Document:

Exhibit 4.1

 

EXECUTION COPY

 

PRUDENTIAL plc

 

Issuer

 

and

 

Wilmington Trust Company

 

Senior Trustee

 

 

SENIOR INDENTURE

 

Dated as of September 8,
2008

 

 

Senior Debt Securities

 

 

PRUDENTIAL plc

 

Reconciliation and tie
showing the location in this Senior Indenture of the provisions inserted
pursuant to Sections 310 to 318(a), inclusive, of the Trust Indenture Act of
1939.

 

	
  Trust Indenture Act, Section

  	
   

  	
  Senior Indenture Section

  
	
  s310

  	
   

  	
  (a)(1)

  	
   

  	
  6.09

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  6.09

  
	
   

  	
   

  	
  (a)(3)

  	
   

  	
  Not applicable

  
	
   

  	
   

  	
  (a)(4)

  	
   

  	
  Not applicable

  
	
   

  	
   

  	
  (a)(5)

  	
   

  	
  6.09

  
	
   

  	
   

  	
  (b)

  	
   

  	
  6.08 and 6.10

  
	
   

  	
   

  	
  (c)

  	
   

  	
  Not applicable

  
	
  s311

  	
   

  	
  (a)

  	
   

  	
  6.13

  
	
   

  	
   

  	
  (b)

  	
   

  	
  6.13

  
	
   

  	
   

  	
  (c)

  	
   

  	
  Not applicable

  
	
  s312

  	
   

  	
  (a)

  	
   

  	
  7.01 and 7.02(a)

  
	
   

  	
   

  	
  (b)

  	
   

  	
  7.02(b)

  
	
   

  	
   

  	
  (c)

  	
   

  	
  7.02(c)

  
	
  s313

  	
   

  	
  (a)

  	
   

  	
  7.03(a)

  
	
   

  	
   

  	
  (b)

  	
   

  	
  7.03(a)

  
	
   

  	
   

  	
  (c)

  	
   

  	
  7.03(a)

  
	
   

  	
   

  	
  (d)

  	
   

  	
  7.03(b)

  
	
  s314

  	
   

  	
  (a)

  	
   

  	
  7.04 and 10.04

  
	
   

  	
   

  	
  (b)

  	
   

  	
  Not applicable

  
	
   

  	
   

  	
  (c)

  	
   

  	
  1.02

  
	
   

  	
   

  	
  (c)(1)

  	
   

  	
  1.02

  
	
   

  	
   

  	
  (c)(2)

  	
   

  	
  1.02

  
	
   

  	
   

  	
  (c)(3)

  	
   

  	
  1.01

  
	
   

  	
   

  	
  (d)

  	
   

  	
  Not applicable

  
	
   

  	
   

  	
  (e)

  	
   

  	
  1.02

  
	
  s315

  	
   

  	
  (a)

  	
   

  	
  6.01(a)

  
	
   

  	
   

  	
  (b)

  	
   

  	
  6.02 and 7.03(a)

  
	
   

  	
   

  	
  (c)

  	
   

  	
  6.01(b)

  
	
   

  	
   

  	
  (d)

  	
   

  	
  6.01(c)

  
	
   

  	
   

  	
  (d)(1)

  	
   

  	
  6.01(c)(1)

  
	
   

  	
   

  	
  (d)(2)

  	
   

  	
  6.01(c)(2)

  
	
   

  	
   

  	
  (d)(3)

  	
   

  	
  6.01(c)(3)

  
	
   

  	
   

  	
  (e)

  	
   

  	
  5.14

  
	
  s316

  	
   

  	
  (a)(1)(A)

  	
   

  	
  5.02 and 5.12

  
	
   

  	
   

  	
  (a)(1)(B)

  	
   

  	
  5.13

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  Not applicable

  
	
   

  	
   

  	
  (b)

  	
   

  	
  5.07

  
	
   

  	
   

  	
  (c)

  	
   

  	
  1.04(a)

  
	
  s317

  	
   

  	
  (a)(1)

  	
   

  	
  5.03

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  5.04

  

 

i

 

	
   

  	
   

  	
  (b)

  	
   

  	
  10.03

  
	
  s318

  	
   

  	
  (a)

  	
   

  	
  1.07

  

 

	
   

  	
   

  	
  NOTE: This
  reconciliation and tie shall not, for any purpose, be deemed to be part of
  this Senior Indenture.

  

 

ii

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE ONE

  	
   

  	
   

  
	
  DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.01.

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  Section 1.02.

  	
   

  	
  Compliance Certificates and Opinions

  	
   

  	
  10

  
	
  Section 1.03.

  	
   

  	
  Form of Documents Delivered to Senior Trustee

  	
   

  	
  10

  
	
  Section 1.04.

  	
   

  	
  Acts of Holders; Communication by Holders with Other
  Holders

  	
   

  	
  11

  
	
  Section 1.05.

  	
   

  	
  Notices, Etc., to Senior Trustee or Issuer

  	
   

  	
  12

  
	
  Section 1.06.

  	
   

  	
  Notice to Holders; Waiver

  	
   

  	
  13

  
	
  Section 1.07.

  	
   

  	
  Conflict with Trust Indenture Act

  	
   

  	
  13

  
	
  Section 1.08.

  	
   

  	
  Effect of Headings and Table of Contents

  	
   

  	
  14

  
	
  Section 1.09.

  	
   

  	
  Successors and Assigns

  	
   

  	
  14

  
	
  Section 1.10.

  	
   

  	
  Separability Clause

  	
   

  	
  14

  
	
  Section 1.11.

  	
   

  	
  Benefits of Senior Indenture

  	
   

  	
  14

  
	
  Section 1.12.

  	
   

  	
  Governing Law

  	
   

  	
  14

  
	
  Section 1.13.

  	
   

  	
  Non-Business Day

  	
   

  	
  14

  
	
  Section 1.14.

  	
   

  	
  Immunity of Incorporators, Stockholders, Officers
  and Directors

  	
   

  	
  15

  
	
  Section 1.15.

  	
   

  	
  Certain Matters Relating to Currencies

  	
   

  	
  15

  
	
  Section 1.16.

  	
   

  	
  Language of Notices, Etc.

  	
   

  	
  15

  
	
  Section 1.17.

  	
   

  	
  Appointment of Agent for Service

  	
   

  	
  15

  
	
  Section 1.18.

  	
   

  	
  Rules by the Senior Trustee and Agents

  	
   

  	
  17

  
	
  Section 1.19.

  	
   

  	
  Successors; No Recourse Against Others

  	
   

  	
  17

  
	
  Section 1.20.

  	
   

  	
  Duplicate Originals

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  TWO

  	
   

  	
   

  
	
  SECURITY
  FORMS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.01.

  	
   

  	
  Forms of Securities

  	
   

  	
  17

  
	
  Section 2.02.

  	
   

  	
  Form of Senior Trustee’s Certificate of
  Authentication

  	
   

  	
  17

  
	
  Section 2.03.

  	
   

  	
  Securities in Global Form

  	
   

  	
  18

  

 

iii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  THREE

  	
   

  	
   

  
	
  THE
  SECURITIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
   

  	
  Title; Payment and Terms

  	
   

  	
  19

  
	
  Section 3.02.

  	
   

  	
  Denominations and Currencies

  	
   

  	
  22

  
	
  Section 3.03.

  	
   

  	
  Execution, Authentication, Delivery and Dating

  	
   

  	
  23

  
	
  Section 3.04.

  	
   

  	
  Temporary Securities and Exchange of Securities

  	
   

  	
  24

  
	
  Section 3.05.

  	
   

  	
  Registration, Registration of Transfer and Exchange

  	
   

  	
  25

  
	
  Section 3.06.

  	
   

  	
  Mutilated, Destroyed, Lost and Stolen Securities

  	
   

  	
  27

  
	
  Section 3.07.

  	
   

  	
  Payment of Interest; Interest Rights Preserved

  	
   

  	
  28

  
	
  Section 3.08.

  	
   

  	
  Persons Deemed Owners

  	
   

  	
  29

  
	
  Section 3.09.

  	
   

  	
  Cancellation

  	
   

  	
  29

  
	
  Section 3.10.

  	
   

  	
  Computation of Interest

  	
   

  	
  30

  
	
  Section 3.11.

  	
   

  	
  Currency and Manner of Payments in Respect of
  Securities

  	
   

  	
  30

  
	
  Section 3.12.

  	
   

  	
  Currency Determination Agent

  	
   

  	
  33

  
	
  Section 3.13.

  	
   

  	
  Common Code, CUSIP or ISIN Numbers

  	
   

  	
  34

  
	
  Section 3.14.

  	
   

  	
  Authenticating Agents

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  FOUR

  	
   

  	
   

  
	
  SATISFACTION
  AND DISCHARGE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.01.

  	
   

  	
  Satisfaction and Discharge of Securities of any
  Series

  	
   

  	
  35

  
	
  Section 4.02.

  	
   

  	
  Application of Trust Money

  	
   

  	
  38

  
	
  Section 4.03.

  	
   

  	
  Satisfaction and Discharge of Senior Indenture

  	
   

  	
  39

  
	
  Section 4.04.

  	
   

  	
  Reinstatement

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  FIVE

  	
   

  	
   

  
	
  REMEDIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.01.

  	
   

  	
  Events of Default

  	
   

  	
  39

  
	
  Section 5.02.

  	
   

  	
  Acceleration of Maturity; Rescission and Annulment

  	
   

  	
  41

  
	
  Section 5.03.

  	
   

  	
  Collection of Indebtedness and Suits for Enforcement
  by Senior Trustee

  	
   

  	
  42

  
	
  Section 5.04.

  	
   

  	
  Senior Trustee May File Proofs of Claim

  	
   

  	
  43

  
	
  Section 5.05.

  	
   

  	
  Senior Trustee May Enforce Claims Without
  Possession of Securities

  	
   

  	
  44

  

 

iv

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.06.

  	
   

  	
  Application of Money Collected

  	
   

  	
  44

  
	
  Section 5.07.

  	
   

  	
  Limitation on Suits

  	
   

  	
  45

  
	
  Section 5.08.

  	
   

  	
  Unconditional Right of Holders to Receive Principal
  (and Premium, if any) and Interest, if any

  	
   

  	
  45

  
	
  Section 5.09.

  	
   

  	
  Restoration of Rights and Remedies

  	
   

  	
  46

  
	
  Section 5.10.

  	
   

  	
  Rights and Remedies Cumulative

  	
   

  	
  46

  
	
  Section 5.11.

  	
   

  	
  Delay or Omission Not Waiver

  	
   

  	
  46

  
	
  Section 5.12.

  	
   

  	
  Control by Holders

  	
   

  	
  46

  
	
  Section 5.13.

  	
   

  	
  Waiver of Past Defaults

  	
   

  	
  47

  
	
  Section 5.14.

  	
   

  	
  Undertaking for Costs

  	
   

  	
  47

  
	
  Section 5.15.

  	
   

  	
  Waiver of Stay or Extension Laws

  	
   

  	
  47

  
	
  Section 5.16.

  	
   

  	
  Judgment Currency

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  SIX

  	
   

  	
   

  
	
  THE
  SENIOR TRUSTEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.01.

  	
   

  	
  Certain Duties and Responsibilities

  	
   

  	
  48

  
	
  Section 6.02.

  	
   

  	
  Notice of Default

  	
   

  	
  49

  
	
  Section 6.03.

  	
   

  	
  Certain Rights of Senior Trustee

  	
   

  	
  50

  
	
  Section 6.04.

  	
   

  	
  Not Responsible for Recitals or Issuance of
  Securities

  	
   

  	
  51

  
	
  Section 6.05.

  	
   

  	
  May Hold Securities

  	
   

  	
  51

  
	
  Section 6.06.

  	
   

  	
  Money Held in Trust

  	
   

  	
  52

  
	
  Section 6.07.

  	
   

  	
  Compensation and Reimbursement

  	
   

  	
  52

  
	
  Section 6.08.

  	
   

  	
  Disqualification; Conflicting Interests

  	
   

  	
  53

  
	
  Section 6.09.

  	
   

  	
  Corporate Senior Trustee Required; Different Senior
  Trustees for Different Series; Eligibility

  	
   

  	
  53

  
	
  Section 6.10.

  	
   

  	
  Resignation and Removal; Appointment of Successor

  	
   

  	
  54

  
	
  Section 6.11.

  	
   

  	
  Acceptance of Appointment by Successor

  	
   

  	
  55

  
	
  Section 6.12.

  	
   

  	
  Merger, Conversion, Consolidation or Succession to
  Business

  	
   

  	
  57

  
	
  Section 6.13.

  	
   

  	
  Preferential Collection of Claims Against the Issuer

  	
   

  	
  57

  

 

v

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  SEVEN

  	
   

  	
   

  
	
  HOLDERS’
  LISTS AND REPORTS BY SENIOR TRUSTEE AND ISSUER

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.01.

  	
   

  	
  Issuer to Furnish Senior Trustee Names and Addresses
  of Holders

  	
   

  	
  57

  
	
  Section 7.02.

  	
   

  	
  Preservation of Information; Communications to
  Holders

  	
   

  	
  58

  
	
  Section 7.03.

  	
   

  	
  Reports by Senior Trustee

  	
   

  	
  59

  
	
  Section 7.04.

  	
   

  	
  Reports by Issuer

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  EIGHT

  	
   

  	
   

  
	
  CONSOLIDATION,
  MERGER, CONVEYANCE OR TRANSFER

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 8.01.

  	
   

  	
  Issuer May Consolidate, Etc., Only on Certain
  Terms

  	
   

  	
  60

  
	
  Section 8.02.

  	
   

  	
  Successor Corporation Substituted

  	
   

  	
  61

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  NINE

  	
   

  	
   

  
	
  SUPPLEMENTAL
  INDENTURES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 9.01.

  	
   

  	
  Supplemental Senior Indentures Without Consent of
  Holders

  	
   

  	
  61

  
	
  Section 9.02.

  	
   

  	
  Supplemental Senior Indentures With Consent of
  Holders

  	
   

  	
  63

  
	
  Section 9.03.

  	
   

  	
  Execution of Supplemental Senior Indentures

  	
   

  	
  64

  
	
  Section 9.04.

  	
   

  	
  Effect of Supplemental Senior Indentures

  	
   

  	
  64

  
	
  Section 9.05.

  	
   

  	
  Conformity With Trust Indenture Act

  	
   

  	
  64

  
	
  Section 9.06.

  	
   

  	
  Reference in Securities to Supplemental Senior
  Indentures

  	
   

  	
  64

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  TEN

  	
   

  	
   

  
	
  COVENANTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.01.

  	
   

  	
  Payment of Principal (and Premium, if any) and
  Interest, if any

  	
   

  	
  65

  
	
  Section 10.02.

  	
   

  	
  Maintenance of Office or Agency

  	
   

  	
  65

  
	
  Section 10.03.

  	
   

  	
  Money for Securities Payments to Be Held in Trust

  	
   

  	
  66

  
	
  Section 10.04.

  	
   

  	
  Statements as to Compliance

  	
   

  	
  67

  
	
  Section 10.05.

  	
   

  	
  Corporate Existence

  	
   

  	
  67

  
	
  Section 10.06.

  	
   

  	
  Negative Pledge

  	
   

  	
  68

  
	
  Section 10.07.

  	
   

  	
  Waiver of Certain Covenants

  	
   

  	
  68

  
	
  Section 10.08.

  	
   

  	
  Payment of Additional Amounts

  	
   

  	
  68

  
	
  Section 10.09.

  	
   

  	
  Calculation of Original Issue Discount

  	
   

  	
  71

  

 

vi

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  ELEVEN

  	
   

  	
   

  
	
  REDEMPTION
  OF SECURITIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 11.01.

  	
   

  	
  Applicability of This Article

  	
   

  	
  71

  
	
  Section 11.02.

  	
   

  	
  Election to Redeem; Notice to Senior Trustee

  	
   

  	
  71

  
	
  Section 11.03.

  	
   

  	
  Selection of Securities to Be Redeemed

  	
   

  	
  72

  
	
  Section 11.04.

  	
   

  	
  Notice of Redemption

  	
   

  	
  72

  
	
  Section 11.05.

  	
   

  	
  Deposit of Redemption Price

  	
   

  	
  73

  
	
  Section 11.06.

  	
   

  	
  Securities Payable on Redemption Date

  	
   

  	
  73

  
	
  Section 11.07.

  	
   

  	
  Securities Redeemed in Part

  	
   

  	
  73

  
	
  Section 11.08.

  	
   

  	
  Tax Redemption

  	
   

  	
  74

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  TWELVE

  	
   

  	
   

  
	
  SINKING
  FUNDS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 12.01.

  	
   

  	
  Applicability of This Article

  	
   

  	
  75

  
	
  Section 12.02.

  	
   

  	
  Satisfaction of Sinking Fund Payments With
  Securities

  	
   

  	
  75

  
	
  Section 12.03.

  	
   

  	
  Redemption of Securities for Sinking Fund

  	
   

  	
  75

  

 

vii

 

PRUDENTIAL SENIOR INDENTURE

 

This is a SENIOR INDENTURE dated as of September 8, 2008, among
Prudential plc, a public limited company duly organized and existing under the
laws of England and Wales and having its principal office at Laurence Pountney
Hill, London EC4R 0HH, England (hereinafter called the “Issuer”), and
Wilmington Trust Company, a banking corporation duly organized and existing
under the laws of Delaware and having its Corporate Trust Office at Rodney
Square North, 1100 North Market Street, Wilmington, Delaware 19890 USA, as
Senior Trustee (hereinafter called the “ Senior Trustee”).

 

RECITALS OF THE ISSUER

 

The Issuer deems it necessary to issue from time to time for its lawful
purposes securities in registered form (hereinafter called the “Securities”)
evidencing its unsecured indebtedness and has duly authorized the execution and
delivery of this Senior Indenture to provide for the issuance from time to time
of the Securities, unlimited as to principal amount, to have such titles, to
bear such rates of interest, to mature at such time or times and to have such
other provisions as shall be established as hereinafter provided.

 

All things necessary to make this Senior Indenture a valid agreement of
the Issuer, in accordance with its terms, have been done, and the Issuer
proposes to do all things necessary to make the Securities, when executed by
the Issuer and authenticated and delivered by the Senior Trustee hereunder and
duly issued by the Issuer, the valid obligations of the Issuer as hereinafter
provided.

 

NOW THEREFORE, THIS SENIOR INDENTURE WITNESSETH:

 

For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually covenanted and agreed, for
the equal and proportionate benefit of all Holders of the Securities, as
follows:

 

ARTICLE
ONE

 

DEFINITIONS
AND OTHER PROVISIONS OF GENERAL APPLICATION

 

SECTION 1.01.                Definitions.

 

For all purposes of this Senior Indenture and all Securities issued
hereunder, except as otherwise expressly provided herein, in one or more
indentures supplemental hereto or in an Officers’ Certificate pursuant to Section 3.01
or unless the context otherwise requires:

 

(1)           the terms defined in this Article have
the meanings assigned to them in this Article and include the plural as
well as the singular;

 

(2)           all other terms used herein which are
defined in the Trust Indenture Act, either directly or by reference therein,
have the meanings assigned to them therein;

 

 

(3)           all accounting terms not otherwise
defined herein have the meanings assigned to them in accordance with generally
accepted accounting principles in the United Kingdom, and the term “generally
accepted accounting principles” with respect to any computation required or
permitted hereunder shall mean such accounting principles as are generally
accepted in the United Kingdom at the date or time of such computation; and

 

(4)           the words “herein”, “hereof” and “hereunder”
and other words of similar import refer to this Senior Indenture as a whole and
not to any particular Article, Section or other subdivision.

 

Certain terms, used principally in Article Three and Article Six,
are defined in those Articles.

 

“Act”, when used with respect to any
Holder, has the meaning specified in Section 1.04.

 

“Affiliate” of any specified Person means
any other Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified Person.  For the purposes of this definition, “control”,
when used with respect to any specified Person, means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing.

 

“Auditors” means the auditors for the
time being of the Issuer, or if there shall be joint auditors of the Issuer,
any one or more of such joint auditors.

 

“Authenticating Agent” means any Person
authorized to authenticate and deliver Securities in the name of and as the
agent of, the Senior Trustee for the Securities of any series pursuant to Section 3.14.

 

“Bankruptcy Law” means any bankruptcy,
insolvency, reorganization or other similar law of the United States or any
State thereof, England or Wales or any other applicable country or
jurisdiction.

 

“Board of Directors” means the board of
directors of the Issuer or any duly authorized committee of that board or any
director or directors and/or officer or officers of the Issuer to whom that
board or committee shall have duly delegated its authority.

 

“Board Resolution” means (i) a copy
of a resolution certified by a director, the Secretary or a Deputy or Assistant
Secretary of the Issuer to have been duly adopted by the Board of Directors or
an authorized committee thereof and to be in full force and effect on the date
of such certification, or (ii) a certificate signed by the director or
directors and/or officer or officers to whom the Board of Directors of the
Issuer shall have duly delegated its authority, and, in each case, delivered to
the Senior Trustee for the Securities of any series.

 

“Business Day”, when used with respect to
any particular Place of Payment, means, unless otherwise specified in the
Securities of a series, each day, other than a Saturday or Sunday, which is not
a day on which commercial banking institutions in The City of New York 

 

2

 

or in London, England or in the applicable Place of
Payment, or, in respect of any payment to be made in a Foreign Currency, in the
principal financial center of the country issuing such Foreign Currency, are
authorized or required by law, regulation or executive order to close, and
shall otherwise mean each day, other than a Saturday or Sunday, which is not a
day on which banking institutions, at the place where any specified act
pursuant to this Senior Indenture is to occur, are authorized or required by
law, regulation or executive order to close.

 

“Certificate of a Firm of Independent Public Accountants”
means a certificate in form and substance reasonably acceptable to the Senior
Trustee signed by a firm of independent public accountants of nationally
recognized standing in the country of organization of the Issuer selected by
the Issuer and reasonably acceptable to the Senior Trustee, which may include
the Auditors of the Issuer.

 

“Commission” means the United States
Securities and Exchange Commission, as from time to time constituted, created
under the Exchange Act (as defined below), or if at any time after the
execution of this instrument such Commission is not existing and performing the
duties now assigned to it under the Trust Indenture Act, then the body
performing such duties on such date.

 

“Component Currency” has the meaning
specified in Section 3.11(h).

 

“Conversion Date” has the meaning
specified in Section 3.11(d).

 

“Conversion Event” means the
unavailability of any Foreign Currency or currency unit due to the imposition
of exchange controls or other circumstances beyond the control of the Issuer.

 

“Corporate Trust Office” means the office
of the Senior Trustee for Securities of any series at which at any particular
time its corporate trust business shall be principally administered, which
office of Wilmington Trust Company, at the date of the execution of this Senior
Indenture, is located at Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890 USA.

 

“corporation” includes corporations,
associations, companies and business trusts.

 

“Currency Determination Agent”, with respect
to Securities of any series, means, unless otherwise specified in the
Securities of a series, a New York Clearing House bank designated pursuant to Section 3.01
or Section 3.12.

 

“Currency Determination Agent’s Certificate”
means a certificate or facsimile thereof setting forth (i) the applicable
Market Exchange Rate and (ii) the Dollar, Foreign Currency or currency
unit amounts of principal (and premium, if any) and interest, if any (on an
aggregate basis and on the basis of a Security having the lowest denomination
principal amount determined in accordance with Section 3.02 in the
relevant currency or currency unit), payable with respect to a Security of any
series on the basis of such Market Exchange Rate, signed by the Currency
Determination Agent.

 

“Defaulted Interest” has the meaning
specified in Section 3.07.

 

3

 

“Depositary” means, with respect to the
Securities of any series issuable or issued in the form of a global Security,
the Person designated as Depositary by the Issuer pursuant to Section 3.01
until a successor Depositary shall have become such pursuant to the applicable
provisions of this Senior Indenture, and thereafter “Depositary” shall mean or
include each Person who is then a Depositary hereunder, and if at any time
there is more than one such Person, “Depositary” as used with respect to the
Securities of any such series shall mean each Depositary with respect to the
Securities of that series.

 

“Discounted Security” means any Security
which provides for an amount (excluding any amounts attributable to accrued but
unpaid interest thereon) less than the principal amount thereof to be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.02.

 

“Dollar Equivalent of the Currency Unit”
has the meaning specified in Section 3.11(g).

 

“Dollar Equivalent of the Foreign Currency”
has the meaning specified in Section 3.11(f).

 

“Dollars” and the sign “$” mean the currency of the United States that as at the
time of payment is legal tender for the payment of public and private debts.

 

“Election Date” has the meaning specified
in Section 3.11(h).

 

“euro” means the single currency of the
participating member states of the European Union that adopted the euro as
their lawful currency pursuant to the Treaty establishing the European Union
(as amended from time to time), and “participating member states” means those
member states of the European Union from time to time which adopt a single,
shared currency in the Third Stage, as defined and identified in European Union
legislation.

 

“Event of Default” has the meaning
specified in Section 5.01.

 

“Exchange Act” means the United States
Securities Exchange Act of 1934, as amended.

 

“Exchange Rate Officers’ Certificate” means
a certificate or facsimile thereof setting forth (i) the applicable Market
Exchange Rate and (ii) the Dollar, Foreign Currency or currency unit
amounts of principal (and premium, if any) and interest, if any (on an
aggregate basis and on the basis of a Security having the lowest denomination
principal amount determined in accordance with Section 3.02 in the
relevant currency or currency unit), payable with respect to a Security of any
series on the basis of such Market Exchange Rate, signed by the finance
director or treasurer of the Issuer.

 

“Foreign Currency” means a currency
issued and actively maintained as a country’s or countries’ recognized unit of
domestic exchange by the government of any country other than the United
States.

 

4

 

“Holder”, when used with respect to any
Security, means the Person in whose name a Security is registered in the
Security Register.

 

“Indebtedness for Moneys Borrowed” means
the principal amount of (i) all moneys borrowed and (ii) all
debentures (together in each case with any fixed or minimum premium payable on
final redemption or repayment) which neither the Issuer nor any Subsidiary
beneficially owns for the time being.

 

“interest”, when used with respect to a
Discounted Security which by its terms bears interest only after Maturity,
means interest payable after Maturity.

 

“Interest Payment Date”, when used with
respect to any Security, means the Stated Maturity of an installment of
interest on such Security.

 

“Issuer” means the Person named as an “Issuer”
in the first paragraph of this instrument until a successor corporation shall
have become such pursuant to the applicable provisions of this Senior
Indenture, and thereafter “Issuer” shall mean such successor corporation.

 

“Issuer Request” and “Issuer Order” mean, respectively, a written request or order
(a) signed in the name of the Issuer by (i) any two of its chairman
of the board, deputy chairman of the board, group chief executive officer,
treasurer, group finance director or director group finance and risk, (ii) any
one of the foregoing Persons together with any group secretary or deputy group
secretary of the Issuer, or (iii) any two Persons designated by the Issuer
in an Issuer Order previously delivered to the Senior Trustee for Securities of
any series and (b) delivered to the Senior Trustee and/or Principal Paying
Agent, as the case may be, for Securities of any series in accordance with the
provisions of this Senior Indenture.

 

“Market Exchange Rate” means, unless
otherwise specified in the Securities of a series, (i) for any conversion
involving a currency unit on the one hand and Dollars or any Foreign Currency
on the other, the exchange rate between the relevant currency unit and Dollars
or such Foreign Currency calculated by the method specified pursuant to Section 3.01
for the Securities of the relevant series and (ii) for any conversion of
Dollars into any Foreign Currency or for any conversion of one Foreign Currency
into Dollars or another Foreign Currency, the spot rate at noon local time in
the relevant market at which, in accordance with normal banking procedures, the
Dollars or Foreign Currency into which conversion is being made could be
purchased with the Dollars or Foreign Currency from which conversion is being
made from major banks located in either New York City, New York, London,
England, or any other principal market for Dollars or such Foreign Currency, in
each case determined by the Issuer or the Currency Determination Agent.  In the event of the unavailability of any of
the exchange rates provided for in the foregoing clauses (i) and (ii), the
Issuer or the Currency Determination Agent shall use, in its sole discretion
and without liability on its part, such quotation of the Federal Reserve Bank
of New York as of the most recent available date, or quotations from one or
more major banks in New York City, New York, London, England, or other
principal market for such currency or currency unit in question, or such other
quotations as the Issuer or the Currency Determination Agent shall deem
appropriate.  Unless otherwise specified
by the Issuer or the Currency Determination Agent, if there is more than one
market for dealing in any 

 

5

 

currency or currency unit by reason of foreign
exchange regulations or otherwise, the market to be used in respect of such
currency or currency unit shall be that upon which a nonresident issuer of
securities designated in such currency or currency unit would purchase such
currency or currency unit in order to make payments in respect of such
securities.  For purposes of this
definition, a “nonresident issuer” shall mean an issuer that is not a resident
of the country or countries that issue such currency or whose currencies are
included in such currency unit.

 

“Maturity”, when used with respect to any
Security, means the date on which the principal (or, if the context so
requires, lesser amount in the case of Discounted Securities) of (or premium,
if any, on) that Security becomes due and payable as therein or herein
provided, whether at the Stated Maturity or by declaration of acceleration,
call for redemption, request for redemption, repayment at the option of the
Holder, pursuant to any sinking fund provisions or otherwise.

 

“Officers’ Certificate” means a
certificate of the Issuer signed by (i) any two of its chairman of the
board, deputy chairman of the board, group chief executive officer, treasurer,
group finance director or director group finance and risk or (ii) any one
of the foregoing Persons together with any group secretary or deputy group
secretary of the Issuer, and delivered in form and substance reasonably
acceptable to the Senior Trustee and/or Principal Paying Agent, as the case may
be, for the Securities of any series in accordance with the provisions of this
Senior Indenture.

 

“Opinion of Counsel” means a written
opinion of legal counsel in form and substance reasonably acceptable to the
Senior Trustee for the Securities of any series, which legal counsel shall be
reasonably acceptable to the Senior Trustee and who may be regular outside
counsel to the Issuer.

 

“Outstanding”, when used with respect to
the Securities, means, as of the date of determination, all Securities which
have been authenticated and delivered under this Senior Indenture, except:

 

(1)           Securities which have been cancelled by
the Senior Trustee for such Securities or delivered to such Senior Trustee for
cancellation;

 

(2)           Securities or portions thereof for whose
payment or redemption money in the necessary amount and in the required
currency or currency unit has been deposited with or to the order of the Senior
Trustee for such Securities or any Paying Agent (other than the Issuer or any
other obligor upon the Securities) in trust or set aside and segregated in
trust by the Issuer or any other obligor upon the Securities (if the Issuer or
any other obligor upon the Securities shall act as its own Paying Agent) for
the Holders of such Securities; provided,
however, that, if such Securities or portions thereof are to be
redeemed, notice of such redemption has been duly given pursuant to this Senior
Indenture, or provision therefor satisfactory to such Senior Trustee has been
made unless, in each case, there is a default in such payment or redemption;
and

 

(3)           Securities which have been paid pursuant
to Section 3.06 or in exchange for or in lieu of which other Securities
have been authenticated and delivered pursuant to this Senior Indenture, other
than any such Securities in respect of which there shall have been 

 

6

 

presented proof reasonably satisfactory to the Issuer
and the Senior Trustee for such Securities that any such Securities are held by
bona fide holders in due course; provided, however, that
in determining whether the Holders of the requisite aggregate principal amount
of Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver or taken any other action hereunder (a) Securities
owned by the Issuer or any other obligor upon the Securities or any Affiliate
of the Issuer or such other obligor shall be disregarded and deemed not to be
Outstanding, except that, (i) in determining whether the Senior Trustee
for such Securities shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent, waiver or action, only
Securities which a Responsible Officer of such Senior Trustee actually knows to
be so owned shall be so disregarded and (ii) Securities so owned which
have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of such Senior Trustee the pledgee’s right so
to act with respect to such Securities and that the pledgee is not the Issuer
or any other obligor upon the Securities or any Affiliate of the Issuer or of
such other obligor and (b) the principal amount of a Discounted Security
that shall be deemed to be Outstanding for such purposes shall be equal to the
amount of the principal thereof that would be due and payable as of the date of
such determination upon a declaration of acceleration pursuant to Section 5.02.

 

“Paying Agent” means any Person
authorized by the Issuer to pay the principal of (and premium, if any, on) or
interest, if any, on, and any additional amounts in respect of, any Securities
on behalf of the Issuer and shall include the Senior Trustee.

 

“Person” means any individual,
corporation, partnership, joint venture, association, joint-stock company,
trust, unincorporated organization or government or any agency or political
subdivision thereof or any other entity.

 

“Place of Payment”, when used with
respect to the Securities of any series, means the place or places where the
principal of (and premium, if any, on) and interest, if any, on, and any
additional amounts in respect of, the Securities of that series are payable, as
contemplated by Section 3.01.

 

“Predecessor Security” of any particular
Security means every previous Security evidencing all or a portion of the same
debt as that evidenced by that particular Security, and, for the purposes of
this definition, any Security authenticated and delivered under Section 3.06
in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to
evidence the same debt as the mutilated, lost, destroyed or stolen Security.

 

“Principal Subsidiary” means The
Prudential Assurance Company Limited, for so long as such company shall remain
a Subsidiary.

 

“Redemption Date”, when used with respect
to any Security to be redeemed in whole or in part, means the date fixed for
such redemption by or pursuant to this Senior Indenture.

 

“Redemption Price”, when used with
respect to any Security to be redeemed, means, unless otherwise specified in
the Securities of a series, the aggregate of the amounts payable on redemption
being the principal amount plus accrued interest.

 

7

 

“Regular Record Date” for the interest
payable on any Interest Payment Date on the Securities of any series, means the
date, if any, specified for that purpose as contemplated by Section 3.01.

 

“Relevant Indebtedness” means any
Indebtedness for Moneys Borrowed (other than indebtedness in the form of
Sterling Debenture Stock or indebtedness which has a stated maturity not
exceeding one year) which is in the form of, or represented or evidenced by,
bonds, notes, debentures, loan stock or other securities which, with the Issuer’s
agreement or the agreement of any relevant Subsidiary, as the case may be, are
quoted, listed, dealt in or traded on a stock exchange or over the counter or
other recognized securities market (whether or not distributed by way of
private placement) excluding any Indebtedness for Moneys Borrowed in respect of
which the person to whom such indebtedness is owed has no recourse whatsoever
to Prudential plc or the Principal Subsidiary, as the case may be, for
repayment other than recourse for amounts limited to the cash flow or net cash
flow (other than historic cash flow or historic net cash flow) from such asset.

 

“Responsible Officer”, when used with
respect to the Senior Trustee for any series of Securities, means any officer
of such Senior Trustee assigned to administer its corporate trust matters or to
whom any corporate trust matter is referred because of his knowledge of and
familiarity with the particular subject.

 

“Securities” means securities in
registered form evidencing unsecured indebtedness of the Issuer authenticated
and delivered under this Senior Indenture and registered in the Security
Register.

 

“Security Register” and “Security Registrar” have the respective meanings specified
in Section 3.05.

 

“Senior Indenture” means this instrument
as it may from time to time be supplemented or amended by one or more
indentures supplemental hereto entered into pursuant to the applicable
provisions hereof and, unless the context otherwise requires, shall include the
terms of a particular series of Securities established as contemplated by Section 3.01.

 

“Senior Trustee” means the Person named
as the “Senior Trustee” in the first paragraph of this instrument and, subject
to the provisions of Article Six hereof, shall also include its successors
and assigns as Senior Trustee hereunder. If there shall be at one time more
than one Senior Trustee hereunder, “Senior Trustee” shall mean each such Senior
Trustee and shall apply to each such Senior Trustee only with respect to those
series of Securities with respect to which it is serving as Senior Trustee.

 

A “series” of Securities means all
Securities denoted as part of the same series authorized by or pursuant to a
particular Board Resolution or a particular indenture supplemental hereto.

 

“Special Record Date” for the payment of
any Defaulted Interest on the Securities of any series means a date fixed by
the Issuer for such series pursuant to Section 3.07.

 

“Specified Amount” has the meaning
specified in Section 3.11(h).

 

8

 

“Stated Maturity”, when used with respect
to any Security or any installment of principal thereof (or premium, if any,
thereon) or interest, if any, thereon, means the date specified in such
Security as the fixed date on which the principal of such Security (or premium,
if any, thereon) or such installment of principal (or premium, if any, thereon)
or interest is due and payable.

 

“Sterling Debenture Stock” means secured
loan stock in registered form or to be in registered form, listed on the London
Stock Exchange, denominated in or payable in Sterling and initially primarily
distributed to investors in the United Kingdom.

 

“Stock Exchange”, unless specified
otherwise with respect to any particular series of Securities, means any stock
exchange or securities association upon which any Securities of that series are
duly listed.

 

“Sterling” and the sign “£” mean United Kingdom Pounds Sterling.

 

“Subsidiary” means a company which is for
the time being a subsidiary of the Issuer, within the meaning of Section 1159
of the Companies Act 2006 of Great Britain.

 

“Tax Event” means, with respect to a
series of Securities, a determination by the Issuer that, in making any
interest payments in respect of such Securities, the Issuer has paid or will or
would on the next Interest Payment Date be required to pay additional amounts,
as required by Section 10.08 as a result of any Tax Law Change, which
change or amendment becomes effective or, in the case of a change of law, is
enacted on or after the date on which agreement is reached to issue the
Securities and such obligation cannot be avoided by the Issuer taking
reasonable measures available to it.

 

“Tax Law Change” means
any change in, or amendment to, the laws or regulations of the United Kingdom
or any political sub-division or any authority thereof or therein having power
to tax (including any treaty to which the United Kingdom is a party), or any
change in the application or official interpretation of such laws or
regulations (including a change or amendment resulting from a holding by a
court or tribunal of competent jurisdiction).

 

Trust Indenture Act” means the U.S. Trust Indenture Act of 1939, as
amended, as in force at the date as of which this instrument was executed, or,
with respect to a Board Resolution, Officers’ Certificate or supplemental
indenture, as applicable, pursuant to which a series of Securities is established
pursuant to Section 3.01, as in force at the date at which such Board
Resolution, Officers’ Certificate or supplemental indenture, as applicable, is
executed.

 

“United Kingdom” and “U.K.” mean The United Kingdom of Great Britain and Northern
Ireland.

 

“United States” and “U.S.”
mean, unless otherwise specified with respect to the Securities of a series
pursuant to Section 3.01, the United States of America (including the
States and the District of Columbia), its territories, its “possessions” (which
include at the date of this Senior Indenture Puerto Rico, the U.S. Virgin
Islands, Guam, American Samoa, Wake Island and the Northern Mariana Islands)
and other areas subject to its jurisdiction.

 

9

 

“U.S. Government Obligations” means
non-callable (i) direct obligations (or certificates representing an
ownership interest in such obligations) of the United States for which its full
faith and credit are pledged or (ii) obligations of a Person controlled or
supervised by, and acting as an agency or instrumentality of, the United
States, the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation of the United States.

 

“Valuation Date” has the meaning
specified in Section 3.11(c).

 

“Yield to Maturity”, when used with
respect to any Discounted Security, means the yield to maturity, if any, set
forth in such Discounted Security.

 

SECTION 1.02.                Compliance Certificates
and Opinions.

 

Upon any application or request by the Issuer to the Senior Trustee for
any series of Securities to take any action under any provision of this Senior
Indenture, the Issuer shall furnish to such Senior Trustee an Officers’
Certificate stating that all conditions precedent, if any, provided for in this
Senior Indenture relating to the proposed action have been complied with, and
an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with, provided that in the
case of any such application or request as to which the furnishing of such
documents is specifically required by any provision of this Senior Indenture
relating to such particular application or request, the requirements hereof and
thereof may be satisfied by the same documents as contemplated by Section 1.03
such that no duplicate certificate or opinion need be furnished.

 

Every certificate (other than certificates provided pursuant to Section 10.04)
or opinion with respect to compliance with a condition or covenant provided for
in this Senior Indenture shall include the following (or such other statements
or information as the Senior Trustee may reasonably request):

 

(1)           a statement that each individual signing
such certificate or opinion has read such condition or covenant and the definitions
herein relating thereto;

 

(2)           a brief statement as to the nature and
scope of the examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based;

 

(3)           a statement that, in the opinion of each
such individual, he has made such examination or investigation as is necessary
to enable him to express an informed opinion as to whether or not such
condition or covenant has been complied with; and

 

(4)           a statement as to whether, in the opinion
of each such individual, such condition or covenant has been complied with.

 

SECTION 1.03.                Form of Documents
Delivered to Senior Trustee.

 

In any case where several matters are required to be certified by, or
covered by an opinion of, any of a number of specified Persons, it is not
necessary that all such matters be certified by, or covered by the opinion of,
only one such Person, or that they be so certified or 

 

10

 

covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.

 

Any certificate or opinion of an officer of the Issuer may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to matters upon which his certificate or opinion is based are
erroneous.

 

Any such certificate or opinion of counsel may be based, insofar as it
relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Issuer stating that the
information with respect to such factual matters is in the possession of the
Issuer, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.

 

Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Senior Indenture, they may, but need not, be
consolidated and form one instrument.

 

SECTION 1.04.                Acts of Holders;
Communication by Holders with Other Holders.

 

(a)           Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Senior
Indenture to be given or taken by Holders may be embodied in and evidenced by
one or more instruments of substantially similar tenor signed by such Holders
in person or by an agent duly appointed in writing. Except as herein otherwise
expressly provided, such action shall become effective when such instrument or
instruments are delivered to the Senior Trustee for the appropriate series of
Securities and, where it is hereby expressly required, to the Issuer.  Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as the “Act” of the Holders signing such instrument or instruments. Proof of
execution of any such instrument or of a writing appointing any such agent, or
of the holding by any Person of a Security, shall be sufficient for any purpose
of this Senior Indenture and (subject to Sections 6.01 and 6.03) conclusive in
favor of the Senior Trustee for the appropriate series of Securities, the
Issuer and any agent of such Senior Trustee or the Issuer, if made in the
manner provided in this Section.

 

The Issuer may set at its discretion a record date for purposes of
determining the identity of Holders of Securities entitled to vote or consent
to any action by vote or consent authorized or permitted under this Senior
Indenture, but the Issuer shall have no obligation to do so.  If not set by the Issuer prior to the first
solicitation of Holders of Securities of such series made by any Person in
respect of any such action, or, in the case of any such vote, prior to such
vote, the record date for any such action or vote shall be the 30th day prior
to the first solicitation of such vote or consent or, if later, the date of the
most recent list of Holders furnished to the Senior Trustee prior to such
solicitation pursuant to Section 7.01. Upon the fixing of such a record
date, those persons who were Holders of Securities at such record date (or
their duly designated proxies), and only those persons, shall be entitled with
respect to such Securities to 

 

11

 

take such action by vote or consent or to revoke any
vote or consent previously given, whether or not such persons continue to be
Holders after such record date.

 

(b)           Subject to Sections 6.01 and 6.03, the
fact and date of the execution by any Person of any such instrument or writing
may be proved by the affidavit of a witness of such execution or by the
certificate of any notary public, commissioner for oaths or other officer
authorized by law to take acknowledgements of deeds, certifying that the
individual signing such instrument or writing acknowledged to him the execution
thereof. Where such execution is by an officer of a corporation or association
or a member of a partnership, or an official of a public or governmental body,
on behalf of such corporation, association, partnership or public or
governmental body or by a fiduciary, such certificate or affidavit shall also
constitute sufficient proof of this authority.

 

(c)           Subject to Sections 6.01 and 6.03, the
fact and date of the execution by any Person of any such instrument or writing,
or the authority of the Person executing the same, may also be proved in any
other manner which the Senior Trustee for the appropriate series of Securities
deems sufficient.

 

(d)           The principal amount and serial numbers
of Securities held by any Person, and the date of holding the same, shall be
proved by the Security Register.

 

(e)           In determining whether the Holders of the
requisite aggregate principal amount of Outstanding Securities have given any
request, demand, authorization, direction, notice, consent or waiver under this
Senior Indenture, the principal amount of a Discounted Security that may be
counted in making such determination and that shall be deemed to be Outstanding
for such purposes shall be equal to the amount of the principal thereof that
would be due and payable upon a declaration of acceleration of the Maturity
thereof pursuant to Section 5.02 at the time the taking of such action by
the Holders of such requisite aggregate principal amount is evidenced to the
Senior Trustee for such Securities.

 

(f)            Any request, demand, authorization,
direction, notice, consent, waiver or other action by the Holder of any
Security shall bind every future Holder of the same Security and the Holder of
every Security issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done, omitted or suffered to
be done by the Senior Trustee for such Securities, the Security Registrar, any
Paying Agent or the Issuer in reliance thereon, whether or not notation of such
action is made upon such Security.

 

SECTION 1.05.                Notices, Etc., to
Senior Trustee or Issuer.

 

Any request, demand, authorization, direction, notice, consent, waiver
or Act of Holders or other document provided or permitted by this Senior
Indenture to be made upon, given or furnished to, or filed with:

 

(1)           the Senior Trustee for a series of
Securities by any Holder or by the Issuer shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing to or with such Senior
Trustee at its Corporate Trust Office, “Attention: Corporate Trust
Administration”; or

 

12

 

(2)           the Issuer by the Senior Trustee or any
Holder shall be sufficient for every purpose hereunder (except as provided in Section 5.01(3))
if (a) addressed to Prudential plc, “Attention: Group Secretarial” and (b) in
writing and mailed, first class postage prepaid, or hand delivered to the
Issuer addressed to it at the address of its principal office specified in the
first paragraph of this Senior Indenture or at any other address previously
furnished in writing to such Senior Trustee by the Issuer, or if sent by
facsimile transmission addressed to the Issuer at facsimile number + 44 (0)20
7548 3739 or at any other facsimile number previously furnished in writing to
such Senior Trustee by the Issuer.

 

SECTION 1.06.                Notice to Holders;
Waiver.

 

Where this Senior Indenture provides for notice to Holders of a series
of Securities of any event, such notice shall be given (unless otherwise
expressly provided herein or in the Securities of a series) in writing and
mailed, first class postage prepaid, to each Holder, at his address as it
appears in the Security Register, not later than the latest date, and not
earlier than the earliest date, prescribed for the giving of such notice.

 

In any case where notice to Holders of Securities is given by mail,
neither the failure to mail such notice, nor any defect in any notice so
mailed, to any particular Holder of a Security shall affect the sufficiency of
such notice with respect to other Holders of Securities. Any notice mailed in
the manner prescribed by this Senior Indenture shall be deemed to have been
given whether or not received by any particular Holder. In case by reason of
the suspension of regular mail service or by reason of any other cause it shall
be impracticable to give such notice to Holders of Securities by mail, then
such notification as shall be made with the approval of the Senior Trustee for
such Securities shall constitute a sufficient notification for every purpose
hereunder.

 

Notwithstanding the first paragraph of this Section 1.06, if the
entire principal amount of the Securities of a series or a portion thereof is
represented by one or more global Securities held by a Depositary, all notices
with respect to such entire principal amount or portion thereof, as the case
may be, shall be sent only to such Depositary or its nominee, as the Holder,
and such Depositary will communicate such notices to its participants in
accordance with its standard procedures.

 

Where this Senior Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice. Waivers of notice by Holders shall be filed with the Senior
Trustee for such Securities, but such filing shall not be a condition precedent
to the validity of any action taken in reliance upon such waiver.

 

A copy of any notice or communication sent by the Issuer to any Holder
of Securities shall also be provided to the Senior Trustee for such Securities
at the same time in the manner provided for notices to the Senior Trustee under
Section 1.05.

 

SECTION 1.07.                Conflict with Trust
Indenture Act.

 

If any provision of this Senior Indenture limits, qualifies or
conflicts with a provision of the Trust Indenture Act that is required under
the Trust Indenture Act to be a part of 

 

13

 

and govern this Senior Indenture, the latter provision
shall control. If any provision of this Senior Indenture modifies or excludes
any provision of the Trust Indenture Act that may be so modified or excluded,
the latter provision shall be deemed to apply to this Senior Indenture as so
modified or excluded, as the case may be.

 

SECTION 1.08.                Effect of Headings and
Table of Contents.

 

The Article and Section headings herein and the Table of
Contents are for convenience only and shall not affect the construction hereof.

 

SECTION 1.09.                Successors and Assigns.

 

All covenants and agreements in this Senior Indenture by the Issuer
shall bind its respective successors and assigns, whether so expressed or not.

 

SECTION 1.10.                Separability Clause.

 

In any case any provision in this Senior Indenture or in the Securities
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

 

SECTION 1.11.                Benefits of Senior
Indenture.

 

Nothing in this Senior Indenture or in the Securities, expressed or
implied, shall give to any Person, other than the parties hereto (including
their successors hereunder) and the Holders of Securities, any benefit or any
legal or equitable right, remedy or claim under this Senior Indenture.

 

SECTION 1.12.                Governing Law.

 

This Senior Indenture and the Securities shall be governed by and
construed in accordance with the laws of the State of New York.

 

SECTION 1.13.                Non-Business Day.

 

Unless otherwise specified in the Securities of a series, in any case
where any Interest Payment Date, Redemption Date or Stated Maturity of a
Security of any particular series shall not be a Business Day at any Place of
Payment with respect to Securities of that series, then (notwithstanding any
other provision of this Senior Indenture) payment of principal (or, if the
context so requires, lesser amount in the case of Discounted Securities) of
(and premium, if any, on) and interest, if any, with respect to such Security
need not be made at such Place of Payment on such date, but may be made on the
next succeeding Business Day at such Place of Payment with the same force and
effect as if made on the Interest Payment Date or Redemption Date, or at the
Stated Maturity; provided that no interest shall accrue for the period from and
after such Interest Payment Date, Redemption Date or Stated Maturity, as the
case may be; and provided, further, that if such
next succeeding Business Day at any Place of Payment would fall in the
succeeding fiscal year of the Issuer, payment may be made in full on the
immediately preceding 

 

14

 

Business Day at such Place of Payment with the same
force and effect as if made on the Interest Payment Date, Redemption Date or
Stated Maturity, as the case may be.

 

SECTION 1.14.                Immunity of
Incorporators, Stockholders, Officers and Directors.

 

No recourse shall be had for the payment of the principal of (or
premium, if any, on), or the interest, if any, on any Security of any series,
or for any claim based thereon, or upon any obligation, covenant or agreement
of this Senior Indenture or any indenture supplemental hereto, or any Security,
or because of any indebtedness evidenced thereby, against any incorporator,
stockholder, officer or director, as such, past, present or future, of the
Issuer or of any predecessor or successor corporations thereto, either directly
or indirectly through the Issuer or any predecessor or successor corporations,
whether by virtue of any constitution, statute or rule of law or by the
enforcement of any assessment or penalty or otherwise; it being expressly
agreed and understood that this Senior Indenture and all the Securities of each
series are solely corporate obligations, and that no personal liability
whatsoever shall attach to, or is incurred by, any incorporator, stockholder,
officer or director, past, present or future, of the Issuer or of any
predecessor or successor corporations thereto, either directly or indirectly
through the Issuer or any such predecessor or successor corporations, because
of the incurring of the indebtedness hereby authorized or under or by reason of
any of the obligations, covenants or agreements contained in this Senior
Indenture or in any of the Securities of any series, as the case may be, or to
be implied herefrom or therefrom; and that all such personal liability is
hereby expressly released and waived as a condition of, and as part of the consideration
for, the execution of this Senior Indenture and the issuance of the Securities
of each series.

 

SECTION 1.15.                Certain Matters
Relating to Currencies.

 

Whenever any action or Act is to be taken hereunder by the Holders of
Securities denominated in different currencies or currency units, then for
purposes of determining the principal amount of Securities held by such
Holders, the aggregate principal amount of the Securities denominated in a
Foreign Currency or currency unit shall be deemed to be that amount of Dollars
that could be obtained for such principal amount on the basis of a spot rate of
exchange specified to the Senior Trustee for such series in an Exchange Rate
Officers’ Certificate or a Currency Determination Agent’s Certificate for such
Foreign Currency or currency unit into Dollars as of the date the taking of
such action or Act by the Holders of the requisite percentage in aggregate
principal amount of the Securities.

 

SECTION 1.16.                Language of Notices,
Etc.

 

Any request, demand, authorization, direction, notice, consent, waiver
or other action required or permitted under this Senior Indenture shall be in
the English language, and any published notice may also be in an official
language of the country or province of publication.

 

SECTION 1.17.                Appointment of Agent
for Service.

 

By the execution and delivery of this Senior Indenture, the Issuer
designates and appoints Jackson National Life Insurance Company at 1 Corporate
Way, Lansing, Michigan 48951, as its authorized agent upon which process may be
served in any suit or proceeding arising out of or relating to the Securities
or this Senior Indenture which may be instituted in any 

 

15

 

Federal or New York State Court located in the Borough
of Manhattan, City and State of New York, but for that purpose only, and agrees
that service of process upon said Jackson National Life Insurance Company,
directed to the attention of Thomas J. Meyer and written notice of said service
given by the Person serving the same to it, addressed as provided in Section 1.05,
shall be deemed in every respect effective service of process upon it in any
such suit or proceeding in any Federal or State court in such Borough, City and
State. The Issuer hereby submits (for the purposes of any such suit or
proceedings) to the jurisdiction of any such court in which any such suit or
proceeding is so instituted, and irrevocably waives, to the fullest extent it
may lawfully do so, any objection it may have now or hereafter to the laying of
the venue of any such suit, action or proceeding in any such court and
irrevocably waives, to the fullest extent it may lawfully do so, any claim that
any such suit, action or proceeding brought in any such court has been brought
in an inconvenient forum. Such submission and waiver shall be irrevocable so
long as any of the Securities remain Outstanding and such appointment shall be
irrevocable until the appointment with due care of a reputable successor by the
Issuer and such successor’s acceptance of such appointment. Upon such
acceptance, the Issuer shall notify the Senior Trustee of the name and address
of such successor. The Issuer further agrees to take any and all action,
including the execution and filing of any and all such documents and
instruments, as may be necessary to continue such designation and appointment
of said Jackson National Life Insurance Company or its successor in full force
and effect so long as any of the Securities shall be Outstanding. The Senior
Trustee shall not be obligated and shall have no responsibility with respect to
any failure by the Issuer to take any such action.

 

The Issuer agrees, to the fullest extent that it lawfully may do so,
that final judgment in any such suit, action or proceeding brought in such a
court shall be conclusive and binding upon the Issuer and may be enforced in
the courts of England and Wales (or any other courts to the jurisdiction of
which the Issuer is subject) by a suit upon such judgment, provided that
service of process is effected upon the Issuer in the manner specified in the
foregoing paragraph or as otherwise permitted by law; provided,
however, that the Issuer does not waive, and the foregoing
provisions of this sentence shall not constitute or be deemed to constitute a
waiver of, (i) any right to appeal any such judgment, to seek any stay or
otherwise to seek reconsideration or review of any such judgment, (ii) any
stay of execution or levy pending an appeal from, or a suit, action or
proceeding for reconsideration of, any such judgment, or (iii) any other
right or remedy of the Issuer to the extent not expressly waived in accordance
with this Section.

 

Notwithstanding the foregoing, any actions arising out of or relating
to the Securities or this Senior Indenture may be instituted by any party
hereto and, subject to the limitations set forth in Article Five of this
Senior Indenture, by the Holder of any Security in any competent court in
England and Wales.

 

Nothing in this Section shall affect the right of the Senior
Trustee or any Holder of any Security to serve process in any manner permitted
by applicable law or limit the right of the Senior Trustee or any Holder of any
Security to bring proceedings against the Issuer in the courts of any other
jurisdiction or jurisdictions.

 

16

 

SECTION 1.18.                                               Rules by the Senior Trustee and Agents.

 

The Senior Trustee may make reasonable rules for action by or a
meeting of Holders.  The Securities
Registrar or Paying Agent may make reasonable rules and set reasonable
requirements for its functions.

 

SECTION 1.19.                                               Successors; No Recourse Against Others.

 

(a)                                  All
agreements of the Issuer in this Senior Indenture and the Securities shall bind
its successors.  All agreements of the
Senior Trustee in this Senior Indenture shall bind its successors.

 

(b)                                 All
liability of the Issuer described in the Securities insofar as it relates to
any director, officer, employee or stockholder, as such, of the Issuer is
waived and released by each Holder.

 

SECTION 1.20.                                               Duplicate Originals.

 

The parties may sign any number of copies of this Senior
Indenture.  One signed copy is enough to
prove this Senior Indenture.

 

ARTICLE
TWO

SECURITY FORMS

 

SECTION 2.01.                                               Forms of Securities.

 

The Securities of each series shall be in such form or forms (including
global form) as shall be established by or pursuant to a Board Resolution and,
subject to Section 3.03, set forth in, or determined in the manner
provided in, an Officers’ Certificate, or in an indenture supplemental hereto,
in each case with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Senior Indenture or any
indenture supplemental hereto and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may be
required to comply with any law, with any rule or regulation made pursuant
thereto, with any rules of any securities exchange or of any automated
quotation system or to conform to usage, as may, consistently herewith, be
determined by the officers executing such Securities. Such execution of such
Securities shall be conclusive evidence as regards the Issuer as to any such
determination made by the Issuer.

 

The definitive Securities shall be printed, lithographed or engraved or
produced by any combination of these methods or may be produced in any other
manner, all as determined by the officers executing such Securities. Such
execution of such definitive Securities shall be conclusive evidence as regards
the Issuer as to any such determination made by the Issuer.

 

SECTION 2.02.                                               Form of Senior Trustee’s Certificate of
Authentication.

 

Unless otherwise specified as contemplated by Section 3.01, the
Certificate of Authentication on all Securities shall be in substantially the
following form:

 

17

 

“This
is one of the Securities referred to in the Senior Indenture described herein.

 

	
   

  	
  Wilmington Trust Company,

  
	
   

  	
  as Senior Trustee

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  [Authorized Officer]

  
	
   

  	
   

  
	
   

  	
  Dated

  	
   

  

 

SECTION 2.03.                                               Securities
in Global Form.

 

If any Security of a series is issuable in global form, such Security
may provide that it shall represent the aggregate amount of Outstanding
Securities from time to time endorsed thereon and may also provide that the
aggregate amount of Outstanding Securities represented thereby may from time to
time be increased or reduced to reflect exchanges. Any endorsement of a
Security in global form to reflect the amount, or any increase or decrease in
the amount, of Outstanding Securities represented thereby shall be made by the
Senior Trustee or Security Registrar and in such manner as shall be specified
in such Security. Any instructions by the Issuer with respect to a Security in
global form, after its initial issuance, shall be in writing but need not comply
with Section 1.02.

 

Unless otherwise specified in the Securities of a series, every global
Security authenticated and delivered hereunder shall bear a legend in
substantially the following form:

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE SENIOR
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY TRUST COMPANY OR A NOMINEE THEREOF. 
UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES
IN DEFINITIVE REGISTERED FORM IN ACCORDANCE WITH THE TERMS HEREOF AND OF
THE SENIOR INDENTURE, TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF THE DEPOSITORY TRUST
COMPANY OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE OR TO THE
DEPOSITORY TRUST COMPANY OR A SUCCESSOR THEREOF BY A NOMINEE OF THE DEPOSITORY
TRUST COMPANY OR A SUCCESSOR THEREOF AND TRANSFERS OF PORTIONS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS
SET FORTH IN THE SENIOR INDENTURE.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH
OTHER ENTITY AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE 

 

18

 

DEPOSITORY TRUST COMPANY, ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

ARTICLE
THREE

THE SECURITIES

 

SECTION 3.01.                                               Title; Payment and Terms

 

The aggregate principal amount of Securities which may be authenticated
and delivered and Outstanding under this Senior Indenture is unlimited. The
Securities may be issued up to the aggregate principal amount of Securities
from time to time authorized by or pursuant to a Board Resolution of the
Issuer.

 

The Securities will constitute direct, unsubordinated, unconditional
and (except as provided in Section 10.06) unsecured obligations of the
Issuer and will rank at least equally with all other unsecured and
unsubordinated obligations of the Issuer (subject, in the event of insolvency,
to laws of general applicability relating to or affecting creditors’ rights).

 

The Securities may be issued in one or more series. There shall be
established in one or more Board Resolutions or pursuant to authority granted
by one or more Board Resolutions and, subject to Section 3.03, set forth
in, or determined in the manner provided in, an Officers’ Certificate, or established
in one or more indentures supplemental hereto, prior to the issuance of
Securities of any series any or all of the following, as applicable (each of
which, if so provided, may be determined from time to time by the Issuer with
respect to unissued Securities of the series and set forth in such Securities
of the series when issued from time to time):

 

(1)                                  the
title of the Securities of that series (which shall distinguish the Securities
of that series from all other series of Securities); if the Securities of that
series will be in bearer rather than registered form, the forms, procedures and
mechanics to be employed in connection therewith; any limit upon the aggregate
principal amount of the Securities of that series which may be authenticated
and delivered under this Senior Indenture (except for Securities authenticated
and delivered upon registration of transfer of, or in exchange for, or in lieu
of, other Securities of that series pursuant to Section 3.04, 3.05, 3.06,
9.06 or 11.07 and except for any Securities which, pursuant to Section 3.03,
are deemed never to have been authenticated and delivered hereunder);

 

(2)                                  the
percentage or percentages of principal amount at which the debt securities of
the series will be issued;

 

(3)                                  certain
dates or periods, including: (a) the original issue date or dates or
periods during which the Securities of that series may be issued; (b) the
date or dates (or manner of determining the same) on which, or the range of
dates within which, the principal of (and premium, if any, on) the Securities
of that series is payable; and (c) the record dates, if any, for the determination of Holders of
Securities of such series to whom such principal (and premium, if any) is
payable;

 

19

 

(4)                                  information
with regard to interest, including: (a) the rate or rates (or the manner
of calculation thereof, including any provisions for the increase or decrease
of such rate or rates upon the occurrence of specific events) at which the
Securities of that series shall bear interest (if any), or the discount, if
any, at which any Discounted Securities may be issued; (b) the date or
dates from which such interest shall accrue; (c) the Interest Payment
Dates on which such interest shall be payable (or manner of determining the
same); and (d) the Regular Record Date for the interest payable on any
Securities on any Interest Payment Date;

 

(5)                                  the
place or places where, subject to the provisions of Section 10.02:  (a) the principal of (and premium, if any,
on) and interest, if any, on Securities of that series shall be payable; (b) any
Securities of that series may be surrendered for registration of transfer, any
Securities of that series may be surrendered for exchange; and (c) notices
and demands to or upon the Issuer in respect of the Securities of that series
and this Senior Indenture may be served;

 

(6)                                  the
terms and conditions, if any, upon which Securities of that series may be
redeemed, purchased or repaid, in whole or in part, at the option of the Issuer
or otherwise including the period or periods within which or manner of
determining the same, the price or prices at which or manner of determining the
same, and the currency or currency unit in which the Securities may be
redeemed;

 

(7)                                  the
obligation (which may be fixed or contingent upon events), if any, of the
Issuer to redeem, purchase or repay Securities of that series pursuant to any
sinking fund or analogous provisions or at the option of a Holder thereof, and
the period or periods within which or manner of determining the same, the price
or prices at which or manner of determining the same, the currency or currency
unit in which, and the terms and conditions upon which, Securities of that
series shall be redeemed, purchased or repaid, in whole or in part, pursuant to
such obligation;

 

(8)                                  the
minimum denomination or denominations in which any Securities of that series
shall be issuable if other than integral multiples of $1,000;

 

(9)                                  if
other than the principal amount thereof, the portion of the principal amount of
Securities of that series which shall be payable upon a redemption prior to
Maturity or a declaration of acceleration of the Maturity thereof pursuant to Section 5.02;

 

(10)                            if
other than as set forth in this Senior Indenture, any Events of Default and any
covenants or agreements of the Issuer with respect to the Securities of that
series, whether or not such Events of Default or covenants or agreements are
consistent with the Events of Default or covenants or agreements set forth herein;

 

(11)                            if
a Person other than Wilmington Trust Company is to act as Senior Trustee for
the Securities of that series, the name and location of the Corporate Trust
Office of such Senior Trustee and if other than such Senior Trustee, the
identity of each Security Registrar and/or Paying Agent;

 

(12)                            if
other than Dollars, the currency or currency unit in which payment of the
principal of (and premium, if any, on) and interest, if any, on the Securities
of that series shall be made or in which the Securities of that series shall be
denominated and the particular 

 

20

 

provisions applicable thereto in accordance with, in
addition to or in lieu of the provisions of Section 3.11;

 

(13)                            if
the principal of (and premium, if any, on) and interest, if any, on the
Securities of that series are to be payable, at the election of the Issuer or a
Holder thereof, in a currency or currency unit other than that in which such
Securities are denominated or stated to be payable, in accordance with
provisions in addition to, in lieu of or in accordance with the provisions of Section 3.11,
the period or periods within which (including the Election Date), and the terms
and conditions upon which, such election may be made, and the time and manner
of determining the exchange rate between the currency and currency unit in
which such Securities are denominated or stated to be payable and the currency
or currency unit in which such Securities are to be so payable;

 

(14)                            the
designation of the original Currency Determination Agent, if any, and in what
circumstances a Currency Determination Agent’s Certificate or an Exchange Rate
Officers’ Certificate shall be delivered for Securities of that series;

 

(15)                            the
index, if any, used to determine the amount of payments of principal of (and
premium, if any, on) and interest, if any, on the Securities of that series;

 

(16)                            if
other than as set forth in Section 4.01, provisions for the satisfaction
and discharge of this Senior Indenture with respect to the Securities of that
series;

 

(17)                            if
the amount of payments of principal of (and premium, if any, on) and interest,
if any, on the Securities of that series may be determined, at the election of
the Issuer or a Holder thereof, with reference to an index based on a currency
or currency unit other than that in which such Securities are denominated or
stated to be payable or any other index, the manner in which such amounts shall
be determined;

 

(18)                            the
date as of which any global Security representing Outstanding Securities of
that series shall be dated if other than the date of original issuance of the
first Security of that series to be issued;

 

(19)                            the
application, if any, of Sections 10.08 and 11.08 to the Securities of that
series;

 

(20)                            whether
the Securities of the series shall be issued in whole or in part in the form of
a global Security or Securities and, in such case, the Depositary for such
global Security or Securities;

 

(21)                            whether
any legends shall be stamped or imprinted on all or a portion of the Securities
of such series, and the terms and conditions upon which any such legends may be
removed;

 

(22)                            the form of the Securities
of that series (including the terms and conditions of such Securities); and

 

21

 

(23)                            any
other terms of that series (which terms shall be consistent with the provisions
of this Senior Indenture except as such terms are otherwise expressly provided
for in an applicable Board Resolution or supplemental indenture executed
hereunder with respect to such series).

 

All Securities of any particular series shall be identical except as to
authentication date, public offering price, denomination and issue date, except
as may otherwise be provided in or pursuant to such Board Resolutions and set
forth in such Officers’ Certificates relating thereto or provided in or
pursuant to any supplemental indenture hereto (provided that the Securities of
a series shall be fungible with all other Securities of such series). The terms
of such Securities may be determined by the Issuer from time to time if so
provided in or established pursuant to the authority granted in the Board
Resolutions. All Securities of any one series need not be issued at the same
time, and unless otherwise provided, a series may be reopened for issuance of
additional Securities of such series.

 

If any of the terms of the Securities of a series are established by
action taken pursuant to one or more Board Resolutions, a copy of an
appropriate record of such action shall be certified by an appropriate officer
of the Issuer and delivered to the Senior Trustee at or prior to the delivery
of the Officers’ Certificate setting forth the terms of such Securities.

 

Prior to the delivery of a Security of any series in any such form to
the Senior Trustee for authentication, the Issuer shall deliver to the Senior
Trustee (and the Senior Trustee shall be fully protected in relying upon) the
following:

 

(1)                                  the
Board Resolution, the Officers’ Certificate and the supplemental indenture, as
applicable, by or pursuant to which such form of Security have been approved;

 

(2)                                  an
Officers’ Certificate of the Issuer dated the date such certificate is
delivered to the Senior Trustee stating that all conditions precedent provided
for in this Senior Indenture relating to the authentication and delivery of
such Securities in such form have been complied with; and

 

(3)                                  an
Opinion of Counsel stating that such Securities when authenticated and
delivered by the Senior Trustee and issued by the Issuer in the manner and
subject to any conditions specified in such Opinion of Counsel, will constitute
valid and binding obligations of the Issuer enforceable in accordance with
their terms, subject to applicable bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating
to or affecting creditors’ rights and to general equity principles.

 

SECTION 3.02.                                               Denominations and Currencies.

 

Unless otherwise provided with respect to any series of Securities as
contemplated by Section 3.01, any Securities of a series shall be issuable
in denominations of $1,000 and any integral multiple thereof; provided,
however, that Securities may be issuable in denominations of less than $1,000
solely to the extent necessary to accommodate book-entry positions that have
been created in denominations of less than $1,000 by the Depositary.

 

22

 

SECTION 3.03.                                               Execution, Authentication, Delivery and Dating.

 

The Securities shall be executed on behalf of the Issuer by any of two
of its directors or by one director and the group secretary of the Issuer.  The signature of any of these officers on the
Securities may be manual or facsimile or, as and to the extent required by the
Depositary, manual.

 

Securities bearing the manual or facsimile signatures of individuals
who were at any time the proper officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Securities or did not
hold such offices at the date of such Securities.

 

At any time and from time to time after the execution and delivery of
this Senior Indenture, the Issuer may deliver Securities of any series as
executed by the Issuer to the Senior Trustee for the Securities of such series
for authentication, together with an Issuer Order for the authentication and
delivery of such Securities, and such Senior Trustee, in accordance with such
Issuer Order, shall authenticate and deliver such Securities. If any Security
shall be represented by a global Security, then, for purposes of this Section and
Section 3.04, the notation of a beneficial owner’s interest therein upon
original issuance of such Security shall be deemed to be delivery in connection
with the original issuance of such beneficial owner’s interest in such global
Security. If all the Securities of any one series are not to be issued at one
time and if a Board Resolution or indenture supplemental hereto relating to
such Securities shall so permit, such Issuer Order may set forth procedures
acceptable to the Senior Trustee for the issuance of such Securities, including
without limitation, procedures with respect to interest rate, Stated Maturity,
date of issuance and date from which interest, if any, shall accrue. Such
procedures may authorize authentication and delivery pursuant to electronic
instruction from the Issuer or its duly authorized agent.

 

Notwithstanding any contrary provision herein, if all Securities of a
series are not to be originally issued at one time, it shall not be necessary
to deliver the Board Resolution and/or indenture supplemental hereto, Officers’
Certificate and Opinion of Counsel otherwise required pursuant to Sections 1.02
and 3.01 at or prior to the time of authentication of each Security of such
series if such documents are delivered at or prior to the authentication upon
original issuance of the first Security of such series to be issued; provided
that it shall be necessary to deliver such documents in connection with any
reopening of a series of Securities.

 

Each Security shall be dated the date of its authentication.

 

No Security shall be entitled to any benefit under this Senior
Indenture or be valid or obligatory for any purpose unless there appears on
such Security a certificate of authentication substantially in the form
provided for herein executed by manual signature by the Senior Trustee for such
Security or in the name of such Senior Trustee by any Authenticating Agent
pursuant to Section 3.14, and such certificate upon any Security shall be
conclusive evidence, and the only evidence, that such Security has been duly
authenticated and delivered hereunder. Notwithstanding the foregoing, if any
Security shall have been authenticated and delivered hereunder but never issued
and sold by the Issuer, and the Issuer shall deliver such Security to the
Senior Trustee for cancellation as provided in Section 3.09, for all
purposes of this Senior 

 

23

 

Indenture such Security shall be deemed never to have
been authenticated and delivered hereunder and shall never be entitled to the
benefits of this Senior Indenture.

 

Any global Security shall, unless otherwise provided therein, be delivered
to a Depositary designated pursuant to Section 3.01.  Each Depositary designated pursuant to Section 3.01
for a global Security must at the time of its designation and at all times
while it serves as such Depositary be a clearing agency registered under the
Exchange Act and any other applicable statute or regulation.

 

The Senior Trustee shall have the right to decline to authenticate and
deliver any Securities if the Senior Trustee, being advised by counsel,
determines that such action may not lawfully be taken or if the Senior Trustee
in good faith shall determine that such action would expose the Senior Trustee
to personal liability to existing Holders or would affect the Senior Trustee’s
own rights, duties or immunities under the Securities, this Senior Indenture or
otherwise in a manner which is not reasonably acceptable to the Senior Trustee
acting in good faith.

 

SECTION 3.04.                                               Temporary Securities and Exchange of Securities.

 

Pending the preparation of definitive Securities of any particular series,
the Issuer may execute, and upon an Issuer Order the Senior Trustee for the
Securities of such series shall authenticate and deliver, in the manner
specified in Section 3.03, temporary Securities which are printed,
lithographed, typewritten, photocopied or otherwise produced in any authorized
denomination, with like terms and conditions as the definitive Securities of
the series in lieu of which they are issued, in registered form and with such
appropriate insertions, omissions, substitutions and other variations as the
officers executing such Securities may determine. Such execution of such
Securities shall be conclusive evidence as regards the Issuer as to any such
determination made by the Issuer.

 

If temporary Securities of any particular series are issued, the Issuer
will cause definitive Securities of that series to be prepared without
unreasonable delay.  After the
preparation of such definitive Securities, the temporary Securities of such
series shall be exchangeable for such definitive Securities and of a like
Stated Maturity and with like terms and provisions upon surrender of the
temporary Securities of such series at the office or agency of the Issuer in a
Place of Payment for that series, without charge to the Holder. Upon surrender
for cancellation of any one or more temporary Securities of any particular
series, the Issuer shall execute and (in accordance with an Issuer Order
delivered at or prior to the authentication of the first definitive Security of
such series) the Senior Trustee for the Securities of such series shall
authenticate and deliver in exchange therefor a like principal amount of
definitive Securities of authorized denominations of the same series and of a
like Stated Maturity and with like terms and provisions. Until exchanged as
hereinabove provided, the temporary Securities of any series shall in all
respects be entitled to the same benefits under this Senior Indenture as
definitive Securities of the same series authenticated and delivered hereunder,
with like terms and conditions, except where specified therein with respect to
certification requirements prior to payment of interest in certain cases.

 

24

 

SECTION 3.05.                                               Registration, Registration of Transfer and Exchange.

 

The Issuer shall cause to be kept for the Securities of each series a
security register (such security register or registers herein sometimes
collectively referred to as the “Security Register”) in which, subject to such
reasonable regulations as it may prescribe, the Issuer shall provide for the
registration of Securities and of transfers of Securities.  Unless and until otherwise determined by the
Issuer, the Senior Trustee shall act as Security Registrar (the “Security
Registrar”) and the Security Register shall be kept at the Corporate Trust
Office of the Senior Trustee.  At all
reasonable times the Security Register shall be open for inspection by the
Issuer and the Issuer and its duly authorized agents.  The Issuer may appoint co-Security Registrars
provided that at any given time there shall be only one Security Register with
respect to a series of Securities.

 

Upon surrender for registration of transfer of any Security of any
particular series at the office or agency of the Issuer in a Place of Payment
for that series, the Issuer shall execute, and upon an Issuer Order the Senior
Trustee for the Securities of each series shall authenticate and deliver, in
the name of the designated transferee or transferees, one or more new
Securities of any authorized denominations, and of a like Stated Maturity and
of a like series and aggregate principal amount and with like terms and
conditions.

 

Except as set forth below, at the option of the Holder, Securities of
any particular series may be exchanged for other Securities of any authorized
denominations and of a like Stated Maturity and of a like series and aggregate
principal amount and with like terms and conditions, upon surrender of the
Securities to be exchanged at such office or agency. Whenever any Securities are
so surrendered for exchange, the Issuer shall execute, and upon an Issuer Order
the Senior Trustee for such Securities shall authenticate and deliver, the
Securities which the Holder making the exchange is entitled to receive.

 

Notwithstanding any other provision of this Section or Section 3.04,
unless and until it is exchanged in whole or in part for Securities in
definitive form, a global Security representing all or a portion of the
Securities of a series may not be transferred except as a whole by the
Depositary for such series to a nominee of such Depositary or by a nominee of
such Depositary to such Depositary or another nominee of such Depositary or by
such Depositary or any such nominee to a successor Depositary for such series
or a nominee of such successor Depositary.

 

If at any time the Depositary for Securities of a series notifies the
Issuer that it is unwilling or unable to continue as Depositary for the
Securities of such series or if at any time the Depositary for the Securities
for such series shall no longer be eligible under Section 3.03, the Issuer
shall appoint a successor Depositary with respect to the Securities for such
series. If a successor Depositary for the Securities of such series is not
appointed by the Issuer within 120 days after the Issuer receives such notice
or becomes aware of such ineligibility, the Issuer’s election pursuant to Section 3.01
shall no longer be effective with respect to the Securities for such series and
the Issuer will execute, and the Senior Trustee, upon receipt of an Issuer
Order for the authentication and delivery of definitive Securities of such
series, will authenticate and deliver Securities of such series in definitive
form, in an aggregate principal amount equal to the 

 

25

 

principal amount of the global Security or Securities
representing such series in exchange for such global Security or Securities.

 

The Issuer may at any time and in its sole discretion determine that
the Securities of any series issued in the form of one or more global
Securities shall no longer be represented by such global Security or
Securities.  In such event the Issuer
will execute, and the Senior Trustee, upon receipt of an Issuer Order for the
authentication and delivery of definitive Securities of such series, will
authenticate and deliver Securities of such series in definitive form and in an
aggregate principal amount equal to the principal amount of the global Security
or Securities representing such series in exchange for such global Security or
Securities.

 

If specified by the Issuer pursuant to Section 3.01 with respect
to a series of Securities, the Depositary for such series of Securities may
surrender a global Security for such series of Securities in exchange in whole
or in part for Securities of such series of like tenor and terms, and in
definitive form, on such terms as are acceptable to the Issuer and such
Depositary. Thereupon the Issuer shall execute, and the Senior Trustee upon an
Issuer Order shall authenticate and deliver, without service charge, (i) to
each Person specified by such Depositary a new Security or Securities of the
same series, of like tenor and terms and of any authorized denomination as
requested by such Person in aggregate principal amount equal to and in exchange
for such Person’s beneficial interest in the global Security; and (ii) to
such Depositary a new global Security of like tenor and terms and in a
denomination equal to the difference, if any, between the principal amount of
the surrendered global Security and the aggregate principal amount of
Securities delivered to Holders thereof.

 

Upon the exchange of a global Security for Securities in definitive
form, such global Security if so exchanged in its entirety shall upon an Issuer
Order be cancelled by the Senior Trustee. Securities issued in exchange for a
global Security pursuant to this Section 3.05 shall be registered in such
names and in such authorized denominations as the Depositary for such global
Security, pursuant to instructions from its direct or indirect participants or
otherwise, shall instruct the Senior Trustee in writing. The Senior Trustee
shall deliver, or cause to be delivered, such Securities to the persons in
whose names such Securities are so requested.

 

All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Issuer, evidencing the same
debt, and entitled to the same benefits under this Senior Indenture, as the
Securities surrendered upon such registration of transfer or exchange.

 

Every Security presented or surrendered for registration of transfer or
exchange shall (if so required by the Issuer or the Senior Trustee for such
Security) be duly endorsed, or be accompanied by a written instrument of transfer
in form satisfactory to the Issuer and the Security Registrar for such series
duly executed, by the Holder thereof or his attorney duly authorized in
writing.

 

No service charge shall be made for any registration of transfer or
exchange of Securities, but the Issuer may require payment by the Holder of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer 

 

26

 

or exchange of such Holder’s Securities, other than
exchanges pursuant to Section 3.04, 9.06 or 11.07 not involving any
transfer.

 

The Issuer shall not be required (i) to issue, register the
transfer of or exchange Securities of any series during a period beginning at
the opening of business 15 days before the day of the mailing of a notice of
redemption of Securities of that series selected for redemption under Section 11.04
and ending at the close of business on the day of the mailing of the relevant
notice of redemption, or (ii) to register the transfer of or exchange any
Security so selected for redemption as a whole or in part, except the
unredeemed portion of any Security being redeemed in part.

 

SECTION 3.06.                                               Mutilated, Destroyed, Lost and Stolen Securities.

 

If (i) any mutilated Security is surrendered to the Senior Trustee
for such Security, or the Issuer and the Senior Trustee for a Security receive
evidence to their satisfaction of the destruction, loss or theft of any
Security and (ii) there is delivered to the Issuer and the Senior Trustee
such security or indemnity as may be required by them to save each of them and
any agent of either of them harmless, then, in the absence of notice to the
Issuer or the Senior Trustee that such Security has been acquired by a bona fide purchaser, the Issuer shall execute and upon
Issuer Request such Senior Trustee shall authenticate and deliver, in lieu of
any such destroyed, lost or stolen Security or in exchange for such mutilated
Security, a new Security of the same series and in a like principal amount and
of a like Stated Maturity and with like terms and conditions and bearing a
number not contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Issuer in its discretion may,
instead of issuing a new Security, pay such Security (without surrender thereof
except in the case of a mutilated Security) if the applicant for such payment
shall furnish to the Issuer and the Senior Trustee for such Security such
security or indemnity as may be required by them to save each of them harmless,
and in case of destruction, loss or theft, evidence satisfactory to the Issuer
and such Senior Trustee and any agent of any of them of the destruction, loss
or theft of such Security and the ownership thereof.

 

Upon the issuance of any new Security under this Section, the Issuer
may require the payment by the Holder of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other
expenses (including all fees and expenses of the Senior Trustee for such
Security) connected therewith.

 

Every new Security of any series issued pursuant to this Section in
lieu of any destroyed, lost or stolen Security or in exchange for any mutilated
Security, shall constitute an original additional contractual obligation of the
Issuer whether or not the destroyed, lost or stolen Security shall be at any
time enforceable by anyone, and shall be entitled to all the benefits of this
Senior Indenture equally and proportionately with any and all other Securities
of the same series duly issued hereunder.

 

27

 

The provisions of this Section are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities.

 

SECTION 3.07.                                               Payment of Interest; Interest Rights Preserved.

 

Interest on any Security which is due and payable, and is punctually
paid or duly provided for, on any Interest Payment Date shall be paid to the
Person in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest payment; provided, however,
that interest, if any, payable at Maturity will be payable to the Person to
whom principal shall be payable.

 

Unless otherwise provided with respect to the Securities of any series,
payment of interest may be made at the option of the Issuer by check mailed or
delivered to the address of the Person entitled thereto as such address shall
appear in the Security Register or by transfer to a bank account maintained by
the payee.

 

Any interest on any Security of any particular series which is due and
payable, but is not punctually paid or duly provided for, on any Interest
Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be
payable to the registered Holder on the relevant Regular Record Date by virtue
of having been such Holder, and such Defaulted Interest shall be paid by the
Issuer, at its election in each case, as provided in clause (1) or (2) below:

 

(1)                                  the
Issuer may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of that series (or their respective Predecessor
Securities) are registered at the close of business on a Special Record Date
for the payment of such Defaulted Interest, which shall be fixed in the
following manner. The Issuer shall notify the Senior Trustee for the Securities
of such series in writing at least 30 days prior to the date of the proposed
payment of the amount of Defaulted Interest proposed to be paid on each
Security of that series and the date of the proposed payment, and at the same
time the Issuer shall deposit with such Senior Trustee an amount of money in
the currency or currency unit in which interest on the Securities of such
series are payable (except as otherwise specified pursuant to Section 3.01
for the Securities of such series and except as provided in Sections 3.11(b),
3.11(d) and 3.11(e)), equal to the aggregate amount proposed to be paid in
respect of such Defaulted Interest or shall make arrangements satisfactory to
such Senior Trustee for such deposit prior to the date of the proposed payment,
such money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this clause provided.  The Issuer shall fix a Special Record Date,
and promptly give notice thereof to the Senior Trustee, for the payment of such
Defaulted Interest which shall not be more than 15 days and not less than 7
days prior to the date of the proposed payment and not less than 10 days after the
receipt by such Senior Trustee of the notice of the proposed payment.  The Issuer, or such Senior Trustee, in the
name and at the expense of the Issuer, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be
mailed, first-class postage prepaid, to each Holder of Securities of that
series at his address as it appears in the Security Register no less than 7
days prior to such Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been mailed as
aforesaid, such Defaulted Interest shall be paid to the Persons in whose names
the Securities of that series (or their respective 

 

28

 

Predecessor Securities) are registered on such Special
Record Date and shall no longer be payable pursuant to the following clause
(2); or

 

(2)                                  the
Issuer may make payment of any Defaulted Interest on Securities of any
particular series in any other lawful manner not inconsistent with the
requirements of any Stock Exchange on which the Securities may be listed, and
upon such notice as may be required by such Stock Exchange, unless, after
notice is given by the Issuer to the Senior Trustee for the Securities of such
series of the proposed manner of payment pursuant to this clause, such manner
of payment shall be deemed impracticable by such Senior Trustee.

 

Subject to the foregoing provisions of this Section and Section 3.05,
each Security delivered under this Senior Indenture upon registration of
transfer of or in exchange for or in lieu of any other Security shall carry the
rights to interest accrued and unpaid, and to accrue, which were carried by
such other Security.

 

SECTION 3.08.                                               Persons Deemed Owners.

 

Prior to due presentment of a Security for registration of transfer,
the Issuer, the Senior Trustee for such Security and any agent of the Issuer or
such Senior Trustee may treat the Person in whose name any such Security is
registered as the owner of such Security for the purpose of receiving payment
of principal of (and premium, if any, on) and (subject to Section 3.07)
interest, if any, on such Security and for all other purposes whatsoever,
whether or not such Security be overdue, and none of the Issuer, such Senior
Trustee or any agent of the Issuer or such Senior Trustee shall be affected by
notice to the contrary.

 

None of the Issuer, the Senior Trustee, any Paying Agent or the
Security Registrar will have any responsibility or liability for any aspect of
the records relating to or payments made on account of beneficial ownership
interests of a global Security or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.

 

SECTION 3.09.                                               Cancellation.

 

Unless otherwise specified in the Securities of a series, all
Securities surrendered for payment, redemption, registration of transfer or
exchange, or delivered in satisfaction of any sinking fund payment, shall, if
surrendered to any Person other than the Senior Trustee for such Securities, be
delivered to such Senior Trustee and shall be promptly cancelled by it. The
Issuer may at any time deliver to the Senior Trustee for Securities of a series
for cancellation any Securities previously authenticated and delivered hereunder
which the Issuer may have acquired in any manner whatsoever, and all Securities
so delivered shall be promptly cancelled by such Senior Trustee.  Notwithstanding any other provision of this
Senior Indenture to the contrary, in the case of a series, all the Securities
of which are not to be originally issued at one time, a Security of such series
shall not be deemed to have been Outstanding at any time hereunder if and to
the extent that, subsequent to the authentication and delivery thereof, such Security
is delivered to the Senior Trustee for such Security for cancellation by the
Issuer or any agent thereof upon the failure of the original purchaser thereof
to make payment therefor against delivery thereof, and any Security so
delivered to such Senior Trustee shall be promptly cancelled by it. No
Securities shall be authenticated in lieu of or in exchange for any Securities 

 

29

 

cancelled as provided in this Section, except as
expressly permitted by this Senior Indenture. All cancelled Securities held by
the Senior Trustee for such Securities shall be disposed of by the Senior
Trustee in accordance with its standard procedures and a certificate of
disposition evidencing such disposition of Securities shall be provided to the
Issuer by the Senior Trustee, unless by an Issuer Order the Issuer shall direct
that such cancelled Securities shall be returned to it. Global Securities shall
not be disposed of until exchanged in full for definitive Securities or until
payment thereon is made in full.

 

SECTION 3.10.                                               Computation of Interest.

 

Except as otherwise specified as contemplated by Section 3.01 for
Securities of any particular series, interest on the Securities of each series
shall be computed on the basis of a 360-day year of twelve 30-day months.

 

SECTION 3.11.                                               Currency and Manner of Payments in Respect of
Securities.

 

(a)                                  With
respect to Securities of any series not permitting the election provided for in
paragraph (b) below or the Holders of which have not made the election
provided for in paragraph (b) below, payment of the principal of (and
premium, if any, on) and interest, if any, on any Security of such series will
be made in the currency or currency unit in which such Security is payable.

 

(b)                                 It
may be provided pursuant to Section 3.01 with respect to Securities of any
series that Holders shall have the option, subject to paragraphs (d) and (e) below,
to receive payments of principal of (or premium, if any, on) or interest, if
any, on such Securities in any of the currencies or currency units which may be
designated for such election by delivering to the Senior Trustee for such
series of Securities a written election with signature guarantees and in form
and substance satisfactory to such Senior Trustee, not later than the close of
business on the Election Date immediately preceding the applicable payment
date. If a Holder so elects to receive such payments in any such currency or
currency unit, such election will remain in effect for such Holder until
changed by such Holder by written notice to the Senior Trustee for such series
of Securities (but any such change may be made not later than the close of
business on the Election Date immediately preceding the next payment date to be
effective for the payment to be made on such payment date and no such change of
election may be made with respect to payments to be made on any Security of
such series with respect to which an Event of Default has occurred and is
continuing or notice of redemption has been given by the Issuer pursuant to Article Eleven).
In the event that any Holder makes any such election pursuant to the preceding
sentence, such election will not be effective with respect to any transferee of
such Holder and such transferee shall be paid in the currency or currency unit
indicated pursuant to paragraph (a) above unless such transferee makes an
election pursuant to the preceding sentence; provided,
however, that such election, if in effect while funds are on deposit
with respect to the Securities of such series as described in Section 4.01(a)(1)(B),
will be effective with respect to any transferee of such Holder unless
otherwise specified pursuant to Section 3.01 for the Securities of such
series. Any Holder of any such Security who shall not have delivered any such
election to the Senior Trustee of such series of Securities not later than the
close of business on the applicable Election Date will be paid the amount due
on the applicable payment date in the relevant currency or currency unit as provided
in paragraph (a) of this Section 3.11. In no case 

 

30

 

may a Holder of Securities of any series elect to
receive payments in any currency or currency unit as described in this Section 3.11(b) following
deposit of funds or U.S. Government Obligations with respect to the Securities
of such series as described in Section 4.01(a)(1)(B). The Senior Trustee
for each such series of Securities shall notify the Currency Determination
Agent as soon as practicable after the Election Date of the aggregate principal
amount of Securities for which Holders have made such written election.

 

(c)                                  If
the election referred to in paragraph (b) above has been provided for
pursuant to Section 3.01, then not later than the fourth Business Day
after the Regular Record Date for each payment date for Securities of any
series, the Currency Determination Agent will deliver to the Issuer a written
notice specifying, in the currency or currency unit in which Securities of such
series are payable, the respective aggregate amounts of principal of (and
premium, if any, on) and interest, if any, on the Securities to be paid on such
payment date, specifying the amounts in such currency or currency unit so
payable in respect of the Securities of such series as to which the Holders
thereof shall have elected to be paid in a currency or currency unit other than
that in which such series is denominated as provided in paragraph (b) above.
If the election referred to in paragraph (b) above has been provided for
pursuant to Section 3.01 and if at least one Holder has made such
election, then, on the second Business Day preceding such payment date the
Issuer will deliver or cause to be delivered to the Senior Trustee for such
series of Securities an Exchange Rate Officers’ Certificate or a Currency
Determination Agent’s Certificate in respect of the Dollar, Foreign Currency,
euro or currency unit payments to be made on such payment date. The Dollar,
Foreign Currency, euro or currency unit amount receivable by Holders of
Securities who have elected payment in a currency or currency unit as provided
in paragraph (b) above shall, unless otherwise provided pursuant to Section 3.01,
be determined by the Issuer or the Currency Determination Agent on the basis of
the applicable Market Exchange Rate in effect on the third Business Day (the “Valuation
Date”) immediately preceding each payment date.

 

(d)                                 Unless
otherwise specified for Securities of a series pursuant to Section 3.01,
if a Conversion Event occurs with respect to a Foreign Currency or any other
currency unit in which any of the Securities are denominated or payable other
than pursuant to an election provided for pursuant to paragraph (b) above,
then with respect to each date for the payment of principal of (and premium, if
any, on) and interest, if any, on the applicable Securities denominated or
payable in such Foreign Currency or such other currency unit occurring after
the last date on which such Foreign Currency or such other currency unit was available
(the “Conversion Date”), the Dollar shall be the currency of payment for use on
each such payment date. The Dollar amount to be paid by the Issuer to the
Senior Trustee of each such series of Securities and with respect to such
payment date shall be the Dollar Equivalent of the Foreign Currency or, in the
case of a currency unit, the Dollar Equivalent of the Currency Unit, in each
case as determined by the Currency Determination Agent in the manner provided
in paragraph (f) or (g) below.

 

(e)                                  Unless
otherwise specified for Securities of a series pursuant to Section 3.01,
if the Holder of a Security denominated in any currency or currency unit shall
have elected to be paid in another currency or currency unit as provided in
paragraph (b) above, and a Conversion Event occurs with respect to such
elected currency or currency unit, such Holder shall receive payment in the
currency or currency unit in which payment would have been made 

 

31

 

in the absence of such election. Unless otherwise
specified for Securities of a series pursuant to Section 3.01, if a
Conversion Event occurs with respect to the currency or currency unit in which
payment would have been made in the absence of such election, such Holder shall
receive payment in Dollars as provided in paragraph (d) of this Section 3.11
or, in the case of a Conversion Event with respect to Dollars, in such currency
or currency units as the Senior Trustee shall select.

 

(f)                                    Unless
otherwise specified for Securities of a series pursuant to Section 3.01,
the “Dollar Equivalent of the Foreign Currency” shall be determined by the
Currency Determination Agent and shall be obtained for each subsequent payment
after the Conversion Date by converting the specified Foreign Currency into
Dollars at the Market Exchange Rate on the Conversion Date.

 

(g)                                 Unless
otherwise specified for Securities of a series pursuant to Section 3.01,
the “Dollar Equivalent of the Currency Unit” shall be determined by the
Currency Determination Agent and
subject to the provisions of paragraph (h) below shall be the sum of each
amount obtained by converting the Specified Amount of each Component Currency
into Dollars at the Market Exchange Rate for such Component Currency on the
Valuation Date with respect to each payment.

 

(h)                                 For
purposes of this Section 3.11 the following terms shall have the following
meanings:

 

A “Component Currency” shall mean any
currency which, on the Conversion Date, was a component currency of the
relevant currency unit.

 

“Election Date” shall mean any date for
any series of Securities as specified pursuant to Section 3.01(13) by
which the written election referred to in Section 3.11(b) may be
made, such date to be not later than the Regular Record Date for the earliest payment
for which such election may be effective.

 

A “Specified Amount” of a Component
Currency shall mean the number of units of such Component Currency or fractions
thereof which were represented in the relevant currency unit on the Conversion
Date. If after the Conversion Date the official unit of any Component Currency
is altered by way of combination or subdivision, the Specified Amount of such
Component Currency shall be divided or multiplied in the same proportion. If
after the Conversion Date two or more Component Currencies are consolidated
into a single currency, the respective Specified Amounts of such Component
Currencies shall be replaced by an amount in such single currency equal to the
sum of the respective Specified Amounts of such consolidated Component
Currencies expressed in such single currency, and such amount shall thereafter
be a Specified Amount and such single currency shall thereafter be a Component
Currency. If after the Conversion Date any Component Currency shall be divided
into two or more currencies, the Specified Amount of such Component Currency
shall be replaced by amounts of such two or more currencies, each of whose
Dollar Equivalent at the Market Exchange Rate on the date of such replacement
shall be equal to the Dollar Equivalent of the Specified Amount of such former
Component Currency at the Market Exchange Rate on such date divided by the
number of currencies into which such Component Currency was divided, and such
amounts shall thereafter 

 

32

 

be Specified Amounts and such currencies shall
thereafter be Component Currencies. If, on or after the Conversion Date of the
relevant currency unit, a Conversion Event (other than any event referred to
above in this definition of “Specified Amount”) occurs with respect to any
Component Currency of such currency unit and is continuing on the applicable
Valuation Date, the Specified Amount of such Component Currency shall, for
purposes of calculating the Dollar Equivalent of the Currency Unit, be
converted into Dollars at the Market Exchange Rate in effect on the Conversion
Date of such Component Currency.

 

All decisions and determinations of the Currency Determination Agent
regarding the Dollar Equivalent of the Foreign Currency, the Dollar Equivalent
of the Currency Unit, the Market Exchange Rate and changes in the Specified
Amounts as specified above shall be in its sole discretion and shall, in the
absence of manifest error, be conclusive for all purposes and irrevocably
binding upon the Issuer and the Senior Trustee for the appropriate series of
Securities and all Holders of such Securities denominated or payable in the
relevant currency or currency units. The Currency Determination Agent shall
promptly give written notice to the Issuer and the Senior Trustee for the
appropriate series of Securities of any such decision or determination.

 

In the event of a Conversion Event with respect to a Foreign Currency,
the Issuer, after learning thereof, will immediately give written notice thereof
to the Senior Trustee of the appropriate series of Securities and the Currency
Determination Agent (and the Senior Trustee will promptly thereafter give
notice in the manner provided in Section 1.06 to the Holders) specifying
the Conversion Date.  In the event of a
Conversion Event with respect to the euro or any other currency unit in which
Securities are denominated or payable, the Issuer, after learning thereof, will
immediately give written notice thereof to the Senior Trustee of the
appropriate series of Securities and the Currency Determination Agent (and the
Senior Trustee will promptly thereafter give notice in the manner provided in Section 1.06
to the Holders) specifying the Conversion Date and the Specified Amount of each
Component Currency on the Conversion Date. In the event of any subsequent
change in any Component Currency as set forth in the definition of Specified
Amount above, the Issuer, after learning thereof, will similarly give written
notice to the Senior Trustee of the appropriate series of Securities and the
Currency Determination Agent.

 

The Senior Trustee of the appropriate series of Securities shall be
fully justified and protected in relying and acting upon information received
by it from the Issuer and the Currency Determination Agent and shall not
otherwise have any duty or obligation to determine such information
independently.

 

SECTION 3.12.                                               Currency Determination Agent.

 

(a)                                  Unless
otherwise specified pursuant to Section 3.01, if and so long as the
Securities of any series (i) are denominated in a currency unit or a
currency other than Dollars or (ii) may be payable in a currency unit or a
currency other than Dollars, or so long as it is required under any other
provision of this Senior Indenture, then the Issuer will maintain with respect
to each such series of Securities, or as so required, a Currency Determination
Agent. The Issuer will cause the Currency Determination Agent to make the
necessary foreign exchange determinations at the time and in the manner
specified pursuant to Section 3.01 for the purpose of determining the
applicable rate of exchange and for the purpose of converting the issued
currency or currency 

 

33

 

unit into the applicable payment currency or currency
unit for the payment of principal (and premium, if any) and interest, if any,
pursuant to Section 3.11.

 

(b)                                 The
Issuer shall procure that no resignation of the Currency Determination Agent
and no appointment of a successor Currency Determination Agent pursuant to this
Section shall become effective until the acceptance of appointment by the
successor Currency Determination Agent as evidenced by a written instrument
delivered to the Issuer and the Senior Trustee of the appropriate series of
Securities accepting such appointment executed by the successor Currency
Determination Agent.

 

(c)                                  If
the Currency Determination Agent shall resign, be removed or become incapable
of acting, or if a vacancy shall occur in the office of the Currency
Determination Agent for any cause, with respect to the Securities of one or
more series, the Issuer, by a Board Resolution, shall promptly appoint a
successor Currency Determination Agent or Currency Determination Agents with
respect to the Securities of that or those series (it being understood that any
such successor Currency Determination Agent may be appointed with respect to the Securities of one or more or
all of such series and that at any time there shall only be one Currency
Determination Agent with respect to the Securities of any particular series).

 

SECTION 3.13.                                               Common Code, CUSIP or ISIN Numbers.

 

The Issuer in issuing any series of the Securities may use Common Code,
CUSIP or ISIN numbers, if then generally in use, and thereafter with respect to
such series, the Senior Trustee or Security Registrar may use such numbers in
any notice of redemption with respect to such series provided that any such
notice may state that no representation is made as to the correctness of such
numbers either as printed on the Securities or as contained in any notice of a
redemption or otherwise, and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption shall
not be affected by any defect in or omission of such numbers.  The Issuer will promptly notify the Senior
Trustee of any change in the Common Code, CUSIP or ISIN numbers.

 

SECTION 3.14.                                               Authenticating Agents.

 

From time to time the Senior Trustee for the Securities of any series
may, subject to its sole discretion, and shall, upon receipt of an Issuer
Order, and for such period as the Issuer shall elect, appoint one or more
Authenticating Agents with respect to the Securities of such series, which may
include any director or officer of the Issuer or any Affiliate or both of them,
with power to act in the name of the Senior Trustee and subject to its
discretion in the authentication and delivery of Securities of such series in
connection with transfers and exchanges under Sections 3.04, 3.05, 3.06 and
11.07 as fully to all intents and purposes as though such Authenticating Agent
had been expressly authorized by those Sections of this Senior Indenture to
authenticate and deliver Securities of such series.  For all purposes of this Senior Indenture,
the authentication and delivery of such Securities of such series by an
Authenticating Agent for such Securities pursuant to this Section shall be
deemed to be authentication and delivery of such Securities “by the Senior
Trustee” for the Securities of such series. 
Any such Authenticating Agent shall (except in the case of the Issuer,
an Affiliate, or an officer or director of the Issuer or an Affiliate) at all
times be a corporation organized and doing business under the 

 

34

 

laws of the United States or of any State thereof or
the District of Columbia, authorized under such laws to exercise corporate
trust powers, having a combined capital and surplus of at least $50,000,000 and
subject to supervision or examination by Federal, State or District of Columbia
authority, as the case may be. If such corporation publishes reports of
condition at least annually pursuant to law or the requirements of such
supervising or examining authority, then for the purposes of this Section the
combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent for any series
of Securities shall cease to be eligible in accordance with the provisions of
this Section, such Authenticating Agent shall resign immediately in the manner
and with the effect specified in this Section.

 

Any Authenticating Agent for any series of Securities may resign at any
time by giving written notice of resignation to the Senior Trustee for such
series and to the Issuer. The Senior Trustee for any series of Securities may
at any time and shall, upon an Issuer Request, terminate the appointment of any
Authenticating Agent by giving written notice of termination to such
Authenticating Agent and to the Issuer in the manner set forth in Section 1.05.  Upon receiving such a notice of resignation
or upon such a termination, or in case at any time any Authenticating Agent for
any series of Securities shall cease to be eligible under this Section, the
Senior Trustee for such series may and shall, upon an Issuer Request, appoint a
successor Authenticating Agent, shall give written notice of such appointment
to the Issuer and shall give written notice of such appointment to all Holders
of Securities of such series in the manner set forth in Section 1.06. Any
successor Authenticating Agent, upon acceptance of his appointment hereunder,
shall become vested with all the rights, powers and duties of his predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

 

The Issuer agrees to pay to any corporation of which any director or
officer has been appointed as Authenticating Agent for such series from time to
time reasonable compensation for such services.

 

If an appointment with respect to one or more series of Securities is
made pursuant to this Section, the Securities of such series may have endorsed
thereon, in addition to the Senior Trustee’s certificate of authentication, an
alternate certificate of authentication substantially in the form specified in Section 2.02.

 

ARTICLE
FOUR

SATISFACTION AND DISCHARGE

 

SECTION 4.01.                                               Satisfaction and Discharge of Securities of any
Series.

 

(a)                                  The
Issuer shall be deemed to have satisfied and discharged the entire indebtedness
on all the Securities of any particular series and, so long as no Event of
Default shall be continuing, the Senior Trustee for the Securities of such
series, upon an Issuer Request and at the expense of the Issuer, shall execute
proper instruments acknowledging satisfaction and discharge of such
indebtedness, when:

 

35

 

(1)                                  either:

 

(A)          all Securities of such
series theretofore authenticated and delivered (other than (i) any
Securities of such series which have been mutilated, destroyed, lost or stolen
and which have been replaced or paid as provided in Section 3.06 and (ii) Securities
of such series for whose payment money has theretofore been deposited in trust
or segregated and held in trust by the Issuer and thereafter repaid to the
Issuer or discharged from such trust, as provided in the last paragraph of Section 10.03)
have been delivered to the Senior Trustee for the Securities of such series for
cancellation; or

 

(B)           except as otherwise
specified pursuant to Section 3.01 for the Securities of such series, with
respect to all Outstanding Securities of such series described in (A) above
not theretofore so delivered to the Senior Trustee for the Securities of such
series for cancellation:

 

(i)            the Issuer has
irrevocably deposited, or caused to be deposited, with the Senior Trustee for
the Securities of such series as trust funds in trust an amount in the currency
or currency unit in which the Securities of such series are payable (except as
otherwise specified pursuant to Section 3.01 of the Securities of such
series and subject as to currency to Sections 3.11(b), 3.11(d) and
3.11(e), in which case the deposit to be made with respect to Securities for
which an election has occurred pursuant to Section 3.11(b) or a
Conversion Event has occurred as provided in Sections 3.11(d) and 3.11(e) shall
be made in the currency or currency unit in which such Securities are payable
as a result of such election or Conversion Event), sufficient (without
consideration of any reinvestment thereof) to pay and discharge the entire
indebtedness on all such Outstanding Securities of such series for unpaid
principal (and premium, if any) and interest, if any, to the Stated Maturity or
any Redemption Date as contemplated by Section 4.02, as the case may be;
or

 

(ii)           the Issuer has
deposited, or caused to be deposited, with such Senior Trustee as obligations
in trust such amount of U.S. Government Obligations as will, as evidenced by a
Certificate of a Firm of Independent Public Accountants delivered to such
Senior Trustee, together with the predetermined and certain income to accrue
thereon (without consideration of any reinvestment thereof), be sufficient to
pay and discharge when due the entire indebtedness on all such Outstanding
Securities of such series for unpaid principal (and premium, if any) and
interest, if any, to the Stated Maturity or Redemption Date as contemplated by Section 4.02,
as the case may be; or

 

(iii)          the Issuer has
deposited, or caused to be deposited, with such Senior Trustee in trust an
amount equal to the amount referred to in clause (i) or (ii) in any
combination of currency or currency unit or U.S. Government Obligations and has
delivered a Certificate of a Firm of Independent Public Accountants to such
Senior Trustee verifying that such combination of funds and U.S. Government
Obligations will be sufficient to pay and discharge the entire 

 

36

 

indebtedness on
all Outstanding Securities of such series for unpaid principal (and premium, if
any) and interest, if any, to the Stated Maturity or any Redemption Date as
contemplated by Section 4.02, as the case may be, taking into account the
predetermined and certain income to accrue on such U.S. Government Obligations
(but without any consideration of any reinvestment thereof) and without taking
consideration of any reinvestment of any such funds;

 

(2)                                  the
Issuer has paid or caused to be paid all other sums payable with respect to the
Securities of such series;

 

(3)                                  the
Issuer has delivered to such Senior Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent herein provided
for relating to the satisfaction and discharge of the entire indebtedness on
all Securities of such series have been complied with;

 

(4)                                  if
the Securities of such series are not to become due and payable at their Stated
Maturity within one year of the date of a deposit pursuant to Section 4.01(a)(1)(B) or
are not to be called for redemption within one year of the date of such deposit
under arrangements satisfactory to such Senior Trustee as of the date of such
deposit, then the Issuer shall have given, not later than the date of such
deposit, notice of such deposit to the Holders of such Securities; and

 

(5)                                  if
the conditions set forth in Section 4.01(a)(1)(A) have not been
satisfied, and unless otherwise specified pursuant to Section 3.01 for the
Securities of such series, the Issuer has delivered to the Senior Trustee an
Opinion of Counsel to the effect that (A) the Issuer has received from, or
there has been published by, the Internal Revenue Service a ruling, or (B) since
the date of this Senior Indenture there has been a change in applicable United
States Federal income tax law, in either case to the effect that, and based
upon which such Opinion of Counsel shall confirm that, the beneficial owners of
Securities of such series will not recognize income, gain or loss for United
States Federal income tax purposes as a result of such deposit, satisfaction
and discharge and will be subject to United States Federal income tax on the
same amount and in the same manner and at the same time as would have been the
case if such deposit, satisfaction and discharge had not occurred.

 

(a)                                  Upon
the satisfaction of the conditions set forth in this Section 4.01 with
respect to all the Securities of any series, the terms and conditions of the
Securities of such series, including the terms and conditions with respect
thereto set forth in this Senior Indenture, as applicable shall no longer be
binding upon, or applicable to, the Issuer, and the Holder of the Securities of
such series shall look for payment only to the funds or obligations deposited
with the Senior Trustee pursuant to Section 4.01(a)(1)(B); provided, however, that in no event
shall the Issuer be discharged from (i) any payment obligations in respect
of Securities of such series which are deemed not to be Outstanding under
clause (3) of the definition thereof if such obligations continue to be
valid obligations of the Issuer under applicable law, (ii) any obligations
under Sections 4.02(b), 6.07 and 6.10 and (iii) any obligations under
Sections 3.04, 3.05 and 3.06 (except that Securities of such series issued upon
registration of transfer or exchange or in lieu of mutilated, destroyed, lost
or stolen Securities shall not be obligations of the Issuer) and Sections 3.11,
5.16, 7.01 and 10.02; and provided,
further, that in the event a 

 

37

 

petition seeking relief under any applicable
Bankruptcy Law is filed and not discharged with respect to the Issuer within
123 days after the deposit, the entire indebtedness on all Securities of such
series shall not be discharged, and in such event the Senior Trustee shall
return such deposited funds or obligations as it is then holding to the Issuer
upon an Issuer Request.  Notwithstanding
the satisfaction of the conditions set forth in this Section 4.01, with
respect to all the Securities of any series not denominated in Dollars, upon
the happening of any Conversion Event the indebtedness represented by such
Securities shall be converted from the currency or currency unit in which such
Security is payable into Dollars at the Dollar Equivalent of the Foreign
Currency or the Dollar equivalent of the Currency Unit and the Issuer shall be
obligated to make the payments in Dollars (or such other currency as set out in
Section 3.11(e)) required by Section 3.11(d) or 3.11(e) to
the extent that the Currency Determination Agent is unable to convert any
Foreign Currency or currency unit so deposited with the Senior Trustee pursuant
to Section 4.01(a)(1)(B) into the Dollar Equivalent of the Foreign
Currency or the Dollar Equivalent of the Currency Unit, as the case may
be.  The Senior Trustee for such series
of Securities shall return to the Issuer any non-converted funds or securities
in its possession after such payments have been made.

 

SECTION 4.02.                                               Application of Trust Money.

 

(a)                                  All
money and obligations deposited with the Senior Trustee for any series of
Securities pursuant to Section 4.01 shall be held irrevocably in trust and
shall be made under the terms of an escrow trust agreement in form satisfactory
to such Senior Trustee. Such money and obligations shall be applied by such
Senior Trustee, in accordance with the provisions of the Securities, this
Senior Indenture and such escrow trust agreement, to the payment, either
directly or through any Paying Agent (including the Issuer acting as its own
Paying Agent) as such Senior Trustee may determine, to the Persons entitled
thereto, of the principal of (and premium, if any, on) and interest, if any, on
the Securities for the payment of which such money and obligations have been
deposited with such Senior Trustee. If Securities of any series are to be
redeemed prior to their Stated Maturity, whether pursuant to any optional
redemption provisions or in accordance with any mandatory sinking fund
requirement, the Issuer shall make such arrangements as are satisfactory to the
Senior Trustee for any series of Securities for the giving of notice of
redemption by such Senior Trustee in the name, and at the expense, of the
Issuer.

 

(b)                                 The
Issuer shall pay and shall indemnify the Senior Trustee for any series of
Securities against any tax, fee or other charge imposed on or assessed against
U.S. Government Obligations deposited pursuant to Section 4.01 or the
interest and principal received in respect of such U.S. Government Obligations
other than any such tax, fee or other charge which by law is payable by or on
behalf of Holders; it being understood that the Senior Trustee shall bear no
responsibility for any such tax, fee or other charge which by law is payable by
or on behalf of Holders.  The obligation
of the Issuer under this Section 4.02(b) shall be deemed to be an
obligation of the Issuer under Section 6.07(2).

 

(c)                                  Anything
in this Article Four to the contrary notwithstanding, the Senior Trustee
for any series of Securities shall deliver or pay to the Issuer from time to
time upon an Issuer Request any money or U.S. Government Obligations held by it
as provided in Section 4.01 which, as expressed in a Certificate of a Firm
of Independent Public Accountants delivered to such Senior Trustee, are in
excess of the amount thereof which would then have been required to 

 

38

 

be deposited for the purpose for which such money or
U.S. Government Obligations were deposited or received.

 

SECTION 4.03.                                               Satisfaction and Discharge of Senior Indenture.

 

Upon compliance by the Issuer with the provisions of Section 4.01
as to the satisfaction and discharge of each series of Securities issued
hereunder, and if the Issuer has paid or caused to be paid all other sums
payable under this Senior Indenture, this Senior Indenture shall cease to be of
any other effect (except as otherwise provided herein). Upon an Issuer Request and
receipt of an Opinion of Counsel and an Officers’ Certificate complying with
the provisions of Section 1.02, the Senior Trustees for all series of
Securities (at the expense of the Issuer) shall execute proper instruments
acknowledging satisfaction and discharge of this Senior Indenture.

 

Notwithstanding the satisfaction and discharge of this Senior
Indenture, any obligations of the Issuer under Sections 3.04, 3.05, 3.06, 3.11,
4.02(b), 4.04, 5.16, 6.07, 6.10, 7.01 and 10.02 and the obligations of the Senior
Trustee for any series of Securities under Section 4.02 and the rights and
immunities of the Senior Trustee under this Senior Indenture shall survive.

 

SECTION 4.04.                                               Reinstatement.

 

If the Senior Trustee for any series of Securities is unable to apply any
of the amounts (for purposes of this Section 4.04, “Amounts”) or U.S.
Government Obligations, as the case may be, described in Section 4.01(a)(1)(B)(i) or
(ii), respectively, in accordance with the provisions of Section 4.01 by
reason of any legal proceeding or any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, each of the obligations of the Issuer under this Senior Indenture
and the Securities of such series shall be revived and reinstated as though no
deposit had occurred pursuant to Section 4.01 until such time as the
Senior Trustee for such series is permitted to apply all such Amounts or U.S.
Governmental Obligations, as the case may be, in accordance with the provisions
of Section 4.01; provided,
however, that if, due to the reinstatement of its rights or obligations
hereunder, the Issuer has made any payment of principal of (or premium, if any,
on) or interest, if any, on such Securities, the Issuer shall be subrogated to
the rights of the Holders of such Securities to receive payment from such
Amounts or U.S. Government Obligations, as the case may be, held by the Senior
Trustee for such series.

 

ARTICLE
FIVE

REMEDIES

 

SECTION 5.01.                                               Events of Default.

 

Unless otherwise provided for in the Board Resolution or supplemental
indenture pursuant to Section 3.01 establishing the terms of a particular
series of Securities, “Event of
Default” wherever used herein with respect to any particular series of
Securities means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree 

 

39

 

or order of any court or any order, rule or
regulation of any administrative or governmental body):

 

(1)                                  the
Issuer defaults in the timely payment of the principal of (or premium, if any,
on) any Security of that series at its Maturity, or default is made on the
payment of any interest due in respect of any Security of that series and, in
each case such default continues for a period of 14 days from the due date for
payment; or

 

(2)                                  the
Issuer fails to perform or observe, or breaches any of its other covenants,
obligations or warranties under this Senior Indenture in any material respect
(other than an obligation which has expressly been included in this Senior
Indenture solely for the benefit of series of Securities other than that
series) or the Securities of that series and such failure continues for a
period of 30 days after the date on which there has been given, by registered
or certified mail, to the Issuer by the Senior Trustee, or to the Issuer and
the Senior Trustee by the Holders of at least 25% in principal amount of the
Outstanding Securities of such series, written notice specifying such default
requiring the breach to be remedied; or

 

(3)                                  either
a court of competent jurisdiction issues an order which is not successfully
appealed within 30 days, or an effective shareholders’ resolution is validly
adopted, for the winding up of the Issuer or the Principal Subsidiary (except,
in the case of the Principal Subsidiary, for the purposes of, or in connection
with a scheme of reconstruction, merger or amalgamation not involving
bankruptcy or insolvency the terms of which have previously been approved in
writing by the Holders of at least 75% in aggregate principal amount of the Outstanding Securities of that series or in the
event of a voluntary winding up where surplus assets are available for
distribution); or

 

(4)                                  if
either the Issuer or the Principal Subsidiary stop or threaten to stop payments
to creditors generally or either the Issuer or the Principal Subsidiary ceases
or threatens to cease to carry on its business or substantially the whole of
the business of the Issuer or the Principal Subsidiary (except for the purposes
of, or in connection with, a reconstruction or amalgamation the terms of which
have previously been approved in writing by the Holders of at least 75% in
principal amount of the Outstanding Securities of that series or, in the case
of the Principal Subsidiary, in the event of a voluntary solvent winding up
where surplus assets are available for distribution); or

 

(5)                                  if
an encumbrancer takes possession or an administrative or other receiver or an
administrator is appointed of the whole or any substantial part of the
undertaking, property and assets of the Issuer or the whole or any substantial
part of the undertaking, property and assets of the Principal Subsidiary, or if
a distress or execution is levied or enforced upon or sued out against the
whole or any substantial part of the chattels or property of the Issuer or the
whole or any substantial part of the chattels or property of the Principal Subsidiary
and, in the case of any of the foregoing events, is not discharged within 60
days; or

 

(6)                                  if
either the Issuer or the Principal Subsidiary is unable to pay its debts within
the meaning of Section 123(2) of the Insolvency Act 1986 of the
United Kingdom; or

 

40

 

(7)                                  if
the Indebtedness for Moneys Borrowed of the Issuer or the Indebtedness for
Moneys Borrowed of the Principal Subsidiary, which indebtedness in respect of
any single company has an outstanding aggregate principal amount of at least
£30,000,000 (or its equivalent in any other currency or currencies) is not paid
on its due date as extended by any applicable grace period and following a
demand therefore, or is so declared to be or automatically becomes, due and
payable prior to its stated maturity by reason of default or if any guarantee
or indemnity in respect of Indebtedness for Moneys Borrowed of any third party
that the Issuer or the Principal Subsidiary has given (having in respect of any
single company an outstanding aggregate principal amount as aforesaid) is not
honored when due and called upon and, in any such case, the liability of the
Issuer or the liability of the Principal Subsidiary, as the case may be, to
make payment is not being contested in good faith; or

 

(8)                                  if
the Principal Subsidiary shall cease to be a Subsidiary, except pursuant to an
amalgamation, reconstruction or winding up the terms of which have previously
been approved in writing by Holders of at least 75% in aggregate principal
amount of the outstanding Securities of that series or a voluntary solvent
winding up where surplus assets are available for distribution.

 

The Issuer shall deliver to the Senior Trustee, as soon as possible and
in any event within five days after the Issuer becomes aware of the occurrence
of any Event of Default or an event which, with notice or the lapse of time or
both, would constitute an Event of Default, an Officers’ Certificate setting
forth the nature and status of such Event of Default.

 

SECTION 5.02.                                               Acceleration of Maturity; Rescission and Annulment.

 

If an Event of Default with respect to any particular series of
Securities occurs and is continuing, the Senior Trustee for the Securities of
such series or the Holders of not less than 25% in aggregate principal amount
of the Outstanding Securities of that series may exercise any right, power or
remedy permitted by law, and shall have, in particular, without limiting the
generality of the foregoing, the right to declare the entire principal amount
of (including premium, if any, on), or (in the case of Discounted Securities)
such lesser amount as may be provided for with respect to the Securities of
such series, and unless otherwise provided in a Board Resolution or
supplemental indenture pursuant to Section 3.01 hereof, any accrued but
unpaid interest on, all the Outstanding Securities of that series to be due and
payable immediately, by a notice in writing to the Issuer (and to the Senior
Trustee if given by Holders).  Upon any
such declaration of acceleration such principal or such lesser amount, as the
case may be, including premium, if any, thereon, together with any accrued
interest and all other amounts owing thereunder and hereunder (with respect to
such series of Securities), shall become immediately due and payable, without
presentment, demand, protest or notice of any kind, all of which are hereby
expressly waived.

 

At any time after such a declaration of acceleration has been made, but
before a judgment or decree for payment of the money due has been obtained by
the Senior Trustee for the Securities of any series as hereinafter in this Article provided,
the Holders of a majority in aggregate principal amount of the Outstanding
Securities of that series, by written notice to the Issuer and such Senior
Trustee, may rescind and annul such declaration and its consequences provided:

 

41

 

(1)                                  the
Issuer has paid or deposited with such Senior Trustee a sum sufficient to pay:

 

(A)                              in
the currency or currency unit in which that series of Securities is payable
(except as provided in Sections 3.11(b), 3.11(d) and 3.11(e)), all overdue
interest on all Securities of that series;

 

(B)                                in
the currency or currency unit in which that series of Securities is payable
(except as provided in Sections 3.11(b), 3.11(d) and 311(e)), the
principal of (and premium, if any, on) any Securities of that series which have
become due otherwise than by such declaration of acceleration and interest
thereon from the date such principal became due at a rate per annum equal to
the rate borne by the Securities of such series (or, in the case of Discounted
Securities, the Securities’ Yield to Maturity), to the extent that the payment
of such interest shall be legally enforceable;

 

(C)                                in
the currency or currency unit in which that series of Securities is payable
(except as provided in Sections 3.11(b), 3.11(d) and 311(e)), to the
extent that payment of such interest is lawful, interest upon overdue interest
at the rate or rates prescribed therefor or in the Securities of such series
(or, unless otherwise specified pursuant to Section 3.01, in the case of
Discounted Securities, the Securities’ Yield to Maturity); and

 

(D)                               in
Dollars, all sums paid or advanced by the Senior Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of such Senior
Trustee, its agents and counsel and all other amounts then due to such Senior
Trustee under Section 6.07;

 

and

 

(2)                                  all
Events of Default with respect to the Securities of such series, other than the
non-payment of the principal of (or premium, if any, on) Securities of that
series which have become due solely by such acceleration, have been cured or
waived as provided in Section 5.13.

 

No such rescission shall affect any subsequent default or impair any
right consequent thereon.

 

SECTION 5.03.                                               Collection of Indebtedness and Suits for Enforcement
by Senior Trustee.

 

The Issuer covenants that if:

 

(1)                                  default
is made in the payment of any interest upon any Security of any series when
such interest becomes due and payable and such default continues for a period
of 14 days; or

 

(2)                                  default
is made in the timely payment of the principal of (or premium, if any, on) any
Security of any series at its Maturity,

 

42

 

the Issuer will, upon demand of the
Senior Trustee for the Securities of such series, pay to it, for the benefit of
the Holders of such Securities, the whole amount then due and payable on such
Securities for principal (and premium, if any) and interest, if any, with
interest upon the overdue principal (and premium, if any) and, to the extent
that payment of such interest shall be legally enforceable, upon any overdue
installments of interest at the rate or rates prescribed therefor in such
Securities (or, unless otherwise specified pursuant to Section 3.01, in
the case of Discounted Securities, the Securities’ Yield to Maturity); and, in
addition thereto, such further amount as shall be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of such Senior Trustee, its agents and counsel.

 

If the Issuer fails to pay such amounts forthwith upon such demand,
such Senior Trustee, in its own name and as Senior Trustee of an express trust,
may institute a judicial proceeding for the collection of the sums so due and
unpaid, and may prosecute such proceedings to judgment or final decree, and may
enforce the same against the Issuer or any other obligor upon the Securities
and collect the moneys adjudged or decreed to be payable in the manner provided
by law out of the property of the Issuer or any other obligor upon the
Securities, wherever situated.

 

If an Event of Default with respect to Securities of any particular
series occurs and is continuing, the Senior Trustee for the Securities of such
series may in its discretion proceed to protect and enforce its rights and the
rights of the Holders of Securities of that series by such appropriate judicial
proceedings as such Senior Trustee shall deem most effectual to protect and
enforce any such rights, whether for the specific enforcement of any covenant
or agreement in this Senior Indenture or in aid of the exercise of any power
granted herein, or to enforce any other proper remedy.

 

SECTION 5.04.                                               Senior Trustee May File Proofs of Claim.

 

In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relating to the Issuer or any other obligor upon the
Securities of any series or the property of the Issuer or of such other obligor
or their creditors, the Senior Trustee for the Securities of such series
(irrespective of whether the principal (or lesser amount in the case of
Discounted Securities) of any Security of such series shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of
whether such Senior Trustee shall have made any demand on the Issuer for the payment
of overdue principal or interest) shall be entitled and empowered, by
intervention in such proceeding or otherwise:

 

(1)                                  to
file and prove a claim for the whole amount of principal (or lesser amount in
the case of Discounted Securities) (and premium, if any) and interest, if any,
owing and unpaid in respect of the Securities of such series and to file such
other papers or documents as may be necessary or advisable in order to have the
claims of such Senior Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of such Senior Trustee, its
agents and counsel and all other amounts due to such Senior Trustee under Section 6.07)
and of the Holders of the Securities of such series allowed in such judicial
proceeding;

 

43

 

(2)                                  to
collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same; and

 

(3)                                  unless
prohibited by law or applicable regulations, to vote on behalf of the Holders
of the Securities of such series in any election of a trustee in bankruptcy,
liquidator or other persons performing similar functions;

 

and any receiver, assignee,
trustee, liquidator, sequestrator (or other similar official) in any such judicial
proceeding is hereby authorized by each Holder of Securities to make such
payments to such Senior Trustee, and in the event that such Senior Trustee
shall consent to the making of such payments directly to the Holders of
Securities, to pay to such Senior Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of such Senior
Trustee, its agents and counsel and any other amounts due such Senior Trustee
under Section 6.07.

 

Nothing herein contained shall be deemed to authorize the Senior
Trustee for the Securities of any series to authorize or consent to or accept
or adopt on behalf of any Holder of a Security any plan of reorganization,
arrangement, adjustment or composition affecting the Securities of such series
or the rights of any Holder thereof, or to authorize the Senior Trustee for the
Securities of any series to vote in respect of the claim of any Holder in any
such proceeding, except as aforesaid, for the election of a trustee in
bankruptcy or other person performing similar functions.

 

SECTION 5.05.                                               Senior Trustee May Enforce Claims Without
Possession of Securities.

 

All rights of action and claims under this Senior Indenture or the
Securities of any series may be prosecuted and enforced by the Senior Trustee
for the Securities of any series without the possession of any of the
Securities of such series or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by such Senior Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of
judgment shall, after provision for the payment of the reasonable compensation,
expenses, disbursements and advances of such Senior Trustee, its agents and
counsel and all other amounts due to such Senior Trustee under Section 6.07,
be for the ratable benefit of the Holders of the Securities of such series in
respect of which such judgment has been recovered.

 

SECTION 5.06.                                               Application of Money Collected.

 

Any money collected by the Senior Trustee for the Securities of any
series pursuant to this Article with respect to the Securities of such
series shall be applied in the following order, at the date or dates fixed by
such Senior Trustee and, in case of the distribution of such money on account
of principal (or lesser amount in the case of Discounted Securities) (or
premium, if any) or interest, if any, upon presentation of the Securities of
such series and the notation thereon of the payment if only partially paid and
upon surrender thereof if fully paid:

 

First:  To the payment of all
amounts due such Senior Trustee under Section 6.07;

 

Second:  To the payment of the
amounts then due and unpaid upon the Securities of such series for principal
(or lesser amount in the case of Discounted Securities) of (and 

 

44

 

premium, if any, on) and interest, if any, on such
Securities in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to
the amounts due and payable on such Securities for principal (or lesser amount
in the case of Discounted Securities) (and premium, if any) and interest, if
any, respectively; and

 

Third:  The balance, if any, to
the Person or Persons entitled thereto.

 

SECTION 5.07.                                               Limitation on Suits.

 

Except as set forth in Section 5.08, no Holder of any Security of
any particular series shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Senior Indenture, or for the appointment
of a receiver or trustee, or for any other remedy hereunder, unless;

 

(1)                                  an
Event of Default with respect to that series shall have occurred and be
continuing and such Holder shall have previously given written notice to the
Senior Trustee for the Securities of such series of such Event of Default and
the continuance thereof;

 

(2)                                  the
Holders of not less than 25% in aggregate principal amount of the Outstanding
Securities of that series shall have made written request to the Senior Trustee
for the Securities of such series to institute proceedings in respect of such
Event of Default in its own name as Senior Trustee hereunder;

 

(3)                                  such
Holder or Holders have offered to such Senior Trustee indemnity satisfactory to
the Senior Trustee against the costs, expenses and liabilities to be incurred
in compliance with such request;

 

(4)                                  such Senior Trustee for 60
days after its receipt of such notice, request and offer of indemnity has
failed to institute any such proceeding; and

 

(5)                                  no
direction inconsistent with such written request has been given to such Senior
Trustee during such 60-day period by the Holders of a majority in aggregate
principal amount of the Outstanding Securities of that series; it being understood and
intended that no one or more Holders of Securities of that series shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Senior Indenture to affect, disturb or prejudice the rights of any
other Holders of Securities of that series, or to enforce any right under this
Senior Indenture, except in the manner herein provided and for the equal and
ratable benefit of all the Holders of Securities of that series.

 

SECTION 5.08.                                               Unconditional Right of Holders to Receive Principal
(and Premium, if any) and Interest, if any.

 

Notwithstanding any other provision in this Senior Indenture, the
Holder of any Security shall have the right which is absolute and unconditional
to receive payment of the principal of (and premium, if any, on) and (subject
to Section 3.07) interest, if any, on such Security on the respective
Stated Maturities expressed in such Security (or, in the case of redemption, on
the Redemption Date) and to institute suit for the enforcement of any such
payment and such right shall not be impaired without the consent of such
Holder.

 

45

 

SECTION 5.09.                                               Restoration of Rights and Remedies.

 

If the Senior Trustee for the Securities of any series or any Holder of
a Security has instituted any proceeding to enforce any right or remedy under
this Senior Indenture and such proceeding has been discontinued or abandoned
for any reason, or has been determined adversely to such Senior Trustee or to
such Holder, then and in every such case the Issuer, such Senior Trustee and
the Holders of Securities shall, subject to any determination in such
proceeding, be restored severally and respectively to their former positions
hereunder, and thereafter all rights and remedies of such Senior Trustee and
such Holders shall continue as though no such proceeding had been instituted.

 

SECTION 5.10.                                               Rights and Remedies Cumulative.

 

Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities in the last paragraph of Section 3.06,
no right or remedy herein conferred upon or reserved to the Senior Trustee for
the Securities of any series or to the Holders of Securities is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

 

SECTION 5.11.                                               Delay or Omission Not Waiver.

 

No delay or omission of the Senior Trustee for the Securities of any
series or of any Holder of any Security of such series to exercise any right or
remedy accruing upon any Event of Default with respect to the Securities of
such series shall impair any such right or remedy or constitute a waiver of any
such Event of Default or an acquiescence therein. Every right and remedy given
by this Article or by law to such Senior Trustee for the Securities of any
series or to the Holders may be exercised from time to time, and as often as
may be deemed expedient, by such Senior Trustee or by the Holders, as the case
may be.

 

SECTION 5.12.                                               Control by Holders.

 

Subject to Sections 6.01 and 6.03, the Holders of a majority in
aggregate principal amount of the Outstanding Securities of any particular
series shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Senior Trustee for the
Securities of such series with respect to the Securities of that series or
exercising any trust or power conferred on such Senior Trustee with respect to
such Securities; provided that:

 

(1)                                  the
Senior Trustee may refuse to follow any direction in conflict with any rule of
law or with this Senior Indenture or which is unjustly prejudicial to the
Holders of the Securities of that series not taking part in the direction. For
the avoidance of doubt, the determination of whether any direction is unjustly
prejudicial to any Holder is solely at the discretion of the Senior Trustee;

 

46

 

(2)                                  the
Senior Trustee need not take any action which might involve it in personal
liability; and

 

(3)                                  such
Senior Trustee may take any other action deemed proper by such Senior Trustee
which is not inconsistent with such direction.

 

SECTION 5.13.                                               Waiver of Past Defaults.

 

The Holders of not less than a majority in aggregate principal amount
of the Outstanding Securities of any particular series may on behalf of the
Holders of all the Securities of that series waive any past default hereunder
with respect to that series and its consequences, except:

 

(1)                                  a
default in the payment of the principal of (or premium, if any, on) or
interest, if any, on any Security of that series; or

 

(2)                                  a
default with respect to a covenant or provision hereof which under Article Nine
cannot be modified or amended without the consent of the Holder of each
Outstanding Security of that series affected.

 

Upon any such waiver, such default shall cease to exist, and any Event
of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Senior Indenture; but no such waiver shall extend to any
subsequent or other default or impair any right consequent thereon.

 

SECTION 5.14.                                               Undertaking for Costs.

 

All parties to this Senior Indenture agree, and each Holder of any
Security by his acceptance thereof shall be deemed to have agreed, that any
court may in its discretion require, in any suit for the enforcement of any
right or remedy under this Senior Indenture or in any suit against the Senior
Trustee for the Securities of any series for any action taken or omitted by it
as Senior Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees and
expenses, against any party litigant in such suit, having due regard to the
merits and good faith of the claims or defenses made by such party litigant;
but the provisions of this Section shall (subject to applicable laws) not
apply to any suit instituted by the Senior Trustee for the Securities of any
series, to any suit instituted by any Holder, or group of Holders, holding in
the aggregate more than 10% in aggregate principal amount of the Outstanding
Securities of any particular series or to any suit instituted by any Holder of
any Security for the enforcement of the payment of the principal of (or
premium, if any, on) or interest, if any, on any Security of such series on or
after the respective Stated Maturities expressed in such Security (or, in the
case of redemption, on or after the Redemption Date) or the date such Security
becomes due and payable as expressed herein.

 

SECTION 5.15.                                               Waiver of Stay or Extension Laws.

 

The Issuer covenants (to the extent that it may lawfully do so) that it
will not at any time insist upon, or plead, or in any manner whatsoever claim
or take the benefit or 

 

47

 

advantage of, any stay or extension law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Senior Indenture; and the Issuer (to the extent that
it may lawfully do so) hereby expressly waives all benefit or advantage of any
such law, and covenants that it will not hinder, delay or impede the execution
of any power herein granted to the Senior Trustee for any series of Securities,
but will suffer and permit the execution of every such power as though no such
law had been enacted.

 

SECTION 5.16.                                               Judgment Currency.

 

If, for the purpose of obtaining a judgment in any court with respect
to any obligation of the Issuer hereunder or under any Security, it shall
become necessary to convert into any other currency or currency unit any amount
in the currency or currency unit due hereunder or under such Security, then
such conversion shall be made by the Issuer or the Currency Determination Agent
at the Market Exchange Rate as in effect on the date of entry of the judgment
(the “Judgment Date”). If pursuant to any such judgment, conversion shall be
made on a date (the “Substitute Date”) other than the Judgment Date and there
shall occur a change between the Market Exchange Rate as in effect on the
Judgment Date and the Market Exchange Rate as in effect on the Substitute Date,
the Issuer agrees to pay such additional amounts (if any) as may be necessary
to ensure that the amount paid is equal to the amount in such other currency or
currency unit which, when converted at the Market Exchange Rate as in effect on
the Judgment Date, is the amount due hereunder or under such Security. Any
amount due from the Issuer under this Section 5.16 shall be due as a
separate debt and is not to be affected by or merged into any judgment being
obtained for any other sum due hereunder or in respect of any Security, as the
case may be. In no event, however, shall the Issuer be required to pay more in
the currency or currency unit due hereunder or under such Security at the
Market Exchange Rate as in effect on the Judgment Date than the amount of
currency or currency unit stated to be due hereunder or under such Security so
that in any event the obligations of the Issuer hereunder or under such
Security will be effectively maintained as obligations in such currency or
currency unit, and the Issuer shall be entitled to withhold (or be reimbursed
for, as the case may be) any excess of the amount actually realized upon any
such conversion on the Substitute Date over the amount due and payable on the
Judgment Date.

 

ARTICLE
SIX

THE SENIOR TRUSTEE

 

SECTION 6.01.                                               Certain Duties and Responsibilities.

 

(a)                                  Except
during the continuance of an Event of Default with respect to the Securities of
any series for which the Senior Trustee is serving as such:

 

(1)                                  such
Senior Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Senior Indenture, and no implied covenants or
obligations shall be read into this Senior Indenture against such Senior
Trustee; and

 

(2)                                  in
the absence of bad faith on its part, such Senior Trustee may conclusively
rely, as to the truth of the statements and correctness of the opinions
expressed 

 

48

 

therein, upon certificates or opinions furnished to
such Senior Trustee and conforming to the requirements of this Senior
Indenture; but in the case of any such certificates or opinions which by any
provisions hereof are specifically required to be furnished to such Senior
Trustee, such Senior Trustee shall be under a duty to examine the same to
determine whether or not they conform to the requirements of this Senior
Indenture (but need not confirm or investigate the accuracy of mathematical
calculations or other facts stated therein).

 

(b)           In case an
Event of Default with respect to a series of Securities has occurred and is
continuing, the Senior Trustee for the Securities of such series shall exercise
such of the rights and powers vested in it by this Senior Indenture, and use
the same degree of care and skill in their exercise, as a prudent person would
exercise or use under the circumstances in the conduct of his own affairs.  The Senior Trustee will be under no
obligation to exercise any of its rights or powers under the Senior Indenture
at the request of any Holder unless such Holder shall have offered to the
Senior Trustee security and indemnity reasonably satisfactory to the Senior
Trustee against any loss, liability or expense, and then only to the extent
required by the terms of the Senior Indenture.

 

(c)           No
provision of this Senior Indenture shall be construed to relieve the Senior
Trustee for Securities of any series from liability for its own negligent
action, its own negligent failure to act, or its own willful misconduct, except
that:

 

(1)           this
Subsection shall not be construed to limit the effect of Subsection (a) of
this Section;

 

(2)           such
Senior Trustee shall not be liable for any error of judgment made in good faith
by a Responsible Officer, unless it shall be proved that the Senior Trustee was
negligent in ascertaining the pertinent facts;

 

(3)           such Senior Trustee shall not be liable with respect to any
action taken, suffered or omitted to be taken by it in good faith in accordance
with a direction received by it pursuant to Section 5.02, 5.07, 5.12 or
5.13 or exercising any trust or power conferred upon such Senior Trustee under
this Senior Indenture with respect to the Securities of that series; and

 

(4)           no
provision of this Senior Indenture shall require the Senior Trustee for any
series of Securities to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder or in the
exercise of any of its rights or powers.

 

(d)           Whether or not therein
expressly so provided, every provision of this Senior Indenture relating in any
way to the Senior Trustee for any series of Securities shall be subject to the
provisions of this Section.

 

SECTION 6.02.                                               Notice of Default.

 

Within 90 days after the occurrence of any default hereunder with
respect to Securities of any particular series, the Senior Trustee for the
Securities of such series shall give to Holders of Securities of that series,
in the manner set forth in Section 1.06, notice of such default if
actually known to such Senior Trustee, unless such default shall have been
cured or waived; provided, however,
that, except in the case of a default in the payment of the principal of 

 

49

 

(or premium, if any, on) or interest, if any, on any
Security of that series, such Senior Trustee shall be protected in withholding
such notice if and so long as the board of directors, the executive committee
or a trust committee of directors and/or Responsible Officers of the Senior
Trustee determines in good faith that the withholding of such notice is in the
interests of the Holders of Securities of that series.  For the purpose of this Section, the term “default”
means any event which is, or after notice or lapse of time or both would
become, an Event of Default with respect to Securities of that series.

 

SECTION 6.03.                                               Certain Rights of Senior Trustee.

 

Except as otherwise provided in Section 6.01:

 

(1)                                  the
Senior Trustee for any series of Securities may conclusively rely and shall be
protected in acting or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, discretion, consent,
order, bond, debenture, coupon or other paper or document believed by it to be
genuine and to have been signed or presented by the proper party or parties;

 

(2)                                  any
request or direction of the Issuer mentioned herein shall be sufficiently
evidenced by an Issuer Request or Issuer Order, as the case may be, and any
resolution of the Board of Directors of the Issuer may be sufficiently
evidenced by a Board Resolution;

 

(3)                                  whenever
in the administration of this Senior Indenture such Senior Trustee shall deem
it desirable that a matter be proved or established prior to taking, suffering
or omitting any action hereunder, such Senior Trustee (unless other evidence be
herein specifically prescribed) may, in the absence of bad faith on its part,
conclusively rely upon an Officers’ Certificate;

 

(4)                                  such
Senior Trustee may consult with counsel of its selection and the advice or
opinion of such counsel or any Opinion of Counsel shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted by it
hereunder in good faith and in reliance thereon;

 

(5)                                  such
Senior Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Senior Indenture at the request or direction of any
of the Holders of Securities of any series pursuant to this Senior Indenture
for which it is acting as Senior Trustee, unless such Holders shall have
offered to such Senior Trustee security or indemnity satisfactory to the Senior
Trustee against the costs, expenses and liabilities that might be incurred by
it in compliance with such request or direction;

 

(6)                                  such
Senior Trustee shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, coupon or
other paper or document, but such Senior Trustee, in its discretion, may make
such further inquiry or investigation into such facts or matters as it may see
fit, and, if such Senior Trustee shall determine to make such further inquiry
or investigation, it shall be entitled to examine the books, records and
premises of the Issuer, personally or by agent or attorney;

 

50

 

(7)                                  such
Senior Trustee may execute any of the trusts or powers hereunder or perform any
duties hereunder either directly or by or through agents or attorneys and such
Senior Trustee shall not be responsible for any misconduct or negligence on the
part of any agent or attorney appointed with due care by it hereunder;

 

(8)                                  such
Senior Trustee shall have no duties or responsibilities with respect to and
shall have no liability for the actions taken or the failures to act of any
other Senior Trustees appointed hereunder;

 

(9)                                  such
Senior Trustee shall not be liable for any action taken, suffered or omitted to
be taken in good faith and reasonably believed by it to be authorized or within
the discretion or rights or powers conferred upon it by this Senior Indenture;

 

(10)                            the
Senior Trustee shall not be deemed to have notice or knowledge of any default
or Event of Default unless a Responsible Officer of the Senior Trustee has
actual knowledge thereof or unless written notice of any event which is in fact
such a default or Event of Default is received by the Senior Trustee at its
Corporate Trust Office and such notice references the Securities and this
Senior Indenture; and

 

(11)                            the
rights, privileges, protections, immunities and benefits given to the Senior
Trustee, including, without limitation, its right to be indemnified, are
extended to and shall be enforceable by, the Senior Trustee in each of its
capacities hereunder, and to each agent, custodian and other Person employed to
act hereunder.

 

(12)                            before
the Senior Trustee acts or refrains from acting, the Senior Trustee may request
that the Issuer deliver an Officers’ Certificate setting forth the names of
individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Senior Indenture, which Officers’ Certificate may be
signed by any Person authorized to sign an Officers’ Certificate, including any
Person specified as so authorized in any such certificate previously delivered
and not superseded.

 

SECTION 6.04.                                               Not Responsible for Recitals or Issuance of
Securities.

 

The recitals and statements contained herein (except the name, address
and jurisdiction of organization of the Senior Trustee) and in the Securities
(except the Senior Trustee’s certificates of authentication) shall be taken as
the recitals of and statements of the Issuer, and the Senior Trustee for any
series of Securities assumes no responsibility for their correctness. The
Senior Trustee for any series of Securities shall not be responsible for and
makes no representations as to the validity or sufficiency of this Senior
Indenture or of the Securities (except the Senior Trustee’s certificates of
authentication thereof) of any series. The Senior Trustee for any series of
Securities shall not be accountable for the use or application by the Issuer of
the Securities or the proceeds thereof. 
The Senior Trustee shall have no duty to ascertain or inquire as to the
performance of the Issuer’s covenants in Article Ten hereof or otherwise
established by the terms of any Security.

 

51

 

SECTION 6.05.                                               May Hold
Securities.

 

The Senior Trustee for any series of Securities, any Paying Agent,
Security Registrar or any other agent of the Issuer or such Senior Trustee, in
its individual or any other capacity, may become the owner or pledgee of
Securities and, subject to Sections 6.08 and 6.13, may otherwise deal with the
Issuer with the same rights it would have if it were not such Senior Trustee,
Paying Agent, Security Registrar or such other agent.

 

SECTION 6.06.                                               Money Held in Trust.

 

Money held by the Senior Trustee for any series of Securities (in any
of its capacities hereunder, including as Senior Trustee, Securities Registrar
or Paying Agent) in trust hereunder need not be segregated from other funds
except to the extent required by law. The Senior Trustee for any series of
Securities (in any of its capacities hereunder, including as Senior Trustee,
Securities Registrar or Paying Agent) shall be under no liability for interest
on any money received by it hereunder except as otherwise agreed in writing
with the Issuer.

 

SECTION 6.07.                                               Compensation and Reimbursement.

 

The Issuer agrees:

 

(1)                                  to
pay to the Senior Trustee for any series of Securities from time to time such
compensation for all services rendered by it hereunder as the Issuer and the
Senior Trustee shall mutually agree upon in writing (which compensation shall
not be limited by any provision of law in regard to the compensation of a
trustee of an express trust);

 

(2)                                  except
as otherwise expressly provided herein, to reimburse the Senior Trustee for any
series of Securities upon its request for all reasonable expenses,
disbursements and advances incurred or made by such Senior Trustee in
accordance with any provision of this Senior Indenture (including the
reasonable compensation and the expenses and disbursements of its agents and
counsel), except any such expense, disbursement or advance as may be
attributable to its negligence or willful misconduct; and

 

(3)                                  to
indemnify such Senior Trustee for, and to hold it harmless against, any loss,
liability or reasonable expense incurred without negligence or willful
misconduct on its part, arising out of or in connection with the acceptance or
administration of this trust, including the reasonable costs and expenses of
defending itself against any claim (whether assented to by the Issuer, any Holder or otherwise) or liability in connection with
the exercise or performance of any of its powers or duties hereunder.

 

As security for the performance of the obligations of the Issuer under
this Section the Senior Trustee for any series of Securities shall have a
lien prior to the Securities upon all property and funds held or collected by such
Senior Trustee as such, except funds held in trust for the payment of principal
of (or premium, if any, on) or interest, if any on particular Securities.

 

Without prejudice to any other rights available to the Senior Trustee
under applicable law, when the Senior Trustee incurs expenses (including the
reasonable fees and 

 

52

 

expense of its counsel) or renders services after an
Event of Default specified in Section 5.01(3), (4), (5) or (6) occurs,
the expenses and the compensation for the services are intended to constitute
expenses of administration under any Bankruptcy Law.

 

The rights of the Senior Trustee under this Section 6.07 shall
survive the resignation or removal of the Senior Trustee, the payment in full
of the Securities for which it is the Senior Trustee, the discharge of this
Senior Indenture, and the termination hereof.

 

SECTION 6.08.                                               Disqualification; Conflicting Interests.

 

The Senior Trustee for the Securities shall be subject to the provisions
of Section 310(b) of the Trust Indenture Act during the period of
time required thereby. Nothing herein shall prevent the Senior Trustee from
filing with the Commission the application referred to in the penultimate
paragraph of Section 310(b) of the Trust Indenture Act. In
determining whether the Senior Trustee has a conflicting interest as defined in
Section 310(b) of the Trust Indenture Act with respect to the
Securities of any series, there shall be excluded Securities of any particular
series of Securities other than that series. If the Senior Trustee has or shall
acquire a conflicting interest within the meaning of the Trust Indenture Act,
the Senior Trustee shall either eliminate such interest or resign, to the
extent and in the manner provided by, and subject to the provisions of, the
Trust Indenture Act and this Senior Indenture.

 

SECTION 6.09.                                               Corporate Senior Trustee Required; Different Senior
Trustees for Different Series; Eligibility.

 

There shall at all times be a Senior Trustee hereunder which shall be:

 

(1)                                  a
corporation organized and doing business under the laws of the United States of
America, any state thereof, or the District of Columbia, authorized under such
laws to exercise corporate trust power and subject to supervision or examination
by Federal or State authority; or

 

(2)                                  a
corporation or other Person organized and doing business under the laws of a
foreign government that is permitted to act as Senior Trustee pursuant to a
rule, regulation, or other order of the Commission, authorized under such laws
to exercise corporate trust powers,

 

and which shall have at all times a
combined capital and surplus of at least $50,000,000. If such corporation or
other Person publishes reports of condition at least annually, pursuant to law
or to requirements of the aforesaid supervising or examining authority, then
for the purposes of this Section, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. None of the Issuer, any
other obligor upon the Securities or any Person directly or indirectly
controlling, controlled by, or under common control with the Issuer or any
other obligor upon the Securities shall serve as Senior Trustee for any of the
Securities. A different Senior Trustee may be appointed by the Issuer for any
series of Securities prior to the issuance of such Securities. If the initial
Senior Trustee for any series of Securities is to be other than Wilmington
Trust Company, the Issuer and such Senior Trustee shall, prior to the issuance
of such Securities, execute and deliver an indenture supplemental hereto, which
shall provide for the appointment of such Senior Trustee as Senior Trustee for
the Securities of such series and shall add to or change any of the 

 

53

 

provisions
of this Senior Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Senior Trustee, it
being understood that nothing herein or in such supplemental indenture shall
constitute such Senior Trustees co-Senior Trustees of the same trust and that
each such Senior Trustee shall be Senior Trustee of a trust or trusts hereunder
separate and apart from any trust or trusts hereunder administered by any other
such Senior Trustee. If at any time the Senior Trustee for the Securities of
any series shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect
hereunder specified in this Article.

 

SECTION 6.10.                                               Resignation and Removal; Appointment of Successor.

 

(a)                                  No
resignation or removal of the Senior Trustee for the Securities of any series
and no appointment of a successor Senior Trustee pursuant to this Article shall
become effective until the acceptance of appointment by the successor Senior
Trustee in accordance with the applicable requirements of Section 6.11.

 

(b)                                 The
Senior Trustee for the Securities of any series may resign at any time with
respect to the Securities of such series by giving written notice thereof to
the Issuer.  If the instrument of
acceptance by a successor Senior Trustee required by Section 6.11 shall
not have been delivered to the Senior Trustee for the Securities of such series
within 30 days after the giving of such notice of resignation, the resigning
Senior Trustee may petition, at the expense of the Issuer, any court of
competent jurisdiction for the appointment of a successor Senior Trustee with
respect to the Securities of such series.

 

(c)                                  The
Senior Trustee for the Securities of any series may be removed at any time with
respect to the Securities of such series by Act of the Holders of a majority in
aggregate principal amount of the Outstanding Securities of such series,
delivered to such Senior Trustee and to the Issuer.  If the instrument of acceptance by a
successor Senior Trustee required by Section 6.11 shall not have been
delivered to the Senior Trustee for the Securities of such series within 30
days after the Act of Holders giving effect to such removal, the Senior Trustee
may petition, at the expense of the Issuer, any court of competent jurisdiction
for the appointment of a successor Senior Trustee with respect to the Securities
of such series.

 

(d)                                 If
at any time:

 

(1)                                  the
Senior Trustee for the Securities of any series shall fail to comply with Section 310(b) of
the Trust Indenture Act pursuant to Section 6.08 hereof after written
request therefor by the Issuer or by any Holder who has been a bona fide Holder of a Security of such series for at least
six months, unless the Senior Trustee’s duty to resign is stayed in accordance
with the provisions of Section 310(b) of the Trust Indenture Act; or

 

(2)                                  such
Senior Trustee shall cease to be eligible under Section 6.09 and shall
fail to resign after written request therefor by the Issuer or by any such
Holder; or

 

(3)                                  such
Senior Trustee shall become incapable of acting or shall be adjudged a bankrupt
or insolvent or a receiver of such Senior Trustee or of its property shall be
appointed or any public officer shall take charge or control of such Senior
Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation; or

 

54

 

(4)                                  if
an administrative or other receiver or an administrator or other similar
official is appointed in relation to such Senior Trustee, or in relation to the
whole or a material part of the assets of such Senior Trustee, or an encumbrancer
takes possession of the whole or a material part of the assets of such Senior
Trustee, or a distress or execution or other process is levied or enforced upon
or sued out against the whole or a material part of the assets of such Senior
Trustee, or if such Senior Trustee shall commence a voluntary case or
proceeding under any applicable Bankruptcy Law, or any other case or proceeding
to be adjudicated as bankrupt or insolvent, or such Senior Trustee shall
consent to the appointment of or taking possession by a receiver, custodian,
liquidator, assignee, trustee, sequestrator (or other similar official) of such
Senior Trustee or its property or affairs, or shall make an assignment for the
benefit of creditors, or shall admit in writing its inability to pay its debts
generally as they become due, or shall take corporate action in furtherance of
any such action;

 

then, in any such case, (i) the
Issuer by a Board Resolution may remove such Senior Trustee or (ii) subject
to Section 5.14, any Holder who has been a bona fide Holder of a Security
of such series for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the
removal of such Senior Trustee and the appointment of a successor Senior
Trustee.

 

(e)                                  If
the Senior Trustee for the Securities of any series shall resign, be removed or
become incapable of acting, or if a vacancy shall occur in the office of Senior
Trustee for the Securities of any series for any cause, the Issuer, by a Board
Resolution, shall promptly appoint a successor Senior Trustee with respect to
the Securities of such series and shall comply with the applicable requirements
of Section 6.11. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Senior Trustee
with respect to the Securities of such series shall be appointed by Act of the
Holders of a majority in aggregate principal amount of the Outstanding
Securities of such series delivered to the Issuer and the retiring Senior
Trustee, the successor Senior Trustee so appointed shall, forthwith upon its
acceptance of such appointment in accordance with the applicable requirements
of Section 6.11, become the successor Senior Trustee for the Securities of
such series and supersede the successor Senior Trustee appointed by the Issuer.
If no successor Senior Trustee for the Securities of such series shall have
been so appointed by the Issuer or the Holders and shall have accepted
appointment in the manner required by Section 6.11, and if such Senior
Trustee is still incapable of acting, any Holder who has been a bona fide Holder of a Security of such series for at least
six months may, on behalf of himself
and all others similarly situated, petition any court of competent jurisdiction
for the appointment of a successor Senior Trustee with respect to the
Securities of such series.

 

(f)                                    The
Issuer shall give notice of each resignation and each removal of the Senior
Trustee with respect to the Securities of any series and each appointment of a
successor Senior Trustee with respect to the Securities of any series in the
manner and to the extent provided in Section 1.06. Each notice shall
include the name of the successor Senior Trustee with respect to the Securities
of that series and the address of its Corporate Trust Office.

 

55

 

SECTION 6.11.                                               Acceptance of Appointment by Successor.

 

(a)                                  Every
successor Senior Trustee appointed hereunder with respect to the Securities of
any series shall execute, acknowledge and deliver to the Issuer and to the
retiring Senior Trustee an instrument accepting such appointment, and thereupon
the resignation or removal of the retiring Senior Trustee shall become
effective and such successor Senior Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Senior Trustee; but, on the request of the Issuer or the
successor Senior Trustee, such retiring Senior Trustee shall, upon payment of
its charges, execute and deliver an instrument transferring to such successor
Senior Trustee all the rights, powers and trusts of the retiring Senior Trustee
and shall duly assign, transfer and deliver to such successor Senior Trustee
all property and money held by such retiring Senior Trustee hereunder, subject
to the lien provided by Section 6.07.

 

(b)                                 In
case of the appointment hereunder of a successor Senior Trustee with respect to
the Securities of one or more (but not all) series, the Issuer, the retiring
Senior Trustee and each successor Senior Trustee with respect to the Securities
of one or more series shall execute and deliver an indenture supplemental
hereto wherein each successor Senior Trustee shall accept such appointment and
which (i) shall contain such provisions as shall be necessary or desirable
to transfer to, and to vest in, each successor Senior Trustee all the rights,
powers, trusts and duties of the retiring Senior Trustee with respect to the
Securities of that or those series to which the appointment of such successor
Senior Trustee relates, (ii) if the retiring Senior Trustee is not
retiring with respect to all Securities, shall contain such provisions as shall
be deemed necessary or desirable to confirm that all the rights, powers, trusts
and duties of the retiring Senior Trustee with respect to the Securities of
that or those series as to which the retiring Senior Trustee is not retiring
shall continue to be vested in the retiring Senior Trustee and (iii) shall
add to or change any of the provisions of this Senior Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Senior Trustee, it being understood that nothing
herein or in such supplemental indenture shall constitute such Senior Trustees
co-Senior Trustees of the same trust and each such Senior Trustee shall be
Senior Trustee of a trust or trusts hereunder separate and apart from any trust
or trusts hereunder administered by any other such Senior Trustee; and upon the
execution and delivery of such supplemental indenture the resignation or
removal of the retiring Senior Trustee shall become effective to the extent
provided therein and each such successor Senior Trustee, without any further act,
deed or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Senior Trustee with respect to the Securities of that or
those series to which the appointment of such successor Senior Trustee relates,
subject to the lien provided by Section 6.07; but, on request of the
Issuer or any successor Senior Trustee, such retiring Senior Trustee shall duly
assign, transfer and deliver to such
successor Senior Trustee all property and money held by such retiring Senior
Trustee hereunder with respect to the Securities of that or those series to
which the appointment of such successor Senior Trustee relates, subject to the
lien provided by Section 6.07.

 

(c)                                  Upon
request of any such successor Senior Trustee, the Issuer shall execute any and
all instruments for more fully and certainly vesting in and confirming to such
successor Senior Trustee all such rights, powers and trusts referred to in
Subsections (a) or (b) of this Section, as the case may be.

 

56

 

(d)                                 No
successor Senior Trustee shall accept its appointment unless at the time of
such acceptance such successor Senior Trustee for the Securities of any series
shall be qualified and eligible under this Article.

 

SECTION 6.12.                                               Merger, Conversion, Consolidation or Succession to
Business.

 

Any corporation into which the Senior Trustee for the Securities of any
series may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which
such Senior Trustee shall be a party, or any corporation succeeding to all or
substantially all of the corporate trust business of such Senior Trustee, shall
be the successor of such Senior Trustee hereunder, provided such corporation
shall be otherwise qualified and eligible under this Article, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto. In case any Securities shall have been authenticated, but not
delivered, by the Senior Trustee or the Authenticating Agent for such series
then in office, any successor by merger, conversion or consolidation to such
authenticating Senior Trustee, or any successor Authenticating Agent, as the
case may be, may adopt such authentication and deliver the Securities so
authenticated with the same effect as if such successor Senior Trustee or
successor Authenticating Agent had itself authenticated such Securities.

 

SECTION 6.13.                                               Preferential Collection of Claims Against the Issuer.

 

If and when the Senior Trustee for Securities of any series shall be or
become a creditor of the Issuer (or any other obligor upon the Securities of
such series), the Senior Trustee shall be subject to the provisions of the
Trust Indenture Act regarding the collection of claims against the Issuer (or
any such other obligor).

 

ARTICLE
SEVEN

HOLDERS’ LISTS AND REPORTS BY SENIOR TRUSTEE AND ISSUER

 

SECTION 7.01.                                               Issuer to Furnish Senior Trustee Names and Addresses
of Holders.

 

With respect to each particular series of Securities, the Issuer will
furnish or cause to be furnished to the Senior Trustee for the Securities of
such series:

 

(1)                                  at
least semi-annually and, if applicable, not more than 15 days after each
Regular Record Date relating to that series (or, if there is no Regular Record
Date relating to that series, on June 30 and December 31), a list, in
such form as such Senior Trustee may reasonably
require, containing all the information in the possession or control of the
Issuer or any of its Paying Agents as to the names and addresses of the Holders
of that series as of such dates, excluding from any such list all the
information already in the possession or control of the Senior Trustee which
was received by such Senior Trustee acting in any capacity with respect to such
series of Securities; and

 

(2)                                  at
such other times as such Senior Trustee or Principal Paying Agent may request
in writing, within 30 days after the receipt by the Issuer of any such request,
a list of similar form and content as of a date not more than 15 days prior to
the time such list is 

 

57

 

furnished, excluding from any such list all the
information already in the possession or control of the Senior Trustee which
was received by such Senior Trustee acting in any capacity with respect to such
series of Securities.

 

SECTION 7.02.                                               Preservation of Information; Communications to
Holders.

 

(a)                                  The
Senior Trustee for each series of Securities shall preserve, in as current a
form as is reasonably practicable, the names and addresses of Holders of the
Securities of such series contained in the most recent lists furnished to such
Senior Trustee as provided in Section 7.01 and the names and addresses of
Holders of the Securities of such series received by such Senior Trustee in its
capacity as Security Registrar for such series, if so acting. The Senior
Trustee for each series of Securities may destroy any list relating to such
series of Securities furnished to it as provided in Section 7.01 upon
receipt of a new list relating to such series so furnished.

 

(b)                                 If
three or more Holders of Securities of any particular series (hereinafter
referred to as “applicants”) apply in writing to the Senior Trustee for the
Securities of any such series, and furnish to such Senior Trustee reasonable
proof that each such applicant has owned a Security of that series for a period
of at least six months preceding the date of such application, and such
application states that the applicants desire to communicate with other Holders
of Securities of that series with respect to their rights under this Senior
Indenture or under the Securities of that series and is accompanied by a copy
of the form of proxy or other communication which such applicants propose to
transmit, then such Senior Trustee shall, within five Business Days after the
receipt of such application, at its election, either:

 

(1)                                  afford
such applicants access to the information preserved at the time by such Senior
Trustee in accordance with Section 7.02(a); or

 

(2)                                  inform
such applicants as to the approximate number of Holders of Securities of that
series whose names and addresses appear in the information preserved at the
time by such Senior Trustee in accordance with Section 7.02(a), and as to
the approximate cost of mailing to such Holders the form of proxy or other
communication, if any, specified in such application.

 

If any such Senior Trustee shall elect not to afford such applicants
access to that information, such Senior Trustee shall, upon the written request
of such applicants, mail to each Holder of Securities of that series whose name
and address appears in the information preserved at the time by such Senior
Trustee in accordance with Section 7.02(a), a copy of the form of proxy or
other communication which is specified in such request, with reasonable
promptness after a tender to such Senior Trustee of the material to be mailed
and of payment, or provision for the payment, of the reasonable expenses of
mailing, unless within five days after such tender, such Senior Trustee shall
mail to such applicants and file with the Commission, together with a copy of
the material to be mailed, a written statement to the effect that, in the
opinion of such Senior Trustee, such mailing would be contrary to the best interests
of the Holders of Securities of that series or would be in violation of
applicable law.  Such written statement
shall specify the basis of such opinion. If the Commission, after opportunity
for a hearing upon the objections specified in the written statement so filed
shall enter an order refusing to sustain any of such 

 

58

 

objections or if, after the entry of an order
sustaining one or more of such objections, the Commission shall find, after
notice and opportunity for hearing, that all the objections so sustained have
been met and shall enter an order so declaring, such Senior Trustee shall mail
copies of such material to all such Holders with reasonable promptness after
the entry of such order and the renewal of such tender; otherwise such Senior
Trustee shall be relieved of any obligation or duty to such applicants
respecting their application.

 

(c)                                  Every
Holder of Securities of each series, by receiving and holding the same, agrees
with the Issuer and the Senior Trustee for the Securities of such series that
none of the Issuer, such Senior Trustee or any of their agents shall be held
accountable by reason of the disclosure of any such information as to the names
and addresses of the Holders of the Securities of such series in accordance
with Section 7.02(b), regardless of the source from which such information
was derived, and that the Senior Trustee shall not be held accountable by
reason of mailing any material pursuant to a request made under Section 7.02(b).

 

SECTION 7.03.                                               Reports by Senior Trustee.

 

(a)                                  Within
60 days after May 15 of each year commencing with the year following the
first issuance of Securities, the Senior Trustee for the Securities of each
series shall transmit by mail to all Holders of the Securities of such series,
in the manner and to the extent provided in Section 313 of the Trust
Indenture Act, a brief report dated as of each such May 15 if required by
the Trust Indenture Act.

 

(b)                                 A
copy of each such report shall, at the time of such transmission to Holders of
Securities of any series, be filed by the Senior Trustee for the Securities of
such series with each Stock Exchange, with the Commission and with the Issuer.
The Issuer will notify such Senior Trustee when such series of Securities is
listed on any Stock Exchange.

 

SECTION 7.04.                                               Reports by Issuer.

 

The Issuer will:

 

(1)                                  file
with the Senior Trustee for the Securities of such series, within 15 days after
the Issuer is required to file the same with the Commission, copies of the
annual reports and of the information, documents and other reports (or copies
of such portions of any of the foregoing as the Commission may from time to
time by rules and regulations prescribe) which the Issuer may be required
to file with the Commission pursuant to Section 13 or Section 15(d) of
the Exchange Act; or, if the Issuer is not required to file information,
documents or reports pursuant to either of said Sections, then it will file
with such Senior Trustee and the Commission, in accordance with rules and
regulations prescribed from time to
time by the Commission, such of the supplementary and periodic information,
documents and reports which may be required pursuant to Section 13 of the
Exchange Act in respect of a security listed and registered on a national
securities exchange as may be prescribed from time to time in such rules and
regulations;

 

(2)                                  file
with the Senior Trustee for the Securities of such series and the Commission,
in accordance with rules and regulations prescribed from time to time by
the Commission, such additional information, documents, and reports with
respect to compliance by 

 

59

 

the Issuer, with the conditions and covenants of this
Senior Indenture as may be required from time to time by such rules and
regulations; and

 

(3)                                  transmit
by mail to all Holders of Securities of each series, as provided in Section 313(c) of
the Trust Indenture Act, within 30 days after the filing thereof with the
Senior Trustee for the Securities of such, series, such summaries of any
information, documents and reports required to be filed by the Issuer pursuant
to paragraphs (1) and (2) of this Section as may be required by rules and
regulations prescribed from time to time by the Commission; provided that the
delivery of such reports, information and documents to the Senior Trustee is
for informational purposes only and the Senior Trustee’s receipt of such shall
not constitute notice, constructive or otherwise, of any information contained
therein or determinable therefrom, including the Issuer’s compliance with any
of its covenants hereunder or under any Securities (as to which the Senior
Trustee is entitled to rely exclusively on Officers’ Certificates).

 

ARTICLE
EIGHT

CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER

 

SECTION 8.01.                                               Issuer May Consolidate, Etc., Only on Certain
Terms.

 

So long as any Security remains Outstanding, the Issuer shall not
consolidate or amalgamate with or merge into any other corporation or convey,
transfer or lease its properties and assets substantially as an entirety to any
Person unless:

 

(1)                                  the
corporation formed by such consolidation or amalgamation or into which the
Issuer is merged, or the Person which acquires, leases or is the transferee of
or recipient of the conveyance or transfer, of substantially all of the
properties and assets of the Issuer as an entirety shall

 

(A)                              be
a corporation or other Person organized and validly existing under the laws of
any country that is a member of the Organisation for Economic Co-operation and
Development (as the same may be constituted from time to time); and

 

(B)                                expressly
assume, by an indenture supplemental hereto, executed and delivered to the
Senior Trustee for each series of Securities, in form reasonably satisfactory
to each such Senior Trustee, with any amendments or revisions necessary to take
account of the jurisdiction in which any such corporation or Person is
organized (if other than England and Wales),

 

(i)                                     the
due and punctual payment of the principal of (and premium, if any, on) and
interest, if any, on, and any sinking fund payment in respect of, all of the
Securities,

 

(ii)                                  the
performance of every covenant of this Senior Indenture and of all the
Securities on the part of the Issuer to be performed,

 

(iii)                               such
assumption shall provide that such corporation or Person shall pay to the
Holder of any Securities such additional amounts as may be necessary 

 

60

 

in order that
every net payment of the principal of (and premium, if any, on) and interest,
if any, on such Securities will not be less than the amounts provided for in
the Securities to be then due and payable, and

 

(iv)                              with
respect to (iii) above such obligation shall extend to any deduction or
withholding for or on account of any present or future tax, assessment or
governmental charge imposed upon such payment by the United Kingdom or the
country in which any such corporation or Person is organized or any district,
municipality or other political subdivision or taxing authority thereof
(subject to the limitations set forth in Section 10.08 in respect of the
payment of additional amounts as applied to such country);

 

(2)                                  immediately
after giving effect to such transaction, no Event of Default with respect to
any series of Securities, and no event which, after notice or lapse of time or
both, would become an Event of Default with respect to any series of
Securities, shall have occurred and be continuing; and

 

(3)                                  the
Issuer has delivered to the Senior Trustee for each series of Securities an
Officers’ Certificate and an Opinion of Counsel each stating that such
consolidation, amalgamation, merger, conveyance, transfer or lease and such
supplemental indenture evidencing the assumption by such corporation or Person
comply with this Senior Indenture and that all conditions precedent provided
for in this Senior Indenture relating to such transaction have been complied
with.

 

SECTION 8.02.                                               Successor Corporation Substituted.

 

Upon any consolidation, amalgamation or merger, or any conveyance,
transfer or lease of the properties and assets of the Issuer substantially as
an entirety in accordance with Section 8.01, the successor corporation
formed by such consolidation or amalgamation or into which the Issuer is merged
or the Person to which such conveyance or transfer or with which such lease is
made shall succeed to, and be substituted for, and may exercise every right and
power of the Issuer under this Senior Indenture with the same effect as if such
successor corporation or Person had been named as the Issuer herein, and
thereafter, except in the case of a lease, the predecessor corporation shall be
relieved of all obligations and covenants under this Senior Indenture or the
Securities, as the case may be.

 

ARTICLE
NINE

SUPPLEMENTAL INDENTURES

 

SECTION 9.01.                                               Supplemental Senior Indentures Without Consent of
Holders.

 

Without the consent of any Holders of Securities, the Issuer, when
authorized by a Board Resolution and the Senior Trustee or Senior Trustees for
the Securities of any or all series, at any time and from time to time, may
enter into one or more indentures supplemental hereto, in form satisfactory to
the relevant Senior Trustee or Senior Trustees, for any of the following
purposes:

 

61

 

(1)                                  to
evidence the succession of another corporation to the Issuer and the assumption
by any such successor of the covenants of the Issuer herein and contained in
the Securities; or

 

(2)                                  to
add to the covenants of the Issuer, for the benefit of the Holders of all or
any particular series of Securities (and, if such covenants are to be for the
benefit of fewer than all series of Securities, stating that such covenants are
being included solely for the benefit of such series), to convey, transfer,
assign, mortgage or pledge any property to or with the Senior Trustee for the
Securities of any such series or otherwise secure any such series of the
Securities or to surrender any right or power herein conferred upon the Issuer;
or

 

(3)                                  to
add any additional Events of Default with respect to any or all series of
Securities (and, if any such Event of Default applies to fewer than all series
of Securities, stating each series to which such Event of Default applies);
provided that any such additional Event of Default would not cause any such
series of Securities to be in default immediately upon any such addition; or

 

(4)                                  to
change or eliminate any restrictions on the payment of principal of or any
premium or interest on Securities or to provide (subject to applicable laws)
for the issuance of uncertificated Securities of any series in addition to or
in place of any certificated Securities and to make all appropriate changes for
such purposes; provided, however, that any such
action shall not adversely affect the interests of the Holders of Securities of
any series in any material respect; or

 

(5)                                  to
change or eliminate any of the provisions of this Senior Indenture; provided, however, that any such change or elimination shall
become effective only when there is no Security Outstanding of any series
created prior to the execution of such supplemental indenture which is entitled
to the benefit of such provision; or

 

(6)                                  to
evidence and provide for the acceptance of appointment hereunder of a Senior
Trustee, other than Wilmington Trust Company, for a series of Securities and to
add to or change any of the provisions of this Senior Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Senior Trustee, pursuant to the requirements of Section 6.09;
or

 

(7)                                  to
evidence and provide for the acceptance of appointment hereunder by a successor
Senior Trustee with respect to the Securities of one or more series and to add
to or change any of the provisions of
this Senior Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Senior Trustee,
pursuant to the requirements of Section 6.11(b); or

 

(8)                                  to
add to the conditions, limitations and restrictions on the authorized amount,
form, terms or purposes of issue, authentication and delivery of Securities, as
herein set forth, with such other conditions, limitations and restrictions
thereafter to be observed; or

 

(9)                                  to
supplement any of the provisions of this Senior Indenture to such extent as
shall be necessary to permit or facilitate the defeasance and discharge of any
series of Securities pursuant to Section 4.01; provided,
however, that any such action shall not adversely 

 

62

 

affect the interests of the Holders of Securities of
such series or any other series of Securities in any material respect; or

 

(10)                            to
add to or change or eliminate any provisions of this Senior Indenture as shall
be necessary or desirable in accordance with any amendments to the Trust
Indenture Act or any rules and regulations of the Commission; or

 

(11)                            to
cure any ambiguity or defect, to correct or amend or supplement any provision
herein which may be inconsistent with any other provision herein, or to make
any other provisions with respect to matters or questions arising under this
Senior Indenture; provided, that any such action shall not adversely affect the
interests of the Holders of Securities of any particular series in any material
respect; or

 

(12)                            to
establish the terms of a series of Securities to be issued hereunder pursuant
to, and in accordance with, Section 3.01.

 

SECTION 9.02.                                               Supplemental Senior Indentures With Consent of
Holders.

 

The Issuer, when authorized by a Board Resolution, and the Senior
Trustee or Senior Trustees for the Securities of any or all series may enter
into an indenture or indentures supplemental hereto for the purpose of adding
any provisions to or changing in any manner or eliminating any of the
provisions of the Senior Indenture or of modifying in any manner the rights of
the Holders of such Securities under this Senior Indenture, but only with the
consent of the Holders of more than 50% in aggregate principal amount of the
Outstanding Securities of each series of Securities then Outstanding affected
thereby, in each case by Act of said Holders of Securities of each such series
delivered to the Issuer and the Senior Trustee for Securities of each such
series; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each
Outstanding Security affected thereby:

 

(1)                                  change
the Stated Maturity of the principal of, or any installment of principal of or
interest on, any Security, or reduce the principal amount thereof or the rate
of interest thereon, if any, or any premium or principal payable upon the
redemption thereof, or change any obligation of the Issuer to pay additional
amounts pursuant to Sections 5.16 and 10.08 (except as contemplated by Section 8.01(1) and
permitted by Section 9.01(1)) or reduce the amount of the principal of a
Discounted Security that would be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 5.02, or change
any Place of Payment where, or change the currency or currency unit in which,
any Security or the interest thereon is payable, or impair the right to
institute suit for the enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of
redemption, on or after the Redemption Date); or

 

(2)                                  reduce
the percentage in aggregate principal amount of the Outstanding Securities of
any particular series, the consent of whose Holders is required for any such
supplemental indenture, or the consent of whose Holders is required for any
waiver of compliance with certain provisions of this Senior Indenture or
certain defaults hereunder and their consequences that is provided for in this
Senior Indenture; or

 

63

 

(3)                                  change
any obligation of the Issuer to maintain an office or agency in the places and
for the purposes specified in Section 10.02; or

 

(4)                                  modify
any of the provisions of this Section or Sections 5.13 or 10.07, except to
increase any specified percentage in aggregate principal amount required for
any actions by Holders or to provide that certain other provisions of this
Senior Indenture cannot be modified or waived without the consent of the Holder
of each Security affected thereby.

 

A supplemental indenture which changes or eliminates any covenant or
other provision of this Senior Indenture which has expressly been included
solely for the benefit of one or more particular series of Securities or which
modifies the rights of the Holders of Securities of such series with respect to
such covenant or other provision, shall be deemed not to affect the rights
under this Senior Indenture of the Holders of Securities of any other series.

 

It shall not be necessary for any Act of Holders under this Section to
approve the particular form of any proposed supplemental indenture, but it
shall be sufficient if such Act shall approve the substance thereof.

 

SECTION 9.03.                                               Execution of Supplemental Senior Indentures.

 

In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications
thereby of the trusts created by this Senior Indenture, the Senior Trustee for
any series of Securities shall be entitled to receive, and (subject to Sections
6.01 and 6.03) shall be fully protected in relying upon, (i) an Officers’
Certificate and an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Senior Indenture, (ii) a
copy of the Board Resolution, certified by the Secretary or a Deputy or
Assistant Secretary of the Issuer, authorizing the execution of such
supplemental indenture and (iii) if such supplemental indenture is
executed pursuant to Section 9.02, evidence reasonably satisfactory to the
Senior Trustee of the consent of Holders required to consent thereto. The
Senior Trustee for any series of Securities may, but shall not (except to the
extent required in the case of a supplemental indenture entered into under Section 9.01(6) or
(7); provided that the Senior Trustee’s rights, liabilities, duties or
immunities are not materially and adversely affected) be obligated to, enter
into any such supplemental indenture which affects such Senior Trustee’s own
rights, liabilities, duties or immunities under this Senior Indenture or
otherwise.

 

SECTION 9.04.                                               Effect of Supplemental Senior Indentures.

 

Upon the execution of any supplemental indenture under this Article,
this Senior Indenture shall be modified in accordance therewith and such
supplemental indenture shall form a part of this Senior Indenture for all
purposes; and every Holder of Securities theretofore or thereafter
authenticated and delivered hereunder shall be bound thereby.

 

SECTION 9.05.                                               Conformity With Trust Indenture Act.

 

Every supplemental indenture executed pursuant to this Article shall
conform to the requirements of the Trust Indenture Act as then in effect.

 

64

 

SECTION 9.06.                Reference in Securities to Supplemental Senior
Indentures.

 

Securities of any particular series authenticated and delivered after
the execution of any supplemental indenture pursuant to this Article may,
and shall if required by the Senior Trustee for the Securities of such series,
bear a notation in form approved by such Senior Trustee as to any matter
provided for in such supplemental indenture. If the Issuer shall so determine,
new Securities of any series so modified as to conform, in the opinion of the
Senior Trustee for the Securities of such series and the Boards of Directors of
the Issuer, to any such supplemental indenture may be prepared and executed by
the Issuer and such Securities may be authenticated and delivered by such Senior
Trustee for the Securities of such series in exchange for Outstanding
Securities of such series.

 

ARTICLE
TEN

 

COVENANTS

 

SECTION 10.01.             Payment of Principal (and Premium, if any) and
Interest, if any.

 

The Issuer agrees, for the benefit of each particular series of
Securities, that it will duly and punctually pay in the currency or currency
unit in which the Securities of such series are payable (except as otherwise
specified pursuant to Section 3.01 for the Securities of such series and
except as provided in Sections 3.11(b), 3.11(d) and 3.11(e)) the principal
of, and premium, if any, on and interest, if any, on that series of Securities
in accordance with the terms of the Securities of such series and this Senior
Indenture.

 

SECTION 10.02.             Maintenance of Office or Agency.

 

The Issuer will maintain in the Borough of Manhattan, The City of New
York, and in each Place of Payment for the Securities of a series an office or
agency where Securities of that series may be presented or surrendered for
payment, and an office or agency where Securities of that series may be
surrendered for registration of transfer or exchange and where notices and
demands to or upon the Issuer with respect to the Securities of that series and
this Senior Indenture may be served. The Issuer will give prompt written notice
to the Senior Trustee for the Securities of that series of the location, and
any change in the location, of any such office or agency. If at any time the
Issuer shall fail to maintain any such required office or agency in respect of
any series of Securities or shall fail to furnish the Senior Trustee for the
Securities of that series with the address thereof, such presentations (to the
extent permitted by law) and surrenders of Securities of that series may be
made and notices and demands may be made or served at the Corporate Trust
Office of such Senior Trustee, and the Issuer hereby appoints the Senior
Trustee as its agent to receive such respective presentations, surrenders,
notices and demands.

 

The Issuer may also from time to time designate one or more other
offices or agencies (in or outside a Place of Payment) where the Securities of
one or more series may be presented or surrendered for any or all of the
purposes specified above in this Section and may from time to time rescind
such designations; provided, however,
that no such designation or rescission shall in any manner relieve the Issuer
of its obligation to maintain an office or agency 

 

65

 

in each Place of Payment for such purpose. The Issuer
will give prompt written notice to the Senior Trustee for the Securities of
each series so affected of any such designation or rescission and of any change
in the location of any such office or agency.

 

Unless otherwise specified pursuant to Section 3.01, if and so
long as the Securities of any series (i) are denominated in a currency
other than Dollars or (ii) may be payable in a currency other than
Dollars, or so long as it is required under any other provision of the Senior
Indenture, then the Issuer will maintain with respect to each such series of
Securities, or as so required, a Currency Determination Agent.

 

SECTION 10.03.             Money for Securities Payments to Be Held in Trust.

 

If the Issuer shall at any time act as its own Paying Agent with
respect to any particular series of Securities, it will, on or before each due
date of the principal of (or premium, if any, on) or interest, if any, on any
of the Securities of that series, segregate and hold in trust for the benefit
of the Persons entitled thereto a sum in the currency or currency unit in which
the Securities of such series are payable (except as otherwise specified
pursuant to Section 3.01 for the Securities of such series and except as
provided in Sections 3.11(b), 3.11(d) and 3.11(e)) sufficient to pay the
principal and premium, if any, and interest, if any, so becoming due until such
sums shall be paid to such Persons or otherwise disposed of as herein provided,
and will promptly notify the Senior Trustee for the Securities of such series
of its action or failure so to act.

 

Whenever the Issuer shall have one or more Paying Agents for any
particular series of Securities, the Issuer will, prior to 10:00 a.m. in
the applicable Place of Payment on each due date of the principal of (or
premium, if any, on) or interest, if any, on any such Securities, deposit with
a Paying Agent for the Securities of such series a sum (in the currency or
currency unit described in the preceding paragraph) sufficient to pay the principal
(and premium, if any) and interest, if any, so becoming due, such sum to be
held in trust for the benefit of the Persons entitled thereto, and (unless such
Paying Agent is the Senior Trustee for the Securities of such series) the
Issuer will promptly notify such Senior Trustee of its action or failure so to
act.

 

The Issuer will cause each Paying Agent (other than the Senior Trustee)
for any particular series of Securities to execute and deliver to such Senior
Trustee an instrument in which such Paying Agent shall agree with such Senior
Trustee, subject to the provisions of this Section, that such Paying Agent
will:

 

(1)           hold
all sums held by it for the payment of the principal of (or premium, if any,
on) or interest, if any, on Securities of that series in trust for the benefit
of the Persons entitled thereto until such sums shall be paid to such Persons
or otherwise disposed of as herein provided;

 

(2)           give such Senior Trustee
notice of any default by the Issuer (or any other obligor upon the Securities)
in the making of any payment of principal of (and premium, if any, on) and
interest, if any, on Securities of that series; and

 

66

 

(3)           at
any time during the continuation of any such default, upon the written request
of such Senior Trustee, forthwith pay to such Senior Trustee all sums so held
in trust by such Paying Agent.

 

The Issuer may at any time, for the purpose of obtaining the
satisfaction and discharge of this Senior Indenture or for any other purpose,
pay, or by an Issuer Order direct any Paying Agent to pay, to the Senior
Trustee for the Securities of any series all sums held in trust by the Issuer
or such Paying Agent, such sums to be held by such Senior Trustee upon the same
trusts as those upon which sums were held by the Issuer or such Paying Agent;
and, upon such payment by any Paying Agent to such Senior Trustee, such Paying
Agent shall be released from all further liability with respect to such money.

 

Any money deposited with the Senior Trustee or any Paying Agent for the
Securities of any series or then held by the Issuer in trust for the payment of
the principal of (and premium, if any, on) and interest, if any, on any
Securities of any particular series and remaining unclaimed for two years after
such principal (and premium, if any) and interest, if any, has become due and
payable shall, unless otherwise required by mandatory provisions of applicable
escheat, or abandoned or unclaimed property law, be paid to the Issuer, on an
Issuer Request, or (if then held by the Issuer) shall be discharged from such
trusts; and the Holder of such Security shall, thereafter, as an unsecured
general creditor, look only to the Issuer for payment thereof, and all
liability of such Senior Trustee or such Paying Agent with respect to such
trust money, and all liability of the Issuer as trustee thereof, shall
thereupon cease; provided, however, that such
Senior Trustee or such Paying Agent, before being required to make any such
repayment shall give notice to the Holder of such Security in the manner set
forth in Section 1.06 that such money remains unclaimed and that, after a
date specified therein, which shall not be less than 30 days from the date of
such notice, any unclaimed balance of such money then remaining will, unless
otherwise required by mandatory provisions of applicable escheat, or abandoned
or unclaimed property law be repaid to the Issuer; provided,
further, that the Senior Trustee or such Paying Agent shall give
written notice of any such unclaimed amounts to the Issuer within 30 days after
the end of such two-year period.

 

SECTION 10.04.             Statements as to Compliance.

 

The Issuer will deliver to the Senior Trustee for each series of
Securities, within four months after the end of each fiscal year ending after
the date hereof, an Officers’ Certificate (one of the signers of which shall be
the chief executive officer, treasurer or finance director of the Issuer)
stating whether or not, to the knowledge of such officers, after due
investigation, the Issuer has complied with all conditions and covenants and
fulfilled all of its obligations under this Senior Indenture during such year
and, if such officers have obtained knowledge of any default or Event of
Default, specifying all such defaults or Events of Default and the nature and
status thereof of which such officers may have knowledge and whether any such
default or Event of Default is continuing or not.

 

For purposes of this Section, such compliance or fulfillment shall be
determined without regard to any period of grace or requirement of notice
provided under this Senior Indenture.

 

67

 

The Issuer shall deliver to the Senior Trustee, as soon as possible and
in any event within five days after the Issuer becomes aware of the occurrence
of any Event of Default or an event which, with notice or the lapse of time or
both, would constitute an Event of Default, an Officers’ Certificate setting
forth the nature and status of such Event of Default.

 

SECTION 10.05.             Corporate Existence.

 

Subject to Article Eight, the Issuer will do or cause to be done
all things necessary to preserve and keep in full force and effect its
corporate existence.

 

SECTION 10.06.             Negative Pledge.

 

So long as any Security remains Outstanding, the Issuer will not, and
will ensure (so far as the Issuer is able to do so by the proper exercise of
its voting and other rights or powers of control exercisable in relation to
such company) that the Principal Subsidiary will not, create or permit to exist
any mortgage or charge upon the whole or any part of the Issuer’s or the
Principal Subsidiary’s undertaking or assets (other than assets representing
the fund or funds maintained by the Issuer, or as the case may be, the
Principal Subsidiary, in respect of the long-term business (as defined in the
Financial Services and Markets Act 2000 of the United Kingdom), present or
future, to secure payment of any present or future Relevant Indebtedness of the
Issuer or the Principal Subsidiary or the present or future Relevant
Indebtedness of any Subsidiaries, or to secure any guarantee or indemnity in
respect thereof, without at the same time securing the Outstanding Securities
of each series, and all amounts payable under this Senior Indenture in respect
thereof, equally and ratably with the same security as is created or subsisting
to secure any such Relevant Indebtedness, guarantee or indemnity, or with such
other security as shall be approved by the holders of at least 75% in principal
amount of the Outstanding Securities of each series.

 

SECTION 10.07.             Waiver of Certain Covenants.

 

The Issuer may omit in any particular instance to comply with any
covenant or condition set forth in Sections 10.02, 10.05 and 10.06 and any
other covenant not set forth herein and specified pursuant to Section 3.01
to be applicable to the Securities of any series, if before or after the time
for such compliance the Holders of not less than a majority (or 75% in the case
of the covenant to provide security approved by 75% of the Holders pursuant to Section 10.06)
in aggregate principal amount of the Outstanding Securities of each series of
Securities affected by the omission (which, in the case of a covenant not set
forth herein and specified pursuant to Section 3.01 to be applicable to
the Securities of any series, shall include only those series to which such
covenant is so specified to be applicable) shall, in each case by Act of such
Holders, either waive such compliance in such instance or generally waive
compliance with such covenant or condition, but no such waiver shall extend to
or affect such covenant or condition except to the extent so expressly waived,
and, until such waiver shall become effective, the obligations of the Issuer
and the duties of the Senior Trustee and the Principal Paying Agent for the
Securities of each series with respect to any such covenant or condition shall
remain in full force and effect.

 

68

 

SECTION 10.08.             Payment of Additional Amounts.

 

Unless otherwise provided in the Board Resolution or supplemental
indenture pursuant to Section 3.01 establishing the terms of a particular
series of Securities, the Issuer will pay to the Holder of any Security such
additional amounts as may be necessary in order that every net payment of the
principal of (and premium, if any, on) and interest, if any, on any such
Security after deduction or other withholding or deduction for or on account of
any present or future tax, assessment, duty or other governmental charge of any
nature whatsoever imposed, levied or collected by or on behalf of the United
Kingdom, or any political subdivision or taxing authority thereof or therein
having power to tax, will not be less than the amount provided for in any such
Security to be then due and payable; provided, however,
that the foregoing obligation to pay additional amounts will not apply on
account of any tax, assessment, duty or other governmental charge which is
payable:

 

(1)           otherwise
than by deduction or withholding from payments of principal of (or premium, if
any, on) or interest, if any, on any such Security; or

 

(2)           by
reason of such Holder having, or having had, some personal or business
connection with the United Kingdom and not merely by reason of the fact that
payments are, or for the purposes of taxation are deemed to be, from sources
in, or secured in, the United Kingdom; or

 

(3)           except
in the case of the winding up of the Issuer in England, where the relevant
Security is presented for payment (where presentation is required) in the
United Kingdom; or

 

(4)           where
the relevant Security is presented for payment more than 30 days after the
Relevant Date (as defined below) except to the extent that the relevant Holder
would have been entitled to such additional amounts on presenting the Security
for payment on such thirtieth day; or

 

(5)           with
respect to a payment to an individual, where the deduction or withholding is
required to be made pursuant to any law implementing or complying with
Directive 2003/48/EC of the European Union or to any other European Union
Directive on the taxation of savings implementing the conclusions of the
meeting of the European Council of Economics and Finance Ministers of November 26-27,
2000 (or any supplemental ECOFIN meeting relating to such directive), or any
agreement between the European Union and any other jurisdiction providing
equivalent measures; or

 

(6)           on
a Security presented for payment by a Holder who would have been able to avoid
such deduction or withholding by presenting the relevant Security to another
paying agent in a Member State of the European Union or elsewhere; or

 

(7)           by
reason by any estate, excise, inheritance, gift, sales, transfer, wealth or
personal property tax or any similar assessment or governmental charge; or

 

(8)           as
a result of the failure of a Holder to satisfy any statutory requirements or
make a declaration of non-residence or other claim for exemption; or

 

69

 

(9)           by
reason of a change in law or official practice of any relevant taxing authority
that becomes effective more than 30 days after the Relevant Date (as defined below) for payment of principal (or premium,
if any), or interest, if any, in respect of such Security; or

 

(10)         owing
to any combination of clauses (1) through (9) above (provided that
such provision is applicable to the relevant series of Securities in accordance
with this Senior Indenture).

 

No additional amounts will be paid as provided above with respect to
any payment of principal of (or premium, if any, on) or interest, if any, on
any such Security to any Holder who is a fiduciary or partnership or other than
the sole beneficial owner of any such payment to the extent that a beneficiary
or settlor with respect to such fiduciary, a member of such a partnership or
the beneficial owner of such payment would not have been entitled to the
additional amounts had such beneficiary, settlor, member or beneficial owner
been the Holder of any such Security.

 

For the purposes hereof the “Relevant Date” means the date on which the
payment of principal of (or premium, if any, on) or interest, if any, on any
Security first becomes due and payable but, if the full amount of the monies
payable on such date has not been received by the relevant Paying Agent or as it
shall have directed on or prior to such date, the “Relevant Date” means the
date on which such monies shall have been so received.

 

Whenever in this Senior Indenture there is mentioned, in any context,
the payment of the principal of (or premium, if any, on) or interest, if any,
on any Security, such mention shall be deemed to include mention of the payment
of additional amounts provided for in the terms of such Securities and this Section to
the extent that, in such context, additional amounts are, were or would be
payable in respect thereof pursuant to the provisions of this Section and
express mention of the payment of additional amounts (if applicable) in any
provisions hereof shall not be construed as excluding additional amounts in
those provisions hereof where such express mention is not made.

 

If the Securities of a series provide for the payment of additional
amounts as contemplated by Section 3.01(19), at least 10 days prior to the
first Interest Payment Date with respect to that series of Securities (or if
the Securities of that series will not bear interest prior to Maturity, the
first day on which a payment of principal and any premium is made), and at
least 10 days prior to each date of payment of principal (and premium, if any)
and interest, if any, if there has been any change with respect to the matters
set forth in the below-mentioned Officers’ Certificate, the Issuer will furnish
the Senior Trustee for that series of Securities with an Officers’ Certificate
instructing such Senior Trustee whether such payment of principal of (and
premium, if any, on) and interest, if any, on the Securities of that series
shall be made to Holders of Securities of that series without withholding for
or on account of any tax, assessment, duty or other governmental charge
referred to above or described in the Securities of that series. If any such
withholding shall be required, then such Officers’ Certificate shall specify by
country the amount, if any, required to be withheld on such payments to such
Holders of Securities and the Issuer will pay to the Senior Trustee for such
series of Securities such additional amounts as may be required pursuant to the
terms applicable to such series. The Issuer covenants to indemnify the Senior
Trustee for such series of Securities and any Paying Agent for, and to hold
them harmless 

 

70

 

against, any loss, liability or expense reasonably
incurred without gross negligence or bad faith on their part arising out of or
in connection with actions taken or omitted by any of them in reliance on any
Officers’ Certificate furnished pursuant to this Section 10.08 or the
failure to provide any such Officers’ Certificate.  The obligations contained in the immediately
preceding sentence of the Issuer shall survive payment of all of the
Securities, the satisfaction and discharge of this Senior Indenture, and the
resignation or removal of the Senior Trustee or any Paying Agent for such
series of Securities.

 

The Issuer hereby undertakes that, if any withholding or deduction is
imposed on a payment to an individual and is required to be made pursuant to
the proposal agreed by the European Council of Economics and Finance Ministers
(“ECOFIN”) on January 21, 2003 or any law implementing or complying with,
or introduced in order to conform to, any such Directive, it will ensure that
it maintains a paying agent with a specified office in a European Union member
state that will not be obliged to withhold or deduct tax pursuant to any
European Union directive on the taxation of savings income implementing those
proposals or any such law; provided,
that under no circumstances shall the Issuer be obliged to maintain a paying
agent with a specified office in such member state unless at least one member
state of the European Union does not require a paying agent making payments
through a specified office in that member state to so withhold or deduct tax.

 

SECTION 10.09.             Calculation of Original Issue Discount.

 

The Issuer shall deliver to the Senior Trustee promptly at the end of
each calendar year (i) a written notice specifying the amount of original
issue discount (including daily rates and accrual periods) accrued on
Outstanding Securities as of the end of such year and (ii) such other
specific information relating to such original issue discount as may then be
relevant under the U.S. Internal Revenue Code of 1986, as amended from time to
time.

 

ARTICLE
ELEVEN

 

REDEMPTION
OF SECURITIES

 

SECTION 11.01.             Applicability of This Article.

 

Redemption of Securities of any series (whether by operation of a
sinking fund or otherwise) as permitted or required by the terms of any such
Securities shall be made in accordance with such terms and (except as otherwise
specified pursuant to Section 3.01 with respect to Securities of such
series) this Article; provided, however,
that if any of the terms of any such Securities shall conflict with any
provision of this Article, the terms of such Securities shall govern.

 

SECTION 11.02.             Election to Redeem; Notice to Senior Trustee.

 

The election of the Issuer to redeem any Securities of any series shall
be evidenced by or pursuant to a Board Resolution. In case of any redemption at
the election of the Issuer of less than all of the Securities of any particular
series, the Issuer shall, at least 45 days prior to the Redemption Date fixed
by the Issuer (unless a shorter notice shall be satisfactory to the Senior
Trustee for the Securities of such series) notify the Senior Trustee for the
Securities of 

 

71

 

such series by an Issuer Request of such Redemption
Date and of the principal amount of Securities of that series to be redeemed.

 

In the case of any redemption of Securities of any series prior to the
expiration of any restriction on such redemption provided in the terms of such
Securities or elsewhere in this Senior Indenture, the Issuer shall furnish the
Senior Trustee for Securities of such series with an Officers’ Certificate
evidencing compliance with such restriction.

 

In the case of any redemption of Securities of any series pursuant to Section 11.08,
the Issuer shall furnish the Senior Trustee for Securities of such series with
an Officers’ Certificate and an Opinion of Counsel confirming that the Issuer
is entitled to exercise the right of redemption.

 

SECTION 11.03.             Selection of Securities to Be Redeemed.

 

If less than all the Securities are to be redeemed, the Issuer may
select the series to be redeemed, and if less than all of the Securities of any
series are to be redeemed, the particular Securities of that series to be
redeemed shall be selected by the Issuer not more than 45 days prior to the
Redemption Date from the Outstanding Securities of that series not previously
called for redemption, by such method as the Senior Trustee for the Securities
of such series shall approve and which may provide for the selection for
redemption of portions (equal to the minimum authorized denomination for
Securities of that series, or any integral multiple thereof) of the principal
amount of Securities of that series or a denomination larger than the minimum
authorized denomination for Securities of that series pursuant to Section 3.02
in the currency or currency unit in which the Securities of such series are
denominated.

 

The Issuer shall promptly notify in writing the Senior Trustee for the
Securities of such series selected for redemption and, in the case of any
Securities of a series selected for partial redemption, the principal amount
thereof to be redeemed.

 

For all purposes of this Senior Indenture, unless the context otherwise
requires, all provisions relating to the redemption of Securities shall relate,
in the case of any Security redeemed or to be redeemed only in part, to the
portion of the principal amount of such Securities which has been or is to be
redeemed.

 

SECTION 11.04.             Notice of Redemption.

 

Unless otherwise specified in the Securities of a series, notice of
redemption shall be given in the manner provided in Section 1.06 not later
than 30 days and not earlier than 60 days (or in the case of partial redemption
45 days) prior to the Redemption Date, to each Holder of Securities to be
redeemed.

 

All notices of redemption shall state:

 

(1)           the
Redemption Date;

 

(2)           the
Redemption Price;

 

72

 

(3)           if
less than all Outstanding Securities of a particular series are to be redeemed,
the identification (and, in the case of a partial redemption, the respective
principal amounts) of the particular Securities to be redeemed;

 

(4)           that
on the Redemption Date the Redemption Price will become due and payable upon
each such Security or portion thereof, and that interest thereon, if any, shall
cease to accrue on and after said date;

 

(5)           the
place or places where such Securities are to be surrendered for payment of the
Redemption Price;

 

(6)           that
the redemption is for a sinking fund, if such is the case; and

 

(7)           the
Common Code(s), CUSIP number(s) and ISIN, if any, with respect to such
Securities.

 

Notice of redemption of Securities to be redeemed at the election of
the Issuer shall be given by the Issuer or, at the Issuer’s written request, by
the Senior Trustee for such Securities in the name and at the expense of the
Issuer.

 

SECTION 11.05.             Deposit of Redemption Price.

 

On or prior to any Redemption Date, the Issuer shall deposit with the
Senior Trustee for the Securities to be redeemed (or, if the Issuer is acting
as its own Paying Agent for such Securities, segregate and hold in trust as
provided in Section 10.03) an amount of money in same day funds in the
currency or currency unit in which the Securities of such series are payable
(except as otherwise specified pursuant to Section 3.01 for the Securities
of such series and except as provided in Sections 3.11(b), 3.11(d) and
3.11(e)) sufficient to pay the principal amount (or, if the context so
requires, lesser amount in the case of Discounted Securities) of (and premium,
if any, thereon), and (except if the Redemption Date shall be an Interest
Payment Date) any accrued interest on, all the Securities which are to be
redeemed on that date.

 

SECTION 11.06.             Securities Payable on Redemption Date.

 

Notice of redemption having been given as aforesaid, the Securities so
to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified in the currency or currency unit in which
the Securities of such series are payable (except as otherwise provided
pursuant to Section 3.01 for the Securities of such series and except as
provided in Sections 3.11(b), 3.11(d) and 3.11(e)) and from and after such
date (unless the Issuer shall default in the payment of the Redemption Price)
such Securities shall cease to bear interest. 
Upon surrender of such Security for redemption in accordance with said
notice, such Security or specified portions thereof shall be paid by the Issuer
at the Redemption Price; provided, however,
that unless otherwise specified as contemplated by Section 3.01,
installments of interest on Securities whose Stated Maturity is on or prior to
the Redemption Date shall be payable to the Holders of such Securities, or one
or more Predecessor Securities, registered as such at the close of business on
the relevant Regular Record Dates according to their terms and the provisions
of Section 3.07.

 

73

 

If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal (or, if the context shall so
require, lesser amount in the case of Discounted Securities) thereof (and
premium, if any, thereon) shall, until paid, bear interest from the Redemption
Date at a rate per annum equal to the rate borne by the Security (or, in the
case of Discounted Securities, the Security’s Yield to Maturity).

 

SECTION 11.07.             Securities Redeemed in Part.

 

Any Security which is to be redeemed only in part shall be surrendered
at the Place of Payment (with, if the Issuer, the Senior Trustee or the
Security Registrar for such Security so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Issuer, the Senior
Trustee and the Security Registrar for such Security duly executed by, the
Holder thereof or his attorney duly authorized in writing), and the Issuer
shall execute and upon Issuer Request such Senior Trustee shall authenticate
and deliver to the Holder of such Security, without service charge, a new
Security or Securities, of any authorized denomination as requested by such
Holder, of the same series and having the same terms and provisions and in an
aggregate principal amount equal to and in exchange for the unredeemed portion
of the principal of the Security so surrendered; except that, if a global
Security is so surrendered, the Issuer shall execute, and upon Issuer Request
the Senior Trustee shall authenticate and deliver to the Depositary for such
global Security, without service charge, a new global Security of like tenor in
a denomination equal to and in exchange for the unredeemed portion of the
principal amount of the global Security so surrendered.

 

SECTION 11.08.             Tax Redemption.

 

The Securities of any series may be redeemed, subject to any other
terms set forth herein and in the Board Resolution or supplemental indenture
pursuant to Section 3.01 and in such Securities, as a whole but not in
part, at the option of the Issuer, upon not more than 60 days’ nor less than 30
days’ prior notice to the Holders of such Securities, at a Redemption Price
equal to 100% of the principal amount thereof (or, if the context so requires,
such lesser amount in the case of Discounted Securities) (and premium, if any,
thereon), together with accrued interest, if any, thereon to the Redemption
Date, upon the occurrence of a Tax Event; provided, that Securities of any such series may not be so
redeemed if such obligation of the Issuer to pay such additional amounts or to
account as provided in the definition of Tax Event arises, because of the
official application or interpretation of the laws or regulations affecting
taxation of the country in which the Issuer is organized, or any political
subdivision or taxing authority thereof or therein having the power to tax, as
a result of the consolidation, amalgamation or merger of the Issuer with or
into, or the conveyance, transfer or lease by the Issuer of its properties and
assets substantially as an entirety to, any Person.

 

Prior to the redemption of any series of Securities following the
occurrence of a Tax Event, the Issuer shall be required, before it gives a
notice of redemption, to deliver to the Senior Trustee an Officers’ Certificate
stating that all conditions precedent to such redemption have been complied
with and an Opinion of Counsel concluding that in the opinion of such counsel a
Tax Event has occurred and the Issuer is entitled to exercise its right of
redemption in accordance with the terms of the Securities.

 

74

 

If the Issuer provides an Opinion of Counsel in the appropriate
jurisdiction, dated as of the date of the relevant event referred to in the
preceding paragraph, that no obligation to pay any additional amount or to
account as aforesaid arises, then that Opinion of Counsel shall be final and
binding, solely for purposes of such paragraph, on the Issuer, the Senior
Trustee and the Holders of the Securities of any such series as to the law of
the relevant jurisdiction at the date of such Opinion of Counsel.

 

ARTICLE
TWELVE

 

SINKING
FUNDS

 

SECTION 12.01.             Applicability of This Article.

 

Redemption of Securities of any series through operation of a sinking
fund as permitted or required by the terms of any such Securities shall be made
in accordance with such terms and (except as otherwise specified pursuant to Section 3.01
with respect to Securities of such series) this Article; provided, however, that if any of the terms
of any such Securities shall conflict with any provision of this Article, the
terms of such Securities shall govern.

 

The minimum amount of any sinking fund payment provided for by the
terms of Securities of any particular series is herein referred to as a “mandatory
sinking fund payment”, and any payment in excess of such minimum amount
provided for by the terms of Securities of any particular series is herein
referred to as an “optional sinking fund payment”. If provided for by the terms
of Securities of any particular series, the cash amount of any sinking fund
payment may be subject to reduction as provided in Section 12.02. Each
sinking fund payment shall be applied to the redemption of Securities of any
particular series as provided for by the terms of Securities of that series.

 

SECTION 12.02.             Satisfaction of Sinking Fund Payments With Securities.

 

The Issuer (i) may deliver Outstanding Securities of a series
(other than any Securities previously called for redemption) and (ii) may
apply as a credit Securities of a series which have been redeemed either at the
election of the Issuer pursuant to the terms of such Securities or through the
application of permitted optional sinking fund payments pursuant to the terms
of such Securities, in each case in satisfaction of all or any part of any
sinking fund payment with respect to the Securities of such series required to
be made pursuant to the terms of such Securities as provided for by the terms
of such series; provided, however, that such
Securities have not been previously so credited. Such Securities shall be
received and credited for such purpose by the Senior Trustee for such
Securities at the principal amount thereof (or, if the context so requires,
such lesser amount in the case of Discounted Securities) and the amount of such
sinking fund payment shall be reduced accordingly.

 

SECTION 12.03.             Redemption of Securities for Sinking Fund.

 

Not less than 60 days prior to each sinking fund payment date for any
particular series of Securities (or such shorter period as shall be
satisfactory to the Senior Trustee for the Securities of such series), the
Issuer will deliver to the Senior Trustee for the Securities of such series an
Officers’ Certificate specifying the amount of the next ensuing mandatory
sinking fund 

 

75

 

payment for that series pursuant to the terms of that
series, the portion thereof, if any, which is to be satisfied by payment of
cash in the currency or currency unit in which the Securities of that series
are payable (except as otherwise specified pursuant to Section 3.01 for
the Securities of that series and except as provided in Sections 3.11(b), 3.11(d) and
3.11(e)) and the portion thereof, if any, which is to be satisfied by
delivering and crediting Securities of that series pursuant to Section 12.02
and shall state the basis for such credit and that such Securities have not
previously been so credited and will also deliver to such Senior Trustee any
Securities to be so delivered.  The
Issuer or the Senior Trustee for the Securities of such series shall select the
Securities to be redeemed upon such sinking fund payment date in the manner
specified in Section 11.03 and cause notice of the redemption thereof to
be given in the name of and at the expense of the Issuer in the manner provided
in Section 11.04. Such notice having been duly given, the redemption of
such Securities shall be made upon the terms and in the manner stated in
Sections 11.05, 11.06 and 11.07.

 

*    *    *

 

76

 

This instrument may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original but all such counterparts
shall together constitute but one and the same instrument.

 

IN WITNESS WHEREOF, the parties hereto have caused this Senior
Indenture to be duly executed as of the date first written above.

 

	
   

  	
   

  	
  PRUDENTIAL plc,

  
	
   

  	
   

  	
  as Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Elisabeth Wenusch

  
	
   

  	
   

  	
  Name: Elisabeth Wenusch

  
	
   

  	
   

  	
  Title:   Director, Group Funding and Special Projects

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WILMINGTON TRUST
  COMPANY,

  
	
   

  	
   

  	
  as Senior Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Michael G. Oller,
  Jr.

  
	
   

  	
   

  	
  Name: Michael G. Oller,
  Jr.

  
	
   

  	
   

  	
  Title:   Assistant Vice President

  

 

77Exhibit 4.2

 

EXECUTION

 

PRUDENTIAL plc

Issuer

 

and

 

DEUTSCHE BANK
TRUST COMPANY AMERICAS

Subordinated Trustee

 

 

SUBORDINATED
INDENTURE

Dated as of September 8, 2008

 

 

Subordinated Debt
Securities

 

 

 

Reconciliation and tie showing the location in this Subordinated
Indenture of the provisions inserted pursuant to Sections 310 to 318(a),
inclusive, of the Trust Indenture Act of 1939.

 

	
  Trust
  Indenture Act Section

  	
   

  	
  Subordinated Indenture Section

  
	
  §310

  	
  (a)(1)

  	
   

  	
  6.09

  
	
   

  	
  (a)(2)

  	
   

  	
  6.09

  
	
   

  	
  (a)(3)

  	
   

  	
  Not Applicable

  
	
   

  	
  (a)(4)

  	
   

  	
  Not Applicable

  
	
   

  	
  (a)(5)

  	
   

  	
  6.09

  
	
   

  	
  (b)

  	
   

  	
  6.08 and 6.10

  
	
   

  	
  (c)

  	
   

  	
  Not Applicable

  
	
  §311

  	
  (a)

  	
   

  	
  6.13

  
	
   

  	
  (b)

  	
   

  	
  6.13

  
	
   

  	
  (c)

  	
   

  	
  Not Applicable

  
	
  §312

  	
  (a)

  	
   

  	
  7.01 and 7.02(a)

  
	
   

  	
  (b)

  	
   

  	
  7.02(b)

  
	
   

  	
  (c)

  	
   

  	
  7.02(c)

  
	
  §313

  	
  (a)

  	
   

  	
  7.03(a)

  
	
   

  	
  (b)

  	
   

  	
  7.03(a)

  
	
   

  	
  (c)

  	
   

  	
  7.03(a)

  
	
   

  	
  (d)

  	
   

  	
  7.03(b)

  
	
  §314

  	
  (a)

  	
   

  	
  7.04 and 10.04

  
	
   

  	
  (b)

  	
   

  	
  Not Applicable

  
	
   

  	
  (c)

  	
   

  	
  1.02

  
	
   

  	
  (c)(1)

  	
   

  	
  1.02

  
	
   

  	
  (c)(2)

  	
   

  	
  1.02

  
	
   

  	
  (c)(3)

  	
   

  	
  1.01

  
	
   

  	
  (d)

  	
   

  	
  Not Applicable

  
	
   

  	
  (e)

  	
   

  	
  1.02

  
	
  §315

  	
  (a)

  	
   

  	
  6.01(a)

  
	
   

  	
  (b)

  	
   

  	
  6.02

  
	
   

  	
  (c)

  	
   

  	
  6.01(b)

  
	
   

  	
  (d)

  	
   

  	
  6.01(c)

  
	
   

  	
  (d)(1)

  	
   

  	
  6.01(c)(1)

  
	
   

  	
  (d)(2)

  	
   

  	
  6.01(c)(2)

  
	
   

  	
  (d)(3)

  	
   

  	
  6.01(c)(3)

  
	
   

  	
  (e)

  	
   

  	
  5.13

  
	
  §316

  	
  (a)(1)(A)

  	
   

  	
  5.02(b) and
  5.11

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  5.12

  
	
   

  	
  (a)(2)

  	
   

  	
  Not Applicable

  
	
   

  	
  (b)

  	
   

  	
  5.07

  
	
   

  	
  (c)

  	
   

  	
  1.04(a)

  
	
  §317

  	
  (a)(1)

  	
   

  	
  5.03

  
	
   

  	
  (a)(2)

  	
   

  	
  5.04

  
	
   

  	
  (b)

  	
   

  	
  10.03

  
	
  §318

  	
  (a)

  	
   

  	
  1.07

  

 

NOTE:  This reconciliation and
tie shall not, for any purpose, be deemed to be a part of this Subordinated
Indenture.

 

i

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE ONE

  
	
   

  
	
  DEFINITIONS AND OTHER PROVISIONS OF GENERAL
  APPLICATION

  
	
   

  
	
  SECTION 1.01.

  	
  DEFINITIONS

  	
  1

  
	
  SECTION 1.02.

  	
  COMPLIANCE
  CERTIFICATES AND OPINIONS

  	
  17

  
	
  SECTION 1.03.

  	
  FORM OF
  DOCUMENTS DELIVERED TO SUBORDINATED TRUSTEE

  	
  18

  
	
  SECTION 1.04.

  	
  ACTS
  OF HOLDERS; COMMUNICATION BY HOLDERS WITH OTHER HOLDERS

  	
  19

  
	
  SECTION 1.05.

  	
  NOTICES,
  ETC., TO SUBORDINATED TRUSTEE OR ISSUER

  	
  20

  
	
  SECTION 1.06.

  	
  NOTICE
  TO HOLDERS; WAIVER

  	
  21

  
	
  SECTION 1.07.

  	
  CONFLICT
  WITH TRUST INDENTURE ACT

  	
  21

  
	
  SECTION 1.08.

  	
  EFFECT
  OF HEADINGS AND TABLE OF CONTENTS

  	
  21

  
	
  SECTION 1.09.

  	
  SUCCESSORS
  AND ASSIGNS

  	
  21

  
	
  SECTION 1.10.

  	
  SEPARABILITY
  CLAUSE

  	
  21

  
	
  SECTION 1.11.

  	
  BENEFITS
  OF SUBORDINATED INDENTURE

  	
  21

  
	
  SECTION 1.12.

  	
  GOVERNING
  LAW

  	
  21

  
	
  SECTION 1.13.

  	
  NON-BUSINESS
  DAY

  	
  21

  
	
  SECTION 1.14.

  	
  IMMUNITY
  OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

  	
  22

  
	
  SECTION 1.15.

  	
  CERTAIN
  MATTERS RELATING TO CURRENCIES

  	
  22

  
	
  SECTION 1.16.

  	
  LANGUAGE
  OF NOTICES, ETC.

  	
  24

  
	
  SECTION 1.17.

  	
  APPOINTMENT
  OF AGENT FOR SERVICE

  	
  24

  
	
  SECTION 1.18.

  	
  RULES
  BY THE SUBORDINATED TRUSTEE

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  
	
   

  
	
  SECURITY FORMS

  
	
   

  
	
  SECTION 2.01.

  	
  FORMS
  OF SECURITIES

  	
  25

  
	
  SECTION 2.02.

  	
  FORM OF
  CERTIFICATE OF AUTHENTICATION

  	
  26

  
	
  SECTION 2.03.

  	
  SECURITIES
  IN GLOBAL FORM

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE

  
	
   

  
	
  THE SECURITIES

  
	
   

  
	
  SECTION 3.01.

  	
  TITLE;
  PAYMENT AND TERMS

  	
  27

  
	
  SECTION 3.02.

  	
  DENOMINATIONS
  AND CURRENCIES

  	
  32

  
	
  SECTION 3.03.

  	
  EXECUTION,
  AUTHENTICATION, DELIVERY AND DATING

  	
  32

  
	
  SECTION 3.04.

  	
  TEMPORARY
  SECURITIES AND EXCHANGE OF SECURITIES

  	
  34

  

 

ii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 3.05.

  	
  REGISTRATION,
  REGISTRATION OF TRANSFER AND EXCHANGE

  	
  35

  
	
  SECTION 3.06.

  	
  MUTILATED,
  DESTROYED, LOST AND STOLEN SECURITIES

  	
  37

  
	
  SECTION 3.07.

  	
  PAYMENT
  OF INTEREST

  	
  38

  
	
  SECTION 3.08.

  	
  PERSONS
  DEEMED OWNERS

  	
  44

  
	
  SECTION 3.09.

  	
  CANCELLATION

  	
  44

  
	
  SECTION 3.10.

  	
  COMPUTATION
  OF INTEREST

  	
  45

  
	
  SECTION 3.11.

  	
  CURRENCY
  AND MANNER OF PAYMENTS IN RESPECT OF SECURITIES

  	
  45

  
	
  SECTION 3.12.

  	
  CURRENCY
  DETERMINATION AGENT

  	
  49

  
	
  SECTION 3.13.

  	
  COMMON
  CODE, CUSIP OR ISIN NUMBERS

  	
  49

  
	
  SECTION 3.14.

  	
  AUTHENTICATING
  AGENTS

  	
  50

  
	
   

  
	
  ARTICLE FOUR

  
	
   

  
	
  SATISFACTION AND DISCHARGE

  
	
   

  
	
  SECTION 4.01.

  	
  SATISFACTION
  AND DISCHARGE OF SECURITIES OF ANY SERIES

  	
  51

  
	
  SECTION 4.02.

  	
  APPLICATION
  OF TRUST MONEY

  	
  54

  
	
  SECTION 4.03.

  	
  SATISFACTION
  AND DISCHARGE OF SUBORDINATED INDENTURE

  	
  55

  
	
  SECTION 4.04.

  	
  REINSTATEMENT

  	
  55

  
	
   

  
	
  ARTICLE FIVE

  
	
   

  
	
  REMEDIES

  
	
   

  
	
  SECTION 5.01.

  	
  EVENTS
  OF DEFAULT

  	
  55

  
	
  SECTION 5.02.

  	
  ACCELERATION
  OF MATURITY; RESCISSION AND ANNULMENT

  	
  56

  
	
  SECTION 5.03.

  	
  PAYMENT
  DEFAULTS, PERPETUAL SECURITY DEFAULTS, PAYMENT EVENTS

  	
  57

  
	
  SECTION 5.04.

  	
  SUBORDINATED
  TRUSTEE MAY FILE PROOFS OF CLAIM

  	
  60

  
	
  SECTION 5.05.

  	
  SUBORDINATED
  TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES

  	
  61

  
	
  SECTION 5.06.

  	
  APPLICATION
  OF MONEY COLLECTED

  	
  61

  
	
  SECTION 5.07.

  	
  LIMITATION
  ON SUITS

  	
  62

  
	
  SECTION 5.08.

  	
  UNCONDITIONAL
  RIGHT OF HOLDERS TO RECEIVE PRINCIPAL (AND PREMIUM, IF ANY) AND INTEREST, IF
  ANY

  	
  63

  
	
  SECTION 5.09.

  	
  RESTORATION
  OF RIGHTS AND REMEDIES

  	
  63

  

 

iii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 5.10.

  	
  RIGHTS
  AND REMEDIES CUMULATIVE

  	
  63

  
	
  SECTION 5.11.

  	
  DELAY
  OR OMISSION NOT WAIVER

  	
  63

  
	
  SECTION 5.12.

  	
  CONTROL
  BY HOLDERS

  	
  64

  
	
  SECTION 5.13.

  	
  WAIVER
  OF PAST DEFAULTS

  	
  64

  
	
  SECTION 5.14.

  	
  UNDERTAKING
  FOR COSTS

  	
  64

  
	
  SECTION 5.15.

  	
  WAIVER
  OF STAY OR EXTENSION LAWS

  	
  65

  
	
  SECTION 5.16.

  	
  JUDGMENT
  CURRENCY

  	
  65

  
	
   

  
	
  ARTICLE SIX

  
	
   

  
	
  THE SUBORDINATED TRUSTEE

  
	
   

  
	
  SECTION 6.01.

  	
  CERTAIN
  DUTIES AND RESPONSIBILITIES

  	
  66

  
	
  SECTION 6.02.

  	
  NOTICE
  OF DEFAULT

  	
  67

  
	
  SECTION 6.03.

  	
  CERTAIN
  RIGHTS OF SUBORDINATED TRUSTEE

  	
  68

  
	
  SECTION 6.04.

  	
  NOT
  RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES

  	
  69

  
	
  SECTION 6.05.

  	
  MAY HOLD
  SECURITIES

  	
  70

  
	
  SECTION 6.06.

  	
  MONEY
  HELD IN TRUST

  	
  70

  
	
  SECTION 6.07.

  	
  COMPENSATION
  AND REIMBURSEMENT

  	
  70

  
	
  SECTION 6.08.

  	
  DISQUALIFICATION;
  CONFLICTING INTERESTS

  	
  71

  
	
  SECTION 6.09.

  	
  CORPORATE
  SUBORDINATED TRUSTEE REQUIRED; DIFFERENT SUBORDINATED TRUSTEES FOR DIFFERENT
  SERIES; ELIGIBILITY

  	
  71

  
	
  SECTION 6.10.

  	
  RESIGNATION
  AND REMOVAL; APPOINTMENT OF SUCCESSOR

  	
  72

  
	
  SECTION 6.11.

  	
  ACCEPTANCE
  OF APPOINTMENT BY SUCCESSOR

  	
  74

  
	
  SECTION 6.12.

  	
  MERGER,
  CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS

  	
  75

  
	
  SECTION 6.13.

  	
  PREFERENTIAL
  COLLECTION OF CLAIMS AGAINST ISSUER

  	
  76

  
	
  SECTION 6.14

  	
  USA
  PATRIOT ACT

  	
  76

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN

  
	
   

  	
   

  	
   

  
	
  HOLDERS’ LISTS AND REPORTS BY SUBORDINATED TRUSTEE AND
  ISSUER

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
  ISSUER
  TO FURNISH SUBORDINATED TRUSTEE NAMES AND ADDRESSES OF HOLDERS

  	
  76

  
	
  SECTION 7.02.

  	
  PRESERVATION
  OF INFORMATION; COMMUNICATIONS TO HOLDERS

  	
  76

  
	
  SECTION 7.03.

  	
  REPORTS
  BY SUBORDINATED TRUSTEE

  	
  78

  

 

iv

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 7.04.

  	
  REPORTS
  BY ISSUER

  	
  78

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  
	
   

  	
   

  	
   

  
	
  CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
  ISSUER
  MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS

  	
  79

  
	
  SECTION 8.02.

  	
  SUCCESSOR
  CORPORATION SUBSTITUTED

  	
  80

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE

  
	
   

  	
   

  	
   

  
	
  SUPPLEMENTAL INDENTURES

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
  SUPPLEMENTAL
  SUBORDINATED INDENTURES WITHOUT CONSENT OF HOLDERS

  	
  81

  
	
  SECTION 9.02.

  	
  SUPPLEMENTAL
  SUBORDINATED INDENTURES WITH CONSENT OF HOLDERS

  	
  82

  
	
  SECTION 9.03.

  	
  EXECUTION
  OF SUPPLEMENTAL SUBORDINATED INDENTURES

  	
  84

  
	
  SECTION 9.04.

  	
  EFFECT
  OF SUPPLEMENTAL SUBORDINATED INDENTURES

  	
  84

  
	
  SECTION 9.05.

  	
  CONFORMITY
  WITH TRUST INDENTURE ACT

  	
  84

  
	
  SECTION 9.06.

  	
  REFERENCE
  IN SECURITIES TO SUPPLEMENTAL SUBORDINATED INDENTURES

  	
  84

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  
	
   

  	
   

  	
   

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
  PAYMENT
  OF PRINCIPAL (AND PREMIUM, IF ANY) AND INTEREST AND DEFERRED INTEREST, IF ANY

  	
  85

  
	
  SECTION 10.02.

  	
  MAINTENANCE
  OF OFFICE OR AGENCY

  	
  85

  
	
  SECTION 10.03.

  	
  MONEY
  FOR SECURITIES PAYMENTS TO BE HELD IN TRUST

  	
  86

  
	
  SECTION 10.04.

  	
  STATEMENTS
  AS TO COMPLIANCE

  	
  87

  
	
  SECTION 10.05.

  	
  CORPORATE
  EXISTENCE

  	
  88

  
	
  SECTION 10.06.

  	
  WAIVER
  OF CERTAIN COVENANTS

  	
  88

  
	
  SECTION 10.07.

  	
  PAYMENT
  OF ADDITIONAL AMOUNTS

  	
  88

  
	
  SECTION 10.08.

  	
  CALCULATION
  OF ORIGINAL ISSUE DISCOUNT

  	
  91

  
	
  SECTION 10.09.

  	
  DIVIDEND
  AND CAPITAL RESTRICTION

  	
  91

  

 

v

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN

  
	
   

  
	
  REDEMPTION OF SECURITIES

  
	
   

  
	
  SECTION 11.01.

  	
  APPLICABILITY
  OF THIS ARTICLE

  	
  92

  
	
  SECTION 11.02.

  	
  ELECTION
  TO REDEEM; NOTICE TO SUBORDINATED TRUSTEE

  	
  93

  
	
  SECTION 11.03.

  	
  SELECTION
  OF SECURITIES TO BE REDEEMED

  	
  93

  
	
  SECTION 11.04.

  	
  NOTICE
  OF REDEMPTION

  	
  94

  
	
  SECTION 11.05.

  	
  DEPOSIT
  OF REDEMPTION PRICE

  	
  94

  
	
  SECTION 11.06.

  	
  SECURITIES
  PAYABLE ON REDEMPTION DATE

  	
  95

  
	
  SECTION 11.07.

  	
  SECURITIES
  REDEEMED IN PART

  	
  96

  
	
  SECTION 11.08.

  	
  TAX
  EVENT REDEMPTION

  	
  96

  
	
  SECTION 11.09.

  	
  REGULATORY
  EVENT REDEMPTION

  	
  97

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE

  
	
   

  
	
  SINKING FUNDS

  
	
   

  
	
  SECTION 12.01.

  	
  APPLICABILITY
  OF THIS ARTICLE

  	
  98

  
	
  SECTION 12.02.

  	
  SATISFACTION
  OF SINKING FUND PAYMENTS WITH SECURITIES

  	
  99

  
	
  SECTION 12.03.

  	
  REDEMPTION
  OF SECURITIES FOR SINKING FUND

  	
  99

  
	
   

  	
   

  	
   

  
	
  ARTICLE THIRTEEN

  
	
   

  
	
  SUBORDINATION OF SECURITIES

  
	
   

  	
   

  	
   

  
	
  SECTION 13.01.

  	
  SECURITIES
  SUBORDINATE TO CERTAIN CREDITORS; DEFINITION OF RELATIVE RIGHTS

  	
  99

  
	
  SECTION 13.02.

  	
  PROVISIONS
  SOLELY TO DEFINE RELATIVE RIGHTS

  	
  105

  
	
  SECTION 13.03.

  	
  SUBORDINATED
  TRUSTEE TO EFFECTUATE SUBORDINATION

  	
  106

  
	
  SECTION 13.04.

  	
  NO
  WAIVER OF SUBORDINATION PROVISIONS

  	
  106

  
	
  SECTION 13.05.

  	
  NOTICE
  TO SUBORDINATED TRUSTEE

  	
  106

  
	
  SECTION 13.06.

  	
  RELIANCE
  ON JUDICIAL ORDER OR CERTIFICATE OF LIQUIDATING AGENT

  	
  107

  
	
  SECTION 13.07.

  	
  SUBORDINATED
  TRUSTEE NOT FIDUCIARY FOR CREDITORS

  	
  107

  
	
  SECTION 13.08.

  	
  RIGHTS
  OF SUBORDINATED TRUSTEE AS CREDITOR; PRESERVATION OF SUBORDINATED TRUSTEE’S
  RIGHTS

  	
  108

  
	
  SECTION 13.09.

  	
  ARTICLE
  APPLICABLE TO PAYING AGENTS

  	
  108

  
	
  SECTION 13.10.

  	
  CONVERSION
  OR EXCHANGE NOT DEEMED PAYMENT

  	
  108

  

 

vi

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOURTEEN

  
	
   

  
	
  CONVERSION OR EXCHANGE OF SECURITIES

  
	
   

  
	
  SECTION 14.01.

  	
  APPLICABILITY
  OF ARTICLE

  	
  108

  
	
  SECTION 14.02.

  	
  ELECTION
  TO CONVERT OR EXCHANGE; NOTICE TO SUBORDINATED TRUSTEE

  	
  109

  
	
  SECTION 14.03.

  	
  NOTICE
  OF CONVERSION OR EXCHANGE

  	
  109

  
	
  SECTION 14.04.

  	
  DEPOSIT
  OF PAYMENTS

  	
  110

  
	
  SECTION 14.05.

  	
  SURRENDER
  OF SECURITIES

  	
  110

  
	
  SECTION 14.06.

  	
  ISSUANCE
  OF PREFERENCE SHARES

  	
  110

  
	
  SECTION 14.07.

  	
  EFFECT
  OF CONVERSION OR EXCHANGE

  	
  111

  
	
  SECTION 14.08.

  	
  VALIDITY
  OF PREFERENCE SHARES, DEPOSITARY AGREEMENT AND ADRS

  	
  111

  
	
  SECTION 14.09.

  	
  LEGAL
  AND REGULATORY COMPLIANCE

  	
  112

  
	
  SECTION 14.10.

  	
  TAXES
  AND CHARGES

  	
  113

  
	
  SECTION 14.11.

  	
  SUBORDINATED
  TRUSTEE NOT LIABLE

  	
  113

  

 

vii

 

PRUDENTIAL SUBORDINATED
INDENTURE

 

This is a SUBORDINATED INDENTURE dated as of September 8, 2008, among
Prudential plc, a public limited company duly organized and existing under the
laws of England and Wales, and having its principal office at Laurence Pountney
Hill, London EC4R 0HH, England, (hereinafter called the “Issuer”), and Deutsche
Bank Trust Company Americas, a New York banking corporation, duly incorporated
and existing under the laws of the State of New York and having its Corporate
Trust Office at 60 Wall Street, Mail Stop NYC60-2710, New York, New York 10005,
as Subordinated Trustee (hereinafter called the “Subordinated Trustee”).

 

RECITALS OF THE ISSUER

 

The Issuer deems it necessary to issue from time to time for its lawful
purposes subordinated securities (herein called the “Securities”) evidencing
its unsecured indebtedness and has duly authorized the execution and delivery
of this Subordinated Indenture to provide for the issuance from time to time of
the Securities, unlimited as to principal amount, to have such titles, to bear
such rates of interest, to mature at such time or times and to have such other
provisions as shall be established as hereinafter provided.

 

All things necessary to make this Subordinated Indenture a valid
agreement of the Issuer, in accordance with its terms, have been done, and the
Issuer proposes to do all things necessary to make the Securities, when
executed by the Issuer and authenticated and delivered by the Subordinated
Trustee hereunder and duly issued by the Issuer, the valid obligations of the
Issuer as hereinafter provided.

 

NOW THEREFORE, THIS
SUBORDINATED INDENTURE WITNESSETH:

 

For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually covenanted and agreed, for
the equal and proportionate benefit of all Holders of the Securities, as
follows:

 

ARTICLE
ONE

DEFINITIONS
AND OTHER PROVISIONS

OF GENERAL APPLICATION

 

SECTION 1.01.                Definitions.

 

For all purposes of this Subordinated Indenture and all Securities
issued hereunder, except as otherwise expressly provided herein or in one or
more indentures supplemental hereto or in an Officers’ Certificate pursuant to Section 3.01,
or unless the context otherwise requires:

 

(1)           the terms defined in this Article have
the meanings assigned to them in this Article and include the plural as
well as the singular;

 

1

 

(2)           all other terms used herein which are
defined in the Trust Indenture Act, either directly or by reference therein,
have the meanings assigned to them therein;

 

(3)           all accounting terms not otherwise
defined herein have the meanings assigned to them in accordance with generally
accepted accounting principles in the United Kingdom, and the term “generally accepted
accounting principles” with respect to any computation required or permitted
hereunder shall mean such accounting principles as are generally accepted in
the United Kingdom at the date or time of such computation; and

 

(4)           the words “herein”, “hereof” and “hereunder”
and other words of similar import refer to this Subordinated Indenture as a
whole and not to any particular Article, Section or other subdivision.

 

Certain terms, used principally in Article Three and Article Six,
are defined in those Articles.

 

“Act”, when used with respect to any
Holder, has the meaning specified in Section 1.04.

 

“ADR Custodian” means the custodian under
the ADR Deposit Agreement.

 

“ADR Deposit Agreement” means the deposit
agreement, dated as of July August 6, 2004, between the Issuer,
Citibank, N.A., as depositary, and holders from time to time of American
Depositary Receipts issued thereunder.

 

“ADR Depositary” means the depositary
under the ADR Deposit Agreement.

 

“ADRs” means the American Depositary
Receipts issued pursuant to the ADR Deposit Agreement.

 

“Affiliate” of any specified Person means
any other Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified Person.  For the purposes of this definition, “control”,
when used with respect to any specified Person, means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing.

 

“Alternative Coupon Satisfaction Mechanism”
means, with respect to the Perpetual Subordinated Capital Securities and
Perpetual Subordinated Debt Securities, the procedure for raising cash through
the issuance of shares by which the Issuer may be required or elect to satisfy
a payment of Deferred Interest or a principal payment on the Perpetual
Subordinated Capital Securities and Perpetual Subordinated Debt Securities, as
and to the extent provided in the applicable Board Resolution or supplemental
indenture 

 

2

 

executed pursuant to Section 3.01 hereof
establishing the terms of such series of Perpetual Subordinated Capital
Securities and Perpetual Subordinated Debt Securities.

 

“Assets” means the Issuer’s
non-consolidated gross assets, as shown in the Issuer’s latest published
balance sheet, but adjusted for contingencies and subsequent events, all in
such manner as the Person or Persons giving the relevant report under Section 13.01(b) may
determine.

 

“Auditors” means the auditors for the
time being of the Issuer, or if there shall be joint auditors of the Issuer,
any one or more of such joint auditors.

 

“Authenticating Agent” means any Person
authorized to authenticate and deliver Securities in the name of, and as the
agent of, the Subordinated Trustee for the Securities of any series pursuant to
Section 3.14.

 

“Bankruptcy Law” means any bankruptcy,
insolvency, reorganization or other similar law of the United States or any
State thereof, England or any other applicable country or jurisdiction.

 

“Board of Directors” means the board of
directors of the Issuer or any duly authorized committee of that board or any
director or directors and/or officer or officers of the Issuer to whom that
board or committee shall have duly delegated its authority.

 

“Board Resolution” means (1) a copy
of a resolution certified by a director, the Secretary or a Deputy or Assistant
Secretary of the Issuer, to have been duly adopted by the Board of Directors or
an authorized committee thereof and to be in full force and effect on the date
of such certification, or (2) a certificate signed by the director or
directors and/or officer or officers to whom the Board of Directors of the
Issuer shall have duly delegated its authority, and, delivered to the
Subordinated Trustee for the Securities of any series.

 

“Business Day”, when used with respect to
any particular Place of Payment, means, unless otherwise specified in the Securities
of a series, each day, other than a Saturday or Sunday, which is not a day on
which commercial banking institutions in The City of New York, or in London,
England or in the applicable Place of Payment, or, in respect of any payment to
be made in a Foreign Currency, in the principal financial center of the country
issuing such Foreign Currency, are authorized or required by law, regulation or
executive order to close, and shall otherwise mean each day, other than a
Saturday or Sunday, which is not a day on which banking institutions, at the
place where any specified act pursuant to this Subordinated Indenture is to
occur, are authorized or required by law, regulation or executive order to
close.

 

“Calculation Agency Agreement” means the
Calculation Agency Agreement to be entered into among UBS Limited, as
Calculation Agent, Deutsche Bank Trust Company Americas, as Subordinated
Trustee, and the Issuer, in respect of each series of Perpetual Subordinated
Capital Securities.

 

3

 

“Calculation Agent” means UBS Limited, as
Calculation Agent under the Calculation Agency Agreement or such other Person
which may be appointed as Calculation Agent pursuant to the Calculation Agency
Agreement.

 

“Capital Adequacy Condition”
shall have the meaning attributable to such term in the applicable Board
Resolution or supplemental indenture executed pursuant to Section 3.01
hereof establishing the terms of the relevant series of Securities.

 

“Capital Regulations” means the rules and
regulations of the Financial Services Authority or any successor regulatory
body that require the Issuer or any of its EEA Insurance Subsidiaries to meet a
Regulatory Capital Requirement, including, without limitation, pursuant to
Directive 98/78/EC of the European Union and Directive 2002/87/EC of the
European Union or any legislation, rules or regulations (whether having
the force of law or otherwise) in any state within the European Economic Area
implementing such directives.

 

“Certificate of a Firm of
Independent Public Accountants” means a certificate signed by any
firm of independent public accountants of nationally recognized standing in the
United Kingdom selected by the Issuer which may include the Auditors of the
Issuer.

 

“Commission” means the United States
Securities and Exchange Commission, as from time to time constituted, created
under the Exchange Act (as defined below), or if at any time after the
execution of this instrument such Commission is not existing and performing the
duties now assigned to it under the Trust Indenture Act, then the body
performing such duties on such date.

 

“Component Currency” has the meaning
specified in Section 3.11(h).

 

“Compulsory Interest Payment Date” means,
(a) in respect of the Perpetual Subordinated Capital Securities or the
Perpetual Subordinated Debt Securities, any Interest Payment Date on which (i) the
Issuer satisfies the Solvency Condition and (ii) which is not a Optional
Interest Payment Date or (b) in respect of the Dated Subordinated Debt
Securities for which the Issuer has elected to defer payments of interest in
accordance with the applicable Board Resolution or supplemental indenture
executed pursuant to Section 3.01 hereof establishing the terms of a
series of Dated Subordinated Debt Securities, an Interest Payment Date that is
not an Optional Interest Payment Date.

 

“Conversion Date” has the meaning
specified in Section 3.11(d).

 

“Conversion Event” means the
unavailability of any Foreign Currency or currency unit due to the imposition
of exchange controls or other circumstances beyond the control of the Issuer.

 

“Corporate Trust Office” means the office
of the Subordinated Trustee for Securities of any series at which at any
particular time its corporate trust business shall be principally administered,
which office of Deutsche Bank Trust Company Americas, at the 

 

4

 

date of the execution of this Subordinated Indenture,
is located at 60 Wall Street, Mail Stop NYC60-2710, New York, New York 10005.

 

“corporation” includes corporations,
associations, companies and business trusts.

 

“Currency Determination Agent”, with
respect to Securities of any series, means, unless otherwise specified in the
Securities of a series, a New York Clearing House bank designated pursuant to Section 3.01
or Section 3.12.

 

“Currency Determination Agent’s Certificate”
means a certificate or facsimile thereof setting forth (i) the applicable
Market Exchange Rate and (ii) the Dollar, Foreign Currency or currency
unit amounts of principal (and premium, if any) and interest and Deferred
Interest, if any (on an aggregate basis and on the basis of a Security having
the lowest denomination principal amount determined in accordance with Section 3.02
in the relevant currency or currency unit), payable with respect to a Security
of any series on the basis of such Market Exchange Rate, signed by the Currency
Determination Agent.

 

“Current Interest” has
the meaning specified in Section 3.07.

 

“Dated Subordinated Debt Securities”
means securities evidencing unsecured subordinated indebtedness of the Issuer
authenticated and delivered under this Subordinated Indenture and that have a
fixed Stated Maturity or Redemption Date.

 

“Defaulted Interest” has the meaning
specified in Section 3.07(f).

 

“Deferred Interest” has the meaning
specified in Section 3.07 and as may be further provided in the applicable
Board Resolution or supplemental indenture executed pursuant to Section 3.01
hereof establishing the terms of such series.

 

“Deferred Interest Payment” means any
payment that the Issuer makes in respect of Deferred Interest.

 

“Deferred Interest Payment Date” has the
meaning specified in Section 3.07.

 

“Deferred Principal Payment Date” has the
meaning specified in Section 3.07.

 

“Definitive Suspension” means, with
respect to any series of Perpetual Subordinated Capital Securities, the
suspension of the Alternative Coupon Satisfaction Mechanism with respect to
such series as referred to in Section 3.01(26) hereof and as further
provided in the applicable Board Resolution or supplemental indenture executed
pursuant to Section 3.01 hereof establishing the terms of such series of
Perpetual Subordinated Capital Securities.

 

5

 

“Depositary” means, with respect to the Securities of any series issuable or
issued in the form of a global Security, the Person designated as Depositary by
the Issuer pursuant to Section 3.01 until a successor Depositary shall
have become such pursuant to the applicable provisions of this Subordinated
Indenture, and thereafter “Depositary” shall mean or include each Person who is
then a Depositary hereunder, and if at any time there is more than one such
Person, “Depositary” as used with respect to the Securities of any such series shall
mean each Depositary with respect to the Securities of that series.

 

 “Discounted
Security” means any Security which provides for an amount (excluding
any amounts attributable to accrued but unpaid interest thereon) less than the
principal amount thereof to be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 5.02.

 

“Dollar Equivalent of the Currency Unit”
has the meaning specified in Section 3.11(g).

 

“Dollar Equivalent of the Foreign Currency”
has the meaning specified in Section 3.11(f).

 

“Dollars” and the sign “$” mean the currency of the United States that as at the
time of payment is legal tender for the payment of public and private debts.

 

“EEA Insurance Subsidiary” means any
Subsidiary of Prudential plc engaged in the insurance business and regulated as
such by a member state of the European Economic Area.

 

“Election Date” has the meaning specified
in Section 3.11(h).

 

“euro” means the single currency of the
participating member states of the European Union that adopted the euro as
their lawful currency pursuant to the Treaty establishing the European Union
(as amended from time to time), and “participating member
states” means those member states of the European Union from time to
time which adopt a single, shared currency in the Third Stage, as defined and
identified in European Union legislation.

 

“European Economic Area” means the
European Union together with Norway, Liechtenstein and Iceland.

 

“Event Date” has the meaning specified in
Section 3.01(28).

 

“Event of Default” has the meaning
specified in Section 5.01.

 

“Excepted Person” has the meaning
specified in Section 14.10.

 

“Exchange Act” means the United States
Securities Exchange Act of 1934, as amended.

 

6

 

“Exchange Rate Officers’ Certificate”
means a certificate or facsimile thereof setting forth (i) the applicable
Market Exchange Rate and (ii) the Dollar, Foreign Currency or currency
unit amounts of principal (and premium, if any) and interest and Deferred
Interest, if any (on an aggregate basis and on the basis of a Security having
the lowest denomination principal amount determined in accordance with Section 3.02
in the relevant currency or currency unit), payable with respect to a Security
of any series on the basis of such Market Exchange Rate, signed by the finance
director or treasurer of the Issuer.

 

“Financial Services Authority” means the
United Kingdom Financial Services Authority, or any successor regulatory body
or such other governmental authority in the United Kingdom (or if the Issuer
becomes domiciled in a jurisdiction other than the United Kingdom, in such
other jurisdiction) having primary supervisory authority with respect to the
capital requirements of the Issuer.

 

“Foreign Currency” means a currency
issued and actively maintained as a country’s or countries’ recognized unit of
domestic exchange by the government of any country other than the United
States.

 

“Group” means the Issuer
and its Subsidiaries.

 

“Holder”, when used with respect to any
Security, means the Person in whose name a Security is registered in the
Security Register.

 

“interest”, when used with respect to a
Discounted Security which by its terms bears interest only after Maturity,
means interest payable after Maturity.

 

“Interest Payment Date”, when used with
respect to any Dated Subordinated Debt Securities or Perpetual Subordinated
Debt Securities, means the Stated Maturity of an installment of interest on
such Dated Subordinated Debt Securities or Perpetual Subordinated Debt
Securities and, when used with respect to any Perpetual Subordinated Capital
Securities, means each date defined as an Interest Payment Date in accordance
with the terms thereof; provided, however,
that, unless otherwise provided with respect to the Securities of any series,
if the Issuer does not pay any installment of interest on an Interest Payment
Date with respect to any Dated Subordinated Debt Securities or Perpetual
Subordinated Debt Securities, the obligation to make such payment and such
Interest Payment Date shall be deferred until the Deferred Interest Payment
Date (it being understood for the avoidance of doubt that any such deferral
shall take place only once with respect to any payment of interest).

 

“Interest Period” means, in respect of
any series, the period from and including each Interest Payment Date for such
series (or, as the case may be, the issue date of such series) up to but
excluding the next (or first) Interest Payment Date in respect of such series
or such other period as is specified to apply to such series in the applicable
Board Resolution or supplemental indenture establishing the terms of such
series.

 

“Issuer” means the Person named as an “Issuer”
in the first paragraph of this Subordinated Indenture until a successor
corporation shall have become such 

 

7

 

pursuant to the applicable provisions of this
Subordinated Indenture, and thereafter “Issuer” shall mean such successor
corporation.

 

“Issuer Request” and “Issuer Order” mean, respectively, a written request or order
(a) signed in the name of the Issuer by (i) any two of its chairman
of the board, deputy chairman of the board, group chief executive officer,
treasurer, group finance director or director group finance and risk, (ii) any
one of the foregoing Persons together with any group secretary or deputy group
secretary of the Issuer, or (iii) any two Persons designated by the Issuer
in an Issuer Order previously delivered to the Subordinated Trustee for Securities
of any series and (b) delivered to the Subordinated Trustee for Securities
of any series in accordance with the provisions of this Subordinated Indenture.

 

“Judgment Date” has the meaning specified
in Section 5.16.

 

“Junior Securities” means, unless otherwise
provided in the applicable Board Resolution or supplemental indenture executed
pursuant to Section 3.01 hereof establishing the terms of the relevant
series of Securities:

 

(i)  in the case of
Perpetual Subordinated Debt Securities, the Issuer’s ordinary shares, the
Issuer’s Tier 1 Capital and any other securities issued by the Issuer together
with any securities issued by a Subsidiary where such securities benefit from a
guarantee or support agreement from the Issuer, the claims of the holders of
which rank, as regards distribution on a return of assets on winding up of the
Issuer or in respect of distributions or payments of dividends or any other
payments thereon, after the Perpetual Subordinated Debt Securities;

 

(ii)  in the case of
Dated Subordinated Debt Securities, the Issuer’s ordinary shares, the Issuer’s
Tier 1 Capital, the Issuer’s Upper Tier 2 Capital and any other securities
issued by the Issuer together with any securities issued by a Subsidiary where
such securities benefit from a guarantee or support agreement from the Issuer,
the claims of the holders of which rank, as regards distribution on a return of
assets on the Issuer’s winding up or in respect of distributions or payments of
dividends or any other payments thereon, after the Dated Subordinated Debt
Securities; or

 

(iii) 
in the case of the Perpetual Subordinated Capital Securities, the Issuer’s
ordinary shares and any other securities issued by the Issuer together with any
securities issued by a Subsidiary where such securities benefit from a
guarantee or support agreement from the Issuer, the claims of the holders of
which rank, as regards distribution on a return of assets on the winding up of
the Issuer or in respect of distributions or payments of dividends or any other
payments thereon, after the Perpetual Subordinated Capital Securities.

 

“Liabilities” means the total amount of
the non-consolidated gross liabilities of the Issuer as shown by the latest
published balance sheet of the Issuer but adjusted for contingencies and
subsequent events in such manner as the Person or Persons giving the relevant
report under Section 13.01(b) may determine.

 

8

 

“Lower Tier 2 Capital”
shall have the meaning given such term from time to time by the Financial
Services Authority.

 

“Market Disruption Event” means, with
respect to the Perpetual Subordinated Debt Securities and the Perpetual
Subordinated Capital Securities, (i) the occurrence or existence of any
material suspension of or limitation imposed on trading or on settlement
procedures for transactions in the Issuer’s ordinary shares on the London Stock
Exchange (or other national securities exchange or designated offshore
securities market constituting the principal trading market for the Issuer’s
ordinary shares), or (ii) in the Issuer’s reasonable opinion, there has
been a substantial deterioration in the price and/or value of its ordinary
shares or circumstances are such as to prevent or to a material extent restrict
the issue or delivery of the ordinary shares to be issued in accordance with
the Alternative Coupon Satisfaction Mechanism or (iii) where, pursuant to
provisions of the Perpetual Subordinated Debt Securities or the Perpetual
Subordinated Capital Securities, monies are required to be converted from one
currency upon sale of ordinary shares into another currency in respect of any
payment of Deferred Interest, the occurrence of any event that makes it
impracticable to effect such conversion.

 

“Market Exchange Rate” means, unless
otherwise specified in the Securities of a series, (i) for any conversion
involving a currency unit on the one hand and Dollars or any Foreign Currency
on the other, the exchange rate between the relevant currency unit and Dollars
or such Foreign Currency calculated by the method specified pursuant to Section 3.01
for the Securities of the relevant series and (ii) for any conversion of
Dollars into any Foreign Currency or for any conversion of one Foreign Currency
into Dollars or another Foreign Currency, the spot rate at noon local time in
the relevant market at which, in accordance with normal banking procedures, the
Dollars or Foreign Currency into which conversion is being made could be
purchased with the Dollars or Foreign Currency from which conversion is being
made from major banks located in either New York City, New York, London,
England, or any other principal market for Dollars or such Foreign Currency, in
each case determined by the Issuer or the Currency Determination Agent.  In the event of the unavailability of any of
the exchange rates provided for in the foregoing clauses (i) and (ii), the
Issuer or the Currency Determination Agent shall use, in its sole discretion
and without liability on its part, such quotation of the Federal Reserve Bank
of New York as of the most recent available date, or quotations from one or
more major banks in New York City, New York, London, England, or other
principal market for such currency or currency unit in question, or such other
quotations as the Issuer or the Currency Determination Agent shall deem
appropriate.  Unless otherwise specified
by the Issuer or the Currency Determination Agent, if there is more than one
market for dealing in any currency or currency unit by reason of foreign
exchange regulations or otherwise, the market to be used in respect of such
currency or currency unit shall be that upon which a nonresident issuer of
securities designated in such currency or currency unit would purchase such
currency or currency unit in order to make payments in respect of such
securities.  For purposes of this
definition, a “nonresident issuer” shall mean an issuer that is not a resident
of the country or countries that issue such currency or whose currencies are
included in such currency unit.

 

9

 

“Maturity”, when used with respect to any
Security, means the date, if any, on which the principal (or, if the context so
requires, lesser amount in the case of Discounted Securities) of (or premium,
if any, on) that Security becomes due and payable as therein or herein
provided, whether at the Stated Maturity or by declaration of acceleration,
call for redemption, request for redemption, repayment at the option of the
holder, pursuant to any sinking fund provisions or otherwise; provided, however, that, unless otherwise
provided with respect to the Dated Subordinated Debt Securities of any series,
if the Issuer does not pay all or any part of principal (or any premium or
interest thereon) at Maturity (other than principal due by declaration of
acceleration), the obligation to make such payment and such Maturity shall be
deferred until the Deferred Principal Payment Date (it being understood for the
avoidance of doubt that any such deferral shall take place only once with
respect to any payment).

 

“OECD” means the Organisation for
Economic Co-operation and Development.

 

“Officers’ Certificate” means a
certificate of the Issuer signed by (i) any two of its chairman of the
board, deputy chairman of the board, group chief executive officer, treasurer,
group finance director or director group finance and risk or (ii) any one
of the foregoing Persons together with any group secretary or deputy group
secretary of the Issuer and delivered in form and substance reasonably
acceptable to the Subordinated Trustee for the Securities of any series in
accordance with the provisions of this Subordinated Indenture.

 

“Opinion of Counsel” means a written
opinion of outside legal counsel, in form and substance and by counsel, both
reasonably acceptable to the Subordinated Trustee for the Securities of any
series and who may be regular outside counsel to the Issuer.

 

“Optional Interest Payment Date” shall
mean, unless otherwise set forth in the applicable Board Resolution or
supplemental indenture executed pursuant to Section 3.01 hereof
establishing the terms of a series of Securities, (a) in respect of the
Perpetual Subordinated Capital Securities, an Interest Payment Date on which
the Issuer has determined that (i) the Capital Adequacy Condition will not
be met on such date, (ii) it is required under the terms of any Parity
Security not to pay the relevant interest payment or (iii) if applicable,
the events specified in the applicable Board Resolution or supplemental
indenture executed pursuant to Section 3.01 hereof related to such series
of Perpetual Subordinated Capital Securities have occurred; (b) in respect
of the Perpetual Subordinated Debt Securities, an Interest Payment Date on
which the Issuer has elected not to defer interest payments in accordance with Section 3.07;
or (c) in respect of the Dated Subordinated Debt Securities and if such
deferral option is specified in the applicable Board Resolution or supplemental
indenture executed pursuant to Section 3.01 hereof establishing the terms
of a series of Dated Subordinated Debt Securities, an Interest Payment Date on
which the Issuer has elected not to defer interest payments in accordance with Section 3.07.

 

10

 

“ordinary shares” means
ordinary shares of Prudential plc having, at the date hereof, a par value of
five pence each.

 

“Outstanding”, when used with respect to
Securities, means, as of the date of determination, all Securities which have
been authenticated and delivered under this Subordinated Indenture, except:

 

(1)           Securities which have been cancelled by
the Subordinated Trustee for such Securities or delivered to such Subordinated
Trustee for cancellation;

 

(2)           Securities or portions thereof for whose
payment or redemption money in the necessary amount and in the required
currency or currency unit has been deposited with the Subordinated Trustee for
such Securities or any Paying Agent (other than the Issuer, or any other
obligor upon the Securities) in trust or set aside and segregated in trust by
the Issuer, or any other obligor upon the Securities (if the Issuer or any
other obligor upon the Securities shall act as its own Paying Agent) for the
Holders of such Securities; provided, however,
that, if such Securities or portions thereof are to be redeemed, notice of such
redemption has been duly given pursuant to this Subordinated Indenture, or
provision therefor satisfactory to such Subordinated Trustee has been made
unless, in each case, there is a default in such payment or redemption; and

 

(3)           Securities which have been paid pursuant
to Section 3.06 or in exchange for or in lieu of which other Securities
have been authenticated and delivered pursuant to this Subordinated Indenture,
other than any such Securities in respect of which there shall have been
presented proof reasonably satisfactory to the Subordinated Trustee for such
Securities that any such Securities are held by bona fide holders in due course;

 

 provided, however, that in determining whether the Holders of the requisite
aggregate principal amount of Outstanding Securities have given any request,
demand, authorization, direction, notice, consent or waiver or taken any other
action hereunder (a) Securities owned by the Issuer, or any other obligor
upon the Securities or any Affiliate of the Issuer, or such other obligor shall
be disregarded and deemed not to be Outstanding, except that, (i) in
determining whether the Subordinated Trustee for such Securities shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent, waiver or action, only Securities which a Responsible Officer
of such Subordinated Trustee actually knows to be so owned shall be so
disregarded and (ii) Securities so owned which have been pledged in good
faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of such Subordinated Trustee the pledgee’s right so to act with
respect to such Securities and that the pledgee is not the Issuer, or any other
obligor upon the Securities or any Affiliate of the Issuer, or of such other
obligor and (b) the principal amount of a Discounted Security that shall
be deemed to be Outstanding for such purposes shall be equal to the amount of
the principal thereof that would be due and payable as of the date of such
determination upon a declaration of acceleration pursuant to Section 5.02.

 

11

 

“Parity Securities” means, with respect
to a particular series of Securities, unless otherwise provided in the applicable
Board Resolution or supplemental indenture executed pursuant to Section 3.01
hereof establishing the terms of such series of Securities and (in the case of
the Dated Subordinated Debt Securities) to which the interest deferral option
applies, the Issuer’s perpetual capital instruments, preferred or Preference
Shares or other securities issued by it together with any securities issued by
a Subsidiary where such securities benefit from a guarantee or support
agreement from the Issuer, the claims of the holders of which rank pari passu with such Securities, as the
case may be, as to rights to and participation in the assets of the Issuer in
the event of liquidation or winding up of the Issuer.

 

“Paying Agent” means any Person
authorized by the Issuer to pay the principal of (and premium, if any, on),
interest, Deferred Interest, if any, or any additional amounts in respect of,
any Securities on behalf of the Issuer and shall include the Subordinated
Trustee.

 

“Payment Default” has the meaning
specified in Section 5.03(a).

 

“Payment Event” has the meaning specified
in Section 5.03(d).

 

“Perpetual Security Default” has the
meaning specified in Section 5.03(b).

 

“Perpetual Subordinated Capital Securities”
means securities of the Issuer evidencing unsecured subordinated indebtedness
of the Issuer authenticated and delivered under this Subordinated Indenture,
which have no fixed Stated Maturity for the payment of principal or Redemption
Date, to which the subordination provisions of Section 13.01(e) apply,
and which have such further terms as are established pursuant to a Board
Resolution or supplemental indenture executed pursuant to Section 3.01
hereof.

 

“Perpetual Subordinated Debt Securities”
means securities evidencing unsecured subordinated indebtedness of the Issuer
authenticated and delivered under this Subordinated Indenture, which have no
fixed Stated Maturity for the payment of principal or Redemption Date, to which
the subordination provisions of Section 13.01(d) apply, and which
have such further terms as are established pursuant to a Board Resolution or
supplemental indenture executed pursuant to Section 3.01 hereof.

 

“Person” means any individual,
corporation, partnership, joint venture, association, joint-stock company,
trust, unincorporated organization or government or any agency or political
subdivision thereof or any other entity.

 

“Place of Payment”, when used with
respect to the Securities of any series, means the place or places where the
principal of (and premium, if any, on) and interest and Deferred Interest, if
any, on, and any additional amounts in respect of, the Securities of that
series are payable, as contemplated by Section 3.01.

 

“Predecessor Security” of any particular
Security means every previous Security evidencing all or a portion of the same
debt as that evidenced by that particular Security, and, for the purposes of
this definition, any Security authenticated and delivered 

 

12

 

under Section 3.06 in lieu of a mutilated,
destroyed, lost or stolen Security shall be deemed to evidence the same debt as
the mutilated, lost, destroyed or stolen Security.

 

“Preference Shares” means an authorized series of
preference shares of the Issuer for which, if applicable to a particular series
of Securities, the Issuer may convert or exchange any series of Securities.

 

“Redemption Date”, when used with respect
to any Security to be redeemed in whole or in part, means the date fixed for
such redemption by or pursuant to this Subordinated Indenture; provided, however, that, unless otherwise
provided with respect to the Securities (other than Perpetual Subordinated
Capital Securities) of any series, if the Issuer does not pay all or any part
of principal (or any premium or interest thereon) on the Redemption Date, the
obligation to make such payment on such Redemption Date shall be deferred until
the Deferred Principal Payment Date (it being understood for the avoidance of
doubt that any such deferral shall take place only once with respect to any
payment).

 

“Redemption Price”, when used with
respect to any Security to be redeemed, means, unless otherwise specified in
the Securities of a series, the aggregate of the amounts payable on redemption
being the principal amount thereof plus accrued interest thereon, including any
Deferred Interest.

 

“Registered Security” means any Security
established pursuant to Section 2.01 which is registered in the Security
Register.

 

“Regular Record Date” for the interest
payable on any Interest Payment Date on the Securities of any series, means the
date, if any, specified for that purpose as contemplated by Section 3.01.

 

“Regulatory Capital Requirement” means
any minimum or notional margin of solvency or minimum regulatory capital or
capital ratios required for insurance companies, insurance holding companies or
financial groups by the Financial Services Authority or any successor
regulatory body.

 

“Regulatory Event”, with respect to Dated
Subordinated Debt Securities, Perpetual Subordinated Debt Securities and
Perpetual Subordinated Capital Securities of any series, shall be deemed to
have occurred if (i) the Dated Subordinated Debt Securities, Perpetual
Subordinated Debt Securities and Perpetual Subordinated Capital Securities of
such series would not be of a kind capable of counting (except where such
non-qualification is only as a result of any applicable limitation on the
amount of such capital) as cover for the minimum or notional margin of solvency
or minimum capital or capital ratios required of the Issuer or the Group by any
Regulatory Capital Requirement as a result of any change to the Capital
Regulations or the application or official interpretation thereof on or after
the date of issue of the relevant series of Securities, or, in the case of (ii) to
(v) inclusive below, if specified in the Board Resolution or supplemental
indenture executed pursuant to Section 3.01 hereof establishing the terms
of a series of Securities; (ii) (in relation to Dated Subordinated Debt
Securities and 

 

13

 

Perpetual Subordinated Debt Securities) at any time on
or after the issue of such Securities, the Issuer or the Group is required
under any Regulatory Capital Requirement to have Tier 2 Capital, such
Securities would no longer be eligible to qualify (save as aforesaid in (i))
for inclusion in the Issuer’s Lower Tier 2 Capital or, as the case may be,
Upper Tier 2 Capital on an unconsolidated and/or consolidated basis; or (iii) (in
relation to Perpetual Subordinated Capital Securities) at any time on or after
the issue of such Securities, the Issuer or the Group is required under any
Regulatory Capital Requirement to have Tier 1 Capital, such Securities would no
longer be eligible to qualify (save as aforesaid in (i)) for inclusion in the
Issuer’s Tier 1 Capital on an unconsolidated and/or consolidated basis; or (iv) (in
relation to Dated Subordinated Debt Securities and Perpetual Subordinated Debt
Securities) at any time on or after the issue of such Securities, the Issuer or
the Group is required under any Regulatory Capital Requirement to have Tier 2
Capital and the Issuer would be entitled to substitute such Dated Subordinated
Debt Securities and Perpetual Subordinated Debt Securities for Preference
Shares, such Preference Shares would no longer be of a kind eligible to qualify
(save as aforesaid in (i)) for inclusion in the Issuer’s Lower Tier 2 Capital
or, as the case may be, Upper Tier 2 Capital on an unconsolidated and/or
consolidated basis; or (v) (in relation to Perpetual Subordinated Capital
Securities) at any time on or after the issue of such Perpetual Subordinated
Capital Securities, the Issuer or the Group is required under any Regulatory
Capital Requirement to have Tier 1 Capital and the Issuer would be entitled to
substitute such Perpetual Subordinated Capital Securities for Preference
Shares, such Preference Shares would no longer be of a kind eligible to qualify
(save as aforesaid in (i)) for inclusion in the Issuer’s Tier 1 Capital on an
unconsolidated and/or consolidated basis..

 

“Responsible Officer”, when used with
respect to the Subordinated Trustee for any series of Securities, means any
managing director, director, vice president (whether or not designated by a
number or a word or words added before or after the title “vice president”) or
trust officer or any other officer associated with the corporate trust
department of such Subordinated Trustee customarily performing functions
similar to those performed by any of the above designated officers and also
means, with respect to a particular corporate trust matter, any other officer
to whom such matter is referred because of his knowledge of and familiarity
with the particular subject.

 

“Securities” means the Dated Subordinated
Debt Securities, the Perpetual Subordinated Debt Securities and the Perpetual
Subordinated Capital Securities.

 

“Security Register” and “Security Registrar” have the respective
meanings specified in Section 3.05.

 

“Senior Creditors” has with respect to (i) Dated
Subordinated Debt Securities, the meaning set forth in Section 13.01(c), (ii) Perpetual
Subordinated Debt Securities, the meaning specified in Section 13.01(d) and
(iii) Perpetual Subordinated Capital Securities, the meaning specified in Section 13.01(e).

 

“Senior Securities” means the securities
held by Senior Creditors in their capacity as such.

 

14

 

A “series” of Securities means all
Securities denoted as part of the same series authorized by or pursuant to a
particular Board Resolution or a particular indenture supplemental hereto.

 

“Solvency Condition” means, when used
with respect to any series of Securities, that (a) the Issuer is able to
pay its debts to its Senior Creditors (as such term is defined for such series
of Securities) as they fall due and (b) the Issuer’s total Assets exceed
its total Liabilities other than Liabilities to persons that are not Senior
Creditors (as such term is defined for such series of Securities) by at least
4% or such other percentage specified by the Financial Services Authority from
time to time as the Regulatory Capital Requirement (or such other percentage as
may be specified by the Issuer in the Board Resolution and Officers’
Certificate or supplemental indenture executed pursuant to Section 3.01
hereof establishing such series of Securities). 
The determination of whether the Solvency Condition has been satisfied
shall be made in accordance with Section 13.01(b) or as otherwise
provided in the Board Resolution or supplemental indenture establishing the
terms of such series of Securities.

 

“Special Record Date” for the payment of
any Defaulted Interest on the Securities of any series means a date fixed by
the Issuer for such series pursuant to Section 3.07.

 

“Specified Amount” has the meaning
specified in Section 3.11(h).

 

“Stated Maturity”, when used with respect
to any Security or any installment of principal thereof (or premium, if any,
thereon) or interest, if any, thereon, means the date, if any, specified in
such Security as the fixed date on which the principal of such Security (or
premium, if any, thereon) or such installment of principal (or premium, if any,
thereon) or interest is due and payable; provided, however,
that, unless otherwise provided with respect to the Securities of any series,
if the Issuer does not pay all or any part of principal (or any premium or
interest thereon) on the Stated Maturity, the obligation to make such payment
and such Stated Maturity shall be deferred until the Deferred Principal Payment
Date (it being understood for the avoidance of doubt that any such deferral
shall take place only once with respect to any payment).

 

“Stock Exchange,” unless specified otherwise with respect to any particular
series of Securities, means any stock exchange or securities association upon
which any Securities of that series are duly listed.

 

“Sterling” and the sign “£” mean United Kingdom Pounds Sterling.

 

“Subordinated Indebtedness” means all
indebtedness of the Issuer which by its terms is subordinated in the event of
the bankruptcy, winding up or liquidation of the Issuer in right of payment to
the claims of other unsubordinated creditors of the Issuer and so that, for the
purpose of this definition, indebtedness shall include all liabilities, whether
actual or contingent, under guarantees or indemnities.

 

“Subordinated Indenture” means this
instrument as it may from time to time be supplemented or amended by one or
more indentures supplemental hereto entered 

 

15

 

into pursuant to the applicable provisions hereof and,
unless the context otherwise requires, shall include the terms of a particular
series of Securities established as contemplated by Section 3.01.

 

“Subordinated Trustee” means the Person
named as the “Subordinated Trustee” in the first paragraph of this instrument
and, subject to the provisions of Article Six hereof, shall also include
its successors and assigns as Subordinated Trustee hereunder.  If there shall be at one time more than one
Subordinated Trustee hereunder, “Subordinated Trustee” shall mean each such
Subordinated Trustee and shall apply to each such Subordinated Trustee only
with respect to those series of Securities with respect to which it is serving
as Subordinated Trustee.

 

“Subsidiary,” unless
otherwise specified in the applicable Board Resolution or supplemental
indenture executed pursuant to Section 3.01 hereof establishing the terms
of any series of Securities, means a subsidiary undertaking of the Issuer,
within the meaning of Section 1162 of the Companies Act 2006 of Great
Britain.

 

“Substitute Date” has the meaning
specified in Section 5.16.

 

“Tax Call Event” has the meaning ascribed
to it in a Board Resolution or supplemental indenture executed pursuant to Section 3.01.

 

“Tax Event” means, unless otherwise
specified in the applicable Board Resolution or supplemental indenture executed
pursuant to Section 3.01 hereof establishing the terms of any series of
Securities, (a) following the fifth anniversary or, in the case of
Perpetual Subordinated Capital Securities, the tenth anniversary, of the
issuance of any series, a determination by the Issuer that:  (i) in making any interest payments or
Deferred Interest Payments on the Securities of any series, the Issuer has
paid, or will or would on the next Interest Payment Date be required to pay,
additional amounts required by Section 10.07 hereof and the same cannot be
avoided by using reasonable measures available to the Issuer; (ii) payments,
including any interest payments or Deferred Interest Payments, on the next
Interest Payment Date in respect of the relevant series of Securities would be
treated as “distributions” within the meaning of Section 209 of the Income
and Corporation Taxes Act 1988 of the United Kingdom (as amended, re-enacted or
replaced); or (iii) the Issuer would not be entitled to claim a deduction
in computing its U.K. taxation liabilities in respect of any interest payment
(including any Deferred Interest Payment) on the Securities of any Series or
the value of the deduction to the Issuer would be materially reduced; and (b) before
the fifth anniversary or, in the case of Perpetual Subordinated Capital
Securities, the tenth anniversary, of the issuance of any series, an event of
the type described in clause (a) occurring as a result of a Tax Law
Change, which change or amendment becomes effective or, in the case of a change
of law, is enacted on or after the date on which agreement is reached to issue
the Securities and such obligation cannot be avoided by the Issuer taking
reasonable measures available to it.

 

“Tax Law Change” means
any change in, or amendment to, the laws or regulations of the United Kingdom
or any political sub-division or any authority thereof 

 

16

 

or therein having power to tax (including any treaty
to which the United Kingdom is a party), or any change in the application or
official interpretation of such laws or regulations (including a change or
amendment resulting from a holding by a court or tribunal of competent
jurisdiction).

 

“Tier 1 Capital”
shall have the meaning given such term from time to time by the Financial
Services Authority.

 

“Tier 2 Capital” shall
have the meaning given such term from time to time by the Financial Services
Authority.

 

“Trust Indenture Act” means the U.S.
Trust Indenture Act of 1939, as amended by the Trust Indenture Reform Act of
1990, as in force at the date as of which this instrument was executed, except
as provided in Section 9.05.

 

“United Kingdom” and “U.K.” mean The United Kingdom of Great Britain and Northern
Ireland.

 

“United States” and “U.S.”
mean, unless otherwise specified with respect to the Securities of a series
pursuant to Section 3.01, the United States of America (including the
States and the District of Columbia), its territories, its possessions (which
include at the date of this Subordinated Indenture Puerto Rico, the U.S. Virgin
Islands, Guam, American Samoa, Wake Island and the Northern Mariana Islands)
and other areas subject to its jurisdiction.

 

“Upper Tier 2 Capital”
shall have the meaning given such term from time to time by the Financial
Services Authority.

 

“U.S. Government Obligations” means
non-callable (i) direct obligations (or certificates representing an
ownership interest in such obligations) of the United States for which its full
faith and credit are pledged or (ii) obligations of a Person controlled or
supervised by, and acting as an agency or instrumentality of, the United
States, the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation of the United States.

 

“Valuation Date” has the meaning
specified in Section 3.11(c).

 

“Yield to Maturity”, when used with
respect to any Discounted Security, means the yield to maturity, if any, set
forth in such Discounted Security.

 

SECTION 1.02.                Compliance Certificates and
Opinions.

 

Upon any application or request by the Issuer to the Subordinated
Trustee for any series of Securities to take any action under any provision of
this Subordinated Indenture, the Issuer shall furnish to such Subordinated
Trustee an Officers’ Certificate stating that all conditions precedent, if any,
provided for in this Subordinated Indenture relating to the proposed action
have been complied with, and an Opinion of Counsel stating that in the opinion
of such counsel all such conditions precedent, if any, have been 

 

17

 

complied with, provided that in the case of any such
application or request as to which the furnishing of such documents is
specifically required by any provision of this Subordinated Indenture relating
to such particular application or request the requirements hereof and thereof
may be satisfied by the same documents as contemplated by Section 1.03
such that no duplicate certificate or opinion need be furnished.

 

Every certificate (other than certificates provided pursuant to Section 10.04)
or opinion with respect to compliance with a condition or covenant provided for
in this Subordinated Indenture shall include the following (or such other
statements or information as the Subordinated Trustee may reasonably request):

 

(1)           a statement that each individual signing
such certificate or opinion has read such condition or covenant and the
definitions herein relating thereto;

 

(2)           a brief statement as to the nature and
scope of the examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based;

 

(3)           a statement that, in the opinion of each
such individual, he has made such examination or investigation as is necessary
to enable him to express an informed opinion as to whether or not such
condition or covenant has been complied with; and

 

(4)           a statement as to whether, in the opinion
of each such individual, such condition or covenant has been complied with.

 

SECTION 1.03.                Form of Documents
Delivered to Subordinated Trustee.

 

In any case where several matters are required to be certified by, or
covered by an opinion of, any of a number of specified Persons, it is not
necessary that all such matters be certified by, or covered by the opinion of,
only one such Person, or that they be so certified or covered by only one
document, but one such Person may certify or give an opinion with respect to
some matters and one or more other such Persons as to other matters, and any
such Person may certify or give an opinion as to such matters in one or several
documents.

 

Any certificate or opinion of an officer of the Issuer may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to matters upon which his certificate or opinion is based are
erroneous.

 

Any such certificate or opinion of counsel may be based, insofar as it
relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Issuer stating that the
information with respect to such factual matters is in the possession of the
Issuer unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.

 

18

 

Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Subordinated Indenture, they may, but need not, be
consolidated and form one instrument.

 

SECTION 1.04.                Acts of Holders;
Communication by Holders with Other Holders.

 

(a)           Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this
Subordinated Indenture to be given or taken by Holders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Holders in person or by an agent duly appointed in writing.  Except as herein otherwise expressly
provided, such action shall become effective when such instrument or
instruments are delivered to the Subordinated Trustee for the appropriate
series of Securities and, where it is hereby expressly required, to the
Issuer.  Such instrument or instruments
(and the action embodied therein and evidenced thereby) are herein sometimes
referred to as the “Act” of the Holders signing such instrument or
instruments.  Proof of execution of any
such instrument or of a writing appointing any such agent, or of the holding by
any Person of a Security, shall be sufficient for any purpose of this
Subordinated Indenture and (subject to Section 6.01) conclusive in favor
of the Subordinated Trustee for the appropriate series of Securities, the
Issuer and any agent of such Subordinated Trustee or the Issuer, if made in the
manner provided in this Section.

 

The Issuer may set at its discretion a record date for purposes of
determining the identity of Holders of Securities entitled to vote or consent
to any action by vote or consent authorized or permitted under this
Subordinated Indenture, but the Issuer shall have no obligation to do so.  If not set by the Issuer prior to the first
solicitation of Holders of Securities of such series made by any Person in
respect of any such action, or, in the case of any such vote, prior to such
vote, the record date for any such action or vote shall be the 30th day prior
to the first solicitation of such vote or consent or, if later, the date of the
most recent list of Holders furnished to the Subordinated Trustee prior to such
solicitation pursuant to Section 7.01. 
Upon the fixing of such a record date, those persons who were Holders of
Securities at such record date (or their duly designated proxies), and only
those persons, shall be entitled with respect to such Securities to take such
action by vote or consent or to revoke any vote or consent previously given,
whether or not such persons continue to be Holders after such record date.

 

(b)           The fact and date of the execution by any
Person of any such instrument or writing may be proved by the affidavit of a
witness of such execution or by the certificate of any notary public,
commissioner for oaths or other officer authorized by law to take
acknowledgements of deeds, certifying that the individual signing such
instrument or writing acknowledged to him the execution thereof.  Where such execution is by an officer of a
corporation or association or a member of a partnership, or an official of a
public or governmental body, on behalf of such corporation, association,
partnership or public or governmental body or by a fiduciary, such certificate
or affidavit shall also constitute sufficient proof of this authority.

 

19

 

(c)           The fact and date of the execution by any
Person of any such instrument or writing, or the authority of the Person
executing the same, may also be proved in any other manner which the
Subordinated Trustee for the appropriate series of Securities deems sufficient.

 

(d)           The principal amount and serial numbers
of Registered Securities held by any Person, and the date of holding the same,
shall be proved by the Security Register.

 

(e)           In determining whether the Holders of the
requisite aggregate principal amount of Outstanding Securities have given any
request, demand, authorization, direction, notice, consent or waiver under this
Subordinated Indenture, the principal amount of a Discounted Security that may
be counted in making such determination and that shall be deemed to be
Outstanding for such purposes shall be equal to the amount of the principal
thereof that would be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 5.02 at the time the taking of such
action by the Holders of such requisite aggregate principal amount is evidenced
to the Subordinated Trustee for such Securities.

 

(f)            Any request, demand, authorization,
direction, notice, consent, waiver or other action by the Holder of any
Security shall bind every future Holder of the same Security and the Holder of
every Security issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done, omitted or suffered to
be done by the Subordinated Trustee for such Securities, the Security
Registrar, any Paying Agent or the Issuer, in reliance thereon, whether or not
notation of such action is made upon such Security.

 

SECTION 1.05.                Notices, Etc., to
Subordinated Trustee or Issuer.

 

Any request, demand, authorization, direction, notice, consent, waiver
or Act of Holders or other document provided or permitted by this Subordinated
Indenture to be made upon, given or furnished to, or filed with:

 

(1)           the Subordinated Trustee for a series of
Securities by any Holder or the Issuer shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing to or with such
Subordinated Trustee at its Corporate Trust Office, Attention: Trust &
Securities Services – Corporates Team Deal Manager; or

 

(2)           the Issuer, by the Subordinated Trustee,
or any Holder shall be sufficient for every purpose hereunder (except as
provided in Section 5.03(g)) if (a) addressed to Prudential plc, “Attention:
Group Secretarial” and (b) in writing and mailed, first class postage
prepaid, or hand delivered, to the Issuer, addressed to it at the address of
its principal office specified in the first paragraph of this Subordinated
Indenture or at any other address previously furnished in writing to such
Subordinated Trustee by the Issuer or if sent by facsimile transmission
addressed to the Issuer at facsimile number +44 (0)20 7548 3739 or at any other
facsimile number previously furnished in writing to such Subordinated Trustee by
the Issuer.

 

20

 

SECTION 1.06.                Notice to Holders; Waiver.

 

Except as set forth in a supplemental indenture or a Board Resolution
pursuant to Section 3.01, where this Subordinated Indenture provides for
notice to Holders of a series of Registered Securities of any event, such
notice shall be given (unless otherwise expressly provided herein or in the
Securities of a series) in writing and mailed, first class postage prepaid, to
each Holder, at his address as it appears in the Security Register, not later
than the latest date, and not earlier than the earliest date, prescribed for
the giving of such notice.

 

In any case where notice to Holders of Registered Securities is given
by mail, neither the failure to mail such notice, nor any defect in any notice
so mailed, to any particular Holder of a Registered Security shall affect the
sufficiency of such notice with respect to other Holders.  Any notice mailed in the manner prescribed by
this Subordinated Indenture shall be deemed to have been given whether or not
received by any particular Holder.  In
case by reason of the suspension of regular mail service or by reason of any
other cause it shall be impracticable to give such notice to Holders of
Registered Securities by mail, then such notification as shall be made with the
approval of the Subordinated Trustee for such Securities shall constitute a
sufficient notification for every purpose hereunder.

 

Notwithstanding the first paragraph of this Section 1.06, if the entire
principal amount of the Securities of a series or a portion thereof is
represented by one or more global Securities held by a Depositary, all notices
with respect to such principal amount or portion thereof, as the case may be,
shall be sent to such Depositary or its nominee, as the Holder, and such
Depositary will communicate such notices to its participants in accordance with
its standard procedures.

 

Where this Subordinated Indenture provides for notice in any manner,
such notice may be waived in writing by the Person entitled to receive such
notice, either before or after the event, and such waiver shall be the
equivalent of such notice.  Waivers of
notice by Holders shall be filed with the Subordinated Trustee for such
Securities, but such filing shall not be a condition precedent to the validity
of any action taken in reliance upon such waiver.

 

A copy of any notice or communication sent by the Issuer to any Holder
of Securities shall also be provided to the Subordinated Trustee at the same
time in the manner provided for to the Subordinated Trustee under Section 1.05.

 

SECTION 1.07.                Conflict with Trust Indenture Act.

 

If any provision of this Subordinated Indenture limits, qualifies or
conflicts with a provision of the Trust Indenture Act that is required under
the Trust Indenture Act to be a part of and govern this Subordinated Indenture,
the latter provision shall control.  If
any provision of this Subordinated Indenture modifies or excludes any provision
of the Trust Indenture Act that may be so modified or excluded, the latter 

 

21

 

provision shall be deemed to apply to this
Subordinated Indenture as so modified or excluded, as the case may be.

 

SECTION 1.08.                Effect of Headings and Table of
Contents.

 

The Article and Section headings herein and the Table of
Contents are for convenience only and shall not affect the construction hereof.

 

SECTION 1.09.                Successors and Assigns.

 

All covenants and agreements in this Subordinated Indenture by the
Issuer shall bind its respective successors and assigns, whether so expressed
or not.

 

SECTION 1.10.                Separability Clause.

 

In any case any provision in this Subordinated Indenture or in the
Securities shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

 

SECTION 1.11.                Benefits of Subordinated
Indenture.

 

Nothing in this Subordinated Indenture or in the Securities, expressed
or implied, shall give to any Person, other than the parties hereto and their
successors hereunder, and the Holders of Securities, any benefit or any legal
or equitable right, remedy or claim under this Subordinated Indenture.

 

SECTION 1.12.                Governing Law.

 

This Subordinated Indenture and the Securities shall be governed by and
construed in accordance with the laws of the State of New York, except as
stated in Section 2.01 and except for Section 13.01, which shall be
governed by and construed in accordance with the laws of England.

 

SECTION 1.13.                Non-Business Day.

 

Unless otherwise specified in the Securities of a series, in any case
where any Interest Payment Date, Redemption Date, Event Date or Stated Maturity
of a Security of any particular series shall not be a Business Day at any Place
of Payment with respect to Securities of that series, then (notwithstanding any
other provision of this Subordinated Indenture) payment of principal (or, if
the context so requires, lesser amount in the case of Discounted Securities) of
(and premium, if any, on) and interest and Deferred Interest, if any, with
respect to such Security and the exchange or conversion of such Security need
not be made or occur at such Place of Payment on such date, but may be made or
occur on the next succeeding Business Day at such Place of Payment with the
same force and effect as such payment, or conversion or exchange, had occurred
on the Interest Payment Date, Redemption Date, Event Date, as the case may be,
or at the Stated Maturity; provided that no interest shall accrue for the
period from 

 

22

 

and after such Interest Payment Date, Redemption Date,
Event Date or Stated Maturity, as the case may be; and provided further, that if such next succeeding Business Day at any
Place of Payment would fall in the succeeding fiscal year of the Issuer,
payment may be made in full or such conversion or exchange may occur on the
immediately preceding Business Day at such Place of Payment with the same force
and effect as if made on the Interest Payment Date, Redemption Date, Event Date
or Stated Maturity, as the case may be.

 

SECTION 1.14.                Immunity of
Incorporators, Stockholders, Officers and Directors.

 

No recourse shall be had for the payment of the principal of (or
premium, if any, on), or interest or Deferred Interest, if any, on any Security
of any series, or for any claim based thereon, or upon any obligation, covenant
or agreement of this Subordinated Indenture or any indenture supplemental
hereto, or any Security, or because of any indebtedness evidenced thereby,
against any incorporator, stockholder, officer or director, as such, past,
present or future, of the Issuer or of any predecessor or successor
corporations thereto, either directly or indirectly through the Issuer or any
predecessor or successor corporations, whether by virtue of any constitution,
statute or rule of law or by the enforcement of any assessment or penalty
or otherwise; it being expressly agreed and understood that this Subordinated
Indenture and all the Securities of each series are solely corporate
obligations, and that no personal liability whatsoever shall attach to, or is
incurred by, any incorporator, stockholder, officer or director, past, present
or future, of the Issuer or of any predecessor or successor corporations
thereto, either directly or indirectly through the Issuer or any such
predecessor or successor corporations, because of the incurring of the
indebtedness hereby authorized or under or by reason of any of the obligations,
covenants or agreements contained in this Subordinated Indenture or in any of
the Securities of any series, as the case may be, or to be implied herefrom or
therefrom; and that all such personal liability is hereby expressly released
and waived as a condition of, and as part of the consideration for, the
execution of this Subordinated Indenture and the issuance of the Securities of
each series.

 

SECTION 1.15.                Certain Matters Relating to
Currencies.

 

Whenever any action or Act is to be taken hereunder by the Holders of
Securities denominated in different currencies or currency units, then for
purposes of determining the principal amount of Securities held by such
Holders, the aggregate principal amount of the Securities denominated in a
Foreign Currency or currency unit shall be deemed to be that amount of Dollars
that could be obtained for such principal amount on the basis of a spot rate of
exchange specified to the Subordinated Trustee for such series in an Exchange
Rate Officers’ Certificate or a Currency Determination Agent’s Certificate for
such Foreign Currency or currency unit into Dollars as of the date the taking
of such action or Act by the Holders of the requisite percentage in aggregate
principal amount of the Securities.

 

23

 

SECTION 1.16.                Language of Notices, Etc.

 

Any request, demand, authorization, direction, notice, consent, waiver
or other action required or permitted under this Subordinated Indenture shall
be in the English language, and any published notice may also be in an official
language of the country or province of publication.

 

SECTION 1.17.                Appointment of Agent for Service.

 

By the execution and delivery of this Subordinated Indenture, the
Issuer designates and appoints Jackson National Life Insurance Company at 1
Corporate Way, Lansing, Michigan 48951, as its authorized agent upon which
process may be served in any suit or proceeding arising out of or relating to
the Securities or this Subordinated Indenture which may be instituted in any
Federal or New York State Court located in the Borough of Manhattan, City and
State of New York but for that purpose only, and agrees that service of process
upon said Jackson National Life Insurance Company, directed to the attention of
Thomas J. Meyer and written notice of said service given by the Person serving
the same to it, addressed as provided in Section 1.05, shall be deemed in
every respect effective service of process upon it in any such suit or
proceeding in any Federal or State court in such Borough, City and State.  The Issuer hereby submits (for the purposes
of any such suit or proceeding) to the jurisdiction of any such court in which
any such suit or proceeding is so instituted, and irrevocably waives, to the fullest
extent it may lawfully do so, any objection it may have now or hereafter to the
laying of the venue of any such suit, action or proceeding in any such court
and irrevocably waives, to the fullest extent it may lawfully do so, any claim
that any such suit, action or proceeding brought in any such court has been
brought in an inconvenient forum.  Such
submission and waiver shall be irrevocable so long as any of the Securities
remain Outstanding and such appointment shall be irrevocable until the appointment
of a successor by the Issuer and such successor’s acceptance of such
appointment.  Upon such acceptance, the
Issuer shall notify the Subordinated Trustee of the name and address of such
successor.  The Issuer further agrees to
take any and all action, including the execution and filing of any and all such
documents and instruments, as may be necessary to continue such designation and
appointment of said Jackson National Life Insurance Company or its successor in
full force and effect so long as any of the Securities shall be Outstanding.  The Subordinated Trustee shall not be
obligated and shall have no responsibility with respect to any failure by the
Issuer to take any such action.

 

The Issuer agrees, to the fullest extent that it lawfully may do so,
that final judgment in any such suit, action or proceeding brought in such a
court shall be conclusive and binding upon the Issuer, and may be enforced in
the courts of England and Wales (or any other courts to the jurisdiction of
which the Issuer is subject) by a suit upon such judgment, provided that
service of process is effected upon the Issuer in the manner specified in the
foregoing paragraph or as otherwise permitted by law; provided, however, that the Issuer does
not waive, and the foregoing provisions of this sentence shall not constitute
or be deemed to constitute a waiver of, (i) any right to appeal any such
judgment, to seek any stay or otherwise to seek reconsideration or review of
any such judgment, (ii) any stay of execution or levy pending an appeal
from, or a suit, action 

 

24

 

or proceeding for reconsideration of, any such
judgment, or (iii) any other right or remedy of the Issuer to the extent
not expressly waived in accordance with this Section 1.17.

 

Notwithstanding the foregoing, any actions arising out of or relating
to the Securities or this Subordinated Indenture may be instituted by any party
hereto and, subject to the limitations set forth in Article Five of this
Subordinated Indenture, by the Holder of any Security in any competent court in
England.

 

Nothing in this Section shall affect the right of the Subordinated
Trustee or any Holder of any Security to serve process in any manner permitted
by applicable law or limit the right of the Subordinated Trustee or any Holder
of any Security to bring proceedings against the Issuer in the courts of any
other jurisdiction or jurisdictions.

 

SECTION 1.18.                Rules by the Subordinated
Trustee.

 

The Subordinated Trustee may make reasonable rules for action by
or at a meeting of Holders.

 

ARTICLE
TWO

SECURITY FORMS

 

SECTION 2.01.                Forms of Securities.

 

The Registered Securities of each series shall be in such form or forms
as shall be established by or pursuant to a Board Resolution or in an indenture
supplemental hereto, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Subordinated Indenture or any indenture supplemental hereto and may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with any law, with any
rule or regulation made pursuant thereto, with any rules of any
securities exchange or any automated quotation system or to conform to usage,
as may, consistently herewith, be determined by the officers executing such
Securities.  Such execution of such
Securities shall be conclusive evidence as regards the Issuer as to any such
determination by the Issuer.

 

Each Security issued hereunder shall have endorsed thereon a statement
in the following form or in substantially the following form:

 

THE RIGHTS OF THE HOLDER OF THIS SECURITY ARE, TO THE EXTENT AND IN THE
MANNER SET FORTH IN SECTION 13.01 OF THE SUBORDINATED INDENTURE
HEREINAFTER REFERRED TO, SUBORDINATED TO THE CLAIMS OF OTHER CREDITORS OF THE
ISSUER AND THIS SECURITY IS ISSUED SUBJECT TO THE PROVISIONS OF THAT SECTION 13.01,
AND THE HOLDER OF THIS SECURITY BY ACCEPTING THE SAME, AGREES TO AND SHALL BE
BOUND BY SUCH PROVISIONS.  THE PROVISIONS
OF SECTION 13.01 OF THE SUBORDINATED INDENTURE AND 

 

25

 

THE TERMS OF THIS PARAGRAPH SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH ENGLISH LAW.

 

The definitive Securities shall be printed, lithographed or engraved or
produced by any combination of these methods or may be produced in any other
manner, all as determined by the officers executing such Securities.  Such execution of such definitive Securities
shall be conclusive evidence as regards the Issuer as to any such determination
made by the Issuer.

 

SECTION 2.02.                Form of Certificate of
Authentication.

 

Unless otherwise specified as contemplated by Section 3.01, the
Certificate of Authentication on all Securities shall be in substantially the
following form:

 

“This is one of the Securities of the series designated in, and
referred to in, the Subordinated Indenture described herein.

 

 

	
   

  	
  DEUTSCHE BANK TRUST
  COMPANY

  AMERICAS

  
	
   

  	
  as Subordinated Trustee

  By: Deutsche Bank National Trust Company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
  Date:

  

 

SECTION 2.03.                Securities in Global Form.

 

If any Security of a series is issuable in global form, such Security
may provide that it shall represent the aggregate amount of Outstanding
Securities from time to time endorsed thereon and may also provide that the
aggregate amount of Outstanding Securities represented thereby may from time to
time be increased or reduced to reflect exchanges.  Any endorsement of a Security in global form
to reflect the amount, or any increase or decrease in the amount, of
Outstanding Securities represented thereby shall be made by the Subordinated
Trustee or Security Registrar and in such manner as shall be specified in such
Security.  Any instructions by the Issuer
with respect to a Security in global form, after its initial issuance, shall be
in writing but need not comply with Section 1.02.

 

Global Securities may be issued in registered form.

 

26

 

Unless otherwise specified in the Securities of a series, every global
Registered Security authenticated and delivered hereunder shall bear a legend
in substantially the following form:

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE SUBORDINATED
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY TRUST COMPANY OR A NOMINEE THEREOF. 
UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES
IN DEFINITIVE REGISTERED FORM IN ACCORDANCE WITH THE TERMS HEREOF AND OF
THE INDENTURE, TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS
IN WHOLE, BUT NOT IN PART, TO NOMINEES OF THE DEPOSITORY TRUST COMPANY OR TO A
SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE OR TO THE DEPOSITORY TRUST
COMPANY OR A SUCCESSOR THEREOF BY A NOMINEE OF THE DEPOSITORY TRUST COMPANY OR
A SUCCESSOR THEREOF AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
SUBORDINATED INDENTURE.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH
OTHER ENTITY AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

 

ARTICLE
THREE

THE SECURITIES

 

SECTION 3.01.                Title; Payment and Terms.

 

The aggregate principal amount of Securities which may be authenticated
and delivered and Outstanding under this Subordinated Indenture is
unlimited.  The Securities may be issued
up to the aggregate principal amount of Securities from time to time authorized
by or pursuant to a Board Resolution of the Issuer.

 

The Securities may be issued in one or more series.  There shall be established in one or more
Board Resolutions or pursuant to authority granted by one or more Board
Resolutions and, subject to Section 3.03, set forth in, or determined in
the 

 

27

 

manner provided in, an Officers’ Certificate, or
established in one or more indentures supplemental hereto, prior to the
issuance of Securities of any series any or all of the following, as applicable
(each of which, if so provided, may be determined from time to time by the
Issuer with respect to unissued Securities of the series and set forth in such
Securities of the series when issued from time to time):

 

(1)           whether Securities of that series are to
be Dated Subordinated Debt Securities, Perpetual Subordinated Debt Securities
or Perpetual Subordinated Capital Securities;

 

(2)           the title of the Securities of that
series (which shall distinguish the Securities of that series from all other
series of Securities); if the Securities of that series will be in bearer
rather than registered form, the forms, procedures and mechanisms to be
employed in connection therewith; any limit upon the aggregate principal amount
of the Securities of that series which may be authenticated and delivered under
this Subordinated Indenture (except for Securities authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of, other
Securities of that series pursuant to Section 3.04, 3.05, 3.06, 9.06 or
11.07 and except for any Securities which, pursuant to Section 3.03, are
deemed never to have been authenticated and delivered hereunder);

 

(3)           the percentage or percentages of
principal amount at which the debt securities of the series will be issued;

 

(4)           certain dates or periods, including:  (a) the original issue date or dates or
periods during which the Securities of that series may be issued; (b) the
date or dates (or manner of determining the same) on which, or the range of
dates within which, the principal of (and premium, if any, on) the Securities
of that series is payable; and (c) the record dates, if any, for the
determination of Holders of Securities of such series to whom such principal
(and premium, if any) is payable;

 

(5)           information with regard to interest,
including:  (a) the rate or rates
per annum (or the manner of calculation thereof, including any provisions for
the increase or decrease of such rate or rates upon the occurrence of specific
events) at which the Securities of that series shall bear interest (if any), or
the discount, if any, at which any Discounted Securities may be issued; (b) the
date or dates from which such interest shall accrue; (c) the Interest
Payment Dates on which such interest shall be payable (or manner of determining
the same); (d) the Regular Record Date for the interest payable on any
Securities on any Interest Payment Date; and (e) the manner in which such
interest shall be paid (including whether such interest may be paid in
accordance with the Alternative Coupon Satisfaction Mechanism);

 

(6)           the place or places where, subject to the
provisions of Section 10.02:  (a) the
principal of (and premium, if any, on) and interest or Deferred Interest, if
any, on Securities of that series shall be payable; (b) any Registered
Securities of that series may be surrendered for registration of transfer, any
Securities of that series may be 

 

28

 

surrendered for exchange; and (c) notices and
demands to or upon the Issuer in respect of the Securities of that series and
this Subordinated Indenture may be served;

 

(7)           the terms and conditions, if any, upon
which Securities of that series may be redeemed, purchased or repaid in whole
or in part, at the option of the Issuer or otherwise, including the period or
periods within which or manner of determining the same, the price or prices at
which or manner of determining the same, and the currency or currency unit in
which the Securities may be redeemed;

 

(8)           the right or obligation (which may be
fixed or contingent upon events), if any, of the Issuer to redeem, purchase or
repay Securities of that series pursuant to any sinking fund or analogous
provisions or at the option of a Holder thereof, and the period or periods
within which or manner of determining the same, the price or prices at which or
manner of determining the same, the currency or currency unit in which, and the
terms and conditions upon which, Securities of that series shall be redeemed,
purchased or repaid, in whole or in part, pursuant to such obligation;

 

(9)           the terms and conditions, if any, upon
which Securities of that series may be converted or exchanged into Preference
Shares;

 

(10)         the minimum denomination or denominations
in which any Registered Securities of that series shall be issuable if other
than integral multiples of $1,000;

 

(11)         with respect to Securities other than
Perpetual Subordinated Debt Securities or Perpetual Subordinated Capital
Securities, if other than the principal amount thereof, the portion of the
principal amount of Securities of that series which shall be payable upon a
redemption prior to Maturity or a declaration of acceleration of the Maturity
thereof pursuant to Section 5.02;

 

(12)         any additional covenants or agreements
with respect to Securities of that series or whether any covenants or
agreements in this Subordinated Indenture shall not apply or the extent to
which such covenants or agreements shall apply or be modified, supplemented or
replaced;

 

(13)         if other than as set forth in this
Subordinated Indenture, any additional or differing provisions, if any, with
respect to Deferred Interest, Events of Default, Payment Defaults, Perpetual
Security Defaults, Payment Events, Tax Events, Regulatory Events, Junior
Securities, Parity Securities and subordination, together with details for any
indemnification or application of alternative coupon satisfaction mechanisms
through the issuance of ordinary shares or otherwise (including the Events of
Default, Payment Defaults, Perpetual Security Defaults and Payment Events
described in Sections 5.01 and 5.03) and any covenants or agreements of the
Issuer with respect to the Securities of that series, whether or not such
Events of Default, Payment Defaults, Perpetual Security Defaults or Payment
Events or covenants or agreements are consistent with the Events of Default,
Payment Defaults, Perpetual Security Defaults or Payment Events or covenants or
agreements set forth herein;

 

29

 

(14)         if a Person other than Deutsche Bank
Trust Company Americas is to act as Subordinated Trustee for the Securities of
that series, the name and location of the Corporate Trust Office of such
Subordinated Trustee and, with respect to Securities of that Series, if a
person other than the applicable trustee, in its capacity as principal payment
agent for the debt securities, is to act as such agent, the name and location
of the principal office of such principal paying agent;

 

(15)         if other than Dollars, the currency or
currency unit in which payment of the principal of (and premium, if any, on)
and interest or Deferred Interest, if any, on the Securities of that series
shall be made or in which the Securities of that series shall be denominated
and the particular provisions applicable thereto in accordance with, in
addition to or in lieu of the provisions of Section 3.11;

 

(16)         if the principal of (and premium, if any,
on) and interest and Deferred Interest, if any, on the Securities of that
series are to be payable, at the election of the Issuer or a Holder thereof, in
a currency or currency unit other than that in which such Securities are
denominated or stated to be payable, in accordance with provisions in addition
to, in lieu of or in accordance with the provisions of Section 3.11, the
period or periods within which (including the Election Date), and the terms and
conditions upon which, such election may be made, and the time and manner of
determining the exchange rate between the currency and currency unit in which
such Securities are denominated or stated to be payable and the currency or
currency unit in which such Securities are to be so payable;

 

(17)         the designation of the original Currency
Determination Agent, if any, and in what circumstances a Currency Determination
Agent’s Certificate or an Exchange Rate Officers’ Certificate shall be
delivered for Securities of that series;

 

(18)         the index, if any, used to determine the
amount of payments of principal of (and premium, if any, on) and interest and
Deferred Interest, if any, on the Securities of that series;

 

(19)         if other than as set forth in Section 4.01,
provisions for the satisfaction and discharge of this Subordinated Indenture
with respect to the Securities of that series;

 

(20)         if the amount of payments of principal of
(and premium, if any, on) and interest and Deferred Interest, if any, on the
Securities of that series may be determined, at the election of the Issuer or a
Holder thereof, with reference to an index based on a currency or currency unit
other than that in which such Securities are denominated or stated to be
payable or any other index, the manner in which such amounts shall be
determined;

 

(21)         the date as of which any global Security
representing Outstanding Securities of that series shall be dated if other than
the date of original issuance of the first Security of that series to be
issued;

 

30

 

(22)         the application, if any, of Sections
10.07 and 11.08 to the Securities of that series;

 

(23)         the form of the Securities of that series
(including the terms and conditions of such Securities);

 

(24)         whether the Securities of the series
shall be issued in whole or in part in the form of a global Security or Securities
and, in such case, the Depositary for such global Security or Securities;

 

(25)         whether any legends shall be stamped or
imprinted on all or a portion of the Securities of such series, and the terms
and conditions upon which any such legends may be removed;

 

(26)         in the case of any series of Perpetual
Subordinated Capital Securities and any series of Perpetual Subordinated Debt
Securities, the particular terms of such series, including those relating to
the Optional Interest Payment Dates, Alternative Coupon Satisfaction Mechanism,
Definitive Suspension, optional redemption, and such other terms relating to
Deferred Interest, Events of Default, Perpetual Security Defaults, Payment
Events, Tax Events, Tax Call Events, Regulatory Events, Senior Securities,
Junior Securities, Parity Securities and subordination;

 

(27)         in the case of any series of Dated
Subordinated Debt Securities, any additional terms relating to the deferral of
interest;

 

(28)         whether the Securities of the series
shall be convertible or exchangeable into Preference Shares at the option of
the Issuer pursuant to Article Fourteen; the dates on which of such
conversion or exchange may occur the date upon which the Issuer opts to
exchange or convert the Securities being referred to as (the “Event Date”); and
the nature of the Preference Shares and any additional or other provisions
relating to such conversion or exchange; and

 

(29)         any other terms of that series (which
terms shall be consistent with the provisions of this Subordinated Indenture
except as such terms are otherwise expressly provided for in an applicable
Board Resolution or supplemental indenture executed hereunder with respect to
such series).

 

All Securities of any particular series shall be identical except as to
authentication date, public offering price, denomination and issue date except
as may otherwise be provided in or pursuant to such Board Resolutions and set
forth in such Officers’ Certificates relating thereto or provided in or
pursuant to any supplemental indenture hereto (provided that the Securities of
a series shall be fungible with all other Securities of such series).  The terms of such Securities may be
determined by the Issuer from time to time if so provided in or established
pursuant to the authority granted in the Board Resolutions.  All Securities of any one series need not be
issued at the same time, and unless otherwise provided, a series may be
reopened for issuance of additional Securities of such series.

 

31

 

If any of the terms of the Securities of a series are established by
action taken pursuant to one or more Board Resolutions, a copy of an
appropriate record of such action shall be certified by an appropriate officer
of the Issuer and delivered to the Subordinated Trustee at or prior to the
delivery of the Officers’ Certificate setting forth the terms of such
Securities.

 

Prior to the delivery of a Security of any series in any such form to
the Subordinated Trustee for authentication, the Issuer shall deliver to the
Subordinated Trustee (and the Subordinated Trustee shall be fully protected in
relying upon) the following:

 

(1)           the Board Resolution of the Issuer and,
if applicable, the supplemental indenture by or pursuant to which such form of
Security to be endorsed thereon have been approved;

 

(2)           an Officers’ Certificate of the Issuer
dated the date such certificate is delivered to the Subordinated Trustee
stating that all conditions precedent provided for in this Subordinated
Indenture relating to the authentication and delivery of such Securities in
such form have been complied with; and

 

(3)           an Opinion of Counsel stating that each
of the Securities when (a) completed by appropriate insertions and
executed and delivered by the Issuer to the Subordinated Trustee for
authentication in accordance with this Subordinated Indenture, (b) authenticated
(if appropriate) and delivered by the Subordinated Trustee in accordance with
this Subordinated Indenture within the authorization as to aggregate principal
amount established from time to time by the Board of Directors of the Issuer
and (c) sold in the manner specified in such Opinion of Counsel, will be
the valid, binding and enforceable obligations of the Issuer subject to
applicable bankruptcy, reorganization, insolvency, moratorium and other laws
relating to or affecting creditors’ rights generally, to general equitable
principles, to an implied covenant of good faith and fair dealing and to such
other qualifications as such counsel shall conclude do not materially affect
the rights of Holders of such Securities.

 

SECTION 3.02.                Denominations and Currencies.

 

Unless otherwise provided with respect to any series of Securities as
contemplated by Section 3.01, any Registered Securities of a series shall
be issuable in denominations of $1,000 and any integral multiple thereof.

 

SECTION 3.03.                Execution,
Authentication, Delivery and Dating.

 

The Securities shall be executed on behalf of the Issuer by any two of
its directors or by one director and the group secretary of the Issuer.  The signature of any of these officers on the
Securities may be manual or facsimile or, as and to the extent required by the
Depositary, manual.

 

Securities bearing the manual or facsimile signatures of individuals
who were at any time the proper officers of the Issuer shall bind the Issuer,
notwithstanding 

 

32

 

that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Securities
or did not hold such offices at the date of such Securities.

 

At any time and from time to time after the execution and delivery of
this Subordinated Indenture, the Issuer may deliver Securities of any series as
executed by the Issuer to the Subordinated Trustee for the Securities of such
series for authentication, together with an Issuer Order for the authentication
and delivery of such Securities, and such Subordinated Trustee, in accordance
with such Issuer Order, shall authenticate and deliver such Securities.  If any Security shall be represented by a
global Security, then, for purposes of this Section and Section 3.04,
the notation of a beneficial owner’s interest therein upon original issuance of
such Security shall be deemed to be delivered in connection with the original
issuance of such beneficial owner’s interest in such global Security.  If all the Securities of any one series are
not to be issued at one time and if a Board Resolution or indenture
supplemental hereto relating to such Securities shall so permit, such Issuer
Order may set forth procedures acceptable to the Subordinated Trustee for the
issuance of such Securities, including without limitation, procedures with
respect to interest rate, Stated Maturity, if any, date of issuance and date from
which interest, if any, shall accrue. 
Such procedures may authorize authentication and delivery pursuant to
oral or electronic instruction from the Issuer or its duly authorized agent.

 

Notwithstanding any contrary provision herein, if all Securities of a
series are not to be originally issued at one time, it shall not be necessary
to deliver the Board Resolution and/or indenture supplemental hereto, Officers’
Certificate and Opinion of Counsel otherwise required pursuant to Sections 1.02
and 3.01 at or prior to the time of authentication of each Security of such
series if such documents are delivered at or prior to the authentication upon
original issuance of the first Security of such series to be issued.

 

Each Registered Security shall be dated the date of its authentication.

 

No Security shall be entitled to any benefit under this Subordinated
Indenture or be valid or obligatory for any purpose unless there appears on
such Security a certificate of authentication substantially in the form
provided for herein executed by manual signature by the Subordinated Trustee
for such Security or in the name of any Authenticating Agent pursuant to Section 3.14,
and such certificate upon any Security shall be conclusive evidence, and the
only evidence, that such Security has been duly authenticated and delivered
hereunder.  Notwithstanding the
foregoing, if any Security shall have been authenticated and delivered
hereunder but never issued and sold by the Issuer, and the Issuer shall deliver
such Security to the Subordinated Trustee for cancellation as provided in Section 3.09,
for all purposes of this Subordinated Indenture such Security shall be deemed
never to have been authenticated and delivered hereunder and shall never be
entitled to the benefits of this Subordinated Indenture.

 

In case any Securities shall have been authenticated, but not
delivered, by the Subordinated Trustee for such series then in office, any
successor Subordinated Trustee may adopt such authentication and deliver the
Securities so authenticated with 

 

33

 

the same effect as if such successor Subordinated
Trustee had itself authenticated such Securities.

 

Any global Security shall, unless otherwise provided therein, be
delivered to a Depositary designated pursuant to Section 3.01.  Each Depositary designated pursuant to Section 3.01
for a global Security must at the time of its designation and at all times
while it serves as such Depositary be a clearing agency registered under the
Exchange Act and any other applicable statute or regulation.

 

The Subordinated Trustee shall have the right to decline to
authenticate and deliver any Securities if the Subordinated Trustee, being
advised by counsel, determines that such action may not lawfully be taken or if
the Subordinated Trustee in good faith shall determine that such action would
expose the Subordinated Trustee to personal liability to existing Holders or
would affect the Subordinated Trustee’s own rights, duties or immunities under
the Securities, this Indenture or otherwise in a manner which is not reasonably
acceptable to the Subordinated Trustee acting in good faith.

 

SECTION 3.04.                Temporary Securities
and Exchange of Securities.

 

Pending the preparation of definitive Securities of any particular
series, the Issuer may execute, and upon an Issuer Order the Subordinated
Trustee for the Securities of such series shall authenticate and deliver, in
the manner specified in Section 3.03, temporary Securities which are
printed, lithographed, typewritten, photocopied or otherwise produced in any
authorized denomination, with like terms and conditions as the definitive
Securities of the series in lieu of which they are issued in registered form
and with such appropriate insertions, omissions, substitutions and other
variations as the officers executing such Securities may determine.  Such execution of such Securities shall be
conclusive evidence as regards the Issuer as to any such determination made by
the Issuer.

 

If temporary Securities of any particular series are issued, the Issuer
will cause definitive Securities of that series to be prepared without
unreasonable delay.  After the
preparation of such definitive Securities, the temporary Securities of such
series shall be exchangeable for such definitive Securities and of a like
Stated Maturity, if any, and with like terms and provisions upon surrender of
the temporary Securities of such series at the office or agency of the Issuer
in a Place of Payment for that series, without charge to the Holder.  Upon surrender for cancellation of any one or
more temporary Securities of any particular series, the Issuer shall execute
and (in accordance with an Issuer Order delivered at or prior to the
authentication of the first definitive Security of such series) the
Subordinated Trustee for the Securities of such series shall authenticate and
deliver in exchange therefor a like principal amount of definitive Securities
of authorized denominations of the same series and of a like Stated Maturity,
if any, and with like terms and provisions. 
Until exchanged as hereinabove provided, the temporary Securities of any
series shall in all respects be entitled to the same benefits under this
Subordinated Indenture as definitive Securities of the same series with like
terms and conditions, except where specified therein with respect to
certification requirements prior to payment of interest in certain cases.

 

34

 

SECTION 3.05.                Registration,
Registration of Transfer and Exchange.

 

The Issuer shall cause to be kept for the Registered Securities of each
series a security register (such security register or registers herein
sometimes collectively referred to as the “Security Register”) in which,
subject to such reasonable regulations as it may prescribe, the Issuer shall
provide for the registration of Registered Securities and of transfers of
Registered Securities.  Unless and until
otherwise determined by the Issuer, the Subordinated Trustee shall act as
Security Registrar (the “Security Registrar”) and the Security Register shall
be kept at the Corporate Trust Office of the Subordinated Trustee.  At all reasonable times the Security Register
shall be open for inspection by the Issuer and its duly authorized agents.  The Issuer may appoint co-Security
Registrars, provided that at any given time there shall be only one Security
Register with respect to a series of Securities.

 

Upon surrender for registration of transfer of any Registered Security
of any particular series at the office or agency of the Issuer in a Place of
Payment for that series, the Issuer shall execute, and upon an Issuer Order the
Subordinated Trustee for the Securities of each series shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Registered Securities of any authorized denominations, and of a like Stated
Maturity, if any, and of a like series and aggregate principal amount and with
like terms and conditions.

 

Except as set forth below, at the option of the Holder, Registered
Securities of any particular series may be exchanged for other Registered
Securities (and only Registered Securities) of any authorized denominations and
of a like Stated Maturity, if any, and of a like series and aggregate principal
amount and with like terms and conditions, upon surrender of the Registered
Securities to be exchanged at such office or agency.   Whenever any Securities are so surrendered
for exchange, the Issuer shall execute, and upon an Issuer Order the
Subordinated Trustee for such Securities shall authenticate and deliver the
Securities which the Holder making the exchange is entitled to receive.

 

Notwithstanding any other provision of this Section or Section 3.04,
unless and until it is exchanged in whole or in part for Registered Securities
in definitive form, a global Security representing all or a portion of the
Registered Securities of a series may not be transferred except as a whole by
the Depositary for such series to a nominee of such Depositary or by a nominee
of such Depositary to such Depositary or another nominee of such Depositary or
by such Depositary or any such nominee to a successor Depositary for such
series or a nominee of such successor Depositary.

 

If at any time the Depositary for Securities of a series in registered
form notifies the Issuer that it is unwilling or unable to continue as
Depositary for the Securities of such series or if at any time the Depositary
for the Securities for such series shall no longer be eligible under Section 3.03,
the Issuer shall appoint a successor Depositary with respect to the Securities
for such series.  If a successor
Depositary for the Securities of such series is not appointed by the Issuer
within 120 days after the Issuer receives such notice or becomes aware of such
ineligibility, the Issuer’s election pursuant 

 

35

 

to Section 3.01 shall no longer be effective with
respect to the Securities for such series and the Issuer will execute, and the
Subordinated Trustee, upon receipt of an Issuer Order from the Issuer for the
authentication and delivery of definitive Securities of such series, will
authenticate and deliver Securities of such series in definitive form, in an
aggregate principal amount equal to the principal amount of the global Security
or Securities representing such series in exchange for such global Security or
Securities.

 

The Issuer may at any time and in its sole discretion determine that
the Registered Securities of any series issued in the form of one or more
global Securities shall no longer be represented by such global Security.  In such event the Issuer will execute, and
the Subordinated Trustee, upon receipt of an Issuer Order from the Issuer for
the authentication and delivery of definitive Registered Securities of such
series, will authenticate and deliver Registered Securities of such series in
definitive form in an aggregate principal amount equal to the principal amount
of the global Security representing such series in exchange for such global Security.

 

If specified by the Issuer pursuant to Section 3.01 with respect
to a series of Securities in registered form, the Depositary for such series of
Securities may surrender a global Security for such series of Securities in
exchange in whole or in part for Securities of such series of like tenor and
terms, and in definitive form, on such terms as are acceptable to the Issuer
and such Depositary.  Thereupon the
Issuer shall execute, and the Subordinated Trustee, upon an Issuer Order, shall
authenticate and deliver, without service charge, (i) to each Person
specified by such Depositary a new Security or Securities of the same series,
of like tenor and terms and of any authorized denomination as requested by such
Person in aggregate principal amount equal to and in exchange for such Person’s
beneficial interest in the global Security; and (ii) to such Depositary a
new global Security of like tenor and terms and in a denomination equal to the
difference, if any, between the principal amount of the surrendered global
Security and the aggregate principal amount of Securities delivered to Holders
thereof.

 

Upon the exchange of a global Security for Securities in definitive
form, such global Security if so exchanged in its entirety shall, upon an
Issuer Order, be cancelled by the Subordinated Trustee.  Registered Securities issued in exchange for
a global Security pursuant to this Section 3.05 shall be registered in
such names and in such authorized denominations as the Depositary for such
global Security, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Subordinated Trustee in
writing.  The Subordinated Trustee shall
deliver, or cause to be delivered, such Registered Security to the persons in
whose names such Securities are so requested.

 

All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Issuer, evidencing the same
debt, and entitled to the same benefits under this Subordinated Indenture, as the
Securities surrendered upon such registration of transfer or exchange.

 

Every Security presented or surrendered for registration of transfer or
exchange shall (if so required by the Issuer or the Subordinated Trustee for
such Security) 

 

36

 

be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Issuer and the Security
Registrar for such series duly executed, by the Holder thereof or his attorney
duly authorized in writing.

 

No service charge shall be made for any registration of transfer or
exchange of Securities, but the Issuer may require payment by the Holder of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of such
Holder’s Securities, other than exchanges pursuant to Section 3.04, 9.06
or 11.07 not involving any transfer.

 

The Issuer shall not be required (i) to issue, register the
transfer of or exchange Securities of any series during a period beginning at
the opening of business 15 days before the day of the mailing of a notice of
redemption of Securities of that series selected for redemption under Section 11.04
and ending at the close of business on the day of mailing of the relevant
notice of redemption or (ii) to register the transfer of or exchange any
Security so selected for redemption as a whole or in part, except the
unredeemed portion of any Security being redeemed in part.

 

SECTION 3.06.                Mutilated, Destroyed,
Lost and Stolen Securities.

 

If (i) any mutilated Security is surrendered to the Subordinated
Trustee for such Security, or the Issuer and the Subordinated Trustee for a
Security receive evidence to their satisfaction of the destruction, loss or theft
of any Security and (ii) there is delivered to the Issuer and the
Subordinated Trustee such security or indemnity as may be required by them to
save each of them and any agent of either of them harmless, then, in the
absence of notice to the Issuer or the Subordinated Trustee that such Security
has been acquired by a bona fide
purchaser, the Issuer shall execute and upon its request the Subordinated
Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or
stolen Security or in exchange for such mutilated Security, a new Security of
the same series and in a like principal amount and of a like Stated Maturity,
if any, and with like terms and conditions and bearing a number not
contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Issuer in its discretion may,
instead of issuing a new Security, pay such Security (without surrender thereof
except in the case of a mutilated Security) if the applicant for such payment
shall furnish to the Issuer and the Subordinated Trustee for such Security such
security or indemnity as may be required by them to save each of them harmless,
and in case of destruction, loss or theft, evidence satisfactory to the Issuer
and such Subordinated Trustee and any agent of any of them of the destruction,
loss or theft of such Security and the ownership thereof.

 

Upon the issuance of any new Security under this Section, the Issuer
may require the payment by the Holder of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other
expenses (including all fees and expenses of the Subordinated Trustee for such
Security) connected therewith.

 

37

 

Every new Security of any series issued pursuant to this Section in
lieu of any destroyed, lost or stolen Security or in exchange for any mutilated
Security, shall constitute an original additional contractual obligation of the
Issuer whether or not the destroyed, lost or stolen Security shall be at any
time enforceable by anyone, and shall be entitled to all the benefits of this
Subordinated Indenture equally and proportionately with any and all other
Securities of the same series duly issued hereunder.

 

The provisions of this Section are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities.

 

SECTION 3.07.                Payment of Interest.

 

(a)           General.  Unless
otherwise specified with respect to the Securities of any series, interest, if
any, on any Security which is due and payable, and is punctually paid or duly
provided for, on any Interest Payment Date shall be paid, in the case of
Registered Securities, to the Person in whose name that Security (or one or
more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest payment; provided,
however, that interest, if any, payable at Maturity will be payable
to the Person to whom principal shall be payable.

 

Pursuant to Section 3.01, the Issuer shall designate the manner in
which interest shall be paid (including whether such interest may be paid in
accordance with the Alternative Coupon Satisfaction Mechanism).

 

Unless otherwise provided with respect to the Securities of any series,
payment of interest may be made at the option of the Issuer by check mailed or
delivered to the address of the Person entitled thereto as such address shall
appear in the Security Register or by transfer to a bank account maintained by
the payee.

 

(b)           Payments of Interest on Dated
Subordinated Debt Securities.  Unless
otherwise provided in the Board Resolution or supplemental indenture executed
pursuant to Section 3.01 hereof establishing the terms of the particular
series, if the Issuer fails to pay an installment of interest on an Interest
Payment Date with respect to any Dated Subordinated Debt Securities, or does
not pay all or any part of the principal of (or premium, if any, on) any such
Securities on the Stated Maturity, if any, or any other date set for
redemption, the obligation to make such payment on such Interest Payment Date,
Stated Maturity or other date set for redemption, as the case may be, shall be
deferred until: (i) in the case of a payment of interest, the date upon
which the Issuer pays a dividend or distribution or makes any other payment on
any Junior Securities or Parity Securities (other than (A) a final
dividend declared by the Issuer with respect to its ordinary shares prior to
the date that the decision to defer such interest payment is made or (B) a
payment made by one of the Issuer’s wholly-owned subsidiaries to another
wholly-owned subsidiary or directly to the Issuer) (a “Deferred Interest
Payment Date”) or the earlier to occur of the Stated Maturity for the payment
of principal or the Deferred Principal Payment Date, as the case may be; and (ii) in
the case of a payment of principal 

 

38

 

(or premium, if any), the first Business Day after the
date that falls six months after such payment was originally due (a “Deferred
Principal Payment Date”).

 

Except as otherwise provided in a supplemental indenture or Board
Resolution executed pursuant to Section 3.01 for the Securities of such
series, no payment deferred in accordance with the foregoing will accrue
interest and no payment so deferred shall be treated as due for any purpose
until the Deferred Interest Payment Date or Deferred Principal Payment Date, as
the case may be.  Accordingly, no such
deferral will constitute a Payment Default or an Event of Default under Section 5.01
or Section 5.03 hereof with respect to such Securities.

 

Unless otherwise provided in the Board Resolution or supplemental
indenture executed pursuant to Section 3.01 hereof establishing the terms
of a series of the Securities, if the Issuer defers an interest payment with
respect to any Dated Subordinated Debt Securities or Perpetual Subordinated
Debt Securities, as the case may be, in accordance with the terms of this
Subordinated Indenture (including any Board Resolution or supplemental
indenture executed pursuant to Section 3.01 hereof establishing the terms
of such series), then neither the Issuer nor any entity the Issuer controls,
directly or indirectly, shall be permitted: (a) to declare or pay a
dividend or distribution or make any other payment on any Preference Shares,
Parity Securities or on any Junior Securities (other than (i) a final
dividend declared by the Issuer with respect to its ordinary shares prior to
the date that the decision to defer such interest payment is made or (ii) a
payment made by one of the Issuer’s wholly-owned subsidiaries to another
wholly-owned subsidiary or directly to the Issuer); or (b) to redeem,
purchase or otherwise acquire any Parity Securities or any Junior Securities,
in each case unless or until all interest deferred in accordance with the
foregoing has been received by the Holders of the Dated Subordinated Debt Securities
and no other payment of arrears of interest remains unsatisfied.

 

For purposes of the foregoing, the payment (or declaration of payment)
of a dividend or distribution on Junior Securities and Parity Securities shall
be deemed to include the making of any interest, coupon or dividend payment (or
payment under any guarantee in respect thereof) and the redemption, purchase or
other acquisition of such securities (save where the funds used to redeem,
purchase or acquire those securities are derived from an issue of Junior
Securities or Parity Securities (i) made at any time within the six-month
period prior to the time of such redemption, purchase or acquisition, and (ii) with
the same or junior ranking on a return of assets on a winding up or in respect
of a distribution or payment of interest, coupons or dividends and/or any other
amounts thereunder to those securities being redeemed, purchased or
acquired).  The Subordinated Trustee
shall be entitled to rely on an Officers’ Certificate (and shall be protected
in so doing) as to whether the redemption, purchase or acquisition falls within
the exception set out above and, if the Subordinated Trustee does so rely, such
Officers’ Certificate shall, in the absence of clear error, be conclusive and
binding on the Issuer and the holders of the Securities.

 

(c)           Payments of Interest on Perpetual
Subordinated Debt Securities and Perpetual Subordinated Capital Securities. 
Unless otherwise provided in the Board 

 

39

 

Resolution or supplemental indenture executed pursuant
to Section 3.01 hereof establishing the terms of a series of Perpetual
Subordinated Debt Securities and Perpetual Subordinated Capital Securities, (i) payment
of interest on the Perpetual Subordinated Debt Securities and Perpetual
Subordinated Capital Securities will be mandatory on each Compulsory Interest
Payment Date and (ii) any accrued interest for an Interest Period on any
Perpetual Subordinated Capital Securities of a particular series which is not
paid by the Issuer either (x) because the Issuer elects not to make a
payment of interest on any Optional Interest Payment Date, (y) because the
Solvency Condition is not met on an Interest Payment Date or (z) because
of the occurrence of a Payment Event, together with any other accrued interest
for previous Interest Periods in respect of such Perpetual Subordinated Debt
Securities and Perpetual Subordinated Capital Securities which was not paid by
the Issuer so long as the same remains unpaid, shall constitute “Deferred Interest”.

 

(d)           In respect of the Perpetual Subordinated
Capital Securities and Perpetual Subordinated Debt Securities, if provided in
the Board Resolution or supplemental indenture executed pursuant to Section 3.01
hereof establishing the terms of a series of Perpetual Subordinated Capital
Securities or Perpetual Subordinated Debt Securities, interest on the Perpetual
Subordinated Capital Securities or Perpetual Subordinated Debt Securities, as
the case may be, which is payable on each Compulsory Interest Payment Date and
is not deferred shall constitute “Current
Interest”.  The Issuer may
satisfy its obligation to pay Current Interest on such Securities through the
issuance of Perpetual Subordinated Debt Securities, Perpetual Subordinated
Capital Securities and/or ordinary shares, in accordance with the procedures
set out in the Board Resolution or supplemental indenture executed pursuant to Section 3.01
hereof establishing the terms of the relevant series of Perpetual Subordinated
Capital Securities or Perpetual Subordinated Debt Securities, as the case may
be.

 

(e)           Unless otherwise provided in the Board
Resolution or supplemental indenture executed pursuant to Section 3.01
hereof establishing the terms of a series of Perpetual Subordinated Capital
Securities or Perpetual Subordinated Debt Securities, Deferred Interest shall
not itself bear interest and will be payable only as set out below.  In respect of a series of Perpetual
Subordinated Capital Securities, Deferred Interest shall only be payable upon
the redemption of such series or upon their repurchase by the Issuer or
(subject to the provisions of Section 13.01 hereof) upon the commencement
of the winding up of the Issuer and not in any other circumstances.  In respect of the Perpetual Subordinated
Capital Securities, the Issuer may satisfy its obligation to pay Deferred
Interest upon the redemption of such series or upon their repurchase by the
Issuer only in accordance with the Alternative Coupon Satisfaction Mechanism
provided for in the Board Resolution or supplemental indenture executed
pursuant to Section 3.01 hereof establishing the terms of the relevant
series of Perpetual Subordinated Capital Securities except in the case of the
winding up of the Issuer, in which case any Deferred Interest will be payable
by the liquidator in the same manner and with the same ranking as the principal
on the Perpetual Subordinated Capital Securities.

 

40

 

In respect of Perpetual Subordinated Debt Securities,
at the option of the Issuer, but subject to satisfying the Solvency Condition,
Deferred Interest will be payable in whole or in part (as specified in the
notice given by the Issuer) at any time upon notice being given by the Issuer
to the Subordinated Trustee and the Holders of Perpetual Subordinated Debt
Securities as specified in the applicable Board Resolution or supplemental
indenture executed pursuant to Section 3.01 hereof establishing the terms
of the relevant series of Perpetual Subordinated Debt Securities.  In respect of Perpetual Subordinated Debt
Securities, Deferred Interest will become payable on the redemption of the
Perpetual Subordinated Debt Securities or on their repurchase by the Issuer (or
on behalf of the Issuer) or (subject to the provisions set out in Section 13.01
hereof) upon the commencement of the winding up of the Issuer and not in any
other circumstances, but so that in the case of payment of part of the Deferred
Interest, the interest accrued during any Interest Period shall not be paid
prior to that accrued during an earlier Interest Period.  In respect of Perpetual Subordinated Debt
Securities, the Issuer may satisfy its obligation to pay Deferred Interest in
accordance with the Alternative Coupon Satisfaction Mechanism, as set forth in
the relevant Board Resolution or supplemental indenture executed pursuant to Section 3.01
hereof establishing the terms of the relevant series of Perpetual Subordinated
Debt Securities, except in the case of the winding up of the Issuer, in which
case any Deferred Interest will be payable by the liquidator in the same manner
and with the same ranking as the principal on the Perpetual Subordinated Debt
Securities.

 

Unless otherwise provided in the Board Resolution or supplemental
indenture executed pursuant to Section 3.01 hereof establishing the terms
of a series of Perpetual Subordinated Debt Securities or Perpetual Subordinated
Capital Securities, if the Issuer defers an interest payment with respect to
any Perpetual Subordinated Debt Securities or Perpetual Subordinated Capital
Securities in accordance with the terms of this Subordinated Indenture
(including any Board Resolution or supplemental indenture executed pursuant to Section 3.01
hereof establishing the terms of such series), then neither the Issuer nor any
entity the Issuer controls, directly or indirectly, shall be permitted: (a) to
declare or pay a dividend or distribution or make any other payment on any
Parity Securities or on any Junior Securities (other than (i) a final
dividend declared by the Issuer with respect to its ordinary shares prior to
the date that the decision to defer such interest payment is made or (ii) a
payment made by one of the Issuer’s wholly-owned subsidiaries to another
wholly-owned subsidiary or directly to the Issuer); or (b) to redeem,
purchase or otherwise acquire Parity Securities or any Junior Securities, in
each case unless or until the interest otherwise due and payable on the next
succeeding Interest Payment Date (but excluding Deferred Interest, if any) in
respect of such Securities is duly set aside and provided for or paid in full.

 

For purposes of the foregoing, the payment (or declaration of payment)
of a dividend or distribution on Junior Securities and Parity Securities shall
be deemed to include the making of any interest, coupon or dividend payment (or
payment under any guarantee in respect thereof) and the redemption, purchase or
other acquisition of such securities (save where the funds used to redeem,
purchase or acquire those securities are derived from an issue of Junior
Securities or Parity Securities (i) made at any time within the six-month
period prior to the time of such redemption, purchase or acquisition, and 

 

41

 

(ii) with the same or junior ranking on a return
of assets on a winding up or in respect of a distribution or payment of
interest, coupons or dividends and/or any other amounts thereunder to those
securities being redeemed, purchased or acquired).  The Subordinated Trustee shall be entitled to
rely on an Officers’ Certificate (and shall be protected in so doing) as to
whether the redemption, purchase or acquisition falls within the exception set
out above and, if the Subordinated Trustee does so rely, such Officers’
Certificate shall, in the absence of clear error, be conclusive and binding on
the Issuer and the holders of the Securities.

 

The Board Resolution or supplemental indenture executed pursuant to Section 3.01
hereof establishing the terms of each series of Perpetual Subordinated Capital
Securities and Perpetual Subordinated Debt Securities, shall set forth
additional matters with respect to Deferred Interest with respect to such
series, including: (a) the manner in which the Alternative Coupon
Satisfaction Mechanism will apply to such series; (b) the dates, times and
manner in which the Issuer will be obligated to satisfy any Deferred Interest; (c) the
consequences of the occurrence of a Market Disruption Event or a Definitive
Suspension; and (d) such other matters with respect to Deferred Interest
as are set forth therein.

 

(f)            Payment of Defaulted Interest. 
Any interest (a) on any Dated Subordinated Debt Securities of any
particular series which is due and payable, but is not punctually paid or duly
provided for, on any Deferred Interest Payment Date or (b) on any
Perpetual Subordinated Capital Securities or Perpetual Subordinated Debt
Securities of any particular series which is due and payable, but is not
punctually paid or duly provided for, on any Compulsory Interest Payment Date
(herein called “Defaulted Interest”) shall, in each case, forthwith cease to be
payable to the Holder on the relevant Regular Record Date and such Defaulted
Interest shall be paid by the Issuer, at its election in each case, as provided
in clause (1) or (2) below:

 

(1)           the Issuer may elect to make payment of
any Defaulted Interest to the Persons in whose names any Registered Securities
of that series (or their respective Predecessor Securities) are registered at
the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed in the following manner.  The Issuer shall notify the Subordinated
Trustee for such Securities of such series in writing at least thirty days
prior to the date of the proposed payment of the amount of Defaulted Interest
proposed to be paid on each Security of that series and the date of the
proposed payment, and at the same time the Issuer shall deposit with such
Subordinated Trustee an amount of money in the currency or currency unit in
which interest on the Securities of such series are payable (except as
otherwise specified pursuant to Section 3.01 for the Securities of such
series and except as provided in Sections 3.11(b), 3.11(d) and 3.11(e)),
equal to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to such Subordinated Trustee
for such deposit prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons entitled to such
Defaulted Interest as in this clause provided. 
The Issuer shall fix a Special Record Date, and promptly give notice
thereof to the Subordinated Trustee, for the payment of such Defaulted Interest
which shall not be more than 15 days and not less than 10 days prior to the
date of the proposed 

 

42

 

payment.  The
Issuer or such Subordinated Trustee, in the name and at the expense of the
Issuer, shall cause notice of the proposed payment of such Defaulted Interest
and the Special Record Date therefor to be mailed, first-class postage prepaid,
in the case of Registered Securities, to each Holder of Registered Securities
of that series at his address as it appears in the Security Register no less
than 7 days prior to such Special Record Date. 
Notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor having been mailed as aforesaid, such Defaulted Interest
shall be paid to the Persons in whose names any such Registered Securities of
that series (or their respective Predecessor Securities) are registered on such
Special Record Date and shall no longer be payable pursuant to the following
clause (2); or

 

(2)           the Issuer may make payment of any
Defaulted Interest on Securities of any particular series in any other lawful
manner not inconsistent with the requirements of any Stock Exchange on which
the Registered Securities may be listed, and upon such notice as may be
required by such Stock Exchange, unless, after notice is given by the Issuer to
the Subordinated Trustee for the Securities of such series of such proposed
manner of payment pursuant to this clause, such manner of payment shall be
deemed impracticable by such Subordinated Trustee.

 

Subject to the foregoing provisions of this Section and Section 3.05,
each Security delivered under this Subordinated Indenture upon registration of
transfer of or in exchange for or in lieu of any other Security shall carry the
rights to interest accrued and unpaid, and to accrue, which were carried by
such other Security.

 

(g)           Payment of Interest on Deferred Interest. 
To the extent provided for in the Board Resolution or supplemental
indenture executed pursuant to Section 3.01 hereof establishing the terms
of a particular series of Perpetual Subordinated Debt Securities or Perpetual
Subordinated Capital Securities, a Redemption Date on which any Deferred
Interest Payments are due to be satisfied may be postponed (i) following
the occurrence of a Market Disruption Event during the 14 Business Days
preceding such Redemption Date until such Market Disruption Event no longer
exists and such deferral will not constitute a Perpetual Security Default; in
addition, to the extent provided for in the Board Resolution or supplemental
indenture executed pursuant to Section 3.01 hereof establishing the terms
of a particular series of Perpetual Subordinated Debt Securities or Perpetual
Subordinated Capital Securities, interest will not accrue on Deferred Interest
during a Market Disruption Event provided however that if a Market Disruption
Event exists and is continuing for more than 14 days after the initial
Redemption Date, interest will accrue on such Deferred Interest from (and
including) the 14th day following the initial Redemption Date to
(but excluding) the date such Deferred Interest is paid at the rate of interest
applicable to such series of Perpetual Subordinated Capital Securities or
Perpetual Subordinated Debt Securities or (ii) in other circumstances
where the Issuer is otherwise not able to raise sufficient funds through the
Alternative Coupon Satisfaction Mechanism to satisfy all Deferred Interest
Payments payable on such Redemption Date and, to the extent set forth in such
Board Resolution or supplemental indenture interest will accrue on outstanding
Deferred Interest Payments that would otherwise have been satisfied on such
initially scheduled Redemption Date from (and including) such Redemption Date
to (but excluding) the date such Deferred Interest Payments are paid, at 

 

43

 

the rate of interest applicable to such series of
Perpetual Subordinated Capital Securities or Perpetual Subordinated Debt
Securities.

 

The Board Resolution or supplemental indenture executed pursuant to Section 3.01
hereof establishing the terms of each series of Perpetual Subordinated Capital
Securities and Perpetual Subordinated Debt Securities shall set forth
additional matters with respect to Deferred Interest with respect to such
series, including: (a) the manner in which the Alternative Coupon
Satisfaction Mechanism will apply to such series; (b) the dates, times and
manner in which the Issuer will be obligated to satisfy any Deferred Interest; (c) the
consequences of the occurrence of a Market Disruption Event or a Definitive
Suspension; and (d) such other matters with respect to Deferred Interest
as are set forth therein.

 

SECTION 3.08.                Persons Deemed Owners.

 

Prior to due presentment of a Registered Security for registration of
transfer, the Issuer and the Subordinated Trustee and any agent of the Issuer
or the Subordinated Trustee may treat the Person in whose name any such
Security is registered as the owner of such Security for the purpose of
receiving payment of principal of (and premium, if any, on) and (subject to Section 3.07)
interest and Deferred Interest, if any, on such Security and for all other
purposes whatsoever, whether or not such Security be overdue, and none of the
Issuer, such Subordinated Trustee or any agent of the Issuer or such
Subordinated Trustee shall be affected by notice to the contrary.

 

None of the Issuer, the Subordinated Trustee, any Paying Agent or the
Security Registrar will have any responsibility or liability for any aspect of
the records relating to or payments made on account of beneficial ownership
interests of a global Security or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.

 

SECTION 3.09.                Cancellation.

 

Unless otherwise specified in the Securities of a series, all
Securities surrendered for payment, redemption, registration of transfer on an
exchange, or delivered in satisfaction of any sinking fund payment, shall, if
surrendered to any Person other than the Subordinated Trustee for such
Securities, be delivered to such Subordinated Trustee and shall be promptly
cancelled by it.  The Issuer may at any
time deliver to the Subordinated Trustee for Securities of a series for
cancellation any Securities previously authenticated and delivered hereunder
which the Issuer may have acquired in any manner whatsoever, and all Securities
so delivered shall be promptly cancelled by such Subordinated Trustee.  Notwithstanding any other provision of this
Subordinated Indenture to the contrary, in the case of a series, all the
Securities of which are not to be originally issued at one time, a Security of
such series shall not be deemed to have been Outstanding at any time hereunder
if and to the extent that, subsequent to the authentication and delivery
thereof, such Security is delivered to the Subordinated Trustee for such
Security for cancellation by the Issuer or any agent thereof upon the failure
of the original purchaser thereof to make payment therefor against delivery 

 

44

 

thereof, and any Security so delivered to such
Subordinated Trustee shall be promptly cancelled by it.  No Securities shall be authenticated in lieu
of or in exchange for any Securities cancelled as provided in this Section,
except as expressly permitted by this Subordinated Indenture.  All cancelled Securities held by the
Subordinated Trustee for such Securities shall be disposed of by the
Subordinated Trustee in accordance with its standard procedures and a
certificate of disposition evidencing such disposition of Securities shall be
provided to the Issuer by the Subordinated Trustee, unless by an Issuer Order
the Issuer shall direct that such cancelled Securities shall be returned to it.  Global Securities shall not be disposed of
until exchanged in full for definitive Securities or until payment thereon is
made in full.

 

SECTION 3.10.                Computation of Interest.

 

Except as otherwise specified as contemplated by Section 3.01 for
Securities of any particular series, interest on the Securities of each series
shall be computed on the basis of a 360-day year of twelve 30-day months.

 

SECTION 3.11.                Currency and Manner of
Payments in Respect of Securities.

 

(a)           With respect to Securities of any series not
permitting the election provided for in paragraph (b) below or the Holders
of which have not made the election provided for in paragraph (b) below,
payment of the principal of (and premium, if any, on) and interest and Deferred
Interest, if any, on any Security of such series will be made in the currency
or currency unit in which such Security is payable.

 

(b)           It may be provided pursuant to Section 3.01
with respect to Securities of any series that Holders shall have the option,
subject to paragraphs (d) and (e) below, to receive payments of
principal of (or premium, if any, on) or interest or Deferred Interest, if any,
on such Securities in any of the currencies or currency units which may be
designated for such election by delivering to the Subordinated Trustee for such
series of Securities a written election with signature guarantees and in form
and substance satisfactory to such Subordinated Trustee, not later than the
close of business on the Election Date immediately preceding the applicable
payment date.  If a Holder so elects to
receive such payments in any such currency or currency unit, such election will
remain in effect for such Holder until changed by such Holder by written notice
to the Subordinated Trustee for such series of Securities (but any such change
may be made not later than the close of business on the Election Date
immediately preceding the next payment date to be effective for the payment to
be made on such payment date and no such change of election may be made with
respect to payments to be made on any Security of such series with respect to
which an Event of Default, Payment Default, Perpetual Security Default or
Payment Event has occurred and is continuing or notice of redemption has been
given by the Issuer pursuant to Article Eleven).  In the event that any Holder makes any such
election pursuant to the preceding sentence, such election will not be
effective as to any transferee of such Holder and such transferee shall be paid
in the currency or currency unit indicated pursuant to paragraph (a) above
unless such transferee makes an election pursuant to the preceding sentence; provided,
however, that such election, if in
effect while funds are on deposit with respect to the Securities of such 

 

45

 

series as described in Section 4.01(a)(1)(B),
will be effective as to any transferee of such Holder unless otherwise
specified pursuant to Section 3.01 for the Securities of such series.  Any Holder of any such Security who shall not
have delivered any such election to the Subordinated Trustee of such series of
Securities not later than the close of business on the applicable Election Date
will be paid the amount due on the applicable payment date in the relevant
currency or currency unit as provided in paragraph (a) of this Section 3.11.  In no case may a Holder of Securities of any
series elect to receive payments in any currency or currency unit as described
in this Section 3.11(b) following deposit of funds or U.S. Government
Obligations with respect to the Securities of such series as described in Section 4.01(a)(1)(B).  In the case of a global security, such
election will be made in accordance with the procedures of the Depositary.  The Subordinated Trustee for each such series
of Securities shall notify the Currency Determination Agent as soon as
practicable after the Election Date of the aggregate principal amount of
Securities for which Holders have made such written election.

 

(c)           If the election referred to in paragraph (b) above
has been provided for pursuant to Section 3.01, then not later than the
fourth Business Day after the Regular Record Date for each payment date for
Securities of any series, the Currency Determination Agent will deliver to the
Issuer a written notice specifying, in the currency or currency unit in which
Securities of such series are payable, the respective aggregate amounts of
principal of (and premium, if any, on) and interest and Deferred Interest, if
any, on the Securities to be paid on such payment date, specifying the amounts
in such currency or currency unit so payable in respect of the Securities of
such series as to which the Holders thereof shall have elected to be paid in a
currency or currency unit other than that in which such series is denominated
as provided in paragraph (b) above. 
If the election referred to in paragraph (b) above has been
provided for pursuant to Section 3.01 and if at least one Holder has made
such election, then, on the second Business Day preceding such payment date the
Issuer will deliver or cause to be delivered to the Subordinated Trustee for
such series of Securities an Exchange Rate Officers’ Certificate or a Currency
Determination Agent’s Certificate in respect of the Dollar, Foreign Currency or
currency unit payments to be made on such payment date.  The Dollar, Foreign Currency or currency unit
amount receivable by Holders of Securities who have elected payment in a
currency or currency unit as provided in paragraph (b) above shall, unless
otherwise provided pursuant to Section 3.01, be determined by the Issuer
or the Currency Determination Agent on the basis of the applicable Market
Exchange Rate in effect on the third Business Day (the “Valuation Date”)
immediately preceding each payment date.

 

(d)           Unless otherwise specified for Securities
of a series pursuant to Section 3.01, if a Conversion Event occurs with
respect to a Foreign Currency or any other currency unit in which any of the
Securities are denominated or payable other than pursuant to an election
provided for pursuant to paragraph (b) above, then with respect to each
date for the payment of principal of (and premium, if any, on) and interest and
Deferred Interest, if any, on the applicable Securities denominated or payable
in such Foreign Currency or such other currency unit occurring after the last
date on which such Foreign Currency or such other currency unit was available
(the “Conversion Date”), the Dollar shall be the currency of payment for use on
each such payment date.  The Dollar 

 

46

 

amount to be paid by the Issuer to the Subordinated
Trustee of each such series of Securities and with respect to such payment date
shall be the Dollar Equivalent of the Foreign Currency or, in the case of a
currency unit, the Dollar Equivalent of the Currency Unit, in each case as
determined by the Currency Determination Agent in the manner provided in
paragraph (f) or (g) below.

 

(e)           Unless otherwise specified for Securities
of a series pursuant to Section 3.01, if the Holder of a Security
denominated in any currency or currency unit shall have elected to be paid in
another currency or currency unit as provided in paragraph (b) above, and
a Conversion Event occurs with respect to such elected currency or currency
unit, such Holder shall receive payment in the currency or currency unit in
which payment would have been made in the absence of such election.  Unless otherwise specified for Securities of
a series pursuant to Section 3.01, if a Conversion Event occurs with
respect to the currency or currency unit in which payment would have been made
in the absence of such election, such Holder shall receive payment in Dollars
as provided in paragraph (d) of this Section 3.11 or, in the case of
a Conversion Event with respect to Dollars, in such currency or currency units
as the Issuer shall select.

 

(f)            Unless otherwise specified for Securities
of a series pursuant to Section 3.01, the “Dollar Equivalent of the
Foreign Currency” shall be determined by the Currency Determination Agent and
shall be obtained for each subsequent payment after the Conversion Date by
converting the specified Foreign Currency into Dollars at the Market Exchange
Rate on the Conversion Date.

 

(g)           Unless otherwise specified for Securities
of a series pursuant to Section 3.01, the “Dollar Equivalent of the
Currency Unit” shall be determined by the Currency Determination Agent and
subject to the provisions of paragraph (h) below shall be the sum of each
amount obtained by converting the Specified Amount of each Component Currency
into Dollars at the Market Exchange Rate for such Component Currency on the
Valuation Date with respect to each payment.

 

(h)           For purposes of this Section 3.11
the following terms shall have the following meanings:

 

A “Component Currency”
shall mean any currency which, on the Conversion Date, was a component currency
of the relevant currency unit.

 

“Election Date” shall
mean any date for any series of Securities as specified pursuant to Section 3.01(16)
by which the written election referred to in Section 3.11(b) may be
made, such date to be not later than the Regular Record Date for the earliest
payment for which such election may be effective.

 

A “Specified Amount” of a
Component Currency shall mean the number of units of such Component Currency or
fractions thereof which were represented in the relevant currency unit on the
Conversion Date.  If after the Conversion
Date the official unit of any Component Currency is altered by way of
combination or subdivision, the Specified Amount of such Component Currency
shall be divided or multiplied in the 

 

47

 

same proportion. 
If after the Conversion Date two or more Component Currencies are
consolidated into a single currency, the respective Specified Amounts of such
Component Currencies shall be replaced by an amount in such single currency
equal to the sum of the respective Specified Amounts of such consolidated
Component Currencies expressed in such single currency, and such amount shall
thereafter be a Specified Amount and such single currency shall thereafter be a
Component Currency.  If after the
Conversion Date any Component Currency shall be divided into two or more
currencies, the Specified Amount of such Component Currency shall be replaced
by amounts of such two or more currencies, each of whose Dollar Equivalent at
the Market Exchange Rate on the date of such replacement shall be equal to the
Dollar Equivalent of the Specified Amount of such former Component Currency at
the Market Exchange Rate on such date divided by the number of currencies into
which such Component Currency was divided, and such amounts shall thereafter be
Specified Amounts and such currencies shall thereafter be Component
Currencies.  If, on or after the
Conversion Date of the relevant currency unit, a Conversion Event (other than
any event referred to above in this definition of “Specified Amount”) occurs
with respect to any Component Currency of such currency unit and is continuing
on the applicable Valuation Date, the Specified Amount of such Component
Currency shall, for purposes of calculating the Dollar Equivalent of the
Currency Unit, be converted into Dollars at the Market Exchange Rate in effect
on the Conversion Date of such Component Currency.

 

All decisions and determinations of the Currency Determination Agent
regarding the Dollar Equivalent of the Foreign Currency, the Dollar Equivalent
of the Currency Unit, the Market Exchange Rate and changes in the Specified
Amounts as specified above shall be in its sole discretion and shall, in the
absence of manifest error, be conclusive for all purposes and irrevocably
binding upon the Issuer and the Subordinated Trustee for the appropriate series
of Securities and all Holders of such Securities denominated or payable in the
relevant currency or currency units.  The
Currency Determination Agent shall promptly give written notice to the Issuer
and the Subordinated Trustee for the appropriate series of Securities of any
such decision or determination.

 

In the event of a Conversion Event with respect to a Foreign Currency,
the Issuer, after learning thereof, will immediately give written notice
thereof to the Subordinated Trustee of the appropriate series of Securities and
the Currency Determination Agent (and the Subordinated Trustee will promptly
thereafter give notice in the manner provided in Section 1.06 to the
Holders) specifying the Conversion Date. 
In the event of a Conversion Event with respect to the euro or any other
currency unit in which Securities are denominated or payable, the Issuer, after
learning thereof, will immediately give written notice thereof to the
Subordinated Trustee of the appropriate series of Securities and the Currency
Determination Agent (and the Subordinated Trustee will promptly thereafter give
notice in the manner provided in Section 1.06 to the Holders) specifying
the Conversion Date and the Specified Amount of each Component Currency on the
Conversion Date.  In the event of any
subsequent change in any Component Currency as set forth in the definition of
Specified Amount above, the Issuer, after learning thereof, will similarly give
written notice to the Subordinated Trustee of the appropriate series of
Securities and the Currency Determination Agent.

 

48

 

The Subordinated Trustee of the appropriate series of Securities shall
be fully justified and protected in relying and acting upon information
received by it from the Issuer and the Currency Determination Agent and shall
not otherwise have any duty or obligation to determine such information
independently.

 

SECTION 3.12.                Currency Determination Agent.

 

(a)           Unless otherwise specified pursuant to Section 3.01,
if and so long as the Securities of any series (i) are denominated in a
currency unit or a currency other than Dollars or (ii) may be payable in a
currency unit or a currency other than Dollars, or so long as it is required
under any other provision of this Subordinated Indenture, then the Issuer will
maintain with respect to each such series of Securities, or as so required, a
Currency Determination Agent.  The Issuer
will cause the Currency Determination Agent to make the necessary foreign
exchange determinations at the time and in the manner specified pursuant to Section 3.01
for the purpose of determining the applicable rate of exchange and for the
purpose of converting the issued currency or currency unit into the applicable
payment currency or currency unit for the payment of principal (and premium, if
any) and interest and Deferred Interest, if any, pursuant to Section 3.11.

 

(b)           The Issuer shall procure that no
resignation of the Currency Determination Agent and no appointment of a
successor Currency Determination Agent pursuant to this Section shall
become effective until the acceptance of appointment by the successor Currency
Determination Agent as evidenced by a written instrument delivered to the
Issuer and the Subordinated Trustee of the appropriate series of Securities
accepting such appointment executed by the successor Currency Determination
Agent.

 

(c)           If the Currency Determination Agent shall
resign, be removed or become incapable of acting, or if a vacancy shall occur
in the office of the Currency Determination Agent for any cause, with respect
to the Securities of one or more series, the Issuer, by a Board Resolution,
shall promptly appoint a successor Currency Determination Agent or Currency
Determination Agents with respect to the Securities of that or those series (it
being understood that any such successor Currency Determination Agent may be
appointed with respect to the Securities of one or more or all of such series
and that at any time there shall only be one Currency Determination Agent with
respect to the Securities of any particular series).

 

SECTION 3.13.                Common Code, CUSIP or ISIN
Numbers.

 

The Issuer in issuing any series of the Securities may use Common Code,
CUSIP or ISIN numbers, if then generally in use, and thereafter with respect to
such series, the Subordinated Trustee may use such numbers in any notice of redemption
with respect to such series; provided
that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or as contained
in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption shall
not be affected by any defect in or omission of such numbers.  The Issuer will promptly notify the
Subordinated Trustee of any change in the Common Code, CUSIP or ISIN numbers.

 

49

 

SECTION 3.14.                Authenticating Agents.

 

From time to time the Subordinated Trustee for the Securities of any
series may, subject to its sole discretion, and shall, upon an Issuer Order
from the Issuer and for such period as such Issuer shall elect, appoint one or
more Authenticating Agents with respect to the Securities of such series with
power to act in the name of the Subordinated Trustee and subject to its
discretion in the authentication and delivery of Securities of such series in
connection with transfers and exchanges under Sections 3.04, 3.05, 3.06 and
11.07 as fully to all intents and purposes as though such Authenticating Agent
had been expressly authorized by those Sections of this Subordinated Indenture
to authenticate and deliver Securities of such series.  For all purposes of this Subordinated
Indenture, the authentication and delivery of such Securities of such series by
an Authenticating Agent for such Securities pursuant to this Section shall be
deemed to be authentication and delivery of such Securities “by the
Subordinated Trustee” for the Securities of such series.  Any such Authenticating Agent shall at all
times be a corporation organized and doing business under the laws of the
United States, any State thereof or the District of Columbia, authorized under
such laws to exercise corporate trust powers, having a combined capital and
surplus of at least $50,000,000 and subject to supervision or examination by
Federal, State or District of Columbia authority, as the case may be.  If such corporation publishes reports of
condition at least annually pursuant to law or the requirements of such
supervising or examining authority, then for the purposes of this Section the
combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published.  If at any time
an Authenticating Agent for any series of Securities shall cease to be eligible
in accordance with the provisions of this Section, such Authenticating Agent
shall resign immediately in the manner and with the effect specified in this
Section.

 

Any Authenticating Agent for any series of Securities may resign at any
time by giving written notice of resignation to the Subordinated Trustee for
such series and to the Issuer.  The
Subordinated Trustee for any series of Securities may at any time and shall,
upon an Issuer Request, terminate the appointment of any Authenticating Agent
by giving written notice of termination to such Authenticating Agent and to the
Issuer in the manner set forth in Section 1.05.  Upon receiving such a notice of resignation
or upon such a termination, or in case at any time any Authenticating Agent for
any series of Securities shall cease to be eligible under this Section, the
Subordinated Trustee for such series may and shall, upon an Issuer Request,
appoint a successor Authenticating Agent, shall give written notice of such
appointment to the Issuer and shall give written notice of such appointment to
all Holders of Securities of such series in the manner set forth in Section 1.06.  Any successor Authenticating Agent, upon
acceptance of his appointment hereunder, shall become vested with all the
rights, powers and duties of his predecessor hereunder, with like effect as if
originally named as an Authenticating Agent. 
No successor Authenticating Agent shall be appointed unless eligible
under the provisions of this Section.

 

50

 

The Issuer agrees to pay to any corporation of which any director or
officer has been appointed as Authenticating Agent for such series from time to
time reasonable compensation for such services.

 

If an appointment with respect to one or more series of Securities is
made pursuant to this Section, the Securities of such series may have endorsed
thereon, in addition to the Subordinated Trustee’s certificate of
authentication, an alternate certificate of authentication substantially in the
form specified in Section 2.02.

 

ARTICLE FOUR

SATISFACTION
AND DISCHARGE

 

SECTION 4.01.                Satisfaction and
Discharge of Securities of any Series.

 

(a)           The Issuer shall be deemed to have
satisfied and discharged the entire indebtedness on all the Securities of any
particular series and, so long as no Event of Default, Payment Default,
Perpetual Security Default or Payment Event shall be continuing, the
Subordinated Trustee for the Securities of such series, upon an Issuer Request
from the Issuer and at the expense of the Issuer, shall execute proper
instruments acknowledging satisfaction and discharge of such indebtedness,
when:

 

(1)           either:

 

(A)          all Securities of such series theretofore
authenticated and delivered (other than (i) any Securities of such series
which have been mutilated, destroyed, lost or stolen and which have been
replaced or paid as provided in Section 3.06 and (ii) Securities of
such series for whose payment money has theretofore been deposited in trust or
segregated and held in trust by the Issuer and thereafter repaid to the Issuer
or discharged from such trust, as provided in the last paragraph of Section 10.03)
have been delivered to the Subordinated Trustee for the Securities of such
series for cancellation; or

 

(B)           except as otherwise specified pursuant to
Section 3.01 for the Securities of such series, with respect to all
Outstanding Securities of such series described in (A) above not
theretofore so delivered to the Subordinated Trustee for the Securities of such
series for cancellation:

 

(i)            the Issuer has irrevocably deposited, or
caused to be deposited, with the Subordinated Trustee for the Securities of
such series as trust funds in trust an amount in the currency or currency unit
in which the Securities of such series are payable (except as otherwise
specified pursuant to Section 3.01 for the Securities of such series and
subject as to currency to Sections 3.11(b), 3.11(d) and 3.11(e), in which
case the deposit to be made with respect to Securities for which an election
has occurred pursuant to Section 3.11(b) or a Conversion Event has
occurred as provided in Sections 3.11(d) and 3.11(e) shall be made in
the currency or currency unit in which such Securities are 

 

51

 

payable as a result
of such election or Conversion Event), sufficient (without consideration of any
reinvestment thereof) to pay and discharge the entire indebtedness on all such
Outstanding Securities of such series for unpaid principal (and premium, if
any) and interest and Deferred Interest, if any, to the Stated Maturity, if
any, or any Redemption Date as contemplated by Section 4.02, as the case
may be; or

 

(ii)           the Issuer has deposited, or caused to be
deposited, with such Subordinated Trustee as obligations in trust such amount
of U.S. Government Obligations as will, as evidenced by a Certificate of a Firm
of Independent Public Accountants delivered to such Subordinated Trustee,
together with the predetermined and certain income to accrue thereon (without
consideration of any reinvestment thereof), be sufficient to pay and discharge
when due the entire indebtedness on all such Outstanding Securities of such
series for unpaid principal (and premium, if any) and interest and Deferred
Interest, if any, to the Stated Maturity, if any, or Redemption Date as
contemplated by Section 4.02, as the case may be;

 

(iii)          the Issuer has deposited, or caused to be
deposited, with such Subordinated Trustee in trust an amount equal to the
amount referred to in clause (i) or (ii) in any combination of
currency or currency unit or U.S. Government Obligations and has delivered a
Certificate of a Firm of Independent Public Accountants to such Subordinated
Trustee verifying that such combination of funds and U.S. Government
Obligations will be sufficient to pay and discharge the entire indebtedness on
all Outstanding Securities of such series for unpaid principal (and premium, if
any) and interest and Deferred Interest, if any to the extent provided for in a
Board Resolution or supplemental indenture executed pursuant to Section 3.01,
to the Stated Maturity, if any, or any Redemption Date as contemplated by Section 4.02,
as the case may be, taking into account the predetermined and certain income to
accrue on such U.S. Government Obligations (but without any consideration of
any reinvestment thereof) and without taking consideration of any reinvestment
of any such funds; or

 

(iv)          such Securities are converted or
exchanged for Preference Shares in accordance with Article Fourteen and the
applicable supplemental indenture for each series of such Securities.

 

(2)           the Issuer has paid or caused to be paid
all other sums payable with respect to the Securities of such series;

 

(3)           the Issuer has delivered to such
Subordinated Trustee an Officers’ Certificate and an Opinion of Counsel, each
stating that all conditions precedent herein 

 

52

 

provided for relating to the satisfaction and
discharge of the entire indebtedness on all Securities of such series have been
complied with;

 

(4)           except in the circumstances set out in Section 4.01(a)(1)(B)(iv),
if the Securities of such series are not to become due and payable at their
Stated Maturity, if any, within one year of the date of a deposit pursuant to Section 4.01(a)(1)(B) or
are not to be called for redemption within one year of the date of such deposit
under arrangements satisfactory to such Subordinated Trustee as of the date of
such deposit, then the Issuer shall have given, not later than the date of such
deposit, notice of such deposit to the Holders of such Securities; and

 

(5)           except in the circumstances set out in Section 4.01(a)(1)(B)(iv),
if the conditions set forth in Section 4.01(a)(1)(A) have not been
satisfied, and unless otherwise specified pursuant to Section 3.01 for the
Securities of such series, the Issuer has delivered to the Subordinated Trustee
an Opinion of Counsel to the effect that (A) the Issuer has received from,
or there has been published by, the Internal Revenue Service a ruling, or (B) since
the date of this Subordinated Indenture there has been a change in applicable
United States Federal income tax law, in either case to the effect that, and
based upon which such Opinion of Counsel shall confirm that, the beneficial
owners of Securities of such series will not recognize income, gain or loss for
United States Federal income tax purposes as a result of such deposit,
satisfaction and discharge and will be subject to United States Federal income
tax on the same amount and in the same manner and at the same time as would
have been the case if such deposit, satisfaction and discharge had not
occurred.

 

Upon the satisfaction of the conditions set forth in
this Section 4.01 with respect to all the Securities of any series, the
terms and conditions of the Securities of such series, including the terms and
conditions with respect thereto set forth in this Subordinated Indenture, as
applicable, shall no longer be binding upon, or applicable to, the Issuer and
the Holder of the Securities of such series shall look for payment only to the
funds or obligations deposited with the Subordinated Trustee pursuant to Section 4.01(a)(1)(B)(i)-(iii);
provided, however, that in no
event shall the Issuer be discharged from (i) any payment obligations in
respect of Securities of such series which are deemed not to be Outstanding
under clause (3) of the definition thereof if such obligations continue to
be valid obligations of the Issuer under applicable law, (ii) any
obligations under Sections 4.02(b), 6.07 and 6.10 and (iii) any
obligations under Sections 3.04, 3.05 and 3.06 (except that Securities of such
series issued upon registration of transfer or exchange or in lieu of
mutilated, destroyed, lost or stolen Securities shall not be obligations of the
Issuer) and Sections 3.11, 5.16, 7.01 and 10.02; and provided, further, that in
the event a petition seeking relief under any applicable Bankruptcy Law is
filed and not discharged with respect to the Issuer within 123 days after the
deposit, the entire indebtedness on all Securities of such series shall not be
discharged, and in such event the Subordinated Trustee shall return such
deposited funds or obligations as it is then holding to the Issuer upon an
Issuer Request.  Notwithstanding the
satisfaction of the conditions set forth in this Section 4.01 with respect
to all the Securities of any series not denominated in Dollars, upon the
happening of any Conversion Event the indebtedness represented by such
Securities shall be converted from the currency or currency unit in 

 

53

 

which
such Security is payable into Dollars at the Dollar Equivalent of the Foreign
Currency or the Dollar Equivalent of the Currency Unit and the Issuer shall be
obligated to make the payments in Dollars (or such other currency as set out in
Section 3.11(e)) required by Section 3.11(d) or 3.11(e) to
the extent that the Currency Determination Agent is unable to convert any
Foreign Currency or currency unit so deposited with the Subordinated Trustee
pursuant to Section 4.01(a)(1)(B)(i)-(iii) into the Dollar Equivalent
of the Foreign Currency or the Dollar Equivalent of the Currency Unit, as the
case may be.  The Subordinated Trustee
for such series of Securities shall return to the Issuer any non-converted
funds or securities in its possession after such payments have been made.

 

SECTION 4.02.                Application of Trust Money.

 

(a)           All money and obligations deposited with
the Subordinated Trustee for any series of Securities pursuant to Section 4.01
shall be held irrevocably in trust and shall be made under the terms of an
escrow trust agreement in form satisfactory to such Subordinated Trustee.  Such money and obligations shall be applied
by such Subordinated Trustee, in accordance with the provisions of the
Securities, this Subordinated Indenture and such escrow trust agreement, to the
payment, either directly or through any Paying Agent (including the Issuer
acting as its own Paying Agent) as such Subordinated Trustee may determine, to
the Persons entitled thereto, of the principal of (and premium, if any, on) and
interest and Deferred Interest, if any, on the Securities for the payment of
which such money and obligations have been deposited with such Subordinated
Trustee.  If Securities of any series are
to be redeemed prior to their Stated Maturity, whether pursuant to any optional
redemption provisions or in accordance with any mandatory sinking fund
requirement, the Issuer shall make such arrangements as are satisfactory to the
Subordinated Trustee for any series of Securities for the giving of notice of
redemption by such Subordinated Trustee in the name, and at the expense, of the
Issuer.

 

(b)           The Issuer shall pay and shall indemnify
the Subordinated Trustee for any series of Securities against any tax, fee or
other charge imposed on or assessed against U.S. Government Obligations
deposited pursuant to Section 4.01 or the interest and principal received
in respect of such U.S. Government Obligations other than any such tax, fee or
other charge which by law is payable by or on behalf of Holders.  The obligation of the Issuer under this Section 4.02(b) shall
be deemed to be an obligation of the Issuer under Section 6.07(2).

 

(c)           Anything in this Article Four to the
contrary notwithstanding, the Subordinated Trustee for any series of Securities
shall deliver or pay to the Issuer from time to time upon an Issuer Request any
money or U.S. Government Obligations held by it as provided in Section 4.01
which, as expressed in a Certificate of a Firm of Independent Public
Accountants delivered to such Subordinated Trustee, are in excess of the amount
thereof which would then have been required to be deposited for the purpose for
which such money or U.S. Government Obligations were deposited or received.

 

54

 

SECTION 4.03.                Satisfaction and
Discharge of Subordinated Indenture.

 

Upon compliance by the Issuer with the provisions of Section 4.01
as to the satisfaction and discharge of each series of Securities issued
hereunder, and if the Issuer has paid or caused to be paid all other sums
payable under this Subordinated Indenture, this Subordinated Indenture shall
cease to be of any other effect (except as otherwise provided herein).  Upon an Issuer Request and receipt of an
Opinion of Counsel and an Officers’ Certificate complying with the provisions
of Section 1.02, the Subordinated Trustees for all series of Securities
(at the expense of the Issuer) shall execute proper instruments acknowledging
satisfaction and discharge of this Subordinated Indenture.

 

Notwithstanding the satisfaction and discharge of this Subordinated
Indenture, any obligations of the Issuer under Sections 3.04, 3.05, 3.06, 3.11,
4.02(b), 4.04, 5.16, 6.07, 6.10, 7.01 and 10.02 and the obligations of the
Subordinated Trustee for any series of Securities under Section 4.02 shall
survive.

 

SECTION 4.04.                Reinstatement.

 

If the Subordinated Trustee for any series of Securities is unable to
apply any of the amounts (for purposes of this Section 4.04,  “Amounts”) or U.S. Government Obligations, as
the case may be, described in Section 4.01(a)(1)(B)(i), (ii) or
(iii), respectively, in accordance with the provisions of Section 4.01 by
reason of any legal proceeding or any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, each of the obligations of the Issuer under this Subordinated
Indenture and the Securities of such series shall be revived and reinstated as
though no deposit had occurred pursuant to Section 4.01 until such time as
the Subordinated Trustee for such series is permitted to apply all such Amounts
or U.S. Governmental Obligations, as the case may be, in accordance with the
provisions of Section 4.01; provided,
however, that if, due to the reinstatement of its rights or obligations
hereunder, the Issuer has made any payment of principal of (or premium, if any,
on) or interest or Deferred Interest, if any, on such Securities, the Issuer
shall be subrogated to the rights of the Holders of such Securities to receive
payment from such Amounts or U.S. Government Obligations, as the case may be,
held by the Subordinated Trustee for such series.

 

ARTICLE
FIVE

REMEDIES

 

SECTION 5.01.                Events of Default.

 

“Event of Default” wherever used herein
with respect to any particular series of Securities means any one of the
following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

 

55

 

(a)           if an order is made by a court of
competent jurisdiction and is not successfully appealed within 30 days of the
making of such order, or an effective shareholders’ resolution is validly
adopted, for the winding up of the Issuer in England and Wales (except in the
case of winding-up solely for the purpose of a reconstruction or amalgamation
or substitution in place of the Issuer of a successor in business in each case
where the Securities remain outstanding and are assumed by such successor in
business on terms previously approved in writing by the Holders of not less
than 75% in aggregate principal amount of the Outstanding Securities of that
series); or

 

(b)           any other events of default provided with
respect to Securities of that series as set forth in the Board Resolution or
supplemental indenture executed pursuant to Section 3.01 hereof
establishing the terms of such series.

 

SECTION 5.02.                Acceleration of
Maturity; Rescission and Annulment.

 

(a)           Acceleration of Maturity. 
If an Event of Default with respect to any particular series of
Securities occurs and is continuing, the Subordinated Trustee for the
Securities of such series or the Holders of not less than 25% in aggregate
principal amount of the Outstanding Securities of that series shall have the
right to declare the principal amount of (including premium, if any, on), or
(in the case of Discounted Securities) such lesser amount as may be provided
for with respect to the Securities of such series and, to the extent provided
for in a Board Resolution or supplemental indenture executed pursuant to Section 3.01
hereof, any accrued but unpaid interest payments on, all the Outstanding Securities
of that series to be due and payable immediately, by a notice in writing to the
Issuer (and to the Subordinated Trustee if given by Holders).  Upon any such declaration of acceleration
such principal or such lesser amount, as the case may be, including premium, if
any, thereon, together with any accrued interest, Deferred Interest (but only
to the extent specifically provided for), and all other amounts owing
thereunder and hereunder (with respect to such series of Securities), shall
become immediately due and payable, without presentment, demand, protest or
notice of any kind, all of which are hereby expressly waived.

 

(b)           Recission and Annulment by Holders. 
At any time after such a declaration of acceleration has been made, but
before a judgment or decree for payment of the money due has been obtained by
the Subordinated Trustee for the Securities of any series as hereinafter in
this Article provided, the Holders of a majority in aggregate principal
amount of the Outstanding Securities of that series, by written notice to the
Issuer and such Subordinated Trustee, may rescind and annul such declaration
and its consequences, provided:

 

(1)           the Issuer has paid or deposited with
such Subordinated Trustee a sum sufficient to pay:

 

(A)          in the currency or currency unit in which
that series of Securities is payable (except as otherwise specified pursuant to
Section 3.01 for the Securities of such series and except as provided in
Sections 3.11(b), 3.11(d), and 3.11(e)), all overdue interest and, to the extent
provided for a series of 

 

56

 

Securities
pursuant to Section 3.01, all Deferred Interest on all Securities of that
series;

 

(B)           in the currency or currency unit in which
that series of Securities is payable (except as provided in Sections 3.11(b),
3.11(d), and 3.11(e)), the principal of (and premium, if any, on) any
Securities of that series which have become due otherwise than by such
declaration of acceleration and interest thereon from the date such principal
became due at a rate per annum equal to the rate borne by the Securities of
such series (or, in the case of Discounted Securities, the Securities’ Yield to
Maturity), to the extent that the payment of such interest shall be legally
enforceable;

 

(C)           in the currency or currency unit in which
that series of Securities is payable (except as provided in Sections 3.11(b),
3.11(d), and 3.11(e)), to the extent that payment of such interest is lawful
(unless otherwise provided with respect to a series of Securities pursuant to Section 3.01),
interest upon overdue interest at the rate or rates prescribed therefor in the
Securities of such series (or, unless otherwise specified pursuant to Section 3.01,
in the case of Discounted Securities, the Securities’ Yield to Maturity); and

 

(D)          in Dollars, all sums paid or advanced by
the Subordinated Trustee hereunder and the reasonable compensation, expenses,
disbursements and advances of such Subordinated Trustee, its agents and counsel
and all other amounts then due to such Subordinated Trustee under Section 6.07;
and

 

(2)           all Events of Default with respect to the
Securities of such series have been cured or remedied.

 

No such rescission shall affect any subsequent default or impair any
right consequent thereon.

 

SECTION 5.03.                Payment Defaults,
Perpetual Security Defaults, Payment Events.

 

(a)           Payment Defaults. 
Unless otherwise provided in the Board Resolution or supplemental
indenture executed pursuant to Section 3.01 establishing the terms of the
particular series, with respect to the Securities of any series of Dated
Subordinated Debt Securities, a “Payment Default” shall occur if the Issuer
fails to pay, or set aside, principal of (or premium, if any, on) or accrued
interest, if any, on any such Securities when due, and such failure continues
for 14 days, provided that:

 

(1)           if the Issuer does not pay or set aside
for payment an installment of interest on an Interest Payment Date with respect
to any Dated Subordinated Debt Securities, or

 

(2)           the Issuer does not pay or set aside for
payment all or any part of the principal of (or premium, if any, on) any such
Dated Subordinated Debt Securities on the Stated Maturity (if any) or any
Redemption Date,

 

57

 

the failure to make such
payment shall not constitute a “Payment Default”
and the obligation to make such payment shall be deferred until (i) in the
case of payment of interest, the applicable Deferred Interest Payment Date and (ii) in
the case of a payment of principal (or premium, if any), the Deferred Principal
Payment Date.

 

(b)           Perpetual Security Defaults. 
Unless otherwise provided in the Board Resolution or supplemental
indenture executed pursuant to Section 3.01 establishing the terms of the
particular series of Perpetual Subordinated Capital Securities or Perpetual
Subordinated Debt Securities, a “Perpetual Security Default”
shall occur if:

 

(1)           the Issuer fails to pay or set aside for
payment the amount due to satisfy any interest payment on a Compulsory Interest
Payment Date, and such failure continues for a period of 14 days, or

 

(2)           the Issuer fails to pay or set aside a
sum to provide for payment of the principal amount, or fails to pay or set
aside a sum to provide for payment of any accrued but unpaid interest and any
Deferred Interest on the date fixed for redemption of such series and such
failure continues for a period of 14 days,

 

the
failure to make or set aside such payment shall not constitute a “Perpetual Security Default”
and the obligation to make such payment shall be deferred until (i) in the
case of a payment of interest, the date upon which the Issuer pays a dividend
on any class of the Issuer’s share capital or the Issuer makes any payment on
any series of Junior Securities or debt securities ranking pari passu with such series of Perpetual
Subordinated Capital Securities or Perpetual Subordinated Debt Securities, as
the case may be, and (ii) in the case of a payment of principal (or
premium, if any), any accrued but unpaid interest or any Deferred Interest on a
date set for redemption, the first Business Day after the date that falls six
months after such payment was originally due.

 

(c)           Proceedings upon Occurrence of a Payment
Default or Perpetual Security Default.  Unless
otherwise provided in the Board Resolution or supplemental indenture executed
pursuant to Section 3.01 establishing the terms of the particular series,
if a Payment Default (with respect to Securities of any series of Dated
Subordinated Debt Securities), or a Perpetual Security Default (with respect to
any series of Perpetual Subordinated Capital Securities or Perpetual
Subordinated Debt Securities), occurs and is continuing, the Subordinated
Trustee for the Securities of such series may in its discretion commence (1) a
proceeding in England and Wales (but not elsewhere) for the winding up of the
Issuer or (2) a judicial proceeding for the collection of the sums so due
and unpaid; provided that the Subordinated Trustee may not declare the
principal amount of any such Securities to be due and payable.

 

(d)           Payment Events. 
Unless otherwise provided in the Board Resolution or supplemental
indenture executed pursuant to Section 3.01 establishing the terms of the
particular series of Securities, if the Issuer fails to pay the amount due to
satisfy any principal or interest payment that would have become due with
respect to such Securities but for the Solvency Condition not being satisfied,
such failure continues for fourteen days and the Solvency Condition is not
satisfied at the end of such fourteen-day 

 

58

 

period, such failure will not constitute a “Perpetual Security Default”, but instead
will constitute a “Payment Event”, together with any other Payment Event with
respect to any other series of Securities.

 

(e)           Certain Limitations. 
It shall not be a Payment Event, Payment Default or Perpetual Security
Default if such sums were not paid in order to comply with a statute,
regulation or order of any court of competent jurisdiction. Where there is
doubt as to the validity or applicability of any such statute, regulation or
order, it shall not be a Payment Event, Payment Default or Perpetual Security
Default if the Issuer acts on the advice given to it and to the Subordinated
Trustee, in the form of an Opinion of Counsel acceptable to the Subordinated
Trustee. However, the Issuer shall take action, including proceedings for a
court declaration, to resolve the doubt, if counsel to the Issuer advises that
the action is appropriate and reasonable. In this case, the Issuer shall
proceed with the action promptly and be bound by any final resolution of the
doubt. If such resolution is a determination that the Issuer can make the
relevant payment without violating any statute, regulation or order then the
payment shall become due and payable immediately after the Issuer has been
informed of the determination.

 

(f)            Proceeding upon the Occurrence of a
Payment Event.  Unless otherwise provided in the Board
Resolution or supplemental indenture executed pursuant to Section 3.01
establishing the terms of the particular series, if a Payment Event with
respect to a series of Perpetual Subordinated Debt Securities or Perpetual
Subordinated Capital Securities occurs and is continuing, the Subordinated
Trustee may institute proceedings in England and Wales (but not elsewhere) for
the winding up of the Issuer, but may not pursue any other legal remedy,
including a judicial proceedings for the collection of the sums so due and
unpaid.

 

(g)           Waiver of Certain Rights.  The
Subordinated Trustee for the Securities of a series waives on behalf of the
Holders of such Securities, and the Holder of any Security by his acceptance
thereof will be deemed to have waived, any right of set-off or counterclaim
that such Holders might otherwise have against the Issuer as the case may be,
whether prior to or in any such bankruptcy or winding up as referred to in this
Section 5.03. Notwithstanding the preceding sentence, if any of the rights
and claims of any Holder are discharged by set-off, such Holder will
immediately pay an amount equal to the amount of such discharge to the Issuer
or, if applicable, the liquidator or trustee or receiver in bankruptcy of the
Issuer, and until such time as payment is made will hold a sum equal to such amount
in trust for the Issuer or, if applicable, the liquidator or trustee or
receiver in bankruptcy of the Issuer. Accordingly, such discharge will be
deemed not to have taken place.

 

(h)           Certain Other Proceedings. 
If the Issuer fails to perform or observe any of its respective
obligations or covenants under the Securities of any particular series or the
Subordinated Indenture (other than any obligation or covenant (1) with
respect to the payment of any principal, interest, or Deferred Interest on such
Securities or (2) which has expressly been included in this Subordinated
Indenture solely for the benefit of Securities other than Securities of such a
series) and such failure continues for a period of 30 days after the date on
which there has been given, by 

 

59

 

registered or certified mail, to the Issuer by the
Subordinated Trustee or to the Issuer and the Subordinated Trustee by the
Holders of at least 25% in aggregate principal amount of the Outstanding Securities
of such a series a written notice specifying such default or breach and
requiring it to be remedied, then the Subordinated Trustee or the Holders of at
least 25% in aggregate principal amount of the Outstanding Securities of such a
series may institute such proceedings or take such other actions as they shall
determine in their sole discretion to enforce such obligation or covenant;
provided that the Issuer shall not as a consequence of such proceedings or
other actions be obligated to pay any sum or sums representing or measured by
reference to the principal, premium, if any, or interest (including Deferred
Interest) in respect of any such Securities sooner than the same would
otherwise have been due and payable by the Issuer.

 

SECTION 5.04.                Subordinated Trustee May File
Proofs of Claim.

 

In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relating to the Issuer or any other obligor upon the
Securities of any series or the property of the Issuer or of such other obligor
or their creditors, the Subordinated Trustee for the Securities of such series
(irrespective of whether the principal (or lesser amount in the case of
Discounted Securities) of any Security of such series shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of
whether such Subordinated Trustee shall have made any demand on the Issuer for
the payment of overdue principal, interest, or Deferred Interest (if the same
has not been paid on the date on which the same shall have become due and
payable as provided for in the Board Resolution or supplemental indenture
executed pursuant to Section 3.01) shall be entitled and empowered, by intervention
in such proceeding or otherwise:

 

(1)           to file and prove a claim for the whole
amount of principal (or lesser amount in the case of Discounted Securities)
(and premium, if any) and interest, Deferred Interest, if any, owing and unpaid
in respect of the Securities of such series and to file such other papers or
documents as may be necessary or advisable in order to have the claims of such
Subordinated Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of such Subordinated Trustee, its agents
and counsel and all other amounts due to such Subordinated Trustee under Section 6.07)
and of the Holders of the Securities of such series allowed in such judicial
proceeding;

 

(2)           to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the
same; and

 

(3)           unless prohibited by law or applicable
regulations, to vote on behalf of the Holders of the Securities of such series
in any election of a trustee in bankruptcy, liquidator or other persons
performing similar functions;

 

and
any receiver, assignee, trustee, liquidator, sequestrator (or other similar
official) in any such judicial proceeding is hereby authorized by each Holder
of Securities to make such payments to such Subordinated Trustee, and in the
event that such Subordinated 

 

60

 

Trustee
shall consent to the making of such payments directly to the Holders of
Securities, to pay to such Subordinated Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of such
Subordinated Trustee, its agents and counsel and any other amounts due such
Subordinated Trustee under Section 6.07.

 

Nothing herein contained shall be deemed to authorize the Subordinated
Trustee for the Securities of any series to authorize or consent to or accept
or adopt on behalf of any Holder of a Security any plan of reorganization,
arrangement, adjustment or composition affecting the Securities of such series
or the rights of any Holder thereof, or to authorize the Subordinated Trustee
for the Securities of any series to vote in respect of the claim of any Holder
in any such proceeding, except as aforesaid, for the election of a trustee in
bankruptcy or other person performing similar functions.

 

SECTION 5.05.                Subordinated Trustee May Enforce
Claims Without Possession of Securities.

 

All rights of action and claims under this Subordinated Indenture or
the Securities of any series may be prosecuted and enforced by the Subordinated
Trustee for the Securities of any series without the possession of any of the
Securities of such series or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by such Subordinated Trustee shall
be brought in its own name as trustee of an express trust, and any recovery of
judgment shall, after provision for the payment of the reasonable compensation,
expenses, disbursements and advances of such Subordinated Trustee, its agents
and counsel and all other amounts due to such Subordinated Trustee under Section 6.07,
be for the ratable benefit of the Holders of the Securities of such series in
respect of which such judgment has been recovered.

 

SECTION 5.06.                Application of Money Collected.

 

Subject to Article Thirteen, any money collected by the
Subordinated Trustee for the Securities of any series pursuant to this Article with
respect to the Securities of such series shall be applied in the following
order, at the date or dates fixed by such Subordinated Trustee and, in case of
the distribution of such money on account of principal (or lesser amount in the
case of Discounted Securities) (or premium, if any) or interest or Deferred
Interest, if any, upon presentation of the Securities of such series and the
notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

 

First:  To the payment of all
amounts due such Subordinated Trustee under Section 6.07;

 

Second:  To the payment of the
amounts then due and unpaid upon the Securities of such series for principal
(or lesser amount in the case of Discounted Securities) of (and premium, if
any, on) and interest and Deferred Interest, if any, on such Securities in
respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the amounts
due and 

 

61

 

payable on such Securities for principal (or lesser
amount in the case of Discounted Securities) (and premium, if any) and interest
and Deferred Interest, if any, respectively; and

 

Third:  The balance, if any, to
the Person or Persons entitled thereto.

 

SECTION 5.07.                Limitation on Suits.

 

Except as set forth in Section 5.08, no Holder of any Security of
any particular series shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Subordinated Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder,
unless:

 

(a)           an Event of Default, Payment Default,
Perpetual Security Default, Payment Event or other default as specified in Section 5.03(g) with
respect to that series shall have occurred and be continuing and such Holder
shall have previously given written notice to the Subordinated Trustee for the
Securities of such series of such Event of Default, Payment Default, Perpetual
Security Default, Payment Event or other default as specified in Section 5.03(g) and
the continuance thereof;

 

(b)           the Holders of not less than 25% in
aggregate principal amount of the Outstanding Securities of that series shall
have made written request to the Subordinated Trustee for the Securities of
such series to institute proceedings in respect of such Event of Default,
Payment Default, Perpetual Security Default, Payment Event or other default as
specified in Section 5.03(g) in its own name as Trustee hereunder;

 

(c)           such Holder or Holders have offered to
such Subordinated Trustee indemnity satisfactory to it against the costs,
expenses and liabilities to be incurred in compliance with such request;

 

(d)           such Subordinated Trustee for 60 days
after its receipt of such notice, request and offer of indemnity has failed to
institute any such proceeding; and

 

(e)           no direction inconsistent with such
written request has been given to such Subordinated Trustee during such 60-day
period by the Holders of a majority in aggregate principal amount of the
Outstanding Securities of that series;

 

it
being understood and intended that no one or more Holders of Securities of that
series shall have any right in any manner whatever by virtue of, or by availing
of, any provision of this Indenture to affect, disturb or prejudice the rights
of any other Holders of Securities of that series, or to enforce any right
under this Subordinated Indenture, except in the manner herein provided and for
the equal and ratable benefit of all the Holders of Securities of that series.

 

62

 

SECTION 5.08.                Unconditional Right of
Holders to Receive Principal (and Premium, if any) and Interest, if any.

 

Notwithstanding any other provision in this Subordinated Indenture, but
subject to Section 3.07 hereof, and subject further to the obligation to
make Deferred Interest Payments pursuant to the Alternative Coupon Satisfaction
Mechanism, as and to the extent set forth in a Board Resolution or supplemental
indenture executed pursuant to Section 3.01 hereof establishing the terms
of the relevant series of Securities, the Holder of any Security shall have the
right which is absolute and unconditional to receive payment of the principal
of (and premium, if any, on)  and
interest, if any, on such Security on the Stated Maturity, Deferred Interest
Payment Date or Deferred Principal Payment Date, as the case may be, expressed
in any such Security (or, in the case of redemption, on the Redemption Date)
and to institute suit for the enforcement of any such payment and such right
shall not be impaired without the consent of such Holder.

 

SECTION 5.09.                Restoration of Rights and
Remedies.

 

If the Subordinated Trustee for the Securities of any series or any
Holder of a Security has instituted any proceeding to enforce any right or
remedy under this Subordinated Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
such Subordinated Trustee or to such Holder, then and in every such case the
Issuer such Subordinated Trustee and the Holders of Securities shall, subject
to any determination in such proceeding, be restored severally and respectively
to their former positions hereunder, and thereafter all rights and remedies of
such Subordinated Trustee and such Holders shall continue as though no such
proceeding had been instituted.

 

SECTION 5.10.                Rights and Remedies Cumulative.

 

Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities in the last paragraph of Section 3.06,
no right or remedy herein conferred upon or reserved to the Subordinated
Trustee for the Securities of any series or to the Holders of Securities is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise.  The
assertion or employment of any right or remedy hereunder, or otherwise, shall
not prevent the concurrent assertion or employment of any other appropriate
right or remedy.

 

SECTION 5.11.                Delay or Omission Not Waiver.

 

No delay or omission of the Subordinated Trustee for the Securities of
any series or of any Holder of any Security of such series to exercise any
right or remedy accruing upon any Event of Default, Payment Default, Perpetual
Security Default, Payment Event or other default as specified in Section 5.03(g) with
respect to the Securities of such series shall impair any such right or remedy
or constitute a waiver of any such Event of Default, Payment Default, Perpetual
Security Default, Payment Event 

 

63

 

or other default as specified in Section 5.03(g) or
an acquiescence therein.  Every right and
remedy given by this Article or by law to such Subordinated Trustee for
the Securities of any series or to the Holders may be exercised from time to
time, and as often as may be deemed expedient, by such Subordinated Trustee or
by the Holders, as the case may be.

 

SECTION 5.12.                Control by Holders.

 

Subject to Section 6.03, the Holders of a majority in aggregate
principal amount of the Outstanding Securities of any particular series shall
have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Subordinated Trustee for the Securities
of such series with respect to the Securities of that series or exercising any
trust or power conferred on such Subordinated Trustee with respect to such
Securities; provided that:

 

(1)           the Subordinated Trustee may refuse to
follow any direction in conflict with any rule of law or with this
Subordinated Indenture or which is unjustly prejudicial to the Holders of the
Securities of that series not taking part in the direction;

 

(2)           the Subordinated Trustee need not take
any action which might involve it in personal liability; and

 

(3)           such Subordinated Trustee may take any
other action deemed proper by such Subordinated Trustee which is not
inconsistent with such direction.

 

SECTION 5.13.                Waiver of Past Defaults.

 

The Holders of not less than a majority in aggregate principal amount
of the Outstanding Securities of any particular series may on behalf of the
Holders of all the Securities of that series waive any past default hereunder
with respect to that series and its consequences, except:

 

(1)           a default in the payment of the principal
of (or premium, if any, on) or interest or Deferred Interest, if any, on any
Security of that series; or

 

(2)           a default with respect to a covenant or
provision hereof which under Article Nine cannot be modified or amended without
the consent of the Holder of each Outstanding Security of that series affected.

 

Upon any such waiver, such default shall cease to exist, and shall be
deemed to have been cured, for every purpose of this Subordinated Indenture;
but no such waiver shall extend to any subsequent or other default or impair
any right consequent thereon.

 

SECTION 5.14.                Undertaking for Costs.

 

All parties to this Subordinated Indenture agree, and each Holder of
any Security by his acceptance thereof shall be deemed to have agreed, that any
court may in 

 

64

 

its discretion require, in any suit for the
enforcement of any right or remedy under this Subordinated Indenture or in any
suit against the Subordinated Trustee for the Securities of any series for any
action taken or omitted by it as Subordinated Trustee, the filing by any party
litigant in such suit of an undertaking to pay the costs of such suit, and that
such court may in its discretion assess reasonable costs, including reasonable
attorneys’ fees and expenses, against any party litigant in such suit, having
due regard to the merits and good faith of the claims or defenses made by such
party litigant; but the provisions of this Section shall (subject to
applicable laws) not apply to any suit instituted by the Subordinated Trustee
for the Securities of any series, to any suit instituted by any Holder, or
group of Holders, holding in the aggregate more than 10% in aggregate principal
amount of the Outstanding Securities of any particular series or to any suit
instituted by any Holder of any Security for the enforcement of the payment of
the principal of (or premium, if any, on) or interest, if any, or Deferred
Interest, if any, on any Security of such series on or after the respective
Stated Maturities, if any, expressed in such Security or the date the same
becomes due and payable as expressed herein or in such Security (or, in the
case of redemption or conversion or exchange, on or after the Redemption Date
or the Event Date, as the case may be).

 

SECTION 5.15.                Waiver of Stay or Extension Laws.

 

The Issuer covenants (to the extent that it may lawfully do so) that it
will not at any time insist upon, or plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay or extension law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Subordinated Indenture; and the Issuer (to the
extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law, and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Subordinated Trustee
for any series of Securities, but will suffer and permit the execution of every
such power as though no such law had been enacted.

 

SECTION 5.16.                Judgment Currency.

 

If, for the purpose of obtaining a judgment in any court with respect
to any obligation of the Issuer hereunder or under any Security it shall become
necessary to convert into any other currency or currency unit any amount in the
currency or currency unit due hereunder or under such Security then such
conversion shall be made by the Issuer or the Currency Determination Agent at
the Market Exchange Rate as in effect on the date of entry of the judgment (the
“Judgment Date”).  If pursuant to any
such judgment, conversion shall be made on a date (the “Substitute Date”) other
than the Judgment Date and there shall occur a change between the Market
Exchange Rate as in effect on the Judgment Date and the Market Exchange Rate as
in effect on the Substitute Date, the Issuer agrees to pay such additional
amounts (if any) as may be necessary to ensure that the amount paid is equal to
the amount in such other currency or currency unit which, when converted at the
Market Exchange Rate as in effect on the Judgment Date, is the amount due
hereunder or under such Security.  Any
amount due from the Issuer under this Section 5.16 shall be due as a
separate debt and is not to be affected by or merged into any judgment being
obtained for any other sum due hereunder or in respect of any 

 

65

 

Security as the case may be.  In no event, however, shall the Issuer be
required to pay more in the currency or currency unit due hereunder or under
such Security at the Market Exchange Rate as in effect on the Judgment Date
than the amount of currency or currency unit stated to be due hereunder or
under such Security so that in any event the obligations of the Issuer hereunder
or under such Security will be effectively maintained as obligations in such
currency or currency unit, and the Issuer shall be entitled to withhold (or be
reimbursed for, as the case may be) any excess of the amount actually realized
upon any such conversion on the Substitute Date over the amount due and payable
on the Judgment Date.

 

ARTICLE
SIX

THE SUBORDINATED TRUSTEE

 

SECTION 6.01.                Certain Duties and
Responsibilities.

 

(a)           Except during the continuance of an Event
of Default, Payment Default, Perpetual Security Default, Payment Event or other
default as specified herein with respect to the Securities of any series for
which the Subordinated Trustee is serving as such:

 

(1)           such Subordinated Trustee undertakes to
perform such duties and only such duties as are specifically set forth in this
Subordinated Indenture, and no implied covenants or obligations shall be read
into this Subordinated Indenture against such Subordinated Trustee; and

 

(2)           in the absence of bad faith on its part,
such Subordinated Trustee may conclusively rely, as to the truth of the
statements and correctness of the opinions expressed therein, upon certificates
or opinions furnished to such Subordinated Trustee and conforming to the
requirements of this Subordinated Indenture; but in the case of any such
certificates or opinions which by any provisions hereof are specifically
required to be furnished to such Subordinated Trustee, such Subordinated
Trustee shall be under a duty to examine the same to determine whether or not
they conform to the requirements of this Subordinated Indenture (but need not
confirm or investigate the accuracy of mathematical calculations or other facts
stated therein).

 

(b)           In case an Event of Default, Payment
Default, Perpetual Security Default, Payment Event or other default as
specified herein with respect to a series of Securities has occurred and is
continuing, the Subordinated Trustee for the Securities of such series shall
exercise such of the rights and powers vested in it by this Subordinated Indenture,
and use the same degree of care and skill in their exercise, as a prudent
person would exercise or use under the circumstances in the conduct of his own
affairs.  The Subordinated Trustee will
be under no obligation to exercise any of its rights or powers under the
Subordinated Indenture at the request of any Holder of Subordinated Debt
Securities, unless such Holder shall have offered to the Subordinated Trustee
security and indemnity reasonably satisfactory to the Subordinated Trustee
against any other loss, 

 

66

 

liability or expense, and then only to the extent
required by the terms of the Subordinated Indenture.

 

(c)           No provision of this Subordinated
Indenture shall be construed to relieve the Subordinated Trustee for Securities
of any series from liability for its own negligent action, its own negligent
failure to act, or its own willful misconduct, except that:

 

(1)           this Subsection shall not be construed to
limit the effect of Subsection (a) of this Section;

 

(2)           such Subordinated Trustee shall not be
liable for any error of judgment made in good faith by a Responsible Officer,
unless it shall be proved that the Subordinated Trustee was negligent in
ascertaining the pertinent facts;

 

(3)           such Subordinated Trustee shall not be
liable with respect to any action taken, suffered or omitted to be taken by it
in good faith in accordance with a direction received by it pursuant to
Sections 5.02, 5.07, 5.12 or 5.13 or exercising any trust or power conferred upon
such Subordinated Trustee, under this Subordinated Indenture with respect to
the Securities of that series; and

 

(4)           no provision of this Subordinated
Indenture shall require the Subordinated Trustee for any series of Securities
to expend or risk its own funds or otherwise incur any financial liability in
the performance of any of its duties hereunder or in the exercise of any of its
rights or powers.

 

(d)           Whether or not therein expressly so
provided, every provision of this Subordinated Indenture relating in any way to
the Subordinated Trustee for any series of Securities shall be subject to the
provisions of this Section.

 

SECTION 6.02.                Notice of Default.

 

Within 90 days after the occurrence of any Event of Default, Payment
Default, Perpetual Security Default, Payment Event or other default hereunder
with respect to Securities of any particular series, the Subordinated Trustee
for the Securities of such series shall give to Holders of Securities of that
series, in the manner set forth in Section 1.06, notice of such default,
if actually known to such Subordinated Trustee, unless such default shall have
been cured or waived; provided, however,
that, except in the case of a default in the payment of the principal of (or
premium, if any, on) or interest or Deferred Interest, if any, on any Security
of that series, the Subordinated Trustee shall be protected in withholding such
notice if and so long as it determines in good faith that the withholding of
such notice is in the interests of the Holders of Securities of that series;
and provided, further, that in the case of
any default of the character specified in Section 5.03(h) with
respect to Securities of that series no such notice to Holders shall be given
until at least 60 days after the occurrence thereof.

 

67

 

SECTION 6.03.                Certain Rights of Subordinated
Trustee.

 

Except as otherwise provided in Section 6.01:

 

(1)           the Subordinated Trustee for any series
of Securities may conclusively rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, discretion, consent, order, bond, debenture,
coupon or other paper or document believed by it to be genuine and to have been
signed or presented by the proper party or parties;

 

(2)           any request or direction of the Issuer
mentioned herein shall be sufficiently evidenced by an Issuer Request or Issuer
Order from the Issuer and any resolution of the Board of Directors of the
Issuer may be sufficiently evidenced by a Board Resolution;

 

(3)           whenever in the administration of this
Subordinated Indenture such Subordinated Trustee shall deem it desirable that a
matter be proved or established prior to taking, suffering or omitting any
action hereunder, such Subordinated Trustee (unless other evidence be herein
specifically prescribed) may, in the absence of bad faith on its part,
conclusively rely upon an Officers’ Certificate;

 

(4)           such Subordinated Trustee may consult
with counsel of its selection and the advice of such counsel or any Opinion of
Counsel shall be full and complete authorization and protection in respect of
any action taken, suffered or omitted by it hereunder in good faith and in
reliance thereon;

 

(5)           such Subordinated Trustee shall be under
no obligation to exercise any of the rights or powers vested in it by this
Subordinated Indenture at the request or direction of any of the Holders of
Securities of any series pursuant to this Subordinated Indenture for which it
is acting as Subordinated Trustee, unless such Holders shall have offered to
such Subordinated Trustee security or indemnity satisfactory to it against the
costs, expenses and liabilities that might be incurred by it in compliance with
such request or direction;

 

(6)           such Subordinated Trustee shall not be
bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, coupon or other paper or
document, but such Subordinated Trustee, in its discretion, may make such
further inquiry or investigation into such facts or matters as it may see
fit,  and, if such Subordinated Trustee
shall determine to make such further inquiry or investigation, it shall be
entitled to examine the books, records and premises of the Issuer personally or
by agent or attorney;

 

(7)           such Subordinated Trustee may execute any
of the trusts or powers hereunder or perform any duties hereunder either
directly or by or through agents or attorneys and such Subordinated Trustee
shall not be responsible for any misconduct or negligence on the part of any
agent or attorney appointed with due care by it hereunder;

 

68

 

(8)           such Subordinated Trustee shall have no
duties or responsibilities with respect to and shall have no liability for the
actions taken or the failures to act of any other Subordinated Trustees
appointed hereunder;

 

(9)           such Subordinated Trustee shall not be
liable for any action taken, suffered or omitted to be taken by it in good
faith and reasonably believed by it to be authorized or within the discretion
or rights or powers conferred upon it by this Indenture;

 

(10)         such Subordinated Trustee shall not be
deemed to have notice of any default or Event of Default unless a Responsible
Officer of the Subordinated Trustee has actual knowledge thereof or unless
written notice of any event which is in fact such a default is received by the
Subordinated Trustee at the Corporate Trust Office of the Subordinated Trustee,
and such notice references the Securities and this Subordinated Indenture;

 

(11)         the rights, privileges, protections,
immunities and benefits given to the Subordinated Trustee, including, without
limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Subordinated Trustee in each of its capacities hereunder,
and to each agent, custodian and other Person employed to act hereunder;

 

(12)         before the Subordinated Trustee acts or
refrains from acting, the Subordinated Trustee may request that the Issuer
deliver an Officers’ Certificate setting forth the names of individuals and/or
titles of officers authorized at such time to take specified actions pursuant
to this Indenture, which Officers’ Certificate may be signed by any person
authorized to sign an Officers’ Certificate, including any person specified as
so authorized in any such certificate previously delivered and not superseded;
and

 

(13)         such Subordinated Trustee and its agents
shall not incur any liability for not performing any act of fulfilling any
duty, obligation or responsibility hereunder by reason of any occurrence beyond
the control of the Trustee or agents (including but not limited to any act of
God or war, civil unrest, local or national disaster, or any act of terrorism).

 

SECTION 6.04.                Not Responsible for
Recitals or Issuance of Securities.

 

The recitals and statements contained herein and in the Securities
(except the Subordinated Trustee’s certificate of authentication) shall be
taken as the recitals and statements of the Issuer, and the Subordinated
Trustee for any series of Securities assumes no responsibility for their
correctness.  The Subordinated Trustee
for any series of Securities makes no representations as to the validity or
sufficiency of this Subordinated Indenture or of the Securities of any series
(except for the Subordinated Trustee’s certificates of authentication
thereof).  The Subordinated Trustee for
any series of Securities shall not be accountable for the use or application by
the Issuer of the Securities or the proceeds thereof. The Subordinated Trustee
shall have no duty to 

 

69

 

ascertain or inquire as to the performance of the
Issuer’s covenants in Article Ten hereof or otherwise established by the
terms of any Security.

 

SECTION 6.05.                May Hold Securities.

 

The Subordinated Trustee for any series of Securities, any Paying
Agent, Security Registrar or any other agent of the Issuer or such Subordinated
Trustee, in its individual or any other capacity, may become the owner or
pledgee of Securities and, subject to Sections 6.08 and 6.13, may otherwise
deal with the Issuer, with the same rights it would have if it were not such
Subordinated Trustee, Paying Agent, Security Registrar or such other agent.

 

SECTION 6.06.                Money Held in Trust.

 

Money held by the Subordinated Trustee for any series of Securities in
trust hereunder need not be segregated from other funds except to the extent
required by law.  The Subordinated
Trustee for any series of Securities shall be under no liability for interest
on any money received by it hereunder except as otherwise agreed in writing
with the Issuer.

 

SECTION 6.07.                Compensation and Reimbursement.

 

The Issuer agrees:

 

(1)           to pay to the Subordinated Trustee for any
series of Securities from time to time such compensation for all services
rendered by it hereunder as the Issuer and the Subordinated Trustee shall
mutually agree upon in writing (which compensation shall not be limited by any
provision of law in regard to the compensation of a trustee of an express
trust);

 

(2)           except as otherwise expressly provided
herein, to reimburse the Subordinated Trustee for any series of Securities upon
its request for all reasonable expenses, disbursements and advances incurred or
made by such Subordinated Trustee in accordance with any provision of this
Subordinated Indenture (including the reasonable compensation and the expenses
and disbursements of its agents and counsel), except any such expense,
disbursement or advance as may be attributable to its negligence or willful
misconduct; and

 

(3)           to indemnify such Subordinated Trustee
and its officers, directors and employees for, and to hold it harmless against,
any loss, liability or reasonable expense incurred without negligence or
willful misconduct on its part, arising out of or in connection with the
acceptance or administration of this trust, including the reasonable costs and
expenses of defending itself against any claim (whether assented to by the
Issuer, any Holder or any other Person) or liability in connection with the
exercise or performance of any of its powers or duties hereunder.

 

As security for the performance of the obligations of the Issuer under
this Section the Subordinated Trustee for any series of Securities shall
have a lien prior to the 

 

70

 

Securities upon all property and funds held or
collected by such Subordinated Trustee as such, except funds held in trust for
the payment of principal of (or premium, if any, on) or interest or Deferred
Interest, if any, on particular Securities.

 

When the Subordinated Trustee incurs expenses or renders services in
connection with an Event of Default specified in Section 5.01, the
expenses (including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable Federal or state bankruptcy, insolvency or
other similar law.

 

The rights of the Subordinated Trustee under this Section 6.07
shall survive the resignation or removal of the Subordinated Trustee, the
payment in full of the Securities for which it is the Subordinated Trustee, the
satisfaction and discharge of this Subordinated Indenture, and the termination
hereof.

 

SECTION 6.08.                Disqualification; Conflicting
Interests.

 

The Subordinated Trustee for the Securities shall be subject to the
provisions of Section 310(b) of the Trust Indenture Act during the
period of time required thereby.  Nothing
herein shall prevent the Subordinated Trustee from filing with the Commission
the application referred to in the penultimate paragraph of Section 310(b) of
the Trust Indenture Act.  In determining
whether the Subordinated Trustee has a conflicting interest as defined in Section 310(b) of
the Trust Indenture Act with respect to the Securities of any series, there
shall be excluded Securities of any particular series of Securities other than
that series.  If the Subordinated Trustee
has or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act, the Subordinated Trustee shall either eliminate such interest or
resign, to the extent and in the manner provided by, and subject to the
provisions of, the Trust Indenture Act and this Subordinated Indenture.

 

SECTION 6.09.                                           Corporate Subordinated
Trustee Required; Different Subordinated Trustees for Different Series;
Eligibility.

 

There shall at all times be a Subordinated Trustee
hereunder which shall be:

 

(1)           a corporation organized and doing
business under the laws of the United States of America, any state thereof, or
the District of Columbia, authorized under such laws to exercise corporate
trust power and subject to supervision or examination by Federal or State
authority; or

 

(2)           a corporation or other Person organized
and doing business under the laws of a foreign government that is permitted to
act as Subordinated Trustee pursuant to a rule, regulation, or other order of
the Commission, authorized under such laws to exercise corporate trust powers,

 

and
which shall have at all times a combined capital and surplus of at least
$50,000,000.  If such corporation or
other Person publishes reports of condition at least annually, 

 

71

 

pursuant
to law or to requirements of the aforesaid supervising or examining authority,
then for the purposes of this Section, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published.  Neither the Issuer, any other obligor upon
the Securities or any Person directly or indirectly controlling, controlled by,
or under common control with the Issuer or any other obligor upon the
Securities shall serve as Subordinated Trustee for any of the Securities.  A different Subordinated Trustee may be
appointed by the Issuer for any series of Securities prior to the issuance of
such Securities.  If the initial Subordinated
Trustee for any series of Securities is to be other than Deutsche Bank Trust
Company Americas, the Issuer and such Subordinated Trustee shall, prior to the
issuance of such Securities, execute and deliver an indenture supplemental
hereto, which shall provide for the appointment of such Subordinated Trustee as
Subordinated Trustee for the Securities of such series and shall add to or
change any of the provisions of this Subordinated Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Subordinated Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such
Subordinated Trustees co-trustees of the same trust and that each such
Subordinated Trustee shall be trustee of a trust or trusts hereunder separate
and apart from any trust or trusts hereunder administered by any other such
Subordinated Trustee.  If at any time the
Subordinated Trustee for the Securities of any series shall cease to be
eligible in accordance with the provisions of this Section, it shall resign immediately
in the manner and with the effect hereunder specified in this Article.

 

SECTION 6.10.                Resignation and
Removal; Appointment of Successor.

 

(a)           No resignation or removal of the
Subordinated Trustee for the Securities of any series and no appointment of a
successor Subordinated Trustee pursuant to this Article shall become
effective until the acceptance of appointment by the successor Subordinated
Trustee in accordance with the applicable requirements of Section 6.11.

 

(b)           The Subordinated Trustee for the
Securities of any series may resign at any time with respect to the Securities
of such series by giving written notice thereof to the Issuer.  If the instrument of acceptance by a
successor Subordinated Trustee required by Section 6.11 shall not have
been delivered to the Subordinated Trustee for the Securities of such series
within 30 days after the giving of such notice of resignation, the resigning
Subordinated Trustee may petition, at the expense of the Issuer, any court of
competent jurisdiction for the appointment of a successor Subordinated Trustee
with respect to the Securities of such series.

 

(c)           The Subordinated Trustee for the
Securities of any series may be removed at any time with respect to the
Securities of such series by Act of the Holders of a majority in aggregate
principal amount of the Outstanding Securities of such series, delivered to
such Subordinated Trustee and to the Issuer. 
If the instrument of acceptance by a successor Subordinated Trustee
required by Section 6.11 shall not have been delivered to the Subordinated
Trustee for the Securities of such series within 30 days after the giving of
such notice of removal, the Subordinated Trustee being removed may 

 

72

 

petition, at the expense of the Issuer, any court of
competent jurisdiction for the appointment of a successor Subordinated Trustee
with respect to the Securities of such series.

 

(d)           If at any time:

 

(1)           the Subordinated Trustee for the
Securities of any series shall fail to comply with Section 310(b) of
the Trust Indenture Act pursuant to Section 6.08 hereof after written
request therefor by the Issuer or by any Holder who has been a bona  fide Holder of a Security of such series for
at least six months, unless the Subordinated Trustee’s duty to resign is stayed
in accordance with the provisions of Section 310(b) of the Trust
Indenture Act; or

 

(2)           such Subordinated Trustee shall cease to
be eligible under Section 6.09 and shall fail to resign after written
request therefor by the Issuer, or by any such Holder; or

 

(3)           such Subordinated Trustee shall become
incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver
of such Subordinated Trustee or of its property shall be appointed or any
public officer shall take charge or control of such Subordinated Trustee or of
its property or affairs for the purpose of rehabilitation, conservation or
liquidation; or

 

(4)           if an administrative or other receiver or
an administrator or other similar official is appointed in relation to such
Subordinated Trustee or in relation to the whole or a material part of the
assets of such Subordinated Trustee, or an encumbrancer takes possession of the
whole or a material part of the assets of such Subordinated Trustee, or a distress
or execution or other process is levied or enforced upon or sued out against
the whole or a material part of the assets of such Subordinated Trustee, or if
such Subordinated Trustee shall commence a voluntary case or proceeding under
any applicable Bankruptcy Law, or any other case or proceeding to be
adjudicated as bankrupt or insolvent, or such Subordinated Trustee shall
consent to the appointment of or taking possession by a receiver, custodian,
liquidator, assignee, trustee, sequestrator (or other similar official) of such
Subordinated Trustee or its property or affairs, or shall make an assignment
for the benefit of creditors, or shall admit in writing its inability to pay
its debts generally as they become due, or shall take corporate action in furtherance
of any such action;

 

then,
in any such case, (i) the Issuer by a Board Resolution may remove such
Subordinated Trustee or (ii) subject to Section 5.14, any Holder who
has been a bona fide Holder of a Security of such
series for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the
removal of such Subordinated Trustee and the appointment of a successor
Subordinated Trustee.

 

(e)           If the Subordinated Trustee for the
Securities of any series shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Subordinated Trustee for
the Securities of any series for any cause, the Issuer, 

 

73

 

by a Board Resolution, shall promptly appoint a
successor Subordinated Trustee with respect to the Securities of such series
and shall comply with the applicable requirements of Section 6.11.  If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor
Subordinated Trustee with respect to the Securities of such series shall be
appointed by Act of the Holders of a majority in aggregate principal amount of
the Outstanding Securities of such series delivered to the Issuer and the
retiring Subordinated Trustee, the successor Subordinated Trustee so appointed
shall, forthwith upon its acceptance of such appointment in accordance with the
applicable requirements of Section 6.11, become the successor Subordinated
Trustee for the Securities of such series and supersede the successor
Subordinated Trustee appointed by the Issuer. 
If no successor Subordinated Trustee for the Securities of such series
shall have been so appointed by the Issuer or the Holders and shall have
accepted appointment in the manner required by Section 6.11, and if such
Subordinated Trustee is still incapable of acting, any Holder who has been a bona fide Holder of a Security of such
series for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the
appointment of a successor Subordinated Trustee with respect to the Securities
of such series.

 

(f)            The Issuer shall give notice of each
resignation and each removal of the Subordinated Trustee with respect to the
Securities of any series and each appointment of a successor Subordinated
Trustee with respect to the Securities of any series in the manner and to the
extent provided in Section 1.06. 
Each notice shall include the name of the successor Subordinated Trustee
with respect to the Securities of that series and the address of its Corporate
Trust Office.

 

SECTION 6.11.                Acceptance of Appointment by
Successor.

 

(a)           Every successor Subordinated Trustee
appointed hereunder with respect to the Securities of any series shall execute,
acknowledge and deliver to the Issuer and to the retiring Subordinated Trustee
an instrument accepting such appointment, and thereupon the resignation or
removal of the retiring Subordinated Trustee shall become effective and such
successor Subordinated Trustee, without any further act, deed or conveyance,
shall become vested with all the rights, powers, trusts and duties of the
retiring Subordinated Trustee; but, on the request of the Issuer or the
successor Subordinated Trustee, such retiring Subordinated Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such
successor Subordinated Trustee all the rights, powers and trusts of the
retiring Subordinated Trustee and shall duly assign, transfer and deliver to
such successor Subordinated Trustee all property and money held by such
retiring Subordinated Trustee hereunder.

 

(b)           In case of the appointment hereunder of a
successor Subordinated Trustee with respect to the Securities of one or more
(but not all) series, the Issuer, the retiring Subordinated Trustee and each
successor Subordinated Trustee with respect to the Securities of one or more
series shall execute and deliver an indenture supplemental hereto wherein each
successor Subordinated Trustee shall accept such appointment and which (i) shall
contain such provisions as shall be necessary or desirable to transfer to, and
to vest in, each successor Subordinated Trustee all the rights, powers, trusts
and 

 

74

 

duties of the retiring Subordinated Trustee with
respect to the Securities of that or those series to which the appointment of
such successor Subordinated Trustee relates, (ii) if the retiring
Subordinated Trustee is not retiring with respect to all Securities, shall
contain such provisions as shall be deemed necessary or desirable to confirm
that all the rights, powers, trusts and duties of the retiring Subordinated
Trustee with respect to the Securities of that or those series as to which the
retiring Subordinated Trustee is not retiring shall continue to be vested in
the retiring Subordinated Trustee and (iii) shall add to or change any of
the provisions of this Subordinated Indenture as shall be necessary to provide
for or facilitate the administration of the trusts hereunder by more than one
Subordinated Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Subordinated Trustees co-trustees
of the same trust and each such Subordinated Trustee shall be trustee of a
trust or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Subordinated Trustee; and upon the execution and
delivery of such supplemental subordinated indenture the resignation or removal
of the retiring Subordinated Trustee shall become effective to the extent
provided therein and each such successor Subordinated Trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Subordinated Trustee with respect to
the Securities of that or those series to which the appointment of such
successor Subordinated Trustee relates; but, on request of the Issuer or any
successor Subordinated Trustee, such retiring Subordinated Trustee shall duly
assign, transfer and deliver to such successor Subordinated Trustee all
property and money held by such retiring Subordinated Trustee hereunder with
respect to the Securities of that or those series to which the appointment of
such successor Subordinated Trustee relates.

 

(c)           Upon request of any such successor
Subordinated Trustee, the Issuer shall execute any and all instruments for more
fully and certainly vesting in and confirming to such successor Subordinated
Trustee all such rights, powers and trusts referred to in Subsections (a) or
(b) of this Section, as the case may be.

 

(d)           No successor Subordinated Trustee shall
accept its appointment unless at the time of such acceptance such successor
Subordinated Trustee for the Securities of any series shall be qualified and
eligible under this Article.

 

SECTION 6.12.                Merger, Conversion,
Consolidation or Succession to Business.

 

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

 

75

 

SECTION 6.13.                Preferential Collection
of Claims Against Issuer.

 

If and when the Subordinated Trustee for Securities of any series shall
be or become a creditor of the Issuer (or any other obligor upon the Securities
of such series), the Subordinated Trustee shall be subject to the provisions of
the Trust Indenture Act regarding the collection of claims against the Issuer
(or any such other obligor).

 

SECTION 6.14.                USA Patriot Act.

 

The Issuer acknowledges that in accordance with Section 326 of the
USA Patriot Act, Deutsche Bank Trust Company Americas is required to obtain,
verify and record information that identifies each person or legal entity that
establishes a relationship or opens an account. 
The Issuer agrees that it will provide Deutsche Bank Trust Company
Americas with such information as it may request in order for Deutsche Bank
Trust Company Americas to satisfy the requirements of the USA Patriot Act.

 

ARTICLE
SEVEN

HOLDERS’
LISTS AND REPORTS BY SUBORDINATED TRUSTEE AND ISSUER

 

SECTION 7.01.                Issuer to Furnish
Subordinated Trustee Names and Addresses of Holders.

 

With respect to each particular series of Securities, the Issuer will
furnish or cause to be furnished to the Subordinated Trustee of such series:

 

(1)           at least semi-annually and, if
applicable, not more than 15 days after each Regular Record Date relating to
that series (or, if there is no Regular Record Date relating to that series, on
June 30 and December 31), a list, in such form as such Subordinated
Trustee may reasonably require, containing all the information in the
possession or control of the Issuer or any of its Paying Agents as to the names
and addresses of the Holders of that series as of such dates, excluding from
any such list any information already in the possession or control of the
Subordinated Trustee which was received by such Subordinated Trustee acting in
any capacity with respect to such series of Securities; and

 

(2)           at such other times as the Subordinated
Trustee may request in writing, within 30 days after the receipt by the Issuer
of any such request, a list of similar form and content as of a date not more
than 15 days prior to the time such list is furnished, excluding from any such
list all the information already in the possession or control of the
Subordinated Trustee which was received by such Subordinated Trustee acting in
any capacity with respect to such series of Securities.

 

SECTION 7.02.                Preservation of
Information; Communications to Holders.

 

(a)           The Subordinated Trustee for each series
of Securities shall preserve, in as current a form as is reasonably
practicable, the names and addresses of 

 

76

 

Holders of the Securities of such series contained in
the most recent lists furnished to the Subordinated Trustee as provided in Section 7.01
and the names and addresses of Holders of the Securities of such series
received by the Subordinated Trustee in its capacity as Security Registrar for
such series, if so acting.  The
Subordinated Trustee for each series of Securities may destroy any list
relating to such series of Securities furnished to it as provided in Section 7.01
upon receipt of a new list relating to such series so furnished.

 

(b)           If three or more Holders of Securities of
any particular series (hereinafter referred to as “applicants”) apply in
writing to the Subordinated Trustee for the Securities of any such series, and
furnish to such Subordinated Trustee reasonable proof that each such applicant
has owned a Security of that series for a period of at least six months
preceding the date of such application, and such application states that the
applicants desire to communicate with other Holders of Securities of that
series with respect to their rights under this Subordinated Indenture or under
the Securities of that series and is accompanied by a copy of the form of proxy
or other communication which such applicants propose to transmit, then such
Subordinated Trustee shall, within five Business Days after the receipt of such
application, at its election, either:

 

(1)           afford such applicants access to the
information preserved at the time in accordance with Section 7.02(a); or

 

(2)           inform such applicants as to the
approximate number of Holders of Securities of that series whose names and
addresses appear in the information preserved at the time by such Subordinated
Trustee in accordance with Section 7.02(a), and as to the approximate cost
of mailing to such Holders the form of proxy or other communication, if any,
specified in such application.

 

If any such Subordinated
Trustee shall elect not to afford such applicants access to that information,
such Subordinated Trustee shall, upon the written request of such applicants,
mail to each Holder of Securities of that series whose name and address appears
in the information preserved at the time by the Subordinated Trustee in
accordance with Section 7.02(a), a copy of the form of proxy or other
communication which is specified in such request, with reasonable promptness
after a tender to such Subordinated Trustee of the material to be mailed and of
payment, or provision for the payment, of the reasonable expenses of mailing,
unless within five days after such tender, such Subordinated Trustee shall mail
to such applicants and file with the Commission, together with a copy of the
material to be mailed, a written statement to the effect that, in the opinion
of such Subordinated Trustee, such mailing would be contrary to the best
interests of the Holders of Securities of that series or would be in violation
of applicable law.  Such written
statement shall specify the basis of such opinion.  If the Commission, after opportunity for a
hearing upon the objections specified in the written statement so filed shall
enter an order refusing to sustain any of such objections or if, after the
entry of an order sustaining one or more of such objections, the Commission
shall find, after notice and opportunity for hearing, that all the objections
so sustained have been met and shall enter an order so declaring, such
Subordinated Trustee shall mail copies of such material to all such Holders
with reasonable promptness after the entry of such order and the renewal of
such 

 

77

 

tender; otherwise such
Subordinated Trustee shall be relieved of any obligation or duty to such
applicants respecting their application.

 

(c)           Every Holder of Securities of each
series, by receiving and holding the same, agrees with the Issuer and the
Subordinated Trustee for the Securities of such series that none of the Issuer
such Subordinated Trustee or any of their agents shall be held accountable by
reason of the disclosure of any such information as to the names and addresses
of the Holders of the Securities of such series in accordance with Section 7.02(b),
regardless of the source from which such information was derived, and that the
Subordinated Trustee shall not be held accountable by reason of mailing any
material pursuant to a request made under Section 7.02(b).

 

SECTION 7.03.                Reports by Subordinated
Trustee.

 

(a)           Within 60 days after May 15 of each
year commencing with the year following the first issuance of Securities, the
Subordinated Trustee for the Securities of each series shall transmit by mail
to all Holders of the Securities of such series, in the manner and to the
extent provided in the Trust Indenture Act, a brief report dated as of each
such May 15 if required by the Trust Indenture Act.

 

(b)           A copy of each such report shall, at the
time of such transmission to Holders of Securities of any series, be filed by
the Subordinated Trustee for the Securities of such series with each Stock
Exchange, with the Commission and with the Issuer.  The Issuer will notify such Subordinated
Trustee when such series of Securities is listed on any Stock Exchange.

 

SECTION 7.04.                Reports by Issuer.

 

The Issuer will:

 

(1)           file with the Subordinated Trustee for
the Securities of such series, within 15 days after the Issuer is required to
file the same with the Commission, copies of the annual reports and of the
information, documents and other reports (or copies of such portions of any of
the foregoing as the Commission may from time to time by rules and
regulations prescribe) which the Issuer may be required to file with the
Commission pursuant to Section 13 or Section 15(d) of the
Exchange Act; or, if the Issuer is not required to file information, documents
or reports pursuant to either of said Sections, then it will file with such
Subordinated Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such of the
supplementary and periodic information, documents and reports which may be required
pursuant to Section 13 of the Exchange Act in respect of a security listed
and registered on a national securities exchange as may be prescribed from time
to time in such rules and regulations;

 

(2)           file with the Subordinated Trustee for
the Securities of such series and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such additional
information, documents, and reports with respect to compliance by the Issuer
with the conditions and covenants of this 

 

78

 

Subordinated Indenture as may be required from time to
time by such rules and regulations; and

 

(3)           transmit by mail to all Holders of
Securities of each series, as provided in Section 313(c) of the Trust
Indenture Act, within 30 days after the filing thereof with the Subordinated
Trustee for the Securities of such series, such summaries of any information,
documents and reports required to be filed by the Issuer pursuant to paragraphs
(1) and (2) of this Section as may be required by rules and
regulations prescribed from time to time by the Commission.

 

Delivery of such reports, information and documents to the Subordinated
Trustee is for informational purposes only and the Subordinated Trustee’s receipt
of such shall not constitute constructive notice of any information contained
therein or determinable from information contained therein, including the
Issuer’s compliance with any of its covenants hereunder (as to which the
Subordinated Trustee is entitled to rely exclusively on Officers’
Certificates).

 

ARTICLE
EIGHT

CONSOLIDATION,
MERGER, CONVEYANCE OR TRANSFER

 

SECTION 8.01.                Issuer May Consolidate,
Etc., Only on Certain Terms.

 

So long as any Security remains Outstanding, the Issuer shall not consolidate
or amalgamate with or merge into any other corporation or convey, transfer or
lease its properties and assets substantially as an entirety to any Person
unless:

 

(1)           the corporation formed by such
consolidation or amalgamation or into which the Issuer is merged, or the Person
which acquires, leases or is the transferee of or recipient of the conveyance
or transfer, of substantially all of the properties and assets of the Issuer as
an entirety shall:

 

(A)          be a corporation or other Person
organized and validly existing under the laws of any country that is a member
of the OECD (as the same may be constituted from time to time); and

 

(B)           (expressly assume, by an indenture
supplemental hereto, executed and delivered to the Subordinated Trustee for
each series of Securities, in form reasonably satisfactory to each such
Subordinated Trustee, with any amendments or revisions necessary to take
account of the jurisdiction in which any such corporation or Person is
organized (if other than England and Wales),

 

(i)            the due and punctual payment of the
principal of (and premium, if any, on) and interest, if any, on, and any
sinking fund payment in respect of, all of the Securities,

 

79

 

(ii)           the performance of every covenant of this
Subordinated Indenture and of all the Securities on the part of the Issuer to
be performed,

 

(iii)          such assumption shall provide that such
corporation or Person shall pay to the Holder of any Securities such additional
amounts as may be necessary in order that every net payment of the principal of
(and premium, if any, on) and interest, if any, and Deferred Interest, if any,
on such Securities will not be less than the amounts provided for in the
Securities to be then due and payable, and

 

(iv)          with respect to (iii) above such
obligation shall extend to any deduction or withholding for or on account of
any present or future tax, assessment or governmental charge imposed upon such
payment by the United Kingdom or the country in which any such corporation or
Person is organized or any district, municipality or other political
subdivision or taxing authority thereof (subject to the limitations set forth
in Section 10.07 in respect of the payment of additional amounts as
applied to such country);

 

(2)           immediately after giving effect to such
transaction, no Event of Default, Payment Default, Perpetual Security Default,
or Payment Event with respect to any series of Securities, and no event which,
after notice or lapse of time or both, would become an Event of Default,
Payment Default, Perpetual Security Default or Payment Event with respect to
any series of Securities, shall have occurred and be continuing; and

 

(3)           the Issuer has delivered to the
Subordinated Trustee for each series of Securities an Officers’ Certificate and
an Opinion of Counsel each stating that such consolidation, amalgamation,
merger, conveyance, transfer or lease and such supplemental indenture
evidencing the assumption by such corporation or Person comply with this
Subordinated Indenture and that all conditions precedent provided for in this
Subordinated Indenture relating to such transaction have been complied with.

 

SECTION 8.02.                Successor Corporation
Substituted.

 

Upon any consolidation, amalgamation or merger, or any conveyance,
transfer or lease of the properties and assets of the Issuer substantially as
an entirety in accordance with Section 8.01, the successor corporation
formed by such consolidation or amalgamation or into which the Issuer is merged
or the Person to which such conveyance or transfer or with which such lease is
made shall succeed to, and be substituted for, and may exercise every right and
power of, the Issuer under this Subordinated Indenture with the same effect as
if such successor corporation or Person had been named as the Issuer herein,
and thereafter, except in the case of a lease, the predecessor corporation
shall be relieved of all obligations and covenants under this Subordinated
Indenture or the Securities.

 

80

 

ARTICLE
NINE

SUPPLEMENTAL INDENTURES

 

SECTION 9.01.                                               Supplemental Subordinated Indentures Without Consent
of Holders.

 

Without the consent of any Holders of Securities, the Issuer, when
authorized by a Board Resolution, and the Subordinated Trustee or Subordinated
Trustees for the Securities of any or all series, at any time and from time to
time, may enter into one or more indentures supplemental hereto, in form
satisfactory to the relevant Subordinated Trustee or Subordinated Trustees, for
any of the following purposes:

 

(1)                                  to
evidence the succession of another corporation to the Issuer, and the
assumption by any such successor of the covenants of the Issuer herein and
contained in the Securities; or

 

(2)                                  to
add to the covenants of the Issuer for the benefit of the Holders of all or any
particular series of Securities (and, if such covenants are to be for the
benefit of fewer than all series of Securities, stating that such covenants are
being included solely for the benefit of such series), to convey, transfer,
assign, mortgage or pledge any property to or with the Subordinated Trustee for
the Securities of any such series or otherwise secure any such series of the
Securities or to surrender any right or power herein conferred upon the Issuer;
or

 

(3)                                  to
add any additional Events of Default, Payment Defaults, Perpetual Security
Defaults or Payment Events with respect to any or all series of Securities
(and, if any such Event of Default, Payment Default, Perpetual Security Default
or Payment Event applies to fewer than all series of Securities, stating each
series to which such Event of Default, Payment Default, Perpetual Security
Default or Payment Event applies); provided, that
any such additional Event of Default, Payment Default, Perpetual Security Default
or Payment Event would not cause any such series of Securities to be in default
immediately upon any such addition; or

 

(4)                                  to
change or eliminate any restrictions on the payment of principal of or any
premium or interest on Securities, or to provide (subject to applicable laws)
for the issuance of uncertificated Securities of any series in addition to or
in place of any certificated Securities and to make all appropriate changes for
such purposes; provided, however,
that any such action shall not adversely affect the interests of the Holders of
Securities of any series in any material respect; or

 

(5)                                  to
change or eliminate any of the provisions of this Subordinated Indenture; provided, however, that any such change or
elimination shall become effective only when there is no Security Outstanding
of any series created prior to the execution of such supplemental indenture
which is entitled to the benefit of such provision; or

 

(6)                                  to
evidence and provide for the acceptance of appointment hereunder of a Subordinated
Trustee, other than Deutsche Bank Trust Company Americas, for a series of
Securities and to add to or change any of the provisions of this 

 

81

 

Subordinated Indenture as shall be necessary to provide
for or facilitate the administration of the trusts hereunder by more than one
Subordinated Trustee, pursuant to the requirements of Section 6.09; or

 

(7)                                  to
evidence and provide for the acceptance of appointment hereunder by a successor
Subordinated Trustee with respect to the Securities of one or more series and
to add to or change any of the provisions of this Subordinated Indenture as
shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Subordinated Trustee, pursuant to the
requirements of Section 6.11(b); or

 

(8)                                  to
add to the conditions, limitations and restrictions on the authorized amount,
form, terms or purposes of issue, authentication and delivery of Securities, as
herein set forth, with such other conditions, limitations and restrictions
thereafter to be observed; or

 

(9)                                  to
supplement any of the provisions of this Subordinated Indenture to such extent
as shall be necessary to permit or facilitate the defeasance and discharge of
any series of Securities pursuant to Section 4.01; provided, however, that any such action
shall not adversely affect the interests of the Holders of Securities of such
series or any other series of Securities in any material respect; or

 

(10)                            to
add to or change or eliminate any provisions of this Subordinated Indenture as
shall be necessary or desirable in accordance with any amendments to the Trust
Indenture Act or any rules and regulations of the Commission; or

 

(11)                            to
cure any ambiguity or defect, to correct or amend or supplement any provision
herein which may be inconsistent with any other provision herein, or to make
any other provisions with respect to matters or questions arising under this
Subordinated Indenture; provided, that any such action shall not adversely
affect the interests of the Holders of Securities of any particular series in
any material respect; or

 

(12)                            to
establish the terms of a series of Securities to be issued hereunder pursuant
to, and in accordance with, Section 3.01 hereof.

 

SECTION 9.02.                                               Supplemental Subordinated Indentures With Consent of
Holders.

 

The Issuer, when authorized by a Board Resolution, and the Subordinated
Trustee or Subordinated Trustees for the Securities of any or all series may
enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of the Subordinated Indenture or of modifying in any manner the
rights of the Holders of such Securities under this Subordinated Indenture, but
only with the consent of the Holders of 50% (or any greater requisite amount)
in aggregate principal amount of the Outstanding Securities of each series of
Securities then Outstanding affected thereby, in each case by Act of said
Holders of Securities of each such series delivered to the Issuer and the
Subordinated Trustee for Securities of each such series; provided, however, that no such
supplemental 

 

82

 

indenture shall, without the consent of the Holder of
each Outstanding Security affected thereby:

 

(1)                                  change
the Stated Maturity, if any, of the principal of, or any installment of
principal of or interest on, any Security, or change the terms of any Perpetual
Subordinated Debt Securities or Perpetual Subordinated Capital Securities to
include a Stated Maturity of the principal amount thereof, or reduce the
principal amount of any Security, the rate of interest thereon, if any, or any
Deferred Interest, or any premium or principal payable upon any redemption or
repurchase of such Securities or change the time at which such Securities may
or must be redeemed to the detriment of any holder, or change any obligation of
the Issuer to pay additional amounts pursuant to Sections 5.16 and 10.07 (except
as contemplated by Section 8.01(1) and permitted by Section 9.01(1))
or reduce the amount of the principal of a Discounted Security that would be
due and payable upon a declaration of acceleration of the Maturity thereof
pursuant to Section 5.02, or change any Place of Payment where, or change
the currency or currency unit in which, any Security or any interest or
Deferred Interest thereon is payable, or impair the right to institute suit for
the enforcement of any such payment on or after the Stated Maturity, if any,
thereof or the date any such payment is otherwise due and payable (or, in the
case of redemption, on or after the Redemption Date);

 

(2)                                  reduce
the percentage in aggregate principal amount of the Outstanding Securities of
any particular series, the consent of whose Holders is required for any such
supplemental indenture, or the consent of whose Holders is required for any
waiver of compliance with certain provisions of this Subordinated Indenture or
certain defaults hereunder and their consequences that is provided for in this
Subordinated Indenture;

 

(3)                                  change
any obligation of the Issuer to maintain an office or agency in the places and
for the purposes specified in Section 10.02;

 

(4)                                  change
the terms and conditions (i) under which the Securities are convertible or
exchangeable or (ii) of the Preference Shares into which such Securities
may be converted or exchanged, in each case, in any manner that has a material
adverse effect on the rights of any holder of such Securities;

 

(5)                                  modify
any of the provisions of this Section or Sections 5.13 or 10.06, except to
increase any specified percentage in aggregate principal amount required for
any actions by Holders or to provide that certain other provisions of this
Subordinated Indenture cannot be modified or waived without the consent of the
Holder of each Security affected thereby; provided,
however, that this clause shall not be deemed to require the consent
of any Holder of a Security with respect to changes in the references to “the
Subordinated Trustee” and concomitant changes in this Section and Sections
5.12 or 10.06, or the deletion of this proviso, in accordance with the
requirements of Sections 6.09, 6.11(b), 9.01(6) and 9.01(7); or

 

(6)                                  change
in any manner adverse to the interests of the Holders of any Outstanding
Securities the subordination provisions of such Securities.

 

83

 

A supplemental indenture which changes or eliminates any covenant or
other provision of this Subordinated Indenture which has expressly been
included solely for the benefit of one or more particular series of Securities,
or which modifies the rights of the Holders of Securities of such series with
respect to such covenant or other provision, shall be deemed not to affect the
rights under this Subordinated Indenture of the Holders of Securities of any
other series.

 

It shall not be necessary for any Act of Holders under this Section to
approve the particular form of any proposed supplemental indenture, but it
shall be sufficient if such Act shall approve the substance thereof.

 

SECTION 9.03.                                               Execution of Supplemental Subordinated Indentures.

 

In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications
thereby of the trusts created by this Subordinated Indenture, the Subordinated
Trustee for any series of Securities shall be entitled to receive, and (subject
to Section 6.01) shall be fully protected in relying upon, an Officers’
Certificate and an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Subordinated
Indenture.  The Subordinated Trustee for
any series of Securities may, but shall not (except to the extent required in
the case of a supplemental indenture entered into under Section 9.01(6) or
(7)) be obligated to, enter into any such supplemental indenture which affects
such Subordinated Trustee’s own rights, liabilities, duties or immunities under
this Subordinated Indenture or otherwise.

 

SECTION 9.04.                                               Effect of Supplemental Subordinated Indentures.

 

Upon the execution of any supplemental indenture under this Article,
this Subordinated Indenture shall be modified in accordance therewith and such
supplemental indenture shall form a part of this Subordinated Indenture for all
purposes; and every Holder of Securities theretofore or thereafter
authenticated and delivered hereunder shall be bound thereby.

 

SECTION 9.05.                                               Conformity With Trust Indenture Act.

 

Every supplemental indenture executed pursuant to this Article shall
conform to the requirements of the Trust Indenture Act as then in effect.

 

SECTION 9.06.                                               Reference in Securities to Supplemental Subordinated
Indentures.

 

Securities of any particular series authenticated and delivered after
the execution of any supplemental indenture pursuant to this Article may,
and shall if required by the Subordinated Trustee for the Securities of such
series, bear a notation in form approved by such Subordinated Trustee as to any
matter provided for in such supplemental indenture.  If the Issuer shall so determine, new
Securities of any series so modified as to conform, in the opinion of the
Subordinated Trustee for the Securities of such series and the Boards of
Directors of the Issuer, to any such supplemental indenture may be prepared and
executed by the Issuer, and such Securities may be authenticated 

 

84

 

and delivered by the Subordinated Trustee for the
Securities of such series in exchange for Outstanding Securities of such
series.

 

ARTICLE
TEN

COVENANTS

 

SECTION 10.01.                                        Payment of Principal (and Premium, if any) and
Interest and Deferred Interest, if any.

 

The Issuer agrees, for the benefit of each particular series of
Securities, that it will duly and punctually pay in the currency or currency
unit in which the Securities of such series are payable (except as otherwise
specified pursuant to Section 3.01 for the Securities of such series and
except as provided in Sections 3.11(b), 3.11(d) and 3.11(e)) the principal
of (and premium, if any, on) and interest and Deferred Interest, if any, on
that series of Securities in accordance with the terms of the Securities of
such series and this Subordinated Indenture.

 

SECTION 10.02.                                        Maintenance of Office or Agency.

 

If Securities of a series are issuable as Registered Securities, the
Issuer will maintain in the Borough of Manhattan, The City of New York, and in
each Place of Payment for that series an office or agency where Securities of
that series may be presented or surrendered for payment, and an office or
agency where Securities of that series may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Issuer with
respect to the Securities of that series and this Subordinated Indenture may be
served.  The Issuer will give prompt
written notice to the Subordinated Trustee for the Securities of that series of
the location, and any change in the location, of any such office or
agency.  If at any time the Issuer shall
fail to maintain any such required office or agency in respect of any series of
Securities or shall fail to furnish the Subordinated Trustee for the Securities
of that series with the address thereof, such presentations (to the extent
permitted by law) and surrenders of Securities of that series may be made and
notices and demands may be made or served at the Corporate Trust Office of such
Subordinated Trustee, and the Issuer hereby appoints such Subordinated Trustee
as its agent to receive such respective presentations, surrenders, notices and
demands.

 

The Issuer may also from time to time designate one or more other
offices or agencies (in or outside a Place of Payment) where the Securities of
one or more series may be presented or surrendered for any or all of the
purposes specified above in this Section and may from time to time rescind
such designations; provided, however,
that no such designation or rescission shall in any manner relieve the Issuer
of its obligation to maintain an office or agency in each Place of Payment for
such purpose.  The Issuer will give
prompt written notice to the Subordinated Trustee for the Securities of each
series so affected of any such designation or rescission and of any change in
the location of any such office or agency.

 

85

 

Unless otherwise specified pursuant to Section 3.01, if and so
long as the Securities of any series (i) are denominated in a currency
other than Dollars or (ii) may be payable in a currency other than
Dollars, or so long as it is required under any other provision of the
Subordinated Indenture, then the Issuer will maintain with respect to each such
series of Securities, or as so required, a Currency Determination Agent.

 

SECTION 10.03.                                        Money for Securities Payments to Be Held in Trust.

 

If the Issuer shall at any time act as its own Paying Agent with
respect to any particular series of Securities, it will, on or before each due
date of the principal of (or premium, if any, on) or interest, or Deferred
Interest, if any, on any of the Securities of that series, segregate and hold
in trust for the benefit of the Persons entitled thereto a sum in the currency
or currency unit in which the Securities of such series are payable (except as
otherwise specified pursuant to Section 3.01 for the Securities of such
series and except as provided in Sections 3.11(b), 3.11(d) and 3.11(e))
sufficient to pay the principal (and premium, if any) and interest and Deferred
Interest , if any, so becoming due until such sums shall be paid to such
Persons or otherwise disposed of as herein provided, and will promptly notify
the Subordinated Trustee for the Securities of such series of its action or
failure so to act.

 

Whenever the Issuer shall have one or more Paying Agents for any
particular series of Securities, the Issuer will, prior to 10:00 a.m. in
the applicable Place of Payment on each due date of the principal of (or
premium, if any, on) or interest or Deferred Interest, if any, on any such
Securities, deposit with a Paying Agent for the Securities of such series a sum
(in the currency or currency unit described in the preceding paragraph)
sufficient to pay the principal (and premium, if any) and interest and, subject
to Section 3.07, Deferred Interest, if any, so becoming due, such sum to
be held in trust for the benefit of the Persons entitled thereto and (unless
such Paying Agent is the Subordinated Trustee for the Securities of such
series) the Issuer will promptly notify such Subordinated Trustee of its action
or failure so to act.

 

The Issuer will cause each Paying Agent (other than the Subordinated
Trustee) for any particular series of Securities to execute and deliver to such
Subordinated Trustee an instrument in which such Paying Agent shall agree with
such Subordinated Trustee, subject to the provisions of this Section, that such
Paying Agent will:

 

(1)                                  hold
all sums held by it for the payment of the principal of (or premium, if any,
on) or interest or Deferred Interest, if any, on Securities of that series in
trust for the benefit of the Persons entitled thereto until such sums shall be
paid to such Persons or otherwise disposed of as herein provided;

 

(2)                                  give
such Subordinated Trustee notice of any default by the Issuer (or any other
obligor upon the Securities) in the making of any payment of principal of (and
premium, if any, on) and interest and Deferred Interest, if any, on Securities
of that series; and

 

86

 

(3)                                  at
any time during the continuation of any such default, upon the written request
of such Subordinated Trustee, forthwith pay to such Subordinated Trustee all
sums so held in trust by such Paying Agent.

 

The Issuer may at any time, for the purpose of obtaining the
satisfaction and discharge of this Subordinated Indenture or for any other
purpose, pay, or by an Issuer Order direct any Paying Agent to pay, to the
Subordinated Trustee for the Securities of any series all sums held in trust by
the Issuer or such Paying Agent, such sums to be held by such Subordinated
Trustee upon the same trusts as those upon which sums were held by the Issuer
or such Paying Agent; and, upon such payment by any Paying Agent to such
Subordinated Trustee, such Paying Agent shall be released from all further
liability with respect to such money.

 

Any money deposited with the Subordinated Trustee or any Paying Agent
for the Securities of any series, or then held by the Issuer in trust for the
payment of the principal of (and premium, if any, on) and interest and Deferred
Interest, if any, on any Securities of any particular series and remaining
unclaimed for two years after such principal (and premium, if any) and interest
and Deferred Interest, if any, has become due and payable shall, unless
otherwise required by mandatory provisions of applicable escheat, or abandoned
or unclaimed property law, be paid to the Issuer on delivery of an Issuer
Request, or (if then held by the Issuer) shall be discharged from such trusts;
and the Holder of such Security shall, thereafter, as an unsecured general
creditor, look only to the Issuer for payment thereof, and all liability of
such Subordinated Trustee or such Paying Agent with respect to such trust
money, and all liability of the Issuer as trustee thereof,  shall thereupon cease; provided,
however, that such Subordinated Trustee or such Paying Agent, before
being required to make any such repayment shall give notice to the Holder of
such Security in the manner set forth in Section 1.06 that such money
remains unclaimed and that, after a date specified therein, which shall not be
less than 30 days from the date of such notice, any unclaimed balance of such
money then remaining will, unless otherwise required by mandatory provisions of
applicable escheat, or abandoned or unclaimed property law, be repaid to the
Issuer; provided, further, that the Subordinated Trustee or such Paying Agent
shall give written notice of any such unclaimed amounts to the Issuer within 30
days after the end of such two year period.

 

SECTION 10.04.                                        Statements as to Compliance.

 

The Issuer will deliver to the Subordinated Trustee for each series of
Securities, within four months after the end of each fiscal year ending after
the date hereof, an Officers’ Certificate (one of the signers of which shall be
the chief executive officer, treasurer or finance director of the Issuer)
stating whether or not, to the knowledge of such officers, after due
investigation, the Issuer has complied with all conditions and covenants and
fulfilled all of its obligations under this Subordinated Indenture during such
year and, if such officers have obtained knowledge of any default or Event of
Default, specifying all such defaults or Events of Default and the nature
thereof of which such officers may have knowledge and whether any such default
or Events of Default is continuing or not.

 

87

 

For purposes of this Section, such compliance or fulfillment shall be
determined without regard to any period of grace or requirement of notice
provided under this Subordinated Indenture.

 

The Issuer shall deliver to the Subordinated Trustee, as soon as
possible and in any event within five days after the Issuer becomes aware of
the occurrence of any Event of Default or an event which, with notice or the
lapse of time or both, would constitute an Event of Default, an Officers’
Certificate setting forth the nature and status of such Event of Default.

 

SECTION 10.05.                                        Corporate Existence.

 

Subject to Article Eight, the Issuer will do or cause to be done
all things necessary to preserve and keep in full force and effect their
respective corporate existences.

 

SECTION 10.06.                                        Waiver of Certain Covenants.

 

The Issuer may omit in any particular instance to comply with any
covenant or condition set forth in Sections 10.02 and 10.05 and any other
covenant not set forth herein and specified pursuant to Section 3.01 to be
applicable to the Securities of any series, if before or after the time for
such compliance the Holders of not less than a majority in aggregate principal
amount of the Outstanding Securities of each series of Securities affected by
the omission (which, in the case of a covenant not set forth herein and
specified pursuant to Section 3.01 to be applicable to the Securities of
any series, shall include only those series to which such covenant is so
specified to be applicable) shall, in each case by Act of such Holders, either
waive such compliance in such instance or generally waive compliance with such
covenant or condition, but no such waiver shall extend to or affect such
covenant or condition except to the extent so expressly waived, and, until such
waiver shall become effective, the obligations of the Issuer and the duties of
the Subordinated Trustee for the Securities of each series with respect to any
such covenant or condition shall remain in full force and effect.

 

SECTION 10.07.                                        Payment of Additional Amounts.

 

Unless otherwise provided in the Board Resolution or supplemental
indenture executed pursuant to Section 3.01 establishing the terms of a
particular series of Securities, the Issuer will pay to the Holder of any
Security such additional amounts as may be necessary in order that every net
payment of the principal of (and premium, if any, on) and interest, if any, and
Deferred Interest, if any, on any such Security after deduction or other
withholding for or on account of any present or future tax, assessment, duty or
other governmental charge of any nature whatsoever imposed, levied or collected
by or on behalf of the United Kingdom or any political subdivision or taxing
authority thereof or therein having power to tax, will not be less than the
amount provided for in any such Security to be then due and payable;
provided,  however, that the foregoing
obligation to pay additional amounts will not apply on account of any tax,
assessment, duty or other governmental charge which is payable:

 

88

 

(1)                                  otherwise
than by deduction or withholding from payments of principal of (or premium, if
any, on) or interest or Deferred Interest, if any, on any such Security; or

 

(2)                                  by
reason of such Holder having, or having had, some personal or business
connection with the United Kingdom and not merely by reason of the fact that
payments are, or for the purposes of taxation are deemed to be, from sources
in, or secured in the United Kingdom; or

 

(3)                                  except
in the case of the winding up of the Issuer in England, where the relevant
Security is presented for payment in the United Kingdom; or

 

(4)                                  where
the relevant Security is presented for payment more than 30 days after the
Relevant Date (as defined below) except to the extent that the relevant Holder
would have been entitled to such additional amounts on presenting the Security
for payment on such thirtieth day; or

 

(5)                                  with
respect to a payment to an individual, where the deduction or withholding is
required to be made pursuant to any law implementing or complying with
Directive 2003/48/EC of the European Union or to any other directive on the
taxation of savings implementing the conclusions of the meeting of the European
Council of Economics and Finance Ministers of November 26-27, 2000 (or any
supplemental ECOFIN meeting relating to such directive) or any agreement
between the European Union and any other jurisdiction providing for equivalent
measures; or

 

(6)                                  on
a Security presented for payment by a Holder who would have been able to avoid
such deduction or withholding by presenting the relevant Security to another
paying agent in a Member State of the European Union or elsewhere; or

 

(7)                                  by
reason by any estate, excise, inheritance, gift, sales, transfer, wealth or
personal property tax or any similar assessment or governmental charge; or

 

(8)                                  as
a result of the failure of a Holder to satisfy any statutory requirements or make
a declaration of non-residence or other claim for exemption; or

 

(9)                                  by
reason of a change in law or official practice of any relevant taxing authority
that becomes effective more than 30 days after the Relevant Date (as defined
below) for payment of principal (or premium, if any) or interest or Deferred
Interest, if any, in respect of such Security; or

 

(10)                            owing
to any combination of clauses (1) through (9) above (provided that
such provision is applicable to the relevant series of Securities in accordance
with this Subordinated Indenture).

 

No additional amounts will be paid as provided above with respect to
any payment of principal of (or premium, if any, on) or interest or Deferred
Interest, if any, on any such Security to any Holder who is a fiduciary or
partnership or other than the sole beneficial owner of any such payment to the
extent that a beneficiary or settlor with 

 

89

 

respect to such fiduciary, a member of such a
partnership or the beneficial owner of such payment would not have been
entitled to the additional amounts had such beneficiary, settlor, member or
beneficial owner been the Holder of any such Security.

 

For the purposes hereof the “Relevant Date” means the date on which the
payment of principal of (or premium, if any, on) or interest or Deferred
Interest, if any, on any Security first becomes due and payable but, if the
full amount of the monies payable on such date has not been received by the
relevant Paying Agent or as it shall have directed on or prior to such date,
the “Relevant Date” means the date on which such monies shall have been so
received.

 

Whenever in this Subordinated Indenture there is mentioned, in any
context, the payment of the principal of (or premium, if any, on) or interest
or Deferred Interest (or, with respect to the Perpetual Subordinated Capital
Securities, any other payments), if any, on any Security, such mention shall be
deemed to include mention of the payment of additional amounts provided for in
the terms of such Securities and this Section to the extent that, in such
context, additional amounts are, were or would be payable in respect thereof
pursuant to the provisions of this Section and express mention of the
payment of additional amounts (if applicable) in any provisions hereof shall
not be construed as excluding additional amounts in those provisions hereof
where such express mention is not made.

 

If the Securities of a series provide for the payment of additional
amounts as contemplated by Section 3.01(22), at least 10 days prior to the
first Interest Payment Date with respect to that series of Securities (or if
the Securities of that series will not bear interest prior to Maturity, the
first day on which a payment of principal and any premium is made), and at
least 10 days prior to each date of payment of principal (and premium, if any)
and interest and Deferred Interest, if any, if there has been any change with
respect to the matters set forth in the below-mentioned Officers’ Certificate,
the Issuer will furnish the Subordinated Trustee for that series of Securities
with an Officers’ Certificate instructing such Subordinated Trustee whether
such payment of principal of (and premium, if any, on) and interest and
Deferred Interest, if any, on the Securities of that series shall be made to
Holders of Securities of that series without withholding for or on account of
any tax, assessment, duty or other governmental charge as referred to above or
described in the Securities of that series. 
If any such withholding shall be required, then such Officers’
Certificate shall specify by country the amount, if any, required to be
withheld on such payments to such Holders of Securities and the Issuer will pay
to the Subordinated Trustee for such series of Securities such additional
amounts as may be required pursuant to the terms applicable to such
series.  The Issuer covenants to
indemnify the Subordinated Trustee for such series of Securities and any Paying
Agent for, and to hold them harmless against, any loss, liability or expense
reasonably incurred without gross negligence, willful default or bad faith on
their part arising out of or in connection with actions taken or omitted by any
of them in reliance on any Officers’ Certificate furnished pursuant to this Section 10.07
or the failure to provide any such Officers’ Certificate.  The obligations contained in the immediately
preceding sentence of the Issuer shall survive payment of all of the
Securities, the satisfaction and discharge of 

 

90

 

this Subordinated Indenture, and the resignation or
removal of the Subordinated Trustee or any Paying Agent for such series of
Securities.

 

The Issuer hereby undertakes that, if any withholding or deduction is
imposed on a payment to an individual and is required to be made pursuant to
the proposal agreed by the European Council of the Economic and Finance
Ministers (“ECOFIN”) on January 21, 
2003 or any law implementing or complying with, or introduced in order
to conform to, any such Directive, it will ensure that it maintains a paying
agent with a specific office in a European Union member state that will not be
obliged to withhold or deduct tax pursuant to any European Union Directive on
the taxation of savings income implementing those proposals or any such law;  provided,
that under no circumstances shall the Issuer be obliged to maintain a paying
agent with a specified office in such member state unless at least one member
state of the European Union does not require a paying agent making payments
through a specified office in that member state to so withhold or deduct tax.

 

SECTION 10.08.                                        Calculation of Original Issue Discount.

 

The Issuer shall file
with the Subordinated Trustee promptly at the end of each calendar year (i) a
written notice specifying the amount of original issue discount (including
daily rates and accrual periods) accrued on Outstanding Securities as of the
end of such year and (ii) such other specific information relating to such
original issue discount as may then be relevant under the Internal Revenue Code
of 1986, as amended from time to time.

 

SECTION 10.09.                                        Dividend and Capital Restriction

 

From and including an Optional Interest Payment Date
on which the Issuer does not make payment in full of all interest payments to
be paid on such date, or any Interest Payment Date on which the Solvency
Condition is not met, the Issuer will not (a) declare or pay a dividend or
distribution or make any other payment on any Parity Securities or Junior
Securities (other than (i) a final dividend declared by the Issuer with
respect to its ordinary shares prior to the date that the decision to defer
such interest payment is made or (ii) a payment made by one of the Issuer’s
wholly-owned Subsidiaries to another wholly-owned Subsidiary or directly to the
Issuer), or (b) redeem, purchase or otherwise acquire any Parity
Securities or Junior Securities, either (y) (in the case of Perpetual
Subordinated Debt Securities and Dated Subordinated Debt Securities) in each
case unless or until all Deferred Interest and/or, as the case may be, arrears
of interest have been received and (in the case of Perpetual Subordinated Debt
Securities) no other payment of Deferred Interest or, (in the case of  Dated Subordinated Debt Securities) arrears
of interest remains unsatisfied or (z) (in the case of Perpetual
Subordinated Capital Securities) in each case unless or until the interest (but
excluding Deferred Interest, if any) otherwise due and payable on the Perpetual
Subordinated Capital Securities during the next twelve months is duly set aside
and provided for or paid in full.

 

Following a date fixed for redemption or exchange of
any Securities on which the Issuer is unable to issue sufficient ordinary
shares to make payment in full of all Deferred 

 

91

 

Interest
to be paid on such date under the Alternative Coupon Satisfaction Mechanism, as
set forth in the Board Resolution or supplemental indenture executed pursuant
to Section 3.01 hereof establishing the terms of the relevant series of
Securities, the Issuer will not (a) declare or pay a dividend or
distribution or make any other payment on, and will procure that no dividend or
distribution or other payment is made on, any Parity Securities or Junior
Securities (other than (i) a final dividend declared by the Issuer with
respect to its ordinary shares prior to such redemption or exchange date or (ii) a
payment made by one of the Issuer’s wholly-owned Subsidiaries to another
wholly-owned Subsidiary or directly to the Issuer), or (b) redeem,
purchase or otherwise acquire any Parity Securities or Junior Securities, in
each case until such corporate authorizations as are required to issue the
necessary ordinary shares are obtained and all Deferred Interest to be
satisfied has been duly set aside or provided for or paid in full.

 

The foregoing restrictions do not apply to payments
the Issuer makes to policyholders or other customers, or transfers to or from
the fund for future appropriations, in each case in the ordinary course of
business consistent with past practice.

 

For the purposes of the foregoing provisions, the
payment (or declaration of payment) of a dividend or distribution on Parity
Securities or Junior Securities shall be deemed to include the making of any
interest, coupon or dividend payment (or payment under any guarantee in respect
thereof) and the redemption, purchase or other acquisition of such securities
(save where the funds used to redeem, purchase or acquire those securities are
derived from an issue of Parity Securities or Junior Securities (i) made
at any time within the six-month period prior to the time of such redemption,
purchase or acquisition, and (ii) with the same or junior ranking on a
return of assets on a winding up or in respect of a distribution or payment of
interest, coupons or dividends and/or any other amounts thereunder as those
securities being redeemed, purchased or acquired).  The Subordinated Trustee shall be entitled to
rely on a certificate signed by two of the Issuer’s directors as to whether the
redemption, purchase or acquisition falls within the exception set out above
and such certificate shall, in the absence of clear error, be conclusive and
binding on the Issuer and the Holders of the Securities.

 

ARTICLE
ELEVEN

REDEMPTION OF SECURITIES

 

SECTION 11.01.                                        Applicability of This Article.

 

Redemption of Securities of any series (whether by operation of a
sinking fund or otherwise) as permitted or required by the terms of any such
Securities shall be made in accordance with such terms and (except as otherwise
specified pursuant to Section 3.01 with respect to Securities of such
series) this Article; provided, however,
that if any of the terms of any such Securities shall conflict with any
provision of this Article, the terms of such Securities shall govern; and provided, further, that the option or 

 

92

 

obligation of the Issuer to redeem any Securities on
any Redemption Date shall be subject to any consent required of the Financial
Services Authority having been obtained and subject also in the case of
Perpetual Subordinated Debt Securities and Perpetual Subordinated Capital
Securities to the Solvency Condition being satisfied by the Issuer on any such
Redemption Date and such other requirements as may be established pursuant to a
Board Resolution or supplemental indenture executed pursuant to Section 3.01
with respect to such series.

 

SECTION 11.02.                                        Election to Redeem; Notice to Subordinated Trustee.

 

The election of the Issuer to redeem any Securities of any series shall
be evidenced by or pursuant to a Board Resolution.  In case of any redemption at the election of
the Issuer of less than all of the Securities of any particular series, the
Issuer shall, at least 45 days prior to the Redemption Date fixed by the Issuer
(unless a shorter notice shall be satisfactory to the Subordinated Trustee for
the Securities of such series), notify the Subordinated Trustee for Securities
of such series by an Issuer Request of such Redemption Date and of the
principal amount of Securities of that series to be redeemed.

 

In the case of any redemption of Securities of any series prior to the
expiration of any restriction on such redemption provided in the terms of such
Securities or elsewhere in this Subordinated Indenture, the Issuer shall
furnish the Subordinated Trustee for Securities of such series with an Officers’
Certificate evidencing compliance with such restriction.

 

In the case of any redemption of Securities of any series pursuant to
Sections 11.08 or 11.09 the Issuer shall furnish the Subordinated Trustee for
the Securities of such series with an Officers’ Certificate and an Opinion of
Counsel confirming that the Issuer is entitled to exercise the right of
redemption.

 

SECTION 11.03.                                        Selection of Securities to Be Redeemed.

 

If less than all the Securities are to be redeemed, the Issuer may
select the series to be redeemed, and if less than all of the Securities of any
series are to be redeemed, the particular Securities of that series to be
redeemed shall be selected not more than 45 days prior to the Redemption Date
by the Subordinated Trustee for the Securities of such series, from the
Outstanding Securities of that series not previously called for redemption, by
such method as the Subordinated Trustee for the Securities of such series shall
approve and which may provide for the selection for redemption of portions
(equal to the minimum authorized denomination for Securities of that series, or
any integral multiple thereof) of the principal amount of Securities of that
series or a denomination larger than the minimum authorized denomination for
Securities of that series pursuant to Section 3.02 in the currency or
currency unit in which the Securities of such series are denominated.

 

The Issuer shall promptly notify in writing the Subordinated Trustee
for the Securities of the series selected for redemption and, in the case of
any Securities of a series selected for partial redemption, the principal
amount thereof to be redeemed.

 

93

 

For all purposes of this Subordinated Indenture, unless the context
otherwise requires, all provisions relating to the redemption of Securities
shall relate, in the case of any Security redeemed or to be redeemed only in
part, to the portion of the principal amount of such Securities which has been
or is to be redeemed.

 

SECTION 11.04.                                        Notice of Redemption.

 

Unless otherwise specified in the Securities of a series, notice of
redemption shall be given in the manner provided in Section 1.06 not later
than 30 days and not earlier than 60 days (or, in the case of partial
redemptions, 45 days) prior to the Redemption Date, to each Holder of
Securities to be redeemed and, with respect to the Perpetual Subordinated
Capital Securities, the Subordinated Trustee, the Calculation Agent and any
Paying Agent of such series.  A notice or
redemption relating to a series of Perpetual Subordinated Capital Securities or
Perpetual Subordinated Debt Securities shall be irrevocable.

 

All notices of redemption shall state:

 

(1)                                  the
Redemption Date;

 

(2)                                  the
Redemption Price;

 

(3)                                  if
less than all Outstanding Securities of a particular series are to be redeemed,
the identification (and, in the case of partial redemption, the respective
principal amounts) of the particular Securities to be redeemed;

 

(4)                                  that
on the Redemption Date the Redemption Price will become due and payable upon
each such Security or portion thereof, and that interest thereon, if any, shall
cease to accrue on and after said date;

 

(5)                                  the
place or places where such Securities are to be surrendered for payment of the
Redemption Price;

 

(6)                                  that
the redemption is for a sinking fund, if such is the case; and

 

(7)                                  the
Common Code(s), CUSIP number(s) and ISIN, if any, with respect to such
Securities.

 

Notice of redemption of Securities to be redeemed at the election of
the Issuer shall be given by the Issuer or, at the Issuer’s written request, by
the Subordinated Trustee for such Securities in the name and at the expense of
the Issuer.

 

SECTION 11.05.                                        Deposit of Redemption Price.

 

Subject in the case of Perpetual Subordinated Debt Securities and
Perpetual Subordinated Capital Securities to the Solvency Condition being
satisfied by the Issuer, on or prior to any Redemption Date, and to any consent
required of the Financial Services Authority having been obtained, the Issuer
shall deposit with the 

 

94

 

Subordinated Trustee for the Securities to be redeemed
(or, if the Issuer is acting as its own Paying Agent for such Securities,
segregate and hold in trust as provided in Section 10.03) an amount of
money in the currency or currency unit in which the Securities of such series
are payable (except as otherwise specified pursuant to Section 3.01 for
the Securities of such series and except as provided in Sections 3.11(b), 3.11(d) and
3.11(e)) sufficient to pay the principal amount (or, if the context so
requires, lesser amount in the case of Discounted Securities) of (and premium,
if any, thereon), and (except if the Redemption Date shall be an Interest
Payment Date) any accrued interest on and, subject to Section 3.07,
Deferred Interest, if any, on all the Securities which are to be redeemed on
that date.

 

SECTION 11.06.                                        Securities Payable on Redemption Date.

 

(a)                                  Subject,
in the case of Perpetual Subordinated Debt Securities and Perpetual
Subordinated Capital Securities, to the Solvency Condition being satisfied by
the Issuer and such other requirements as may be set out in the terms for a
series being satisfied, and to any consent required of the Financial Services
Authority having been obtained, notice of redemption having been given as
aforesaid, the Securities so to be redeemed shall, on the Redemption Date,
become due and payable at the Redemption Price therein specified in the
currency or currency unit in which the Securities of such series are payable
(except as otherwise provided pursuant to Section 3.01 for the Securities
of such series and except as provided in Sections 3.11(b), 3.11(d) and
3.11(e)) and from and after such date (unless the Issuer shall default in the
payment of the Redemption Price) such Securities shall cease to bear
interest.  Upon surrender of such
Security for redemption in accordance with said notice, such Security or
specified portions thereof shall be paid by the Issuer at the Redemption Price;
provided, however, that unless
otherwise specified as contemplated by Section 3.01, installments of
interest on Registered Securities whose Stated Maturity, if any, is on or prior
to the Redemption Date shall be payable to the Holders of such Securities, or
one or more Predecessor Securities, registered as such at the close of business
on the relevant Regular Record Dates according to their terms and the
provisions of Section 3.07.

 

If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal (or, if the context shall so
require, lesser amount in the case of Discounted Securities) thereof (and
premium, if any, thereon) shall, until paid, bear interest from the Redemption
Date at a rate per annum equal to the rate borne by the Security (or, in the
case of Discounted Securities, the Security’s Yield to Maturity).

 

(b)                                 In
the event that it is so provided for in the Board Resolution or supplemental
indenture executed pursuant to Section 3.01 hereof establishing the terms
of a particular series of Perpetual Subordinated Capital Securities or
Perpetual Subordinated Debt Securities, a Redemption Date on which any Deferred
Interest Payments are due to be satisfied under the Alternative Coupon
Satisfaction Mechanism may be postponed following the occurrence of a Market
Disruption Event, or in other circumstances where the Issuer is otherwise not
able to raise sufficient funds through the Alternative Coupon Satisfaction
Mechanism to satisfy all Deferred Interest Payments payable on such Redemption
Date.  In such event, the Perpetual
Subordinated Capital Securities or 

 

95

 

Perpetual Subordinated Debt Securities of such series
will remain Outstanding and will continue to accrue and pay interest in
accordance with their terms, and such postponement of the Redemption Date will
not constitute a Perpetual Security Default. 
In addition, to the extent set forth in such Board Resolution or
supplemental indenture, following the 14th day after postponement of a
Redemption Date as described above, interest will accrue on outstanding
Deferred Interest Payments that would otherwise have been satisfied on such
initially scheduled Redemption Date from (and including) such initial
Redemption Date to (but excluding) the date such Deferred Interest Payments are
paid, at the rate of interest applicable to such series of Perpetual
Subordinated Capital Securities or Perpetual Subordinated Debt Securities.

 

(c)                                  A
determination to postpone the Redemption Date in respect of such Perpetual
Subordinated Debt Securities or Perpetual Subordinated Capital Securities will
be made not later than the Business Day prior to the initially scheduled
Redemption Date, and notice thereof will be given to holders of the affected
Securities.  Notice of a new Redemption
Date in respect of such Perpetual Subordinated Debt Securities or Perpetual
Subordinated Capital Securities will be given to holders not less than 30 nor
more than 60 days prior to the newly selected Redemption Date.

 

SECTION 11.07.                                        Securities Redeemed in Part.

 

Any Security which is to be redeemed only in part shall be surrendered
at the Place of Payment (with, if the Issuer, the Subordinated Trustee or the
Security Registrar for such Security so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Issuer, the
Subordinated Trustee and the Security Registrar for such Security duly executed
by, the Holder thereof or his attorney duly authorized in writing), and the
Issuer shall execute and such Subordinated Trustee shall authenticate and
deliver to the Holder of such Security, without service charge, a new Security
or Securities, of any authorized denomination as requested by such Holder, of
the same series and having the same terms and provisions and in an aggregate
principal amount equal to and in exchange for the unredeemed portion of the
principal of the Security so surrendered; except that, if a global Security is
so surrendered, the Issuer shall execute, and the Subordinated Trustee shall
authenticate and deliver to the Depositary for such global Security, without
service charge, a new global Security of like tenor in a denomination equal to
and in exchange for the unredeemed portion of the principal amount of the
global Security so surrendered.

 

SECTION 11.08.                                        Tax Event Redemption.

 

(a)                                  The
Securities of any series may be redeemed, subject to any other terms set forth
herein and in the Board Resolution or supplemental indenture executed pursuant
to Section 3.01 hereof establishing the terms of such Securities, and
subject, in the case of Perpetual Subordinated Debt Securities and Perpetual
Subordinated Capital Securities of any series, to the Solvency Condition being
satisfied by the Issuer, as a whole but not in part, at the option of the
Issuer, upon not more than 60 days’ nor less than 30 days’ prior notice to the
Holders of such Securities, at a Redemption Price equal to 100% of the
principal amount thereof (or, if the context so requires, such lesser amount 

 

96

 

in the case of Discounted Securities) (and premium, if
any, thereon), together with accrued interest for the then current interest
period and Deferred Interest, if any, thereon to the Redemption Date, and any
Securities convertible or exchangeable into Preference Shares may, at the
option of the Issuer, be converted or exchanged as a whole, upon the occurrence
of a Tax Event; provided, that
Securities of any such series may not be so redeemed if an obligation of the
Issuer to pay additional amounts or to account as provided in the definition of
Tax Event arises because of the official application or interpretation of the
laws or regulations affecting taxation of the country in which the Issuer is
organized, or any political subdivision or taxing authority thereof or therein
having power to tax, as a result of the consolidation, amalgamation or merger
of the Issuer with or into, or the conveyance, transfer or lease by the Issuer
of its properties and assets substantially as an entirety to, any Person.

 

(b)                                 Prior
to the redemption of any series of Securities following the occurrence of a Tax
Event, the Issuer shall be required, before it gives a notice of redemption, to
deliver to the Subordinated Trustee an Officers’ Certificate stating that all
conditions precedent to such redemption have been complied with and an Opinion
of Counsel concluding that in the opinion of such counsel a Tax Event has
occurred and the Issuer is entitled to exercise its right of redemption in
accordance with the terms of the Securities.

 

(c)                                  If
the Issuer provides an Opinion of Counsel in the appropriate jurisdiction,
dated as of the date of the relevant event referred to above, that no
obligation to pay any additional amount or to account as aforesaid arises, then
that Opinion of Counsel shall be final and binding, solely for purposes of this
paragraph, on the Issuer, the Subordinated Trustee and the Holders of the
Securities of any such series as to the law of the relevant jurisdiction at the
date of such Opinion of Counsel.

 

(d)                                 The
rights of the Issuer to redeem the Dated Subordinated Debt Securities, the
Perpetual Subordinated Debt Securities and the Perpetual Subordinated Capital Securities
of any series, upon the occurrence of a Tax Event occurring as a result of a
Tax Law Change, will be subject to any conditions (including the Financial
Services Authority consenting to such redemption in the form of the grant of a
waiver) specified in the Board Resolution or supplemental indenture executed
pursuant to Section 3.01 hereof establishing the terms of such Securities
being satisfied.

 

SECTION 11.09.                                        Regulatory Event Redemption.

 

(a)                                  Subject
to the Issuer satisfying the Solvency Condition (in relation to the Perpetual
Subordinated Debt Securities and the Perpetual Subordinated Capital Securities)
on and immediately following any applicable date set for redemption and the
Regulatory Capital Requirement on and immediately following any applicable date
set for redemption, if a Regulatory Event is deemed to have occurred the Dated
Subordinated Debt Securities, the Perpetual Subordinated Debt Securities and
the Perpetual Subordinated Capital Securities of any series may be redeemed, in
whole but not in part, at the option of the Issuer, upon not more than 60 days’
nor less than 30 days’ prior notice to the Holders of such Securities, at a
redemption price equal to 100% of the 

 

97

 

principal amount thereof (and premium, if any,
thereon), or such other redemption price as may be specified in the applicable
Board Resolution or supplemental indenture executed pursuant to Section 3.01
hereof establishing the terms of the relevant series of Securities, together
with accrued interest, if any, and any Deferred Interest, if applicable,
thereon to the date set for redemption.

 

(b)                                 The
rights of the Issuer to redeem the Dated Subordinated Debt Securities, the
Perpetual Subordinated Debt Securities and the Perpetual Subordinated Capital
Securities of any series, upon the occurrence of a Regulatory Event, will be
subject to any conditions (including the Financial Services Authority
consenting to such redemption in the form of the grant of a waiver) specified in
the Board Resolution or supplemental indenture executed pursuant to Section 3.01
hereof establishing the terms of such Securities being satisfied.

 

(c)                                  With
respect to the Dated Subordinated Debt Securities, the Perpetual Subordinated
Debt Securities and the Perpetual Subordinated Capital Securities, in the case
of redemption upon the occurrence of a Regulatory Event, the Issuer shall be
required, before it gives a notice of redemption, to deliver to the
Subordinated Trustee an Officers’ Certificate confirming that all conditions
precedent to such redemption have been complied with.

 

ARTICLE
TWELVE

SINKING FUNDS

 

SECTION 12.01.                                        Applicability of This Article.

 

Redemption of Securities of any series through operation of a sinking
fund as permitted or required by the terms of any such Securities shall be made
in accordance with such terms and (except as otherwise specified pursuant to Section 3.01
with respect to Securities of such series) this Article; provided ,
however, that if any of the terms of any such Securities shall
conflict with any provision of this Article, the terms of such Securities shall
govern; and provided, further, that the option or
obligation of the Issuer to make any sinking fund payment with respect to any
Perpetual Subordinated Debt Securities or Perpetual Subordinated Capital
Securities shall be subject to the Solvency Condition being satisfied by the
Issuer and to any consent required of the Financial Services Authority having
been obtained.

 

The minimum amount of any sinking fund payment provided for by the
terms of Securities of any particular series is herein referred to as a “mandatory
sinking fund payment”, and any payment in excess of such minimum amount
provided for by the terms of Securities of any particular series is herein referred
to as an “optional sinking fund payment”. 
If provided for by the terms of Securities of any particular series, the
cash amount of any sinking fund payment may be subject to reduction as provided
in Section 12.02.  Each sinking fund
payment shall be applied to the redemption of Securities of any particular
series as provided for by the terms of Securities of that series.

 

98

 

SECTION 12.02.                                        Satisfaction of Sinking Fund Payments With
Securities.

 

The Issuer (i) may deliver Outstanding Securities of a series
(other than any Securities previously called for redemption), and (ii) may
apply as a credit Securities of a series which have been redeemed either at the
election of the Issuer pursuant to the terms of such Securities or through the
application of permitted optional sinking fund payments pursuant to the terms
of such Securities, in each case in satisfaction of all or any part of any
sinking fund payment with respect to the Securities of such series required to
be made pursuant to the terms of such Securities as provided for by the terms
of such series; provided, however,
that such Securities have not been previously so credited.  Such Securities shall be received and
credited for such purpose by the Subordinated Trustee for such Securities at
the principal amount thereof (or, if the context so requires, such lesser
amount in the case of Discounted Securities) and the amount of such sinking
fund payment shall be reduced accordingly.

 

SECTION 12.03.                                        Redemption of Securities for Sinking Fund.

 

Not less than 60 days prior to each sinking fund payment date for any
particular series of Securities (or such shorter period as shall be
satisfactory to the Subordinated Trustee for the Securities of such series),
the Issuer will deliver to the Subordinated Trustee for the Securities of such
series, an Officers’ Certificate specifying the amount of the next ensuing
mandatory sinking fund payment for that series pursuant to the terms of that
series, the portion thereof, if any, which is to be satisfied by payment of
cash in the currency or currency unit in which the Securities of that series
are payable (except as otherwise specified pursuant to Section 3.01 for
the Securities of that series and except as provided in Sections 3.11(b), 3.11(d) and
3.11(e)) and the portion thereof, if any, which is to be satisfied by
delivering and crediting Securities of that series pursuant to Section 12.02
and shall state the basis for such credit and that such Securities have not
previously been so credited and will also deliver to such Subordinated Trustee
any Securities to be so delivered.  The
Issuer or the Subordinated Trustee for the Securities of such series shall
select the Securities to be redeemed upon such sinking fund payment date in the
manner specified in Section 11.03 and cause notice of the redemption
thereof to be given in the name of and at the expense of the Issuer in the
manner provided in Section 11.04. 
Such notice having been duly given, the redemption of such Securities
shall be made upon the terms and in the manner stated in Sections 11.06 and
11.07.

 

ARTICLE
THIRTEEN

SUBORDINATION OF SECURITIES

 

SECTION 13.01.                                        Securities Subordinate to Certain Creditors;
Definition of Relative Rights.

 

(a)                                  General.  The Issuer covenants and agrees, and each
Holder of Securities of each series, by his acceptance thereof, likewise
covenants and agrees, that, to the extent expressly provided in this
Subordinated Indenture or in the Board Resolution or supplemental indenture
executed pursuant to Section 3.01 establishing the 

 

99

 

terms of a series of Securities, the Subordinated Debt
Securities of each series shall constitute direct, unsecured and unconditional
obligations of the Issuer, ranking equally and ratably without any preference
among themselves and, in the event of the bankruptcy or winding up or
liquidation of the Issuer, the claims of the holders thereof shall be
subordinate to, and subject in right of payment to, the prior payment in full
of, all claims of the Senior Creditors of the Issuer with respect to such
Securities as described herein (or in the Board Resolution or supplemental
indenture executed pursuant to Section 3.01 establishing the terms of such
series of Securities), without any preference among themselves.  To the extent and in the manner set forth
herein or in the Board Resolution or supplemental indenture executed pursuant
to Section 3.01 establishing the terms of such series of Securities, the
indebtedness represented by any of the Securities and the payment of the
principal of (and premium, if any, on) and interest and Deferred Interest, if
any, on any of the Securities and any payment in connection with any applicable
sinking fund or redemption provisions or the payment of any other sums due on
any such Securities are hereby expressly made subordinate and subject in right
of payment to the prior payment in full, in cash or cash equivalents, to all
claims of Senior Creditors with respect to such series and, with respect to any
Perpetual Subordinated Debt Securities and Perpetual Subordinated Capital
Securities, conditional upon the Solvency Condition being satisfied by the
Issuer as described in paragraph (b) of this Section.

 

(b)                                 No
payment of principal, premium, if any, interest, if any, or Deferred Interest,
if any, or in connection with any sinking fund or redemption provision in
respect of any of the Perpetual Subordinated Debt Securities or Perpetual
Subordinated Capital Securities, and no purchase of any of the Perpetual
Subordinated Debt Securities or Perpetual Subordinated Capital Securities,
beneficially by or for the account of the Issuer or any of the Subsidiaries of
the Issuer shall be made unless two members of the Board of Directors of the
Issuer or the Auditors or (if the Issuer is in bankruptcy, winding up or
liquidation in England and Wales) the liquidator of the Issuer shall have
reported to the Subordinated Trustee within 14 days before such payment or
within 6 months before such redemption or purchase that in their or, as the
case may be, his opinion the Solvency Condition would be satisfied by the
Issuer both at the time of and immediately after such payment, redemption or
purchase.  Any such report shall, in the
absence of manifest error, be treated and accepted by the Issuer, the
Subordinated Trustee, and the Holders of any of the Securities as correct and
sufficient evidence of such satisfaction of the Solvency Condition.

 

(c)                                  Subordination
of Dated Subordinated Debt Securities. 
The rights and claims of the Holders of any series of Dated Subordinated
Debt Securities are subordinated to Senior Creditors with respect to such
Securities, or any other subordinated debt securities of the Issuer not
expressed to rank equally with or junior to such Securities.

 

The following are “Senior Creditors”
with respect to any series of Dated Subordinated Debt Securities unless
otherwise provided in the Board Resolution or supplemental indenture executed
pursuant to Section 3.01 establishing the terms of such Securities: any
creditors who are unsubordinated creditors of the Issuer with claims admitted
in the event of the winding up of the Issuer.

 

100

 

In the event of the bankruptcy, winding up or liquidation of the
Issuer, the claims of Holders of Dated Subordinated Debt Securities will rank
at least pari passu with all other of the Issuer’s
obligations that constitute, or would but for any applicable limitation on the
amount of such capital constitute, Lower Tier 2 Capital and in priority to
those whose claims constitute, or would but for any applicable limitation on
the amount of such capital constitute, Upper Tier 2 Capital or Tier 1 Capital
and in priority to the claims of holders of all classes of the share capital of
the Issuer.

 

In the event of the bankruptcy, winding up or liquidation of the
Issuer, if the amounts payable with respect to the Dated Subordinated Debt
Securities and any claims ranking pari passu
with any such Securities are not paid in full, the Holders of any such
Securities and holders of other claims ranking pari passu
with any such Securities shall share ratably in any distribution of the assets
of the Issuer in proportion to the respective amounts to which they are
entitled.

 

(d)                                 Subordination
of Perpetual Subordinated Debt Securities. 
The rights and claims of the Holders of any series of Perpetual
Subordinated Debt Securities are subordinated to Senior Creditors with respect
to such Securities, including claims of any holders of Dated Subordinated Debt
Securities or any other subordinated debt securities of the issuer not
expressed to rank equally with or junior to the Perpetual Subordinated Debt
Securities.

 

The following are “Senior Creditors”
with respect to any series of Perpetual Subordinated Debt Securities unless
otherwise provided in the Board Resolution or supplemental indenture executed
pursuant to Section 3.01 establishing the terms of such Securities: (i) any
creditors who are unsubordinated creditors of the Issuer with claims admitted
in the event of the winding up of the Issuer; (ii) any creditors of the
Issuer whose claims rank, or are expressed to rank, subordinated to the claims
of other creditors of the Issuer (other than those whose claims constitute, or
would but for any applicable limitation on the amount of such capital,
constitute Tier 1 Capital (which ranks, or is expressed to rank, junior to the
Perpetual Subordinated Debt Securities)) or whose claims rank, or are expressed
to rank, equally with, or junior to, the claims of the Holders of the Perpetual
Subordinated Debt Securities.

 

Except in a bankruptcy, winding up, liquidation or, if the Financial
Services Authority has indicated that it has no objection to such payment, any
payments of principal, premium, if any, interest, if any, or Deferred Interest,
if any, in respect of the Perpetual Subordinated Debt Securities of any series
are conditional upon the Issuer satisfying the Solvency Condition at the time
of and immediately after any such payment, and no principal, premium, if any,
interest, if any, or Deferred Interest, if any, shall be payable in respect of
any series of such debt securities and neither the Issuer nor any of its
Subsidiaries, as applicable, may redeem or repurchase any of the debt
securities of any such series except to the extent that the Issuer would
satisfy the Regulatory Capital Requirement and Solvency Condition both at the
time of and immediately after, any such payment, redemption or repurchase.

 

101

 

In the event of the bankruptcy, winding up or liquidation of the
Issuer, the claims of Holders of Perpetual Subordinated Debt Securities will
rank at least pari passu with all other of the
Issuer’s obligations that constitute, or would but for any applicable
limitations on the amount of such capital constitute, Upper Tier 2 Capital and
in priority to those whose claims constitute, or would but for any applicable
limitation as the amount of such capital constitute, Tier 1 Capital and in
priority to the claims of holders of all classes of share capital of the
Issuer.

 

In the event of the bankruptcy, winding up or liquidation of the
Issuer, the amount that shall be payable with respect to the Perpetual
Subordinated Debt Securities of each series shall be determined by calculating
the amount, if any, as would have been payable in respect thereof as if, on the
day immediately prior to the commencement of any such bankruptcy, winding up or
liquidation and thereafter, the Holders of such Perpetual Subordinated Debt
Securities were the holders of the Issuer’s Preference Shares having a
preferential right to a return of assets in any such bankruptcy, winding up or
liquidation over the holders of all issued classes of share capital for the
time being and any notional class of shares in the Issuer’s capital by
reference to which the claims of any person in the Issuer’s winding up are to
be determined (other than any notional class of shares of equal seniority with
such shares), assuming that such Preference Shares were entitled (to the
exclusion of other rights or privileges) to receive as a return of capital in
such bankruptcy, winding up or liquidation an amount equal to the principal
amount of the Perpetual Subordinated Debt Securities of such series then
Outstanding together with premium, if any, and interest accrued to the date of
repayment, if any, and Deferred Interest to the extent provided pursuant to Section 3.01.  In the event such amounts and any claims
ranking pari passu are not paid in full, the
Holders of such Securities and claims will share ratably in any such
distribution of the assets of the Issuer in proportion to the respective
amounts to which they are entitled.

 

(e)                                  Subordination
of Perpetual Subordinated Capital Securities.  The rights and claims of the Holders of any
series of Perpetual Subordinated Capital Securities are subordinated to Senior
Creditors with respect to such Securities, including claims of any holders of
Dated Subordinated Debt Securities, Perpetual Subordinated Debt Securities or
any other subordinated debt securities of the Issuer not expressed to rank
equally with or junior to the Perpetual Subordinated Capital Securities.

 

The following are “Senior Creditors”
with respect to any series of Perpetual Subordinated Capital Securities unless
otherwise provided in the Board Resolution or supplemental indenture executed
pursuant to Section 3.01 establishing the terms of such Securities: (i) any
creditors who are unsubordinated creditors of the Issuer with claims admitted
in the event of the winding up of the Issuer; (ii) any creditors of the
Issuer having claims in respect of liabilities that rank, or are expressed to
rank, subordinated to the claims of other creditors of the Issuer (other than
those whose claims constitute, or would but for any applicable limitation on
the amount of such capital constitute, Tier 1 Capital or whose claims rank, or
are expressed to rank, equally with, or junior to, the claims of the holders of
the Perpetual Subordinated Capital Securities); 
(iii) any creditors of the Issuer whose claims are in respect of
the Issuer’s outstanding debt securities that constitute Tier 2 Capital (and
such other securities outstanding from time 

 

102

 

to time that rank or are expressed to rank equally
with, or senior to, any such Tier 2 Capital); and (iv) all other creditors
having claims, including other such creditors holding subordinated debt
securities, except those that rank, or are expressed to rank, equally with
(including holders of Parity Securities) or junior to (including holders of
Junior Securities) the claims of any holder of Perpetual Subordinated Capital
Securities of such series.

 

Except in a bankruptcy, winding up, liquidation or, if the Financial
Services Authority has indicated that it has no objection to such payment, any
payments of principal, premium, if any, interest, if any, or Deferred Interest,
if any, in respect of the Perpetual Subordinated Capital Securities of any
series are conditional upon the Issuer satisfying the Solvency Condition at the
time of and immediately after any such payment, and no principal, premium, if
any, interest, if any, or Deferred Interest, if any, shall be payable in
respect of any series of such debt securities and neither the Issuer nor any of
its Subsidiaries, as applicable, may redeem or repurchase any of the debt
securities of any such series except to the extent that the Issuer would
satisfy the Regulatory Capital Requirement and Solvency Condition both at the
time of and immediately after, any such payment, redemption or repurchase.

 

In the event of the bankruptcy, winding up or liquidation of the
Issuer, the claims of Holders of Perpetual Subordinated Capital Securities will
rank at least pari passu with all other of the
Issuer’s obligations that constitute, or would but for any applicable
limitations on the amount of such capital constitute, Tier 1 Capital and in
priority to the claims of holders of all classes of the Issuer’s share capital
(but, unless otherwise specified in the applicable Board Resolutions or
supplemental indentures executed pursuant to Section 3.01 with respect to
the relevant series of Perpetual Subordinated Capital Securities, pari passu with the holders of the Issuer’s
most senior ranking class of issued Preference Shares, if any, except to the
extent such Preference Shares represent claims of Senior Creditors).

 

In the event of the bankruptcy, winding up or liquidation of the
Issuer, the amount that shall be payable with respect to the Perpetual Subordinated
Capital Securities of each series shall be determined by calculating the
amount, if any, as would have been payable in respect thereof as if, on the day
immediately prior to the commencement of any such bankruptcy, winding up or
liquidation and thereafter, the Holders of such Perpetual Subordinated Capital
Securities were the holders of Preference Shares in the capital of the Issuer
having a preferential right to a return of assets in the winding up over the
holders of all issued classes of share capital of the Issuer (but, unless
otherwise specified in the applicable Board Resolutions or supplemental
indentures executed pursuant to Section 3.01 with respect to the relevant
series of Perpetual Subordinated Capital Securities, pari passu with the holders of the Issuer’s most senior
ranking class of issued Preference Shares, if any, except to the extent such
Preference Shares represent claims of Senior Creditors), assuming that such
Preference Shares were entitled (to the exclusion of other rights or privileges)
to receive as a return of capital in such bankruptcy, winding up or liquidation
an amount equal to the principal amount of the Perpetual Subordinated Capital
Securities of such series then Outstanding together with premium, if any,
interest accrued to the date of repayment, if any, and Deferred Interest 

 

103

 

to the extent provided for pursuant to Section 3.01.  In the event such amounts and any claims
ranking pari passu are not paid
in full, the holders of such Securities and claims will share ratably in any
such distribution of the assets of the Issuer in proportion to the respective
amounts to which they are entitled.

 

(f)                                    Order of Payment.  In the event of the bankruptcy, winding up or
liquidation of the Issuer, all amounts in respect of any of the Securities
issued by such Issuer paid to the Subordinated Trustee for the Securities of
any series by the applicable liquidator of the Issuer in the bankruptcy,
winding up or liquidation of the Issuer shall be held by such Subordinated
Trustee upon trust:

 

(1)                                  firstly,
for payment or satisfaction of the costs, charges, expenses (including
reasonable counsel fees) and liabilities incurred by such Subordinated Trustee
in or about the execution of the trusts of these presents (including all
amounts due and payable pursuant to Section 6.07);

 

(2)                                  secondly,
for payment of claims of all Senior Creditors with respect to Dated
Subordinated Debt Securities in the bankruptcy, winding up or liquidation of
the Issuer to the extent that such claims are admitted to proof in the
bankruptcy, winding up or liquidation (not having been satisfied out of the
other resources of the Issuer) excluding interest accruing after commencement
of the bankruptcy, winding up or liquidation;

 

(3)                                  thirdly,
for payment pari passu and
ratably of the amounts owing on or in respect of all Dated Subordinated Debt
Securities of any such series issued hereunder by such Issuer;

 

(4)                                  fourthly,
for the payment of claims of all Senior Creditors with respect to Perpetual
Subordinated Debt Securities in the bankruptcy, winding up or liquidation of
the Issuer to the extent that such claims are admitted as proof in the
bankruptcy, winding up or liquidation (not having been satisfied out of the
other resources of the Issuer) excluding interest accruing after commencement
of the bankruptcy, winding up or liquidation;

 

(5)                                  fifthly,
for payment pari passu and
ratably of the amounts owing on or in respect of all Perpetual Subordinated
Debt Securities of any series issued hereunder by such Issuer; and

 

(6)                                  sixthly,
for the payment of claims of all Senior Creditors with respect to Perpetual
Subordinated Capital Securities in the bankruptcy, winding up or liquidation of
the Issuer to the extent that such claims are admitted as proof in the
bankruptcy, winding up or liquidation (not having been satisfied out of the
other resources of the Issuer) excluding interest accruing after commencement
of the bankruptcy, winding up or liquidation;

 

(7)                                  seventhly,
for payment pari passu and
ratably of the amounts owing on or in respect of all Perpetual Subordinated
Capital Securities of any series issued hereunder by such Issuer.

 

104

 

The trust mentioned above may be performed by the Subordinated Trustee
paying over to the applicable liquidator the amounts received by the
Subordinated Trustee as aforesaid (less any amounts thereof applied in the
implementation of such trust) on terms that such liquidator shall distribute
the same accordingly and the receipt of such liquidator for the same shall be a
good discharge to the Subordinated Trustee for the performance by it of such
trust.  The Subordinated Trustee shall be
entitled and it is hereby authorized to call for and to accept as conclusive
evidence thereof a certificate from the applicable liquidator as to: (i) the
amount of the claims of the Senior Creditors with respect to each series of
Subordinated Debt Securities referred to above; and (ii) the Persons
entitled thereto and their respective entitlements.

 

(g)                                 Amounts
Held in Trust.  The provisions of
this Section shall not be applicable to any amounts of principal, premium,
if any, and interest and Deferred Interest, if any, or any amounts in
connection with any applicable sinking fund or redemption provisions or payment
of any other sums due on any such Securities, in respect of any of the
Securities for the payment of which funds have been deposited in trust with the
Subordinated Trustee or any Paying Agent or have been set aside by the Issuer
in trust in accordance with the provisions of this Subordinated Indenture; provided, however, that at the time of
such deposit or setting aside, and immediately thereafter, the foregoing provisions
of this Section are complied with.

 

(h)                                 Subrogation.  In a bankruptcy, winding up or liquidation in
England and Wales of the Issuer, subject to the satisfaction in full of all
claims of Senior Creditors of a particular series of Securities issued hereunder
that are admitted in such bankruptcy, winding up or liquidation, the Holders of
the Securities of such series shall be subrogated (pro rata with the holders
(or the trustees for such holders) of other pari
passu claims, including the Holders of all other Securities issued
hereunder ranking pari passu with
such series on the basis of the respective amounts paid over, directly or
through the applicable liquidator, to or for the benefit of such Senior
Creditors) to the rights of such Senior Creditors to receive payments or
distributions of cash, property or securities of the Issuer applicable to
claims of such Senior Creditors until the principal, premium, if any, and
interest, if any, in respect of any such Securities, shall be paid in full;
and, for the purposes of such subrogation, no payments or distributions to such
Senior Creditors of cash, property or securities of the Issuer to which any
such Holders or the Subordinated Trustee would be entitled except for the
provisions of this Section, and no payment over by any such Holders or the
Subordinated Trustee, directly or through the applicable liquidator, to or for
the benefit of such Senior Creditors pursuant to the provisions of this
Section, shall, as between the Issuer, its creditors other than such Senior
Creditors, and any such Holders and the Subordinated Trustee be deemed to be a
payment by the Issuer to or on account of such Senior Creditors.

 

SECTION 13.02.                                        Provisions Solely to Define Relative Rights.

 

The provisions of this Article Thirteen are and are intended
solely for the purpose of defining the relative rights of the Holders of the
Securities of each series on the one hand and the Senior Creditors of the
Issuer on the other hand.  Other than as
provided for in this Subordinated Indenture, any Board Resolutions or
supplemental 

 

105

 

indentures executed pursuant to Section 3.01 with
respect to any series of Securities, nothing contained in this Article or
elsewhere in this Subordinated Indenture or in the Securities is intended to or
shall (a)(i) impair, as among the Issuer, its creditors (other than Senior
Creditors) and the Holders of any Securities issued by such Issuer, the
obligation of the Issuer, which is absolute and unconditional, to pay to the
Holders of such claims the principal of, premium, if any, on and interest and
Deferred Interest, if any, on such Securities as and when the same shall become
due and payable in accordance with their terms and this Subordinated Indenture
or (ii) affect the relative rights against such Issuer of the Holders of
any such Securities and creditors of such Issuer (other than the Senior
Creditors) or (iii) prevent the Subordinated Trustee or such Holders from
exercising all remedies otherwise permitted by applicable law upon default
under this Subordinated Indenture, subject to the rights, if any, under this Article of
the Senior Creditors of the Issuer to receive cash, property or securities
otherwise payable or deliverable to the Subordinated Trustee or such Holders;
or (b) prevent the Subordinated Trustee or such Holders from exercising
all remedies otherwise permitted by applicable law upon default under this
Subordinated Indenture.

 

SECTION 13.03.                                        Subordinated Trustee to Effectuate Subordination.

 

Each Holder of Securities by his acceptance thereof authorizes and
directs the Subordinated Trustee on his behalf to take such action as may be
necessary or appropriate to effectuate the subordination of such Securities
provided in this Article Thirteen and appoints the Subordinated Trustee
his attorney-in-fact for any and all such purposes.

 

SECTION 13.04.                                        No Waiver of Subordination Provisions.

 

No right of any present or future Senior Creditors of the Issuer, if
any, to enforce subordination as herein provided shall at any time in any way
be prejudiced or impaired by any act or failure to act on the part of the
Issuer or by any act or failure to act, in good faith, by any such Senior
Creditors of the Issuer, if any, or by any non-compliance by the Issuer with
the terms, provisions and covenants of this Subordinated Indenture, regardless
of any knowledge thereof that any such Senior Creditors of the Issuer, if any,
may have or be otherwise charged with.

 

SECTION 13.05.                                        Notice to Subordinated Trustee.

 

The Issuer shall give prompt written notice to the Subordinated Trustee
of any fact known to it which would prohibit the making of any payment when due
to or by the Subordinated Trustee in respect of any Securities.  Notwithstanding the provisions of this Article or
any other provision of this Subordinated Indenture but subject to the
provisions of Section 13.01, the Subordinated Trustee shall not be charged
with knowledge of the existence of any facts which would prohibit the making of
any payment when due to or by the Subordinated Trustee in respect of any such
Securities unless and until the Subordinated Trustee shall have received
written notice thereof from the Issuer or a Senior Creditor of such Issuer, as
the case may be, or from any trustee therefor, as the case may be; and, prior
to the receipt of any such written notice by a Responsible 

 

106

 

Officer of the Subordinated Trustee, the Subordinated
Trustee, subject to the provisions of Section 6.01, shall be entitled in
all respects to assume that no such facts exist; provided, however, that if the Subordinated Trustee shall
not have received the notice provided for in this Section at least three
Business Days prior to the date upon which by the terms hereof any money may
become payable for any purpose (including, without limitation, the payment of
the principal of (and premium, if any, on) and interest and Deferred Interest,
if any, on any Security), then, subject to the provisions of Section 13.01,
the Subordinated Trustee shall have full power and authority to receive such
money and to apply the same to the purpose for which such money was received
and shall not be affected by any notice to the contrary which may be received
by it within three Business Days prior to such date.

 

Subject to the provisions of Section 6.01, the Subordinated
Trustee shall be entitled to conclusively rely on the delivery to it of a
written notice by a Person representing himself to be a Senior Creditor or a
trustee therefor, to establish that such notice has been given by a Senior
Creditor of such Issuer or a trustee therefor. 
In the event that the Subordinated Trustee determines in good faith that
further evidence is required with respect to the right of any Person as a
Senior Creditor of such Issuer to participate in any payment or distribution
pursuant to this Article, the Subordinated Trustee may request such Person to
furnish evidence to the reasonable satisfaction of the Subordinated Trustee as
to the amount of claims held by such Person, and if such evidence is not
furnished, the Subordinated Trustee may defer any payment to such Person
pending judicial determination as to the right of such Person to receive such
payment.

 

SECTION 13.06.                                        Reliance on Judicial Order or Certificate of
Liquidating Agent.

 

Upon any payment or distribution of assets of the Issuer referred to in
this Article, the Subordinated Trustee, subject to the provisions of Section 6.01,
and the Holders of the Securities shall be entitled to conclusively rely upon (i) any
order or decree entered by any court in England and Wales in which any
bankruptcy, winding up or liquidation of the Issuer, if any, or similar case or
proceeding, including a proceeding for the suspension of payments under English
law, is pending, or (ii) a certificate of the applicable liquidator,
assignee for the benefit of creditors, agent or other Person making such
payment or distribution, delivered to the Subordinated Trustee and such
Holders, for the purpose of ascertaining the Persons entitled to participate in
such payment or distribution, the Senior Creditors of the Issuer, if any, as
the case may be, and other claims against such Issuer the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article.

 

SECTION 13.07.                                        Subordinated Trustee Not Fiduciary for Creditors.

 

The Subordinated Trustee shall not be deemed to owe any fiduciary duty
to the Senior Creditors of the Issuer, if any, as the case may be, and shall
not be liable to any such holders if it shall in good faith mistakenly pay over
or distribute to Holders of the Securities or to the Issuer or to any other
Person cash, property or securities to which any such Senior Creditors or
depositors and other creditors shall be entitled by virtue of 

 

107

 

this Article or otherwise.  With respect to the Senior Creditors, the
Subordinated Trustee undertakes to perform or to observe only such of its
covenants or obligations as are specifically set forth in this Article and
no implied covenants or obligations with respect to the Senior Creditors shall
be read into this Indenture against the Subordinated Trustee.

 

SECTION 13.08.                                        Rights of Subordinated Trustee as Creditor;
Preservation of Subordinated Trustee’s Rights.

 

The Subordinated Trustee in its individual capacity shall be entitled
to all the rights set forth in this Article with respect to any claims of
Senior Creditors of the Issuer, if any, as the case may be, which may at any
time be held by it, to the same extent as any other Senior Creditors of the
Issuer, if any, as the case may be, and nothing in this Subordinated Indenture
shall deprive the Subordinated Trustee of any of its rights as such holder.

 

Nothing in this Article shall apply to claims of, or payments to,
the Subordinated Trustee under or pursuant to Section 6.07.

 

SECTION 13.09.                                        Article Applicable to Paying Agents.

 

In case at any time any Paying Agent other than the Subordinated
Trustee shall have been appointed by the Issuer and be then acting hereunder,
the term “Subordinated Trustee” as used in this Article shall in such case
(unless the context otherwise requires) be construed as extending to and
including such Paying Agent within its meaning as fully for all intents and
purposes as if such Paying Agent were named in this Article in addition to
or in place of the Subordinated Trustee; provided, however,
that Section 13.08 shall not apply to the Issuer or any Affiliate of the
Issuer, if the Issuer or such Affiliate acts as Paying Agent.

 

SECTION 13.10.                                        Conversion or Exchange Not Deemed Payment.

 

For the purposes of this Article Thirteen only, delivery of
Preference Shares upon conversion or exchange of Securities in accordance with Article Fourteen,
if applicable to a particular series of Securities, shall not be treated as
constituting a payment or distribution on account of the principal of the
Securities or on account of the purchase or other acquisition of the
Securities.  Nothing contained in this Article or
elsewhere in this Indenture or in the Securities is intended to or shall
impair, as among the Issuer, its creditors and the Holders of the Securities,
the right, which if applicable to a particular series of Securities is absolute
and unconditional, of the Issuer to convert or exchange the Securities in
accordance with Article Fourteen.

 

ARTICLE
FOURTEEN

 

CONVERSION
OR EXCHANGE OF SECURITIES

 

SECTION 14.01.                                        Applicability of Article.

 

If specified pursuant to Section 3.01 for the Securities of any
series, the Securities of such series shall be convertible or exchangeable in
accordance with their 

 

108

 

terms and (except as otherwise specified as
contemplated by Section 3.01 for Securities of such series) in accordance
with this Article.  Unless otherwise
specified pursuant to Section 3.01 for the Securities of any series, the
Securities of each series shall be convertible or exchangeable, at the Issuer’s
option and in its sole discretion, in whole or in part, into Preference Shares
in each case in accordance with this Article.

 

SECTION 14.02.                                        Election to Convert or Exchange; Notice to
Subordinated Trustee.

 

An election of the Issuer to convert or exchange Securities, as the
case may be, shall be evidenced by an Officers’ Certificate furnished to the
Subordinated Trustee stating that the Issuer is entitled to effect such
conversion or exchange and setting forth a statement of facts demonstrating the
same.

 

SECTION 14.03.                                        Notice of Conversion or Exchange.

 

Not less than 30 days nor more than 60 days prior to the Event Date,
the Issuer shall notify the Subordinated Trustee in writing of its election to
convert or exchange, as the case may be, the Securities and of the series of
Securities to which such election relates. 
The Subordinated Trustee shall within five Business Days after receipt
of such notice from the Issuer and at the expense of the Issuer, cause notice
of such election to be mailed to each Holder of Securities to be converted or
exchanged, as the case may be.

 

All notices of
conversion or exchange shall be prepared by the Issuer and shall state:

 

(1)                                  the
Event Date;

 

(2)                                  if
less than all of the series of the Securities are to be converted or exchanged,
the identification of the particular Securities to be converted or exchanged,
including relevant CUSIP numbers and other securities identification numbers,
which Securities shall be selected by the Subordinated Trustee from the
Outstanding Securities of such series not previously called for conversion, by
such method as the Subordinated Trustee shall deem fair and appropriate provided, that if on the Event Date such Securities are
registered as a global security, the Depositary shall determine, in accordance
with its procedures, the principal amount of such Securities held by each of
the Depositary’s participants to be converted or exchanged;

 

(3)                                  that
on the Event Date, the Security to be converted or exchanged will cease to
exist except, if applicable, to evidence the Preference Shares as described in Section 14.07
below on and after such Event Date;

 

(4)                                  if
such Securities are not registered as a global security, the place or places
where such Securities are to be surrendered for conversion or exchange;

 

(5)                                  the
form in which the Issuer will issue the Preference Shares; and

 

(6)                                  such
information as may be set out in a Board Resolution or supplemental indenture
executed pursuant to Section 3.01.

 

109

 

SECTION 14.04.                                        Deposit of Payments.

 

Prior to 10:00 a.m., New York time, on any Event Date, the Issuer
shall deposit with the Subordinated Trustee or with a Paying Agent an amount of
money sufficient to pay accrued interest, if any, to the Event Date on the
Securities to be converted or exchanged on the Event Date.

 

SECTION 14.05.                                        Surrender of Securities.

 

Without prejudice to the Issuer’s right to convert or exchange the
Securities, any  Security which is to be
converted or exchanged shall, unless such Security is registered as a global
security, be surrendered at an office or agency of the Issuer designated for
that purpose pursuant to Section 10.02 not less than 10 days prior to the
Event Date (with due endorsement by, or a written instrument of transfer in
form satisfactory to the Issuer and the Subordinated Trustee duly executed by
the Holder thereof or his attorney-in-fact duly authorized in writing)
accompanied by written notice specifying the name or names with address or
addresses in which the Preference Shares, are to be issued.  The Subordinated Trustee will inform the
Issuer of all such notices and the Issuer will, if applicable, direct the ADR
Depositary accordingly under the terms of the ADR Deposit Agreement.  Securities surrendered for conversion or exchange
shall, if surrendered to any Person other than the Subordinated Trustee, be
delivered to the Subordinated Trustee for delivery by it to the Issuer or, if
delivered to the Subordinated Trustee, shall be delivered by it to the Issuer.

 

SECTION 14.06.                                        Issuance of Preference Shares.

 

On or prior to the Event Date with respect to Securities surrendered
for conversion or exchange, the Issuer shall, unless the Issuer shall have
notified the Subordinated Trustee otherwise in writing not less than 30 days
nor more than 60 days prior to the Event Date, deliver or procure the delivery
of a single share warrant to bearer to the ADR Depositary evidencing all of the
Preference Shares in respect of which such Securities are to be converted in
accordance with the provisions of this Article Fourteen.  Such conversion or exchange shall be deemed
to have been made immediately prior to the close of business in New York City
on the Event Date.

 

In the event that the Issuer shall have notified the Subordinated
Trustee that it will not deliver or procure the delivery of a single share
warrant to bearer in exchange for the Securities of a series subject to the
conversion or exchange as provided in Section 14.05: (i) the Issuer
shall, on or prior to the Event Date, with respect to definitive Securities,
deliver or procure the delivery of individual certificates representing the
Preference Shares (or evidencing the rights to receive such Preference Shares)
of such series for which such Securities are to be converted or exchanged in
accordance with the provisions of this Article Fourteen; or (ii) in
the case of Preference Shares in registered form, such Preference Shares shall
be registered in the names of the Holders of such Securities in definitive form
as they appear on the Security Register or, at the direction of such Holder, in
the name of the ADR Custodian for the account and benefit of the ADR Depositary
who will issue ADRs evidencing ADSs representing the Preference Shares to 

 

110

 

such Holder; or (iii) in the case of Preference
Shares evidenced by share warrants to bearer, such Preference Shares shall be
delivered to the bearer of the bearer Security in definitive form or, at the
direction of such bearer, to the ADR Custodian for the account and benefit of
the ADR Depositary who will issue ADRs evidencing ADSs representing Preference
Shares to such Holder.

 

Any exchange or conversion shall be deemed to have been made
immediately prior to the close of business in New York City on the Event Date.

 

SECTION 14.07.                                        Effect of Conversion or Exchange.

 

Notice of conversion or exchange having been given as aforesaid, the
Securities so to be converted or exchanged, as the case may be, shall on the
Event Date cease to exist for any purpose, other than to evidence the
Preference Shares as described below. 
Upon the Event Date accrued interest, if any, on such Security to the
Event Date and all other amounts due and owing hereunder shall be paid by the
Issuer to the Holder surrendering such Security. Such payment shall be a condition
to the conversion or exchange and no conversion or exchange shall occur unless
such payments are made.

 

On and after the Event Date, each Security converted or exchanged,
until surrendered, shall be deemed to evidence the right to receive the
Preference Shares with a liquidation preference equivalent to the principal
amount of such Security upon such surrender. 
On and after the Event Date, until a Holder of a Security has
surrendered such Security, such Holder shall be entitled to receive any
dividends, payments or other distributions in respect of such Preference Shares
and shall have the same rights with respect to, and shall be deemed to be the
Holder of, such Preference Shares as if it had so surrendered such Security on
or prior to the Event Date; provided, however,
that no dividends, payments or other distributions in respect of such
Preference Shares shall be paid or distributed to such Holder any earlier than
the date on which such Security is surrendered.

 

SECTION 14.08.                                        Validity of Preference Shares, Depositary Agreement
and ADRs.

 

The Issuer shall take all corporate and other action which may be
necessary in order that it may validly and legally issue Preference Shares upon
each conversion or exchange of the Outstanding Securities.  The Issuer covenants that the Preference
Shares will when issued upon such conversion or exchange be duly authorized and
validly issued, fully paid, free of all liens and charges, and not subject to
calls for further funds.

 

The Issuer will take all corporate or other action which may be
necessary to ensure (i) the validity and enforceability of the Depositary
Agreement and (ii) that the applicable ADRs may be validly and legally
issued upon each conversion or exchange of the Outstanding Securities for
Preference Shares.

 

111

 

SECTION 14.09.                                        Legal and Regulatory Compliance.

 

Notwithstanding any provision of this Subordinated Indenture to the
contrary, the right of the Issuer to cause any conversion or exchange of the
Securities of any series for Preference Shares on any proposed Event Date
shall, unless otherwise provided in a Board Resolution or supplemental
indenture executed pursuant to Section 3.01, be subject to the fulfillment
of the following conditions with respect to such Securities of such series, and
the Issuer represents and warrants for the benefit of the holders of Preference
Shares that all such conditions shall have been satisfied prior to any such
conversion or exchange on the Event Date:

 

(1)                                  as
of such Event Date, there shall be no accrued but unpaid interest (including
Deferred Interest) outstanding on the Securities of such Series (including
amounts paid on the Event Date) or other unpaid amounts then due and owing
hereunder;

 

(2)                                  as
of such Event Date, no Event of Default, Payment Default, Payment Event or
Capital Security Event Default shall have occurred and be continuing with
respect to the particular series of Securities;

 

(3)                                  as
of such Event Date, there has not been, in any one instance or in the aggregate,
an adverse effect on the rights, powers, privileges, validity or enforceability
of the Preference Shares, the ADRs or the Deposit Agreement;

 

(4)                                  the
Preference Shares to be issued on such Event Date shall be duly authorized and
reserved for issuance upon such conversion and when issued upon such exchange,
will be fully paid and not subject to calls for further funds;

 

(5)                                  no
consents, authorizations, approvals or exemptions, except in each case such as
shall have been obtained, will be required prior to such Event Date for the
issuance and delivery of the Preference Shares to be issued upon such
conversion or exchange or the ADRs;

 

(6)                                  the
issuance and delivery of the Preference Shares and the ADRs to be issued on
such Event Date shall not violate (i) the Articles of Association of the
Issuer or (ii) any law, rule or regulation applicable to the Issuer;

 

(7)                                  there
shall have not occurred any change in law in England, or any amendment of the
Articles of Association of the Issuer, prior to such Event Date, materially and
adversely affecting the rights and privileges attached to the Preference Shares
or the ADRs (including, without limitation, the rights of the holders thereof
in the event of a bankruptcy or other similar proceeding with respect to the
Issuer) or such holders’ access to the courts of the United Kingdom and other
applicable governmental authorities to enforce such rights; and

 

(8)                                  such
other condition(s) as may be set out in a Board Resolution or supplemental
indenture executed pursuant to Section 3.01.

 

112

 

SECTION 14.10.                                        Taxes and Charges.

 

Unless otherwise specified pursuant to Section 3.01, the issuance
and delivery of Preference Shares upon conversion or exchange of the Securities
of any series pursuant to this Article Fourteen shall be made without
charge to the converting or exchanging Holder of Securities for such Preference
Shares, or for any tax or other governmental charge (other than taxes on income
or capital gains) in respect of the issuance or delivery of such Preference
Shares; provided, however, that the Issuer shall
not be required to pay any tax or other governmental charge which may be
payable in respect of (a) issuance or delivery of Preference Shares by or
at the direction or request of a Holder thereof to any Person who is or is a
nominee or agent for a Person whose business is or includes the provision of
clearance services within the meaning of Section 70 or Section 96 of
the Finance Act of 1986 or whose business is or includes issuing depositary
receipts within the meaning of Section 67 or Section 93 of the
Finance Act of 1986, other than the ADR Depositary or ADR Custodian or any
successor thereto, all such Persons being “Excepted Persons”, or (b) a
transfer involved in the issuance and delivery of any such Preference Shares to
any Person other than any Holder (not being an Excepted Person) of the Security
to be converted or exchanged (unless such other person is the securities
depositary selected by the Issuer for the Securities of such series), and,
without prejudice to the Issuer’s right to convert or exchange the Securities,
the Issuer shall not be required to issue or deliver or procure the delivery of
such Preference Shares unless and until the Person requesting the issuance or
delivery thereof shall have paid to the Issuer the amount of such tax or other
governmental charge or shall have established to the satisfaction of the Issuer
that such tax or other governmental charge has been paid.

 

SECTION 14.11.                                        Subordinated Trustee Not Liable.

 

The Subordinated Trustee shall not be accountable with respect to the
validity or value (or the kind or amount) of any Preference Shares which may be
issued or delivered upon the conversion or exchange of any Security pursuant to
this Article Fourteen, and makes no representation with respect
thereto.  The Subordinated Trustee shall
not be responsible for any failure of the Issuer to issue, transfer or deliver
or procure the delivery of any Preference Shares upon the surrender of any
Security for the purpose of a conversion or exchange pursuant to this Article Fourteen
or to comply with any of the covenants of the Issuer contained in this Article Fourteen.

 

*    *    *

 

This instrument may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original but all such counterparts
shall together constitute but one and the same instrument.

 

113

 

IN WITNESS WHEREOF, the parties hereto have caused this Subordinated
Indenture to be duly executed as of the date first written above.

 

 

	
   

  	
  PRUDENTIAL plc,

  
	
   

  	
   

  
	
   

  	
  as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Elisabeth Wenusch

  
	
   

  	
   

  	
  Name: Elisabeth Wenusch

  
	
   

  	
   

  	
  Title: Director, Group
  Funding and Special 

  
	
   

  	
   

  	
    Projects

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST
  COMPANY

  
	
   

  	
  AMERICAS

  
	
   

  	
   

  
	
   

  	
  as Subordinated Trustee

  
	
   

  	
  By: Deutsche Bank
  National Trust Company

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Rodney Gaughan

  
	
   

  	
   

  	
  Name: Rodney Gaughan

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Kenneth R. Ring

  
	
   

  	
   

  	
  Name: Kenneth R. Ring

  
	
   

  	
   

  	
  Title: Vice President

  

 

114

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