Document:

Exhibit
4.63

CONFORMED COPY

DATED 31
AUGUST 2006

COUNTRYWIDE
FINANCIAL CORPORATION

as Issuer

and

COUNTRYWIDE
HOME LOANS, INC.

as Guarantor

and

DEUTSCHE
TRUSTEE COMPANY LIMITED

as Trustee

_____________________________________________

FIRST
SUPPLEMENTAL TRUST DEED

modifying
and restating the provisions of the

Trust Deed dated 15 August 2005

(as supplemented from time to time)

relating to the

U.S. $5,000,000,000

Euro Medium Term Note Programme

_____________________________________________

For the
Issuer and the Guarantor:

GIDE LOYRETTE NOUEL MNP

Citypoint

1 Ropemaker Street

London
EC2Y 9HT

For the
Trustee:

ALLEN & OVERY LLP

One New Change

London EC4M 9QQ

 

THIS FIRST SUPPLEMENTAL TRUST
DEED is made on 31 August 2006  BETWEEN:

(1)                                COUNTRYWIDE FINANCIAL CORPORATION, a
company incorporated with limited liability in the State of Delaware, whose
principal office is at 4500 Park Granada, Calabasas, California 91302, United
States of America (the Issuer);

(2)                                COUNTRYWIDE HOME LOANS, INC., a
company incorporated with limited liability in the State of New York, whose
principal office is at 4500 Park Granada aforesaid (the Guarantor);
and

(3)                                DEUTSCHE
TRUSTEE COMPANY LIMITED, a company incorporated with limited liability in
England and Wales, whose registered office is at Winchester House, 1 Great
Winchester Street, London EC2N 2DB, England (the Trustee,
which expression shall, wherever the context so admits, include such company
and all other persons or companies for the time being the trustee or trustees
of these presents) as trustee for the Noteholders, the Receiptholders and the
Couponholders (each as defined below).

WHEREAS:

(1)                                 This
First Supplemental Trust Deed is supplemental to the Trust Deed dated 15 August
2005 (the Principal  Trust Deed)
made between the Issuer, the Guarantor and the Trustee and relating to a U.S.$5,000,000,000
Euro Medium Term Note Programme established by the Issuer and the Guarantor.

(2)                                 On
31 August 2006 the Issuer published a modified and updated Prospectus relating
to the Programme (the Prospectus).

(3)                                 Clause
19(B) of the Principal Trust Deed provides that the Trustee may without the
consent or sanction of the Noteholders, the Receiptholders or the Couponholders
at any time and from time to time concur with the Issuer and the Guarantor in
making any modification to the Principal Trust Deed which in the opinion of the
Trustee it may be proper to make provided that the Trustee is of the opinion
that such modification will not be materially prejudicial to the interests of
the Noteholders.

(4)                                 The
Issuer and the Guarantor have requested the Trustee to concur in making the
further modifications to the Principal Trust Deed (modified as aforesaid)
hereinafter contained in order to reflect the relevant modifications to the
Prospectus.

(5)                                 The
Trustee, being of the opinion that the modifications referred to in Recital (4)
above are not materially prejudicial to the interests of the Noteholders, has agreed
to concur with the Issuer and the Guarantor in making such modifications and
has agreed that notice of such modifications need not be given to the
Noteholders.

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

1.            DEFINITIONS

Subject as otherwise provided in this First
Supplemental Trust Deed and unless there is anything in the subject or context
inconsistent therewith, all words and expressions defined in the Principal
Trust Deed (modified as aforesaid) shall have the same meanings in this First
Supplemental Trust Deed.

2.            MODIFICATIONS

Save:

 2
 

 

(A)                              in
relation to all Series of Notes issued during the period up to and including
the day last preceding the date of this First Supplemental Trust Deed and all
(if any) Notes issued after such last preceding day so as to be consolidated
and form a single Series with the Notes of any such Series; and

(B)                                for
the purpose (where necessary) of construing the provisions of this First
Supplemental Trust Deed,

with effect on and from the date of this First
Supplemental Trust Deed:

(1)                                  the
Principal Trust Deed is modified in such manner as would result in the
Principal Trust Deed as modified being in the form set out in the Schedule
hereto; and

(2)                                  the
provisions of the Principal Trust Deed (insofar as the same still have effect)
shall cease to have effect and in lieu thereof the provisions of the Principal
Trust Deed as modified (and being in the form set out in the Schedule hereto)
shall have effect.

3.             GENERAL

(A)                              The Principal
Trust Deed shall henceforth be read and construed in conjunction with this First
Supplemental Trust Deed as one document.

(B)                                A
memorandum of this First Supplemental Trust Deed shall be endorsed by the
Trustee on the Principal Trust Deed and by the Issuer on the duplicate thereof.

IN WITNESS whereof
this First Supplemental Trust Deed has been executed as a deed by the Issuer,
the Guarantor and the Trustee and delivered on the date first written above.

 3

SCHEDULE

TRUST DEED

DATED 15 AUGUST 2005 AND
AMENDED

AND
RESTATED ON 31 AUGUST 2006

COUNTRYWIDE
FINANCIAL CORPORATION

as Issuer

and

COUNTRYWIDE
HOME LOANS, INC.

as Guarantor

and

DEUTSCHE
TRUSTEE COMPANY LIMITED

as Trustee

relating
to a

U.S.$5,000,000,000

Euro Medium Term Note Programme

Allen & Overy LLP

 

CONTENTS

 

	
  Clause

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  2.

  	
   

  	
  Amount and Issue of the Notes

  	
   

  	
  10

  
	
  3.

  	
   

  	
  Forms of the Notes

  	
   

  	
  12

  
	
  4.

  	
   

  	
  Fees, Duties and Taxes

  	
   

  	
  14

  
	
  5.

  	
   

  	
  Covenant of Compliance

  	
   

  	
  14

  
	
  6.

  	
   

  	
  Cancellation of Notes and Records

  	
   

  	
  14

  
	
  7.

  	
   

  	
  Guarantee

  	
   

  	
  15

  
	
  8.

  	
   

  	
  Non-Payment

  	
   

  	
  17

  
	
  9.

  	
   

  	
  Proceedings, Action and Indemnification

  	
   

  	
  17

  
	
  10.

  	
   

  	
  Application of Moneys

  	
   

  	
  18

  
	
  11.

  	
   

  	
  Notice of Payments

  	
   

  	
  18

  
	
  12.

  	
   

  	
  Investment by Trustee

  	
   

  	
  18

  
	
  13.

  	
   

  	
  Partial Payments

  	
   

  	
  19

  
	
  14.

  	
   

  	
  Covenants by the Issuer and the Guarantor

  	
   

  	
  19

  
	
  15.

  	
   

  	
  Remuneration and Indemnification of Trustee

  	
   

  	
  24

  
	
  16.

  	
   

  	
  Supplement to Trustee Acts

  	
   

  	
  25

  
	
  17.

  	
   

  	
  Trustee’s Liability

  	
   

  	
  30

  
	
  18.

  	
   

  	
  Trustee Contracting with the Issuer and the
  Guarantor

  	
   

  	
  30

  
	
  19.

  	
   

  	
  Waiver, Authorisation and Determination

  	
   

  	
  30

  
	
  20.

  	
   

  	
  Holder of Definitive Note assumed to be
  Receiptholder and Couponholder

  	
   

  	
  32

  
	
  21.

  	
   

  	
  Currency Indemnity

  	
   

  	
  33

  
	
  22.

  	
   

  	
  New Trustee

  	
   

  	
  33

  
	
  23.

  	
   

  	
  Trustee’s Retirement and Removal

  	
   

  	
  34

  
	
  24.

  	
   

  	
  Trustee’s Powers to be Additional

  	
   

  	
  34

  
	
  25.

  	
   

  	
  Notices

  	
   

  	
  34

  
	
  26.

  	
   

  	
  Governing Law

  	
   

  	
  35

  
	
  27.

  	
   

  	
  Submission to Jurisdiction

  	
   

  	
  35

  
	
  28.

  	
   

  	
  Counterparts

  	
   

  	
  36

  
	
  29.

  	
   

  	
  Contracts (Rights of Third Parties) Act 1999

  	
   

  	
  36

  

Schedule

	
  1.

  	
  Terms and Conditions of the Notes

  	
   

  	
  37

  
	
  2.

  	
  Forms of Global and Definitive Notes, Receipt,
  Coupon, Talon and Certificate

  	
   

  	
  63

  
	
   

  	
  Part 1

  	
  Form of Temporary Global Note

  	
   

  	
  63

  
	
   

  	
  Part 2

  	
  Form of Permanent Global Note

  	
   

  	
  72

  
	
   

  	
  Part 3

  	
  Form of Definitive Note

  	
   

  	
  81

  
	
   

  	
  Part 4

  	
  Form of Receipt

  	
   

  	
  85

  
	
   

  	
  Part 5

  	
  Form of Coupon

  	
   

  	
  86

  
	
   

  	
  Part 6

  	
  Form of Talon

  	
   

  	
  87

  
	
  3.

  	
  Provisions for Meetings of Noteholders

  	
   

  	
  89

  
	
   

  	
   

  	
   

  	
   

  
	
  Signatories

  	
   

  	
  97

  

 

 

THIS
TRUST DEED is made on 15 August 2005 BETWEEN:

(1)                                  COUNTRYWIDE FINANCIAL CORPORATION, a
company incorporated with limited liability in the State of Delaware, whose
principal office is at 4500 Park Granada, Calabasas, California 91302, United
States of America (the Issuer);

(2)                                  COUNTRYWIDE HOME LOANS, INC., a
company incorporated with limited liability in the State of New York, whose
principal office is at 4500 Park Granada aforesaid (the Guarantor);
and

(3)                                  DEUTSCHE TRUSTEE COMPANY LIMITED, a
company incorporated with limited liability in England and Wales, whose
registered office is at Winchester House, 1 Great Winchester Street, London
EC2N 2DB, England (the Trustee, which
expression shall, wherever the context so admits, include such company and all other
persons or companies for the time being the trustee or trustees of these
presents) as trustee for the Noteholders, the Receiptholders and the
Couponholders (each as defined below).

WHEREAS:

(1)                                  By resolutions of the Board of Directors of the Issuer passed on 19-20 August
2005 the Issuer has resolved to establish a Euro Medium Term Note Programme unconditionally
and irrevocably guaranteed by the Guarantor (the Programme) pursuant
to which the Issuer may from time to time issue Notes as set out herein.  Notes up to a maximum nominal amount
(calculated in accordance with Clause 3(5) of the Programme Agreement (as
defined below)) from time to time outstanding of U.S.$5,000,000,000 (subject to
increase as provided in the Programme Agreement) (the Programme Limit)
may be issued by the Issuer pursuant to the said Programme.

(2)                                  By resolutions of the Board of Directors of the Guarantor passed on 14
April 2005 the Guarantor has resolved to guarantee all Notes issued under the
said Programme and to enter into certain covenants as set out in this Trust
Deed.

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

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

1.                                      DEFINITIONS

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

Agency Agreement means the agreement dated 31 August 2006, as amended and/or
supplemented and/or restated from time to time, pursuant to which the Issuer
and the Guarantor have appointed the Agent and the other Paying Agents in
relation to all or any Series of the Notes and any other agreement for the time
being in force appointing another Agent or further or other Paying Agents in
relation to all or any Series of the Notes, or in connection with their duties,
the terms of which have previously been approved in writing by the Trustee,
together with any agreement for the time being in force amending or modifying
with the prior written approval of the Trustee any of the aforesaid agreements;

Agent means, in relation to all or any Series of the Notes, Deutsche Bank AG,
London Branch a corporation domiciled in Frankfurt am Main, Germany, operating
in the United Kingdom under

 

 1
 

 

branch number HR000005, acting through its London
branch at Winchester House, 1 Great Winchester Street, London EC2N 2DB and
hereinafter referred to as Deutsche Bank AG, London
Branch, or, if applicable, any Successor agent in relation thereto
which shall become such pursuant to the provisions of the Agency Agreement;

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

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

Calculation Agent means, in relation to all or any Series of the Notes, the person
appointed as such from time to time pursuant to the provisions of the Agency
Agreement or, if applicable, any Successor calculation agent in relation
thereto which shall become such pursuant to the provisions of the Agency
Agreement;

CGN means a Global Note where the applicable Final Terms specify the Notes
as not being in NGN form;

Clearstream, Luxembourg means Clearstream Banking, société anonyme;

Common Safekeeper means the party appointed to provide safekeeping for Notes issued in
NGN form;

Conditions means, in relation to the Notes of any Series, the terms and conditions
endorsed on or incorporated by reference into the Note or Notes constituting
such Series, such terms and conditions being in or substantially in the form
set out in Schedule 1 hereto or in such other form, having regard to the terms
of issue of the Notes of the relevant Series, as may be agreed between the
Issuer, the Agent, the Trustee and the relevant Dealer(s) as modified and
supplemented by the Final Terms applicable to the Notes of the relevant Series,
in each case as from time to time modified in accordance with the provisions of
these presents;

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

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

(i)                                     if appertaining to a Fixed Rate Note, in the form or substantially in
the form set out in 

Part 5 A of Schedule 2 hereto or in such other form, having regard to the terms
of issue of the Notes of the relevant Series, as may be agreed between the
Issuer, the Agent, the Trustee and the relevant Dealer(s); or

(ii)                                  if appertaining to a Floating Rate Note or an Indexed Interest Note, in
the form or substantially in the form set out in Part 5 B of Schedule 2 hereto or
in such other form, having regard to the terms of issue of the Notes of the
relevant Series, as may be agreed between the Issuer, the Agent, the Trustee
and the relevant Dealer(s); or

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

 2
 

 

and includes, where applicable, the Talon(s) appertaining
thereto and any replacements for Coupons and Talons issued pursuant to
Condition 10;

Dealers means ABN AMRO Bank N.V., BNP Paribas, Barclays Bank PLC, Calyon, Citigroup
Global Markets Limited, Countrywide Securities Corporation, Deutsche Bank AG,
London Branch, Goldman Sachs International, HSBC Bank plc, J.P. Morgan
Securities Ltd., Lehman Brothers International (Europe), Mizuho International
plc, Morgan Stanley & Co. International Limited, Société Générale, UBS
Limited and WestLB AG, London Branch and any other entity which the Issuer may
appoint as a Dealer and notice of whose appointment has been given to the Agent
and the Trustee by the Issuer in accordance with the provisions of the
Programme Agreement but excluding any entity whose appointment has been
terminated in accordance with the provisions of the Programme Agreement and
notice of which termination has been given to the Agent and the Trustee by the
Issuer in accordance with the provisions of the Programme Agreement and
references to a relevant Dealer or relevant Dealer(s) mean, in relation to any Tranche or
Series of Notes, the Dealer or Dealers with whom the Issuer has agreed the
issue of the Notes of such Tranche or Series and Dealer
means any one of them;

Definitive Note means a Note in definitive form issued or, as the case may require, to
be issued by the Issuer in accordance with the provisions of the Programme
Agreement or any other agreement between the Issuer and the relevant Dealer(s),
the Agency Agreement and these presents in exchange for either a Temporary
Global Note or part thereof or a Permanent Global Note (all as indicated in the
applicable Final Terms), such Note in definitive form being in the form or
substantially in the form set out in Part 3 of Schedule 2 hereto with such
modifications (if any) as may be agreed between the Issuer, the Agent, the
Trustee and the relevant Dealer(s) and having the Conditions endorsed thereon
or, if permitted by the relevant Stock Exchange, incorporating the Conditions
by reference (where applicable to this Trust Deed) as indicated in the
applicable Final Terms and having the relevant information supplementing,
replacing or modifying the Conditions appearing in the applicable Final Terms
endorsed thereon or attached thereto and (except in the case of a Zero Coupon
Note in bearer form) having Coupons and, where appropriate, Receipts and/or
Talons attached thereto on issue;

Dual Currency Note means a Note in respect of which payments of principal and/or interest
are made or to be made in such different currencies, and at rates of exchange
calculated upon such basis or bases, as the Issuer and the relevant Dealer(s)
may agree (as indicated in the applicable Final Terms);

Early Redemption Amount has the meaning ascribed thereto in Condition 6(e);

Euroclear means Euroclear Bank S.A./N.V.;

Eurosystem-eligible NGN means an NGN which is intended to be held in a manner which would allow
Eurosystem eligibility, as stated in the applicable Final Terms;

Event of Default means any of the conditions, events or acts provided in
Condition 9 to be Events of Default (being events upon the happening of
which the Notes of any Series would, subject only to notice by the Trustee as
therein provided, become immediately due and repayable);

Extraordinary Resolution has the meaning ascribed thereto in paragraph 20 of Schedule 3
hereto;

Final Terms has the meaning set out in the Programme Agreement;

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

 3
 

 

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

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

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

Index Linked Note means an Indexed Interest Note and/or an Indexed Redemption Amount
Note, as applicable;

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

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

Interest Payment Date means, in relation to any Floating Rate Note or Indexed Interest Note,
either:

(i)                                     the date which falls the number of months or other period specified as
the Specified Period in the applicable
Final Terms after the preceding Interest Payment Date or the Interest
Commencement Date (in the case of the first Interest Payment Date); or

(ii)                                  such date or dates as are indicated in the applicable Final Terms;

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

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

Liability means any loss, damage, cost, charge, claim, demand, expense, judgment,
action, proceeding or other liability whatsoever (including, without
limitation, in respect of taxes, duties, levies, imposts and other charges) and
including any value added tax or similar tax charged or chargeable in respect
thereof and legal fees and expenses provided that such legal fees and expenses
shall have been properly incurred;

London Business Day has the meaning set out in Condition 4(b)(v);

Maturity Date means the date on which a Note is expressed to be redeemable;

month means calendar month;

NGN or New Global Note means a Global
Note where the applicable Final Terms specify the Notes as being in NGN form
and accordingly it is intended that such Note, upon issue, will be deposited
with the Common Safekeeper;

 4
 

 

Non-eligible NGN means an NGN which
is not intended to be held in a manner which would allow Eurosystem
eligibility, as stated in the applicable Final Terms;

Note means a note issued pursuant to the Programme and denominated in such
currency or currencies as may be agreed between the Issuer and the relevant
Dealer(s) which:

(i)                                    has such maturity as may be agreed between the Issuer and the relevant Dealer(s),
subject to such minimum or maximum maturity as may be allowed or required from
time to time by the relevant central bank (or equivalent body) or any laws or
regulations applicable to the Issuer or the relevant currency; and

(ii)                                 has such denomination as may be agreed between the Issuer and the
relevant Dealer(s), subject to such minimum denomination as may be allowed or
required from time to time by the relevant central bank (or equivalent body) or
any laws or regulations applicable to the relevant currency,

issued or to be issued by the Issuer pursuant to the
Programme Agreement or any other agreement between the Issuer and the relevant
Dealer(s), the Agency Agreement and these presents and which shall initially be
represented by, and comprised in, either a Temporary Global Note which may (in
accordance with the terms of such Temporary Global Note) be exchanged for
Definitive Notes or a Permanent Global Note, which Permanent Global Note may
(in accordance with the terms of such Permanent Global Note) in turn be
exchanged for Definitive Notes and includes any replacements for a Note issued
pursuant to Condition 10;

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

notice means, in respect of a notice to be given to Noteholders, a notice
validly given pursuant to Condition 13;

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

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

(b)                                 those Notes in respect of which the date
for redemption in accordance with the Conditions has occurred and the
redemption moneys (including all interest payable thereon) have been duly paid
to the Trustee or to the Agent in the manner provided in the Agency Agreement
(and where appropriate notice to that effect has been given to the relative
Noteholders in

 5

 

                accordance
with Condition 13) and remain available for payment against presentation
of the relevant Notes and/or Receipts and/or Coupons;

(c)           those Notes which have been purchased and cancelled in accordance with
Conditions 6(h) and 6(i);

(d)           those Notes which have become void under Condition 8;

(e)           those mutilated or defaced Notes which have been surrendered and
cancelled and in respect of which replacements have been issued pursuant to
Condition 10;

(f)            (for the purpose only of ascertaining the nominal amount of the Notes
outstanding and without prejudice to the status for any other purpose of the
relevant Notes) those Notes which are alleged to have been lost, stolen or
destroyed and in respect of which replacements have been issued pursuant to
Condition 10; and

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

PROVIDED THAT for each of
the following purposes, namely:

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

(ii)           the determination of how many and which Notes of any Series are for the
time being outstanding for the purposes of Clause 9(A), Conditions 9
and 14 and paragraphs 2, 5, 6 and 9 of Schedule 3;

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

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

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

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

Permanent Global Note means a global note in the form or substantially in the form set out in
Part 2 of Schedule 2 hereto with such modifications (if any) as may be agreed
between the Issuer, the Agent, the Trustee and the relevant Dealer(s), together
with the copy of the applicable Final Terms annexed thereto, comprising some or
all of the Notes of the same Series, issued by the Issuer pursuant to the
Programme Agreement or any other agreement between the Issuer and the relevant
Dealer(s), the Agency Agreement and these presents;

Potential Event of Default means any condition, event or act which, with the lapse of time and/or
the issue, making or giving of any notice, certification, declaration, demand,
determination and/or

 6
 

 

 

request and/or the taking of any similar action and/or
the fulfilment of any similar condition, would constitute an Event of Default;

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

Programme Agreement means the agreement of even date herewith between the Issuer, the
Guarantor and the Dealers named therein concerning the purchase of Notes to be
issued pursuant to the Programme together with any agreement for the time being
in force amending, replacing, novating or modifying such agreement;

Prospectus Directive
means Directive 2003/71/EC;

Receipt means a receipt attached on issue to a Definitive Note redeemable in
instalments for the payment of an instalment of principal, such receipt being
in the form or substantially in the form set out in Part 4 of Schedule 2 hereto
or in such other form as may be agreed between the Issuer, the Agent, the
Trustee and the relevant Dealer(s) and includes any replacements for Receipts
issued pursuant to Condition 10;

Receiptholders means the several persons who are for the time being holders of the
Receipts;

Reference Banks means the several banks initially appointed as reference banks in
relation to the Notes of any relevant Series and/or, if applicable, any
Successor reference banks in relation to such Notes;

Relevant Date has the meaning set out in Condition 7;

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

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

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

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

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

 7
 

 

 

and specified in the Conditions and/or the Agency
Agreement, as the case may be) notice of whose appointment or, as the case may
be, nomination has been given to the Noteholders;

Talonholders means the several persons who are for the time being holders of the
Talons;

Talons means the talons (if any) appertaining to, and exchangeable in accordance
with the provisions therein contained for further Coupons appertaining to, the
Definitive Notes (other than the Zero Coupon Notes), such talons being in the
form or substantially in the form set out in Part 6 of Schedule 2 hereto or in
such other form as may be agreed between the Issuer, the Agent, the Trustee and
the relevant Dealer(s) and includes any replacements for Talons issued pursuant
to Condition 10;

Temporary Global Note means a temporary global note in the form or substantially in the form
set out in Part 1 of Schedule 2 hereto with such modifications (if any) as may
be agreed between the Issuer, the Agent, the Trustee and the relevant
Dealer(s), together with the copy of the applicable Final Terms annexed
thereto, comprising some or all of the Notes of the same Series, issued by the
Issuer pursuant to the Programme Agreement or any other agreement between the
Issuer and the relevant Dealer(s), the Agency Agreement and these presents;

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

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

Trustee Acts means the Trustee Act 1925 and the Trustee Act 2000;

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

Zero Coupon Note means a Note on which no interest is payable;

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

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

words denoting persons only shall include firms and
corporations and vice versa.

(B)           (i)            All references in these presents to principal and/or principal amount
and/or interest in respect of the Notes or to any moneys payable by the Issuer
and/or the Guarantor under these presents shall, unless the context otherwise
requires, be construed in accordance with Condition 5(d).

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

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

(iv)          All references in these presents to any action, remedy or method of
proceeding for the enforcement of the rights of creditors shall be deemed to
include, in respect of any

 8
 

 

 

jurisdiction other than England, references to
such action, remedy or method of proceeding for the enforcement of the rights
of creditors available or appropriate in such jurisdiction as shall most nearly
approximate to such action, remedy or method of proceeding described or
referred to in these presents.

(v)           All references in these presents to Euroclear and/or Clearstream,
Luxembourg shall, whenever the context so permits (but not in the case of any
NGN), be deemed to include references to any additional or alternative clearing
system as is approved by the Issuer, the Agent and the Trustee.

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

(vii)         In this Trust Deed references to Schedules, Clauses, subclauses,
paragraphs and subparagraphs shall be construed as references to the Schedules
to this Trust Deed and to the Clauses, subclauses, paragraphs and subparagraphs
of this Trust Deed respectively.

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

(ix)           Any references herein to the records of Euroclear and Clearstream,
Luxembourg shall be to the records that each of Euroclear and Clearstream,
Luxembourg holds for its customers which reflect the amount of such customers’
interest in the Notes.

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

(D)          All references in these presents to the relevant
currency shall be construed as references to the currency in which
payments in respect of the Notes and/or Receipts and/or Coupons of the relevant
Series are to be made as indicated in the applicable Final Terms.

(E)           All references in these presents to Notes being “listed”
or having a “listing” on a Stock Exchange
shall, in relation to any Notes which are to have a listing
or be listed (i) on the London Stock Exchange
plc, be construed to mean that such Notes have been admitted to the Official
List by the UK Listing Authority and to trading on the London Stock Exchange’s
Gilt Edged and Fixed Interest Market and (ii) on any other European Economic
Area Stock Exchange, listing and listed shall be constituted to mean that the Notes have been
admitted to trading on a market within that jurisdiction which is a regulated
market for the purposes of the Investment Services Directive (Directive 93/22/EEC).

(F)           All references in these presents to a Directive include any relevant
implementing measure of each Member State of the European Economic Area which
has implemented such Directive and all references to the Prospectus Directive
shall include Commission Regulation (EC) No.809/2004 implementing the
Prospectus Directive.

 9
 

 

 

2.             AMOUNT
AND ISSUE OF THE NOTES

(A)          Amount of the Notes, Final Terms and Legal Opinions:

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

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

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

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

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

(i)            every payment of principal or interest or other sum due in respect of
the Notes made to or to the order of the Agent in the manner provided in the
Agency Agreement shall be in satisfaction pro tanto of
the relative covenant by the Issuer in this Clause contained in relation to the
Notes of such Series, except to the extent that there is a default in the
subsequent payment thereof in accordance with the Conditions to the relevant
Noteholders, Receiptholders or Couponholders (as the case may be);

(ii)           in the case of any payment of principal made to the Trustee or the Agent
after the due date or on or after accelerated maturity following an Event of
Default, interest shall (subject, where applicable, as provided in the
Conditions) continue to accrue on the nominal amount of the relevant Notes
(except in the case of Zero Coupon Notes to which the provisions of
Condition 6(j) shall apply) (both before and after any judgment or other
order of a court of competent jurisdiction) at the rates aforesaid (or, if
higher, the rate of interest on judgment debts for the time being provided by
English law) up to and including the date which the

 10
 

 

 

Trustee determines to be
the date on and after which payment is to be made in respect thereof, as stated
in a notice given to the holders of such Notes (such date to be not later than
seven days after the day on which the whole of such principal amount, together
with an amount equal to the interest which has accrued and is to accrue
pursuant to this proviso up to and including that date, has been received by
the Trustee or the Agent); and

(iii)          in any case where payment of the whole or any part of the principal
amount of any Note is improperly withheld or refused upon due presentation
thereof (other than in circumstances contemplated by (ii) above) interest shall
accrue on the nominal amount of such Note (except in the case of Zero Coupon
Notes to which the provisions of Condition 6(j) shall apply) payment of
which has been so withheld or refused (both before and after any judgment or
other order of a court of competent jurisdiction) at the rates aforesaid (or,
if higher, the rate of interest on judgment debts for the time being provided
by English law) from the date of such withholding or refusal until the date on
which, upon further presentation of the relevant Note, payment of the full
amount (including interest as aforesaid) in the relevant currency payable in
respect of such Note is made or (if earlier) the seventh day after notice is
given to the relevant Noteholder(s) (whether individually or in accordance with
Condition 13) that the full amount (including interest as aforesaid) in
the relevant currency in respect of such Note is available for payment,
provided that, upon further presentation thereof being duly made, such payment
is made.

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

(C)           Trustee’s requirements regarding Paying Agents:

At any time after an Event of Default or a Potential
Event of Default shall have occurred or the Notes of all or any Series shall
otherwise have become due and repayable or the Trustee shall have received any
money which it proposes to pay under Clause 10 to the relevant
Noteholders, Receiptholders and/or Couponholders, the Trustee may:

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

(a)           to act thereafter as Agent and other Paying Agents respectively of the
Trustee in relation to payments to be made by or on behalf of the Trustee under
the terms of these presents mutatis mutandis
on the terms provided in the Agency Agreement (save that the Trustee’s
liability under any provisions thereof for the indemnification, remuneration
and payment of out-of-pocket expenses of the Agent and the other Paying Agents
shall be limited to the amounts for the time being held by the Trustee on the
trusts of these presents relating to the Notes of the relevant Series and
available for such purpose) and thereafter to hold all Notes, Receipts and
Coupons and all sums, documents and records held by them in respect of Notes,
Receipts and Coupons on behalf of the Trustee; or

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

(ii)           by notice in writing to the Issuer and the Guarantor require them to
make all subsequent payments in respect of the Notes, Receipts and Coupons to
or to the order of the Trustee and not to the Agent and with effect from the
issue of any such notice to the Issuer and the

 11
 

 

 

Guarantor and until such
notice is withdrawn proviso (i) to subclause (B) of this Clause
relating to the Notes shall cease to have effect.

(D)          If the Floating Rate Notes or Indexed Interest Notes of any Series
become immediately due and repayable under Condition 9, the rate and/or
amount of interest payable in respect of them will be calculated at the same
intervals as if such Notes had not become due and repayable, the first of which
will commence on the expiry of the Interest Period during which the Notes of
the relevant Series become so due and repayable mutatis
mutandis in accordance with the provisions of Condition 4(b)
except that the rates of interest need not be published.

(E)           Currency of payments:

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

(F)           Further Notes:

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

(G)           Separate Series:

The Notes of each Series shall form a separate Series
of Notes and accordingly, unless for any purpose the Trustee in its absolute
discretion shall otherwise determine, the provisions of this Clause and of
Clauses 3 to 21 (both inclusive), 22(B) and Schedule 3 shall apply mutatis mutandis separately and independently to the Notes
of each Series and in such Clauses and Schedule the expressions Notes, Noteholders, Receipts, Receiptholders,
Coupons, Couponholders,
Talons and Talonholders
shall be construed accordingly.

3.             FORMS OF THE NOTES

(A)          Global Notes:

(i)            The Notes of each Tranche will initially be represented by a Temporary
Global Note which shall be exchangeable for either Definitive Notes together
with, where applicable, Receipts and (except in the case of Zero Coupon Notes)
Coupons and, where applicable, Talons attached or a Permanent Global Note, in
each case in accordance with the provisions of such Temporary Global Note.  Each Permanent Global Note shall be
exchangeable for Definitive Notes together with, where applicable, Receipts and
(except in the case of Zero Coupon Notes) Coupons and, where applicable, Talons
attached, in accordance with the provisions of such Permanent Global Note.

All Global Notes shall be prepared, completed and
delivered to a Common Depositary (in the case of a CGN) or Common Safekeeper
(in the case of an NGN) for Euroclear and Clearstream, Luxembourg in accordance
with the provisions of the Programme Agreement or to another appropriate
depositary in accordance with any other agreement between the Issuer and the
relevant Dealer(s) and, in each case, the Agency Agreement and these presents.

 12
 

 

 

(ii)           Each Temporary Global Note shall be printed or typed in the form or substantially
in the form set out in Part 1 of Schedule 2 and may be a facsimile.  Each Temporary Global Note shall have annexed
thereto a copy of the applicable Final Terms and shall be signed manually or in
facsimile by two persons duly authorised by the Issuer on behalf of the Issuer,
shall be authenticated by or on behalf of the Agent and shall, in the case of a
Eurosystem-eligible NGN or in the case of a Non-eligible NGN in respect of
which the Issuer has notified the Agent that effectuation is to be applicable,
be effectuated by the Common Safekeeper acting on the instructions of the
Agent.  Each Temporary Global Note so
executed and authenticated shall be a binding and valid obligation of the
Issuer and title thereto shall pass by delivery.

(iii)          Each Permanent Global Note shall be printed or typed in the form or
substantially in the form set out in Part 2 of Schedule 2 and may be a
facsimile.  Each Permanent Global Note
shall have annexed thereto a copy of the applicable Final Terms and shall be
signed manually or in facsimile by two persons duly authorised by the Issuer on
behalf of the Issuer, shall be authenticated by or on behalf of the Agent and
shall, in the case of a Eurosystem-eligible NGN or in the case of a
Non-eligible NGN in respect of which the Issuer has notified the Agent that
effectuation is to be applicable, be effectuated by the Common Safekeeper
acting on the instructions of the Agent. 
Each Permanent Global Note so executed and authenticated shall be a
binding and valid obligation of the Issuer and title thereto shall pass by
delivery.

(B)           Definitive Notes:

(i)            The Definitive Notes, the Receipts, the Coupons and the Talons shall be
to bearer in the respective forms or substantially in the respective forms set
out in Parts 3, 4, 5 and 6, respectively, of Schedule 2.  The Definitive Notes, the Receipts, the
Coupons and the Talons shall be serially numbered and, if listed or quoted,
shall be security printed in accordance with the requirements (if any) from
time to time of the relevant Stock Exchange and the relevant Conditions shall
be incorporated by reference (where applicable to these presents) into such
Definitive Notes if permitted by the relevant Stock Exchange (if any), or, if
not so permitted, the Definitive Notes shall be endorsed with or have attached
thereto the relevant Conditions, and, in either such case, the Definitive Notes
shall have endorsed thereon or attached thereto a copy of the applicable Final
Terms (or the relevant provisions thereof). 
Title to the Definitive Notes, the Receipts, the Coupons and the Talons
shall pass by delivery.

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

(C)           Facsimile
Signatures:

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

(D)          Persons to be treated as Noteholders:

 13
 

 

 

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

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

(b)           each person for the time being shown in the records of Euroclear or
Clearstream, Luxembourg or (except in the case of an NGN) such other additional
or alternative clearing system approved by the Issuer, the Agent and the
Trustee, as having a particular nominal amount of Notes credited to his
securities account,

as the absolute owner thereof free from all
encumbrances and shall not be required to obtain proof of such ownership or as
to the identity of the bearer of any Global Note, Definitive Note, Receipt,
Coupon or Talon.

4.             FEES,
DUTIES AND TAXES

The Issuer will pay any stamp, issue, registration,
documentary and other fees, duties and taxes, including interest and penalties,
payable on or in connection with (i) the execution and delivery of these
presents (ii) the constitution and original issue of the Notes, the Receipts
and the Coupons and (iii) any action taken by or on behalf of the Trustee or
(where permitted under these presents so to do) any Noteholder, Receiptholder
or Couponholder to enforce, or to resolve any doubt concerning, or for any
other purpose in relation to, these presents.

5.             COVENANT
OF COMPLIANCE

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

6.             CANCELLATION
OF NOTES AND RECORDS

(A)          The Issuer shall use all reasonable endeavours to procure that all Notes
(i) redeemed or (ii) purchased for cancellation by or on behalf of the
Issuer, the Guarantor or any other Subsidiary of the Issuer or
(iii) which, being mutilated or defaced, have been surrendered and
replaced pursuant to Condition 10 (together in each case, in the case of
Definitive Notes, with all unmatured Receipts and Coupons attached thereto or
delivered therewith) and, in the case of Definitive Notes all relative Receipts
and Coupons paid in accordance with the relevant Conditions or which, being
mutilated or defaced, have been surrendered and replaced pursuant to
Condition 10 shall forthwith be cancelled by or on behalf of the Issuer
and a certificate stating:

 14
 

 

 

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

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

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

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

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

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

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

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

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

(B)           The Issuer shall use all reasonable endeavours to procure (i) that
the Agent shall keep a full and complete record of all Notes, Receipts, Coupons
and Talons issued by it (other than serial numbers of Receipts and Coupons) and
of their redemption, purchase by or on behalf of the Issuer, the Guarantor or
any other Subsidiary of the Issuer and of all replacement notes, receipts,
coupons or talons issued in substitution for lost, stolen, mutilated, defaced
or destroyed Notes, Receipts, Coupons or Talons and (ii) that such records
shall be made available to the Trustee at all reasonable times.

7.             GUARANTEE

(A)          The Guarantor hereby irrevocably and unconditionally guarantees to the
Trustee the due and punctual payment in accordance with these presents of the
principal of and interest on the Notes and of all other amounts payable by the
Issuer under these presents.

(B)           If the Issuer fails,
for any reason whatsoever, punctually to pay any such principal, interest or
other amount, the Guarantor shall cause each and every such payment to be made
as if the Guarantor instead of the Issuer were expressed to be the primary
obligor of the relevant Note, Receipt or Coupon and not merely as surety (but
without affecting the Issuer’s obligations) to the intent that the

 15

  

holder thereof shall receive the same amounts
in respect of principal, interest or such other amount as would have been
receivable had such payments been made by the Issuer.

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

(D)          The Guarantor hereby agrees that its obligations hereunder shall be
unconditional and that the Guarantor shall be fully liable irrespective of the
validity, regularity, legality or enforceability against the Issuer of, or of
any defence or counter-claim whatsoever available to the Issuer in relation to,
its obligations under these presents, whether or not any action has been taken
to enforce the same or any judgment obtained against the Issuer, whether or not
any of the other provisions of these presents have been modified, whether or
not any time, indulgence, waiver, authorisation or consent has been granted to
the Issuer by or on behalf of the Noteholders or the Receiptholders or
Couponholders or the Trustee, whether or not any determination has been made by
the Trustee pursuant to Clause 19(A), whether or not there have been any
dealings or transactions between the Issuer, any of the Noteholders,
Receiptholders or Couponholders or the Trustee, whether or not the Issuer has
been dissolved, liquidated, merged, consolidated, bankrupted or has changed its
status, functions, control or ownership, whether or not the Issuer has been
prevented from making payment by foreign exchange provisions applicable at its
place of registration or incorporation and whether or not any other
circumstances have occurred which might otherwise constitute a legal or
equitable discharge of or defence to a guarantor.  Accordingly, the validity of this guarantee
shall not be affected by reason of any invalidity, irregularity, illegality or
unenforceability of all or any of the obligations of the Issuer under these
presents and this guarantee shall not be discharged nor shall the liability of
the Guarantor under these presents be affected by any act, thing or omission or
means whatever whereby its liability would not have been discharged if it had
been the principal debtor.

(E)           Without prejudice to the provisions of Clause 9(A), the Trustee may
determine from time to time whether or not it will enforce this guarantee which
it may do without making any demand of or taking any proceedings against the
Issuer (as appropriate) and may from time to time make any arrangement or
compromise with the Guarantor in relation to this guarantee which the Trustee
may consider expedient in the interests of the Noteholders, Receiptholders or
Couponholders.

(F)           The Guarantor hereby waives diligence, presentment, demand of payment,
filing of claims with a court in the event of dissolution, liquidation, merger
or bankruptcy of the Issuer, any right to require a proceeding first against
the Issuer, protest or notice with respect to the Notes, Receipts or Coupons or
the indebtedness evidenced thereby and all demands whatsoever and hereby
covenants that this guarantee shall be a continuing guarantee, shall extend to
the ultimate balance of all sums payable by the Issuer under these presents in
relation to the Notes, Receipts and Coupons, shall not be discharged except by
complete performance of the obligations contained in these presents in relation
to the Notes, Receipts and Coupons and is additional to, and not instead of,
any security or other guarantee or indemnity at any time existing in favour of
any person, whether from the Guarantor or otherwise.

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

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

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

(including in either case claiming the benefit of any
security or right of set-off or, on the liquidation of the Issuer, proving in
competition with the Trustee).  If,
notwithstanding the foregoing, upon the bankruptcy, insolvency or liquidation
of the Issuer any payment or distribution of assets of the Issuer of any kind
or character, whether in cash, property or securities, shall be received by the
Guarantor before payment in full of all principal of, and interest on, the
Notes, Receipts and Coupons shall have been made to the Noteholders, Receiptholders
and Couponholders, such payment or distribution shall be received by the
Guarantor on trust to pay the same over immediately to the Trustee for
application in or towards the payment of all sums due and unpaid under these
presents in accordance with Clause 10 on the basis that Clause 10 does not
apply separately and independently to each Series of the Notes.

(H)          The obligations of the Guarantor under these presents constitute direct,
unconditional, unsubordinated and unsecured obligations of the Guarantor and
(save for certain obligations required to be preferred by law) rank and will
rank pari passu with all other unsecured
obligations (other than subordinated obligations, if any) of the Guarantor,
from time to time outstanding.

8.             NON-PAYMENT

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

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

9.             PROCEEDINGS,
ACTION AND INDEMNIFICATION

(A)          The Trustee shall not be bound to take any proceedings mentioned in
Condition 9 or any other action in relation to these presents unless
respectively directed or requested to do so (i) by an Extraordinary
Resolution or (ii) in writing by the holders of at least one-quarter in
nominal amount of the Notes then outstanding and in either case then only if it
shall be indemnified and/or secured to its satisfaction against all Liabilities
to which it may thereby render itself liable or which it may incur by so doing.

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

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10.          APPLICATION OF MONEYS

All moneys received by the Trustee under these
presents from the Issuer or, as the case may be, the Guarantor (including any
moneys which represent principal or interest in respect of Notes, Receipts or
Coupons which have become void under Condition 8) shall, unless and to the
extent attributable, in the opinion of the Trustee, to a particular Series of
the Notes, be apportioned pari passu and
rateably between each Series of the Notes, and all moneys received by the
Trustee under these presents from the Issuer or, as the case may be, the
Guarantor to the extent attributable in the opinion of the Trustee to a
particular Series of the Notes or which are apportioned to such Series as
aforesaid, be held by the Trustee upon trust to apply them (subject to
Clause 12):

FIRST in payment or satisfaction of all amounts then
due and unpaid under Clauses 15 and/or 16(J) to the Trustee and/or any
Appointee;

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

THIRDLY in or towards payment pari passu
and rateably of all principal and interest then due and unpaid in respect of
the Notes of each other Series; and

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

Without prejudice to this Clause 10, if the Trustee
holds any moneys which represent principal or interest in respect of Notes
which have become void or in respect of which claims have been prescribed under
Condition 8, the Trustee will hold such moneys on the above trusts.

11.          NOTICE OF PAYMENTS

The Trustee shall give notice to the relevant
Noteholders in accordance with Condition 13 of the day fixed for any
payment to them under Clause 10. 
Such payment may be made in accordance with Condition 5 and any
payment so made shall be a good discharge to the Trustee.

12.          INVESTMENT BY TRUSTEE

(A)          The Trustee may at its discretion and pending payment invest moneys at
any time available for the payment of principal and interest on the Notes in
some or one of the investments hereinafter authorised for such periods as it
may consider expedient with power from time to time at the like discretion to
vary such investments and to accumulate such investments and the resulting
interest and other income derived therefrom. 
The accumulated investments shall be applied under Clause 10.  All interest and other income deriving from
such investments shall be applied first in payment or satisfaction of all
amounts then due and unpaid under Clause 15 to the Trustee and/or any Appointee
and otherwise held for the benefit of and paid to the Noteholders or the
holders of the related Coupons, as the case may be.

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

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investments or convert any moneys so deposited
into any other currency and shall not be responsible for any loss resulting
from any such investments or deposits, whether due to depreciation in value,
fluctuations in exchange rates or otherwise.

13.          PARTIAL PAYMENTS

Upon any payment under Clause 10 (other than
payment in full against surrender of a Note, Receipt or Coupon) the Note,
Receipt or Coupon in respect of which such payment is made shall be produced to
the Trustee or the Paying Agent by or through whom such payment is made and
(except in the case of an NGN) the Trustee shall or shall cause such Paying
Agent to enface thereon a memorandum of the amount and the date of payment but
the Trustee may, in any particular case, dispense with such production and
enfacement upon such indemnity being given as it shall think sufficient.

14.          COVENANTS
BY THE ISSUER AND THE GUARANTOR

(A)          The Issuer covenants with the Trustee that, so long as any of the Notes
remains outstanding (or, in the case of paragraphs (viii), (ix), (xiii),
(xiv), (xvi) and (xviii), so long as any such Notes or the relative Receipts or
Coupons remains liable to prescription or, in the case of subparagraph (xv),
until the expiry of a period of 30 days after the Relevant Date) it shall:

(i)            at all times carry on and conduct its affairs and procure its
Subsidiaries to carry on and conduct their respective affairs in a proper and
efficient manner;

(ii)           give or procure to be given to the Trustee such opinions, certificates
and information as it shall require and in such form as it shall require
(including without limitation the procurement of all such certificates called
for by the Trustee pursuant to Clauses 16(C) and 16(U)) for the purpose of
the discharge or exercise of the duties, trusts, powers, authorities and
discretions vested in it under these presents or by operation of law;

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

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

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

(vi)          forthwith give notice in writing to the Trustee of the occurrence of any
Event of Default or Potential Event of Default;

(vii)         give to the Trustee (a) within seven days after demand by the
Trustee therefor and (b) (without the necessity for any such demand)
promptly after the publication of its audited accounts in respect of each
financial year commencing with the financial year ending
28 February 2007 and in any event not later than 180 days after
the end of each such financial year, a certificate signed by two of its
Directors, to the effect that as at a date not

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more than seven days before delivering such
certificate (the relevant certification date) there
did not exist and had not existed since the relevant certification date of the
previous certificate (or in the case of the first such certificate the date
hereof) any Event of Default or any Potential Event of Default (or if such
exists or existed, specifying the same) and that during the period from and
including the relevant certification date of the last such certificate (or in
the case of the first such certificate the date hereof) to and including the
relevant certification date of such certificate the Issuer has complied with all
its obligations contained in these presents or (if such is not the case)
specifying the respects in which it has not complied;

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

(ix)           at all times maintain an Agent, other Paying Agents, a Calculation Agent
and Reference Banks in accordance with the Conditions;

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

(xi)           in the event of the unconditional payment to the Agent or the Trustee of
any sum due in respect of the Notes or any of them or any of the relative
Receipts or Coupons being made after the due date for payment thereof forthwith
give or procure to be given notice to the relevant Noteholders in accordance
with Condition 13 that such payment has been made;

(xii)          use all reasonable endeavours to maintain the quotation or listing on
the relevant Stock Exchange of those of the Notes which are quoted or listed on
the relevant Stock Exchange or, if it is unable to do so having used all such
reasonable endeavours, use all reasonable endeavours to obtain and maintain a
quotation or listing of such Notes issued by it on such other stock exchange or
exchanges or securities market or markets as the Issuer may (with the prior
written approval of the Trustee) decide and shall also upon obtaining a
quotation or listing of such Notes issued by it on such other stock exchange or
exchanges or securities market or markets enter into a trust deed supplemental
to this Trust Deed to effect such consequential amendments to these presents as
the Trustee may require or as shall be requisite to comply with the
requirements of any such stock exchange or securities market provided that the Issuer shall not be obliged to maintain
any listing of the Notes on a regulated market in the European Economic Area in
circumstances where:

(a)           a listing or admission to trading of such Notes on such regulated market
in the European Economic Area would require the Issuer (1) to prepare financial
statements in accordance with auditing standards other than U.S. GAAP or (2) to
provide additional information and/or a report from its auditors as a result of
differences between U.S. GAAP and International Financial Reporting Standards;
or

(b)           the EU Financial Services Action Plan is implemented in a manner that,
in the reasonable opinion of the Issuer, is unduly burdensome (as certified by
the Issuer to the Trustee in a certificate signed by two Directors of the
Issuer),

in which event the Issuer may, but shall not be
obliged to, seek an alternative listing for any such Notes on or by such Stock
Exchange as may be agreed between the Issuer and the Trustee;

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(xiii)         give notice to the Noteholders in accordance with Condition 13 of
any appointment, resignation or removal of any Agent, Calculation Agent,
Reference Bank or other Paying Agent (other than the appointment of the initial
Agent, Calculation Agent, Reference Banks and other Paying Agents) after having
obtained the prior written approval of the Trustee thereto or any change of any
Paying Agent’s or Reference Bank’s specified office and (except as provided by
the Agency Agreement or the Conditions) at least 30 days prior to such
event taking effect; PROVIDED ALWAYS THAT so long as any of the Notes, Receipts
or Coupons remains liable to prescription in the case of the termination of the
appointment of the Agent or the Calculation Agent no such termination shall
take effect until a new Agent or Calculation Agent (as the case may be) has
been appointed on terms previously approved in writing by the Trustee;

(xiv)        obtain
the prior written approval of the Trustee to, and promptly give to the Trustee
two copies of, the form of every notice given to the holders of any Notes
issued by it in accordance with Condition 13 (such approval, unless so
expressed, not to constitute approval for the purposes of Section 21 of
the Financial Services and Markets Act 2000 (the FSMA)
of a communication within the meaning of Section 21 of the FSMA);

(xv)         if payments of principal or interest in respect of the Notes or relative
Receipts or Coupons by the Issuer shall become subject generally to the taxing
jurisdiction of any territory or any political sub-division or any authority
therein or thereof having power to tax other than or in addition to the United
States of America or any political sub-division or any authority therein or
thereof having power to tax, immediately upon becoming aware thereof, notify
the Trustee in writing of such event and (unless the Trustee otherwise agrees)
enter forthwith into a trust deed supplemental to this Trust Deed, giving to
the Trustee an undertaking or covenant in form and manner satisfactory to the
Trustee in terms corresponding to the terms of Condition 7 with the
substitution for (or, as the case may be, the addition to) the references
therein to the United States of America or any political sub-division thereof
or any authority therein or thereof having power to tax or references to that
other or additional territory or any political sub-division thereof or any
authority therein or thereof having power to tax to whose taxing jurisdiction
such payments shall have become subject as aforesaid such trust deed also
(where applicable) to modify Condition 6(b) so that such Condition shall
make reference to the other or additional territory, any political sub-division
thereof and any authority therein or thereof having power to tax;

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

(xvii)       in
order to enable the Trustee to ascertain the nominal amount of the Notes of
each Series for the time being outstanding for any of the purposes referred to
in the proviso to the definition of outstanding in
Clause 1, deliver to the Trustee as soon as practicable upon being so
requested in writing by the Trustee, a certificate in writing signed by two of
its Directors, setting out the total number and aggregate nominal amount of the
Notes of each Series issued which:

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

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

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(xviii)      procure
its Subsidiaries to comply with all applicable provisions of
Condition 6(h);

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

(xx)          if,
in accordance with the provisions of the Conditions, interest in respect of the
Notes becomes payable at the specified office of any Paying Agent in the United
States of America promptly give notice thereof to the relative Noteholders in
accordance with Condition 13;

(xxi)         use
all reasonable endeavours to procure that Euroclear and/or Clearstream,
Luxembourg (as the case may be) issue(s) any record, certificate or other
document requested by the Trustee under Clause 16(U) as soon as
practicable after such request;

(xxii)        give
prior written notice to the Trustee of any proposed redemption pursuant to
Condition 6(b) or 6(c) and, if it shall have given notice to the
Noteholders of its intention to redeem any Notes pursuant to
Condition 6(c), duly proceed to draw (if appropriate) and redeem the
relevant Notes accordingly; and

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

(B)           The Guarantor covenants with the Trustee that, so long as any of the
Notes remains outstanding (or, in the case of paragraphs (viii) and (xvi),
so long as any of such Notes or the relative Receipts or Coupons remains liable
to prescription or, in the case of subparagraph (xv), until the expiry of a
period of 30 days after the Relevant Date) it shall:

(i)            at all times carry on and conduct its affairs and procure its
Subsidiaries to carry on and conduct their respective affairs in a proper and
efficient manner;

(ii)           give or procure to be given to the Trustee such opinions, certificates
and information as it shall require and in such form as it shall require
(including without limitation the procurement of all such certificates called
for by the Trustee pursuant to Clause 16(C)) for the purpose of the
discharge or exercise of the duties, trusts, powers, authorities and
discretions vested in it under these presents or by operation of law;

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

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

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

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(vi)          forthwith give notice in writing to the Trustee of the occurrence of any
Event of Default or Potential Event of Default;

(vii)         give to the Trustee (a) within seven days after demand by the
Trustee therefor and (b) (without the necessity for any such demand)
promptly after the publication of its audited accounts in respect of each
financial year commencing with the financial year ending
28 February 2006 and in any event not later than 180 days after
the end of each such financial year, a certificate signed by two of its
Directors, to the effect that as at a date not more than seven days before
delivering such certificate (the relevant certification
date) there did not exist and had not existed since the relevant
certification date of the previous certificate (or in the case of the first
such certificate the date hereof) any Event of Default or any Potential Event
of Default (or if such exists or existed, specifying the same) and that during
the period from and including the relevant certification date of the last such
certificate (or in the case of the first such certificate the date hereof) to
and including the relevant certification date of such certificate the Guarantor
has complied with all its obligations contained in these presents or (if such
is not the case) specifying the respects in which it has not complied;

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

(ix)           if payments of principal or interest in respect of the Notes or relative
Receipts or Coupons by the Guarantor shall become subject generally to the
taxing jurisdiction of any territory or any political sub-division or any
authority therein or thereof having power to tax, other than or in addition to
the United States of America or any political sub-division or any authority
therein or thereof having power to tax, immediately upon becoming aware
thereof, notify the Trustee in writing of such event and (unless the Trustee
otherwise agrees) enter forthwith into a trust deed supplemental to this Trust
Deed, giving to the Trustee an undertaking or covenant in form and manner
satisfactory to the Trustee in terms corresponding to the terms of Condition 7
with the substitution for (or, as the case may be, the addition to) the
references therein to the United States of America or any political
sub-division thereof or any authority therein or thereof having power to tax or
references to that other or additional territory or any political sub-division
thereof or any authority therein or thereof having power to tax to whose taxing
jurisdiction such payments shall have become subject as aforesaid such trust
deed also (where applicable) to modify Condition 6(b) so that such
Condition shall make reference to the other or additional territory, any
political sub-division thereof and any authority therein or thereof having
power to tax;

(x)            comply with and perform all its obligations under the Agency Agreement;

(xi)           in order to enable the Trustee to ascertain the nominal amount of the
Notes of each Series for the time being outstanding for any of the purposes
referred to in the proviso to the definition of outstanding
in Clause 1, deliver to the Trustee as soon as practicable upon being so
requested in writing by the Trustee, a certificate in writing signed by two of
its Directors, setting out the total number and aggregate nominal amount of the
Notes of each Series issued which:

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

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

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(xii)          procure its Subsidiaries to comply with all applicable provisions of
Condition 6(h).

15.          REMUNERATION
AND INDEMNIFICATION OF TRUSTEE

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

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

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

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

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

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

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

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

(F)           The Issuer hereby further undertakes to the Trustee that all monies
payable by the Issuer to the Trustee under this clause shall be made without
set-off, counterclaim, deduction or withholding unless required by law in which
event the Issuer will pay such additional amounts as will result in the receipt
by the Trustee of the amounts which would otherwise have been payable by the
Issuer to the Trustee under this clause in the absence of any such set-off,
counterclaim, deduction or withholding.

(G)           All amounts payable pursuant to subclause (E) above and/or
Clause 16(J) shall be payable by the Issuer on the date specified in a
demand by the Trustee and in the case of payments actually made by the Trustee
prior to such demand shall (if not paid within seven days after such demand and
the

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Trustee so requires) carry interest at the rate
of two per cent. per annum above the Base Rate from time to time of National
Westminster Bank Plc from the date specified in such demand, and in all other
cases shall (if not paid on the date specified in such demand or, if later,
within seven days after such demand and, in either case, the Trustee so
requires) carry interest at such rate from the date specified in such
demand.  All remuneration payable to the
Trustee shall carry interest at such rate from the due date therefor.

(H)          Unless otherwise specifically stated in any discharge of these presents
the provisions of this Clause and Clause 16(J) shall continue in full
force and effect notwithstanding such discharge.

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

16.          SUPPLEMENT
TO TRUSTEE ACTS

Section 1 of the Trustee Act 2000 shall not apply to
the duties of the Trustee in relation to the trusts constituted by these
presents.  Where there are any
inconsistencies between the Trustee Acts and the provisions of these presents,
the provisions of these presents shall, to the extent allowed by law, prevail
and, in the case of any such inconsistency with the Trustee Act 2000, the
provisions of these presents shall constitute a restriction or exclusion for
the purposes of that Act.  The Trustee shall
have all the powers conferred upon trustees by the Trustee Acts and by way of
supplement thereto it is expressly declared as follows:

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

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

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

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

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

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

(G)                                Save as expressly otherwise provided in these presents, the Trustee
shall have absolute and uncontrolled discretion as to the exercise or
non-exercise of its trusts, powers, authorities and discretions under these
presents (the exercise or non-exercise of which as between the Trustee and the
Noteholders, the Receiptholders and Couponholders shall be conclusive and
binding on the Noteholders, the Receiptholders and Couponholders) and shall not
be responsible for any Liability which may result from their exercise or
non-exercise and in particular the Trustee shall not be bound to act at the
request or direction of the Noteholders or otherwise under any provision of
these presents or to take at such request or direction or otherwise any other
action under any provision of these presents, without prejudice to the
generality of subclause 9(A), unless it shall first be indemnified or secured
to its satisfaction against all Liabilities to which it may render itself
liable or which it may incur by so doing.

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

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

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

(K)                               Any consent or approval given by the Trustee for the purposes of these
presents may be given on such terms and subject to such conditions (if any), as
the Trustee thinks fit and notwithstanding anything to the contrary in these
presents, may be given retrospectively. 
The Trustee may give any consent or approval, exercise any power,
authority or discretion or take any similar action (whether or not such
consent, approval, power, authority, discretion or action is specifically
referred to in these presents) if it is satisfied that the interests of the
Noteholders will not be materially prejudiced thereby.  For the avoidance of doubt, the Trustee shall
not have any duty to the Noteholders in relation to such matters other than
that which is contained in the preceding sentence.

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

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

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

(O)                               In connection with the exercise by it of any of its trusts, powers,
authorities or discretions under these presents (including, without limitation,
any modification, waiver, authorisation or determination), the Trustee shall
have regard to the general interests of the Noteholders as a class but shall not
have regard to any interests arising from circumstances particular to
individual Noteholders, Receiptholders or Couponholders (whatever their number)
and, in particular but without limitation, shall not have regard to the
consequences of such exercise for individual Noteholders,  Receiptholders or Couponholders (whatever
their number) resulting from their being, for any purpose, domiciled or
resident in, or otherwise connected with, or subject to the jurisdiction of,
any particular territory or any political sub-division thereof and the Trustee
shall not be entitled to require, nor shall any Noteholder, Receiptholder or
Couponholder be entitled to claim, from the Issuer, the Guarantor, the Trustee
or any other person any indemnification or payment in respect of any tax
consequence of any such exercise upon individual Noteholders, the
Receiptholders or Couponholders except to the extent already provided for in
Condition 7 and/or any undertaking given in addition thereto or in
substitution therefor under these presents.

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

(Q)                               The Trustee may whenever it thinks fit, subject to the consent of the
Issuer (such consent not to be unreasonably withheld) except following the
occurrence of an Event of Default or a Potential Event of Default or if the
Trustee has reasonable grounds to believe that an Event of Default or a
Potential Event of Default has occurred or is about to occur or if the Trustee
has been advised by its legal advisers that such delegation is necessary in
order to avoid a conflict of interest or a possible conflict of interest, in
each of which cases no such consent of the Issuer as aforesaid shall be
required, delegate by power of attorney or otherwise to any person or persons
or fluctuating body of persons (whether being a joint trustee of these presents
or not) all or any of its trusts, powers, authorities and discretions under
these presents.  Such delegation may be
made upon such terms (including power to sub-delegate)

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and subject to such conditions and regulations
as the Trustee may in the interests of the Noteholders think fit.  Provided that the Trustee shall have
exercised reasonable care in the selection of such delegate the Trustee shall
not be under any obligation to supervise the proceedings or acts of any such
delegate or sub-delegate or be in any way responsible for any Liability
incurred by reason of any misconduct or default on the part of any such
delegate or sub-delegate.  The Trustee
shall within a reasonable time after any such delegation or any renewal,
extension or termination thereof give notice thereof to the Issuer.

(R)                                The Trustee may, after consultation with the Issuer and the Guarantor,
unless, in the opinion of the Trustee, such consultation would be materially
prejudicial to the interests of the Noteholders in the conduct of the trusts of
these presents instead of acting personally employ and pay an agent (whether
being a lawyer or other professional person) to transact or conduct, or concur
in transacting or conducting, any business and to do, or concur in doing, all
acts required to be done in connection with these presents (including the
receipt and payment of money).  Provided
that the Trustee shall have exercised reasonable care in the selection of such
agent the Trustee shall not be in any way responsible for any Liability
incurred by reason of any misconduct or default on the part of any such agent
or be bound to supervise the proceedings or acts of any such agent.  The Trustee shall within a reasonable time after
appointing such an agent or after any renewal, extension or termination of such
an appointment give notice thereof to the Issuer and the Guarantor.

(S)                                 The Trustee may, after consultation with the Issuer and the Guarantor,
unless, in the opinion of the Trustee, such consultation would be materially
prejudicial to the interests of the Noteholders, appoint and pay any person to
act as a custodian or nominee on any terms in relation to such assets of the
trusts constituted by these presents as the Trustee may determine, including
for the purpose of depositing with a custodian these presents or any document
relating to the trusts constituted by these presents and provided that the
Trustee shall have exercised reasonable care in the selection of such custodian
or nominee the Trustee shall not be responsible for any Liability incurred by
reason of the misconduct, omission or default on the part of any person
appointed by it hereunder or be bound to supervise the proceedings or acts of
such person;  the Trustee is not obliged
to appoint a custodian if the Trustee invests in securities payable to
bearer.  The Trustee shall within a
reasonable time after appointing such a custodian or nominee or after any
renewal, extension or termination of such an appointment give notice thereof to
the Issuer and the Guarantor.

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

(U)                               The Trustee may call for and shall rely on any records, certificate or
other document and/or evidence and/or information and/or certification to be
issued or given by Euroclear or Clearstream, Luxembourg in relation to any
determination of the principal amount of Notes represented by a Global Note (in
CGN or NGN form) standing to the account of any person.  Any such records, certificate or other
document shall be conclusive and binding for all purposes.  Any such certificate or other document may
comprise any form of statement or print out of electronic records provided by
the relevant clearing system (including Euroclear’s EUCLID or Clearstream,
Luxembourg’s Cedcom system) in accordance with its usual procedures and in
which the holder of a particular principal amount of Notes is clearly
identified together with the amount of such holding.  The Trustee shall not be liable to any person
by reason of having accepted as valid or not having rejected any such record,

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certificate or other
document and/or evidence and/or information and/or certification to such effect
purporting to be issued or given by Euroclear or Clearstream, Luxembourg and
subsequently found to be forged or not authentic.

(V)                                Any certificate or report of the Auditors of the Issuer or any other
person called for by or provided to the Trustee (whether or not addressed to
the Trustee) in accordance with or for the purposes of these presents may be
relied upon by the Trustee as sufficient evidence of the facts stated therein
notwithstanding that such certificate or report and/or any engagement letter or
other document entered into by the Trustee in connection therewith contains a
monetary or other limit on the liability of the Auditors of the Issuer or such
other person in respect thereof and notwithstanding that the scope and/or basis
of such certificate or report may be limited by any engagement or similar letter
or by the terms of the certificate or report itself.

(W)                           The Trustee shall not be responsible to any person for failing to
request, require or receive any legal opinion relating to the Notes or for
checking or commenting upon the content of any such legal opinion and shall not
be responsible for any Liability incurred thereby.

(X)                               Subject to the requirements, if any, of the Stock Exchange, any
corporation into which the Trustee shall be merged or with which it shall be
consolidated or any company resulting from any such merger or consolidation
shall be a party hereto and shall be the Trustee under these presents without
executing or filing any paper or document or any further act on the part of the
parties hereto.

(Y)                                The Trustee shall not be bound to take any action in connection with
these presents or any obligations arising pursuant thereto, including, without
prejudice to the generality of the foregoing, forming any opinion or employing
any financial adviser, where it is not reasonably satisfied that it will be
indemnified (by or on behalf of the Noteholders or, as the case may be, each
person or persons requesting it to take such action or form such opinion)
against all Liabilities which may be incurred in connection with such action
and may demand prior to taking any such action that there be paid to it in
advance such sums as it reasonably considers (without prejudice to any further
demand) shall be sufficient so to indemnify it.

(Z)                                No provision of these presents shall require the Trustee to do anything
which may (i) be illegal or contrary to applicable law or regulation; or (ii)
cause it to expend or risk its own funds or otherwise incur any Liability in
the performance of any of its duties or in the exercise of any of its rights,
powers or discretions, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or Liability
(whether by the Noteholders or by or on behalf of any other person or persons)
is not assured to it.

(AA)                    Unless notified to the contrary, the Trustee shall be entitled to assume
without enquiry (other than requesting a certificate pursuant to subclause
14(xvii)) that no Notes are held by, for the benefit of, or on behalf of, the
Issuer, the Guarantor or any other Subsidiary of the Issuer.

(BB)                        The Trustee shall have no responsibility whatsoever to the Issuer, the
Guarantor, any Noteholder or Couponholder or any other person for the
maintenance of or failure to maintain any rating of any of the Notes by any
rating agency.

(CC)                        The Trustee shall not be responsible for, or for investigating any
matter which is the subject of, any recital, statement, representation,
warranty or covenant of any person contained in these presents, or any other
agreement or document relating to the transactions contemplated in these
presents or under such other agreement or document.

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17.                               TRUSTEE’S LIABILITY

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

18.                               TRUSTEE CONTRACTING WITH THE ISSUER AND THE GUARANTOR

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

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

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

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

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

19.                               WAIVER, AUTHORISATION AND DETERMINATION

(A)                              The Trustee may, without the consent or sanction of the Noteholders, the
Receiptholders or the Couponholders and without prejudice to its rights in
respect of any subsequent breach, Event of Default or Potential Event of
Default from time to time and at any time but only if and in so far as in its
opinion the interests of the Noteholders shall not be materially prejudiced
thereby, waive or authorise any breach or proposed breach by the Issuer or the
Guarantor of any of the covenants or provisions contained in these presents or
determine that any Event of Default or Potential Event of Default shall not be
treated as such for the purposes of these presents PROVIDED ALWAYS THAT

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the Trustee shall not
exercise any powers conferred on it by this Clause in contravention of any
express direction given by Extraordinary Resolution or by a request under
Condition 9 but so that no such direction or request shall affect any
waiver, authorisation or determination previously given or made.  Any such waiver, authorisation or
determination may be given or made on such terms and subject to such conditions
(if any) as the Trustee may determine, shall be binding on the Noteholders, the
Receiptholders and the Couponholders and, if, but only if, the Trustee shall so
require, shall be notified by the Issuer to the Noteholders in accordance with
Condition 13 as soon as practicable thereafter.

MODIFICATION

(B)                                The Trustee may, without the consent or sanction of the Noteholders, the
Receiptholders or the Couponholders, at any time and from time to time, concur
with the Issuer in making any modification (i) to these presents which in
the opinion of the Trustee it may be proper to make, PROVIDED THAT the Trustee
is of the opinion that such modification will not be materially prejudicial to
the interests of the Noteholders or (ii) to these presents, if in the
opinion of the Trustee, such modification is of a formal, minor or technical
nature or to correct a manifest error or an error which is, in the opinion of
the Trustee, proven.  Any such
modification may be made on such terms and subject to such conditions (if any)
as the Trustee may determine, shall be binding upon the Noteholders, the
Receiptholders and the Couponholders and, unless the Trustee agrees otherwise,
shall be notified by the Issuer to the Noteholders in accordance with
Condition 13 as soon as practicable thereafter.

BREACH

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

CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER

(D)                               (1)                                  The Issuer shall not consolidate with or merge into any other
corporation or convey or transfer its properties and assets substantially as an
entirety to any person, unless:

(a)                                  the corporation formed by such consolidation or into which the Issuer is
merged or the person which acquires by conveyance or transfer, the properties
and assets of the Issuer substantially as an entirety shall be a corporation
organised and existing under the laws of the United States of America, any
political subdivision thereof or any State thereof and shall expressly assume,
by a trust deed supplemental hereto, executed and delivered to the Trustee, in
form satisfactory to the Trustee, the due and punctual payment of the principal
of and interest on all the Notes and the performance of every covenant of these
presents on the part of the Issuer to be performed or observed;

(b)                                 immediately after giving effect to such transaction, no Event of Default
or Potential Event of Default shall have occurred;

(c)                                  the Issuer has delivered to the Trustee a certificate signed by two of
its Directors and an opinion of counsel acceptable to the Trustee, each stating
that such consolidation, merger, conveyance or transfer and such supplemental
trust deed comply with this paragraph (1) and that all conditions
precedent herein provided for relating to such transaction have been complied
with; and

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(d)                                 the Guarantor has delivered to the Trustee a certificate signed by two
of its Directors and an opinion of counsel acceptable to the Trustee, each
stating that the Guarantor’s obligations under these presents shall remain in
full force and effect thereafter.

(2)                                  Upon any consolidation with or merger into any other corporation, or any
conveyance or transfer of the properties and assets of the Issuer substantially
as an entirety, in each case in accordance with paragraph (1) above, the
successor corporation formed by such consolidation or into which the Issuer is
merged or the successor person to which such conveyance or transfer is made, shall
succeed to, and be substituted for, and may exercise every right and power of,
the Issuer under these presents with the same effect as if such successor had
been named as the Issuer herein, and thereafter the predecessor corporation
shall be relieved of all obligations and covenants under these presents.

(3)                                  The Guarantor shall not consolidate with or merge into any other
corporation or convey or transfer its properties and assets substantially as an
entirety to any person, unless:

(a)                                  the corporation formed by such consolidation or into which the Guarantor
is merged or the person which acquires by conveyance or transfer, the
properties and assets of the Guarantor substantially as an entirety shall be a
corporation organised and existing under the laws of the United States of
America, any political subdivision thereof or any State thereof and shall
expressly assume, by a trust deed supplemental hereto, executed and delivered
to the Trustee, in form satisfactory to the Trustee, the obligations of the Guarantor
contained in Clause 7 and the performance of every covenant contained in
these presents on the part of the Guarantor to be performed or observed;

(b)                                 immediately after giving effect to such transaction, no Event of Default
or Potential Event of Default shall have occurred; and

(c)                                  the Guarantor has delivered to the Trustee a certificate signed by two
of its Directors and an opinion of counsel acceptable to the Trustee, each
stating that such consolidation, merger, conveyance or transfer and such supplemental
trust deed comply with this paragraph (3) and that all conditions
precedent herein provided for relating to such transaction have been complied
with.

(4)                                  Upon any consolidation with or merger into any other corporation, or any
conveyance or transfer of the properties and assets of the Guarantor
substantially as an entirety, in each case in accordance with
paragraph (3) above, the successor corporation formed by such
consolidation or into which the Guarantor is merged or the successor person to
which such conveyance or transfer is made, shall succeed to, and be substituted
for, and may exercise every right and power of, the Guarantor under these
presents with the same effect as if such successor had been named as the
Guarantor herein, and thereafter the predecessor corporation shall be relieved
of all obligations and covenants under these presents.

20.                               HOLDER OF DEFINITIVE NOTE ASSUMED TO BE RECEIPTHOLDER AND COUPONHOLDER

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

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NO NOTICE TO RECEIPTHOLDERS OR COUPONHOLDERS

(B)                                Neither the Trustee nor the Issuer shall be required to give any notice
to the Receiptholders or Couponholders for any purpose under these presents and
the Receiptholders or Couponholders shall be deemed for all purposes to have
notice of the contents of any notice given to the holders of Bearer Notes in
accordance with Condition 13.

21.                               CURRENCY INDEMNITY

Each of the Issuer and the Guarantor shall severally
indemnify the Trustee, every Appointee, the Noteholders, the Receiptholders and
the Couponholders and keep them indemnified against:

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

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

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

22.                               NEW TRUSTEE

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

SEPARATE AND CO-TRUSTEES

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

 33
 

  

 

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

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

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

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

23.                               TRUSTEE’S RETIREMENT AND REMOVAL

A trustee of these presents may retire at any time on
giving not less than 60 days prior written notice to the Issuer, without giving
any reason and without being responsible for any Liabilities incurred by reason
of such retirement.  The Noteholders may,
by Extraordinary Resolution, remove any trustee or trustees for the time being
of these presents.  The Issuer and the
Guarantor undertake that in the event of the only trustee of these presents
which is a Trust Corporation giving notice under this Clause or being removed
by Extraordinary Resolution, they will use reasonable endeavours to procure
that a new trustee of these presents, being a Trust Corporation, is appointed
as soon as reasonably practicable thereafter.  The retirement or removal of any such trustee
shall not become effective until a successor trustee being a Trust Corporation
is appointed.  If, in such circumstances,
no appointment of such a new trustee has become effective within 60 days of the
date of such notice or Extraordinary Resolution, the Trustee shall be entitled
to appoint a Trust Corporation as trustee of these presents, but no such
appointment shall take effect unless previously approved by an Extraordinary
Resolution.

24.                               TRUSTEE’S POWERS TO BE ADDITIONAL

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

25.                               NOTICES

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

	
  to the Issuer:

  	
  4500 Park Granada

  
	
   

  	
  Calabasas

  
	
   

  	
  California 91302

  
	
   

  	
  U.S.A.

  
	
   

  	
   

  
	
   

  	
  (Attention:         Jennifer
  Sandefur

  

 

 34
 

  

 

	
  

  	
                            Senior
  Managing Director and

  
	
   

  	
                            Treasurer)

  
	
   

  	
  Facsimile No.    001 818 225
  4001

  
	
   

  	
   

  
	
  to the
  Guarantor:

  	
  4500 Park Granada

  
	
   

  	
  Calabasas

  
	
   

  	
  California 91302

  
	
   

  	
  U.S.A.

  
	
   

  	
   

  
	
   

  	
  (Attention:        Jennifer
  Sandefur

  
	
   

  	
                           Senior
  Managing Director

  
	
   

  	
                           and
  Treasurer)

  
	
   

  	
  Facsimile No.   001 818 225 4001

  
	
   

  	
   

  
	
  to the Trustee:

  	
  Winchester House

  
	
   

  	
  1 Great Winchester Street

  
	
   

  	
  London EC2N 2DB

  
	
   

  	
   

  
	
   

  	
  (Attention:       the
  Managing Director)

  
	
   

  	
  Facsimile No.  +44 207 547 5782/+44 207
  547 3665

  

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

26.                               GOVERNING LAW

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

27.                               SUBMISSION TO JURISDICTION

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

(B)                                Each of the Issuer and the Guarantor irrevocably and unconditionally
appoints GLN Representatives Limited at its registered office for the time
being (being at the date hereof at 20th Floor, City Point, 1 Ropemaker Street, London
EC2Y 9HT) and in the event of its ceasing so to act, will appoint such

 35

 

other person as
the Trustee may approve and as the Issuer or the Guarantor may nominate in
writing to the Trustee for the purpose of accepting service of process on its
behalf in England in respect of any Proceedings.  Each of the Issuer and the Guarantor:

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

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

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

28.                               COUNTERPARTS

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

29.                               CONTRACTS
(RIGHTS OF THIRD PARTIES) ACT 1999

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

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

 36
 

 

SCHEDULE 1

TERMS AND
CONDITIONS OF THE NOTES

The following are
the Terms and Conditions of the Notes which will be incorporated by reference
into each global Note and each definitive Note, in the latter case only if
permitted by all legal and other relevant regulatory requirements and agreed by
the Issuer and the relevant Dealer at the time of issue but, if not so
permitted and agreed, such definitive Note will have endorsed thereon or
attached thereto such Terms and Conditions. 
The applicable Final Terms in relation to any Tranche of Notes may
specify other terms and conditions which shall, to the extent so specified or
to the extent inconsistent with the following Terms and Conditions, replace or
modify the following Terms and Conditions for the purpose of such Notes.  The applicable Final Terms (or the relevant
provisions thereof) will be endorsed upon, or attached to, each Temporary
Global Note, Permanent Global Note and definitive Note.  Reference should be made to “Form of the
Notes” above for a description of the content of Final Terms which will include
the definitions of certain terms used in the following Terms and Conditions or
specify which of such terms are to apply in relation to the relevant Notes.

This Note is one of a Series (as defined below) of
Notes issued by Countrywide Financial Corporation (the “Issuer”) constituted by
a Trust Deed dated 15 August, 2005 (such Trust Deed as modified and/or
supplemented and/or restated from time to time, the “Trust Deed”) made between
the Issuer, Countrywide Home Loans, Inc. as guarantor (the “Guarantor”) and
Deutsche Trustee Company Limited (the
“Trustee”, which expression shall include any successor as trustee).

References herein
to the “Notes” shall be references to the Notes of this Series and shall mean:

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

(ii)                                  definitive
Notes issued in exchange for a global Note; and

(iii)                               any global Note.

The Notes, the Receipts (as defined below) and the
Coupons (as defined below) have the benefit of an amended and restated Agency
Agreement (the “Agency Agreement” dated 31 August, 2006 made between the
Issuer, the Guarantor, Deutsche Bank AG, London Branch as issuing and principal
paying agent and agent bank (the “Agent”, which expression shall include any
successor agent specified in the applicable Final Terms), the other paying
agents named therein (together, where the context so permits, with the Agent,
the “Paying Agents”, which expression shall include any additional or successor
paying agents) and the Trustee.

Interest bearing definitive Notes (unless otherwise
indicated in the applicable Final Terms) have interest coupons (“Coupons”) and,
if indicated in the applicable Final Terms, talons for further Coupons (“Talons”)
attached on issue. Any reference herein to Coupons or coupons shall, unless the
context otherwise requires, be deemed to include a reference to Talons or
talons. Definitive Notes repayable in instalments have receipts (“Receipts”)
for the payment of the instalments of principal (other than the final
instalment) attached on issue.

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

 37
 

 

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

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

Copies of the Trust Deed, the Agency Agreement and the
applicable Final Terms are available for inspection during normal business
hours at the registered office for the time being of the Trustee (being at 31
August, 2006 at Winchester House, 1 Great Winchester Street, London EC2N 2DB)
and at the specified office of each of the Paying Agents, save that, if this
Note is neither admitted to trading on a regulated market in the European
Economic Area nor offered in the European Economic Area in circumstances where
a prospectus is required to be published under the Prospectus Directive, the
applicable Final Terms will only be available for inspection by a Noteholder
holding one or more unlisted Notes of that Series and such Noteholder must
produce evidence satisfactory to the Trustee or, as the case may be, the
relevant Paying Agent as to its holding of Notes and as to identity. The
Noteholders, the Receiptholders and the Couponholders are deemed to have notice
of, and are entitled to the benefit of, all the provisions of the Trust Deed,
the Agency Agreement and the applicable Final Terms which are applicable to them.
These Terms and Conditions include summaries of, and are subject to the
detailed provisions of, the Trust Deed.

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

1.                                      Form,
Denomination and Title

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

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

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

Subject as set out below, title to the Notes, Receipts
and Coupons will pass by delivery. The Issuer, the Guarantor, the Replacement
Agent (which is defined in the Agency Agreement as the Paying Agent in London)
and any Paying Agent may deem and treat the bearer of any Note, Receipt or
Coupon as the absolute owner thereof (whether or not overdue and
notwithstanding any notice of ownership or writing thereon or notice of any
previous loss or theft thereof) for all purposes but, in the case of any global
Note, without prejudice to the provisions set out in the next succeeding
paragraph.

For so long as any of the Notes is represented by a
global Note held on behalf of Euroclear Bank SA/NV (“Euroclear”) and/or
Clearstream Banking, société anonyme
(“Clearstream, Luxembourg”) each 

 38
 

 

person (other than Euroclear or Clearstream,
Luxembourg) who is for the time being shown in the records of Euroclear or of
Clearstream, Luxembourg as the holder of a particular nominal amount of such
Notes (in which regard any certificate or other document issued by Euroclear or
Clearstream, Luxembourg as to the nominal amount of such Notes standing to the
account of any person shall be conclusive and binding for all purposes save in
the case of manifest error) shall be treated by the Issuer, the Guarantor, the
Agent and any other Paying Agent and the Trustee as the holder of such nominal
amount of such Notes for all purposes other than with respect to the payment of
principal or interest on the Notes, for which purpose the bearer of the
relevant global Note shall be treated by the Issuer, the Guarantor, the Agent
and any other Paying Agent and the Trustee as the holder of such nominal amount
of such Notes in accordance with and subject to the terms of the relevant
global Note and the expressions “Noteholder” and “holder of Notes” and related
expressions shall be construed accordingly. Notes which are represented by a
global Note will be transferable only in accordance with the rules and
procedures for the time being of Euroclear or of Clearstream, Luxembourg, as
the case may be.

References to
Euroclear and/or Clearstream, Luxembourg shall, whenever the context so
permits, be deemed to include a reference to any additional or alternative
clearing system approved by the Issuer, the Agent and the Trustee.

2.                                      Status
of the Notes

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

3.                                      Status
of the Guarantee

The payment of the
principal and interest in respect of the Notes and all other moneys payable by
the Issuer under or pursuant to the Trust Deed has been unconditionally and
irrevocably guaranteed by the Guarantor under the Trust Deed. The obligations
of the Guarantor under the Guarantee are direct, unconditional, unsubordinated
and unsecured obligations of the Guarantor and pari passu
and (save for certain debts required to be preferred by law) equally with all
other unsecured obligations (other than subordinated obligations, if any) of
the Guarantor, from time to time outstanding.

4.                                      Interest

(a)                               Interest
on Fixed Rate Notes

Each Fixed Rate Note bears interest on its outstanding
nominal amount (or, if it is a Partly Paid Note, the amount paid up) from (and
including) the Interest Commencement Date at the rate(s) per annum equal to the
Rate(s) of Interest. Interest will be payable in arrear on the Interest Payment
Date(s) in each year up to and including the Maturity Date.

Except as provided in the applicable Final Terms, the
amount of interest payable on each Interest Payment Date in respect of the
Fixed Interest Period ending on (but excluding) such date will amount to the
Fixed Coupon Amount. Payments of interest on any Interest Payment Date will, if
so specified in the applicable Final Terms, amount to the Broken Amount so
specified.

As used in these Terms and Conditions, “Fixed Interest
Period” means the period from (and including) an Interest Payment Date (or, if
none, the Interest Commencement Date) to (but excluding) the next (or first)
Interest Payment Date.

If interest is required to be calculated for a period
other than a Fixed Interest Period or if no Fixed Coupon Amount is specified in
the applicable Final Terms, such interest shall be calculated by applying the

 39
 

 

Rate of Interest to each Specified Denomination,
multiplying such sum by the applicable Day Count Fraction, and rounding the
resultant figure to the nearest sub-unit of the relevant Specified Currency,
half of any such sub-unit being rounded upwards or otherwise in accordance with
applicable market convention.

“Day Count
Fraction” means, in respect of the calculation of an amount of interest in
accordance with this Condition 4(a):

(i)                                     if
“Actual/Actual (ICMA)” is specified in the applicable Final Terms:

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

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

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

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

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

In these Terms and Conditions:

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

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

(b                                    Interest
on Floating Rate Notes and Index Linked Interest Notes

(i)                                  Interest
Payment Dates

 40
 

 

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

(A)                              the
Specified Interest Payment Date(s) (each an “Interest Payment Date”) in each
year specified in the applicable Final Terms; or

(B)                                if
no Specified Interest Payment Date(s) is/are specified in the applicable Final
Terms, each date (each an “Interest Payment Date”) which falls the number of months
or other period specified as the Specified Period in the applicable Final Terms
after the preceding Interest Payment Date or, in the case of the first Interest
Payment Date, after the Interest Commencement Date.

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

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

(1)                                  in
any case where Specified Periods are specified in accordance with Condition 4(b)(i)(B) above, the Floating Rate Convention, such Interest
Payment Date (i) in the case of (x) above, shall be the last day that is a
Business Day in the relevant month and the provisions of (B) below shall apply mutatis  mutandis or
(ii) in the case of (y) above, shall be postponed to the next day which is a
Business Day unless it would thereby fall into the next calendar month, in
which event (A) such Interest Payment Date shall be brought forward to the
immediately preceding Business Day and (B) each subsequent Interest Payment
Date shall be the last Business Day in the month which falls in the Specified
Period after the preceding applicable Interest Payment Date; or

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

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

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

In these Terms and
Conditions, “Business Day” means a day which is both:

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

(B)                                either
(1) in relation to any sum payable in a Specified Currency other than euro, a
day on which commercial banks and foreign exchange markets settle payments and
are open for

 41
 

 

general business
(including dealing in foreign exchange and foreign currency deposits) in the
principal financial centre of the country of the relevant Specified Currency
(if other than London and any Additional Business Centre and which, if the
Specified Currency is Australian dollars or New Zealand dollars, shall be
Melbourne and Wellington, respectively) or (2) in relation to any sum payable
in euro, a day on which the Trans-European Automated Real-Time Gross Settlement
Express Transfer (TARGET) System (the “TARGET System”) is open.

(ii)                              Rate
of Interest

The Rate of
Interest payable from time to time in respect of Floating Rate Notes and Index
Linked Interest Notes will be determined in the manner specified in the
applicable Final Terms.

(A)                              ISDA
Determination for Floating Rate Notes

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

(1)                                  the
Floating Rate Option is as specified in the applicable Final Terms;

(2)                                  the
Designated Maturity is a period specified in the applicable Final Terms; and

(3)                                  the
relevant Reset Date is either (i) if the applicable Floating Rate Option is
based on the London inter-bank offered rate (“LIBOR”) or on the Euro-zone
inter-bank offered rate (“EURIBOR”) the first day of that Interest Period or
(ii) in any other case, as specified in the applicable Final Terms.

For the purposes
of this sub-paragraph (A), “Floating Rate”, “Calculation Agent”, “Floating Rate
Option”, “Designated Maturity” and “Reset Date” have the meanings given to
those terms in the ISDA Definitions.

(B)                                Screen Rate Determination for Floating Rate Notes

Where Screen Rate
Determination is specified in the applicable Final Terms as the manner in which
the Rate of Interest is to be determined, the Rate of Interest for each
Interest Period will, subject as provided below, be either:

(1)                                  the
offered quotation; or

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

(expressed as a percentage rate per annum) for the
Reference Rate which appears or appear, as the case may be, on the Relevant
Screen Page as at 11.00 a.m. (London time, in the case of LIBOR, or Brussels
time, in the case of EURIBOR) on the Interest Determination Date in question
plus or minus (as indicated in the applicable Final Terms) the Margin (if any),
all as determined by the Agent. If five or more of such offered quotations are
available on the Relevant Screen Page, the highest (or, if there 

 42
 

 

is more than one such highest quotation, one only of
such quotations) and the lowest (or, if there is more than one such lowest
quotation, one only of such quotations) shall be disregarded by the Agent for
the purpose of determining the arithmetic mean (rounded as provided above) of
such offered quotations.

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

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

(iii)                          Minimum
and/or Maximum Rate of Interest

If the applicable Final Terms specifies a Minimum Rate
of Interest for any Interest Period, then, in the event that the Rate of
Interest in respect of such Interest Period determined in accordance with the
provisions of paragraph (ii) above is
less than such Minimum Rate of Interest, the Rate of Interest for such Interest
Period shall be such Minimum Rate of Interest.

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

(iv)                            Determination
of Rate of Interest and Calculation of Interest Amounts

The Agent, in the case of Floating Rate Notes, and the
Calculation Agent, in the case of Index Linked Interest Notes, will at or as
soon as practicable after each time at which the Rate of Interest is to be
determined, determine the Rate of Interest for the relevant Interest Period. In
the case of Index Linked Interest Notes, the Calculation Agent will notify the
Agent of the Rate of Interest for the relevant Interest Period as soon as
practicable after calculating the same.

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

“Day Count
Fraction” means, in respect of the calculation of an amount of interest for any
Interest Period:

(i)                                     if
“Actual/365” or “Actual/Actual (ISDA)” is specified in the applicable Final
Terms, the actual number of days in the Interest Period divided by 365 (or, if
any portion of that Interest Period falls in a leap year, the sum of (A) the
actual number of days in that portion of the Interest Period falling in a leap
year divided by 366 and (B) the actual number of days in that portion of the
Interest Period falling in a non-leap year divided by 365);

(ii)                                  if
“Actual/365 (Fixed)” is specified in the applicable Final Terms, the actual
number of days in the Interest Period divided by 365;

 43
 

 

(iii)                               if “Actual/365
(Sterling)” is specified in the applicable Final Terms, the actual number of
days in the Interest Period divided by 365 or, in the case of an Interest
Payment Date falling in a leap year, 366;

(iv)                              if
“Actual/360” is specified in the applicable Final Terms, the actual number of
days in the Interest Period divided by 360;

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

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

(v)                                Notification
of Rate of Interest and Interest Amounts

The Agent will
cause the Rate of Interest and each Interest Amount for each Interest Period
and the relevant Interest Payment Date to be notified to the Issuer, the
Trustee and any stock exchange on which the relevant Floating Rate Notes or
Index Linked Interest Notes are for the time being listed and notice thereof to
be published in accordance with Condition 13 as soon as possible after their
determination but in no event later than the fourth London Business Day
thereafter. Each Interest Amount and Interest Payment Date so notified may
subsequently be amended (or appropriate alternative arrangements made by way of
adjustment) without prior notice in the event of an extension or shortening of
the Interest Period. Any such amendment will be promptly notified to each stock
exchange on which the relevant Floating Rate Notes or Index Linked Interest
Notes are for the time being listed and to the Noteholders in accordance with
Condition 13. For the purposes of this paragraph, the expression “London
Business Day” means a day (other than a Saturday or a Sunday) on which
commercial banks and foreign exchange markets are open for general business in
London.

(vi)                            Determination
or calculation by Trustee

If for any reason at any relevant time the Agent or,
as the case may be, the Calculation Agent defaults in its obligation to
determine the Rate of Interest or the Agent defaults in its obligation to
calculate any Interest Amount in accordance with sub-paragraph (ii)(A) or (B) above or as otherwise specified in the
applicable Final Terms, as the case may be, and, in each case, in accordance
with sub-paragraph (iv) above, the
Trustee shall determine the Rate of Interest at such rate as, in its absolute
discretion (having such regard as it shall think fit to the foregoing
provisions of this Condition, but subject always to any minimum or maximum Rate
of Interest specified in the applicable Final Terms), it shall deem fair and
reasonable in all the circumstances or, as the case may be, the Trustee shall
calculate the Interest Amount(s) in such manner as it shall deem fair and
reasonable in all the circumstances and each such determination or calculation
shall be deemed to have been made by the Agent or the Calculation Agent, as
applicable.

 44
 

 

(vii)                        Certificates
to be final

All certificates,
communications, opinions, determinations, calculations, quotations and
decisions given, expressed, made or obtained for the purposes of the provisions
of this Condition 4(b), whether by
the Agent or, if applicable, the Calculation Agent or the Trustee, shall (in
the absence of wilful default, bad faith or manifest error) be binding on the
Issuer, the Guarantor, the Agent, the Calculation Agent (if applicable), the
other Paying Agents, the Trustee and all Noteholders, Receiptholders and
Couponholders and (in the absence as aforesaid) no liability to the Issuer, the
Guarantor, the Noteholders, the Receiptholders or the Couponholders shall
attach to the Agent or (if applicable) the Calculation Agent or the Trustee in
connection with the exercise or non-exercise by it of its powers, duties and
discretions pursuant to such provisions.

(c)                                Dual
Currency Notes

In the case of
Dual Currency Notes, if the rate or amount of interest falls to be determined
by reference to an exchange rate, the rate or amount of interest payable shall
be determined in the manner specified in the applicable Final Terms.

(d)                               Partly
Paid Notes

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

(e)                                Accrual
of Interest

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

5.                                      Payments

(a)                               Method
of Payment

Subject as
provided below:

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

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

(iii)                               payments in U.S. dollars
will be made by transfer to a U.S. dollar account maintained by the payee with
a bank outside the United States (which expression, as used in this Condition
5, means the United States of America, including the States and the District of
Columbia, its territories, its possessions and other areas subject to its
jurisdiction), or by cheque drawn on a United States bank.

In no event will payment be made by a cheque mailed to
an address in the United States or by transfer to an account maintained by the
payee with a bank located in the United States. Payments will be subject in

 45

 

all cases to any fiscal or other laws and regulations
applicable thereto in the place of payment, but without prejudice to the
provisions of Condition 7. References to “Specified Currency” will include any
successor currency under applicable law.

(b)       Presentation
of definitive Notes, Receipts and Coupons

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

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

Fixed
Rate Notes in definitive form (other than Dual Currency Notes or Index Linked
Notes) should be presented for payment together with all unmatured Coupons
appertaining thereto (which expression shall for this purpose include Coupons
falling to be issued on exchange of matured Talons), failing which the amount
of any missing unmatured Coupon (or, in the case of payment not being made in
full, the same proportion of the amount of such missing unmatured Coupon as the
sum so paid bears to the sum due) will be deducted from the sum due for
payment. Each amount of principal so deducted will be paid in the manner
mentioned above against surrender of the relative missing Coupon at any time
before the expiry of 10 years after the Relevant Date (as defined in Condition
7) in respect of such principal (whether or not such Coupon would otherwise
have become void under Condition 8) or, if later, five years from the date on
which such Coupon would otherwise have become due, but in no event thereafter.
Notwithstanding the provisions of this paragraph, if any such Fixed Rate Notes
in definitive form should be issued on terms such that, on the presentation for
payment of any such Note without any unmatured Coupons attached thereto or
surrendered therewith, the amount required by this paragraph to be deducted
would be greater than the Early Redemption Amount otherwise due for payment,
then, upon the due date for redemption of any such Note, such unmatured Coupons
(whether or not attached) shall become void (and no payment shall be made in
respect thereof) as shall be required so that, upon application of the
provisions of this paragraph in respect of such Coupons as have not so become
void, the amount required by this paragraph to be deducted would not be greater
than the Early Redemption Amount otherwise due for payment. Where the
application of the foregoing sentence requires some but not all of the
unmatured Coupons relating to a Note to become void, the relevant Paying Agent
shall determine which unmatured Coupons are to become void, and shall select
for such purpose Coupons maturing on later dates in preference to Coupons
maturing on earlier dates.

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

Upon
the date on which any Floating Rate Note, Dual Currency Note or Index Linked
Note in definitive form becomes due and repayable, unmatured Coupons and Talons
(if any) relating thereto

 46
 

 

(whether or not attached)
shall become void and no payment or, as the case may be, exchange for further
Coupons shall be made in respect thereof.

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

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

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

Notwithstanding
the foregoing, if any amount of principal and/or interest in respect of this
Note is payable in U.S. dollars, such U.S. dollar payments of principal and/or
interest in respect of this Note will be made at the specified office of a
Paying Agent in the United States if:

	
  (i)

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

  
	
   

  	
   

  
	
  (ii)

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

  
	
   

  	
   

  
	
  (iii)

  	
  such payment is then permitted under United States
  law without involving, in the opinion of the Issuer and the Guarantor,
  adverse tax consequences to the Issuer or the Guarantor.

  

(c)       Payment Day

If
the date for payment of any amount in respect of any Note, Receipt or Coupon is
not a Payment Day, the holder thereof shall not be entitled to payment until
the next following Payment Day in the relevant place and shall not be entitled
to further interest or other payment in respect of such delay. For these
purposes, “Payment Day” means any day which is:

	
  (i)

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

  
	
   

  	
   

  
	
   

  	
  (A)

  	
  the relevant place of presentation;

  

 

 47
 

 

 

	
  

  	
  (B)

  	
  London; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (C)

  	
  any Additional Financial Centre specified in the
  applicable Final Terms; and

  
	
   

  	
   

  	
   

  
	
  (ii)

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

  

(d)       Interpretation of Principal and Interest

Any
reference in these Terms and Conditions to principal in respect of the Notes
shall be deemed to include, as applicable:

	
  (i)

  	
  any additional amounts which may be payable with
  respect to principal under Condition 7;

  
	
   

  	
   

  
	
  (ii)

  	
  the Final Redemption Amount of the Notes;

  
	
   

  	
   

  
	
  (iii)

  	
  the Early Redemption Amount of the Notes;

  
	
   

  	
   

  
	
  (iv)

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

  
	
   

  	
   

  
	
  (v)

  	
  in relation to Notes redeemable in instalments, the
  Instalment Amounts;

  
	
   

  	
   

  
	
  (vi)

  	
  in relation to Zero Coupon Notes, the Amortised Face
  Amount (as defined in Condition 6(e)); and

  
	
   

  	
   

  
	
  (vii)

  	
  any premium and any other amounts (other than
  interest) which may be payable by the Issuer under or in respect of the
  Notes.

  

Any
reference in these Terms and Conditions to interest in respect of the Notes
shall be deemed to include, as applicable, any additional amounts (other than
interest) which may be payable with respect to interest under Condition 7.

6.         Redemption
and Purchase

(a)       At
Maturity

Unless
previously redeemed or purchased and cancelled as specified below, each Note
will be redeemed by the Issuer at its Final Redemption Amount specified in, or
determined in the manner specified in, the applicable Final Terms in the
relevant Specified Currency on the Maturity Date.

(b)       Redemption
for Tax Reasons

The
Notes may be redeemed at the option of the Issuer in whole, but not in part, at
any time (if this Note is neither a Floating Rate Note nor an Index Linked
Interest Note) or on any Interest Payment Date (if this Note is either a
Floating Rate Note or an Index Linked Interest Note), on giving not less than
30 nor

 48
 

 

more than 60 days’ notice to
the Agent and, in accordance with Condition 13, the Noteholders (which notice
shall be irrevocable), if:

	
  (i)

  	
  on the occasion of the next payment due under the
  Notes, the Issuer has or will become obliged to pay additional amounts as
  provided or referred to in Condition 7 or the Guarantor would be unable for
  reasons outside its control to procure payment by the Issuer and in making
  payment itself would be required to pay such additional amounts in each case
  as a result of any change in, or amendment to, the laws or regulations of the
  United States of America or any political subdivision or any authority
  thereof or therein having power to tax, or any change in the application or
  official interpretation of such laws or regulations, which change or
  amendment becomes effective on or after the Issue Date of the first Tranche
  of the Notes; and

  
	
   

  	
   

  
	
  (ii)

  	
  such obligation cannot be avoided by the Issuer or,
  as the case may be, the Guarantor taking reasonable measures available to it,

  

provided that no such notice
of redemption shall be given earlier than 90 days prior to the earliest date on
which the Issuer or, as the case may be, the Guarantor would be obliged to pay
such additional amounts were a payment in respect of the Notes then due.

Prior
to the publication of any notice of redemption pursuant to this Condition, the
Issuer shall deliver to the Agent a certificate signed by two Directors of the
Issuer or, as the case may be, two Directors of the Guarantor stating that the
Issuer is entitled to effect such redemption and setting forth a statement of
facts showing that the conditions precedent to the right of the Issuer so to
redeem have occurred, and an opinion of independent legal advisers of
recognised standing to the effect that the Issuer or, as the case may be, the
Guarantor has or will become obliged to pay such additional amounts as a result
of such change or amendment.

In
addition if the Issuer or, if applicable, the Guarantor determines, based upon
a written opinion of independent United States legal counsel, that any payment
made outside the United States by the Issuer, the Guarantor or any Paying Agent
of principal or interest due in respect of any Note, Receipt or Coupon would,
under any laws or regulations of the United States of America having current or
scheduled future effect, be subject to any certification, identification or
other information reporting requirement of any kind, the effect of which is the
disclosure to the Issuer, the Guarantor, any Paying Agent or any governmental
authority of the nationality, residence or identity (as distinguished from, for
example, status as a United States Alien (as defined in Condition 7)) of a
beneficial owner of such Note, Receipt or Coupon who is a United States Alien
the Issuer, at its option, will either (x) redeem the Notes, in whole but not
in part, or (y) if and so long as the conditions of Condition 7 are satisfied,
pay the additional amounts specified in Condition 7.

The
right of the Issuer to exercise such option will not apply where the
requirement otherwise giving rise to such option (1) would not be applicable to
a payment made by the Issuer, the Guarantor or any Paying Agent (i) directly to
the beneficial owner or (ii) to a custodian, nominee or other agent of the
beneficial owner, (2) can be satisfied by such custodian, nominee or other
agent certifying that such beneficial owner is a United States Alien, provided
that in each case referred to in sub-paragraphs (1)(ii) and (2) payment by such
custodian, nominee or agent of such beneficial owner is not otherwise subject
to any such requirement (other than a requirement which is imposed on a
custodian, nominee or other agent described in (4) of this sentence) or (3)
would not be applicable to payment made by at least one other Paying Agent or
(4) is applicable to a payment to a custodian, nominee or other agent of the beneficial
owner who is a United States person, a controlled foreign corporation for
United States tax purposes, a foreign person 50 per cent. or more of whose
gross income for the 3-year period ending with the close of its taxable year
preceding the year of payment is effectively connected with a United States
trade or business, or is otherwise related to the United States.

 49
 

 

Such
determination and election will be made as soon as practicable, and the Issuer
will promptly publish notice thereof (the “Determination Notice”) stating the
effective date of such certification, identification or other information or
reporting requirement, whether the Notes shall be redeemed or that the
additional amounts specified in Condition 7 should be paid and (if applicable)
the last date by which the redemption of the Notes must take place.

If
an election has been made that the Notes shall be redeemed, such redemption
will take place on such date (being an Interest Payment Date if this Note is
either a Floating Rate Note or an Index Linked Interest Note), not later than
one year after the publication of the Determination Notice, as the Issuer
elects by notice to the Noteholders in accordance with Condition 13 at least 60
days before the date fixed for redemption.

Notwithstanding
the foregoing, the Notes will not be so redeemed if the Issuer subsequently
determines, based on an opinion of independent United States legal counsel, no
less than 30 days prior to the redemption date, that subsequent payments would
not be subject to any such requirement, in which case the Issuer will promptly
publish notice of such determination and any earlier redemption notice will be
revoked and of no further effect.

Notes
redeemed pursuant to this Condition 6(b) will be
redeemed at their Early Redemption Amount referred to in paragraph (e) below together (if appropriate) with interest accrued to
(but excluding) the date of redemption.

(c)       Redemption
at the Option of the Issuer (Issuer Call)

If
Issuer Call is specified in the applicable Final Terms, the Issuer shall,
having given:

	
  (i)

  	
  not less than 30 nor more than 60 days’ notice to
  the Noteholders in accordance with Condition 13; and

  
	
   

  	
   

  
	
  (ii)

  	
  not less than 30 days before the giving of the
  notice referred to in (i), notice to the Agent;

  

(which notices shall be
irrevocable), redeem all or some only of the Notes then outstanding on any
Optional Redemption Date and at the Optional Redemption Amount(s) specified in,
or determined in the manner specified in, the applicable Final Terms together,
if appropriate, with interest accrued to (but excluding) the relevant Optional
Redemption Date. Any such partial redemption must be of a nominal amount not
less than the Minimum Redemption Amount or not more than the Maximum Redemption
Amount. In the case of a partial redemption of Notes, the Notes to be redeemed
(“Redeemed Notes”) will be selected individually by lot, in the case of
Redeemed Notes represented by definitive Notes, and in accordance with the
rules of Euroclear and/or Clearstream, Luxembourg (to be reflected in the
records of Euroclear or Clearstream, Luxembourg as either a pool factor or a
reduction in nominal amount, at their discretion), in the case of Redeemed
Notes represented by a global Note, not more than 60 days prior to the date
fixed for redemption (such date of selection being hereinafter called the “Selection
Date”). In the case of Redeemed Notes represented by definitive Notes, a list
of the serial numbers of such Redeemed Notes will be published in accordance
with Condition 13 not less than 30 days prior to the date fixed for redemption.

The
aggregate nominal amount of Redeemed Notes represented by definitive Notes
shall bear the same proportion to the aggregate nominal amount of all Redeemed
Notes as the aggregate nominal amount of definitive Notes outstanding bears to
the aggregate nominal amount of the Notes outstanding, in each case on the
Selection Date, provided that such first mentioned nominal amount shall, if
necessary, be rounded downwards to the nearest integral multiple of the
Specified Denomination, and the aggregate nominal amount of Redeemed Notes
represented by a global Note shall be equal to the balance of the Redeemed
Notes. No exchange of the relevant global Note will be permitted during the
period from and including the Selection Date to and including the date fixed
for redemption pursuant to this paragraph (c) and notice
to that effect shall be given by the Issuer to the Noteholders in accordance
with Condition 13 at least 5 days prior to the Selection Date.

 50
 

 

(d)       Redemption at the Option of the
Noteholders (Investor Put)

If
Investor Put is specified in the applicable Final Terms, upon the holder of any
Note giving to the Issuer in accordance with Condition 13 not less than 30 nor
more than 60 days’ notice (which shall be irrevocable) the Issuer will, upon
the expiry of such notice, redeem, subject to, and in accordance with, the
terms specified in the applicable Final Terms, such Note on the Optional
Redemption Date and at the Optional Redemption Amount together, if appropriate,
with interest accrued to (but excluding) the Optional Redemption Date.

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

(e)       Early
Redemption Amounts

For
the purpose of paragraph (b) above and
Condition 9, the Notes will be redeemed at the Early Redemption Amount
calculated as follows:

	
  (i)

  	
  in the case of Notes with a Final Redemption Amount
  equal to the Issue Price, at the Final Redemption Amount thereof;

  
	
   

  	
   

  
	
  (ii)

  	
  in the case of Notes (other than Zero Coupon Notes
  but including Instalment Notes and Partly Paid Notes) with a Final Redemption
  Amount which is or may be less or greater than the Issue Price or which is
  payable in a Specified Currency other than that in which the Notes are
  denominated, at the amount specified in, or determined in the manner
  specified in, the applicable Final Terms or, if no such amount or manner is
  so specified in the Final Terms, at their nominal amount; or

  
	
   

  	
   

  
	
  (iii)

  	
  in the case of Zero Coupon Notes, at an amount (the
  “Amortised Face Amount”) calculated in accordance with the following formula:

  
	
   

  	
   

  
	
   

  	
  Early Redemption Amount = RP 6 (1 + AY)y

  
	
   

  	
   

  
	
   

  	
  Where:

  
	
   

  	
   

  
	
   

  	
  “RP” means the Reference Price;

  
	
   

  	
   

  
	
   

  	
  “AY” means the Accrual Yield expressed as a decimal;
  and

  
	
   

  	
   

  
	
   

  	
  “y” is a fraction the numerator of which is equal to
  the number of days (calculated on the basis of a 360-day year consisting of
  12 months of 30 days each) from (and including) the Issue Date of the first
  Tranche of the Notes of such Series to (but excluding) the date fixed for
  redemption of such Notes or (as the case may be) the date upon which such
  Notes become due and repayable, and the denominator of which is 360,

  

or on such other calculation
basis as may be specified in the applicable Final Terms.

 51
 

 

(f)        Instalments

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

(g)       Partly
Paid Notes

Partly
Paid Notes will be redeemed, whether at maturity, early redemption or
otherwise, in accordance with the provisions of this Condition and the
applicable Final Terms.

(h)       Purchases

The
Issuer, the Guarantor or any of the other Subsidiaries (as defined in the Trust
Deed) of the Issuer may at any time purchase Notes (provided that, in the case
of definitive Notes, all unmatured Receipts, Coupons and Talons appertaining
thereto are purchased therewith) at any price in the open market or otherwise.
Such Notes may be held, reissued, resold or, at the option of the Issuer or the
Guarantor, surrendered to any Paying Agent for cancellation.

(i)        Cancellation

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

(j)        Late
payment on Zero Coupon Notes

If
the amount payable in respect of any Zero Coupon Note upon redemption of such
Zero Coupon Note pursuant to paragraph (a), (b), (c) or (d) above or upon its becoming due and repayable as provided
in Condition 9 is improperly withheld or refused, the amount due and repayable
in respect of such Zero Coupon Note shall be the amount calculated as provided
in paragraph (e)(iii)
above as though the references therein to the date fixed for the redemption or
the date upon which such Zero Coupon Note becomes due and payable were replaced
by references to the date which is the earlier of:

	
  (i)

  	
  the date on which all amounts due in respect of such
  Zero Coupon Note have been paid; and

  
	
   

  	
   

  
	
  (ii)

  	
  five days after the date on which the full amount of
  the moneys payable has been received by the Agent or the Trustee and notice
  to that effect has been given to the Noteholders in accordance with Condition
  13.

  

7.         Taxation

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

 52
 

 

 

	
  (i)

  	
  any tax, assessment or other governmental charge
  that is imposed or withheld solely by reason of the holder of a Note, Receipt
  or Coupon (a “Holder”), or a fiduciary, settler, beneficiary, member or
  shareholder of such holder being considered as:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  being or having been present or engaged in a trade
  or business in the United States or having had a permanent establishment in
  the United States of America;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  having a current or former relationship with the
  United States of America, including a relationship as a citizen or resident
  thereof;

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  being or having been a foreign or domestic personal
  holding company, a passive foreign investment company or a controlled foreign
  corporation with respect to the United States of America or a corporation
  that has accumulated earnings to avoid United States federal income tax;

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  being or having been a “10-per cent. shareholder” of
  all classes of stock of the Issuer or, as the case may be, the Guarantor as
  defined in section 871(h)(3) of the United States Internal Revenue Code of
  1986, as amended (the “Code”) or any successor provision; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  being a bank receiving payments on an extension of
  credit made pursuant to a loan agreement entered into the ordinary course of
  its trade or business;

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
  any Holder that is not the sole beneficial owner of
  a Note, Receipt or Coupon or that is a fiduciary or partnership, but only to
  the extent that a beneficiary or settler with respect to the fiduciary, a
  beneficial owner or a member of the partnership would not have been entitled
  to the payment of an additional amount had such beneficiary, settler,
  beneficial owner or member received directly its beneficial or distributive
  share of the payment;

  
	
   

  	
   

  
	
  (iii)

  	
  any tax, assessment or other governmental charge
  that is imposed or withheld solely by reason of a failure of the Holder or
  any other person to comply with certification, identification or information
  reporting requirements concerning the nationality, residence, identity or
  connection with the United States of America of the Holder or beneficial
  owner of such Note, Receipt or Coupon, if compliance is required by statute,
  by regulation or the United States Treasury Department or by an applicable
  income tax treaty to which the United States of America is a party as a
  precondition to exemption from such tax, assessment or other governmental
  charge;

  
	
   

  	
   

  
	
  (iv)

  	
  any tax, assessment or other governmental charge
  that is imposed other than by withholding from a Note, Receipt or Coupon;

  
	
   

  	
   

  
	
  (v)

  	
  any tax, assessment or other governmental charge
  that would not have been so imposed but for the presentation or surrender by
  the Holder for payment on a date more than 30 days after the Relevant Date
  except to the extent that the Holder would have been entitled to an additional
  amount on presenting the same for payment on such thirtieth day;

  
	
   

  	
   

  
	
  (vi)

  	
  any estate, inheritance, gift, sales, excise,
  transfer, wealth or personal property tax or similar tax assessment or other
  governmental charge;

  
	
   

  	
   

  
	
  (vii)

  	
  any tax, assessment or other governmental charge
  required to be withheld by any

  

 

 53
 

 

 

	
  

  	
  paying agent from any payment of principal of or
  interest on any Note, Receipt or Coupon if such payment can be made without
  such withholding by any other paying agent;

  
	
   

  	
   

  
	
  (viii)

  	
  any tax, duty, assessment or other governmental
  charge required to be made pursuant to European Council Directive 2003/48/EC
  or any law implementing or complying with, or introduced in order to conform
  to, such Directive; or

  
	
   

  	
   

  
	
  (ix)

  	
  in the case of any combination of items (i), (ii),
  (iii), (iv), (v), (vi), (vii) and (viii).

  

As
used herein, “United States Alien” means any corporation, partnership,
individual or fiduciary that is, for United States Federal income tax purposes,
a foreign corporation, a non-resident alien individual, a non-resident
fiduciary of a foreign estate or trust, or a foreign partnership one or more of
the members of which is, for United States Federal income tax purposes, a
foreign corporation, a non-resident alien individual or a non-resident
fiduciary of a foreign estate or trust.

Notwithstanding
the above, if and so long as a certification, identification or other
information reporting requirement referred to in the third paragraph of Condition
6(b) would be fully satisfied by payment
of a backup withholding tax or similar charge, the Issuer may elect, by so
stating in the Determination Notice, to have the following provisions of this
Condition 7 apply in lieu of the provisions of the third paragraph of Condition
6(b).

In
such event, the Issuer, failing which, if applicable, the Guarantor, will pay
as additional amounts such amounts as may be necessary so that every net
payment made following the effective date of such requirements outside the United
States of America by it, the Guarantor (if applicable) or any of the Paying
Agents of principal or interest due in respect of any Note, Receipt or Coupon
of which the beneficial owner is a United States Alien (but without any
requirement that the nationality, residence or identity of such beneficial
owner be disclosed to the Issuer, any Paying Agent or any governmental
authority), after withholding or deduction for or on account of such backup
withholding tax or similar charge (other than a backup withholding tax or
similar charge which (1) is the result of a certification, identification or
other information reporting requirement which would not be applicable in the
circumstances described in the fourth paragraph of Condition 6(b) or (2) is imposed as a result of any of the circumstances
described in paragraph (i) or (v) above or any combination thereof), will not
be less than the amount provided for in such Note, Receipt or Coupon to be then
due and payable.

If
the Issuer or, if applicable, the Guarantor elects to pay such additional
amounts and so long as they are obligated to pay the same, the Issuer
nonetheless may subsequently redeem the Notes in accordance with Condition 6(b).

As
used in these Terms and Conditions, the “Relevant Date” means the date on which
a payment in respect of a Note, Receipt or Coupon first becomes due, except
that, if the full amount of the moneys payable has not been duly received by
the Agent or the Trustee on or prior to such due date, it means the date on
which, the full amount of such moneys having been so received, notice to that
effect is duly given to the Noteholders in accordance with Condition 13.

8.         Prescription

The
Notes, Receipts and Coupons will become void unless presented for payment
within a period of 10 years (in the case of principal) and five years (in the
case of interest) after the Relevant Date (as defined in Condition 7) therefor.

There
shall not be included in any Coupon sheet issued on exchange of a Talon any
Coupon the claim for payment in respect of which would be void pursuant to this
Condition or Condition 5(b) or any Talon
which would be void pursuant to Condition 5(b).

 54
 

 

9.             Events
of Default

	
  (A)

  	
  If any one or more of the following events (each an
  “Event of Default”) shall occur and is continuing, the Trustee at its
  discretion may, and if so requested in writing by the holders of at least one
  quarter in nominal amount of the Notes then outstanding or if so directed by
  an Extraordinary Resolution (as defined in the Trust Deed) of the Noteholders
  shall (subject to being indemnified and/or secured to its satisfaction), give
  notice to the Issuer that the Notes are, and they shall thereupon immediately
  become, due and repayable at their Early Redemption Amount, together with accrued
  interest as provided in the Trust Deed:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  if default is made in the payment of any principal
  or interest due in respect of the Notes or any of them and the default
  continues for a period of 30 days in the case of interest; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  if the Issuer or the Guarantor fails to perform or
  observe any of its other obligations under these Terms and Conditions or the
  Trust Deed and (except in any case where, in the opinion of the Trustee, the
  failure is incapable of remedy when no such continuation or notice as is
  hereinafter mentioned will be required) the failure continues for the period
  of 60 days next following the service by the Trustee on the Issuer or the
  Guarantor (as the case may be) of notice requiring the same to be remedied;
  or

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  if any Indebtedness for Borrowed Money of the Issuer
  or the Guarantor becomes due and repayable prematurely by reason of an event
  of default (however described) or the Issuer or the Guarantor fails to make
  any payment in respect of any Indebtedness for Borrowed Money on the due date
  for payment or any security given by the Issuer or the Guarantor for any
  Indebtedness for Borrowed Money becomes enforceable or if default is made by
  the Issuer or the Guarantor in making any payment due under any guarantee
  and/or indemnity given by it in relation to any Indebtedness for Borrowed
  Money of any other person provided that no such event shall constitute an
  Event of Default unless the relative Indebtedness for Borrowed Money either
  alone or when aggregated with other Indebtedness for Borrowed Money relative
  to all (if any) other such events which shall have occurred shall amount to
  at least U.S.$100,000,000 (or its equivalent in any other currency); or

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  the entry of a decree or order for relief in respect
  of the Issuer or the Guarantor by a court having jurisdiction in the premises
  in an involuntary case under the Federal bankruptcy laws of the United States
  of America, as now or hereafter constituted, or any other Federal or State
  bankruptcy, insolvency or other similar law, or appointing a receiver,
  liquidator, assignee, custodian, trustee, sequestrator (or other similar
  official) of the Issuer or the Guarantor or of any substantial part of its
  property, or ordering the winding up or liquidation of its affairs, and the
  continuance of any such decree or order unstayed and in effect for a period
  of 90 consecutive days; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  the commencement by the Issuer or the Guarantor of a
  voluntary case under the Federal bankruptcy laws of the United States of
  America, as now or hereafter constituted, or any other applicable Federal or
  State bankruptcy, insolvency or other similar law, or the consent by it to
  the entry of an order for relief in an involuntary case under any such law or
  to the appointment of a receiver, liquidator, assignee, custodian, trustee,
  sequestrator (or other similar official) of the Issuer or the Guarantor or of
  any substantial part of its property, or the making by it of an assignment
  for the benefit of creditors, or the admission by it in writing of its
  inability to pay its debts generally as they become due, or the taking of any
  corporate action in furtherance of any of the foregoing.

  

 

 55

 

 

	
  (B)

  	
  (1)

  	
  The Trustee may at any time, at its discretion and
  without notice, take such proceedings against the Issuer and/or the Guarantor
  as it may think fit to enforce the provisions of the Trust Deed, the Notes,
  the Receipts and the Coupons, but it shall not be bound to take any such
  proceedings or any other action in relation to the Trust Deed, the Notes, the
  Receipts or the Coupons unless (a) it shall have been so directed by an
  Extraordinary Resolution of the Noteholders or so requested in writing by the
  holders of at least one-quarter in nominal amount of the Notes then
  outstanding, and (b) it shall have been indemnified and/or secured to its
  satisfaction;

  
	
   

  	
   

  	
   

  
	
   

  	
  (2)

  	
  No Noteholder, Receiptholder or Couponholder shall
  be entitled to proceed directly against the Issuer or the Guarantor unless
  the Trustee, having become bound so to proceed, fails so to do within a
  reasonable period and the failure shall be continuing.

  

For
the purposes of this Condition, “Indebtedness for Borrowed Money” means any
present or future indebtedness (whether being principal, premium, interest or
other amounts) for or in respect of (i) money borrowed, (ii) liabilities under
or in respect of any acceptance or acceptance credit or (iii) any notes, bonds,
debentures, debenture stock, loan stock or other securities offered, issued or
distributed whether by way of public offer, private placing, acquisition
consideration or otherwise and whether issued for cash or in whole or in part
for a consideration other than cash.

10.       Replacement
of Notes, Receipts, Coupons and Talons

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

11.       Agent
and Paying Agents

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

The
Issuer and the Guarantor are entitled, with the prior written approval of the
Trustee, to vary or terminate the appointment of any Paying Agent and/or
appoint additional or other Paying Agents and/ or approve any change in the
specified office through which any Paying Agent acts, provided that:

	
  (i)

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

  
	
   

  	
   

  
	
  (ii)

  	
  there will at all times be a Paying Agent with a
  specified office in a city approved by the Trustee in continental Europe;

  
	
   

  	
   

  
	
  (iii)

  	
  there will at all times be an Agent; and

  
	
   

  	
   

  
	
  (iv)

  	
  the Issuer and the Guarantor undertake that they
  will ensure that they maintain a Paying Agent in a Member State of the
  European Union that is not obliged to withhold or deduct tax pursuant to
  European Council Directive 2003/48/EC or any law implementing or complying
  with, or introduced in order to conform to, such Directive.

  

 

 56
 

 

In addition, the Issuer and the Guarantor shall
forthwith appoint a Paying Agent having a specified office in New York City in
the circumstances described in the final paragraph of Condition 5(b). Any variation, termination, appointment or change shall
only take effect (other than in the case of insolvency, when it shall be of
immediate effect) after not less than 30 nor more than 45 days’ prior notice
thereof shall have been given to the Noteholders in accordance with Condition
13.

12.       Exchange
of Talons

On
and after the Interest Payment Date on which the final Coupon comprised in any
Coupon sheet matures, the Talon (if any) forming part of such Coupon sheet may
be surrendered at the specified office of the Agent or any other Paying Agent
in exchange for a further Coupon sheet including (if such further Coupon sheet
does not include Coupons to (and including) the final date for the payment of
interest due in respect of the Note to which it appertains) a further Talon,
subject to the provisions of Condition 8.

13.       Notices

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

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

Notices
to be given by any Noteholder shall be in writing and given by lodging the
same, together with the related Note or Notes, with the Agent. Whilst any of
the Notes is represented by a global Note, such notice may be given by any
Noteholder to the Agent via Euroclear and/or Clearstream, Luxembourg, as the
case may be, in such manner as the Agent and Euroclear and/or Clearstream,
Luxembourg, as the case may be, may approve for this purpose.

14.       Meetings
of Noteholders, Modification and Waiver

The
Trust Deed contains provisions for convening meetings of the Noteholders to
consider any matter affecting their interests, including the sanctioning by
Extraordinary Resolution of a modification of the Notes, the Receipts, the
Coupons or any of the provisions of the Trust Deed. Such a meeting may be
convened by the Issuer or the Guarantor or by Noteholders holding not less than
five per cent. in nominal amount of the Notes for the time being remaining
outstanding. The quorum at any such meeting for passing an Extraordinary
Resolution is one or more persons holding or representing not less than a clear
majority in nominal amount of the Notes for the time being outstanding, or at
any adjourned meeting one or more persons being or representing Noteholders
whatever the nominal amount of the Notes so held or represented,

 57
 

 

except that at any meeting
the business of which includes the modification of certain provisions of the
Notes, Receipts or Coupons or the Trust Deed (including modifying the date of
maturity of the Notes or any date for payment of interest thereon, reducing or
cancelling the amount of principal or the rate of interest payable in respect
of the Notes or altering the currency of payment of the Notes, Receipts or
Coupons), the quorum shall be one or more persons holding or representing not
less than two-thirds in nominal amount of the Notes for the time being
outstanding, or at any adjourned such meeting one or more persons holding or
representing not less than one-third in nominal amount of the Notes for the
time being outstanding. An Extraordinary Resolution passed at any meeting of
the Noteholders shall be binding on all the Noteholders, whether or not they
are present at the meeting, and on all Receiptholders and Couponholders.

The
Trustee may agree, without the consent of the Noteholders, Receiptholders or
Couponholders, to any modification (subject to certain exceptions) of, or to
the waiver or authorisation of any breach or proposed breach of, any of these
Terms and Conditions or any of the provisions of the Trust Deed, or determine,
without any such consent as aforesaid, that any Event of Default or Potential
Event of Default (as defined in the Trust Deed) shall not be treated as such,
which in any such case is not, in the opinion of the Trustee, materially
prejudicial to the interests of the Noteholders or may agree, without any such
consent as aforesaid, to any modification which is of a formal, minor or
technical nature or to correct a manifest error or an error which is, in the
opinion of the Trustee, proven.

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

In
connection with the exercise by it of any of its trusts, powers, authorities
and discretions (including, without limitation, any modification, waiver,
authorisation or determination), the Trustee shall have regard to the general
interests of the Noteholders as a class but shall not have regard to any
interests arising from circumstances particular to individual Noteholders,
Receiptholders or Couponholders (whatever their number) and, in particular but
without limitation, shall not have regard to the consequences of any such
exercise for individual Noteholders, Receiptholders or Couponholders (whatever
their number) resulting from their being for any purpose domiciled or resident
in, or otherwise connected with, or subject to the jurisdiction of, any
particular territory or any political sub-division thereof and the Trustee
shall not be entitled to require, nor shall any Noteholder, Receiptholder or
Couponholder be entitled to claim, from the Issuer, the Guarantor, the Trustee
or any other person any indemnification or payment in respect of any tax
consequence of any such exercise upon individual Noteholders or Couponholders
except to the extent already provided for in Condition 7 and/or any undertaking
given in addition to, or in substitution for, Condition 7 pursuant to the Trust
Deed.

15.       Further
Issues

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

16.       Consolidation,
Merger and Transfer of Assets

The
Trust Deed provides that neither the Issuer nor the Guarantor may consolidate
with, or merge into, any corporation, or transfer its assets substantially as
an entirety to any person, unless (a) the successor corporation or transferee
assumes the Issuer’s or, as the case may be, the Guarantor’s obligations in
respect of the Notes, the Receipts and the Coupons and under the Trust Deed,
(b) after giving effect to the relevant transaction, no Event of Default or
Potential Event of Default (as defined in the Trust Deed) shall have occurred
and be continuing and (c) certain other conditions set out in the Trust Deed
are complied with.

 58
 

 

17.          Redenomination

(a)            Where
redenomination is specified in the applicable Final Terms as being applicable,
the Issuer may, without the consent of the Noteholders, the Receiptholders and
the Couponholders, on giving prior notice to the Trustee, the Agent, Euroclear
and Clearstream, Luxembourg and at least 30 days’ prior notice to the
Noteholders in accordance with Condition 13, elect that, with effect from the
Redenomination Date specified in the notice, the Notes shall be redenominated
in euro.

Except
as otherwise specified in the applicable Final Terms the election will have
effect as follows:

	
  (i)

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

  
	
   

  	
   

  
	
  (ii)

  	
  if definitive Notes are required to be issued after
  the Redenomination Date, they shall be issued at the expense of the Issuer
  (i) in the case of Relevant Notes in the denomination of euro 50,000, and/or
  such higher amounts as the Agent may determine and notify to the Noteholders
  and any remaining amounts less than euro 50,000, shall be redeemed by the
  Issuer and paid to the Noteholders in euro in accordance with Condition 5;
  and (ii) in the case of Notes which are not Relevant Notes, in the denominations
  of euro 1,000, euro 10,000, euro 100,000 and (but only to the extent of any
  remaining amounts less than euro 1,000 or such smaller denominations as the
  Agent and the Trustee may approve) euro 0.01 and such other denominations as
  the Agent shall determine and notify to the Noteholders, the London Stock
  Exchange, if the Notes are listed on such exchange, and the Trustee. If such
  definitive Notes are issued they will be obtainable at the specified office
  of the Replacement Agent;

  
	
   

  	
   

  
	
  (iii)

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

  
	
   

  	
   

  
	
  (iv)

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

  
	
   

  	
   

  
	
  (v)

  	
  if issued prior to the Redenomination Date, all
  unmatured Coupons denominated in the Specified Currency (whether or not
  attached to the Notes) will become void with effect from the date on which
  the Issuer gives notice (the “Exchange Notice”) that replacement
  euro-denominated Notes, Receipts and Coupons are available for exchange
  (provided that such securities are so available) and no payments will be made
  in respect of them. The payment obligations contained in any Notes and
  Receipts so issued will

  

 

 59
 

 

 

	
  

  	
  also become void on that date although those Notes
  and Receipts will continue to constitute valid exchange obligations of the
  Issuer. New euro-denominated Notes, Receipts and Coupons will be issued in
  exchange for Notes, Receipts and Coupons denominated in the Specified
  Currency in such manner as the Agent may specify and as shall be notified to
  the Noteholders in the Exchange Notice and to the London Stock Exchange, if
  the Notes are listed on such exchange. If such new euro-denominated Notes are
  issued they will be obtainable at the specified office of the Replacement
  Agent. No Exchange Notice may be given less than 15 days prior to any date
  for payment of principal or interest on the Notes;

  
	
   

  	
   

  
	
  (vi)

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

  
	
   

  	
   

  
	
   

  	
   

  
	
  (vii)

  	
  if the Notes are Floating Rate Notes the applicable
  Final Terms specifies any relevant changes to the provisions relating to
  interest; and

  
	
   

  	
   

  
	
  (viii)

  	
  such other changes shall be made to these Terms and
  Conditions and/or the Trust Deed and/or the Agency Agreement as the Issuer
  may decide, after consultation with the Agent and with the prior written
  approval of the Trustee, and as may be specified in the notice, to conform
  them to conventions then applicable to instruments denominated in euro or to
  enable the Notes to be consolidated with one or more issues of other notes,
  whether or not originally denominated in the Specified Currency or euro. Any
  such other changes will not take effect until after they have been notified
  to the Noteholders in accordance with Condition 13. The Issuer will also
  notify the London Stock Exchange of any other such changes, if the Notes are
  listed on such exchange.

  

(b)       Definitions

In
these Conditions, the following expressions have the following meanings:

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

“euro”
means the currency introduced at the start of the third stage of European
economic and monetary union pursuant to the Treaty;

“Redenomination
Date” means (in the case of interest bearing Notes) any date for payment of
interest under the Notes or (in the case of Zero Coupon Notes) any date, in each
case specified by the Issuer in the notice given to the Noteholders pursuant to
paragraph (a) above which falls on or after the date on which the country of
the Specified Currency first participates in the third stage of European
economic and monetary union;

“Relevant
Notes” means all Notes where the applicable Final Terms provide for a minimum
Specified Denomination in the Specified Currency which is equivalent to at
least euro 50,000 and which are admitted to trading on a regulated market in
the European Economic Area; and

 60
 

 

“Treaty”
means the Treaty establishing the European Communities, as amended by the
Treaty on European Union and the Treaty of Amsterdam.

18.       Indemnification
of the Trustee and its contracting with the Issuer and the Guarantor

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

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

19.       Contracts
(Rights of Third Parties) Act 1999

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

20.       Governing
law and submission to jurisdiction

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

(b)            Each of the Issuer
and the Guarantor has in the Trust Deed agreed, for the exclusive benefit of
the Trustee, the Noteholders, the Receiptholders and the Couponholders that the
courts of England are to have jurisdiction to settle any disputes which may
arise out of or in connection with the Trust Deed, the Notes, the Receipts
and/or the Coupons and that accordingly any suit, action or proceedings
(together referred to as “Proceedings”) arising out of or in connection with
the Trust Deed, the Notes, the Receipts and/or the Coupons may be brought in
such courts.

Each
of the Issuer and the Guarantor has in the Trust Deed irrevocably waived any
objection which it may have now or hereafter to the laying of the venue of any
such Proceedings in any such court and any claim that any such Proceedings have
been brought in an inconvenient forum and has in the Trust Deed further
irrevocably agreed that a judgment in any such Proceedings brought in the
English courts shall be conclusive and binding upon it and may be enforced in
the courts of any other jurisdiction.

Nothing
contained in this Condition shall limit any right to take Proceedings against
the Issuer or the Guarantor in any other court of competent jurisdiction, nor
shall the taking of Proceedings in one or more jurisdictions preclude the
taking of Proceedings in any other jurisdiction, whether concurrently or not.

Each
of the Issuer and the Guarantor has in the Trust Deed appointed GLN
Representatives Limited at its registered office (being at 31 August, 2006 at
20th Floor, City Point, 1 Ropemaker Street, London EC2Y 9HT, England) as its
agent for service of process, and undertaken that, in the event of GLN
Representatives Limited ceasing so to act or ceasing to be registered in
England, it will appoint another person as its agent for service of process in
England in respect of any Proceedings.

Nothing
herein shall affect the right to serve proceedings in any other manner
permitted by law.

 61
 

 

AGENT

Deutsche Bank AG, London Branch

Winchester House

1 Great Winchester Street

London EC2N 2DB

OTHER PAYING AGENT

Deutsche Bank Luxembourg S.A.

2 Boulevard Konrad Adenauer

L-115 Luxembourg

Grand Duchy of
Luxembourg

 62
 

 

SCHEDULE
2

FORMS OF GLOBAL AND DEFINITIVE NOTES, RECEIPT, COUPON,
TALON AND CERTIFICATE

PART 1

FORM OF TEMPORARY GLOBAL NOTE

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

[BY
ACCEPTING THIS OBLIGATION, THE HOLDER REPRESENTS AND WARRANTS THAT IT IS NOT A
UNITED STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED IN SECTION
6049(b)(4) OF THE INTERNAL REVENUE CODE OF THE UNITED STATES AND THE
REGULATIONS THEREUNDER) AND THAT IT IS NOT ACTING FOR OR ON BEHALF OF A UNITED
STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(b)(4)
OF THE INTERNAL REVENUE CODE AND THE REGULATIONS THEREUNDER).](2)

COUNTRYWIDE FINANCIAL CORPORATION

(the
Issuer)

(incorporated
with limited liability in the State of Delaware)

Unconditionally and irrevocably guaranteed by

COUNTRYWIDE HOME LOANS, INC.

(incorporated
with limited liability in the State of New York)

TEMPORARY GLOBAL NOTE

This Note is a Temporary
Global Note in respect of a duly authorised issue of Notes of the Issuer (the Notes) of the Nominal Amount, Specified Currency(ies) and
Specified Denomination(s) as are specified in the Final Terms applicable to the
Notes (the Final Terms), a copy of which is
annexed hereto.  References herein to the
Conditions shall be to the Terms and Conditions of the Notes as set out in
Schedule 1 to the Trust Deed (as defined below) as supplemented, replaced and
modified by the Final Terms but, in the event of any conflict between the
provisions of the said Conditions and the information in the Final Terms, the
Final Terms will prevail.  Words and
expressions defined in the Conditions shall bear the same meanings when used in
this Global Note.  This Global Note is
issued subject to, and with the benefit of, the Conditions and a Trust Deed
(such Trust Deed as modified and/or supplemented and/or restated from time to
time, the Trust Deed) dated 15 August 2005 and
made between the Issuer, Countrywide Home Loans, Inc. as guarantor and Deutsche
Trustee Company Limited as trustee for the holders of the Notes.

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

(1)                                  To
appear on Notes with a maturity of more than 183 days.

(2)           To appear on Notes
with a maturity of 183 days or less.

 63
 

 

Conditions and the Trust
Deed, upon presentation and, at maturity, surrender of this Global Note to or
to the order of the Agent  or any of the
other Paying Agents located outside the United States, its territories and
possessions (except as provided in the Conditions) from time to time appointed
by the Issuer in respect of the Notes.

If the Final Terms indicate
that this Global Note is intended to be a New Global Note, the nominal amount
of Notes represented by this Global Note shall be the aggregate amount from
time to time entered in the records of both Euroclear Bank S.A./N.V. (Euroclear) and Clearstream Banking, société anonyme (Clearstream, Luxembourg and together with Euroclear, the relevant Clearing Systems).  The
records of the relevant Clearing Systems (which expression in this Global Note
means the records that each relevant Clearing System holds for its customers
which reflect the amount of each such customer’s interest in the Notes) shall
be conclusive evidence of the nominal amount of Notes represented by this
Global Note and, for these purposes, a statement issued by a relevant Clearing
System (which statement shall be made available to the bearer upon request)
stating the nominal amount of Notes represented by this Global Note at any time
shall be conclusive evidence of the records of the relevant Clearing System at
that time.

If the Final Terms indicate
that this Global Note is not intended to be a New Global Note, the nominal
amount of the Notes represented by this Global Note shall be the amount stated
in the applicable Final Terms or, if lower, the nominal amount most recently
entered by or on behalf of the Issuer in the relevant column in Part II, III,
or IV of Schedule One hereto or in Schedule Two hereto.

On any redemption of, or
payment of an instalment or interest being made in respect of, or purchase and cancellation
of, any of the Notes represented by this Global Note the Issuer shall procure
that:

(i)                                      if the Final Terms indicate that this Global Note is intended to be a
New Global Note, details of such redemption, payment or purchase and
cancellation (as the case may be) shall be entered pro rata in the records of
the relevant Clearing Systems, and, upon any such entry being made, the nominal
amount of the Notes recorded in the records of the relevant Clearing Systems
and represented by this Global Note shall be reduced by the aggregate nominal
amount of the Notes so redeemed or purchased and cancelled or by the aggregate
amount of such instalment so paid; or

(ii)                                   if the Final Terms indicate that this Global Note is not intended to be
a New Global Note, details of such redemption, payment or purchase and
cancellation (as the case may be) shall be entered by or on behalf of the
Issuer in Schedule One hereto, and the relevant space in Schedule One hereto
recording any such redemption, payment or purchase and cancellation (as the
case may be) shall be signed by or on behalf of the Issuer.  Upon any such redemption, payment of an
instalment or purchase and cancellation, the nominal amount of this Global Note
and the Notes represented by this Global Note shall be reduced by the nominal
amount of such Notes so redeemed or purchased and cancelled or the amount of
such instalment so paid.

Payments due in respect of
Notes for the time being represented by this Global Note shall be made to the
bearer of this Global Note and each payment so made will discharge the Issuer’s
obligations in respect thereof.  Any
failure to make entries referred to above shall not affect such discharge.

Payments of principal and
interest (if any) due prior to the Exchange Date (as defined below) will only
be made to the bearer hereof to the extent that there is presented to the Agent
by a relevant Clearing System , a certificate to the effect that it has
received from or in respect of a person entitled to a beneficial interest in a
particular nominal amount of the Notes represented by this Global Note (as
shown by its records) a certificate of non-US beneficial ownership in the form
provided and required by such Clearing System. 
The bearer of this Global Note will not (unless upon due presentation of
this Global Note for exchange, delivery of the appropriate number of Definitive
Notes (together, if applicable, with the Receipts, Coupons and Talons
appertaining thereto in or substantially in the forms set out in Parts 3, 4, 5
and 6 of Schedule 2 to the Trust Deed) or, as the case may be, issue and
delivery (or, as the case may be, endorsement) of the

 64
 

 

Permanent Global Note is
improperly withheld or refused and such withholding or refusal is continuing at
the relevant payment date) be entitled to receive any payment hereon due on or
after the Exchange Date.

On or after the date (the Exchange Date) which is 40 days after the Issue Date, this
Global Note may be exchanged (free of charge) in whole or in part for, as
specified in the Final Terms, either (a) Definitive Notes and (if applicable)
Receipts, Coupons and/or Talons (on the basis that all the appropriate details
have been included on the face of such Definitive Notes and (if applicable)
Receipts, Coupons and/or Talons and the relevant information supplementing,
replacing or modifying the Conditions appearing in the Final Terms has been
endorsed on or attached to such Definitive Notes) or (b) either (if the Final
Terms indicate that this Global Note is intended to be a New Global Note)
interests recorded in the records of the relevant Clearing Systems in a
Permanent Bearer Global Note or (if the Final Terms indicate that this Global
Note is not intended to be a New Global Note) a Permanent Bearer Global Note,
which, in either case, is in or substantially in the form set out in Part 2 of
Schedule 2 to the Trust Deed (together with the Final Terms attached thereto),
and furthermore in each case upon notice being given by a relevant Clearing
System acting on the instructions of any holder of an interest in this Global
Note.

If Definitive Notes and (if
applicable) Receipts, Coupons and/or Talons have already been issued in
exchange for all the Notes represented for the time being by the Permanent
Global Note, then this Global Note may only thereafter be exchanged for
Definitive Notes and (if applicable) Receipts, Coupons and/or Talons pursuant
to the terms hereof.  This Global Note
may be exchanged by the bearer hereof on any day (other than a Saturday or
Sunday) on which banks are open for general business in London.

The Issuer shall procure
that Definitive Notes or (as the case may be) interests in the Permanent Global
Note shall be issued and delivered and (in the case of the Permanent Global
Note where the Final Terms indicates that this Global Note is intended to be a
New Global Note) interests in the Permanent Global Note shall be recorded in
the records of the relevant Clearing Systems in exchange for only that portion
of this Global Note in respect of which there shall have been presented to the
Agent by the relevant Clearing System, a certificate to the effect that it has
received from or in respect of a person entitled to a beneficial interest in a
particular nominal amount of the Notes represented by this Global Note (as
shown by its records) a certificate of non-US beneficial ownership in the form
provided and required by such Clearing System.

On an exchange of the whole
of this Global Note, this Global Note shall be surrendered to or to the order
of the Agent. On an exchange of part only of this Global Note, the Issuer shall
procure that:

(i)                                      if the Final Terms indicate that this Global Note is intended to be a
New Global Note, details of such exchange shall be entered pro rata in the
records of the relevant Clearing Systems such that the nominal amount of Notes
represented by this Global Note shall be reduced by the nominal amount of this
Global Note so exchanged; or

(ii)                                   if the Final Terms indicate that this Global Note is not intended to be
a New Global Note, details of such exchange shall be entered by or on behalf of
the Issuer in Schedule Two hereto, and the relevant space in Schedule Two
hereto recording such exchange shall be signed by or on behalf of the Issuer,
whereupon the nominal amount of this Global Note and the Notes represented by
this Global Note shall be reduced by the nominal amount of this Global Note so
exchanged.  On any exchange of this
Global Note for a Permanent Global Note, details of such exchange shall also be
entered by or on behalf of the Issuer in Schedule Two to the Permanent Global
Note and the relevant space in Schedule Two to the Permanent Global Note
recording such exchange shall be signed by or on behalf of the Issuer.

Until the exchange of the
whole of this Global Note, the bearer of this Global Note shall in all respects
(except as otherwise provided herein) be entitled to the same benefits as if he
were the bearer of Definitive Notes and the relative Receipts, Coupons and/or
Talons (if any) in the form(s) set out in Parts 3, 4, 5 and 6 (as applicable)
of Schedule 2 to the Trust Deed.

 65

 

 

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

This Global Note is governed
by, and shall be construed in accordance with, English law.

This Global Note shall not
be valid unless authenticated by Deutsche Bank AG, London Branch as Agent and,
if the Final Terms indicate that this Global Note is intended to be a New
Global Note (i) which is intended to be held in a manner which would allow
Eurosystem eligibility or (ii) in respect of which the Issuer has notified the
Agent that effectuation is to be applicable, effectuated by the entity
appointed as Common Safekeeper by the relevant Clearing System.

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

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

COUNTRYWIDE FINANCIAL CORPORATION

	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Duly
  Authorised

  	
  Duly
  Authorised

  
	
  Authenticated without recourse, warranty

  	
   

  
	
  or liability by Deutsche Bank AG, London

  	
   

  
	
  Branch as Agent.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Authorised
  Officer

  	
   

  
	
   

  	
   

  
	
  [Effectuated without recourse,

  	
   

  
	
  warranty or liability by

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  as Common Safekeeper

  	
   

  
	
   

  	
   

  
	
  By:

  	
  ](1)

  

(1)           This should only be completed where the final Terms
indicates that this Global Note is intended to be a New Global Note.

 

 66
 

 

 

Schedule One*

PART I

INTEREST PAYMENTS

	
  Date made

  	
   

  	
  Interest Payment

  Date

  	
   

  	
  Total amount of

  interest payable

  	
   

  	
  Amount of

  interest paid

  	
   

  	
  Confirmation of

  payment by or

  on behalf of the

  Issuer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

*             Schedule One should only be completed
where the Final Terms indicates that this Global Note is not intended to be a
New Global Note.

 

 67
 

 

 

PART II

PAYMENT OF INSTALMENT AMOUNTS

	
  Date

  made

  	
   

  	
  Total amount of

  Instalment

  Amounts payable

  	
   

  	
  Amount of

  Instalment

  Amounts paid

  	
   

  	
  Remaining

  nominal amount

  of this Global

  Note following

  such payment*

  	
   

  	
  Confirmation of

  payment by or on

  behalf of the

  Issuer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

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

 

 68
 

 

 

PART III

REDEMPTIONS

	
  Date

  made

  	
   

  	
  Total amount

  of principal

  payable

  	
   

  	
  Amount of

  principal paid

  	
   

  	
  Remaining nominal

  amount of this

  Global Note

  following such

  redemption*

  	
   

  	
  Confirmation of

  redemption by or on

  behalf of the Issuer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

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

 

 69
 

 

 

PART IV

PURCHASES AND CANCELLATIONS

	
  Date

  made

  	
   

  	
  Part of nominal amount

  of this Global Note

  purchased and cancelled

  	
   

  	
  Remaining nominal

  amount of this Global

  Note following such

  purchase and

  cancellation*

  	
   

  	
  Confirmation of

  purchase and

  cancellation by or on

  behalf of the Issuer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

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

 

 70
 

 

 

Schedule Two*

EXCHANGES

FOR DEFINITIVE NOTES OR PERMANENT GLOBAL NOTE

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

	
  Date

  made

  	
   

  	
  Nominal amount of this

  Global Note exchanged

  for Definitive Notes or a

  part of a Permanent

  Global Note

  	
   

  	
  Remaining nominal

  amount of this Global

  Note following such

  exchange*

  	
   

  	
  Notation made by or on

  behalf of the Issuer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

*                                       Schedule
Two should only be completed where the Final Terms indicates that this Global
Note is not intended to be a New Global Note.

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

 

 71
 

 

 

PART 2

FORM OF PERMANENT GLOBAL NOTE

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

[BY
ACCEPTING THIS OBLIGATION, THE HOLDER REPRESENTS AND WARRANTS THAT IT IS NOT A
UNITED STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED IN SECTION
6049(b)(4) OF THE INTERNAL REVENUE CODE OF THE UNITED STATES AND THE
REGULATIONS THEREUNDER) AND THAT IT IS NOT ACTING FOR OR ON BEHALF OF A UNITED
STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(b)(4)
OF THE INTERNAL REVENUE CODE AND THE REGULATIONS THEREUNDER).](2)

COUNTRYWIDE
FINANCIAL CORPORATION

(the Issuer)

(incorporated
with limited liability in the State of Delaware)

Unconditionally and irrevocably guaranteed by

COUNTRYWIDE HOME LOANS, INC.

(incorporated
with limited liability in the State of New York)

PERMANENT GLOBAL NOTE

This Note is a Permanent
Global Note in respect of a duly authorised issue of Notes of the Issuer (the Notes) of the Nominal Amount, Specified Currency(ies) and
Specified Denomination(s) as are specified in the Final Terms applicable to the
Notes (the Final Terms), a copy of which is
annexed hereto.  References herein to the
Conditions shall be to the Terms and Conditions of the Notes as set out in
Schedule 1 to the Trust Deed (as defined below) as supplemented, replaced and
modified by the Final Terms but, in the event of any conflict between the
provisions of the said Conditions and the information in the Final Terms, the
Final Terms will prevail.  Words and
expressions defined in the Conditions shall bear the same meanings when used in
this Global Note.  This Global Note is issued
subject to, and with the benefit of, the Conditions and a Trust Deed (such
Trust Deed as modified and/or supplemented and/or restated from time to time,
the Trust  Deed)
dated 15 August 2005 and made between the Issuer, Countrywide Home Loans, Inc.
as guarantor and Deutsche Trustee Company Limited as trustee for the holders of
the Notes.

The Issuer, subject to and
in accordance with the Conditions and the Trust Deed, promises to pay to the
bearer hereof on each Instalment Date (if the Notes are repayable in
instalments) and on the Maturity Date and/or on such earlier date(s) as all or
any of the Notes represented by this Global Note may become due and repayable
in accordance with the Conditions and the Trust Deed, the amount payable under
the Conditions in respect of such Notes on each such date and to pay interest
(if any) on the nominal amount of the Notes from time to time represented by
this Global Note calculated and payable as provided in the Conditions and the
Trust Deed together with any other sums payable under the Conditions and the
Trust Deed, upon presentation and, at maturity, surrender of this Global Note
to or to the order of the Agent  or any
of the other Paying Agents located outside the United States, its territories
and possessions (except as provided in the Conditions) from time to time
appointed by the Issuer in respect of the Notes.

(1)
          To appear on Notes with a
maturity of more than 183 days.

(2)                                  To
appear on Notes with a maturity of 183 days or less.

 

 72
 

 

If the Final Terms indicate that this Global Note is intended to be a
New Global Note, the nominal amount of Notes represented by this Global Note
shall be the aggregate amount from time to time entered in the records of both
Euroclear Bank S.A./N.V. (Euroclear) and
Clearstream Banking, société anonyme (Clearstream, Luxembourg
and together with Euroclear, the relevant Clearing
Systems).  The records of the
relevant Clearing Systems (which expression in this Global Note means the
records that each relevant Clearing System holds for its customers which
reflect the amount of each such customer’s interest in the Notes) shall be
conclusive evidence of the nominal amount of Notes represented by this Global
Note and, for these purposes, a statement issued by a relevant Clearing System
(which statement shall be made available to the bearer upon request) stating
the nominal amount of Notes represented by this Global Note at any time shall
be conclusive evidence of the records of the relevant Clearing Systems at that
time.

If the Final Terms indicate
that this Global Note is not intended to be a New Global Note, the nominal
amount of the Notes represented by this Global Note shall be the amount stated
in the applicable Final Terms or, if lower, the nominal amount most recently
entered by or on behalf of the Issuer in the relevant column in Part II, Part
III, or Part IV of Schedule One hereto or in Schedule Two hereto.

On any redemption of, or
payment of an instalment or interest being made in respect of, or purchase and
cancellation of, any of the Notes represented by this Global Note the Issuer
shall procure that:

(i)                                    if the Final Terms indicate that this Global Note is intended to be a
New Global Note, details of such redemption, payment or purchase and
cancellation (as the case may be) shall be entered pro rata in the records of
the relevant Clearing Systems and, upon any such entry being made, the nominal
amount of the Notes recorded in the records of the relevant Clearing Systems
and represented by this Global Note shall be reduced by the aggregate nominal
amount of the Notes so redeemed or purchased and cancelled or by the aggregate
amount of such instalment so paid; or

(ii)                                 if the Final Terms indicate that this Global Note is not intended to be
a New Global Note, details of such redemption, payment or purchase and
cancellation (as the case may be) shall be entered by or on behalf of the
Issuer in Schedule One hereto, and the relevant space in Schedule One hereto
recording any such redemption, payment or purchase and cancellation (as the
case may be) shall be signed by or on behalf of the Issuer.  Upon any such redemption, payment of an
instalment or purchase and cancellation, the nominal amount of this Global Note
and the Notes represented by this Global Note shall be reduced by the nominal
amount of such Notes so redeemed or purchased and cancelled or the amount of
such instalment so paid.

Payments due in respect of
Notes for the time being represented by this Global Note shall be made to the
bearer of this Global Note and each payment so made will discharge the Issuer’s
obligations in respect thereof and any failure to make entries referred to
above shall not affect such discharge.

If the Notes represented by
this Global Note were, on issue, represented by a Temporary Global Note then on
any exchange of such Temporary Global Note for this Global Note or any part
hereof, the Issuer shall procure that:

(iii)                              if the Final Terms indicate that this Global Note is intended to be a
New Global Note, details of such exchange shall be entered in the records of
the relevant Clearing Systems such that the nominal amount of Notes represented
by this Global Note shall be increased by the nominal amount of the Temporary
Global Note so exchanged; or

(iv)                                             if the Final Terms
indicate that this Global Note is not intended to be a New Global Note, details
of such exchange shall be entered by or on behalf of the Issuer in Schedule Two
hereto, and the relevant space in Schedule Two hereto recording such exchange
shall be signed by or on behalf of the Issuer, whereupon the nominal amount of
this Global Note and the Notes represented by this Global Note shall be
increased by the nominal amount of the Temporary Global Note so exchanged.

 

 73
 

 

 

In certain circumstances further notes may be issued
which are intended on issue to be consolidated and form a single Series with
the Notes.  In such circumstances the
Issuer shall procure that:

(i)                                    if the applicable Final Terms indicate that this Global Note is intended
to be a New Global Note, details of such further notes may be entered in the
records of the relevant Clearing Systems such that the nominal amount of this
Global Note and the Notes represented by this Global Note may be increased by
the amount of such further notes so issued; or

(ii)                                                 if the applicable
Final Terms indicate that this Global Note is not intended to be a New Global
Note, shall be entered by or on behalf of the Issuer in Schedule Two hereto,
and the relevant space in Schedule Two recording such exchange shall be signed
by or on behalf of the Issuer, whereupon the nominal amount of this Global Note
and the Notes represented by this Global Note shall be increased by the nominal
amount of any further Temporary Global Note so exchanged.

This Global Note may be
exchanged (free of charge) in whole, but not in part, for Definitive Notes and
(if applicable) Receipts, Coupons and/or Talons in or substantially in the
forms set out in Parts 3, 4, 5 and 6 of Schedule 2 to the Trust Deed (on the
basis that all the appropriate details have been included on the face of such
Definitive Notes and (if applicable) Receipts, Coupons and/or Talons and the relevant
information supplementing, replacing or modifying the Conditions appearing in
the Final Terms has been endorsed on or attached to such Definitive Notes)
either, as specified in the applicable Final Terms:

(i)                                    upon not less than 60 days’ written notice being given to the Agent by
the relevant Clearing System   (acting on
the instructions of any holder of an interest in this Global Note) or the
Trustee; or

(ii)                                 in the case of Notes with a maturity of 183 days or less only upon the
occurrence of an Exchange Event.

An Exchange Event means:

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

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

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

Upon the occurrence of an Exchange Event:

(i)                                    the Issuer will promptly give notice to Noteholders in accordance with
Condition 13 upon the occurrence of such Exchange Event; and

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

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

 74
 

 

 

Any such exchange as aforesaid will be made by the
bearer of this Global Note on any day other than a Saturday or a Sunday on
which banks are open for business in London.

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

Until the exchange of the
whole of this Global Note as aforesaid, the bearer hereof shall (subject as provided
in the next paragraph) in all respects be entitled to the same benefits as if
he were the bearer of Definitive Notes and the relative Receipts, Coupons
and/or Talons (if any) in the form(s) set out in Parts 3, 4, 5 and 6 (as
applicable) of Schedule 2 to the Trust Deed.

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

This Global Note is governed
by, and shall be construed in accordance with, English law.

This Global Note shall not
be valid unless authenticated by Deutsche Bank AG, London Branch as Agent and,
if the Final Terms indicate that this Global Note is intended to be a New
Global Note (i) which is intended to be held in a manner which would allow
Eurosystem eligibility or (ii) in respect of which the Issuer has notified the
Agent that effectuation is to be applicable, effectuated by the entity
appointed as Common Safekeeper by the relevant Clearing Systems.

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

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

COUNTRYWIDE FINANCIAL CORPORATION

	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Duly
  Authorised

  	
  Duly
  Authorised

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Authenticated without recourse, warranty or
  liability by

  	
   

  
	
  Deutsche Bank AG, London Branch

  	
   

  
	
  as Agent.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Authorised
  Officer

  	
   

  
	
   

  	
   

  
	
  [Effectuated without recourse,

  	
   

  
	
  warranty or liability by

  	
   

  
	
   

  	
   

  
	
  as Common Safekeeper

  	
   

  
	
  By:

  	
   

  	
  ](1)

  	
   

  	
   

  
										

(1) This should only be completed where the final Terms indicate that
this Global Note is intended to be a New Global Note.

 

 75

 

Schedule One*

PART I

INTEREST PAYMENTS

	
  Date made

  	
   

  	
  Interest Payment

  Date

  	
   

  	
  Total amount of

  interest payable

  	
   

  	
  Amount of

  interest paid

  	
   

  	
  Confirmation of

  payment by or

  on behalf of the

  Issuer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

*                    Schedule One
should only be completed where the Final Terms indicate that this Global Note
is not intended to be a New Global Note.

 76
 

 

PART II

PAYMENT OF INSTALMENT AMOUNTS

	
  Date

  made

  	
   

  	
  Total amount

  of Instalment

  Amounts payable

  	
   

  	
  Amount of

  Instalment

  Amounts paid

  	
   

  	
  Remaining

  nominal amount

  of this Global

  Note following

  such payment*

  	
   

  	
  Confirmation of

  payment by or on

  behalf of the Issuer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

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

 77
 

 

PART III

REDEMPTIONS

	
  Date

  made

  	
   

  	
  Total amount

  of principal

  payable

  	
   

  	
  Amount of

  principal paid

  	
   

  	
  Remaining nominal

  amount of this

  Global Note

  following such

  redemption*

  	
   

  	
  Confirmation of

  redemption by or on

  behalf of the Issuer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

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

 78
 

 

PART IV

PURCHASES AND CANCELLATIONS

	
  Date

  made

  	
   

  	
  Part of nominal amount

  of this Global Note

  purchased and cancelled

  	
   

  	
  Remaining nominal

  amount of this Global

  Note following such

  purchase and

  cancellation*

  	
   

  	
  Confirmation of

  purchase and

  cancellation by or on

  behalf of the Issuer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

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

 79
 

 

Schedule Two*

EXCHANGES

	
  Date made

  	
   

  	
  Nominal amount of

  Temporary Global Note

  exchanged for this

  Global Note

  	
   

  	
  Increased nominal

  amount of this Global

  Note following such

  exchange*

  	
   

  	
  Notation made by or

  on behalf of the

  Issuer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

*                                         Schedule
Two should only be completed where the Final Terms indicate that this Global
Note is not intended to be a New Global Note.

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

 80
 

 

PART 3

FORM OF DEFINITIVE NOTE

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

[BY
ACCEPTING THIS OBLIGATION, THE HOLDER REPRESENTS AND WARRANTS THAT IT IS NOT A
UNITED STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED IN SECTION
6049(b)(4) OF THE INTERNAL REVENUE CODE OF THE UNITED STATES AND THE
REGULATIONS THEREUNDER) AND THAT IT IS NOT ACTING FOR OR ON BEHALF OF A UNITED
STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(b)(4)
OF THE INTERNAL REVENUE CODE AND THE REGULATIONS THEREUNDER).](2)

COUNTRYWIDE
FINANCIAL CORPORATION

(the Issuer)

(incorporated
with limited liability in the State of Delaware)

Unconditionally and irrevocably guaranteed by

COUNTRYWIDE HOME LOANS, INC.

(incorporated
with limited liability in the State of New York)

[Specified Currency and Nominal
Amount of Tranche]

NOTES DUE

[Year of
Maturity]

This Note is one of a Series
of Notes of [Specified Currency(ies) and Specified Denomination(s)] each of the
Issuer (Notes). 
References herein to the Conditions shall be to the Terms and Conditions
[endorsed hereon/set out in Schedule 1 to the Trust Deed (as defined below)
which shall be incorporated by reference herein and have effect as if set out
herein] as supplemented, replaced and modified by the relevant information
(appearing in the Final Terms (the Final Terms))
endorsed hereon but, in the event of any conflict between the provisions of the
said Conditions and such information in the Final Terms, such information will
prevail.  Words and expressions defined
in the Conditions shall bear the same meanings when used in this Note.  This Note is issued subject to, and with the
benefit of, the Conditions and a Trust Deed (such Trust Deed as modified and/or
supplemented and/or restated from time to time, the Trust Deed)
dated 15 August 2005 and made between the Issuer, Countrywide Home Loans, Inc.
as guarantor and Deutsche Trustee Company Limited as trustee for the holders of
the Notes.

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

This Note shall not be valid
unless authenticated by Deutsche Bank AG, London Branch as Agent.

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

(1)                                  To appear on all Notes with a maturity of more than 183 days.

(2)                                  To appear on all Notes with a maturity of 183 days or less.

 81
 

 

COUNTRYWIDE FINANCIAL CORPORATION

	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Duly Authorised

  	
  Duly
  Authorised

  
	
   

  	
   

  
	
  Authenticated without
  recourse, warranty or liability by

  	
   

  
	
  Deutsche Bank
  AG, London Branch

  	
   

  
	
  as Agent.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Authorised Officer

  	
   

  
								

 

 82
 

 

[Conditions]

[Conditions to be as set out
in Schedule 1 to this Trust Deed or such other form as may be agreed between
the Issuer, the Agent, the Trustee and the relevant Dealer(s), but shall not be
endorsed if not required by the relevant Stock Exchange]

 83
 

 

Final Terms

[Here to be set out the text of the relevant
information supplementing,

replacing or modifying the Conditions which appears
in the

Final Terms relating
to the Notes]

 84

 

PART 4

FORM OF RECEIPT

COUNTRYWIDE
FINANCIAL CORPORATION

[Specified
Currency and Nominal Amount of Tranche]

NOTES DUE

[Year of Maturity]

Series No.
[       ]

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

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

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

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

[BY ACCEPTING THIS
OBLIGATION, THE HOLDER REPRESENTS AND WARRANTS THAT IT IS NOT A UNITED STATES
PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(b)(4) OF THE
INTERNAL REVENUE CODE OF THE UNITED STATES AND THE REGULATIONS THEREUNDER) AND
THAT IT IS NOT ACTING FOR OR ON BEHALF OF A UNITED STATES PERSON (OTHER THAN AN
EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(b)(4) OF THE INTERNAL REVENUE CODE
AND THE REGULATIONS THEREUNDER).](2)

(1)             To appear on all
Receipts appertaining to Notes with a maturity of more than 183 days.

(2)             To
appear on all Receipts appertaining to Notes with a maturity of 183 days or
less.

 85
 

 

PART 5

FORM OF COUPON

On
the front:

COUNTRYWIDE FINANCIAL CORPORATION

[Specified
Currency and Nominal Amount of Tranche]

NOTES DUE

[Year of Maturity]

Series No.
[       ]

[Coupon
appertaining to a Note in the denomination of [Specified Currency and Specified
Denomination]].(1)

Part A

[For Fixed Rate Notes:

	
  This
  Coupon is payable to bearer, separately 

  negotiable and subject to the Terms and 

  Conditions of the said Notes.

  	
  Coupon for 

  [          ] 

  due on [       ],
  [      ]]

  

 

Part B

[For Floating Rate Notes or Indexed Interest Notes:

Coupon
for the amount due in accordance with

the Terms and Conditions endorsed on,

attached to or incorporated by reference

into the said Notes on [the Interest Payment

Date falling in [     ]
[     ]/[   ]].

This
Coupon is payable to bearer, separately

negotiable and subject to such Terms and

Conditions, under which it may become void

before its due date.]

[ANY UNITED STATES PERSON
(AS DEFINED IN THE INTERNAL REVENUE CODE OF THE UNITED STATES) WHO HOLDS THIS
OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX
LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE
INTERNAL REVENUE CODE.](2)

[BY ACCEPTING THIS
OBLIGATION, THE HOLDER REPRESENTS AND WARRANTS THAT IT IS NOT A UNITED STATES
PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(b)(4) OF THE
INTERNAL REVENUE CODE OF THE UNITED STATES AND THE REGULATIONS THEREUNDER) AND
THAT IT IS NOT ACTING FOR OR ON BEHALF OF A UNITED STATES PERSON (OTHER THAN AN
EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(b)(4) OF THE INTERNAL REVENUE CODE
AND THE REGULATIONS THEREUNDER).](3)

(1)             Delete where the
Notes are all of the same denomination.

(2)             To appear on all
Coupons appertaining to Notes with a maturity of more than 183 days.

(1)             To appear on all Coupons appertaining to
Notes with a maturity of 183 days or less.

 86
 

 

PART 6

FORM OF TALON

On
the front:

COUNTRYWIDE FINANCIAL
CORPORATION

[Specified
Currency and Nominal Amount of Tranche]

NOTES DUE

[Year of Maturity]

Series No.
[       ]

[Talon appertaining to a Note in the denomination of
[Specified Currency and Specified Denomination]] (1).

On and after
[              ]
further Coupons [and a further Talon](2) appertaining to the Note to which this
Talon appertains will be issued at the specified office of any of the Paying
Agents set out on the reverse hereof (and/or any other or further Paying Agents
and/or specified offices as may from time to time be duly appointed and
notified to the Noteholders) upon production and surrender of this Talon.

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

[ANY UNITED STATES PERSON
(AS DEFINED IN THE INTERNAL REVENUE CODE OF THE UNITED STATES) WHO HOLDS THIS
OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX
LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE
INTERNAL REVENUE CODE.](3)

[BY ACCEPTING THIS
OBLIGATION, THE HOLDER REPRESENTS AND WARRANTS THAT IT IS NOT A UNITED STATES
PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(b)(4) OF THE
INTERNAL REVENUE CODE OF THE UNITED STATES AND THE REGULATIONS THEREUNDER) AND
THAT IT IS NOT ACTING FOR OR ON BEHALF OF A UNITED STATES PERSON (OTHER THAN AN
EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(b)(4) OF THE INTERNAL REVENUE CODE
AND THE REGULATIONS THEREUNDER).](4)

(1)             Delete where the
Notes are all of the same denomination.

(2)             Not required on last
Coupon sheet.

(3)             [To appear on all
Talons appertaining to Notes with a maturity of more than 183 days.]

(4)             [To appear on all Talons appertaining to
Notes with a maturity of 183 days or less.]

 87
 

 

On
the back of Receipts, Coupons and Talons:

AGENT

DEUTSCHE
BANK AG, LONDON BRANCH

Winchester
House

1 Great Winchester Street

London EC2N 2DB

OTHER PAYING AGENT

Deutsche Bank Luxembourg S.A.

2, Boulevard Konrad Adenauer

L-1115 Luxembourg

Grand Duchy of Luxembourg

 88
 

 

SCHEDULE 3

PROVISIONS FOR
MEETINGS OF NOTEHOLDERS

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

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

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

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

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

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

(ii)                                  block
voting instruction shall mean a dated English language document issued
by a Paying Agent in which:

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

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

(2)                                  the surrender to
the Paying Agent not less than 48 hours before the time for which such
meeting or any adjourned such meeting is convened of the receipt issued by such
Paying Agent in respect of each such deposited Note which is to be released or
(as the case may require) the Note or Notes ceasing with the agreement of the
Paying Agent to be held to its order or under its control or so blocked and the
giving of notice by the Paying Agent to the Issuer in accordance with
paragraph 17 hereof of the necessary amendment to the block voting
instruction;

 89
 

 

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

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

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

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

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

(B)                                A holder of a
Note (whether in definitive form or represented by a Global Note) may obtain a
voting certificate in respect of such Note from a Paying Agent or require a
Paying Agent to issue a block voting instruction in respect of such Note by
depositing such Note with such Paying Agent or (to the satisfaction of such
Paying Agent) by such Note being held to its order or under its control or
being blocked in an account with a clearing system, in each case not less than
48 hours before the time fixed for the relevant meeting and on the terms set
out in subparagraph (A)(i)(a) or (A)(ii)(a) above (as the case may be), and (in
the case of a block voting instruction) instructing such Paying Agent to the
effect set out in subparagraph (A)(ii)(b) above.  The holder of any voting certificate or the
proxies named in any block voting instruction shall for all purposes in
connection with the relevant meeting or adjourned meeting of Noteholders be
deemed to be the holder of the Notes to which such voting certificate or block
voting instruction relates and the Paying Agent with which such Notes have been
deposited or the person holding the same to the order or under the control of
such Paying Agent or the clearing system in which such Notes have been blocked
shall be deemed for such purposes not to be the holder of those Notes.

 90
 

 

2.                                       The Issuer, the
Guarantor or the Trustee may at any time and the Issuer shall upon a
requisition in writing in the English language signed by the holders of not
less than five per cent. in nominal amount of the Notes for the time being
outstanding, convene a meeting of the Noteholders and if the Issuer makes
default for a period of seven days in convening such a meeting the same may be
convened by the Trustee or the requisitionists. 
Every such meeting shall be held at such time and place as the Trustee
may appoint or approve.

3.                                       At least
21 days’ notice (exclusive of the day on which the notice is given and the
day on which the meeting is to be held) specifying the place, day and hour of
meeting shall be given to the holders of the relevant Notes prior to any
meeting of such holders in the manner provided by Condition 13.  Such notice, which shall be in the English
language, shall state generally the nature of the business to be transacted at
the meeting thereby convened but (except for an Extraordinary Resolution) it
shall not be necessary to specify in such notice the terms of any resolution to
be proposed.  Such notice shall include
statements, if applicable, to the effect that Notes may, not less than 48 hours
before the time fixed for the meeting, be deposited with Paying Agents or (to
their satisfaction) held to their order or under their control or blocked in an
account with a clearing system for the purpose of obtaining voting certificates
or appointing proxies.  A copy of the
notice shall be sent by post to the Trustee (unless the meeting is convened by
the Trustee), to the Issuer (unless the meeting is convened by the Issuer) and
to the Guarantor (unless the meeting is convened by the Guarantor).

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

5.                                       At any such
meeting one or more persons present holding Definitive Notes or voting
certificates or being proxies and holding or representing in the aggregate not
less than one-twentieth of the nominal amount of the Notes for the time being
outstanding shall (except for the purpose of passing an Extraordinary
Resolution) form a quorum for the transaction of business and no business
(other than the choosing of a Chairman) shall be transacted at any meeting
unless the requisite quorum be present at the commencement of the relevant
business.  The quorum at any such meeting
for passing an Extraordinary Resolution shall (subject as provided below) be
one or more persons present holding Definitive Notes or voting certificates or
being proxies and holding or representing in the aggregate a clear majority in
nominal amount of the Notes for the time being outstanding PROVIDED THAT at any
meeting the business of which includes any of the following matters (each of
which shall, subject only to Clause 19(B)(ii), only be capable of being
effected after having been approved by Extraordinary Resolution) namely:

(i)                                     reduction or
cancellation of the amount payable or, where applicable, modification, except
where such modification is in the opinion of the Trustee bound to result in an
increase, of the method of calculating the amount payable or modification of
the date of payment or, where applicable, of the method of calculating the date
of payment in respect of any principal or interest in respect of the Notes;

(ii)                                  alteration of the
currency in which payments under the Notes, Receipts and Coupons are to be
made;

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

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

 91
 

 

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

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

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

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

8.                                       Every question
submitted to a meeting shall be decided in the first instance by a show of
hands and in case of equality of votes the Chairman shall both on a show of
hands and on a poll have a casting vote in addition to the vote or votes (if
any) to which he may be entitled as a Noteholder or as a holder of a voting
certificate or as a proxy.

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

10.                                 Subject to
paragraph 12 below, if at any such meeting a poll is so demanded it shall
be taken in such manner and subject as hereinafter provided either at once or
after an adjournment as the Chairman 

 92
 

 

directs and the result of such poll shall be deemed to be the resolution
of the meeting at which the poll was demanded as at the date of the taking of
the poll.  The demand for a poll shall
not prevent the continuance of the meeting for the transaction of any business
other than the motion on which the poll has been demanded.

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

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

13.                                 The Trustee and
its lawyers and any director, officer or employee of a corporation being a
trustee of these presents and any director or officer of the Issuer or, as the
case may be, the Guarantor and its or their lawyers and any other person
authorised so to do by the Trustee may attend and speak at any meeting.  Save as aforesaid, but without prejudice to
the proviso to the definition of “outstanding” in Clause 1, no person
shall be entitled to attend and speak, nor shall any person be entitled to vote
at any meeting of Noteholders or join with others in requesting the convening
of such a meeting or to exercise the rights conferred on Noteholders by
Condition 9 unless he either produces the Definitive Note or Definitive
Notes of which he is the holder or a voting certificate or is a proxy.  No person shall be entitled to vote at any
meeting in respect of Notes held by, for the benefit of, or on behalf of, the
Issuer, the Guarantor or any other Subsidiary of the Issuer.  Nothing herein shall prevent any of the
proxies named in any block voting instruction from being a director, officer or
representative of or otherwise connected with the Issuer or the Guarantor.

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

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

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

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

15.                                 The proxies named
in any block voting instruction need not be Noteholders.

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

 93
 

 

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

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

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

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

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

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

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

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

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

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

(I)                                    Power to sanction
any scheme or proposal for the exchange or sale of the Notes for or the
conversion of the Notes into or the cancellation of the Notes in consideration
of shares, stock, notes, bonds, debentures, debenture stock and/or other
obligations and/or securities of the Issuer or any other company formed or to
be formed, or for or into or in consideration of cash, or partly for or into or
in consideration of such shares, stock, notes, bonds, debentures, debenture
stock and/or other obligations and/or securities as aforesaid and partly for or
into or in consideration of cash and for the appointment of some person with
power on behalf of the Noteholders to execute an instrument of transfer of the
Registered Notes held by them in favour of the persons with or to whom the
Notes are to be exchanged or sold respectively.

 94
 

 

19.                                 Any resolution
passed at a meeting of the Noteholders duly convened and held in accordance
with these presents shall be binding upon all the Noteholders whether present
or not present at such meeting and whether or not voting and upon all
Receiptholders and Couponholders and each of them shall be bound to give effect
thereto accordingly and the passing of any such resolution shall be conclusive
evidence that the circumstances justify the passing thereof.  Notice of the result of the voting on any
resolution duly considered by the Noteholders shall be published in accordance
with Condition 13 by the Issuer within 14 days of such result being
known PROVIDED THAT the non-publication of such notice shall not invalidate
such result.

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

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

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

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

(ii)                                  a resolution
which in the opinion of the Trustee affects the Notes of more than one Series
but does not give rise to a conflict of interest between the holders of Notes
of any of the Series so affected shall be deemed to have been duly passed if
passed at a single meeting of the holders of the Notes of all the Series so
affected;

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

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

(B)                                If the Issuer
shall have issued and have outstanding Notes which are not denominated in U.S.
dollars in the case of any meeting of holders of Notes of more than one
currency the principal amount of such Notes shall (i) for the purposes of
paragraph 2 above be the equivalent in U.S. dollars at the spot rate of a
bank nominated by the Trustee for the 

 95
 

 

conversion of the relevant currency or currencies into U.S. dollars on
the seventh dealing day prior to the day on which the requisition in writing is
received by the Issuer and (ii) for the purposes of paragraphs 5, 6
and 14 above (whether in respect of the meeting or any adjourned such meeting
or any poll resulting therefrom) be the equivalent at such spot rate on the
seventh dealing day prior to the day of such meeting.  In such circumstances, on any poll each
person present shall have one vote for each U.S.$1 (or such other U.S. dollar
amount as the Trustee may in its absolute discretion stipulate) in principal
amount of the Notes (converted as above) which he holds or represents.

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

 96

 

SIGNATORIES

	
  EXECUTED as a DEED by

  	
  )

  	
   

  
	
  COUNTRYWIDE FINANCIAL CORPORATION

  	
  )

  	
   

  
	
  acting by

  	
  )

  	
  JENNIFER S SANDEFUR

  
	
  acting under the authority of that

  	
  )

  	
   

  
	
  company in the presence of:

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness’s Signature:

  	
   

  	
  KEITH JACKSON

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  KEITH JACKSON

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  5220 LAS VIRGENES

  
	
   

  	
   

  	
  CALABEIAS, CA 91302

  
	
   

  	
   

  	
   

  
	
  Occupation:

  	
   

  	
  ATTORNEY

  
	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  
	
  COUNTRYWIDE HOME LOANS,

  	
  )

  	
   

  
	
  INC. acting by

  	
  )

  	
  JENNIFER S SANDEFUR

  
	
  acting under the authority of that

  	
  )

  	
   

  
	
  company in the presence of:

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness’s Signature:

  	
   

  	
  KEITH JACKSON

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  KEITH JACKSON

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  5220 LAS VIRGENES

  
	
   

  	
   

  	
  CALABEIAS, CA 91302

  
	
   

  	
   

  	
   

  
	
  Occupation:

  	
   

  	
  ATTORNEY

  
	
   

  	
   

  	
   

  
	
  THE COMMON SEAL of DEUTSCHE

  	
  )

  	
   

  
	
  TRUSTEE COMPANY LIMITED

  	
  )

  	
   

  
	
  was affixed to this deed in

  	
  )

  	
  SEAL

  
	
  the presence of:

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Director

  	
   

  	
  SALLY WALKER

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Associate Director

  	
   

  	
  SINEAD CLERKIN

  

 

 

 

	
   

  	
  TRUST DEED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  dated 15 August
  2005 and amended and

  restated on 31 August 2006

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COUNTRYWIDE
  FINANCIAL

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COUNTRYWIDE
  HOME LOANS,

  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE
  TRUSTEE COMPANY

  LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  relating to a

  U.S.$5,000,000,000

  Euro Medium Term Note Programme

  

 

  

SIGNATORIES

	
  EXECUTED as a DEED by

  	
  )

  	
   

  
	
  COUNTRYWIDE FINANCIAL CORPORATION

  	
  )

  	
   

  
	
  acting by

  	
  )

  	
  JENNIFER S SANDEFUR

  
	
  acting under the authority of that

  	
  )

  	
   

  
	
  company in the presence of:

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness’s Signature:

  	
   

  	
  DEREK W STARK

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  DEREK W STARK

  
	
   

  	
   

  	
   

  
	
  Address:                

  	
   

  	
  4500 PARK GRANADA

  
	
   

  	
   

  	
  CALABASAS CA 91302

  
	
   

  	
   

  	
   

  
	
  Occupation:

  	
   

  	
  ATTORNEY

  
	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  
	
  COUNTRYWIDE HOME LOANS,

  	
  )

  	
   

  
	
  INC. acting by

  	
  )

  	
  JENNIFER S SANDEFUR

  
	
  acting under the authority of that

  	
  )

  	
   

  
	
  company in the presence of:

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness’s Signature:

  	
   

  	
  DEREK W STARK

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  DEREK W STARK

  
	
   

  	
   

  	
   

  
	
  Address:                

  	
   

  	
  4500 PARK GRANADA

  
	
   

  	
   

  	
  CALABASAS CA 91302

  
	
   

  	
   

  	
   

  
	
  Occupation:

  	
   

  	
  ATTORNEY

  
	
   

  	
   

  	
   

  
	
  THE COMMON SEAL of DEUTSCHE

  	
  )

  	
   

  
	
  TRUSTEE COMPANY LIMITED

  	
  )

  	
   

  
	
  was affixed to this deed in

  	
  )

  	
  SEAL

  
	
  the presence of:

  	
  )

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Assistant Secretary

  	
   

  	
  ALAN COLLETTI

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Associate Director

  	
   

  	
  SALLY WALLER

  

  

 

	
  

  	
  DATED 31 AUGUST 2006

  
	
   

  	
   

  
	
   

  	
  COUNTRYWIDE FINANCIAL CORPORATION

  as Issuer

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  COUNTRYWIDE HOME LOANS, INC.

  as Guarantor

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE TRUSTEE COMPANY LIMITED

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FIRST SUPPLEMENTAL TRUST DEED

  
	
   

  	
   

  
	
   

  	
  modifying and restating the provisions of the

  Trust Deed dated 15 August 2005

  U.S.$5,000,000,000

  Euro Medium Term Note Programme

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  For the Issuer and the Guarantor:

  
	
   

  	
   

  
	
   

  	
  GIDE LOYRETTE NOUEL MNP

  Citypoint

  1 Ropemaker Street

  London EC2Y 9HT

  
	
   

  	
   

  
	
   

  	
  For the Trustee:

  
	
   

  	
   

  
	
   

  	
  ALLEN & OVERY LLP

  One New Change

  London EC4M 9QQExhibit 10.1
 

 

 

 

 

AGREEMENT FOR

A

U.S. $300,000,000

REVOLVING CREDIT FACILITY

TO BE MADE
AVAILABLE TO

SEACOR HOLDINGS
INC.

BY

DNB NOR BANK ASA,
NORDEA BANK NORGE ASA, GRAND CAYMAN BRANCH, 

THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND and FORTIS CAPITAL CORP., 

as Mandated Lead Arrangers

DNB NOR BANK ASA
and NORDEA BANK NORGE ASA, GRAND CAYMAN BRANCH,

as Bookrunners

DNB NOR BANK ASA,
as Facility Agent

NORDEA BANK NORGE
ASA, GRAND CAYMAN BRANCH, as Syndication Agent

THE GOVERNOR AND
COMPANY OF THE BANK OF SCOTLAND, as Structuring Agent

FORTIS CAPITAL
CORP., as Documentation Agent

AND

THE FINANCIAL
INSTITUTIONS 

IDENTIFIED ON SCHEDULE A,

as Lenders

November 3, 2006

   
 

 

INDEX

	
  SECTION 1.

  	
  DEFINITIONS

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.1.

  	
  Defined Terms

  	
  1

  
	
  1.2.

  	
  Computation of Time Periods; Other Definitional
  Provisions

  	
  15

  
	
  1.3.

  	
  Accounting Terms

  	
  16

  
	
  1.4.

  	
  Certain Matters Regarding Materiality

  	
  16

  
	
  1.5.

  	
  Forms of Documents

  	
  16

  
	
  1.6.

  	
  Headings

  	
  16

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
  16

  
	
   

  	
   

  	
   

  
	
  2.1.

  	
  Representations and Warranties

  	
  16

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  ADVANCES OF THE
  FACILITY/LETTERS OF CREDIT

  	
  20

  
	
   

  	
   

  	
   

  
	
  3.1.

  	
  Purpose

  	
  20

  
	
  3.2.

  	
  Advances

  	
  20

  
	
  3.3.

  	
  Drawdown Notice

  	
  21

  
	
  3.4.

  	
  Drawdown Notice a Warranty

  	
  21

  
	
  3.5.

  	
  Notation of Advance on Note

  	
  21

  
	
  3.6.

  	
  Foreign Currency Advances

  	
  21

  
	
  3.7.

  	
  Letters of Credit

  	
  22

  
	
  3.8.

  	
  Request for Issuance of Letter of Credit

  	
  23

  
	
  3.9.

  	
  Letter of Credit Payments Deemed Advances

  	
  23

  
	
  3.10.

  	
  Letter of Credit Participation

  	
  24

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  CONDITIONS

  	
  25

  
	
   

  	
   

  	
   

  
	
  4.1.

  	
  Conditions Precedent to Drawdown of the Initial
  Advance under the Credit Facility

  	
  25

  
	
  4.2.

  	
  Further Conditions Precedent

  	
  27

  
	
  4.3.

  	
  Break Funding Costs

  	
  27

  
	
  4.4.

  	
  Satisfaction after Drawdown

  	
  27

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  REPAYMENT, PREPAYMENT
  AND REDUCTION

  	
  27

  
	
   

  	
   

  	
   

  
	
  5.1.

  	
  Repayment

  	
  27

  
	
  5.2.

  	
  Prepayment

  	
  28

  
	
  5.3.

  	
  Permanent Reduction of the Committed Amount of the
  Credit Facility

  	
  28

  
	
  5.4.

  	
  Reduction of Commitment

  	
  28

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  INTEREST AND
  RATE

  	
  28

  
	
   

  	
   

  	
   

  
	
  6.1.

  	
  Applicable Rate

  	
  28

  
	
  6.2.

  	
  LIBOR; Interest Periods

  	
  29

  
	
  6.3.

  	
  Interest Payments

  	
  29

  
	
  6.4.

  	
  Interest Due Only on Banking Day

  	
  29

  
	
  6.5.

  	
  Calculation of Interest

  	
  29

  

 

 i
 

 

 

	
  

  	
   

  	
   

  
	
  SECTION 7.

  	
  PAYMENTS

  	
  29

  
	
   

  	
   

  	
   

  
	
  7.1.

  	
  Place of Payments, No Set Off

  	
  29

  
	
  7.2.

  	
  Proof of no Withholding

  	
  30

  
	
  7.3.

  	
  Federal Income Tax Credits

  	
  30

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  ACCOUNTS

  	
  30

  
	
   

  	
   

  	
   

  
	
  8.1.

  	
  The Operating Accounts

  	
  30

  
	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  EVENTS OF
  DEFAULT

  	
  31

  
	
   

  	
   

  	
   

  
	
  9.1.

  	
  Events of Default

  	
  31

  
	
  9.2.

  	
  Indemnification

  	
  33

  
	
  9.3.

  	
  Application of Moneys

  	
  34

  
	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
  COVENANTS

  	
  34

  
	
   

  	
   

  	
   

  
	
  10.1.

  	
  Covenants

  	
  34

  
	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
  ASSIGNMENT AND
  PARTICIPATIONS

  	
  41

  
	
   

  	
   

  	
   

  
	
  SECTION 12.

  	
  ILLEGALITY,
  INCREASED COST, NON-AVAILABILITY, ETC

  	
  42

  
	
   

  	
   

  	
   

  
	
  12.1.

  	
  Illegality

  	
  42

  
	
  12.2.

  	
  Increased Cost

  	
  42

  
	
  12.3.

  	
  Replacement of Lender or Participant

  	
  43

  
	
  12.4.

  	
  Non-availability of Funds

  	
  44

  
	
  12.5.

  	
  Determination of Losses

  	
  44

  
	
  12.6.

  	
  Compensation for Losses

  	
  44

  
	
   

  	
   

  	
   

  
	
  SECTION 13.

  	
  CURRENCY
  INDEMNITY

  	
  44

  
	
   

  	
   

  	
   

  
	
  13.1.

  	
  Currency Conversion

  	
  45

  
	
  13.2.

  	
  Change in Exchange Rate

  	
  45

  
	
  13.3.

  	
  Additional Debt Due

  	
  45

  
	
  13.4.

  	
  Rate of Exchange

  	
  45

  
	
   

  	
   

  	
   

  
	
  SECTION 14.

  	
  FEES AND
  EXPENSES

  	
  45

  
	
   

  	
   

  	
   

  
	
  14.1.

  	
  Commitment Fee

  	
  45

  
	
  14.2.

  	
  Letter of Credit and Facing Fees and Related Charges

  	
  45

  
	
  14.3.

  	
  Administrative Fee

  	
  46

  
	
  14.4.

  	
  Costs, Charges and Expenses

  	
  46

  
	
  14.5.

  	
  Indemnification

  	
  46

  
	
   

  	
   

  	
   

  
	
  SECTION 15.

  	
  APPLICABLE LAW,
  JURISDICTION AND WAIVER

  	
  46

  
	
   

  	
   

  	
   

  
	
  15.1.

  	
  Applicable Law

  	
  46

  
	
  15.2.

  	
  Jurisdiction

  	
  46

  
	
  15.3.

  	
  Waiver of Jury Trial

  	
  47

  

 

 ii
 

 

 

	
  

  	
   

  	
   

  
	
  SECTION 16.

  	
  THE AGENTS

  	
  47

  
	
   

  	
   

  	
   

  
	
  16.1.

  	
  Appointment of Agents

  	
  47

  
	
  16.2.

  	
  Distribution of Payments

  	
  47

  
	
  16.3.

  	
  Holder of Interest in Notes

  	
  47

  
	
  16.4.

  	
  No Duty to Examine, Etc

  	
  47

  
	
  16.5.

  	
  Agents as Lenders

  	
  48

  
	
  16.6.

  	
  Obligations of Agents

  	
  48

  
	
  16.7.

  	
  Discretion of Agents

  	
  48

  
	
  16.8.

  	
  Assumption re Event of Default

  	
  48

  
	
  16.9.

  	
  No Liability of Agents and the Lenders

  	
  48

  
	
  16.10.

  	
  Indemnification of Agents

  	
  49

  
	
  16.11.

  	
  Consultation with Counsel

  	
  49

  
	
  16.12.

  	
  Resignation

  	
  49

  
	
  16.13.

  	
  Representations of Lenders

  	
  49

  
	
  16.14.

  	
  Notification of Event of Default

  	
  50

  
	
   

  	
   

  	
   

  
	
  SECTION 17.

  	
  NOTICES AND
  DEMANDS

  	
  50

  
	
   

  	
   

  	
   

  
	
  17.1.

  	
  Notices in Writing

  	
  50

  
	
  17.2.

  	
  Addresses for Notice

  	
  50

  
	
  17.3.

  	
  Notices Deemed Received

  	
  50

  
	
   

  	
   

  	
   

  
	
  SECTION 18.

  	
  MISCELLANEOUS

  	
  51

  
	
   

  	
   

  	
   

  
	
  18.1.

  	
  Time of Essence

  	
  51

  
	
  18.2.

  	
  Unenforceable, etc.; Provisions - Effect

  	
  51

  
	
  18.3.

  	
  References

  	
  51

  
	
  18.4.

  	
  Further Assurances

  	
  51

  
	
  18.5.

  	
  Entire Agreement; Amendments

  	
  51

  
	
  18.6.

  	
  Adjustments

  	
  51

  
	
  18.7.

  	
  USA Patriot Act Notice; OFAC and Bank Secrecy Act

  	
  52

  

 

 iii
 

 

 

SCHEDULES

	
  A

  	
  THE LENDERS AND THEIR COMMITMENTS

  
	
  B

  	
  THE VESSEL OWNING/OPERATING SUBSIDIARIES AND OTHER
  SUBSIDIARIES

  
	
  C

  	
  EXISTING LIENS

  
	
  D

  	
  EXISTING INDEBTEDNESS

  
	
  E

  	
  EXISTING LETTERS OF CREDIT

  

 

EXHIBITS

	
  1

  	
  NOTE

  
	
  2

  	
  FORM OF DRAWDOWN NOTICE

  
	
  3

  	
  FORM OF LETTER OF CREDIT REQUEST

  
	
  4

  	
  FORM OF COMPLIANCE CERTIFICATE

  
	
  5

  	
  FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

  

 

 iv

 

REVOLVING CREDIT FACILITY AGREEMENT

THIS REVOLVING CREDIT
FACILITY AGREEMENT is made this 3rd day of
November, 2006, and is by and among (1) SEACOR HOLDINGS INC., a
corporation incorporated under the laws of the State of Delaware  (hereinafter called the “Borrower”),
(2)  DNB NOR BANK ASA, a bank incorporated under the laws of the Kingdom
of Norway (“DnB NOR”), NORDEA BANK NORGE ASA, GRAND CAYMAN BRANCH, incorporated
under the laws of Finland (“Nordea”), THE GOVERNOR AND COMPANY OF THE BANK OF
SCOTLAND, a bank incorporated under the laws of Scotland (“Bank of Scotland”)
and FORTIS CAPITAL CORP., a corporation organized under the laws of the State
of Connecticut (“Fortis”), as mandated lead arrangers (collectively, the “Mandated
Lead Arrangers”), (3) DnB NOR and Nordea, as bookrunners (together, the “Bookrunners”),
(4) DnB NOR, as facility agent (the “Facility Agent”), (5) Nordea, as
syndication agent (the “Syndication Agent”), (6) Bank of Scotland, as
structuring agent (the “Structuring Agent”), (7) Fortis, as documentation
agent (the “Documentation Agent” and together with the Arrangers, the
Bookrunners, the Facility Agent, the Syndication Agent and the Structuring
Agent shall hereinafter be collectively referred to as the “Agents”, each an “Agent”),
and (8) the banks and financial institutions whose names and addresses are
set out in Schedule A hereto (together with any assignee pursuant to
Section 11, collectively, the “Lenders”, each a “Lender”).

WITNESSETH THAT:

Whereas, at the request of
the Borrower, each of the Agents has agreed to act in its respective capacity
as set forth herein and the Lenders have agreed to provide to the Borrower a
revolving credit facility in the amount of Three Hundred Million Dollars
($300,000,000), as such facility amount may be increased as provided herein, on
the terms and subject to the conditions set forth herein;

NOW, THEREFORE, in
consideration of the premises, the covenants and agreements hereinafter set
forth, and other good and valuable consideration, the receipt and adequacy
whereof are hereby acknowledged, the parties hereto agree as set forth below:

SECTION 1.  DEFINITIONS

1.1.          Defined Terms.  In this Agreement the words and expressions
specified below shall, except where the context otherwise requires, have the
meanings attributed to them below:

	
  “Acceptable Accounting
  Firm”

  	
  means Ernst & Young, LLP or any other firm
  of independent certified public or chartered accountants of international
  reputation selected by the Borrower and acceptable to the Facility Agent;

  
	
   

  	
   

  
	
  “Acquisition
  Subsidiary”

  	
  shall mean a direct or indirect Subsidiary of the
  Borrower formed for the purpose of acquiring New Subsidiaries which
  Subsidiary shall not be an existing Vessel Owning/Operating Subsidiary at the
  time of the acquisition of the relevant New Subsidiaries and into which only
  those assets necessary to consummate the relevant acquisition shall be
  transferred;

  

 

 

 

	
  

  	
   

  
	
  “Administrative
  Questionnaire”

  	
  shall mean, with respect to each Lender, an
  administrative questionnaire, submitted to the Facility Agent (with a copy to
  the Borrower) duly completed by such Lender;

  
	
   

  	
   

  
	
  “Advance”

  	
  means any Dollar Advance or Foreign Currency
  Advance;

  
	
   

  	
   

  
	
  “Affiliate”

  	
  shall mean, with respect to any Person, (i) any
  Person that directly, or indirectly through one or more intermediaries,
  controls such Person (a “Controlling Person”) or (ii) any Person
  (other than such Person or a Subsidiary of such Person) which is controlled
  by or is under common control with a controlling Person. For purposes of this definition, the term
  “control” (including the terms “controlling”, “controlled by” and “under
  common control with”) of a Person shall mean the power, direct or indirect,
  (i) to vote 10% or more of the securities or other interests having ordinary
  voting power for the election of directors of such Person or of Persons
  serving a similar function, or (ii) to direct or cause the direction of the
  management and policies of such Person, whether by contract or otherwise;

  
	
   

  	
   

  
	
  “Agent”

  	
  shall have the meaning ascribed thereto in the
  preamble;

  
	
   

  	
   

  
	
  “Agreement”

  	
  means this revolving credit facility agreement as
  the same may be amended, restated, modified or supplemented from time to
  time;

  
	
   

  	
   

  
	
  “Applicable
  Margin”

  	
  shall mean (a) from the date of this Agreement until
  and including the day prior to the fifth anniversary of the date of this
  Agreement, 60.0 bps, and (b) from the fifth anniversary of the date of this
  Agreement and thereafter, 67.5 bps;

  
	
   

  	
   

  
	
  “Applicable
  Rate”

  	
  means any rate of interest on any Advance from time
  to time applicable pursuant to Section 6.1;

  
	
   

  	
   

  
	
  “Assignment
  and Assumption Agreement(s)”

  	
  shall mean the Assignment and Assumption
  Agreement(s) executed pursuant to Section 11 substantially in the form of
  Exhibit 5;

  
	
   

  	
   

  
	
   “Banking Day(s)”

  	
  means day(s) on which banks are open for the
  transaction of business of the nature required by this Agreement in the place
  or places from time to time specified;

  
	
   

  	
   

  
	
  “Base Rate”

  	
  means the higher of (i) the Letter of Credit
  Issuer’s Prime Rate and (ii) one-half percent (1/2%) above the Federal Funds
  Effective Rate;

  
	
   

  	
   

  
	
  “Basis
  Point(s)” or the symbol “bp(s)”

  	
  means one one-hundredth of one percent (0.01%);

  

 

 2
 

 

 

	
  

  	
   

  
	
  “Benefitted
  Lender”

  	
  shall have the meaning ascribed thereto in Section
  18.6;

  
	
   

  	
   

  
	
  “BNDES Debt”

  	
  means those certain loans made by the Banco Nacional
  de Desenvolvimento Economico e Social, a Brazilian federal company, in
  connection with the construction and acquisition of three offshore supply
  vessels and secured by letters of credit;

  
	
   

  	
   

  
	
  “Bookrunners”

  	
  shall have the meaning ascribed thereto in the
  preamble;

  
	
   

  	
   

  
	
  “Cash and
  Cash Equivalents”

  	
  means (i) cash, (ii) securities issued or directly
  and fully guaranteed or insured by the United States of America or any agency
  or instrumentality thereof (provided that the full faith and credit of
  the United States of America is pledged in support thereof), (iii) time
  deposits, certificates of deposit or deposits in the interbank market of any
  commercial bank of recognized standing organized under the laws of the United
  States of America, any state thereof or any foreign jurisdiction and rated at
  least A or the equivalent thereof by S&P, (iv) securities of any type
  which are, at the time of the determination being made hereunder, fully
  listed and registered on (a) an exchange registered with the Securities and
  Exchange Commission as a national securities exchange or (b) an equivalent
  recognized national securities exchanges in any of the member countries of
  the European Union, Mexico, Japan, Norway or Singapore or such other national
  securities exchange approved by the Majority Lenders, and (v) bonds of any
  county, municipality or state of the United States or any corporation
  organized and existing under the laws of the United States or any state
  thereof (including the District of Columbia) having an investment grade
  rating (or equivalent) by one of the nationally recognized rating
  organizations that regularly engages in rating such bonds and (vi) shall
  include funds and securities on deposit in any Construction Reserve Fund of
  any Subsidiary but (vii) shall exclude Cash and Cash Equivalents classified
  as “Restricted Cash” on the Borrower’s balance sheet and funds and securities
  on deposit in any Title XI Reserve Fund relating to Title XI Debt;

  
	
   

  	
   

  
	
  “Change of
  Control”

  	
  means (a) any “person” (as such term is used in
  Sections 13(d) and 14(d) of the Exchange Act) becomes the beneficial owner
  (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or
  indirectly, of more than fifty percent (50%) of the total voting power of the

  

 

 3
 

 

 

	
  

  	
  Borrower or (b) the Board of Directors of the
  Borrower ceases to consist of a majority of the existing directors or
  directors elected by the existing directors;

  
	
   

  	
   

  
	
  “Code”

  	
  means the Internal Revenue Code of 1986, as amended,
  and any successor statute and the regulations promulgated thereunder;

  
	
   

  	
   

  
	
  “Commitment”

  	
  shall mean in relation to a Lender, the amount of
  the Credit Facility set out opposite its name in Schedule A hereto or,
  as the case may be, in any relevant Assignment and Assumption Agreement, as
  the same may be reduced from time to time as provided by Section 5.3;

  
	
   

  	
   

  
	
  “Commitment
  Fee Rates”

  	
  shall mean (a) from the date of this Agreement until
  and including the day prior to the fifth anniversary of this Agreement, 17.5
  bps, and (b) from the fifth anniversary of this Agreement until and including
  the Termination Date, 22.5 bps;

  
	
   

  	
   

  
	
  “Commitment Increase”

  	
  means an
  increase in the Committed Amount over the Initial Commitment of up to One
  Hundred Fifty Million Dollars ($150,000,000), or such lesser amount as may be
  agreed, such increase to be a multiple of $25,000,000, as provided in Section
  3.1;

  
	
   

  	
   

  
	
  “Committed
  Amount”

  	
  means the aggregate of the Initial Commitment and
  the Commitment Increase, being the maximum aggregate principal amount in
  Dollars of the Advances and Letters of Credit which may be outstanding at any
  time under the Credit Facility; provided that the Committed Amount in respect
  of Letters of Credit shall not exceed Two Hundred Million Dollars
  ($200,000,000);

  
	
   

  	
   

  
	
  “Compliance
  Certificate”

  	
  means a certificate of the chief financial officer
  of the Borrower substantially in the form of Exhibit 4;

  
	
   

  	
   

  
	
  “Consolidated
  Net Worth”

  	
  for any period, shall mean, for any company, the sum
  of such company’s common and preferred stock (excluding any capital stock
  subject to mandatory redemption) and additional paid-in-capital, plus
  retained earnings (minus accumulated deficit) and currency translation
  adjustments, all as shown on the consolidated balance sheet of such company
  and its subsidiaries as determined in accordance with GAAP;

  
	
   

  	
   

  
	
  “Consolidated
  Subsidiary”

  	
  shall mean a Subsidiary the financial results of
  which are reflected in the Borrower’s consolidated financial statements;

  

 

 4
 

 

 

	
  

  	
   

  
	
  “Construction
  Reserve Fund”

  	
  means each joint account with the United States
  Maritime Administration established pursuant to the provisions of Section 511
  of the Merchant Marine Act, 1936, as amended (46 App. U.S.C. 1161);

  
	
   

  	
   

  
	
  “Consolidated
  Subsidiary Guaranty”

  	
  shall mean a guaranty issued by a Consolidated
  Subsidiary of obligations of the types listed in sub-clauses (i) through
  (iii) of the definition of Subsidiary Funded Debt of other Consolidated
  Subsidiaries but excluding, in the case of a Consolidated Subsidiary which is
  not a Wholly-Owned Subsidiary, that proportion of the amount of such guaranty
  which represents the minority interest holders’ share of such Guaranty;

  
	
   

  	
   

  
	
  “Conversion
  Date”

  	
  shall have the meaning ascribed thereto in Section
  13.1;

  
	
   

  	
   

  
	
  “Credit
  Facility”

  	
  means the sums advanced or to be advanced by the
  Lenders to the Borrower and the Letters of Credit to be issued by the Letter
  of Credit Issuers for the account of the Borrower in the initial maximum
  principal amount of Three Hundred Million Dollars ($300,000,000) as may be
  increased by the Commitment Increase all pursuant to, and subject to the
  terms of, this Agreement;

  
	
   

  	
   

  
	
  “Credit
  Facility Balance”

  	
  means the sum of (i) the amount of the Dollar
  Advances, (ii) the amount of the then Dollar Equivalent of the Foreign
  Currency Advances, and (iii) the amount of the Letter of Credit Outstandings
  at any relevant time, all as reduced by payments and increased by Advances
  and Letters of Credit pursuant to the terms of this Agreement;

  
	
   

  	
   

  
	
  “Credit
  Period”

  	
  means the period from the Drawdown Date of the
  initial Advance made hereunder to the date upon which the Advances and all
  other amounts due to the Agents and the Lenders pursuant to this Agreement
  and the Notes are repaid or prepaid in full and all commitments to extend
  credit under this Agreement have been terminated;

  
	
   

  	
   

  
	
  “Creditors”

  	
  shall mean, together, the Agents and the Lenders,
  each, a “Creditor”;

  
	
   

  	
   

  
	
  “CRN Group”

  	
  means CRN Holdings, Inc., a corporation organized
  under the laws of the State of Delaware, and any of its direct and indirect
  subsidiaries now or hereafter acquired;

  
	
   

  	
   

  
	
  “Default Rate”

  	
  shall have the meaning ascribed thereto in
  Section 6.1;

  
	
   

  	
   

  
	
  “Documentation
  Agent”

  	
  shall have the meaning ascribed thereto in the preamble;

  

 

 5
 

 

 

	
  

  	
   

  
	
  “Dollars” and
  the sign “$”

  	
  means the legal currency, at any relevant time
  hereunder, of the United States of America and, in relation to all payments
  hereunder, in same day funds settled through the New York Clearing House
  Interbank Payments System (or such other Dollar funds as may be determined by
  the Facility Agent to be customary for the settlement in New York City of
  banking transactions of the type herein involved);

  
	
   

  	
   

  
	
  “Dollar
  Advance(s)”

  	
  means any amount advanced in Dollars to the Borrower
  on any Drawdown Date, collectively such amounts advanced hereunder, the
  “Dollar Advances”;

  
	
   

  	
   

  
	
  “Dollar
  Equivalent”

  	
  means any amount of a foreign currency converted to
  Dollars at the Exchange Rate;

  
	
   

  	
   

  
	
  “Drawdown
  Dates”

  	
  means the dates, each being a Banking Day falling
  prior to the Termination Date, upon which the Borrower has requested that an
  Advance be made available to the Borrower or an Advance is deemed to have
  been made due to a drawing under any Letter of Credit;

  
	
   

  	
   

  
	
  “Drawdown
  Notice”

  	
  shall have the meaning ascribed thereto in
  Section 3.3;

  
	
   

  	
   

  
	
  “EBITDA”

  	
  means on a consolidated basis, the aggregate, to be
  measured on a trailing twelve (12) month basis, of (i) operating
  income (before deductions for interest, taxes, depreciation and
  amortization), (ii) interest income and (iii) ”Equity in Net
  Earnings of Fifty Percent (50%) or Less Owned Companies” (as such term
  is used in the Borrower’s published financial reports), and (iv) “Gains on
  Asset Sales — Net” (as such term is used in the Borrower’s published
  financial reports);

  
	
   

  	
   

  
	
  “Environmental
  Affiliate”

  	
  means any person or entity the liability of which
  for Environmental Claims the Borrower may have assumed by contract or
  operation of law;

  
	
   

  	
   

  
	
  “Environmental
  Approvals”

  	
  shall have the meaning ascribed thereto in Section
  2.1(m);

  
	
   

  	
   

  
	
  “Environmental
  Claim”

  	
  shall have the meaning ascribed thereto in
  Section 2.1(m);

  
	
   

  	
   

  
	
  “Environmental
  Laws”

  	
  shall have the meaning ascribed thereto in Section
  2.1(m);

  
	
   

  	
   

  
	
  “ERISA”

  	
  means the Employment Retirement Income Security Act
  of 1974, as amended;

  
	
   

  	
   

  
	
  “ERISA
  Affiliate”

  	
  means a trade or business (whether or not
  incorporated) which is under common control with the Borrower within

  

 

 6
 

 

 

	
  

  	
   

  
	
   

  	
  the meaning of Sections 414(b),(c),(m) or (o) of the
  Code;

  
	
   

  	
   

  
	
  “Euros” and
  the symbol “€”

  	
  means the legal currency, at any relevant time
  hereunder, of the member countries of the European Union who have adopted the
  Euro as legal tender;

  
	
   

  	
   

  
	
  “Events of
  Default”

  	
  means any of the events set out in Section 9.1;

  
	
   

  	
   

  
	
  “Exchange Act”

  	
  shall mean the Securities and Exchange Act of 1934,
  as amended;

  
	
   

  	
   

  
	
  “Exchange
  Rate”

  	
  means the exchange rate offered by the Facility
  Agent or Letter of Credit Issuer, as the case may be, of Dollars for a
  particular foreign currency or vice versa in
  accordance with its normal practices on the relevant date, in either case,
  including any costs associated with the relevant exchange contract or, if it
  does not then offer such exchange rates in respect of such foreign currency,
  such exchange rate in respect of such currency as the Facility Agent or the
  Letter of Credit Issuer, as the case may be, deems reasonable;

  
	
   

  	
   

  
	
  “Existing
  Credit Facility”

  	
  the credit facility provided under that certain
  credit agreement, dated February 5, 2002 as amended by Amendment No. 1,
  Amendment No. 2, Amendment No. 3 and Amendment No. 4 thereto dated March
  15, 2004, May 17, 2004, December 21, 2005 and July 31, 2006, respectively,
  among, inter alia, the Borrower, the financial institutions named therein as
  Lenders, and DnB NOR Bank ASA as administrative agent;

  
	
   

  	
   

  
	
  “Existing
  Letters of Credit”

  	
  shall have the meaning ascribed thereto in Section
  3.7;

  
	
   

  	
   

  
	
  “Extended
  Letters of Credit”

  	
  shall have the meaning ascribed thereto in Section
  3.7;

  
	
   

  	
   

  
	
  “Facility
  Agent”

  	
  shall have the meaning ascribed thereto in the preamble;

  
	
   

  	
   

  
	
  “Facing Fee”

  	
  shall have the meaning ascribed thereto in Section
  14.2;

  
	
   

  	
   

  
	
  “Federal
  Funds Effective Rate”

  	
  means, for any period, a fluctuating interest rate
  equal for each day during such period to the weighted average of the rates on
  overnight Federal Funds transactions with members of the Federal Reserve
  System arranged by Federal Funds brokers, as published for such day (or, if
  such day is not a Banking Day, for the next preceding Banking Day) by the
  Federal Reserve Bank of New York, or, if such rate is not so published for
  any day which is a Banking Day, the average of the quotations for such day on
  such transactions received by the Facility Agent from three (3) Federal Funds
  brokers of recognized standing 

  

 

 7
 

 

 

	
  

  	
   

  
	
   

  	
  selected by the Facility Agent;

  
	
   

  	
   

  
	
  “Foreign
  Currency”

  	
  means any of Pounds Sterling, Euros, Singapore
  Dollars or any other currency which shall be freely convertible into U.S.
  Dollars;

  
	
   

  	
   

  
	
  “Foreign
  Currency Advance”

  	
  means any amount denominated in a Foreign Currency
  advanced to the Borrower on any Drawdown Date;

  
	
   

  	
   

  
	
  “Funded Debt”

  	
  shall mean, on a consolidated basis, (A) the sum of
  (i) indebtedness for borrowed money, all obligations evidenced by bonds,
  debentures, notes or similar instruments, and purchase money obligations
  which, in accordance with GAAP, would be shown on the consolidated balance
  sheet as a liability, (ii) all obligations arising under letters of
  credit, (iii) all obligations as lessee under leases which have been, in
  accordance with GAAP, recorded as capitalized lease obligations,
  (iv) guaranties of non-consolidated entity obligations but excluding (x) Title XI Debt, (y) BNDES Debt
  and (z) indebtedness which is consolidated in the Borrower’s published
  financial statements in accordance with GAAP but which represents a minority
  interest holders’ share of such indebtedness unless such minority holders’
  share has been guaranteed by the Borrower or a Subsidiary less (B) the excess
  of Cash and Cash Equivalents over Twenty Five Million Dollars ($25,000,000)
  (other than for purposes of Section 9.1(h)(c));

  
	
   

  	
   

  
	
  “GAAP”

  	
  shall have the meaning ascribed thereto in
  Section 1.3;

  
	
   

  	
   

  
	
  “Helicopter(s)”

  	
  means any helicopter(s) owned by a Subsidiary of the
  Borrower used in the offshore supply business of the Borrower and its
  Subsidiaries;

  
	
   

  	
   

  
	
  “Indebtedness”

  	
  of any Person shall mean and include all obligations
  of such Person which in accordance with GAAP shall be classified upon a
  balance sheet of such Person as liabilities of such Person;

  
	
   

  	
   

  
	
  “Indemnitee”

  	
  shall have the meaning ascribed thereto in Section
  14.5;

  
	
   

  	
   

  
	
  “Initial
  Commitment”

  	
  means Three Hundred Million Dollars ($300,000,000),
  as reduced from time to time pursuant to Section 5.3;

  
	
   

  	
   

  
	
  “Interest
  Coverage Ratio”

  	
  means, on a consolidated basis, (a) EBITDA
  divided by (b) interest payments (including interest attributable to
  capitalized leases) made during the four (4) fiscal quarters preceding the
  date on which such ratio is determined;

  

 

 8

 

 

	
  “Interest Notice”

  	
   

  	
  means a notice to the Facility Agent specifying the
  duration of the relevant Interest Period;

  
	
  “Interest Period(s)”

  	
   

  	
  means period(s) of
  one (1), two (2), three (3), six (6), nine (9) or twelve (12)
  months selected by the Borrower or such longer period(s) as the Lenders may
  agree;

  
	
  “Investment”

  	
   

  	
  means (i) lending money
  or credit or making advances to any Person, (ii) purchasing or acquiring any
  stock, obligations or securities of, or any other interest in, or making
  capital contributions to any Person or (iii) guaranteeing the debt or
  obligations of any other Person;

  
	
  “Issuing Subsidiary”

  	
   

  	
  shall mean, the
  Subsidiary which is the primary obligor on Subsidiary Funded Debt; provided
  that in the case of Subsidiary Funded Debt where (i) one or more other
  Subsidiaries are jointly or jointly and severally liable in respect thereof
  (other than by way of guaranty) or (ii) no Subsidiary is the primary obligor
  in respect of a Subsidiary Funded Debt but two or more Subsidiaries have
  issued Non-Consolidated Entity Guaranties in respect of the same obligation,
  the Subsidiary liable in respect thereof with the highest book value shall be
  deemed to be such primary obligor;

  
	
  “Joint Venture”

  	
   

  	
  shall mean at any date
  any Person (other than a Subsidiary) in which the Borrower or any Subsidiary
  has an ownership interest or other interests in profits or loss which would
  be accounted for in the consolidated financial statements of the Borrower and
  its consolidated Subsidiaries by the equity method if such statements were
  prepared as of such date;

  
	
  “Judgment Currency”

  	
   

  	
  shall have the meaning
  ascribed thereto in Section 13.1;

  
	
  “L/C Supportable
  Obligation(s)”

  	
   

  	
  means such obligations
  of the Borrower as are not inconsistent with the issuance policies of the
  applicable Letter of Credit Issuer; no Letter of Credit may be payable (1) to
  any entity or person who is subject to sanctions issued by the United States
  Department of Commerce or to whom payment is prohibited by the Foreign Asset
  Control Regulations of the Department of the Treasury or (2) which otherwise
  is in contravention of applicable laws and regulations;

  
	
  “Lender(s)”

  	
   

  	
  shall have the meaning
  ascribed thereto in the preamble;

  
	
  “Letter(s) of Credit”

  	
   

  	
  shall have the meaning
  ascribed thereto in Section 3.7;

  

 

 9
 

 

 

	
  “Letter of Credit Fee”

  	
   

  	
  shall have the meaning ascribed thereto in Section
  14.2;

  
	
  “Letter of Credit
  Issuer”

  	
   

  	
  means, with respect to
  each Letter of Credit, the Lender (being one of the Agents) which, at the
  request of the Borrower, issues the same;

  
	
  “Letter of Credit
  Outstandings”

  	
   

  	
  means, at any time, the
  aggregate Stated Amount of all outstanding Letters of Credit, less any
  drawings previously made thereunder;

  
	
  “Letter of Credit
  Participant”

  	
   

  	
  shall have the meaning
  ascribed thereto in Section 3.10;

  
	
  “Letter of Credit
  Participant Percentage”

  	
   

  	
  means, in relation to a
  Lender, the percentage of the Credit Facility set out opposite its name in
  Schedule A hereto; provided, however, that in the case of Extended Letters of
  Credit, the percentage shall be adjusted to include only the Commitments of
  the Lenders participating in the Extended Letters of Credit;

  
	
  “Letter of Credit
  Request”

  	
   

  	
  shall have the meaning
  ascribed thereto in Section 3.8;

  
	
  “LIBOR”

  	
   

  	
  means the rate of interest
  for deposits, in Dollars or the relevant Foreign Currency, as the case may
  be, of an amount equivalent to the relevant Advance (or portion thereof), for
  periods equivalent to the applicable Interest Period, which appear at or
  about 11:00 A.M. (London Time) on the day falling two (2) LIBOR
  Reference Days prior to the first day of the relevant Interest Period as
  displayed on page LIBOR01 of the Reuters screen, in the case of Dollars,
  Pounds Sterling, or Euros, or page SGDF= of the Reuters screen, in the case
  of Singapore Dollars (or such other page as may replace such page), as the
  case may be, on such system or on any other system of the information vendor
  for the time being designated by the British Bankers’ Association to
  calculate the BBA Interest Settlement Rate (as defined in the British
  Bankers’ Association’s Recommended Terms and Conditions (“BBAIRS” terms)
  dated August 1985)), provided, however, that, if on any date of determination
  of the Applicable Rate, no rate is so displayed for amounts equivalent to the
  relevant Advance (or portion thereof) and for periods equivalent to the
  applicable Interest Period, LIBOR shall be equal to the arithmetic mean
  (rounded upward if necessary to four decimal places) of the rates
  respectively quoted to the Facility Agent by each of the Reference Banks as
  the offered rate for deposits of Dollars or the relevant Foreign Currency, as
  the case may be, in an amount approximately equal to the amount in relation
  to which LIBOR is to be determined for a period 

  

 

 10
 

 

 

	
  

  	
  equivalent to such period to prime banks in the
  London Interbank Market at or about 11:00 a.m. (London time) on the
  second LIBOR Reference Day before the first day of such period;

  
	
  “LIBOR
  Reference Day(s)”

  	
  a day or days on which
  banks in the London interbank market generally will provide quotations for
  deposits in the relevant currencies;

  
	
  “Lien”

  	
   

  	
  shall mean any interest
  in property securing an obligation owed to, or a claim by, a Person other
  than the owner of the property, whether such interest is based on the common
  law, statute or contract, and including but not limited to the security
  interest lien arising from a mortgage, encumbrance, pledge, conditional sale,
  title retention agreement or trust receipt or a lease, consignment or bailment
  for security purposes or any arrangement having substantially the same legal
  effect as the foregoing;

  
	
  “List of Liens”

  	
   

  	
  shall mean a list of
  Liens in respect of Secured Debt on Vessels and Helicopters;

  
	
  “Majority Lenders”

  	
   

  	
  shall mean Lenders
  whose aggregate Commitments exceed fifty percent (50%) of the total
  Commitments;

  
	
  “Mandated Lead
  Arrangers”

  	
   

  	
  shall have the meaning
  ascribed thereto in the preamble;

  
	
  “Mandatory Reduction
  Amount”

  	
   

  	
  shall mean an amount
  equal to ten percent (10%) of the Committed Amount (before any mandatory or
  voluntary reduction hereunder);

  
	
  “Mandatory Reduction
  Date(s)”

  	
   

  	
  means each of  the
  anniversary dates of the date of this Agreement that the Committed Amount is
  reduced in accordance with Section 5.3(a) hereof;

  
	
  “Material Adverse
  Change”

  	
   

  	
  shall mean the
  occurrence of an event or condition which (a) materially impairs the ability
  of (1) the Borrower to meet any of its obligations with regard to the
  Credit Facility and the financing arrangements established in connection
  therewith or (2) the Borrower and the Subsidiaries to meet any of their
  respective other obligations that are material to the Borrower and the
  Subsidiaries considered as a whole or (b) has a material adverse effect
  on the business, assets, operations, property or financial condition of the
  Borrower and the Subsidiaries considered as a whole;

  
	
  “Materials of Environmental Concern”

  	
   

  	
  shall have the meaning ascribed thereto in Section
  2.1(m);

  

 

 11
 

 

 

	
  “New Subsidiaries”

  	
   

  	
  shall mean a group of
  corporations or other entities of which the Borrower or a Subsidiary acquires
  legally or beneficially greater than fifty percent (50%) of the issued
  and outstanding stock or other interest in each corporation or entity in the
  group and has more than fifty percent (50%) of the total voting power of the
  voting stock or other interest in such corporations or entities;

  
	
  “Non-Consolidated
  Entity”

  	
   

  	
  shall mean an entity
  which is not a Consolidated Subsidiary;

  
	
  “Non-Consolidated
  Entity Guaranty”

  	
   

  	
  shall mean a guaranty
  issued by a Consolidated Subsidiary of obligations of Non-Consolidated
  Entities of the types listed in sub-clauses (i) through (iii) of the
  definition of Subsidiary Funded Debt but excluding, in the case of a
  Consolidated Subsidiary which is not a Wholly-Owned Subsidiary, that
  proportion of the amount of such Guaranty which represents the minority
  interest holders’ share of such Guaranty;

  
	
  “Note”

  	
   

  	
  means a promissory note
  to be executed by the Borrower in favor of a Lender to evidence the Advances
  of the Credit Facility made by such Lender substantially in the form of
  Exhibit 1 or in such other form as the Facility Agent may agree;

  
	
  “Operating Accounts”

  	
   

  	
  shall have the meaning
  ascribed thereto in Section 8.1;

  
	
  “Other Subsidiaries”

  	
   

  	
  shall mean, as it
  relates to any Subsidiary Funded Debt, those Subsidiaries liable in respect
  thereof other than the Issuing Subsidiary;

  
	
  “Permitted Liens”

  	
   

  	
  means any of the liens
  permitted under Section 10.1(b)(i);

  
	
  “Person”

  	
   

  	
  shall mean an
  individual, partnership, corporation, limited liability company, business
  trust, bank, trust company, joint venture, association, joint stock company,
  trust or other unincorporated organization, whether or not a legal entity, or
  any government or agency or political subdivision thereof;

  
	
  “Plan”

  	
   

  	
  means any employee
  benefit plan covered by Title IV of ERISA maintained or contributed by the
  Borrower or any Subsidiary or any ERISA Affiliate;

  
	
  “Pounds Sterling”
  and the sign “£”

  	
   

  	
  means the legal
  currency, at any relevant time hereunder, of the United Kingdom;

  

 

 12
 

 

 

	
  “Prime Rate”

  	
   

  	
  means the rate which the relevant Letter of Credit
  Issuer announces from time to time as its prime lending rate, the Prime Rate
  to change when and as such prime lending rate changes;

  
	
  “Rate of Exchange”

  	
   

  	
  shall have the meaning
  ascribed thereto in Section 13.4;

  
	
  “Reference Banks”

  	
   

  	
  means the banks chosen
  from time to time by the British Bankers’ Association for the purpose of
  establishing Interest Settlement Rates;

  
	
  “Regulation T”

  	
   

  	
  shall mean Regulation T
  of the Board of Governors of the Federal Reserve System, as in effect from
  time to time;

  
	
  “Regulation U”

  	
   

  	
  shall mean Regulation U
  of the Board of Governors of the Federal Reserve System, as in effect from
  time to time;

  
	
  “Regulation X”

  	
   

  	
  shall mean Regulation X
  of the Board of Governors of the Federal Reserve System, as in effect from
  time to time;

  
	
  “Replacement
  Lender(s)”

  	
   

  	
  shall have the meaning
  ascribed thereto in Section 12.3;

  
	
  “Seabulk Notes”

  	
   

  	
  means the 9-1/2% Senior
  Notes due 2013 issued by Seabulk International, Inc., a corporation
  incorporated under the law of the State of Delaware and a subsidiary of the
  Borrower;

  
	
  “Secured Debt”

  	
   

  	
  means, for the
  Borrower, on a consolidated basis, the aggregate of any Indebtedness secured
  or collateralized by a Lien other than Title XI Debt;

  
	
  “Singapore Dollars
  and the symbol “SGD”

  	
   

  	
  means the legal
  currency, at any relevant time hereunder, of Singapore;

  
	
  “Stated Amount”

  	
   

  	
  means with respect to
  each Letter of Credit, the maximum amount available to be drawn thereunder
  (regardless of whether any conditions for drawing could then be met);

  
	
  “Structuring Agent”

  	
   

  	
  shall have the meaning
  ascribed thereto in the preamble;

  
	
  “Subsidiaries”

  	
   

  	
  means the corporations
  or other entities listed on Schedule B (including, without limitation,
  the Vessel Owning/Operating Subsidiaries) of which the Borrower owns legally
  or beneficially greater than fifty percent (50%) of the issued and
  outstanding stock or other interest in such entity and has more than fifty
  percent (50%) of the total voting power of the voting stock or other interest
  in such corporation or other entity, together with any other corporations or
  other entities now or hereafter in existence of which the Borrower owns
  legally 

  

 

 13
 

 

 

	
  

  	
   

  	
  or beneficially greater than fifty
  percent (50%) of the issued and outstanding stock or other interest in
  such entity and has more than fifty percent (50%) of the total voting power
  of the voting stock or other interest in such corporation or other entity,
  and each, a “Subsidiary”;

  
	
  “Subsidiary Funded
  Debt”

  	
   

  	
  shall mean, as to each
  Subsidiary, the sum of (i) indebtedness for borrowed money, all obligations
  evidenced by bonds, debentures, notes or similar instruments, and purchase
  money obligations which, in accordance with GAAP, would be shown on the
  balance sheet of such Subsidiary as a liability if a balance sheet were
  actually prepared in accordance with GAAP for such Subsidiary, (ii) all
  obligations arising under letters of credit in respect of which such Subsidiary
  is liable, (iii) all obligations as lessee under leases which have been,
  in accordance with GAAP, recorded as capitalized lease obligations on the
  consolidated balance sheet of the Borrower and would so appear on such
  Subsidiary’s balance sheet if a balance sheet were prepared in accordance
  with GAAP for such Subsidiary, (iv) Consolidated Subsidiary Guaranties
  and Non-Consolidated Entity Guaranties, in each case, up to the maximum
  amount guaranteed under the terms of any such guaranty but excluding (v) Title
  XI Debt, (vi) BNDES Debt, (vii) the Seabulk Notes and (viii) indebtedness
  which is consolidated in the Borrower’s published financial statements in
  accordance with GAAP and would so appear on such Subsidiary’s balance sheet
  if a balance sheet were prepared in accordance with GAAP for such Subsidiary
  but which represents a minority interest holders’ share of such indebtedness
  unless such minority holders’ share has been guaranteed by such Subsidiary;

  
	
  “Syndication Agent”

  	
   

  	
  shall have the meaning
  ascribed thereto in the preamble;

  
	
  “Taxes”

  	
   

  	
  means any present or
  future income or other taxes, levies, duties, charges, fees, deductions or
  withholdings of any nature now or hereafter imposed, levied, collected,
  withheld or assessed by any taxing authority whatsoever, except for taxes on
  or measured by the overall net income of the Lenders imposed by their
  respective jurisdiction of incorporation or domicile of the lending office
  making the Advances or issuing any Letter of Credit or any governmental
  subdivision or taxing authority of any thereof or by any other taxing
  authority having jurisdiction over any Agent or Lender (unless such
  jurisdiction is asserted solely by reason of the activities of the Borrower
  or any Subsidiary);

  

 

 14
 

 

 

	
  “Termination Date”

  	
   

  	
  means the day falling seven (7) years after the date
  hereof or, if such day is not a Banking Day, the next following Banking Day,
  unless such next following Banking Day falls in the following month, in which
  case the Termination Date shall be the immediately preceding Banking Day;

  
	
  “Title XI Debt”

  	
   

  	
  means any United States
  Government Guaranteed Ship Financing Obligations issued pursuant to Title XI
  of the Merchant Marine Act, 1936, as amended (46 App. U.S.C. 1273) by any
  Subsidiary that is non-recourse to the Borrower;

  
	
  “Total
  Capitalization”

  	
   

  	
  for any company, means,
  on a consolidated basis, the aggregate of Funded Debt and Consolidated Net
  Worth;

  
	
  “Transferee”

  	
   

  	
  shall have the meaning
  ascribed thereto in Section 7.2;

  
	
  “Underlying
  Subsidiary Funded Debt”

  	
   

  	
  shall mean the
  outstanding principal amount of Subsidiary Funded Debt issued or incurred by
  an Issuing Subsidiary;

  
	
  “Vessel
  Owning/Operating Subsidiaries”

  	
   

  	
  those Subsidiaries
  designated as Vessel Owning/Operating Subsidiaries on Schedule B, together
  with any future subsidiaries now or hereafter acquired which either own or
  operate Vessels or Helicopters, provided, however, that the CRN Group shall
  not be deemed to be Vessel Owning/Operating Subsidiary;

  
	
  “Vessels”

  	
   

  	
  means any vessels now
  or hereafter more than fifty percent (50%) owned, directly or indirectly, by
  a Vessel Owning/Operating Subsidiary; and

  
	
  “Wholly Owned
  Subsidiaries”

  	
   

  	
  means the Subsidiaries
  of which the Borrower owns legally or beneficially one hundred
  percent (100%) of the issued and outstanding stock or other interest in
  such entity and has one hundred percent (100%) of the total voting power of
  the voting stock or other interest in such corporation or other entity.

  

 

1.2.          Computation of Time Periods; Other
Definitional Provisions.  In this
Agreement and the Notes, in the computation of periods of time from a specified
date to a later specified date, the word “from” means “from and including” and
the words “to” and “until” each mean “to but excluding”; words importing either
gender include the other gender; references to “writing” include printing,
typing, lithography and other means of reproducing words in a tangible visible
form; the words “including,” “includes” and “include” shall be deemed to be
followed by the words “without limitation”; references to articles, sections
(or subdivisions of sections), exhibits, annexes or schedules are to this
Agreement or the Notes, as applicable; references to agreements and other
contractual instruments (including this Agreement and the Notes) shall be
deemed to 

 15
 

 

include all subsequent amendments, amendments and
restatements, supplements, extensions, replacements and other modifications to
such instruments (without, however, limiting any prohibition on any such
amendments, extensions and other modifications by the terms of this Agreement
or the Notes); references to any matter that is “approved” or requires
“approval” of a party shall mean approval given in the sole and absolute
discretion of such party unless otherwise specified; words importing the plural
include the singular and vice-versa.

1.3.          Accounting Terms.  All accounting terms not specifically defined
herein shall be construed in accordance with generally accepted accounting
principles as in effect from time to time in the United States of America
consistently applied (“GAAP”) and all financial statements submitted pursuant
to this Agreement shall be prepared in accordance with, and all financial data
submitted pursuant hereto shall be derived from financial statements prepared
in accordance with, GAAP.

1.4.          Certain Matters Regarding
Materiality.  To the extent that any
representation, warranty, covenant or other undertaking of the Borrower in this
Agreement is qualified by reference to those which are not reasonably expected
to result in a “Material Adverse Change” or language of similar implication, no
inference shall be drawn therefrom that any Agent or Lender has knowledge or
approves of any noncompliance by the Borrower with any governmental rule.

1.5.          Forms of Documents.  Except as otherwise expressly provided in
this Agreement, references to documents or certificates “substantially in the
form” of Exhibits to another document shall mean that such documents or
certificates are duly completed in the form of the related Exhibits with substantive
changes subject to the provisions of Section 18.5 of this Agreement.

1.6.          Headings.  In this Agreement, section headings are
inserted for convenience of reference only and shall not be taken into account
in the interpretation hereof.

SECTION 2.  REPRESENTATIONS
AND WARRANTIES

2.1.          Representations and Warranties.  In order to induce the Agents and the Lenders
to enter into this Agreement and to make the Advances and to issue and/or
participate in Letters of Credit as provided for herein, the Borrower hereby
represents and warrants to the Agents and the Lenders (which representations
and warranties shall survive the execution and delivery of this Agreement and
the Notes and the making of the Advances and the issuance of Letters of Credit)
that:

(a)           Due Organization and Power.  The Borrower and each of the Subsidiaries are
duly formed and are validly existing in good standing under the laws of their
respective jurisdictions of incorporation, have duly qualified and are
authorized to do business as a foreign corporation in each jurisdiction wherein
the nature of the business transacted thereby makes such qualification
necessary, have full power to carry on their respective businesses as now being
conducted and, in the case of the Borrower, to enter into and perform the
Borrower’s obligations under each of this Agreement and the Notes and have
complied with all statutory, regulatory and other requirements relative to such
businesses and such agreements the noncompliance with which could reasonably be
expected to give rise to a Material Adverse Change;

(b)           Authorization and Consents.  All necessary corporate action has been taken
to authorize, and all necessary consents and authorizations have been obtained
and remain 

 16
 

 

in full force and effect to permit, the Borrower to enter into and
perform its obligations under each of this Agreement and the Notes and to
permit the Borrower to borrow, service and repay the Advances and no further
consents or authorizations are necessary for the service and repayment of the Advances
or any part of any thereof;

(c)           Binding Obligations.  Each of this Agreement and the Notes
constitutes legal, valid and binding obligations of the Borrower, enforceable
against the Borrower in accordance with its terms, except to the extent that such
enforcement may be limited by equitable principles or applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting generally the
enforcement of creditors’ rights;

(d)           No Violation.  The execution and delivery of, and the
performance of the provisions of, this Agreement and the Notes do not, and will
not during the Credit Period, contravene any existing applicable law or
regulation or any contractual restriction binding on the Borrower or its
certificate of incorporation or by-laws;

(e)           Litigation.  Except as otherwise disclosed in the 2005
annual report of the Borrower or the 10Q report of the Borrower for the period
ending June 30, 2006, no action, suit or proceeding is pending or overtly
threatened against the Borrower or any of the Subsidiaries before any court,
board of arbitration or administrative agency which could result in any
Material Adverse Change;

(f)            No Default.  Except as otherwise disclosed in writing to
the Facility Agent on or prior to the date hereof, neither the Borrower nor any
of the Subsidiaries are in default under any agreement by which any thereof is
bound, nor are any thereof in default in respect of any financial commitment or
obligation, where such default could result in any Material Adverse Change;

(g)           Vessel/Helicopter Ownership,
Classification, and Insurance.

(i)            Each of the Vessels and each of the
Helicopters is owned free and clear of all liens of record and duly registered
in the name of its owner;

(ii)           Each of the Vessels is classed in the
highest classification and rating for vessels of the same age and type with the
American Bureau of Shipping, Lloyd’s Register of Shipping, Det Norske Veritas,
Bureau Veritas, Germanischer Lloyd or other classification society acceptable
to the Facility Agent without any material outstanding recommendations and each
of the Helicopters, when not grounded or out of service is maintained in
accordance with prudent industry practices and as otherwise required by the
applicable governmental authorities; and

(iii)          Each of the Vessels and each of the
Helicopters is insured in accordance with standard industry practice,
including, without limitation, coverage for hull and machinery, all risk ground
and flight aircraft hull insurance (except to the extent any such Helicopters
are no longer operating), war risk, public liability and/or
protection & indemnity (evidence of which shall include, without
limitation, cover notes, certificates of entry or such other evidence as shall
be reasonably satisfactory to the Facility Agent);

 17

 

(h)           Citizenship.  Each of the Vessel Owning/Operating
Subsidiaries which owns a Vessel registered under the laws and flag of the
United States of America is eligible to document a United States flag vessel
within the meaning of 46 App. U.S.C. §12102(a) and, if any such Vessel is
operating in the coastwise trade, within the meaning of Section 2 of the United
States Shipping Act, 1916, as amended (46 App. U.S.C. § 802), the Vessel
Owning/Operating Subsidiary owning or operating same is qualified to own and operate
vessels in the coastwise trade;

(i)            Financial Statements.  Except as otherwise disclosed in writing to
the Lenders on or prior to the date hereof, all financial statements,
information and other data furnished by the Borrower to the Lenders are complete
and correct, and such financial statements have been prepared in accordance
with GAAP and accurately and fairly present the financial condition of the
parties covered thereby as of the respective dates thereof and the results of
the operations thereof for the period or respective periods covered by such
financial statements.  Since such date or
dates there has been no Material Adverse Change and neither the Borrower nor
any of the Subsidiaries have any contingent obligations, liabilities for taxes
or other outstanding financial obligations which on a consolidated basis are
material in the aggregate, except as disclosed in such statements, information
and data;

(j)            Tax Returns and Payments.  The Borrower and each of the Subsidiaries
have filed all tax returns required to be filed thereby and have paid all taxes
payable thereby which have become due, other than those not yet delinquent or
the non-payment of which would not give rise to a Material Adverse Change and
except for those taxes being contested in good faith and by appropriate
proceedings or other acts and for which adequate reserves have been set aside
on the books thereof;

(k)           Insurance.  Each of the Borrower and the Subsidiaries
have insured their respective properties, assets and businesses against such
risks and in such amounts as are required by law and as are customary for
comparable companies engaged in similar businesses;

(l)            Solvency.  On the date of the making of each Advance and
both immediately before and immediately after giving effect to all the
transactions contemplated by this Agreement and the other documents referred to
herein to occur on the date of the making of each Advance and as of the date
hereof, (i) the sum of the Borrower’s property (on a consolidated basis),
at a fair valuation, does and will exceed its liabilities (on a consolidated
basis), including contingent liabilities, (ii) the present fair salable
value of the Borrower’s assets (on a consolidated basis) is not and shall not
be less than the amount that will be required to pay the Borrower’s probable
liability on its then existing debts (on a consolidated basis), including
contingent liability, as they mature, (iii) the Borrower (on a
consolidated basis) does not and will not have unreasonably small capital with
which to continue its business, and (iv) the Borrower (on a consolidated
basis) has not incurred, does not intend to incur and does not believe it will
incur debts beyond its ability to pay such debts as they mature;

(m)          Environmental Matters.  Except as disclosed prior to the date of this
Agreement in writing to the Lenders (i) the Borrower and each of the
Subsidiaries are now and will continue to be, to the extent required, in
compliance with all applicable United States federal and state, local, foreign
and international laws, regulations, conventions and agreements relating to
pollution prevention or protection of human health or the environment
(including, without limitation, ambient air, surface water, ground water,
navigable waters, waters of the contiguous 

 18
 

 

zone, ocean waters and international waters), including, without
limitation, laws, regulations, conventions and agreements relating to
(1) emissions, discharges, releases or threatened releases of chemicals,
pollutants, contaminants, wastes, toxic substances, hazardous materials, oil,
hazardous substances, petroleum and petroleum products and by-products (“Materials
of Environmental Concern”), or (2) the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of Materials
of Environmental Concern (“Environmental Laws”) (except, as to all of the
above, where the failure to do so would not be reasonably likely to result in a
Material Adverse Change); (ii) the Borrower and each of the Subsidiaries
now have and will continue to have, to the extent required, all permits,
licenses, approvals, rulings, variances, exemptions, clearances, consents or
other authorizations required under applicable Environmental Laws (“Environmental
Approvals”) and are now and will continue to be, to the extent required, in
compliance with all Environmental Approvals required to operate their
respective businesses as then being conducted (except where the failure to
comply with, obtain or renew such permits, licenses, rulings, variances, exemptions,
clearances, consents or other authorizations would not be reasonably likely to
result in a Material Adverse Change); and (iii) neither the Borrower nor
any of the Subsidiaries have received any notice of any claim, action, cause of
action, investigation or demand by any Person, entity, enterprise or
government, or any political subdivision, intergovernmental body or agency,
department or instrumentality thereof, alleging potential liability which would
reasonably be likely to result in a Material Adverse Change, or a requirement
to incur, any investigatory costs, cleanup costs, response and/or remedial
costs (whether incurred by a governmental entity or otherwise), natural
resources, property and/or personal injury damages, attorneys’ fees and
expenses, or fines or penalties, in each case arising out of, based on or
resulting from (1) the presence, or release or threat of release into the
environment, of any Materials of Environmental Concern at any location, whether
or not owned by the Borrower or any of the Subsidiaries, or
(2) circumstances forming the basis of any violation, or alleged
violation, of any Environmental Law or Environmental Approval (“Environmental
Claim”) (other than Environmental Claims that have been fully and finally
adjudicated or otherwise determined and all fines, penalties and other costs,
if any, payable by the Borrower or any of the Subsidiaries in respect thereof
have been paid in full or which are fully covered by insurance (including
permitted deductibles)), if such costs, damages, fees, expenses, fines and/or
penalties on a consolidated basis are material in the aggregate;

(n)           Liens.  Other than as disclosed on Schedule C, there
are no Liens in respect of Secured Debt 
on any property owned by the Borrower or any Subsidiary of the Borrower;

(o)           ERISA.  The execution and delivery of this Agreement
and the consummation of the transactions hereunder will not involve any
prohibited transaction within the meaning of ERISA or Section 4975 of the
Code and no condition exists or event or transaction has occurred in connection
with any Plan resulting from the failure to comply with ERISA which is
reasonably likely to result in the Borrower or any Subsidiary or any ERISA
Affiliate incurring any liability, fine or penalty which individually or in the
aggregate would have a material adverse effect. 
Prior to the date hereof, the Borrower has delivered to the Facility
Agent a list of all the employee benefit plans to which the Borrower or any  Subsidiary or any ERISA Affiliate is a “party
in interest” (within the meaning of Section 3(14) of ERISA) or a “disqualified
person” (within the meaning of Section 4975(e)(2) of the Code);

 19
 

 

(p)           Foreign Trade Control Regulations.  None of the transactions contemplated herein
will violate any of the provisions of the Foreign Assets Control Regulations of
the United States of America (Title 31, Code of Federal Regulations,
Chapter V, Part 500, as amended), any of the provisions of the Cuban
Assets Control Regulations of the United States of America (Title 31, Code
of Federal Regulations, Chapter V, Part 515, as amended), any of the
provisions of the Libyan Sanctions Regulations of the United States of America
(Title 31, Code of Federal Regulations, Chapter V, Part 550, as
amended), any of the provisions of the Iranian Transactions Regulations of the
United States of America (Title 31, Code of Federal Regulations, Chapter V,
Part 560, as amended), any of the provisions of the Iraqi Sanctions Regulations
(Title 31, Code of Federal Regulations, Chapter V, Part 575, as
amended), any of the provisions of the Federal Republic of Yugoslavia (Serbia
and Montenegro) Sanctions Regulations (Title 31, Code of Federal
Regulations, Chapter V, Part 585 as amended) or any of the provisions
of the Regulations of the United States of America Governing Transactions in
Foreign Shipping of Merchandise (Title 31, Code of Federal Regulations,
Chapter V, Part 505, as amended); and

(q)           Lawful Purposes/Ultimate
Beneficiary.  The Borrower requires
the Credit Facility for use in connection with its lawful corporate purpose and
for no other purposes and the Borrower’s use of the Credit Facility does not
contravene any law, official requirement or other regulatory measure or
procedure applicable to the Borrower implemented to combat “money laundering”
(as defined in Article 1 of the Directive (91/308/EEC) of the Council of the
European Communities) and comparable United States Federal and state laws
applicable to the Borrower.  The Borrower
represents that it is the ultimate beneficiary of the Credit Facility
contemplated in this Agreement and will promptly notify the Lenders (by written
notice to the Facility Agent) if it ceases to be the ultimate beneficiary.
 Such written notice shall disclose the name and the address of the new
ultimate beneficiary.

SECTION 3.  ADVANCES
OF THE FACILITY/LETTERS OF CREDIT

3.1.          Purpose.  The Lenders have agreed to make the Initial
Commitment under the Credit Facility available for purposes of (a) vessel
acquisitions by the Borrower or any of its Subsidiaries, and (b) general
corporate purposes of the Borrower.  Upon
the written request of the Borrower to the Facility Agent, the Initial
Commitment under the Credit Facility may be increased by the Commitment
Increase, provided that (a) at the time of making such request, there exists no
Material Adverse Change or Event of Default and that such increase in the
Committed Amount would not cause a Material Adverse Change or Event of Default,
(b) the existing Lenders at the time of the making of such request or any new
Lenders who has become a party hereto in accordance with Section 11 hereof,
agree to make the Commitment Increase or a portion thereof available, and (c)
any such increase in the Committed Amount shall be in minimum increments of
Twenty-five Million Dollars ($25,000,000). 
The purposes of the Commitment Increase shall be the same as those for
which the Initial Commitment is to be utilized.

3.2.          Advances.  Each of the Lenders, relying upon each of the
representations and warranties set out in Section 2, hereby agrees with
the Borrower that, subject to the terms of this Agreement, it will on the
Drawdown Dates make its portion of each Advance (pro rata
in proportion to its Commitment) in Dollars or a Foreign Currency, as requested
by the Borrower, available through the Facility Agent to the Borrower in an
aggregate amount not to exceed at any one time outstanding the then available
Committed Amount, provided, however, that no further 

 20
 

 

Advances shall be made one month prior to the Termination Date.  The Initial Advance  shall be in an amount (in an integral
multiple of One Million Dollars ($1,000,000)) equal to or exceeding Five
Million Dollars ($5,000,000) and each subsequent Dollar Advance shall be in an
amount (in an integral multiple of One Million Dollars ($1,000,000)) equal to
or exceeding One Million Dollars ($1,000,000). 
Each Foreign Currency Advance shall be in an amount (in an integral
multiple of one hundred (100) units of account of the relevant currency)
equal to or exceeding the then Dollar Equivalent of One Million Dollars
(US$1,000,000).  Each Advance may only be
denominated in a single currency.  Each
Advance shall be repaid in full, as more fully set forth hereinafter, not later
than the Termination Date.  Not more than
fifteen (15) Advances may be made in each consecutive twelve (12) month
period.  Within the limits of this
Section 3.2 and upon the conditions herein provided, the Borrower may from
time to time borrow pursuant to this Section 3.2, repay Advances pursuant
to Section 5 and reborrow pursuant to this Section 3.2.  The obligation of each Lender to advance its
respective portion of any Advance shall be several and not joint with the other
Lenders.  With respect to each Advance,
no Lender shall be obliged to advance to the Borrower (a) with respect to
each Advance, an amount in excess of such Lender’s pro rata
share of such Advance and, (b) when aggregated with all other Advances
outstanding at any time, an amount in excess of its Commitment.

3.3.          Drawdown Notice.  The Borrower shall not less than
three (3) Banking Days before each Drawdown Date (other than a Drawdown
Date occurring by reason of a drawing under any Letter of Credit) serve a
notice (a “Drawdown Notice”) on the Facility Agent (which shall promptly
furnish a copy to each Lender), substantially in the form set out in
Exhibit 2, which notice shall (a) be in writing addressed to the
Facility Agent, (b) be effective on receipt by the Facility Agent,
provided it is received before 11 a.m. New York time (otherwise it shall be
deemed to have been received on the next Banking Day), (c) specify the
currency, amount and purpose of the Advance to be drawn, (d) specify the
Banking Day on which the Advance is to be drawn and the initial Interest
Period, (e) specify the disbursement instructions and (f) be
irrevocable.

3.4.          Drawdown Notice a Warranty.  Each Drawdown Notice shall be deemed to
constitute a warranty by the Borrower (a) that the representations and
warranties stated in Section 2 are true and correct on the date of such
Drawdown Notice and will be true and correct on the Drawdown Date as if made on
such date, (b) that after giving effect to the borrowing made pursuant to
such Drawdown Notice, the Credit Facility Balance shall not exceed the
Committed Amount then available hereunder pursuant to Section 3.2 and
(c) that no Event of Default nor any event which, with the giving of
notice or lapse of time, or both, would constitute an Event of Default has
occurred and is continuing.

3.5.          Notation of Advance on Note.  Each Advance, or pro  rata
portion thereof, made by a Lender to the Borrower may be evidenced by a
notation of the same made by such Lender on the grid attached to such Lender’s
Note, which notation, absent manifest error, shall be prima facie evidence of
the amount of the relevant Advance.

3.6.          Foreign Currency Advances.  The Dollar Equivalent (calculated at the
applicable  Exchange Rate from time to
time prevailing) of the aggregate principal amount of Foreign Currency Advances
at any time outstanding under the Credit Facility (together with the Dollar
Equivalent of the aggregate Stated Amount of Letters of Credit then outstanding
and denominated in currencies other than Dollars) shall not exceed fifty
percent (50%) of the then available Committed Amount.  To the extent provisions of this Agreement
require the calculation 

 21
 

 

of amounts advanced or available under the Credit Facility in Dollars,
any such amounts (if denominated in a currency other than Dollars) which are
subject to such calculation shall, for purposes of such calculations, be
notionally converted to Dollars at the relevant Exchange Rate then
prevailing.  The calculation of such
currency conversion shall be certified by the Facility Agent or the Letter of
Credit Issuer, as the case may be, which certification, absent any manifest
error, shall be conclusive and binding on the Borrower and the Lenders.  If exchange rate fluctuations (a) cause the
Credit Facility Balance to exceed the Committed Amount at any time or (b) cause
the Foreign Currency Advances (together with the Dollar Equivalent of the
aggregate Stated Amount of Letters of Credit then outstanding and denominated
in currencies other than Dollars) to exceed fifty percent (50%) of the then
available Committed Amount at any time, then the Borrower shall, within
seven (7) days of written demand of the Facility Agent, repay Advances
and, thereafter to the extent necessary, cash collateralize Letters of Credit,
in an amount equal to the excess of the Credit Facility Balance over the
Committed Amount or repay Foreign Currency Advances (together with the Dollar
Equivalent of the aggregate Stated Amount of Letters of Credit then outstanding
and denominated in currencies other than Dollars) in an amount sufficient to
reduce Foreign Currency Advances to not more than fifty percent (50%) of the
then available Committed Amount, as the case may be.

3.7.          Letters of Credit.  (a) Subject to and upon the terms and
conditions herein set forth, the Borrower may request that a Letter of Credit
Issuer at any time and from time to time prior to the Banking Day immediately
preceding the Termination Date issue, for the account of the Borrower and in
support of L/C Supportable Obligations, and subject to and upon the terms and
conditions herein set forth, such Letter of Credit Issuer agrees to issue from
time to time, irrevocable standby letters of credit denominated in Dollars (or
in such other currency as the Borrower and the Letter of Credit Issuer may
agree) and in such form as may be approved by the Letter of Credit Issuer
(singly, a “Letter of Credit” and collectively, the “Letters of Credit”).  Schedule E contains a description of all
letters of credit issued for the account of the Borrower pursuant to the
Existing Credit Agreement which will remain outstanding on the date hereof.  Each such letter of credit, including any
extension thereof (each an “Existing Letter of Credit”), shall constitute a “Letter
of Credit”, for all purposes of this Agreement and shall be deemed issued for
the purposes of Sections 3.10 and 14.2 on the date hereof.

(b)           Notwithstanding the foregoing,
(i) no Letter of Credit shall be issued, the Stated Amount of which,
(x) when added to the Letter of Credit Outstandings at such time, would
exceed Two Hundred Million Dollars ($200,000,000) or (y) when added to the
Letter of Credit Outstandings at such time plus the aggregate principal amount
of all Advances made by Lenders then outstanding would exceed the Committed
Amount at such time; and (ii) each Letter of Credit shall have an expiry date
occurring not later than the earlier of (x) the date which occurs thirty-six
(36) months after the date of issuance thereof and (y) the Banking Day
immediately preceding the Termination Date; provided that the Borrower may
request, and the Letter of Credit Issuer, the Facility Agent and the  Lenders may consent, in their respective
absolute discretion, to extend the expiry dates of certain Letters of Credit
beyond the Termination Date (singly, an “Extended Letter of Credit” and
collectively, the “Extended Letters of Credit”).  Should one or more Lenders not consent to the
requested extension, the Borrower may request and the Letter of Credit Issuer,
the Facility Agent and the remaining Lenders may agree to provide such Extended
Letter of Credit and in such case and for such purpose, the Commitments of the
Lenders will be adjusted accordingly. 
For purposes of determining compliance with limitations set forth in
this Agreement, the Dollar Equivalent of the Stated 

 22
 

 

Amount of any Letter Credit denominated in a currency other than Dollars
shall be converted at the Issuer’s Exchange Rate in effect at the time of
determination.

3.8.          Request for Issuance of Letter of
Credit.  (a) Whenever the Borrower
wishes that a Letter of Credit be issued, the Borrower shall give the
applicable Letter of Credit Issuer written notice (a “Letter of Credit Request”),
copied to the Facility Agent, substantially in the form of Exhibit 3 prior
to 11:00 a.m., New York time, at least three (3) Banking Days prior to the
proposed date of issuance (which shall be a Banking Day), which Letter of
Credit Request shall include any documents that the Letter of Credit Issuer may
reasonably require in connection therewith. 
The Letter of Credit Request shall be irrevocable.  The Letter of Credit Issuer shall promptly notify
each Lender of each Letter of Credit Request.

(b)           The Letter of Credit Issuer shall, on
the date of each issuance of a Letter of Credit by it, give each Lender and the
Borrower written notice of the issuance of such Letter of Credit.

3.9.          Letter of Credit Payments Deemed
Advances.  (a) The Borrower hereby
agrees that any payment or disbursement made by a Letter of Credit Issuer under
any Letter of Credit shall be deemed an Advance in Dollars (amounts paid or
disbursed in currencies other than Dollars or Foreign Currencies shall be
converted to Dollars at the Exchange Rate as of the date of payment or
disbursement) or the Foreign Currency in which such Letter of Credit was
denominated under this Agreement and shall bear interest for each day from the date
of such payment or disbursement at the Base Rate as in effect on each day until
the date falling three (3) Banking Days after receipt by the Facility Agent of
an Interest Notice with respect to such Advance and shall thereafter bear
interest at the Applicable Rate.  The
Letter of Credit Issuer shall give prompt notice to the Borrower and the
Lenders of each payment or disbursement and the amount thereof in, as
applicable, (x) Dollars, (y) the relevant Foreign Currency or (z), if
such payment or disbursement was in a currency other than Dollars or a Foreign
Currency, the Dollar Equivalent of such payment or disbursement (together with
the sum thereof in the relevant foreign currency and the applicable Exchange
Rate) under a Letter of Credit.

(b)           (i)            The
Letter of Credit Issuer shall not concern itself with the regularity or
propriety of any demand made under any Letter of Credit beyond the face
thereof, provided that such demand strictly complies with the terms of such
Letter of Credit and (subject to the above proviso) it shall not be a defense
to a claim of the Letter of Credit Issuer that the Letter of Credit Issuer
could have resisted the payment in respect of which such claim is made.

                                (ii)           The Borrower’s obligation to repay
any Advance deemed made under this Section 3.9 (including, in each case,
interest thereon) shall be absolute and unconditional under any and all
circumstances and irrespective of any setoff, counterclaim or defense to
payment which the Borrower may have or have had against the Letter of Credit
Issuer or any Lender, including, without limitation, any defense based upon the
failure of any drawing under a Letter of Credit to conform to the terms of the
Letter of Credit (other than the failure of the Letter of Credit Issuer to
determine that any documents required to be delivered under such Letter of
Credit have been delivered and that they comply on their face with the
requirements of such Letter of Credit) or any non-application or misapplication
by the beneficiary of the proceeds of such drawing; provided, however, that the
Borrower shall not be obligated to reimburse the Letter of Credit Issuer for
any wrongful payment made by the Letter of Credit Issuer under a Letter 

 23
 

 

of Credit as a result of acts or omissions constituting willful misconduct
or gross negligence on the part of the Letter of Credit Issuer.

3.10.        Letter of Credit Participation.  (a) Immediately upon the issuance by a Letter
of Credit Issuer of such Letter of Credit, the Letter of Credit Issuer shall be
deemed to have sold and transferred to each Lender, and each Lender (each a “Letter
of Credit Participant”) shall be deemed irrevocably and unconditionally to have
purchased and received from the Letter of Credit Issuer, without recourse or
warranty, an undivided interest and participation, in proportion to such Lender’s
Commitment, in such Letter of Credit, each substitute letter of credit, each
drawing made thereunder and the obligation of the Borrower under this Agreement
with respect thereto (although the Letter of Credit Fee shall be payable
directly to the Facility Agent for the account of the Letter of Credit
Participants as provided in Section 14.2) and any security therefor or guaranty
pertaining thereto; provided, however, that for purposes of an
Extended Letter of Credit, a Lender that did not consent to an Extended Letter
of Credit shall not be deemed to be a Letter of Credit Participant in such
Extended Letter of Credit.

(b)           In determining whether to pay under
any Letter of Credit, the Letter of Credit Issuer shall not have any obligation
relative to the respective Letter of Credit Participants other than to
determine that any documents required to be delivered under such Letter of
Credit have been delivered and that they comply on their face with the
requirements of such Letter of Credit. 
Any action taken or omitted to be taken by the Letter of Credit Issuer
under or in connection with any Letter of Credit, if taken or omitted in the
absence of gross negligence or willful misconduct, shall not create for the
Letter of Credit Issuer any resulting liability to the respective Letter of
Credit Participants.

(c)           In the event that any Letter of
Credit Issuer makes any payment under any Letter of Credit issued thereby, upon
receipt of notice thereof as provided in Section 3.9(a), each Letter of Credit
Participant shall promptly and unconditionally pay to the Letter of Credit
Issuer, the amount of such Letter of Credit Participant’s Percentage of such
payment in Dollars (or if the Letter of Credit was (x), issued in a Foreign
Currency, the currency of issuance or (y) issued in a currency other than
Dollars or the Foreign Currencies, in Dollars, based upon the Dollar Equivalent
of the deemed advance as calculated pursuant to Section 3.9(a)) and in
same day funds; provided, however, that no Letter of Credit Participant shall
be obligated to pay to the Letter of Credit Issuer its percentage of such
payment for any wrongful payment made by the Letter of Credit Issuer under a
Letter of Credit as a result of acts or omissions constituting willful
misconduct or gross negligence on the part of the Letter of Credit Issuer.  If the Letter of Credit Issuer so notifies
any Letter of Credit Participant required to fund a Drawing under a Letter of
Credit prior to 11:00 a.m., New York time, on any Banking Day, such Letter of
Credit Participant shall make available to the Letter of Credit Issuer such
Letter of Credit Participant’s Percentage of the amount of such payment on such
Banking Day in same day funds.  If and to
the extent such Letter of Credit Participant shall not have so made its
percentage of the amount of such drawing available to the Letter of Credit
Issuer, such Letter of Credit Participant agrees to pay to the Letter of Credit
Issuer, forthwith on demand such amount, together with interest thereon, for
each day from such date until the date such amount is paid to the Letter of
Credit Issuer at the overnight Federal Funds Effective Rate.  The failure of any Letter of Credit
Participant to make available to the Letter of Credit Issuer its percentage of
any drawing under any Letter of Credit shall not relieve any other Letter of
Credit Participant of its obligation hereunder to make available to the Letter
of Credit Issuer its percentage of any payment under any Letter of Credit on the
date required, as specified above, but no Letter of Credit Participant 

 24
 

 

shall be responsible for the failure of any other Letter of Credit
Participant to make available to the Letter of Credit Issuer such other Letter
of Credit Participant’s Percentage of any such payment.

(d)           The obligation of the respective
Letter of Credit Participants to make payments to the applicable Letter of
Credit Issuer with respect to Letters of Credit shall be irrevocable and not
subject to counterclaim, set-off or other defense or any other
qualification or exception whatsoever (provided that no Letter of Credit
Participant shall be required to make payments resulting from the Letter of
Credit Issuer’s gross negligence or willful misconduct) and shall be made in
accordance with the terms and conditions of this Agreement under all
circumstances, including, without limitation, any of the following
circumstances:

(i)            any lack of validity or
enforceability of this Agreement.

(ii)           the existence of any claim, set-off,
defense or other right which the Borrower may have at any time against a
beneficiary named in a Letter of Credit, any transferee of any Letter of Credit
(or any person for whom any such transferee may be acting),  any Agent or Lender or other person, whether
in connection with this Agreement, any Letter of Credit, the transactions
contemplated herein or any unrelated transactions (including any underlying
transaction between the Borrower and the beneficiary named in any such Letter
of Credit);

(iii)          any draft, certificate or other
document presented under a Letter of Credit proving to be forged, fraudulent or
invalid in any respect or any statement therein being untrue or inaccurate in
any respect; or

(iv)          the occurrence of any Event of
Default.

SECTION 4.  CONDITIONS

4.1.          Conditions Precedent to Drawdown of
the Initial Advance under the Credit Facility.  The obligation of the Lenders to make the
initial Advance available to the Borrower under this Agreement shall be
expressly subject to the following conditions precedent:

(a)           the Facility Agent shall have
received the following documents in form and substance satisfactory to the
Facility Agent and its legal advisers:

(i)            copies, certified as true and
complete by an officer of the Borrower of the resolutions of its board of
directors evidencing approval of this transaction and authorizing an
appropriate officer or officers or attorney-in-fact or attorneys-in-fact to
execute this Agreement and the Notes and any other documents required in
connection herewith on its behalf;

(ii)           copies, certified as true and
complete by an officer of the Borrower or other applicable party, of all
documents evidencing any other necessary actions (including actions by such
parties thereto other than the Borrower as may be required by the Lenders),
approvals or consents with respect to this Agreement and the Notes and the
transactions contemplated hereby and thereby;

 

 25

 

 

(iii)          copies, certified as true and complete
by an officer of the Borrower of its certificate of incorporation and by-laws;

(iv)          certificate of the Secretary or
Assistant Secretary of the Borrower certifying as to (x) the incumbency of
the signatories of the Borrower, (y) the present directors of the Borrower and
(z) the authorized, issued and outstanding capital stock of each of the Vessel
Owning/Operating Subsidiaries legally and beneficially owned by the Borrower;
and

(v)           good standing certificate of the
Borrower;

(b)           the Borrower shall have duly executed
and delivered:

(i)            this Agreement,

(ii)           the Notes, and

(iii)          the letter agreement referred to in
Section 14.3;

(c)           the Operating Accounts referred to in
Section 8.1 shall have been duly established with the Facility Agent;

(d)           the Facility Agent shall have
received a certificate of the chief financial officer of the Borrower
confirming the representations and warranties set forth in Section 2.1(l)
and containing conclusions as to the solvency of the Borrower (on a
consolidated basis);

(e)           the Agents and the Lenders shall have
received payment in full of all fees and expenses due to them on the date
hereof including, without limitation, all fees and expenses due under
Section 14;

(f)            the Facility Agent shall be
satisfied that neither the Borrower nor any of the Subsidiaries is subject to
any Environmental Claim which could give rise to a Material Adverse Change;

(g)           the Facility Agent shall have
received true and complete copies of (i) the 10K report of the Borrower
for the year ending December 31, 2005 filed with the United States
Securities and Exchange Commission and (ii) all 10Q and 8K reports filed
by the Borrower with the United States Securities and Exchange Commission since
December 31, 2005;

(h)           no Material Adverse Change having
occurred since June 30, 2006;

(i)            the Facility Agent having received
such evidence as it may require that the Borrower and each of the Subsidiaries
have insured their respective properties and other assets with underwriters and
agents acceptable to the Facility Agent in the manner required under
Section 2.1(k);

(j)            the Facility Agent shall have
received opinions from Seward & Kissel LLP, counsel to the Lenders and
the Agents, Alice Gran, Esq., in-house counsel to the Borrower and Weil,
Gotshal & Manges, special counsel to the Borrower, in such form as the
Facility Agent may agree, as well as such other legal opinions as the Lenders
shall have required as to all or any 

 26
 

 

matters under the laws of the United States of America, the State of
New York and the State of Delaware covering the representations and conditions
which are the subjects of Sections 2 and 4 or in such other form as
the Facility Agent may agree; and

(k)           the Facility Agent shall have
received evidence of the termination, cancellation and prepayment of all
amounts outstanding under the Existing Credit Facility.

4.2.          Further Conditions Precedent.  The obligation of the Lenders to make any
Advance (other than an Advance which occurs by reason of a drawing under any Letter
of Credit) available to the Borrower shall be expressly and separately from the
foregoing conditional upon, on the relevant Drawdown Date:

(a)           the Facility Agent having received a
Drawdown Notice in accordance with the terms of Section 3.3;

(b)           the representations stated in
Section 2 (updated mutatis mutandis) being true and correct as if made on
that date;

(c)           no Event of Default having occurred
and being continuing and no event having occurred and being continuing which,
with the giving of notice or lapse of time, or both, would constitute an Event
of Default; and

(d)           the Facility Agent being satisfied
that no Event of Default will arise following the drawdown of the Advance in
question by reason of the drawdown of the Advance and that no event or state of
affairs exists which constitutes, in the reasonable opinion of the Facility
Agent, a material risk that it will be unlawful or impossible for the Borrower
to make any payment or perform any material obligation as required under the
terms of this Agreement and the Notes.

4.3.          Break Funding Costs.  In the event that, on any date specified for
the making of an Advance in any Drawdown Notice, the Lenders shall not be
obliged under this Agreement to make such Advance available under this
Agreement, the Borrower shall indemnify and hold the Lenders or any of them,
fully harmless against any losses which they may sustain as a result of
borrowing or agreeing to borrow funds to meet the drawdown requirement in
respect thereof and the certificate of such Lender, absent manifest error,
shall be conclusive and binding on the Borrower as to the extent of any such
losses.

4.4.          Satisfaction after Drawdown.  Without prejudice to any of the other terms
and conditions of this Agreement, in the event the Lenders, in their sole
discretion, make an Advance prior to the satisfaction of all or any of the
conditions referred to elsewhere in Sections 4.1 and 4.2, the Borrower
hereby covenants and undertakes to satisfy or procure the satisfaction of such
condition or conditions within fourteen (14) days after the relevant
Drawdown Date (or such longer period as the Lenders, in their sole discretion,
may agree) and the failure of the Borrower to do so will constitute an Event of
Default.

SECTION 5.  REPAYMENT,
PREPAYMENT AND REDUCTION

5.1.          Repayment.  The Borrower shall repay all outstanding
Advances (subject to reductions and prepayments as hereinafter set forth) on
the Termination Date and shall also repay outstanding Advances, to the extent
required to comply with (a)  Section 3.6, (b) a reduction
of

 27
 

 

 the Credit Facility pursuant to
Section 5.3 or (c) as may be otherwise provided in this
Agreement.  Each Advance (together with
interest accrued thereon and any costs or other sums associated therewith
payable by the Borrower hereunder) shall be repaid in the currency in which
such Advance was drawn down or, in the case of such costs or sums, the currency
in which such cost or sum was incurred or booked by the Agent and the Lenders.

5.2.          Prepayment.  The Borrower may prepay, upon three (3)
days’ written notice, any outstanding Advance or any portion thereof, without
penalty, provided that such prepayment is made on the last day of the Interest
Period covering such Advance.  Each
prepayment shall be (a) in a minimum amount of:  (x) if made in Dollars, One Million
Dollars ($1,000,000) or (y) if made in a Foreign Currency, the then Dollar
Equivalent (rounded upward to the nearest multiple of one hundred (100)
units of account of the relevant currency) of One Million Dollars ($1,000,000),
(b) in an amount equal to an integral multiple of such minimum amount or
(c) in the full amount of the Advance. 
On the date of prepayment (whether pursuant to this Section or as a
consequence of any reduction in the Committed Amount) all accrued interest to
the date of such prepayment shall be paid in full with respect to Advances or
portion thereof being prepaid, together with any and all actual costs or
expenses incurred by  any Agent or Lender
in connection with any breaking of funding 
( as certified by the relevant Lenders, which certification, absent any
manifest error, shall be conclusive and binding on the Borrower).

5.3.          Permanent
Reduction of the Committed Amount of the Credit Facility.

(a)           Mandatory
Permanent Reduction.  Subject to the
following provisions of this Section 5, (i) on the fifth anniversary of the
date of this Agreement, the outstanding Committed Amount shall be reduced by an
amount equal to the Mandatory Reduction Amount, (ii) on the sixth anniversary
of the date of this Agreement, the Committed Amount shall be further reduced by
an amount equal to the Mandatory Reduction Amount, and (iii) on the Termination
Date, the Committed Amount shall be reduced to zero.

(b)           Voluntary Permanent Reduction.  The Borrower shall have the right, at any
time and from time to time, to request, without penalty, a permanent partial or
whole reduction of the Committed Amount, provided that (a) the Facility
Agent receives three (3) Banking Days’ prior written notice of such
request and (b) if the then outstanding Credit Facility Balance exceeds
the Committed Amount as so reduced, such requested reduction occurs on the last
day of the applicable Interest Period(s) for Advances (or portions thereof)
outstanding under this Agreement at least equal to the excess of the  Credit Facility Balance over the reduced
Committed Amount.  Each such partial
permanent reduction shall be equal to or shall exceed Ten Million Dollars
($10,000,000) and shall be an integral multiple of Ten Million Dollars
($10,000,000).

5.4.          Reduction of Commitment.  Simultaneously with each reduction of the
Committed Amount (whether pursuant to Section 5.3 or otherwise), each
Lender’s Commitment in respect of the Credit Facility shall be reduced pro rata in proportion to their respective interests in the
Credit Facility.

SECTION 6.  INTEREST
AND RATE

6.1.          Applicable Rate.  Except as otherwise provided in Section 3.9,
each Advance shall bear interest at a rate per annum (the “Applicable
Rate”) equal to the aggregate of

 28
 

 

(a) LIBOR for the applicable Interest Period, plus (b) the
Applicable Margin plus (c) any applicable margin or eurocurrency liability
reserve requirement imposed on any Lender as a result of the operation of
Regulation D (Title 12, Code of Federal Regulations, Chapter II,
Part 204), or any successor thereto, or similar reserve requirement
imposed upon a Lender by the jurisdiction of incorporation of such Lender or
the domicile of its lending office making its Advances, as in effect from time
to time constituting a sum payable by the Borrower under
Section 12.2.  Upon the occurrence
of an Event of Default or an event or condition which, with the giving of
notice or passage of time or both, would constitute an Event of Default, the
Credit Facility Balance or any other amount payable hereunder or under the
Notes shall bear interest thereafter at a rate (the “Default Rate”) of two
hundred basis points (200 bp) over the Applicable Rate then in effect.

6.2.          LIBOR; Interest Periods.  With respect to each Advance, the Borrower
may select Interest Periods of one (1), two (2), three (3),
six (6), nine (9) or twelve (12) months (or such longer period as the
Lenders may, in their sole discretion, agree), provided however, that in no
event may the Borrower select an Interest Period of one (1) month more
than six (6) times in any calendar year. 
The Borrower shall give an Interest Notice to the Facility Agent (which
shall promptly forward same to the Lenders) at least three (3) Banking
Days prior to the end of any then existing Interest Period, which Interest
Notice shall set forth the Interest Period selected.  If at the end of any then existing Interest
Period, the Borrower fails to give an Interest Notice as provided herein, the
following Interest Period shall have a duration of three (3) months.  LIBOR and the Applicable Rate shall be
determined by the Facility Agent two (2) Banking Days prior to the first
day of the relevant Interest Period and shall be promptly notified in writing
to the Borrower.  The Borrower’s right to
select an Interest Period shall be further subject to the restriction that no
selection of an Interest Period shall be effective unless the Lenders are
satisfied that the necessary funds will be available to the Lenders for such
period and the Facility Agent is satisfied that no Event of Default or event
which with notice or the passage of time, or both, would constitute an Event of
Default shall have occurred.  No Interest
Period may extend beyond the Termination Date.

6.3.          Interest Payments.  Interest on each Advance or portion thereof,
shall be payable quarterly in arrears and on the last day of each Interest
Period.

6.4.          Interest Due Only on Banking Day.  If interest would, under Section 6.3, be
payable on a day which is not a Banking Day, it shall then be payable on the
next following Banking Day, unless such next following Banking Day falls in the
following month in which case it shall be payable on the Banking Day
immediately preceding the day on which such interest would otherwise be
payable.

6.5.          Calculation of Interest.  All interest shall accrue from day to day and
be calculated on the actual number of days elapsed and on the basis of a three
hundred sixty (360) day year.

SECTION 7.  PAYMENTS

7.1.          Place of Payments, No Set Off.  All payments to be made hereunder by the
Borrower shall be made on the due dates of such payments to the Facility Agent
at its office located at 200 Park Avenue, New York, New York or to such
other branch of the Facility Agent as the Facility Agent may direct, without
set-off or counterclaim and free from, clear of and without deduction for, any
Taxes, provided, however, that if the Borrower shall at any time be

 29
 

 

compelled by law to withhold or deduct any Taxes from any amounts
payable to the Agents and the Lenders hereunder, then, subject to
Section 7.2, the Borrower shall pay such additional amounts in Dollars as
may be necessary in order that the net amounts received after withholding or
deduction shall equal the amounts which would have been received if such
withholding or deduction were not required and, in the event any withholding or
deduction is made, whether for Taxes or otherwise, the Borrower shall promptly
send to the Facility Agent such documentary evidence with respect to such
withholding or deduction as may be required from time to time by the Agents and
the Lenders or any thereof.

7.2.          Proof of no Withholding.  Each Lender and any transferee, assignee or
participation holder (a “Transferee”) that is not incorporated under the laws
of the United States of America or a State thereof agrees that, on the initial
Drawdown Date and prior to the first date on which any payment is due to such
Lender or Transferee hereunder, the Lender or Transferee shall deliver to the
Borrower a duly completed United States Internal Revenue Service Form W-8 BEN or
Form W-8 ECI (or applicable successor form) indicating that such Lender is
exempt from United States withholding tax. 
Each Lender or Transferee that is incorporated under the laws of the
United States or a State thereof shall, prior to the first date on which any
payment is due to such Lender or Transferee hereunder, deliver to the Borrower
a United States Internal Revenue Service Form W-9 (or applicable successor
form).  A Lender or Transferee subject to
the provisions of this Section 7.2 further undertakes to deliver to the
Borrower another copy of any of the foregoing forms on or before the date that
any such form expires or becomes obsolete or after the occurrence of any event
requiring a change in the most recent form previously delivered thereby to the
Borrower, unless in any such case an event (including, without limitation, any
change in treaty, law or regulation) has occurred prior to the date on which
any such delivery would otherwise be required which renders all such forms
inapplicable or which would prevent such Lender or Transferee from duly
completing and delivering any such form with respect to it, and such Lender or
Transferee has advised the Borrower that it is no longer exempt from United
States withholding tax or exempt from United States backup withholding tax, as
the case may be.  The Borrower shall not
be required to pay any additional amounts described in Section 7.1 hereof to
the extent that the underlying Taxes arise as a result of (i) a Lender’s or a
Transferee’s failure to provide any applicable IRS form referred to in this
Section 7.2 within sixty (60) days after the Borrower has made a written
request for such form, or (ii) the IRS determining upon audit of the Borrower
that such IRS form submitted by the Lender or a Transferee is incorrect or
invalid.

7.3.          Federal Income Tax Credits.  In connection with the foregoing, each Lender
may consult with its legal advisers, all fees and expenses of which shall be
for the account of the Borrower.  If a
Lender obtains the benefit of a credit against its liability for federal income
taxes imposed by the United States of America for all or part of the Taxes as
to which the Borrower has paid additional amounts as aforesaid then such Lender
shall reimburse the Borrower for the amount of the credit so obtained.

SECTION 8.  ACCOUNTS

8.1.          The Operating Accounts.  Except as otherwise agreed by the Facility
Agent, the Borrower and the Vessel Owning/Operating Subsidiaries shall maintain
with the Facility Agent at the office of the Facility Agent located at 200 Park
Avenue, New York, New York or at other branches of the Facility Agent the
principal operating accounts of the Borrower and the Vessel Owning/Operating
Subsidiaries if the Facility Agent has full commercial banking capability as of

 30
 

 

the date of this Agreement in the geographic areas in which the
Borrower or any of the Vessel Owning/Operating Subsidiaries operate.  The Lenders expressly acknowledge that such
operating accounts are not pledged or otherwise hypothecated to the Lenders in
connection with the Credit Facility.  The
Lenders further acknowledge that any moneys deposited in such accounts may be
utilized for any business purpose whatsoever consistent with the terms of this
Agreement.  Amounts accumulated in each
Operating Account shall bear interest for the account of the party maintaining
such account in accordance with the Facility Agent’s normal practice.

SECTION 9.  EVENTS
OF DEFAULT

9.1.          Events of Default.  In the event that any of the following events
shall occur and be continuing:

(a)           Principal and Interest Payments.  Any payment of principal due on any Mandatory
Reduction Date, the Termination Date or otherwise due hereunder or under the
Notes or under any of them or any Interest on any of the Advances, is not paid
on the due date; or

(b)           Other Payments.  Any  
amount (other than principal and interest) becoming payable under this
Agreement or under the Notes or under any of them, is not paid on the due date
or date of demand (as the case may be), and such default continues unremedied
for a period of three (3) Banking Days; or

(c)           Representations, etc.  Any representation, warranty or other
statement made by the Borrower in this Agreement or in any other instrument,
document or other agreement delivered in connection herewith or therewith
proves to have been untrue or misleading in any material respect as at the date
as of which made or affirmed; or

(d)           Impossibility, Illegality.  It becomes impossible or unlawful for the
Borrower to fulfill any of the covenants and obligations contained herein or in
the Notes or for any of the Lenders to exercise any of the rights vested in
them hereunder or under the Notes and such impossibility or illegality in the
reasonable opinion of the Majority Lenders will give rise to a Material Adverse
Change; or

(e)           Citizenship.  The Borrower or any of the Subsidiaries
owning Vessels registered under the laws and flag of the United States of
America breaches Section 10.1(a)(vii) and, provided such default does not
render any such Vessel liable to forfeiture, such default is not cured within
thirty (30) days of its occurrence; or

(f)            Covenants.  (I) The Borrower defaults in the performance
of Sections 10.1 (a)(iv), (vi) or (xx) or Sections 10.1(b)(i), (iii), (iv),
(v), (vi), (xi) or (xii)  or (II) the
Borrower defaults in the performance of Sections  10.1(a)(xvi), (xvii) or
(xviii) and such default is not cured within twenty (20) days; or

(g)           Other Covenants.  The Borrower defaults in the performance of
any other term, covenant or agreement contained in this Agreement, in the Notes
or in any other instrument, document or other agreement delivered in connection
herewith or therewith, or there occurs any other event which constitutes a
default under this Agreement or under the Notes, in each case other than an Event
of Default referred to elsewhere in this Section 9.1 and such default
continues unremedied for a period of thirty (30) days following notice
thereof by the Facility Agent; or

 31
 

 

(h)           Indebtedness. The Borrower or
any of the Subsidiaries shall (a) default in the payment when due (subject to
any applicable grace period), whether by acceleration or otherwise, of
 any Funded Debt in excess of Twenty-five Million Dollars ($25,000,000),
(b) default in the observance or performance of any agreement or condition relating
to any such Funded Debt or any other event shall occur or condition exist, the
effect of which default or other event or condition would entitle the holder or
holders of such Funded Debt to declare any such Funded Debt to become due prior
to its stated maturity or (c) default in the observance or performance of any
agreement or condition relating to  Indebtedness (other than Funded Debt)
exceeding, in the aggregate, Twenty-five Million Dollars ($25,000,000) and in
connection with such default or in connection with any non-payment default in
respect of such Indebtedness referred to in this sub-clause (c), any party
becomes entitled to (x) enforce the security for any such Indebtedness and
such party shall take steps to enforce the same, or (y) any party becomes
entitled to accelerate and accelerates such Indebtedness, unless such default,
acceleration or enforcement is being contested in good faith and by appropriate
proceedings or other acts and the Borrower and/or such Subsidiary or
Subsidiaries, as the case may be, shall set aside on its books adequate
reserves with respect thereto; or

(i)            Bankruptcy.  The Borrower or any of the Subsidiaries
commences any proceedings relating to any 
portion of its property under any reorganization, arrangement or readjustment
of debt, dissolution, winding up, adjustment, composition, bankruptcy or
liquidation law or statute of any jurisdiction (other than with respect to a
corporate re-organization unrelated to a company’s insolvency), whether now or
hereafter in effect (“Proceeding”), or there is commenced against any thereof
any Proceeding  which  Proceeding remains undismissed or unstayed
for a period of thirty (30) days; or any receiver, trustee, liquidator or
sequestrator of, or for, any thereof or any substantial portion of the property
of any thereof is appointed and is not discharged within a period of
thirty (30) days; or any thereof by any act indicates consent to or
approval of or acquiescence in any Proceeding or to the appointment of any
receiver, trustee, liquidator or sequestrator of, or for, itself or any
substantial portion of its property; or

(j)            Judgments.  (a) Any judgment or order is made the effect
whereof would be to render ineffective or invalid this Agreement, the Notes or
any thereof or (b) non-appealable final judgments or orders for the payment of
money involving matters not covered by insurance in excess of $25,000,000 (or
its equivalent in any other currency) in the aggregate for the Borrower and all
of its Subsidiaries shall be rendered against the Borrower and/or any of its
Subsidiaries and such judgments or orders shall continue unsatisfied and
unstayed for a period of thirty (30) consecutive days unless the failure to
promptly satisfy such judgment(s) would not result in a Material Adverse Change;
or

(k)           Inability to Pay Debts.  The Borrower or any of the Subsidiaries is
unable to pay or admits its inability to pay its debts as they fall due or if a
moratorium shall be declared in respect of any Funded Debt of the Borrower or
any of the Subsidiaries; or

(l)            Change of Control of the Borrower.  The Borrower shall have suffered a Change of
Control;

then the Lenders’
obligation to make the Credit Facility available shall cease and the Facility
Agent, on behalf of the Lenders, may (with the consent of the Majority Lenders)
and shall (upon the Majority Lenders’ instruction) by notice to the Borrower,
(i) declare the entire balance of the

 32
 

 

then outstanding
Advances, accrued interest and any other sums payable by the Borrower hereunder
and under the Notes due and payable whereupon the same shall forthwith be due
and payable without presentment, demand, protest or notice of any kind, all of
which are hereby expressly waived (provided that upon the happening of an event
specified in subsections (i) or (k)  of
this Section 9.1, the Notes shall be immediately due and payable without
declaration or other notice to the Borrower), (ii) terminate any Letter of
Credit which may be terminated in accordance with its terms and
(iii) direct the Borrower to pay (and the Borrower hereby agrees upon
receipt of such notice, or upon the occurrence of an Event of Default specified
in subsection (i) or (k) of this Section 9.1, it will pay) to the Facility
Agent at the office set forth in Section 7.1 such additional amounts, to be
held as security in respect of Letters of Credit then outstanding (if any),
equal to the aggregate of the then Letter of Credit Outstandings, such amounts
to be repaid to the Borrower to the extent not utilized to cover Letter of
Credit drawings.  In such event, the
Facility Agent and the Lenders may proceed to protect and enforce their rights
by action at law, suit in equity or in admiralty or other appropriate
proceeding, whether for specific performance of any covenant contained in this
Agreement or in the Notes or in aid of the exercise of any power granted herein
or therein, or the Facility Agent and the Lenders may proceed to enforce the
payment of the Notes when due or to enforce any other legal or equitable right
of the Lenders, or proceed to take any action authorized or permitted by
applicable laws for the collection of all sums due, or so declared due, on the
Notes, including, without limitation, the right to appropriate and hold or
apply (directly, by way of set-off or otherwise) to the payment of the
obligations of the Borrower hereunder and/or under the Notes (whether or not
then due) all moneys and other amounts of the Borrower , then or thereafter in
possession of the Lenders, the balance of any deposit account (demand or time,
matured or unmatured) of the Borrower then or thereafter with the Lenders and
every other claim of the Borrower then or thereafter against the Lenders.

9.2.          Indemnification.  The Borrower agrees to, and shall, indemnify
and hold each of the Agents and the Lenders 
harmless against any loss or reasonable costs or expenses (including
legal fees and expenses) which any of the Agents and the Lenders sustains or
incurs as a consequence of any default in payment of the principal amount of
any Advance or interest accrued thereon or any other amount payable hereunder
or under the Notes including, but not limited to, all actual losses incurred in
liquidating or re-employing fixed deposits made by third parties or funds
acquired to effect or maintain the Credit Facility or any part thereof and any
costs incurred by any of the Agents and the Lenders in connection with the
unwinding of any interest rate swap or other hedging arrangements.  The Borrower also agrees to reimburse and
indemnify the Letter of Credit Issuer for and against any and all losses, costs
or expenses of whatever nature which may be incurred by the Letter of Credit
Issuer in performing its respective duties in any way relating to or arising
out of its issuance of Letters of Credit; provided that the Borrower shall not
be liable for the portion of such losses, costs or expenses resulting from the
Letter of Credit Issuer’s gross negligence or willful misconduct.  To the extent the Letter of Credit Issuer is
not so indemnified by the Borrower, the Letter of Credit Participants will
reimburse and indemnify the Letter of Credit Issuer in proportion to its Letter
of Credit Participant Percentage, provided that the Letter of Credit
Participants shall not be liable for the portion of such losses, costs or
expenses resulting from the Letter of Credit Issuer’s gross negligence or
willful misconduct.  An Agent or Lender’s
certification of such loss, costs and expenses absent any manifest error, shall
be conclusive and binding on the Borrower.

 

 33

 

9.3.          Application of Moneys.  All moneys received by any of the Lenders
under or pursuant to this Agreement or the Notes after the happening of any
Event of Default shall be applied by the Facility Agent in the following
manner:

(i)            first, in or towards the payment or
reimbursement of any expenses or liabilities incurred by the Agents and the
Lenders in connection with the ascertainment, protection or enforcement of the
Agents and the Lenders’ rights and remedies hereunder and under the Notes,

(ii)           secondly, in or towards payment of
any interest and fees owing in respect of the Advances,

(iii)          thirdly, in or towards repayment of
the Advances,

(iv)          fourthly, as security in respect of
Letters of Credit then outstanding, in the aggregate amount of the then Letter
of Credit Outstandings,

(v)           fifthly, in or towards payment of all
other sums which may be owing to the Agents and the Lenders under this
Agreement or under the Notes, and

(vi)          sixthly, after all Letters of Credit
have expired or are terminated, the surplus (if any), as well as any moneys
held as security for Letters of Credit to the extent not utilized to cover
Letters of Credit, shall be paid to the Borrower or to whomsoever else may be
entitled thereto.

SECTION 10.  COVENANTS

10.1.        Covenants.  The Borrower hereby covenants and undertakes
with the Agents and the Lenders that, from the date hereof and so long as
(x) any commitments to advance credit hereunder remain in effect or
(y) any principal, interest or other moneys are owing in respect of the
Credit Facility or otherwise owing under this Agreement or under the Notes:

(a)           The Borrower will:

(i)            Know Your Client Confirmation.  Upon the
Facility Agent’s request, promptly supply, or procure the supply of, such documentation and other evidence as is reasonably requested by
the Facility Agent in order for each Lender to carry out and be satisfied with
the results of all necessary “know your client” or other checks which it is
required to carry out in relation to the transactions contemplated by this
Agreement and the Notes and to the identity of any parties to this Agreement or
the Notes (other than the Lenders) and their directors and officers;

(ii)           Performance of Agreements.  Duly perform and observe the terms of this
Agreement and the Notes;

(iii)          Compliance with Covenants.  Comply with each of its  covenants set forth in this Agreement;

(iv)          Notice of Default.  Promptly inform the Facility Agent of the
occurrence of (a) any Event of Default or of any event which with the
giving of notice or 

 34
 

 

lapse of time, or both, would constitute an Event of Default,
(b) any litigation or governmental proceeding pending or overtly
threatened against it or against any of the Subsidiaries which could reasonably
be expected to give rise to a Material Adverse Change and (c) any other
event or condition of which it becomes aware which is reasonably likely to give
rise to a Material Adverse Change;

(v)           Obtain Consents.  Without prejudice to Section 2.1 and
this Section 10.1, obtain every consent and do all other acts and things
which may from time to time be necessary or advisable for the continued due
performance of all its obligations under this Agreement and under the Notes;

(vi)          Financial Statements and Other
Information.  Deliver to the Facility
Agent (in sufficient number of copies to provide one to each Lender):

(a)           as soon as available but not later
than ninety (90) days after the end of each fiscal year of the Borrower, a
complete copy of the 10K report (or equivalent) of the Borrower filed with the
United States Securities and Exchange Commission (including audited annual
consolidated financial statements of the Borrower, in each case setting forth
comparative consolidated figures for the preceding fiscal year, together with a
report thereon by an Acceptable Accounting Firm whose opinion shall not be
qualified as to the scope of audit and as to the status of the Borrower and its
subsidiaries as a going concern), which shall be prepared by the Borrower and
certified by the chief financial officer of the Borrower, together with a
Compliance Certificate from such chief financial officer;

(b)           as soon as available but not later
than sixty (60) days after the end of each quarter of each fiscal year of the
Borrower, a copy of the 10Q report (or equivalent) of the Borrower filed with
the United States Securities and Exchange Commission which shall be prepared by
the Borrower and certified by the chief financial officer of the Borrower,
together, in each instance, with a Compliance Certificate from such chief
financial officer;

(c)           within ten (10) days of filing,
notice of the filing of all 8K reports (or equivalent) filed by the Borrower
with the United States Securities and Exchange Commission (or any similar
governmental authority) and deliver to the Facility Agent, promptly on its
request therefor, copies of such filings;

(d)           promptly upon the mailing thereof to
the shareholders of the Borrower, copies of all financial statements, reports
and proxy statements so mailed;

(e)           within ten (10) days of filing,
notice of the filing of all registration statements (other than the exhibits
thereto and any registration statements on Form S-8 or its equivalent) which
the Borrower shall have filed with the United States Securities and Exchange
Commission (or similar governmental authority) and deliver to the Facility
Agent, promptly on its request therefor, copies of such filings;

 35
 

 

(f)            such other statement or statements,
lists of property and accounts, budgets, forecasts, reports and financial
information (including a listing of all outstanding indebtedness of the
Borrower and the Subsidiaries for borrowed monies) with respect to the
business, operations and management of the Borrower and the Subsidiaries and
the employment of the assets owned or operated directly or indirectly by the
Borrower or any of the Subsidiaries as the Facility Agent may from time to time
reasonably request in writing and any material reports received by any thereof
from their independent certified accountants; and

(g)           include in each Compliance
Certificate when requested by the Facility Agent from time to time a List of
Liens, current as of the date of such Certificate;

(vii)         Qualification to Own U.S. Flag
Vessels.  Throughout the Credit
Period, if the Borrower or a Subsidiary owns a United States flag vessel (a)
the Borrower shall remain eligible, and shall cause such Subsidiary to continue
to be eligible, to document such United States flag vessel within the meaning
of 46 App. U.S.C. §12102(a) and (b) if such United States flag vessel is
operated in the coastwise trade, remain qualified, and cause such Subsidiary to
continue to be qualified, to own and operate vessels in the coastwise trade,
within the meaning of Section 2 of the Shipping Act, 1916, as amended;

(viii)        Corporate Existence.  Do or cause to be done all things necessary
to preserve and keep in full force and effect its corporate existence, as well
as the corporate existence of its Subsidiaries, and all licenses, franchises,
permits and assets necessary to the conduct of its business and the business of
its Subsidiaries;

(ix)           Books, Records, etc.  Keep, and cause each of the Subsidiaries to
keep, proper books of record and account into which full and correct entries
shall be made, in accordance with GAAP throughout the Credit Period;

(x)            Inspection.  Allow any representative or representatives
designated by the Facility Agent, subject to applicable laws and regulations,
to visit and inspect any of its or any of the Subsidiaries’ properties, and, on
request, to examine its or any of the Subsidiaries’ books of account, records,
reports and other papers (and to make copies thereof and to take extracts
therefrom) and to discuss the affairs, finances and accounts of any thereof
with its officers and executive employees all at such reasonable times and as
often as the Facility Agent  reasonably
requests;

(xi)           Taxes.  Pay and discharge, and cause each of the
Subsidiaries to pay and discharge, all taxes, assessments and governmental
charges or levies imposed upon it or upon its income or property prior to the
date upon which penalties attach thereof; provided, however, that neither it
nor any such Subsidiary shall be required to pay and discharge any such tax,
assessment, charge or levy which are being contested in good faith and by
appropriate proceedings or other acts and so long as it or such Subsidiary
shall set aside on its books adequate reserves with respect thereto;

(xii)          Compliance with Statutes, etc.  Do, or cause to be done, all things necessary
to comply with all material laws, and the rules and regulations thereunder, 

 36
 

 

applicable to itself or to any of the Subsidiaries including, without
limitation, those laws, rules and regulations relating to employee benefit
plans and environmental matters;

(xiii)         Environmental Matters.  Promptly upon the occurrence of any of the
following conditions, provide to the Facility Agent a certificate of a chief
executive officer thereof, specifying in detail the nature of such condition
and its proposed response or the response of its Environmental Affiliate:  (a) its receipt or the receipt by any
Subsidiary or any of their Environmental Affiliates of any communication
whatsoever that alleges that such person is not in compliance with any
applicable environmental law or environmental approval, if such noncompliance
could reasonably be expected to give rise to a Material Adverse Change,
(b) knowledge by it, any Subsidiary or any of their Environmental
Affiliates that there exists any Environmental Claim pending or threatened
against any such person, which could reasonably be expected to give rise to a
Material Adverse Change, or (c) any release, emission, discharge or
disposal of any material that could form the basis of any Environmental Claim
against it, any Subsidiary or any of their Environmental Affiliates if such
Environmental Claim could reasonably be expected to give rise to a Material
Adverse Change.  Upon the written request
by the Facility Agent, it will submit to the Facility Agent at reasonable
intervals, a report providing an update of the status of any issue or claim
identified in any notice or certificate required pursuant to this subsection;

(xiv)        Evidence of Insurance.  Shall, and shall procure that each of the
Subsidiaries shall, maintain the insurances on its properties described in
Sections 2.1(g) and (k), with underwriters, brokers and protection and
indemnity clubs acceptable to the Facility Agent, and the Borrower shall
provide the Facility Agent with such 
documentation as the Facility Agent should reasonably require evidencing
the same;

(xv)         Maintenance of Assets.  Maintain and keep, and cause the Subsidiaries
to maintain and keep, all properties used or useful in the conduct of their
business in good condition, repair and working order and supplied with all
necessary equipment and will make, or cause to be made, all necessary repairs,
renewals and replacements thereof so that the business carried on in connection
therewith and every portion thereof may be properly and advantageously
conducted at all times;

(xvi)        Funded Debt/Total Capitalization.  Procure that, on a consolidated basis, the
Funded Debt of the Borrower shall not exceed fifty percent (50%) of its
Total Capitalization;

(xvii)       Secured Debt/Total Capitalization.  Procure that, on a consolidated basis, the
Secured Debt of the Borrower shall not exceed twenty-five percent (25%) of
its Total Capitalization;

(xviii)      Interest Coverage Ratio.  Maintain, on a consolidated basis, an
Interest Coverage Ratio of not less than 3.0 to 1.0, determined as at the end
of each fiscal quarter;

(xix)         ERISA Matters.  Forthwith upon learning of the occurrence of
any material liability of the Borrower, any of the Subsidiaries or any ERISA
Affiliate pursuant to ERISA in connection with the termination of any Plan or
withdrawal or 

 37
 

 

partial withdrawal from any multiemployer plan (as defined in ERISA) or
of a failure to certify the minimum funding standard of Section 412 of the Code
or Part 3 of Title I of ERISA by any Plan for which the Borrower, any of the
Subsidiaries or any ERISA Affiliate is plan administrator (as defined in ERISA),
furnish or cause to be furnished to the Facility Agent  written notice thereof;

(xx)          End of Fiscal Year.  Cause, for financial reporting purposes, (a)
each of its fiscal years to end on December 31 of each year and (b) each of its
fiscal quarters to end on March 31, June 30, September 30 and December 31.

(b)           The Borrower will not, without the
prior written consent of the Lenders:

(i)            Liens.  Create, assume or permit to exist, or permit
any of its Subsidiaries to create, assume or permit to exist, any Lien,  upon any of the properties or other assets of
any thereof, except:

(a)           liens for taxes not yet payable for which adequate
reserves have been maintained;

(b)           pledges or deposits to secure obligations under workmen’s
compensation laws or similar legislation, deposits to secure public or
statutory obligations, warehousemen’s or other like liens, or deposits to
obtain the release of such liens and deposits to secure surety, appeal or
customs bonds on which it or any 
Subsidiary is the principal, as to all of the foregoing, only to the
extent arising and continuing in the ordinary course of business;

(c)           liens, charges and other encumbrances over such property
or other assets (other than Vessels) of the Borrower or any of the Vessel
Owning/Operating Subsidiaries, unless otherwise prohibited by Section
10.1(b)(xii);

(d)           with respect to Vessels, liens for crew’s wages remaining
unpaid in accordance with reasonable commercial practices or for collision or
salvage, liens in favor of suppliers of necessaries or other similar liens
arising in the ordinary course of the vessel-owning company’s business so long
as the suppliers thereof have not evidenced an intention to enforce any such
lien or liens for loss, damage or expense, which are fully covered by insurance
or, in respect of which, a bond or other security has been posted by the
company owning such Vessel with the appropriate court or other tribunal to
prevent the arrest or secure the release of any vessel from arrest on account
of such claim or lien; and

(e)           liens securing Secured Debt existing on the date of this
Agreement as set forth on Schedule C and Liens on Vessels and Helicopters
owned by the Borrower or its Subsidiaries or the earnings of, insurances
covering or requisition compensation in respect of such Vessels and
Helicopters, provided that the net book value of such Vessels and Helicopters
does not exceed thirty percent (30%) of the net book value of all Vessels and
Helicopters owned by the Borrower and its Subsidiaries, unless (i) in
connection with the acquisition of additional Vessels or Helicopters whether
through a corporate acquisition or otherwise, the Vessels or Helicopters being
so acquired (or their earnings, insurances or requisition 

 38
 

 

compensation)
are pledged as security for existing financing arrangements and are acquired
subject to those arrangements, and (ii) after giving effect to such acquisition
the aggregate of the net book value of the Vessels and Helicopters pledged
prior to such acquisition together with the net book value of the Vessels and
Helicopters so acquired exceeds thirty percent (30%) of the net book value of
all Vessels and Helicopters owned by the Borrower and its Subsidiaries after
giving effect to the acquisition, then the net book value of such additional
vessels or helicopters so pledged shall be excluded in determining compliance
with this covenant until the earlier of (x) the date such additional vessels or
helicopters and any assignment, pledge or encumbrance on their earnings,
insurance or requisition compensation are released and (y) one (1) year
following the date of acquisition;

(ii)           Sale of Assets.  Cease, or threaten to cease, its operations
or  viewed on a consolidated basis with
its Subsidiaries, sell or otherwise dispose of, or threaten to sell or otherwise
dispose of, all or substantially all of the assets thereof, or all or
substantially all of such assets are seized or otherwise appropriated except
for requisition for hire;

(iii)          Dividends.  Declare or make any distributions to its
shareholders, by dividend or otherwise, or otherwise dispose of any assets to
its shareholders in cash or in any other manner unless the Borrower and the
Subsidiaries are in full compliance with the covenants contained in this
Agreement and no Event of Default has occurred and is continuing or will occur
after giving effect to any declaration or distributions to shareholders;

(iv)          Limitations on Ability to Make
Distributions.  Create or otherwise
cause to permit to exist or become effective any consensual encumbrance or
restriction on the ability of any Subsidiary (other than those restrictions
contained in (x) the Seabulk Notes, (y) any Subsidiary Funded Debt of New
Subsidiaries or an Acquisition Subsidiary, if any, incurred or assumed in
connection with an acquisition of New Subsidiaries or (z) Title XI Debt) to (a)
pay dividends or make any other distributions on its capital stock or limited
liability company interests, as the case may be, to the Borrower or any
Subsidiary or pay any Indebtedness owed to the Borrower, (b) make any loans or
advances to the Borrower, or (c) transfer any of its property or assets to the
Borrower other than any such encumbrance or restriction agreed to by  (i) any Vessel Owning/Operating Subsidiary
incurring Title XI Debt or Secured Debt permitted hereunder to the extent such
Secured Debt is incurred in connection with the acquisition or refinancing of
its Vessels or Helicopters or (ii) any Subsidiary party to any Joint Venture in
respect of a restriction referred to in sub-clause (c) above or (iii) any
Subsidiary party to any Joint Venture to the extent such Joint Venture incurs
Indebtedness, but only to the extent the parties to such Joint Venture are
required to agree to any such restrictions;

(v)           Changes in Business.  Change or permit any of the Subsidiaries to
change, the nature of its business or commence any other business not
reasonably related to the maritime services, environmental services, energy
services, aviation services or related businesses;

(vi)          Consolidation, Merger.  Consolidate with, or merge into, or agree to
merge or become consolidated with, or merge into any corporation (it being 

 39
 

 

understood that the Borrower can merge 
into, or agree to merge or become consolidated with any corporation so
long as the Borrower is the surviving entity, any Subsidiary can merge into, or
agree to merge or consolidate with any other Subsidiary and any Subsidiary can
merge into, or agree to merge or become consolidated with the Borrower);

(vii)         Use of Proceeds.  Use the proceeds of the Credit Facility in
violation of Regulation G, T, U or X of the Board of Governors of the
Federal Reserve System, as in effect from time to time;

(viii)        Redemption/Repurchase of Securities.  Redeem or repurchase any of its outstanding
convertible subordinated bonds or any class of its capital stock now or
hereafter outstanding, unless after giving effect to any such redemption or
repurchase it is in compliance with its covenants hereunder and no Event of
Default shall have occurred and be continuing and notification of any such
redemption or repurchase shall be included in the next quarterly Compliance
Certificate delivered to the Agent;

(ix)           No Money Laundering.  In connection with this Agreement, contravene
any law, official requirement or other regulatory measure or procedure
implemented to combat “money laundering” (as defined in Article 1 of the
Directive (91/308/EEC) of the Council of European Communities);

(x)            Limitation on Investments in
Joint Ventures. Make, and will not permit any Subsidiary to make, any
Investment in any Joint Venture except, in the absence of an Event of Default,
the Borrower and any Subsidiary may make any Investment in any Joint Venture on
any date, if, immediately after giving effect to such Investment, the aggregate
book value of all  Investments made by
the Borrower and its Subsidiaries  would
not exceed thirty percent (30%) of the Borrower’s  Total Capitalization based on the most recent
financial statements of the Borrower required to be provided pursuant to
Section  10.1(a)(v); provided  however that at the time of
such Investment and immediately after giving effect thereto the Borrower shall
be in compliance with Sections 10.1(a) (xvi), (xvii) and (xviii); and provided
further, that there shall be excluded from the computation of “Investments”
hereunder any investment in securities of any type which are, at the time of
the determination being made hereunder, fully listed and registered on (a) an
exchange registered with the Securities and Exchange Commission as a national
securities exchange or (b) an equivalent recognized national securities
exchanges in any of the member countries of the European Union, Mexico,  Japan, Norway or Singapore or such other
national securities exchange approved by the Majority Banks;

(xi)           Limitation on Indebtedness.  Incur, and shall procure that the
Subsidiaries will not incur, any Indebtedness, except:

(a)           Indebtedness under this Agreement;

(b)           Existing Indebtedness as set forth in Schedule D attached
hereto, and the renewals of such Indebtedness as long as there is no resulting
increase in Indebtedness;

(c)           Indebtedness under interest rate, foreign exchange  or derivatives transactions entered into in
the ordinary course of business;

 

 40

 

(d)           Indebtedness under performance guarantees and standby
letters of credit entered into in the ordinary course of business; and

(e)           Indebtedness of the Borrower and the Subsidiaries that may
be incurred so long as immediately after giving effect to the incurrence of
such Indebtedness the Borrower shall be in compliance with Sections
10.1(a)(xvi), (xvii) and (xviii); provided  that the aggregate of
Subsidiary Funded Debt of each of the Subsidiaries, when added together, shall
not exceed thirty percent (30%) of the Total Capitalization of the Borrower on
a consolidated basis; provided, further, that when aggregating
any Subsidiary Funded Debt where more than one Subsidiary is liable in respect
thereof, the aggregate of such  
Subsidiary Funded Debt  shall not exceed
the lesser of (A) two times the amount of the outstanding Underlying Subsidiary
Funded Debt and (B) the aggregate of the Underlying Subsidiary Funded Debt and
the book value of each of the Other Subsidiaries (excluding in the case of each
of the other Subsidiaries which is not a Wholly-Owned Subsidiary, that portion
of the book value of such Other Subsidiary which represents the minority
interest holders’ share of such book value); and provided  further
that when aggregating any Subsidiary Funded Debt (i) Subsidiary Funded Debt
outstanding on the date hereof, and any refinancing thereof with the same
Subsidiaries, shall be counted only once, (ii) any Subsidiary Funded Debt of
New Subsidiaries and an Acquisition Subsidiary, if any, incurred or assumed in
connection with an acquisition of New Subsidiaries shall be counted only once
(including any refinancing thereof with the same Subsidiaries), (iii) any
Subsidiary Funded Debt incurred or assumed by one or more Subsidiaries as a
result of the acquisition (including new construction) of additional vessels or
helicopters or other assets by such Subsidiaries where such Subsidiaries’
Funded Debt is cross-collateralized shall be counted only once in respect of
such Subsidiaries and (iv) any Subsidiary Funded Debt as to which a Subsidiary
is not actually liable shall not be included; and

(xii)          Negative Pledge.  Sell, encumber or otherwise transfer, or
permit any Subsidiary to sell, encumber or otherwise transfer, any of its
Vessels, Helicopters or any of the right, title or interest of any thereof
therein, assign, pledge or otherwise encumber any earnings of, insurances
covering or requisition compensation in respect of, any of its Vessels,
Helicopters or sell, assign, pledge or otherwise transfer or encumber any of
the shares of stock of any of the Subsidiaries directly or indirectly legally
or beneficially owned by the Borrower, unless after giving effect to any such
sale, assignment, pledge, transfer or other encumbrance, the Borrower is in
compliance with Section 10.1(a)(xvii) and its other covenants and no Event of
Default shall have occurred and be continuing.

SECTION 11.  ASSIGNMENT
AND PARTICIPATIONS

This Agreement shall be
binding upon, and inure to the benefit of, the Borrower, each of the Agents and
the Lenders and their respective successors and assigns, except that the
Borrower may not assign any of its rights or obligations hereunder without the
prior written consent of the Lenders.  In
giving any consent as aforesaid to any assignment by the Borrower, the Lenders
shall be entitled to impose such conditions as they shall deem advisable. Any
Lender shall be entitled to assign the whole or any part of its rights or
obligations under this 

 41
 

 

Agreement or grant
participation(s) in the Credit Facility to any subsidiary or holding company of
such Lender, to any subsidiary company of any thereof or, in the absence of an
Event of Default, with the consent of the Borrower and the Facility Agent (in
each case not to be unreasonably withheld) to any other bank or financial
institution regularly engaged in commercial lending and such Lender shall
forthwith give notice of any such assignment or participation to the Facility
Agent and the Borrower, provided, however, that any such assignment or
participation shall be in a minimum amount of Ten Million Dollars
($10,000,000), (a) any such assignment to a Lender is to be made pursuant to an
Assignment and Assumption Agreement substantially in the form of Exhibit 5
hereto,  and (b) except as provided in Sections 14.3, no such
assignment or participation will result in any additional costs to, or
additional material requirements on, the Borrower.  The Borrower will take all reasonable actions
requested by the Lenders to effect such assignment, including, without
limitation, the execution of a written consent to such Assignment and
Assumption Agreement. Anything contained in this Section 11 to the
contrary notwithstanding, any Lender may at any time pledge all or any portion
of its interest and rights under this Agreement (including all or any portion
of any Notes) to any of the twelve Federal Reserve Banks organized under §4 of
the Federal Reserve Act, 12 U.S.C. §341. 
No such pledge or the enforcement thereof shall release the pledgor Lender
from its obligations hereunder.

SECTION 12.  ILLEGALITY,
INCREASED COST, NON-AVAILABILITY, ETC.

12.1.        Illegality.  In the event that by reason of any change in
any applicable law, regulation or regulatory requirement or in the
interpretation thereof a Lender has a reasonable basis to conclude that it has
become unlawful for such Lender to maintain or give effect to its obligations
as contemplated by this Agreement, the Lender shall inform the Borrower and the
Facility Agent to that effect, whereafter the liability of such Lender to make
its Commitment available shall forthwith cease and the Borrower shall be
required either to prepay to such Lender any portion of the then outstanding
Advances owing to such Lender immediately or, if such Lender so agrees, to
prepay such portion of the outstanding Advances to such Lender on the last day
of the then current Interest Period or Periods, in accordance with and subject
to the provisions of Section 12.6 and to pay to the Facility Agent
sufficient amounts of cash to fund any possible drawings under Letters of
Credit then in existence, such amounts to be repaid to the Borrower to the
extent not utilized to cover Letter of Credit drawings.  In any such event, but without prejudice to
the aforesaid obligations of the Borrower to prepay the outstanding Advances or
part thereof and fund any possible drawings under Letters of Credit then in
existence, the Borrower and such Lender shall negotiate in good faith with a
view to agreeing on terms for making the Commitment available from another
jurisdiction or otherwise restructuring the Commitment on a basis which is not
unlawful.

12.2.        Increased Cost.  If any change in applicable law, regulation
or regulatory requirement or in the interpretation or application thereof by
any governmental or other authority, shall:

(i)            subject a Lender to any Taxes with
respect to its income from the Credit Facility or any part thereof, or

(ii)           change the basis of taxation to a
Lender of payments of principal or interest or any other payment due or to
become due pursuant to this Agreement (other than a change in the basis
effected by the jurisdiction of incorporation of such Lender or

 42
 

 

the domicile of the Lender’s office through
which the Lender’s Commitment is made or any governmental subdivision or other
taxing authority having jurisdiction over such Lender (unless such jurisdiction
is asserted solely by reason of the activities of the Borrower or any of the
Subsidiaries) or such other jurisdiction where the Credit Facility may be
payable), or

(iii)          impose, modify or deem applicable any
reserve requirements or require the making of any special deposits against or
in respect of any assets or liabilities of, deposits with or for the account
of, or loans by, any Lender, or

(iv)          impose on any Lender any other
condition affecting the Commitment or any portion of any Advance thereunder,
and the result of the foregoing is either to increase the cost to such Lender
of making available or maintaining its Commitment or to reduce the amount of
any payment received by such Lender

then and in any such case if
such increase or reduction in the opinion of such Lender materially affects the
interests of such Lender under or in connection with this Agreement:

(a)           such Lender shall notify the Borrower
and the Facility Agent of the happening of such event,

(b)           the Borrower agrees forthwith upon
demand to pay to such Lender such amount as such Lender certifies to be
necessary to compensate such Lender for such additional cost or such reduction,
and

(c)           any such demand as is referred to in
sub-section (b) of this Section 12.2 may be made by such Lender at any
time before or after any repayment of the Advances.

12.3.        Replacement of Lender or Participant.  If the obligation of any Lender to make its
pro rata share of any Advance has been suspended or terminated pursuant to
Section 11, or if any Lender shall notify the Borrower of the happening of
any event leading to increased costs as described in Section 12.2, the Borrower
shall have the right, upon twenty (20) Banking Days’ prior written notice to
such Lender, to cause one or more banks (a “Replacement Lender (s)”) (which may
be one or more of the Lender), each such Replacement Lender to be satisfactory
to the Majority Lenders (determined for this purpose as if such transferor
Lender had no Commitment and held no interest in the Note issued to it
hereunder) and, in each case, with the written acknowledgment of the Facility
Agent, to purchase such Lender’s pro rata share of the Advances and assume the
Commitment of such Lender pursuant to an Assignment and Assumption
Agreement.  If one or more such banks are
identified by the Borrower and approved as being reasonably satisfactory to the
Majority Lenders (determined as provided above), the transferor Lender shall
consent to such sale and assumption by executing and delivering an Assignment
and Assumption Agreement.  Upon execution
and delivery of an Assignment and Assumption Agreement by the Borrower, the
transferor Lender, the Replacement Lender and the Facility Agent, and payment
by the Replacement Lender to the transferor Lender of an amount equal to the
purchase price agreed between such transferor Lender and such Replacement
Lender, such Replacement Lender shall become a Lender party to this Agreement
(if it is not already a party hereto as applicable) and shall have all the
rights and obligations of a Lender with a Commitment (which, if such
Replacement Lender is already a party hereto, shall take into

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account such Replacement Lender’s then existing Commitment hereunder)
as set forth in such Assignment and Assumption Agreement and the transferor
Lender shall be released from its obligations hereunder and no further consent
or action by any other Person shall be required.  In the event no Replacement Lender is found
or is satisfactory to the Majority Lenders, the Borrower shall have the right
to request a permanent reduction of the Committed Amount by reducing the whole
of such Lender’s commitment, provided that (a) the Facility Agent and the
Lender’s whose Commitment the Borrower seeks to reduce receive ten (10) Banking
Days prior written notice of such request and (b) such reduction occurs on the
last day of the applicable Interest Period(s) for Advances (or portions
thereof) outstanding under this Agreement. Upon such reduction, the reduced
Lender shall be released from its obligations hereunder and no further action
by any Person shall be required and the new participation percentages (as
designated in Schedule A hereto) shall be assigned to the remaining Lenders on
a pro rata basis based on their respective Commitments.  In the event that the Facility Agent, in its
capacity as a Lender, is required to sell its pro rata share of the Advances
and its Commitment hereunder pursuant to this Section 12.3, the Facility
Agent shall, promptly upon the consummation of any assignment pursuant to this
Section 12.3, resign as Facility Agent hereunder and the Borrower shall
(subject to the consent of the Majority Lenders) have the right to appoint
another Agent as successor Facility Agent, all in accordance with Section 16.12.

12.4.        Non-availability of Funds.  If the Facility Agent shall determine that,
by reason of circumstances affecting the London Interbank  Market generally, adequate and reasonable
means do not or will not exist for ascertaining the Applicable Rate for any Interest
Period, the Facility Agent shall give notice of such determination to the
Borrower.  The Borrower and the Lenders
shall then negotiate in good faith in order to agree upon a mutually agreeable
basis for funding the Advance or Advances in question, and/or for determining
the interest rate and/or Interest Period(s) to be substituted for those which
would otherwise have applied under this Agreement.  If the Borrower and the Lenders are unable to
agree upon such a substituted funding base, interest rate and/or Interest
Period(s) within thirty (30) days of the giving of such notice, the
Borrower shall repay the Credit Facility, or the relevant portion thereof, as
the case may be, to the Lenders immediately; provided, however, that if the
Borrower fails to make such repayment, the Lenders shall determine a funding
basis, set an interest rate and/or set an Interest Period(s), as the case may
be, all to take effect from the expiration of the relevant Interest Period(s)
in effect at the date of said determination notice, which rate shall be equal
to the aggregate of the Margin and the cost to the Lenders of funding the
relevant Advance or Advances.

12.5.        Determination of Losses.  A certificate or determination notice of the
Agents and the Lenders as to any of the matters referred to in this
Section 12, absent manifest error, shall be conclusive and binding on the
Borrower.

12.6.        Compensation for Losses.  Where the Advances are to be prepaid by the
Borrower pursuant to Section 12.1 the Borrower agrees simultaneously with
such prepayment to pay to the relevant Lender all accrued interest to the date
of actual payment and all other sums payable by the Borrower to such Lender
pursuant to this Agreement, together with such amounts as may be certified by
such Lender to be necessary to compensate such Lender for any actual loss,
premium or penalties incurred or to be incurred by it on account of funds
borrowed to make, fund or maintain its Commitment for the remainder (if any) of
the then current Interest Period or Periods, if any, but otherwise without
penalty or premium.

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SECTION
13.  CURRENCY INDEMNITY

13.1.        Currency Conversion. 
If for the purpose of obtaining or enforcing a judgment in any court in
any country it becomes necessary to convert into any other currency (the “judgment
currency”) an amount due in Dollars or a particular Foreign Currency, as the
case may be, under this Agreement or under the Notes, then the conversion shall
be made, in the discretion of the Facility Agent, at the rate of exchange
prevailing either on the date of default or on the day before the day on which
the judgment is given or the order for enforcement is made, as the case may be
(the “conversion date”), provided that the Facility Agent shall not be entitled
to recover under this section any amount in the judgment currency which exceeds
at the conversion date the amount in Dollars or the relevant Foreign Currency,
as the case may be, due under this Agreement and/or under the Notes.

13.2.        Change in Exchange Rate.  If there is a change in the rate of exchange
prevailing between the conversion date and the date of actual payment of the
amount due, the Borrower shall pay such additional amounts (if any, but in any
event not a lesser amount) as may be necessary to ensure that the amount paid in
the judgment currency when converted at the rate of exchange prevailing on the
date of payment will produce the amount then due under this Agreement and/or
under the Notes in Dollars or the relevant Foreign Currency; any excess over
the amount due received or collected by the Lenders shall be remitted to the
Borrower.

13.3.        Additional Debt Due.  Any amount due from the Borrower under
Section 13.2 shall be due as a separate debt and shall not be affected by
judgment being obtained for any other sums due under or in respect of this
Agreement and/or under or in respect of the Notes.

13.4.        Rate of Exchange.  The term “rate of exchange” in this
Section 13 means the rate at which the Facility Agent in accordance with
its normal practices is able on the relevant date to purchase Dollars or the
relevant Foreign Currency with the judgment currency and includes any premium
and costs of exchange payable in connection with such purchase.

SECTION 14.  FEES
AND EXPENSES

14.1.        Commitment Fee.  (a) The Borrower shall pay to the Facility
Agent, for distribution to the Lenders, a commitment fee in Dollars, payable
quarterly in arrears, computed at the Commitment Fee Rates on the average
unfunded portion of the Committed Amount (valued in Dollars) during such
quarter.  The commitment fee shall accrue
from the date hereof and shall terminate on the Termination Date. Said fee
shall be payable quarterly in arrears  at
the end of each calendar quarter. Such commitment fee shall be calculated on
the basis of actual days elapsed over a 360 day year.

14.2.        Letter of Credit and Facing Fees and
Related Charges.  In addition, the
Borrower shall pay to the Facility Agent, for distribution to the Lenders, a
fee in Dollars in respect of each Letter of Credit (the “Letter of Credit Fee”)
computed at a rate per annum equal
to the Applicable Margin in effect from time to time on the daily Stated Amount
of such Letter of Credit as reduced by any drawings thereunder.  The Borrower further agrees to pay to each
Letter of Credit Issuer, commencing at such time, a fee in Dollars in respect
of each Letter of Credit (the “Facing Fee”) computed at a rate per annum equal to one-eighth of one percent (1/8%) on the
daily Stated Amount of such Letter of Credit as reduced by any drawings
thereunder. Accrued Letter of Credit Fees and Facing Fees shall be calculated
on the basis of

 45
 

 

actual days elapsed over a 360 day year and shall be due and payable
quarterly in arrears on the first day of November, February, May and August of
each year the Credit Facility remains outstanding and on the Termination
Date.  The Borrower also agrees to pay to
the Letter of Credit Issuer all customary issuing and handling fees of the
Letter of Credit Issuer in connection with its issuance of Letters of Credit.

14.3.        Administrative Fee.  The Borrower shall pay to the Facility Agent,
for its own account, such fees as shall have been agreed in accordance with the
letter agreement dated August 24 , 2006 between the Borrower and the Facility
Agent.

14.4.        Costs, Charges and Expenses.  The Borrower agrees to pay the Agents and the
Lenders upon demand (whether or not the Credit Facility or any part thereof is
made available hereunder) all reasonable costs, charges and expenses (including
legal fees and expenses, as well as travel expenses of the Agents and the
Lenders) incurred by the Facility Agent in connection with the negotiation,
preparation, syndication, execution and enforcement or attempted enforcement of
this Agreement, the Notes or otherwise in connection with the Credit Facility, as
well as in connection with any supplements, amendments, assignments, waivers or
consents relating thereto.

14.5.        Indemnification.  Neither any Agent nor any Lender nor any
director, officer, agent or employee of any thereof shall be liable to the
Borrower for any action taken or not taken by it in connection herewith in the
absence of its own gross negligence or willful misconduct.  The Borrower hereby agrees to indemnify each
of the Agents and the Lenders, their respective Affiliates and the respective
directors, officers, agents and employees of the foregoing (each an “Indemnitee”)
and hold each Indemnitee harmless from and against any and all liabilities,
losses, damages, costs and expenses of any kind, including, without limitation,
the reasonable fees and disbursements of counsel, which may be imposed on,
incurred by or asserted against, any Indemnitee in any way relating to or
arising out of this Agreement and the Notes or any action taken or omitted by
any Indemnitee hereunder or thereunder provided that (i) no Indemnitee
shall have the right to be indemnified hereunder for such Indemnitee’s own
gross negligence or willful misconduct and (ii) to the extent permitted by
law, the Indemnitee shall provide the Borrower with prompt notice, but not
later than sixty (60) days after it becomes aware, of any claim giving
rise to any such indemnified liability.

SECTION 15.  APPLICABLE
LAW, JURISDICTION AND WAIVER

15.1.        Applicable Law.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York.

15.2.        Jurisdiction.  The Borrower hereby irrevocably submits to
the jurisdiction of the courts of the State of New York and of the United
States District Court for the Southern District of New York in any action or
proceeding brought against it by the Agents and the Lenders under this
Agreement or under any document delivered hereunder and the Borrower hereby
irrevocably appoints SEACOR Management Services Inc. with an office at 2200
Eller Drive, Fort Lauderdale, Florida 33316, its attorney-in-fact and agent for
service of summons or other legal process thereon, which service may be made by
serving a copy of any summons or other legal process in any such action or
proceeding on such agent and such agent is hereby authorized and directed to
accept by and on behalf of the Borrower service of summons and other legal
process of any such action or proceeding against the Borrower.  The service, as herein provided, of such

 46
 

 

summons or other legal process in any such action or proceeding shall
be deemed personal service and accepted by the Borrower as such, and shall be
legal and binding upon the Borrower for all the purposes of any such action or
proceeding.  Final judgment (a certified
or exemplified copy of which shall be conclusive evidence of the fact and of
the amount of any indebtedness of a Borrower to any Agent or Lender) against
the Borrower in any such legal action or proceeding shall be conclusive and may
be enforced in other jurisdictions by suit on the judgment.  The Borrower will advise the Facility Agent
promptly of any change of address of the foregoing agent or of the substitution
of another agent therefor.  In the event
that the foregoing agent or any other agent appointed by the Borrower shall not
be conveniently available for such service or if the Borrower fails to maintain
an agent as provided herein, the Borrower hereby irrevocably appoints the
person who then is the Secretary of State of the State of New York as such
attorney-in-fact and agent.  The Borrower
will advise the foregoing agent of the appointment made hereby, but failure to
so advise shall not affect the appointment made hereby.  Notwithstanding anything herein to the
contrary, the Agents and the Lenders may bring any legal action or proceeding
in any other appropriate jurisdiction.

15.3.        Waiver of Jury Trial.  IT IS MUTUALLY AGREED BY AND AMONG THE
BORROWER, AND THE AGENTS AND THE LENDERS THAT EACH OF THEM HEREBY WAIVES TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY HERETO
AGAINST ANY OTHER PARTY HERETO ON ANY MATTER WHATSOEVER ARISING OUT OF OR IN
ANY WAY CONNECTED WITH THIS AGREEMENT OR THE NOTES.

SECTION 16.  THE
AGENTS

16.1.        Appointment of Agents.  Each of the Lenders hereby irrevocably
appoints and authorizes each Agent to take such action as agent on its behalf
and to exercise such powers under this Agreement and under the Notes as are
delegated to such Agent by the terms hereof and thereof.  Neither the Agents nor any of their respective
directors, officers, employees or agents shall be liable for any action taken
or omitted to be taken by it or them under this Agreement and under the Notes
or in connection therewith, except for its or their own gross negligence or
willful misconduct.

16.2.        Distribution of Payments.  Whenever any payment is received by the
Facility Agent from the Borrower for the account of the Lenders, or any of
them, whether of principal or interest on the Notes, commissions, commitment
fees under Section 14.1, or otherwise, it will thereafter cause like funds
relating to such payment to be promptly distributed ratably to the Lenders
according to their respective Commitments, in each case to be applied according
to the terms of this Agreement.

16.3.        Holder of Interest in Notes.  The Facility Agent may treat each Lender as
the holder of all of the interest of such Lender in its Notes unless and until
the Facility Agent has received a copy of an Assignment and Assumption
Agreement evidencing the transfer of all or any part of such Lender’s interest
in the Credit Facility.

16.4.        No Duty to Examine, Etc.  The Agents shall not be under a duty to
examine or pass upon the validity, effectiveness or genuineness of this
Agreement, the Notes or any instrument, document or communication furnished
pursuant to this Agreement or the Notes or in connection with any thereof and
the Agents shall be entitled to assume that the same are valid,

 47
 

 

effective and genuine, have been signed or sent by the proper parties
and are what they purport to be.

16.5.        Agents as Lenders.  With respect to that portion of the Credit
Facility made available by it, each Agent shall have the same rights and powers
hereunder as any other Lender and may exercise the same as though it were not
an Agent, and the term “Lender” or “Lenders” shall include the Agents in their
capacity as Lenders.  Each Agent and its
Affiliates may accept deposits from, lend money to and generally engage in any
kind of business with, the Borrower as if it were not an Agent.

16.6.        Obligations of Agents.  (a) The obligations of each Agent under this
Agreement and under the Notes are only those expressly set forth herein and
therein.

(b)           No Duty to Investigate.  No Agent shall  at any time be under any duty to investigate
whether an Event of Default, or an event which with the giving of notice or
lapse of time, or both, would constitute an Event of Default, has occurred or
to investigate the performance of this Agreement and the Notes by the Borrower.

(c)           Reports and Notices.  Promptly upon receipt thereof by the Facility
Agent, the Facility Agent shall furnish each Lender with a copy of all
financial reports and notices delivered to it by the Borrower hereunder.

16.7.        Discretion of Agents.  (a) Each Agent shall be entitled to use its
discretion with respect to exercising or refraining from exercising any rights
which may be vested in it by, and with respect to taking or refraining from
taking any action or actions which it may be able to take under or in respect
of, this Agreement and the Notes, unless such Agent shall have been instructed
by the Majority Lenders to exercise such rights or to take or refrain from
taking such action; provided, however, that such Agent shall not be required to
take any action which exposes such Agent to personal liability or which is
contrary to this Agreement or applicable law.

(b)           Instructions of Majority Lenders.  Each Agent shall in all cases be fully
protected in acting or refraining from acting under this Agreement and under
the Notes in accordance with the instructions of the Majority Lenders (or, where
expressly required hereby, all the Lenders), and any action taken or failure to
act pursuant to such instructions shall be binding on all of the Lenders.

16.8.        Assumption re Event of Default.  Except as otherwise provided in
Section 16.4, the Facility Agent shall be entitled to assume that no Event
of Default, or event which with the giving of notice or lapse of time, or both,
would constitute an Event of Default, has occurred and is continuing, unless
the Facility Agent has been notified by the Borrower of such fact or has been
notified by a Lender that such Lender considers that an Event of Default or
such an event (specifying in detail the nature thereof) has occurred and is
continuing.  In the event that the Facility
Agent shall have been notified by any party in the manner set forth in the
preceding sentence of any Event of Default or of an event which with the giving
of notice or lapse of time, or both, would constitute an Event of Default, the
Facility Agent shall promptly notify the Lenders and shall take action and
assert such rights under this Agreement or the Notes as the Majority Lenders
shall request in writing.

 

 48

 

16.9.        No Liability of Agents and the
Lenders.  No Agent or Lender shall be
under any liability or responsibility whatsoever:

(a)           to the Borrower or any other person
or entity as a consequence of any failure or delay in performance by, or any
breach by, any other Lender or any other person of any of its or their
obligations under this Agreement or under the Notes;

(b)           to any Lender or Lenders as a
consequence of any failure or delay in performance by, or any breach by the
Borrower of any of its obligations under this Agreement or under the Notes; or

(c)           to any Lender or Lenders for any
statements, representations or warranties contained in this Agreement or in the
Notes or in any document or instrument delivered in connection with the
transaction hereby contemplated; or for the validity, effectiveness,
enforceability or sufficiency of this Agreement and the Notes or any document
or instrument delivered in connection with the transactions hereby
contemplated.

16.10.      Indemnification of Agents.  The Lenders agree to indemnify each Agent (to
the extent not reimbursed by the Borrower), pro rata according to the
respective amounts of their Commitments, from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever
(including reasonable legal fees and expenses incurred in investigating claims
and defending itself against such liabilities) which may be imposed on,
incurred by or asserted against, such Agent in any way relating to or arising
out of this Agreement and the Notes, any action taken or omitted by such Agent
hereunder or thereunder or the preparation, administration, amendment or
enforcement of, or waiver of any provision of, this Agreement and the Notes,
except that no Lender shall be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from such Agent’s gross negligence or
willful misconduct.

16.11.      Consultation with Counsel.  Each Agent may consult with legal counsel
selected by such Agent and shall not be liable for any action taken, permitted
or omitted by it in good faith in accordance with the advice or opinion of such
counsel.

16.12.      Resignation.  Each Agent may resign at any time by giving
sixty (60) days’ written notice thereof to the Lenders and the
Borrower.  Upon any such resignation, the
Lenders shall have the right to appoint a successor Agent.  If no successor Agent shall have been so appointed
by the Lenders and shall have accepted such appointment within sixty (60)
days after the retiring Agent’s giving notice of resignation, then the retiring
Agent may, on behalf of the Lenders, appoint a successor Agent which shall be a
bank or trust company of recognized standing. 
The appointment of any successor 
Agent shall (unless an Event of Default has occurred and is continuing)
be subject to the prior written consent of the Borrower, such consent not to be
unreasonably withheld.  After any retiring
Agent’s resignation as Agent hereunder, the provisions of this Section 16
shall continue in effect for its benefit with respect to any actions taken or
omitted by it while acting as Agent.  In
each case the resignation of an Agent shall not take effect unless a successor
Agent has been duly appointed.

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16.13.      Representations
of Lenders.  Each Lender represents
and warrants to each other Lender and each Agent that:

(i)            in making its decision to enter into
this Agreement and to make its Commitment available hereunder, it has
independently taken whatever steps it considers necessary to evaluate the
financial condition and affairs of the Borrower, that it has made an
independent credit judgment and that it has not relied upon any statement,
representation or warranty by any other Lender or any Agent; and

(ii)           So long as any portion of its
Commitment remains outstanding, it will continue to make its own independent
evaluation of the financial condition and affairs of the Borrower.

16.14.      Notification of Event of Default.  The Facility Agent hereby undertakes promptly
to notify the Lenders, and each of the Lenders hereby undertakes promptly to
notify the Facility Agent and the other Lenders, of the existence of any Event
of Default which shall have occurred and be continuing of which the Facility
Agent or such Lender has actual knowledge.

SECTION 17.  NOTICES AND DEMANDS

17.1.        Notices in Writing.  Every notice or demand under this Agreement
shall be in writing and may be given or made by telecopy.

17.2.        Addresses for Notice.  Every notice or demand shall be sent, if to
the Borrower or the Facility Agent, at the address set forth below and, if to
the Lenders at their address and telecopy numbers set forth in Schedule A
or at such other address or telecopy numbers as such party may hereafter
specify for the purpose by notice to each other party hereto.

Any notices addressed to the Borrower shall be sent as
follows:

C/O SEACOR MANAGEMENT SERVICES INC.

2200 ELLEN DRIVE

FORT LAUDERDALE, FL 33316

Telecopy No.:  (954) 524-9185

Attention:  Richard Ryan, Chief
Financial Officer

Any notices addressed to the Facility Agent shall be
sent as follows:

200 PARK AVENUE, 31st Floor

NEW YORK, NEW YORK 10166-0396

Telecopy No.:  (212) 681-3900

Attention:  Barbara Gronquist/Kevin O’Hara

ANY NOTICE SENT BY TELECOPY SHALL BE CONFIRMED BY
LETTER DISPATCHED AS SOON AS PRACTICABLE THEREAFTER.

17.3.        Notices Deemed Received.  Every notice or demand shall, except so far
as otherwise expressly provided by this Agreement, be deemed to have been received
(provided that

 50
 

 

it is received prior to 2 p.m. New York time;
otherwise it shall be deemed to have been received on the next following
Banking Day), in the case of a telecopy at the time of dispatch thereof
(provided further that if the date of dispatch is not a Banking Day in the
locality of the party to whom such notice or demand is sent it shall be deemed
to have been received on the next following Banking Day in such locality) and,
in the case of a letter, at the time of receipt thereof.

SECTION
18.  MISCELLANEOUS

18.1.        Time of Essence.  Time is of the essence of this Agreement but
no failure or delay on the part of the Agents and the Lenders to exercise any
power or right under this Agreement shall operate as a waiver thereof, nor
shall any single or partial exercise by the Agents and the Lenders of any power
or right hereunder preclude any other or further exercise thereof or the
exercise of any other power or right. 
The remedies provided herein are cumulative and are not exclusive of any
remedies provided by law.

18.2.        Unenforceable, etc.; Provisions -
Effect.  In case any one or more of
the provisions contained in this Agreement or in the Notes would, if given
effect, (i) cause such of the Borrower or any of the Subsidiaries, as the
case may be, which owns United States flag vessels to cease to be a citizen of
the United States within the meaning of Section 2 of the United States
Shipping Act 1916, as amended, or cause a transfer of any of the Vessels
registered under the laws and flag of the United States of America in violation
of Section 9 of said Act or (ii) be otherwise invalid, illegal or
unenforceable in any respect under any law applicable in any relevant
jurisdiction, said provision shall not be enforceable against the Borrower or
any of the Subsidiaries, as the case may be, but the validity, legality and
enforceability of the remaining provisions herein or therein contained shall
not in any way be affected or impaired thereby.

18.3.        References.  References herein to Sections and Schedules
are to be construed as references to sections of, and schedules to, this
Agreement.

18.4.        Further Assurances.  The Borrower agrees that if this Agreement or
the Notes shall at any time be deemed by the Facility Agent for any reason
insufficient in whole or in part to carry out the true intent and spirit hereof
or thereof, it will execute or cause to be executed such other and further
assurances and documents as in the opinion of the Facility Agent may be
required in order more effectively to accomplish the purposes of this Agreement
and the Notes.

18.5.        Entire Agreement; Amendments.  This Agreement, the Notes and the letter
agreement referred to in Section 14.4 constitute the entire agreement of the
parties hereto, including all parties added hereto pursuant to an Assignment
and Assumption Agreement.  This Agreement
may be executed in any number of counterparts, each of which shall be deemed an
original, but all such counterparts together shall constitute one and the same
instrument.  Any provision of this
Agreement or the Notes may be amended or waived if, but only if, such amendment
or waiver is in writing and is signed by the Borrower and the Majority Lenders
(and, if the rights or duties of the Facility Agent are affected thereby, by
the Facility Agent); provided that no amendment or waiver shall, unless signed
by all the Lenders, (i) increase or decrease the Commitment of any Lender
or subject any Lender to any additional obligation other than those set forth
herein, (ii) reduce the principal of or rate of interest on the Credit
Facility or any fees hereunder, (iii) postpone the date fixed for any
payment of principal of or interest on the Loan or any Letter of Credit
reimbursement or any fees or other amounts hereunder, (iv) amend Section 11,
(v) waive any condition precedent to the availability of the Credit
Facility or any

 51
 

 

Advance thereunder, (vi) amend or modify this
Section 18.5 or change the definition of “Majority Lenders” or (vii)
change any provisions relating to the pro rata nature of payments to, or
disbursements by, the Lenders.

18.6.        Adjustments.  If any Lender (a “Benefitted Lender”) shall
at any time receive any payment of all or any part of the Advances made by such
Lender, or interest thereon, or receive any collateral in respect thereof
(whether voluntarily or involuntarily, by set-off, pursuant to events or
proceedings of the nature referred to in Section 9.1(i) or (k), or
otherwise) in a greater proportion than any such payment to and collateral
received by any other Lender in respect of such other Lender’s Advances, or
interest thereon, such Benefitted Lender shall purchase for cash from each of
the other Lenders such portion of each such other Lender’s Advances, and shall
provide each of such other Lenders with the benefits of any such collateral, or
the proceeds thereof, as shall be necessary to cause such Benefitted Lender to
share the excess payment or benefits of such collateral or proceeds ratably
with each of the Lenders, provided, however, that if all or any portion of such
excess payment or benefits is thereafter recovered from such Benefitted Lender,
such purchase shall be rescinded, and the purchase price and benefits returned,
to the extent of such recovery, but without interest.  The Borrower agrees that each Lender so purchasing
a portion of another Lender’s Advances may exercise all rights of payment
(including, without limitation, rights of set-off, to the extent not prohibited
by law) with respect to such portion as fully as if such Lender were the direct
holder of such portion.

18.7.        USA Patriot Act Notice; OFAC and Bank
Secrecy Act.  The Facility Agent
hereby notifies the Borrower that pursuant to the requirements of the USA
Patriot Act (Title III of Pub. L. 107-56, signed into law October 26, 2001)
(the “Act”), and the Facility Agent’s policies and practices, the Facility
Agent and each of the Lenders is required to obtain, verify and record certain
information and documentation that identifies the Borrower, which information
includes the name and address of the Borrower and such other information that
will allow the Facility Agent and the Lenders to identify the Borrower in
accordance with the Act.  In addition,
the Borrower shall (a) ensure that no Person who owns a controlling interest in
or otherwise controls the Borrower or any subsidiary of any thereof is or shall
be listed on the Specially Designated Nationals and Blocked Person List or
other similar lists maintained by the Office of Foreign Assets Control (“OFAC”),
the Department of the Treasury or included in any Executive Orders, (b) not use
or permit the use of the proceeds of the Facility to violate any of the foreign
asset control regulations of OFAC or any enabling statute or Executive Order
relating thereto, and (c) comply, and cause any of its subsidiaries to comply,
with all applicable Bank Secrecy Act laws and regulations, as amended.

[SIGNATURE PAGES TO FOLLOW]

 

 52

 

IN WITNESS whereof the parties hereto have caused this
Agreement to be duly executed by their duly authorized representative as of the
day and year first above written.

	
  SEACOR HOLDINGS INC., as
  Borrower

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/ DICK FAGERSTAL

  	
   

  	
   

  
	
  Name: Dick Fagerstal

  	
   

  
	
  Title: Senior Vice President

  	
   

  
	
   

  	
   

  
	
  DNB NOR BANK ASA, as Facility Agent, Mandated Lead
  Arranger, Bookrunner and Lender

  	
  NORDEA BANK NORGE ASA, GRAND CAYMAN BRANCH as
  Syndication Agent, Mandated Lead Arranger, Bookrunner and Lender

  
	
   

  	
   

  
	
  By

  	
  /s/ BARBARA GRONQUIST

  	
   

  	
  By

  	
  /s/ Anne Engen

  	
   

  
	
  Name: Barbara Gronquist

  	
  Name: Anne Engen

  
	
  Title: Senior Vice President

  	
  Title: Vice President

  
	
   

  	
   

  
	
  By

  	
  /s/ KEVIN O’HARA

  	
   

  	
  By

  	
  /s/ MARTIN KAHM

  	
   

  
	
  Name: Kevin O’Hara

  	
  Name: Martin Kahm

  
	
  Title: Vice President

  	
  Title: Vice President

  
	
   

  	
   

  
	
  THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND as
  Structuring Agent, Mandated Lead Arranger and Lender

  	
  FORTIS CAPITAL CORP., as Documentation Agent,
  Mandated Lead Arranger and Lender

  
	
   

  	
   

  
	
  By

  	
  /s/ RUSSELL PARKER

  	
   

  	
  By

  	
  /s/ SVEIN ENGH

  	
   

  
	
  Name: Russell Parker

  	
  Name: Svein Engh

  
	
  Title: Senior Director

  	
  Title: Managing Director

  
	
   

  	
   

  
	
  By

  	
  /s/ JOHN LOWE

  	
   

  	
  By

  	
  /s/ C. TOBIAS BACKER

  	
   

  
	
  Name: John Lowe

  	
  Name: C. Tobias Backer

  
	
  Title: Associate Director

  	
  Title: Senior Vice President

  

 

 

 

	
  LLOYDS TSB BANK PLC, 
  as Lender

  	
  THE GOVERNOR AND COMPANY OF THE BANK OF IRELAND, as
  Lender

  
	
   

  	
   

  
	
  By

  	
  /s/ DAVID SUMNER

  	
   

  	
  By

  	
  /s/ JOHN HARTIGAN

  	
   

  
	
  Name: David Sumner

  	
  Name: John Hartigan

  
	
  Title: Associate Director

  	
  Title: Associate Director

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  	
  By

  	
  /s/ PAUL PACKARD

  	
   

  
	
  Name:

  	
  Name: Paul Packard

  
	
  Title:

  	
  Title: Head of Maritime Industries

  
	
   

  	
   

  
	
  DEUTSCHE SCHIFFSBANK AG, as Lender

  	
  HSH NORDBANK AG, as Lender

  
	
   

  	
   

  
	
  By

  	
  /s/ MALTE SCHULTE-TRUX

  	
   

  	
  By

  	
  /s/ BERGER

  	
   

  
	
  Name: Malte Schulte-Trux

  	
  Name: Berger

  
	
  Title: Deputy General Manager

  	
  Title: Vice President

  
	
   

  	
   

  
	
  By

  	
  /s/ TANJA LAVERER

  	
   

  	
  By

  	
  /s/ KAI BRAUNSDORF

  	
   

  
	
  Name: Tanja Laverer

  	
  Name: Kai Braunsdorf

  
	
  Title: Assistant General Manager

  	
  Title: Vice President

  
	
   

  	
   

  
	
  NIBC BANK N.V., as Lender

  	
  WHITNEY NATIONAL BANK, as Lender

  
	
   

  	
   

  
	
  By

  	
  /s/ HANS SIMONS

  	
   

  	
  By

  	
  /s/ JOSH JONES

  	
   

  
	
  Name: Hans Simons

  	
  Name: Josh Jones

  
	
  Title: Associate Director

  	
  Title: Vice President

  
	
   

  	
   

  
	
  By

  	
  /s/ HALBART VOLKER

  	
   

  	
   

  	
   

  	
   

  
	
  Name: Halbart Volker

  	
   

  
	
  Title: Managing Director

  	
   

  
	
   

  	
   

  
	
  BAYERISCHE HYPO-UND VEREINSBANK AG, as Lender

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/ STEPHEN SOMITSCH

  	
   

  	
   

  
	
  Name: Stephen Somitsch

  	
   

  
	
  Title: Associate Department Director

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/ PETER ISECKE

  	
   

  	
   

  
	
  Name: Peter Isecke

  	
   

  
	
  Title: Credit Analyst

  	
   

  
	
   

  	
   

  

 

 

SCHEDULE
A

PARTICULARS
OF LENDERS

 

	
  Name and Address

  	
   

  	
  Commitment

  	
   

  	
  Participation Percentage

  	
   

  
	
  DnB NOR Bank ASA

  200 Park Avenue

  New York, NY 10166-0396

  U.S.A

  	
   

  	
  $

  	
  45,000,000

  	
   

  	
  15.0000

  	
  %

  
	
  Nordea Bank Norge ASA,
  Grand Cayman Branch

  11 West 42nd Street, 7th Floor

  New York, NY 10036

  U.S.A.

  	
   

  	
  $

  	
  30,000,000

  	
   

  	
  10.0000

  	
  %

  
	
  The Governor and
  Company

  of the Bank of Scotland 

  Pentland House

  8 Lochside Avenue

  Edinburgh EH12 9DJ

  Scotland

  	
   

  	
  $

  	
  30,000,000

  	
   

  	
  10.0000

  	
  %

  
	
  Fortis Capital Corp.

  520 Madison Avenue, 33rd Floor

  New York, NY 10022

  U.S.A.

  	
   

  	
  $

  	
  30,000,000

  	
   

  	
  10.0000

  	
  %

  
	
  Lloyds TSB Bank plc

  10 Gresham Street

  London EC2V 7AE

  United Kingdom

  	
   

  	
  $

  	
  30,000,000

  	
   

  	
  10.0000

  	
  %

  
	
  The Governor and
  Company of the Bank of Ireland

  Lower Baggot

  Dublin 1

  Ireland

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  8.3333

  	
  %

  
	
  Deutsche Schiffsbank AG

  Domshof 17

  28195 Bremen

  Germany

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  8.3333

  	
  %

  
	
  HSH Nordbank AG

  Gerhart Hauptmann-Platz 50

  D-20095 Hamburg

  Germany

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  8.3333

  	
  %

  
	
  NIBC Bank N.V.

  Carnegieplein 4

  2517 KJ

  The Hague

  Netherlands

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  8.3333

  	
  %

  
	
  Whitney National Bank

  228 St. Charles Street

  New Orleans, LA 70130-2601

  U.S.A.

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
  6.6667

  	
  %

  
	
  Bayerische Hypo-und Vereinsbank AG

  Alter Wall 22

  20457 Hamburg

  Germany

  	
   

  	
  $

  	
  15,000,000

  	
   

  	
  5.0000

  	
  %

  

 

 

 

 

SCHEDULE
B

VESSEL/HELICOPTER
OWNING/OPERATING SUBSIDIARIES AND OTHER SUBSIDIARIES

(as of October 16, 2006)

SEACOR HOLDINGS INC.

	
  SUBSIDIARIES:

  	
   

  	
  INTEREST

  	
   

  	
  OWNER/OPERATOR

  of VESSELS

  	
   

  	
  OWNER/OPERATOR

  of HELICOPTERS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Offshore
  Aviation Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Era FBO LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Era Helicopters,
  LLC1

  	
   

  	
  66.62

  	
  %

  	
   

  	
   

  	
  X

  	
   

  
	
  Era Helicopters
  (Mexico) LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Era Helicópteros
  de México S. de R.L. de C.V.

  	
   

  	
  99

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Era Leasing LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Tex-Air
  Helicopters, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  KFS Air Medical
  LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk
  International, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Delaware Tanker
  Holding I, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Delaware Tanker
  Holding II, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Delaware Tanker
  Holding III, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Delaware Tanker
  Holding IV, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Delaware Tanker
  Holding V, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Kinsman Lines,
  Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Lightship
  Limited Partner Holdings, LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Lightship
  Partners, LP

  	
   

  	
  66.67

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Lightship
  Tankers I LLC

  	
   

  	
  75

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Lightship
  Tankers II LLC

  	
   

  	
  75

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Lightship
  Tankers III LLC

  	
   

  	
  75

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Lightship Tankers
  IV LLC

  	
   

  	
  75

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Lightship
  Tankers V LLC

  	
   

  	
  75

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Lightship Tanker
  Holdings, LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Lone Star Marine
  Services, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Asset
  Management LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Energy
  Carriers, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Energy
  Transport, Inc.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Seabulk
  Petroleum Transport, Inc.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Seabulk Ocean
  Transport, Inc.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Seabulk General
  Partner LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Global
  Carriers, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Global
  Transport, Inc.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Seabulk Overseas
  Transport, Inc.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Seabulk Marine
  International, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk
  Transmarine II, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk
  Transport, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Tankers,
  Ltd.

  	
   

  	
  80

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk America
  Partnership, Ltd.

  	
   

  	
  82

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk
  Transmarine Partnership, Ltd.

  	
   

  	
  42

  	
  %

  	
  X

  	
   

  	
   

  	
   

  

 

 

	
  Seabulk
  Transmarine Partnership, Ltd.

  	
   

  	
  25

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Seabulk
  Offshore, Ltd.

  	
   

  	
  99

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  SeabulkArizona
  USA, Inc.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Seabulk
  Transmarine Partnership, Ltd.

  	
   

  	
  33

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Seabulk Marine
  Services, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Offshore
  Holdings, Inc.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Seabulk Freedom,
  Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Tims I,
  Inc.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Seabulk Offshore
  Operators, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Offshore
  International, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Offshore
  Abu Dhabi, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Offshore
  Dubai, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Offshore
  Dubai, LLC

  	
   

  	
  49

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Offshore
  Operators, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Maranta S.A.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Offshore
  Marine Management, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Offshore
  Operators Nigeria Limited

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Offshore
  Operators Trinidad Limited

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Offshore
  S.A.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Offshore
  U.K. Ltd.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Offshore
  Venture Holdings Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Africa,
  Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Angola
  Holdings, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Offshore
  de Angola, Lda.

  	
   

  	
  50

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Command,
  Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Offshore
  do Brasil Ltda.

  	
   

  	
  50

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Seabulk Congo,
  Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk E.G.
  Holdings, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Offshore
  Equatorial Guinea, S.L.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Eagle
  II, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Offshore
  do Brasil Ltda.

  	
   

  	
  50

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Seabulk Heron,
  Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Jasper,
  Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Lincoln,
  Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Mallard,
  Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Master,
  Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Nyon,
  Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk South
  Atlantic, Inc.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Seabulk Swift,
  Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Offshore
  Vessel Holdings Inc.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Seabulk
  Operators, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Partners
  LP

  	
   

  	
  98

  	
  %

  	
   

  	
   

  	
   

  	
   

  

 

 

 

	
  Seabulk Tankers,
  Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Seabulk Towing,
  Inc.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Masquerade II,
  Inc.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Seabulk Towing
  Services, Inc.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  SEACOR
  Acadian Companies Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Galaxie Offshore
  L.L.C.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Gilbert Cheramie
  Boats L.L.C.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Graham Offshore
  LLC

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Graham Offshore
  Barges LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  McCall’s Boat
  Rentals L.L.C.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  McCall’s Boat
  Rentals Barges LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  International Chartering Inc.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  SEACOR Marine
  LLC

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  SEACOR Marine
  (Europe) B.V.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR Vision
  LLC

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  SEACOR Vision
  Barges LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR Marine
  International LLC

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  SEACOR Marine
  International Barges LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR Marine
  (Nigeria) L.L.C.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  SEACOR Offshore
  LLC

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  SEACOR Offshore
  Barges LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  CapSea Holdings
  LLC

  	
   

  	
   

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR Tankers
  LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Bulk Carriers Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Capital Corporation

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  F2B Investments
  Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACAP Leasing
  Associates LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
  X

  	
   

  
	
  Arctic Leasing
  LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACAP Leasing
  Associates II LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACAP Leasing
  Associates III LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACAP Leasing
  Associates IV LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACAP Leasing
  Associates V LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Capital (Singapore) Pte. Ltd.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Capital (UK) Ltd.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Boston Putford
  Offshore Safety Ltd.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Putford Ltd.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Southern Crewing
  Services Ltd.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Warbler Shipping
  Ltd.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  West Coast
  Standby Ltd.

  	
   

  	
  50

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Capital Two Ltd.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Communications Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Environmental Services Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  International
  Response Corporation

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  

 

 

 

	
  Seacor
  Environmental Services (Middle East)

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Venezuelan
  Response Corporation, C.A.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  National
  Response Corporation

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  NRC
  Environmental Services Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  National
  Response Corporation of Puerto Rico

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  OSRV Holdings,
  Inc.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  SEACOR
  Environmental Products LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Environmental Services International Ltd.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  IRC do Brasil
  Ltda.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Environmental Services (Thailand) Ltd.

  	
   

  	
  99

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Environmental Services (U.K.) Ltd.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  International Ltd.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Management Services Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Marine (Asia) Pte. Ltd.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Marine (Bahamas) Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Marine (Isle of Man) Ltd.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Marine (International) Ltd.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR Marine
  Guernsey Ltd.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Meridian Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR Asset
  Management LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR Payroll
  Management LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Ocean Boats Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Offshore Services Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Worldwide Inc.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Congo Seacor
  Marine S.A.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR Worldwide
  Barges LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Sea-Gil
  Holdings, L.L.C.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR-SMIT
  Holdings B.V.

  	
   

  	
  80

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR Offshore
  Supplyships One Ltd.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR-SMIT
  Offshore (International) Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR-SMIT
  Offshore (International) Ltd.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR Offshore
  (Marshall Islands) Ltd.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  SEACOR-SMIT
  Offshore I Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR-SMIT
  Offshore (Worldwide) Ltd.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Stirling
  Shipping Holdings Limited

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Stirling
  Shipping Company Limited

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Bruce Marine
  Limited

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Stirling Marine
  Limited

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Stirling
  Offshore Limited

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Haven Shipping
  Company Limited

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Stirling
  ShipManagement Limited

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  The
  O’Brien’s Group, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  

 

 

 

	
  O’Brien Oil
  Pollution Service, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Response
  Management Associates, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  VEESEA
  Holdings Inc.

  	
   

  	
  98.2

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Gem Shipping
  Inc.

  	
   

  	
  100

  	
  %

  	
  X

  	
   

  	
   

  	
   

  
	
  Gem Shipping
  Ltd.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Storm Shipping
  Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Vector-Seacor
  Ltd.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR
  Inland River Transport Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SCF Marine Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SCF Barge Line
  LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SCF Boats LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SCF/JAR
  Investments LLC

  	
   

  	
  97

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SCFM Towing LLC

  	
   

  	
  55

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SCF Fleeting LLC

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  Weston Barge
  Line, Inc.

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  SCF Towboat III,
  L.P.

  	
   

  	
  50

  	
  %

  	
   

  	
   

  	
   

  	
   

  

 

1 Tex-Air
owns 33.38%. Tex-Air will be merged into OAI

 

 

SCHEDULE
C

EXISTING
LIENS

	
  SECURED OBLIGATIONS

  	
   

  	
   

  	
   

  	
  COLLATERAL

  
	
  $1,706,931 - Promissory
  Note - 

  Banco Nacional e Desenvolviemento Economico e Social (BNDES)

  Seabulk Offshore do Brasil Ltda.

  	
   

  	
  SEABULK IPANEMA

  
	
  $6,591,652 - Promissory
  Note - 

  Banco Nacional e Desenvolviemento Economico e Social (BNDES)

  Seabulk Offshore do Brasil Ltda.

  	
   

  	
  SEABULK BRASIL

  
	
  $6,492,586 -
  BNDES - Promissory Note - 

  Banco Nacional e Desenvolviemento Economico e Social (BNDES)

  Seabulk Offshore do Brasil Ltda.

  	
   

  	
  SEABULK ANGRA

  
	
  $38,229,188 - Title
  XI Financing - Marad - 

  Lightship Tankers I, LLC

  	
   

  	
  SEABULK ENERGY

  
	
  $39,469,680 - Title
  XI Financing - Marad - 

  Lightship Tankers II, LLC

  	
   

  	
  HMI BRENTON REEF

  
	
  $39,631,000 - Title
  XI Financing - Marad - 

  Lightship Tankers III, LLC

  	
   

  	
  SEABULK PRIDE

  
	
  $39,705,000 - Title
  XI Financing - Marad - 

  Lightship Tankers IV, LLC

  	
   

  	
  SEABULK ARCTIC

  
	
  $39,802,000 - Title
  XI Financing - Marad - 

  Lightship Tankers V, LLC

  	
   

  	
  SEABULK MARINER

  
	
  $12,778,508 - Capital
  Leases:

  	
   

  	
   

  
	
  Norlease, Inc. - Seabulk Towing, Inc.

  	
   

  	
  BROWARD

  
	
  Norlease, Inc. - Seabulk Towing, Inc.

  	
   

  	
  ST. JOHNS

  
	
  Norlease, Inc. - Seabulk Towing, Inc.

  	
   

  	
  NEW RIVER

  
	
  AmSouth Leasing Ltd. Seabulk Towing, Inc.

  	
   

  	
  ESCAMBIA

  
	
  TA Marine III, Inc. - Seabulk Towing, Inc.

  	
   

  	
  SUWANEE RIVER

  
	
  $9,898,756 - Capital
  Lease:

  	
   

  	
   

  
	
  Wells FargoBank Northwest,
  National Association - 

  Seabulk Africa, Inc.

  	
   

  	
  SEABULK AFRICA

  

 

 

 

SCHEDULE
D

EXISTING
INDEBTEDNESS (1)

	
  SECURED DEBT

  	
   

  	
   

  	
   

  	
  6/30/2006

  	
   

  
	
  Promissory Notes
  - Ipanema

  	
   

  	
  1,706,931

  	
   

  
	
  Promissory Notes
  - Brazil

  	
   

  	
  6,591,652

  	
   

  
	
  Promissory Notes
  - Angra

  	
   

  	
  6,492,586

  	
   

  
	
  Title XI - Tanker
  I

  	
   

  	
  38,229,188

  	
   

  
	
  Title XI - Tanker
  II

  	
   

  	
  39,469,680

  	
   

  
	
  Title XI - Tanker
  III

  	
   

  	
  39,631,000

  	
   

  
	
  Title XI - Tanker
  IV

  	
   

  	
  39,705,000

  	
   

  
	
  Title XI Debt - Tanker
  V

  	
   

  	
  39,802,000

  	
   

  
	
  Scott Financial

  	
   

  	
  2,818

  	
   

  
	
  Capital Leases -
  Tugs

  	
   

  	
  12,778,508

  	
   

  
	
  Capital Leases -
  Africa

  	
   

  	
  9,898,756

  	
   

  
	
  Total Secured Debt

  	
   

  	
  234,308,118

  	
   

  

 

	
  UNSECURED Debt

  	
   

  	
   

  	
   

  	
  6/30/2006

  	
   

  
	
  5 7/8% Senior Notes

  	
   

  	
  200,000,000

  	
   

  
	
  7.2% Senior Notes

  	
   

  	
  134,500,000

  	
   

  
	
  2.875% Convertible Debt

  	
   

  	
  250,000,000

  	
   

  
	
  9.5% Senior Notes

  	
   

  	
  138,500,000

  	
   

  
	
  Total
  Unsecured Debt

  	
   

  	
  723,000,000

  	
   

  

 

	
  Less:

  	
   

  	
   

  	
   

  
	
  Debt Discount, 5 7/8% Senior Notes

  	
   

  	
  (1,608,252

  	
  )

  
	
  Debt Discount, 7.2% Senior Notes

  	
   

  	
  (176,494

  	
  )

  
	
  Debt Discount, Promissory Notes - Ipanema

  	
   

  	
  (135,140

  	
  )

  
	
  Debt Discount, Promissory Notes - Brazil

  	
   

  	
  (614,812

  	
  )

  
	
  Debt Discount, Promissory Notes - Angra

  	
   

  	
  (608,610

  	
  )

  
	
  Debt Discount, Title XI - Tanker III

  	
   

  	
  (4,183,489

  	
  )

  
	
  Debt Discount, Title XI - Tanker IV

  	
   

  	
  (4,191,492

  	
  )

  
	
  Debt Discount, Title XI - Tanker V

  	
   

  	
  (4,201,604

  	
  )

  
	
   

  	
   

  	
  (15,719,893

  	
  )

  

 

 

 

	
  Plus:

  	
   

  	
   

  	
   

  
	
  Debt Premium, 9.5% Senior Notes

  	
   

  	
  15,556,420

  	
   

  
	
  Debt Premium, Title XI - Tanker I

  	
   

  	
  527,164

  	
   

  
	
  Debt Premium, Title XI - Tanker II

  	
   

  	
  555,773

  	
   

  
	
  Debt Premium, Capital Leases - Tugs

  	
   

  	
  894,096

  	
   

  
	
  Debt Premium, Capital Leases - Africa

  	
   

  	
  351,980

  	
   

  
	
   

  	
   

  	
  17,885,433

  	
   

  

 

	
  Less: (Portion
  Due Within One Year)

  	
   

  	
   

  	
   

  
	
  Promissory Notespanema

  	
   

  	
  (136,554

  	
  )

  
	
  Promissory Notes - Brazil

  	
   

  	
  (437,015

  	
  )

  
	
  Promissory Notes - Angra

  	
   

  	
  (426,914

  	
  )

  
	
  Title XI - Tanker I

  	
   

  	
  (619,641

  	
  )

  
	
  Title XI - Tanker II

  	
   

  	
  (651,490

  	
  )

  
	
  Title XI - Tanker III

  	
   

  	
  (1,211,000

  	
  )

  
	
  Title XI - Tanker IV

  	
   

  	
  (1,213,000

  	
  )

  
	
  Title XI - Tanker V

  	
   

  	
  (1,216,000

  	
  )

  
	
  Scott Financial

  	
   

  	
  (2,818

  	
  )

  
	
  Capital Leases - Tugs

  	
   

  	
  (1,215,051

  	
  )

  
	
  Capital Leases - Africa

  	
   

  	
  (1,188,163

  	
  )

  
	
  Portion of Long-Term Debt

  	
   

  	
  (8,317,646

  	
  )

  
	
  Total
  Long-Term Debt

  	
   

  	
  951,156,011

  	
   

  

 

(1)           As of 6/30/06 but
includes adjustments for loans paid off since 6/30/06

 

SCHEDULE
E

EXISTING
LETTERS OF CREDIT

	
  Letters of Credit

  	
   

  	
   

  	
   

  	
  9/30/2006

  	
   

  
	
  Beneficiary: Botas International Ltd expires
  10/27/06

  	
   

  	
  USD 762,000

  	
   

  
	
  Beneficiary: Tat
  Hong Plant Leasing expires 1/15/07

  	
   

  	
  SGD 800,000

  	
   

  

 

 

 

EXHIBIT 1

PROMISSORY NOTE

____________, 2006

New York, New York

FOR VALUE RECEIVED, the undersigned SEACOR HOLDINGS
INC., a corporation incorporated under the laws of the State of Delaware (the “Borrower”),
hereby promises to pay to the order of [INSERT NAME OF LENDER], [INSERT
JURISDICTION OF ORGANIZATION OF LENDER AND TYPE OF ENTITY] (the “Lender”), with
offices at [INSERT ADDRESS OF LENDER], the principal sum of [INSERT AMOUNT OF
COMMITMENT OF LENDER] United States Dollars or the equivalent thereof where a
portion of the Credit Facility is in a Foreign Currency or Currencies (as the
same may be reduced from time to time pursuant to Sections 5.3 of the Credit
Agreement hereinafter defined) or, if less, the aggregate unpaid principal
amount of the Advances from time to time outstanding made by ___________ to the
Borrower pursuant to the Credit Agreement dated November __, 2006, by and
among, (1) the Borrower,(2) DnB NOR Bank ASA (“DnB NOR”), Nordea Bank Norge
ASA, Grand Cayman Branch (“Nordea”), The Governor and Company of the Bank of
Scotland (“Bank of Scotland”) and Fortis Capital Corp., a corporation organized
under the laws of the State of Connecticut (“Fortis”), as mandated lead
arrangers, (3) DnB NOR and Nordea, as Bookrunners, (4) DnB NOR, as
facility agent (the “Facility Agent”), (5) Nordea, as syndication agent,
(6) Bank of Scotland, as structuring agent, (7) Fortis, as
documentation agent, and (8) the banks and financial institutions whose
names and addresses are set out in Schedule A to the Credit Agreement, as
lenders (as amended, restated, modified or supplemented from time to time, the “Credit
Agreement”).  The Borrower shall repay
all outstanding Advances on the Termination Date.  This promissory note may be prepaid on such
terms as provided in the Credit Agreement. 
The Borrower shall repay or prepay each Advance (or portion thereof),
together with interest accrued thereon, in the same currency as that in which
such Advance was denominated when it was originally advanced by the Lenders.

Words and expressions used herein and defined in the
Credit Agreement shall have the same meanings herein as therein defined.

The Advances shall bear interest for the period(s) of
one (1), two (2), three (3), six (6), nine (9) or twelve (12)
months (or such longer period as may be agreed by the Lenders), as selected by
the Borrower pursuant to Section 6.2 of the Credit Agreement, at the rate per
annum which is equal to the aggregate of, (a) LIBOR plus (b) the
Applicable Margin, as provided in Section 6.1 of the Credit Agreement.  Any payments under the Credit Agreement or
hereunder not paid when due, whether by acceleration or otherwise, shall bear
interest thereafter at a rate per annum equal to two hundred (200) basis
points over the Applicable Rate then in effect with respect thereto at the time
of such default.

All payments of principal and interest hereunder are
payable in lawful money of the United States of America, the United Kingdom,
The Netherlands, France, or Singapore, the 

 

Euro or any other currency freely convertible into
U.S. Dollars, as the case may be, to the Facility Agent at its offices located
at 200 Park Avenue, New York, New York or to such other branch of the
Facility Agent as the Facility Agent may direct, in immediately available same
day funds.

The Facility Agent may endorse the amount, currency
and the date of the making of each Advance and any payment or prepayment
thereof on the grid annexed hereto and made a part hereof, which endorsement
shall constitute prima  facie evidence of the accuracy of the
information so endorsed; provided, however, that any failure to
endorse such information on such grid shall not in any manner affect the
obligation of the Borrower to make payment of principal and interest in
accordance with the terms of this promissory note.

If this promissory note or any payment required
hereunder becomes due and payable on a day which is not a Banking Day the due
date thereof shall be extended until the next following Banking Day unless such
next following Banking Day falls in the following calendar month, in which
case, this promissory note or any payment required hereunder shall be due on
the immediately preceding Banking Day. 
Any interest shall be payable during any such extension at the rate
applicable immediately prior thereto.

This promissory note is one of the Notes referred to
in, and is entitled to the security and benefits of, the Credit Agreement.  Upon the occurrence of any Event of Default
under the Credit Agreement, the principal hereof and accrued interest hereon may
be declared to be and shall thereupon become, forthwith, due and payable.

Presentment, demand, protest and notice of dishonor of
this promissory note or any other notice of any kind are hereby expressly
waived.

THE UNDERSIGNED,AND BY ITS ACCEPTANCE HEREOF, THE
LENDER, HEREBY WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
BROUGHT BY EITHER PARTY HERETO OR ANY BENEFICIARY HEREOF ON ANY MATTER
WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS PROMISSORY NOTE.

THIS PROMISSORY NOTE SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

IN WITNESS WHEREOF, the Borrower has executed and
delivered this Promissory Note on the date and year first above written.

	
  

  	
  SEACOR HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

ADVANCES AND PAYMENTS OF PRINCIPAL

	
   

  	
   

  	
  Amount and

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Currency of

  	
   

  	
  Amount of Principal

  	
   

  	
  Outstanding

  	
   

  	
  Notation

  	
   

  
	
  Date

  	
   

  	
  Each Advance

  	
   

  	
  Paid or Repaid

  	
   

  	
  Balance

  	
   

  	
  Made By

  	
   

  

 

 

 

EXHIBIT 2

FORM OF

DRAWDOWN NOTICE

[Date]

DnB NOR Bank ASA

200 Park Avenue

New York, New York 10016

Drawdown Notice

Pursuant to Section 3.3 of the Revolving Credit
Facility Agreement dated as of November __, 2006 (the “Credit Agreement”)
made by and among (1) ourselves as the “Borrower”,,(2) DnB NOR Bank ASA (“DnB
NOR”), Nordea Bank Norge ASA, Grand Cayman Branch (“Nordea”), The Governor and
Company of the Bank of Scotland (“Bank of Scotland”) and Fortis Capital Corp.,
a corporation organized under the laws of the State of Connecticut (“Fortis”),
as mandated lead arrangers, (3) DnB NOR and Nordea, as Bookrunners,
(4) DnB NOR, as facility agent (the “Facility Agent”), (5) Nordea, as
syndication agent, (6) Bank of Scotland, as structuring agent,
(7) Fortis, as documentation agent, and (8) the banks and financial
institutions whose names and addresses are set out in Schedule A to the
Credit Agreement, the undersigned hereby gives the Facility Agent notice of a
drawdown of an Advance.  All terms used
herein, shall have the meanings given thereto in the Credit Agreement.

Drawdown Date:

Amount:

Currency:

Purpose:

Initial Interest
Period(s):

Disbursement
Instructions:

The undersigned hereby represents and warrants that
(a) the representations and warranties stated in Section 2 of the Credit
Agreement (updated mutatis  mutandis) are true and correct on the
date hereof and will be true and correct on the Drawdown Date specified above
as if made on such date, except for changes in (i) the Vessels owned, (ii)
recorded liens relating thereto or (iii) Liens in respect of Secured Debt, and
(b) no Event of Default has occurred and is continuing or will have occurred
and be continuing on the Drawdown Date, and no event has occurred or is
continuing which, with the giving of notice or lapse of time, or both, would
constitute an Event of Default.

In the event that the
Lenders shall not be obliged under the terms of the Credit Agreement to make
the above requested Advance (including, without limitation any such failure
resulting from the failure of the Borrower to satisfy a condition precedent set
forth in Section 4 of the Credit Agreement)(1), the Borrower shall indemnify
and hold fully harmless the Lenders or any of them, against any losses which
the Lenders or any of them, may sustain as a result of borrowing or agreeing to
borrow funds to meet the requested drawdown and the certificate of the

(1)          Insert the following in
the initial Drawdown Notice -- “or the failure of the Credit
Agreement to become effective”

 

relevant Lender shall, absent manifest error, be
conclusive and binding on the Borrower as to the extent of any such losses.

This Drawdown
Notice is effective upon receipt by you and shall be irrevocable.

	
  SEACOR HOLDINGS INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

EXHIBIT 3

FORM OF

LETTER OF CREDIT REQUEST

	
  No. ______(1)

  	
  Dated: [Date]

  

 

DnB NOR Bank ASA

New York Branch

200 Park Avenue

New York, NY 10016-0396

Attn.:      ____________

Ladies and
Gentlemen.

The undersigned, SEACOR
HOLDINGS INC., refers to the Revolving Credit Facility Agreement, dated
November _____, 2006 (as amended, modified or supplemented from time to
time, the “Credit Agreement”, the capitalized terms defined therein being used
herein as therein defined), made by and among (1) the undersigned, as the “Borrower”,
(2) DnB NOR Bank ASA (“DnB NOR”), Nordea Bank Norge ASA, Grand Cayman Branch (“Nordea”),
The Governor and Company of the Bank of Scotland (“Bank of Scotland”) and
Fortis Capital Corp., a corporation organized under the laws of the State of
Connecticut (“Fortis”), as mandated lead arrangers, (3) DnB NOR and
Nordea, as Bookrunners, (4) DnB NOR, as facility agent (the “Facility
Agent”), (5) Nordea, as syndication agent, (6) Bank of Scotland, as
structuring agent, (7) Fortis, as documentation agent, and (8) the
banks and financial institutions whose names and addresses are set out in
Schedule A to the Credit Agreement.

The undersigned hereby
requests that the Letter of Credit Issuer issue on behalf and for the account
of the undersigned a Letter of Credit on ________, ____ (the “Date of Issuance”)
in the aggregate amount of _____________. 
The requested Letter of Credit shall be denominated in ________.

The beneficiary of the
requested Letter of Credit will be ___________ and such Letter of Credit will
be in support of ____________(2) and will have a stated termination date of
________, ____.

The undersigned hereby
certifies that the following statements are true on the date hereof, and will
be on the Date of Issuance:

(a)                                  the
representations and warranties contained in Section 2 of the Credit Agreement
are and will be true and correct in all material respects, before and after
giving effect to the issuance of the Letter of Credit requested hereby, as
though made on the Date of Issuance, unless stated to relate to a specific
earlier date, in which case such representations and warranties shall be true
and correct in all material

(1)          Letter of Credit Request
Number.

(2)          Insert description of
the L/C Supportable Obligations to which this letter of Credit Request relates.

 

respects
as of such earlier date, except for changes in (i) the Vessels owned, (ii)
recorded liens relating thereto or (iii) Liens in respect of Secured Debt;  and

(b)                                 no
Event of Default has occurred and is continuing, or would result after giving
effect to the issuance of the Letter of Credit requested hereby.

Copies of all
documentation, if any, with respect to the supported transaction are attached
hereto.

	
  

  	
  SEACOR HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

EXHIBIT 4

FORM OF COMPLIANCE
CERTIFICATE

[Date]

DnB
NOR Bank ASA

200 Park Avenue, 31st Floor

New York, NY 10166

Enclosed, please find the
Compliance Certificate required to be delivered under the Credit Facility
Agreement, dated November ___, 2006 relating to our $300,000,000 credit
facility.  The following information has
been assembled from the attached financial statements, dated [Date].  The brief
section descriptions outlined below serves to summarize the full text and
should there be any conflict in the interpretation of the text used herein and
in the Credit Facility Agreement, the latter shall govern (‘000’ have been
omitted in all dollar amounts below). 

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Compliance

  	
   

  	
   

  
	
  Section 3.6 Foreign Currency
  Advances - Max. 50% of Amount:

  	
   

  	
   

  	
   

  	
  (yes/no/n.a.)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  British Pound Advances:

  	
   

  	
  •   [GBP]

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •   [$exchange rate]

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •   [$equivalent]

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EuroAdvances:

  	
   

  	
  •   [€]

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •   [$exchange rate]

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •   [$equivalent]

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Singapore Dollar Advances:

  	
   

  	
  •   [SGD]

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •   [$exchange rate]

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •   [$equivalent]

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Foreign Currency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Advances (in $  terms):

  	
   

  	
  •   [A]

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maximum Foreign

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Currency Advances

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Allowed

  	
   

  	
  $ • [B][50%
  of Facility]

  	
   

  	
   

  

 

 

 

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Repayment required:

  	
   

  	
  None [A - B]

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.1(a)(iv) Board of
  Directors and Section 9.1(l)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Change of Control of SEACOR
  Holdings Inc.:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR Holdings may not suffer
  any change of control, as defined.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The current members of the
  Board of Directors are (any change from previous

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  list to be noted):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 2
 

 

 

	
  

  	
   

  	
   

  	
   

  	
  Compliance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (yes/no/n.a.)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.1 (a)(vi)(a) Annual
  Financial Statements

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  As soon as available but no
  later than 90 days after the end

  	
   

  	
   

  	
   

  	
  •

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  of each fiscal year as audited
  by an Acceptable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting Firm. Together with
  a Compliance Certificate.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.1 (a)(vi)(b)
  Quarterly Financial Statements

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  As soon as available but no
  later than 60 days of the end of

  	
   

  	
   

  	
   

  	
  •

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  each fiscal quarter. Together
  with a Compliance Certificate.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.1 (a)(xvi) Funded
  Debt / Total Capitalization:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maximum of 50%. Total
  Capitalization includes Funded Debt

  	
   

  	
   

  	
   

  	
  •

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  and Consolidated Net Worth.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Funded Debt:

  	
   

  	
  $ • [A]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CONSOLIDATED NET WORTH:

  	
   

  	
  $ • [B]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Capitalization:

  	
   

  	
  $ • [A+B]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ratio:

  	
   

  	
  • [A/A+B]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.1 (a)(xvii) Secured
  Debt / Total Capitalization:

  	
   

  	
   

  	
   

  	
  •

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secured Debt: on a
  consolidated basis, the aggregate of any

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Indebtedness secured or
  collateralized by a Lien

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maximum 25%.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Senior Debt:

  	
   

  	
  $ • [A]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Capitalization:

  	
   

  	
  $ • [B]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ratio:

  	
   

  	
    • [A/B]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 3
 

 

 

	
  

  	
   

  	
   

  	
   

  	
  Compliance

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (yes/no/n.a.)

  	
   

  	
   

  
	
  Section 10.1 (a)(xviii)
  Interest Coverage Ratio:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maintain on a consolidated
  basis (a) EBITDA

  	
   

  	
   

  	
   

  	
  •

  	
   

  	
   

  
	
  divided by (b) interest
  payments (including interest

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  attributable to capitalized
  leases) made during the

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  four (4) fiscal quarters
  preceding the date on

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  which such ratio is determined
  at ratio of

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  not less than 3.0 to 1.0.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EBITDA (LAST 12 MONTHS)

  	
   

  	
  $ • [A]

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INTEREST PAYMENTS (LAST

  	
   

  	
  $ • [B]

  	
   

  	
   

  	
   

  	
   

  
	
  4 QUARTERS)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INTEREST COVERAGE RATIO:

  	
   

  	
    • [A/B]

  	
   

  	
   

  
	
  Section 10.1(b)(x) Limitations
  on Investments in Joint Venture

  	
   

  	
   

  	
   

  	
  •

  	
   

  	
   

  
	
  Will not make, and will not
  permit any Subsidiary to make,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  any Investment in any Joint
  Venture except if such Investment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  does not exceed 30% of the
  Total Capitalization, and

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  except as otherwise provided
  in Section [10.1(b)(a)(xviii)]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INVESTMENT

  	
   

  	
  $ • [A]

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL CAPITALIZATION

  	
   

  	
  $ • [B]

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PERCENTAGE OF INVESTMENT

  	
   

  	
    • [(A/B)
  * 100]

  	
   

  	
   

  
	
  TO TOTAL CAPITALIZATION

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 4
 

 

 

	
  

  	
   

  	
   

  	
   

  	
  Compliance

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (yes/no/n.a.)

  	
   

  	
   

  
	
  Section 10.1(b)(xi)
  Limitations on Indebtedness

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Will not incur, and shall
  procure that the Subsidiaries will not incur,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  any Indebtedness, except as
  otherwise provided in Section

  	
   

  	
   

  	
   

  	
  •

  	
   

  	
   

  
	
  10.1(b)(xi), and except
  Indebtedness may be incurred so long

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  as Seacor is in compliance
  with Sections 10.1(a)(xvi), (xvii), (xviii)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  and (xviii); and provided that
  the aggregate of Subsidiary Funded

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Debt of each of the
  Subsidiaries, when added together, shall not

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  exceed 30% of the Total
  Capitalization of the Borrower on a

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  consolidated basis; provided,
  further, that when aggregating any

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subsidiary Funded Debt, it is
  done as provided in Section

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1(b)(xi)(e)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AGGREGATE SUBSIDIARY

  	
   

  	
  $ • [A]

  	
   

  	
   

  	
   

  	
   

  
	
  FUNDED DEBT

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL CAPITALIZATION

  	
   

  	
  $ • [B]

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PERCENTAGE OF AGGREGATE

  	
   

  	
    • [(A/B)
  * 100]

  	
   

  	
   

  
	
  SUBSIDIARY FUNDED DEBT TO

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL CAPITALIZATION

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  To the best of my knowledge
  there are currently no outstanding defaults under the Loan

  	
   

  	
   

  	
   

  	
   

  
	
  Agreement and the related
  documentation excerpt as expressly outlined below:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Very truly yours,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SEACOR HOLDINGS INC.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: ____________________

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 5

EXHIBIT 5

FORM OF

ASSIGNMENT AND ASSUMPTION AGREEMENT

ASSIGNMENT AND
ASSUMPTION AGREEMENT (this “Agreement”), dated as of                         ,
           between [NAME  OF  ASSIGNOR], a [bank/corporation]
organized under the laws of [JURISDICTION  OF  INCORPORATION  OF  ASSIGNOR] (the “Assignor”),
and [NAME  OF
ASSIGNEE], a [bank/corporation]
organized under the laws of [JURISDICTION  OF  INCORPORATION  OF  ASSIGNEE] (the “Assignee”),
supplemental to:

(A) that
certain Revolving Credit Facility Agreement, dated as of November __, 2006
(as amended, restated, modified or supplemented from time to time, together the
“Credit Agreement”), made by and among (1) Seacor Holdings Inc. (“the Borrower”),
(2) DnB NOR Bank ASA (“DnB NOR”), Nordea Bank Norge ASA, Grand Cayman Branch (“Nordea”),
The Governor and Company of the Bank of Scotland (“Bank of Scotland”) and
Fortis Capital Corp., a corporation organized under the laws of the State of
Connecticut (“Fortis”), as mandated lead arrangers, (3) DnB NOR and
Nordea, as Bookrunners, (4) DnB NOR, as facility agent (the “Facility
Agent”), (5) Nordea, as syndication agent, (6) Bank of Scotland, as
structuring agent, (7) Fortis, as documentation agent, and (8) the
banks and financial institutions whose names and addresses are set out in
Schedule A to the Credit Agreement , pursuant to which the Lenders agreed
to make available to the Borrower a reducing revolving credit facility (the “Credit
Facility”) in the maximum principal amount which may be outstanding at any time
(in Advances and/or Letters of Credit) of Three Hundred Million Dollars
($300,000,000) (with a request for such amount to be increased up to Four
Hundred Fifty Million Dollars ($450,000,000, as provided in the Credit
Agreement) or the equivalent in Pounds Sterling, Euros, Singapore Dollars or
any combination thereof; provided, however, that at no time may the amount of
outstanding Letters of Credit be  in
excess of Two Hundred Million Dollars ($200,000,000); and]

(B) each
promissory note made by the Borrower payable to the order of each Lender dated
November          , 2006
(collectively, the “Notes”) evidencing the Advances under the Credit Agreement.

Except as otherwise defined
herein, terms defined in the Credit Agreement have the same meaning when used
herein.

In consideration of the
premises and of other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree
as follows:

1.             The Assignor hereby sells, transfers and assigns to the
Assignee •% of the Assignor’s right, title and interest in, to and under the:
(a) the Credit Agreement, (b) the Notes (including, without
limitation, its interest in the indebtedness evidenced by the Notes) and (c)
the 

 

Letters
of Credit.  Simultaneously herewith, the
Assignee shall pay to the Assignor an amount equal to the purchase price agreed
between them in a separate writing.

2.             The Assignee hereby assumes •% of the obligations of the
Assignor under the Credit Agreement and shall hereafter be a “Lender” for all
purposes of the Credit Agreement and the Notes and a “Letter of Credit
Participant” for purposes of the Letters of Credit, the Assignee’s Commitment
thereunder being $• in respect of the Credit Facility.

3.             The [Assignor] [Assignee] shall pay an administrative
fee of Five Thousand Dollars ($5,000) to the Facility Agent to reimburse the
Facility Agent for its cost in processing the assignment and assumption herein
contained.

4.             If it is not a U.S. person, the Assignee shall, on or
prior to the date hereof and from time to time thereafter when required by
applicable provisions of the United States Internal Revenue Code, provide the
Borrower with two duly completed copies of Internal Revenue Service Form W-
8BEN or W-8ECI, as appropriate, or any successor form prescribed by the
Internal Revenue Service, certifying that the Assignee is entitled to benefits
under an income tax treaty to which the United States is a party that exempts
withholding tax on payments under the Credit Agreement and the Notes or
certifying that the income receivable pursuant to the Credit Agreement or the
Notes is effectively connected with the conduct of a trade or business in the
United States.

5.             The Assignee irrevocably designates and appoints the
Agent as its agent, and irrevocably authorizes the Agent, to take such action
on its behalf and to exercise such powers on its behalf under the Credit
Agreement and under the Notes, each as supplemented hereby, as are delegated to
the Agent by the terms of each thereof, together with such powers as are
reasonably incidental thereto all as provided in Section 16 of the Credit
Agreement.

6.             The Assignor makes no representation or warranty in
connection with, and shall have no responsibility with respect to, the
solvency, financial condition or statements of the Borrower, or the validity
and enforceability of the obligations of the Borrower in respect of the Credit
Agreement or the Notes.  The Assignee
acknowledges that it has, independently and without reliance on the Assignor or
the Agent, and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement and will continue to be responsible for making its own independent
appraisal of the business, affairs and financial condition of the Borrower.

7.             Every notice or demand under this Agreement shall be in
writing and may be given by telecopy and shall be sent (with a copy to the
Agent) as follows:

If to the Assignor:

	
  

  	
  [NAME OF ASSIGNOR]

  
	
   

  	
  [ADDRESS]

  
	
   

  	
  Telecopy No.:

  
	
   

  	
  Attention:

  

 

 2
 

 

 

If to the Assignee::

 

	
  

  	
  [NAME
  OF ASSIGNEE]

  
	
   

  	
  [ADDRESS]

  
	
   

  	
  Telecopy No.:

  
	
   

  	
  Attention:

  

 

If to the Facility Agent:

 

	
  

  	
  200 Park Avenue

  
	
   

  	
  New York, New
  York 10166-0396

  
	
   

  	
  Telecopy No.
  212-681-3900

  
	
   

  	
  Attention: Kevin
  O’Hara

  

 

Any notice sent by telecopy
shall be confirmed by letter dispatched as soon as possible thereafter.  The Assignee
designates its address given above as its address for notices pursuant to
Section 17.2 of the Credit Agreement.

8.             EACH OF THE ASSIGNOR AND
THE ASSIGNEE HEREBY WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM BROUGHT BY EITHER PARTY HERETO ON ANY MATTER WHATSOEVER ARISING
OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT.

9.             THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

10.           This Agreement may be executed in several counterparts
with the same effect as if the parties executing such counterparts executed one
agreement as of the date hereof and each counterpart when executed and
delivered shall be deemed to be an original and all of such counterparts
together shall constitute this Agreement.

 3
 

 

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be duly executed as of the day and year first above written.

 

	
  [NAME OF ASSIGNOR] 

  	
   

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
  By: 

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
  Name:

  
	
   

  	
  Title: 

  	
   

  	
   

  	
  Title: 

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
  By: 

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
  Name:

  
	
   

  	
  Title: 

  	
   

  	
   

  	
  Title: 

  

 

Consented and Agreed this

            day of                         ,
         :

 

	
  SEACOR HOLDINGS INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DNB NOR BANK, ASA,

  	
   

  	
   

  	
   

  
	
  as Facility Agent

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
   

  	
   

  	
   

  

 

 4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}]]