to which it is or will be a party and the transactions contemplated by those Finance Documents. 
  

	15.4	Legal validity 

  
 Each Finance Document to which it is or will be a party constitutes, or when executed in accordance with its terms will constitute, its legal, valid and
binding obligation, enforceable (subject to the Reservations) in accordance with its terms. 
  

	15.5	Non-conflict 

  
 The entry into and performance by it of, and the transactions contemplated by, the Finance Documents do not and will not conflict with: 
  

	 	(a)	any law or regulation or judicial or official order; or 

  

	 	(b)	the constitutional documents of any member of the Group; or 

  

	 	(c)	to the best of the knowledge, information and belief of its Directors, any document which is binding upon any member of the Group or any asset of any member of the Group, to an
extent or in a manner which would have a material adverse effect on its ability to perform its obligations under this Agreement. 

  

	15.6	No default 

  

	(a)	No Default is outstanding or would result from the making of any Loan; and 

  

	(b)	no other event is outstanding which constitutes (or, with the giving of notice, lapse of time, determination of materiality or the fulfilment of any other applicable condition or
any combination of the foregoing, is reasonably likely to constitute) a default under any document which is binding on any member of the Group or any asset of any member of the Group to an extent or in a manner which might have a material adverse
effect on its ability to perform its obligations under the Finance Documents. 

  

 30 

	15.7	Authorisations and admissibility in evidence 

  
 All authorisations required: 
  

	 	(a)	in connection with the entry into, performance, validity and enforceability of, and the transactions contemplated by, the Finance Documents; and 

  

	 	(b)	to make the Finance Documents admissible in evidence in England and Wales, 

  

	 	have	been obtained or effected (as appropriate) and are in full force and effect. 

  

	15.8	Licences 

  
 Each member of the Group which requires a Licence for the conduct of its business has been duly licensed. 
  

	15.9	Accounts 

  
 The audited consolidated accounts of the Group most recently delivered to the Agent (which in respect of the Company only, at the date of this Agreement,
are the Original Group Accounts): 
  

	 	(a)	have been prepared in accordance with accounting principles and practices generally accepted in the United Kingdom consistently applied; and 

  

	 	(b)	fairly represent the consolidated financial condition of the Group as at the date to which they were drawn up. 

  

	15.10	Litigation 

  
 Save as disclosed in writing to the Agent prior to the date of this Agreement, no litigation, arbitration or administrative proceedings in relation to any
member of the Group are current or, to its knowledge, pending or threatened, which are reasonably expected to be adversely determined and which would, if adversely determined, be likely to have a material adverse effect on the ability of the Company
to perform its obligations under this Agreement. 
  

	15.11	Information 

  

	(a)	All of the factual information (including all information relating to the Company provided in the information memorandum dated 27th April, 2004 (the Information Memorandum))
supplied by it to the Agent in connection with the Finance Documents is true in all material respects and not misleading in any respect and there are no facts or matters not disclosed in writing to the Agent the omission of which makes any such
factual information incorrect or misleading in any respect. 

  

	(b)	Nothing has occurred since the date the information was provided which renders the information contained in it untrue or misleading in any material respect and which, if disclosed,
may affect the decision of a person considering whether to enter into this Agreement. 

  

 31 

	(c)	The financial projections contained or referred to in the Information Memorandum have been prepared as at their date, on the basis of recent historical information and assumptions
believed by the Company to be reasonable. 

  

	(d)	Each expression of opinion or intention contained in the financial projections referred to in paragraph (c) above was made after careful consideration and enquiry and is believed by
the Company to be reasonable as at the date at which it is stated to be given. 

  

	15.12	Pari passu ranking 

  
 Its payment obligations under the Finance Documents rank at least pari passu with all its other present and future unsecured payment obligations, except
for obligations mandatorily preferred by law applying to companies generally. 
  

	15.13	No material adverse change 

  
 As at the date of this Agreement, there has been no material adverse change in the consolidated financial condition of the Group since the date to which
the Original Group Accounts were drawn up. 
  

	15.14	Deduction of Tax 

  

	(a)	It is not overdue in the filing of any tax returns or filings relating to any material amount of tax and it is not overdue in the payment of any material amount of, or in respect
of, tax. 

  

	(b)	No claims or investigations by any tax authority are being or are reasonably likely to be made or conducted against it which are reasonably likely to result in a liability of or
claim against any member of the Group to pay any material amount of, or in respect of, tax. 

  

	(c)	For tax purposes, it is resident only in the jurisdiction of its incorporation. 

  

	(d)	All amounts payable by it under the Finance Documents may be made without any deduction for or on account of tax. 

  

	15.15	Labour-related liabilities 

  

	(a)	No claims or investigations by any relevant authority are being or are reasonably likely to be made or conducted against it which are reasonably likely to result in a liability of
or claim against any member of the Group to pay any material amount of, or in respect of, pensions, ERISA or similar labour-related liabilities. 

  

	(b)	Each relevant member of the Group has fulfilled its obligations under the minimum funding standards of ERISA and the Internal Revenue Code with respect to each Plan and is in
compliance in all material respects with the presently applicable provisions of ERISA and the Internal Revenue Code with respect to each Plan. Where applicable, no member of the Group has (i) failed to make any contribution or payment to any Plan or
Multiemployer Plan (as the case may be), or made any amendment to any Plan, which has resulted or would result in the imposition of a Security Interest or the posting of a bond or other security under ERISA or the Internal Revenue Code or (ii)
incurred any liability under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA, except where such failure or incurrence would not have a material adverse effect on the ability of the Company to perform its
obligations under this Agreement. 

  

 32 

 For the purposes of this Clause: 
  
 ERISA means the Employee Retirement Income Security Act of 1974, as amended, or any successor statute. 
  
 Internal Revenue Code means the Internal Revenue Code of 1986, as
amended, or any successor statute. 
  
 Multiemployer Plan
means at any time an employee pension benefit plan within the meaning of Section 4001(a)(3) of ERISA to which any member of the Group is then making or accruing an obligation to make contributions or has within the preceding five plan years made
contributions, including for these purposes any company which ceased to be a member of the Group during such five year period. 
  
 PBGC means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA. 
  
 Plan means at any time an employee pension benefit plan (other than a
Multiemployer Plan) which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Internal Revenue Code and either (i) is maintained, or contributed to, by any relevant member of the Group for employees
of any relevant member of the Group or (ii) has at any time within the preceding five years been maintained, or contributed to, by any company which was at such time a member of the Group for employees of any company which was at such time a member
of the Group. 
  

	15.16	Winding up, insolvency etc. 

  
 No meeting has been convened for the winding-up, administration, dissolution or liquidation of the Company, no such step is intended by the Company and,
so far as the Company is aware, no petition, application or equivalent or analogous procedure under the law of the jurisdiction of its incorporation is outstanding for the winding-up, administration, dissolution or liquidation of the Company.

  

	15.17	Environment 

  

	(a)	It has obtained all Environmental Licences required for the carrying on of its business as currently conducted and has at all times complied with: 

  

	 	(i)	the terms and conditions of such Environmental Licences; and 

  

	 	(ii)	all other applicable Environmental Laws, 

  
 where, in each case, if not obtained or complied with the failure or its consequences would have a material adverse effect on the ability of the Company
to perform its obligations under this Agreement. There are to its knowledge no circumstances that may prevent or interfere with such compliance in the future. 
  

	(b)	There is no Environmental Claim pending or formally threatened and there are no past or present acts, omissions, events or circumstances that would form, or are reasonably likely to
form, the basis of any Environmental Claim (including any arising out of the generation, storage, transport, disposal or release of any dangerous substance) against any member of the Group which, if adversely determined, would have a material
adverse effect on the ability of the Company to perform its obligations under this Agreement. 

  

 33 

	15.18	Times for making representations and warranties 

  
 The representations and warranties set out in this Clause 15 are made by the Company on the date of this Agreement and, other than Clause 15.11
(Information) and 15.13 (No material adverse change), are deemed to be repeated by the Company on the date of each Request, the date of each deemed Request made pursuant to Clause 6(d) (Repayment), each Utilisation Date and the first day of each
Term, with reference to the facts and circumstances then existing, and in any case on a quarterly basis following the date of this Agreement. 
  

	16.	UNDERTAKINGS 

  

	16.1	Duration 

  
 The undertakings in this Clause 16 (Undertakings) will remain in force from the date of this Agreement for so long as any amount is or may be outstanding
under this Agreement or any Commitment is in force. 
  

	16.2	Financial information 

  

	(a)	The Company shall supply to the Agent in sufficient copies for all the Banks: 

  

	 	(i)	as soon as the same are available (and in any event within 180 days of the end of each of its financial years) the audited consolidated accounts of the Group for that financial
year; 

  

	 	(ii)	as soon as the same are available (and in any event within 90 days of the end of the first half-year of each of its financial years) the unaudited consolidated accounts of the Group
for that half-year; 

  

	 	(iii)	(in respect of the Company only), together with the accounts specified in: 

  

	 	(A)	paragraph (i) above, a certificate signed by two of its directors on its behalf setting out in reasonable detail computations establishing compliance with Clause 16.12 (Financial
covenants) as at the date to which those accounts were drawn up, together with a report from the Company’s auditors in the agreed form; 

  

	 	(B)	paragraph (ii) above, a certificate signed by two of its directors on its behalf setting out in reasonable detail computations establishing compliance with Clause 16.12 (Financial
covenants) as at the date to which those accounts were drawn up; and 

  

	 	(iv)	as soon as the same are available (and in any event within 90 days from the end of the period for which they are produced) the quarterly unaudited consolidated accounts of the
Group. 

  

					
	 (b)
	  	 (i) 	 	 The Company must notify the Agent of any change to the manner in which its audited consolidated accounts are prepared.

  

	 	(ii)	If requested by the Agent, the Company must supply to the Agent: 

  

	 	(A)	a full description of any change notified under paragraph (b)(i) above; and 

  

 34 

	 	(B)	sufficient information to enable the Finance Parties to make a proper comparison between the financial position shown by the set of accounts prepared on the changed basis and its
most recent audited consolidated accounts delivered to the Agent under this Agreement. 

  

	 	(iii)	The Company may, or if requested by the Agent the Company must, enter into discussions for a period of not more than 30 days with a view to agreeing any amendments required to be
made to this Agreement to place the Company and the Banks in the same position as they would have been in if the change had not happened. Any agreement between the Company and the Agent will be, with the prior consent of the Majority Banks, binding
on all the Parties. 

  

	 	(iv)	If no agreement is reached under paragraph (iii) above on the required amendments to this Agreement, the Company must supply with each set of its accounts another set of its
accounts prepared on the same basis as the Original Group Accounts. 

  

	16.3	Information - Miscellaneous 

  
 The Company shall supply to the Agent: 
  

	 	(a)	all documents despatched by it to its shareholders (or any class of them) or its creditors (or any class of them) at the same time as they are despatched; 

 

	 	(b)	promptly upon becoming aware of them, details of any litigation, arbitration or administrative proceedings which are current, threatened or pending, and which might, if adversely
determined, have a material adverse effect on its ability to perform its obligations under the Finance Documents; and 

  

	 	(c)	promptly, such further information in the possession or control of any member of the Group regarding its financial condition, business or operations as any Finance Party through the
Agent may reasonably request, 

  
 in sufficient
copies for all of the Banks, if the Agent so requests. 
  

	16.4	Notification of Default 

  
 The Company shall notify the Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of it. 
  

	16.5	Principal Subsidiaries 

  
 The Company shall promptly inform the Agent of the identity of each member of the Principal Subsidiary Group in each certificate which the Company
delivers under Clause 16.2(a)(iii) (Financial information). That certificate shall set out in reasonable detail computations establishing that the aggregate EBITDA and Net Assets of the Principal Subsidiary Group equals or exceeds 75 per cent. of
Consolidated EBITDA and Net Assets of the Group respectively. 
  

	16.6	Compliance certificates 

  
 The Company shall supply to the Agent promptly at any time, if the Majority Banks so request and they have or the Agent has grounds for believing that a
Default may be outstanding, a statement signed by one of its senior officers on its behalf incorporating such information as it has in its possession which may be relevant as to whether any Default is 
  

 35 

 outstanding and, if a Default is stated to be outstanding, stating the steps if any being taken to remedy
it. Such statements shall contain such certificates as the Majority Banks may reasonably require as to questions of fact which are within the knowledge of the Company. 
  

	16.7	Authorisations 

  
 The Company shall promptly: 
  

	 	(a)	obtain, maintain and comply with the terms of; and 

  

	 	(b)	if requested, supply certified copies to the Agent of, 

  
 any authorisation required under any law or regulation to enable it to perform its obligations under, or for the validity or enforceability of, any
Finance Document. 
  

	16.8	Pari passu ranking 

  
 The Company shall procure that its obligations under the Finance Documents do and will rank at least pari passu with all its other present and future
unsecured obligations, except for taxes, national insurance contributions, employee remuneration and benefits and any other obligations which from time to time are mandatorily preferred by law applying to companies generally. 
  

	16.9	Negative pledge 

  

	(a)	Subject to paragraph (b) below, the Company shall not, and shall procure that no other member of the Group will, create or permit to subsist, any Security Interest on any of its
assets. 

  

	(b)	Notwithstanding paragraph (a) above, each member of the Group may create, or permit to subsist, Permitted Security Interests on its assets. 

  

	16.10	Disposals 

  

	(a)	The Company shall not, and shall procure that any member of the Group shall not, either in a single transaction or in a series of transactions, whether related or not and whether
voluntarily or involuntarily sell, transfer, grant or lease or otherwise dispose of: 

  

	 	(i)	any Licence or its interest in any Mandatory Subsidiary or any other Subsidiary to whom a Mandatory Subsidiary sells, transfers, grants, leases or otherwise disposes of any Licence;
or 

  

	 	(ii)	any material part of its assets (to the extent not prohibited by subparagraph (i) above). 

  

	(b)	Subparagraph (a)(ii) does not apply to: 

  

	 	(i)	disposals made in the ordinary course of business of the disposing entity; 

  

	 	(ii)	disposals of assets in exchange for other assets comparable or superior as to type, value and quality; 

  

	 	(iii)	the disposal of assets on arm’s length terms; 

  

 36 

	 	(iv)	sale and lease-back transactions the net financial effect of each of which (looking at the sale and any related lease-back together) represent a transaction on arm’s length
terms; and 

  

	 	(v)	disposals to which the Majority Banks have agreed in writing. 

  

	16.11	Environmental matters 

  
 The Company will procure that each member of the Group complies in all material respects with: 
  

	 	(a)	the terms and conditions of all Environmental Licences applicable to it; and 

  

	 	(b)	all other applicable Environmental Law, 

  
 where failure to comply with the relevant Environmental Licence or Environmental Law might reasonably be expected to have a material adverse effect on the
Company’s ability to perform its obligations under this Agreement. 
  

	16.12	Financial covenants 

  
 The Company shall procure that: 
  

	 	(a)	the ratio of Total Consolidated Net Borrowings to Consolidated EBITDA does not at any time exceed 4.0 to 1; and 

  

	 	(b)	as at the last day of each financial year and each financial half-year of the Company (each a Measurement Date): 

  

	 	(i)	the ratio of Operating Profit for the preceding twelve months of the Group to Net Interest Payable for the same period is not less than 2.50 to 1; and 

  

	 	(ii)	the ratio of Earnings to Consolidated Dividends is not less than 1.25 to 1 for any period of twelve months ending on a Measurement Date. 

  

	16.13	Restriction on Borrowings of UK Subsidiaries 

  
 The Company shall procure that no UK Subsidiaries will have outstanding any Borrowings, except for: 
  

	 	(a)	any Borrowing listed in Schedule 8 (Existing Borrowings) except, in relation to all such Borrowings other than the Retail Price Index Linked £175,000,000 bond with a final
maturity date of 13th October, 2024, to the extent the principal amount (in the currency stated in Schedule 8) under that Borrowing exceeds the amount stated in Schedule 8; 

  

	 	(b)	Borrowings incurred by UK Subsidiaries with the prior consent of the Majority Banks; 

  

	 	(c)	Borrowings owed by UK Subsidiaries to other UK Subsidiaries; 

  

	 	(d)	Borrowings by UK Subsidiaries under EIB Facilities and not exceeding US$200,000,000 (or its equivalent in other currencies) in aggregate, provided such Borrowings under the relevant
EIB Facilities cannot on their terms be repaid earlier 

  

 37 

 than the Final Maturity Date, and the Borrowings are used to repay or prepay the Loans and the Existing
Facility B Loans in accordance with Clause 7.8 (Mandatory prepayment - proceeds of new Group indebtedness); 
  

	 	(e)	Borrowings of UK Subsidiaries not exceeding £500,000,000 in aggregate in connection with a securitisation or transaction of a similar effect after the date of this Agreement
in respect of the assets of that UK Subsidiary, provided such Borrowings are used to repay or prepay the Loans and the Existing Facility B Loans in accordance with Clause 7.7 (Mandatory prepayment - securitisation proceeds);

  

	 	(f)	any Borrowings by a UK Subsidiary which is a directly wholly-owned special purpose finance Subsidiary of the Company, provided that any such Borrowings are directly on-lent to the
Company; 

  

	 	(g)	any other Borrowings of any UK Subsidiary not exceeding £200,000,000 (or its equivalent in other currencies) in aggregate so long as: 

  

	 	(i)	such Borrowings cannot, on their terms, be repaid in whole or in part earlier than the Final Maturity Date; and 

  

	 	(ii)	such Borrowings are used to repay or prepay the Loans and the Existing Facility B Loans in accordance with Clause 7.8 (Mandatory prepayment - proceeds of new Group indebtedness),

  
 provided that the aggregate of the Borrowings
of all UK Subsidiaries permitted under paragraphs (b) to (g) inclusive of this Clause 16.13 does not exceed, at any time, £650,000,000 (or its equivalent in other currencies) at that time. 
  
 In this Clause 16.13: 
  

	 	(A)	Borrowings of a Subsidiary of the Company arising in respect of guarantees issued by it, at any time, shall be taken into account in an amount equal to the actual (and not the
nominal) amount guaranteed by that guarantee at that time; and 

  

	 	(B)	Borrowings of Subsidiaries of the Company party to an intra-Group bank netting arrangement in relation to the usual operation of current accounts, at any time, shall be taken into
account only in an amount equal to the net debit balance outstanding in respect of all accounts subject to that netting arrangement, at that time. 

  

	16.14	Restrictions on Borrowings of non-UK Subsidiaries 

  

	(a)	The Company shall procure that PacifiCorp Total Debt will at no time exceed 60 per cent. of PacifiCorp Total Capitalisation. 

  

	(b)	For the purposes of this Clause: 

  
 Consolidated Subsidiary means at any date any Subsidiary or other entity the accounts of which would be consolidated with those of Pacificorp in
its consolidated financial statements if such statements were prepared as of such date. 
  
 PacifiCorp Total Capitalisation means at any date, without duplication and after intercompany eliminations among Pacificorp and its Consolidated Subsidiaries, the sum of: 
  

	 	(i)	all Borrowings of PacifiCorp and its Consolidated Subsidiaries; 

  

 38 

	 	(ii)	preferred stock of PacifiCorp; and 

  

	 	(iii)	common stock equity of PacifiCorp, 

  
 all determined as of such date; provided that Qualifying Junior Subordinated Debt shall be included in PacifiCorp Total Capitalisation only if and
to the extent that the inclusion thereof does not cause the aggregate amount of all preferred stock and Qualifying Junior Subordinated Debt to exceed 15% of PacifiCorp Total Capitalisation. 
  
 PacifiCorp Total Debt means at any date, without duplication and
after intercompany eliminations among Pacificorp and its Consolidated Subsidiaries, the sum of: 
  

	 	(i)	all Borrowings of PacifiCorp and its Consolidated Subsidiaries (other than Qualifying Junior Subordinated Debt); and 

  

	 	(ii)	any portion of mandatorily redeemable preferred stock of PacifiCorp or any of its Consolidated Subsidiaries that is a current liability, 

  
 all determined as of such date. 
  
 Qualifying Junior Subordinated Debt means subordinated debt of
PacifiCorp which has: 
  

	 	(i)	an original maturity of 20 years or more; 

  

	 	(ii)	provisions permitting PacifiCorp to defer the payment of interest for a period or periods of 20 consecutive quarters or more; 

  

	 	(iii)	no principal payments that are due and payable until after the Final Maturity Date; and 

  

	 	(iv)	all other characteristics (except interest rate) materially no less favorable to PacifiCorp than PacifiCorp’s 8 1/4% Junior Subordinated Deferrable Interest Debentures, Series C maturing on 30th June, 2036 and described in PacifiCorp Capital I’s Prospectus
Supplement dated 6th June, 1996. 

  

	16.15	Lending and guarantees 

  

	(a)	Except as provided in paragraph (b) below, no member of the Group may be the creditor in respect of any Borrowings or of any trade credit extended to any of its customers.

  

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

  

	 	(i)	trade credit extended by any member of the Group to its customers on normal commercial terms and in the ordinary course of its trading activities; 

  

	 	(ii)	any loan by one member of the Group to another member of the Group; or 

  

	 	(iii)	any other exceptions agreed by the Majority Banks. 

  

	16.16	Change of business 

  
 The Company must ensure that no substantial change is made to the general nature of the business of the Company or the Group from that carried on as at
the date of this Agreement. 
  

 39 

	16.17	Rating change 

  
 The Company shall provide to the Agent, promptly upon becoming aware of it, written notice of any change in (or withdrawal of) the long term credit rating
assigned to it by S&P or Moody’s or such other rating agency as may be approved from time to time for this purpose by the Majority Banks. 
  

	16.18	SP Energy Management 

  
 The Company shall procure that SP Energy Management will conduct itself in its business in accordance with the standards of a reasonable and prudent
operator. 
  
 For the purposes of this Clause, reasonable and
prudent operator means a person seeking to perform its contractual obligations and in so doing and in the general conduct of its undertaking exercising that degree of skill, diligence, prudence and foresight which would reasonably and ordinarily
be expected from a skilled and experienced operator in compliance with all applicable laws engaged in the same type of undertaking in the same jurisdictions and under the same or similar circumstances and conditions. 
  

	16.19	Use of websites 

  

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

  

	 	(i)	the Agent and the Bank agree; 

  

	 	(ii)	the Company and the Agent designate an electronic website for this purpose; 

  

	 	(iii)	the Company notifies the Agent of the address of and password for the website; and 

  

	 	(iv)	the information posted is in a format agreed between the Company and the Agent. 

  
 The Agent must supply each relevant Bank with the address of and password for the website. 
  

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

  

	 	(i)	any Bank not agreeing to receive via the website; and 

  

	 	(ii)	within ten Business Days of request any other Bank, if that Bank so requests. 

  

	(c)	The Company must promptly upon becoming aware of its occurrence, notify the Agent if: 

  

	 	(i)	the website cannot be accessed; 

  

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

  

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

  

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

  

 40 

 If the circumstances in sub-paragraphs (i) or (ii) above occur, the Company must supply any information
required under this Agreement in paper form until the Agent is satisfied that the circumstances giving rise to the notification are not longer continuing. 
  

	16.20	Know Your Customer Requirements 

  

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

  

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

  

	17.	DEFAULT 

  

	17.1	Events of Default 

  
 Each of the events set out in Clauses 17.2 (Non-payment) to 17.18 (Material adverse change) (inclusive) is an Event of Default (whether or not caused by
any reason whatsoever outside the control of the Company or any other person). 
  

	17.2	Non-payment 

  
 The Company does not pay any amount payable by it under the Finance Documents at the place at and in the currency in which it is expressed to be payable,
unless: 
  

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

  

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

  

	17.3	Breach of other obligations 

  
 The Company does not comply with any provision of the Finance Documents (other than those referred to in Clause 17.2 (Non-payment)) and such failure (if
capable of remedy before the expiry of such period) continues unremedied for a period of 30 days from the date on which the Agent gives notice to the Company requiring the same to be remedied. 
  

	17.4	Misrepresentation 

  
 A representation, warranty or statement made or repeated by the Company in or in connection with any Finance Document or in any document delivered by or
on behalf of the Company under or in connection with any Finance Document is incorrect in any material respect when made or deemed to be made or repeated. 
  

	17.5	Cross-default 

  

	(a)	Any Borrowings (other than Hedging Liabilities) of a member of the Group are not paid when due after the expiry of any applicable grace period provided in the original documentation
therefor; or 

  

 41 

	(b)	any Hedging Liabilities of a member of the Group are not paid within a period of five Business Days of the due date or any applicable grace period provided in the original
documentation therefor, whichever is the shorter; or 

  

	(c)	any Borrowings of a member of the Group become (or become capable of being declared) prematurely due and payable or are placed (or become capable of being placed) on demand in each
case as a result of an event of default or termination event (howsoever described) under the document relating to those Borrowings; or 

  

	(d)	any Security Interest securing Borrowings over any asset of a member of the Group becomes enforceable and the holder thereof shall commence proceedings or appoint a receiver,
manager or similar officer to take steps to enforce the same, 

  
 except that this Clause 17.5 shall not apply to: 
  

	 	(i)	Project Finance Borrowings; or 

  

	 	(ii)	Borrowings: 

  

	 	(A)	liability for payment of which is being contested in good faith by appropriate proceedings provided that if the Company’s auditors determine that the amount in dispute should
be provided for in the relevant accounts, that the auditors verify that such amount is fully provided against; or 

  

	 	(B)	the aggregate principal amount of which (taking into account, in the case of Hedging Liabilities, the net payment due to the relevant counterparties as the principal amount for this
purpose) is US$30,000,000 or less or its equivalent in other currencies. 

  

	17.6	Insolvency 

  

	(a)	The Company or a Principal Subsidiary is, or is deemed for the purposes of any law to be, unable to pay its debts (within the meaning of Section 123(1) or, in the case of the
Company only, 123(2) of the Insolvency Act 1986 but, for the purposes of this Clause 17.6, Section 123(1)(a) of the Insolvency Act 1986 shall have effect as if for “£750” there was substituted “£250,000” or such
higher figure as the Majority Banks may from time to time agree). 

  

	(b)	The Company or a Principal Subsidiary suspends making payments on all or any class of its debts or announces an intention to do so, or a moratorium is declared in respect of any of
its indebtedness. 

  

	(c)	The Company or a Principal Subsidiary by reason of financial difficulties, begins negotiations with one or more of its creditors with a view to the readjustment or rescheduling of
any of its indebtedness. 

  

	(d)	Unless the Agent (acting on the instructions of the Majority Banks) confirms otherwise, if a moratorium occurs in respect of the Company or a Principal Subsidiary, the ending of the
moratorium will not remedy any Event of Default caused by the moratorium. 

  

	17.7	Administration 

  

	(a)	Any meeting of the Company’s or of any Principal Subsidiary’s shareholders, directors or other officers is convened for the purpose of considering any resolution for, to
petition for or to file documents with a court or any registrar for its administration or any such resolution is passed; or 

  

 42 

	(b)	the directors, shareholders or other officers of the Company or any Principal Subsidiary request an application for an administrative order, or give notice of their intention to
make such a request; or 

  

	(c)	any person presents an application to, or files documents with, a court or any registrar for an administration order in relation to the Company or any Principal Subsidiary and
either (i) the Company or such Principal Subsidiary (as the case may be) does not apply to the court within 30 days after the presentation of such petition requesting the court to refuse such petition or (ii) it does so apply but such petition is
not refused by such court within 60 days after such application for the refusal of such petition. 

  

	17.8	Compositions etc 

  
 The Company or any Principal Subsidiary has any voluntary arrangement proposed in relation to it under Section 1 of the Insolvency Act 1986 or any step is
taken with a view to a moratorium, composition, scheme of arrangement, compromise or other arrangement involving the Company or such Principal Subsidiary (as the case may be) and their respective creditors generally (other than for the purposes of
reconstruction or amalgamation upon terms and within such period as may previously have been approved in writing by the Majority Banks). 
  

	17.9	Winding up 

  

	(a)	Any meeting of the Company’s or of any Principal Subsidiary’s shareholders, directors or other officers is convened for the purpose of considering any resolution for (or
to petition for or to file documents with a court or any registrar for) its winding up or dissolution (other than in connection with a reconstruction or amalgamation upon terms and within such period as may previously have been approved in writing
by the Majority Banks); or 

  

	(b)	the Company or any Principal Subsidiary passes any resolution for its winding up or dissolution other than a resolution previously approved in writing by the Majority Banks (other
than in connection with a reconstruction or amalgamation upon terms and within such period as may previously have been approved in writing by the Majority Banks); or 

  

	(c)	any person presents a petition, or files documents with a court or any registrar for the winding up or dissolution of the Company or any Principal Subsidiary is presented to the
court and either (i) the Company or such Principal Subsidiary (as the case may be) does not apply to the court within 30 days after the presentation of such petition requesting the court to refuse such petition, or (ii) it does so apply but such
petition is not refused by such court within 60 days after such application for the refusal of such petition; or 

  

	(d)	the Company or any Principal Subsidiary becomes subject to a winding up or dissolution order. 

  

	17.10	Appointment of receivers and managers 

  

	(a)	Any liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, receiver, administrative receiver, administrator or the like is appointed in respect of the Company or
any Principal Subsidiary or any material part of its assets or undertaking and (in the case of a receiver only) such appointment continues for more than 30 days; or 

  

 43 

	(b)	the directors, shareholders (acting by the requisite majority thereof, if any requisite majority is applicable) or other officers of the Company or any Principal Subsidiary request
the appointment, or give notice of their intention to appoint a liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, receiver, administrative receiver, administrator or the like. 

  

	17.11	Creditors’ process  

  
 Any attachment, sequestration, distress, execution or diligence (whether on the dependence or otherwise) affects any material asset of the Company or any
Principal Subsidiary and is not discharged within 21 days. 
  

	17.12	Analogous proceedings 

  
 There occurs, in relation to the Company or any Principal Subsidiary, any event anywhere which corresponds to any of those mentioned in Clauses 17.6
(Insolvency) to 17.11 (Creditors’ process) (inclusive). 
  

	17.13	Unlawfulness 

  
 It is or becomes unlawful for the Company to perform any of its obligations under the Finance Documents. 
  

	17.14	Revocation and Modification of Licences 

  
 Any Licence is: 
  

	 	(a)	revoked, surrendered, terminated or disposed of (or any notice of revocation or termination is issued by the relevant regulatory authority); or 

  

	 	(b)	modified, 

  
 in any manner or circumstances which would have a material adverse effect on the ability of the Company to perform any of its obligations under this Agreement. 
  

	17.15	Cessation of business 

  
 The Company ceases to carry on all or a substantial part of its business. 
  

	17.16	Change of control of a Mandatory Subsidiary 

  
 A Mandatory Subsidiary ceases to be a wholly owned Subsidiary of the Company. 
  

	17.17	Repudiation 

  
 The Company repudiates a Finance Document or evidences an intention to repudiate a Finance Document. 
  

	17.18	Material adverse change 

  
 Any event or circumstance occurs which has a Material Adverse Effect. 
  

 44 

	17.19	Acceleration 

  
 On and at any time after the occurrence of an Event of Default while such event is continuing the Agent may, and shall if so directed by the Majority
Banks, by notice to the Company: 
  

	 	(a)	cancel the Total Commitments; and/or 

  

	 	(b)	demand that all of the Loans, together with accrued interest, and all other amounts accrued under this Agreement be immediately due and payable, whereupon they shall become
immediately due and payable; and/or 

  

	 	(c)	demand that all or part of the Loans be payable on demand, whereupon they shall immediately become payable on demand. 

  

	18.	THE AGENT AND THE MANDATED LEAD ARRANGERS 

  

	18.1	Appointment and duties of the Agent 

  
 Each Finance Party (other than the Agent) irrevocably appoints the Agent to act as its agent under and in connection with the Finance Documents, and
irrevocably authorises the Agent on its behalf to perform the duties and to exercise the rights, powers and discretions that are specifically delegated to it under or in connection with the Finance Documents, together with any other incidental
rights, powers and discretions. The Agent shall have only those duties which are expressly specified in this Agreement. Those duties are solely of a mechanical and administrative nature. 
  

	18.2	Role of the Mandated Lead Arrangers 

  
 Except as otherwise provided in this Agreement, each Mandated Lead Arranger has no obligations of any kind to any other Party under or in connection with
any Finance Document.  
  

	18.3	Relationship 

  
 The relationship between the Agent and the other Finance Parties is that of agent and principal only. Nothing in this Agreement constitutes the Agent as
trustee or fiduciary for any other Party or any other person and the Agent need not hold in trust any moneys paid to it for a Party or be liable to account for interest on those moneys.  
  

	18.4	Majority Banks’ directions 

  
 The Agent will be fully protected if it acts in accordance with the instructions of the Majority Banks in connection with the exercise of any right, power
or discretion or any matter not expressly provided for in the Finance Documents. Any such instructions given by the Majority Banks will be binding on all the Banks. In the absence of such instructions the Agent may act as it considers to be in the
best interests of all the Banks.  
  

	18.5	Delegation 

  
 The Agent may act under the Finance Documents through its personnel and agents.  
  

	18.6	Responsibility for documentation 

  
 Neither the Agent nor a Mandated Lead Arranger is responsible to any other Party for: 
  

	 	(a)	the execution, genuineness, validity, enforceability or sufficiency of any Finance Document or any other document; 

  

 45 

	 	(b)	the collectability of amounts payable under any Finance Document; or 

  

	 	(c)	the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document. 

  

	18.7	Default 

  

	(a)	The Agent is not obliged to monitor or enquire as to whether or not a Default has occurred. The Agent will not be deemed to have knowledge of the occurrence of a Default. However,
if the Agent receives notice from a Party referring to this Agreement, describing the Default and stating that the event is a Default, it shall promptly notify the Banks. 

  

	(b)	The Agent may require the receipt of security satisfactory to it whether by way of payment in advance or otherwise, against any liability or loss which it will or may incur in
taking any proceedings or action arising out of or in connection with any Finance Document before it commences these proceedings or takes that action. 

  

	18.8	Exoneration 

  

	(a)	Without limiting paragraph (b) below, the Agent will not be liable to any other Party for any action taken or not taken by it under or in connection with any Finance Document,
unless directly caused by its gross negligence or wilful misconduct. 

  

	(b)	No Party may take any proceedings against any officer, employee or agent of the Agent in respect of any claim it might have against the Agent or in respect of any act or omission of
any kind (including negligence or wilful misconduct) by that officer, employee or agent in relation to any Finance Document. 

  

	18.9	Reliance 

  
 The Agent may: 
  

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

  

	 	(b)	rely on any statement made by a director or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify;
and 

  

	 	(c)	engage, pay for and rely on legal or other professional advisers selected by it (including those in the Agent’s employment and those representing a Party other than the Agent).

  

	18.10	Credit approval and appraisal 

  
 Without affecting the responsibility of the Company for information supplied by it or on their behalf in connection with any Finance Document, each Bank
confirms that it: 
  

	 	(a)	has made its own independent investigation and assessment of the financial condition and affairs of the Company and their related entities in connection with its participation in
this Agreement and has not relied exclusively on any information provided to it by the Agent or the Mandated Lead Arrangers in connection with any Finance Document; and 

  

 46 

	 	(b)	will continue to make its own independent appraisal of the creditworthiness of the Company and their related entities while any amount is or may be outstanding under the Finance
Documents or any Commitment is in force. 

  

	18.11	Information 

  

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

 

	(b)	The Agent shall promptly supply a Bank with a copy of each document received by the Agent under Clause 4 (Conditions Precedent) upon the request and at the expense of that Bank.

  

	(c)	Except where this Agreement specifically provides otherwise, the Agent is not obliged to review or check the accuracy or completeness of any document it forwards to another Party.

  

	(d)	Except as provided above, the Agent has no duty: 

  

	 	(i)	either initially or on a continuing basis to provide any Bank with any credit or other information concerning the financial condition or affairs of the Company or any related entity
of the Company whether coming into its possession or that of any of its related entities before, on or after the date of this Agreement; or 

  

	 	(ii)	unless specifically requested to do so by a Bank in accordance with this Agreement, to request any certificates or other documents from the Company. 

  

	18.12	The Agent and each Mandated Lead Arranger individually 

  

	(a)	If it is also a Bank, each of the Agent and a Mandated Lead Arranger has the same rights and powers under this Agreement as any other Bank and may exercise those rights and powers
as though it were not the Agent or a Mandated Lead Arranger. 

  

	(b)	Each of the Agent and a Mandated Lead Arranger may: 

  

	 	(i)	carry on any business with the Company or its related entities; 

  

	 	(ii)	act as agent or trustee for, or in relation to any financing involving, the Company or its related entities; and 

  

	 	(iii)	retain any profits or remuneration in connection with its activities under this Agreement or in relation to any of the foregoing. 

  
 18.13 Indemnities 
  

	(a)	Without limiting the liability of the Company under the Finance Documents, each Bank shall forthwith on demand indemnify the Agent for its proportion of any liability or loss
incurred by the Agent in any way relating to or arising out of its acting as the Agent, except to the extent that the liability or loss arises directly from the Agent’s gross negligence or wilful misconduct. 

  

	(b)	A Bank’s proportion of the liability or loss set out in paragraph (a) above is the proportion which the Original Dollar Amount of its participation in the Loans (if any) bear
to the 

  

 47 

 Original Dollar Amount of all the Loans on the date of the demand. If, however, there are no Loans
outstanding on the date of demand, then the proportion will be the proportion which its relevant Commitment bears to the Total Commitments at the date of demand or, if the Total Commitments have been cancelled, bore to the Total Commitments
immediately before being cancelled. 
  

	18.14	Compliance 

  

	(a)	The Agent may refrain from doing anything which might, in its opinion, constitute a breach of any law or regulation or be otherwise actionable at the suit of any person, and may do
anything which, in its opinion, is necessary or desirable to comply with any law or regulation of any jurisdiction. 

  

	(b)	Without limiting paragraph (a) above, the Agent need not disclose any information relating to the Company or any of its related entities if the disclosure might, in the opinion of
the Agent, constitute a breach of any law or regulation or any duty of secrecy or confidentiality or be otherwise actionable at the suit of any person. 

  

	18.15	Resignation of Agent 

  

	(a)	Notwithstanding its irrevocable appointment, the Agent may resign by giving notice to the Banks and the Company, in which case the Agent may forthwith appoint one of its Affiliates
as successor Agent or, failing that, the Majority Banks may appoint a successor Agent. 

  

	(b)	If the appointment of a successor Agent is to be made by the Majority Banks but they have not, within 30 days after notice of resignation, appointed a successor Agent which accepts
the appointment, the retiring Agent may appoint a successor Agent. 

  

	(c)	The resignation of the retiring Agent and the appointment of any successor Agent will both become effective only upon the successor Agent notifying all the Parties that it accepts
the appointment. On giving the notification, the successor Agent will succeed to the position of the retiring Agent and the term Agent will mean the successor Agent. 

  

	(d)	The retiring Agent shall, at its own cost, make available to the successor Agent such documents and records and provide such assistance as the successor Agent may reasonably request
for the purposes of performing its functions as the Agent under this Agreement. 

  

	(e)	Upon its resignation becoming effective, this Clause 18 shall continue to benefit the retiring Agent in respect of any action taken or not taken by it under or in connection with
the Finance Documents while it was the Agent, and, subject to paragraph (d) above, it shall have no further obligation under any Finance Document. 

  

	18.16	Banks 

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

	18.17	Extraordinary management time and resources 

  
 In addition to the fees (if any) paid or payable to the Agent pursuant to Clause 19 (Fees), the Company shall, on demand by the Agent, reimburse it for
its own account at such reasonable daily or hourly rates as the Agent may separately agree with the Company from time to time, 
  

 48 

 the reasonable cost of utilising its management time or other resources in connection with taking all
such steps or other action which: 
  

	 	(a)	the Company requests, in connection with: 

  

	 	(i)	the granting or proposed granting of any waiver or consent under any Finance Document; or 

  

	 	(ii)	any amendment or proposed amendment to any Finance Document; or 

  

	 	(b)	the Company or the Majority Banks request(s) in connection with: 

  

	 	(i)	any breach by the Company of its obligations under any Finance Document or any investigations in respect of any such breach; or 

  

	 	(ii)	the preservation and enforcement of any of the rights of the Finance Parties under the Finance Documents; or 

  

	 	(iii)	the occurrence of a Default. 

  

	19.	FEES  

  

	19.1	Front-end fees 

  
 The Company shall pay to the Agent for the Mandated Lead Arrangers front-end fees in the amounts agreed in the relevant Fee Letter.  
  

	19.2	Commitment fee 

  

	(a)	The Company shall pay to the Agent for each Bank a commitment fee computed at the rate of 40 per cent. of the applicable Margin per annum on the undrawn, uncancelled amount of that
Bank’s Commitment during the period from the date of this Agreement up to and including the Final Maturity Date. 

  

	(b)	Accrued commitment fee is payable quarterly in arrears. Accrued commitment fee is also payable to the Agent for the relevant Bank(s) on the cancelled amount of its Commitment at the
time the cancellation takes effect. 

  

	19.3	Utilisation fee 

  

	(a)	For each day on which the outstanding principal amount of the Loans is 50.0 per cent. or more of the Total Commitments at that time, the Company shall pay a utilisation fee to the
Agent, for the account of the Banks of 0.05 per cent. per annum, on the amount of the outstanding principal amount of the Loans on that day. 

  

	(b)	The utilisation fee is payable quarterly in arrear. Accrued utilisation fee is also payable to the Agent for the account of the Banks on the date that the Commitments are cancelled
and the Loans are prepaid or repaid in full. 

  

	19.4	Agent’s fee 

  
 The Company shall pay to the Agent for its own account an agency fee in the amount and at the times agreed in the relevant Fee Letter. 
  

 49 

	19.5	VAT 

  
 Any fee referred to in this Clause 19 (Fees) is exclusive of any value added tax or any other tax which might be chargeable in connection with that fee. If any value added tax or other tax is so chargeable, it shall
be paid by the Company at the same time as it pays the relevant fee. 
  

	20.	EXPENSES 

  

	20.1	Initial and special costs 

  
 The Company shall forthwith on demand pay the Agent and each Mandated Lead Arranger the amount of all reasonable costs and expenses (including legal fees)
incurred by each of them in connection with: 
  

	 	(a)	the negotiation, preparation, printing and execution of: 

  

	 	(i)	this Agreement and any other documents referred to in this Agreement; 

  

	 	(ii)	any other Finance Document (other than a Novation Certificate) executed after the date of this Agreement; 

  

	 	(b)	any amendment, waiver, consent or suspension of rights (or any proposal for any of the foregoing) requested by or on behalf of the Company and relating to a Finance Document or a
document referred to in any Finance Document; and 

  

	 	(c)	any other matter, not of an ordinary administrative nature, arising out of or in connection with a Finance Document. 

  

	20.2	Enforcement costs 

  
 The Company shall forthwith on demand pay to each Finance Party the amount of all reasonable costs and expenses (including legal fees) incurred by it:

  

	 	(a)	in connection with the enforcement of, or the preservation of any rights under, any Finance Document; or 

  

	 	(b)	in investigating any possible Default. 

  

	21.	STAMP DUTIES 

  
 The Company shall pay and forthwith on demand indemnify each Finance Party against any liability it incurs in respect of any stamp, registration and
similar tax which is or becomes payable in connection with the entry into, performance or enforcement of any Finance Document. 
  

	22.	INDEMNITIES 

  

	22.1	Currency indemnity 

  

	(a)	If a Finance Party receives an amount in respect of the Company’s liability under the Finance Documents or if that liability is converted into a claim, proof, judgment or order
in a currency other than the currency (the contractual currency) in which the amount is expressed to be payable under the relevant Finance Document: 

  

	 	(i)	the Company shall indemnify that Finance Party as an independent obligation against any loss or liability arising out of or as a result of the conversion; 

 

 50 

	 	(ii)	if the amount received by that Finance Party, when converted into the contractual currency at a market rate in the usual course of its business, is less than the amount owed in the
contractual currency, the Company shall forthwith on demand pay to that Finance Party an amount in the contractual currency equal to the deficit; and 

  

	 	(iii)	the Company shall pay to the Finance Party concerned on demand any exchange costs and taxes payable in connection with any such conversion. 

  

	(b)	The Company waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency other than that in which it is expressed to be payable.

  

	22.2	Other indemnities 

  
 The Company shall forthwith on demand indemnify each Finance Party against any loss or liability which that Finance Party incurs as a consequence of:

  

	 	(a)	the occurrence of any Default; 

  

	 	(b)	the operation of Clause 2.5 (Change of Currency), 17.19 (Acceleration) or Clause 28 (Pro Rata Sharing); 

  

	 	(c)	any payment of principal or an overdue amount being received from any source otherwise than on its Repayment Date and, for the purposes of this paragraph (c), the Repayment Date of
an overdue amount is the last day of each Designated Term (as defined in Clause 8.5 (Default interest)); or 

  

	 	(d)	(other than by reason of negligence or default by a Finance Party) a Loan not being made after the Company has delivered a Request for that Loan. 

  
 The Company’s liability in each case includes any loss of margin or
other loss or expense on account of funds borrowed, contracted for or utilised to fund any amount payable under any Finance Document, any amount repaid or prepaid or any Loan. 
  

	23.	EVIDENCE AND CALCULATIONS 

  

	23.1	Accounts 

  
 Accounts maintained by a Finance Party in connection with this Agreement are prima facie evidence of the matters to which they relate. 
  

	23.2	Certificates and determinations 

  
 Any certification or determination by a Finance Party of a rate or amount under this Agreement is, in the absence of manifest error, conclusive evidence
of the matters to which it relates. 
  

	23.3	Calculations 

  
 Interest (including any applicable Mandatory Cost) and any fees accruing under this Agreement shall accrue from day to day and are calculated on the basis
of the actual number of days elapsed and a year of 360 days or, in the case of interest payable on an amount denominated in Sterling only or where the market practice otherwise dictates, 365 days. 
  

 51 

	24.	AMENDMENTS AND WAIVERS 

  

	24.1	Procedure 

  

	(a)	Subject to Clause 24.2 (Exceptions), any term of the Finance Documents may be amended or waived with the agreement of the Company, the Majority Banks and the Agent. The Agent may
effect, on behalf of the Banks, an amendment to which they or the Majority Banks have agreed. 

  

	(b)	The Agent shall promptly notify the other Parties of any amendment or waiver effected under paragraph (a) above, and any such amendment or waiver shall be binding on all the
Parties. 

  

	24.2	Exceptions 

  
 An amendment or waiver which relates to: 
  

	 	(a)	the definition of Majority Banks in Clause 1.1; 

  

	 	(b)	an extension of the date for, or a decrease in an amount or a change in the currency of, any payment under the Finance Documents; 

  

	 	(c)	an increase in, or extension of, a Bank’s Commitment; 

  

	 	(d)	a term of a Finance Document which expressly requires the consent of each Bank; 

  

	 	(e)	Clause 2.4 (Nature of a Finance Party’s rights and obligations), Clause 28 (Pro Rata Sharing) or this Clause 24; or 

  

	 	(f)	a right of a Bank to assign or transfer its rights or obligations under the Finance Documents, 

  
 may not be effected without the consent of each Bank. 
  

	24.3	Waivers and remedies cumulative 

  
 The rights of each Finance Party under the Finance Documents: 
  

	 	(a)	may be exercised as often as necessary; 

  

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

  

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

  
 Delay in exercising or non-exercise of any such right is not a waiver of that right. 
  

	25.	CHANGES TO THE PARTIES 

  

	25.1	Transfers by the Company 

  
 The Company may not assign, transfer, novate or dispose of any of, or any interest in, its rights and/or obligations under this Agreement. 
  

 52 

	25.2	Transfers by Banks 

  

	(a)	A Bank (the Existing Bank) may at any time assign, transfer or novate any of its rights and/or obligations under this Agreement (in a minimum amount equal to US$10,000,000
or, if less with respect to a particular Bank, the balance of that Bank’s Commitment at the time of transfer) to another bank or financial institution, trust, fund or other entity which is a Qualifying Bank (the New Bank). The prior
consent of the Company is required for any such assignment, transfer or novation, unless: 

  

	 	(i)	the New Bank is another Bank or an Affiliate of a Bank; or 

  

	 	(ii)	a Default is outstanding. 

  
 However, the prior consent of the Company must not be unreasonably withheld or delayed and will be deemed to have been given if, within 21 days of receipt
by the Company of an application for consent, it has not been expressly refused. 
  

	(b)	A transfer of obligations will be effective only if either: 

  

	 	(i)	the obligations are novated in accordance with Clause 25.3 (Procedure for novations); or 

  

	 	(ii)	the New Bank confirms to the Agent and the Company that it is a Qualifying Bank and that it undertakes to be bound by the terms of this Agreement as a Bank in form and substance
satisfactory to the Agent. On the transfer becoming effective in this manner the Existing Bank shall be relieved of its obligations under this Agreement to the extent that they are transferred to the New Bank. 

  

	(c)	Nothing in this Agreement restricts the ability of a Bank to sub-contract an obligation if that Bank remains liable under this Agreement for that obligation except that no Bank may
sub-contract any such obligation if the effect of such contract would be that a person other than a Qualifying Bank has any beneficial entitlement to any interest received by it under this Agreement. 

  

	(d)	On each occasion that an Existing Bank assigns, transfers or novates any of its rights and/or obligations under this Agreement, the New Bank shall, on the date the assignment,
transfer and/or novation takes effect, pay to the Agent for its own account a fee of £1,000. 

  

	(e)	An Existing Bank is not responsible to a New Bank for: 

  

	 	(i)	the execution, genuineness, validity, enforceability or sufficiency of any Finance Document or any other document; 

  

	 	(ii)	the collectability of amounts payable under any Finance Document; 

  

	 	(iii)	the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document; or 

  

	 	(iv)	the financial condition of the Company. 

  

	(f)	Each New Bank confirms to the Existing Bank and the other Finance Parties that it: 

  

	 	(i)	has made its own independent investigation and assessment of the financial condition and affairs of the Company and its related entities in connection with its participation in this
Agreement and has not relied exclusively on any information provided to it by the Existing Bank in connection with any Finance Document; and 

  

 53 

	 	(ii)	will continue to make its own independent appraisal of the creditworthiness of the Company and its related entities while any amount is or may be outstanding under this Agreement or
any Commitment is in force. 

  

	(g)	Nothing in any Finance Document obliges an Existing Bank to: 

  

	 	(i)	accept a re-transfer from a New Bank of any of the rights and/or obligations assigned, transferred or novated under this Clause; or 

  

	 	(ii)	support any losses incurred by the New Bank by reason of the non-performance by the Company of its obligations under this Agreement or otherwise. 

  

	(h)	Any reference in this Agreement to a Bank includes a New Bank, but excludes a Bank if no amount is or may be owed to or by that Bank under this Agreement and its Commitment has been
cancelled or reduced to nil. 

  

	(i)	No assignment or transfer under this Clause will be effective until the Agent has completed all know your customer requirements relating to any person that it is required to carry
out in relation to such assignment or transfer. The Agent is not obliged to execute a Novation Certificate until it has completed all know customer requirements to its satisfaction. 

  

	25.3	Procedure for novations 

  

	(a)	A novation is effected if the Existing Bank and the New Bank deliver to the Agent a Novation Certificate in the form of Schedule 5 and the Agent executes it.

  

	(b)	Each Party (other than the Existing Bank and the New Bank) irrevocably authorises the Agent to execute any duly completed Novation Certificate on its behalf.

  

	(c)	To the extent that they are expressed to be the subject of the novation in the Novation Certificate: 

  

	 	(i)	the Existing Bank and the other Parties (the existing Parties) will be released from their obligations to each other (the discharged obligations);

  

	 	(ii)	the New Bank and the existing Parties will assume obligations towards each other which differ from the discharged obligations only insofar as they are owed to or assumed by the New
Bank instead of the Existing Bank; 

  

	 	(iii)	the rights of the Existing Bank against the existing Parties and vice versa (the discharged rights) will be cancelled; and 

  

	 	(iv)	the New Bank and the existing Parties will acquire rights against each other which differ from the discharged rights only insofar as they are exercisable by or against the New Bank
instead of the Existing Bank, 

  
 all on the date
of execution of the Novation Certificate by the Agent or, if later, the date specified in the Novation Certificate. The completed Novation Certificate must be delivered to the Agent at least 5 Business Days before the date on which it is stated to
be effective or such other date agreed by the Agent. If no agreement can be reached by the Agent the novation will not be effective. 
  

 54 

	25.4	Reference Banks 

  
 If a Reference Bank (or, if a Reference Bank is not a Bank, the Bank of which it is an Affiliate) ceases to be one of the Banks, the Agent shall (in
consultation with the Company) appoint another Bank or an Affiliate of a Bank to replace that Reference Bank. 
  

	25.5	Register 

  
 The Agent shall keep a register of all the Parties and shall supply any other Party (at that Party’s expense) with a copy of the register on request.

  

	25.6	Change of Facility Office 

  
 No Bank will change its Facility Office if, at the time of the change, circumstances exist which would oblige the Company to pay that Bank any amount
under Clause 11 (Taxes) or Clause 13 (Increased Costs) which it would not have been obliged to pay if that Bank had retained the same Facility Office. 
  

	26.	DISCLOSURE OF INFORMATION 

  
 A Bank may disclose to one of its Affiliates or any person with whom it is proposing to enter, or has entered into, any kind of transfer, participation or
other agreement in relation to this Agreement: 
  

	 	(i)	a copy of any Finance Document; and 

  

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

  
 Provided that any such Affiliate or person has entered into a confidentiality undertaking substantially in the form of
Schedule 9 (Form of Confidentiality Undertaking) or in any other form agreed between the Company and the Agent. 
  

	27.	SET-OFF 

  
 A Finance Party may set off any matured obligation owed by the Company under this Agreement (to the extent beneficially owned by that Finance Party)
against any obligation (whether or not matured) owed by that Finance Party to the Company, regardless of the place of payment, booking branch or currency of either obligation. If the obligations are in different currencies, the Finance Party may
convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. If either obligation is unliquidated or unascertained, the Finance Party may set off in an amount estimated by it in good faith to
be the amount of that obligation. 
  

	28.	PRO RATA SHARING 

  

	28.1	Redistribution 

  
 If any amount owing by the Company under this Agreement to a Finance Party (the recovering Finance Party) is discharged by payment, set-off or any
other manner other than through the Agent in accordance with Clause 10 (Payments) (a recovery), then: 
  

	 	(a)	the recovering Finance Party shall, within three Business Days, notify details of the recovery to the Agent; 

  

 55 

	 	(b)	the Agent shall determine whether the recovery is in excess of the amount which the recovering Finance Party would have received had the recovery been received by the Agent and
distributed in accordance with Clause 10 (Payments); 

  

	 	(c)	subject to Clause 28.3 (Exception), the recovering Finance Party shall, within three Business Days of demand by the Agent, pay to the Agent an amount (the redistribution)
equal to the excess; 

  

	 	(d)	the Agent shall treat the redistribution as if it were a payment by the Company under Clause 10 (Payments) and shall pay the redistribution to the Finance Parties (other than the
recovering Finance Party) in accordance with Clause 10.7 (Partial payments); and 

  

	 	(e)	after payment of the full redistribution, the recovering Finance Party will be subrogated to the portion of the claims paid under paragraph (d) above, and the Company will owe the
recovering Finance Party a debt which is equal to the redistribution, immediately payable and of the type originally discharged. 

  

	28.2	Reversal of redistribution 

  
 If under Clause 28.1 (Redistribution): 
  

	 	(a)	a recovering Finance Party must subsequently return a recovery, or an amount measured by reference to a recovery, to the Company; and 

  

	 	(b)	the recovering Finance Party has paid a redistribution in relation to that recovery, 

  
 each Finance Party shall, within three Business Days of demand by the recovering Finance Party through the Agent, reimburse
the recovering Finance Party all or the appropriate portion of the redistribution paid to that Finance Party. Thereupon the subrogation in Clause 28.1(e) (Redistribution) will operate in reverse to the extent of the reimbursement. 
  

	28.3	Exception 

  
 A recovering Finance Party need not pay a redistribution to the extent that it would not, after the payment, have a valid claim against the Company in the
amount of the redistribution pursuant to Clause 28.1(e) (Redistribution). 
  

	29.	SEVERABILITY 

  
 If a provision of any Finance Document is or becomes illegal, invalid or unenforceable in any jurisdiction, that shall not affect: 
  

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

  

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

  

	30.	COUNTERPARTS 

  
 This Agreement may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy
of this Agreement. 
  

 56 

	31.	NOTICES 

  

	31.1	Giving of notices 

  
 All notices or other communications under or in connection with this Agreement shall be given in writing or by facsimile. Any such notice will be deemed
to be given as follows: 
  

	 	(a)	if in writing, when delivered; and 

  

	 	(b)	if by facsimile, when received in complete and legible form. 

  
 However, a notice given in accordance with the above but received on a non-working day or after business hours in the place of receipt will only be deemed
to be given on the next working day in that place. 
  

	31.2	Addresses for notices 

  

	(a)	The address and facsimile number of each Party (other than the Agent) for all notices under or in connection with this Agreement are: 

  

	 	(i)	that notified by that Party for this purpose to the Agent on or before it becomes a Party; or 

  

	 	(ii)	any other notified by that Party for this purpose to the Agent by not less than five Business Days’ notice. 

  

	(b)	The address and facsimile number of the Agent is: 

  
 The Royal Bank of Scotland plc 
 2.5
Devonshire Square 
 London EC2M 4BB 
  
 Facsimile number:        +44 207 615 7673 
  
 Attention:    Loans Administration 
  
 or such other as the Agent may notify to the other Parties by not less than five Business Days’ notice. 
  

	(c)	The Agent shall, promptly upon request from any Party, give to that Party the address or facsimile number of any other Party applicable at the time for the purposes of this Clause.

  

	32.	GOVERNING LAW 

  
 This Agreement is governed by English law. 
  

	33.	JURISDICTION 

  

	(a)	Each of the parties hereto irrevocably agrees, for the benefit of the Agent and the Banks, that the courts of England shall have jurisdiction to hear and determine any suit, action
or proceeding, and to settle any disputes, which may arise out of or in connection with this Agreement and, for such purposes, irrevocably submits to the jurisdiction of such courts. 

  

	(b)	The Company irrevocably waives any objection which it might now or hereafter have to the courts referred to in paragraph (a) above being nominated as the forum to hear and determine

  

 57 

 any suit, action or proceeding, and to settle any disputes, which may arise out of or in connection with
this Agreement and agrees not to claim that any such court is not a convenient or appropriate forum. 
  

	(c)	The submission to the jurisdiction of the courts referred to in paragraph (a) above shall not (and shall not be construed so as to) limit the right of the Agent or the Banks to take
proceedings in any other court of competent jurisdiction nor shall the taking of proceedings in any one or more jurisdictions preclude the taking of proceedings in any other jurisdiction, whether concurrently or not. 

  

	34.	SERVICE OF PROCESS 

  
 Without prejudice to any other mode of service allowed under any relevant law, the Company: 
  

	 	(a)	irrevocably appoints its London office at 30 Cannon Street, London EC4M 6XH as its agent for service of process in relation to any proceedings before the English courts in
connection with any Finance Documents; and 

  

	 	(b)	agrees that any failure by a process agent to notify the Company of the process will not invalidate the proceedings concerned. 

  
 This Agreement has been entered into on the date stated at the beginning of this Agreement.

  

 58 

 SCHEDULE 1 
  
 ORIGINAL PARTIES 
  

			
	 Original Bank

	  	Commitments

	 	  	(US$)
		
	 The Bank of Tokyo-Mitsubishi, Ltd.
	  	19,000,000
	 Barclays Bank PLC
	  	19,000,000
	 Commerzbank Aktiengesellschaft, London Branch
	  	19,000,000
	 HSBC Bank plc
	  	19,000,000
	 JPMorgan Chase Bank
	  	19,000,000
	 The Royal Bank of Scotland plc
	  	19,000,000
	 ABN AMRO Bank N.V.
	  	14,500,000
	 Allied Irish Banks, p.l.c.
	  	14,500,000
	 Bank of America, N.A.
	  	14,500,000
	 BBVA Ireland plc
	  	14,500,000
	 BNP Paribas, London Branch
	  	14,500,000
	 Calyon, London Branch
	  	14,500,000
	 CDC Finance - CDC IXIS
	  	14,500,000
	 Citibank, N.A.
	  	14,500,000
	 Credit Suisse First Boston
	  	14,500,000
	 Deutsche Bank AG London
	  	14,500,000
	 Fortis Bank S.A./N.V.
	  	14,500,000
	 ING Bank N.V., London Branch
	  	14,500,000
	 Merrill Lynch Bank USA
	  	14,500,000
	 Mizuho Corporate Bank, Ltd.
	  	14,500,000
	 Morgan Stanley Dean Witter Bank Limited
	  	14,500,000
	 National Australia Bank Limited (A.B.N. 12 004 044 937)
	  	14,500,000
	 TD Bank Europe Limited
	  	14,500,000
	 UBS AG, London Branch
	  	14,500,000
	 	  	

	 Total
	  	375,000,000

  

 59 

 SCHEDULE 2 
  
 CONDITIONS PRECEDENT DOCUMENTS 
  

	1.	A copy of the memorandum and articles of association, certificate of incorporation and certificate of incorporation on change of name (if any) of the Company or a certificate of an
authorised signatory of the Company confirming that the copy of those documents previously delivered to the Agent in connection with the Existing Facility Agreement is still correct, complete and in full force and effect as at a date no earlier than
the date of this Agreement. 

  

	2.	A copy of a resolution of the Group Finance Committee of the Company: 

  

	 	(i)	approving the terms of, and the transactions contemplated by the Finance Documents resolving that it execute the Finance Documents to which it is a party and any related and/or
ancillary documents; 

  

	 	(ii)	authorising a specified person or persons to execute the Finance Documents to which it is a party on its behalf; and 

  

	 	(iii)	authorising a specified person or persons, on its behalf, to sign and/or despatch all other documents and notices to be signed and/or despatched by it under or in connection with
the Finance Documents. 

  

	3.	A copy of a resolution of the board of directors of the Company appointing the Group Finance Committee referred to in paragraph 2 above. 

  

	4.	A certificate of a director of the Company certifying that the utilisation of the Facility in full would not cause any internal borrowing limit binding on the Company to be
exceeded. 

  

	5.	A certificate of an authorised signatory of the Company certifying: 

  

	 	(a)	that each copy document specified in this Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement; and

  

	 	(b)	the specimen signatures of its authorised signatories. 

  

	6.	A legal opinion of Allen & Overy LLP, legal advisers to the Agent, addressed to the Finance Parties substantially in the form of Schedule 6. 

  

	7.	A legal opinion of Maclay Murray & Spens, legal advisers to the Agent in Scotland, addressed to the Finance Parties substantially in the form of Schedule 7.

  
 Miscellaneous 
  

	8.	A certificate of an authorised signatory of the Company confirming: 

  

	 	(a)	that the copy of each Licence held by a member of the Group other than PacifiCorp or its Subsidiaries previously delivered to the Agent in connection with the Existing Facility
Agreement is still correct, complete and in full force and effect as at a date no earlier than the date of this Agreement; and 

  

	 	(b)	that no new Licences have been issued to any member of the Group other than PacifiCorp or its Subsidiaries. 

  

 60 

	9.	Evidence that Existing Facility A has been cancelled and any outstandings under Existing Facility A have been or will on the first Utilisation Date be repaid in full.

  

	10.	A copy of the Original Group Accounts. 

  

	11.	Evidence that all fees and expenses then due and payable from the Company under the Finance Documents have been or will be paid by the first Utilisation Date.

  

	12.	Evidence that the process agent referred to in Clause 34 (Service of Process) has accepted the appointment. 

  

	13.	A copy of any other authorisation or other document, opinion or assurance which the Agent considers to be necessary or desirable in connection with the entry into and performance
of, and the transactions contemplated by, any Finance Document or for the validity and enforceability of any Finance Document and which, in either case, is notified to the Company prior to the execution of this Agreement. 

 

	14.	An executed copy of a side letter to the Existing Facility Agreement which amends the definition of Operating Profit, the mandatory prepayment provisions and the provision relating
to restrictions on borrowings so they are each consistent with the provisions contained in this Agreement. 

  

 61 

 SCHEDULE 3 
  
 CALCULATION OF THE MANDATORY COST 
  
 General 
  
 The Mandatory Cost is the weighted average of the rates for each Bank calculated below by the Agent on the first day of a Term. The Agent must distribute
each amount of Mandatory Cost among the Banks on the basis of the rate for each Bank. 
  

	1.	For a Bank lending from a Facility Office in the U.K.  

  

	(a)	The relevant rate for a Bank lending from a Facility Office in the U.K. is calculated in accordance with the following formulae: 

  
 for a Loan in Sterling: 
  

			
	 AB + C(B –D) + E x 0.01

	 	 per cent. per annum

	100 – (A + C)	 

  
 for any other Loan:

  

			
	 E x 0.01

	 	 per cent. per annum

	300	 

  
 where on the day of
application of the formula: 
  

	 	A	is the percentage of that Bank’s eligible liabilities (in excess of any stated minimum) which the Bank of England requires it to hold on a non-interest-bearing deposit account
in accordance with its cash ratio requirements; 

  

	 	B	is LIBOR for that Term; 

  

	 	C	is the percentage of that Bank’s eligible liabilities which the Bank of England requires it to place as a special deposit; 

  

	 	D	is the interest rate per annum allowed by the Bank of England on a special deposit; and 

  

	 	E	is calculated by the Agent as being the average of the rates of charge supplied by the Reference Banks to the Agent under paragraph (d) below and expressed in pounds per £1
million. 

  

	(b)	For the purposes of this paragraph 2: 

  

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

  

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

  

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

  

 62 

	

					
	(c)	  	(i)	 	In the application of the formulae, A, B, C and D are included as figures and not as percentages, e.g. if A = 0.5% and B = 15%, AB is calculated as 0.5 x 15. A negative result obtained by
subtracting D from B is taken as zero.
			
	 	  	(ii)	 	Each rate calculated in accordance with a formula is, if necessary, rounded upward to four decimal places.
			
	(d)	  	(i)	 	Each Reference Bank must supply to the Agent the rate of charge payable by that Reference Bank to the Financial Services Authority under the fees rules (calculated by that Reference Bank as
being the average of the rates of charge within fee-block Category A1 (Deposit acceptors) applicable to that Reference Bank but, for this purpose, applying any applicable discount and ignoring any minimum fee required under the fees rules) and
expressed in pounds per £1 million of the tariff base of that Reference Bank.
			
	 	  	(ii)	 	Each Reference Bank must promptly notify the Agent of any change to the rate of charge.
			
	(e)	  	(i)	 	Each Bank and each Reference Bank must supply to the Agent the information required by it to make a calculation of the rate for that Bank or Reference Bank. The Agent may assume that this
information is correct in all respects.
			
	 	  	(ii)	 	If a Bank or a Reference Bank fails to do so, the Agent may assume that the Bank’s or that Reference Bank’s obligations in respect of cash ratio deposits, special deposits and the
fees rules are the same as those of a typical bank from its jurisdiction of incorporation with a Facility Office in the U.K.
			
	 	  	(iii)	 	The Agent has no liability to any Party if its calculation over or under compensates any Bank.

  

	2.	For a Bank lending from a Facility Office in a Participating Member State  

  

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

  

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

  

	3.	Changes  

  
 The Agent may, after consultation with the Company and the Banks, notify all the Parties of any amendment to this Schedule which is required to reflect:

  

	 	(a)	any change in law or regulation; or 

  

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

 
 Any notification will be, in the absence of manifest error, conclusive
and binding on all the Parties. 
  

 63 

 SCHEDULE 4 
  
 FORM OF REQUEST 
  

	To:	THE ROYAL BANK OF SCOTLAND PLC as Agent 

  

	From:	SCOTTISH POWER PLC 

  
 Date: [                    ] 
  
 Scottish Power plc-US$375,000,000 Revolving Credit Agreement 
 dated [l], 2004 
  

	1.	We wish to borrow a Loan as follows: 

  

	 	(a)	Utilisation Date: [                    ] 

  

	 	(b)	Original Dollar Amount: US$[                    ] 

  

	 	(c)	Currency: [                    ] 

  

	 	(d)	Term: [                    ] 

  

	 	(e)	Payment/delivery instructions: [                    ] 

	 	

	2.	We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is satisfied on the date of this Request. 

  

	3.	We confirm that the Loan will be used in accordance with Clause 3 (Purpose). 

  

	4.	We confirm that the borrowing of the above referenced Loan will not cause any borrowing limit binding on Scottish Power plc to be exceeded. 

  

	
	 By:

	
	 SCOTTISH POWER PLC

	 Authorised Signatory

  

 64 

 SCHEDULE 5 
  
 FORM OF NOVATION CERTIFICATE 
  

	To:	THE ROYAL BANK OF SCOTLAND PLC as Agent 

  

	From:	[THE EXISTING BANK] and [THE NEW BANK]         Date:
[                    ] 

  
 Scottish Power plc - US$375,000,000 Revolving Credit Agreement 
 dated [l], 2004 
  
 We refer to Clause 25.3 (Procedure for novations). 
  

	1.	We [                    ] (the Existing Bank) and
[                    ] (the New Bank) agree to the Existing Bank and the New Bank novating all the Existing Bank’s rights and obligations
referred to in the Schedule in accordance with Clause 25.3 (Procedure for novations). 

  

	2.	The specified date for the purposes of 25.3(c) is [date of novation]. 

  

	3.	The Facility Office and address for notices of the New Bank for the purposes of Clause 31.2 (Addresses for notices) are set out in the Schedule. 

  

	4.	This Novation Certificate is governed by English law. 

  
 THE SCHEDULE 
  
 Rights and obligations to be novated 
  
 [Details of the rights and obligations of the Existing Bank to be novated]. 
  
 [New Bank] 
  
 [Facility Office Address
for notices] 
  

					
	[Existing Bank]	 	[New Bank]	 	THE ROYAL BANK OF SCOTLAND PLC
			
	By:	 	By:	 	By:
			
	Date:	 	Date:	 	Date:

  
  

 65 

 SCHEDULE 6 
  
 FORM OF LEGAL OPINION OF ALLEN & OVERY LLP 
  

	To:	The Finance Parties named as original parties 

 to the
Credit Agreement (as defined below). 
  
 , 2004 
  
 Dear Sirs, 
  
 Scottish Power plc (the Company) - US$375,000,000 Revolving Credit Agreement dated
[                    ], 2004 (the Credit Agreement) 
  
 We have acted as legal advisers in England to The Royal Bank of Scotland plc (the Agent) in connection with a Credit Agreement
dated [                ], 2004 (the Credit Agreement) made between among others, the Company as borrower, the Banks (as defined therein) and the Agent.

  
 Subject to the qualifications set out below and to any matters not disclosed
to us, we are of the opinion that, so far as the present laws of England are concerned: 
  

	(A)	Legal validity The Credit Agreement constitutes legally binding, valid and enforceable obligations of the Company. 

  

	(B)	Non-violation The execution, delivery and performance by the Company of the Credit Agreement will not violate any provision of any English law applicable to companies
generally. 

  

	(C)	Stamp duties No stamp or registration duty or similar taxes or charges are payable in the United Kingdom in respect of the execution or delivery of the Credit Agreement.

  

	(D)	Registrations It is not necessary to file, register or record the Credit Agreement in any public office or elsewhere in England in order for the Credit Agreement to
constitute legally binding, valid and enforceable obligations of the Company. 

  

	(E)	Consents To the extent that the Company holds authorisations or exemptions of any governmental, judicial or public body or authority in England and Wales under the
Electricity Act, no further authorisations or exemptions of any governmental, judicial or public body or authority in England and Wales under the Electricity Act are required as a condition to the execution by the Company of the Credit Agreement or
the performance by the Company of its obligations thereunder or the validity or enforceability of the Credit Agreement. 

  
 The qualifications to which this opinion is subject are as follows: 
  

	(i)	We assume the Credit Agreement has been duly authorised and entered into by each party to it. 

  

	(ii)	This opinion is subject to all insolvency and other laws affecting the rights of creditors generally. 

  

	(iii)	We assume that no foreign law affects the conclusions stated above. We assume, in particular, that, so far as the laws of Scotland are concerned, the Credit Agreement constitutes

  

 66 

 a legal, valid, binding and enforceable obligation of the Company. In this regard we have relied on
copies of the legal opinion referred to in paragraph 6 of Schedule 2 to the Credit Agreement. 
  

	(iv)	The term “enforceable” means that a document is of a type and form enforced by the English courts. It does not mean that each obligation will be enforced in accordance
with its terms. Certain rights and obligations of the Company may be qualified by the non-conclusivity of certificates, doctrines of good faith and fair conduct, the availability of equitable remedies and other matters, but in our view these
qualifications would not defeat your legitimate expectations in any material respect. 

  

	(v)	On 20th November, 2001 the Gas and Electricity
Markets Authority (the Authority) granted SP Transmission Limited (the Licensee) a consent under Special Condition S of the Licensee’s transmission licence (the Consent) in relation to certain cross-default obligations
contained in the facility agreement of 5th June, 2001 between Scottish Power UK plc, Royal Bank of Scotland plc (as
agent) and Royal Bank of Scotland plc and others (as lenders) (the June 2001 Facility). Under the terms of the Consent, the Licensee was required to obtain certain undertakings from the Company, including an undertaking not to incur
borrowings prohibited by the June 2001 Facility. We assume that the undertakings granted by the Company to the Licensee pursuant to the Consent complied with the Consent and have ceased to have effect by virtue of the fact that the June 2001
Facility has been terminated and has not been renegotiated. 

  

	(vi)	In relation to the Company’s obligations to procure that members of the Company’s Group comply with the undertakings set out at clauses 16.12 (Financial covenants) and
16.13 (Restriction on Borrowings of UK Subsidiaries) of the Credit Agreement (the clause 16 obligations), it should be noted that the Authority may, in certain circumstances, in exercise of its regulatory powers, require the Licensee and
other Group licence-holding companies, among other things, to incur capital expenditure so as to ensure compliance with their licence and/or statutory obligations under the Electricity Act, and that, to the extent that a licence-holding company
might need to incur debt in order to comply with such licence and/or statutory obligations, the clause 16 obligations may not be enforceable. 

  

	(vii)	We reviewed the Licences issued to the Group by the Authority for the purposes of our opinion dated 10th December, 2003. For the purpose of the opinion set out in paragraph (E) above and in accordance with our instructions, we have relied on a copy of the
certificate referred to in paragraph 7 of Schedule 2 to the Credit Agreement which confirms there has been no change to those Licences from those previously delivered to us. 

  
 This opinion is given for your sole benefit and may not be relied upon by or disclosed to
any other person, other than as required by law. 
  
 Yours faithfully, 

 

 67 

 SCHEDULE 7 
  
 FORM OF LEGAL OPINION OF MACLAY MURRAY & SPENS 
  

	(1)	The Royal Bank of Scotland plc 

 135 Bishopsgate

 London 
 EC2M 3UR 

(as Agent for the Finance Parties) (as such 
 terms are defined in the Facility Agreement 
 which is defined below) 
  
 and 
  

	(2)	Each of the Finance Parties (as defined in the 

 Facility
Agreement which is defined below) 
  
 Dear Sirs, 
  
 You have asked for our opinion in connection with an agreement dated
[    ] 2004 between Scottish Power plc as borrower (the “Company”), J.P. Morgan plc and The Royal Bank of Scotland plc as Mandated Lead Arrangers, the Original Banks (as defined therein) and the Agent (the
“Facility Agreement”). 
  
 Unless otherwise defined in this
opinion, words and expressions defined in the Facility Agreement shall bear the same meanings in this opinion. 
  
 For the purposes of this opinion, we have examined copies of and base our opinion on the following documents: 
  

	(a)	a certified copy of the Facility Agreement; 

  

	(b)	a certified copy of the Memorandum and Articles of Association of the Company; 

  

	(c)	an online report relating to the Company obtained from the Registrar of Companies in Edinburgh on [        ] 2004 and updated as at
[         ] 2004 (the “Company Search”); 

  

	(d)	a search of the Companies Section of the Register of Insolvencies dated
[                    ] 2004 (the “Insolvency Search”); 

  

	(e)	a certified copy of the minutes of a meeting of the [treasury committee] of the board of directors of the Company held on
[                    ] 2004 (the “Directors’ Minutes”); 

  

	(f)	a certificate dated [                     ] 2004 of two directors of the Company
confirming that the utilisation by the Company of the Facility (the “Director Certificate”) in full would not cause any internal borrowing limit binding on the Company to be exceeded and that the Company is not unable to pay its
debts within the meaning of section 123 of the Insolvency Act 1986; and 

  

	(g)	a certificate dated [                     ] 2004 of an authorised signatory of
the Company (the “Authorised Signatory Certificate”) certifying that each of the items in paragraphs (b) and (e) is correct, complete and in full force and certifying the specimen signatures of the Company’s authorised
signatories. The Director Certificate and Authorised Signatory Certificate are herein together referred to as “the Certificates”). 

  

 68 

 We have not made any other enquiries concerning the Company and in particular we have not concerned ourselves with
investigating or verifying any matters of fact or opinion (whether set out in any of the documents referred to above or elsewhere) other than as expressly stated herein. 
  
 We have assumed for the purposes of this opinion: 
  

	(i)	the capacity, power and authority of each of the Mandated Lead Arrangers, the Original Banks and the Agent to enter into and perform their respective obligations under the Facility
Agreement and the due execution and delivery of the Facility Agreement by each of the Mandated Lead Arrangers, the Original Banks and the Agent; 

  

	(ii)	that the Facility Agreement has been signed by [                 ] on behalf of the Company and that
the Facility Agreement has been duly delivered; 

  

	(iii)	the conformity to original documents of all documents supplied to us as photocopies, specimen or facsimile copies; 

  

	(iv)	that each of the statements contained in the Certificates (on which we have relied without further inquiry) is true and correct as at the date hereof; 

  

	(v)	that the meeting of the [treasury committee] of the board of directors of the Company held on [             ] 2004 was
duly convened and held; 

  

	(vi)	that the meeting of the board of directors held on [            ] 2004 duly delegated authority to and confirmed the
authority of the treasury committee in relation to matters such as consideration of the Facility Agreement pursuant to Article 114 of the Articles of Association of the Company; 

  

	(vii)	that the information disclosed by the Company Search was accurate in all respects and that such Search did not fail to disclose any material information which had been delivered for
registration but which did not appear on the online report supplied by the Companies Registry in Edinburgh; 

  

	(viii)	that the Insolvency Search is complete and accurate in all respects and does not fail to disclose any material information; 

  

	(ix)	the Company has not passed a voluntary winding-up resolution, no petition has been presented or order made by the Court for the winding up, dissolution or administration of the
Company and no receiver, trustee, administrator or similar official has been appointed in relation to the Company or any of its assets or revenues in each case which is not ascertainable from the Company Search and the Insolvency Search;

  

	(x)	that the Facility Agreement constitutes legal, valid and binding obligations of the parties thereto under English law to which it is expressed to be subject and that the performance
of the obligations thereunder is not illegal or unenforceable by virtue of the law of any jurisdiction (other than Scotland) in which they are to be performed; 

  

	(xi)	that the execution and delivery of the Facility Agreement by the Company and the performance of its obligations thereunder is in the interests of the Company and that the Facility
Agreement has been entered into for bona fide commercial reasons and on arms length terms by each of the parties thereto; and 

  

 69 

	(xii)	that the Company holds all authorisation and exemptions from any governmental, judicial or public authority in Scotland required for the execution of the Facility Agreement and the
performance by the Company of its obligations thereunder and the validity and enforceability of the Facility Agreement. 

  
 We have not made any investigation of and do not express any opinion as to the laws of any jurisdiction outside Scotland and this opinion relates only to the laws of
Scotland as they exist at the date hereof. 
  
 Based upon and subject to the
foregoing and subject to the reservations hereinafter referred to and to any matters not disclosed to us, we are of the opinion that: 
  

	1.	The Company is a limited liability company duly incorporated under the laws of Scotland and has full corporate power and authority to execute, deliver and perform its obligations
under the Facility Agreement. 

  

	2.	The execution and delivery by the Company of the Facility Agreement and the performance of its obligations thereunder have been duly authorised by all requisite corporate action on
its part. 

  

	3.	The obligations of the Company under the Facility Agreement are legal, valid and binding obligations of the Company under the law of Scotland and would be so treated in the Courts
of Scotland. 

  

	4.	The entry into and performance of the Facility Agreement by the Company and the transactions and matters to be implemented thereunder do not violate (i) Scottish Law or (ii) the
Memorandum and Articles of Association of the Company. 

  

	5.	It is not necessary to file, register or record the Facility Agreement with any court or authority in Scotland and (to the extent that the Company already holds all authorisations
or exemptions of any governmental, judicial or public body or authority in Scotland required for the execution of the Facility Agreement, the performance by the Company of its obligations thereunder or the validity or enforceability of the Facility
Agreement), no other authorisations or exemptions of any governmental, judicial or public body or authority in Scotland are required for the execution of the Facility Agreement, the performance by the Company of its obligations thereunder or the
validity or enforceability of the Facility Agreement. 

  

	6.	The claims of the Finance Parties under the Facility Agreement will rank at least pari passu with the claims of all other unsecured and unsubordinated creditors of the Company
except for claims in respect of preferential debts (as defined in Schedule 6 of the Insolvency Act 1986) 

  

	7.	No stamp, registration or other similar taxes or charges are payable in Scotland with respect to the execution or delivery of the Facility Agreement. 

  

	8.	The choice of English law to govern the Facility Agreement is valid and effective under the private international law of Scotland. Subject to the usual exceptions affecting such
matters as procedure, the availability of remedies and any provision which is repugnant to the law of Scotland, the law of England will accordingly be applied by the Courts of Scotland if any dispute arising from or contractual claim connected with
the Facility Agreement comes under their jurisdiction. A judgment rendered against the Company by a competent court in England and registered in Scotland pursuant to the provisions of the Civil Jurisdiction and Judgments Act 1982 will be enforceable
by the Scottish Courts. 

  

 70 

	9.	The submission by the Company to the jurisdiction of the courts of England is valid and binding on the Company. 

  

	10	Neither the Company Search nor the Insolvency Search show that the Company is in liquidation. 

  
 The foregoing opinion is subject to the following qualifications: 
  

	(a)	We do not express any view on the particular remedies available on enforcement, such as specific implement or interdict, which are discretionary remedies. 

 

	(b)	The enforcement of the Facility Agreement may be limited by applicable laws relating to prescription, limitation, bankruptcy, liquidation, receivership, administration, insolvency
or other laws relating to creditors’ rights generally or by the application of rules of equity or public policy. 

  

	(c)	A Scottish court may refuse to give effect to any provisions of the Facility Agreement providing for the payment of legal costs and other costs, charges and expenses in respect of
unsuccessful litigation brought before such court or where that court has itself made an order for costs. 

  

	(d)	Any provision contained in the Facility Agreement to the effect that a calculation and/or certification will be conclusive and binding may not be effective if such calculation or
certification is fraudulent or erroneous on its face and will not necessarily prevent judicial enquiry into the merit of any claim under the relative document. 

  

	(e)	Any provision in the Facility Agreement relating to default interest would be unenforceable if it were held to constitute a penalty and not a genuine and reasonable pre-estimate of
the damage likely to be suffered as a result of the default in payment of the amount in question. 

  

	(f)	We express no opinion whether any provision in the Facility Agreement conferring on any party thereto a right of set off or similar right would be effective against a liquidator or
creditor. 

  

	(g)	We have not been asked to advise you in connection with the preparation of the Facility Agreement and we therefore express no opinion on the implications of the Facility Agreement
or on whether the Facility Agreement gives effect to the commercial intentions of the parties. 

  

	(h)	Any undertakings or indemnities in relation to United Kingdom stamp duties given by the Company may be void under the provisions of Section 117 of the Stamp Act 1891. However, we
refer you to our opinion at paragraph 6 above that no stamp duty is payable in Scotland with respect to the execution or delivery of the Facility Agreement by the Company. 

  

	(i)	A Scottish court may stay proceedings if concurrent proceedings are being brought elsewhere. 

  

	(j)	The effectiveness of terms exculpating a party from a liability or duty otherwise owed is limited by law. 

  

	(k)	Where any party to the Facility Agreement is vested with a discretion or may determine a matter in its opinion, that party may be required to exercise its discretion in good faith,
reasonably and for a proper purpose. 

  

 71 

	(l)	Although monetary decrees of Scottish courts would normally be expressed in Sterling, in monetary claims for foreign currency Scottish courts may (but are not obliged to) issue a
decree expressed as an order to pay the appropriate amount of foreign currency. The decree will, however, be required to be converted into Sterling for the purpose of diligence and enforcement. Indebtedness denominated in a foreign currency claimed
in the winding up of a Scottish company must be converted into Sterling for this purpose. 

  

	(m)	We express no opinion on whether any provision in the Facility Agreement purporting to impose a trust in monies received would be effective against a liquidator or creditor.

  

	(n)	Any power of attorney conferred by the Facility Agreement might not survive the winding up, administration or receivership of the Company granting such power of attorney.

  

	(o)	The Scottish courts may not give effect to any provision in the Facility Agreement which provides that in the event of any invalidity, illegality or unenforceability of any
provision of such document, the remaining provisions of that document shall not be affected or impaired, particularly if to do so would require the court to make a new contract for the parties. 

  

	(p)	Under the provisions of Council Regulation (EC) No 44/2001 of 22 December 2000 and the Civil Jurisdiction and Judgements Act 1982 (as amended by the Civil Jurisdiction and
Judgements Order 2001) there is a procedure for the registration of English judgements in Scotland. In order to have an English judgement so registered the original judgement, signed by an Officer of Court together with the Court stamp, must be
produced. In addition all appeal procedures in respect of the judgement must be exhausted. Where, in compliance with this procedure, registration of an English judgment takes place, there is no need for any further hearing in Scotland and a creditor
can, after registration, take steps to enforce the English judgement in Scotland in accordance with Scottish enforcement procedure. 

  
 A Scottish court may decline jurisdiction where the Facility Agreement includes a prorogation agreement on the principle of forum non conveniens. Where
the Scottish courts entertain jurisdiction, expert evidence would require to be led on any relevant provisions of English law. If the creditor is successful, a Scottish court will award decree in favour of the creditor against the debtor. Such a
decree is the equivalent of an English judgement and, after obtaining such a decree, a creditor can proceed to enforcement in Scotland in accordance with Scottish procedure. 
  
 This opinion shall be governed by and construed in accordance with the law of Scotland. 
  
 This opinion is strictly limited to the matters specifically stated herein and is not to be
read as extending by implication to any other matter. 
  
 This opinion is provided
solely for the benefit of the persons to whom it is addressed and may not be communicated to or relied upon by any other person, firm or corporation whatsoever other than for the purposes of disclosure for information only to legal advisors,
auditors and, to the extent required by law, regulators of the addressees. 
  
 Yours faithfully, 
  

 72 

 SCHEDULE 8 
  
 EXISTING BORROWINGS 
  

			
	 Description

	  	Final Maturity

	 5.3% 10,000,000 EUR EMTN
	  	29/6/2004
		
	 0% 10,000,000 EUR EMTN
	  	30/7/2004
		
	 Variable 5,000,000 GBP EMTN
	  	15/10/2004
		
	 6.63% 50,000,000 GBP EMTN
	  	26/11/2004
		
	 Variable 1,500,000,000 JPY EMTN
	  	7/6/2005
		
	 Variable 2,000,000,000 JPY EMTN
	  	27/6/2005
		
	 Variable 50,000,000 USD EMTN
	  	14/7/2005
		
	 Variable 50,000,000 USD EMTN
	  	8/8/2005
		
	 6.75% 500,000,000 CZK EMTN
	  	12/9/2005
		
	 6.9% 1,500,000,000 CZK EMTN
	  	21/9/2005
		
	 6.715% 25,000,000 GBP EMTN
	  	13/2/2008
		
	 5.25% 725,000,000 deutschemark bond
	  	8/4/2008
		
	 Variable 30,000,000 GBP EMTN
	  	17/6/2008
		
	 Variable 9,000,000 EUR EMTN
	  	30/6/2008
		
	 5.03% 125,000,000 NLG EMTN
	  	15/7/2008
		
	 Variable 7,000,000 GBP EMTN
	  	16/7/2009
		
	 Variable 20,000,000 EUR EMTN
	  	13/10/2009
		
	 6.625% 200,000,000 euro-sterling bond
	  	14/1/2010
		
	 Variable rate 650,000,000 Australian Dollar bond
	  	18/7/2011
		
	 8.375% 200,000,000 euro-sterling bond
	  	20/2/2017
		
	 5.9% 300,000,000 GBP EMTN
	  	22/2/2021
		
	 6.75% 250,000,000 euro-sterling bond
	  	29/5/2023
		
	 Retail Price Index Linked 175,000,000 GBP bond
	  	13/10/2024
		
	 6.125% 25,000,000 GBP EMTN
	  	14/4/2028
		
	 4.6% 10,000,000,000 JPY Note
	  	27/7/2029
		
	 5.75% 50,000,000 GBP EMTN
	  	9/12/2039
		
	 6.5% 100,000,000 GBP EMTN
	  	31/5/2041
		
	 Variable 35,000,000 USD European Investment Bank loan
	  	16/9/2008
		
	 4.95% 30,000,000 GBP European Investment Bank loan
	  	3/2/2009
		
	 Variable 50,000,000 GBP European Investment Bank loan
	  	15/3/2010
		
	 6.28% 48,000,000 GBP European Investment Bank loan
	  	24/3/2010
		
	 5.75% 50,000,000 GBP European Investment Bank loan
	  	1/2/2011
		
	 Variable 3,600,000 GBP Loan Notes
	  	31/3/2006

  

 73 

 SCHEDULE 9 
  
 FORM OF CONFIDENTIALITY UNDERTAKING 
  

	To:	[Potential Bank] 

  

	Re:	US$375,000,000 credit agreement dated [l], 2004
between (amongst others) Scottish Power PLC (as Borrower) and the Royal Bank of Scotland Plc (as Agent) (the Agreement) 

  
 Dear Sirs 
  
 We understand that you are considering participating in the Facilities. In consideration of us agreeing to make available to you certain information, by your signature of a copy of this letter you agree as follows:

  

	1.	CONFIDENTIALITY UNDERTAKING  

  
 You undertake: 
  

	 	(a)	to keep the Confidential Information confidential and not to disclose it to anyone except as provided for by paragraph 2 below and to ensure that the Confidential Information is
protected with security measures and a degree of care that would apply to your own confidential information; 

  

	 	(b)	to keep confidential and not disclose to anyone the fact that the Confidential Information has been made available or that discussions or negotiations are taking place or have taken
place between us in connection with the Facilities; 

  

	 	(c)	to use the Confidential Information only for the Permitted Purpose; 

  

	 	(d)	to use all reasonable endeavours to ensure that any person to whom you pass any Confidential Information (unless disclosed under paragraph 2(b) below) acknowledges and complies with
the provisions of this letter as if that person were also a party to it; and 

  

	 	(e)	not to make enquiries of any member of the Group or any of their officers, directors, employees or professional advisers relating directly or indirectly to the Facilities.

  

	2.	PERMITTED DISCLOSURE  

  
 We agree that you may disclose Confidential Information: 
  

	 	(a)	to members of the Participant Group and their officers, directors, employees and professional advisers to the extent necessary for the Permitted Purpose and to any auditors of
members of the Participant Group; 

  

	 	(b)	(i) where requested or required by any court of competent jurisdiction or any competent judicial, governmental, supervisory or regulatory body, (ii) where required by the rules of
any stock exchange on which the shares or other securities of any member of the Participant Group are listed or (iii) where required by the laws or regulations of any country with jurisdiction over the affairs of any member of the Participant Group;
or 

  

 74 

	 	(c)	with the prior written consent of us and the Borrower. 

  

	3.	NOTIFICATION OF REQUIRED OR UNAUTHORISED DISCLOSURE 

  
 You agree (to the extent permitted by law) to inform us of the full circumstances of any disclosure under paragraph 2(b) or upon becoming aware that
Confidential Information has been disclosed in breach of this letter. 
  

	4.	RETURN OF COPIES  

  
 If we so request in writing, you shall return all Confidential Information supplied to you by us and destroy or permanently erase all copies of
Confidential Information made by you and use all reasonable endeavours to ensure that anyone to whom you have supplied any Confidential Information destroys or permanently erases such Confidential Information and any copies made by them, in each
case save to the extent that you or the recipients are required to retain any such Confidential Information by any applicable law, rule or regulation or by any competent judicial, governmental, supervisory or regulatory body or in accordance with
internal policy, or where the Confidential Information has been disclosed under paragraph 2(b) above. 
  

	5.	CONTINUING OBLIGATIONS  

  
 The obligations in this letter are continuing and, in particular, shall survive the termination of any discussions or negotiations between you and us.
Notwithstanding the previous sentence, the obligations in this letter shall cease (a) if you become a party to or otherwise acquire (by assignment or sub participation) an interest, direct or indirect in the Facilities or (b) twelve months after you
have returned all Confidential Information supplied to you by us and destroyed or permanently erased all copies of Confidential Information made by you (other than any such Confidential Information or copies which have been disclosed under paragraph
2 above (other than sub-paragraph 2(a)) or which, pursuant to paragraph 4 above, are not required to be returned or destroyed). 
  

	6.	NO REPRESENTATION; CONSEQUENCES OF BREACH, ETC.  

  
 You acknowledge and agree that: 
  

	 	(a)	neither we nor any of our officers, employees or advisers (each a Relevant Person) (i) make any representation or warranty, express or implied, as to, or assume any
responsibility for, the accuracy, reliability or completeness of any of the Confidential Information or any other information supplied by us or any member of the Group or the assumptions on which it is based or (ii) shall be under any obligation to
update or correct any inaccuracy in the Confidential Information or any other information supplied by us or any member of the Group or be otherwise liable to you or any other person in respect to the Confidential Information or any such information;
and 

  

	 	(b)	we or members of the Group may be irreparably harmed by the breach of the terms of this letter and damages may not be an adequate remedy; each Relevant Person or member of the Group
may be granted an injunction or specific performance for any threatened or actual breach of the provisions of this letter by you. 

  

 75 

	7.	NO WAIVER; AMENDMENTS, ETC  

  
 This letter sets out the full extent of your obligations of confidentiality owed to us in relation to the information the subject of this letter. No
failure or delay in exercising any right, power or privilege under this letter will operate as a waiver thereof nor will any single or partial exercise of any right, power or privilege preclude any further exercise thereof or the exercise of any
other right, power or privileges under this letter. The terms of this letter and your obligations under this letter may only be amended or modified by written agreement between us. 
  

	8.	INSIDE INFORMATION  

  
 You acknowledge that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be
regulated or prohibited by applicable legislation relating to insider dealing and you undertake not to use any Confidential Information for any unlawful purpose. 
  

	9.	NATURE OF UNDERTAKINGS  

  
 The undertakings given by you under this letter are given to us and (without implying any fiduciary obligations on our part) are also given for the
benefit of the Borrower and each other member of the Group. 
  

	10.	THIRD PARTY RIGHTS 

  

	(a)	Subject to paragraph 6 and paragraph 9 the terms of this letter may be enforced and relied upon only by you and us and the operation of the Contracts (Rights of Third Parties) Act
1999 is excluded. 

  

	(b)	Notwithstanding any provisions of this letter, the parties to this letter do not require the consent of any Relevant Person or any member of the Group to rescind or vary this letter
at any time. 

  

	11.	GOVERNING LAW AND JURISDICTION 

  
 This letter (including the agreement constituted by your acknowledgement of its terms) shall be governed by and construed in accordance with the laws of
England and the parties submit to the non-exclusive jurisdiction of the English courts. 
  

	12.	DEFINITIONS 

  
 In this letter (including the acknowledgement set out below): 
  
 Confidential Information means any information relating to the Borrower, the Group, and the Facilities, including, without limitation, the
information memorandum (if applicable), provided to you by us or any of our affiliates or advisers, in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information
which contains or is derived or copied from such information but excludes information that (a) is or becomes public knowledge other than as a direct or indirect result of any breach of this letter or (b) is known by you before the date the
information is disclosed to you by us or any of our affiliates or advisers or is lawfully obtained by you after that date, other than from a source which is connected with the Group and which, in either case, as far as you are aware, has not been
obtained in violation of, and is not otherwise subject to, any obligation of confidentiality; 
  

 76 

 Facilities means the facilities made available to the Borrower under the Agreement. 
  
 Group means the Borrower and each of its holding companies and
subsidiaries and each subsidiary of each of its holding companies (as each such term is defined in the Companies Act 1985); 
  
 Participant Group means you, each of your holding companies and subsidiaries and each subsidiary of each of your holding companies (as each such
term is defined in the Companies Act 1985); and 
  
 Permitted
Purpose means considering and evaluating whether to enter into the Facilities. 
  
 Please acknowledge your agreement to the above by signing and returning the enclosed copy. 
  
 Yours faithfully 
  

 For and on behalf of 
  
 [Lender] 
  

	To:	[Lender] 

 The Borrower and each other member of the Group

  
 We acknowledge and agree to the above: 
  

 For and on behalf of 
  
 [Potential
Bank] 
  

 77 

 SIGNATORY 
  

SIGNATORIES TO THE FACILITY AGREEMENT 
  

					
	 Company
	  	 
		
	SCOTTISH POWER PLC	  	 
			
	By:	  	A J M COATS	  	 
		
	 Mandated Lead Arrangers
	  	 
		
	THE BANK OF TOKYO-MITSUBISHI, LTD	  	 
			
	By:	  	ANDREW TRENOUTH	  	 
		
	BARCLAYS CAPITAL	  	 
			
	By:	  	MARK POPE	  	 
		
	COMMERZBANK AKTIENGESELLSCHAFT	  	 
			
	By:	  	JONATHAN R BOURNE	  	LYNDON SETTLE
		
	HSBC BANK PLC	  	 
			
	By:	  	ANDREW AITKEN	  	 
		
	J.P. MORGAN PLC	  	 
			
	By:	  	CRAIG MEHARRY	  	 
		
	THE ROYAL BANK OF SCOTLAND PLC	  	 
			
	By:	  	JOHN HARE	  	 

  

 78 

					
	 Agent
	  	 
		
	 THE ROYAL BANK OF SCOTLAND PLC
	  	 
			
	 By:
	  	 JOHN HARE
	  	 
		
	 Original Banks
	  	 
		
	 ABN AMRO BANK N.V.
	  	 
			
	 By:
	  	 MARTYN TAPLIN
	  	 PAUL MATTHEWS

		
	 ALLIED IRISH BANKS, P.L.C.
	  	 
			
	 By:
	  	 KEVIN BOYD
	  	 
		
	 BANK OF AMERICA, N.A.
	  	 
			
	 By:
	  	 JOHN WADE
	  	 
		
	 BARCLAYS BANK PLC
	  	 
			
	 By:
	  	 MARK POPE
	  	 
		
	 BBVA IRELAND PLC
	  	 
			
	 By:
	  	 PABLO VALLEJO
	  	 
		
	 BNP PARIBAS, LONDON BRANCH
	  	 
			
	 By:
	  	 ALAN POWELL
	  	 CLARE WEBB

		
	 CALYON, LONDON BRANCH
	  	 
			
	 By:
	  	 STEPHEN TUBB
	  	 MICHELE DEE

  

 79 

					
		
	 CDC FINANCE - CDC IXIS
	  	 
			
	 By:
	  	 HENRI MALICK
	  	 CHRISTOPHE DROUARD

		
	 CITIBANK, N.A.
	  	 
			
	 By:
	  	 NIELS KIRK
	  	 
	
	 COMMERZBANK AKTIENGESELLSCHAFT

			
	 By:
	  	 JONATHAN R BOURNE
	  	 LYNDON SETTLE

		
	 CREDIT SUISSE FIRST BOSTON
	  	 
			
	 By:
	  	 PETER STEVENS
	  	 GARRETT LYNSKEY

	
	 DEUTSCHE BANK AG LONDON

			
	 By:
	  	 DAVID BYRNE
	  	 RICHARD SEDLACEK

	
	 FORTIS BANK S.A./N.V.

			
	 By:
	  	 MARTIN DORE
	  	 PAUL BARNES

	
	 HSBC BANK PLC

			
	 By:
	  	 ANDREW AITKEN
	  	 
	
	 ING BANK N.V., LONDON BRANCH

			
	 By:
	  	 GEOFFREY SMITH
	  	 GERALD WALKER

	
	 JPMORGAN CHASE BANK

			
	 By:
	  	 CRAIG ASKHAM
	  	 

  

 80 

					
	 MERRILL LYNCH BANK USA

			
	 By:
	  	 LOUIS ALDER
	  	 
	
	 MIZUHO CORPORATE BANK, LTD.

			
	 By:
	  	 CHRIS GRAY
	  	 
	
	 MORGAN STANLEY DEAN WITTER BANK LIMITED

			
	 By:
	  	 MATHIAS BLUMSCHEIN
	  	 
	
	 NATIONAL AUSTRALIA BANK LIMITED (A.B.N. 12 004 044 937)

			
	 By:
	  	 DAVID ROBERTS
	  	 
	
	 TD BANK EUROPE LIMITED

			
	 By:
	  	 MARK CHERRY
	  	 
	
	 THE BANK OF TOKYO-MITSUBISHI, LTD.

			
	 By:
	  	 ANDREW TRENOUTH
	  	 
	
	 THE ROYAL BANK OF SCOTLAND PLC

			
	 By:
	  	 JOHN HARE
	  	 
	
	 UBS AG, LONDON BRANCH

			
	 By:
	  	 J CAMPBELL
	  	 D BURRI

  

 81Trust Deed dated July 10, 2003 relating to the Scottish Power Finance (Jersey)

 EXHIBIT 4.13 
  
 CONFORMED COPY 
  
 Dated 10 July 2003 
  
 SCOTTISH POWER FINANCE (JERSEY) LIMITED 
  
 and 
  
 SCOTTISH POWER PLC 
  
 and 
  
 THE LAW DEBENTURE TRUST CORPORATION p.l.c. 
  
  
 TRUST DEED 
  
 constituting 
 U.S.$700,000,000 4.00 per cent. Step-Up Perpetual Subordinated Guaranteed 
 Convertible Bonds 
  
 Guaranteed by
Scottish Power plc and convertible into 4.00 per cent. 
 Exchangeable Redeemable Preference Shares in Scottish Power Finance 
 (Jersey) Limited which will be exchanged immediately for 
 Ordinary Shares in Scottish Power plc 
  
  
 Linklaters 

 Table of Contents 
  

					
	 Contents

	  	 	  	Page

	 1
	  	Interpretation	  	1
			
	 2
	  	Amount of the Original Bonds and Covenant to Pay	  	6
			
	 3
	  	Guarantee, Indemnity and Subordination of Bond Guarantee	  	12
			
	 4
	  	Form of the Original Bonds; Issue of the Original Bonds	  	14
			
	 5
	  	Stamp Duties and Taxes	  	15
			
	 6
	  	Subordination by the Issuer	  	16
			
	 7
	  	Further Issues	  	17
			
	 8
	  	Application of Moneys received by the Trustee	  	17
			
	 9
	  	Covenant to Comply with Provisions	  	18
			
	 10
	  	Conversion	  	18
			
	 11
	  	Conversion on Redemption	  	19
			
	 12
	  	Covenants relating to Conversion and other matters	  	21
			
	 13
	  	Covenants	  	22
			
	 14
	  	Remuneration and Indemnification of the Trustee	  	25
			
	 15
	  	Provisions Supplemental to the Trustee Act 1925 and the Trustee Act 2000	  	27
			
	 16
	  	Trustee liable for negligence	  	31
			
	 17
	  	Waiver and Proof of Default	  	31
			
	 18
	  	Trustee not precluded from entering into Contracts	  	31
			
	 19
	  	Modification and Substitution	  	32
			
	 20
	  	Appointment, Retirement and Removal of the Trustee	  	33
			
	 21
	  	Communications	  	34
			
	 22
	  	Purchase or Redemption by the Guarantor of its own Shares	  	35
			
	 23
	  	Governing Law and Jurisdiction	  	35

  
  

 i 

					
	 24
	  	Counterparts	  	35
			
	 25
	  	Contracts (Rights of Third Parties) Act 1999	  	35
		
	 SCHEDULE 1 Form of Definitive Registered Bonds
	  	36
		
	 SCHEDULE 2 Terms and Conditions of the Bonds
	  	43
		
	 SCHEDULE 3 Form of Global Bonds
	  	73
		
	 SCHEDULE A Principal Amount of this Global Bond
	  	77
		
	 SCHEDULE B Interest Payments in respect of this Global Bond
	  	78
		
	 SCHEDULE 4 Provisions for Meetings of Bondholders
	  	79

  

 ii 

 This Trust Deed is made on 10 July 2003 between: 
  

	(1)	SCOTTISH POWER FINANCE (JERSEY) LIMITED (the “Issuer”) whose registered office is at 22 Grenville Street, St. Helier, Jersey JE4 8PX;

  

	(2)	SCOTTISH POWER PLC (the “Guarantor”) whose registered office is at 1 Atlantic Quay, Robertson Street, Glasgow G2 8FP; and 

  

	(3)	THE LAW DEBENTURE TRUST CORPORATION p.l.c. whose registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX (the “Trustee”, which expression
shall, where the context so admits, include all persons for the time being the trustee or trustees of this Trust Deed). 

  
 Whereas: 
  

	(A)	The Issuer, incorporated with limited liability in Jersey, has by a resolution of its Board of Directors passed on 8 July 2003 authorised the issue of U.S.$700,000,000 4.00 per
cent. Step-Up Perpetual Subordinated Guaranteed Convertible Bonds to be constituted by this Trust Deed. 

  

	(B)	The Guarantor, incorporated with limited liability in Scotland, has by resolutions of its Board of Directors passed on 29 May 2003 and a Committee of its Board of Directors passed
on 17 June and 3 July 2003 resolved to give the guarantee of the Bonds and the Preference Shares (each as defined in Clause 1.1 below) upon and subject to the terms and conditions set out below, the Articles of the Issuer and the Deed Poll and has
authorised the issue of the Ordinary Shares for which the Preference Shares will be exchanged. 

  

	(C)	The Trustee has agreed to act as trustee of this Trust Deed on the following terms and conditions. 

  
 Now this Deed witnesses and it is hereby agreed and declared as follows: 
  

	1	Interpretation 

  

	1.1	Definitions: The following expressions shall have the following meanings: 

  
 “Agency Agreement” means, in relation to the Original Bonds, the Paying, Transfer, Conversion and Exchange
Agency Agreement dated 10 July 2003, as altered from time to time, between the Issuer, the Guarantor, the Trustee, the Principal Paying, Transfer, Conversion and Exchange Agent, the Registrar and the other Paying, Transfer, Conversion and Exchange
Agents named therein whereby the Initial Paying, Transfer, Conversion and Exchange Agents and the Registrar were appointed in relation to the Original Bonds together with any agreement for the time being in force amending or modifying with the
approval of the Trustee any of the aforesaid agreements; 
  
 “Agents” means, in relation to the Original Bonds, the several institutions appointed as Paying, Transfer, Conversion and Exchange Agents and the Registrar pursuant to the Agency Agreement at their respective specified
offices (including the Principal Paying, Transfer, Conversion and Exchange Agent) referred to in the Conditions or their Successors at their specified offices; 
  

“Articles of the Issuer” means the Articles of Association of the Issuer as the same may be varied from time to time subject to
Condition 13(c) and any reference in this Trust Deed to a numbered Article shall be construed accordingly; 
  

 1 

 “Auditors” means the independent auditors for the time being of the Guarantor or, if
there shall be joint auditors, any one or more of such auditors, or in the event of them being unable or unwilling to carry out any action required of them pursuant to the Articles of the Issuer or this Trust Deed, such other accountants or firm of
accountants as may be selected by the Guarantor and approved in writing by the Trustee or, in default of such selection and approval, selected by the Trustee in good faith for the purpose; 
  
 “Authorised Signatory” means any person who (i) is a
director of the Issuer or (ii) has been notified by the Issuer in writing to the Trustee as being duly authorised to sign documents and to do other acts and things on behalf of the Issuer for the purposes of this Trust Deed; 
  
 “Bondholder” and (in relation to a Bond)
“holder” means a person in whose name a Bond is registered in the register of Bondholders; 
  
 “Bonds” means the Original Bonds and/or as the context may require any Further Bonds except that in Schedules 1 and 2,
“Bonds” means the Original Bonds; 
  
 “Clearstream, Luxembourg” means Clearstream Banking, société anonyme; 
  
 “Conditions” means, in relation to the Original Bonds, the terms and conditions set out in Schedule 2 and, with respect to any Further
Bonds the terms and conditions set out in a Schedule to the supplemental trust deed constituting such Further Bonds as any of the same may from time to time be modified in accordance with the provisions thereof and/or of this Trust Deed, and
references in this Trust Deed to a particular numbered Condition shall, in relation to the Original Bonds, be construed accordingly and shall, in relation to any Further Bonds, be construed as a reference to the provision (if any) in the Conditions
thereof which corresponds to the particular Condition of the Original Bonds; 
  
 “Conversion Date” has the meaning specified in Condition 8(b); 
  
 “Deed Poll” means the deed poll of even date herewith executed in favour of the holders of the Preference Shares by the Guarantor, as
from time to time amended in accordance with the provisions thereof; 
  
 “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 11 (or in respect of any Further Bonds, the relevant
Condition) to be events upon the happening of which the Bonds would, subject only to notice by the Trustee as therein provided become immediately due and repayable; 
  
 “Extraordinary Resolution” has the meaning set out in paragraph 21 of Schedule 4; 
  
 “Further Bonds” means any further bonds, notes or
debentures issued in accordance with the provisions of Clause 7 and constituted by a deed supplemental to this Trust Deed; 
  
 “Global Bond” means the Original Global Bonds and any global bonds or notes in respect of any Further Bonds; 
  
 “Guarantee” means the guarantee and indemnity of the
Guarantor set out in Clause 3; 
  
 “Interest Payment
Date” has the meaning provided in Condition 23; 
  
 “Investment Company Act” means the U.S. Investment Company Act of 1940, as amended, and the rules and regulations promulgated thereunder; 
  

 2 

 “London business day” has the meaning provided in Condition 23; 
  
 “London Stock Exchange” means the London Stock Exchange
plc; 
  
 “Market Disruption Event” has the
meaning specified in Condition 23; 
  
 “Nominal
Shares” has the meaning provided in the Articles of the Issuer; 
  
 “Ordinary Shares” means ordinary shares in the capital of the Guarantor having as at the date hereof a nominal value of 50 pence each (and all other (if any) shares or stock resulting from any
sub-division, consolidation, re-classification or redenomination of such shares) of the type for which the Preference Shares are exchangeable in accordance with the Conditions and the Articles of the Issuer; 
  
 “ordinary share capital” has the meaning ascribed to it in
Section 832 of the Income and Corporation Taxes Act 1988; 
  
 “Original Bondholders” means the holders for the time being of Original Bonds; 
  
 “Original Bonds” means the 4.00 per cent. Step-Up Perpetual Subordinated Guaranteed Convertible Bonds constituted by this Trust Deed and
for the time being outstanding (being on the date hereof U.S.$700,000,000 in principal amount) or, as the context may require, a specific number of them and any replacement Bonds issued pursuant to Condition 16 and (except for the purposes of
Clauses 4.1 and 4.2) the Original Global Bonds; 
  
 “Original Global Bonds” means the Regulation S Global Bond or the Rule 144A Global Bond initially representing the Original Bonds, in the form or substantially in the form set out in Schedule 2 and “Original Global
Bond” shall be construed accordingly; 
  
 “outstanding” means, in relation to the Bonds, all the Bonds issued other than (a) those which have been redeemed in accordance with the Conditions, (b) those in respect of which Conversion Rights have been exercised and
the Issuer’s obligation to issue Preference Shares and pay any accrued but unpaid interest in relation to such Bonds have been duly performed and which have been cancelled in accordance with the Conditions, (c) those in respect of which the
date for redemption in accordance with the Conditions has occurred and the redemption moneys (including all interest accrued on such Bonds to the date for such redemption and any interest payable under Condition 5 after such date) have been duly
paid to the relevant Bondholder or on its behalf or to the Trustee or to the Principal Paying, Transfer, Conversion and Exchange Agent as provided in Clause 2 and remain available for payment against presentation and surrender of Bonds, (d) those
which have become void or those in respect of which claims have become prescribed under Condition 14, (e) those mutilated or defaced Bonds which have been surrendered in exchange for replacement Bonds pursuant to Condition 16, (f) (for the purpose
only of determining how many Bonds are outstanding and without prejudice to their status for any other purpose) those Bonds alleged to have been lost, stolen or destroyed and in respect of which replacement Bonds have been issued pursuant to
Condition 16, (g) those which have been purchased and cancelled as provided in Condition 9, (h) the Regulation S Global Bond to the extent that interests in it have been exchanged for interests in the Rule 144A Global Bond and vice versa, (i) the
relevant Global Bond to the extent that it shall have been exchanged for interests in another Global Bond and any other Global Bond to the extent that it shall have been exchanged for definitive registered Bonds pursuant to its provisions; provided
that for the purposes of (i) ascertaining the right to attend and vote at any meeting of the Bondholders, (ii) the determination of how many Bonds are outstanding for the purposes of Condition 11, Condition 13, Condition 15 and Condition 20 and

  

 3 

 Schedule 4 and (iii) the exercise of any discretion, power or authority which the Trustee is required,
expressly or impliedly, to exercise in or by reference to the interests of the Bondholders, those Bonds (if any) which are beneficially held by, or are held on behalf of, the Issuer or the Guarantor or any Subsidiary of the Issuer or the Guarantor
or any holding company of the Issuer or the Guarantor (within the meaning of Section 736 of the Companies Act 1985) and not yet cancelled shall be deemed not to remain outstanding; 
  
 “Paid-up Value” means, in respect of the Preference Shares, a paid-up value of U.S.$1,000 each; 

 
 “Payment Date” has the meaning specified in Condition
23; 
  
 “Potential Event of Default” means an
event or circumstance which would with the giving of notice and/or the expiry of any grace period and/or the issuing of a certificate and/or the fulfilment of any other requirement provided for in Condition 11 become an Event of Default; 

 
 “Preference Shares” means the 4.00 per cent,
exchangeable redeemable preference shares of the Issuer of the type into which the Bonds are convertible; 
  
 “Principal Paying, Transfer, Conversion and Exchange Agent” means, in relation to the Original Bonds, Citibank, N.A. at its specified
office, in its capacity as Principal Paying, Transfer, Conversion and Exchange Agent (in respect of the Original Bonds) and, in relation to any Further Bonds, the Principal Paying, Transfer, Conversion and Exchange Agent appointed in respect of such
Further Bonds and in each case any Successor Principal Paying, Transfer, Conversion and Exchange Agent; 
  
 “Registrar” means, in relation to the Original Bonds, Citibank AG, Frankfurt at its specified office appointed as Registrar under the
Agency Agreement and, in relation to any Further Bonds which are or may be in registered form, such institution as shall be appointed Registrar for such Further Bonds and in each case any successor; 
  
 “Regulation S Global Bond” means the Global Bond
representing Bonds sold outside the United States in reliance on Regulation S under the Securities Act and in, or substantially in, the form set out in Schedule 3; 
  
 “Rule 144A Global Bond” means the Global Bond representing the Bonds resold pursuant to Rule 144A under the
Securities Act and in, or substantially in, the form set out in Schedule 3; 
  
 “Securities Act” means the U.S. Securities Act of 1933, as amended; 
  
 “Share Exchange Call” has the meaning specified in the Articles of the Issuer; 
  
 “Shareholders” means the holders of Ordinary Shares;

  
 “specified office” means, in relation to any
Agent, either the office identified with its name at the end of the Conditions or any other office approved by the Trustee and notified to the Bondholders pursuant to Condition 18; 
  
 “Subsidiary” means a subsidiary undertaking within the meaning of Section 258 of the Companies Act 1985;

  
 “Successor” means, in relation to the
Agents, such other or further person as may from time to time be appointed by the Issuer and/or the Guarantor as an Agent with the written approval of, and on terms approved in writing by, the Trustee and notice of whose appointment is given to
Bondholders pursuant to Condition 18; 
  

 4 

 “this Trust Deed” means this Trust Deed, the Schedules (as from time to time altered in
accordance with this Trust Deed) and any other document executed in accordance with this Trust Deed (as from time to time so altered) and expressed to be supplemental to this Trust Deed; 
  
 “Transfer Restriction Legend” means the transfer restriction legend set out in Schedules 1 and 3, which,
unless otherwise agreed by the Issuer and the Guarantor, shall appear on any individual definitive registered Bond issued in respect of (a) any interest in any Rule 144A Global Bond, (b) any Bonds which have been offered and resold in the United
States in reliance on Rule 144A under the Securities Act or (c) prior to the expiration of the applicable distribution compliance period under Regulation S under the Securities Act, any interest in any Regulation S Global Bond; and 
  
 “trust corporation” means a trust corporation (as defined
in the Law of Property Act 1925) or a corporation entitled to act as a trustee pursuant to applicable foreign legislation relating to trustees. 
  

	1.2	Construction of Certain References: References to: 

  

	 	1.2.1	costs, charges, remuneration or expenses shall include any amount in respect of value added tax, turnover tax or similar tax charged in respect thereof;

  

	 	1.2.2	“pounds”, “pounds sterling”, “sterling”, “£” shall be construed as references to the lawful currency for
the time being of the United Kingdom; 

  

	 	1.2.3	“U.S. dollars” and “U.S.$” are references to the lawful currency for the time being of the United States of America;

  

	 	1.2.4	any action, remedy or method of judicial proceedings for the enforcement of rights of creditors shall include, in respect of any jurisdiction other than England and Wales,
references to such action, remedy or method of judicial proceedings for the enforcement of rights of creditors available or appropriate in such jurisdiction as shall most nearly approximate thereto and in particular references in this Trust Deed and
in the Conditions to the “winding up of the Issuer” shall without limitation include the declaration of the assets of the Issuer en désastre (an insolvency procedure under the laws of Jersey) and any other similar, analogous
or corresponding event under the insolvency laws of any applicable jurisdiction; 

  

	 	1.2.5	words denoting the singular number only shall include the plural number also and vice versa; 

  

	 	1.2.6	words denoting one gender only shall include the other gender; 

  

	 	1.2.7	words denoting persons only shall include firms and corporations and vice versa; 

  

	 	1.2.8	any reference to “interest” shall, where appropriate, include Deferred Payments; 

  

	 	1.2.9	any provision of any statute (other than as used in the definition of “Subsidiary”) shall be deemed also to refer to any statutory modification or
re-enactment thereof or any statutory instrument, order or regulation made thereunder or under such modification or re-enactment; and 

  

	 	1.2.10	any reference to an “investment bank” may include UBS Limited. 

  

 5 

	1.3	Conditions: Words and expressions defined in the Conditions and not defined in the main body of this Trust Deed shall when used in this Trust Deed have the same meanings as
are given to them in the Conditions. 

  

	1.4	Headings: Headings shall be ignored in construing this Trust Deed. 

  

	1.5	Schedules: The Schedules are part of this Trust Deed and shall have effect accordingly. 

  

	1.6	Enforceability: If at any time any provision of this Trust Deed is or becomes illegal, invalid or unenforceable in any respect under the law of any jurisdiction, neither the
legality, validity or enforceability of the remaining provisions of this Trust Deed nor the legality, invalidity or enforceability of such provision under the law of any other jurisdiction shall in any way be affected or impaired thereby.

  

	2	Amount of the Original Bonds and Covenant to Pay 

  

	2.1	Amount of the Original Bonds: The aggregate principal amount of the Original Bonds is limited to an amount not exceeding U.S.$700,000,000. 

  

	2.2	Covenants of the Issuer 

  

	 	2.2.1	Covenant to Pay: The Issuer will on any date when the Original Bonds or any of them become due to be redeemed in accordance with this Trust Deed or the Conditions
unconditionally pay to or to the order of the Trustee in U.S. dollars in New York City in same calendar day funds the principal amount of the Original Bonds becoming due for redemption on that date, any Cash Settlement Amount payable on that date
and will in each case (subject to the Conditions) until such payment (both before and after judgment) unconditionally pay or procure to be paid to or to the order of the Trustee as aforesaid interest on the aggregate principal amount of the Original
Bonds outstanding as set out in Condition 5 provided that (1) every payment of any sum due in respect of the Bonds made to or to the account of the Principal Paying, Transfer, Conversion and Exchange Agent as provided in the Agency Agreement shall,
to such extent, satisfy such obligation except to the extent that there is failure in its subsequent payment to the relevant Original Bondholders and (2) in the event that (following, if so required, due presentation of an Original Bond) upon
redemption, payment of any sums due is improperly withheld or refused such Original Bond will continue to bear interest as aforesaid until the calendar day after the Original Bondholders have been or are deemed to have been notified of receipt by
the Trustee or the Principal Paying, Transfer, Conversion and Exchange Agent of all sums due in respect of the Original Bonds up to that day (except to the extent that there is a failure in the subsequent payment to the relevant holders under the
Conditions). The Trustee will hold the benefit of this covenant on trust for the Original Bondholders. 

  

	 	2.2.2	Covenant to deliver Redemption Settlement Shares: The Issuer will on any date when delivery of the Redemption Settlement Shares is required in accordance with this Trust Deed
and/or Condition 9(g) unconditionally deliver such Redemption Settlement Shares to or to the order of the Trustee and will (subject to the Conditions) until such delivery (both before and after judgment) unconditionally pay or procure to be paid to
or to the order of the Trustee as aforesaid interest on the aggregate principal amount of the Original Bonds outstanding as set out in Condition 5 provided that (1) every delivery of Redemption Settlement Shares in respect of the Original Bonds to
the relevant Original Bondholders as provided in 

  

 6 

 the Agency Agreement shall, to such extent, satisfy such obligation and (2) in the event that delivery
of the Redemption Settlement Shares upon redemption is improperly withheld or refused such Original Bond will continue to bear interest as aforesaid until the calendar day after the Original Bondholders have duly received the relevant Redemption
Settlement Shares and have been or are deemed to have been notified of receipt by the Trustee or the Principal Paying, Transfer, Conversion and Exchange Agent of all sums due in respect of the Bonds up to that day (except to the extent that there is
a failure in the subsequent payment to the relevant holders under the Conditions). The Trustee will hold the benefit of this covenant on trust for the Original Bondholders. 
  

	2.3	Discharge: Subject to Clause 2.4, any payment or delivery of Redemption Settlement Shares to be made in respect of the Bonds by the Issuer, the Guarantor or the Trustee may
be made as provided in the Conditions and any payment or delivery of Redemption Settlement Shares so made will (subject to Clause 2.4) to such extent be a good discharge to the Issuer, the Guarantor or the Trustee, as the case may be.

  

	2.4	Payment after Default and Trustee’s Conversion: 

  

	 	2.4.1	At any time after a Potential Event of Default or an Event of Default has occurred and whilst the same is subsisting, the Trustee may: 

  

	 	(i)	by notice in writing to the Issuer, the Guarantor and the Agents, require the Agents, until notified by the Trustee to the contrary, so far as permitted by any applicable law:

  

	 	(a)	to act thereafter as Agents of the Trustee in relation to payments to be made by or on behalf of the Trustee or delivery of Redemption Settlement Shares, as the case may be under
this Trust Deed and the Bonds on the terms of the Agency Agreement (with such consequential amendments as necessary and except that the Trustee’s liability for the indemnification, remuneration and all other out-of-pocket expenses of the Agents
will be limited to the amounts for the time being held by the Trustee in respect of the Bonds on the terms of this Trust Deed) and thereafter to hold all Bonds and all moneys, documents and records held by them in respect of Bonds to the order of
the Trustee; or 

  

	 	(b)	to deliver all Bonds, Redemption Settlement Shares, all moneys, documents and records held by them in respect of the Bonds and, if the Trustee so directs in such notice or
subsequently so directs, any Preference Shares held by them, to the Trustee or as the Trustee directs in such notice provided that such notice shall be deemed not to apply to any documents or records which the relevant Agent is obliged not to
release by any law or regulation; and 

  

	 	(ii)	by notice in writing to the Issuer or, where applicable, the Guarantor require it to make all subsequent payments or delivery of Redemption Settlement Shares in respect of the Bonds
to or to the order of the Trustee and not to the Principal Paying, Transfer, Conversion and Exchange Agent. With effect from the issue of any such notice to the Issuer or, where applicable, the Guarantor and until such time as the notice is
withdrawn proviso (1) to Clause 2.2.1 shall not apply. 

  

 7 

	 	2.4.2	Forthwith after the Trustee elects pursuant to Clause 11 and Condition 8(c) to convert Unexercised Bonds (as defined in Clause 11.1.1) and to sell the Ordinary Shares
delivered to it on such conversion or forthwith after the delivery of Redemption Settlement Shares in accordance with Condition 9(g), the Trustee may by notice in writing to the Issuer, the Guarantor and the Agents, require the Agents in relation to
such conversion and/or sale: 

  

	 	(i)	to act thereafter as Agents of the Trustee in relation to payments or delivery of Redemption Settlement Shares to be made by or on behalf of the Trustee in respect of such
Unexercised Bonds or, as the case may be, the Bonds to which such Redemption Settlement Shares relate (the “Redemption Bonds”) under the provisions of the Trust Deed and the Bonds mutatis mutandis on the terms provided in the
Agency Agreement (save that the Trustee’s liability under any provision thereof for the indemnification, remuneration and all other out-of-pocket expenses of any of the Agents shall be limited to the amounts for the time being held by the
Trustee in respect of the relevant Unexercised Bonds or, as the case may be, Redemption Bonds on the terms of this Trust Deed) and thereafter to hold all such Unexercised Bonds or, as the case may be, Redemption Bonds and all moneys, documents and
records held by them in respect of such Unexercised Bonds or, as the case may be, Redemption Bonds on behalf of the Trustee and in relation to the Agents, to the extent not already so done, to deduct from the net proceeds of sale under Condition
9(g)(iii)(7) any taxes and capital, stamp, issue and registration duties arising on conversion (other than such taxes or duties payable in London by the Guarantor in respect of the issue and/or delivery of Ordinary Shares on conversion) and any
costs incurred by the Trustee in connection with the issue and/or delivery of Ordinary Shares; or 

  

	 	(ii)	to deliver up all such Unexercised Bonds or, as the case may be, Redemption Bonds and all moneys, documents and records held by them in respect of such Unexercised Bonds or, as the
case may be, Redemption Bonds to the Trustee or as the Trustee directs in such notice or subsequently provided that such notice shall be deemed not to apply to any documents or records which the relevant Agent is obliged not to release by any law or
regulation. 

  

	2.5	Rate of Interest after a Default: If at any time after the First Reset Date the Bonds become immediately payable under the Conditions the rate of interest payable in respect
of them will continue to be calculated by the Registrar in accordance with the Conditions (with consequential amendments as necessary) except that the rates of interest need not be published unless the Trustee otherwise requires. The first period in
respect of which interest shall be so calculable will commence on the expiry of the Interest Period (as defined in the Conditions) during which the Bonds become so repayable. 

  

	2.6	Deferred Coupon Satisfaction Mechanism: Where the Issuer is to satisfy any Deferred Payment (the “Due Amount”) on a particular date (the “Deferred
Payment Date”) in accordance with Condition 7, it shall so notify, inter alios, the Guarantor and the Trustee. Thereupon, subject to Conditions 7(b), 7(d) and 7(e): 

  

	 	2.6.1	on or prior to the eleventh London business day prior to the Deferred Payment Date the Guarantor shall determine the number of Preference Shares (the 

  

 8 

 “Payment Preference Shares”) that have an aggregate market value after being converted
into Payment Ordinary Shares, when converted into dollars at the prevailing market exchange rates determined by the Calculation Agent, of not less than an amount equal to the relevant Deferred Payment; 
  

	 	2.6.2	on or prior to the eleventh London business day prior to the Deferred Payment Date the Guarantor shall determine the number of Preference Shares (the “Associated Cost
Preference Shares”) that have an aggregate market value of not less than the Associated Costs (as defined in Clause 3.3(c) of the Calculation Agency Agreement), as notified by the Calculation Agent to the Guarantor pursuant to the terms of
the Calculation Agency Agreement; 

  

	 	2.6.3	on or prior to the seventh London business day preceding the Deferred Payment Date, the Issuer shall duly authorise the issue of the relevant number of Payment Preference
Shares and the Associated Cost Preference Shares and, on such date, shall validly issue, free from lien or any other encumbrance, such Payment Preference Shares and the Associated Cost Preference Shares to the Trustee (or, if so agreed between the
Issuer and the Trustee, to an agent for the Trustee) and such issue of the Payment Preference Shares shall, subject to Clause 2.6.7, discharge the Issuer from its liability to make the relevant Deferred Payment; 

  

	 	2.6.4	on or prior to the eleventh London business day prior to the Deferred Payment Date the Calculation Agent shall determine the number of Ordinary Shares (the “Associated Cost
Ordinary Shares”) that have an aggregate market value of not less than the Associated Costs and shall notify the Trustee, the Issuer and the Guarantor accordingly; 

  

	 	2.6.5	on or prior to the seventh London business day preceding the Deferred Payment Date, the Guarantor shall duly authorise the issue of the relevant number of Payment Ordinary
Shares (in accordance with and subject to Condition 7(b)(ii)) and the Associated Cost Ordinary Shares and, on such date, the Guarantor shall validly issue, free from lien or any other encumbrance (i) the Payment Ordinary Shares in consideration for
the delivery by the Trustee or its agent to the Guarantor of the Payment Preference Shares and (ii) the Associated Cost Ordinary Shares in consideration for the delivery by the Trustee or its agent to the Guarantor of the Associated Cost Preference
Shares, in each case to the Trustee (or, if so agreed between the Issuer and the Trustee, to its agent); 

  

	 	2.6.6	the Trustee will use reasonable endeavours to give the necessary instruction to the Calculation Agent (subject to any necessary consents being obtained) as soon as
practicable and in any case not later than by close of business on the sixth London business day preceding the Deferred Payment Date to procure purchasers for such Payment Ordinary Shares on its behalf, and the Calculation Agent has agreed to use
reasonable endeavours on behalf of the Trustee to procure purchasers for such Payment Ordinary Shares prior to the Deferred Payment Date; 

  

	 	2.6.7	following the sale of the Payment Ordinary Shares (and the exchange of their proceeds into dollars in accordance with Condition 7(b)(iii)) and the Associated Cost Ordinary Shares,
the Trustee shall (i) apply the proceeds of sale of the Associated Cost Ordinary Shares in or towards satisfaction of the Associated Costs and (ii) procure the payment of the proceeds of sale of the Payment Ordinary Shares to the Principal Paying,
Transfer, Conversion and Exchange Agent in accordance with Condition 7(c) in respect of the relevant Payment; 

  

 9 

	 	2.6.8	if the proceeds of the sale of the Payment Ordinary Shares and the Associated Cost Ordinary Shares will not, in the opinion of the Calculation Agent or, in the case of the
Associated Cost Ordinary Shares, the Trustee (as notified to the Calculation Agent) despite the arrangements contained in Condition 7(b)(i) to (iii) and Clauses 2.6.1 to 2.6.6, result in each case in a sum at least equal to respectively the relevant
Payment and Associated Costs being available to make respectively the Payment and pay the Associated Costs in full on the Deferred Payment Date, the Calculation Agent pursuant to its obligations under the Calculation Agency Agreement shall promptly
notify each of the parties hereto, and the Calculation Agent and the Issuer and the Guarantor shall then take such steps as are reasonably necessary to ensure, so far as practicable, that through issuing and selling additional Preference Shares and
Ordinary Shares in each case a sum at least equal to respectively the relevant Payment and the Associated Costs will be available to make the Payment and pay the Associated Costs in full on the Deferred Payment Date, provided that for such purpose
Clauses 2.6.1 to 2.6.6 shall be modified as follows: 

  

	 	(i)	references therein to “Payment” shall be deemed to be references to the amount by which the aggregate sum then paid to the Principal Paying, Transfer, Conversion
and Exchange Agent in respect of Deferred Payments pursuant to the provisions of this Clause 2.6 is less than the Deferred Payment Amount (the “Payment Shortfall”), 

  

	 	(ii)	references to “Associated Costs” shall be deemed to be references to the aggregate of (a) the amount by which the sum received by or on behalf of the Trustee in
respect of Associated Costs is less than the Associated Costs and (b) the Associated Costs determined under Clause 3.3(c)(iii) of the Calculation Agency Agreement but by reference to the numbers of additional Preference Shares and Ordinary Shares
determined to be required to be issued in order to satisfy the Shortfall (such aggregate being the “Costs Shortfall”), and 

  

	 	(iii)	all matters required to be done by a stated time shall be done as soon as practicable, 

  
 and further provided for the avoidance of doubt that the parties’ obligations under this Clause 2.6.7 shall only apply
to the extent that it is practicable to raise dollar funds by the Deferred Payment Date by following the procedures contained in Clauses 2.6.1 to 2.6.6, as amended. For the purposes of this Clause 2.6, “Shortfall” shall mean the
aggregate of the Payment Shortfall and the Costs Shortfall. 
  

	 	2.6.9	if the aggregate U.S. dollar amounts paid to the Principal Paying, Transfer, Conversion and Exchange Agent under this Clause 2.6 are less than the Deferred Payment Amount, the
Trustee shall, promptly following it (or its agent) receiving dollar amounts in respect of the Shortfall in respect of such payment pursuant to Clause 2.7, pay such amounts to the Principal Paying, Transfer, Conversion and Exchange Agent for payment
by the Principal Paying, Transfer, Conversion and Exchange Agent to Bondholders and until the Trustee (or its agent) receives such 

  

 10 

 amounts, the Trustee shall not be obliged to pay any such amounts and no Bondholder shall be entitled to
take any action against the Trustee to obtain such payment. 
  

	 	2.6.10	The Trustee may only appoint an agent in connection with this Clause 2.6 and Condition 7 if so agreed by the Issuer and the Guarantor. 

  

	 	2.6.11	The Trustee and any agent of the Trustee shall not accept or hold any of the Payment Preference Shares, Payment Ordinary Shares, Associated Cost Preference Shares or Associated Cost
Ordinary Shares issued in connection with the Deferred Coupon Satisfaction Mechanism within the United Kingdom, save as previously agreed with the Issuer. 

  

	 	2.6.12	No liability shall attach to the Trustee or its agents if, as a result of a Market Disruption Event, as defined in the Conditions, or any other event outside the control of the
Trustee or its agent, the Trustee or its agent is unable to comply with the provisions of Condition 7(b) and this Clause 2.6. 

  

	2.7	Shortfall at Deferred Payment Date: 

  

	 	2.7.1	If, despite the operation of Clause 2.6, there is a Shortfall as at the Deferred Payment Date, the Issuer will, upon being notified of such Shortfall, either:

  

	 	(i)	pay to the Trustee as soon as practicable (a) an amount equal to the Payment Shortfall and (b) an amount equal to the Costs Shortfall; or 

  

	 	(ii)	if the Issuer in its discretion so determines, elect by notice to the Guarantor, the Trustee, the Registrar and the Calculation Agent to satisfy, as appropriate, the Payment
Shortfall and the Costs Shortfall through the issue of Payment Preference Shares, subject to Condition 7(d) and 7(e), and in accordance with the procedures contained in Clauses 2.6.1 to 2.6.6 (as modified by paragraphs (i) to (iii) of Clause 2.6.7,
save that (a) references to “Payment” shall then be deemed to be references to the amount by which the aggregate sum then paid to the Registrar and/or the Trustee pursuant to the provisions of Clauses 2.6 or 2.7 is less than the Due
Amount, (b) references to “Associated Costs” shall then be deemed to be references to “Associated Costs” as then determined under Clause 2.6.7 and (c) references to “Shortfall” shall be construed accordingly) one more
time. 

  

	 	2.7.2	If following the operation of Clause 2.6 above there is for any reason still a Shortfall, then the provisions of Clause 2.6 above shall be applied (as often as necessary) in respect
of the Shortfall until the Calculation Agent and the Trustee shall have received funds equal to the full amount of the Shortfall. 

  

	2.8	Excess Funds: If, following the operation of Clause 2.6 and, if applicable, Clause 2.7 in order to satisfy a Due Amount and its related Associated Costs, the Trustee (or any
other Agent on behalf of the Trustee) holds funds in excess of such Deferred Payment Amount and such Associated Costs, it will (or procure that the Agent which holds such excess funds will) forthwith notify the Issuer that it (or such Agent) holds
such excess funds and shall within five London business days of such notification transfer such excess funds to or to the order of the Issuer. 

  

 11 

	3	Guarantee, Indemnity and Subordination of Bond Guarantee 

  

	3.1	Guarantee: The Guarantor unconditionally and irrevocably guarantees that if the Issuer does not pay any sum payable by it or deliver any Ordinary Shares due from it under
this Trust Deed or the Bonds by the time and on the date specified for such payment or delivery (whether on the normal due date, on acceleration or otherwise) the Guarantor will pay that sum or procure the delivery of such Ordinary Shares to or to
the order of the Trustee, in the manner provided in Clause 2.2 (or if in respect of sums due under Clause 14, in London in pounds sterling in immediately available funds) before close of business on that date in the city to which payment is so to be
made. Clause 2.2 will apply (with consequential amendments as necessary) to such payments other than those in respect of sums due under Clause 14. 

  

	3.2	Guarantor as Principal Debtor: As between the Guarantor and the Trustee and the Bondholders but without affecting the Issuer’s obligations, the Guarantor will be liable
under this Clause as if it were the sole principal debtor and not merely a surety. Accordingly, it will not be discharged, nor will its liability be affected, by anything which would not discharge it or affect its liability if it were the sole
principal debtor (including (1) any time, indulgence, waiver or consent at any time given to the Issuer or any other person, (2) any amendment to any other provisions of this Trust Deed or to the Conditions or to any security or other guarantee or
indemnity, (3) the making or absence of any demand on the Issuer or any other person for payment, (4) the enforcement or absence of enforcement of this Trust Deed or the Bonds or of any security or other guarantee or indemnity, (5) the taking,
existence or release of any security, guarantee or indemnity, (6) the dissolution, amalgamation, reconstruction or reorganisation of the Issuer or any other person or (7) the illegality, invalidity or unenforceability of or any defect in any
provision of this Trust Deed or the Bonds or any of the Issuer’s obligations under any of them). 

  

	3.3	Guarantor’s Obligations Continuing: The Guarantor’s obligations under this Trust Deed are and will remain in full force and effect by way of continuing security
until no sum remains payable under this Trust Deed or the Bonds. Furthermore, those obligations of the Guarantor are additional to, and not instead of, any security or other guarantee or indemnity at any time existing in favour of any person,
whether from the Guarantor or otherwise and may be enforced without first having recourse to the Issuer, any other person, any security or any other guarantee or indemnity. The Guarantor irrevocably waives all notices and demands of any kind.

  

	3.4	Exercise of Guarantor’s Rights: So long as any sum remains payable under this Trust Deed or the Bonds: 

  

	 	3.4.1	any right of the Guarantor, by reason of the performance of any of its obligations under this Clause, to be indemnified by the Issuer or to take the benefit of or to enforce any
security or other guarantee or indemnity will be exercised and enforced by the Guarantor only in such manner and on such terms as the Trustee may require or approve; and 

  

	 	3.4.2	any amount received or recovered by the Guarantor (a) as a result of any exercise of any such right or (b) in the dissolution, amalgamation, reconstruction or reorganisation of the
Issuer will be held in trust for the Trustee to the extent that the Trustee is entitled to such amounts and immediately paid to the Trustee and the Trustee (if due) will hold it on the trusts set out in Clause 8.1. 

  

 12 

	3.5	Suspense Accounts: Any amount received or recovered by the Trustee (otherwise than as a result of a payment by the Issuer to the Trustee in accordance with Clause 2) in
respect of any sum payable by the Issuer under this Trust Deed or the Bonds may be placed in a suspense account and kept there for so long as the Trustee thinks fit. 

  

	3.6	Avoidance of Payments: The Guarantor shall on demand indemnify the Trustee and each Bondholder against any cost, loss, expense or liability sustained or incurred by it as a
result of it being required for any reason (including any bankruptcy, insolvency, winding-up, dissolution, or similar law of any jurisdiction) to refund all or part of any amount received or recovered by it in respect of any sum payable by the
Issuer under this Trust Deed or any Bond and shall in any event pay to it on demand the amount as refunded by it. 

  

	3.7	Debts of Issuer: If any moneys become payable by the Guarantor under this Guarantee, the Issuer will not (except in the event of the liquidation of the Issuer) so long as any
such moneys remain unpaid, pay any moneys for the time being due from the Issuer to the Guarantor. 

  

	3.8	Indemnity: As separate, independent and alternative stipulations, the Guarantor unconditionally and irrevocably agrees (1) that any sum which, although expressed to be
payable by the Issuer under this Trust Deed or the Bonds, is for any reason (whether or not now existing and whether or not now known or becoming known to the Issuer, the Guarantor, the Trustee or any Bondholder) not recoverable from the Guarantor
on the basis of a guarantee will nevertheless be recoverable from it as if it were the sole principal debtor and will be paid by it to the Trustee on demand and (2) as a primary obligation to indemnify the Trustee and each Bondholder against any
loss suffered by it as a result of any sum expressed to be payable by the Issuer under this Trust Deed or the Bonds not being paid on the date and otherwise in the manner specified in this Trust Deed or any payment obligation of the Issuer under
this Trust Deed or the Bonds being or becoming void, voidable or unenforceable for any reason (whether or not now existing and whether or not now known or becoming known to the Trustee or any Bondholder), the amount of that loss being the amount
expressed to be payable by the Issuer in respect of the relevant sum. 

  

	3.9	Subordination of the Bond Guarantee: 

  

	 	3.9.1	In the event of the winding-up of the Guarantor any amounts payable to and received by the Trustee in respect of the Bond Guarantee pursuant to the provisions of these presents
after the commencement of winding-up proceedings will be received by it on trust to apply the same: 

  

	 	(i)	first in payment or satisfaction of the costs, charges, expenses and liabilities incurred by the Trustee (including any unpaid remuneration); 

  

	 	(ii)	second in payment of claims of the Senior Creditors of the Guarantor to the extent that such claims are admitted to proof in the winding-up (not having been satisfied out of the
other resources of the Guarantor) and excluding any sum in respect of interest which is payable contingently upon the Guarantor being or being proved to be able to pay admitted claims in full; 

  

	 	(iii)	third (without prejudice to the provisions of Clause 8.2) in or towards payment pari passu and rateably of all arrears of interest remaining unpaid in respect of the Bonds
and all principal moneys due in respect of the Bonds and any interest payable pursuant to Clause 2 to the holders of the Bonds; and 

  

 13 

	 	(iv)	as to the balance (if any) to the liquidator for the time being of the Guarantor. 

  

	 	3.9.2	The trust secondly mentioned in Clause 3.9.1 may be performed by the Trustee’s paying over to such liquidator for the time being in the winding-up of the Guarantor the amounts
received by the Trustee as aforesaid (less any amounts thereof applied in the implementation of the trust first mentioned in Clause 3.9.1) on terms that such liquidator receives such amounts subject to the trusts herein contained and acknowledges
the same and shall distribute the same accordingly and the receipt of such liquidator for the same shall be a good discharge to the Trustee for the performance by it of the trust secondly mentioned in Clause 3.9.1. 

  

	 	3.9.3	The Trustee shall be entitled and it is hereby authorised to call for and to accept as conclusive evidence thereof a certificate from the liquidator for the time being of the
Guarantor as to: 

  

	 	(i)	the amount of the claims of the Senior Creditors referred to in Clause 3.9.1 (ii) (except as therein mentioned); and 

  

	 	(ii)	the persons entitled thereto and their respective entitlements. 

  
 Notwithstanding anything contained in this Clause 3.9, the trust mentioned in Clause 3.9.1(ii) shall vest absolutely in the Senior Creditors for whose
benefit such trust is to be performed not later than the date being 80 years from the date of this Trust Deed. 
  

	 	3.9.4	Nothing contained in these presents shall in any way restrict the right of the Guarantor to issue obligations or give guarantees in each case ranking in priority to or pari
passu with or junior to the obligations of the Guarantor in respect of the Guarantee and if in the opinion of the Trustee any modification to the provisions of this Clause to permit such ranking is necessary or expedient the Trustee is hereby
authorised to concur with the Guarantor in executing a supplemental deed effecting such modification. 

  

	3.10	Nothing contained in these presents shall in any way restrict the right of the Guarantor to issue or guarantee obligations ranking in priority to or pari passu with or junior
to the obligations of the Guarantor in respect of the Bonds and if in the opinion of the Trustee any modification to the provisions of this Clause to permit such ranking is necessary or expedient the Trustee is hereby authorised to concur with the
Guarantor in executing a supplemental trust deed effecting such modification. 

  

	3.11	Preference Shares: The Guarantor’s obligations in respect of the Preference Shares are set out in the Deed Poll. 

  

	4	Form of the Original Bonds; Issue of the Original Bonds 

  

	4.1	The Original Global Bonds: On issue of the Original Bonds, the relevant Original Global Bond will be issued representing the aggregate principal amount of the Original Bonds
and the Issuer (failing whom the Guarantor) shall procure that the appropriate entries be made in the register of Bondholders by the Registrar to reflect the issue of such Original Bonds. The Original Global Bonds will be issued in the name of a
common depositary for 

  

 14 

 Euroclear and Clearstream, Luxembourg or its nominee. The issue of a Global Bond in a name other than
that of the common depositary or its nominee, as the case may be, is restricted as provided in the Global Bond. The Original Bonds represented by the Original Global Bonds shall be subject to their terms in all respects and entitled to the same
benefits under this Trust Deed as individual Bonds. 
  

	4.2	Definitive Bonds: Definitive Original Bonds in registered form in authorised denominations, if issued, will be delivered upon exchange of the relevant Original Global Bond as
provided therein. Such Original Bonds may be printed or typed and need not be security printed unless otherwise required by applicable stock exchange requirements. The Bonds will not be issued in definitive bearer form. 

  

	4.3	Form: Definitive Original Bonds and each of the Original Global Bonds will be in or substantially in the respective forms set out in Schedules 1 and 3. Definitive Original
Bonds will be endorsed with the Conditions. 

  

	4.4	Signature: Each of the Original Global Bonds will be signed manually or in facsimile by one or more Authorised Signatories of the Issuer duly authorised for the purpose or
manually by any duly authorised attorney of the Issuer and in any case will be authenticated manually by or on behalf of the Registrar. Definitive Original Bonds (if issued) will be signed manually or in facsimile by one or more authorised directors
or duly authorised officers of the Issuer and in any case will be authenticated manually by or on behalf of the Registrar. The Issuer may use the manual or facsimile signature of any person who at the date of this Trust Deed is an Authorised
Signatory of the Issuer even if at the time of issue of any Original Bond (including each of the Original Global Bonds) he no longer holds such office or is so authorised. Original Bonds (including each of the Original Global Bonds) so executed and
authenticated will be binding and valid obligations of the Issuer. 

  

	5	Stamp Duties and Taxes 

  
 Except as provided in Conditions 8(b) and 9(g)(7), the Issuer (failing whom the Guarantor) will pay any stamp, issue, registration, documentary or other
similar taxes and duties, including interest and penalties, payable (i) in Belgium, Luxembourg, the United Kingdom or the Island of Jersey in respect of the creation, issue and offering of the Bonds, and the execution or delivery of this Trust Deed
(excluding, for the avoidance of doubt, any stamp or other similar duties payable as a result of any dealing in the Bonds prior to listing of such Bonds on the Official List and admission to trading on the London Stock Exchange) and (ii) in the
United Kingdom and the Island of Jersey in respect of the issue and allotment of the Preference Shares and the Ordinary Shares on conversion or on transfer of the Preference Shares to the Guarantor on exchange. The Issuer (failing whom the
Guarantor) will also indemnify the Trustee and the Bondholders from and against all stamp, issue, registration, documentary or other taxes paid by any of them in any jurisdiction in relation to which the liability to pay arises directly as a result
of any action taken by or on behalf of the Trustee or, as the case may be, (where entitled under Condition 15(e) to do so) the Bondholders to enforce the obligations of the Issuer and the Guarantor under this Trust Deed, the Calculation Agency
Agreement, the Agency Agreement, the Deed Poll or the Bonds. 
  

 15 

	6	Subordination by the Issuer 

  

	6.1	In the event of the winding-up of the Issuer any amounts payable to and received by the Trustee in respect of the Bonds pursuant to the provisions of these presents after the
commencement of winding-up proceedings will be received by it on trust to apply the same: 

  

	 	(i)	first in payment or satisfaction of the costs, charges, expenses and liabilities incurred by the Trustee (including any unpaid remuneration); 

  

	 	(ii)	second in payment of claims of all other creditors of the Issuer (except for the claims of holders of unsecured rights against the Issuer being rights which are subordinated so as
to rank either (i) pari passu with such Bonds with all of whom excepted claims such Bonds will rank pari passu or (ii) junior to such Bonds) to the extent that such claims are admitted to proof in the winding-up (not having been
satisfied out of the other resources of the Issuer) and excluding any sum in respect of interest which is payable contingently upon the Issuer being or being proved to be able to pay admitted claims in full; 

  

	 	(iii)	third (without prejudice to the provisions of Clause 8.2) in or towards payment pari passu and rateably of all arrears of interest remaining unpaid in respect of the Bonds
and all principal moneys due in respect of the Bonds; and 

  

	 	(iv)	as to the balance (if any) to the liquidator for the time being of the Issuer. 

  

	6.2	The trust secondly mentioned in Clause 6.1 may be performed by the Trustee’s paying over to such liquidator for the time being in the winding-up of the Issuer the amounts
received by the Trustee as aforesaid (less any amounts thereof applied in the implementation of the trust first mentioned in Clause 6.1) on terms that such liquidator receives such amounts subject to the trusts herein contained and acknowledges the
same and shall distribute the same accordingly and the receipt of such liquidator for the same shall be a good discharge to the Trustee for the performance by it of the trust secondly mentioned in Clause 6.1. 

  

	6.3	The Trustee shall be entitled and it is hereby authorised to call for and to accept as conclusive evidence thereof a certificate from the liquidator for the time being of the Issuer
as to: 

  

	 	(i)	the amount of the claims of the all other creditors referred to in Clause 6.1(i) (except as therein mentioned); and 

  

	 	(ii)	the persons entitled thereto and their respective entitlements. 

  
 Notwithstanding anything contained in Clause 6.1, the trust mentioned in Clause 6.1(ii) shall vest absolutely in the creditors for whose benefit such
trust is to be performed not later than the date being 80 years from the date of this Trust Deed. 
  

	6.4	Nothing contained in these presents shall in any way restrict the right of the Issuer to issue obligations or give guarantees in each case ranking in priority to or pari
passu with or junior to the obligations of the Issuer in respect of the Bonds and if in the opinion of the Trustee any modification to the provisions of this Clause to permit such ranking is necessary or expedient the Trustee is hereby
authorised to concur with the Issuer in executing a supplemental deed effecting such modification. 

  

 16 

	7	Further Issues 

  

	7.1	Liberty to Create: The Issuer may from time to time without the consent of the Bondholders create and issue Further Bonds, notes or debentures either having the same terms
and conditions in all respects as the Original Bonds (or in all respects except for the first payment of interest on them) and so that such further issue shall be consolidated and form a single series with the Original Bonds or any Further Bonds or
upon such terms as to interest, subordination, conversion, premium, redemption and otherwise as the Issuer may determine at the time of their issue. Any Further Bonds, notes or debentures forming a single series with the Original Bonds or any
Further Bonds constituted by this Trust Deed or any deed supplemental to it shall, and any Further Bonds, notes or debentures may, with the consent of the Trustee, be constituted by a deed supplemental to this Trust Deed. 

 

	7.2	Means of Constitution: Any Further Bonds created and issued pursuant to the provisions of Clause 7.1 above forming a single series with the Original Bonds or Further Bonds of
any series shall be constituted by deed supplemental to this Trust Deed, and any other Bonds of any series created and issued pursuant to the provisions of Clause 7.1 above may, with the consent of the Trustee, be so constituted. The Issuer and the
Guarantor shall prior to the issue of any Further Bonds to be so constituted execute and deliver to the Trustee a deed supplemental to this Trust Deed (if applicable duly stamped or denoted) and containing a covenant by the Issuer and the Guarantor
in the form mutatis mutandis of Clause 2 of this Trust Deed in relation to the principal amount and interest in respect of such Further Bonds and such other provisions (corresponding to any of the provisions contained in this Trust Deed) as
the Trustee shall require and (where relevant) the Guarantor shall procure that such amendments (if any) are made to the Articles of the Issuer as may be appropriate and (where relevant) the Guarantor shall execute a further deed poll in the form
mutatis mutandis of the Deed Poll. 

  

	7.3	Noting of Supplemental Deeds: A memorandum of every such supplemental deed shall be endorsed by the Trustee on this Trust Deed and by the Issuer and the Guarantor on their
respective duplicate(s) of this Trust Deed. 

  

	7.4	Notice of Further Bonds: Whenever it is proposed to create and issue any Further Bonds, the Issuer shall give to the Trustee not less than seven calendar days’ notice in
writing of its intention to do so, stating the amount of Further Bonds proposed to be created or issued. 

  

	7.5	Separate Series: Any Further Bonds not forming a single series with the Original Bonds or Further Bonds of any series shall form a separate series and accordingly, unless for
any purpose the Trustee in its absolute discretion shall otherwise determine, the provisions of Clause 7.2 and of Clauses 5 and 8 to 21 (inclusive), and Schedule 4 shall apply mutatis mutandis separately and independently to the Bonds of each
series and in such Clauses and Schedule the expressions “Bonds” and “Bondholders” shall be construed accordingly. 

  

	8	Application of Moneys received by the Trustee 

  

	8.1	Declaration of Trust: Subject to Clauses 3.9 and 6 all moneys received by the Trustee in respect of the Bonds or amounts payable under this Trust Deed will, regardless of any
appropriation of all or part of them by the Issuer or the Guarantor, as the case may be, be held by the Trustee (subject to the provisions of Clause 8.2) upon trust to apply them: 

  

	 	8.1.1	first, in payment of all costs, charges, expenses and liabilities properly incurred by the Trustee (including remuneration payable to the Trustee) in carrying out its functions
under this Trust Deed; 

  

 17 

	 	8.1.2	secondly, in payment of any amounts owing in respect of the Bonds pari passu and rateably; and 

  

	 	8.1.3	thirdly, in payment of the balance (if any) to the Issuer for itself, or if any moneys were received from the Guarantor and to the extent of such moneys to the
Guarantor. 

  
 Without prejudice to this
Clause 8.1, if the Trustee holds any moneys which represent principal or interest or other sums in respect of Bonds which have become void or in respect of which claims have become prescribed under Condition 14, the Trustee will hold such moneys
upon the above trusts. 
  

	8.2	Accumulation: If the amount of the moneys at any time available for payment in respect of the Bonds under Clause 8.1 is less than 10 per cent, of the principal amount
of the Bonds then outstanding, the Trustee may, at its discretion, invest such moneys. The Trustee may retain such investments and accumulate the resulting income until the investments and the accumulations, together with any other funds for the
time being under the control of the Trustee and available for such payment, amount to at least 10 per cent, of the principal amount of the Bonds then outstanding and then such investments, accumulations and funds (after deduction of, or provision
for, any applicable taxes) will be applied as specified in Clause 8.1. 

  

	8.3	Investment: Any moneys held 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
whether or not they produce income or placed 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, in its absolute discretion, think fit. If that bank or other
financial institution is the Trustee or an associated company of the Trustee it shall not be liable to account for interest at a rate greater than that payable by it to a standard customer on deposit of the type made. The Trustee may at any time
vary or transpose any such investments for or into other such investments or convert any moneys so deposited into any other currency, and will not be responsible for any loss occasioned thereby, whether by depreciation in value, fluctuation in
exchange rates or otherwise. 

  

	9	Covenant to Comply with Provisions 

  
 Each of the Issuer and the Guarantor hereby covenants with the Trustee that it will comply with and perform and observe all the provisions of this Trust
Deed and the Conditions which are binding on it. The Conditions shall be binding on each of the Issuer, the Guarantor, the Trustee and the Bondholders. The Trustee shall be entitled to enforce the obligations of each of the Issuer and the Guarantor
under the Bonds and the Conditions as if the same were set out and contained in this Trust Deed which shall be read and construed as one document with the Bonds. The provisions contained in Schedule 4 shall have effect in the same manner as if
herein set forth. 
  

	10	Conversion 

  

	10.1	The holder of each Original Bond will have the right (the “Conversion Right”) subject to and in accordance with the Articles of the Issuer, to convert each
U.S.$1,000 principal 

  

 18 

 amount thereof into one fully-paid Preference Share allotted at a price equal to the Paid-up Value and to
require the Issuer forthwith to procure that such Preference Share be exchanged immediately pursuant to the Articles of the Issuer, the Deed Poll and as provided in the Conditions, for Ordinary Shares, at any time (subject to any applicable fiscal
or other laws or regulations and as provided in the Conditions) from (and including) 19 August 2003 to the time specified in Condition 8(a). 
  

	10.2	The Guarantor hereby undertakes and guarantees that, in the event of the Issuer failing (i) to comply with its obligations when due and/or (ii) to enforce its rights, in either case
in respect of the Conversion Rights and Share Exchange Calls as set out in the Conditions and the Articles of the Issuer, it will procure that the Issuer complies with such obligations and/or enforces such rights. 

  

	10.3	The Guarantor hereby undertakes to and covenants with the Trustee that, so long as any of the Original Bonds remain outstanding, it will whenever the Exchange Price falls to be
adjusted pursuant to the Articles of the Issuer: 

  

	 	10.3.1	as soon as reasonably practicable deliver to the Trustee a certificate signed by two directors of the Guarantor on behalf of the Guarantor (which the Trustee shall be entitled to
accept without further enquiry as sufficient evidence of the correctness of the matters therein referred to) setting forth brief particulars of the event giving rise to the adjustment, the adjusted Exchange Price, the date on which the adjustment
takes effect and such other particulars and information as the Trustee may reasonably require; and 

  

	 	10.3.2	upon the happening of an event as a result of which the Exchange Price will be adjusted pursuant to this Trust Deed (but subject to the Articles of the Issuer) as soon as reasonably
practicable deliver to the Trustee a certificate signed by two directors of the Guarantor on behalf of the Guarantor setting forth brief particulars of the event, and the adjusted Exchange Price and the date on which such adjustment takes effect and
in any case setting forth such other particulars and information as the Trustee may reasonably require; and 

	 	10.3.3	within 14 calendar days thereafter give notice to the Bondholders in accordance with Condition 18 of the adjustment to the Exchange Price. 

  

	10.4	Simultaneously with the announcement of any event which will require the Exchange Price to be adjusted pursuant to the Articles of the Issuer, the Guarantor will give notice thereof
to the Bondholders in accordance with Condition 18 advising them of the date on which the relevant adjustment of the Exchange Price is likely to become effective. 

  

	10.5	While any Bond remains outstanding, the Issuer undertakes to the Trustee that it will procure that no alteration is made to the nominal value of the Preference Shares (whether by
consolidation, sub-division or otherwise). 

  

	11	Conversion on Redemption 

  

	11.1	Conversion by Trustee 

  

	 	11.1.1	The Trustee may (other than in circumstances where the Issuer has elected to exercises the Share Settlement Option in accordance with Condition 9), at its absolute discretion (and
without any responsibility for any loss occasioned thereby), within the period commencing on the date six calendar days immediately prior to, and ending at the close of business on the London business day 

  

 19 

 immediately prior to, the date fixed for redemption from time to time of any of the Bonds (including any
redemption pursuant to Condition 9(b)), elect by notice in writing to the Issuer to convert the aggregate principal amount of Bonds due for redemption on such date and in respect of which Conversion Rights have not been exercised and which have not
been duly presented for redemption by the holder thereof before the date of such election (“Unexercised Bonds”) into Preference Shares and to require that the Issuer procures that such Preference Shares shall be exchanged
immediately, in accordance with the Articles of the Issuer, for Ordinary Shares at the Exchange Price on the Conversion Date if all necessary consents (if any) have been obtained and the Trustee is satisfied or is advised by an independent
investment bank of international repute appointed by the Trustee that the net proceeds of an immediate sale of the Ordinary Shares arising on the exchange of such Preference Shares at the Exchange Price on the applicable Conversion Date
(disregarding any liability (other than a liability of the Trustee) to taxation or the payment of any capital, stamp, issue or registration duties consequent thereon) would be likely to exceed by five per cent, or more the aggregate amount of
redemption moneys and interest which would otherwise be payable in respect of such Unexercised Bonds. Save as provided in Condition 8(d), no interest shall accrue from the Interest Payment Date immediately preceding the Conversion Date (or if such
date falls before the first Interest Payment Date since the date hereof) in respect of such Unexercised Bonds in respect of which the Trustee’s election as aforesaid shall have been made. 
  

	 	11.1.2	Allotment of Ordinary Shares to Trustee: The Guarantor undertakes that it will allot within five London business days of the relevant Conversion Date to or to the order of
the Trustee on behalf of the holders of the Unexercised Bonds so converted as of the relevant Conversion Date the Ordinary Shares required to be allotted pursuant to Clause 11.1 and to deliver within fifteen business days of such allotment to the
Trustee or to its order certificates (if the Ordinary Shares are in certificated form) representing the same. 

  

	 	11.1.3	Sale of Ordinary Shares by Trustee: Subject to applicable law, the Trustee shall, on behalf of the holders, arrange for the sale of the Ordinary Shares issued on such
conversion of the Unexercised Bonds as soon as practicable, and (subject to any necessary consents being obtained and to the deduction by the Trustee of any amount which it determines to be payable in respect of its liability to taxation and the
payment of any capital, stamp, issue or registration duties (if any) and any costs incurred by the Trustee in connection with the allotment and sale thereof) the net proceeds of sale together with accrued interest (if any) payable under Condition
8(d) in respect of such Unexercised Bonds shall if not in U.S. dollars be converted into U.S. dollars in such manner and at such time and at such rates as the Trustee shall consider appropriate and shall be held by the Trustee and distributed
rateably to the holders of the Unexercised Bonds in accordance with Condition 10. If the date fixed for redemption in respect of such Unexercised Bonds falls during a period commencing on an Interest Payment Date and ending on the date falling seven
calendar days after such Interest Payment Date (both dates inclusive) a sum equal to the interest payable on that Interest Payment Date in respect of such Unexercised Bonds and which has been paid to the holders thereof will be deducted from the net
proceeds of sale payable to the relevant holder and shall be paid to the Issuer. The amount of such net proceeds of sale payable to a holder of Unexercised Bonds pursuant to this provision shall be treated for all purposes as the full amount due by
the Issuer in respect of the Unexercised Bonds. 

  

 20 

	11.2	Issuer Share Settlement Option 

  
 Where the Issuer elects to redeem Bonds by exercising its Share Settlement Option in the circumstances described in Condition 9(b)(i), the Issuer shall
give a Share Settlement Option Notice to the Bondholders in accordance with Condition 18 not less than thirty nor more than ninety days prior to the Redemption Date. 
  

	 	11.2.1	Non-delivery: If the Share Settlement Notice and/or relevant Bonds are not delivered to a Paying, Transfer, Conversion and Exchange Agent on or before the Notice
Cut-off Date, the relevant Redemption Settlement Shares will be delivered to the Trustee or as the Trustee may direct on such due date and the Cash Settlement Amount shall be due and payable in accordance with Condition 10.

  

	 	11.2.2	Sale of Redemption Settlement Shares by Trustee: Subject to applicable law, the Trustee shall, on behalf of the holders, arrange for the sale of the Redemption
Settlement Shares as soon as practicable, and (subject to any necessary consents being obtained and to the deduction by the Trustee of any amount which it determines to be payable in respect of its liability to taxation and the payment of any
capital, stamp, issue or registration duties (if any) and any costs incurred by the Trustee in connection with the allotment and sale thereof) the net proceeds of sale shall if not in U.S. dollars be converted into U.S. dollars in such manner and at
such time and at such rates as the Trustee shall consider appropriate and shall be held by the Trustee and distributed rateably to the holders of the Bonds in accordance with Condition 10. 

  

	 	11.2.3	Liability of Trustee: The Trustee shall have no liability in respect of the exercise or non-exercise of its discretion pursuant to this provision or the timing of such
exercise or, where relevant, in respect of any sale of Ordinary Shares or conversion of any amounts into U.S. dollars, whether for the timing of any such sale or conversion or the price at which any such Ordinary Shares are sold or the rate at which
any such amounts are converted into U.S. dollars, or the inability to sell any such Ordinary Shares or make such conversion or otherwise. 

  

	11.3	Stamp duties and taxes 

  
 If the Trustee exercises its Conversion Right under Condition 8(c), the Trustee must pay, by means of deduction from the net proceeds of sale referred to
in Condition 8(c), any taxes and capital, stamp, issue and registration duties arising on the relevant conversion (other than any taxes or capital duties or stamp duties payable in Jersey or the United Kingdom by the Issuer or the Guarantor in
respect of the allotment and issue of Ordinary Shares on conversion) and the Trustee must pay (in the case of the Trustee, by way of deduction from the net proceeds of sale as aforesaid) all, if any, taxes arising by reference to any disposal or
deemed disposal of a Bond or Preference Share in connection with such conversion. 
  

	12	Covenants relating to Conversion and other matters 

  

	12.1	Deed Poll: Whilst any Bond remains outstanding, the Guarantor will, save with the approval of an Extraordinary Resolution or the prior written approval of the Trustee where,
in the Trustee’s opinion, it is not materially prejudicial to the interests of the Bondholders to 

  

 21 

 give such approval or, in the case of an amendment to the Deed Poll, unless the modification is confirmed
by the Trustee as provided in Condition 13, perform all of its obligations under, and not make any amendment to, the Deed Poll. 
  

	12.2	Undertakings of the Guarantor: The Guarantor hereby undertakes to and covenants with the Trustee that so long as any Conversion Right remains exercisable or any Share
Exchange Call remains to be satisfied, it will, save with the approval of an Extraordinary Resolution or with the approval of the Trustee where, in the Trustee’s opinion, it is not materially prejudicial to the interests of the Bondholders to
give such approval, comply with Condition 13(b). 

  

	12.3	Undertakings of the Issuer and the Guarantor: Whilst any Bond remains outstanding, the Issuer will, and the Guarantor will procure that the Issuer will, comply with
Condition13(c) 

  

	13	Covenants 

  
 So long as any of the Bonds remains outstanding, each of the Issuer and the Guarantor covenants that it shall: 
  

	13.1	Proper conduct: at all times carry on and conduct its affairs in a proper manner; 

  

	13.2	Information: 

  

	 	(a)	so far as permitted by applicable law, give to the Trustee such information as it shall require and in such form as it shall require (including without limitation the procurement by
the Guarantor of all such certificates called for by the Trustee pursuant to Clause 10.3) 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; 

  

	 	(b)	for so long as any of the Bonds, the Bond Guarantee, Preference Shares or Ordinary Shares, are “restricted securities” within the meaning of Rule 144(a)(3) under the
Securities Act, the Guarantor will, during any period in which it is neither subject to Section 13 or 15(d) of the U.S. Securities Exchange Act of 1934, as amended, (the “Exchange Act”) nor exempt from reporting pursuant to Rule
12g3- 2(b) thereunder, provide to any holder or beneficial owner of such restricted securities or to any prospective purchaser of such restricted securities designated by such holder or beneficial owner, or to the Trustee, in the case of the Bonds,
for delivery to such holder, beneficial owner or prospective purchaser, in each case, upon request of such holder, beneficial owner or prospective purchaser, the information required to be provided by Rule 144A(d)(4) under the Securities Act;

  

	13.3	Books of Account: at all times keep and procure its Principal Subsidiaries to keep proper books of account and, at any time after the occurrence of an Event of Default or a
Potential Event of Default or if the Trustee certifies in writing to the Issuer and/or the Guarantor that it has reasonable grounds to believe that an Event of Default or a Potential Event of Default has or may have occurred and so far as permitted
by applicable law allow and procure its Principal Subsidiaries to allow the Trustee and any person appointed by the Trustee to whom the Issuer and/or the Guarantor or the relevant Principal Subsidiary (as the case may be) shall have no reasonable
objection, upon reasonable notice, free access to such books of account at all reasonable times during normal business hours 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; 

  

 22 

	13.4	Accounts: prepare and cause to be audited by the 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 UK Listing Authority; 

  

	13.5	Financial Statements etc: send to the Trustee (in addition to any copies to which it may be entitled as a holder of any securities of the Guarantor) four 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 its creditors (or any
class thereof) generally concerning the financial condition of the Guarantor and its Subsidiaries, in each case in their capacities as such, as soon as practicable after the issue or publication thereof; 

  

	13.6	Notice of Events of Default: give notice in writing to the Trustee of the occurrence of any Event of Default or any Potential Event of Default or breach of any
undertaking under Condition 13 immediately upon becoming aware of the same; 

  

	13.7	Certificate of Directors or Authorised Signatories: 

  

	 	(a)	send to the Trustee (a) within 14 calendar days after demand by the Trustee therefore and (b) (without the necessity for any such demand) promptly after the publication of its
audited accounts in respect of each financial period commencing with the financial period ending 31 March 2004 and in any event not later than 180 days after the end of each such financial period a certificate of the Guarantor or, as the case may
be, the Issuer signed by two directors of the Guarantor or, as the case may be, signed by two Authorised Signatories of the Issuer to the effect that, to the best of the knowledge, information and belief of the Guarantor or, as the case may be, the
Issuer as at a date not more than seven calendar days before delivering such certificate (the “relevant date”) there did not exist and had not existed since the relevant 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) and that during the period from and including the relevant date of the last such certificate (or in the case
of the first such certificate the date hereof) to and including the relevant date of such certificate the Guarantor or, as the case may be, the Issuer has complied with all its obligations contained in these presents or (if such is not the case)
specifying the respects in which it has not complied; 

  

	 	(b)	(1) if the Issuer shall defer any Payment under Condition 7(a) it shall deliver to the Trustee, no less than twelve London business days prior to the relevant Payment Date, a
certificate signed by two Authorised Signatories of the Issuer on behalf of the Issuer, certifying that the Deferral Event was satisfied on the sixteenth business day prior to the relevant Payment Date (2) if in the opinion of the Issuer there
exists a Market Disruption Event as a consequence of which a payment may be deferred under Condition 7(e) deliver to the Trustee within two business days of such Market Disruption Event having arisen or the Issuer having become aware of the same, a
certificate signed by two Authorised Signatories of the Issuer on behalf of the Issuer specifying details of the same; 

  

 23 

	13.8	Register: deliver or procure the delivery to the Trustee of an up to date copy of the register in respect of the Bonds, certified as being a true, accurate and complete copy,
on the date hereof and at such other items as the Trustee may require; 

  

	13.9	Agents: comply with and perform all its obligations under the Agency Agreement and the Calculation Agency Agreement and use all reasonable endeavours to procure that the
Agents comply with and perform all their respective obligations thereunder and not make any amendment or modification to the Agency Agreement and the Calculation Agency Agreement without the prior written approval of the Trustee;

  

	13.10	Payment Notification: use all reasonable endeavours to procure the Principal Paying, Transfer, Conversion and Exchange 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 Bonds or any of them, 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 Bonds as the case may be; 

  

	13.11	Change in Agents: give notice to the Bondholders in accordance with Condition 18 of any appointment, resignation or removal of any Agent after having obtained the approval of
the Trustee thereto or any change of any Agent’s specified office and (except as provided by the Agency Agreement) at least 30 days prior to such event taking effect; provided always that so long as any of the Bonds remains outstanding in the
case of the termination of the appointment of the Registrar or so long as any of the Bonds remains liable to prescription in the case of the termination of the appointment of the Principal Paying, Transfer, Conversion and Exchange Agent no such
termination shall take effect until a new Registrar, Transfer Agent or Principal Paying, Transfer, Conversion and Exchange Agent has been appointed on terms approved by the Trustee; 

  

	13.12	Notice of late payment: in the event of the unconditional payment to the Principal Paying, Transfer, Conversion and Exchange Agent of any sum due in respect of the Bonds or
any of them, being made after the due date for payment thereof forthwith give or procure to be given notice to the relevant Bondholders in accordance with Condition 18 that such payment has been made; 

  

	13.13	Listing and Trading: use all reasonable endeavours to maintain the listing of the Bonds on the official list maintained by the Financial Services Authority in its capacity as
UK Listing Authority and the trading of such Bonds on the market for listed securities of the London Stock Exchange plc or, if it is unable to do so having used all reasonable endeavours or if the maintenance of such listing or trading is in the
reasonable opinion of the Guarantor unduly onerous, use all reasonable endeavours to obtain and maintain a quotation or listing of the Bonds on such other stock exchange or exchanges or securities market or markets as the Guarantor may (with the
prior approval of the Trustee, such approval not to be unreasonably withheld or delayed) decide and shall also upon obtaining a quotation or listing of the Bonds on such other stock exchange or exchanges or securities market or markets enter into a
deed supplemental to this Trust Deed to effect such consequential amendments to these presents as the Trustee may require to comply with the requirements of any such stock exchange or securities market; 

  

	13.14	Notices to Trustee: 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 Bondholders in
accordance with Condition 18 (such approval, unless so expressed, not to constitute approval for the purposes of Section 21 of the Financial Services and Markets Act 2000 of the United Kingdom of any such notice which is an invitation or inducement
to engage in investment activity); 

  

 24 

	13.15	Early Redemption: give prior notice to the Trustee of any proposed redemption pursuant to Condition 9(b) or 9(c); 

  

	13.16	Relevant Event: give notice to the Trustee of the occurrence of a Relevant Event (as defined in the Articles of the Issuer) immediately upon becoming aware of the
same; 

  

	13.17	Subsidiaries: procure its Subsidiaries to comply with all (if any) applicable provisions concerning the purchase of Bonds of Condition 9(d); 

 

	13.18	Principal Subsidiaries: 

  

	 	(a)	give to the Trustee at the same time as sending to it the certificates referred to in Clause 13.7 above and in any event not later than 180 days after the last day of each financial
period of the Guarantor, a report by two directors of the Guarantor listing those Subsidiaries of the Guarantor which as at such last day were Principal Subsidiaries; and 

  

	 	(b)	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 Principal Subsidiary of the Guarantor
or after any transfer is made to any Subsidiary of the Guarantor which thereby becomes a Principal Subsidiary, a report by two directors of the Guarantor to such effect; 

  

	13.19	Bonds held by the Issuer, Guarantor, etc.: in order to enable the Trustee to ascertain the amount of Bonds for the time being outstanding for any of the purposes
referred to in the proviso to the definition of “outstanding” contained in Clause 1, deliver to the Trustee forthwith upon being so requested by the Trustee a certificate of the Issuer or, as the case may be, the Guarantor signed by two
Authorised Signatories of the Issuer or, as the case may be, signed by two directors of the Guarantor stating the number of Bonds held at the date of such certificate by or on behalf of the Issuer, or as the case may be, the Guarantor or their
respective Subsidiaries or any holding company of the Issuer or the Guarantor (within the meaning of Section 736 of the Companies Act 1985); 

  

	13.20	Approval of Trustee: obtain the prior written approval of the Trustee whenever so required under the Articles of the Issuer and not undertake any course of action under the
Articles of the Issuer without such prior written approval; and 

  

	13.21	Further acts: so far as permitted by applicable law, 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 having regard to the interests of Bondholders to give effect to this Trust Deed. 

  

	14	Remuneration and Indemnification of the Trustee 

  

	14.1	Normal Remuneration: So long as any Bond is outstanding, the Issuer, failing whom the Guarantor, will pay to the Trustee by way of remuneration for its services as Trustee
such sum as may from time to time be agreed between them. Such remuneration will accrue from day to day from the date of this Trust Deed and shall be payable on such dates as may be agreed between the Issuer, the Guarantor and the Trustee. However,
if any payment to a Bondholder of the moneys due in respect of any Bond is improperly withheld or refused, such remuneration will continue to accrue as from the date of such withholding or refusal until payment to such Bondholder is duly made.

  

 25 

	14.2	Extra Remuneration: At any time after the occurrence of an Event of Default or a Potential Event of Default or if the Trustee finds it expedient in the interests of
Bondholders or necessary, or is requested by the Issuer, to undertake duties which the Trustee and the Issuer agree to be of an exceptional nature or otherwise outside the scope of the normal duties of the Trustee under this Trust Deed, the Issuer,
failing whom the Guarantor, will pay such additional remuneration as may be agreed between them or, failing agreement as to any of the matters in this Clause (or as to such sums referred to in Clause 14.1), as determined by an investment bank of
international repute in London (acting as an expert) selected by the Trustee and approved by the Issuer or, failing such approval, nominated by the President for the time being of The Law Society of England and Wales, the expenses involved in such
selection and approval and the fee of such investment bank being borne by the Issuer. The determination of such investment bank will, in the absence of manifest error, be conclusive and binding on the Issuer, the Guarantor, the Trustee and the
Bondholders. 

  

	14.3	Expenses: The Issuer or, failing whom, the Guarantor will also pay or discharge all costs, charges, liabilities and expenses properly incurred by the Trustee in relation to
the preparation and execution of this Trust Deed and the carrying out of its functions under this Trust Deed including, but not limited to, legal and travelling expenses and any capital, stamp, registration, documentary or other taxes or duties
properly paid by the Trustee in connection with any legal proceedings brought by the Trustee against the Issuer or the Guarantor for enforcing any obligation under this Trust Deed, the Articles of the Issuer, the Paying, Transfer, Conversion and
Exchange Agency Agreement, the Deed Poll or the Bonds. 

  

	14.4	Payment of Expenses: All such costs, charges, liabilities and expenses properly incurred and payments properly made by the Trustee will be payable or reimbursable by the
Issuer, failing whom the Guarantor, within 14 calendar days of demand by the Trustee and: 

  

	 	14.4.1	in the case of payments made by the Trustee prior to such demand will (if not paid within 14 calendar days of such demand) carry interest from the date on which the demand is
made at the rate of two per cent, per annum over the base rate of National Westminster Bank plc on the date on which such payments were made by the Trustee; and 

  

	 	14.4.2	in all other cases will carry interest at such rate from 30 days after the date on which the demand is made or (where the demand properly specifies that payment is to be made
on an earlier date) from such earlier date. 

  

	14.5	Indemnity and Associated Costs: 

  

	 	14.5.1	The Issuer and the Guarantor will, jointly and severally, indemnify the Trustee in respect of all liabilities and expenses properly incurred by it in the fulfilment of its
obligations under this Trust Deed or by anyone appointed by it or to whom any of its functions may be delegated by it in the carrying out of its functions in the fulfilment of its obligations under this Trust Deed and against any loss, liability,
cost, claim, action, demand or expense (including, but not limited to, all costs, charges and expenses paid or incurred in disputing or defending any of the foregoing) which any of them may incur or which may be made against any of them arising out
of or in relation to or in connection with, its appointment or the exercise of its functions. 

  

 26 

	14.5.2	Where the Issuer is required to satisfy any payment in accordance with Condition 6, (i) if following the operation of Clauses 2.6 or 2.7 the net proceeds of sale of
Associated Cost Ordinary Shares are less than the Associated Costs the Issuer shall pay the amount of such shortfall to the Trustee as soon as practicable following the completion of the operation of Clauses 2.6 or 2.7, as applicable and until such
payment is made by the Issuer, the Trustee shall not be obliged to pay Associated Costs to the extent of such shortfall, and (ii) if the Trustee or its agent would be liable to pay any duties, then the Issuer shall pay in cleared funds an amount
equal to such liability to or to the order of the Trustee on or before the date on which such liability arises. For the avoidance of doubt, where the Trustee or its agent has made a payment in respect of Associated Costs or any duties prior to
receiving any such payment from the Issuer Clause 14.5.1 shall apply to such payments on the basis that payments made hereunder were made without demand by the Trustee on the Issuer. 

  

	14.6	Provisions Continuing: The provisions of Clauses 14.3, 14.4 and 14.5 will continue in full force and effect in relation to the Trustee even if it may have ceased to be
Trustee. 

  

	14.7	Liability of Trustee: The Trustee shall have no liability in respect of the exercise or non-exercise of any discretion pursuant to Condition 9(g)(iii)(4) above in respect of
any sale of Redemption Settlement Shares or conversion of any amounts into U.S. dollars, whether for the timing of any such sale or conversion or the price at which any such Redemption Settlement Shares are sold or the rate at which any such amounts
are converted into U.S. dollars, or the inability to sell any such Redemption Settlement Shares or make such conversion or otherwise. 

  

	15	Provisions Supplemental to the Trustee Act 1925 and the Trustee Act 2000 

  
 By way of supplement to the Trustee Act 1925 and the Trustee Act 2000 it is expressly declared as follows: 
  

	15.1	Advice: The Trustee may act on the opinion or advice of, or information obtained from, any expert or a certificate or report of the Auditors in each case whether or not
addressed to the Trustee and will not be responsible to anyone for any loss occasioned by so acting. Any such opinion, advice certificate, report or information may be sent or obtained by letter, telex or facsimile transmission and the Trustee will
not be liable to anyone for acting in good faith on any opinion, advice certificate, report or information purporting to be conveyed by such means even if it contains some error or is not authentic. 

  

	15.2	Trustee to Assume Due Performance: The Trustee need not notify anyone of the execution of this Trust Deed or do anything to ascertain whether any Event of Default or
Potential Event of Default or Relevant Event has occurred and, until it has actual knowledge or express notice to the contrary, the Trustee may assume that no such event has occurred and that the Issuer and the Guarantor are performing all their
obligations under this Trust Deed, the Deed Poll, the Articles of the Issuer and the Bonds. 

  

	15.3	Resolutions of Bondholders: The Trustee will not be responsible for having acted in good faith upon a resolution purporting to have been passed at a meeting of Bondholders in
respect of which minutes have been made and signed even though it may later be found that there was a defect in the constitution of such meeting or the passing of such resolution or that such resolution was not valid or binding upon the Bondholders.

  

 27 

	15.4	Certificate Signed by Directors or Authorised Signatories: The Trustee may call for and may accept as sufficient evidence of any fact or matter or of the expediency of
any act a certificate of the Issuer or the Guarantor signed by any two Authorised Signatories of the Issuer or two directors of the Guarantor on behalf of the Issuer or the Guarantor as to any fact or matter upon which the Trustee may, in the
exercise of any of its functions, require to be satisfied or to have information to the effect that, in the opinion of the person or persons so certifying, any particular act is expedient and the Trustee need not call for further evidence and will
not be responsible for any loss that may be occasioned by acting on any such certificate. 

  

	15.5	Deposit of Documents: The Trustee may appoint as custodian, on any terms, any bank or entity whose business includes the safe custody of documents or any lawyer or
firm of lawyers believed by it to be of good repute and may deposit this Trust Deed and any other documents with such custodian and pay all sums due in respect thereof, provided that, unless in the opinion of the Trustee it is required in connection
with the enforcement of any obligation of the Issuer or the Guarantor under this Trust Deed, the Paying, Transfer, Conversion and Exchange Agency Agreement or the Bonds or otherwise in connection with the performance of the duties of the Trustee
hereunder or thereunder or unless it comprises the holding or placing of such documents in the United Kingdom, the Trustee may not take any such action if a liability to stamp duty or other duties or taxes would thereby arise. The Trustee is not
obliged to appoint a custodian of securities payable to bearer. 

  

	15.6	Nominees: in relation to any asset held by it under this Trust Deed, the Trustee may appoint any person to act as nominee on any terms. 

  

	15.7	Discretion of Trustee: Save as expressly provided in this Trust Deed, the Trustee will have absolute and uncontrolled discretion as to the exercise of its functions
and will not be responsible for any loss, liability, cost, claim, action, demand, expenses or inconvenience which may result from their exercise or non-exercise. 

  

	15.8	Agents: Whenever it considers it expedient in the interests of the Bondholders and after (if practicable) consultation with the Issuer and the Guarantor, the Trustee may, in
the conduct of its trust business, instead of acting personally, employ and pay an agent selected by it, whether or not a lawyer or other professional person, to transact or conduct, or concur in transacting or conducting, any business and to do or
concur in doing all acts required to be done by the Trustee (including the receipt and payment of money). 

  

	15.9	Delegation: Whenever it considers it expedient in the interests of the Bondholders and after (if practicable) consultation with the Issuer and the Guarantor, the Trustee may
delegate to any person and on any terms (including power to sub-delegate) all or any of its functions provided that the Trustee may not delegate the right to determine whether an Event of Default or Potential Event of Default has occurred unless
prior to such delegation the Trustee provides to the Issuer and the Guarantor confirmation in writing that the Trustee has been advised by its legal advisers that it should delegate that right (with or without any other rights, trusts, powers,
authorities and discretions) to another person or fluctuating body of persons because of a conflict of interest or possible conflict of interest and/or other similar circumstances which the Trustee might face, or be subjected to, as the trustee of
this Trust Deed if it were not to delegate that right. 

  

 28 

	15.10	Forged Bonds: The Trustee will not be liable to the Issuer, the Guarantor or any Bondholder by reason of having accepted as valid or not having rejected any Bond purporting
to be such and later found to be forged or not authentic. 

  

	15.11	Confidentiality: Unless ordered to do so by a court of competent jurisdiction, the Trustee shall not be required to disclose to any Bondholder any confidential, financial or
other information made available to the Trustee by the Issuer or the Guarantor and no Bondholder shall be entitled to take any action to obtain from the Trustee any such information. 

  

	15.12	Determinations Conclusive: As between itself and the Bondholders, the Trustee may determine all questions and doubts arising in relation to any of the provisions of this
Trust Deed. Every such determination, whether made upon such a question actually raised or implied in the acts or proceedings of the Trustee, will be conclusive in the absence of manifest error and shall bind the Trustee and the Bondholders.

  

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

  

	15.14	Events of Default: The Trustee may determine whether or not a default in the performance or observance by the Issuer or the Guarantor of any obligation is in its opinion
capable of remedy and/or whether or not any event is in its opinion materially prejudicial to the interests of the Bondholders. Any such determination will be conclusive and binding upon the Issuer, the Guarantor and the Bondholders.

  

	15.15	Payment for and Delivery of Bonds: The Trustee will not be responsible for the receipt or application by the Issuer of the proceeds of the issue of the Bonds, the exchange of
the Global Bonds for definitive Bonds or the delivery of definitive registered Bonds to the persons entitled to them. 

  

	15.16	Bonds held by the Guarantor, etc.: In the absence of knowledge or express notice to the contrary, the Trustee may assume without enquiry (other than requesting a certificate
of the Issuer or the Guarantor) that no Bonds are for the time being held by or on behalf of any of the Issuer, the Guarantor or any other of their Subsidiaries or any holding company of the Issuer or the Guarantor (within the meaning of Section 736
of the Companies Act 1985). 

  

	15.17	Interests of Bondholders: In connection with the exercise of its powers, trusts, authorities or discretions (including, but not limited to, those in relation to any proposed
modification, waiver or authorisation of any breach or proposed breach of any of the Conditions or any of the provisions of this Trust Deed or the Deed Poll or any proposed substitution in accordance with Clause 19.2 or any determination made
pursuant to Clause 17.1), the Trustee shall have regard to the interests of the Bondholders as a class and in particular, but without prejudice to the generality of the foregoing, shall not have regard to the consequences of such exercise for
individual Bondholders 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 otherwise to the tax consequences thereof and the Trustee shall
not be entitled to require, nor shall any Bondholder be entitled to claim from the Issuer, the Guarantor or the Trustee, any indemnification or payment of any tax arising in consequence of any such exercise upon individual Bondholders.

  

 29 

	15.18	No Responsibility for Ordinary Share Value: The Trustee shall not at any time be under any duty or responsibility to any Bondholder to determine whether any facts
exist which may require any adjustment of the Exchange Price or with respect to the nature or extent of any such adjustment when made, or with respect to the method employed, or in this Trust Deed or the Articles of the Issuer provided to be
employed, in making the same. The Trustee shall not at any time be under any duty or responsibility in respect of the validity or value (or the kind or amount) of Preference Shares or Ordinary Shares or of any other securities, property or cash,
which may at any time be made available or delivered upon the conversion of any Bond; and it makes no representation with respect thereto. The Trustee shall not be responsible for any failure of the Issuer or the Guarantor to make available or
deliver any Preference Shares or Ordinary Shares or share certificates or other securities or property or make any payment upon the exercise of the Conversion and Exchange Right in respect of any Bond or of the Issuer or the Guarantor to comply with
any of the covenants contained in this Trust Deed and the Deed Poll. 

  

	15.19	Enforcement of Rights: The Trustee need not take any such action or proceedings as referred to in Condition 20 unless (a) it shall have been so directed by an
Extraordinary Resolution or so requested in writing by Bondholders holding at least one quarter in principal amount of the Bonds then outstanding and (b) it shall have been indemnified to its satisfaction. 

  

	15.20	Breach of Undertakings: The Trustee assumes no responsibility for ascertaining whether or not (i) a breach of any of the undertakings in Condition 13 shall have
occurred or (ii) any such breach shall have been rectified pursuant to the Articles of the issuer or (iii) (in each such case) any adjustment falls to be made to be made to the Exchange Price as a result thereof. Unless and until the Trustee has
actual knowledge of any of the above events it shall be entitled to assume that no such event has occurred. The Trustee shall not be liable for any loss arising from any determination or calculation made pursuant to the Articles of the Issuer or
from any failure or delay in making any such determination or calculation. 

  

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

  

	15.22	Incurrence of Financial Liability: Nothing contained in this Trust Deed shall require the Trustee to expend or risk its own funds or otherwise incur any financial
liability in the performance of its duties or the exercise of any power, rights, authority or discretion hereunder if it has grounds for believing the repayment of the funds or adequate indemnity against such risk or liability is not reasonably
assured to it. 

  

	15.23	Independent Investment Bank: The Trustee has no responsibility for the accuracy or otherwise of any determination made by an investment bank pursuant to the Articles
of the Issuer. 

  

	15.24	Not Trustee for Preference Shareholders: The Trustee acts as trustee only for Bondholders and has no duties to holders of Preference Shares.

  
  

 30 

	15.25	Auditor’s certificates and reports: Any certificate or report of the Auditors (whether or not addressed to the Trustee), an investment bank, a bank or any other
expert called for by, or provided to, the Trustee in accordance with, or for the purposes of, this Trust Deed may be relied upon by the Trustee as sufficient evidence of the facts stated therein notwithstanding that such certificate or report and/or
engagement letter or other document in connection therewith contains a monetary or other limit on the liability of the Auditors, an investment bank, a bank or any other expert in respect thereof. 

  

	15.26	Sale of Shares: The Trustee shall have no liability to Bondholders if the proceeds of sale of the Payment Ordinary Shares or other Ordinary Shares are insufficient to
satisfy the relevant Payment in full whether by virtue of a fall in value of the Payment Ordinary Shares or other such Ordinary Shares, the Calculation Agent being unable to sell such Payment Ordinary Shares or other Ordinary Shares, the Trustee
being liable to tax in respect of receiving, holding or selling the same or otherwise. 

  

	16	Trustee liable for negligence 

  
 Section 1 of the Trustee Act 2000 shall not apply to any action of the Trustee provided that nothing in this Trust Deed 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 this Trust Deed relieve or indemnify it from or against any liability which by virtue of any rule of law would otherwise attach
to it in respect of any negligence, default, breach of duty or breach of trust of which it or its officers and employees may be guilty. 
  

	17	Waiver and Proof of Default 

  

	17.1	Waiver: The Trustee may, without the consent of the Bondholders and without prejudice to its rights in respect of any subsequent breach, from time to time and at any
time, if in its opinion the interests of the Bondholders will not be materially prejudiced thereby, on such terms and conditions as seem expedient to it, waive or authorise, any breach or proposed breach by the Issuer or the Guarantor of any of the
provisions of this Trust Deed, the Bonds, the Deed Poll or the Articles of the Issuer or determine that any Event of Default or Potential Event of Default will not be treated as such provided that the Trustee will not do so in contravention of any
express direction given by an Extraordinary Resolution but no such direction will affect any previous waiver, authorisation or determination. Any such waiver, authorisation or determination will be binding on the Bondholders and, if the Trustee so
requires, will be notified to the Bondholders as soon as practicable. 

  

	17.2	Proof of Default: If it is proved that as regards any specified Bond the Issuer or the Guarantor has made default in paying any sum due to the relevant Bondholder such
proof will (unless the contrary be proved) be sufficient evidence that the same default has been made as regards all other Bonds which are then payable. 

  

	18	Trustee not precluded from entering into Contracts 

  
 Neither the Trustee nor any director or officer of a corporation acting as a Trustee, whether acting for itself or in any other capacity, will be
precluded from becoming the owner of, or acquiring any interest in, or holding, or disposing of, any Bond or any Preference Shares or Ordinary Shares or securities of the Issuer or the Guarantor or any of their respective subsidiary, holding or
associated companies with the same rights as it would have had if the Trustee were not the Trustee or from entering into or being interested in any contracts 
  

 31 

 or transactions with the Issuer or the Guarantor or any of their respective subsidiary, holding or
associated companies or from acting on, or as depositary or agent for, any committee or body of holders of any securities of the Issuer or the Guarantor or any of their respective subsidiary, holding or associated companies and will not be liable to
account for any profit. 
  

	19	Modification and Substitution 

  

	19.1	Modification: The Trustee may agree, without the consent of the Bondholders, to (i) any modification to the Conditions or the provisions of this Trust Deed, the Deed Poll or
the Articles of the Issuer (in the case of the Articles of the Issuer which would vary, abrogate or modify the rights appertaining to the Preference Shares) which in its opinion is of a formal, minor or technical nature or which is made to correct a
manifest or proven error, or (ii) any other modification to the Conditions or the provisions of this Trust Deed and the Bonds or the Articles of the Issuer that relate to the rights appertaining to the Preference Shares which is in its opinion not
materially prejudicial to the interests of the Bondholders. For the avoidance of doubt the consent of the Trustee is not required for an alteration or modification of the Articles of the Issuer in respect of the rights appertaining to the Nominal
Shares, provided that any such alteration or modification does not, or does not have the effect of varying, abrogating or modifying the rights appertaining to the Preference Shares. 

  

	19.2	Substitution of the Issuer: 

  

	 	19.2.1	The Trustee (if it is satisfied that to do so would not be materially prejudicial to the interests of Bondholders) may agree, if requested by the Issuer and subject to such
amendment of the Trust Deed and the Deed Poll and such other conditions as the Trustee may require and without the consent of the Bondholders, to the substitution of any other company (the “Substituted Obligor”) in place of the
Issuer (or of any previous substitute under this Clause) as the principal debtor under this Trust Deed and the Bonds and as a party to the Agency Agreement, subject to the Bonds remaining unconditionally and irrevocably guaranteed by the Guarantor
as provided in the Conditions and this Trust Deed and being convertible mutatis mutandis as provided in the Conditions for preference shares in the Substituted Obligor with substantially similar rights to the Preference Shares and to such
preference shares being immediately exchangeable for Ordinary Shares mutatis mutandis as provided in the Articles of the Issuer and to the obligations of the Guarantor under the Deed Poll applying mutatis mutandis to such Preference
Shares provided that: 

  

	 	(i)	a deed is executed or undertaking given by the Substituted Obligor to the Trustee, in form and manner satisfactory to the Trustee, agreeing to be bound by this Trust Deed and the
Bonds (with consequential amendments as the Trustee may deem appropriate) as if the Substituted Obligor had been named in this Trust Deed and the Bonds as the principal debtor in place of the Issuer (or, as the case may be, of any previous
substitute under this Clause 19.2); 

  

	 	(ii)	the Substituted Obligor creates preference shares and adopts articles of association substantially similar to the terms of the Preference Shares and the Articles of the Issuer in so
far as the same relates to the rights of such preference shares; 

  

 32 

	 	(iii)	an unconditional and irrevocable guarantee is given by the Guarantor on a subordinated basis on the basis as set out in Clause 3 and Condition 2 to the Trustee of the payment of all
monies payable by the Substituted Obligor as such principal debtor and of the performance by the Substituted Obligor under its articles of association in relation to Preference Shares created; 

  

	 	(iv)	if any two directors of the Substituted Obligor certify that it will be solvent immediately after such substitution, the Trustee need not have regard to the Substituted
Obligor’s financial condition, profits or prospects or compare them with those of the issuer; 

  

	 	(v)	the Issuer, the Guarantor and the Substituted Obligor comply with such other requirements as the Trustee may direct in the interests of the Bondholders; and

  

	 	(vi)	the Trustee may in the event of such substitution agree to a change of law governing this Trust Deed and/or the Bonds and/or the Deed Poll or the Agency Agreement.

  

	 	19.2.2	Release of Issuer and Substitute Obligor: Any such agreement by the Trustee pursuant to this Clause 19.2 will, if so expressed, operate to release the Issuer (or any such
previous substitute) from any or all of its obligations under this Trust Deed and the Bonds. Not later than 14 calendar days after the execution of any such documents and after compliance with such requirements, notice of the substitution will be
given to the Bondholders. 

  

	 	19.2.3	Completion of Substitution: Upon the execution of such documents and compliance with such requirements, the Substituted Obligor will be deemed to be named in this Trust Deed
and the Bonds as the principal debtor in place of the Issuer (or of any previous substitute under Clause 19.2) and this Trust Deed and the Bonds will be deemed to be modified in such manner as shall be necessary to give effect to the substitution.

  

	20	Appointment, Retirement and Removal of the Trustee 

  

	20.1	Appointment: The Issuer will have the power of appointing new trustees but no person will be so appointed unless previously approved by an Extraordinary Resolution of
Bondholders. A trust corporation will at all times be a Trustee and may be the sole Trustee. Any appointment of a new Trustee will be notified by the Issuer to the Bondholders as soon as practicable. 

  

	20.2	Retirement and Removal: Any Trustee may retire at any time on giving not less than three months’ notice in writing to the Issuer and the Guarantor without giving any
reason and without being responsible for any costs occasioned by such retirement and the Bondholders may by Extraordinary Resolution remove any Trustee provided that the retirement or removal of any sole trustee or sole trust corporation will not
become effective until a trust corporation is appointed as successor Trustee. If a sole trustee or sole trust corporation gives notice of retirement or an Extraordinary Resolution is passed for its removal under this Clause, the Issuer will use all
reasonable endeavours to procure that another trust corporation be appointed as Trustee, but if the Issuer has failed to do so within two months of such notice being given or since the date of such Extraordinary Resolution, the Trustee may exercise
the power of appointing a successor trustee. 

  

 33 

	20.3	Co-Trustees: The Trustee may, despite Clause 20.1, by notice in writing to the Issuer and the Guarantor appoint anyone to act as an additional Trustee jointly with the
Trustee: 

  

	 	20.3.1	if the Trustee considers such appointment to be in the interests of the Bondholders; 

  

	 	20.3.2	for the purpose of conforming with any legal requirement, restriction or condition in any jurisdiction in which any particular act is to be performed; or 

 

	 	20.3.3	for the purpose of obtaining a judgment in any jurisdiction or the enforcement in any jurisdiction against the Issuer or the Guarantor of either a judgment already obtained or any
of the provisions of this Trust Deed. 

  
 Subject
to the provisions of this Trust Deed the Trustee may confer on any person so appointed such functions as it thinks fit. The Trustee may by notice in writing to the Issuer, the Guarantor and such person remove any person so appointed. At the request
of the Trustee, the Issuer and the Guarantor will do all things as may be required to perfect such appointment or removal and it irrevocably appoints the Trustee to be its attorney in its name and on its behalf to do so. 
  

	20.4	Competence of a Majority of Trustees: If there are more than two Trustees the majority of such Trustees will (provided such majority includes a trust corporation) be
competent to carry out all or any of the Trustee’s functions. 

  

	21	Communications 

  
 Any communication shall be by letter delivered personally or facsimile transmission: 
  
 in the case of the Issuer, to it at: 
  
 22 Grenville Street 
 St Helier 
 Jersey JE4 8PX 
 Channel Islands 
  

			
	Fax no.:	  	 (44) 01534 609 333

	Attention:	  	 Dean Godwin

  
 in the case of the
Guarantor, to it at: 
  
 1 Atlantic Quay 
 Robertson Street 
 Glasgow G2 8SP 

United Kingdom 
  

			
	Fax no.:	  	 (44) 0141 566 4742

	Attention:	  	 Adrian Coats

  
 and in the case of
the Trustee, to it at: 
  
 Fifth Floor 
 100 Wood Street 
 London EC2V 7EX 

 

			
	Fax no.:	  	 (44) 020 7696 5261

	Attention:	  	 The Manager, Trust Management

  
 Any such
communication will take effect, in the case of delivery, at the time of delivery or, in the case of facsimile transmission, at the time of despatch. 
  

 34 

	22	Purchase or Redemption by the Guarantor of its own Shares 

  
 The Guarantor may exercise such rights as it may from time to time enjoy to purchase or redeem its own shares (including Ordinary Shares) without the
consent of the Bondholders. 
  

	23	Governing Law and Jurisdiction 

  

	23.1	Governing Law: This Trust Deed shall be governed by and construed in accordance with English law. 

  

	23.2	Jurisdiction: The Courts of England are to have jurisdiction to settle any disputes that may arise out of or in connection with this Trust Deed, the Bonds and accordingly any
legal action or proceedings arising out of or in connection with this Trust Deed or the Bonds (“Proceedings”) may be brought in such courts. Each of the Issuer and the Guarantor irrevocably submits to the jurisdiction of such courts
and waives any objections to Proceedings in such courts on the ground of venue or on the ground that the Proceedings have been brought in an inconvenient forum. This submission is for the benefit of each of the Trustee and the Bondholders and shall
not limit the right of any of them to take Proceedings in any other court of competent jurisdiction nor shall the taking of Proceedings in any one or more jurisdictions preclude the taking of Proceedings in any other jurisdiction (whether
concurrently or not). 

  

	23.3	Service of Process: Each of the Issuer and the Guarantor irrevocably appoints the Guarantor’s London office currently at 5th Floor, 30 Cannon Street, London EC4M 6XH to
act as its agent in England to receive, for it and on its behalf, service of process in any Proceedings in England. Such service shall be deemed completed on delivery to such process agent (whether or not it is forwarded to and received by the
Issuer). If for any reason such process agent ceases to be able to act as such or no longer has an address in England the Issuer irrevocably agrees to appoint a substitute process agent acceptable to the Trustee and shall immediately notify the
Trustee of such appointment. Nothing shall affect the right to serve process in any other manner permitted by law. 

  

	24	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 part to this Trust Deed or any Trust Deed supplemental hereto may enter into the same by executing and delivering a counterpart. 
  

	25	Contracts (Rights of Third Parties) Act 1999 

  
 A person who is not a party to this Trust Deed has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Trust Deed,
other than Clause 13.2(b) hereof. 
  
 In witness whereof this Trust Deed
has been executed as a deed on the date stated at the beginning 
  

 35 

 SCHEDULE 1 
  
 Form of Definitive Registered Bonds 
  
 On the front: 
  
 ISIN: [XS0171196727]1
[XS0171162075]2 
  
 [THIS BOND, THE GUARANTEE IN RESPECT HEREOF, AND THE ORDINARY SHARES TO BE ISSUED UPON EXCHANGE OF THE PREFERENCE SHARES ON CONVERSION OF THE BONDS HAVE NOT BEEN AND WILL
NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR ANY OTHER JURISDICTION OF THE UNITED STATES AND MAY NOT BE OFFERED, SOLD, PLEDGED
OR OTHERWISE TRANSFERRED EXCEPT (1) IN ACCORDANCE WITH RULE 144A UNDER THE SECURITIES ACT TO A PERSON THAT THE HOLDER AND ANY PERSON ACTING ON ITS BEHALF REASONABLY BELIEVE IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, (2) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, OR (3) PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OR ANY OTHER JURISDICTION OF THE UNITED STATES. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER WILL BE
REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THIS BOND OR THE PREFERENCE SHARES ISSUED UPON CONVERSION OF THE BONDS OR THE ORDINARY SHARES FOR WHICH THE PREFERENCE SHARES ARE EXCHANGEABLE OF THE RESALE RESTRICTIONS REFERRED TO ABOVE. NO
REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT FOR RESALES OF THIS BOND, THE GUARANTEE OR THE PREFERENCE SHARES ISSUED UPON CONVERSION OF THE BONDS OR THE ORDINARY SHARES FOR WHICH
THE PREFERENCE SHARES ARE EXCHANGEABLE. 
  
 THE ORDINARY SHARES ISSUED ON EXCHANGE
OF THE PREFERENCE SHARES INTO WHICH THIS BOND IS CONVERTIBLE MAY NOT BE DEPOSITED INTO ANY UNRESTRICTED DEPOSITARY FACILITY ESTABLISHED OR MAINTAINED BY A DEPOSITARY BANK, UNLESS AND UNTIL THE TIME AS SUCH ORDINARY SHARES ARE NO LONGER
“RESTRICTED SECURITIES” WITHIN THE MEANING OF RULE 144(A)(3) UNDER THE SECURITIES ACT.]3 
  
 [THIS BOND, THE GUARANTEE IN RESPECT HEREOF, AND THE ORDINARY SHARES TO BE ISSUED UPON THE
EXCHANGE OF THE PREFERENCE SHARES ON CONVERSION OF THE BONDS HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR ANY
OTHER JURISDICTION OF THE UNITED STATES, AND PRIOR TO THE EXPIRATION OF 40 DAYS AFTER THE LATER OF THE COMMENCEMENT OF THE OFFERING OF BONDS AND THE CLOSING DATE (THE “DISTRIBUTION COMPLIANCE PERIOD”), SUCH BONDS MAY NOT BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) IN ACCORDANCE WITH RULE 144A UNDER THE SECURITIES ACT TO A PERSON THAT THE HOLDER AND ANY PERSON ACTING ON ITS BEHALF REASONABLY BELIEVE IS A QUALIFIED INSTITUTIONAL BUYER 

	1	Include for Rule 144A Registered Bond. 

	2	Include for Regulation S Registered Bond. 

  

 36 

 WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER OR
(2) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OR ANY OTHER JURISDICTION OF THE UNITED STATES.]4 
  

							
	 Denomination

	 	 ISIN

	 	 Series

	 	 Certif No

	 U.S.$1,000
	 	 Reg. S XS0171162075
	 	 [             ]
	 	 [             ]

	 	 	 Rule 144A XS0171196727
	 	 	 	 

  

 37 

 SCOTTISH POWER FINANCE (JERSEY) LIMITED 
  
 (incorporated with limited liability in Jersey with registered number
85627) 
  
 U.S.$700,000,000 4.00 per cent Step-Up Perpetual
Subordinated Guaranteed Convertible 
  
 Bonds

  
 guaranteed by 
  
 SCOTTISH POWER PLC 
  
 (incorporated with limited liability in Scotland with registered number
193794) 
  
 and convertible into 4.00 per cent.
Exchangeable Redeemable Preference Shares in the 
 Scottish Power Finance (Jersey) Limited which will be exchanged immediately

  
 for Ordinary Shares in 
  
 SCOTTISH POWER PLC 
  
 The Bonds represented by this certificate form part of a series designated as specified in
the title (the “Bonds”) of Scottish Power Finance (Jersey) Limited (the “Issuer”). The Bonds are constituted by a trust deed dated 10 July 2003 (the “Trust Deed”) between the Issuer, Scottish Power
plc (the “Guarantor”) and The Law Debenture Trust Corporation p.l.c. as Trustee (the “Trustee”). The Bonds are subject to, and have the benefit of, that Trust Deed and the terms and conditions (the
“Conditions”) endorsed hereon. Terms defined in the Trust Deed have the same meanings when used herein. 
  
 The Issuer hereby certifies that [l] of [l] is, at the date hereof, entered in the register of Bondholders as the holder of Bonds in the principal amount of U.S.$[l] ([l] United States dollars). For value received, the Issuer
promises to pay the person who appears at the relevant time on the register of Bondholders as holder of the Bonds in respect of which this Bond is issued such amount or amounts as shall become due and payable from time to time in respect of such
Bonds and otherwise to comply with the Conditions. 
  
 The statements set forth in
the legends above are an integral part of the Bonds in respect of which this Bond is issued and by acceptance hereof each holder of such Bonds agrees to be subject to and bound by the terms and provisions set forth in such legend. 
  
 [For so long as any of the Bonds, the Guarantee, Preference Shares or Ordinary Shares, are
“restricted securities” within the meaning of Rule 144(a)(3) under the U.S. Securities Act of 1933, as amended (the “Securities Act”), the Guarantor will, during any period in which it is neither subject to Section 13 or
15(d) of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”) nor exempt from reporting pursuant to Rule 12g3-2(b) thereunder, provide to any holder or beneficial owner of such restricted securities or to any
prospective purchaser of such restricted securities designated by such holder or beneficial owner, or to the Trustee, in the case of the Bonds, for delivery to such holder, beneficial owner or prospective purchaser, in each case, upon request of
such holder, beneficial owner or prospective purchaser, the information required to be provided by Rule 144A(d)(4) under the Securities Act.]1 
  
 The Bonds represented by this certificate are
convertible into 4.00 per cent Exchangeable Redeemable Preference Shares in the Issuer which are exchangeable immediately for fully-paid Ordinary Shares currently with a par value of 50 pence each of Scottish Power plc subject to and in accordance
with the Conditions and the Trust Deed. 

  

 38 

 The statements set forth in the legend above are an integral part of the Bond or Bonds in respect of which this
certificate is issued and by acceptance thereof each holder agrees to be subject to and bound by the terms and provisions set forth in such legend. 
  
 This definitive registered Bond is evidence of entitlement only. Title to the Bonds passes only on due registration on the register of Bondholders and only the duly
registered holder is entitled to payments in respect of this definitive registered Bond. 
  
 This definitive registered Bond shall not be valid for any purpose until authenticated by or on behalf of the Registrar. 
  
 This definitive registered Bond is governed by, and shall be construed in accordance with, English law. 
  
 Issued as of [l] 
  

	
	SCOTTISH POWER FINANCE (JERSEY) LIMITED
	
	 By:

  
 Certificate of Authentication

  
 Authenticated by Citibank AG, Frankfurt as Registrar without recourse,
warranty or liability. 
  

	
	CITIBANK AG, FRANKFURT
	
	 (as Registrar)

	
	 By:

	
	 Authorised Signatory

	
	 Dated:

  

 39 

 On the back: 
  

 40 

 FORM OF TRANSFER 
  
 For value received the undersigned hereby sell(s), assign(s) and transfer(s) to 
  
 (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS 
 (INCLUDING POSTCODE OR EQUIVALENT) OF TRANSFEREE) 
  
                                      principal amount
of this Bond and all rights under it, and irrevocably constitutes and appoints
                                        
             as attorney to transfer such principal amount of this Bond on the Register maintained by the Issuer in accordance with the Conditions, with full power of substitution.

  
 [NOTE: INSERT [A] FOR TRANSFERS OF BONDS BEARING THE TRANSFER RESTRICTION
LEGEND TO TRANSFEREES THAT TAKE DELIVERY OF BONDS NOT BEARING THE TRANSFER RESTRICTION LEGEND. INSERT [B] FOR TRANSFERS OF BONDS NOT BEARING THE TRANSFER RESTRICTION LEGEND TO TRANSFEREES THAT TAKE DELIVERY OF BONDS BEARING THE TRANSFER RESTRICTION
LEGEND.] 
  
 [A] In connection with such request and in respect of such Bonds, the
undersigned does hereby certify that (i) such transfer has been effected in accordance with the transfer restrictions set forth in the Bonds and in accordance with any applicable securities laws of any state of the United States or any other
jurisdiction and (ii) either; 
  

	1.	such transfer has been effected pursuant to and in accordance with Rule 903 or Rule 904 of Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities
Act”), and accordingly the undersigned does hereby further certify that: 

  

	 	(a)	the offer of the Bonds was not made to a person in the United States or to or for the account or benefit of a U.S. person; 

  

	 	(b)	either: 

  

	 	(i)	at the time the buy order was originated, the transferee was outside the United States or the undersigned and any person acting on its behalf reasonably believed that the transferee
was outside the United States, or 

  

	 	(ii)	the transaction was executed in, on or through the facilities of a designated offshore securities market (as defined in Regulation 5) and neither the undersigned nor any person
acting on its behalf knows that the transaction was pre-arranged with a buyer in the United States; 

  

	 	(c)	no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or 904(b) of Regulation S, as applicable; 

  

	 	(d)	the transaction is not part of a plan or scheme to evade the registration requirements of the U.S. Securities Act; and 

  

	 	(e)	if the undersigned is an officer or director of the Issuer or the Guarantor or a distributor, who is an affiliate of the Issuer or the Guarantor or distributor solely by holding
such position, such sale is made in accordance with the applicable provisions of Rule 904(b)(2) of Regulation S; or 

  

 41 

	2.	the transfer has been effected pursuant to an exemption from registration under the U.S. Securities Act provided by Rule 144 thereunder; or 

  

	3.	the transfer has been effected pursuant to an effective registration statement filed with the U.S. Securities and Exchange Commission. 

  
 [B] In connection with such request and in respect of such Bonds, the undersigned does hereby
certify that such transfer has been effected pursuant to and in accordance with Rule 144A (“Rule 144A”) under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and, accordingly, the undersigned does
hereby further certify that the beneficial interest in such Bonds is being transferred to a person that the undersigned reasonably believes is purchasing the Bonds for its own account, or for one or more accounts with respect to which such person
exercises sole investment discretion, and such person, and each such account is a “qualified institutional buyer” within the meaning of Rule 144A, in each case in a transaction meeting the requirements of Rule 144A and in accordance with
the transfer restrictions set forth in the Bonds and any applicable securities laws of any state of the United States or any other jurisdiction. 
  

					
	Dated	 	  

	 	  

	Signed	 	  

	 	Certifying Signature

  
 Notes: 
  

	 	(i)	The signature to this transfer must correspond with the name(s) as it/they appear(s) on the face of this Bond. In the case of joint holders, each of the joint holders named on the
Register must sign this form of transfer. 

  

	 	(ii)	A representative of the Holder of Bonds should state the capacity in which he signs e.g. executor. 

  

	 	(iii)	The signature of the person effecting a transfer shall conform to any list of duly authorised specimen signatures supplied by the registered holder or be certified by a recognised
bank, notary public or in such other manner as the Registrar may require. 

  

	 	(iv)	This form of transfer must be accompanied by such documents, evidence or information as the Registrar may require. 

  

	 	(v)	Where the transferor is a corporation, this form of transfer shall be executed under its common seal or under the hand of two of its officers duly authorised in writing.

  

 42 

 SCHEDULE 2 
 Terms and Conditions of the Bonds 
  

	1	Form, Denomination and Title 

  

	(a)	Form and Denomination 

  
 The Bonds will be issued in registered form in the Authorised Denominations without interest coupons attached and represented by the Global Bonds (as
defined below). The Global Bonds will be exchangeable in limited circumstances into definitive Bonds in registered form only in Authorised Denominations, serially numbered. 
  

	(b)	Global Bonds 

  
 Bonds in which beneficial interests are sold in transactions in reliance on Regulation S under the US Securities Act of 1933, as amended (the
“Securities Act”), will be represented by a global Bond in registered form (the “Regulation S Global Bond”). Bonds in which beneficial interests are sold pursuant to Rule 144A under the Securities Act will be represented by a
global Bond in registered form (the “Rule 144A Global Bond” and, together with the Regulation S Global Bond, the “Global Bonds”). 
  

	(c)	Bonds in Definitive Form 

  
 Bonds in definitive form will be issued only upon exchange of interests in the Global Bonds as described herein and in the Global Bonds. 
  
 The Bonds are not issuable in bearer form. 
  

	(d)	Title 

  
 Title to the Bonds will pass by transfer and registration as described in Conditions 3 and 4. The holder (as defined below) of any Bond will (except as
otherwise required by law or as ordered by a court of competent jurisdiction) be treated as its absolute owner for all purposes (whether or not it is overdue and regardless of any notice of ownership, trust or any interest in it or its theft or loss
(or that of the related certificate, as appropriate) or anything written on it or on the certificate representing it (other than a duly executed transfer thereof)) and no person will be liable for so treating the holder. In these Conditions,
“Bondholder” and “holder” means the person in whose name a Bond is registered in the Register. 
  

 43 

 The Bonds are constituted by a trust deed dated 10 July 2003 (the “Trust Deed”) between the
Issuer, the Guarantor and The Law Debenture Trust Corporation p.l.c. (the “Trustee”, which expression shall include all persons for the time being the trustee or trustees under the Trust Deed) as trustee for the holders of the Bonds. The
issue of the Bonds was authorised pursuant to a resolution of the Board of Directors of the Issuer passed on 8 July 2003 and the giving of the guarantee in respect of the Trust Deed and the Bonds (the “Bond Guarantee”) was authorised by
resolutions of the Board of Directors of the Guarantor passed on 29 May 2003 and resolutions of a committee of the Board of Directors of the Guarantor passed on 17 June and 3 July 2003. The statements in these terms and conditions (the
“Conditions”) include summaries of, and are subject to, the detailed provisions of the Trust Deed, which includes the form of the Bonds. Copies of the Trust Deed, the Paying, Transfer, Conversion and Exchange Agency Agreement dated 10 July
2003 (the “Agency Agreement”) relating to the Bonds between the Issuer, the Guarantor, the Trustee and Citibank, N.A. (the “Principal Paying, Transfer, Conversion and Exchange Agent”, which expression shall include any successor
as principal paying, transfer, conversion and exchange agent under the Agency Agreement) and the paying, transfer, conversion and exchange agents for the time being (such parties, together with the Principal Paying, Transfer, Conversion and Exchange
Agent, being referred to as the “Paying, Transfer, Conversion and Exchange Agents”, which expression shall include their successors as paying, transfer, conversion and exchange agents under the Agency Agreement) and Citibank AG, Frankfurt
in its capacity as registrar (the “Registrar”, which expression shall include any successor as registrar under the Agency Agreement), the Calculation Agency Agreement dated 10 July 2003 (the “Calculation Agency Agreement”)
between the Issuer, the Guarantor and the Calculation Agent, the Articles of Association of the Issuer (the “Articles of the Issuer”) and the deed poll (the “Deed Poll”) executed and delivered by the Guarantor on 10 July 2003 are
available for inspection during normal business hours by the Bondholders at the registered office of the Trustee, being at the date hereof at Fifth Floor, 100 Wood Street, London EC2V 7EX. The Bondholders are entitled to the benefit of, are bound by
and are deemed to have notice of all the provisions of the Trust Deed and are deemed to have notice of, all the provisions applicable to them of the Agency Agreement, the Calculation Agency Agreement and the Articles of the Issuer. Only holders of
Preference Shares will have the benefit of the Deed Poll. 
  
 The
Bonds are convertible into fully paid 4.00 per cent, exchangeable redeemable preference shares in the Issuer (the “Preference Shares”) having a paid-up value (the “Paid-up Value”) of US$1,000 each. Payments in respect of the
Preference Shares are guaranteed by the Guarantor pursuant to the Deed Poll. The Preference Shares shall be issued subject to and in accordance with these Conditions and the Articles of the Issuer. 
  
 The Preference Shares will, following their issue, be immediately exchanged
for fully paid ordinary shares in the Guarantor (the “Ordinary Shares”) having at the date hereof a nominal value of 50 pence each, in accordance with these Conditions, the provisions of the Articles of the Issuer and the Deed Poll. The
price at which any such exchange will be made (the “Exchange Price”) will, subject to adjustment in certain circumstances as set out in the Articles of the Issuer, be 460 pence per Ordinary Share. The number of Ordinary Shares for which a
Preference Share will be exchangeable will be determined by dividing the Paid-up Value of the Preference Share (translated into sterling at the fixed rate of US$1.6776 = £1.00) by the Exchange Price in effect on the Conversion Date.

  
 Words and expressions not otherwise defined in any Condition
shall have the meaning given in Condition 23 or in the Trust Deed, unless the context otherwise requires. 
  
  

 44 

	2	Status and Subordination 

  

	(a)	The Bonds 

  
 The Bonds constitute direct and unsecured obligations of the Issuer and rank pari passu without any preference among themselves. In the event of
the winding-up of the Issuer, the claims of the Trustee and the Bondholders against the Issuer in respect of such Bonds will be subordinated, in the manner provided in the Trust Deed, to the claims of all other creditors of the Issuer except for the
claims of holders of unsecured rights against the Issuer being rights which are subordinated so as to rank either (i) pari passu with such Bonds with all of which excepted claims such Bonds shall rank pari passu, or (ii) junior to such
Bonds. 
  

	(b)	Subordinated Bond Guarantee 

  
 The Guarantor has in the Trust Deed unconditionally (save as to subordination) and irrevocably guaranteed the due payment of all sums expressed to be
payable by the Issuer under the Trust Deed and the Bonds. The Bond Guarantee constitutes direct and unsecured obligations of the Guarantor. In the event of a winding-up of the Guarantor, the claims of the Trustee and the Bondholders to payment under
the Bond Guarantee will be subordinated in right of payment, in the manner provided in the Trust Deed, to the claims of all Senior Creditors of the Guarantor and senior to the claims of holders of Ordinary Shares. 
  

	3	Registration 

  
 The Issuer will cause a register (the “Register”) to be kept at the specified office of the Registrar on which will be entered the names and addresses of the holders of the Bonds and the particulars of the
Bonds held by them and of all transfers, redemptions and conversion of Bonds. Holders of Bonds will be entitled to receive only one Bond in respect of their entire holdings. 
  

	4	Transfer of Bonds 

  

	(a)	Transfer 

  
 Bonds may, subject to the terms of the Agency Agreement and to Conditions 4(b) and 4(c), be transferred in whole or in part in an Authorised Denomination
by lodging the relevant Bond (with the form of application for transfer in respect thereof duly executed and duly stamped where applicable) at the specified office of the Registrar or any Paying, Transfer, Conversion and Exchange Agent. 

 
 No transfer of a Bond will be valid unless and until entered on the
Register. A Bond may be registered only in the name of, and transferred only to, a named person (or persons, not exceeding four in number). 
  
 The Registrar will, within seven Business Days (as defined below) in the place of the specified office of the Registrar of any duly made application for
the transfer of a Bond, deliver a new Bond to the transferee (and, in the case of a transfer of part only of a Bond, deliver a Bond for the untransferred 
  

 45 

 balance to the transferor), at the specified office of the Registrar, or (at the risk and, if mailed at
the request of the transferee or, as the case may be, the transferor otherwise than by ordinary mail, at the expense of the transferee or, as the case may be, the transferor) mail the Bond by uninsured mail to such address as the transferee or, as
the case may be, the transferor may request. 
  

	(b)	Formalities Free of Charge 

  
 Such transfer will be effected without charge subject to (i) the person making such application for transfer paying or procuring the payment of any taxes,
duties and other governmental charges in connection therewith, (ii) the Registrar being satisfied with the documents of title and/or identity of the person making the application and (iii) such other reasonable requirements as the Issuer may from
time to time agree with the Registrar and the Trustee. The exchange of interests in a Global Bond for definitive Bonds will be subject to the provisions of all applicable fiscal or other laws and regulations in effect at the time of such exchange.

  

	(c)	Closed Periods 

  
 Neither the Issuer nor the Registrar will be required to register the transfer of any Bond (or part thereof) (i) during the period of 15 calendar days
immediately prior to any Reset Date or any earlier date fixed for redemption of the Bonds pursuant to Condition 9(b) or 9(c) or (ii) during the period of 15 calendar days ending on (and including) any Record Date (as defined in Condition 10(c)) in
respect of any payment of interest on the Bonds or (iii) in respect of which a Conversion Notice (as defined in Condition 8(b)) has been delivered in accordance with Condition 8(b) or (iv) in respect of which a Bondholder shall have exercised its
right to require the Issuer to redeem such Bond pursuant to Condition 9(b)(i) or 9(b)(ii). 
  

	(d)	Business Days 

  
 In these Conditions, “Business Day” means a day (other than a Saturday or Sunday) on which commercial banks are open for business in the
relevant place. 
  

	5	Interest Payments 

  

	(a)	Interest Payment Dates 

  
 The Bonds bear interest at the Interest Rate from (and including) the Issue Date. Subject to Conditions 6, 7(d) and 7(e), such interest will be payable on
each Interest Payment Date. 
  

	(b)	Interest Rate 

  

	 	(i)	The Interest Rate in respect of the period from (and including) the Issue Date to (but excluding) the First Reset Date is 4.00 per cent, per annum. 

  

	 	(ii)	The Interest Rate in respect of each Reset Period shall be the aggregate of 4.00 per cent. per annum and: 

  

	 	(aa)	the offered rate (rounded, if necessary, up to the nearest one hundred thousandth of a percentage point (0.000005 per cent. being rounded upwards)) for three-month deposits in US
dollars as at 11.00 a.m. (London time) on the Interest Determination Date in question as appears on the display designated as page “3750” on the Moneyline Telerate Monitor (or such other page or service as may replace it for the purpose of
displaying such information) as determined by the Registrar; 

  

	 	(bb)	if such offered rate does not appear, the arithmetic mean (rounded, if necessary, up to the nearest one hundred thousandth of a percentage point (0.000005 per cent. being rounded
upwards)) of offered quotations to leading banks in the London interbank market for three-month Euro-dollar deposits as at 11.00 a.m. (London time) on the Interest Determination Date in question obtained by the Registrar from the principal London
office of the Reference Banks (as defined in Condition 5(e)), provided at least two of the Reference Banks provide the Registrar with such offered quotations; and 

  

 46 

	 	(cc)	if, on any Interest Determination Date to which the provisions of sub-paragraph (bb) above apply, one only or none of the Reference Banks provides the Registrar with such a
quotation, the arithmetic mean (rounded, if necessary, up to the nearest one hundred thousandth of a percentage point (0.000005 per cent. being rounded upwards)) of the Euro-dollar lending rates which major banks in the London interbank market
selected by the Registrar are quoting at approximately 11.00 a.m. (London time) on the relevant Interest Determination Date to leading London interbank market banks for a period of three months, 

  
 except that, if the banks so selected by the Registrar under sub-paragraph
(cc) above are not quoting as mentioned above, the Interest Rate shall be the Interest Rate in effect for the last preceding Interest Period to which one of the preceding sub-paragraphs of this paragraph shall have applied. 
  

	(c)	Determination and Publication of Interest Rate and Interest Amounts 

  
 The Registrar will, upon determining the Interest Rate pursuant to Condition 5(b)(ii), calculate the Interest Amount in respect of each US$1,000 principal
amount and cause the Interest Rate and each Interest Amount payable in respect of an Interest Period to be notified to the Issuer, the Guarantor, the Trustee, the Principal Paying, Transfer, Conversion and Exchange Agent and the London Stock
Exchange and to be notified to the Bondholders as soon as possible after their determination but in no event later than the fourth London business day thereafter. 
  
 Each Interest Amount in respect of any Interest Period ending prior to the First Reset Date shall be calculated by applying
the Interest Rate to the principal amount of the relevant Bond and, in respect of any period of less than a complete year (save for a semi-annual Interest Period) such Interest Amount shall be calculated on the basis of a 360-day year consisting of
12 months of 30 calendar days each and, in the case of an incomplete month, the number of days elapsed. 
  
 Each Interest Amount in respect of any Interest Period commencing on or after the First Reset Date shall be calculated by applying the Interest Rate to
the principal amount of the relevant Bond and multiplying the result by the Day Count Fraction. 
  

	(d)	Determination or Calculation by Trustee 

  
 If the Registrar does not at any time for any reason so determine the Interest Rate or calculate each Interest Amount in accordance with Condition
5(b)(ii) and 5(c), the Trustee or an agent on its behalf shall do so and such determination or calculation shall be deemed to have been made by the Registrar. In doing so, the Trustee or such agent shall apply the foregoing provisions of this
Condition 5, with any necessary consequential amendments, to the extent that, in its opinion, it or such agent can do so, and in all other respects it or such agent shall do so in such manner as it shall deem fair and reasonable in all the
circumstances. All determinations or calculations made or obtained for the purposes of the provisions of this Condition 5(d) by the Trustee or such agent, shall (in the absence of wilful default, bad faith or manifest error) be binding on the
Issuer, the Guarantor, the Registrar, the other Paying, Transfer, Conversion and Exchange Agents and all Bondholders and (in the absence of wilful default or bad faith) no liability to the Issuer, the Guarantor or the Bondholders shall attach to the
Trustee in connection with the exercise or non-exercise by it of its powers, duties and discretions pursuant to such provisions. 
  

	(e)	Reference Banks 

  
 Unless the Bonds are to be redeemed on or before the First Reset Date, the Issuer will (with prior written approval of the Trustee) not later than 20
London business days before the First Reset Date appoint four leading financial institutions engaged in the London interbank market (each acting through its principal London office) to act as Reference Banks and will procure that, so long as any
Bond is outstanding, there shall thereafter at all times be four Reference Banks. If any such institution (acting through its relevant office) is unable to continue to act as a Reference Bank, the Issuer shall (with prior written approval of the
Trustee) appoint some other leading financial institution engaged in the London interbank market (acting through its principal London office) to act as such in its place. 
  

 47 

	(f)	Accrual of Interest 

  
 Each Bond will cease to bear interest (1) where the Conversion Right attached to it shall have been exercised, or the Trustee shall have exercised its
rights of conversion with respect to it pursuant to Condition 8(c), from the Interest Payment Date immediately preceding the relevant Conversion Date or, if none, the Issue Date (subject in any such case as provided in Condition 8(e)) or (2) where
such Bond is redeemed or repaid pursuant to Condition 9 or Condition 11, from the due date for redemption unless, upon due presentation, payment of the full amount due is improperly withheld or refused (or, following any election by the Issuer to
exercise its Share Settlement Option (as defined in Condition 9), the Issuer fails duly to perform its obligation to deliver the Redemption Settlement Shares and Cash Settlement Amount (as defined in Condition 9) (if any) in accordance with
Condition 9(g)), in which event such Bond shall continue to bear interest at the applicable rate (both before and after judgment) as provided in the Trust Deed until (but excluding) whichever is the earlier of (i) the day on which all sums and/or
Ordinary Shares due in respect of such Bonds up to that day are received by or on behalf of the relevant holder, and (ii) the day which is seven calendar days after that on which the Trustee or the Principal Paying, Transfer, Conversion and Exchange
Agent has notified the Bondholders of receipt of all sums and/or Ordinary Shares due in respect of all the Bonds up to such seventh calendar day. 
  

	6	Mandatory Deferrals 

  
 The Issuer (failing whom the Guarantor) must make each payment of interest on the relevant Interest Payment Date subject to and in accordance with these Conditions. However, if on the 16th London business day
preceding the date (the “Payment Date”) on which any payment of interest would, in the absence of deferral in accordance with this Condition 6, be due and payable, a Deferral Event has occurred, any such payment of interest (the
“Deferred Payment”) shall (subject to, and in accordance with, Condition 7) be deferred by the Issuer giving notice to the Bondholders in accordance with Condition 18, not less than 12 London business days prior to the Payment Date (a
“Deferral Notice”). Accordingly, on the giving of such notice, the Payment Date for the Deferred Payment shall be deferred and the relevant Deferred Payment shall become due and payable in accordance with Condition 7 on the 21st calendar
day (or if such date is not a London Business Day, the next following London business day after the date of such Deferral Notice (the “Deferred Payment Date”). If the Issuer has given a Deferral Notice then the Guarantor may not declare or
pay (other than a final dividend declared by the Shareholders of the Guarantor before the date of that Deferral Notice) a dividend on any of its Ordinary Shares from the date of the Deferral Notice until such time as the Deferred Payment is
satisfied. Any such Deferred Payment shall be satisfied only in accordance with Condition 7. The non-payment of any interest following the giving of any Deferral Notice in respect of it pursuant to this Condition 6 shall not constitute an
Event of Default (as defined in Condition 11). 
  

	7	Deferred Coupon Satisfaction Mechanism 

  

	(a)	Deferred Coupon Satisfaction Mechanism 

  
 If the Issuer has given a Deferral Notice pursuant to Condition 6, the Issuer shall satisfy the relevant Deferred Payment in full through the issue
of Preference Shares (which will be immediately exchanged for Ordinary Shares) to the Trustee in accordance with this Condition 7. Unless a Deferral Notice has been given in respect of any payment of interest, all payments of interest must be
satisfied by the Issuer or the Guarantor, as the case may be, in accordance with Condition 10. 
  

	(b)	Issue of Preference Shares 

  
 If any payment of interest is to be satisfied in full through the issue of Preference Shares to the Trustee then, subject to Conditions 7(d) and 7(e):

  

	 	(i)	by close of business on or before the 7th London business day prior to the Deferred Payment Date, the Issuer will issue to the Trustee (or, if so agreed between the Issuer and the
Trustee, to an agent of the Trustee) such number of Preference Shares (the “Payment Preference Shares”) as, in the determination of the Calculation Agent, will be exchangeable at the then prevailing 

  

 48 

 Exchange Price for fully paid Ordinary Shares (the “Payment Ordinary Shares”) that have a
market value converted into US dollars at the prevailing market exchange rates determined by the Calculation Agent of not less than an amount equal to the relevant Deferred Payment;  
  

	 	(ii)	such Payment Preference Shares will be immediately exchanged for the Payment Ordinary Shares as provided in the Articles of the Issuer; and 

  

	 	(iii)	the Trustee has agreed in the Trust Deed to use reasonable endeavours to give the necessary instructions to the Calculation Agent (subject to any necessary consents being obtained)
as soon as practicable and in any case not later than by close of business on the 6th London business day prior to the Deferred Payment Date to procure purchasers for such Payment Ordinary Shares on its behalf, and the Calculation Agent has agreed
to use reasonable endeavours on behalf of the Trustee to procure purchasers for such Payment Ordinary Shares prior to the Deferred Payment Date. The Calculation Agent has further agreed to exchange the proceeds of such sale into US dollars at
prevailing market exchange rates and deliver such exchanged proceeds to, or hold such exchanged proceeds to the order of, the Trustee, who shall pay, or procure that its agent pays, such proceeds as it holds in respect of the relevant Deferred
Payment on the Deferred Payment Date to the Principal Paying, Transfer, Conversion and Exchange Agent for application in accordance with Condition 7(c). 

  
 If, after the operation of the above procedures there would, in the opinion of the Calculation Agent, be a shortfall on the
Deferred Payment Date, the Issuer and the Guarantor shall, subject to Conditions 7(d) and 7(e), respectively issue further Preference Shares and Ordinary Shares in accordance with the provisions of the Trust Deed to ensure that a sum at least equal
to the relevant Deferred Payment is available to make the Deferred Payment in full on the relevant Deferred Payment Date, provided that if, despite the operation of the aforementioned provisions, such a shortfall exists on the Deferred Payment Date
the Issuer may in accordance with the provisions of the Trust Deed either pay an amount equal to such shortfall as soon as practicable to or to the order of the Trustee or continue, together with the Guarantor, to issue Preference Shares and
Ordinary Shares until the Principal Paying, Transfer, Conversion and Exchange Agent shall have received funds equal to the full amount of such shortfall. 
  

	(c)	Issuer satisfies payment 

  
 The issue by the Issuer of Preference Shares in accordance with this Condition 7 shall release and discharge the Issuer from the requirement to satisfy
the Deferred Payment or, as the case may be, in the circumstances referred to in (d) below, the relevant part of such Deferred Payment. The proceeds of sale of Payment Ordinary Shares resulting from the mandatory exchange of Payment Preference
Shares in accordance with this Condition 7 and the Articles of the Issuer shall be paid by the Principal Paying, Transfer, Conversion and Exchange Agent to the Bondholders to the extent of the Deferred Payment. 
  

	(d)	Insufficiency 

  
 If the Issuer is to satisfy a Deferred Payment in accordance with this Condition 7 and the Guarantor does not, on the date when the applicable number of
Payment Ordinary Shares required to be issued is determined in accordance with this Condition 7, have a sufficient number of Ordinary Shares available for issue free from pre-emption rights, then the Guarantor shall notify the Issuer, the Trustee,
the Calculation Agent, the Principal Paying, Transfer, Conversion and Exchange Agent and the Bondholders (the “Insufficient Share Authority Notice”) that all or part, as the case may be, of the Deferred Payment cannot be satisfied in
accordance with this Condition 7 until after the date of the next annual general meeting or extraordinary general meeting of shareholders of the Guarantor (notice of which has not then been given) at which a resolution is passed authorising a
sufficient number of Ordinary Shares to be issued to satisfy all or such part of the relevant Deferred Payment, provided that if the number of Ordinary Shares authorised to be issued at any such meeting is insufficient to satisfy all or such part of
the relevant Deferred Payment then those Ordinary Shares so authorised to be issued shall be applied in part satisfaction of all or such part of the relevant Deferred Payment in accordance with this Condition 7. Following the passage of such
resolution, the Issuer and the Guarantor shall notify the Trustee, the Calculation Agent, the Principal Paying, 
  

 49 

 Transfer, Conversion and Exchange Agent and the Bondholders of the date upon which the relevant Deferred
Payment or, as the case may be, the part thereof is to be made in accordance herewith on not less than 16 London business days’ notice. If, in the case of an insufficiency of Ordinary Shares, the Guarantor does not hold an annual or
extraordinary general meeting within 12 months of giving the Insufficient Share Authority Notice, at which a resolution to make a sufficient number of Ordinary Shares so available is proposed, the Issuer shall by notice require the Guarantor to
convene an extraordinary general meeting at which such a resolution shall be proposed on a date falling within 10 weeks of such notice from the Issuer. If and to the extent the Guarantor has insufficient Ordinary Shares for issue free from
pre-emption rights as described above, the Issuer shall not issue Payment Preference Shares pending the Guarantor obtaining the required resolution to issue the relevant Ordinary Shares. 
  

	(e)	Market Disruption 

  
 Notwithstanding the provisions of Condition 7(b), if there exists, in the opinion of the Issuer or the Guarantor, a Market Disruption Event on or after
the 15th London business day preceding any date upon which the Issuer is due to satisfy a Deferred Payment in accordance with this Condition 7, then the Issuer shall give a notice to the Trustee, the Calculation Agent, the Principal Paying,
Transfer, Conversion and Exchange Agent and the Bondholders as soon as possible after the Market Disruption Event has arisen or occurred, whereupon satisfaction of the relevant Deferred Payment in accordance with Condition 7 may be deferred until
such time as the Market Disruption Event no longer exists. 
  
 Any such Deferred Payment will be satisfied as soon as practicable following such time as the Market Disruption Event no longer exists and the Issuer shall not issue Preference Shares pending the end of the Market Disruption Event.

  

	(f)	Interest 

  
 Interest shall not accrue on any Deferred Payment unless, as a consequence of the existence of a Market Disruption Event, the Issuer does not make the
relevant payment for a period of 14 calendar days or more after the Deferred Payment Date, in which case interest shall accrue on such Deferred Payment from (and including) the Deferred Payment Date to (but excluding) the date on which such payment
is made. Any such interest shall be satisfied only in accordance with Condition 5, as soon as reasonably practicable after the relevant Deferred Payment is made. 
  

	(g)	Trustee liability 

  
 No liability shall attach to the Trustee or its agents if, as a result of a Market Disruption Event or any other event outside the control of the Trustee
or its agent, the Trustee or its agent is unable to comply with the provisions of Condition 7(b). 
  

	8	Conversion 

  

	(a)	Conversion Right 

  
 The holder of each Bond shall have the right (the “Conversion Right”) to convert (“conversion”) each US$1,000 principal amount of a
Bond into one fully-paid Preference Share allotted at a price equal to the Paid-up Value and to require the Issuer forthwith to procure that such Preference Share be exchanged immediately, pursuant to the Articles of the Issuer and the terms and
conditions of the Deed Poll and as provided in these Conditions, for Ordinary Shares of the Guarantor, having at the Issue Date a nominal value of 50 pence each, issued and accredited as fully paid, at any time on or after 19 August 2003 to the
close of business (at the place where the relevant Bond is deposited for conversion) on the seventh calendar day prior to the First Reset Date (both days inclusive) or, if such Bond shall have been called for redemption pursuant to Condition 9(b)
prior to the First Reset Date, then up to the close of business (at the place aforesaid) on the seventh calendar day prior to the date fixed for redemption thereof or, if notice requiring redemption has been given by the holder of such Bond pursuant
to Condition 9(c) then up to the close of business (at the place aforesaid) on the calendar day prior to the giving of such notice unless, in any such case, there shall be default in 
  

 50 

 making payment in respect of such Bond on any such date fixed for redemption, in which event the
Conversion Right shall extend (unless the Trustee shall have already exercised the relevant rights of conversion pursuant to Condition 8(c)) up to the close of business (at the place aforesaid) on the date on which the full amount of such payment
becomes available for payment and notice of such availability has been duly given in accordance with Condition 18 or, if earlier, the First Reset Date; provided that in each case if the final such date for the exercise of Conversion Rights is not a
Business Day in such place, then the right to exercise Conversion Rights shall end on the immediately preceding Business Day in such place. 
  
 Conversion Rights may not be exercised in respect of a Bond where the Bondholder shall have exercised its right to require the Issuer to redeem such Bond
pursuant to Condition 9(c). 
  
 Conversion Rights may not be
exercised following the giving of notice by the Trustee pursuant to Condition 11. 
  
 A Conversion Right may only be exercised in respect of an Authorised Denomination. Where a Conversion Right is exercised in respect of part only of a Bond, the old Bond shall be cancelled and a new Bond for the
balance thereof shall be issued in lieu thereof without charge but upon payment by the holder of any taxes, duties and other governmental charges payable in connection therewith and the Registrar will within seven Business Days in the place of the
specified office of the Registrar following the relevant Conversion Date deliver such new Bond to the Bondholder at the specified office of the Registrar or (at the risk and, if mailed at the request of the Bondholder otherwise than by ordinary
mail, at the expense of the Bondholder) mail the new Bond by uninsured mail to such address as the Bondholder may request. 
  
 Without prejudice to Condition 8(c), a Conversion Right may not be exercised by a Bondholder in circumstances where the relevant Conversion Date would
fall during the period commencing on the Record Date in respect of any payment of interest on the Bonds and ending on the relevant Interest Payment Date (both days inclusive). 
  
 By exercising a Conversion Right, a Bondholder (or, in the case of the exercise of Conversion Rights by the Trustee pursuant
to Condition 8(c) of the Bonds, the Trustee) will be deemed, subject to and in accordance with the Articles of the Issuer, to have made a Share Exchange Call applicable to the Preference Shares arising on the exercise of such Conversion Right, and
the Issuer will procure that such Preference Shares are immediately, following the issue of such Preference Shares to the Bondholder or his nominee (or to the Trustee or as the Trustee directs, as the case may be), exchanged, in accordance with the
Articles of the Issuer, for Ordinary Shares on or as at the relevant Conversion Date (without any further action being required to be taken by any Bondholder or the Trustee). Each of the Issuer and the Guarantor is entitled (at its own expense) to
do all such things and make all such entries in the Issuer’s and the Guarantor’s respective register of members and execute all such documents, whether on behalf of the relevant Bondholders or otherwise, (including the execution of such
instruments of transfer on behalf of the relevant Bondholders) as may be necessary to effect such exchange of Preference Shares for Ordinary Shares. 
  

	(b)	Procedure for Conversion 

  
 The Conversion Right attaching to any Bond may be exercised by delivering the relevant Bond to the specified office of any Paying, Transfer, Conversion
and Exchange Agent or the Registrar during its usual business hours, accompanied by a duly completed and signed notice of conversion (a “Conversion Notice”) in the form (for the time being current) obtainable from any Paying, Transfer,
Conversion and Exchange Agent or the Registrar. Delivery as aforesaid shall not be required in the case of the Trustee exercising rights of conversion pursuant to Condition 8(c). Conversion Rights 
  

 51 

 shall be exercised subject in each case to any applicable fiscal or other laws or regulations applicable
in the jurisdiction in which the specified office of the Paying, Transfer, Conversion and Exchange Agent or the Registrar to whom the relevant Conversion Notice is delivered is located. 
  
 The conversion date in respect of a Bond (the “Conversion Date”) shall be the London business day immediately
following the date of such delivery and, if applicable, any payment to be made or indemnity given under these Conditions in connection with the exercise of such Conversion Right or, in the case of the Trustee exercising rights of conversion pursuant
to Condition 8(c), the relevant redemption date, save that for the purposes of calculating the amount of interest payable in such circumstances pursuant to Condition 8(c), the Conversion Date shall mean the date which would have been the Conversion
Date had Conversion Rights been exercised by holders of the relevant Unexercised Bonds (as defined in Condition 8(c)) on the last day of the relevant period for exercise of Conversion Rights by such holders pursuant to Condition 8(a). A Conversion
Notice once delivered shall be irrevocable. 
  
 A Bondholder
exercising a Conversion Right or the Trustee exercising its rights of conversion under Condition 8(c) must pay (in the case of the Trustee by means of deduction from the net proceeds of sale referred to in Condition 8(c)) any taxes and capital,
stamp, issue and registration duties arising on the relevant conversion (except any taxes or capital duties or stamp duties payable in Jersey or the United Kingdom by the Issuer or the Guarantor in respect of the allotment and issue of Ordinary
Shares on conversion other than any stamp duty or stamp duty reserve tax that arises under Sections 67, 70, 93 or 96 of the Finance Act 1986) and such Bondholder or the Trustee (as the case may be) must pay (in the case of the Trustee, by way of
deduction from the net proceeds of sale as aforesaid) all, if any, taxes arising by reference to any disposal or deemed disposal of a Bond or Preference Share in connection with such conversion. 
  
 Neither the Preference Shares nor the Ordinary Shares will be available for
issue (i) to, or to a nominee for, Euroclear, Clearstream, Luxembourg, First Chicago Clearing Center or any other person providing a clearance service within the meaning of Section 96 of the Finance Act 1986 of the United Kingdom or (ii) to a
person, or nominee or agent for a person, whose business is or includes issuing depositary receipts within the meaning of Section 93 of the Finance Act 1986 of the United Kingdom, in each case at any time prior to the “abolition day” as
defined in Section 111(1) of the Finance Act 1990 of the United Kingdom. 
  
 Ordinary Shares to be issued on exchange of the Preference Shares arising on conversion of the Bonds will be allotted and issued in uncertificated form by the Guarantor through the dematerialised securities trading
system generated by CRESTCo Limited, known as CREST, unless the Bondholder elects to hold the Ordinary Shares in certificated registered form or, at the time of issuance, the Ordinary Shares are not a participating security in CREST. Certificates
for Ordinary Shares issued on conversion (if Ordinary Shares are in certificated form) will be dispatched by mail free of charge (but uninsured and at the risk of the person entitled thereto) within one month after the Conversion Date. 

 

	(c)	Automatic Conversion on Redemption 

  
 The Trust Deed provides that the Trustee may (other than in circumstances where the Issuer has elected to exercise the Share Settlement Option in
accordance with Condition 9), at its absolute discretion (and without any responsibility for any loss occasioned thereby), within the period commencing on the date six calendar days immediately prior to, and ending at the close of business on the
London business day immediately prior to, the date fixed for redemption from time to time of any of the Bonds (including any redemption under Condition 9(b)), elect by notice in writing to the Issuer to convert the aggregate principal amount of
Bonds due for redemption on such date and in respect of which Conversion Rights have not been exercised (“Unexercised Bonds”) into Preference Shares on the applicable Conversion Date if all necessary consents (if any) have been obtained
and the Trustee is satisfied or is advised by an independent investment bank of international repute in London appointed by the Trustee that the net proceeds of an immediate sale of the Ordinary Shares arising on the exchange of such Preference
Shares at the Exchange Price on the applicable Conversion Date (disregarding any liability (other than a liability of the Trustee) to taxation or the payment of any capital, stamp, issue or registration duties consequent thereon) would be likely to
exceed by 5 per cent, or more the amount of redemption moneys and interest which would otherwise be payable in respect of such Unexercised Bonds. 
  

 52 

 Save as provided in Condition 8(d), no interest shall accrue from the Interest Payment Date immediately
preceding the Conversion Date (or if such date falls before the first Interest Payment Date, since the Issue Date) in respect of such Unexercised Bonds in respect of which the Trustee’s conversion election as aforesaid shall have been made.

  
 All of the Ordinary Shares issued on such conversion and
exchange shall be sold by, or on behalf of, the Trustee as soon as practicable, and (subject to any necessary consents being obtained and to the deduction by the Trustee of any amount which it determines to be payable in respect of its liability to
taxation and the payment of any capital, stamp, issue or registration duties (if any) and any costs incurred by the Trustee in connection with the allotment and sale thereof) the net proceeds of sale together with accrued interest (if any) in
respect of such Unexercised Bonds shall if not in US dollars be converted into US dollars in such manner and at such time and at such rates as the Trustee shall consider appropriate and shall be held by the Trustee and distributed rateably to the
holders of such Unexercised Bonds in accordance with Condition 10. If the date fixed for redemption in respect of such Unexercised Bonds falls during a period commencing on an Interest Payment Date and ending on the date falling seven calendar days
after such Interest Payment Date (both dates inclusive) a sum equal to the interest payable on that Interest Payment Date in respect of such Unexercised Bonds and which has been paid to the holders thereof will be deducted from the net proceeds of
sale payable to the relevant holder and shall be paid to the Issuer. The amount of such net proceeds of sale payable to a holder of Unexercised Bonds pursuant to this Condition 8(c) shall be treated for all purposes as the full amount due from the
Issuer in respect of the Unexercised Bonds. 
  
 The Trustee shall
have no liability in respect of the exercise or non-exercise of its discretion pursuant to this Condition 8(c) or the timing of such exercise or, where relevant, in respect of any sale of Ordinary Shares or conversion of any amounts into US dollars,
whether for the timing of any such sale or conversion or the price at which any such Ordinary Shares are sold or the rate at which any such amounts are converted into US dollars, or the inability to sell any such Ordinary Shares or make such
conversion or otherwise. 
  

	(d)	Interest on Conversion 

  
 If any notice requiring the redemption of any Bonds is given pursuant to Condition 9(b) or 9(c) on or after the fifteenth London business day prior to a
record date which has occurred since the last Interest Payment Date (or in the case of the first Interest Period, since the Issue Date) (whether such notice is given before, on or after such record date) in respect of any dividend or distribution
payable in respect of the Ordinary Shares where such notice specifies a date for redemption falling on or prior to the date which is 14 calendar days after the Interest Payment Date next following such record date, interest shall accrue on Bonds in
respect of which Conversion Rights shall have been exercised or in respect of which the Trustee shall have exercised its rights of conversion pursuant to Condition 8(c) and in any such case in respect of which the Conversion Date falls after such
record date and on or prior to the Interest Payment Date next following such record date, in each case from the preceding Interest Payment Date (or, if such Conversion Date falls before the first Interest Payment Date, from the Issue Date) to such
Conversion Date. 
  
 Any such interest shall be paid by the
Issuer not later than 14 calendar days after the relevant Conversion Date by US dollar cheque drawn on, or by transfer to, a US dollar account maintained with a branch of a bank in New York City in accordance with instructions given by the relevant
Bondholder or, in the case of the exercise of such rights by the Trustee, the Trustee. 
  

	(e)	Change of Control 

  
 Following the occurrence of a Relevant Event the Issuer shall give written notice thereof to Bondholders in accordance with Condition 18 (which shall
include notice of the Exchange Price applicable in consequence of the Relevant Event, as adjusted where appropriate under the provisions of the Articles of the Issuer) within 14 calendar days of the first day on which it becomes so aware, which
notice shall contain a statement informing Bondholders of their entitlement to exercise their Conversion Rights as provided in these Conditions. Upon any exercise of Conversion Rights within 60 calendar days following a Relevant Event or, if later,
60 calendar days following the date on which notice thereof is given, the Exchange Price shall be as set out in the Articles of the Issuer, but in each case adjusted, if appropriate, under the provisions of the Articles of the Issuer. 
  

 53 

	(f)	Ordinary Shares 

  

	 	(i)	The Guarantor undertakes that it will procure that Ordinary Shares allotted on exchange for the Preference Shares will be fully paid and will rank pari passu in all respects
with the fully paid Ordinary Shares in issue on the Conversion Date, except that the Ordinary Shares so allotted will not rank for any dividend or other distribution declared, paid or made by reference to a record date prior to such Conversion Date.

  

	 	(ii)	Save as provided in Condition 8(d), no payment or adjustment shall be made on conversion for any interest which otherwise would have accrued on the relevant Bonds since the Interest
Payment Date immediately preceding the Conversion Date relating to such Bonds (or, if such Conversion Date falls before the first Interest Payment Date, since the Issue Date). 

  

	(g)	Preference Shares 

  

	 	(i)	Preference Shares allotted pursuant to these Conditions will be fully paid and will rank pari passu with all (if any) fully paid Preference Shares in issue on the Conversion
Date. 

  

	 	(ii)	Preference Shares will be allotted prior to the allotment of the Ordinary Shares for which they are exchangeable and will be allotted as of the relevant Conversion Date and will be
allotted (i) to the holder of the Bond completing the relevant Conversion Notice or (ii) to the Trustee or as the Trustee may direct (in the case of an exercise by the Trustee of its rights pursuant to Condition 8(c) and where Condition 7(b)
applies). 

  

	9	Redemption and Purchase 

  

	(a)	No Fixed Redemption Date 

  
 The Bonds are perpetual securities in respect of which there is no fixed redemption date and the Issuer shall (subject to the provisions of Condition 2
and without prejudice to the provisions of Condition 11) only have the right to repay them in accordance with the following provisions of this Condition 9. 
  

	(b)	Redemption at the Option of the Issuer 

  
 On giving not less than 30 nor more than 90 days’ notice to the Trustee and the Bondholders in accordance with Condition 18, the Issuer: 

 

	 	(i)	may at any time on or after 10 July 2009, provided that the average of the middle market quotations of an Ordinary Share as derived from the Relevant Stock Exchange for each of the
dealing days within the 30-day period ending on the fifth day prior to the date on which the relevant Share Settlement Option Notice is given to Bondholders (as provided below) shall have been at least 130 per cent, of the average of the Exchange
Price (as adjusted) in effect (or deemed to be in effect) on each such dealing day, redeem all, but not some only, of the Bonds for the time being outstanding by exercising its Share Settlement Option as described in Condition 9(g). To exercise its
Share Settlement Option, the Issuer shall give a notice to such effect (the “Share Settlement Option Notice”) to Bondholders in accordance with Condition 18; or 

  

	 	(ii)	may at any time redeem all but not some only of the Bonds for the time being outstanding at their principal amount together with interest accrued to the date fixed for redemption
if, prior to the date of such notice, Conversion Rights shall have been exercised and/or purchases (and corresponding cancellations) have been effected in respect of 85 per cent, or more in principal amount of the Bonds originally issued, together
with interest accrued to the date fixed for redemption; or 

  

	 	(iii)	may at any time after the First Reset Date redeem all but not some only of the Bonds for the time being outstanding at their principal amount together with interest accrued to the
date fixed for redemption. 

  

 54 

 For the purposes of the above, if on any dealing day in such 30-day period as mentioned above the
Ordinary Shares shall have been quoted cum-dividend then the middle market quotation on each dealing day on which the Ordinary Shares shall have been quoted “cum-dividend” shall be deemed to be the amount thereof reduced by an amount equal
to the amount of that dividend per Ordinary Share (excluding any associated tax credit and less the tax (if any) falling to be deducted on payment thereof to a resident of the United Kingdom). 
  

	(c)	Redemption at the Option of the Bondholders 

  
 Following the occurrence of a Relevant Event, the holder of each Bond will have the right to require the Issuer to redeem that Bond on the Relevant Event
Put Date (as defined below) at its principal amount together with accrued interest. To exercise such right, the holder of the relevant Bond must present such Bond at the specified office of the Registrar together with a duly completed and signed
notice of exercise, in the form for the time being current, obtainable from the specified office of any Paying, Transfer, Conversion and Exchange Agent or the Registrar (“Relevant Event Put Exercise Notice”) by not later than 60 calendar
days following a Relevant Event or, if later, 60 calendar days following the date upon which notice thereof is given to Bondholders by the Issuer or the Guarantor pursuant to Condition 8(e) and in accordance with Condition 18. The “Relevant
Event Put Date” shall be the fourteenth calendar day after the expiry of such period of 60 calendar days as referred to above. Payment in respect of any such Bond shall be made by transfer to a US dollar account with a branch of a bank in New
York City specified in the applicable Relevant Event Put Exercise Notice. A Relevant Event Put Exercise Notice, once delivered, shall be irrevocable and the Issuer shall redeem all Bonds the subject of Relevant Event Put Exercise Notices delivered
as aforesaid on the Relevant Event Put Date. The Trustee shall not be required to take any steps to ascertain whether a Relevant Event or any event which could lead to the occurrence of a Relevant Event has occurred. The Issuer shall give notice to
Bondholders and the Trustee by not later than 14 calendar days following the first day on which it becomes aware of the occurrence of a Relevant Event, which notice shall specify the procedure for exercise by holders of their rights to require
redemption of the Bonds pursuant to this Condition 9(c). 
  

	(d)	Purchase 

  
 Subject to the requirements (if any) of the London Stock Exchange and the UK Listing Authority and any other stock exchange on which the Bonds may be
listed at the relevant time, the Issuer or the Guarantor or any Subsidiary of the Issuer or the Guarantor or any holding company of the Issuer or the Guarantor (within the meaning of Section 736 of the Companies Act 1985) may at any time purchase
Bonds in the open market or otherwise at any price and such Bonds may be retained for the account of the relevant purchaser or resold or otherwise dealt with at its discretion. Any purchase by tender shall be made available to all Bondholders alike.
The Bonds so purchased, while held by or on behalf of the Issuer, the Guarantor or any such Subsidiary as holding company, shall not entitle the holder to vote at any meetings of the Bondholders and shall not be deemed to be outstanding for the
purposes of calculating quorums at meetings of the Bondholders or for the purposes of Condition 15. 
  

	(e)	Cancellation 

  
 All Bonds redeemed or converted will be cancelled forthwith and may not be reissued or resold. All Bonds purchased by or on behalf of the Issuer or the
Guarantor may be surrendered for cancellation, by surrendering each such Bond to the Principal Paying, Transfer, Conversion and Exchange Agent and, if so surrendered, shall be cancelled forthwith (and may not be reissued or resold) and the
obligations of the Issuer and the Guarantor in respect of any such Bonds shall be discharged. 
  

	(f)	Multiple Notices 

  
 If more than one notice of redemption is given pursuant to this Condition 9, the first of such notices to be given shall prevail. 
  

	(g)	Share Settlement Option 

  
 Subject to the Ordinary Shares being of a class of share admitted to the Official List of the UK Listing Authority and admitted to trading on the London
Stock Exchange’s market for listed 
  

 55 

 securities (or to any successor listing authority or other listing as the Trustee may approve) at the due
date for redemption of a Bond, the Issuer may, in the circumstances referred to in Condition 9(b)(i) (but not otherwise), elect (the “Share Settlement Option”) by delivery of a Share Settlement Option Notice in the manner described in
Condition 9(b)(i), to effect redemption in respect of such Bonds by: 
  

	 	(i)	delivering one fully paid Preference Share allotted at a price equal to the Paid-up Value for each US$1,000 principal amount of such Bond and procuring that such Preference Shares
shall be exchanged immediately for such number of Ordinary Shares as is determined by dividing the Paid-up Value of the relevant Preference Share (translated into pounds sterling at the fixed rate of US$1.6776 = £1.00) by the Exchange Price
prevailing on the Valuation Date (as defined below) and delivering such Ordinary Shares (the “Redemption Settlement Shares”) to the relevant Bondholder (or as the relevant Bondholder may direct in the Share Settlement Notice (as defined
below)); 

  

	 	(ii)	making payment of an amount (the “Cash Settlement Amount”) equal to the amount (if any) by which the principal amount of such Bond exceeds the product of the Market Value
(as defined below) of an Ordinary Share on the date (the “Valuation Date”) falling three calendar days prior to the due date for redemption of such Bond multiplied by the whole number of Ordinary Shares deliverable in accordance with
sub-paragraph (g)(i) above in respect of such Bond; and 

  

	 	(iii)	making payment in cash of any accrued and unpaid interest. 

  
 As used above, the “Market Value” of an Ordinary Share on the Valuation Date shall mean the Current Market Price with the substitution in the
definition thereof of (1) a reference to 20 consecutive dealing days for the reference therein to periods of five consecutive dealing days, (2) a reference to the said 20 calendar day period for the reference therein to the said five calendar day
period and (3) a reference to volume-weighted average for the reference therein to simple average of an Ordinary Share on the Valuation Date translated into US dollars at the US dollar/pounds sterling fixing exchange rate at noon appearing on or
derived from Bloomberg on the Valuation Date or, if such rate is not available on such day, the rate determined as aforesaid on the previous day on which such rate is so available. 
  
 If the Issuer elects to redeem the Bonds pursuant to Condition 9(b)(i) and to exercise the Share Settlement Option with
respect to Bonds, the following provisions shall apply: 
  

	 	(1)	In order to obtain delivery of the relevant Redemption Settlement Shares, the relevant Bondholder must deliver to any Paying, Transfer, Conversion and Exchange Agent at least 10
Business Days in the relevant place of delivery prior to the relevant redemption date (the“Notice Cut-off Date”), a duly completed notice substantially in the form set out in the Agency Agreement (the “Share Settlement Notice”),
a copy of which may be obtained from the specified office of any Paying, Transfer, Conversion and Exchange Agent, together in each case with the relevant Bonds. 

  

	 	(2)	Subject as provided herein, the relevant Redemption Settlement Shares will be delivered in accordance with the instructions given in the Share Settlement Notice and the Cash
Settlement Amount (if any) and any accrued and unpaid interest will be paid in accordance with Condition 10, in each case on the due date for redemption of such Bonds, provided the Share Settlement Notice and the relevant Bonds are delivered not
later than the Notice Cut-off Date. 

  

	 	(3)	If the Share Settlement Notice and relevant Bonds are not delivered to a Paying, Transfer, Conversion and Exchange Agent on or before the Notice Cut-off Date, then the Cash
Settlement Amount (if any) and any accrued and unpaid interest will be paid in accordance with Condition 10 on the due date for redemption of such Bonds and the relevant Redemption Settlement Shares will be delivered to the Trustee or as the Trustee
may direct on such due date. All of such Redemption Settlement Shares shall be sold by, or on behalf of, the Trustee as soon as practicable, and (subject to any necessary consents being obtained and to the deduction by the Trustee of any amount
which it determines to be payable in respect of its liability to taxation and the payment of any capital, stamp, issue or registration duties (if any) and any costs incurred by the Trustee in connection with the allotment and sale thereof) the net
proceeds of sale shall, if not in US dollars, be converted 

  

 56 

 into US dollars in such manner and at such time and at such rates as the Trustee shall consider
appropriate and shall be held by the Trustee and distributed rateably to the holders of the relevant Bonds in accordance with Condition 10. The amount of such net proceeds of sale payable to a holder pursuant to this sub-paragraph (3) plus the Cash
Settlement Amount (if any) and any accrued interest paid as aforesaid shall be treated for all purposes as the full amount due from the Issuer in respect of the relevant Bonds. 
  

	 	(4)	The Trustee shall have no liability in respect of the exercise or non-exercise of any discretion pursuant to sub-paragraph (3) above in respect of any sale of Redemption Settlement
Shares or conversion of any amounts into US dollars, whether for the timing of any such sale or conversion or the price at which any such Redemption Settlement Shares are sold or the rate at which any such amounts are converted into US dollars, or
the inability to sell any such Redemption Settlement Shares or make such conversion or otherwise. 

  

	 	(5)	Any Share Settlement Option Notice and any Share Settlement Notice shall be irrevocable. Failure properly to complete and deliver a Share Settlement Notice and deliver the relevant
Bonds may result in such notice being treated as null and void and the Issuer shall be entitled to effect settlement in accordance with sub-paragraph (3) above. Any determination as to whether such notice has been properly completed and delivered as
provided in the Conditions shall be made by the Issuer in its sole and absolute discretion and shall be conclusive and binding on the relevant Bondholders. 

  

	 	(6)	Ordinary Shares to be delivered pursuant to this Condition 9(g) shall be deemed to be registered as of the due date for redemption of the relevant Bond. 

  

	 	(7)	A Bondholder or the Trustee must pay (in the case of the Trustee by means of deduction from the net proceeds of sale referred to in sub-paragraph (3) above) any taxes and capital,
stamp, issue and registration duties arising on the relevant delivery of Preference Shares or Ordinary Shares (other than any taxes or capital duties or stamp duties payable in Jersey or the United Kingdom by the Issuer or the Guarantor in respect
of the allotment and issue of the Redemption Settlement Shares and the allotment, issue and exchange of the relative Preference Shares pursuant to this Condition 9(g), which shall be paid by the Issuer or the Guarantor, as the case may be (or in the
case of the Issuer, by the Guarantor if the Issuer fails to do so)) and such Bondholder or the Trustee (as the case may be) must pay (in the case of the Trustee, by way of deduction from the net proceeds of sale as aforesaid) all, if any, taxes
arising by reference to any disposal or deemed disposal of a Bond or Preference Share by a Bondholder in connection with such redemption. 

  

	 	(8)	Neither the Preference Shares nor the Redemption Settlement Shares will be available for issue (i) to, or to a nominee for, Euroclear, Clearstream, Luxembourg, First Chicago
Clearing Center or any other person providing a clearance service within the meaning of Section 96 of the Finance Act 1986 of the United Kingdom or (ii) to a person, or nominee or agent for a person, whose business is or includes issuing depositary
receipts within the meaning of Section 93 of the Finance Act 1986 of the United Kingdom, in each case at any time prior to the “abolition day” as defined in Section 111(1) of the Finance Act 1990 of the United Kingdom.

  

	 	(9)	Redemption Settlement Shares will be issued in uncertificated form through the dematerialised securities trading system generated by CRESTCo Limited, known as CREST, unless the
holder of such beneficial interests elects to hold the Redemption Settlement Shares in certificated registered form or, at the time of issuance, the Ordinary Shares are not a participating security in CREST. 

  

	 	(10)	The Guarantor undertakes that it will procure that Redemption Settlement Shares will be fully paid and will rank pari passu in all respects with the fully paid Ordinary
Shares in issue on the due date for redemption of the relevant Bond, except that the Ordinary Shares so allotted will not rank for any dividend or other distribution or grant of rights declared, paid or made by reference to a record date prior to
such date. 

  

 57 

	10	Payments 

  

	(a)	Principal 

  
 Payments of principal or the net proceeds of any sale of Ordinary Shares pursuant to Condition 8(c) or any Cash Settlement Amount or accrued interest
payable on a redemption of the Bonds pursuant to Condition 9(b) or 9(c) or on a repayment of the Bonds pursuant to Condition 11 other than on an Interest Payment Date will be made to the persons shown on the Register at close of business on the
Record Date and subject to surrender of the Bonds at the specified office of the Registrar or any of the Paying, Transfer, Conversion and Exchange Agents. 
  

	(b)	Interest and other Amounts 

  

	 	(i)	Payments of interest due on an Interest Payment Date will be made to the persons shown in the Register at close of business on the Record Date. 

  

	 	(ii)	Payments of all amounts other than as provided in Conditions 10(a) and (b)(i) will be made as provided in these Conditions. 

  

	(c)	Record Date 

  
 “Record Date” means the seventh London business day before the due date for the relevant payment. 
  

	(d)	Payments 

  
 Each payment in respect of the Bonds pursuant to Conditions 10(a) and (b)(i) will be made by United States dollar cheque drawn on a branch of a bank in
New York City mailed to the holder of the relevant Bond at his address appearing in the Register. However, upon application by the holder to the specified office of the Registrar or any Paying, Transfer, Conversion and Exchange Agent not less than
15 calendar days before the due date for any payment in respect of a Bond, such payment may be made by transfer to a United States dollar account maintained by the payee with a bank in New York City. 
  
 Where payment is to be made by cheque, the cheque will be mailed, on the
Payment business day (as defined below) preceding the due date for payment or, in the case of payments referred to in Condition 10(a), if later, on the Payment business day (as defined below) on which the relevant Bond is surrendered as specified in
Condition 10(a) (at the risk and, if mailed at the request of the holder otherwise than by ordinary mail, expense of the holder). 
  

	(e)	Payments subject to fiscal laws 

  
 All payments are subject in all cases to any applicable fiscal or other laws and regulations, but without prejudice to the provisions of Condition 12. No
commissions or expenses shall be charged to the Bondholders in respect of such payments. 
  

	(f)	Paying, Transfer, Conversion and Exchange Agents 

  
 The initial Paying, Transfer, Conversion and Exchange Agents and the Registrar and their initial specified offices are listed below. The Issuer and the
Guarantor reserve the right at any time with the approval of the Trustee to vary or terminate the appointment of any Paying, Transfer, Conversion and Exchange Agent or the Registrar and appoint additional or other Paying, Transfer, Conversion and
Exchange Agents or another Registrar, provided that they will maintain (i) a Principal Paying, Transfer, Conversion and Exchange Agent, (ii) Paying, Transfer, Conversion and Exchange Agents having specified offices in London (so long as the Bonds
are listed on the Official List of the UK Listing Authority and admitted to trading on the London Stock Exchange’s market for listed securities) and New York City and (iii) maintain a Registrar with a specified office outside the United
Kingdom. Notice of any change in the Paying, Transfer, Conversion and Exchange Agents or Registrar or their specified offices will promptly be given to the Bondholders. 
  

 58 

	(g)	Delay in payment 

  
 Bondholders will not be entitled to any interest or other payment for any delay after the due date in receiving the amounts due (i) as a result of the due
date not being a Payment business day (as defined below), (ii) if the Bondholder is late in surrendering the relevant Bond or (iii) if a cheque mailed in accordance with this Condition arrives after the date for payment. 
  

	(h)	Payment Business Days 

  
 In this Condition, “Payment business day” means any day (other than a Saturday or Sunday) on which banks and foreign exchange markets are open
for business in New York City and London and, in the case of presentation or surrender of a Bond, in the place of the specified office of the Registrar or relevant Paying, Transfer, Conversion and Exchange Agent, to whom the relevant Bond is
presented or surrendered. 
  

	11	Events of Default 

  
 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 Bonds then outstanding
or if so directed by an Extraordinary Resolution of the Bondholders shall, subject in each case to being indemnified to its satisfaction, (but, in the case of the happening of any of the events mentioned in sub-paragraphs (b), (d), (e), (f) and (g)
below, only if the Trustee shall have certified in writing to the Issuer that such event is, in its opinion, materially prejudicial to the interests of the Bondholders), give notice to the Issuer that the Bonds are, and they shall accordingly
thereby forthwith become, immediately due and repayable at their principal amount together with accrued interest (as provided in the Trust Deed) if any of the following events (each an “Event of Default”) shall have occurred (unless such
Event of Default has been remedied to the satisfaction of the Trustee): 
  

	 	(a)	if default is made for a period of 14 calendar days or more in the payment of any principal due in respect of the Bonds or any of them pursuant to Condition 9 or 21 calendar days or
more in the payment of any interest due in respect of the Bonds or any of them (subject to Conditions 6 and 7); or 

  

	 	(b)	if the Issuer or the Guarantor fails to perform or observe any of its other obligations under the Bonds or the Trust Deed and (except where the Trustee shall have certified to the
Issuer or the Guarantor, as the case may be, in writing that it considers such failure to be incapable of remedy in which case no such notice or continuation as is hereinafter mentioned will be required) such failure continues for the period of 60
calendar days (or such longer period as the Trustee may in its absolute discretion permit) next following the service by the Trustee of notice on the Issuer or the Guarantor requiring the same to be remedied; or 

  

	 	(c)	if any order made by any competent court or any resolution shall be passed for the winding up or dissolution of the Issuer or the Guarantor, save for the purpose of amalgamation,
merger, consolidation, reorganisation, reconstruction or other similar arrangement on terms previously approved in writing by the Trustee (such approval not to be unreasonably withheld or delayed having regard to the interests of the Bondholders) or
by an Extraordinary Resolution of the Bondholders; or 

  

	 	(d)	if any order shall be made by any competent court or any resolution shall be passed for the winding up or dissolution of a Principal Subsidiary, save for the purposes of
amalgamation, merger, consolidation, reorganisation, reconstruction or other similar arrangement (A) not involving or arising out of the insolvency of such Principal Subsidiary and under which all the surplus assets of such Principal Subsidiary are
transferred to the Issuer, the Guarantor or any of the Guarantor’s other Subsidiaries (other than an Excluded Subsidiary) or (B) the terms of which have previously been approved in writing by the Trustee (such approval not to be unreasonably
withheld or delayed having regard to the interests of Bondholders) or by an Extraordinary Resolution of the Bondholders; or 

  

 59 

	 	(e)	if the Issuer, the Guarantor or any Principal Subsidiary shall cease to carry on the whole or substantially the whole of its business (which, for the avoidance of doubt, is, in the
case of the Guarantor, its operation as a holding company), save: 

  

	 	(i)	in each case for the purpose of amalgamation, merger, consolidation, reorganisation, reconstruction or other similar arrangement (A) not involving or arising out of the insolvency
of the Issuer, the Guarantor or such Principal Subsidiary and under which all or substantially all of its assets are transferred to another member or members of the Group (other than an Excluded Subsidiary) or to a transferee or transferees which is
or are, or immediately upon such transfer become(s), a member or members of the Group (other than an Excluded Subsidiary), or (B) the terms of which have previously been approved in writing by the Trustee or by an Extraordinary Resolution of the
Bondholders; or 

  

	 	(ii)	in each case where there is a disposal of Scottish Power UK plc or a Principal Subsidiary or the business of any Principal Subsidiary under which all or substantially all of its
assets are transferred to a third party or parties (whether associates or not) for full consideration, by the Issuer, the Guarantor or a member or members of the Group (other than an Excluded Subsidiary) on an arm’s length basis,

  
 provided that if neither the Guarantor nor any
Subsidiary Undertaking holds a Relevant Licence, the Guarantor shall be deemed to have ceased to carry on the whole or substantially the whole of its business (and neither of exceptions (i)(A) or (ii) shall apply); or 
  

	 	(f)	if the Issuer, the Guarantor or any Principal Subsidiary shall suspend or announce its intention to suspend payment of its debts generally or shall be declared or adjudicated by a
competent court to be unable, or shall admit in writing its inability, to pay its debts generally (within the meaning of Section 123(1) or (2) of the Insolvency Act 1986) as they fall due, or shall be adjudicated or found insolvent by a competent
court or shall enter into any composition or other similar arrangement with its creditors generally under Section 1 of the Insolvency Act 1986; or 

  

	 	(g)	if a receiver, administrative receiver, administrator or other similar official shall be appointed in relation to the Issuer, the Guarantor or any Principal Subsidiary or in
relation to the whole or a substantial part of the undertaking or assets of any of them or a distress, execution or other process shall be levied or enforced upon or sued out against, or any encumbrancer shall take possession of, the whole or a
substantial part of the assets of any of them and in any of the foregoing cases it or he shall not be paid out or discharged within 90 calendar days (or such longer period as the Trustee may in its absolute discretion permit); or

  

	 	(h)	the Bond Guarantee is not (or is claimed by the Guarantor not to be) in full force and effect. 

  
 For the purposes of sub-paragraph (f) above, Section 123(l)(a) of the Insolvency Act 1986 shall have effect as if for
“£750” there was substituted “£500,000”. Neither the Issuer, the Guarantor nor any Principal Subsidiary shall be deemed to be unable to pay its debts for the purposes of sub-paragraph (f) above if any such demand as
is mentioned in Section 123(l)(a) of the Insolvency Act 1986 is being contested in good faith by the Issuer or the relevant Principal Subsidiary with recourse to all appropriate measures and procedures or if any such demand is satisfied before the
expiration of such period as may be stated in any notice given by the Trustee under this Condition. 
  

	12	Taxation 

  
 All payments in respect of the Bonds and the Bond Guarantee will be made without withholding of or deduction for taxation unless the withholding or
deduction is required by law, in which case the relevant payment will be made subject to such withholding or deduction. Neither the Issuer nor the Guarantor will be required to pay any additional or further amounts in respect of such withholding or
deduction. 
  

 60 

	13	Undertakings 

  

	(a)	Deed Poll 

  
 Whilst any Bond remains outstanding, the Guarantor will, save with the approval of an Extraordinary Resolution (as defined in the Trust Deed) of the
Bondholders or the prior written approval of the Trustee where, in the Trustee’s opinion, it is not materially prejudicial to the interests of the Bondholders to give such approval or, in the case of an amendment to the Deed Poll, unless the
modification is agreed by the Trustee as provided in Condition 15, perform all of its obligations under, and not make any amendment to, the Deed Poll. 
  

	(b)	Undertakings of the Guarantor 

  
 Whilst any Conversion Right remains exercisable or any Share Exchange Call remains to be satisfied, the Guarantor will, save with the approval of an
Extraordinary Resolution (as defined in the Trust Deed) or with the approval of the Trustee where, in its opinion, it is not materially prejudicial to the interests of the Bondholders to give such approval:  
  

	 	(i)	subject to Condition 7(d), at all times keep available for issue free from pre-emptive rights out of its authorised but unissued capital such number of Ordinary Shares as would
enable the obligation of the Issuer to procure that Preference Shares be exchanged for Ordinary Shares pursuant to the making of a Share Exchange Call and all rights of subscription and exchange for and conversion into Ordinary Shares to be
satisfied in full and to take all actions necessary to effect the issue and allotment of Ordinary Shares at the times and in the manner set out in the Articles of the Issuer;  

  

	 	(ii)	not issue or pay up any securities, in either case by way of capitalisation of profits or reserves, other than (i) by the issue of fully paid Ordinary Shares to the Shareholders and
other holders of shares in the capital of the Guarantor which by their terms entitle the holders thereof to receive Ordinary Shares on a capitalisation of profits or reserves or (ii) by the issue of Ordinary Shares paid up in full out of profits or
reserves (in accordance with applicable law) and issued wholly, ignoring fractional entitlements, in lieu of the whole or part of a cash dividend or (iii) by the issue of fully paid equity share capital (other than Ordinary Shares) to the holders of
equity share capital of the same class and other holders of shares in the capital of the Guarantor which by their terms entitle the holders thereof to receive equity share capital (other than Ordinary Shares) on a capitalisation of profits or
reserves, unless in any such case, the same gives rise (or would, but for the fact that the adjustment would be less than one per cent. of the Exchange Price then in effect, give rise) to an adjustment of the Exchange Price in accordance with the
terms of the Articles of the Issuer;  

  

	 	(iii)	not in any way modify the rights attaching to the Ordinary Shares with respect to voting, dividends or liquidation nor issue any other class of equity share capital carrying any
rights which are more favourable than such rights but so that nothing in this Condition 13 (b)(iii) shall prevent (1) the issue of any equity share capital to employees (including directors holding executive office) whether of the Guarantor or any
of its subsidiary or associated companies by virtue of their office or employment pursuant to any scheme or plan approved by the Guarantor in general meeting or which is established pursuant to such a scheme or plan which is or has been so approved,
or (2) any consolidation or subdivision of the Ordinary Shares or the conversion of any Ordinary Shares into stock or vice versa or (3) any modification of such rights which is not determined by an Independent Financial Adviser to be materially
prejudicial to the interests of the holders of the Bonds or (4) without prejudice to any rule of law or legislation (including regulations made under Section 207 of the Companies Act 1989 or any other provision of that or any other legislation), the
conversion of Ordinary Shares into, or the issue of any Ordinary Shares in, uncertificated form (or the conversion of Ordinary Shares in uncertificated form into certificated form) or the amendment of the Articles of Association of the Guarantor to
enable title to securities of the Guarantor (including Ordinary Shares) to be evidenced and transferred without a written instrument or any other alteration to the Articles of Association of the Guarantor made in connection with

  

 61 

 the matters described in this Condition 13 or which is supplemental or incidental to any of the foregoing
(including any amendment made to enable or facilitate procedures relating to such matters and any amendment dealing with the rights and obligations of holders of securities, including Ordinary Shares, dealt with under such procedures) or (5) any
issue of equity share capital where the issue of such equity share capital results or would, but for the fact that the adjustment would be less than one per cent. of the Exchange Price then in effect or that the consideration per Ordinary Share
receivable therefor (as described in the Articles of the Issuer) is at least 95 per cent. of the Current Market Price per Ordinary Share otherwise result in an adjustment of the Exchange Price or (6) any issue of equity share capital or modification
of rights attaching to the Ordinary Shares where prior thereto the Guarantor shall have instructed a firm of accountants or an independent investment bank of international repute in London (acting as experts) in each case selected by it and approved
in writing by the Trustee to determine what (if any) adjustments should be made to the Exchange Price as being fair and reasonable to take account thereof and such firm of accountants or investment bank shall have determined in accordance with the
Articles of the Issuer either that no adjustment is required or that an adjustment resulting in a reduction of the Exchange Price is required and, if so, the new Exchange Price as a result thereof and the basis upon which such adjustment is to be
made and, in any such case, the date on which the adjustment shall take effect (and so that the adjustment shall be made and shall take effect accordingly); 
  

	 	(iv)	procure that no securities (whether issued by the Guarantor or any of its Subsidiaries or procured by the Guarantor or any of its Subsidiaries to be issued) issued without rights to
convert into or exchange or subscribe for Ordinary Shares or purchase shall subsequently be granted such rights exercisable at a consideration per Ordinary Share which is less than 95 per cent. of the Current Market Price per Ordinary Share at close
of business on the last dealing day preceding the date of the announcement of the proposed inclusion of such rights unless the same gives rise (or would, but for the fact that the adjustment would be less than one per cent. of the Exchange Price
then in effect, give rise) to an adjustment of the Exchange Price and that at no time shall there be in issue Ordinary Shares of differing nominal values, save where such Ordinary Shares have the same economic rights; 

  

	 	(v)	not make any issue, grant or distribution or take any other action if the effect thereof would be that, on the conversion of Bonds, Ordinary Shares would (but for the provisions of
the Articles of the Issuer) have to be issued at a discount or otherwise could not, under any applicable law then in effect, be legally issued as fully paid; 

	 	

	 	(vi)	not reduce its issued share capital, share premium account or capital redemption reserve or any uncalled liability in respect thereof except (a) pursuant to the terms of issue of
the relevant share capital or (b) by means of a purchase or redemption of share capital of the Guarantor to the extent permitted by applicable law or which would not constitute a Capital Distribution as permitted by Section 130(2) of the Companies
Act 1985 or (c) a reduction of the share premium account to facilitate the writing off of goodwill arising on consolidation which requires the confirmation of the High Court and which does not involve the return, either directly or indirectly, of an
amount standing to the credit of the share premium account of the Guarantor and in respect of which the Guarantor shall have tendered to the High Court such undertaking as it may require prohibiting, so long as any of the Bonds remains outstanding,
the distribution (except by way of capitalisation issue) of any reserve which may arise in the books of the Guarantor as a result of such reduction or (d) where the reduction does not involve any distribution of assets and is effected by way of
cancellation for the purposes of a scheme of arrangement pursuant to Section 425 of the Companies Act 1985 or (e) solely in relation to a change in the currency in which the nominal value of the Ordinary Shares is expressed or (f) by way of transfer
of reserves as permitted under applicable laws and/or (g) where the reduction results in (or would, but for the fact that the adjustment would be less than one per cent, of the Exchange Price then in effect, result in) an adjustment to the Exchange
Price; 

  

	 	(vii)	if any offer is made to all (or as nearly as may be practicable all) Shareholders (or all (or as nearly as may be practicable all) such Shareholders other than the offeror and/or
any associates of the offeror (as defined in Section 430E(4) of the Companies Act 1985 or any modification or re-enactment thereof)) to acquire all or a majority of the issued ordinary share 

  

 62 

 capital of the Guarantor, or if any person proposes a scheme with regard to such acquisition, give notice
of such offer or scheme to the Bondholders at the same time as any notice thereof is sent to its Shareholders (or as soon as practicable thereafter) that details concerning such offer or scheme may be obtained from the specified offices of the
Paying, Transfer, Conversion and Exchange Agents and the Registrar and, where such an offer or scheme has been recommended by the Board of Directors of the Guarantor, or where such an offer has become or been declared unconditional in all respects,
use its reasonable endeavours to procure that a like offer or scheme is extended to the holders of any Ordinary Shares issued during the period of the offer or scheme arising out of the exercise of the Conversion Rights and/or to the holders of the
Bonds; 
  

	 	(viii)	use all reasonable endeavours to ensure that the Ordinary Shares issued upon exchange of any Preference Shares will be admitted to the Relevant Stock Exchange and will be listed,
quoted or dealt in on any other stock exchange or securities market on which the Ordinary Shares may then be listed or quoted or dealt in; and 

  

	 	(ix)	be the beneficial owner of the nominal share capital of the Issuer. 

  
 For the above purposes in relation to the Guarantor, “ordinary share capital” has the meaning ascribed to it in Section 832 of the Income and
Corporation Taxes Act 1988 and “equity share capital” has the meaning ascribed to it in Section 744 of the Companies Act 1985. 
  

	(c)	Undertakings of the Issuer and the Guarantor 

  
 Whilst any Bond remains outstanding, the Issuer will, and the Guarantor will procure that the Issuer will, save with the approval of an Extraordinary
Resolution or with the prior written approval of the Trustee where, in the Trustee’s opinion, it is not materially prejudicial to the interests of the Bondholders to give such approval:  
  

	 	(i)	comply with its obligations under the Articles of the Issuer and not make any amendment to the Articles of the Issuer which would vary, abrogate or modify the rights appertaining to
the Preference Shares; 

  

	 	(ii)	keep available for issue free from pre-emptive rights out of its authorised but unissued capital such number of Unclassified Shares as would enable all the unexercised Conversion
Rights and any other rights of conversion into, subscription for and exchange into Preference Shares to be satisfied in full; and 

  

	 	(iii)	not issue any other share capital with rights which are more favourable than the rights attaching to the Preference Shares as respects dividends or payment of the Paid-up Value
thereof or on a return of capital or otherwise, 

  
 provided that the creation or issue of any class of share capital ranking junior to or pari passu with the Preference Shares as respects rights to dividends and to payment of the Paid-up Value thereof on a return of capital or
otherwise shall be deemed not to be a variation, abrogation or modification of the rights appertaining to the Preference Shares. 
  

	14	Prescription 

  
 Claims in respect of Bonds will become prescribed unless presented for payment as required by Condition 10 within 10 years (in the case of principal) and
five years (in the case of interest), from the Relevant Date (as defined in Condition 23). 
  

	15	Meetings of Bondholders, Modification, Waiver and Substitution 

  

	(a)	Meetings 

  
 The Trust Deed contains provisions for convening meetings of Bondholders to consider any matter affecting their interests including the modification by
Extraordinary Resolution (as defined in the Trust Deed) of these Conditions or other provisions of the Trust Deed, the Deed Poll or the Articles of the Issuer (in the case of the Articles of the Issuer which would vary, abrogate or modify the

  

 63 

 rights appertaining to the Preference Shares). The quorum at any such meeting for passing an
Extraordinary Resolution will be one or more persons holding or representing a clear majority in principal amount of the Bonds for the time being outstanding, or at any adjourned such meeting one or more persons being or representing Bondholders
whatever the principal amount of the Bonds so held or represented, except that at any meeting the business of which includes the modification of certain of these Conditions, or certain provisions of the Trust Deed, the Deed Poll or the Articles of
the Issuer (including, inter alia, those relating to status, conversion and exchange terms and the currency, amount (but not to increase such amount) and the due date of payment of redemption moneys and interest or other amount in respect of
the Bonds), the quorum will be one or more persons holding or representing not less than two-thirds, or at any adjourned such meeting not less than one-third, in principal amount of the Bonds for the time being outstanding. An Extraordinary
Resolution passed at any meeting of Bondholders will be binding on all Bondholders, whether or not they are present at the meeting. 
  

	(b)	Modification and Waiver 

  
 The Trustee may agree, without the consent of the Bondholders, to (i) any modification to these Conditions or to the provisions of the Trust Deed, the
Deed Poll or the Articles of the Issuer (in the case of the Articles of the Issuer which would vary, abrogate or modify the rights appertaining to the Preference Shares) which in its opinion is of a formal, minor or technical nature or to correct a
manifest or proven error or (ii) any other modification which in its opinion is not materially prejudicial to the interests of the Bondholders. The Trustee may also agree without the consent of the Bondholders to the waiver or authorisation of any
breach or proposed breach of any of the provisions of the Trust Deed, the Deed Poll or the Articles of the Issuer or of the terms and conditions of the Bonds which in its opinion is not materially prejudicial to the interests of the Bondholders. The
Trustee may also agree without the consent of the Bondholders that an Event of Default which in its opinion is not materially prejudicial to the interests of Bondholders should be treated as such. For the avoidance of doubt, the consent of the
Trustee or the Bondholders is not required for an alteration or modification of the Articles of the Issuer in respect of the rights appertaining to the Nominal Shares, provided that any such alteration or modification does not, or does not have the
effect of, varying, abrogating or modifying the rights appertaining to the Preference Shares. As used above, “Nominal Shares” has the meaning provided for in the Articles of the Issuer. 
  

	(c)	Substitution of the Issuer 

  
 The Trust Deed contains provisions permitting the Trustee (if it is satisfied that to do so would not be materially prejudicial to the interests of
Bondholders) to agree, if requested by the Issuer and subject to such amendment of the Trust Deed and the Deed Poll and such other conditions as the Trustee may require, but without the consent of the Bondholders, to the substitution of any other
company in place of the Issuer, or of any previous substituted company, as principal debtor under the Trust Deed and the Bonds and as party to the Agency Agreement, subject to the Bonds remaining unconditionally and irrevocably guaranteed by the
Guarantor as provided in these conditions and the Trust Deed and being convertible mutatis mutandis as provided in these Conditions into Preference Shares in the substituted company with like rights mutatis mutandis to the Preference
Shares and to such Preference Shares being immediately exchangeable for Ordinary Shares mutatis mutandis as provided in the Articles of the Issuer and to the obligations of the Guarantor under the Deed Poll applying mutatis mutandis to
such Preference Shares. 
  

	(d)	Notice to Bondholders 

  
 Any such modification, waiver, authorisation or substitution shall be binding on all Bondholders and, unless the Trustee agrees otherwise, any such
modification or substitution shall be notified to the Bondholders in accordance with Condition 18 as soon as practicable thereafter. 
  

	(e)	Exercise of Powers etc. 

  
 In connection with the exercise of its powers, trusts, authorities or discretions (including but not limited to those in relation to any proposed
modification, waiver, authorisation or substitution as aforesaid) the Trustee shall have regard to the interests of the Bondholders as a class and shall not 
  

 64 

 have regard to the consequences of such exercise for individual Bondholders 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 Bondholder be entitled to claim from the Issuer, the
Guarantor or the Trustee, any indemnification or payment in respect of any tax consequence of any such exercise upon individual Bondholders except to the extent provided for in Condition 12 and/or in any undertakings given in addition thereto or in
substitution therefor pursuant to the Trust Deed. 
  

	16	Replacement of the Bonds 

  
 If any Bond is lost, stolen, mutilated, defaced or destroyed it may be replaced at the specified office of the Principal Paying, Transfer, Conversion and
Exchange Agent or the Registrar (or any other place of which notice shall have been given in accordance with Condition 18) upon payment by the claimant of the expenses incurred in connection therewith and on such terms as to evidence and indemnity
as the Issuer may reasonably require. Mutilated or defaced Bonds must be surrendered before any replacements will be issued. 
  

	17	Indemnification of the Trustee 

  
 The Trust Deed contains provisions for the indemnification of the Trustee and for its relief from responsibility, including provisions relieving it from
taking any action unless indemnified to its satisfaction. The Trustee is entitled to enter into business transactions with the Guarantor, the Issuer or any of their respective Subsidiaries without accounting for any profit resulting therefrom. The
Trustee is trustee for the Bonds only and not the Preference Shares or Ordinary Shares and as such shall not at any time be responsible for the value, sufficiency or validity of any of the Preference Shares or Ordinary Shares or the Exchange Price.
The Trustee shall not be obliged to exercise any voting rights or any other related rights in respect of the Preference Shares or the Ordinary Shares issued to it pursuant to these Conditions and shall not be liable to anyone for failure to do so.

  
 The Trustee shall not be responsible for any loss occasioned
by any delay in effecting the transfer of Payment Ordinary Shares to the Calculation Agent pursuant to Condition 7 or their subsequent sale and the conversion of the proceeds arising from such sale into US dollars by the Calculation Agent, including
(but without limitation) the timing of any such sale or conversion or the price at which such Payment Ordinary Shares are sold or the rate at which any amounts are converted into US dollars, or the inability to sell any such Payment Ordinary Shares
or make such conversion or otherwise. 
  

	18	Notices 

  
 Notices to Bondholders will be valid if published in a leading newspaper having general circulation in London (expected to be the Financial Times).
Any such notice shall be deemed to have been given on the date of such publication or, if published more than once or on different dates, on the first date on which publication is made. 
  

 65 

	19	Further Issues 

  
 The Issuer shall be at liberty from time to time without the consent of the Bondholders to create and issue further notes, bonds or debentures either
having the same terms and conditions in all respects as the Bonds (or in all respects except for the first payment of interest on them) and so that such further issue shall be consolidated and form a single series with the outstanding notes, bonds
or debentures of any series (including the Bonds) or upon such terms as to interest, subordination, conversion, premium, redemption and otherwise as the Issuer may determine at the time of their issue. Any further notes, bonds or debentures forming
a single series with the outstanding notes, bonds or debentures of any series (including the Bonds) constituted by the Trust Deed or any deed supplemental to it shall, and any other notes, bonds or debentures may, with the consent of the Trustee, be
constituted by a deed supplemental to the Trust Deed. The Trust Deed contains provisions for convening a single meeting of the Bondholders and the holders of notes, bonds or debentures of other series in certain circumstances where the Trustee so
decides. 
  

	20	Enforcement 

  
 At any time after the Bonds become due and payable, the Trustee may, at its discretion and without further notice, institute such proceedings against the
Issuer and/or the Guarantor as it may think fit to enforce the terms of the Trust Deed and the Bonds, but it need not take any such proceedings unless (1) it shall have been so directed by an Extraordinary Resolution or so requested in writing by
Bondholders holding at least one-quarter in principal amount of the Bonds outstanding, and (2) it shall have been indemnified to its satisfaction. No Bondholder may proceed directly against the Issuer or the Guarantor unless the Trustee, having
become bound so to proceed, fails to do so within a reasonable time and such failure is continuing. 
  

	21	Governing Law and Jurisdiction 

  

	(a)	Governing Law 

  
 The Trust Deed and the Bonds are governed by, and shall be construed in accordance with, the laws of England. 
  

	(b)	Jurisdiction 

  
 The courts of England are to have jurisdiction to settle any disputes that may arise out of or in connection with the Bonds and accordingly any legal
action or proceedings arising out of or in connection with any Bonds (“Proceedings”) may be brought in such courts. The Issuer and the Guarantor have in the Trust Deed irrevocably submitted to the jurisdiction of such courts. 

 

	(c)	Service of Process 

  
 Each of the Issuer and the Guarantor, in accordance with the Trust Deed, will appoint the Guarantor’s London office, whose address is Fifth Floor, 30
Cannon Street, London EC4M 6XH, to act as its agent in England to receive, for it and on its behalf, service of process in any Proceedings in England. 
  

	22	Contracts (Rights of Third Parties) Act 1999 

  
 No person shall have any right to enforce any term or condition of the Bonds under the Contracts (Rights of Third Parties) Act 1999. 
  

	23	Definitions 

  
 In these Conditions: 
  
 “Agent’s Spot Rate of Exchange” means the Calculation Agent’s spot rate of exchange for the purchase of the relevant Optional Currency
in the London foreign exchange market with US dollars at or about 11.00 a.m. on a particular day; 
  
 “Authorised Denominations” means US$1,000 and integral multiples thereof; 
  

 66 

 “Balance Sheet” means, at any time, the latest published audited consolidated balance sheet of
the Group on a historic cost basis; 
  
 “Bondholder”
and “holder” means the holders of the Bonds; 
  
 “Bonds” means the US$700,000,000 4.00 per cent. Step-up Perpetual Subordinated Guaranteed Convertible Bonds, and such expression shall include, unless the context otherwise requires, any further bonds issued pursuant to Condition
19 and forming a single series with the Bonds; 
  
 “Borrowings” means any indebtedness in respect of: 
  

	 	(a)	moneys borrowed and debit balances at banks and other financial institutions; 

  

	 	(b)	any debt security including any bond, note or loan stock;  

  

	 	(c)	any acceptance under any acceptance credit facility opened by a bank or other financial institution;  

  

	 	(d)	the sale or discounting of receivables (except to the extent that such sale or discounting is on a non-recourse basis); 

  

	 	(e)	any lease which the Guarantor accounts for as a finance lease as such term is described in the Statement of Standard Accounting Practices No. 21 (or any successor statement or
financial reporting standard);  

  

	 	(f)	any accrued fixed or minimum premium payable on the repayment or redemption of any instrument referred to in paragraph (b) above;  

  

	 	(g)	the acquisition cost of any asset to the extent payable before or after the time of acquisition or possession by the party liable where the advance or deferred payment is arranged
primarily as a method of raising finance or financing the acquisition of that asset; and 

  

	 	(h)	any guarantee, indemnity and/or other form of assurance against financial loss by any member of the Group in respect of any indebtedness of any person of a type referred to in
paragraphs (a) to (g) above. 

  
 Any amount
outstanding in a currency other than sterling is to be taken into account at its sterling equivalent calculated on the basis of the Calculation Agent’s spot rate of exchange at 11.00 a.m. on the day the relevant amount falls to be calculated.
However, indebtedness owing by one member of the Group to another member of the Group shall not be taken into account as Borrowings and, for the purposes of calculating the amount of Borrowings at any time: 
  

	 	(i)	deep discount borrowings will be valued at the amount attributed to them in the then latest Balance Sheet; and 

  

	 	(ii)	no item of indebtedness will be double counted by the inclusion of both the primary indebtedness and indebtedness arising under a guarantee, indemnity and/or other form of assurance
with respect to that primary indebtedness; 

  
 “Calculation Agent” means UBS Limited as calculation agent in relation to the Bonds, or its successor or successors for the time being appointed under the Calculation Agency Agreement; 
  
 “Current Market Price” means, in respect of an Ordinary Share at a
particular date, the average of the bid and offer quotations published by or derived from, the Relevant Stock Exchange for one Ordinary Share for the five consecutive dealing days ending on the dealing day immediately preceding such date; provided
that if at any time during the said five-day period the Ordinary Shares shall have been quoted ex-dividend and during some other part of that period the Ordinary Shares shall have been quoted cum-dividend then: 
  

	 	(a)	if the Ordinary Shares to be issued do not rank for the dividend in question, the quotations on the dates on which the Ordinary Shares shall have been quoted cum-dividend shall for
the purpose of this definition be deemed to be the amount thereof reduced by an amount equal to the amount of that dividend per Ordinary Share (excluding any associated tax credit and less the tax (if any) falling to be deducted on payment thereof
to a resident of the United Kingdom); 

  

 67 

	 	(b)	if the Ordinary Shares to be issued do rank for the dividend in question, the quotations on the dates on which the Ordinary Shares shall have been quoted ex-dividend shall for the
purpose of this definition be deemed to be the amount thereof increased by such similar amount, 

  
 and provided further that if the Ordinary Shares on each of the said five dealing days have been quoted cum-dividend in respect of a dividend which has
been declared or announced but the Ordinary Shares to be issued do not rank for that dividend the quotations on each of such dates shall for the purposes of this definition be deemed to be the amount thereof reduced by an amount equal to the amount
of that dividend per Ordinary Share (excluding any associated tax credit and less the tax (if any) falling to be deducted on payment thereof to a resident of the United Kingdom); 
  
 “Day Count Fraction” means, in respect of each Interest Period after the First Reset Date, the actual number of
days divided by 360; 
  
 “dealing day” means a day on
which the Relevant Stock Exchange is open for business and Shares may be dealt in on the Relevant Stock Exchange; 
  
 a “Deferral Event” shall occur at any time if, (a) as at the last day of each financial year and each financial half-year of the Guarantor, the
ratio of Operating Profit for the preceding 12 months of the Group to Net Interest Payable for the same period is less than 1.75 to 1 or (b) in the three calendar months immediately preceding the relevant Payment Date, no dividend or distribution
has been declared or paid and no payment of interest if any is due has been made on any class of share capital of the Guarantor or any other obligations which rank in a winding-up of the Guarantor junior to the claims of the Bondholders; 

 
 “Distribution Licence” means the electricity distribution
licence granted or treated as granted to SP Distribution plc (SC189125) under Section 6(l)(c) of the Electricity Act as modified and in force from time to time; 
  
 “Electricity Act” means the Electricity Act 1989 as amended or re-enacted from time to time and all subordinate
legislation made pursuant thereto; 
  
 “Excluded
Subsidiary” means any Subsidiary of the Guarantor (other than the Issuer):  
  

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

  

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

  

	 	(c)	which has been designated as such by the Guarantor by written notice to the Trustee, provided that the Guarantor 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; 

  
 “First Reset Date” means 10 July 2011; 
  
 “Generation Licence” means the electricity generation licence granted or treated as granted to Scottish Power Generation plc (SC189124) under
Section 6(l)(a) of the Electricity Act as modified and in force from time to time; 
  
 “Group” means the Guarantor and its Subsidiary Undertakings and “member of the Group” shall be construed accordingly; 
  
 “Guarantor” means Scottish Power plc; 
  
 “indebtedness for borrowed money” means any present or future indebtedness (whether principal, premium, interest
or other amounts) for or in respect of (i) money borrowed, (ii) liabilities under or in respect of any acceptance or acceptance credit, or (iii) any notes, bonds, debentures, debenture 
  

 68 

 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; 
  
 “Independent Financial Adviser” means a financial adviser appointed by the Guarantor and approved in writing by the Trustee or, if the Guarantor
shall not have appointed such an adviser within 21 calendar days after becoming aware of the need for such appointment hereunder and the Trustee is indemnified to its satisfaction against the costs, fees and expenses of such adviser, appointed by
the Trustee following notification to the Guarantor; 
  
 “Interest Amount” means, in respect of a Bond, the amount of interest payable for the relevant Interest Period on such Bond in accordance with Condition 5; 
  
 “Interest Determination Date” means, in relation to each Reset Date, the second London business day prior to such
Reset Date; 
  
 “Interest Payable” means, in respect of
any financial period, all interest, discount and acceptance commission and all other continuing, regular or periodic costs, charges and expenses in the nature of interest (whether paid, payable or capitalised) or treated for accounting purposes as
interest, incurred by the Group in effecting, servicing or maintaining Total Consolidated Borrowings during that period; 
  
 “Interest Payment” means, with respect to an Interest Payment Date, the aggregate Interest Amounts for the Interest Period ending on such
Interest Payment Date; 
  
 “Interest Payment Date”
means (i) in respect of the period from the Issue Date to (and including) the First Reset Date, 10 January and 10 July in each year, starting on 10 January 2004 and (ii) after the First Reset Date, 10 January, 10 April, 10 July and 10 October in
each year, starting on 10 October 2011, provided that if any Interest Payment Date after the First Reset Date would otherwise fall on a day which is not a Business Day, it shall be postponed to the next day which is a Business Day in London and New
York; 
  
 “Interest Period” means the period beginning
on (and including) the Issue Date and ending on (but excluding) the first Interest Payment Date and each successive period beginning on (and including) an Interest Payment Date and ending on (but excluding) the next succeeding Interest Payment Date;

  
 “Interest Rate” has the meaning given to it in
Condition 5(b); 
  
 “Interest Receivable” means, in
respect of any financial period, interest and amounts in the nature of interest received during that period by the Group from persons outside the Group; 
  
 “Issue Date” means 10 July 2003, being the date of initial issue of the Bonds; 
  
 “Issuer” means Scottish Power Finance (Jersey) Limited; 
  
 “London business day” means a day (other than a Saturday or
Sunday) on which commercial banks are open for business in London; 
  
 “London Stock Exchange” means London Stock Exchange plc; 
  
 “Manweb Licence” means the electricity distribution licence granted or treated as granted to SP Manweb plc (2366937) under Section 6(l)(c) of the Electricity Act as modified and in force from time to time;

  
 “Market Disruption Event” means (i) the occurrence
or existence of any suspension of or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the London Stock Exchange or otherwise) or on settlement procedures for transactions in the Ordinary Shares on the
London Stock Exchange if, in any such case, that suspension or limitation is, in the determination of an Independent Financial Adviser, material in the context of the sale of the Ordinary Shares, or (ii) in the opinion of the Issuer, there has been
a substantial deterioration in the price and/or value of the Ordinary Shares or circumstances are such as to prevent or to a material 
  

 69 

 extent restrict the issue or delivery of the Payment Preference Shares or Payment Ordinary Shares, as the
case may be, or (iii) where, pursuant to these Conditions, monies are required to be converted from one currency into another currency in respect of any Payment, the occurrence of any event that makes it impracticable to effect such conversion;

  
 “Net Interest Payable” means, in respect of any
financial period, Interest Payable during that period less Interest Receivable during that period; 
  
 “NGC Transmission Licence” means the licence granted to The National Grid Company plc under Section 6(l)(b) of the Electricity Act; 

 
 “Operating Profit” means the consolidated net pre-taxation
profits (after adding back Net Interest Payable) of the Group for a financial year of the Group before taking account of any exceptional or extraordinary profits (or losses) and before charging goodwill amortisation; 
  
 “Optional Currency” means sterling, euros or any other currency
(other than US dollars) which is for the time being freely transferable and convertible into US dollars and deposits of which are readily available in the London interbank market; 
  
 “Ordinary Shares” means ordinary shares of the Guarantor, having on the Issue Date a nominal value of 50 pence
each; 
  
 “Payment Ordinary Shares” has the meaning
ascribed to it in Condition 7(b); 
  
 “Payment Preference
Shares” has the meaning ascribed to it in Condition 7(b); 
  
 “Principal Subsidiary” at any time shall mean: 
  

	 	(A)	any Relevant Subsidiary; or  

  

	 	(B)	any Subsidiary of the Guarantor (not being an Excluded Subsidiary or any other Subsidiary of the Guarantor 90 per cent. in principal amount of whose indebtedness for borrowed money
is Project Finance Indebtedness):  

  

	 	(i)	whose (a) profits on ordinary activities before tax or (b) net assets represent 20 per cent. or more of the consolidated profits on ordinary activities before tax of the Group or
consolidated net assets of the Group respectively, in each case as calculated by reference to the then latest audited financial statements of such Subsidiary and the then latest audited consolidated financial statements of the Group; or 

  

	 	(ii)	to which is transferred all or substantially all of the business, undertaking and assets of a Subsidiary of the Guarantor which immediately prior to such transfer is a Principal
Subsidiary, whereupon the transferor Subsidiary shall immediately cease to be a Principal Subsidiary and the transferee Subsidiary shall cease to be a Principal Subsidiary under the provisions of this sub-paragraph (ii) (but without prejudice to the
provisions of sub-paragraph (i) above), upon publication of its next audited financial statements, 

  
 all as more fully defined in the Trust Deed. 
  
 A report by two Directors of the Guarantor that, in their opinion, a Subsidiary of the Guarantor is or is not or was or was not at any particular time or
throughout any specified period a Principal Subsidiary shall, in the absence of manifest error, be conclusive and binding on the Trustee and the Bondholders; 
  

“Project Finance Indebtedness” means any present or future indebtedness incurred to finance the ownership, acquisition, development and/or
operation of an asset, whether or not an asset of a member of the Group: 
  

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

  

 70 

	 	(ii)	in respect of which the person or persons to whom any such indebtedness 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: 

  

	 	(A)	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 

  

	 	(B)	recourse for the purpose only of enabling amounts to be claimed in respect of such indebtedness 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, provided that (aa) the extent of such recourse
is limited solely to the amount of any recoveries made on any such enforcement, and (bb) such person or persons is/are not entitled, by virtue of any right or claim arising out of or in connection with such indebtedness, to commence proceedings for
the winding up or dissolution of any member of the Group (other than an Excluded Subsidiary) or to appoint or procure the appointment of any receiver, trustee or similar person or officer in respect of any member of the Group (other than an Excluded
Subsidiary) or any of its assets (save for the assets the subject of such encumbrance); and/or 

  

	 	(C)	recourse 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 (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) by any member of the Group (other than an Excluded Subsidiary); 

  
 “Relevant Date” means whichever is the later of (i) the date on which such payment first becomes due and (ii) if the full amount payable has not
been received in New York City by the Principal Paying, Transfer, Conversion and Exchange Agent or the Trustee on or prior to such due date, the date on which, the full amount having been so received, notice to that effect shall have been given to
the Bondholders. Any reference in these Conditions to principal, premium and/or interest shall be deemed to include any Additional Amounts or any undertaking given in addition to or substitution for it under the Trust Deed; 
  
 “Relevant Event” means an offer made to all (or as nearly as may
be practicable all) Shareholders (or all (or as nearly as may be practicable all) such Shareholders other than the offeror and/or any associate of the offeror (as defined in Section 430E(4) of the Companies Act 1985, or any modification or
re-enactment thereof)), to acquire the whole or any part of the issued ordinary share capital of the Guarantor or if any person proposes a scheme with regard to such acquisition and (such offer or scheme having become or been declared unconditional
in all respects) the Guarantor becomes aware that the right to cast more than 50 per cent. of the votes which may ordinarily be cast on a poll at a general meeting of the Guarantor has or will become unconditionally vested in the offeror and/or such
associates; 
  
 “Relevant Licence” means the Generation
Licence, the Transmission Licence, the Distribution Licence, the Manweb Licence or the Supply Licence or, in any such case, and from time to time, any other licence or licences relating to the transmission, distribution or supply of electricity in
the United Kingdom granted to the Guarantor and/or any Relevant Subsidiary and “Relevant Licence” shall be construed accordingly; 
  
 “Relevant Subsidiary” means a member of the Group that holds a Relevant Licence; 
  
 “Reset Date” means the First Reset Date and thereafter each Interest Payment Date; 
  
 “Reset Period” means the period from (and including) a Reset Date
to (but excluding) the next succeeding Reset Date; 
  

 71 

 “Senior Creditors” means creditors of the Guarantor (a) who are unsubordinated creditors of the
Guarantor; (b) whose claims are, or are expressed to be, subordinated (whether only in the event of the winding up of the Guarantor or otherwise) to the claims of depositors and other unsubordinated creditors of the Guarantor but not further or
otherwise; (c) whose claims are in respect of any dated subordinated debt of the Guarantor; or (d) whose claims are, or are expressed to be, subordinated to the claims of other creditors whether subordinated or unsubordinated of the Guarantor other
than those whose claims rank, or are expressed to rank, pari passu with the Bond Guarantee, or junior to such Bond Guarantee; 
  
 “Share Exchange Call” shall have the meaning given to it in the Articles of the Issuer; 
  
 “Shareholders” means the holders at any given time of Ordinary
Shares; 
  
 “Subsidiary” and “Holding
Company” have the meanings ascribed to them under Section 736 of the Companies Act 1985; 
  
 “Subsidiary Undertaking” shall have the meaning given to it by Section 258 of the Companies Act 1985 (but, in relation to the Guarantor, shall exclude any undertaking (as defined in the Companies Act 1985)
whose accounts are not included in the then latest published audited consolidated accounts of the Guarantor, or (in the case of an undertaking which has first become a subsidiary undertaking of a member of the Group since the date as at which any
such audited accounts were prepared) would not have been so included or consolidated if it has become so on or before that date); 
  
 “Supply Licence” means the electricity supply licence granted or treated as granted to Scottish Power Energy Retail Limited (SC190287) under
Section 6(l)(d) of the Electricity Act as modified and in force from time to time; 
  
 “Total Consolidated Borrowings” means, at any time, the aggregate principal amount (or amounts equivalent to principal, howsoever described) comprised in the Borrowings of the Guarantor and its Subsidiaries
at that time calculated on a consolidated basis. Any amount outstanding in a currency other than sterling is to be taken into account at its sterling equivalent calculated on the basis of the Agent’s Spot Rate of Exchange on the day the
relevant amount falls to be calculated; 
  
 “Transmission
Licence” means the electricity transmission licence granted or treated as granted to SP Transmission plc (SC189126) under Section 6(l)(b) of the Electricity Act as modified and in force from time to time; 
  
 “UK Listing Authority” means the Financial Services Authority in
its capacity as competent authority under the Financial Services and Markets Act 2000; and 
  
 “Unclassified Shares” means unclassified shares in the share capital of the Issuer. 
  
 For the purposes of Conditions 8 and 13 only, (a) references to the “issue” of Ordinary Shares shall include the transfer and/or delivery of
Ordinary Shares by the Guarantor or any of its Subsidiaries, whether newly issued and allotted or previously existing, and (b) Ordinary Shares held by the Guarantor or any of its Subsidiaries shall not be considered as or treated as “in
issue”. 
  

 72 

				
	 ISIN:
	 	[XS0171196727	]1
	 	 	[XS0171162075	]2

  
 SCHEDULE 3

 Form of Global Bonds 
  
 SCOTTISH POWER FINANCE (JERSEY) LIMITED 
  
 (incorporated with limited liability in Jersey with registered number 85627) 
  
 U.S.$700,000,000 4.00 per cent. Step-Up Perpetual Subordinated Guaranteed Convertible 
 Bonds (the “Bonds”) 
  
 guaranteed by 
  
 SCOTTISH POWER PLC 
  
 (incorporated with limited liability in Scotland with registered number 193794) 
  
 and convertible into 4.00 per cent. Exchangeable Redeemable Preference Shares in 
 Scottish Power Finance (Jersey) Limited which will be 
 exchanged immediately
for Ordinary Shares in 
  
 SCOTTISH POWER PLC

  
 [RULE 144A]1/[REGULATION S]2 GLOBAL
BOND 
  
 [THIS BOND, THE GUARANTEE IN RESPECT HEREOF,
AND THE ORDINARY SHARES TO BE ISSUED UPON EXCHANGE OF THE PREFERENCE SHARES ON CONVERSION OF THE BONDS HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR WITH ANY SECURITIES
REGULATORY AUTHORITY OF ANY STATE OR ANY OTHER JURISDICTION OF THE UNITED STATES AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) IN ACCORDANCE WITH RULE 144A UNDER THE SECURITIES ACT TO A PERSON THAT THE HOLDER AND ANY
PERSON ACTING ON ITS BEHALF REASONABLY BELIEVE IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, (2) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH
RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, OR (3) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), IN EACH CASE PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT IN
EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OR ANY OTHER JURISDICTION OF THE UNITED STATES. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER WILL BE REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THIS BOND OR THE PREFERENCE
SHARES ISSUED UPON CONVERSION OF THE BONDS OR THE ORDINARY SHARES FOR WHICH THE PREFERENCE SHARES ARE EXCHANGEABLE OF THE RESALE RESTRICTIONS REFERRED TO ABOVE. NO REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE
144 UNDER THE SECURITIES ACT FOR RESALES OF THIS BOND, THE BOND GUARANTEE OR THE PREFERENCE SHARES ISSUED UPON CONVERSION OF THE BONDS OR THE ORDINARY SHARES FOR WHICH THE PREFERENCE SHARES ARE EXCHANGEABLE. 

	1	This language shall be borne by the Rule 144A Global Bond, 

	2	This language shall be borne by the Regulation S Global Bond. 

  

 73 

 THE ORDINARY SHARES ISSUED ON EXCHANGE OF THE PREFERENCE SHARES INTO WHICH THIS BOND IS CONVERTIBLE MAY
NOT BE DEPOSITED INTO ANY UNRESTRICTED DEPOSITARY FACILITY ESTABLISHED OR MAINTAINED BY A DEPOSITARY BANK, UNLESS AND UNTIL THE TIME AS SUCH ORDINARY SHARES ARE NO LONGER “RESTRICTED SECURITIES” WITHIN THE MEANING OF RULE 144(A)(3) UNDER
THE SECURITIES ACT.]1 
  
 [THIS BOND, THE GUARANTEE IN RESPECT HEREOF, AND THE ORDINARY SHARES TO BE ISSUED UPON THE EXCHANGE OF THE PREFERENCE SHARES ON CONVERSION OF THE BONDS
HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR ANY OTHER JURISDICTION OF THE UNITED STATES, AND PRIOR TO THE
EXPIRATION OF 40 DAYS AFTER THE LATER OF THE COMMENCEMENT OF THE OFFERING OF BONDS AND THE CLOSING DATE (THE “DISTRIBUTION COMPLIANCE PERIOD”), SUCH BONDS MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) IN ACCORDANCE
WITH RULE 144A UNDER THE SECURITIES ACT TO A PERSON THAT THE HOLDER AND ANY PERSON ACTING ON ITS BEHALF REASONABLY BELIEVE IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER OR (2) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OR ANY OTHER JURISDICTION
OF THE UNITED STATES.]2 
  
 The Bonds of Scottish Power Finance (Jersey) Limited (the “Issuer”) in respect of which this Global Bond is issued form part of a series designated as
specified in the title. The Bonds are guaranteed by Scottish Power plc (the “Guarantor”). 
  
 The Issuer hereby certifies that Citivic Nominees Limited is, at the date hereof, entered in the register of Bondholders as the holder of Bonds in the principal amount of 
  
 U.S.$[l],000,000 
  
 ([l] U.S. dollars) 
  
 The Bonds are constituted by a Trust Deed dated 10 July 2003 (the “Trust Deed”) between the Issuer, the Guarantor and The Law Debenture Trust Corporation
p.l.c. as trustee (the “Trustee”) and are subject to the Trust Deed and the terms and conditions (the “Conditions”) set out in Schedule 2 to the Trust Deed as modified by the provisions of this Global Bond. Terms
used in the Trust Deed have the same meaning herein. 
  
 The aggregate principal
amount from time to time of this Global Bond shall be that amount as shall be shown by the latest entry in the fourth column of Schedule A hereto, which shall be completed by or on behalf of the Principal Paying, Transfer, Conversion and Exchange
Agent upon the redemption or conversion and exchange of the Bonds into ordinary shares of the Guarantor (“Ordinary Shares”) or the purchase and cancellation of Bonds represented hereby or the exchange for definitive Bonds as
described below or the exchange of an interest herein for an interest in the [Regulation S Global Bond]1 [Rule 144A
Global Bond]2. 

	1	This language shall be borne by the Rule 144A Global Bond. 

	2	This language shall be borne by the Regulation S Global Bond. 

  

 74 

 The Bonds in respect of which this Global Bond is issued are convertible into 4.00 per cent, exchangeable redeemable
preference shares in the Issuer which will be exchanged immediately for Ordinary Shares subject to and in accordance with the Conditions and the Trust Deed. 
  
 Except as otherwise described herein, this Global Bond is issued subject to and with the benefit of the Conditions and the Trust Deed. 
  
 Exchange for Definitive Bonds 
  
 This Global Bond is exchangeable in whole but not in part (free of charge to the holder) for
definitive Bonds in registered form following the occurrence of an Exchange Event. An Exchange Event shall have occurred if (i) Euroclear or Clearstream, Luxembourg (or any alternative clearing system on behalf of which this Global Bond may be held)
is closed for business for a continuous period of 14 calendar days or more (other than by reason of legal holidays) or announces an intention permanently to cease business or does in fact do so or (ii) the Trustee gives written notice to the
Guarantor pursuant to Condition 11 that the Bonds are due and payable. Definitive Bonds issued in exchange for beneficial interests in this Global Bond will by not later than the Global Exchange Date be issued to and delivered to such persons or
registered in such name or names, as the case may be, as the holder of this Global Bond shall instruct the Registrar or the Principal Paying, Transfer, Conversion and Exchange Agent. 
  
 “Global Exchange Date” means a day falling not later than 30 days after that on which the notice requiring exchange is
given or, as the case may be, the occurrence of an Exchange Event and on which banks are open for business in the city in which the specified office of the Registrar is located. 
  
 In connection with an exchange following the occurrence of an Exchange Event, a person having an interest in this Global Bond must provide
the Registrar with (i) a written order containing instructions and such other information as the Issuer and the Registrar may require to complete, execute and deliver the relevant definitive Bonds and (ii) a fully completed, signed certification
substantially to the effect that person is not transferring its interest at the time of such exchange. 
  
 The statements set forth in the legend below are an integral part of the Bonds in respect of which this Bond is issued and by acceptance hereof each holder of such Bond agrees to be subject to and bound by the terms
and provisions set forth in such legend. 
  
 [For so long as any of the Bonds, the
Guarantee, Preference Shares or Ordinary Shares, are “restricted securities” within the meaning of Rule 144(a)(3) under the U.S. Securities Act of 1933, as amended (the “Securities Act”), the Guarantor will, during any
period in which it is neither subject to Section 13 or 15(d) of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”) nor exempt from reporting pursuant to Rule 12g3-2(b) thereunder, provide to any holder or
beneficial owner of such restricted securities or to any prospective purchaser of such restricted securities designated by such holder or beneficial owner, or to the Trustee, in the case of the Bonds, for delivery to such holder, beneficial owner or
prospective purchaser, in each case, upon request of such holder, beneficial owner or prospective purchaser, the information required to be provided by Rule 144A(d)(4) under the Securities Act.]1 

	1	This language shall be borne by the Rule 144A Global Bond. 

  

 75 

 Transfers 
  
 Transfers of interests in this Global Bond for an interest in the [Regulation S Global Bond]1 [Rule 144A Global Bond at any time on or prior to the end of the applicable distribution compliance period under Regulation S under the Securities
Act]2 will only be made upon presentation of a certificate as provided in the Agency Agreement. 
  
 Trustee’s Powers 
  
 In considering the interests of beneficial owners of interests in this Global Bond in circumstances where this Global Bond is held on behalf
of any one or more of Euroclear, Clearstream, Luxembourg and any other clearing system, the Trustee may, to the extent it considers it appropriate to do so in the circumstances, (a) have regard to such information as may have been made available to
it by or on behalf of the relevant clearing system or its operator as to the identity of its accountholders (either individually or by way of category) with respect to such beneficial interests in this Global Bond and (b) consider such interests on
the basis that such accountholders were the holder of this Global Bond. 
  
 This
Global Bond shall not be valid or become obligatory for any purpose until authenticated by or on behalf of the Principal Paying, Transfer, Conversion and Exchange Agent. 
  
 This Global Bond shall be governed by, and construed in accordance with, English law. 
  
 In witness whereof the Issuer has caused this Global Bond to be signed on its behalf by a
duly authorised signatory. 
  
 Dated 10 July 2003 
  
 SCOTTISH POWER FINANCE (JERSEY) LIMITED 
  
 By: 
  

This Global Bond is authenticated by or on behalf of the Registrar without recourse, warranty or liability. 
  
 By: 
  

Authorised Signatory 
  

	2	This language shall be borne by the Regulation S Global Bond. 

  

 76 

 SCHEDULE A 
  
 Principal Amount of this Global Bond 
  

									
	Date	 	 Reason for
 change in the
 principal
 amount of this
 Global Bond1
	 	 Amount of such
 change
	 	Principal
amount of this
Global Bond
following such
change	 	 Notation made
 by or on behalf

of the Principal
 Paying,
 Transfer,
 Conversion and
 Exchange Agent

	1	State whether change following (1) redemption of Bonds or (2) conversion of Bonds or (3) purchase and cancellation of Bonds or (4) exchange for interests in this
Global Bond or (5) exchange for interests in the [Regulation S] [Rule 144A] Global Bond or for Registered Bonds. 

  

 77 

 SCHEDULE B 
  
 Interest Payments in respect of this Global Bond 
  
 The following payments of interest in respect of this Global Bond and the Bonds represented by this Global Bond have been made: 

 

							
	Date	 	 Amount of Interest
 due and
payable
	 	 Amount of interest
 paid
	 	 Notation made by or
 on behalf of
the
 Principal Paying,
 Transfer,
Conversion
 and Exchange Agent

  

 78 

 SCHEDULE 4 
  
 Provisions for Meetings of Bondholders 
  
 Interpretation 
  

	1	In this Schedule the following expressions have the following meanings: 

  

	1.1	“voting certificate” means a certificate in the English language issued by a Paying, Transfer, Conversion and Exchange Agent and dated in which it is stated:

  

	 	1.1.1	that on that date Bonds (not being Bonds 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 adjournment of such meeting) bearing specified serial numbers were held to the order of such Paying, Transfer, Conversion and Exchange Agent (to its satisfaction) and that such Bonds will not be released until the earlier of:

  

	 	(a)	the conclusion of the meeting specified in such certificate or any adjournment of it; and 

  

	 	(b)	the surrender of the voting certificate to the Paying, Transfer, Conversion and Exchange Agent which issued it; and 

  

	 	1.1.2	that its bearer is entitled to attend and vote at such meeting or any adjournment of it in respect of the Bonds represented by such voting certificate; 

  

	1.2	“block voting instruction” means a document in the English language issued by a Paying, Transfer, Conversion and Exchange Agent and dated in which:

  

	 	1.2.1	it is certified that Bonds (not being Bonds in respect of which a voting certificate has been issued and is outstanding in respect of the meeting specified in such block voting
instruction or any adjournment of it) are held to the order of such Paying, Transfer, Conversion and Exchange Agent (or to its order at a bank or other satisfaction) and that such Bonds will not be released until the earlier of:

  

	 	(i)	the conclusion of the meeting specified in such document or any adjournment of it; and 

  

	 	(ii)	the surrender, not less than 48 hours before the time fixed for such meeting or adjournment, of the receipt for each such deposited Bond which is to be released to the Paying,
Transfer, Conversion and Exchange Agent which issued it and the notification of such surrender by such Paying, Transfer, Conversion and Exchange Agent to the Issuer; 

  

	 	1.2.2	it is certified that each depositor of such Bonds or a duly authorised agent on his behalf has instructed such Paying, Transfer, Conversion and Exchange Agent that the votes
attributable to his Bonds so deposited should be cast in a particular way in relation to the resolution to be put to such meeting or any adjournment of it and that all such instructions are, during the period of 48 hours before the time fixed for
such meeting or adjourned meeting, neither revocable nor subject to amendment; 

  

	 	1.2.3	the total numbers and the serial numbers of the Bonds so deposited are listed, distinguishing with regard to each such resolution between those in respect of which instructions have
been so given (i) to vote for, and (ii) to vote against, the resolution; and 

  

 79 

	 	1.2.4	any person named in such document as a proxy is authorised and instructed by such Paying, Transfer, Conversion and Exchange Agent to vote in respect of the Bonds so listed in
accordance with the instructions referred to in paragraph 1.2.3 above as set out in such document. 

  

	2	

  

	2.1	A holder of a Bond may obtain a voting certificate from a Paying, Transfer, Conversion and Exchange Agent or require a Paying, Transfer, Conversion and Exchange Agent to issue a
block voting instruction by depositing his Bond with such Paying, Transfer, Conversion and Exchange Agent not later than 48 hours before the time fixed for any meeting. Voting certificates and block voting instructions shall be valid until the
relevant Bonds are released pursuant to paragraph 1 and until then the holder of any such voting certificate or (as the case may be) the proxy named in any such block voting instruction shall, for all purposes in connection with any meeting or
proposed meeting of Bondholders, be deemed to be the holder of the Bonds to which such voting certificate or block voting instruction relates and the Paying, Transfer, Conversion and Exchange Agent with which (or to the order of which) such Bonds
have been deposited shall be deemed for such purposes not to be the holder of those Bonds. 

  

	2.2	A holder of a Bond in registered form may by an instrument in writing in the form available from any Agent in English signed by the holder or, in the case of a corporation, executed
under its common seal or signed on its behalf by an attorney or a duly authorised officer of the corporation and delivered to any Paying, Transfer, Conversion and Exchange Agent not later than 48 hours before the time fixed for any meeting, appoint
any person as a proxy to act on his or its behalf in connection with any meeting or proposed meeting of Bondholders. 

  

	2.3	A holder of a Bond in registered form which is a corporation may, by delivering to any Paying, Transfer, Conversion and Exchange Agent not later than 48 hours before the time fixed
for any meeting a resolution in English of its directors or other governing body, authorise any person to act as its representative (a “representative”) in connection with any meeting or proposed meeting of Bondholders.

  

	2.4	A proxy or representative so appointed shall so long as such appointment remains in force be deemed, for all purposes in connection with any meeting or proposed meeting of
Bondholders specified in such appointment, to be the holder of the Bonds to which such appointment relates and the holder of the Bonds shall be deemed for such purposes not to be the holder. 

  

	3	Each of the Issuer, the Guarantor and the Trustee at any time may, and the Trustee (subject to its being indemnified to its satisfaction against all costs and expenses thereby
occasioned) upon a request in writing of Bondholders holding not less than one-tenth in principal amount of the Bonds for the time being outstanding shall, convene a meeting of Bondholders. Whenever any such party is about to convene any such
meeting it shall forthwith give notice in writing to each other party of the day, time and place of the meeting and of the nature of the business to be transacted at it. Every such meeting shall be held at such time and place as the Trustee may
approve. 

  

	4	At least 21 days’ notice (exclusive of the day on which the notice is given and of the day on which the meeting is held) specifying the day, time and place of meeting shall be
given to the Bondholders. A copy of the notice shall in all cases be given by the party convening the meeting to each of the other parties. Such notice shall also specify, unless in any particular case the Trustee otherwise agrees, the nature of the
resolutions to be proposed. 

  

 80 

	5	A person (who may, but need not, be a Bondholder) nominated in writing by the Trustee may take the chair at every such meeting but if no such nomination is made or if at any
meeting the person nominated shall not be present within 15 minutes after the time fixed for the meeting the Bondholders present shall choose one of their number to be chairman, failing which the Issuer may appoint a chairman. The chairman of an
adjourned meeting need not be the same person as was chairman of the original meeting. 

  

	6	At any such meeting any one or more persons present in person holding Bonds or voting certificates or being proxies or representatives and holding or representing in the
aggregate not less than one-tenth in principal amount of the Bonds 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 business. The quorum at any such meeting for passing an Extraordinary Resolution shall (subject as provided below) be one or
more persons present in person holding Bonds or voting certificates or being proxies or representatives and holding or representing in the aggregate a clear majority in principal amount of the Bonds for the time being outstanding provided that at
any meeting the business of which includes any of the matters specified in the proviso to paragraph 19 the quorum shall be one or more persons present in person holding Bonds or voting certificates or being proxies or representatives and holding or
representing in the aggregate not less than two-thirds in principal amount of the Bonds for the time being outstanding. 

  

	7	If within 15 minutes from the time fixed for any such meeting a quorum is not present the meeting shall, if convened upon the requisition of Bondholders, be dissolved. In any
other case it shall stand adjourned (unless the Issuer, the Guarantor and the Trustee agree that it be dissolved) for such period, not being less than 13 days nor more than 42 days, and to such place, as may be decided by the chairman. At such
adjourned meeting one or more persons present in person holding Bonds or voting certificates or being proxies or representatives (whatever the principal amount of the Bonds so held or represented) shall form a quorum and may pass any resolution and
decide upon all matters which could properly have been dealt with at the meeting from which the adjournment took place had a quorum been present at such meeting provided that at any adjourned meeting at which is to be proposed an Extraordinary
Resolution for the purpose of effecting any of the modifications specified in the proviso to paragraph 19 the quorum shall be one or more persons so present holding Bonds or voting certificates or being proxies or representatives and holding or
representing in the aggregate not less than one-third in principal amount of the Bonds for the time being outstanding. 

  

	8	The chairman may with the consent of (and shall if directed by) any meeting adjourn such meeting from time to time and from place to place but no business shall be transacted at any
adjourned meeting except business which might lawfully have been transacted at the meeting from which the adjournment took place. 

  

	9	At least 10 days’ notice of any meeting adjourned through want of a quorum shall be given in the same manner as for an original meeting and such notice shall state the quorum
required at such adjourned meeting. It shall not, however, otherwise be necessary to give any notice of an adjourned meeting. 

  

 81 

	10	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 poll have a casting vote in addition to the vote or votes (if any) which he may have as a Bondholder or as a holder of a voting certificate or as a proxy or representative. 

  

	11	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 Issuer, the Guarantor, the Trustee or by one or more
persons holding one or more Bonds or voting certificates or being proxies or representatives and holding or representing in the aggregate not less than one-fiftieth in principal amount of the Bonds for the time being outstanding, a declaration by
the chairman that a resolution has been carried or carried by a particular majority or lost or not carried by any 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. 

  

	12	If at any meeting a poll is so demanded, it shall be taken in such manner and (subject as provided below) either at once or after such 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 continuation of the meeting for the transaction of
any business other than the question on which the poll has been demanded. 

  

	13	Any poll demanded at any meeting on the election of a chairman or on any question of adjournment shall be taken at the meeting without adjournment. 

 

	14	The Issuer, the Guarantor and the Trustee (through their respective representatives) and their respective financial and legal advisers may attend and speak at any meeting of
Bondholders. No one else may attend at any meeting of Bondholders or join with others in requesting the convening of such a meeting unless he is the holder of a Bond or a voting certificate or is a proxy or a representative.

  

	15	At any meeting on a show of hands every person who is present in person and who produces a Bond or voting certificate or is a proxy or a representative shall have one vote
and on a poll every person who is so present shall have one vote in respect of each U.S.$1,000 or, in the case of meetings of holders of Bonds denominated in another currency, as the Trustee in its absolute discretion may decide) in principal amount
of the Bonds so produced or represented by the voting certificate so produced or in respect of which he is a proxy or a representative. Without prejudice to the obligations of proxies named in any block voting instruction, 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. 

  

	16	The proxy named in any block voting instruction need not be a Bondholder. 

  

	17	Each block voting instruction shall be deposited at the registered office of the Guarantor or at such other place as the Trustee shall designate or approve, not less than 24
hours before the time appointed for holding the meeting or adjourned meeting at which the proxy named in the block voting instruction proposes 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 certified copy of each such block voting instruction and satisfactory proof (if applicable) shall if required by the Trustee be produced by the proxy at
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 proxy named in any such block voting instruction. 

  

 82 

	18	Any vote given in accordance with the terms of a block voting instruction shall be valid even if the block voting instruction or any of the Bondholders’ instructions pursuant
to which it was executed has been previously revoked or amended, provided that no intimation in writing of such revocation or amendment shall have been received from the relevant Paying, Transfer, Conversion and Exchange Agent by the Guarantor or
the Trustee at its registered office or by the chairman of the meeting in each case not less than 24 hours before the time fixed for the meeting or adjourned meeting at which the block voting instruction is used.  

  

	19	A meeting of Bondholders shall, subject to the Conditions, in addition to the powers given above, but without prejudice to any powers conferred on other persons by this Trust Deed,
have power exercisable by Extraordinary Resolution:  

  

	19.1	to sanction any proposal by the Issuer, the Guarantor or the Trustee for any modification, abrogation, variation or compromise of, or arrangement in respect of, the rights of the
Bondholders against the Issuer or the Guarantor or against any of its property whether such rights shall arise under this Trust Deed, the Deed Poll, the Articles of the Issuer or otherwise;  

  

	19.2	to sanction any scheme or proposal for the exchange, substitution or sale of the Bonds for, or the conversion of the Bonds into, or the cancellation of the Bonds in consideration
of, shares, stock, notes, bonds, debentures, debenture stock and/or other obligations and/or securities of the Issuer or the Guarantor or any other body corporate 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;  

  

	19.3	to assent to any modification of this Trust Deed, the Conditions, the Deed Poll, the Articles of the Issuer that relate to the rights appertaining to the Bonds which shall be
proposed by the Issuer, the Guarantor or the Trustee and (for the avoidance of doubt) no meeting of Bondholders shall be required to be convened to consider, or Extraordinary Resolution passed in respect of, the amendment of the Articles of the
Issuer so as to alter or modify the rights appertaining to the Nominal Shares (as defined in the Articles of the Issuer) provided that any such alteration or modification does not, or does not have the effect of varying, abrogating or modifying the
rights appertaining to the Preference Shares;  

  

	19.4	to authorise anyone to concur in and do all such things as may be necessary to carry out and to give any authority, direction or sanction which under this Trust Deed or the Bonds is
required to be given by Extraordinary Resolution;  

  

	19.5	to appoint any persons (whether Bondholders or not) as a committee or committees to represent the interests of the Bondholders and to confer upon such committee or committees any
powers or discretions which the Bondholders could themselves exercise by Extraordinary Resolution; 

  

	19.6	to approve a person proposed to be appointed as a new Trustee and to remove any Trustee; 

  

	19.7	to approve the substitution of any entity for the Issuer or the Guarantor (or any previous substitute) as principal debtor or guarantor under this Trust Deed; and

  

	19.8	to discharge or exonerate the Trustee from any liability in respect of any act or omission for which it may become responsible under this Trust Deed or the Bonds;

  

 83 

 provided that the special quorum provisions contained in the proviso to paragraph 6 and, in the case of
an adjourned meeting, in the proviso to paragraph 7 shall apply in relation to any Extraordinary Resolution for the purpose of paragraph 19.2 or 19.7 or for the purpose of making any modification to the provisions contained in this Trust Deed, the
Deed Poll, the Articles of the Issuer (same as provided above) or the Bonds which would have the effect of:  
  

	 	19.8.1	modifying the status, conversion and exchange terms in respect of the Bonds and the Preference Shares respectively; 

  

	 	19.8.2	reducing or cancelling the principal amount of, or interest on, or other amounts in respect of or reducing the rate of interest on, the Bonds; or 

  

	 	19.8.3	changing the currency of payment of the Bonds or the due date or dates for any payment in respect of the Bonds; or 

  

	 	19.8.4	modifying the provisions contained in this Schedule concerning the quorum required at any meeting of Bondholders or the majority required to pass an Extraordinary Resolution;

  

	 	19.8.5	modifying the terms of the Bond Guarantee; or 

  

	 	19.8.6	amending this proviso. 

  

	20	An Extraordinary Resolution passed at a meeting of Bondholders duly convened and held in accordance with this Trust Deed shall be binding upon all the Bondholders, whether or
not present at such meeting and whether or not they vote in favour, and each of the Bondholders shall be bound to give effect to it accordingly. The passing of any such resolution shall be conclusive evidence that the circumstances of such
resolution justify the passing of it. 

  

	21	The expression “Extraordinary Resolution” means a resolution passed at a meeting of Bondholders duly convened and held in accordance with these provisions by a
majority consisting of not less than three-quarters of the votes cast. 

  

	22	Minutes of all resolutions and proceedings at every such meeting shall be made and entered in the books to be from time to time provided for that purpose by the Issuer or the
Trustee and any such minutes, if purporting to be signed by the chairman of the meeting at which such resolutions were passed or proceedings transacted or by the chairman of the next succeeding meeting of Bondholders, shall be conclusive evidence of
the matters contained in them and until the contrary is proved every such meeting in respect of the proceedings of which minutes have been so made and signed shall be deemed to have been duly convened and held and all resolutions passed or
proceedings transacted at it to have been duly passed and transacted. 

  

	23	Subject to all other provisions contained in this Trust Deed the Trustee may without the consent of the Bondholders prescribe such further regulations regarding the holding
of meetings of Bondholders and attendance and voting at them as the Trustee may in its sole discretion determine including particularly (but without prejudice to the generality of the foregoing) such regulations and requirements as the Trustee
thinks reasonable: 

  

	23.1	so as to satisfy itself that persons who purport to requisition a meeting in accordance with paragraph 3 or who purport to make any requisition to the Trustee in accordance with
this Trust Deed are in fact Bondholders; and 

  

 84 

	23.2	as to the form of voting certificates or block voting instructions to be issued pursuant to paragraph 1 so as to satisfy itself that persons who purport to attend or vote at any
meeting of Bondholders are entitled to do so in accordance with this Trust Deed. 

  

	24	If and whenever the Issuer shall have issued and have outstanding any Bonds which are not identical and do not form one single series then those Bonds which are in all
respects identical shall be deemed to constitute a separate series of the Bonds and the foregoing provisions of this Schedule shall have effect subject to the following modifications: 

  

	24.1	a resolution which in the opinion of the Trustee affects one series only of the Bonds shall be deemed to have been duly passed if passed at a separate meeting of the holders of the
Bonds of that series; 

  

	24.2	a resolution which in the opinion of the Trustee affects more than one series of the Bonds but does not give rise to a conflict of interest between the holders of Bonds of any of
the series so affected shall be deemed to have been duly passed if passed at a single meeting of the holders of the Bonds of all the series so affected; 

  

	24.3	a resolution which in the opinion of the Trustee affects more than one series of the Bonds and gives or may give rise to a conflict of interest between the holders of the Bonds of
any of the series so affected shall be deemed to have been duly passed only if it shall be duly passed at separate meetings of the holders of the Bonds of each series so affected; and 

  

	24.4	to all such meetings as aforesaid all the preceding provisions of this Schedule shall mutatis mutandis apply as though references therein to Bonds and holders were
references to the Bonds of the series or group of series in question and to the holders of such Bonds respectively. 

  

	24.5	If the Issuer shall have issued and have outstanding (a) Bonds which are not denominated in United States dollars or (b) more than one series of Bonds denominated in United States
dollars but in differing denominations, the following provisions shall apply. In the case of any meeting of holders of Bonds of more than one currency the principal amount of such Bonds not denominated in United States dollars shall (i) for the
purposes of paragraph 3 above be the equivalent in United States dollars at the spot rate of a bank nominated by the Trustee for the conversion of the relevant currency or currencies into United States dollars on the seventh dealing day prior to the
day on which the request in writing is received by the Trustee and (ii) for the purposes of paragraphs 6, 7, 11 and 15 above (whether in respect of the meeting, or any adjourned such meeting or any poll resulting therefrom) be the equivalent in
United States dollars at such spot rate on the seventh dealing day (as defined above) prior to the day of such meeting or, if applicable, the taking of such poll. In such circumstances, and where separate series of Bonds denominated in United States
dollars but of different denominations are to be treated together for the purposes of this Schedule, on any poll each person present shall have one vote for every complete one United States dollar of Bonds (converted as above) which he holds.

  

	25	Nothing in this Trust Deed shall prevent any of the proxies named in any block voting instruction or form of proxy from being a director, managing director, officer or
representative of, or otherwise connected with, the Issuer, the Guarantor or any of its other Subsidiaries. 

  

	26	References in this Schedule to Agents shall, where the context requires, be taken to be references to Paying, Transfer, Conversion and Exchange Agents. 

  

 85 

 In witness where this Trust Deed has been executed and delivered as a deed by the Issuer, the Guarantor and the
Trustee on the date stated at the beginning. 
  
 SCOTTISH POWER FINANCE
(JERSEY) 
 LIMITED 
  
 ADRIAN COATS 
  
 Director 
  
 SCOTTISH POWER PLC 
  
 CHARLES
BERRY 
  
 Director 
  
 DONALD MCPHERSON 
  
 Secretary 
  

 86 

					
	 THE COMMON SEAL of
 THE LAW DEBENTURE TRUST
 CORPORATION p.l.c.
 was hereunto affixed in the presence of:
	  	 }
	  	SEAL

  
 Director 
  
 C RAKESTROW 
  
 Director/Authorised Signatory 
  
 JULIAN MASON-JEBB 
  

 87

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}]]