Document:

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                                                                  Exhibit 10.20

                        LICENSE AND DEVELOPMENT AGREEMENT

         This Software License and Development Agreement (the "Agreement") is
entered into as of this ____ day of December, 1999 (the "Effective Date") by and
between Philips Semiconductors Inc., a Delaware corporation having its principal
place of business at 811 East Arques Avenue, Sunnyvale, CA 94088-3409,
(hereinafter "PHILIPS"), and Phasecom Ltd., an Israeli corporation, having its
principal place of business at 11 Kiriat Hamada Street, Bldg. 6, 1st Floor, Har
Hotzvim 91450, Jerusalem, ISRAEL ("PCOM"), a wholly owned subsidiary of Phasecom
Inc., a Delaware corporation, with its principle place of business at 20400
Stevens Creek Blvd., 8th Floor, Cupertino, CA 95014 ("PHASECOM INC"). (PHILIPS,
PCOM and PHASECOM INC. are occasionally referred to herein individually as a
"Party" and collectively as the "Parties.")

         WHEREAS, PCOM has developed a DOCSIS MAC including both hardware and
software (as defined below) that is compliant to the version 1.0 MAC standard;

         WHEREAS, PCOM is developing a DOSIS MAC including both hardware and
software that will be compliant to the versions 1.1 MAC standard;

         WHEREAS, PHILIPS desires to license such a DOSIS MAC including both
hardware and software from PCOM under the terms and conditions of this Agreement
for use as part of its integrated circuit products;

         WHEREAS, PCOM desires to provide and license to PHILIPS such DOCSIS MAC
under the terms and conditions of this Agreement;

         WHEREFORE, in consideration of the mutual promises hereinafter set
forth, PHILIPS and PCOM and PHASECOM INC. agree as follows:

1.0    DEFINITIONS.

As used in this Agreement, the following capitalized terms shall have the stated
meanings:

1.1      "Affiliates" of a Party means any corporation, company or other entity
         which directly or indirectly controls, is controlled by, or is under
         common control with such Party. An entity shall be regarded as in
         control of another so long as it owns or controls, directly or
         indirectly, more than fifty percent (50%) of the shares entitled to
         vote for the election of directors or other person performing similar
         functions.

 .
1.2      "Application Specific Product" means products whose architecture are
optimized for use in particular applications and whose components may include
both hardware and software.

                                       1

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1.3      "Customer Specific Product " means products made for a specific
         customer or set of customers which may include both hardware and
         software and intellectual property from various sources.

1.4      "Derivative Works" means a work based on one or more preexisting works,
         such as a translation, arrangement, abridgement, condensation,
         expansion, compilation, revision, or any other form in which a work may
         be recast, transformed, or adapted, and as further defined by 17 U.S.C.
         Sec. 101.

1.5      "DOCSIS MAC" means the Media Access Controller, whose specification is
         defined under the DOCSIS standards committee including both hardware
         and software, that is provided by PCOM to PHILIPS under this Agreement,
         as further defined in Exhibit A and the Statement of Work herein. The
         term DOCSIS MAC shall include the PCOM DOCSIS 1.0 MAC, the PCOM DOCSIS
         1.1 MAC and, subject to the provisions of Article 4 herein, the PCOM
         DOCSIS 1.2 MAC that are provided by PCOM to PHILIPS under this
         Agreement.

1.6      "DOCSIS 1.0 MAC" means Media Access Controller whose specifications are
         defined under the DOCSIS standards committee for the 1.0 MAC standard.

1.7      "DOCSIS 1.1 MAC" means Media Access Controller whose specifications are
         defined under the DOCSIS standards committee for the 1.1 MAC standard.

1.8      "DOCSIS 1.2 MAC" means Media Access Controller whose specifications are
         defined under the DOCSIS standards committee for the 1.2 MAC standard.

1.9      "Documentation" means User Documentation and Source Documentation.
         "User Documentation" means user manuals and other written works that
         are designed to explain for the end user the installation and use of
         particular object code. "Source Documentation" means source code
         comments and other works describing the internal structure and
         operation of particular source code, including, but not limited to all
         related specifications, schematics, logic manuals, flow charts, and
         principals of operation, related build procedures, test harnesses, test
         procedures, bug data base and design documentation, as available.
         Documentation may be in tangible form or machine-readable text or
         graphic files subject to display or printout.

1.10     "Licensed Rights" means any patents, copyrights, maskwork rights,
         know-how and trade secrets or other legally protectable information
         which read upon, are embodied in, or otherwise apply to the DOCSIS MAC.

1.11     "PCOM DOCSIS 1.0 MAC" means the DOCSIS 1.0 MAC that is provided by PCOM
         to PHILIPS under this Agreement.

1.12     "PCOM DOCSIS 1.1 MAC" means the DOCSIS 1.1 MAC that is provided by PCOM
         to PHILIPS under this Agreement.

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1.13     "Product" or "Products" means any integrated circuit product made by or
         for PHILIPS and/or its Affiliates, including but not limited to DOCSIS
         Customer Specific Products or Application Specific Products for cable
         modem and cable set top box applications, provided however the terms
         Product and Products shall not include any integrated circuit product
         that uses the DOCSIS MAC for a Wireless Communications Application.

1.14     "Source Code" means all source files for both the generation of a
         hardware block and for the generation of software used to run the
         hardware block.

1.15     "Wireless Communications Application" means an application whose
         primary data transfer is accomplished by using "Wireless" medium,
         provided, however, the term Wireless Communications Application shall
         not include any wireless applications where the primary communications
         gateway is provided via cable. By way of example, the term "Wireless
         Communication Application" shall not include applications where data is
         distributed by wireless means in a local environment after transfer
         across a cable.

2.0   DOCSIS MAC DELIVERY.

2.1      Upon the signing of this Agreement PCOM shall deliver to PHILIPS the
         PCOM DOCSIS 1.0 MAC Deliverables, as set forth in Exhibit A.

2.2      PCOM agrees to deliver to PHILIPS the PCOM DOCSIS 1.1 MAC Deliverables
         in accordance with the Specifications and schedule set forth in Exhibit
         B.

3.0    ACCEPTANCE OF DELIVERABLES.

Acceptance of deliverables shall be defined as follows:

3.1      PHILIPS will examine and test each Deliverable upon delivery to
         determine whether the Deliverable conforms to the Specifications for
         such Deliverable. Within ten (10) business days after such delivery,
         PHILIPS shall provide PCOM with written acceptance of such Deliverable
         or a written statement of Errors. As used herein, "Errors" means: (i)
         defects in the Deliverable which cause it not to operate in conformance
         with the Specification: (ii) defects in the documentation which render
         it inaccurate, erroneous, or otherwise unreadable; or (iii) any aspect
         of any Deliverable which fails to conform to the Specification.

3.2      PCOM shall make all reasonable efforts to promptly correct the Errors
         in any Deliverable set forth in the Statement of Errors, and redeliver
         the Deliverable to PHILIPS within the specified time, which will be
         mutually agreed to by the parties, provided that the dates specified
         for items 1 and 6 in the chart under Section 5.2.1 are not exceeded.

                                       3

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3.3      PHILIPS will within [***] after such redelivery provide PCOM with a
         written acceptance or another Statement of Errors. This procedure
         set forth in Sections 3.1 through 3.3 will be repeated until PHILIPS
         accepts the deliverables or terminates pursuant to Section 3.4
         herein.

3.4      Should PHILIPS determine, prior to acceptance, that any Deliverable
         fails to meet the Specification, either (i) after the second redelivery
         of that Deliverable pursuant to 3.1.2, or (ii) after any delivery or
         redelivery which is late, PCOM will be deemed to be in material breach
         and PHILIPS may reject that Deliverable and any subsequent Deliverables
         and/or the Agreement.

3.5      If PHILIPS fails to provide PCOM with a written statement of Errors
         within the applicable [***], PHILIPS shall be deemed to have
         accepted the subject Deliverable.

[***] Denotes language for which Vyyo has requested confidential treatment
      pursuant to the rules and regulations of the Securities Act of 1933, as
      amended.

4.0   LICENSES

4.1      LICENSE FOR DOCSIS 1.0 MAC.

4.1.1    GRANT OF LICENSE. Subject to the terms and conditions of this
         Agreement, PCOM grants to PHILIPS and its Affiliates a
         non-exclusive, [***], worldwide, perpetual, non-transferable (except
         to PHILIPS' Affiliates) right and license, under the License Rights,
         to use, make, have made, reproduce, have reproduced, perform,
         modify, and prepare Derivative Works of, the PCOM DOCSIS 1.0 MAC,
         and the Derivative Works thereof, to design, develop, make, have
         made Products incorporating or using the PCOM DOSIS 1.0 MAC and/or
         Derivative Works thereof by or for PHILIPS and/or its Affiliates,
         and to use, distribute, import, offer to sell, and sell such
         Products, worldwide.

4.1.2    MODIFICATIONS. PHILIPS' right to modify pursuant to this Section 4.1.l
         above, gives PHILIPS the unlimited right to modify or create Derivative
         Works of the PCOM DOCSIS 1.0 MAC, including but not limited to
         developing a DOCSIS 1.1 and/or DOCSIS 1.2 versions of DOCSIS MAC, for
         incorporation or use in Products made by or for PHILIPS and/or its
         Affiliates, as granted therein.

4.2      LICENSE FOR DOCSIS 1.1 MAC.

4.2.1    GRANT OF LICENSE. Subject to the terms and conditions of this
         Agreement, PCOM grants to PHILIPS and its Affiliates a
         non-exclusive, [***] (subject to Sections 5.3 and 5.5), worldwide,
         perpetual, non-transferable (except to PHILIPS' Affiliates) right
         and license under the License Rights to use, make, have made,
         reproduce, have reproduced, perform, modify, and prepare Derivative
         Works of, the PCOM DOCSIS 1.1 MAC, and the Derivative Works thereof,
         to design, develop, make, have made Products incorporating or using
         the PCOM DOSIS 1.1 MAC and/or Derivative Works thereof by

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         or for PHILIPS and/or its Affiliates, and to use, distribute, import,
         offer to sell, and sell such Products, worldwide.

4.2.2    MODIFICATIONS. PHILIPS' right to modify pursuant to this Section 4.2.l
         above, gives PHILIPS the unlimited right to modify or create Derivative
         Works of the PCOM DOCSIS 1.1 MAC, including but not limited to
         developing a DOCSIS 1.2 versions of DOCSIS MAC, for incorporation or
         use in Products made by or for PHILIPS and/or its Affiliates, as
         granted therein.

[***] Denotes language for which Vyyo has requested confidential treatment
      pursuant to the rules and regulations of the Securities Act of 1933, as
      amended.

5.0   LICENSE FEES

5.1.1    License Fee for the PCOM DOCSIS 1.0 MAC

5.1.2    PHILIPS shall pay PCOM a [***]for the licensing of the PCOM DOCSIS
         1.0 MAC.

5.2      License Fee for the PCOM DOCSIS 1.1 MAC.

5.2.1    PHILIPS will pay PCOM [***] for the licensing of the PCOM DOCSIS 1.1
         MAC (subject to Section 5.2.2), payable in accordance with the
         milestones in the following chart. The Deliverables are described
         below for each milestone. The percentage figures listed in the chart
         represents the percentage of the total fee of [***] that is to be
         paid upon PHILIPS' acceptance of the respective Deliverable for the
         milestone.

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------------------------------
Item                Date           Deliverables and Milestones for delivery and acceptance
----------------------------------------------------------------------------------------------------------------
<S>         <C>     <C>            <C>
----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------
1           [***]   [***]         PS 1.1 MAC/Ethernet VHDL &Simulation Database
----------------------------------------------------------------------------------------------------------------
2                   [***]         PS 1.1 MAC/Ethernet Synthesis for P&R and QT
----------------------------------------------------------------------------------------------------------------
3                   [***]         FPGA Verified MAC/Ethernet w/3930
----------------------------------------------------------------------------------------------------------------
4           [***]   [***]         QT Verification
----------------------------------------------------------------------------------------------------------------
5                   [***]         Post P&R Timing Verification
----------------------------------------------------------------------------------------------------------------
6           [***]   [***]         Full SW
----------------------------------------------------------------------------------------------------------------
7                   [***]         Si Validation
----------------------------------------------------------------------------------------------------------------
8           [***]   [***]         Cable Labs Certification (1.0 or 1.1)
----------------------------------------------------------------------------------------------------------------
</TABLE>

[***] Denotes language for which Vyyo has requested confidential treatment
      pursuant to the rules and regulations of the Securities Act of 1933, as
      amended.

5.2.2     With respect to each Deliverable set forth in Section 5.2.1, the
          license granted for the PCOM DOCSIS 1.1 MAC under Section 4.2 shall
          apply upon payment for that Deliverable. In the event PCOM fails to
          deliver the PCOM DOCSIS 1.1 MAC deliverable for any milestone as set
          forth in Section 5.2.1 and 5.6, PHILIPS shall not be required to pay
          for any of the following deliverables and shall have full license
          rights with respect to all PCOM DOCSIS 1.1 MAC Deliverables delivered
          to PHILIPS,

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          provided that PHILIPS has paid the respective milestone fees for such
          Deliverables as set forth in Section 5.2.1, items 1-9..

5.2.3     The total fee associated with this Article 5 shall be [***], to be
          paid out in accordance with Section 5.1 for the PCOM DOCSIS 1.0 MAC
          (for the amount of [***], and Section 5.2 for the PCOM DOCSIS 1.1
          MAC, in accordance with items 1 through 9 of the milestones for
          delivery and acceptance matrix (for the amount of [***], referenced
          therein.

5.3       Upon full production of a Product that incorporates the DOCSIS MAC
          provided by PCOM herein, PHILIPS Semiconductors shall pay to PCOM a
          royalty fee of [***] device for each unit sold (excluding any units
          sold to PCOM), up to a limitation cap of [***], subject to Section
          5.6 (the "Maximum Royalty Amount"). Philips shall not pay any
          royalties on any Products sold to PCOM. The Maximum Royalty Amount
          is the maximum amount of royalties to be paid under this Agreement,
          which shall be [***], unless Section 5.6 applies, in which case the
          Maximum Royalty Amount shall be [***]. At the time that the total,
          combined royalties paid under this Agreement reaches the Maximum
          Royalty Amount, PHILIPS shall have no further obligation or
          liability to pay any further royalties on any Products that
          incorporate the DOCSIS MAC, and all liability for such royalties
          shall cease and the licenses granted under this Agreement shall
          remain and continue in effect as royalty-free, fully paid-up
          licenses. Should the Maximum Royalty Amount not be reached by
          December 31, 2001, PHILIPS Semiconductors shall then pay PCOM the
          difference between the sum of all royalties then paid to date and
          the applicable Maximum Royalty Amount ([***], or [***] if Section
          5.6 applies), and the Maximum Royalty Amount shall be deemed to
          have been reached and paid in full. This final payment shall be
          made to PCOM in one lump sum payment, due and payable by PHILIPS
          net 30 days thereafter.

[***] Denotes language for which Vyyo has requested confidential treatment
      pursuant to the rules and regulations of the Securities Act of 1933, as
      amended.

5.4       The royalties due under Section 5.3 shall be paid on a [***].
          Within [***] after the end of each calendar quarter, PHILIPS shall
          deliver to PCOM a royalty statement showing (i) the net number of
          units sold during that calendar quarter that are subject to royalty
          payment and (ii) the total amount of royalty payments due for that
          quarter, along with the payment for the total amount of royalties
          due for that calendar quarter. The net number of units sold means
          the total number of units sold less any returns.

5.5       For [***] after the end of the relevant reporting period, PHILIPS
          shall keep accurate records containing all the data reasonably
          required for the computation and verification of the amounts to be
          paid for such period and information to be given in the quarterly
          statements under Section 5.4. PHILIPS shall, during usual business
          hours, permit a national independent certified public accounting
          firm selected by PCOM, not more frequently than once per year, at
          PCOM's expense and prior arrangement, to inspect the same for the
          sole purpose of determining the royalty amounts payable pursuant to
          Section 5.3. All such audits shall be conducted following
          reasonable prior

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          written notice and the auditors shall comply with PHILIPS' normal
          safety and security procedures, and shall agree in writing to treat
          all information furnished by PHILIPS in the course of such audit as
          PHILIPS' Confidential Information. Such auditors shall disclose to
          PCOM only the amount of any discrepancy and the basis thereof. In
          the event of any underpayment, PHILIPS shall promptly remit to PCOM
          all amounts due. In the event that the underpayment is more than
          [***] for the period audited, PHILIPS shall remit to PCOM the
          reasonable costs of the accounting firm's fee for such audit.

5.6       PCOM acknowledges that the delivery dates specified in the chart
          under Section 5.2.1 are critical to the success of the PHILIPS
          Products. Accordingly, if the Deliverable for Item 5 is not
          delivered on or before [***], PHILIPS shall have the option, at its
          sole discretion, to cancel the Agreement, including any further
          payments and royalties. In the event Item 7 is not delivered on or
          before [***], PHILIPS' sole financial obligation shall be reduced
          to [***].

[***] Denotes language for which Vyyo has requested confidential treatment
      pursuant to the rules and regulations of the Securities Act of 1933, as
      amended.

6.0  OWNERSHIP

6.1      OWNERSHIP BY PCOM. PCOM shall retain ownership of all proprietary
         rights, including patent, copyright, trade secret, trademark and other
         proprietary rights, in and to the DOCSIS MAC provided by PCOM to
         PHILIPS under this Agreement. This Agreement shall not be construed to
         grant any ownership interest to any PCOM patent, copyright, trade
         secret, trademark or other proprietary right to PHILIPS.

6.2      TRANSFERS BY PCOM. In the event PCOM and/or PHASECOM INC. ever assigns
         or otherwise transfers ownership of any of its proprietary rights in
         the DOCSIS MAC, PCOM and PHASECOM INC. shall insure that such third
         party assumes the rights and obligations of PCOM and PHASECOM INC. as
         set forth in this Agreement. Notwithstanding any transfer or assignment
         of this Agreement, the grants of licenses set forth in Section 4 shall
         remain in full force and effect.

6.3      OWNERSHIP BY PHILIPS. Subject to PCOM.'s ownership rights under Section
         6.1 in the DOCSIS MAC provided by PCOM to PHILIPS, PHILIPS and its
         Affiliates shall own all modifications and Derivative Works made to the
         DOCSIS MAC by PHILIPS and its Affiliates.

7.0   CONFIDENTIAL INFORMATION

7.1      CONFIDENTIAL INFORMATION. As used herein, "Confidential Information"
         means the proprietary or confidential information of either Party which
         is disclosed by such Party ("Discloser") to the other Party
         ("Recipient") pursuant to this Agreement, including semiconductor
         technology, computer or data processing programs, electronic and data

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         processing applications, routines, subroutines, techniques or systems,
         or information concerning the business or financial affairs and methods
         of operation or proposed methods of operation, accounts, transaction,
         proposed transactions or security procedures of either a Party or its
         Affiliates, vendors, or customers. The DOCSIS MAC information shall be
         considered PCOM Confidential Information. The PHILIPS Product
         information shall be considered PHILIPS Confidential Information. All
         Confidential Information that is disclosed in tangible form shall be
         marked by the Discloser as confidential or proprietary prior to
         disclosure. Confidential Information that is disclosed in non-tangible
         form shall be identified by the Discloser at the time of disclosure as
         being confidential or proprietary and shall be confirmed in writing
         within ten (10) days from its disclosure.

7.2      Confidential Information shall not include information that:
         (i) was rightfully in the Recipient's possession prior to receipt from
         the Discloser.
         (ii) is or becomes a matter of public knowledge through no fault or
         breach of the Recipient;
         (iii) the Recipient rightfully receives from a third party, who has the
         right to so transfer or disclose it, without a duty of confidentiality
         on the third party or breach of this Agreement; or
         (iv) is independently developed by Recipient without use of the
         Discloser's Confidential Information.

7.3      OBLIGATIONS OF CONFIDENTIALITY. Each Party agrees to maintain
         Confidential Information received from the Discloser in confidence
         and neither use for any purpose apart from this Agreement, nor
         disclose Confidential Information to any third party, except
         Affiliates, without the prior written approval of the Discloser, or
         as is required to comply with any order of a court, or any
         applicable rule, regulation or law of any jurisdiction. In the event
         that Recipient is required by judicial or administrative process to
         disclose Confidential Information of the Discloser, it shall
         promptly notify the Discloser and allow the Disclosure a reasonable
         time to oppose such process or seek a protective order. Within
         PHILIPS and PCOM and their respective Affiliates, Confidential
         Information shall be disclosed only on a needs to know basis. The
         foregoing obligations for Confidential Information shall remain in
         force during the term of the Agreement and [***] following the
         expiration or termination of this Agreement.

[***] Denotes language for which Vyyo has requested confidential treatment
      pursuant to the rules and regulations of the Securities Act of 1933, as
      amended.

7.4      DEGREE OF CARE. Each Party shall protect Confidential Information by
         using the same degree of care, but not less than a reasonable degree of
         care, to prevent the unauthorized disclosure or use of Confidential
         Information, as that Party uses to protect its own confidential and
         proprietary information of like nature and similar importance.

7.5      CONSULTANTS AND CONTRACTORS. Confidential Information may be disclosed
         by PHILIPS to its consultants and contractors performing work or
         services for PHILIPS in accordance with the scope of this Agreement,
         provided that such consultants and contractors are subject to a valid,
         binding and enforceable agreement to maintain the obligations of
         confidentiality no less restrictive than those set forth in this
         Section 7.

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<PAGE>

7.6      PHILIPS' CUSTOMERS. Confidential Information may be disclosed by
         PHILIPS to its customers as reasonably necessary for the purposes of
         designing or developing Products for the customers, provided that such
         customers enter into PHILIPS' standard non-disclosure agreement for the
         protection of the Confidential Information.

8.0   INDEMNITY

8.1      INDEMNIFICATION BY PCOM. PCOM shall indemnify, hold harmless and defend
         PHILIPS from and against any and all liabilities, suits, claims,
         losses, damages, judgments, and costs (including reasonable attorneys'
         fees) (collectively "Claims") brought by a third party against PHILIPS
         for infringement of any patent, copyright. trade secret, trademark or
         other legally enforceable proprietary right of any third party to the
         extent directly arising out of (i) the DOCSIS MAC, as delivered to
         PHILIPS, or the use of the DOCSIS MAC in accordance with the license
         rights granted herein; (ii) any services performed by PCOM pursuant to
         this Agreement, or (iii) any materials furnished by PCOM hereunder.

8.2      The foregoing obligation is subject to the following conditions:

         (i) PCOM shall have the sole right to defend and/or settle any such
         Claim;

         (ii) PHILIPS shall give PCOM immediate notice of any such asserted
         Claim and reasonable assistance required by PCOM in defending or
         settling such Claim; and

         (iii) PCOM shall have no liability associated with any infringement or
         alleged infringement arising out of the combination of the DOCSIS MAC
         with other components if such infringement would have been avoided in
         the absence of such combination, unless such combination was specified
         by PCOM. The foregoing states PCOM's sole and exclusive liability for
         intellectual property infringement.

8.3      INDEMNIFICATION BY PHILIPS. PHILIPS shall indemnify, hold harmless and
         defend PCOM from and against any and all liabilities, suits, claims,
         losses, damages, judgments, and costs (including reasonable attorneys'
         fees) (collectively "Claims") brought by a third party against PCOM for
         infringement of any patent, copyright. trade secret, trademark or other
         legally enforceable proprietary right of any third party to the extent
         directly arising out of (i) solely the Product(s) in which a DOCSIS MAC
         is incorporated, exclusive of the incorporated DOCSIS MAC; and (ii) any
         modifications made to the DOCSIS MAC by Philips and/or its Affiliates
         if such infringement would not have occurred in the DOCSIS MAC without
         such modification.

                                       9

<PAGE>

8.4      The obligation set forth in 8.3 is subject to the following conditions:

         (i) PHILIPS shall have the sole right to defend and/or settle any such
         Claim;

         (ii) PCOM shall give PHILIPS immediate notice of any such asserted
         Claim and reasonable assistance required by PHILIPS in defending or
         settling such Claim; and

         (iii) PHILIPS shall have no liability associated with any infringement
         or alleged infringement arising out of the DOCSIS MAC as provided by
         PCOM to PHILIPS, or out of the combination of the DOCSIS MAC with other
         components, except for the Product itself, if such infringement would
         have been avoided in absence of such combination.

The foregoing states PHILIP's sole and exclusive liability for intellectual
property infringement.

9.0   WARRANTIES

9.1      OWNERSHIP. PCOM warrants that it is the owner of the DOCSIS MAC as
         delivered to PHILIPS and the owner of all intellectual property rights
         associated with and/or subsisting in the DOCSIS MAC as delivered to
         PHILIPS.

9.2      OPERATION. PCOM warrants that the DOCSIS MAC delivered to PHILIPS shall
         operate according to the specifications provided, and that there are no
         known defects of which PCOM has not made PHILIPS aware. Notwithstanding
         the foregoing, PCOM shall not be liable on account of any breach of
         warranty claims asserted by customers or purchasers of PHILIPS. Except
         for PCOM's indemnification obligations under Section 8, PHILIPS shall
         be responsible for any commercial liabilities arising out of its sale
         of its products to PHILIPS' customers.

10.0   LIMITATION OF LIABILITIES

10.1     Neither party shall be liable for any incidental, consequential.
         special, or punitive damages arising out of this Agreement or the
         breach thereof (including, but not limited to, lost profits), and any
         such liabilities are expressly disclaimed.

11.0   SUPPORT SERVICES

11.1     At PHILIPS' request, PCOM shall provide reasonable assistance to
         PHILIPS in implementing the DOCSIS MAC into PHILIPS Products. At
         PHILIPS' request, PCOM shall use reasonable commercial efforts to
         provide PHILIPS with the necessary knowledge and information for,
         and otherwise assist PHILIPS in, manufacturing or having made a
         PHILIPS Product incorporating the DOCSIS MAC. If PCOM's assistance
         in providing engineering support for designs not agreed to in this
         Agreement or cable modem reference design, PHILIPS agrees to
         compensate PCOM at a rate of [***]. If PCOM's on-site presence is
         requested which has not been agreed to in

[***] Denotes language for which Vyyo has requested confidential treatment
      pursuant to the rules and regulations of the Securities Act of 1933, as
      amended.

                                       10
<PAGE>

         this Agreement, PHILIPS agrees to compensate PCOM for all reasonable
         travel and lodging expenses, subject to PHILIPS' prior approval.

12.0   TERM AND TERMINATION

12.1     TERM. This Agreement shall continue in effect unless terminated as set
         forth herein.

12.2     TERMINATION FOR BREACH. Either party may terminate this Agreement if
         the other party materially breaches the Agreement and breaching party
         fails to cure such breach within thirty days from receipt of written
         notice from the non-breaching party describing the breach.

12.3     TERMINATION FOR NON-PERFORMANCE. PHILIPS may terminate as provided
         under Section 5.5, upon thirty (30) days prior written notice.

12.4     TERMINATION UPON BANKRUPTCY. A party may terminate this Agreement if
         the other party (i) commences a voluntary case or other proceeding
         seeking liquidation, reorganization or other relief with respect to
         itself or its debts under any bankruptcy, insolvency or other similar
         law now or hereafter in effect, or (ii) an involuntary bankruptcy
         action or other such proceeding is commenced against it, and it is not
         dismissed from such involuntary action or proceeding within ninety (90)
         days from the commencement of such action or proceeding.

12.5     SURVIVAL AFTER TERMINATION. Except for termination of this Agreement
         under Section 12.2 based on PHILIPS' material breach of the Agreement
         and failure to cure as set forth in Section 12.2, the all licenses
         granted under this Agreement shall survive the termination of this
         Agreement.

12.6     MOST FAVORED PRICING. PHILIPS agrees to offer to PCOM the PHILIPS'
         Product(s) that incorporate the DOCSIS MAC at PHILIPS' most favored
         customer prices for such Product for the same or greater quantities
         under similar terms and conditions, provided that PCOM does not offer
         such products for resale as a standalone product.

12.7     RIGHT OF FIRST REFUSAL For a period of one year beginning on the
         Effective Date of this Agreement, in the event that PHILIPS decides to
         purchase from a third party (excluding PHILIPS' Affiliates) a DOCSIS
         1.2 MAC for use in cable modem applications, PHILIPS shall provide
         written notice to PCOM, and PCOM shall have a first right of refusal to
         offer PHILIPS a PCOM DOCSIS 1.2 MAC on identical terms and conditions
         offered by such third party. This provision shall not apply and
         specifically excludes (i) any DOCSIS 1.2 MAC provided by a customer for
         integration into a customer specific integrated circuit; (ii) any case
         whereby a customer wishes to incorporate its own DOCSIS 1.2 MAC with
         other PHILIPS intellectual property into an applications specific
         standard product; and (iii) all other PHILIPS entities and Affiliates
         who may wish to purchase a DOCSIS 1.2 MAC for a wireless application.

                                       11

<PAGE>

13   GENERAL

13.1     ASSIGNMENT. Subject to Section 6.2 and the last sentence of this
         Section 15.1, neither party may assign this Agreement nor any right or
         obligation hereunder without the prior written consent of the other
         party which consent will not be unreasonably withheld. PHILIPS may
         assign this Agreement to any Affiliate or wholly-owned subsidiary of
         PHILIPS, without the prior written consent of PCOM.

13.2     WAIVER. No delay in exercising, no course of dealing with respect to,
         or no partial exercise of any right or remedy hereunder shall
         constitute a waiver of any other right or remedy, or future exercise
         thereof.

13.3     SEVERABILITY. If any term or provision of this Agreement should be
         declared invalid by a court of competent jurisdiction, (i) the
         remaining terms and provisions of this Agreement shall be unimpaired,
         and (ii) the invalid term or provision shall be replaced by such valid
         term or provision as comes closest to the intention underlying the
         invalid term or provision. Where the invalid term or provision cannot
         be replaced by a valid term or provision which comes closest to the
         intention underlying the invalid term or provision, the invalid term or
         provision shall be severed from the remaining terms, conditions and
         provisions which shall continue to be valid to the fullest extent
         permitted by law.

13.4     NOTICE. Written notice by either party to the other shall be deemed to
         have been given when received via certified mail by the intended
         recipient thereof at its address shown on the first page hereof, or to
         such other address as such intended recipient may specify in a written
         notice pursuant hereto.

13.5     GOVERNING LAW. This Agreement shall be governed in all respects by the
         laws of the United States of America and the State of California,
         excluding the application of its conflict of laws rules. This Agreement
         shall be considered made and entered into in the State of California.
         The parties agree that the United Nations Convention on Contracts for
         the International Sale of Goods is specifically excluded from
         application to this Agreement. Any lawsuits or other legal actions
         brought to enforce this Agreement, or otherwise related to this
         Agreement shall be brought exclusively in the federal and state courts
         within the State of California.

13.6     ARBITRATION. Any unresolved disputes concerning this Agreement shall be
         submitted to arbitration in accordance with the then prevailing rules
         of the American Arbitration Association (i) before an arbitrator agreed
         upon by the parties or (ii) if the parties cannot agree upon an
         arbitrator within thirty (30) days, before three arbitrators selected
         pursuant to the rules of the American Arbitration Association. The site
         of the arbitration shall be San Francisco, CA. The arbitrator(s) may
         award attorneys' fees and cost as part of the award. The award of the
         arbitrator shall be binding and may be entered as a judgment in
13.7     any court of competent jurisdiction. Either Party may seek injunctive
         relief from a court of competent jurisdiction if to protect the
         legitimate interest of the Party seeking such relief.

                                       12

<PAGE>

13.7     FORCE MAJEURE. Each party shall be excused for failures and delays in
         performance caused by war, any laws, proclamations, ordinances, or
         regulations, or strikes, lockouts, floods, fires, explosions, acts of
         God, or other catastrophes beyond its reasonable control and without
         the fault of such party. This prevision shall not, however, release
         such party from using its reasonable best efforts to avoid or remove
         all such causes, and such party shall continue performance hereunder
         with the utmost dispatch whenever such causes are removed. Any party
         claiming any such excuse for failure or delay in performance shall give
         prompt written notice thereof to the other party, and neither party
         shall be required to perform hereunder during the period of such
         excused failure or delay in performance except as otherwise provided
         herein.

13.8     SURVIVAL. Sections 1, 4, 5, 6, 7, 8, 9, 10, and 13 shall survive the
         expiration or termination of the Agreement.

This Agreement together with the Exhibits hereto, constitutes the entire
Agreement between the parties with respect to the subject matter hereof and
supersedes in all respects all prior proposals, negotiations, conversations,
discussions and agreements between the parties. This Agreement may not be
modified or amended except by express written amendment signed by authorized
representatives of both parties

IN WITNESS WHEREOF, the parties hereto, through their duly authorized officers,
have executed this Agreement.

                                       13

<PAGE>

ACCEPTED AND AGREED TO:

PHASECOM LTD.                                   PHILIPS SEMICONDUCTORS INC,

/s/ Menashe Shahar                                  /s/
-----------------------------------------       --------------------------------
Signature                                       Signature

Menashe Shahar
-----------------------------------------       --------------------------------
Name                                            Name

Vice President, Research & Development          --------------------------------
Chief Technology Officer                        Title
-----------------------------------------
Title
                                                --------------------------------
November 14, 1993                               Date
-----------------------------------------
Date

PHASECOM INC.

/s/ Ilan Judkiewicz
-----------------------------------------
Signature

Ilan Judkiewicz
-----------------------------------------
Name

Chief Financial Officer
-----------------------------------------
Title

December 14, 1999
-----------------------------------------
Date

                                       14

<PAGE>

                                    EXHIBIT A

                             DOCSIS 1.0 MAC SOFTWARE

Upon the signing of the licensing agreement and delivery of DOCSIS MAC 1.0,
including:

     a)   1.0 MAC specification excluding BPI with detailed design documentation
          on each hardware block
     b)   VHDL source code
     c)   The test benches
     d)   All applications source code for 1.0 cable modem running under Windows
          95
     e)   1.0 MAC FPGA
     f)   PCOM cable modem 1.0 prototype
     g)   1.0 software sources and 1.0 software documentation as described in
          Appendix A.
     h)   Unit test software for 1.0 software.
     i)   Engineer visit (1 hardware engineer, 1 software engineers, for 2 weeks
          in Sunnyvale)
     j)   Sign-off of MAC 1.1 feature list
     k)   Full Architecture Specifications for 1.1 MAC
     l)   Full software Architecture Specifications and requirements
          specification for 1.1 MAC

                                       15

<PAGE>

                                    EXHIBIT B

                                  SCOPE OF WORK

                                       FOR

                             DOCSIS 1.1 MAC SOFTWARE

Delivery of PHILIPS DOCSIS MAC 1.1 firmware and VHDL sources, including:

     a)   Simulation test bench
     b)   Test vectors (Stimulus and simulation output files)

Delivery of PHILIPS DOCSIS MAC 1.1 Synthesis for P&R and QT

     a)   Synthesis scripts
     b)   Scripts for timing driven place and route
     c)   Gate-level simulated with timing Netlist for P&R
     d)   List of all critical paths
     e)   Test vectors for simulation of critical path

The foregoing activity will be performed by PHILIPS and the output files will be
checked by PCOM using PCOM's tools. PHILIPS is required to provide the output
VHDL model of the PHILIPS DOCSIS MAC1.1 (VITAL libraries with SDF).

QT Verification

     a)   Send an engineer to Sunnyvale for 4 weeks for QT simulation (10/18 to
          11/15)

Post P&R and timing verification

     a)   PCOM will provide telephone support for this activity and will be
          ready to send an engineer to Sunnyvale for two (2) weeks (11/15 to
          12/1) if reasonably deemed necessary.

Full PHILIPS 1.1 MAC software

     a)   Test software
     b)   Full 1.1 MAC and applications source code
     c)   1.1 MAC specification with detailed design documentation on each
          hardware block
     d)   1.1 Software: requirements spec, design spec, test spec, test results,
          bug list,
     e)   Fully tested on PCOM evaluation board all PCOM cable modem application
          software.

                                       16

<PAGE>

Silicon validation

     a)   6 weeks on call, at site if needed starting 2/15/00

Cable Labs certification

     a)   4 weeks on call targeted for wave 2 (May 2000)

PCOM shall provide to PHILIPS technical support for bug fixes and maintenance
for a one year period after silicon validation

-    on-call support with 24-hour response time and guaranteed engineering
     resource allocation , excluding weekends and holidays.<PAGE>

                                                                     Exhibit 4.3

                            DATED 25TH NOVEMBER, 1999

                                  MERIDIAN B.V.

                                     - AND -

                                   ADECCO S.A.

                                     - AND -

                        CHASE MANHATTAN TRUSTEES LIMITED

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

                                   TRUST DEED

                                  CONSTITUTING

                                (EURO)360,030,000

                      1.50 PER CENT. GUARANTEED CONVERTIBLE
                                 NOTES DUE 2004

                 (WITH AUTHORITY TO ISSUE FURTHER NOTES, BONDS,
                      DEBENTURES OR OTHER DEBT INSTRUMENTS)

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

                                 FOR THE ISSUER
                      AND THE GUARANTOR AS TO ENGLISH LAW:

                              LINKLATERS & ALLIANCE
                                 ONE SILK STREET
                                 LONDON EC2Y 8HQ

                                 FOR THE TRUSTEE
                               AS TO ENGLISH LAW:

                                  ALLEN & OVERY
                                 ONE NEW CHANGE
                                 LONDON EC4M 9QQ

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

CLAUSE                                                                          PAGE

<S>      <C>                                                                       <C>
1.       DEFINITIONS................................................................1
2.       COVENANT TO REPAY AND TO PAY INTEREST ON ORIGINAL NOTES....................8
3.       FORM AND ISSUE OF ORIGINAL NOTES AND ORIGINAL COUPONS.....................10
4.       FEES, DUTIES AND TAXES....................................................11
5.       COVENANT OF COMPLIANCE....................................................11
6.       CANCELLATION OF SECURITIES AND RECORDS....................................12
7.       GUARANTEE.................................................................13
8.       COVENANTS AND PROVISIONS RELATING TO THE CONVERSION RIGHTS................14
9.       ENFORCEMENT...............................................................19
10.      PROCEEDINGS, ACTION AND INDEMNIFICATION...................................20
11.      APPLICATION OF MONEYS.....................................................20
12.      NOTICE OF PAYMENTS........................................................21
13.      INVESTMENT BY TRUSTEE.....................................................21
14.      PARTIAL PAYMENTS..........................................................21
15.      COVENANTS BY THE ISSUER AND THE GUARANTOR.................................21
16.      REMUNERATION AND INDEMNIFICATION OF TRUSTEE...............................24
17.      SUPPLEMENT TO TRUSTEE ACT 1925............................................26
18.      TRUSTEE'S LIABILITY.......................................................29
19.      TRUSTEE CONTRACTING WITH THE ISSUER AND THE GUARANTOR.....................29
20.      WAIVER, AUTHORISATION AND DETERMINATION...................................30
21.      HOLDER OF DEFINITIVE BEARER SECURITY ASSUMED TO BE
         COUPONHOLDER..............................................................30
22.      SUBSTITUTION..............................................................31
23.      CURRENCY INDEMNITY........................................................32
24.      NEW TRUSTEE...............................................................33
25.      TRUSTEE'S RETIREMENT AND REMOVAL..........................................33
26.      TRUSTEE'S POWERS TO BE ADDITIONAL.........................................34
27.      NOTICES...................................................................34
28.      GOVERNING LAW.............................................................35
29.      SUBMISSION TO JURISDICTION................................................35
30.      COUNTERPARTS..............................................................35

SCHEDULES

1.       FORM OF ORIGINAL TEMPORARY GLOBAL NOTE....................................36
         FORM OF ORIGINAL PERMANENT GLOBAL NOTE....................................47

2.       FORM OF DEFINITIVE ORIGINAL NOTE..........................................54
         FORM OF ORIGINAL COUPON...................................................56
         CONDITIONS OF THE ORIGINAL NOTES..........................................58

3.       REGISTER AND TRANSFER OF REGISTERED SECURITIES............................60

4.       PROVISIONS FOR MEETINGS OF HOLDERS........................................62

</TABLE>

<PAGE>

THIS TRUST DEED is made on 25TH NOVEMBER, 1999 BETWEEN:

(1)      MERIDIAN B.V., a company incorporated under the laws of The
         Netherlands, whose registered office is at Savannahweg 71, 3542 AW
         Utrecht, The Netherlands (the "ISSUER" or the "COMPANY");

(2)      ADECCO S.A., a company incorporated under the laws of Switzerland,
         whose registered office is at 1275 Cheserex, Switzerland (the
         "GUARANTOR"); and

(3)      CHASE MANHATTAN TRUSTEES LIMITED, a company incorporated under the laws
         of England and Wales, whose principal office is at Trinity Tower, 9
         Thomas More Street, London E1 9YT, England (the "TRUSTEE", which
         expression shall, wherever the context so admits, include such company
         and all other persons or companies for the time being the trustee or
         trustees of these presents) as trustee for the Holders and
         Couponholders (each as defined below).

WHEREAS:

(1)      By a resolution of the Board of Directors of the Issuer passed as of
         19th November, 1999 the Issuer has resolved to issue (EURO)360,030,000
         1.50 per cent. Guaranteed Convertible Notes due 2004 to be constituted
         by this Trust Deed.

(2)      By a resolution of the Board of Directors of the Guarantor passed as of
         22nd October, 1999 the Guarantor has agreed to guarantee the said Notes
         and to enter into certain covenants as set out in this Trust Deed.

(3)      The Trustee has agreed to act as trustee of these presents for the
         benefit of the Holders and Couponholders upon and subject to the terms
         and conditions of these presents.

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

1.       DEFINITIONS

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

         "AGENCY AGREEMENT" means, in relation to the Securities of any series,
         the agreement appointing the initial Paying Agents and Conversion
         Agents and, if applicable, Registrar and/or Transfer Agents in relation
         to such Securities and any other agreement for the time being in force
         appointing Successor paying agents and/or conversion agents and, if
         applicable, registrars and/or transfer agents in relation to such
         Securities, or in connection with their duties, the terms of which have
         previously been approved in writing by the Trustee, together with any
         agreement for the time being in force amending or modifying with the
         prior written approval of the Trustee any of the aforesaid agreements
         in relation to such Securities;

         "AGENT BANK" means, in relation to the Securities of any relevant
         series, the bank initially appointed as agent bank in relation to such
         Securities by the Issuer and the Guarantor pursuant to the relative
         Agent Bank Agreement or, if applicable, any Successor agent bank in
         relation to such Securities;

         "AGENT BANK AGREEMENT" means, in relation to the Securities of any
         relevant series, the agreement (which may, but need not, be the
         relative Agency Agreement) appointing the initial Agent Bank in
         relation to such Securities and any other agreement for the time being
         in force appointing any Successor agent bank in relation to such
         Securities, or in connection with its duties, the terms of which have
         previously been approved in writing by the Trustee,

<PAGE>
                                       2

         together with any agreement for the time being in force amending or
         modifying with the prior written approval of the Trustee any of the
         aforesaid agreements in relation to such Securities;

         "ALTERNATIVE STOCK EXCHANGE" has the meaning ascribed thereto in
         Condition 6(f);

         "APPOINTEE" means any attorney, manager, agent, delegate or other
         person appointed by the Trustee under these presents;

         "AUDITORS" means the auditors for the time being of the Guarantor or,
         in the event of their being unable or unwilling promptly to carry out
         any action requested of them pursuant to the provisions of these
         presents, such other firm of accountants as may be nominated by the
         Guarantor and approved by the Trustee or, in default of such nomination
         and/or approval, as may be nominated by the Trustee, in each case for
         the purposes of these presents;

         "AUTHORISED SIGNATORY" means any Director of the Issuer or, as the case
         may be, the Guarantor and any other person for the time being
         authorised by the Issuer or, as the case may be, the Guarantor to sign
         documents and otherwise act on behalf of the Issuer or, as the case may
         be, the Guarantor and notified as such in writing to the Trustee;

         "BEARER SECURITIES" means those of the Securities which are for the
         time being in bearer form;

         "CEDELBANK" means Cedelbank, a limited liability company (SOCIETE
         ANONYME) organised under Luxembourg law;

         "CONDITIONS" means:

         (i)      in relation to the Original Notes, the Conditions in the form
                  set out in the Second Schedule as the same may from time to
                  time be modified in accordance with these presents and any
                  reference in these presents to a particular specified
                  Condition or paragraph of a Condition shall in relation to the
                  Original Notes be construed accordingly; and

         (ii)     in relation to the Further Securities of any series, the
                  Conditions in the form set out or referred to in the
                  supplemental trust deed relating thereto as the same may from
                  time to time be modified in accordance with these presents and
                  any reference in these presents to a particular specified
                  Condition or paragraph of a Condition shall in relation to the
                  Further Securities of any series, unless either referring
                  specifically to a particular specified Condition or paragraph
                  of a Condition of such Further Securities or the context
                  otherwise requires, be construed as a reference to the
                  provisions (if any) in the Conditions thereof which correspond
                  to the provisions of the particular specified Condition or
                  paragraph of a Condition of the Original Notes;

         "CONVERSION AGENTS" means, in relation to the Securities of any series,
         the several institutions (including where the context permits the
         Principal Conversion Agent) at their respective specified offices
         initially appointed as paying agents in relation to such Securities by
         the Issuer and the Guarantor pursuant to the relative Agency Agreement
         and/or, if applicable, any Successor paying agents in relation to such
         Securities;

         "CONVERSION DATE", "CONVERSION NOTICE", "CONVERSION PERIOD",
         "CONVERSION PRICE" and "CONVERSION Right" all have the meanings set out
         in Condition 6;

         "COUPONHOLDERS" means the several persons who are for the time being
         holders of the Coupons;

<PAGE>
                                       3

         "COUPONS" means the bearer interest coupons appertaining to the Bearer
         Securities in definitive form or, as the context may require, a
         specific number thereof and includes any replacements for Coupons
         issued pursuant to Condition 13 and, where the context so permits, the
         Talons;

         "EMPLOYEE SHARE SCHEME" means any scheme for the issue of Shares or
         other securities to employees or executive or non-executive directors
         of the Guarantor or any Subsidiary of the Guarantor and which has been
         approved by the board of directors of such company;

         "EQUIVALENT AMOUNT" has the meaning set out in Condition 6(b)(iii);

         "EUROCLEAR" means Morgan Guaranty Trust Company of New York, Brussels
         office, as operator of the Euroclear System;

         "EVENT OF DEFAULT" means any of the conditions, events or acts provided
         in Condition 9 to be events upon the happening of which the Securities
         of any series 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 20 of
         the Fourth Schedule;

         "FURTHER SECURITIES" means notes, bonds, debentures or other debt
         instruments (whether in bearer or registered form) of the Issuer
         constituted by a trust deed supplemental to this Trust Deed pursuant to
         Clause 2(D) or the principal amount thereof for the time being
         outstanding or as the context may require a specific number thereof and
         includes any replacements for Further Securities issued pursuant to
         Condition 13 and, where applicable, any Global Security issued in
         respect thereof;

         "GLOBAL SECURITY" means the Original Temporary Global Note and/or the
         Original Permanent Global Note and/or any other global note, bond,
         debenture or other debt instrument issued in respect of the Further
         Securities of any series;

         "HOLDERS" means the several persons who are for the time being holders
         of the Securities (being, in the case of Bearer Securities, the bearers
         thereof and, in the case of Registered Securities, the several persons
         whose names are entered in the register of holders of the Registered
         Securities as the holders thereof) which expression shall, whilst any
         Global Security remains outstanding, mean in relation to the Securities
         represented thereby each person who is for the time being shown in the
         records of Euroclear or of Cedelbank as the holder of a particular
         principal amount of such Securities (in which regard any certificate or
         other document issued by Euroclear or Cedelbank as to the principal
         amount of Securities represented by a Global Security standing to the
         account of any person shall be conclusive and binding for all purposes)
         for all purposes other than with respect to the payment of principal,
         premium (if any) and interest on such Securities, the right to which
         shall be vested, as against the Issuer and the Guarantor, solely in the
         bearer of such Global Security in accordance with and subject to its
         terms and the terms of these presents; and the words "HOLDER" and
         "HOLDERS" and related expressions shall (where appropriate) be
         construed accordingly;

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

         "OLSTEN OFFER" means the offer by the Guarantor relating to the
         acquisition of Olsten Corporation set out in a draft Registration
         Statement on Form F-4, filed with the United States

<PAGE>
                                       4

         Securities and Exchange Commission on 7th October, 1999, as such offer
         may be amended from time to time;

         "ORIGINAL COUPONHOLDERS" means the several persons who are for the time
         being holders of the Original Coupons;

         "ORIGINAL COUPONS" means the Coupons appertaining to the Original Notes
         in definitive form;

         "ORIGINAL NOTEHOLDERS" means the several persons who are for the time
         being holders of the Original Notes;

         "ORIGINAL NOTES" means the notes in bearer form comprising
         (EURO)360,030,000 1.50 per cent. Guaranteed Convertible Notes due 2004
         of the Issuer hereby constituted or the principal amount thereof for
         the time being outstanding or, as the context may require, a specific
         number thereof and includes any replacements for Original Notes issued
         pursuant to Condition 13 and (except for the purposes of Clause 3) the
         Original Temporary Global Note and the Original Permanent Global Note;

         "ORIGINAL PERMANENT GLOBAL NOTE" means the permanent global note in
         respect of the Original Notes to be issued pursuant to Clause 3(C) in
         the form or substantially in the form set out in the First Schedule;

         "ORIGINAL TEMPORARY GLOBAL NOTE" means the temporary global note in
         respect of the Original Notes to be issued pursuant to Clause 3(A) in
         the form or substantially in the form set out in the First Schedule;

         "OUTSTANDING" means, in relation to the Securities, all the Securities
         issued other than:

         (a)      those Securities which have been redeemed pursuant to these
                  presents;

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

         (c)      those Securities which have been purchased and cancelled in
                  accordance with Condition 8;

         (d)      those Securities which have become void under Condition 10;

         (e)      those Securities in respect of which the Conversion Rights
                  have been duly exercised in accordance with these presents;

         (f)      those mutilated or defaced Securities which have been
                  surrendered and cancelled and in respect of which replacements
                  have been issued pursuant to Condition 13;

         (g)      (for the purpose only of ascertaining the principal amount of
                  the Securities outstanding and without prejudice to the status
                  for any other purpose of the relevant Securities) those
                  Securities which are alleged to have been lost, stolen or
                  destroyed and in respect of which replacements have been
                  issued pursuant to Condition 13;

<PAGE>
                                       5

         (h)      any Global Security to the extent that it shall have been
                  exchanged for another Global Security in respect of the
                  Securities of the relevant series or for the Securities of the
                  relevant series in definitive form pursuant to its provisions;
                  and

         (i)      those Bearer Securities which have been exchanged for
                  Registered Securities and, where applicable, VICE VERSA and
                  which have been cancelled or, if permitted by the Conditions
                  of such Securities, are for the time being retained by or on
                  behalf of the Issuer, in each case pursuant to the provisions
                  of these presents;

         PROVIDED THAT for each of the following purposes, namely:

         (i)      the right to attend and vote at any meeting of the Holders or
                  any of them;

         (ii)     the determination of how many and which Securities are for the
                  time being outstanding for the purposes of Clause 10(A),
                  Conditions 9 and 11 and paragraphs 2, 5, 6 and 9 of the Fourth
                  Schedule;

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

         (iv)     the determination by the Trustee whether any event,
                  circumstance, matter or thing is, in its opinion, materially
                  prejudicial to the interests of the Holders or any of them,

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

         "PAYING AGENTS" means, in relation to the Securities of any series, the
         several institutions (including where the context permits the Principal
         paying Agent) at their respective specified offices initially appointed
         as paying agents in relation to such Securities by the Issuer and the
         Guarantor pursuant to the relative Agency Agreement and/or, if
         applicable, any Successor paying agents in relation to such Securities;

         "POTENTIAL EVENT OF DEFAULT" means any condition, event or act which,
         with the lapse of time and/or the issue, making or giving of any
         notice, certification, declaration, demand, determination and/or
         request and/or the taking of any similar action and/or the fulfilment
         of any similar condition, would constitute an Event of Default;

         "PRINCIPAL PAYING AGENT" means, in relation to the Securities of any
         series, the institution at its specified office initially appointed as
         principal paying agent in relation to such Securities by the Issuer and
         the Guarantor pursuant to the relative Agency Agreement or, if
         applicable, any Successor principal paying agent in relation to such
         Securities;

         "PRINCIPAL CONVERSION AGENT" means, in relation to the Securities of
         any series, the institution at its specified office initially appointed
         as principal conversion agent in relation to such Securities by the
         Issuer and the Guarantor pursuant to the relative Agency Agreement or,
         if applicable, any Successor principal conversion agent in relation to
         such Securities;

         "REFERENCE BANKS" means, in relation to the Securities of any relevant
         series, the several banks initially appointed as reference banks in
         relation to such Securities by the Issuer and the Guarantor and
         referred to in the Conditions of such Securities and/or, if applicable,
         any Successor reference banks in relation to such Securities;

<PAGE>
                                       6

         "REGISTERED SECURITIES" means those of the Securities which are for the
         time being in registered form;

         "REGISTRAR" means, in relation to the Securities of any relevant series
         (being, or which are exchangeable for, Registered Securities), the
         institution at its specified office initially appointed as registrar in
         relation to such Securities by the Issuer and the Guarantor pursuant to
         the relative Agency Agreement or, if applicable, any Successor
         registrar in relation to such Securities;

         "REPAY", "REDEEM" and "PAY" shall each include both the others and
         cognate expressions shall be construed accordingly;

         "SECURITIES" means, as the context may require, the Original Notes
         and/or any Further Securities and/or any series thereof;

         "SHARES" has the meaning set out in Condition 6;

         "SHAREHOLDER" means the person in whose name a Share is registered;

         "SUBSIDIARY" means any company which is for the time being a subsidiary
         (within the meaning of Section 736 of the Companies Act 1985 of Great
         Britain);

         "SUCCESSOR" means, in relation to the Agent Bank, the Principal Paying
         Agent, the Principal Conversion Agent, the other Paying Agents and
         Conversion Agents, the Reference Banks, the Registrar and the Transfer
         Agents, any successor to any one or more of them in relation to the
         Securities of the relevant series which shall become such pursuant to
         the provisions of these presents, the relative Agent Bank Agreement
         and/or the relative Agency Agreement (as the case may be) and/or such
         other or further agent bank, principal paying agent, principal
         conversion agent, paying agents, conversion agents, reference banks,
         registrar and/or transfer agents (as the case may be) in relation to
         such Securities as may (with the prior approval of, and on terms
         previously approved by, the Trustee in writing) from time to time be
         appointed as such, and/or, if applicable, such other or further
         specified offices (in the former case being within the same city as
         those for which they are substituted) as may from time to time be
         nominated, in each case by the Issuer and, if applicable, the
         Guarantor, and (except in the case of the initial appointments and
         specified offices made under and specified in the Conditions, the
         relative Agent Bank Agreement and/or the relative Agency Agreement, as
         the case may be) notice of whose appointment or, as the case may be,
         nomination has been given to the relevant Holders pursuant to Clause
         15(xiii) in accordance with Condition 14;

         "TALONS" means the talons appertaining to, and exchangeable in
         accordance with the provisions therein contained for further Coupons
         appertaining to, the Bearer Securities in definitive form of any
         relevant series and includes any replacements for Talons issued
         pursuant to Condition 13;

         "THE STOCK EXCHANGE" means, in relation to the Securities of any
         relevant series, the stock exchange or exchanges (if any) on which such
         Securities are for the time being quoted or listed;

         "THESE PRESENTS" means this Trust Deed and the Schedules and any trust
         deed supplemental hereto and the Schedules (if any) thereto and the
         Securities, the Coupons and the Conditions, all as from time to time
         modified in accordance with the provisions herein or therein contained;

         "TRANSFER AGENTS" means, in relation to the Securities of any relevant
         series (being, or which are exchangeable for, Registered Securities),
         the institutions at their respective specified offices initially
         appointed as transfer agents in relation to such Securities by the
         Issuer and the

<PAGE>
                                       7

         Guarantor pursuant to the relative Agency Agreement and/or, if
         applicable, any Successor transfer agents in relation to such
         Securities;

         "TRUST CORPORATION" means a corporation entitled by rules made under
         the Public Trustee Act 1906 of Great Britain or entitled pursuant to
         any other comparable legislation applicable to a trustee in any other
         jurisdiction to carry out the functions of a custodian trustee;

         words denoting the singular shall include the plural and VICE VERSA;

         words denoting one gender only shall include the other genders; and

         words denoting persons only shall include firms and corporations and
         VICE VERSA.

(B)      (i)      All references in these presents to principal and/or
                  premium and/or interest in respect of the Securities or to any
                  moneys payable by the Issuer and/or the Guarantor under these
                  presents shall be deemed to include a reference to any
                  additional amounts which may be payable under the Conditions.

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

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

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

         (v)      All references in these presents to taking proceedings against
                  the Issuer and/or the Guarantor shall be deemed to include
                  references to proving in the winding up of the Issuer and/or
                  the Guarantor (as the case may be).

         (vi)     All references in these presents to Euroclear and/or Cedelbank
                  shall be deemed to include references to any other clearing
                  system as is approved by the Trustee.

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

         (viii)   References to any issue or offer to Shareholders "as a class"
                  or "by way of rights" shall be taken to be references to an
                  issue or offer to all or substantially all of such holders
                  other than holders to whom, by reason of the laws of any
                  territory or requirements of any recognised regulatory body or
                  any other stock exchange in any territory or in connection
                  with fractional entitlements, it is determined not to make
                  such issue or offer.

         (ix)     All references in these presents involving compliance by the
                  Trustee with a test of reasonableness shall be deemed to
                  include a reference to a requirement that such reasonableness
                  shall be determined by reference solely to the interests of
                  the holders of the Securities of the relevant one or more
                  series as a class.

<PAGE>
                                       8

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

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

2.       COVENANT TO REPAY AND TO PAY INTEREST ON ORIGINAL NOTES

(A)      THE aggregate principal amount of the Original Notes is limited up to
         (EURO)360,030,000.

(B)      The Issuer covenants with the Trustee that it will, in accordance with
         and subject to these presents, on the due date for the final maturity
         of the Original Notes provided for in the Conditions, or on such
         earlier date as the same or any part thereof may become due and
         repayable thereunder, pay or procure to be paid unconditionally to or
         to the order of the Trustee in euro in immediately available funds the
         principal amount of the Original Notes repayable on that date and shall
         in the meantime and until such date (both before and after any judgment
         or other order of a court of competent jurisdiction) or until the whole
         of the Original Notes shall have been converted pay or procure to be
         paid unconditionally to or to the order of the Trustee as aforesaid
         interest (which shall accrue from day to day) on the principal amount
         of the Original Notes at the rate of 1.50 per cent. per annum payable
         annually in arrear on 25th November, the first such payment
         (representing a full year's interest) to be made on 25th November, 2000
         PROVIDED THAT:

         (i)      every payment of principal or interest in respect of the
                  Original Notes to or to the account of the Principal Paying
                  Agent in the manner provided in the Agency Agreement shall
                  operate in satisfaction PRO TANTO of the relative covenant by
                  the Issuer in this Clause except to the extent that there is
                  default in the subsequent payment thereof in accordance with
                  the Conditions to the Original Noteholders or Original
                  Couponholders (as the case may be);

         (ii)     in any case where payment of principal is not made to the
                  Trustee or the Principal Paying Agent on or before the due
                  date, interest shall continue to accrue on the principal
                  amount of the Original Notes (both before and after any
                  judgment or other order of a court of competent jurisdiction)
                  at the rates aforesaid up to and including the date which the
                  Trustee determines to be the date on and after which payment
                  is to be made to the Original Noteholders in respect thereof
                  as stated in a notice given to the Original Noteholders in
                  accordance with Condition 14 (such date to be not later than
                  30 days after the day on which the whole of such principal
                  amount, together with an amount equal to the interest which
                  has accrued and is to accrue pursuant to this proviso up to
                  and including that date, has been received by the Trustee or
                  the Principal Paying Agent); and

         (iii)    in any case where payment of the whole or any part of the
                  principal amount of any Original Note is improperly withheld
                  or refused upon due presentation thereof (other than in
                  circumstances contemplated by proviso (ii) above) interest
                  shall accrue on that principal amount payment of which has
                  been so withheld or refused (both before and after any
                  judgment or other order of a court of competent jurisdiction)
                  at the rate aforesaid from and including the date of such
                  withholding or refusal up to and including the date on which,
                  upon further presentation of the relevant Original Note,
                  payment of the full amount (including interest as aforesaid)
                  in euro payable in respect of such Original Note is made or
                  (if earlier) the seventh day after notice is given to the
                  relevant Original Noteholder (either individually or in
                  accordance with Condition 14) that the full amount (including
                  interest as aforesaid) in euro payable in

<PAGE>
                                       9

                  respect of such Original Note is available for payment,
                  provided that, upon further presentation thereof being duly
                  made, such payment is made.

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

         TRUSTEE'S REQUIREMENTS REGARDING PAYING AGENTS AND CONVERSION AGENTS

(C)      At any time after an Event of Default or a Potential Event of Default
         shall have occurred or the Securities shall otherwise have become due
         and repayable or the Trustee shall have received any money which it
         proposes to pay under Clause 11 to the Holders and/or Couponholders,
         the Trustee may:

         (i)      by notice in writing to the Issuer, the Guarantor, the
                  Principal Paying Agent, the Principal Conversion Agent, the
                  other Paying Agents, the other Conversion Agents, the
                  Registrar and the Transfer Agents require the Principal Paying
                  Agent, the Principal Conversion Agent, the other Paying
                  Agents, the other Conversion Agents, the Registrar and the
                  Transfer Agents pursuant to the Agency Agreement:

                  (a)      to act thereafter as Principal Paying Agent,
                           Principal Conversion Agent, Paying Agents, Conversion
                           Agents, Registrar and Transfer Agents respectively of
                           the Trustee in relation to payments to be made by or
                           on behalf of the Trustee under the provisions of
                           these presents MUTATIS MUTANDIS on the terms provided
                           in the Agency Agreement (save that the Trustee's
                           liability under any provisions thereof for the
                           indemnification, remuneration and payment of
                           out-of-pocket expenses of the Paying Agents, the
                           Conversion Agents, the Registrar and the Transfer
                           Agents shall be limited to the amounts for the time
                           being held by the Trustee on the trusts of these
                           presents relating to the relative Securities and
                           available for such purpose) and thereafter to hold
                           all Securities and Coupons and all sums, documents
                           and records held by them in respect of Securities and
                           Coupons on behalf of the Trustee; or

                  (b)      to deliver up all Securities and Coupons and all
                           sums, documents and records held by them in respect
                           of Securities and Coupons to the Trustee or as the
                           Trustee shall direct in such notice provided that
                           such notice shall be deemed not to apply to any
                           documents or records which the relative Paying Agent,
                           the relative Conversion Agent, the Registrar or the
                           relative Transfer Agent, as the case may be is
                           obliged not to release by any law or regulation;
                           and/or

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

         FURTHER ISSUES

(D)      (i)      The Issuer shall be at liberty from time to time (but subject
                  always to the provisions of these presents) without the
                  consent of the Holders or Couponholders to create and issue
                  further notes, bonds, debentures or other debt instruments
                  (whether in bearer or registered form) either (a) ranking PARI
                  PASSU in all respects (or in all respects save for the first
                  payment of interest thereon), and so that the same shall be
                  consolidated and form a single series, with the Original Notes
                  and/or the Further Securities of any

<PAGE>
                                       10

                  series or (b) upon such terms as to interest, subordination
                  (if any), premium, conversion, redemption and otherwise as the
                  Issuer may at the time of issue thereof determine.

         (ii)     Any further notes, bonds, debentures or other debt instruments
                  which are to be created and issued pursuant to the provisions
                  of paragraph (i) above so as to form a single series with the
                  Original Notes and/or the Further Securities of any series
                  shall be constituted by a trust deed supplemental to this
                  Trust Deed and any other further notes, bonds, debentures or
                  other debt instruments which are to be created and issued
                  pursuant to the provisions of paragraph (i) above may (subject
                  to the consent of the Trustee) be constituted by a trust deed
                  supplemental to this Trust Deed. In any such case the Issuer
                  and the Guarantor shall prior to the issue of any further
                  notes bonds, debentures or other debt instruments to be so
                  constituted (being Further Securities) execute and deliver to
                  the Trustee a trust deed supplemental to this Trust Deed (in
                  relation to which all applicable stamp duties or other
                  documentation fees, duties or taxes have been paid and, if
                  applicable, duly stamped or denoted accordingly) and
                  containing a covenant by the Issuer in the form MUTATIS
                  MUTANDIS of Clause 2(B) in relation to the principal, premium
                  (if any) and interest in respect of such Further Securities
                  and such other provisions (whether or not corresponding to any
                  of the provisions contained in this Trust Deed) as the Trustee
                  shall require.

         (iii)    A memorandum of every such supplemental trust deed shall be
                  endorsed by the Trustee on this Trust Deed and by the Issuer
                  and the Guarantor on their duplicates of this Trust Deed.

         (iv)     Whenever it is proposed to create and issue any further notes,
                  bonds, debentures or other debt instruments the Issuer shall
                  give to the Trustee not less than 14 days' notice in writing
                  of its intention so to do stating the amount of further notes,
                  bonds, debentures or other debt instruments proposed to be
                  created and issued.

(E)      Any Further Securities not forming a single series with the Original
         Notes or Further Securities 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 sub-clause (C)
         of this Clause and of Clauses 4 to 23 (both inclusive) and 24(B) and
         the Third and Fourth Schedules shall apply MUTATIS MUTANDIS separately
         and independently to each series of the Securities and in such Clauses
         and Schedules the expressions "SECURITIES", "HOLDERS", "COUPONS",
         "COUPONHOLDERS" and "TALONS" shall be construed accordingly.

3.       FORM AND ISSUE OF ORIGINAL NOTES AND ORIGINAL COUPONS

(A)      THE Original Notes shall be represented initially by the Original
         Temporary Global Note which the Issuer shall issue to a bank depositary
         common to both Euroclear and Cedelbank on terms that such depositary
         shall hold the same for the account of the persons who would otherwise
         be entitled to receive the Original Notes in definitive form
         ("DEFINITIVE ORIGINAL NOTES") (as notified to such depositary by Credit
         Suisse First Boston (Europe) Limited on behalf of the Managers of the
         issue of the Original Notes) and the successors in title to such
         persons as appearing in the records of Euroclear and Cedelbank for the
         time being.

(B)      The Original Temporary Global Note shall be printed or typed in the
         form or substantially in the form set out in the First Schedule and may
         be a facsimile. The Original Temporary Global Note shall be in the
         aggregate principal amount of (EURO)360,030,000 and shall be signed
         manually or in facsimile by a person duly authorised by the Issuer on
         behalf of the Issuer and shall be authenticated by or on behalf of the
         Principal Paying Agent. The Original Temporary Global Note so executed
         and authenticated shall be a binding and valid obligation of the Issuer
         and title thereto shall pass by delivery.

<PAGE>
                                       11

(C)      The Issuer shall issue the Original Permanent Global Note in exchange
         for the Original Temporary Global Note in accordance with the
         provisions thereof. The Original Permanent Global Note shall be printed
         or typed in the form or substantially in the form set out in the First
         Schedule and may be a facsimile. The Original Permanent Global Note
         shall be in the aggregate principal amount of up to (EURO)360,030,000
         and shall be signed manually or in facsimile by a person duly
         authorised by the Issuer on behalf of the Issuer and shall be
         authenticated by or on behalf of the Principal Paying Agent. The
         Original Permanent Global Note so executed and authenticated shall be a
         binding and valid obligation of the Issuer and title thereto shall pass
         by delivery.

(D)      The Issuer shall issue the Definitive Original Notes (together with the
         unmatured Original Coupons attached) in exchange for the Original
         Permanent Global Note in accordance with the provisions thereof.

(E)      The Definitive Original Notes and the Original Coupons shall be to
         bearer in the respective forms or substantially in the respective forms
         set out in the Second Schedule and the Definitive Original Notes shall
         be issued in the denomination of (EURO)10,000 each (serially numbered)
         and shall be endorsed with the Conditions. Title to the Definitive
         Original Notes and the Original Coupons shall pass by delivery.

(F)      The Definitive Original Notes shall be signed manually or in facsimile
         by a person duly authorised by the Issuer on behalf of the Issuer and
         shall be authenticated by or on behalf of the Principal Paying Agent.

(G)      The Issuer may use the facsimile signature of any person who at the
         date such signature is affixed is a person duly authorised by the
         Issuer as referred to in sub-clauses (B), (C) and (F) above
         notwithstanding that at the time of issue of any of the Definitive
         Original Notes, the Original Temporary Global Note or the Original
         Permanent Global Note, as the case may be, he may have ceased for any
         reason to be so authorised. The Original Coupons shall not be signed.
         The Definitive Original Notes so executed and authenticated, and the
         Original Coupons, upon execution and authentication of the relevant
         Definitive Original Notes, shall be binding and valid obligations of
         the Issuer.

4.       FEES, DUTIES AND TAXES

         THE Issuer will pay any stamp, issue, registration, documentary and
         other fees, duties and taxes, including interest and penalties (a)
         payable in The Netherlands or the United Kingdom on or in connection
         with (i) the execution and delivery of these presents and (ii) the
         constitution and original issue of the Securities and the Coupons, (b)
         payable in Belgium or Luxembourg on or in connection with the
         constitution, execution, delivery and original issue of the Securities
         and the Coupons, (c) payable in The Netherlands, Switzerland or in the
         place of the Alternative Stock Exchange on or in connection with the
         allotment and issue and/or delivery of Shares on conversion and (d)
         payable in any jurisdiction on or in connection with any action taken
         by or on behalf of the Trustee or (where permitted under these presents
         so to do) any Holder or Couponholder to enforce, or to resolve any
         doubt concerning, or for any other purpose in relation to, these
         presents.

5.       COVENANT OF COMPLIANCE

         EACH of the Issuer and the Guarantor severally covenants with the
         Trustee that it will comply with and perform and observe all the
         provisions of these presents which are expressed to be binding on it.
         The Conditions shall be binding on the Issuer, the Guarantor, the
         Holders and the Couponholders. The Trustee shall be entitled to enforce
         the obligations of the Issuer and the Guarantor under the Securities
         and the Coupons as if the same were set out and contained in the trust
         deeds constituting the same, which shall be read and construed as one
         document with the Securities and the Coupons. The Trustee shall hold
         the benefit of

<PAGE>
                                       12

         this covenant upon trust for itself and the Holders and the
         Couponholders according to its and their respective interests.

6.       CANCELLATION OF SECURITIES AND RECORDS

(A)      THE Issuer shall procure that all Securities (i) redeemed or (ii)
         purchased for cancellation by or on behalf of the Issuer, the Guarantor
         or any other Subsidiary of the Guarantor or (iii) which, being
         mutilated or defaced, have been surrendered and replaced pursuant to
         Condition 13 or (iv) exchanged as provided in these presents or (v)
         converted as provided in these presents (together in each case with all
         unmatured Coupons attached thereto or delivered therewith) and all
         Coupons paid in accordance with the Conditions or which, being
         mutilated or defaced, have been surrendered and replaced pursuant to
         Condition 13 and all Talons exchanged in accordance with the Conditions
         for further Coupons shall forthwith be cancelled by or on behalf of the
         Issuer and a certificate stating:

         (a)      the aggregate principal amount of Securities which have been
                  redeemed or converted and the aggregate amounts in respect of
                  Coupons which have been paid;

         (b)      the serial numbers of such Securities in definitive form
                  distinguishing between Bearer Securities and Registered
                  Securities;

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

         (d)      the aggregate amount of interest paid (and the due dates of
                  such payments) on Global Securities and/or on Registered
                  Securities;

         (e)      the aggregate principal amount of Securities (if any) which
                  have been purchased by or on behalf of the Issuer, the
                  Guarantor or any other Subsidiary of the Guarantor and
                  cancelled and the serial numbers of such Securities in
                  definitive form and the total number (where applicable, of
                  each denomination) by maturity date of the Coupons attached
                  thereto or surrendered therewith;

         (f)      the aggregate principal amounts of Securities and the
                  aggregate amounts in respect of Coupons which have been so
                  exchanged or surrendered and replaced and the serial numbers
                  of such Securities in definitive form and the total number
                  (where applicable, of each denomination) by maturity date of
                  such Coupons;

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

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

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

(B)      The Issuer shall procure (i) that the Principal Paying Agent shall keep
         a full and complete record of all Securities and Coupons (other than
         serial numbers of Coupons) and of their

<PAGE>
                                       13

         redemption, conversion, purchase for cancellation by or on behalf of
         the Issuer, the Guarantor or any other Subsidiary of the Guarantor,
         cancellation, payment or exchange (as the case may be) and of all
         replacement securities or coupons or talons issued in substitution for
         lost, stolen, mutilated, defaced or destroyed Securities or Coupons
         (ii) that the Principal Paying Agent shall in respect of the Coupons of
         each maturity retain (in the case of Coupons other than Talons) until
         the expiry of 10 years from the Relevant Date in respect of such
         Coupons and (in the case of Talons) indefinitely either all paid or
         exchanged Coupons of that maturity or a list of the serial numbers of
         Coupons of that maturity still remaining unpaid or unexchanged and
         (iii) that such records and Coupons (if any) shall be made available to
         the Trustee at all reasonable times.

7.       GUARANTEE

(A)      THE Guarantor hereby irrevocably and unconditionally guarantees to the
         Trustee:

         (1)      the due and punctual payment in accordance with the provisions
                  of these presents of the principal of and premium (if any) and
                  interest on the Securities and of any other amounts payable by
                  the Issuer under these presents; and

         (2)      the due and punctual performance and observance by the Issuer
                  of each of the other provisions of these presents on the
                  Issuer's part to be performed or observed.

(B)      If the Issuer fails for any reason whatsoever punctually to pay any
         such principal, premium, interest or other amount, the Guarantor shall
         cause each and every such payment to be made as if the Guarantor
         instead of the Issuer were expressed to be the primary obligor under
         these presents and not merely as surety (but without affecting the
         nature of the Issuer's obligations) to the intent that the holder of
         the relevant Security or Coupon or the Trustee (as the case may be)
         shall receive the same amounts in respect of principal, premium,
         interest or such other amount as would have been receivable had such
         payments been made by the Issuer.

(C)      If any payment received by the Trustee or any Holder or Couponholder
         under the provisions of these presents shall (whether on the subsequent
         bankruptcy, insolvency or corporate reorganisation of the Issuer or,
         without limitation, on any other event) be avoided or set aside for any
         reason, such payment shall not be considered as discharging or
         diminishing the liability of the Guarantor and this guarantee shall
         continue to apply as if such payment had at all times remained owing by
         the Issuer and the Guarantor shall indemnify the Trustee and the
         Holders and/or Couponholders (as the case may be) in respect thereof
         PROVIDED THAT the obligations of the Issuer and/or the Guarantor under
         this sub-clause shall, as regards each payment made to the Trustee or
         any Holder or Couponholder which is avoided or set aside, be contingent
         upon such payment being reimbursed to the Issuer or other persons
         entitled through the Issuer.

(D)      The Guarantor hereby agrees that its obligations under this Clause
         shall be unconditional and that the Guarantor shall be fully liable
         irrespective of the validity, regularity, legality or enforceability
         against the Issuer of, or of any defence or counter-claim whatsoever
         available to the Issuer in relation to, its obligations under these
         presents, whether or not any action has been taken to enforce the same
         or any judgment obtained against the Issuer, whether or not any of the
         other provisions of these presents have been modified, whether or not
         any time, indulgence, waiver, authorisation or consent has been granted
         to the Issuer by or on behalf of the Holders or the Couponholders or
         the Trustee, whether or not any determination has been made by the
         Trustee pursuant to Clause 20(A), whether or not there have been any
         dealings or transactions between the Issuer, any of the Holders or
         Couponholders or the Trustee, whether or not the Issuer has been
         dissolved, liquidated, merged, consolidated, bankrupted or has changed
         its status, functions, control or ownership, whether or not the Issuer
         has been prevented from making payment by foreign exchange provisions
         applicable at its place of registration or incorporation and whether or
         not any other circumstances have occurred which

<PAGE>
                                       14

         might otherwise constitute a legal or equitable discharge of or defence
         to a guarantor. Accordingly the validity of this guarantee shall not be
         affected by reason of any invalidity, irregularity, illegality or
         unenforceability of all or any of the obligations of the Issuer under
         these presents and this guarantee shall not be discharged nor shall the
         liability of the Guarantor under these presents be affected by any act,
         thing or omission or means whatever whereby its liability would not
         have been discharged if it had been the principal debtor.

(E)      Without prejudice to the provisions of Clause 10(A) the Trustee may
         determine from time to time whether or not it will enforce this
         guarantee which it may do without making any demand of or taking any
         proceedings against the Issuer and may from time to time make any
         arrangement or compromise with the Guarantor in relation to this
         guarantee which the Trustee may consider expedient in the interests of
         the Holders.

(F)      The Guarantor waives diligence, presentment, demand of payment, filing
         of claims with a court in the event of dissolution, liquidation, merger
         or bankruptcy of the Issuer, any right to require a proceeding first
         against the Issuer, protest or notice with respect to these presents or
         the indebtedness evidenced thereby and all demands whatsoever and
         covenants that this guarantee shall be a continuing guarantee, shall
         extend to the ultimate balance of all sums payable and obligations owed
         by the Issuer under these presents, shall not be discharged except by
         complete performance of the obligations in these presents and is
         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.

(G)      If any moneys shall become payable by the Guarantor under this
         guarantee the Guarantor shall not, so long as the same remain unpaid,
         without the prior written consent of the Trustee:

         (i)      in respect of any amounts paid by it under this guarantee,
                  exercise any rights of subrogation or contribution or, without
                  limitation, any other right or remedy which may accrue to it
                  in respect of or as a result of any such payment; or

         (ii)     in respect of any other moneys for the time being due to the
                  Guarantor by the Issuer, claim payment thereof or exercise any
                  other right or remedy;

         (including in either case claiming the benefit of any security or right
         of set-off or, on the liquidation of the Issuer, proving in competition
         with the Trustee). If, notwithstanding the foregoing, upon the
         bankruptcy, insolvency or liquidation of the Issuer, any payment or
         distribution of assets of the Issuer of any kind or character, whether
         in cash, property or securities, shall be received by the Guarantor
         before payment in full of all amounts payable under these presents
         shall have been made to the Holders, the Couponholders and the Trustee,
         such payment or distribution shall be received by the Guarantor on
         trust to pay the same over immediately to the Trustee for application
         in or towards the payment of all sums due and unpaid under these
         presents in accordance with Clause 11.

(H)      The obligations of the Guarantor under these presents constitute
         direct, unconditional and unsubordinated and (subject to the provisions
         of Condition 3) unsecured obligations of the Guarantor and (subject as
         aforesaid) rank and will rank PARI PASSU with all other outstanding
         unsecured and unsubordinated obligations of the Guarantor, present and
         future, save for such obligations as may be preferred by mandatory
         provisions of applicable law.

8.       COVENANTS AND PROVISIONS RELATING TO THE CONVERSION RIGHTS

(1)      The Guarantor hereby covenants with the Trustee that it will give
         effect to, and comply with its obligations contained in these presents
         in respect of, the Conversion Rights.

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                                       15

(2)      The Guarantor hereby undertakes to and covenants with the Trustee that
         so long as any Conversion Right is, or is capable of being or becoming,
         exercisable:

         (A)      the Guarantor will not issue or pay up any securities by way
                  of capitalisation of profits or reserves, other than (i) by
                  the issue of fully paid Shares to the Shareholders and other
                  persons entitled to them, or (ii) by the issue of Shares paid
                  up in full out of profits or reserves in accordance with
                  applicable law and issued wholly, ignoring fractional
                  entitlements, in lieu of a cash dividend, or (iii) by the
                  issue of fully paid equity share capital (other than Shares)
                  to the holders of equity share capital of the same class and
                  other persons entitled thereto, unless, in any such case, it
                  gives rise (or would, if the adjustment would be one per cent.
                  or more of the Conversion Price then in effect, give rise) to
                  an adjustment of the Conversion Price;

         (B)      the Guarantor will not modify the rights attaching to the
                  Shares with respect to 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 sub-Clause (B) shall prevent (i) a consolidation or
                  subdivision of the Shares (ii) a modification to the rights
                  attaching to the Shares which is not, in the opinion of an
                  independent bank of international repute selected by the
                  Guarantor, approved in writing by the Trustee and acting as an
                  expert, materially prejudicial to the interests of the
                  Bondholders, (iii) the conversion of Shares into, or the issue
                  of any Shares in, uncertificated form (or the conversion of
                  Shares in uncertificated form to certificated form) or the
                  amendment of the Charter of the Guarantor to enable title to
                  securities of the Guarantor (including Shares) to be evidenced
                  and transferred without a written instrument or any other
                  alteration to the Charter of the Guarantor made in connection
                  with the matters described in this sub-Clause or which are
                  supplemental or incidental to any of the foregoing (including
                  amendments made to enable or facilitate procedures relating to
                  such matters and amendments dealing with the rights and
                  obligations of holders of securities (including Shares) dealt
                  with under such procedures) or (iv) any issue of equity share
                  capital, which in any such case as is mentioned above results
                  (or would, if the adjustment would be one per cent. or more of
                  the Conversion Price then in effect, otherwise result) in an
                  adjustment of the Conversion Price;

                  (C)      the Guarantor will, if an event happens as a result
                           of which the Conversion Price may be adjusted
                           pursuant to this Trust Deed as soon as practicable
                           send the Trustee a certificate signed by two
                           Authorised Signatories of the Guarantor on behalf of
                           the Guarantor setting out particulars of the event,
                           whether an adjustment to the Conversion Price falls
                           to be made and, if so, the adjusted Conversion Price
                           and the date on which such adjustment takes effect,
                           whether an amount falls to be carried forward
                           pursuant to sub-clause (4) of this Clause and, if so,
                           the amount to be carried forward and in any case
                           setting out such other information as the Trustee may
                           reasonably require.

         (D)      the Guarantor will, if an 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 associate or associates of the offeror) to
                  acquire all or a majority of the issued equity share 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 Trustee and to the Holders at the same time as
                  any notice thereof is sent to its

<PAGE>
                                       16

                  Shareholders (or as soon as practicable thereafter) stating
                  that details concerning such offer or scheme may be obtained
                  from the specified offices of the Conversion Agents 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 all
                  reasonable efforts to procure that a like offer or scheme is
                  extended to the Holders and the holders of any Shares
                  delivered by the Guarantor to converting Holders during the
                  period of the offer or scheme;

         (E)      unless so required by applicable law or regulation or in order
                  to establish a dividend or other rights (including the right
                  to attend and vote at a general meeting of the Guarantor)
                  attaching to the Shares, the Guarantor will not close its
                  register of shareholders or take any other action which
                  prevents the transfer of its Shares generally and will ensure
                  that the Securities may be converted legally and that the
                  Shares allotted and issued by the Guarantor and/or delivered
                  to the converting Holder on conversion may (subject to any
                  limitation imposed by law) be transferred (as between
                  transferor and transferee although not as against the
                  Guarantor) at all times while the register is closed or such
                  other action is effective, and will not take any action which
                  prevents the conversion of the Securities (in accordance with
                  the terms of such Securities) or the allotment and issue by
                  the Guarantor and/or delivery to the converting Holder of
                  Shares in respect of them;

         (F)      the Guarantor will use all reasonable endeavours to maintain a
                  listing on the SWX Swiss Exchange for all the issued Shares
                  for the time being or, if it is unable to obtain or maintain
                  such listing, use its best endeavours to obtain and maintain a
                  listing for the Shares (including all Shares delivered on
                  exercise of Conversion Rights) on such other stock exchange as
                  the Guarantor may from time to time (with the written consent
                  of the Trustee) determine and the Guarantor will forthwith
                  give notice of the identity of such stock exchange or
                  exchanges (and the listing or delisting of the Shares (as a
                  class) by the SWX Swiss Exchange or any such other stock
                  exchange) to the Holders and references in these presents to
                  the SWX Swiss Exchange shall thereafter be construed as
                  applying to such other stock exchange. The Guarantor will pay
                  all expenses of obtaining or maintaining listing for Shares
                  arising on conversion of the Securities;

         (G)      the Guarantor will pay the expenses of the allotment and issue
                  by the Guarantor, and/or delivery to the converting Holder, of
                  Shares arising on conversion of the Securities, save for any
                  costs and expenses provided by the Conditions to be paid by
                  the converting Holder; and

         (H)      if the record date for the payment of any dividend or other
                  distribution in respect of the Shares to be delivered to a
                  converting Holder is on or after the Conversion Date in
                  respect of any Bond but before the date the person or persons
                  specified for that purpose is or are registered as (a)
                  holder(s) of record of the relevant number of Shares in the
                  Guarantor's register of shareholders or, in the case of an
                  election by the Trustee pursuant to Condition 6(d) and
                  sub-clause (9) of this Clause, on or after the redemption date
                  specified in Condition 6(d) but before the date on which the
                  Trustee is registered as a holder of record of the relevant
                  number of Shares in the Guarantor's register of shareholders
                  on behalf of the relevant Holders, the Company will pay or
                  transfer to the converting Holder, his designee or the Trustee
                  (as the case may be) the Equivalent Amount in accordance with
                  the provisions of Condition 6(b)(iii).

<PAGE>
                                       17

         For the above purposes, "EQUITY SHARE CAPITAL" means the share capital
         of a company excluding any part of that capital which, neither as
         respects dividends nor as respects capital, carries any right to
         participate beyond a specified amount in a distribution.

(3)      If and whenever it is proposed to make any issue, arrangement or
         proposal or enter into any transaction which would give rise to an
         adjustment of the Conversion Price under Condition 6(c), the Guarantor
         shall, not later than the date on which it gives notice thereof to the
         Shareholders or the holders of the relevant other securities, give
         notice to the Holders containing the like information as is contained
         in the notice to the Shareholders and such other information as the
         Trustee shall reasonably require, such notice also to state the
         Conversion Price in effect at the time such notice is given and the
         Conversion Price which will result after giving effect to such event
         or, if such adjusted Conversion Price is not then determinable, the
         fact that an adjustment of the Conversion Price may result. Without
         prejudice to sub-clause 2(E) of this Clause, if, after giving effect to
         the event covered by any such notice and to any adjustment in the
         Conversion Price, the Shares could not or might not (but for the other
         provisions hereof), under applicable law then in effect, be legally
         allotted and issued by the Guarantor and/or delivered to the converting
         Holder upon conversion of Securities as fully-paid and non-assessable,
         any such notice shall also state such fact and the extent to which, by
         reason of such provisions, effect will not be given to such adjustment.

(4)      Unless any notice already given pursuant to sub-clause (3) of this
         Clause contains such information, following any adjustment of the
         Conversion Price, the Guarantor shall promptly after the adjustment
         takes effect give notice to the Holders stating that the Conversion
         Price has been adjusted and setting out the Conversion Price in effect
         before the adjustment, the adjusted Conversion Price and the effective
         date of the adjustment.

(5)      The Guarantor shall give not less than 15 days' nor more than 60 days'
         notice to the Trustee and each of the Conversion Agents of (i) any days
         during the Conversion Period on which the Guarantor's register of
         shareholders is to be closed by reason of Swiss law or regulation or
         for the purpose of establishing any dividend or other rights attaching
         to the Shares, and (ii) any other day during the Conversion Period on
         which it is aware that its register of shareholders is to be closed.
         The notice shall state the reason for such closure and whether the
         Guarantor intends to give notice to Holders of the closure in
         accordance with Condition 14.

(6)      For the purpose of any calculation of the consideration receivable
         pursuant to Condition 6:

         (i)      the aggregate consideration receivable for Shares issued for
                  cash shall be the amount of such cash provided that in no case
                  shall any deduction be made for any commission or any expenses
                  paid or incurred by the Guarantor for any underwriting of the
                  issue or otherwise in connection therewith;

         (ii)     (1) the aggregate consideration receivable for the Shares to
                  be issued on the conversion or exchange of any securities
                  shall be deemed to be the consideration received or receivable
                  for any such securities and (2) the aggregate consideration
                  receivable for the Shares to be issued on the exercise of
                  rights of subscription attached to any securities or upon the
                  exercise of any options, warrants or rights shall be deemed to
                  be that part (which may be the whole) of the consideration
                  received or receivable for such securities or, as the case may
                  be, for such options, warrants or rights which is attributed
                  by the Guarantor to such rights of subscription or, as the
                  case may be, for such options, warrants or rights or, if no
                  part of such consideration is so attributed or the Trustee so
                  requires by written notice to the Guarantor, the fair

<PAGE>
                                       18

                  market value of such rights of subscription as at the date of
                  the announcement of the terms of issue of such securities or,
                  as the case may be, for such options, warrants or rights (as
                  determined in good faith by an independent investment bank of
                  international repute selected by the Guarantor and approved in
                  writing by the Trustee), plus in the case of each of (1) and
                  (2) above, the additional minimum consideration (if any) to be
                  received by the Guarantor on the conversion or exchange of
                  such securities, or on the exercise of such rights of
                  subscription or, as the case may be, for such options,
                  warrants or rights (the consideration in all such cases to be
                  determined subject to the proviso in sub-paragraph (i) above)
                  and (3) the consideration per Share receivable by the
                  Guarantor on the conversion or exchange of, or on the exercise
                  of such rights of subscription attached to, such securities
                  or, as the case may be, for such options, warrants or rights
                  shall be the aggregate consideration referred to in (1) or (2)
                  above (as the case may be) converted into Swiss Francs if such
                  consideration is expressed in a currency other than Swiss
                  Francs at such rate of exchange as may be determined in good
                  faith by an independent investment bank of international
                  repute selected by the Guarantor and approved in writing by
                  the Trustee to be the spot rate ruling at the close of
                  business on the date of announcement of the terms of issue of
                  such securities, divided by the number of Shares to be issued
                  on such conversion or exchange or exercise at the initial
                  conversion, exchange or subscription price or rate.

 (7)     If the Guarantor fails to select an independent investment bank of
         international repute when required for the purposes of these presents,
         the Trustee may select such a bank.

(8)      If the Conversion Date in relation to any Security shall be after the
         record date for any such issue, distribution or grant as is mentioned
         in Condition 6(c), but before the relevant adjustment becomes effective
         under Clause 6(c), the Guarantor shall (conditional upon such
         adjustment becoming effective) procure that there be delivered to the
         converting Holder or in accordance with the instructions contained in
         the Conversion Notice (subject to applicable exchange control or other
         laws or other regulations) such additional number of Shares as,
         together with the Shares delivered or to be delivered on conversion of
         the relevant Security, is equal to the number of Shares which would
         have been required to be delivered on conversion of such Security if
         the relevant adjustment to the Conversion Price had in fact been made
         and become effective immediately after the relevant record date in
         accordance with Condition 6(c).

(9)      (A)      The Trustee may, at its absolute discretion (and without
                  responsibility for any loss occasioned thereby), within the
                  period commencing eight days before, and ending at the close
                  of business on the business day in Zurich prior to, the date
                  fixed for redemption from time to time of any of the Bonds
                  (including any redemption under Condition 8(b) but excluding
                  any redemption under 8(c)), elect by written notice to the
                  Issuer and the Guarantor to convert as of such redemption date
                  the aggregate number of Securities due for redemption on such
                  date and in respect of which Conversion Rights have not been
                  exercised by Holders ("UNEXERCISED BONDS") into Shares at the
                  Conversion Price applicable at such redemption 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 it that the net proceeds
                  of an immediate sale of the Shares arising from such
                  conversion (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 amount of
                  redemption moneys

<PAGE>
                                       19

                  (including interest) which would otherwise be payable in
                  respect of such Unexercised Bonds save as provided in
                  Condition 6(g), 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
                  25th November, 1999) in respect of such Unexercised Bonds in
                  respect of which the Trustee's election as aforesaid shall
                  have been made.

         (B)      The Guarantor undertakes to allot and issue and deliver, as
                  soon as practicable, to the Trustee on behalf of the holders
                  of the Unexercised Bonds so converted as of the relevant
                  redemption date the Shares required to be issued and delivered
                  pursuant to paragraph (A) above and to deliver within 28 days
                  of such delivery to the Trustee or to its order certificates
                  (if certificates are then generally being issued) representing
                  them.

         (C)      Subject to applicable law, the Trustee shall arrange for the
                  sale on behalf of the holders of the Unexercised Bonds of the
                  Shares issued on such conversion 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 or any
                  capital, stamp, issue or registration duties (if any) and any
                  costs incurred by the Trustee in connection with that
                  transfer, delivery and sale) the net proceeds of sale of such
                  Shares together with any interest under Condition 6(g) shall
                  be held by the Trustee and distributed rateably to the holders
                  of such Unexercised Bonds against due presentation in
                  accordance with Condition 7. The amount of such net proceeds
                  of sale shall be treated for all purposes as the full amount
                  due by the Issuer and the Guarantor in respect of such
                  Unexercised Bonds.

         (D)      If the Trustee elects pursuant to this sub-clause (9) to
                  convert Securities and to sell the Shares delivered to it on
                  such conversion, the Trustee may by written notice to the
                  Issuer, the Guarantor and the Conversion Agents, require the
                  Paying Agents and the Conversion Agents in relation to such
                  conversion and sale so far as permitted by applicable law:

                  (1)      to act as Paying Agents and Conversion Agents of the
                           Trustee in relation to payments to be made by or on
                           behalf of the Trustee pursuant to this sub-clause (9)
                           on the terms of the Agency Agreement (with
                           consequential amendments as necessary and save that
                           the Trustee's liability for the indemnification,
                           remuneration and all other expenses of the Paying
                           Agents and Conversion Agents shall be limited to the
                           amounts for the time being held by the Trustee in
                           respect of the Securities and the Coupons on the
                           terms of these presents) and thereafter to hold all
                           such Unexercised Bonds and all moneys, documents and
                           records held by them in respect of such Securities to
                           the order of the Trustee; or

                  (2)      to deliver all such Unexercised Bonds and all sums,
                           documents and records held by them in respect of such
                           Unexercised Bonds to the Trustee or as the Trustee
                           directs in such notice or subsequently.

<PAGE>
                                       20

9.       ENFORCEMENT

(A)      THE Trustee may at any time, at its discretion and without notice, take
         such proceedings and/or other action as it may think fit against or in
         relation to each of the Issuer and the Guarantor to enforce its
         obligations under these presents.

(B)      Proof that as regards any specified Security or Coupon the Issuer or
         the Guarantor (as the case may be) has made default in paying any
         amount due in respect of such Security or Coupon shall (unless the
         contrary be proved) be sufficient evidence that the same default has
         been made as regards all other Securities or Coupons (as the case may
         be) in respect of which the relevant amount is due and payable.

(C)      References in provisos (ii) and (iii) to Clause 2(B) and the provisions
         of any trust deed supplemental to this Trust Deed corresponding to
         provisos (ii) and (iii) to Clause 2(B) to "the rate aforesaid" shall,
         in respect of any Securities bearing interest at a floating or variable
         rate, in the event of such Securities having become due and repayable,
         with effect from the expiry of the interest period during which such
         Securities become due and repayable, be construed as references to a
         rate of interest calculated MUTATIS MUTANDIS in accordance with the
         Conditions except that no notices need be published in respect thereof.

10.      PROCEEDINGS, ACTION AND INDEMNIFICATION

(A)      THE Trustee shall not be bound to take any proceedings mentioned in
         Clause 9(A) or any other action in relation to these presents unless
         respectively directed or requested to do so (i) by an Extraordinary
         Resolution or (ii) in writing by the holders of not less than 25 per
         cent. in principal amount of the Securities then outstanding and in
         either case then only if it shall be indemnified to its satisfaction
         against all Liabilities to which it may thereby render itself liable or
         which it may incur by so doing.

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

11.      APPLICATION OF MONEYS

         ALL moneys received by the Trustee under these presents shall, unless
         and to the extent attributable in the opinion of the Trustee to a
         particular series of the Securities, be apportioned PARI PASSU and
         rateably between each series of the Securities, and all moneys received
         by the Trustee under these presents to the extent attributable in the
         opinion of the Trustee to a particular series of the Securities or
         which are apportioned to such series as aforesaid (including any moneys
         which represent principal, premium or interest in respect of Securities
         or Coupons which have become void under Condition 10) shall be held by
         the Trustee upon trust to apply them (subject to Clause 13):

         FIRST in payment or satisfaction of all amounts then due and unpaid
         under Clauses 16 and/or 17(J) to the Trustee and/or any Appointee;

         SECONDLY in or towards payment PARI PASSU and rateably of all
         principal, premium (if any) and interest then due and unpaid in respect
         of the Securities of that series;

         THIRDLY in or towards payment PARI PASSU and rateably of all principal,
         premium (if any) and interest then due and unpaid in respect of the
         Securities of each other series; and

<PAGE>
                                       21

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

         Without prejudice to this Clause 11, if the Trustee holds any moneys
         which represent principal, premium (if any) or interest in respect of
         Securities which have become void or in respect of which claims have
         been prescribed under Condition 10, the Trustee will hold such moneys
         on the above trusts.

12.      NOTICE OF PAYMENTS

         THE Trustee shall give notice to the relevant Holders in accordance
         with Condition 14 of the day fixed for any payment to them under Clause
         11. Such payment may be made in accordance with Condition 7 and any
         payment so made shall be a good discharge to the Trustee.

13.      INVESTMENT BY TRUSTEE

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

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

14.      PARTIAL PAYMENTS

         UPON any payment under Clause 11 (other than payment in full against
         surrender of a Security or Coupon) the Security or Coupon in respect of
         which such payment is made shall be produced to the Trustee or the
         Paying Agent by or through whom such payment is made and the Trustee
         shall or shall cause such Paying Agent to enface thereon a memorandum
         of the amount and the date of payment but the Trustee may in any
         particular case or generally in relation to Registered Securities
         dispense with such production and enfacement upon such indemnity being
         given as it shall think sufficient.

15.      COVENANTS BY THE ISSUER AND THE GUARANTOR

         SO long as any of the Securities remains outstanding (or, in the case
         of paragraphs (vii), (viii), (xii), (xiii), (xiv) and (xvi), so long as
         any of the Securities or Coupons remains liable

<PAGE>
                                       22

                  to prescription) each of the Issuer and the Guarantor
                  severally covenants with the Trustee that it shall:

         (i)      so far as permitted by applicable law, give or procure to be
                  given to the Trustee such opinions, certificates, information
                  and evidence as it shall reasonably require and in such form
                  as it shall reasonably require (including without limitation
                  the procurement by the Issuer or the Guarantor (as the case
                  may be) of all such certificates called for by the Trustee
                  pursuant to Clause 17(C)) for the purpose of the discharge or
                  exercise of the duties, trusts, powers, authorities and
                  discretions vested in it under these presents or by operation
                  of law;

         (ii)     cause to be prepared and certified by 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
                  Stock Exchange;

         (iii)    at all times keep and procure its Subsidiaries (so long as
                  they carry on business) to keep proper books of account and at
                  any time after the happening of an Event of Default or a
                  Potential Event of Default or if the Trustee has reasonable
                  grounds to believe that an Event of Default or a Potential
                  Event of Default has occurred and insofar as permitted by
                  applicable law allow and procure each Subsidiary in relation
                  to which an Event of Default or a Potential Event of Default
                  shall have occurred or in relation to which the Trustee has
                  reasonable grounds to believe that an Event of Default or a
                  Potential Event of Default has occurred and any other
                  Subsidiary the books of which the Trustee certifies to the
                  Issuer and the Guarantor as being in its opinion necessary to
                  have access to for the protection of the Holders to allow the
                  Trustee and any person appointed by the Trustee to whom the
                  Issuer, the Guarantor or the relevant Subsidiary (as the case
                  may be) shall have no reasonable objection free access to such
                  books of account at all reasonable times during normal
                  business hours;

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

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

         (vi)     give to the Trustee (a) within 10 days after demand by the
                  Trustee therefor and (b) (without the necessity for any such
                  demand) not later than 10 days after the publication of the
                  audited accounts of the Guarantor in respect of each financial
                  period commencing with the financial period ending 31st
                  December, 1999 and in any event not later than 180 days after
                  the end of each such financial period a certificate signed by
                  two Authorised Signatories of the Issuer and two Authorised
                  Signatories of the Guarantor to the effect that to the best of
                  the knowledge, information and belief of the persons
                  certifying, they having made all reasonable enquiries, as at a
                  date not more than seven days before delivering such
                  certificate (the "CERTIFICATION DATE") there did not exist and
                  had not existed since the certification date of the previous
                  certificate (or in the case of the first such certificate the
                  date hereof) any Event of Default or any Potential Event of

<PAGE>
                                       23

                  Default (or if such exists or existed specifying the same);

         (vii)    so far as permitted by applicable law or regulation, at all
                  times execute and do all such further documents, acts and
                  things as may be necessary at any time or times in the opinion
                  of the Trustee to give effect to these presents;

         (viii)   at all times maintain an Agent Bank, Reference Banks, Paying
                  Agents, Conversion Agents, a Registrar and Transfer Agents in
                  accordance with the Conditions;

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

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

         (xi)     use all reasonable endeavours to maintain the listing of the
                  Securities on The Stock Exchange or, if it is unable to do so
                  having used all reasonable endeavours, use its best endeavours
                  to obtain and maintain a quotation or listing of the
                  Securities on such other stock exchange or exchanges or
                  securities market or markets as the Issuer may (with the prior
                  written approval of the Trustee) decide and shall also upon
                  obtaining a quotation or listing of the Securities on such
                  other stock exchange or exchanges or securities market or
                  markets enter into a trust deed supplemental to this Trust
                  Deed to effect such consequential amendments to these presents
                  as the Trustee may require or as shall be requisite to comply
                  with the requirements of any such stock exchange or securities
                  market;

         (xii)    give notice to the Holders in accordance with Condition 14 of
                  any appointment, resignation or removal of any Agent Bank,
                  Reference Bank, Paying Agent, Conversion Agent, Registrar or
                  Transfer Agent (other than the appointment of the initial
                  Agent Bank, Conversion Agents, Reference Banks, Paying Agents,
                  Registrar and Transfer Agents) after having obtained the prior
                  written approval of the Trustee thereto or any change of any
                  Paying Agent's, Conversion Agent's, Registrar's or Transfer
                  Agent's specified office and (except as provided by the Agent
                  Bank Agreement or the Agency Agreement or the Conditions) at
                  least 30 days prior to such event taking effect; PROVIDED
                  ALWAYS THAT so long as any of the Securities remains
                  outstanding in the case of the termination of the appointment
                  of the Agent Bank, the Registrar or a Transfer Agent or so
                  long as any of the Securities or Coupons remains liable to
                  prescription in the case of the termination of the appointment
                  of the Principal Paying Agent or the Principal Conversion
                  Agent no such termination shall take effect until a new Agent
                  Bank, Registrar, Transfer Agent or Principal Paying Agent (as
                  the case may be) has been appointed on terms previously
                  approved in writing by the Trustee;

         (xiii)   obtain the prior written approval of the Trustee to, and
                  promptly give to the Trustee two copies of, the form of every
                  notice given to the Holders in accordance with Condition 14
                  (such approval not to be unreasonably withheld or delayed and,
                  unless so expressed, not to constitute approval for the
                  purposes of Section 57 of the

<PAGE>
                                       24

                  Financial Services Act 1986 of the United Kingdom of any such
                  notice which is an investment advertisement (as therein
                  defined));

         (xiv)    comply with and perform all its obligations under the Agent
                  Bank Agreement and the Agency Agreement and use its best
                  endeavours to procure that the Agent Bank, the Paying Agents,
                  the Conversion Agents, the Registrar and the Transfer Agents
                  comply with and perform all their respective obligations
                  thereunder and (in the case of the Paying Agents, the
                  Conversion Agents and the Registrar) any notice given by the
                  Trustee pursuant to Clause 2(C)(i) and not make any amendment
                  or modification to either of such Agreements without the prior
                  written approval of the Trustee;

         (xv)     in order to enable the Trustee to ascertain the principal
                  amount of Securities of each series for the time being
                  outstanding for any of the purposes referred to in the proviso
                  to the definition of "OUTSTANDING" in Clause 1, deliver to the
                  Trustee as soon as practicable after being so requested in
                  writing by the Trustee a certificate in writing signed by two
                  Authorised Signatories of the Issuer or two Authorised
                  Signatories of the Guarantor (as appropriate) setting out the
                  total number and aggregate principal amount of Securities of
                  each series which:

                  (a)      up to and including the date of such certificate have
                           been purchased by the Issuer, the Guarantor or any
                           other Subsidiary of the Guarantor and cancelled; and

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

         (xvi)    procure its Subsidiaries to comply with all (if any)
                  applicable provisions of Condition 8(e);

         (xvii)   procure that each of the Paying Agents makes available for
                  inspection by Holders and Couponholders at its specified
                  office copies of these presents, the Agency Agreement, the
                  Agent Bank Agreement and the then latest audited balance
                  sheets and profit and loss accounts (consolidated if
                  applicable) of the Issuer and the Guarantor; and

         (xviii)  if, in accordance with the provisions of the Conditions,
                  interest in respect of Bearer Securities denominated in U.S.
                  dollars becomes payable at the specified office of any Paying
                  Agent in the United States of America promptly give notice
                  thereof to the Holders in accordance with Condition 14.

16.      REMUNERATION AND INDEMNIFICATION OF TRUSTEE

(A)      THE Issuer shall pay to the Trustee remuneration for its services as
         trustee as from the date of this Trust Deed, such remuneration to be at
         such rate and to be paid on such dates as may from time to time be
         agreed between the Issuer and the Trustee. Upon the issue of any
         Further Securities the rate of remuneration in force immediately prior
         thereto shall be increased by such amount as shall be agreed between
         the Issuer and the Trustee, such increased remuneration to be
         calculated from such date as shall be agreed as aforesaid. The rate of
         remuneration in force from time to time may upon the final redemption
         of the whole of the Securities of any series be reduced by such amount
         as shall be agreed between the Issuer and the Trustee, such reduced
         remuneration to be calculated from such date as shall be agreed as
         aforesaid. Such remuneration shall accrue from day to day and be
         payable (in priority to payments to the Holders and Couponholders) up
         to and including the date when, all the Securities having become due
         for redemption, the redemption moneys and interest thereon to the date
         of redemption have been paid to the Principal Paying Agent and, where
         applicable,

<PAGE>
                                       25

         the Registrar or, as the case may be, the Trustee PROVIDED THAT if upon
         due presentation of any Security or Coupon or any cheque payment of the
         moneys due in respect thereof is improperly withheld or refused,
         remuneration will commence again to accrue.

(B)      In the event of the occurrence of an Event of Default or a Potential
         Event of Default or the Trustee considering it expedient or necessary
         or being requested by the Issuer or the Guarantor 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 these presents the Issuer shall pay to the Trustee such
         additional remuneration as shall be agreed between them.

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

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

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

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

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

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

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

(G)      Unless otherwise specifically stated in any discharge of these presents
         the provisions of this Clause and Clause 17(J) shall continue in full
         force and effect notwithstanding such discharge.

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

<PAGE>
                                       26

17.      SUPPLEMENT TO TRUSTEE ACT 1925

         THE Trustee shall have all the powers conferred upon trustees by the
         Trustee Act 1925 of England and Wales and by way of supplement thereto
         it is expressly declared as follows:

         (A)      The Trustee may in relation to these presents act on the
                  advice or opinion of or any information obtained from any
                  lawyer, valuer, accountant, surveyor, banker, broker,
                  auctioneer or other expert whether obtained by the Issuer, the
                  Guarantor, the Trustee or otherwise and whether or not
                  addressed to the Trustee and shall not be responsible for any
                  Liability occasioned by so acting.

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

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

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

         (E)      The Trustee shall not be responsible for the receipt or
                  application of the proceeds of the issue of any of the
                  Securities by the Issuer, the exchange of any Global Security
                  for another Global Security or definitive Securities, the
                  delivery of any Global Security or definitive Securities to
                  the person(s) entitled to it or them or the exchange of Bearer
                  Securities for Registered Securities or of Registered
                  Securities for Bearer Securities.

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

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

<PAGE>
                                       27

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

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

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

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

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

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

         (N)      The Trustee may certify whether or not any of the conditions,
                  events and acts set out in paragraphs (ii), (iii), (iv), (v)
                  and (ix) of Condition 9 (each of which conditions, events and
                  acts shall, unless in any case the Trustee in its absolute
                  discretion shall otherwise determine, for all the purposes of
                  these presents be deemed to include the circumstances
                  resulting therein and the consequences resulting therefrom) is
                  in its opinion materially prejudicial to the interests of the
                  Holders and any such certificate shall be conclusive and
                  binding upon the Issuer, the Guarantor, the Holders and the
                  Couponholders.

         (O)      The Trustee as between itself and the Holders and
                  Couponholders may determine all questions and doubts arising
                  in relation to any of the provisions of these presents. Every
                  such determination, whether or not relating in whole or in
                  part to the acts or

<PAGE>
                                       28

                  proceedings of the Trustee, shall be conclusive and shall bind
                  the Trustee and the Holders and Couponholders.

         (P)      In connection with the exercise by it of any of its trusts,
                  powers, authorities and discretions under these presents
                  (including, without limitation, any modification, waiver,
                  authorisation, or determination or substitution), the Trustee
                  shall have regard to the general interests of the Holders as a
                  class and shall not have regard to any interests arising from
                  circumstances particular to individual Holders or
                  Couponholders (whatever their number) and, in particular but
                  without limitation, shall not have regard to the consequences
                  of any such exercise for individual Holders or Couponholders
                  (whatever their number) resulting from their being for any
                  purpose domiciled or resident in, or otherwise connected with,
                  or subject to the jurisdiction of, any particular territory or
                  any political sub-division thereof and the Trustee shall not
                  be entitled to require, nor shall any Holder or Couponholder
                  be entitled to claim, from the Issuer, the Guarantor, the
                  Trustee or any other person any indemnification or payment in
                  respect of any tax consequence of any such exercise upon
                  individual Holders or Couponholders.

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

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

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

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

<PAGE>
                                       29

         (U)      The Trustee may call for any certificate or other document to
                  be issued by Euroclear or Cedelbank as to the principal amount
                  of Securities represented by a Global Security standing to the
                  account of any person. Any such certificate or other document
                  shall be conclusive and binding for all purposes. The Trustee
                  shall not be liable to any person by reason of having accepted
                  as valid or not having rejected any certificate or other
                  document to such effect purporting to be issued by Euroclear
                  or Cedelbank and subsequently found to be forged or not
                  authentic.

         (V)      The Trustee shall not at any time be under any duty or
                  responsibility to any Holder to determine whether any facts
                  exist which may require any adjustment of the Conversion Price
                  or with respect to the nature or extent of any such adjustment
                  when made, or with respect to the method employed, or in these
                  presents provided to be employed, in making the same.

         (W)      The Trustee shall have no duty or responsibility at any time
                  in respect of the validity or value (or the kind or amount) of
                  the Shares which may at any time be issued, transferred or
                  delivered on the conversion of any Security or the sale or
                  other disposal of any Shares. The Trustee shall not be
                  responsible for any failure of the Issuer or the Guarantor to
                  make available or deliver any Shares or share certificates or
                  make any payment on the exercise of any Conversion Right.

18.      TRUSTEE'S LIABILITY

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

19.      TRUSTEE CONTRACTING WITH THE ISSUER AND THE GUARANTOR

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

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

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

         and shall be entitled to exercise and enforce its rights, comply with
         its obligations and perform its duties under or in relation to any such
         contract, transaction or arrangement as is referred to in (i) above or,
         as the case may be, any such trusteeship or office of profit as is

<PAGE>
                                       30

         referred to in (ii) above without regard to the interests of the
         Holders and notwithstanding that the same may be contrary or
         prejudicial to the interests of the Holders and shall not be
         responsible for any Liability occasioned to the Holders thereby and
         shall be entitled to retain and shall not be in any way liable to
         account for any profit made or share of brokerage or commission or
         remuneration or other amount or benefit received thereby or in
         connection therewith.

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

20.      WAIVER, AUTHORISATION AND DETERMINATION

(A)      THE Trustee may without the consent or sanction of the Holders and
         without prejudice to its rights in respect of any subsequent breach,
         Event of Default or Potential Event of Default from time to time and at
         any time but only if and in so far as in its opinion the interests of
         the Holders shall not be materially prejudiced thereby waive or
         authorise any breach or proposed breach by the Issuer or the Guarantor
         of any of the covenants or provisions contained in these presents or
         determine that any Event of Default or Potential Event of Default shall
         not be treated as such for the purposes of these presents PROVIDED
         ALWAYS THAT the Trustee shall not exercise any powers conferred on it
         by this Clause in contravention of any express direction given by
         Extraordinary Resolution or by a request under Condition 9 but so that
         no such direction or request shall affect any waiver, authorisation or
         determination previously given or made. Any such waiver, authorisation
         or determination may be given or made on such terms and subject to such
         conditions (if any) as the Trustee may determine, shall be binding on
         the Holders and the Couponholders and, if, but only if, the Trustee
         shall so require, shall be notified by the Issuer to the Holders in
         accordance with Condition 14 as soon as practicable thereafter.

         MODIFICATION

(B)      The Trustee may without the consent or sanction of the Holders or
         Couponholders at any time and from time to time concur with the Issuer
         and the Guarantor in making any modification (i) to these presents
         which in the opinion of the Trustee it may be proper to make PROVIDED
         THAT the Trustee is of the opinion that such modification will not be
         materially prejudicial to the interests of the Holders or (ii) to these
         presents if in the opinion of the Trustee such modification is of a
         formal, minor or technical nature or to correct a manifest error. Any
         such modification may be made on such terms and subject to such
         conditions (if any) as the Trustee may determine, shall be binding upon
         the Holders and the Couponholders and, unless the Trustee agrees
         otherwise, shall be notified by the Issuer to the Holders in accordance
         with Condition 14 as soon as practicable thereafter.

         BREACH

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

<PAGE>
                                       31

21.      HOLDER OF DEFINITIVE BEARER SECURITY ASSUMED TO BE COUPONHOLDER

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

         NO NOTICE TO COUPONHOLDERS

(B)      Neither the Trustee nor the Issuer nor the Guarantor shall be required
         to give any notice to the Couponholders for any purpose under these
         presents and the Couponholders shall be deemed for all purposes to have
         notice of the contents of any notice given to the Holders in accordance
         with Condition 14.

         ENTITLEMENT TO TREAT HOLDER AS ABSOLUTE OWNER

(C)      The Issuer, the Guarantor, the Trustee, the Paying Agents, the
         Conversion Agents, the Registrar and the Transfer Agents may (to the
         fullest extent permitted by applicable laws) deem and treat the holder
         of any Security or of a particular principal amount of the Securities
         and the holder of any Coupon as the absolute owner of such Security,
         principal amount or Coupon, as the case may be, for all purposes
         (whether or not such Security, principal amount or Coupon shall be
         overdue and notwithstanding any notice of ownership thereof or of trust
         or other interest with regard thereto, any notice of loss or theft
         thereof or any writing thereon), and the Issuer, the Guarantor, the
         Trustee, the Paying Agents, the Conversion Agents, the Registrar and
         the Transfer Agents shall not be affected by any notice to the
         contrary. All payments made to any such holder of a Security in
         definitive form or a Coupon or to the bearer of a Global Security shall
         be valid and, to the extent of the sums so paid, effective to satisfy
         and discharge the liability for the moneys payable in respect of such
         Security, principal amount or Coupon, as the case may be.

22.      SUBSTITUTION

(A)      (1)      The Trustee may without the consent of the Holders or
                  Couponholders at any time agree with the Issuer and the
                  Guarantor to the substitution in place of the Issuer (or of
                  the previous substitute under this Clause) as the principal
                  debtor under these presents of any other company (such
                  substituted company being hereinafter called the "NEW
                  COMPANY") provided that a trust deed is executed or some other
                  form of undertaking is given by the New Company in form and
                  manner satisfactory to the Trustee, agreeing to be bound by
                  the provisions of these presents with any consequential
                  amendments which the Trustee may deem appropriate as fully as
                  if the New Company had been named in these presents as the
                  principal debtor in place of the Issuer (or of the previous
                  substitute under the Clause) and provided further that (except
                  where the New Company is the Guarantor) the Guarantor
                  unconditionally and irrevocably guarantees all amounts payable
                  under these presents to the satisfaction of the Trustee.

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

                  (i)      the Issuer, the Guarantor and the New Company shall
                           comply with such other requirements as the Trustee
                           may direct in the interests of the Holders;

                  (ii)     without prejudice to the rights of reliance of the
                           Trustee under the immediately following paragraph
                           (iv), the Trustee is satisfied that the

<PAGE>
                                       32

                           relevant transaction is not materially prejudicial to
                           the interests of the Holders;

                  (iii)    appropriate arrangements are made to safeguard the
                           Conversion Rights; and

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

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

23.      CURRENCY INDEMNITY

         EACH of the Issuer and the Guarantor shall severally indemnify the
         Trustee, every Appointee, the Holders and the Couponholders and keep
         them indemnified against:

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

         (b)      any deficiency arising or resulting from any variation in
                  rates of exchange between (i) the date as of which the local
                  currency equivalent of the amounts due or contingently due
                  under these presents (other than this Clause) is calculated
                  for the purposes of any bankruptcy, insolvency or liquidation
                  of the Issuer or the Guarantor and (ii) the final date for
                  ascertaining the amount of claims in such bankruptcy,
                  insolvency or liquidation. The amount of such deficiency shall
                  be deemed not to be reduced by any variation in rates of
                  exchange occurring between the said final date and the date of
                  any distribution of assets in connection with any such
                  bankruptcy, insolvency or liquidation.

         The above indemnities shall constitute obligations of the Issuer and
         the Guarantor separate and independent from their obligations under the
         other provisions of these presents and shall apply irrespective of any
         indulgence granted by the Trustee or the Holders or the Couponholders
         from time to time and shall continue in full force and effect
         notwithstanding the judgment or filing of any proof or proofs in any
         bankruptcy, insolvency or liquidation of the Issuer or the Guarantor
         for a liquidated sum or sums in respect of amounts due under these
         presents (other than this Clause). Any such deficiency as aforesaid
         shall be deemed to

<PAGE>
                                       33

         constitute a loss suffered by the Holders and Couponholders and no
         proof or evidence of any actual loss shall be required by the Issuer or
         the Guarantor or their liquidator or liquidators.

24.      NEW TRUSTEE

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

         SEPARATE AND CO-TRUSTEES

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

         (i)      if the Trustee considers such appointment to be in the
                  interests of the Holders;

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

         (iii)    for the purposes of obtaining a judgment in any jurisdiction
                  or the enforcement in any jurisdiction of either a judgment
                  already obtained or any of the provisions of these presents
                  against the Issuer and/or the Guarantor.

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

25.      TRUSTEE'S RETIREMENT AND REMOVAL

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

<PAGE>
                                       34

26.      TRUSTEE'S POWERS TO BE ADDITIONAL

         THE powers conferred upon the Trustee by these presents shall be in
         addition to any powers which may from time to time be vested in the
         Trustee by the general law or as a holder of any of the Securities or
         Coupons.

27.      NOTICES

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

         to the Issuer:             Savannahweg 71
                                    3542 Aw Utrecht
                                    The Netherlands

                                    (Attention:  Tom Diekmann)
                                    Facsimile No. + 31 30 242 5666

                                    (copy to the Guarantor)

                                    1275 Cheserex
                                    Switzerland

                                    (Attention:  Alison Cundy)
                                    Facsimile No. + 41 21 321 66 23

                                    (copy to Adecco Inc.)

         to the Guarantor:          100 Redwood Shores
                                    Parkway
                                    Redwood City
                                    CA 94065

                                    (Attention: Dr. Felix Weber)
                                    Facsimile No. + 1 650 610 1076)

         to the Trustee:            Trinity Tower
                                    9 Thomas More Street
                                    London E1 9YT
                                    England

                                    (Attention: The Manager - Corporate Trust
                                      Operations)
                                    Facsimile No. + 44 207 777 5410/5420/5440

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

<PAGE>
                                       35

28.      GOVERNING LAW

         THESE presents are governed by, and shall be construed in accordance
         with, English law.

29.      SUBMISSION TO JURISDICTION

(A)      EACH of the Issuer and the Guarantor irrevocably agrees for the benefit
         of the Trustee, the Holders and the Couponholders that the courts of
         England are to have jurisdiction to settle any disputes which may arise
         out of or in connection with these presents and that accordingly any
         suit, action or proceedings arising out of or in connection with these
         presents (together referred to as "PROCEEDINGS") may be brought in the
         courts of England. The Issuer and the Guarantor irrevocably and
         unconditionally waive and agree not to raise any objection which they
         may have now or subsequently to the laying of the venue of any
         Proceedings in the courts of England and any claim that any Proceedings
         have been brought in an inconvenient forum and further irrevocably and
         unconditionally agree that a judgment in any Proceedings brought in the
         courts of England shall be conclusive and binding upon the Issuer or,
         as the case may be, the Guarantor and may be enforced in the courts of
         any other jurisdiction. Nothing in this Clause shall limit any right to
         take Proceedings against the Issuer or the Guarantor in any other court
         of competent jurisdiction, nor shall the taking of Proceedings in one
         or more jurisdictions preclude the taking of Proceedings in any other
         jurisdiction, whether concurrently or not.

(B)      Each of the Issuer and the Guarantor irrevocably and unconditionally
         appoints Adecco UK Ltd at its registered office for the time being and
         in the event of its ceasing so to act will appoint such other person as
         the Trustee may approve and as the Issuer or the Guarantor (as the case
         may be) may nominate in writing to the Trustee for the purpose to
         accept service of process on its behalf in England in respect of any
         Proceedings. Each of the Issuer and the Guarantor:

         (i)      agrees to procure that, so long as any of the Securities
                  remains liable to prescription, there shall be in force an
                  appointment of such a person approved by the Trustee with an
                  office in England with authority to accept service as
                  aforesaid;

         (ii)     agrees that failure by any such person to give notice of such
                  service of process to the Issuer or the Guarantor shall not
                  impair the validity of such service or of any judgment based
                  thereon;

         (iii)    consents to the service of process in respect of any
                  Proceedings by the airmailing of copies, postage prepaid, to
                  the Issuer or the Guarantor (as the case may be) in accordance
                  with Clause 27; and

         (iv)     agrees that nothing in these presents shall affect the right
                  to serve process in any other manner permitted by law.

30.      COUNTERPARTS

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

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

<PAGE>
                                       36

                               THE FIRST SCHEDULE

                   - FORM OF ORIGINAL TEMPORARY GLOBAL NOTE -

                                  MERIDIAN B.V.

             (Incorporated with limited liability under the laws of
                                The Netherlands)
                              TEMPORARY GLOBAL NOTE

                                  representing

             euro360,030,000 1.50 PER CENT. GUARANTEED CONVERTIBLE
                                 NOTES DUE 2004

                   Unconditionally and irrevocably guaranteed
                   as to payment of principal and interest by

                                   ADECCO S.A.
                      (Incorporated with limited liability
                         under the laws of Switzerland)

This Note is a temporary Global Note without interest coupons in respect of a
duly authorised issue of Notes of Meridian B.V. (the "ISSUER"), designated as
specified in the title hereof (the "NOTES"), limited to the aggregate principal
amount of three hundred and sixty million and thirty thousand euro
(euro360,030,000) and constituted by a Trust Deed dated 25th November, 1999
(the "TRUST DEED") between the Issuer, Adecco S.A. as guarantor (the
"GUARANTOR") and Chase Manhattan Trustees Limited as trustee (the trustee for
the time being thereof being herein called the "TRUSTEE"). References herein to
the Conditions (or to any particular numbered Condition) shall be to the
Conditions (or that particular one of them) set out in the Second Schedule to
the Trust Deed. The aggregate principal amount from time to time of this
temporary Global Note shall be three hundred and sixty million and thirty
thousand euro (euro360,030,000) or, if less, that amount as shall be shown by
the latest entry duly made in the Schedule hereto.

1.       PROMISE TO PAY

         Subject as provided in this temporary Global Note, the Issuer promises
         to pay to the bearer the principal amount of this temporary Global Note
         (being at the date hereof three hundred and sixty million and thirty
         thousand euro (euro360,030,000)) on 25th November, 2004 (or on such
         earlier date as the said principal amount may become repayable in
         accordance with the Conditions or the Trust Deed) and to pay interest
         annually in arrear on 25th November on the principal amount from time
         to time of this temporary Global Note at the rate of 1.50 per cent. per
         annum together with such other amounts (if any) as may be payable, all
         subject to and in accordance with the Conditions and the provisions of
         the Trust Deed.

2.       EXCHANGE FOR PERMANENT GLOBAL NOTE AND PURCHASES

         This temporary Global Note is exchangeable in whole or in part upon the
         request of the bearer for a further global note in respect of up to
         euro360,030,000 aggregate principal amount of the Notes (the
         "PERMANENT GLOBAL NOTE") only on and subject to the terms and
         conditions set out below.

         On and after 4th January, 2000 (the "EXCHANGE DATE") this temporary
         Global Note may be exchanged in whole or in part at the specified
         office of the Principal Paying Agent (or such other place as the
         Trustee may agree) for the Permanent Global Note and the Issuer shall
         procure that the Principal Paying Agent shall issue and deliver, in
         full or partial exchange for

<PAGE>
                                       37

         this temporary Global Note, the Permanent Global Note (or, as the case
         may be, endorse the Permanent Global Note) in an aggregate principal
         amount equal to the principal amount of this temporary Global Note
         submitted for exchange Provided that if definitive Notes (together with
         the Coupons appertaining thereto) have already been issued in exchange
         for all the Notes represented for the time being by the Permanent
         Global Note, then this temporary Global Note may thereafter be
         exchanged only for definitive Notes (together with the Coupons
         appertaining thereto) and in such circumstances references herein to
         the Permanent Global Note shall be construed accordingly and Provided
         further that the Permanent Global Note shall be issued and delivered
         (or, as the case may be, endorsed) only if and to the extent that there
         shall have been presented to the Issuer a certificate from Morgan
         Guaranty Trust Company of New York, Brussels office, as operator of the
         Euroclear System ("EUROCLEAR") or from Cedelbank substantially in the
         form of the certificate attached as Exhibit A.

         Any person who would, but for the provisions of this temporary Global
         Note, the Permanent Global Note and the Trust Deed, otherwise be
         entitled to receive a definitive Note or definitive Notes shall not be
         entitled to require the exchange of an appropriate part of this
         temporary Global Note for a like part of the Permanent Global Note
         unless and until he shall have delivered or caused to be delivered to
         Euroclear or Cedelbank a certificate substantially in the form of the
         certificate attached as Exhibit B (copies of which form of certificate
         will be available at the offices of Euroclear in Brussels and Cedelbank
         in Luxembourg and the specified office of each of the Paying Agents).

         Upon (i) any exchange of a part of this temporary Global Note for a
         like part of the Permanent Global Note or (ii) the purchase by or on
         behalf of the Issuer, the Guarantor or any other Subsidiary of the
         Guarantor and cancellation of a part of this temporary Global Note in
         accordance with the Conditions, the portion of the principal amount
         hereof so exchanged or so purchased and cancelled shall be endorsed by
         or on behalf of the Principal Paying Agent on behalf of the Issuer on
         Part II of the Schedule hereto, whereupon the principal amount hereof
         shall be reduced for all purposes by the amount so exchanged or so
         purchased and cancelled and, in each case, endorsed.

3.       PAYMENTS

         Until the entire principal amount of this temporary Global Note has
         been extinguished, this temporary Global Note shall in all respects be
         entitled to the same benefits as the definitive Notes for the time
         being represented hereby and shall be entitled to the benefit of and be
         bound by the Trust Deed, except that the holder of this temporary
         Global Note shall not (unless upon due presentation of this temporary
         Global Note for exchange, issue and delivery (or, as the case may be,
         endorsement) of the Permanent Global Note is improperly withheld or
         refused and such withholding or refusal is continuing at the relevant
         payment date) be entitled (i) (subject to (ii) below) to receive any
         payment of interest on this temporary Global Note except upon
         certification as hereinafter provided or (ii) on and after the Exchange
         Date, to receive any payment on this temporary Global Note. Upon any
         payment of principal or interest on this temporary Global Note the
         amount so paid shall be endorsed by or on behalf of the Principal
         Paying Agent on behalf of the Issuer on Part I of the Schedule hereto.

         Payments of interest in respect of Notes for the time being represented
         by this temporary Global Note shall be made to the bearer only upon
         presentation to the Issuer of a certificate from Euroclear or from
         Cedelbank substantially in the form of the certificate attached as
         Exhibit A. Any person who would, but for the provisions of this
         temporary Global Note and of the Trust Deed, otherwise be beneficially
         entitled to a payment of interest on this temporary Global Note shall
         not be entitled to require such payment unless and until he shall have
         delivered or caused to be delivered to Euroclear or Cedelbank a
         certificate substantially in the form of the certificate attached as
         Exhibit B (copies of which form of certificate will be available at the
         offices of Euroclear in Brussels and Cedelbank in Luxembourg and the
         specified office of each of the Paying Agents).

<PAGE>
                                       38

         Upon any payment of principal and endorsement of such payment on Part I
         of the Schedule hereto, the principal amount of this temporary Global
         Note shall be reduced for all purposes by the principal amount so paid
         and endorsed.

         All payments of any amounts payable and paid to the bearer of this
         temporary Global Note shall be valid and, to the extent of the sums so
         paid, effectual to satisfy and discharge the liability for the moneys
         payable hereon, on the Permanent Global Note and on the relevant
         definitive Notes and Coupons.

4.       ACCOUNTHOLDERS

         For so long as all of the Notes are represented by one or both of the
         Permanent Global Note and this temporary Global Note and such Global
         Note(s) is/are held on behalf of Euroclear and/or Cedelbank, each
         person who is for the time being shown in the records of Euroclear or
         Cedelbank as the holder of a particular principal amount of such Notes
         (each an "ACCOUNTHOLDER") (in which regard any certificate or other
         document issued by Euroclear or Cedelbank as to the principal amount of
         such Notes standing to the account of any person shall be conclusive
         and binding for all purposes) shall be treated as the holder of such
         principal amount of such Notes for all purposes (including for the
         purposes of any quorum requirements of, or the right to demand a poll
         at, meetings of the Noteholders) other than with respect to the payment
         of principal and interest on such Notes, the right to which shall be
         vested, as against the Issuer and the Guarantor, solely in the bearer
         of the relevant Global Note in accordance with and subject to its terms
         and the terms of the Trust Deed. Each Accountholder must look solely to
         Euroclear or Cedelbank, as the case may be, for its share of each
         payment made to the bearer of the relevant Global Note.

5.       NOTICES

         For so long as all of the Notes are represented by one or both of the
         Permanent Global Note and this temporary Global Note and such Global
         Note(s) is/are held on behalf of Euroclear and/or Cedelbank, notices to
         Noteholders may be given by delivery of the relevant notice to
         Euroclear and/or Cedelbank (as the case may be) for communication to
         the relative Accountholders rather than by publication as required by
         Condition 14 provided that, so long as the Notes are listed on the
         Luxembourg Stock Exchange, the Luxembourg Stock Exchange so agrees. Any
         such notice shall be deemed to have been given to the Noteholders on
         the seventh day after the day on which such notice is delivered to
         Euroclear and/or Cedelbank (as the case may be) as aforesaid.

6.       PRESCRIPTION

         Claims against the Issuer and the Guarantor in respect of principal and
         interest on the Notes represented by the Permanent Global Note or this
         temporary Global Note will be prescribed after 10 years (in the case of
         principal) and five years (in the case of interest) from the Relevant
         Date (as defined in Condition 7(d)).

7.       CONVERSION

         For so long as any Bond is represented by one or both of the Permanent
         Global Note and/or this temporary Global Note an Accountholder wishing
         to exercise Conversion Rights in respect of any such Note(s) shall not
         be required to deposit the relevant Note(s) with the Conversion Agent
         to whom the relevant Conversion Notice is delivered and references in
         Condition 6 to the person delivering a Note for conversion shall be
         deemed to be references to the person delivering a Conversion Notice.
         On the Conversion Date in respect of such Note(s), the Conversion Agent
         to whom the relevant Conversion Notice is delivered shall, on

<PAGE>
                                       39

         behalf of the relevant Accountholder, obtain confirmation from
         Euroclear and/or, as the case may be, Cedelbank that the Accountholder
         is shown in its records as the holder of at least the principal amount
         of Notes in respect of which the Conversion Notice has been delivered.
         On any such conversion, the portion of the principal amount hereof so
         converted shall be endorsed by or on behalf of the Principal Paying
         Agent on behalf of the Company in Part II of the Schedule hereto
         whereupon the principal amount hereof shall be reduced for all purposes
         by the amount so converted and endorsed.

8.       PUT OPTION

         For so long as all of the Notes are represented by one or both of the
         Permanent Global Note and/or this temporary Global Note and such Global
         Note(s) is/are held on behalf of Euroclear and/or Cedelbank, the option
         of the Noteholders provided for in Condition 8(c) may be exercised by
         the Accountholders giving a duly completed redemption notice in the
         form obtainable from any of the Paying Agents to the Principal Paying
         Agent of the principal amount of the Notes in respect of which such
         option is exercised and at the same time presenting or procuring the
         presentation of this temporary Global Note to the Principal Paying
         Agent for notation accordingly within the time limits set forth in that
         Condition. Whilst all of the Notes are represented by one or both of
         the Permanent Global Note and this temporary Global Note and such
         Global Note(s) is/are held on behalf of Euroclear and/or Cedelbank,
         redemption notices shall be given in accordance with the standard
         procedures of Euroclear and/or Cedelbank.

9.       TRUSTEE'S POWERS

         In considering the interests of Noteholders while this temporary Global
         Note is held on behalf of a clearing system the Trustee may have regard
         to any information provided to it by such clearing system or its
         operator as to the identity (either individually or by category) of its
         Accountholders with entitlements to this temporary Global Note and may
         consider such interests as if such Accountholders were severally the
         holders of this temporary Global Note.

10.      EUROCLEAR AND CEDELBANK

         References herein to Euroclear and/or Cedelbank shall be deemed to
         include references to any other clearing system approved by the
         Trustee.

11.      AUTHENTICATION

         This temporary Global Note shall not be or become valid or obligatory
         for any purpose unless and until authenticated by or on behalf of the
         Principal Paying Agent.

12.      GOVERNING LAW

         This temporary Global Note is governed by, and shall be construed in
         accordance with, the laws of England and the Issuer has in the Trust
         Deed submitted to the jurisdiction of the courts of England for all
         purposes in connection with this temporary Global Note.

<PAGE>
                                       40

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

                                  MERIDIAN B.V.

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

Issued in London, England on 25th November, 1999.

CERTIFICATE OF AUTHENTICATION

This temporary Global Note is duly authenticated without recourse, warranty or
liability.

 ..................................

Duly authorised
for and on behalf of
The Chase Manhattan Bank
as Principal Paying Agent

<PAGE>
                                       41

                                  THE SCHEDULE

                                     PART I

                   PAYMENTS OF PRINCIPAL PREMIUM AND INTEREST

The following payments on this temporary Global Note have been made:

<TABLE>
<CAPTION>
                                                                  Remaining principal
                                                                       amount of this            Notation
                                                                     temporary Global             made on
           Date              Interest           Principal              Note following           behalf of
           made                  paid                paid                such payment          the Issuer

                               (euro)                (euro)                    (euro)

<S>        <C>                <C>               <C>               <C>                          <C>
           ====               =======           =========         ===================          ==========
           ====               =======           =========         ===================          ==========
           ====               =======           =========         ===================          ==========
           ====               =======           =========         ===================          ==========
           ====               =======           =========         ===================          ==========
           ====               =======           =========         ===================          ==========
           ====               =======           =========         ===================          ==========
           ====               =======           =========         ===================          ==========
           ====               =======           =========         ===================          ==========
           ====               =======           =========         ===================          ==========
           ====               =======           =========         ===================          ==========
           ====               =======           =========         ===================          ==========
           ====               =======           =========         ===================          ==========
           ====               =======           =========         ===================          ==========
           ====               =======           =========         ===================          ==========
           ====               =======           =========         ===================          ==========
           ====               =======           =========         ===================          ==========
</TABLE>

<PAGE>
                                       42

                                     PART II

              EXCHANGES FOR PERMANENT GLOBAL NOTE, CONVERSIONS AND
                           PURCHASES AND CANCELLATIONS

The following exchanges of a part of this temporary Global Note for a like part
of the Permanent Global Note, conversions and/or purchases and cancellations of
a part of this temporary Global Note have been made:

<TABLE>
<CAPTION>
               Part of principal
                  amount of this                                 Part of      Aggregate principal
                       temporary                               principal           amount of this
                     Global Note                               amount of                temporary
                       exchanged    Part of principal               this              Global Note
                      for a like       amount of this          temporary           following such       Notation
                     part of the            temporary        Global Note     exchange, conversion        made on
         Date          Permanent          Global Note      purchased and              or purchase      behalf of
         Made        Global Note            converted          cancelled         and cancellation     the Issuer

                    EURO              EURO              EURO                EURO

        <S>      <C>                 <C>                  <C>                   <C>                  <C>
        =====    ============        ============         ==========            ==========           =========
        =====    ============        ============         ==========            ==========           =========
        =====    ============        ============         ==========            ==========           =========
        =====    ============        ============         ==========            ==========           =========
        =====    ============        ============         ==========            ==========           =========
        =====    ============        ============         ==========            ==========           =========
        =====    ============        ============         ==========            ==========           =========
        =====    ============        ============         ==========            ==========           =========
        =====    ============        ============         ==========            ==========           =========
        =====    ============        ============         ==========            ==========           =========
        =====    ============        ============         ==========            ==========           =========
        =====    ============        ============         ==========            ==========           =========
        =====    ============        ============         ==========            ==========           =========
        =====    ============        ============         ==========            ==========           =========
</TABLE>

<PAGE>
                                       43

                                    EXHIBIT A

                                  MERIDIAN B.V.

                                 euro360,030,000

              1.50 PER CENT. GUARANTEED CONVERTIBLE NOTES DUE 2004
                               (the "SECURITIES")

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

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

We further certify (i) that we are not making available herewith for exchange
(or, if relevant, exercise of any rights or collection of any interest) any
portion of the temporary global Security excepted in such certifications and
(ii) that as of the date hereof we have not received any notification from any
of our Member Organisations to the effect that the statements made by such
Member Organisations with respect to any portion of the part submitted herewith
for exchange (or, if relevant, exercise of any rights or collection of any
interest) are no longer true and cannot be relied upon as of the date hereof.

<PAGE>
                                       44

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

*Dated

                   [MORGAN GUARANTY TRUST COMPANY OF NEW YORK,
                       BRUSSELS OFFICE, AS OPERATOR OF THE
                          euroCLEAR SYSTEM] [CEDELBANK]

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

                              Authorised Signatory

* To be dated no earlier than the date to which this certification relates,
  namely (a) the payment date or (b) the date set for the exchange of the
  temporary Global Note for the Permanent Global Note.

<PAGE>
                                       45

                                    EXHIBIT B

                                  MERIDIAN B.V.

                                 euro360,030,000

              1.50 PER CENT. GUARANTEED CONVERTIBLE NOTES DUE 2004
                               (the "SECURITIES")

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

If the Securities are of the category contemplated in Section 230.903(c)(3) of
Regulation S under the Securities Act of 1933, as amended, (the "ACT"), then
this is also to certify that, except as set forth below (i) in the case of debt
securities, the Securities are beneficially owned by (a) non-U.S. person(s) or
(b) U.S. person(s) who purchased the Securities in transactions which did not
require registration under the Act; or (ii) in the case of equity securities,
the Securities are owned by (x) non-U.S. person(s) (and such person(s) are not
acquiring the Securities for the account or benefit of U.S. person(s)) or (y)
U.S. person(s) who purchased the Securities in a transaction which did not
require registration under the Act. If this certification is being delivered in
connection with the exercise of warrants pursuant to Section 230.902(m) of
Regulation S under the Act, then this is further to certify that, except as set
forth below, the Securities are being exercised by and on behalf of non-U.S.
person(s). As used in this paragraph the term "U.S. PERSON" has the meaning
given to it by Regulation S under the Act.

As used herein, "UNITED STATES" means the United States of America (including
the States and the District of Columbia); and its "possessions" include Puerto
Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake

Island and the Northern Mariana Islands.

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

This certification excepts and does not relate to euro [ ] of such interest in
the above Securities in respect of which we are not able to certify and as to
which we understand exchange and delivery of definitive Securities (or, if
relevant, exercise of any rights or collection of any interest) cannot be made
until we do so certify.

<PAGE>
                                       46

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

* Dated

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

         [Name of person giving certification]
         (As, or as agent for, the beneficial
         owner(s) of the Securities
         to which this certification relates)

* To be dated no earlier than the fifteenth day before the date to which this
  certification relates, namely (a) the payment date or (b) the date set for
  the exchange of the temporary Global Note for the Permanent Global Note.

<PAGE>
                                       47

                   - FORM OF ORIGINAL PERMANENT GLOBAL NOTE -

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

                                  MERIDIAN B.V.

             (Incorporated with limited liability under the laws of
                                The Netherlands)

                              PERMANENT GLOBAL NOTE

                               representing up to

              euro360,030,000 1.50 PER CENT. GUARANTEED CONVERTIBLE
                                 NOTES DUE 2004

                   Unconditionally and irrevocably guaranteed
                   as to payment of principal and interest by

                                   ADECCO S.A.

                      (Incorporated with limited liability
                         under the laws of Switzerland)

This Note is a permanent Global Note without interest coupons in respect of a
duly authorised issue of Notes of Meridian B.V. (the "ISSUER"), designated as
specified in the title hereof (the "NOTES"), limited to the aggregate principal
amount of up to three hundred and sixty million and thirty thousand euro
(euro360,030,000) and constituted by a Trust Deed dated 25th November, 1999
(the "TRUST DEED") between the Issuer, Adecco S.A. as guarantor (the
"GUARANTOR") and Chase Manhattan Trustees Limited as trustee (the trustee for
the time being thereof being herein called the "TRUSTEE"). References herein to
the Conditions (or to any particular numbered Condition) shall be to the
Conditions (or that particular one of them) set out in the Second Schedule to
the Trust Deed. The aggregate principal amount from time to time of this
permanent Global Note shall be that amount not exceeding euro360,030,000 as
shall be shown by the latest entry duly made in the Schedule hereto.

1.       PROMISE TO PAY

         Subject as provided in this permanent Global Note the Issuer promises
         to pay to the bearer the principal amount of this permanent Global Note
         (being at the date hereof three hundred and sixty million and thirty
         thousand euro (euro360,030,000)) on 25th November, 2004 (or on such
         earlier date as the said principal amount may become repayable in
         accordance with the Conditions or the Trust Deed) and to pay interest
         annually in arrear on 25th November on the principal amount from time
         to time of this permanent Global Note at the rate of 1.50 per cent. per
         annum together with such other amounts (if any) as may be payable, all
         subject to and in accordance with the Conditions and the provisions of
         the Trust Deed.

2.       EXCHANGE FOR DEFINITIVE NOTES AND PURCHASES

         This permanent Global Note will be exchangeable in whole but not in
         part (free of charge to the holder) for definitive Notes only (i) if
         either Morgan Guaranty Trust Company of New York, Brussels office, as
         operator of the Euroclear System ("euroCLEAR") or Cedelbank is closed
         for business for a continuous period of 14 days (other than by reason
         of holiday, statutory or otherwise) or announces an intention
         permanently to cease business or does in

<PAGE>
                                       48

         fact do so, or (ii) if the Issuer or the Guarantor would suffer a
         material disadvantage as a result of a change in laws or regulations
         (taxation or otherwise) of The Netherlands or Switzerland,
         respectively, which would not be suffered (or would not be suffered to
         the same extent) were the Notes in definitive form and a certificate to
         such effect signed by two Directors of the Issuer or, as the case may
         be, the Guarantor is given to the Trustee or (iii) upon the giving of a
         default notice (as defined in Condition 9) in the manner provided in
         Condition 9. Thereupon (in the case of (i) and (ii) above the holder of
         this permanent Global Note (acting on the instructions of (an)
         Accountholder(s) (as defined below)) may give notice to the Issuer, and
         (in the case of (ii) above) the Issuer may give notice to the Trustee
         and the Noteholders, of its intention to exchange this permanent Global
         Note for definitive Notes on or after the Exchange Date (as defined
         below).

         On or after the Exchange Date the holder of this permanent Global Note
         may surrender this permanent Global Note to or to the order of the
         Principal Paying Agent. In exchange for this permanent Global Note the
         Issuer will deliver, or procure the delivery of, definitive Notes in
         bearer form, serially numbered, in the denomination of euro10,000
         each with interest coupons ("COUPONS") attached on issue in respect of
         interest which has not already been paid on this permanent Global Note
         in exchange for the whole of this permanent Global Note.

         "EXCHANGE DATE" means a day specified in the notice requiring exchange
         falling not less than 60 days after that on which such notice is given
         and on which banks are open for business in the city in which the
         specified office of the Principal Paying Agent is located and, except
         in the case of exchange pursuant to (i) above, in the city in which the
         relevant clearing system is located.

         Upon (i) any exchange of a part of the Temporary Global Note for a part
         of this permanent Global Note or (ii) the purchase by or on behalf of
         the Issuer, the Guarantor or any other Subsidiary of the Guarantor and
         cancellation of a part of this permanent Global Note in accordance with
         the Conditions, the portion of the principal amount hereof so exchanged
         or so purchased and cancelled shall be endorsed by or on behalf of the
         Principal Paying Agent on behalf of the Issuer on Part II of the
         Schedule hereto, whereupon the principal amount hereof shall be
         increased or, as the case may be, reduced for all purposes by the
         amount so exchanged or so purchased and cancelled and endorsed. Upon
         the exchange of the whole of this permanent Global Note for definitive
         Notes this permanent Global Note shall be surrendered to or to the
         order of the Principal Paying Agent and cancelled and, if the holder of
         this permanent Global Note requests, returned to it together with any
         relevant definitive Notes.

3.       ACCOUNTHOLDERS

         For so long as all of the Notes are represented by one or both of the
         Temporary Global Note and this permanent Global Note and such Global
         Note(s) is/are held on behalf of Euroclear and/or Cedelbank, each
         person who is for the time being shown in the records of Euroclear or
         Cedelbank as the holder of a particular principal amount of such Notes
         (each an "ACCOUNTHOLDER") (in which regard any certificate or other
         document issued by Euroclear or Cedelbank as to the principal amount of
         such Notes standing to the account of any person shall be conclusive
         and binding for all purposes) shall be treated as the holder of such
         principal amount of such Notes for all purposes (including for the
         purposes of any quorum requirements of, or the right to demand a poll
         at, meetings of the Noteholders) other than with respect to the payment
         of principal and interest on such Notes, the right to which shall be
         vested, as against the Issuer, the Guarantor, solely in the bearer of
         the relevant Global Note in accordance with and subject to its terms
         and the terms of the Trust Deed. Each Accountholder must look solely to
         Euroclear or Cedelbank, as the case may be, for its share of each
         payment made to the bearer of the relevant Global Note.

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