Document:

Exhibit 4.2

 

EXECUTION
COPY

 

 

	
   

  

 

AMENDED
AND RESTATED

SUBORDINATED
INDENTURE

 

between

 

WESTPAC
BANKING CORPORATION

 

and

 

JPMORGAN
CHASE BANK,

FORMERLY
THE CHASE MANHATTAN BANK

 

Dated
as of July 1, 1999

and
Amended and Restated as of May 15, 2003

 

Providing
for Issuance of Subordinated

Debt Securities in Series

	
   

  

 

 

Reconciliation and tie between this Amended and
Restated Subordinated Indenture, dated as of July 1, 1999 and Amended and
Restated as of May 15, 2003, and the Trust Indenture Act of 1939, as amended.

 

	
  Trust Indenture Act of 1939 

  Section

  	
   

  	
  Subordinated Indenture 

  Section

  
	
   

  	
   

  	
   

  	
   

  
	
  310 (a)

  	
  (1)

  	
   

  	
  6.11

  
	
  (a)

  	
  (2)

  	
   

  	
  6.11

  
	
  (a)

  	
  (3)

  	
   

  	
  TIA

  
	
  (a)

  	
  (4)

  	
   

  	
  Not Applicable

  
	
  (b)

  	
   

  	
   

  	
  6.9; 6.11; TIA

  
	
   

  	
   

  	
   

  	
   

  
	
  311 (a)

  	
   

  	
   

  	
  TIA

  
	
  (b)

  	
   

  	
   

  	
  TIA

  
	
   

  	
   

  	
   

  	
   

  
	
  3.12(a)

  	
   

  	
   

  	
  6.7

  
	
  (b)

  	
   

  	
   

  	
  TIA

  
	
  (c)

  	
   

  	
   

  	
  TIA

  
	
   

  	
   

  	
   

  	
   

  
	
  313 (a)

  	
   

  	
   

  	
  6.1; TIA

  
	
  (b)

  	
   

  	
   

  	
  TIA

  
	
  (c)

  	
   

  	
   

  	
  6.6; TIA

  
	
  (d)

  	
   

  	
   

  	
  6.6

  
	
   

  	
   

  	
   

  	
   

  
	
  314 (a)

  	
   

  	
   

  	
  9.6; 9.7; TIA

  
	
  (b)

  	
   

  	
   

  	
  Not applicable

  
	
  (c)

  	
  (1)

  	
   

  	
  1.2

  
	
  (c)

  	
  (2)

  	
   

  	
  1.2

  
	
  (c)

  	
  (3)

  	
   

  	
  Not Applicable

  
	
  (d)

  	
   

  	
   

  	
  Not Applicable

  
	
  (e)

  	
   

  	
   

  	
  1.2

  
	
  (f)

  	
   

  	
   

  	
  TIA

  
	
   

  	
   

  	
   

  	
   

  
	
  315 (a)

  	
   

  	
   

  	
  TIA

  
	
  (b)

  	
   

  	
   

  	
  6.5

  
	
  (c)

  	
   

  	
   

  	
  6.1

  
	
  (d)

  	
  (1)

  	
   

  	
  TIA

  
	
  (d)

  	
  (2)

  	
   

  	
  TIA

  
	
  (d)

  	
  (3)

  	
   

  	
  TIA

  
	
  (e)

  	
   

  	
   

  	
  TIA

  
	
   

  	
   

  	
   

  	
   

  
	
  316(a)

  	
   (last
  sentence)

  	
   

  	
  1.1

  

 

i

 

	
  Trust Indenture Act of 1939 

  Section

  	
   

  	
  Subordinated Indenture 

  Section

  
	
   

  	
   

  	
   

  	
   

  
	
  (a)

  	
  (1)(A)

  	
   

  	
  5.8

  
	
  (a)

  	
  (1)(B)

  	
   

  	
  5.7

  
	
  (b)

  	
   

  	
   

  	
  5.2; 5.10

  
	
  (c)

  	
   

  	
   

  	
  TIA

  
	
   

  	
   

  	
   

  	
   

  
	
  317(a)

  	
  (1)

  	
   

  	
  5.3

  
	
  (a)

  	
  (2)

  	
   

  	
  5.4

  
	
  (b)

  	
   

  	
   

  	
  9.3

  
	
   

  	
   

  	
   

  	
   

  
	
  318(a)

  	
   

  	
   

  	
  1.11

  
	
  (b)

  	
   

  	
   

  	
  TIA

  
	
  (c)

  	
   

  	
   

  	
  1.11; TIA

  

 

This reconciliation and tie section does not
constitute part of the Subordinated Indenture.

 

ii

 

Table of Contents

 

	
   

  	
   

  	
  Page

  
	
   

  
	
  ARTICLE I

  
	
   

  
	
  DEFINITIONS AND OTHER PROVISIONS OF GENERAL
  APPLICATION

  
	
   

  
	
  Section 1.1.

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  Section 1.2.

  	
   

  	
  Compliance Certificates and Opinions

  	
   

  	
  10

  
	
  Section 1.3.

  	
   

  	
  Form of Documents Delivered to Trustee

  	
   

  	
  11

  
	
  Section 1.4.

  	
   

  	
  Acts of Holders

  	
   

  	
  11

  
	
  Section 1.5.

  	
   

  	
  Notices, etc., to Trustee and Company

  	
   

  	
  14

  
	
  Section 1.6.

  	
   

  	
  Notice to Holders; Waiver

  	
   

  	
  14

  
	
  Section 1.7.

  	
   

  	
  Headings and Table of Contents

  	
   

  	
  15

  
	
  Section 1.8.

  	
   

  	
  Successors and Assigns

  	
   

  	
  15

  
	
  Section 1.9.

  	
   

  	
  Separability

  	
   

  	
  16

  
	
  Section 1.10.

  	
   

  	
  Benefits of Indenture

  	
   

  	
  16

  
	
  Section 1.11.

  	
   

  	
  Governing Law

  	
   

  	
  16

  
	
  Section 1.12.

  	
   

  	
  Legal Holidays

  	
   

  	
  16

  
	
  Section 1.13.

  	
   

  	
  No Recourse Against Others

  	
   

  	
  17

  
	
  Section 1.14.

  	
   

  	
  Submission to Jurisdiction: Appointment of
  Agent for Service of Process

  	
   

  	
  17

  
	
  Section 1.15.

  	
   

  	
  Restatement of Original Indenture

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
   

  
	
  SECURITY FORMS

  
	
   

  
	
  Section 2.1.

  	
   

  	
  Forms Generally

  	
   

  	
  18

  
	
  Section 2.2.

  	
   

  	
  Form of Trustee’s Certificate of
  Authentication

  	
   

  	
  18

  
	
  Section 2.3.

  	
   

  	
  Securities in Global Form

  	
   

  	
  19

  
	
  Section 2.4.

  	
   

  	
  Form of Legend for Securities in
  Global Form

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  
	
  THE SECURITIES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
   

  	
  Amount Unlimited; Issuable in Series

  	
   

  	
  20

  
	
  Section 3.2.

  	
   

  	
  Denominations

  	
   

  	
  24

  
	
  Section 3.3.

  	
   

  	
  Execution, Authentication, Delivery and
  Dating

  	
   

  	
  24

  
	
  Section 3.4.

  	
   

  	
  Temporary Securities

  	
   

  	
  27

  
	
  Section 3.5.

  	
   

  	
  Registration, Transfer and Exchange

  	
   

  	
  28

  
	
  Section 3.6.

  	
   

  	
  Replacement Securities

  	
   

  	
  32

  
	
  Section 3.7.

  	
   

  	
  Payment of Interest; Interest Rights
  Preserved

  	
   

  	
  33

  
	
  Section 3.8.

  	
   

  	
  Persons Deemed Owners

  	
   

  	
  35

  
	
  Section 3.9.

  	
   

  	
  Cancellation

  	
   

  	
  36

  

 

iii

 

Table of Contents

(continued)

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.10.

  	
   

  	
  Computation of Interest

  	
   

  	
  36

  
	
  Section 3.11.

  	
   

  	
  Currency and Manner of Payment in Respect
  of Securities

  	
   

  	
  36

  
	
  Section 3.12.

  	
   

  	
  Appointment and Resignation of Exchange
  Rate Agent

  	
   

  	
  42

  
	
  Section 3.13.

  	
   

  	
  CUSIP Numbers

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  
	
  SATISFACTION AND DISCHARGE

  
	
   

  
	
  Section 4.1.

  	
   

  	
  Termination of Company’s Obligations Under
  the Indenture

  	
   

  	
  43

  
	
  Section 4.2.

  	
   

  	
  Application of Trust Funds

  	
   

  	
  45

  
	
  Section 4.3.

  	
   

  	
  Repayment to Company

  	
   

  	
  45

  
	
  Section 4.4.

  	
   

  	
  Indemnity for Government Obligations

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
   

  
	
  EVENTS OF DEFAULT, DEFAULTS AND REMEDIES

  
	
   

  
	
  Section 5.1.

  	
   

  	
  Events of Default and Defaults

  	
   

  	
  45

  
	
  Section 5.2.

  	
   

  	
  Acceleration; Rescission and Annulment

  	
   

  	
  47

  
	
  Section 5.3.

  	
   

  	
  Collection of Indebtedness and Suits for
  Enforcement by Trustee

  	
   

  	
  48

  
	
  Section 5.4.

  	
   

  	
  Trustee May File Proofs of Claim

  	
   

  	
  49

  
	
  Section 5.5.

  	
   

  	
  Trustee May Enforce Claims Without
  Possession of Securities

  	
   

  	
  49

  
	
  Section 5.6.

  	
   

  	
  Delay or Omission Not Waiver

  	
   

  	
  50

  
	
  Section 5.7.

  	
   

  	
  Waiver of Past Defaults

  	
   

  	
  50

  
	
  Section 5.8.

  	
   

  	
  Control by Majority

  	
   

  	
  50

  
	
  Section 5.9.

  	
   

  	
  Limitation on Suits by Holders

  	
   

  	
  50

  
	
  Section 5.10.

  	
   

  	
  Rights of Holders to Receive Payment

  	
   

  	
  51

  
	
  Section 5.11.

  	
   

  	
  Application of Money Collected

  	
   

  	
  51

  
	
  Section 5.12.

  	
   

  	
  Restoration of Rights and Remedies

  	
   

  	
  52

  
	
  Section 5.13.

  	
   

  	
  Rights and Remedies Cumulative

  	
   

  	
  52

  
	
  Section 5.14.

  	
   

  	
  Waiver of Stay, Extension or Usury Laws

  	
   

  	
  52

  
	
  Section 5.15.

  	
   

  	
  Waiver of Sovereign Immunity

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  
	
  THE TRUSTEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.1.

  	
   

  	
  Rights, Duties and Responsibilities of
  Trustee

  	
   

  	
  54

  
	
  Section 6.2.

  	
   

  	
  Trustee May Hold Securities

  	
   

  	
  55

  
	
  Section 6.3.

  	
   

  	
  Money Held in Trust

  	
   

  	
  55

  
	
  Section 6.4.

  	
   

  	
  Trustee’s Disclaimer

  	
   

  	
  55

  

 

iv

 

Table of Contents

(continued)

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.5.

  	
   

  	
  Notice of Defaults

  	
   

  	
  56

  
	
  Section 6.6.

  	
   

  	
  Reports by Trustee to Holders

  	
   

  	
  56

  
	
  Section 6.7.

  	
   

  	
  Security Holder Lists

  	
   

  	
  56

  
	
  Section 6.8.

  	
   

  	
  Compensation and Indemnity

  	
   

  	
  57

  
	
  Section 6.9.

  	
   

  	
  Replacement of Trustee

  	
   

  	
  58

  
	
  Section 6.10.

  	
   

  	
  Acceptance of Appointment by Successor

  	
   

  	
  59

  
	
  Section 6.11.

  	
   

  	
  Eligibility; Disqualification

  	
   

  	
  60

  
	
  Section 6.12.

  	
   

  	
  Merger, Conversion, Consolidation or
  Succession to Business

  	
   

  	
  61

  
	
  Section 6.13.

  	
   

  	
  Appointment of Authenticating Agent

  	
   

  	
  62

  
	
  Section 6.14.

  	
   

  	
  Preferential Collection of Claims Against
  Company

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  
	
  CONSOLIDATION, MERGER OR SALE BY THE
  COMPANY

  
	
   

  
	
  Section 7.1.

  	
   

  	
  Consolidation, Merger or Sale of Assets
  Permitted

  	
   

  	
  64

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
   

  
	
  SUPPLEMENTAL INDENTURES

  
	
   

  
	
  Section 8.1.

  	
   

  	
  Supplemental Indentures Without Consent of
  Holders

  	
   

  	
  64

  
	
  Section 8.2.

  	
   

  	
  With Consent of Holders

  	
   

  	
  66

  
	
  Section 8.3.

  	
   

  	
  Compliance with Trust Indenture Act

  	
   

  	
  68

  
	
  Section 8.4.

  	
   

  	
  Execution of Supplemental Indentures

  	
   

  	
  68

  
	
  Section 8.5.

  	
   

  	
  Effect of Supplemental Indentures

  	
   

  	
  68

  
	
  Section 8.6.

  	
   

  	
  Reference in Securities to Supplemental
  Indentures

  	
   

  	
  68

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  
	
   

  
	
  COVENANTS

  
	
   

  
	
  Section 9.1.

  	
   

  	
  Payment of Principal, Premium, if any, and
  Interest

  	
   

  	
  69

  
	
  Section 9.2.

  	
   

  	
  Maintenance of Office or Agency

  	
   

  	
  69

  
	
  Section 9.3.

  	
   

  	
  Money for Securities to Be Held in Trust;
  Unclaimed Money

  	
   

  	
  70

  
	
  Section 9.4.

  	
   

  	
  Corporate Existence

  	
   

  	
  71

  
	
  Section 9.5.

  	
   

  	
  Insurance

  	
   

  	
  72

  
	
  Section 9.6.

  	
   

  	
  Reports by the Company

  	
   

  	
  72

  
	
  Section 9.7.

  	
   

  	
  Annual Review Certificate

  	
   

  	
  72

  
	
  Section 9.8.

  	
   

  	
  Payment of Additional Amounts

  	
   

  	
  73

  
	
  Section 9.9.

  	
   

  	
  Payment of Stamp Taxes

  	
   

  	
  74

  
	
  Section 9.10.

  	
   

  	
  Indemnification of Judgment Currency

  	
   

  	
  74

  
	
  Section 9.11.

  	
   

  	
  Waiver of Certain Covenants

  	
   

  	
  74

  

 

v

 

Table of Contents

(continued)

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  
	
  ARTICLE X

  
	
   

  
	
  REDEMPTION

  
	
   

  
	
  Section 10.1.

  	
   

  	
  Applicability of Article

  	
   

  	
  75

  
	
  Section 10.2.

  	
   

  	
  Election to Redeem; Notice to Trustee

  	
   

  	
  75

  
	
  Section 10.3.

  	
   

  	
  Selection of Securities to Be Redeemed

  	
   

  	
  75

  
	
  Section 10.4.

  	
   

  	
  Notice of Redemption

  	
   

  	
  76

  
	
  Section 10.5.

  	
   

  	
  Deposit of Redemption Price

  	
   

  	
  77

  
	
  Section 10.6.

  	
   

  	
  Securities Payable on Redemption Date

  	
   

  	
  78

  
	
  Section 10.7.

  	
   

  	
  Securities Redeemed in Part

  	
   

  	
  78

  
	
  Section 10.8.

  	
   

  	
  Optional Redemption Due to Changes in
  Australian Tax Treatment

  	
   

  	
  79

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  
	
   

  
	
  SINKING FUNDS

  
	
   

  
	
  Section 11.1.

  	
   

  	
  Applicability of Article

  	
   

  	
  80

  
	
  Section 11.2.

  	
   

  	
  Satisfaction of Sinking Fund Payments with
  Securities

  	
   

  	
  80

  
	
  Section 11.3.

  	
   

  	
  Redemption of Securities for Sinking Fund

  	
   

  	
  80

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII

  
	
   

  
	
  SOLVENCY AND SUBORDINATION OF SECURITIES

  
	
   

  
	
  Section 12.1.

  	
   

  	
  Solvency

  	
   

  	
  81

  
	
  Section 12.2.

  	
   

  	
  Subordination and Payment Over of Proceeds
  Upon Winding Up

  	
   

  	
  81

  
	
  Section 12.3.

  	
   

  	
  Notice to Trustee

  	
   

  	
  84

  
	
  Section 12.4.

  	
   

  	
  Trustee Not Fiduciary for Senior Creditors
  of the Company

  	
   

  	
  85

  
	
  Section 12.5.

  	
   

  	
  Rights of Trustee as Senior Creditor of the
  Company; Preservation of Trustee’s Rights

  	
   

  	
  85

  
	
  Section 12.6.

  	
   

  	
  Article Applicable to Paying Agents

  	
   

  	
  86

  
	
  Section 12.7.

  	
   

  	
  Provisions Solely to Define Relative Rights

  	
   

  	
  86

  
	
  Section 12.8.

  	
   

  	
  No Set-Off

  	
   

  	
  86

  

 

vi

 

AMENDED
AND RESTATED SUBORDINATED INDENTURE (this “Indenture”), dated as of May 15,
2003, between WESTPAC BANKING CORPORATION ABN 33 007 457 141, a bank
incorporated in Australia and registered in New South Wales under the
Corporations Act 2001 of Australia (the “Company”) having its registered
office at 60 Martin Place, Sydney, New South Wales 2000, Australia, and having
an office in The City of New York at 575 Fifth Avenue, New York, New York
10017-2422, and JPMorgan Chase Bank, formerly The Chase Manhattan Bank, a New
York banking corporation as Trustee hereunder (the “Trustee”).

 

Recitals

 

WHEREAS,
the Company and the Trustee have heretofore become parties to a Subordinated
Indenture, dated as of July 1, 1999 (the “Original Indenture”),
providing for the issuance of unsecured subordinated debentures, notes or other
evidences of indebtedness of the Company (“Securities”);

 

WHEREAS,
the Company desires to amend and restate the Original Indenture in order to
modify certain terms relating to subordination to comply with the applicable
requirements of the Australian Prudential Regulation Authority relating to
lower tier 2 capital;

 

WHEREAS,
the Company has duly authorized the execution and delivery of this Indenture to
provide for the issuance from time to time of Securities to be issued in one or
more series as herein provided;

 

WHEREAS,
Section 8.1(5) of the Original Indenture permits the parties hereto
to execute and deliver this Indenture to amend and restate the Original
Indenture because there is no Security Outstanding under the Original Indenture;
and

 

WHEREAS,
all things necessary to make this Indenture a valid agreement of the Company,
in accordance with its terms, have been done.

 

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

 

ARTICLE I

 

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

 

Section 1.1.            Definitions. (a)  For
all purposes of this Indenture, except as otherwise expressly provided or
unless the context otherwise requires:

 

 

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

 

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

 

(3)           all accounting terms not otherwise
defined herein have the meanings assigned to them in accordance with generally
accepted accounting principles used in the preparation of the Company’s audited
financial statements and, except as otherwise herein expressly provided, the
term “generally accepted accounting principles” with respect to any computation
required or permitted hereunder shall mean such accounting principles at the
date of such computation;

 

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

 

(5)           the word “or” is always used
inclusively (for example, the phrase “A or B” means “A or B or both”, not “A or
B but not both”).

 

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

 

“Agent”
means any Paying Agent or Registrar.

 

“Authenticating
Agent” means any authenticating agent appointed by the Trustee pursuant to Section 6.13.

 

“Authorized
Newspaper” means a newspaper of general circulation, in the official
language of the country of publication or in the English language, customarily
published on each Business Day whether or not published on Saturdays, Sundays
or holidays. Whenever successive publications in an Authorized Newspaper are
required hereunder they may be made (unless otherwise expressly provided
herein) on the same or different days of the week and in the same or different
Authorized Newspapers.

 

“Authorized
Officer” means the Company’s Chairman of the Board, Managing Director, its
Chief Financial Officer, any Group Executive, any General Manager, its Group
Treasurer, its Group Financial Controller, its Head of Global Funding, its Head
of

 

2

 

Capital
Management, any Senior Vice President, Senior Manager or any Vice President or
such officers of equivalent status as may be designated from time to time by
the Company, and any other person duly authorized from time to time by the
Company.

 

“Bearer
Security” means any Security issued hereunder which is payable to bearer.

 

“Board”
or “Board of Directors” means the Board of Directors of the Company, or
any duly authorized committee thereof.

 

“Board
Resolution” means a copy of a resolution of the Board of Directors,
certified by the Secretary or an Assistant Secretary of the Company to have
been duly adopted by the Board of Directors and to be in full force and effect
on the date of the certificate, and delivered to the Trustee.

 

“Business
Day”, when used with respect to any Place of Payment or any other
particular location referred to in this Indenture or in the Securities, means,
unless otherwise specified with respect to any Securities pursuant to Section 3.1,
each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on
which banking institutions in that Place of Payment or particular location are
authorized or obligated by law or executive order to close.

 

“Commission”
means the Securities and Exchange Commission, as from time to time constituted,
created under the Securities Exchange Act of 1934, or, if at any time after the
execution of this Indenture such Commission is not existing and performing the
duties now assigned to it under the Trust Indenture Act, then the body
performing such duties at such time.

 

“Company”
means the party named as the Company in the first paragraph of this Indenture
until a successor shall have become such pursuant to the applicable provisions
of this Indenture, and thereafter means such successors.

 

“Company
Order” and “Company Request” mean, respectively, a written order or
request signed in the name of the Company by an Authorized Officer.

 

“Corporate
Trust Office” means the office of the Trustee in New York, New York at
which at any particular time its corporate trust business shall be principally
administered, which office at the date hereof is located at 4 New York Plaza,
15th Floor, New York, New York 10004, Attention: Institutional Trust
Services.

 

“currency
unit”, for all purposes of this Indenture, shall include any composite
currency.

 

3

 

“Depositary”,
when used with respect to the Securities of or within any series issuable or
issued in whole or in part in global form, means the Person designated as
Depositary by the Company pursuant to Section 3.1 until a successor
Depositary shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter shall mean or include each Person which is then a
Depositary hereunder, and if at any time there is more than one such Person,
shall be a collective reference to such Persons.

 

“Dollar”
or “$” means the coin or currency of the United States as at the time of
payment is legal tender for the payment of public and private debts.

 

“Government
Obligations” means securities which are (i) direct obligations
of the United States or, if specified as contemplated by Section 3.1, the
government which issued the currency in which the Securities of a particular
series are payable, for the payment of which its full faith and credit is
pledged or (ii) obligations of a Person controlled or supervised by
and acting as an agency or instrumentality of the United States or, if
specified as contemplated by Section 3.1, such government which issued the
foreign currency in which the Securities of such series are payable, for the
payment of which the full faith and credit of the United States or such other
government is pledged (whether by guaranty or otherwise), which, in either
case, are not callable or redeemable at the option of the issuer thereof, and
shall also include a depositary receipt issued by a bank or trust company as
custodian with respect to any such Government Obligation or a specific payment
of interest on or principal of any such Government Obligation held by such
custodian for the account of the holder of a depositary receipt, provided that
(except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depositary receipt from
any amount received by the custodian in respect of the Government Obligation
evidenced by such depositary receipt.

 

“Holder”
means, with respect to a Bearer Security, a bearer thereof or of a coupon
appertaining thereto and, with respect to a Registered Security, a person in
whose name such Registered Security is registered on the Register.

 

“Indenture”
means this Subordinated Indenture as originally executed or as amended or
supplemented from time to time and shall include the forms and terms of
particular series of Securities established as contemplated hereunder.

 

“Indexed
Security” means a Security the terms of which provide that the principal
amount thereof payable at Stated Maturity may be more or less than the
principal face amount thereof at original issuance.

 

“interest”,
when used with respect to an Original Issue Discount Security which by its
terms bears interest only after Maturity, means interest payable after
Maturity.

 

4

 

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

 

“Maturity”,
when used with respect to any Security, means the date on which the principal
of such Security or an installment of principal becomes due and payable as
therein or herein provided, whether at the Stated Maturity or by declaration of
acceleration, call for redemption or otherwise.

 

“Officer”
means any Authorized Officer, the President, any Executive Vice President, any
Assistant Vice President, the Treasurer or the Secretary or Assistant Secretary
of the Company.

 

“Officers’
Certificate” means a certificate signed by an Authorized Officer and which
conforms to Section 1.2.

 

“Opinion
of Counsel” means a written opinion of legal counsel, who may be (i) an
attorney employed by the Company, (ii) Debevoise &
Plimpton or (iii) other counsel designated by the Company who shall
be reasonably acceptable to the Trustee.

 

“Original
Issue Discount Security” means any Security which provides for an amount
less than the stated principal amount thereof to be due and payable upon
declaration of acceleration of the Maturity thereof pursuant to Section 5.2.

 

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

 

(i)            Securities theretofore cancelled by
the Trustee or delivered to the Trustee for cancellation;

 

(ii)           Securities, or portions thereof, for
whose payment or redemption money or Government Obligations in the necessary
amount (without reinvestment) has been theretofore deposited with the Trustee
or any Paying Agent (other than the Company) in trust or set aside and segregated
in trust by the Company (if the Company shall act as its own Paying Agent) for
the Holders of such Securities and any coupons appertaining thereto, provided
that, if such Securities are to be redeemed, notice of such redemption has been
duly given pursuant to this Indenture or provisions therefor satisfactory to
the Trustee have been made; and

 

(iii)          Securities which have been paid
pursuant to Section 3.6 or in exchange for or in lieu of which other
Securities have been authenticated and delivered pursuant to this Indenture,
other than any such Securities in respect of which there shall have been
presented to the Trustee proof satisfactory to it that

 

5

 

such Securities are held
by a bona fide purchaser in whose hands such Securities are valid obligations
of the Company;

 

provided, however, that
unless otherwise provided with respect to any Securities of any series pursuant
to Section 3.1, in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver or are present at a meeting
for quorum purposes hereunder, or whether sufficient funds are available for
redemption or for any other purpose, and for the purpose of making the
calculations required by Section 313 of the Trust Indenture Act, (w) the
principal amount of any Original Issue Discount Securities that may be counted
in making such determination or calculation and that shall be deemed to be
Outstanding for such purpose shall be equal to the amount of principal thereof
that would be (or shall have been declared to be) due and payable, at the time
of such determination, upon a declaration of acceleration of the maturity
thereof pursuant to Section 5.2, (x) the principal amount of
any Security denominated in a Foreign Currency that may be counted in making
such determination or calculation and that shall be deemed Outstanding for such
purpose shall be equal to the Dollar equivalent, determined as of the date such
Security is originally issued by the Company as set forth in an Exchange Rate
Officers’ Certificate delivered to the Trustee, of the principal amount (or, in
the case of an Original Issue Discount Security, the Dollar equivalent,
determined as of such date of original issuance, of the amount determined as
provided in clause (w) above) of such Security, (y) the
principal amount of any Indexed Security that may be counted in making such
determination or calculation and that shall be deemed Outstanding for such
purpose shall be equal to the principal face amount of such Indexed Security at
original issuance, and (z) Securities owned by the Company or any
other obligor upon the Securities or any Affiliate of the Company or of such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in making such calculation
or in relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Securities which a Responsible Officer of the Trustee
actually knows to be so owned shall be so disregarded. Securities so owned
which have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee’s right so
to act with respect to such Securities and that the pledgee is not the Company
or any other obligor upon the Securities or any Affiliate of the Company or of
such other obligor.

 

“Paying
Agent” means any Person authorized by the Company to pay the principal of,
premium, if any, or interest and any other payments on any Securities on behalf
of the Company; provided that, in no event may a Paying Agent be a domiciliary
of Commonwealth of Australia or a person acting through an office in
Commonwealth of Australia.

 

“Periodic
Offering” means an offering of Securities of a series from time to time the
specific terms of which Securities, including, without limitation, the rate or
rates of

 

6

 

interest
or formula for determining the rate or rates of interest thereon, if any, the
Maturity thereof and the redemption provisions, if any, with respect thereto,
are to be determined by the Company upon the issuance of such Securities.

 

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

 

“Place
of Payment”, when used with respect to the Securities of or within any
series, means the place or places where the principal of, premium, if any, and
interest and any other payments on such Securities are payable as specified as
contemplated by Sections 3.1 and 9.2.

 

“Predecessor
Security” of any particular Security means every previous Security
evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 3.6 in exchange for or in lieu
of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence
the same debt as the mutilated, destroyed, lost or stolen Security.

 

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

 

“Redemption
Price”, when used with respect to any Security to be redeemed, in whole or
in part, means the price at which it is to be redeemed pursuant to this
Indenture and the Securities.

 

“Registered
Security” means any Security issued hereunder and registered as to
principal and interest in the Register.

 

“Regular
Record Date” for the interest payable on any Interest Payment Date on the
Securities of or within any series means the date specified for that purpose as
contemplated by Section 3.1, which date shall be, unless otherwise
specified pursuant to Section 3.1, the fifteenth day preceding such
Interest Payment Date, whether or not such day shall be a Business Day.

 

“Responsible
Officer”, when used with respect to the Trustee, shall mean any Vice
President (whether or not designated by a number or a word or words added
before or after the title “Vice President”), the Secretary, any Assistant
Secretary, the Treasurer, any Assistant Treasurer, the Cashier, any Assistant
Cashier, any Senior Trust Officer, any Trust Officer, any Assistant Trust
Officer, the Controller, any Assistant Controller, or any officer of the
Trustee customarily performing functions similar to those performed by the

 

7

 

individuals
who at the time shall be such officers, respectively, or to whom any corporate
trust matter is referred because of his or her knowledge of and familiarity
with the particular subject.

 

“Security”
or “Securities” has the meaning stated in the first recital of this
Indenture and more particularly means a Security or Securities of the Company
issued, authenticated and delivered under this Indenture.

 

“Special
Record Date” for the payment of any Defaulted Interest means a date fixed
by the Trustee pursuant to Section 3.7.

 

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

 

“Subsidiary”
means any Person of which the Company at the time owns or controls, directly or
indirectly, more than 50% of the shares of outstanding stock or other equity
interests having general voting power under ordinary circumstances to elect a
majority of the Board of Directors, managers or trustees, as the case may be,
of such Person (irrespective of whether or not at the time stock of any other
class or classes or other equity interests of such corporation shall have or
might have voting power by reason of the happening of any contingency).

 

“Trust
Indenture Act” means the Trust Indenture Act of 1939, as amended and as in
effect on the date of this Indenture, except as provided in Section 8.3.

 

“Trustee”
means the party named as such in the first paragraph of this Indenture until a
successor Trustee replaces it pursuant to the applicable provisions of this
Indenture, and thereafter means such successor Trustee and if, at any time,
there is more than one Trustee, “Trustee” as used with respect to the
Securities of any series shall mean the Trustee with respect to the Securities
of that series.

 

“United
States” means, unless otherwise specified with respect to the Securities of
any series as contemplated by Section 3.1, the United States of America
(including the States and the District of Columbia), its territories, its
possessions and other areas subject to its jurisdiction.

 

“U.S.
Person” means, unless otherwise specified with respect to the Securities of
any series as contemplated by Section 3.1, an individual citizen or
resident of the United States, a corporation created or organized in or under
the laws of the United States, any State thereof or the District of Columbia,
or a partnership, estate or trust treated as a domestic partnership, estate or
trust for United States federal income tax purposes.

 

8

 

“Winding
Up” means, any procedure whereby the Company may be wound up, dissolved or
cease to exist as a body corporate and whether brought or instigated by the
Trustee, a Holder or any other Person, but excludes any transaction permitted
in accordance with Article VII hereof.

 

“Yield
to Maturity” means the yield to maturity, calculated by the Company at the
time of issuance of a series of Securities or, if applicable, at the most
recent determination of interest on such series, in accordance with accepted financial
practice.

 

(b)           The following terms shall have the
meanings specified in the Sections referred to opposite such term below:

 

	
  Term

  	
   

  	
  Section

  
	
   

  	
   

  	
   

  
	
  “Act”

  	
   

  	
  1.4 (a)

  
	
   

  	
   

  	
   

  
	
  “Additional Amount”

  	
   

  	
  9.8 (a)

  
	
   

  	
   

  	
   

  
	
  “Authorized Agent”

  	
   

  	
  1.14

  
	
   

  	
   

  	
   

  
	
  “Claims”

  	
   

  	
  6.8(b)

  
	
   

  	
   

  	
   

  
	
  “Component Currency”

  	
   

  	
  3.11(h)

  
	
   

  	
   

  	
   

  
	
  “Conversion Date”

  	
   

  	
  3.11(d)

  
	
   

  	
   

  	
   

  
	
  “Conversion Event”

  	
   

  	
  3.11(h)

  
	
   

  	
   

  	
   

  
	
  “Default”

  	
   

  	
  5.1

  
	
   

  	
   

  	
   

  
	
  “Defaulted Interest”

  	
   

  	
  3.7(b)

  
	
   

  	
   

  	
   

  
	
  “Election Date”

  	
   

  	
  3.11(h)

  
	
   

  	
   

  	
   

  
	
  “Euro”

  	
   

  	
  3.11(h)

  
	
   

  	
   

  	
   

  
	
  “Event of Default”

  	
   

  	
  5.1

  
	
   

  	
   

  	
   

  
	
  “Exchange Rate Agent”

  	
   

  	
  3.11(h)

  
	
   

  	
   

  	
   

  
	
  “Exchange Rate Officers’ Certificate”

  	
   

  	
  3.11(h)

  
	
   

  	
   

  	
   

  
	
  “Expiration Date”

  	
   

  	
  1.4(g)

  

 

9

 

	
  Term

  	
   

  	
  Section

  
	
   

  	
   

  	
   

  
	
  “Foreign Currency”

  	
   

  	
  3.11(h)

  
	
   

  	
   

  	
   

  
	
  “Judgment Currency”

  	
   

  	
  9.10

  
	
   

  	
   

  	
   

  
	
  “Market Exchange Rate”

  	
   

  	
  3.11(h)

  
	
   

  	
   

  	
   

  
	
  “Register”

  	
   

  	
  3.5

  
	
   

  	
   

  	
   

  
	
  “Registrar”

  	
   

  	
  3.5

  
	
   

  	
   

  	
   

  
	
  “Specified Amount”

  	
   

  	
  3.11(h)

  
	
   

  	
   

  	
   

  
	
  “Specified Currency”

  	
   

  	
  9.10

  
	
   

  	
   

  	
   

  
	
  “Valuation Date”

  	
   

  	
  3.11(c)

  

 

Section 1.2.            Compliance Certificates and
Opinions.  Upon any application or
request by the Company to the Trustee to take any action under any provision of
this Indenture, the Company shall furnish to the Trustee an Officers’
Certificate stating that all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with and an
Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with, except that in the case
of any such application or request as to which the furnishing of such documents
is specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished.

 

Every
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than pursuant to Section 9.7) shall
include:

 

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

 

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

 

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

 

10

 

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

 

Section 1.3.                                     Form of Documents
Delivered to Trustee.  In any case
where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.

 

Any
certificate or opinion of an Officer of the Company may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations
by, counsel, unless such officer knows that the certificate or opinion or
representations with respect to the matters upon which his certificate or
opinion is based are erroneous.  Any such
certificate or Opinion of Counsel may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or representations by, an
officer or officers of the Company stating that the information with respect to
such factual matters is in the possession of the Company, unless such counsel
knows that the certificate or opinion or representations as to such matters are
erroneous.

 

Any
certificate or opinion of an Officer of the Company or of counsel may be based,
insofar as it relates to accounting matters, upon a certificate or opinion of
or representations by an accountant or firm of accountants in the employ of the
Company, unless such officer or counsel, as the case may be, knows that the
certificate or opinions or representations as to such accounting matters are
erroneous.

 

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

 

Section 1.4.            Acts of Holders.  (a)  Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given or taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person or
by agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or
instruments are delivered to the Trustee and, where it is hereby expressly
required, to the Company.  Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the “Act” of the Holders signing
such instrument or instruments.  Proof of
execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and conclusive (subject
to Section 6.1) in favor of the Trustee and the Company, if made in the
manner provided in this Section.

 

11

 

(b)           Without limiting the generality of
this Section, unless otherwise provided in or pursuant to this Indenture, a
Holder, including a Depositary that is a Holder of a Security, may make, give
or take, by a proxy, or proxies, duly appointed in writing, any request,
demand, authorization, direction, notice, consent, waiver or other action
provided in or pursuant to this Indenture to be made, given or taken by
Holders, and a Depositary that is a Holder of a Security may provide its proxy
or proxies to the beneficial owners of interests in any such Security through
such Depositary’s standing instructions and customary practices.

 

(c)           The fact and date of the execution by
any Person of any such instrument or writing may be proved by the affidavit of
a witness of such execution or by a certificate of a notary public or other
officer authorized by law to take acknowledgments of deeds, certifying that the
individual signing such instrument or writing acknowledged to him the execution
thereof.  Where such execution is by a
signer acting in a capacity other than his individual capacity, such
certificate or affidavit shall also constitute sufficient proof of his
authority.  The fact and date of the
execution of any such instrument or writing, or the authority of the Person
executing the same, may also be proved in any other manner which the Trustee
deems sufficient.

 

(d)           The ownership of Bearer Securities
may be proved by the production of such Bearer Securities or by a certificate
executed by any trust company, bank, banker or other depositary, wherever
situated, if such certificate shall be deemed by the Trustee to be
satisfactory, showing that at the date therein mentioned such Person had on deposit
with such depositary, or exhibited to it, the Bearer Securities therein
described; or such facts may be proved by the certificate or affidavit of the
Person holding such Bearer Securities, if such certificate or affidavit is
deemed by the Trustee to be satisfactory.

 

The
Trustee and the Company may assume that such ownership of any Bearer Security
continues until (i) another such certificate or affidavit bearing a
later date issued in respect of the same Bearer Security is produced, (ii) such
Bearer Security is produced to the Trustee by some other Person, (iii) such
Bearer Security is surrendered in exchange for a Registered Security or (iv) such
Bearer Security is no longer outstanding. 
The ownership of Bearer Securities may also be proved in any other
manner which the Trustee deems sufficient.

 

(e)           The ownership of Registered
Securities shall be proved by the Register.

 

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

 

12

 

(g)           If the Company shall solicit from the
Holders of any series any request, demand, authorization, direction, notice,
consent, waiver or other Act, the Company may, at its option, fix in advance a
record date for the determination of Holders of such series entitled to give
such request, demand, authorization, direction, notice, consent, waiver or
other Act, but the Company shall have no obligation to do so.  If such a record date is fixed, such request,
demand, authorization, direction, notice, consent, waiver or other Act may be
given before or after such record date, but only the Holders of such series of
record at the close of business on such record date shall be deemed to be
Holders for the purposes of determining whether Holders of the requisite
proportion of Outstanding Securities of such series have authorized or agreed
or consented to such request, demand, authorization, direction, notice,
consent, waiver or other Act, and for that purpose the Outstanding Securities
of such series shall be computed as of such record date; provided that no such
authorization, agreement or consent by the Holders on such record date shall be
deemed effective unless taken on or prior to the applicable Expiration Date (as
defined below) by Holders of the requisite amount of Outstanding Securities of
such series on such record date.  Nothing
in this paragraph shall be construed to prevent the Company from setting a new
record date for any action for which a record date has previously been set
pursuant to this paragraph (whereupon the record date previously set shall
automatically and with no action by any Person be cancelled and of no effect),
and nothing in this paragraph shall be construed to render ineffective any
action taken by Holders of the requisite amount of Outstanding Securities on
the date such action is taken.  Promptly
after any record date is set pursuant to this paragraph, the Company, at its
own expense, shall cause notice of such record date, the proposed action by
Holders and the applicable Expiration Date to be given to the Trustee in
writing and to each Holder of Notes in the manner set forth in Section 1.6.

 

“Expiration
Date” means, with respect to any record date set pursuant to this Section 1.4,
the date designated by the Company; provided, that the Company may, from time
to time, change the Expiration Date to any earlier or later day, but no such
change shall be effective unless notice of the proposed new Expiration Date is
given to the Trustee, and to each Holder of Securities of the applicable series
in the manner set forth in Section 1.6 on or prior to the existing
Expiration Date.  If an Expiration Date
is not designated with respect to any record date pursuant to this Section, the
Company shall be deemed to have initially designated the 180th day after such
record date as the Expiration Date with respect thereto, subject to its right
to change the Expiration Date as provided in this paragraph.  Notwithstanding the foregoing, no Expiration
Date shall be later than the 180th day after the applicable record date.

 

(h)           Without limiting the foregoing, a
Holder entitled hereunder to take any action hereunder with regard to any
particular Security may do so with regard to all or any part of the principal
amount of such Security or by one or more duly appointed agents, each of which
may do so pursuant to such appointment with regard to all or any part of such
principal amount.

 

13

 

(i)            The Company and the Trustee may make
reasonable rules for action by or at a meeting of Holders.

 

Section 1.5.                                     Notices, etc., to Trustee
and Company.  Any request, demand,
authorization, direction, notice, consent, waiver or Act of Holders or other
document provided or permitted by this Indenture to be made upon, given or
furnished to, or filed with,

 

(1)           the Trustee by any Holder or by the
Company shall be sufficient for every purpose hereunder if made, given,
furnished or filed in writing to or with the Trustee at its Corporate Trust
Office, Attention:  Capital Markets
Fiduciary Services, or

 

(2)           the Company by the Trustee or by any
Holder shall be sufficient for every purpose hereunder (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to
the Company addressed to it at Westpac Banking Corporation, 60 Martin Place,
Sydney, New South Wales 2000, Australia or at any other address previously
furnished in writing to the Trustee by the Company.

 

Section 1.6.                                      Notice
to Holders; Waiver.  Where this
Indenture provides for notice to Holders of any event, (i) if any
of the Securities affected by such event are Registered Securities, such notice
to the Holders thereof shall be sufficiently given (unless otherwise herein or
in the terms of such Securities expressly provided) if in writing and mailed,
first-class postage prepaid, to each such Holder affected by such event, at his
address as it appears in the Register, within the time prescribed for the
giving of such notice and, (ii) if any of the Securities affected
by such event are Bearer Securities, notice to the Holders thereof shall be
sufficiently given (unless otherwise herein or in the terms of such Bearer
Securities expressly provided) if published once in an Authorized Newspaper in
New York, New York, and in such other city or cities, if any, as may be
specified as contemplated by Section 3.1.

 

In any
case where notice to Holders is given by mail, neither the failure to mail such
notice, nor any defect in any notice so mailed, to any particular Holder shall
affect the sufficiency of such notice with respect to other Holders of
Registered Securities or the sufficiency of any notice to Holders of Bearer Securities
given as provided herein.  In any case
where notice is given to Holders by publication, neither the failure to publish
such notice, nor any defect in any notice so published, shall affect the
sufficiency of such notice with respect to other Holders of Bearer Securities
or the sufficiency of any notice to Holders of Registered Securities given as
provided herein.  Any notice mailed to a
Holder in the manner herein prescribed shall be conclusively deemed to have
been received by such Holder, whether or not such Holder actually receives such
notice.

 

14

 

If by
reason of the suspension of regular mail service or by reason of any other
cause it shall be impracticable to give such notice as provided above, then
such notification as shall be made with the approval of the Trustee (such
approval not to be unreasonably withheld) shall constitute a sufficient
notification for every purpose hereunder. 
If it is impossible or, in the opinion of the Trustee, impracticable to
give any notice by publication in the manner herein required, then such
publication in lieu thereof as shall be made with the approval of the Trustee
shall constitute a sufficient publication of such notice.

 

In
case by reason of the suspension of publication of any Authorized Newspaper or
Authorized Newspapers or by reason of any other cause it shall be impracticable
to publish any notice to Holders of Bearer Securities as provided above, then
such notification to Holders of Bearer Securities as shall be given with the
approval of the Trustee shall constitute sufficient notice to such Holders for
every purpose hereunder.  Neither failure
to give notice by publication to Holders of Bearer Securities as provided
above, nor any defect in any notice so published, shall affect the sufficiency
of any notice mailed to Holders of Registered Securities as provided above.

 

Any
request, demand, authorization, direction, notice, consent or waiver required
or permitted under this Indenture shall be in the English language, except that
any published notice may be in an official language of the country of
publication.

 

In any
case where the Company mails a notice to Holders, a copy must be sent to the
Trustee and in any case where the Trustee mails a notice to Holders, copies
must be sent to the Company.

 

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

 

Section 1.7.            Headings and Table of Contents.  The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect
the construction hereof.

 

Section 1.8.            Successors and Assigns.  All covenants and agreements in this
Indenture by the Company shall bind its successors and assigns, whether so
expressed or not.

 

Any
act or proceeding that is required or permitted by any provision of this
Indenture and that is authorized or required to be done or performed by any
board, committee or officer of the Company shall and may be done and performed
with like 

 

15

 

force and effect by the like board, committee or
officer of any Person that shall at the time be the successor or assign of the
Company.

 

Section 1.9.            Separability.  In case any provision of this Indenture or
the Securities shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

 

Section 1.10.          Benefits of Indenture.  Nothing in this Indenture or in the
Securities, expressed or implied, shall give to any Person, other than the
parties hereto and their successors hereunder, the holders of Senior
Indebtedness, any Agent and the Holders, any benefit or any legal or equitable right,
remedy or claim under this Indenture.

 

Section 1.11.          Governing Law.  UNLESS OTHERWISE PROVIDED WITH RESPECT TO ANY
SECURITIES OF ANY SERIES PURSUANT TO SECTION 3.1, THIS INDENTURE, THE
SECURITIES AND ANY COUPONS APPERTAINING THERETO SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING ALL
MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE; EXCEPT FOR SECTIONS 12.1,
12.2 AND 12.8 WHICH SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW SOUTH WALES, COMMONWEALTH OF AUSTRALIA.  This Indenture is subject to the Trust
Indenture Act and if any provision hereof limits, qualifies or conflicts with a
provision of the Trust Indenture Act that is required by the Trust Indenture
Act to be a part of and govern this Indenture, the latter provision shall
control. If any provision of this Indenture modifies or excludes any provision
of the Trust Indenture Act that may be so modified or excluded, the latter
provision shall be deemed to apply to this Indenture as so modified, or to be
excluded, as the case may be, whether or not such provision of this Indenture
refers expressly to such provision of the Trust Indenture Act.

 

Section 1.12.          Legal Holidays.  Unless otherwise provided with respect to any
Security or Securities pursuant to Section 3.1, in any case where any
Interest Payment Date, Redemption Date, sinking fund payment date, Stated
Maturity or Maturity or other payment date of any Security shall not be a
Business Day at any Place of Payment, then, notwithstanding any other provision
of this Indenture or any Security or coupon, payment of principal, premium, if
any or interest or other payments need not be made at such Place of Payment on
such date, but may be made on the next succeeding Business Day at such Place of
Payment with the same force and effect as if made on such date; provided that
no interest shall accrue on the amount so payable for the period from and after
such Interest Payment Date, Redemption Date, sinking fund payment date, Stated
Maturity or Maturity or other payment date, as the case may be.

 

16

 

In any
case where any notice to Holders is required to be given by a certain date and
such date shall not be a Business Day, then (notwithstanding any other
provision of this Indenture or the Securities) such notice need not be made on
such date, but may be made on the next succeeding day that is a Business Day
with the same force and effect as if made on the date such notice was originally
required to be made.

 

Section 1.13.          No Recourse Against Others.  No past, present or future director, officer,
employee, agent, member, manager, trustee or stockholder, as such, of the
Company or any successor Person shall have any liability for any obligations of
the Company or any successor Person, either directly or through the Company or
any successor Person, under the Securities or this Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation,
whether by virtue of any rule of law, statute or constitutional provision
or by the enforcement of any assessment or by any legal or equitable proceeding
or otherwise.  By accepting a Security,
each Holder agrees to the provisions of this Section 1.13 and waives and
releases all such liability.  Such waiver
and release shall be part of the consideration for the issue of the Securities.

 

Section 1.14.          Submission to Jurisdiction:
Appointment of Agent for Service of Process.  The Company hereby appoints the Counsel, Legal
Services at the office of the Company located in The City of New York at the
address set forth in the first paragraph of this Indenture as its authorized
agent (the “Authorized Agent”) upon which process may be served in any
legal action or proceeding against it with respect to its obligations under
this Indenture or the Securities of any series (including, without limitation,
any action based on or arising out of the United States federal securities
law), instituted in any federal or state court in the Borough of Manhattan, The
City of New York, by the Trustee or the Holder of any Security, and the Company
hereby expressly accepts the jurisdiction of any such court in respect of any
such action.  The Company hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such suit, action or proceeding and
any objection to such suit, action or proceeding whether on the grounds of
venue, residence or domicile.  A final
judgment (that is a judgment obtained after exhaustion of all appeals and
expiration of all time to appeal) in any such suit, action or proceeding shall
be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law.  The Counsel, Legal Services of the Company
hereby accepts such appointment, which shall be irrevocable unless and until
the appointment of a successor authorized agent for service of process, and
such successor’s acceptance of such appointment, shall have occurred, and the
Company and such Authorized Agents will take any and all actions, including the
filing of any and all documents and instruments, that may be necessary to
continue such appointment or appointments in full force and effect as
aforesaid.  Service of process upon an
Authorized Agent will be deemed, in every respect, effective service of process
upon the Company.  Notwithstanding the
foregoing, any action against the Company arising out of or based on any Security
or this Indenture may also be instituted by the Holder of such Security in any
court in the Commonwealth of Australia, and the 

 

17

 

Company hereby expressly
accepts the jurisdiction of any such court in respect of any such action.

 

Section 1.15.          Restatement of Original Indenture.  This Indenture amends and restates the
Original Indenture in its entirety and shall become effective as of the date
hereof.

 

ARTICLE II

 

SECURITY FORMS

 

Section 2.1.            Forms Generally.  The Securities of each series and the
coupons, if any, to be attached thereto shall be in substantially such form as
shall be established by or pursuant to a Board Resolution or in one or more
indentures supplemental hereto, in each case with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
this Indenture, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be
required to comply with any applicable law, rule or regulation or with the
rules or usage of any securities exchange or Depositary therefor or as
may, consistently herewith, be determined by the officers executing such
Securities and coupons, if any, as evidenced by their execution of the
Securities and coupons, if any.  If
temporary Securities of any series are issued as permitted by Section 3.4,
the form thereof also shall be established as provided in the preceding
sentence.  If the forms of Securities and
coupons, if any, of any series are established by, or by action taken pursuant
to, a Board Resolution, a copy of the Board Resolution together with an
appropriate record of any such action taken pursuant thereto, including a copy
of the approved form of Securities or coupons, if any, shall be certified by
the Secretary or an Assistant Secretary of the Company and delivered to the
Trustee at or prior to the delivery of the Company Order contemplated by Section 3.3
for the authentication and delivery of such Securities.

 

Unless
otherwise specified as contemplated by Section 3.1, Bearer Securities
shall have interest coupons attached.

 

The
definitive Securities and coupons, if any, shall be typeset, printed,
lithographed or engraved on steel engraved borders or may be produced in any
other manner or medium, all as determined by the officers executing such
Securities and coupons, if any, as evidenced by their execution of such
Securities and coupons, if any.

 

Section 2.2.            Form of Trustee’s
Certificate of Authentication. 
Subject to Section 6.13, the Trustee’s certificate of
authentication shall be in substantially the following form:

 

18

 

This
is one of the Securities of the series designated herein and issued under the
within-mentioned Indenture.

 

	
  JPMorgan Chase Bank, as Trustee

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signature

  
						

 

 

Section 2.3.            Securities in Global Form.  If Securities of or within a series are
issuable in whole or in part in global form, any such Security may provide that
it shall represent the aggregate or specified amount of Outstanding Securities
from time to time endorsed thereon and may also provide that the aggregate
amount of Outstanding Securities represented thereby may from time to time be
reduced or increased to reflect exchanges. 
Any endorsement of a Security in global form to reflect the amount, or
any increase or decrease in the amount, or changes in the rights of Holders, of
Outstanding Securities represented thereby, shall be made in such manner and by
such Person or Persons as shall be specified therein or in the Company Order to
be delivered to the Trustee pursuant to Section 3.3 or 3.4.  Subject to the provisions of Section 3.3
and, if applicable, Section 3.4, the Trustee shall deliver and redeliver
any security in permanent global form in the manner and upon instructions given
by the Person or Persons specified therein or in the applicable Company
Order.  Any instructions by the Company
with respect to endorsement or delivery or redelivery of a Security in global
form shall be in writing but need not comply with Section 1.2 hereof and
need not be accompanied by an Opinion of Counsel.

 

The
provisions of the last paragraph of Section 3.3 shall apply to any
Security in global form if such Security was never issued and sold by the
Company and the Company delivers to the Trustee the Security in global form
together with written instructions (which need not comply with Section 1.2
and need not be accompanied by an Opinion of Counsel) with regard to the
reduction in the principal amount of Securities represented thereby, together
with the written statement contemplated by the last sentence of Section 3.3.

 

Notwithstanding
the provisions of Section 2.1 and 3.7, unless otherwise specified as
contemplated by Section 3.1, payment of principal of, premium, if any, and
interest on any Security in permanent global form shall be made to the
registered Holder thereof.

 

Section 2.4.            Form of Legend for
Securities in Global Form.  Unless
otherwise provided with respect to any Securities of any series pursuant to Section 3.1
or required by the Depositary, any Security of such series in global form
authenticated and delivered hereunder shall bear a legend in substantially the
following form:

 

19

 

THIS SECURITY IS IN GLOBAL FORM WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY
OR A NOMINEE OF A DEPOSITARY.  UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN CERTIFICATED
FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY.  EVERY SECURITY AUTHENTICATED
AND DELIVERED UPON REGISTRATION OF, OR IN EXCHANGE FOR, OR IN LIEU OF, THIS
SECURITY WILL BE IN GLOBAL FORM, SUBJECT TO THE FOREGOING.

 

ARTICLE III

 

THE SECURITIES

 

Section 3.1.            Amount Unlimited; Issuable in
Series.  (a)  The aggregate
principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited.  The
Securities may be issued from time to time in one or more series.

 

(b)                                 The
following matters shall be established with respect to each series of
Securities issued hereunder:  (i) by
a Board Resolution, (ii) by action taken pursuant to a Board
Resolution and (subject to Section 3.3) set forth, or determined in the
manner provided, in an Officers’ Certificate or (iii) in one or
more indentures supplemental hereto:

 

(1)           the title of the Securities of the
series (which title shall distinguish the Securities of the series from all
other series of Securities);

 

(2)           any limit upon the aggregate
principal amount of the Securities of the series which may be authenticated and
delivered under this Indenture (which limit shall not pertain to Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities of the series pursuant to Section 3.4,
3.5, 3.6, 8.6, or 10.7);

 

(3)           the date or dates on which the
principal of and premium, if any, on the Securities of the series is payable or
the method of determination and/or extension of such date or dates; and the amount
or amounts of such principal and premium, if any, payments or the method of
determination thereof;

 

20

 

(4)           the rate or rates at which the
Securities of the series shall bear interest, if any, or the method of
calculating and/or resetting such rate or rates of interest, the date or dates
from which such interest shall accrue or the method by which such date or dates
shall be determined, the Interest Payment Dates on which any such interest
shall be payable and, with respect to Registered Securities, the Regular Record
Date, if any, for the interest payable on any Registered Security on any
Interest Payment Date;

 

(5)           the place or places where the
principal of, premium, if any, and interest, if any, on Securities of the
series shall be payable;

 

(6)           the period or periods within which,
the price or prices at which, the currency or currencies (including currency
units) in which, and the other terms and conditions upon which, Securities of
the series may be redeemed, in whole or in part, at the option of the Company
and, if other than as provided in Section 10.3, the manner in which the
particular Securities of such series (if less than all Securities of such
series are to be redeemed) are to be selected for redemption;

 

(7)           the right, if any, to extend the
interest payment periods and any conditions to the payment or resumption of
payment of interest before, during or after any such extension;

 

(8)           the obligation, if any, of the
Company to redeem or purchase Securities of the series pursuant to any sinking
fund or analogous provisions or upon the happening of a specified event or at
the option of a Holder thereof and the period or periods within which, the
price or prices at which, and the other terms and conditions upon which,
Securities of the series shall be redeemed or purchased, in whole or in part,
pursuant to such obligation;

 

(9)           if other than denominations of $1,000
and any integral multiple thereof (if Registered Securities), and if other than
the denomination of $5,000 and any integral multiple thereof (if Bearer
Securities), the denominations in which Securities of the series shall be
issuable;

 

(10)         if other than Dollars, the currency or
currencies (including currency unit or units) in which the principal of,
premium, if any, and interest, if any, or other payments, if any, on the
Securities of the series shall be payable, or in which the Securities of the
series shall be denominated, and the particular provisions applicable thereto
in accordance with, in addition to, or in lieu of the provisions of Section 3.11;

 

21

 

(11)         if the payments of principal of, or
premium, if any, or interest, if any, or other payments, if any, on the
Securities of the series are to be made, at the election of the Company or a
Holder, in a currency or currencies (including currency unit or units) other
than that in which such Securities are denominated or designated to be payable,
the currency or currencies (including currency unit or units) in which such
payments are to be made, the terms and conditions of such payments and the
manner in which the exchange rate with respect to such payments shall be
determined, and the particular provisions applicable thereto in accordance with,
in addition to, or in lieu of the provisions of Section 3.11;

 

(12)         if the amount of payments of principal
of, or premium, if any, interest, if any, or other payments, if any, on the
Securities of the series shall be determined with reference to an index, formula
or other method (which index, formula or method may be based, without
limitation, on the price of one or more commodities, derivatives or securities;
one or more securities, derivatives or commodities exchange indices or other
indices; a currency or currencies (including currency unit or units) other than
that in which the Securities of the series are denominated or designated to be
payable; or any other variable or the relationship between any variables or
combination of variables), the index, formula or other method by which such
amounts shall be determined;

 

(13)         if other than the principal amount
thereof, the portion of the principal amount of such Securities of the series
or other amount which shall be payable upon declaration of acceleration thereof
pursuant to Section 5.2 or the method by which such portion or amount
shall be determined;

 

(14)         if other than as provided in Section 3.7,
the Person to whom any interest on any Registered Security of the series shall
be payable and the manner in which, or the Person to whom, any interest on any
Bearer Securities of the series shall be payable;

 

(15)         if the principal amount payable at the
Maturity of any Securities of the series will not be determinable as of one or
more dates prior to Maturity, the amount which shall be deemed to be the
principal amount of such Securities as of any such date hereunder or
thereunder, or, if other than as provided in the definition of the term “Outstanding”,
which shall be deemed to be Outstanding as of any date prior to the Stated
Maturity (or, in any such case, the manner in which such amount deemed to be
the principal amount shall be determined);

 

(16)         provisions, if any, granting special
rights to the Holders of Securities of the series upon the occurrence of such
events as may be specified;

 

22

 

(17)         any deletions from, modifications of or
additions to the Events of Default set forth in Section 5.1 or covenants
of the Company set forth in Article IX pertaining to the Securities of the
series;

 

(18)         whether Securities of the series shall
be issuable as Registered Securities or Bearer Securities (with or without
interest coupons), or both, and any restrictions applicable to the offering,
sale or delivery of Bearer Securities and, if other than as provided in Section 3.5,
the terms upon which Bearer Securities of a series may be exchanged for
Registered Securities of the same series and vice versa;

 

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

 

(20)         the forms of the Securities and
coupons, if any, of the series;

 

(21)         if other than the Trustee, the identity
of the Registrar and any Paying Agent;

 

(22)         any terms which may be related to
warrants issued by the Company in connection with, or for the purchase of,
Securities of such series, including whether and under what circumstances the
Securities of any series may be used toward the exercise price of any such
warrants;

 

(23)         the designation of the initial Exchange
Rate Agent, if any;

 

(24)         if the Securities of the series shall
be issued in whole or in part in global form, (i) the Depositary for such
global Securities, (ii) the form of any legend in addition to or in lieu
of that in Section 2.4 which shall be borne by such global Securities, (iii) whether
beneficial owners of interests in any Securities of the series in global form
may exchange such interests for certificated Securities of such series and of
like tenor of any authorized form and denomination, and (iv) if other than
as provided in Section 3.5, the circumstances under which any such
exchange may occur;

 

(25)         if the Securities of the series will be
governed by, and the extent to which such Securities will be governed by, any
law other than the laws of the state of New York and, with respect to Sections
12.1, 12.2 and 12.8, the laws of New South Wales, Commonwealth of Australia;
and

 

(26)         any other terms of the series,
including any terms which may be required by or advisable under the laws or
regulations of the United States or 

 

23

 

advisable
(as determined by the Company) in connection with the marketing of Securities
of the series.

 

(c)           The terms applicable to the
Securities of any one series and coupons, if any, appertaining to any Bearer
Securities of such series need not be identical but may vary as may be provided
(i) by a Board Resolution, (ii) by action taken pursuant to a Board
Resolution and (subject to Section 3.3) set forth, or determined in the
manner provided, in the related Officers’ Certificate or (iii) in an
indenture supplemental hereto.  All
Securities of any one series need not be issued at the same time and, unless
otherwise provided, a series may be reopened, without the consent of the
Holders, for issuances of additional Securities of such series.

 

(d)           If any of the terms of the Securities
of any series are established by action taken pursuant to a Board Resolution, a
copy of such Board Resolution shall be certified by the Secretary or an
Assistant Secretary of the Company and delivered to the Trustee at or prior to
the delivery of the Officers’ Certificate setting forth, or providing the
manner for determining, the terms of the Securities of such series, and an
appropriate record of any action taken pursuant thereto in connection with the
issuance of any Securities of such series shall be delivered to the Trustee
prior to the authentication and delivery thereof.

 

Section 3.2.            Denominations.  Unless otherwise provided as contemplated by Section 3.1,
any Registered Securities of a series shall be issuable in denominations of
$1,000 and any integral multiple thereof and any Bearer Securities of a series
shall be issuable in the denomination of $5,000 and any integral multiple
thereof.

 

Section 3.3.            Execution, Authentication,
Delivery and Dating.  Securities
shall be executed on behalf of the Company by an Authorized Officer. The
signature of such officer on the Securities may be manual or facsimile.  The coupons, if any, of Bearer Securities
shall bear the facsimile signature of an Authorized Officer.

 

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

 

At any
time and from time to time, the Company may deliver Securities, together with
any coupons appertaining thereto, of any series executed by the Company to the
Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities, and the Trustee in accordance
with the Company Order shall authenticate and deliver such Securities;
provided, however, that in the case of Securities offered in a Periodic
Offering, the Trustee shall authenticate and deliver such Securities 

 

24

 

from time to time in accordance with such other
procedures (including, without limitation, the receipt by the Trustee of oral
or electronic instructions from the Company or its duly authorized agents,
promptly confirmed in writing) acceptable to the Trustee as may be specified by
or pursuant to a Company Order delivered to the Trustee prior to the time of
the first authentication of Securities of such series.

 

If the
form or terms of the Securities of a series have been established by or
pursuant to one or more Board Resolutions as permitted by Sections 2.1 and 3.1,
in authenticating such Securities and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to Section 315(a) through (d) of
the Trust Indenture Act) shall be fully protected in relying upon, an Opinion
of Counsel substantially to the effect that,

 

(1)           if the forms of such Securities and
any coupons have been established by or pursuant to a Board Resolution as
permitted by Section 2.1, such forms have been established in conformity
with the provisions of this Indenture;

 

(2)           if the terms of such Securities and
any coupons have been established by or pursuant to a Board Resolution as
permitted by Section 3.1, such terms have been, or in the case of
Securities of a series offered in a Periodic Offering, will be, established in
conformity with the provisions of this Indenture, subject in the case of
Securities offered in a Periodic Offering, to any conditions specified in such
Opinion of Counsel, and all conditions precedent to the authentication and
delivery of the Securities and coupons have been complied with; and

 

(3)           such Securities together with any
coupons appertaining thereto, when authenticated and delivered by the Trustee
and issued by the Company in the manner and subject to any conditions specified
in such Opinion of Counsel, will constitute legal, valid and binding
obligations of the Company, enforceable in accordance with their terms, subject
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
other similar laws of general applicability relating to or affecting the
enforcement of creditors’ rights and to general equity principles and except
further as may be limited by or subject to certain exceptions and
qualifications specified in such Opinion of Counsel, including in the case of
any Securities denominated in a Foreign Currency, (A) requirements
that a claim with respect to any Securities denominated other than in Dollars
(or a foreign currency or foreign currency unit judgment in respect of such
claim) be converted into Dollars at a rate of exchange prevailing on a date
determined pursuant to applicable law or (B) governmental authority
to limit, delay or prohibit the making of payments in foreign currency or
currency units or payments outside the United States.

 

25

 

Notwithstanding that such form or terms have been so
established, the Trustee shall have the right to decline to authenticate such
Securities if, in the written opinion of counsel to the Trustee (which counsel
may be an employee of the Trustee) reasonably acceptable to the Company, the
issue of such Securities pursuant to this Indenture will adversely affect the
Trustee’s own rights, duties or immunities under this Indenture or otherwise in
a manner which is not reasonably acceptable to the Trustee.  Notwithstanding the generality of the
foregoing, the Trustee will not be required to authenticate Securities
denominated in a Foreign Currency if the Trustee reasonably believes that it
would be unable to perform its duties with respect to such Securities.

 

Notwithstanding
the provisions of Section 3.1 and of the two preceding paragraphs, if all
of the Securities of any series are not to be issued at one time, it shall not
be necessary to deliver the Officers’ Certificate otherwise required pursuant
to Section 3.1 or the Company Order and Opinion of Counsel otherwise
required pursuant to the two preceding paragraphs in connection with the
authentication of each Security of such series if such documents, with
appropriate modifications to cover such future issuances, are delivered at or
prior to the authentication upon original issuance of the first Security of
such series to be issued.

 

With
respect to Securities of a series offered in a Periodic Offering, the Trustee
may rely, as to the authorization by the Company of any of such Securities, the
form and terms thereof and the legality, validity, binding effect and
enforceability thereof, upon the Opinion of Counsel and the other documents
delivered pursuant to Sections 2.1 and 3.1 and this Section, as applicable, in
connection with the first authentication of Securities of such series.

 

If the
Company shall establish pursuant to Section 3.1 that the Securities of a
series are to be issued in whole or in part in global form, then, unless
otherwise provided with respect to such Securities pursuant to Section 3.1,
the Company shall execute and the Trustee shall, in accordance with this Section and
the Company Order with respect to such series, authenticate and deliver one or
more Securities in global form that (i) shall represent and shall
be denominated in an amount equal to the aggregate principal amount of the
Outstanding Securities of such series to be represented by such Security or
Securities in global form, (ii) shall be registered, if a
Registered Security, in the name of the Depositary for such Security or
Securities in global form or the nominee of such Depositary, (iii) shall
be delivered by the Trustee to such Depositary or pursuant to such Depositary’s
instruction and (iv) shall bear the legend set forth in Section 2.4.

 

Unless
otherwise established pursuant to Section 3.1, each Depositary designated
pursuant to Section 3.1 for a Registered Security in global form must, at
the time of its designation and at all times while it serves as Depositary, be
a clearing agency registered under the Securities Exchange Act of 1934 and any
other applicable statute or regulation.  

 

26

 

Neither the Company nor the Trustee shall have any
responsibility to determine if the Depositary is so registered.

 

Each
Depositary shall enter into an agreement with the Trustee governing the
respective duties and rights of such Depositary and the Trustee with regard to
Securities issued in global form.

 

Each
Registered Security shall be dated the date of its authentication and each
Bearer Security shall be dated as of the date specified as contemplated by Section 3.1.

 

No
Security or coupon appertaining thereto shall be entitled to any benefits under
this Indenture or be valid or obligatory for any purpose until authenticated by
the manual signature of one of the authorized signatories of the Trustee or an
Authenticating Agent and no coupon shall be valid until the Security to which
it appertains has been so authenticated. 
Such signature upon any Security shall be conclusive evidence, and the
only evidence, that such Security has been duly authenticated and delivered
under this Indenture and is entitled to the benefits of this Indenture.  Except as permitted by Section 3.6 or
3.7, the Trustee shall not authenticate and deliver any Bearer Security unless
all appurtenant coupons for interest then matured have been detached and
cancelled.

 

Notwithstanding
the foregoing, if any Security shall have been authenticated and delivered
hereunder but never issued and sold by the Company, and the Company shall
deliver such Security to the Trustee for cancellation as provided in Section 3.9
together with a written statement (which need not comply with Section 1.2
and need not be accompanied by an Opinion of Counsel) stating that such
Security has never been issued and sold by the Company, for all purposes of
this Indenture such Security shall be deemed never to have been authenticated
and delivered hereunder and shall not be entitled to the benefits of this
Indenture.

 

Section 3.4.                                   Temporary
Securities.  Pending the preparation
of definitive Securities of any series, the Company may execute and, upon
Company Order, the Trustee shall authenticate and deliver temporary Securities
of such series which are printed, lithographed, typewritten, mimeographed or
otherwise produced, in any authorized denomination, substantially of the tenor
and form, with or without coupons, of the definitive Securities in lieu of
which they are issued and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Securities
may determine, as conclusively evidenced by their execution of such Securities
and coupons, if any.  In the case of
Securities of any series, all or a portion of such temporary Securities may be
in global form.

 

Except
in the case of temporary Securities in global form, each of which shall be
exchanged in accordance with the provisions thereof, if temporary Securities of
any series are issued, the Company will cause definitive Securities of such
series to be 

 

27

 

prepared without unreasonable delay.  After preparation of definitive Securities of
such series, the temporary Securities of such series shall be exchangeable for
definitive Securities of such series upon surrender of the temporary Securities
of such series at the office or agency of the Company pursuant to Section 9.2
in a Place of Payment for such series, without charge to the Holder.  Upon surrender for cancellation of any one or
more temporary Securities of any series (accompanied by any unmatured coupons
appertaining thereto), the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a like principal amount of
definitive Securities of the same series of authorized denominations and of
like tenor; provided, however, that no definitive Bearer Security shall be
delivered in exchange for a temporary Registered Security; and provided further
that no definitive Bearer Security shall be delivered in exchange for a
temporary Bearer Security unless the Trustee shall have received from the
person entitled to receive the definitive Bearer Security a certificate
substantially in the form approved in or pursuant to the Board Resolutions
relating thereto and such delivery shall occur only outside the United
States.  Until so exchanged, the
temporary Securities of any series shall in all respects be entitled to the
same benefits under this Indenture as definitive Securities of such series except
as otherwise specified as contemplated by Section 3.1.

 

Section 3.5.                                   Registration,
Transfer and Exchange.  The Company
shall cause to be kept at the Corporate Trust Office of the Trustee or in any
office or agency to be maintained by the Company in accordance with Section 9.2
in a Place of Payment or in such other place or medium as may be specified
pursuant to Section 3.1 a register (the “Register”) in which,
subject to such reasonable regulations as it may prescribe, the Company shall
provide for the registration of Registered Securities and the registration of
transfers of Registered Securities.  The
Register shall be in written form or any other form capable of being converted
into written form within a reasonable time. 
Unless otherwise provided as contemplated by Section 3.1, the
Trustee is hereby appointed “Registrar” for the purpose of registering
Registered Securities and transfers of Registered Securities as herein
provided.  The Company may have one or
more co-Registrars.

 

Upon
surrender for registration of transfer of any Registered Security of any series
at the office or agency maintained pursuant to Section 9.2 in a Place of
Payment for that series, the Company shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Registered Securities of the same series, of any
authorized denominations and of a like aggregate principal amount.

 

Unless
otherwise provided as contemplated by Section 3.1, Bearer Securities
(except for any temporary global Bearer Securities) or any coupons appertaining
thereto (except for coupons attached to any temporary global Bearer Security)
shall be transferable by delivery.

 

28

 

Unless
otherwise provided as contemplated by Section 3.1, at the option of the
Holder, Registered Securities of any series (except a Registered Security in
global form) may be exchanged for other Registered Securities of the same
series, of any authorized denominations and of a like aggregate principal
amount containing identical terms and provisions, upon surrender of the
Registered Securities to be exchanged at such office or agency.  Whenever any Registered Securities are so
surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Registered Securities which the Holder making the
exchange is entitled to receive.  Unless
otherwise specified as contemplated by Section 3.1, Bearer Securities may
not be issued in exchange for Registered Securities.

 

Unless
otherwise specified as contemplated by Section 3.1, at the option of the
Holder, Bearer Securities of such series may be exchanged for Registered
Securities (if the Securities of such series are issuable in registered form)
or Bearer Securities (if Bearer Securities of such series are issuable in more
than one denomination and such exchanges are permitted by such series) of the
same series, of any authorized denominations and of like tenor and aggregate
principal amount, upon surrender of the Bearer Securities to be exchanged at
any such office or agency, with all unmatured coupons and all matured coupons
in default thereto appertaining.  If the
Holder of a Bearer Security is unable to produce any such unmatured coupon or
coupons or matured coupon or coupons in default, such exchange may be effected
if the Bearer Securities are accompanied by payment in funds acceptable to the
Company and the Trustee in an amount equal to the face amount of such missing
coupon or coupons, or the surrender of such missing coupon or coupons may be
waived by the Company and the Trustee if there be furnished to them such
security or indemnity as they may require to save each of them and any Paying
Agent harmless.  If thereafter the Holder
of such Security shall surrender to any Paying Agent any such missing coupon in
respect of which such a payment shall have been made, such Holder shall be
entitled to receive the amount of such payment; provided, however, that, except
as otherwise provided in Section 9.2, interest represented by coupons
shall be payable only upon presentation and surrender of those coupons at an
office or agency located outside the United States.  Notwithstanding the foregoing, in case any
Bearer Security of any series is surrendered at any such office or agency in
exchange for a Registered Security of the same series after the close of
business at such office or agency on (i) any Regular Record Date
and before the opening of business at such office or agency on the relevant
Interest Payment Date or (ii) any Special Record Date and before
the opening of business at such office or agency on the related date for
payment of Defaulted Interest, such Bearer Security shall be surrendered
without the coupon relating to such Interest Payment Date or proposed date of
payment, as the case may be (or, if such coupon is so surrendered with such
Bearer Security, such coupon shall be returned to the person so surrendering
the Bearer Security), and interest or Defaulted Interest, as the case may be, will
not be payable on such Interest Payment Date or proposed date for payment, as
the case may be, in respect of the Registered Security 

 

29

 

issued in exchange for such Bearer Security, but will
be payable only to the Holder of such coupon, when due in accordance with the
provisions of this Indenture.

 

Unless
otherwise specified pursuant to Section 3.1 with respect to a series of
Securities or as otherwise provided below in this Section 3.5, owners of
beneficial interests in Securities of such series represented by a Security
issued in global form will not be entitled to have Securities of such series
registered in their names, will not receive or be entitled to receive physical
delivery of Securities of such series in certificated form and will not be
considered the Holders or owners thereof for any purposes hereunder.  Notwithstanding any other provision of this
Section, unless and until it is exchanged in whole or in part for Securities in
certificated form in the circumstances described below, a Security in global
form representing all or a portion of the Securities of a series may not be
transferred or exchanged except as a whole by the Depositary for such series to
a nominee of such Depositary or by a nominee of such Depositary to such
Depositary or another nominee of such Depositary or by such Depositary or any
such nominee to a successor Depositary for such series or a nominee of such
successor Depositary.

 

If at
any time the Depositary for the Securities of a series notifies the Company
that it is unwilling or unable to continue as Depositary for the Securities of
such series or if at any time the Depositary for the Securities of such series
notifies the Company that it shall no longer be eligible under Section 3.3,
the Company shall appoint a successor Depositary with respect to the Securities
of such series.  Unless otherwise
provided as contemplated by Section 3.1, if a successor Depositary for the
Securities of such series is not appointed by the Company within 90 days after
the Company receives such notice or becomes aware of such ineligibility, the
Company’s election pursuant to Section 3.1(b) (25) shall no longer be
effective with respect to the Securities of such series and the Company shall
execute, and the Trustee, upon receipt of a Company Order for the
authentication and delivery of certificated Securities of such series of like
tenor, shall authenticate and deliver, Securities of such series of like tenor
in certificated form, in authorized denominations and in an aggregate principal
amount equal to the principal amount of the Security or Securities of such
series of like tenor in global form in exchange for such Security or Securities
in global form.

 

The
Company may at any time in its sole discretion determine that Securities of a
series issued in global form shall no longer be represented by such a Security
or Securities in global form.  In such
event the Company shall execute, and the Trustee, upon receipt of a Company
Order for the authentication and delivery of certificated Securities of such
series of like tenor, shall authenticate and deliver, Securities of such series
of like tenor in certificated form, in authorized denominations and in an
aggregate principal amount equal to the principal amount of the Security or
Securities of such series of like tenor in global form in exchange for such
Security or Securities in global form.

 

30

 

If
specified by the Company pursuant to Section 3.1 with respect to a series
of Securities, the Depositary for such series may surrender a Security in
global form of such series in exchange in whole or in part for Securities of
such series in certificated form on such terms as are acceptable to the Company
and such Depositary.  Thereupon, the
Company shall execute, and the Trustee shall authenticate and deliver, without
service charge,

 

(1)                                  to
each Person specified by such Depositary a new certificated Security or
Securities of the same series of like tenor, of any authorized denomination as
requested by such Person in aggregate principal amount equal to and in exchange
for such Person’s beneficial interest in the Security in global form; and

 

(2)                                  to
such Depositary a new Security in global form of like tenor in a denomination
equal to the difference, if any, between the principal amount of the
surrendered Security in global form and the aggregate principal amount of
certificated Securities delivered to Holders thereof.

 

Upon
the exchange of a Security in global form for Securities in certificated form,
such Security in global form shall be cancelled by the Trustee.  Unless expressly provided with respect to the
Securities of any series that such Security may be exchanged for Bearer
Securities, Securities in certificated form issued in exchange for a Security
in global form pursuant to this Section shall be registered in such names
and in such authorized denominations as the Depositary for such Security in
global form shall instruct the Trustee. 
The Trustee shall deliver such Securities to the Persons in whose names
such Securities are so registered.

 

Whenever
any Securities are surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver, the Securities which the Holder making
the exchange is entitled to receive.

 

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

 

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

 

31

 

Unless
otherwise provided as contemplated by Section 3.1, no service charge shall
be made for any registration of transfer or for any exchange of Securities, but
the Company may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration or
transfer or exchange of Securities, other than exchanges pursuant to Section 3.4
or 10.7 not involving any transfer.

 

Unless
otherwise provided as contemplated by Section 3.1, the Company shall not
be required (i) to issue, register the transfer of, or exchange any
Securities for a period beginning at the opening of business l5 days before any
selection for redemption of Securities of like tenor and of the series of which
such Security is a part and ending at the close of business on the earliest
date on which the relevant notice of redemption is deemed to have been given to
all Holders of Securities of like tenor and of such series to be redeemed, (ii) to
register the transfer of or exchange any Registered Security so selected for
redemption, in whole or in part, except the unredeemed portion of any Security
being redeemed in part or (iii) to exchange any Bearer Security so
selected for redemption, except that such a Bearer Security may be exchanged
for a Registered Security of that series and like tenor; provided that such
Registered Security shall be simultaneously surrendered for redemption.

 

The
foregoing provisions of this Section 3.5 relating to registration,
transfer and exchange may be modified, supplemented or superseded with respect
to any series of Securities by a Board Resolution or in one or more indentures
supplemental hereto.

 

Section 3.6.                                   Replacement
Securities.  If a mutilated Security
or a Security with a mutilated coupon appertaining to it is surrendered to the
Trustee, together with, in proper cases, such security or indemnity as may be
required by the Company or the Trustee to save each of them harmless, the
Company shall execute and the Trustee shall authenticate and deliver a replacement
Registered Security, if such surrendered Security was a Registered Security, or
a replacement Bearer Security with coupons corresponding to the coupons
appertaining to the surrendered Security, if such surrendered Security was a
Bearer Security, of the same series and date of maturity, if the Trustee’s
requirements are met.

 

If
there shall be delivered to the Company and the Trustee (i) evidence
to their satisfaction of the destruction, loss or theft of any Security or
Security with a destroyed, lost or stolen coupon and (ii) such
security or indemnity as may be required by them to save each of them and any
agent of either of them harmless, then, in the absence of notice to the Company
or the Trustee that such Security or coupon has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and
deliver in lieu of any such destroyed, lost or stolen Security or in exchange
for the Security to which a destroyed, lost or stolen coupon appertains (with
all appurtenant coupons not destroyed, lost or stolen), a replacement
Registered Security, if such Holder’s claim 

 

32

 

appertains to a Registered Security, or a replacement
Bearer Security with coupons corresponding to the coupons appertaining to the
destroyed, lost or stolen Bearer Security or the Bearer Security to which such
lost, destroyed or stolen coupon appertains, if such Holder’s claim appertains
to a Bearer Security, of the same series and principal amount, containing
identical terms and provisions and bearing a number not contemporaneously
outstanding with coupons corresponding to the coupons, if any, appertaining to
the destroyed, lost or stolen Security.

 

In
case any such mutilated, destroyed, lost or stolen Security or coupon has
become or is about to become due and payable, the Company in its discretion
may, instead of issuing a new Security or coupon, pay such Security or coupon;
provided, however, that payment of principal of and any premium or interest on
Bearer Securities shall, except as otherwise provided in Section 9.2, be
payable only at an office or agency located outside the United States and,
unless otherwise specified as contemplated by Section 3.1, any interest on
Bearer Securities shall be payable only upon presentation and surrender of the
coupons appertaining thereto.

 

Upon
the issuance of any new Security under this Section, the Company may require
the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other expenses (including the
fees and expenses of the Trustee, its agents and counsel) connected therewith.

 

Every
new Security of any series with its coupons, if any, issued pursuant to this Section in
lieu of any destroyed, lost or stolen Security, or in exchange for a Security
to which a destroyed, lost or stolen coupon appertains, shall constitute an
original additional contractual obligation of the Company, whether or not the
destroyed, lost or stolen Security and its coupon, if any, or the destroyed,
lost or stolen coupon, shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Securities of that series and their coupons, if any, duly
issued hereunder.

 

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

 

Section 3.7.                                   Payment of
Interest; Interest Rights Preserved. 
(a)  Unless otherwise provided as contemplated by Section 3.1,
interest, if any, on any Registered Security which is payable, and is
punctually paid or duly provided for, on any Interest Payment Date shall be
paid to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest at the office or agency maintained for such purpose pursuant
to Section 9.2; provided, however, that at the option of the Company,
interest on any series of Registered Securities that bear interest may be paid (i) by
check mailed to the address of 

 

33

 

the Person entitled thereto as it shall appear on the Register of
Holders of Securities of such series or (ii) to a Holder of
$1,000,000 or more in aggregate principal amount of Securities by wire transfer
to an account maintained by the Person entitled thereto as specified in the
Register of Holders of Securities of such series.

 

Unless
otherwise provided as contemplated by Section 3.1, (A) (i) interest,
if any, on Bearer Securities shall be paid only against presentation and
surrender of the coupons for such interest installments as are evidenced
thereby as they mature and (ii) principal, original issue discount,
if any, and premium, if any, on Bearer Securities shall be paid only against
presentation and surrender of such Securities; in either case at the office of
a Paying Agent located outside the United States, unless the Company shall have
otherwise instructed the Trustee in writing provided that any such instruction
for payment in the United States does not cause any Bearer Security to be
treated as a “registration-required obligation” under United States laws and
regulations, (B) the interest, if any, on any temporary Bearer
Security shall be paid, as to any installment of interest evidenced by a coupon
attached thereto only upon presentation and surrender of such coupon as
provided in clause (A) above and, as to other installments of interest,
only upon presentation of such Security for notation thereon of the payment of
such interest and (C) if at the time a payment of principal of
premium, if any, or interest, if any, on a Bearer Security or coupon shall
become due, the payment of the full amount so payable at the office or offices
of all the Paying Agents outside the United States is illegal or effectively
precluded because of the imposition of exchange controls or other similar
restrictions on the payment of such amount in Dollars, then the Company may
instruct the Trustee to make such payment at a Paying Agent located in the
United States, provided that provision for such payment in the United States
would not cause such Bearer Security to be treated as a “registration-required
obligation” under United States laws and regulations.

 

(b)                                 Unless
otherwise provided as contemplated by Section 3.1, any interest on any
Registered Security of any series which is payable, but is not punctually paid
or duly provided for, on any interest payment date (herein called “Defaulted
Interest”) shall forthwith cease to be payable to the Holder on the
relevant Regular Record Date by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Company, at its election in each case, as
provided in clause (1) or (2) below:

 

(1)                                  The
Company may elect to make payment of any Defaulted Interest to the Persons in
whose names such Registered Securities of such series (or their respective
Predecessor Securities) are registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest, which shall be fixed in
the following manner.  The Company shall
deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the trustee for such deposit prior to the date of
the proposed payment, such money when 

 

34

 

deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this clause (1) provided.  Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more
than 15 days and not less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the
notice of the proposed payment.  The
Trustee shall promptly notify the Company of such Special Record Date and, in
the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be
mailed, first-class postage prepaid, to each Holder of such Registered
Securities of such series at his address as it appears in the Register, not
less than 10 days prior to such Special Record Date.  Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so mailed,
such Defaulted Interest shall be paid to the Persons in whose names such
Registered Securities of such series (or their respective Predecessor
Securities) are registered at the close of business on such Special Record Date
and shall no longer be payable pursuant to the following clause (2).

 

(2)                                  The
Company may make payment of any Defaulted Interest to the Persons in whose
names such Registered Securities of such series (or their respective
Predecessor Securities) are registered at the close of business on a specified
date in any other lawful manner not inconsistent with the requirements of any
securities exchange on which such Registered Securities may be listed, and upon
such notice as may be required by such exchange, if, after notice given by the
Company to the Trustee of the proposed payment pursuant to this
clause (2), such manner of payment shall be deemed practicable by the
Trustee.

 

(c)                                  Subject
to the foregoing provisions of this Section and Section 3.5, each
Security delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Security shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other
Security.

 

Section 3.8.                                   Persons Deemed
Owners.  Prior to due presentment of
any Registered Security for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name
such Registered Security is registered as the owner of such Registered Security
for the purpose of receiving payment of principal of, and premium, if any, and
(subject to Section 3.7) interest and any other payments on such
Registered Security and for all other purposes whatsoever, whether or not such
Registered Security shall be overdue, and neither the Company, the Trustee nor
any agent of the Company or the Trustee shall be affected by notice to the
contrary.

 

35

 

The
Company, the Trustee and any agent of the Company or the Trustee may treat the
bearer of any Bearer Security and the bearer of any coupon as the absolute
owner of such Bearer Security or coupon for the purpose of receiving payment
thereof or on account thereof and for all other purposes whatsoever, whether or
not such Bearer Security or coupon be overdue, and neither the Company, the
Trustee nor any agent of the Company or the Trustee shall be affected by notice
to the contrary.

 

None
of the Company, the Trustee or any agent of the Company or the Trustee shall
have any responsibility or liability for any aspect of the records relating to
or payments made on account of beneficial ownership interests of a Security in
global form, or for maintaining, supervising or reviewing any records relating
to such beneficial ownership interests. 
Notwithstanding the foregoing, with respect to any Security in global
form, nothing herein shall prevent the Company or the Trustee, or any agent of
the Company or the Trustee, from giving effect to any written certification,
proxy or other authorization furnished by any Depositary (or its nominee), as a
Holder, with respect to such Security in global form or impair, as between such
Depositary and owners of beneficial interests in such Security in global form,
the operation of customary practices governing the exercise of the rights of
such Depositary (or its nominee) as Holder of such Security in global form.

 

Section 3.9.                                   Cancellation.  The Company at any time may deliver
Securities and coupons to the Trustee for cancellation.  The Registrar and any Paying Agent shall
forward to the Trustee any Securities and coupons surrendered to them for
replacement, for registration of transfer, or for exchange or payment.  The Trustee shall cancel all Securities and
coupons surrendered for replacement, for registration of transfer, or for exchange,
payment, redemption or cancellation and may destroy cancelled Securities and
coupons and, if so destroyed, shall issue a certificate of destruction to the
Company.  The Company may not issue new
Securities to replace Securities that it has paid or delivered to the Trustee
for cancellation.

 

Section 3.10.                             Computation of Interest.  Except as otherwise specified as contemplated
by Section 3.1, interest on the Securities of each series shall be
computed on the basis of a 360-day year of twelve 30-day months.

 

Section 3.11.                             Currency and Manner of
Payment in Respect of Securities.  (a) Unless
otherwise specified with respect to any Securities pursuant to Section 3.1,
with respect to Registered Securities of any series not permitting the election
provided for in paragraph (b) below or the Holders of which have not made
the election provided for in paragraph (b) below, and with respect to
Bearer Securities of any series, except as provided in paragraph (d) below,
payment of the principal of, and premium, if any, interest, if any, and other
amounts, if any, on any Registered or Bearer Security of such series will be
made in the currency or currencies or currency unit or units in which such
Registered Security or Bearer Security, as the case may be, is payable.  The provisions of 

 

36

 

this Section 3.11, including without limitation any defined terms
specified herein, may be modified or superseded in whole or in part pursuant to
Section 3.1 with respect to any Securities.

 

(b)                                 It
may be provided pursuant to Section 3.1, with respect to Registered
Securities of any series, that Holders shall have the option, subject to
paragraphs (d) and (e) below, to receive payments of principal of, or
premium, if any, or interest, if any, on such Registered Securities in any of
the currencies or currency units which may be designated for such election by
delivering to the Trustee (or the applicable Paying Agent) a written election
with signature guarantees and in the applicable form established pursuant to Section 3.1,
not later than the close of business on the Election Date immediately preceding
the applicable payment date.  If a Holder
so elects to receive such payments in any such currency or currency unit, such
election will remain in effect for such Holder or any transferee of such Holder
until changed by such Holder or such transferee by written notice to the
Trustee (or any applicable Paying Agent) for such series of Registered
Securities (but any such change must be made not later than the close of
business on the Election Date immediately preceding the next payment date to be
effective for the payment to be made on such payment date, and no such change
of election may be made with respect to payments to be made on any Registered
Security of such series with respect to which an Event of Default has occurred
or with respect to which the Company has deposited funds pursuant to Article IV
or with respect to which a notice of redemption has been given by or on behalf
of the Company).  Any Holder of any such
Registered Security who shall not have delivered any such election to the
Trustee (or any applicable Paying Agent) not later than the close of business
on the applicable Election Date will be paid the amount due on the applicable
payment date in the relevant currency or currency unit as provided in Section 3.11(a).  The Trustee (or the applicable Paying Agent)
shall notify the Company and the Exchange Rate Agent as soon as practicable
after the Election Date of the aggregate principal amount of Registered
Securities for which Holders have made such written election.

 

(c)                                  If
the election referred to in paragraph (b) above has been provided for with
respect to any Registered Securities of a series pursuant to Section 3.1,
then, unless otherwise specified pursuant to Section 3.1 with respect to
any such Registered Securities, not later than the fourth Business Day after
the Election Date for each payment date for such Registered Securities, the
Exchange Rate Agent will deliver to the Company a written notice specifying, in
the currency or currencies or currency unit or units in which Registered
Securities of such series are payable, the respective aggregate amounts of
principal of, premium, if any, and interest, if any, on such Registered Securities
to be paid on such payment date, and specifying the amounts in such currency or
currencies or currency unit or units so payable in respect of such Registered
Securities as to which the Holders of Registered Securities denominated in any
currency or currencies or currency unit or units shall have elected to be paid
in another currency or currency unit as provided in paragraph (b) above.  If the election referred to in 

 

37

 

paragraph (b) above
has been provided for with respect to any Registered Securities of a series
pursuant to Section 3.1, and if at least one Holder has made such
election, then, unless otherwise specified pursuant to Section 3.1, on the
second Business Day preceding such payment date the Company will deliver to the
Trustee (or the applicable Paying Agent) an Exchange Rate Officers’ Certificate
in respect of the Dollar, Foreign Currency or Currencies or other currency unit
payments to be made on such payment date. 
Unless otherwise specified pursuant to Section 3.1, the Dollar,
Foreign Currency or Currencies or other currency unit amount receivable by
Holders of Registered Securities who have elected payment in a currency or
currency unit as provided in paragraph (b) above shall be determined by
the Company on the basis of the applicable Market Exchange Rate in effect on
the second Business Day (the “Valuation Date”) immediately preceding
each payment date, and such determination shall be conclusive and binding for
all purposes, absent manifest error.

 

(d)                                 If
a Conversion Event occurs with respect to a Foreign Currency or any other
currency unit in which any of the Securities are denominated or payable
otherwise than pursuant to an election provided for pursuant to paragraph (b) above,
then, unless otherwise specified pursuant to Section 3.1, with respect to
each date for the payment of principal of, premium, if any, and interest, if
any, on the applicable Securities denominated or payable in such Foreign
Currency or such other currency unit occurring after the last date on which
such Foreign Currency or such other currency unit was used (the “Conversion
Date”), the Dollar shall be the currency of payment for use on each such
payment date (but such Foreign Currency or such other currency unit that was
previously the currency of payment shall, at the Company’s election, resume
being the currency of payment on the first such payment date preceded by 15
Business Days during which the circumstances which gave rise to the Dollar
becoming such currency of payment no longer prevail).  Unless otherwise specified pursuant to Section 3.1,
the Dollar amount to be paid by the Company to the Trustee or any applicable
Paying Agent and by the Trustee or any applicable Paying Agent to the Holders
of such Securities with respect to such payment date shall be, in the case of a
Foreign Currency other than a currency unit, the Dollar Equivalent of the
Foreign Currency or, in the case of a Foreign Currency that is a currency unit,
the Dollar Equivalent of the Currency Unit, in each case as determined by the
Exchange Rate Agent in the manner provided in paragraph (f) or (g) below.

 

(e)                                  Unless
otherwise specified pursuant to Section 3.1, if the Holder of a Registered
Security denominated in any currency or currency unit shall have elected to be
paid in another currency or currency unit or in other currencies as provided in
paragraph (b) above, and (i) a Conversion Event occurs with
respect to any such elected currency or currency unit, such Holder shall
receive payment in the currency or currency unit in which payment would have
been made in the absence of such election and (ii) if a Conversion
Event occurs with respect to the currency or currency unit in which payment
would have been made in the absence of such election, such Holder shall receive

 

38

 

payment in Dollars
as provided in paragraph (d) of this Section 3.11 (but, subject to
any contravening valid election pursuant to paragraph (b) above, the
elected payment currency or currency unit, in the case of the circumstances
described in clause (i) above, or the payment currency or currency unit in
the absence of such election, in the case of the circumstances described in
clause (ii) above, shall, at the Company’s election, resume being the
currency or currency unit of payment with respect to Holders who have so
elected, but only with respect to payments on payment dates preceded by 15
Business Days during which the circumstances which gave rise to such currency
or currency unit, in the case of the circumstances described in clause (i) above,
or the Dollar, in the case of the circumstances described in clause (ii) above,
becoming the currency or currency unit, as applicable, of payment, no longer
prevail).

 

(f)                                    The
“Dollar Equivalent of the Foreign Currency” shall be determined by the Exchange
Rate Agent and shall be obtained for each subsequent payment date by the
Exchange Rate Agent by converting the specified Foreign Currency into Dollars
at the Market Exchange Rate on the Conversion Date.

 

(g)                                 The
“Dollar Equivalent of the Currency Unit” shall be determined by the Exchange
Rate Agent and, subject to the provisions of paragraph (h) below, shall be
the sum of each amount obtained by converting the Specified Amount of each
Component Currency (as each such term is defined in paragraph (h) below)
into Dollars at the Market Exchange Rate for such Component Currency on the
Valuation Date with respect to each payment.

 

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

 

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

 

“Conversion Event” shall mean the cessation of
use of (i) a Foreign Currency both by the government of the country
which issued such currency and for the settlement of transactions by a central
bank or other public institutions of or within the international banking
community or (ii) any currency unit for the purposes for which it
was established.

 

“Election Date” shall mean the Regular Record
Date for the applicable series of Registered Securities as specified pursuant
to Section 3.1 by which the written election referred to in Section 3.11(b) may
be made.

 

“Euro” means the lawful currency of the
participating member states of the European Union that adopt, or have adopted,
a single currency in accordance 

 

39

 

with the Treaty establishing the European Community,
as amended by the Treaty on European Union signed February 7, 1992.

 

“Exchange Rate Agent,” when used with respect
to Securities of or within any series, shall mean, unless otherwise specified
with respect to any Securities pursuant to Section 3.1, a New York
Clearing House bank designated pursuant to Section 3.1 or Section 3.12.

 

“Exchange Rate Officer’s Certificate” shall
mean a certificate setting forth (i) the applicable Market Exchange
Rate or the applicable bid quotation and (ii) the Dollar or Foreign
Currency amounts of principal (and premium, if any) and interest, if any (on an
aggregate basis and on the basis of a Security having the lowest denomination
principal amount in the relevant currency or currency unit), payable with
respect to a Security of any series on the basis of such Market Exchange Rate
or the applicable bid quotation, signed by any Authorized Officer or by any
other Officer.

 

“Foreign Currency” shall mean any currency
issued by the government or governments of one or more countries other than the
United States or by any recognized confederation or association of such
governments and shall include the Euro.

 

“Market Exchange Rate” shall mean, unless
otherwise specified with respect to any Securities pursuant to Section 3.1,
as of any date of determination, (i) for any conversion involving a
currency unit on the one hand and Dollars or any Foreign Currency on the other,
the exchange rate between the relevant currency unit and Dollars or such
Foreign Currency calculated by the method specified pursuant to Section 3.1
for the Securities of the relevant series, (ii) for any conversion
of Dollars into any Foreign Currency, the noon buying rate for such Foreign
Currency for cable transfers quoted in New York City as certified for customs
purposes by the Federal Reserve Bank of New York and (iii) for any
conversion of one Foreign Currency into Dollars or another Foreign Currency,
the spot rate at noon local time in the relevant market at which, in accordance
with normal banking procedures, the Dollars or Foreign Currency into which
conversion is being made could be purchased with the Foreign Currency from
which conversion is being made from major banks located in New York City,
London or any other principal market for Dollars or such purchased Foreign
Currency, in each case determined by the Exchange Rate Agent.  Unless otherwise specified with respect to
any Securities pursuant to Section 3.1, in the event of the unavailability
of any of the exchange rates provided for in the foregoing clauses (i), (ii) and
(iii), the Exchange Rate Agent shall use, in its sole discretion and without
liability on its part, such quotation of the Federal Reserve Bank of New York
as of the most recent available date, or quotations from one or 

 

40

 

more major banks in New York City, London or other
principal market for such currency or currency unit in question (which may
include any such bank acting as Trustee under this Indenture), or such other
quotations as the Exchange Rate Agent shall deem appropriate.  Unless otherwise specified by the Exchange
Rate Agent, if there is more than one market for dealing in any currency or
currency unit by reason of foreign exchange regulations or otherwise, the
market to be used in respect of such currency or currency unit shall be that
upon which a nonresident issuer of securities designated in such currency or
currency unit would purchase such currency or currency unit in order to make
payments in respect of such securities.

 

A “Specified Amount” of a Component Currency
shall mean the number of units of such Component Currency or fractions thereof
which such Component Currency represented in the relevant currency unit on the
Conversion Date.  If after the Conversion
Date the official unit of any Component Currency is altered by way of
combination or subdivision, the Specified Amount of such Component Currency
shall be divided or multiplied in the same proportion.  If after the Conversion Date two or more
Component Currencies are consolidated into a single currency, the respective
Specified Amounts of such Component Currencies shall be replaced by an amount
in such single currency equal to the sum of the respective Specified Amounts of
such consolidated Component Currencies expressed in such single currency, and such
amount shall thereafter be a Specified Amount and such single currency shall
thereafter be a Component Currency.  If
after the Conversion Date any Component Currency shall be divided into two or
more currencies, the Specified Amount of such Component Currency shall be
replaced by specified amounts of such two or more currencies, the sum of which,
at the Market Exchange Rate of such two or more currencies on the date of such
replacement, shall be equal to the Specified Amount of such former Component Currency
and such amounts shall thereafter be Specified Amounts and such currencies
shall thereafter be Component Currencies. 
If, after the Conversion Date of the relevant currency unit, a
Conversion Event (other than any event referred to above in this definition of “Specified
Amount”) occurs with respect to any Component Currency of such currency unit
and is continuing on the applicable Valuation Date, the Specified Amount of
such Component Currency shall, for purposes of calculating the Dollar
Equivalent of the Currency Unit, be converted into Dollars at the Market
Exchange Rate in effect on the Conversion Date of such Component Currency.

 

All
decisions and determinations of the Exchange Rate Agent regarding the Dollar
Equivalent of the Foreign Currency, the Dollar Equivalent of the Currency Unit,
the Market Exchange Rate and changes in the Specified Amounts as specified
above shall be in its sole discretion and shall, in the absence of manifest
error, be conclusive for all purposes and irrevocably binding upon the Company,
the Trustee (and any applicable 

 

41

 

Paying Agent) and all Holders of Securities
denominated or payable in the relevant currency, currencies or currency
units.  The Exchange Rate Agent shall promptly
give written notice to the Company and the Trustee of any such decision or
determination.

 

In the
event that the Company determines in good faith that a Conversion Event has
occurred with respect to a Foreign Currency, the Company will promptly give
written notice thereof to the Trustee (or any applicable Paying Agent) and to
the Exchange Rate Agent (and the Trustee (or such Paying Agent) will promptly
thereafter give notice in the manner provided in Section 1.6 to the
affected Holders) specifying the Conversion Date.  In the event the Company so determines that a
Conversion Event has occurred with respect to any currency unit in which
Securities are denominated or payable, the Company will promptly give written
notice thereof to the Trustee (or any applicable Paying Agent) and to the
Exchange Rate Agent (and the Trustee (or such Paying Agent) will promptly
thereafter give notice in the manner provided in Section 1.6 to the
affected Holders) specifying the Conversion Date and the Specified Amount of each
Component Currency on the Conversion Date. 
In the event the Company determines in good faith that any subsequent
change in any Component Currency as set forth in the definition of Specified
Amount above has occurred, the Company will similarly give written notice to
the Trustee (or any applicable Paying Agent) and to the Exchange Rate Agent.

 

The
Trustee of the appropriate series of Securities shall be fully justified and
protected in relying and acting upon information received by it from the
Company and the Exchange Rate Agent and shall not otherwise have any duty or
obligation to determine the accuracy or validity of such information
independent of the Company or the Exchange Rate Agent.

 

Section 3.12.                             Appointment and
Resignation of Exchange Rate Agent.  (a) Unless
otherwise specified pursuant to Section 3.1, if and so long as the
Securities of any series (i) are denominated in a currency or
currency unit other than Dollars or (ii) may be payable in a
currency or currency unit other than Dollars, or so long as it is required
under any other provision of this Indenture, then the Company will maintain
with respect to each such series of Securities, or as so required, at least one
Exchange Rate Agent.  The Company will
cause the Exchange Rate Agent to make the necessary foreign exchange
determinations at the time and in the manner specified pursuant to Section 3.11
for the purpose of determining the applicable rate of exchange and, if
applicable, for the purpose of converting the issued currency or currencies or
currency unit or units into the applicable payment currency or currency unit
for the payment of principal, premium, if any, and interest, if any, pursuant
to Section 3.11.

 

(b)                                 No
resignation of the Exchange Rate Agent and no appointment of a successor
Exchange Rate Agent pursuant to this Section shall become effective until
the acceptance of appointment by the successor Exchange Rate Agent as evidenced
by a 

 

42

 

written instrument
delivered to the Company and the Trustee of the appropriate series of
Securities accepting such appointment executed by the successor Exchange Rate
Agent.

 

(c)                                  If
the Exchange Rate Agent shall resign, be removed or become incapable of acting,
or if a vacancy shall occur in the office of the Exchange Rate Agent for any
cause, with respect to the Securities of one or more series, the Company shall
promptly appoint a successor Exchange Rate Agent or Exchange Rate Agents with
respect to the Securities of that or those series (it being understood that any
such successor Exchange Rate Agent may be appointed with respect to the
Securities of one or more or all of such series and that, unless otherwise
specified pursuant to Section 3.1, at any time there shall only be one
Exchange Rate Agent with respect to the Securities of any particular series
that are originally issued by the Company on the same date and that are
initially denominated and/or payable in the same currency or currencies or
currency unit or units).

 

Section 3.13.                             CUSIP Numbers.  The Company in issuing Securities may use “CUSIP”
numbers (if then generally in use), and if so, the Trustee may use the CUSIP
numbers in notices of redemption or exchange as a convenience to Holders;
provided, however, that any such notice may state that no representation is
made as to the correctness or accuracy of the CUSIP number printed in the
notice or on the Securities, that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption or
exchange shall not be affected by any defect or omission of such CUSIP
numbers.  The Company will promptly
notify the Trustee of any change in CUSIP numbers known to an Officer of the
Company.

 

ARTICLE IV

 

SATISFACTION AND DISCHARGE

 

Section 4.1.                                   Termination of
Company’s Obligations Under the Indenture. 
This Indenture shall upon Company Request cease to be of further effect
with respect to Securities of or within any series and any coupons appertaining
thereto (except as to any surviving rights of registration of transfer or
exchange of such Securities and replacement of such Securities which may have
been lost, stolen or mutilated as herein expressly provided for) and the
Trustee, at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture with respect to such
Securities and any coupons appertaining thereto when:

 

(1)                                  either

 

(A)                              all
such Securities previously authenticated and delivered and all coupons
appertaining thereto (other than (i) such coupons appertaining to
Bearer Securities surrendered in exchange for Registered Securities and
maturing after such exchange, surrender of which is not required or has been
waived as provided 

 

43

 

in Section 3.5, (ii) such Securities
and coupons which have been destroyed, lost or stolen and which have been
replaced or paid as provided in Section 3.6, (iii) such
coupons appertaining to Bearer Securities called for redemption and maturing
after the relevant Redemption Date, surrender of which has been waived as
provided in Section 10.6 and (iv) such Securities and coupons
for whose payment money has theretofore been deposited in trust or segregated
and held in trust by the Company and thereafter repaid to the Company or
discharged from such trust, as provided in Section 9.3) have been
delivered to the Trustee for cancellation; or

 

(B)                                all
Securities of such series and, in the case of (i) or (ii) below, any
coupons appertaining thereto not theretofore delivered to the Trustee for
cancellation

 

(i)                                     have
become due and payable, or

 

(ii)                                  will
become due and payable at the Stated Maturity of the principal thereof within
one year, or

 

(iii)                               if
redeemable at the option of the Company, are to be called for redemption within
one year under arrangements satisfactory to the Trustee for giving of notice of
redemption by the Trustee in the name, and at the expense, of the Company,

 

and the Company, in the case of (i), (ii) or (iii) above,
has irrevocably deposited or caused to be deposited with the Trustee as trust
funds (which may be held in an account insured by the Federal Deposit Insurance
Corporation) in trust for the purpose an amount in cash, Government Obligations
or a combination thereof in the currency or currencies or currency unit or
units in which the Securities of such series are payable, sufficient to pay and
discharge (without reinvestment) the entire indebtedness on such Securities and
such coupons not theretofore delivered to the Trustee for cancellation, for principal,
premium, if any, and interest, with respect thereto, to the date of such
deposit (in the case of Securities which have become due and payable) or to the
Stated Maturity or Redemption Date, as the case may be;

 

(2)                                  the
Company has paid or caused to be paid all other sums then payable hereunder by
the Company; and

 

(3)                                  the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for in this Article relating
to the satisfaction and discharge of this Indenture as to such series have been
complied with.

 

44

 

Notwithstanding the satisfaction and discharge of this
Indenture, the obligation of the Company to the Trustee and any predecessor
Trustee under Section 6.8, the obligations of the Company to any
Authenticating Agent under Section 6.13 and, if money shall have been
deposited with the Trustee pursuant to subclause (B) of clause (1) of
this Section, the obligations of the Trustee under Section 4.2 and the
last paragraph of Section 9.3 shall survive.

 

Section 4.2.                                   Application of
Trust Funds.  Subject to the provisions
of the last paragraph of Section 9.3, all money and Government Obligations
deposited with the Trustee pursuant to Section 4.1 shall be held in trust
and applied by it, in accordance with the provisions of the Securities, the
coupons and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Persons entitled thereto, of the principal,
premium, if any and any interest for whose payment such money has been
deposited with or received by the Trustee, but such money need not be
segregated from other funds except to the extent required by law.

 

Section 4.3.                                   Repayment to
Company.  The Trustee (and any Paying
Agent) shall promptly pay to the Company upon Company Request any excess money
or securities held by them at any time. 
Such Company Request shall specifically set forth the amount of such
excess and the Trustee shall be fully protected and shall incur no liability in
reliance on such Company Request.

 

Section 4.4.                                   Indemnity for
Government Obligations.  The Company
shall pay, and shall indemnify the Trustee against, any tax, fee or other
charge imposed on or assessed against Government Obligations deposited pursuant
to this Article or the principal and interest received on such Government
Obligations.

 

ARTICLE V

 

EVENTS OF DEFAULT, DEFAULTS AND REMEDIES

 

Section 5.1.                                   Events of Default
and Defaults.  (a)  An “Event of
Default” occurs with respect to the Securities of any series if (whatever the reason
for such Event of Default and whether it shall be voluntary or involuntary or
be effected by operation of law or pursuant to any judgment, decree or order of
any court or any order, rule or regulation of any administrative or
governmental body):

 

(1)                                  a
court of competent jurisdiction enters (A) a decree or order for
relief in respect of the Company in an involuntary case or proceeding involving
a Winding Up of the Company or (B) a decree or order relating to a
Winding Up of the Company; provided that in any such case, such decree or order
will necessarily result in a Winding Up of the Company; or

 

45

 

(2)                                  the
Company (A) commences a voluntary case or proceeding under any
applicable law involving a Winding Up of the Company or any other case or
proceeding whereby the Company may be wound up, dissolved or cease to exist as
a body corporate, (B) consents to the entry of a decree or order
for relief in respect of the Company in an involuntary case or proceeding under
any applicable law involving a Winding Up of the Company or to the commencement
of any such case or proceeding against it or (C) files a petition
or answer or consent seeking such relief under any applicable law, or the
Company consents to the filing of such petition; and provided that in each such
case a liquidator under the Corporations Act 2001 of Australia (but not
including a provisional liquidator) has been appointed and such event will
necessarily result in a Winding Up of the Company; or

 

(3)                                  any
other Event of Default provided as contemplated by Section 3.1 with
respect to Securities of that series.

 

(b)                                 A
“Default” occurs with respect to Securities of any series if (whatever the
reason for such Default and whether it shall be occasioned by the provisions of
Article XII or be voluntary or involuntary or be effected by operation of
law or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

 

(1)                                  an
Event of Default specified in Section 5.1(a) occurs or a court of
competent jurisdiction enters or a proceeding shall have been commenced by any
person other than the Company for a decree or order appointing a custodian,
receiver, liquidator, statutory manager, controller, assignee, trustee,
sequestrator or other similar official of the Company or of any substantial
part of its property, and such decree, proceeding or order shall be continuing
and not rescinded, suspended or stayed for a period of 60 consecutive days, or
the Company consents to such an appointment or makes a general assignment for
the benefit of its creditors;

 

(2)                                  the
Company defaults in the payment of interest on any Security of that series or
any coupon appertaining thereto or any Additional Amount payable with respect
to any Security of that series as specified pursuant to Section 9.8
(subject to Section 3.1) when the same becomes due and payable and such
default continues for a period of 30 days;

 

(3)                                  the
Company defaults in the payment of the principal of, or any premium on, any
Security of that series when the same becomes due and payable at its Maturity
or on redemption or otherwise, or in the payment of a mandatory sinking fund
payment when and as due by the terms of the Securities of that series and, in
each case, such default continues for a period of 7 days;

 

46

 

(4)                                  the
Company defaults in the performance of, or breaches, any covenant or warranty
of the Company in this Indenture with respect to any Security of that series
(other than a covenant or warranty a default in whose performance or whose
breach is elsewhere in this Section specifically dealt with), and such
default or breach continues for a period of 60 days after there has been given,
by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in principal amount of
the Outstanding Securities of that series, a written notice specifying such
default or breach and requiring it to be remedied and stating that such notice
is a “Notice of Default” hereunder; or

 

(5)                                  any
other Default provided, as contemplated by Section 3.1, with respect to
Securities of that series.

 

Section 5.2.                                   Acceleration;
Rescission and Annulment.  If an Event
of Default with respect to Securities of any series at the time Outstanding
occurs and is continuing, then in every such case the Trustee or the Holders of
not less than 25% in principal amount of the Outstanding Securities of that
series may declare the principal amount (or, if any of the Securities of that
series are Original Issue Discount Securities, such portion of the principal
amount of such Securities as may be specified in the terms thereof) of all of
the Securities of that series to be due and payable immediately, by a notice in
writing to the Company (and to the Trustee if given by Holders), and upon any
such declaration such principal amount (or specified amount) shall become
immediately due and payable, provided that payment of all such amounts shall
remain subordinated to the extent provided in Article XII.

 

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

 

(1)                                  the
Company has paid or deposited with the Trustee a sum sufficient to pay

 

(A)                              all
overdue interest on all Securities of that series,

 

(B)                                the
principal of (and premium, if any, on) any Securities of that series which have
become due otherwise than by such declaration of acceleration and any interest
thereon at the rate or rates prescribed therefor in such Securities,

 

47

 

(C)                                to
the extent that payment of such interest is lawful, interest upon overdue
interest at the rate or rates prescribed therefor in such Securities, and

 

(D)                               all
sums paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

 

(2)                                  all
Events of Default with respect to Securities of that series, other than the
non-payment of the principal of Securities of that series which have become due
solely by such declaration of acceleration, have been cured or waived as
provided in Section 5.7.

 

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

 

Section 5.3.                                   Collection of
Indebtedness and Suits for Enforcement by Trustee.  The Company covenants that if:

 

(1)                                  there
is a default in the payment of any interest on any Security or coupon, if any,
when such interest becomes due and payable and such default continues for a
period of 30 days, or

 

(2)                                  there
is a default in the payment of the principal of (or premium, if any, on) any
Security at the Maturity thereof and such default continues for a period of 7
days,

 

the Company will, upon demand of the Trustee, pay to
it, for the benefit of the Holders of such Securities or coupons, if any, the
whole amount then due and payable on such Securities for principal, premium, if
any, and interest and, to the extent that payment of such interest shall be
legally enforceable, interest on any overdue principal, premium, if any, and on
any overdue interest, at the rate or rates prescribed therefor in such Securities
or coupons, if any, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, provided, however, that payment of all such amounts
shall remain subordinated to the extent provided in Article XII.

 

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

 

48

 

however, that payment of all such amounts shall remain
subordinated to the extent provided in Article XII.

 

If a
Default or Event of Default with respect to Securities of any series occurs and
is continuing, the Trustee may in its discretion proceed to protect and enforce
its rights and the rights of the Holders of Securities of such series by such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect any such rights, whether for the specific enforcement of any covenant
or agreement in this Indenture or in aid of the exercise of any power granted
herein; provided, that rights of the Holders of Securities and the Trustee to
receive any cash, property or securities as the result of such proceedings
shall be subordinated to the extent and under the circumstances provided in Article XII.

 

Section 5.4.                                   Trustee May File
Proofs of Claim.  In case of the
pendency of any Winding Up of the Company or any other receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to the Company (or any other
obligor upon the Securities), its property or its creditors, the Trustee
(irrespective of whether the principal of the Securities shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of
whether the Trustee shall have made any demand on the Company for the payment
of any overdue principal, premium, interest or Additional Amounts) shall be
entitled and empowered, by intervention in such proceeding or otherwise, to
take any and all actions authorized under the Trust Indenture Act in order to
have claims of the Holders and the Trustee allowed in any such proceeding.  In particular, the Trustee shall be
authorized to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same; and any custodian,
receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Holder to make
such payments to the Trustee and, in the event that the Trustee shall consent
to the making of such payments directly to the Holders, to pay to the trustee
any amount due it for the reasonable compensation, expenses, disbursements and
advances of the trustee, its agents and counsel, any other amounts due the
Trustee under Section 6.8.

 

No
provision of this Indenture shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding; provided, however,
that the Trustee may, on behalf of the Holders, vote for the election of a
trustee in bankruptcy or similar official and be a member of a creditors’ or
other similar committee.

 

Section 5.5.                                   Trustee May Enforce
Claims Without Possession of Securities. 
All rights of action and claims under this Indenture or the Securities
may be prosecuted and 

 

49

 

enforced by the Trustee, in its own name and as trustee of an express
trust, without the possession of any of the Securities or the production
thereof in any proceeding relating thereto.

 

Section 5.6.                                   Delay or Omission
Not Waiver.  No delay or omission by
the Trustee or any Holder of any Securities to exercise any right or remedy
accruing upon an Event of Default or a Default shall impair any such right or
remedy or constitute a waiver of or acquiescence in any such Event of Default.

 

Section 5.7.                                   Waiver of Past
Defaults.  The Holders of at least a
majority in aggregate principal amount of Outstanding Securities of any series
by notice to the Trustee may waive on behalf of the Holders of all Securities
of such series a past Default or Event of Default with respect to that series
and its consequences except a Default or Event of Default (i) in
the payment of the principal of, or premium, if any, or interest on any
Security of such series or any coupon appertaining thereto or (ii) in
respect of a covenant or provision hereof which pursuant to Section 8.2
cannot be amended or modified without the consent of the Holder of each
Outstanding Security of such series adversely affected.  Upon any such waiver, such Default or Event
of Default shall be deemed to have been cured, for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Default
or Event of Default or impair any right consequent thereon.  In case of any such waiver, the Company, the
Trustee and the Holders shall be restored to their former positions and rights
hereunder and under the Securities of such series, respectively.

 

Section 5.8.                                   Control by
Majority.  The Holders of at least a
majority in aggregate principal amount of the Outstanding Securities of each
series affected (with each such series voting as a class) shall have the right
to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee or exercising any trust or power conferred on
it with respect to Securities of that series; provided, however, that (i) the
Trustee may refuse to follow any direction that conflicts with law or this
Indenture, (ii) the Trustee may refuse to follow any direction that
is unduly prejudicial to the rights of the Holders of Securities of such series
not consenting, or that would in the good faith judgment of the Trustee have a
substantial likelihood of involving the Trustee in personal liability and (iii) the
Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

 

Section 5.9.                                   Limitation on
Suits by Holders.  No Holder of any
Security of any series or any coupons appertaining thereto shall have any right
to institute any proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:

 

(1)                                  the
Holder has previously given written notice to the Trustee of a continuing Event
of Default or Default with respect to the Securities of that series;

 

50

 

(2)                                  the
Holders of at least 25% in aggregate principal amount of the Outstanding
Securities of that series have made a written request to the Trustee to
institute proceedings in respect of such Event of Default or Default in its own
name as Trustee hereunder;

 

(3)                                  such
Holder or Holders have offered to the Trustee indemnity satisfactory to the Trustee
against any loss, liability or expense to be, or which may be, incurred by the
Trustee in pursuing the remedy;

 

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

 

(5)                                  during
such 60 day period, the Holders of at least a majority in aggregate principal
amount of the Outstanding Securities of that series have not given to the
Trustee a direction inconsistent with such written request.

 

No one
or more Holders shall have any right in any manner whatever by virtue of, or by
availing of, any provision of this Indenture to affect, disturb or prejudice
the rights of any other of such Holders, or to obtain or to seek to obtain
priority or preference over any other of such Holders or to enforce any right
under this Indenture, except in the manner herein provided and for the equal
and ratable benefit of all of such Holders.

 

Section 5.10.                             Rights of Holders to
Receive Payment.  Notwithstanding any
other provision of this Indenture, but subject to Section 9.2 and Article XII,
the right of any Holder of a Security or coupon to receive payment of principal
of, and premium, if any, and (subject to Sections 3.5 and 3.7) interest on the
Security, on or after the respective due dates expressed in the Security (or,
in case of redemption, on the redemption dates), and the right of any Holder of
a coupon to receive payment of interest due as provided in such coupon, or to
bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder.

 

Section 5.11.                             Application of Money
Collected.  If the Trustee collects
any money pursuant to this Article, it shall, subject to the provisions of Article XII,
pay out the money in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of principal,
premium, if any, or interest, upon presentation of the Securities and the
notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

 

First:  to the Trustee for amounts due under Section 6.8;

 

Second:  to Holders of Securities and coupons in
respect of which or for the benefit of which such money has been collected for
amounts due and unpaid on such Securities for principal, premium, if any, and
interest, ratably, without 

 

51

 

preference or priority of any kind, according to the
amounts due and payable on such Securities for principal, premium, if any, and
interest, respectively; and

 

Third:  to the Company.

 

The Trustee may fix a record date and payment date for
any payment to Holders pursuant to this Section 5.11.  At least 15 days before such record date, the
Trustee shall mail to each Holder and the Company a notice that states the
record date, the payment date and the amount to be paid.

 

Section 5.12.                             Restoration of Rights
and Remedies.  If the Trustee or any
Holder has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any
reason, or has been determined adversely to the Trustee or to such Holder, then
and in every such case, subject to any determination in such proceeding, the
Company, the Trustee and the Holders shall be restored severally and
respectively to their former positions hereunder and thereafter all rights and
remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.

 

Section 5.13.                             Rights and Remedies
Cumulative.  Except as otherwise
provided with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities in the last paragraph of Section 3.6, no right
or remedy herein conferred upon or reserved to the Trustee or the Holders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise.  The
assertion or employment of any right or remedy hereunder, or otherwise, shall
not prevent the concurrent assertion or employment of any other appropriate
right or remedy.

 

Section 5.14.                             Waiver of Stay,
Extension or Usury Laws.  The Company
covenants (to the extent that it may lawfully do so) that it will not at any
time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay or extension law or any usury or other
similar law wherever enacted, now or at any time hereafter in force, that would
prohibit or forgive the Company from paying all or any portion of the principal
of or premium, if any, or interest on the Securities contemplated herein or in
the Securities or that may affect the covenants or the performance of this
Indenture; and the Company (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that
it will not hinder, delay or impede the execution of any power herein granted
to the Trustee, but will suffer and permit the execution of every such power as
though no such law had been enacted.

 

Section 5.15.                             Waiver of Sovereign
Immunity.  To the extent that the
Company or any properties, assets or revenues of the Company may have or may
hereafter become 

 

52

 

entitled to, or have attributed to it, any right of immunity, on the
grounds of sovereignty or otherwise, from any legal action, suit or proceeding,
from the giving of any relief in any thereof, from setoff or counterclaim, from
the jurisdiction of any court, from service of process, from attachment upon or
prior to judgment, from attachment in aid of execution or judgment, or from
execution of judgment, or other legal process or proceeding for the giving of
any relief or for the enforcement of any judgment, in any jurisdiction in which
proceedings may at any time be commenced, with respect to its obligations,
liabilities or any other matter under or arising out of or in connection with
any Security or any series of this Indenture, the Company, to the extent
permitted by applicable law, hereby irrevocably and unconditionally waives, and
agrees not to plead or claim, any such immunity and consent to such relief and
enforcement, provided, however, that nothing herein shall affect the
applicability of:

 

(1)                                  Section 13A
of the Banking Act 1959 of the Commonwealth of Australia, which provides that
in the event of a bank such as the Company becoming unable to meet its
obligations or suspending payment thereof, the assets of such bank in
Commonwealth of Australia shall be available to meet its deposit liabilities in
Commonwealth of Australia in priority to all other liabilities of such bank;

 

(2)                                  Section 23
of the Westpac Banking Corporation Act 1982 of New Zealand, which provides that
the assets of the Company in New Zealand would, in the event of the Company
being unable to meet its obligations or suspending payment, be available to
meet the company’s deposit liabilities in New Zealand in priority to all other
liabilities of the Company;

 

(3)                                  Section 86
of the Reserve Bank Act 1959 of the Commonwealth of Australia, which provides,
in a Winding Up of a bank, that debts due to the Reserve Bank of Australia by a
bank such as the Company shall, subject to Section 13A of the Banking Act
1959 of the Commonwealth of Australia, have priority over all other debts of
such bank other than debts due to the Commonwealth of Australia; and

 

(4)                                  Section 16
of the Banking Act 1959 of the Commonwealth of Australia, which provides, in a
Winding Up of a bank such as the Company, that, subject to Section 13A of
the Banking Act 1959 to the Commonwealth of Australia, debts due to the
Australian Prudential Regulation Authority have priority over all other
unsecured debts of the bank.

 

53

 

ARTICLE VI

 

THE TRUSTEE

 

Section 6.1.                                   Rights, Duties
and Responsibilities of Trustee. 
Subject to the provisions of the Trust Indenture Act:

 

(a)                                  In
the absence of bad faith on its part, the Trustee may conclusively rely and
shall be protected in acting or refraining from acting upon any document
believed by it to be genuine and to have been signed or presented by the proper
party or parties.  The Trustee need not
investigate any fact or matter stated in the document.

 

(b)                                 Any
request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order (other than delivery of any
Security, together with any coupons appertaining thereto, to the Trustee for
authentication and delivery pursuant to Section 3.3, which shall be
sufficiently evidenced as provided therein) and any resolution of the Board of
Directors may be sufficiently evidenced by a Board Resolution.

 

(c)                                  Before
the Trustee acts or refrains from acting, it may consult with counsel and/or
require an Officers’ Certificate.  The
Trustee shall not be liable for any action it takes or omits to take in good
faith in reliance on a Board Resolution, the advice of counsel acceptable to
the Company and the Trustee, a certificate of an Officer or Officers delivered
pursuant to Section 1.2, an Officers’ Certificate or an Opinion of
Counsel.

 

(d)                                 The
Trustee may act through agents or attorneys and shall not be responsible for
the misconduct or negligence of any agent or attorney appointed with due care.

 

(e)                                  The
Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its discretion or rights or
powers.

 

(f)                                    The
Trustee may not be relieved from liability for its own negligent action, its
own negligent failure to act or its own willful misconduct, except that:

 

(i)                                     this
clause (f) does not limit the effect of Section 6.1(c);

 

(ii)                                  the
Trustee shall not be liable for any error of judgment made in good faith by an
Officer unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts; and

 

54

 

(iii)                               the
Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 5.8.

 

(g)                                 The
Trustee shall not be required to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

 

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

 

Notwithstanding anything contained herein to the
contrary, in case an Event of Default or a Default with respect to the
Securities of any series has occurred and is continuing, the Trustee shall
exercise, with respect to Securities of such series, such of the rights and
powers vested in it by this Indenture, and shall use the same degree of care
and skill in their exercise, as a prudent individual would exercise or use
under the circumstances in the conduct of his or her own affairs.

 

Section 6.2.                                   Trustee May Hold
Securities.  The Trustee, any Paying
Agent, any Registrar or any other agent of the Company, in its individual or
any other capacity, may become the owner or pledgee of Securities and coupons
and, subject to Sections 310(b) and 311 of the Trust Indenture Act, may
otherwise deal with the Company, an Affiliate or Subsidiary with the same
rights it would have if it were not Trustee, Paying Agent, Registrar or such
other agent.

 

Section 6.3.                                   Money Held in
Trust.  Money held by the Trustee in
trust hereunder need not be segregated from other funds except to the extent
required by law.  The Trustee shall be
under no liability for interest on any money received by it hereunder except as
otherwise agreed with the Company.

 

Section 6.4.                                   Trustee’s
Disclaimer.  The recitals contained
herein and in the Securities, except the Trustee’s certificate of
authentication, shall be taken as the statements of the Company, and the
Trustee assumes no responsibility for their correctness.  The Trustee makes no representation as to the
validity or adequacy of this Indenture or the Securities or any coupon, except that
the Trustee represents and warrants 

 

55

 

that it is duly authorized to execute and deliver this Indenture,
authenticate the Securities and perform its obligations hereunder and
thereunder; that the statements made by it in a Statement of Eligibility and
Qualification on Form T-1 supplied or to be supplied to the Company in
connection with the registration of any Securities are and will be true and
accurate subject to the qualifications set forth therein; and that such
Statement complies and will comply in all material respects with the
requirements of the Trust Indenture Act and the Securities Act.  The Trustee shall not be accountable for the
Company’s use of the proceeds from the Securities or for monies paid over to
the Company pursuant to the Indenture.

 

Section 6.5.                                   Notice of
Defaults.  If a default occurs and is
continuing with respect to the Securities of any series and if it is known to
the Trustee, the Trustee shall, within 90 days after it occurs, transmit, in
the manner and to the extent provided in Section 313(c) of the Trust
Indenture Act, notice of all such uncured events that are known to it;
provided, however, that, except in the case of a Default in payment on the
Securities of any series, the Trustee may withhold the notice if and so long as
a Responsible Officer in good faith determines that withholding such notice is
in the interests of Holders of Securities of that series; provided, further,
that in the case of any default or breach of the character specified in Section 5.1(b)(4) with
respect to the Securities and coupons of such series, no such notice to Holders
shall be given until at least 60 days after the occurrence thereof.  For the purpose of this Section only,
the term “default” means any event which is, or after notice or lapse of time
or both would become, a Default with respect to the Securities of such series.

 

Section 6.6.                                   Reports by
Trustee to Holders.  Within 60 days
after each May 15 of each year commencing with the first May 15 after
the first issuance of Securities pursuant to this Indenture, the Trustee shall
transmit by mail to all Holders of Securities as provided in Section 313(c) of
the Trust Indenture Act a brief report dated as of such May 15 if required
by and in compliance with Section 313(a) of the Trust Indenture
Act.  A copy of each report shall, at the
time of such transmission to Holders, be filed by the Trustee with each stock
exchange, if any, upon which the Securities are listed, with the Commission and
with the Company.  The Company will
promptly notify the Trustee when the Securities are listed on any stock
exchange and of any delisting thereof.

 

Section 6.7.                                   Security Holder
Lists.  The Trustee shall preserve in
as current a form as is reasonably practicable the most recent list available
to it of the names and addresses of Holders of Securities of each series.  If the Trustee is not the Registrar, the
Company shall furnish to the Trustee within 14 days after each Regular Record
Date, and at such other times as the Trustee may request in writing, within 5
Business Days of such request, a list, in such form and as of such date as the
Trustee may reasonably require, containing all the information in the
possession or control of the Registrar, the Company or any of its Paying Agents
other than the Trustee as to the names and addresses of Holders of Securities
of each such series.  If there are Bearer
Securities of any series 

 

56

 

Outstanding, even if the Trustee is the Registrar, the Company shall
furnish to the Trustee such a list containing such information with respect to
Holders of such Bearer Securities only.

 

Section 6.8.                                   Compensation and
Indemnity.  (a)  The Company
shall pay to the Trustee from time to time such compensation for its services
as the Company and the Trustee may agree in writing from time to time.  The Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust.  The Company shall reimburse the Trustee upon
request for all reasonable expenses, disbursements and advances incurred by it
in connection with the performance of its duties under this Indenture, except
any such expense, disbursement or advance as may be attributable to its
negligence or bad faith.  Such expenses
shall include the reasonable compensation and expenses of the Trustee’s agents
and counsel.

 

(b)                                 The
Company shall indemnify the Trustee for, and hold it harmless against, any and
all loss, liability, damage, claim or expense (including taxes other than taxes
based upon, measured by or determined by the income of the Trustee), including
the costs and expenses of defending itself against any third-party claim,
incurred by it arising out of or in connection with its acceptance or
administration of the trust or trusts hereunder (collectively, “Claims”).  The Trustee shall notify the Company promptly
of any Claim for which it may seek indemnity. 
The Company shall defend the Claim and the Trustee shall cooperate in
the defense.  The Trustee may have
separate counsel and the Company shall pay the reasonable fees and expenses of
such counsel.  The Company need not pay
for any settlement made without its consent; provided that such consent shall
not be unreasonably withheld.

 

(c)                                  The
Company need not reimburse any expense, disbursement or advance or indemnify
against any Claim incurred by the Trustee through negligence or bad faith.

 

(d)                                 To
secure the payment obligations of the Company pursuant to this Section, the
Trustee shall have a lien prior to the Securities of any series on all money or
property held or collected by the Trustee, except that held in trust to pay
principal, premium, if any, and interest on particular Securities.

 

(e)                                  When
the Trustee incurs expenses or renders services in connection with an Event of
Default specified in Section 5.1(a)(1), 5.1(a)(2) or Section 5.1(b)(1),
the expenses (including the reasonable charges and expenses of its counsel) and
the compensation for the services are intended to constitute expenses of
administration under any applicable federal or state bankruptcy, insolvency or
other similar law.

 

(f)                                    The
provisions of this Section shall survive the termination of this
Indenture.

 

57

 

Section 6.9.                                   Replacement of
Trustee.  (a)  The resignation
or removal of the Trustee and the appointment of a successor Trustee shall
become effective only upon the successor Trustee’s acceptance of appointment as
provided in Section 6.10.

 

(b)                                 The
Trustee may resign at any time with respect to the Securities of any series by
giving written notice thereof to the Company. 
If the instrument of acceptance by a successor Trustee required by Section 6.10
shall not have been delivered to the Trustee within 30 days after the giving of
such notice of resignation, the resigning Trustee may petition, at the expense
of the Company, any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.

 

(c)                                  The
Holders of a majority in aggregate principal amount of the Outstanding
Securities of any series may remove the Trustee with respect to that series by
so notifying the Trustee and the Company and may appoint a successor Trustee
for such series with the Company’s consent.

 

If an
instrument of acceptance by a successor Trustee required by Section 6.10
shall not have been delivered to the Trustee within 30 days after the giving of
such notice of removal, the Trustee being removed may petition, at the expense
of the Company, any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.

 

(d)                                 If
at any time:

 

(1)                                  the
Trustee fails to comply with Section 310(b) of the Trust Indenture
Act after written request therefor by the Company or by any Holder who has been
a bona fide Holder of a Security for at least six months, or

 

(2)                                  the
Trustee shall cease to be eligible under Section 6.11 hereof or Section 310(a) of
the Trust Indenture Act and shall fail to resign after written request therefor
by the Company or by any Holder of a Security who has been a bona fide Holder
of a Security for at least six months; or

 

(3)                                  the
Trustee becomes incapable of acting, is adjudged a bankrupt or an insolvent or
a receiver or public officer takes charge of the Trustee or its property or
affairs for the purpose of rehabilitation, conservation or liquidation,

 

then, in any such case, (i) the Company
may remove the Trustee with respect to all Securities or (ii) subject
to Section 315(e) of the Trust Indenture Act, any Holder who has been
a bona fide Holder of a Security for at least six months may, on behalf of
himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee with respect to all Securities and
the appointment of a successor Trustee or Trustees.

 

58

 

(e)                                  If
the Trustee resigns or is removed or becomes incapable of acting or if a
vacancy exists in the office of Trustee for any reason, with respect to
Securities of one or more series, the Company shall promptly appoint a
successor Trustee with respect to the Securities of that or those series (it
being understood that any such successor Trustee may be appointed with respect
to the Securities of one or more or all of such series and that at any time
there shall be only one Trustee with respect to the Securities of any
particular series) and shall comply with the applicable requirements of Section 6.10.  If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee
with respect to the Securities of any series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such
series delivered to the Company and the retiring Trustee, the successor Trustee
so appointed shall, forthwith upon its acceptance of such appointment in
accordance with the applicable requirements of Section 6.10, become the
successor Trustee with respect to the Securities of such series and to that
extent supersede the successor Trustee appointed by the Company.  If no successor Trustee with respect to the
Securities of any series shall have been so appointed by the Company or the
Holders and accepted appointment in the manner required by Section 6.10,
then, subject to Section 315(e) of the Trust Indenture Act, any
Holder who has been a bona fide Holder of a Security of such series for at
least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.

 

Section 6.10.                             Acceptance of
Appointment by Successor.  (a) 
In case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee shall execute, acknowledge and deliver
to the Company and to the retiring Trustee an instrument accepting such
appointment.  Thereupon, the resignation
or removal of the retiring Trustee shall become effective, and the successor
Trustee, without further act, deed or conveyance, shall become vested with all
the rights, powers and duties of the retiring Trustee; but, on the request of
the Company or the successor Trustee, such retiring Trustee shall, upon payment
of its charges, execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder, subject nevertheless to its
lien, if any, provided for in Section 6.8 of this Indenture.

 

(b)                                 In
case of the appointment hereunder of a successor Trustee with respect to the
Securities of one or more (but not all) series, the Company, the retiring
Trustee and such successor Trustee shall execute and deliver an indenture
supplemental hereto wherein such successor Trustee shall accept such
appointment and which (i) shall contain such provisions as shall be
necessary or desirable to transfer and confirm to, and to vest in, such
successor Trustee all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, (ii) if the retiring
Trustee is not retiring with respect to all 

 

59

 

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

 

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

 

(d)                                 No
successor Trustee shall accept its appointment unless at the time of such
acceptance such successor Trustee shall be qualified and eligible under the Trust
Indenture Act.

 

(e)                                  The
Company shall give notice of each resignation and each removal of the Trustee
with respect to the Securities of any series and each appointment of a
successor Trustee with respect to the Securities of any series in the manner provided
for notices to the Holders of Securities in Section 1.6.  Each notice shall include the name of the
successor Trustee with respect to the Securities of such series and the address
of its Corporate Trust Office.

 

Section 6.11.                             Eligibility; Disqualification.  There shall at all times be a Trustee
hereunder with respect to each series of Securities (which need not be the same
Trustee for all series).  Each Trustee
hereunder shall be eligible to act as trustee under Section 310(a)(1) of
the Trust Indenture Act and shall have a combined capital and surplus of at
least $50,000,000.  If such corporation
publishes reports of condition at least annually, pursuant to law or the
requirements of Federal, State, Territorial or District of Columbia supervising
or examining authority, then for the purposes of this Section, the combined 

 

60

 

capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published.  If at any time
the Trustee shall cease to be eligible in accordance with the provisions of
this Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.

 

If the
Trustee has or shall acquire a conflicting interest within the meaning of the
Trust Indenture Act, the Trustee shall either eliminate such interest or
resign, to the extent and in the manner provided by, and subject to the
provisions of, the Trust Indenture Act and this Indenture.  To the extent permitted by the Trust
Indenture Act, any Trustee hereunder shall not be deemed to have a conflicting
interest by virtue of being the trustee under (i) the Senior
Indenture, dated as of July 1, 1999, between the Company and The Chase
Manhattan Bank (now renamed JPMorgan Chase Bank), as trustee, (ii) the
Junior Subordinated Indenture, dated as of July 1, 1999 (the “Junior
Subordinated Indenture”), between the Company acting through its branch
located in Wellington, New Zealand and The Chase Manhattan Bank (now renamed
JPMorgan Chase Bank), as trustee, (iii) the Amended and Restated
Declaration of Trust of Westpac Capital Trust I, dated as of July 1, 1999,
among Westpac Capital Holdings Inc., as sponsor, Lewis E. Love, Jr., Manuela
Adl and Robert Goldwasser, as the regular trustees, The Chase Manhattan Bank
(now renamed JPMorgan Chase Bank), as the property trustee, Chase Manhattan
Bank Delaware (now renamed Chase Manhattan Bank USA, National Association), as
the Delaware trustee and the holders from time to time of the securities
representing undivided beneficial ownership interests in the assets of Westpac
Capital Trust I, (iv) the Amended and Restated Declaration of Trust
of Tavarua Funding Trust I, dated as of July 1, 1999, among Westpac
Funding Holdings Pty Ltd., as sponsor, Lewis E. Love, Jr., Manuela Adl and
Robert Goldwasser, as the regular trustees, The Chase Manhattan Bank (now
renamed JPMorgan Chase Bank), as the property trustee, Chase Manhattan Bank
Delaware (now renamed Chase Manhattan Bank USA, National Association), as the
Delaware trustee and the holders from time to time of the securities
representing undivided beneficial ownership interests in the assets of Tavarua
Funding Trust I, (v) the Capital Trust Preferred Securities
Guarantee, dated as of July 1, 1999, between the Company, as guarantor,
and The Chase Manhattan Bank (now renamed JPMorgan Chase Bank), as capital
trust preferred guarantee trustee, (vi) the Funding Trust Preferred
Securities Guarantee, dated as of July 1, 1999, between the Company, as
guarantor, and The Chase Manhattan Bank (now renamed JPMorgan Chase Bank), as
funding trust preferred guarantee trustee and (vii) the 8% New
Zealand-dollar denominated junior subordinated convertible debentures, issued
by the Company acting through its branch located in Wellington, New Zealand
pursuant to the Junior Subordinated Indenture.

 

Section 6.12.                             Merger, Conversion,
Consolidation or Succession to Business. 
Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation succeeding to all or substantially all the corporate trust
business of the Trustee, shall be the successor of 

 

61

 

the Trustee hereunder, provided such corporation shall be otherwise
qualified and eligible under this Article, without the execution or filing of
any paper or any further act on the part of any of the parties hereto.  In case any Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Securities so authenticated with the same
effect as if such successor Trustee had itself authenticated such Securities.

 

Section 6.13.                             Appointment of
Authenticating Agent.  The Trustee
shall initially be the Authenticating Agent. 
The Trustee may appoint an Authenticating Agent or Agents with respect
to one or more series of Securities which shall be authorized to act on behalf
of the Trustee to authenticate Securities of such series issued upon original
issue exchange, registration of transfer or partial redemption thereof, and
Securities so authenticated shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder.  Any such appointment shall
be evidenced by an instrument in writing signed by a Responsible Officer of the
Trustee, a copy of which instrument shall be promptly furnished to the
Company.  Wherever reference is made in
this Indenture to the authentication and delivery of Securities by the Trustee
or the Trustee’s certificate of authentication, such reference shall be deemed
to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. 
Each Authenticating Agent shall be acceptable to the Company and, except
as may otherwise be provided pursuant to Section 3.1, shall at all times
be a bank or trust company or corporation organized and doing business and in
good standing under the laws of the United States of America or of any State or
the District of Columbia, authorized under such laws to act as Authenticating
Agent, having a combined capital and surplus of not less than $50,000,000 and
subject to supervision or examination by Federal or State authorities.  If such Authenticating Agent publishes
reports of condition at least annually, pursuant to law or the requirements of
the aforesaid supervising or examining authority, then for the purposes of this
Section, the combined capital and surplus of such Authenticating Agent shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published.  In
case at any time an Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, such Authenticating Agent shall
resign immediately in the manner and with the effect specified in this Section.

 

Any
corporation into which an Authenticating Agent may be merged or converted or
with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which such Authenticating Agent shall be
a party, or any corporation succeeding to the corporate agency or corporate
trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible
under this Section, without the execution or filing of any paper or further act
on the part of the Trustee or the Authenticating Agent.

 

62

 

An
Authenticating Agent for any series of Securities may at any time resign by
giving written notice of resignation to the Trustee for such series and to the
Company. The Trustee for any series of Securities may at any time terminate the
agency of an Authenticating Agent by giving written notice of termination to
such Authenticating Agent and to the Company. 
Upon receiving such a notice of resignation or upon such a termination,
or in case at any time such Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, the Trustee for such series may
appoint a successor Authenticating Agent which shall be acceptable to the
Company and shall give notice of such appointment to all Holders of Securities
of the series with respect to which such Authenticating Agent will serve in the
manner set forth in Section 1.6. 
Any successor Authenticating Agent upon acceptance of its appointment
hereunder shall become vested with all the rights, powers and duties of its
predecessor hereunder, with like effect as if originally named as an
Authenticating Agent herein.  No
successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

 

The
Company agrees to pay to each Authenticating Agent from time to time such
reasonable compensation as the Company and such Authenticating Agent agree in
writing from time to time including reimbursement of its reasonable expenses
for its services under this Section.

 

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

 

This
is one of the Securities of the series designated herein and issued under the
within-mentioned Indenture.

 

	
   

  	
  JPMorgan Chase Bank, as Trustee

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  as Authenticating Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  
				

 

Section 6.14.                             Preferential Collection
of Claims Against Company.  If and
when the Trustee shall be or become a creditor of the Company (or any other
obligor under the Securities), the Trustee shall be subject to the provisions
of the Trust Indenture Act regarding the collection of claims against the
Company (or any such other obligor).

 

63

 

ARTICLE VII

 

CONSOLIDATION, MERGER OR SALE BY THE COMPANY

 

Section 7.1.                                   Consolidation,
Merger or Sale of Assets Permitted. 
The Company may not merge or consolidate with or into any other Person
or sell, convey, transfer all or substantially all of its assets to any Person,
unless (i) (A) in the case of such merger or
consolidation, the Company is the surviving Person or (B) the Person
formed by such consolidation, into which the Company is merged, or the Person
which acquires by sale, conveyance or transfer, the assets of the Company
expressly assumes by supplemental indenture delivered to the Trustee all the
obligations of the Company under the Securities and any coupons appertaining
thereto and under this Indenture, (ii) immediately thereafter,
giving effect to such merger or consolidation, or such sale, conveyance or
transfer, no Default or Event of Default shall have occurred and be continuing
and (iii) the Company shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel each stating that such merger,
consolidation, sale, conveyance or transfer complies with this Article and
that all conditions precedent herein provided for relating to such transaction
have been complied with (which Opinion of Counsel may rely on such Officers’
Certificate with respect to compliance with the preceding clause (ii)).  In the event of the assumption by a successor
Person of the obligations of the Company as provided in clause (i)(B) of
the immediately preceding sentence, such successor Person shall succeed to and
be substituted for the Company hereunder and under the Securities and any
coupons appertaining thereto and all such obligations of the Company shall
terminate and, if such successor Person is organized under the laws of a
country other than the Commonwealth of Australia or a political subdivision of
a country other than the Commonwealth of Austrailia, references in Section 9.8(a) hereof
(except clause (5) thereof) to “Commonwealth of Australia” shall be
treated as references to both the Commonwealth of Australia and the country in
which such successor Person is organized or resident (or deemed resident for
tax purposes).

 

ARTICLE VIII

 

SUPPLEMENTAL INDENTURES

 

Section 8.1.                                   Supplemental
Indentures Without Consent of Holders. 
Without the consent of any Holders, the Company and the Trustee, at any
time and from time to time, may enter into indentures supplemental hereto, in
form reasonably satisfactory to the Trustee, for any of the following purposes:

 

(1)                                  to
evidence the succession of another Person to the Company and the assumption by
any such successor of the covenants and obligations of the Company herein and
in the Securities (with such changes herein and therein as 

 

64

 

may be necessary or advisable to reflect such Person’s
legal status, if such Person is not a corporation); or

 

(2)                                  to
add to the covenants of the Company for the benefit of the Holders of all or
any series of Securities (and if such covenants are to be for the benefit of
less than all series of Securities, stating that such covenants, for which a
grace period may be provided, are expressly being included solely for the
benefit of such series) or to surrender any right or power herein conferred
upon the Company or to comply with any requirement of the Commission in
connection with the qualification of this Indenture under the Trust Indenture
Act or otherwise; or

 

(3)                                  to
add any additional Defaults or Events of Default with respect to all or any
series of Securities; or

 

(4)                                  to
add to or change any of the provisions of this Indenture to such extent as
shall be necessary to facilitate the issuance of Bearer Securities (including,
without limitation, to provide that Bearer Securities may be registrable as to
principal only) or to facilitate or provide for the issuance of Securities in
global form in addition to or in place of Securities in certificated form; or

 

(5)                                  to
change or eliminate any of the provisions of this Indenture, provided that any
such change or elimination shall become effective only with respect to any
series of Securities which has not been issued as of the execution of such
supplemental indenture or when there is no Security Outstanding of any series
created prior to the execution of such supplemental indenture which is entitled
to the benefit of such provision; or

 

(6)                                  to
secure the Securities; or

 

(7)                                  to
establish the form or terms of Securities of any series as permitted by
Sections 2.1 and 3.1; or

 

(8)                                  to
provide for the delivery of indentures supplemental hereto or the Securities of
any series in or by means of any computerized, electronic or other medium,
including without limitation by computer diskette; or

 

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

 

65

 

(10)                            if
allowed without penalty under applicable laws and regulations, to permit
payment in the United States (including any of the states and the District of
Columbia), its territories, its possessions and other areas subject to its
jurisdiction of principal, premium, if any, or interest, if any, on Bearer Securities
or coupons, if any; or

 

(11)                            to
maintain qualification of this Indenture under the Trust Indenture Act; or

 

(12)                            to
correct or supplement any provision herein which may be inconsistent with any
other provision herein or to cure any ambiguity or omission or to correct any
mistake, provided such action shall not adversely affect the interests of the
Holders of Securities of any series; or

 

(13)                            to
modify the provisions of Article XII (except, with respect to any
Outstanding Securities of any series, to the extent prohibited by Section 8.2(5));
or

 

(14)                            to
make any other provisions with respect to matters or questions arising under
this Indenture, provided such action shall not adversely affect the interests
of the Holders of Securities of any series;

 

provided, however, that without the prior written
consent of the Australian Prudential Regulation Authority, a Supplemental
Indenture under this Section may not make any change to the Indenture or
any supplemental indenture that would affect the eligibility of any Outstanding
Securities of any series to continue to qualify as Lower Tier 2 capital.

 

Section 8.2.                                   With Consent of
Holders.  With the written consent of
the Holders of not less than a majority of the aggregate principal amount of
the Outstanding Securities of each series adversely affected by such
supplemental indenture (with the Securities of each series voting as a class),
the Company and the Trustee may enter into an indenture or indentures
supplemental hereto to add any provisions to or to change or eliminate any
provisions of this Indenture or of any other indenture supplemental hereto or
to modify the rights of the Holders of Securities of each such series;
provided, however, that without the prior written consent of the Australian
Prudential Regulation Authority, a Supplemental Indenture under this Section may
not make any change to the Indenture or any supplemental indenture that would
affect the eligibility of any Outstanding Securities of any series to continue
to qualify as Lower Tier 2 capital; and provided further, however, that without
the consent of the Holder of each Outstanding Security affected thereby, a
supplemental indenture under this Section may not:

 

(1)                                  change
the Stated Maturity of the principal of, or any installment of principal of or
interest on, any Security, or reduce the principal amount thereof 

 

66

 

or the rate of interest thereon or any premium payable
upon the redemption thereof, or reduce the amount of the principal of an
Original Issue Discount Security or Indexed Security that would be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.2,
or change the coin or currency in which any Securities or any premium or the
interest thereon is payable, or impair the right to institute suit for the
enforcement of any such payment on or after the Stated Maturity thereof (or, in
the case of redemption, on or after the Redemption Date);

 

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

 

(3)                                  change
any obligation of the Company to maintain an office or agency in the places and
for the purposes specified in Section 9.2;

 

(4)                                  except
to the extent provided in Section 8.1(9), make any change in Section 5.2,
5.7, 5.10 or this Section 8.2 except to increase any percentage or to
provide that certain other provisions of this Indenture cannot be modified or
waived except with the consent of the Holders of each Outstanding Security affected
thereby; or

 

(5)                                  modify
the provisions of Article XII of this Indenture with respect to the
subordination of Outstanding Securities of any series in a manner adverse to
the Holders thereof.

 

For
the purposes of this Section 8.2, if the Securities of any series are
issuable upon the exercise of warrants, any holder of an unexercised and
unexpired warrant with respect to such series shall not be deemed to be a
Holder of Outstanding Securities of such series in the amount issuable upon the
exercise of such warrants.

 

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

 

Immediately
prior to entering into a supplemental indenture amending such sections or
changing the Stated Maturity of the principal of the Securities of any series
pursuant to this Section 8.2, the Company shall deliver to the Trustee an
Officers’ 

 

67

 

Certificate stating that the Company is entitled to
effect such amendment or change and setting forth a statement of facts showing
that the conditions precedent to the right of the Company to do so have
occurred.

 

It is
not necessary under this Section 8.2 for the Holders to consent to the
particular form of any proposed supplemental indenture, but it is sufficient if
they consent to the substance thereof.

 

Section 8.3.                                   Compliance with
Trust Indenture Act.  Every amendment
to this Indenture or the Securities of one or more series shall be set forth in
a supplemental indenture that complies with the Trust Indenture Act as then in
effect.

 

Section 8.4.                                   Execution of
Supplemental Indentures.  In
executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modification thereby of the
trusts created by this Indenture, the Trustee shall be entitled to receive, and
shall be fully protected in relying upon, an Officers’ Certificate and an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. 
The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which adversely affects the Trustee’s own rights, duties
or immunities under this Indenture or otherwise.  The Trustee shall enter into any such
supplemental indenture if such supplemental indenture does not adversely affect
the Trustee’s own rights, duties or immunities under this Indenture or
otherwise.

 

Section 8.5.                                   Effect of
Supplemental Indentures.  Upon the
execution of any supplemental indenture under this Article, this Indenture
shall be modified in accordance therewith, and such supplemental indenture
shall form a part of this Indenture for all purposes; and every Holder of
Securities theretofore or thereafter authenticated and delivered hereunder and
of any coupon appertaining thereto shall be bound thereby; provided that if
such supplemental indenture makes any of the changes described in clauses (1) through
(5) of the first proviso to Section 8.2, such supplemental indenture
shall bind each Holder of a Security who has consented to it and every
subsequent Holder of such Security or any part thereof.

 

Section 8.6.                                   Reference in
Securities to Supplemental Indentures.  Securities, including any coupons, of any
series authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article may, and shall if required by the
Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. 
If the Company shall so determine, new Securities including any coupons
of any series so modified as to conform, in the opinion of the Trustee and the
Company, to any such supplemental indenture may be prepared and executed by the
Company and authenticated and delivered by the Trustee in exchange for
Outstanding Securities including any coupons of such series.

 

68

 

ARTICLE IX

 

COVENANTS

 

Section 9.1.                                   Payment of
Principal, Premium, if any, and Interest. 
The Company covenants and agrees for the benefit of the Holders of each
series of Securities that it will duly and punctually pay the principal of, and
premium, if any, and interest on the Securities of that series in accordance
with the terms of the Securities of such series, any coupons appertaining
thereto and this Indenture.  An
installment of principal, premium, if any, or interest shall be considered paid
on the date it is due if the Trustee or Paying Agent holds on that date money
designated for and sufficient to pay the installment.

 

Section 9.2.                                   Maintenance of
Office or Agency.  If Securities of a
series are issued as Registered Securities, the Company will maintain in each
Place of Payment for any series of Securities an office or agency where
Securities of that series may be presented or surrendered for payment, where
Securities of that series may be surrendered for registration of transfer or
exchange and where notices and demands to or upon the Company in respect of the
Securities of that series and this Indenture may be served.  If Securities of a series are issuable as
Bearer Securities, the Company will maintain, (i) subject to any
laws or regulations applicable thereto, an office or agency in a Place of
Payment for that series which is located outside the United States, where
Securities of that series and related coupons may be presented and surrendered
for payment; provided, however, that if the Securities of that series are
listed on The International Stock Exchange of the United Kingdom and the
Republic of Ireland Limited, the Luxembourg Stock Exchange or any other stock
exchange located outside the United States and such stock exchange shall so
require, the Company will maintain a Paying Agent for the Securities of that
series in London, Luxembourg or any other required city located outside the
United States, as the case may be, so long as the Securities of that series are
listed on such exchange and (ii) subject to any laws or regulations
applicable thereto, an office or agency in a Place of Payment for that series
which is located outside the United States where Securities of that series may
be surrendered for exchange and where notices and demands to or upon the
Company in respect of the Securities of that series and this Indenture may be
served.  The Company will give prompt
written notice to the Trustee of the location, and any change in the location,
of any such office or agency.  If at any
time the Company shall fail to maintain any such required office or agency or
shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust
Office of the Trustee, and the Company hereby appoints the Trustee as its agent
to receive all such presentations, surrenders, notices and demands.

 

Unless
otherwise specified as contemplated by Section 3.1, no payment of
principal, premium or interest on Bearer Securities shall be made at any office
or agency 

 

69

 

of the Company in the United States, by check mailed
to any address in the United States, by transfer to an account located in the
United States or upon presentation or surrender in the United States of a
Bearer Security or coupon for payment, even if the payment would be credited to
an account located outside the United States; provided, however, that, if the
Securities of a series are denominated and payable in Dollars, payment of
principal of and any premium or interest on any such Bearer Security shall be
made at an office of a Paying Agent of the Company in the Borough of Manhattan,
the City of New York, if (but only if) payment in Dollars of the full amount of
such principal, premium or interest, as the case may be, at all offices or
agencies outside the United States maintained for the purpose by the Company in
accordance with this Indenture is illegal or effectively precluded by exchange
controls or other similar restrictions.

 

Subject
to the preceding paragraphs, the Company may also from time to time designate
one or more other offices or agencies where the Securities (including any
coupons, if any) of one or more series may be presented or surrendered for any
or all such purposes and may from time to time rescind such designations;
provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency in each
Place of Payment for Securities (including any coupons, if any) of any series
for such purposes.  The Company will give
prompt written notice to the Trustee of any such designation or rescission and
of any change in the location of any such other office or agency.

 

Unless
otherwise specified as contemplated by Section 3.1, the Trustee shall
initially serve as Paying Agent.  The
Paying Agent may make reasonable rules not inconsistent herewith for the
performance of its functions.

 

Section 9.3.                                   Money for
Securities to Be Held in Trust; Unclaimed Money.  If the Company shall at any time act as its
own Paying Agent with respect to any series of Securities, it will, on or
before each due date of the principal of, or premium, if any, or interest on
any of the Securities of that series, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum sufficient to pay the principal,
premium, if any, or interest so becoming due until such sums shall be paid to
such Persons or otherwise disposed of as herein provided and will promptly
notify the Trustee in writing of its action or failure so to act.

 

If the
Company is not acting as its own Paying Agent, the Company will cause each
Paying Agent for any series of Securities other than the Trustee to execute and
deliver to the Trustee an instrument in which such Paying Agent shall agree
with the Trustee, subject to the provisions of this Section, that such Paying
Agent will:

 

(1)                                  hold
all sums held by it for the payment of the principal of, or premium, if any, or
interest on Securities of that series in trust for the benefit of 

 

70

 

the Persons entitled thereto until such sums shall be
paid to such Persons or otherwise disposed of as herein provided;

 

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

 

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

 

The
Company may at any time, for the purpose of obtaining the satisfaction and
discharge of this Indenture or for any other purpose, pay, or by Company Order
direct any Paying Agent to pay, to the Trustee all sums held in trust by the
Company or such Paying Agent, such sums to be held by the Trustee upon the same
trusts as those upon which such sums were held by the Company or such Paying
Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying
Agent shall be released from all further liability with respect to such
money.  If the Company acts as Paying
Agent, it shall segregate the money held by it as Paying Agent and hold it in a
separate trust fund.

 

Any
money deposited with the Trustee or any Paying Agent, or then held by the
Company, in trust for the payment of any principal, premium or interest or
other amounts on any Security of any series and remaining unclaimed for two
years after such principal, premium, if any, or interest or other amounts has
become due and payable shall be paid to the Company on Company Request, or (if
then held by the Company) shall be discharged from such trust; and the Holder
of such Security and coupon, if any, shall thereafter, as an unsecured general
creditor, look only to the Company for payment thereof, and all liability of
the Trustee or such Paying Agent with respect to such trust money, and all
liability of the Company as trustee thereof, shall thereupon cease; provided,
however, that the Trustee or such Paying Agent, before being required to make
any such repayment, may at the expense of the Company cause to be published
once, in a newspaper published in the English language, customarily published
on each Business Day and of general circulation in The City of New York, or
cause to be mailed to such Holder, notice that such money remains unclaimed and
that, after a date specified therein, which shall not be less than 30 days from
the date of such publication, any unclaimed balance of such money then remaining
will be repaid to the Company.

 

Section 9.4.                                   Corporate
Existence.  Subject to Article VII,
the Company will at all times do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence and its
rights and franchises; provided that nothing in this Section 9.4 shall
prevent the abandonment or termination of any right or franchise of the Company
if, in the opinion of the Company, such abandonment or termination is in the
best interests of the Company.

 

71

 

Section 9.5.                                   Insurance.  The Company covenants and agrees that it will
maintain, and cause each of its Subsidiaries to maintain, insurance with
responsible and reputable insurance companies or associations or through a
program of self-insurance in such amounts and covering such risks as are
consistent with sound business practice for corporations engaged in the same or
a similar business similarly situated.

 

Section 9.6.                                   Reports by the
Company.  The Company covenants:

 

(a)                                    to file with the Trustee,
within 30 days after the Company is required to file the same with the
Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the
Commission may from time to time by rules and regulations prescribe) which
the Company may be required to file with the Commission pursuant to Section 13
or Section 15(d) of the Securities Exchange Act of 1934, as amended;
or, if the Company is not required to file information, documents or reports
pursuant to either of such sections, then to file with the Trustee and the
Commission, in accordance with rules and regulations prescribed from time
to time by the Commission, such of the supplementary and periodic information,
documents and reports which may be required pursuant to Section 13 of the
Securities Exchange Act of 1934, as amended, in respect of a security listed
and registered on a national securities exchange as may be prescribed from time
to time in such rules and regulations;

 

(b)                                   to file with the Trustee and
the Commission, in accordance with the rules and regulations prescribed
from time to time by the Commission, such additional information, documents and
reports with respect to compliance by the Company with the conditions and
covenants provided for in this Indenture, as may be required from time to time
by such rules and regulations; and

 

(c)                                    to transmit to all Holders of
Securities within 30 days after the filing thereof with the Trustee, in the
manner and to the extent provided in Section 313(c) of the Trust
Indenture Act, such summaries of any information, documents and reports
required to be filed by the Company pursuant to subsections (a) and (b) of
this Section 9.6, as may be required by rules and regulations
prescribed from time to time by the Commission.

 

Section 9.7.                                   Annual Review
Certificate.  The Company covenants
and agrees to deliver to the Trustee, within 120 days after the end of each
fiscal year of the Company, a brief certificate from the principal executive
officer, principal financial officer or principal accounting officer as to his
or her knowledge of the Company’s compliance with all conditions and covenants
under this Indenture.  For purposes of
this Section 9.7, such compliance shall be determined without regard to
any period of grace or requirement of notice provided under this Indenture.

 

72

 

Section 9.8.                                   Payment of
Additional Amounts.  (a)  All
payments in respect of the Securities shall be made without withholding or
deduction for, or on account of, any taxes, assessments or other governmental
charges (“relevant tax”) imposed or levied by or on behalf of the Commonwealth
of Australia or any political subdivision or authority in or of the
Commonwealth of Australia, unless the withholding or deduction is required by
law.  In that event, the Company will pay
such additional amounts (“Additional Amounts”) as may be necessary so that the
net amount received by the Holder of the Securities, after such withholding or
deduction, will equal the amount that the Holder would have received in respect
of the Securities without such withholding or deduction.  However, the Company will pay no Additional
Amounts:

 

(1)                                  to
the extent that the relevant tax is imposed or levied by virtue of the Holder,
or the beneficial owner, of the Securities having some connection (whether
present, past or future) with the Commonwealth of Australia or any political
subdivision or authority of or in the Commonwealth of Australia, other than
being a Holder, or the beneficial owner, of the Securities;

 

(2)                                  to
the extent that the relevant tax is imposed or levied by virtue of the Holder,
or the beneficial owner, of the Securities not complying with any statutory
requirements or not having made a declaration of non-residence in, or other
lack of connection with, the Commonwealth of Australia or any political
subdivision or authority of or in the Commonwealth of Australia or any similar
claim for exemption, if the Company or its agent has provided the Holder, or
the beneficial owner, of the Securities with at least 60 days’ prior written
notice of an opportunity to comply with such statutory requirements or make a
declaration or claim;

 

(3)                                  to
the extent that the relevant tax is imposed or levied by virtue of the Holder,
or the beneficial owner, of the Securities having presented for payment more
than 30 days after the date on which the payment in respect of the Securities
first became due and payable, except to the extent that the Holder, or the
beneficial owner, of the Securities would have been entitled to such Additional
Amounts if the Holder or beneficial owner had presented the Securities for
payment on any day within such 30-day period;

 

(4)                                  to
the extent that the relevant tax is imposed or levied by virtue of the Holder,
or the beneficial owner, of the Securities having presented the Securities for
payment in the Commonwealth of Australia, unless the Securities could not have
been presented for payment elsewhere; or

 

(5)                                  to
the extent that the relevant tax is imposed or levied by virtue of the Holder,
or the beneficial owner, of the Securities being an associate of the 

 

73

 

Company for purposes of Section 128F(6) of
the Income Tax Assessment Act 1936 of the Commonwealth of Australia.

 

In addition, the Company will pay no Additional
Amounts to any Holder who is a fiduciary or partnership or other than the sole
beneficial owner of the payment in respect of the Securities to the extent such
payment would, under the laws of the Commonwealth of  Australia or any political subdivision or
authority of or in the Commonwealth of Australia, be treated as being derived
or received for tax purposes by a beneficiary or settlor with respect to such
fiduciary or a member of such partnership or a beneficial owner who would not
have been entitled to Additional Amounts had it been the Holder of the Securities.

 

(b)                                 Any
reference in this Indenture or any indenture supplemental hereto to principal
or interest shall be deemed to also refer to any Additional Amount that may be
payable under this Section 9.8.

 

Section 9.9.                                   Payment of Stamp
Taxes.  The Company will pay or
discharge or cause to be paid or discharged all stamp and similar taxes, if
any, that may be imposed by the Commonwealth of Australia or any political
subdivision or taxing authority thereof or therein with respect to the
execution or delivery of this Indenture or the Securities.

 

Section 9.10.                             Indemnification of
Judgment Currency.  The Company shall
indemnify the Trustee and any Holder of a Security against any loss incurred by
the Trustee or such Holder, as the case may be, as a result of any judgment or
order being given or made for any amount due under this Indenture or such
Security and such judgment or order being expressed and paid in a currency (the
“Judgment Currency”) other than the currency in which such Security is
denominated or payable, as the case may be (the “Specified Currency”),
and as a result of any variation as between (i) the rate of
exchange at which the Specified Currency amount is converted into the Judgment
Currency for the purpose of such judgment or order and (ii) the
spot rate of exchange in The City of New York at which the Trustee or such
Holder, as the case may be, on the date of payment of such judgment or order is
able to purchase the Specified Currency with the amount of the Judgment
Currency actually received by the Trustee or such Holder.  The foregoing indemnity shall constitute a
separate and independent obligation of the Company and shall continue in full
force and effect notwithstanding any such judgment or order as aforesaid.  The term “spot rate of exchange” shall
include any premiums and costs of exchange payable in connection with the
purchase of, or conversion into, the Specified Currency.

 

Section 9.11.                             Waiver of Certain
Covenants.  Company may omit in any
particular instance to comply with any term, provision or condition set forth
in Section 9.4 and 9.9 with respect to the Securities of any series if
before the time for such compliance the Holders of at least a majority in
principal amount of the Outstanding 

 

74

 

Securities of such series shall, by Act of such Holders, either waive
such compliance in such instance or generally waive compliance with such term,
provision or condition, but no such waiver shall extend to or affect such term,
provision or condition except to the extent so expressly waive, and, until such
waiver shall become effective, the obligations of the Company and the duties of
the Trustee in respect of any such term, provision or condition shall remain in
full force and effect.

 

ARTICLE X

 

REDEMPTION

 

Section 10.1.                             Applicability of
Article.  (a)  Securities
(including coupons, if any) of or within any series that are redeemable in
whole or in part before their Stated Maturity shall be redeemable in accordance
with their terms and (except as otherwise specified as contemplated by Section 3.1
for Securities of any series) in accordance with this Article.

 

(b)                                 No
Securities of any series will be redeemed before their Stated Maturity without
the prior written approval of the Australian Prudential Regulation Authority.

 

Section 10.2.                             Election to Redeem;
Notice to Trustee.  The election of
the Company to redeem any Securities, including coupons, if any, shall be
evidenced by or pursuant to a Board Resolution or a Company Order.  In the case of any redemption at the election
of the Company of less than all the Securities or coupons, if any, of any
series having the same terms, the Company shall, at least 45 but not more than
60 days prior to the Redemption Date fixed by the Company (unless a shorter
notice shall be satisfactory to the Trustee), notify the Trustee of such
Redemption Date, of the principal amount of Securities of such series to be
redeemed and, if applicable, of the tenor of the Securities to be redeemed.  In the case of any redemption of Securities (i) prior
to the expiration of any restriction on such redemption provided in the terms
of such Securities or elsewhere in this Indenture or (ii) pursuant
to an election of the Company that is subject to a condition specified in the
terms of such Securities, the Company shall furnish the Trustee with an
Officers’ Certificate evidencing compliance with such restriction or condition.

 

Section 10.3.                             Selection of Securities
to Be Redeemed.  Unless otherwise
specified as contemplated by Section 3.1, if less than all the Securities
(including coupons, if any) of a series with the same terms are to be redeemed,
the Trustee, not more than 60 but at least 45 days prior to the Redemption
Date, shall select the Securities of the series to be redeemed in such manner
as the Trustee shall deem fair and appropriate. 
The Trustee shall make the selection from Securities of the series that
are Outstanding and that have not previously been called for redemption and may
provide for the selection for redemption of portions (equal to the minimum
authorized denomination for Securities, including coupons, if any, of that
series or any integral multiple thereof) of the principal 

 

75

 

amount of Securities, including coupons, if any, of such series of a
denomination larger than the minimum authorized denomination for Securities of
that series.  The Trustee shall promptly
notify the Company in writing of the Securities selected by the Trustee for
redemption and, in the case of any Securities selected for partial redemption,
the principal amount thereof to be redeemed. 
If the Securities (including coupons, if any) of a series having
different issue dates, interest rates and maturities (whether or not originally
issued in a Periodic Offering) are to be redeemed, the Company in its
discretion may select the particular Securities or portions thereof to be
redeemed and shall notify the Trustee thereof by such time prior to the
relevant redemption date or dates as the Company and the Trustee may agree.

 

For
purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Securities (including coupons, if any)
shall relate, in the case of any Securities (including coupons, if any) redeemed
or to be redeemed only in part, to the portion of the principal amount of such
Securities (including coupons, if any) that has been or is to be redeemed.

 

Section 10.4.                             Notice of Redemption.  Unless otherwise specified as contemplated by
Section 3.1, notice of redemption shall be given in the manner provided in
Section 1.6 not less than 30 days nor more than 60 days prior to the
Redemption Date to the Holders of the Securities to be redeemed.

 

All
notices of redemption shall state:

 

(1)                                  the
Redemption Date;

 

(2)                                  the
Redemption Price;

 

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

 

(4)                                  in
case any Security is to be redeemed in part only, the notice that relates to
such Security shall state that on and after the Redemption Date, upon surrender
of such Security, the holder will receive, without a charge, a new Security or
Securities of authorized denominations for the principal amount thereof
remaining unredeemed;

 

(5)                                  the
Place or Places of Payment where such Securities, together in the case of
Bearer Securities with all coupons appertaining thereto, if any, maturing after
the Redemption Date, are to be surrendered for payment for the Redemption
Price;

 

76

 

(6)                                  that
Securities of the series called for redemption and all unmatured coupons, if
any, appertaining thereto must be surrendered to the Paying Agent to collect
the Redemption Price;

 

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

 

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

 

(9)                                  that,
unless otherwise specified in such notice, Bearer Securities of any series, if
any, surrendered for redemption must be accompanied by all coupons maturing
subsequent to the Redemption Date or the amount of any such missing coupon or
coupons will be deducted from the Redemption Price, unless security or
indemnity satisfactory to the Company, the Trustee and any Paying Agent is
furnished; and

 

(10)                            the
CUSIP number, if any, of such Securities.

 

Notice
of redemption of Securities to be redeemed shall be given by the Company or, at
the Company’s request, by the Trustee in the name and at the expense of the
Company.  Any notice given in the manner
provided herein shall be conclusively presumed to have been given, whether or
not such notice is actually received. 
Failure to mail any notice or defect in the mailed notice or the mailing
thereof in respect of any Security shall not affect the validity of the redemption
of any other Security.

 

Section 10.5.                             Deposit of Redemption
Price.  On or prior to any Redemption
Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if
the Company is acting as its own Paying Agent, which it may not do in the case
of a sinking fund payment under Article XI, segregate and hold in trust as
provided in Section 9.3) an amount of money in the currency or currencies
(including currency units or composite currencies) in which the Securities of
such series are payable (except as otherwise specified pursuant to Section 3.1
for the Securities of such series) sufficient to pay on the Redemption Date the
Redemption Price of, and (unless the Redemption Date shall be an Interest
Payment Date) interest accrued to the Redemption Date on, all Securities or
portions thereof which are to be redeemed on that date.

 

Unless
any Security by its terms prohibits any sinking fund payment obligation from
being satisfied by delivering and crediting Securities (including Securities
redeemed otherwise than through a sinking fund), the Company may deliver such
Securities to the Trustee for crediting against such payment obligation in
accordance with the terms of such Securities and this Indenture.

 

77

 

Section 10.6.                             Securities Payable on
Redemption Date.  Notice of
redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified, and from and after such date (unless the Company shall
default in the payment of the Redemption Price and accrued interest) such
Securities shall cease to bear interest and the coupons for any such interest
appertaining to any Bearer Security so to be redeemed, except to the extent
provided below, shall be void.  Except as
provided in the next succeeding paragraph, upon surrender of any such Security,
including coupons, if any, for redemption in accordance with said notice, such
Security shall be paid by the Company at the Redemption Price, together with
accrued interest to the Redemption Date; provided, however, that installments
of interest on Bearer Securities whose Stated Maturity is on or prior to the
Redemption Date and the principal of, and premium, if any, on such Bearer
Securities shall be payable only at an office or agency located outside the
United States and its possessions (except as otherwise provided in Section 9.2)
and, unless otherwise specified as contemplated by Section 3.1, only upon
presentation and surrender of coupons for such interest; and provided, further,
that, unless otherwise specified as contemplated by Section 3.1,
installments of interest on Registered Securities whose Stated Maturity is on
or prior to the Redemption Date shall be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 3.7.

 

If any
Bearer Security surrendered for redemption shall not be accompanied by all
appurtenant coupons maturing after the Redemption Date, such Bearer Security
may be paid after deducting from the Redemption Price an amount equal to the
face amount of all such missing coupons, or the surrender of such missing
coupon or coupons may be waived by the Company and the Trustee if there be
furnished to them such security or indemnity as they may require to save each
of them and any Paying Agent harmless. 
If thereafter the Holder of such Bearer Security shall surrender to the
Trustee or any Paying Agent any such missing coupon in respect of which a
deduction shall have been made from the Redemption Price, such Holder shall be
entitled to receive the amount so deducted; provided, however, that interest
represented by coupons shall be payable only at an office or agency located
outside of the United States (except as otherwise provided pursuant to Section 9.2)
and, unless otherwise specified as contemplated by Section 3.1, only upon
presentation and surrender of those coupons.

 

If any
Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal (and premium, if any) shall, until paid, bear
interest from the Redemption Date at the rate prescribed therefor in the
Security.

 

Section 10.7.                             Securities Redeemed in
Part.  Upon surrender of a Security
that is redeemed in part at any Place of Payment therefor (with, if the Company
or the Trustee so require, due endorsement by, or a written instrument of
transfer in form satisfactory to 

 

78

 

the Company and the Trustee duly executed by, the Holder thereof or his
attorney duly authorized in writing), the Company shall execute and the Trustee
shall authenticate and deliver to the Holder of that Security, without service
charge a new Security or Securities of the same series, having the same form,
terms and Stated Maturity, in any authorized denomination equal in aggregate
principal amount to the unredeemed portion of the principal amount of the
Security surrendered.

 

Section 10.8.                             Optional Redemption Due
to Changes in Australian Tax Treatment. 
The Securities of any series may be redeemed, in whole but not in part,
at the Redemption Price specified in the form of Security for such series
established pursuant to Section 3.1, with any accrued interest to the
Redemption Date, at any time within 90 days of the Company requesting and
receiving an opinion of competent tax counsel to the effect that there has
been, an amendment to, change in or announced proposed change in the laws, or
regulations under those laws, of the Commonwealth of Australia or any political
subdivision or authority thereof or therein (or, in the event of the assumption
pursuant to Section 7.1 of the obligations of the Company hereunder by a
successor Person organized under the laws of a jurisdiction other than the
Commonwealth of Australia or any political subdivision or authority thereof or
therein, of the Commonwealth of Australia or the country in which such
successor Person is organized or resident or deemed resident for tax purposes
or any political subdivision or authority thereof or therein); a judicial
decision interpreting, applying or clarifying those laws or regulations; an
administrative pronouncement or action that represents an official position,
including a clarification of an official position, of the governmental
authority or regulatory body making the administrative pronouncement or taking
any action; or a threatened challenge asserted in connection with an audit of
the Company, or any of its subsidiaries, or a threatened challenge asserted in
writing against any other taxpayer that has raised capital through the issuance
of securities that are substantially similar to the Securities, which amendment
or change is adopted or which proposed change, decision or pronouncement is
announced or which action, clarification or challenge occurs on or after (A) with
respect to taxes imposed by the Commonwealth of Australia or any political
subdivision or authority thereof or therein, the date of the applicable
prospectus supplement or term sheet or (B) in the event of the assumption
pursuant to Section 7.1 of the obligations of the Company hereunder by a
successor Person organized under the laws of a jurisdiction other than the
Commonwealth of Australia (or any political subdivision thereof), with respect
to taxes imposed by a non-Australian jurisdiction, the date of the transaction
resulting in such assumption, in each case, following which there is more than
an insubstantial risk that any payment on the Securities is, or will be,
subject to withholding or deduction in respect of any taxes, assessments or
other governmental charges; provided, however, that, if at the time there is
available to the Company the opportunity to eliminate, within the 90-day
period, the risk that any payment on the Securities is, or will be, subject to
such withholding or deduction by taking some ministerial action, such as filing
a form or making an election, or pursuing some other similar reasonable measure
that in the Company’s sole judgment has or will cause no 

 

79

 

adverse effect on the Company or any of the Company’s Subsidiaries or
Affiliates and will involve no material cost, the Company will pursue that
measure in lieu of redeeming the Securities of any series pursuant to this Section 10.8.

 

ARTICLE XI

 

SINKING FUNDS

 

Section 11.1.                             Applicability of
Article.  The provisions of this Article shall
be applicable to any sinking fund for the retirement of Securities of a series
except as otherwise specified as contemplated by Section 3.1 for
Securities of such series.

 

The
minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a “mandatory sinking fund
payment,” and any payment in excess of such minimum amount provided for by the
terms of Securities of any series is herein referred to as an “optional sinking
fund payment.”  If provided for by the
terms of Securities of any series, the cash amount of any sinking fund payment
may be subject to reduction as provided in Section 11.2.  Each sinking fund payment shall be applied to
the redemption of Securities of any series as provided for by the terms of
Securities of such series.

 

Section 11.2.                             Satisfaction of Sinking
Fund Payments with Securities.  The
Company (i) may deliver Outstanding Securities of a series (other
than any previously called for redemption) together, in the case of Bearer
Securities of such series, with all unmatured coupons appertaining thereto and (ii) may
apply as a credit Securities of a series which have been redeemed either at the
election of the Company pursuant to the terms of such Securities or through the
application of permitted optional sinking fund payments pursuant to the terms
of such Securities, in each case in satisfaction of all or any part of any
sinking fund payment with respect to the Securities of such series required to
be made pursuant to the terms of such Securities as provided for by the terms of
such series; provided that such Securities have not been previously so
credited.  Such Securities shall be
received and credited for such purpose by the Trustee at the Redemption Price
specified in such Securities for redemption through operation of the sinking
fund and the amount of such sinking fund payment shall be reduced accordingly.

 

Section 11.3.                             Redemption of
Securities for Sinking Fund.  Not
less than 60 days prior to each sinking fund payment date for any series of
Securities, the Company will deliver to the Trustee an Officers’ Certificate
specifying the amount of the next ensuing sinking fund payment for that series
pursuant to the terms of that series, the portion thereof, if any, which is to
be satisfied by payment of cash and the portion thereof, if any, which is to be
satisfied by delivering and crediting Securities of that series pursuant to Section 11.2
and will also deliver to the Trustee any Securities to be so delivered.  Not less than 30 days before each such
sinking fund payment date the Trustee shall select the 

 

80

 

Securities to be redeemed upon such sinking fund payment date in the
manner specified in Section 10.3 and cause notice of the redemption
thereof to be given in the name of and at the expense of the Company in the
manner provided in Section 10.4. 
Such notice having been duly given, the redemption of such Securities
shall be made upon the terms and in the manner stated in Sections 10.5 and
10.6.

 

ARTICLE XII

 

SOLVENCY AND SUBORDINATION OF SECURITIES

 

Section 12.1.                             Solvency.  Notwithstanding anything in this Indenture or
any Security to the contrary, prior to the commencement of a Winding Up of the
Company:

 

(1)                                  the
obligation of the Company to make any payment of principal, Redemption Price,
interest or any other amount owing in respect of the Securities or in relation
to this Indenture shall be conditional upon the Company being Solvent at the
time such payment is due; and

 

(2)                                  the
Company shall not make any payment of principal, Redemption Price, interest or
any other amount owing in respect of the Securities or in relation to this
Indenture except to the extent that the Company may make such payment and still
be Solvent immediately thereafter.

 

Section 12.2.                             Subordination and Payment
Over of Proceeds Upon Winding Up.

 

(a)                                  In
a Winding Up of the Company, the rights and claims of Holders of the Securities
and the Trustee (other than with respect to the costs, charges, expenses and
liabilities incurred by the Trustee in or about the execution of the trusts
hereunder, including the remuneration of the Trustee, which are governed by Section 12.2(d) below)
are subordinated and junior in right of payment to the claims of the Senior
Creditors of the Company (as defined below).

 

(b)                                 The
Securities shall constitute direct and unsecured obligations of the Company,
subordinated to Senior Creditors of the Company as and to the extent provided
herein, and rank pari passu without
any preference among themselves, and at least pari
passu with all other unsecured Subordinated Indebtedness (as defined
below) of the Company (save for certain mandatory exceptions provided by law
including, but not limited to, Section 13A of the Banking Act 1959 of
Australia and Section 23 of the Westpac Banking Corporation Act 1982 of
New Zealand).

 

(c)                                  The
Securities shall not constitute deposit liabilities of the Company in Australia
or New Zealand for the purposes of the Banking Act 1959 of Australia or the
Westpac Banking Corporation Act 1982 of New Zealand.

 

81

 

(d)                                 On
a Winding Up of the Company, no amount shall be payable to the Holders in
respect of the Securities and hereunder until the claims of the Senior
Creditors of the Company have been satisfied in full and the rights of the
Holders hereunder and under the Securities to receive any amounts in respect of
the Securities and hereunder in the Winding Up of the Company shall be held by
the Trustee upon trust:

 

FIRST, for application in payment or satisfaction of
the costs, charges, expenses and liabilities incurred by the Trustee in or
about the execution of the trusts hereunder (including the remuneration of the
Trustee);

 

SECOND, pari  passu and ratably (as to
its due proportion only) with the holders of other Subordinated Indebtedness
(as defined below) (if any) for distribution among the Senior Creditors of the
Company (but only to the extent that their claims shall not have been satisfied
in full;

 

THIRD, pari  passu and ratably in or
towards payment of the principal and interest owing in respect of the
Securities; and

 

FOURTH, in payment of any balance to the Company or
the liquidator of the Company on its behalf.

 

(e)                                  The
trust for distribution among the Senior Creditors of the Company shall be
performed by the Trustee by repaying to the liquidator of the Company the
amount so to be distributed on terms that such liquidator shall distribute the
same accordingly and, in that event, the receipt of the liquidator of the
Company shall be a good discharge to the Trustee and the Trustee shall not be
bound to supervise such distribution.

 

(f)                                    The
Trustee shall be entitled and is hereby authorized by the Company to call for
(and shall be entitled to accept as conclusive evidence thereof) a certificate
from the liquidator of the Company as to:

 

(1)                                  the
amounts of the claims of the Senior Creditors of the Company that shall have
been admitted in the Winding Up and that shall not have been satisfied in full
out of the other resources of the Company;

 

(2)                                  the
Persons entitled thereto and their respective entitlements; and

 

(3)                                  the
amounts of the claims of the holder or holders of any Subordinated
Indebtedness.

 

Any certificate given by the liquidator of the Company
as aforesaid shall be conclusive and binding on the Trustee and all Holders.

 

82

 

(g)                                Subject
to the terms of this Article XII, the Trustee shall be entitled in the
event of any Securities remaining unpaid (other than by reason of
nonpresentation) at a time when the Securities have become payable to institute
proceedings for the Winding Up of the Company to recover amounts due hereunder
and under the Securities or to prove such amounts in any Winding Up or
both.  If the Trustee, having become
bound to institute proceedings in accordance with this Indenture, fails to do
so or fails to prove in such Winding Up, any Holder may, upon giving to the
Trustee an indemnity satisfactory to it, in the name of the Trustee (but not
otherwise) itself take the proceedings that the Trustee could have instituted
or proven in such Winding Up or both; provided, however, that nothing in this
subsection (g) shall prevent the Trustee (or, where entitled under these
presents to do so, any Holder) from taking any other proceedings to recover the
amounts due hereunder or under the Securities or to pursue any other remedy
permitted by the terms of Article V where Winding Up of the Company is
unable to be commenced or completed for any reason whatsoever including,
without limitation, action taken by the Reserve Bank of Australia in relation
to the affairs of the Company.

 

(h)                                In
a Winding Up of the Company, subject to the satisfaction in full of all Senior
Claims (as defined below) admitted in such Winding Up, the Holders and the
Trustee shall be subrogated (pro rata with the Holders (or the Trustee(s) for
such Holders) of other claims ranking pari  passu with the Holders’
Claims (as defined below), on the basis of the respective amounts paid over,
directly or through the liquidator of the Company, to or for the benefit of the
Senior Creditors of the Company) to the rights of the Senior Creditors of the
Company to receive payments or distributions of cash, property or securities of
the Company applicable to Senior Claims until the principal (and premium, if
any) and interest, if any, in respect of the Securities of each series shall be
paid in full; and, for the purposes of such subrogation, no payments or
distributions to the Senior Creditors of the Company of cash, property or
securities of the Company to which the Holders or the Trustee, directly or
through the liquidator of the Company, to or for the benefit of Senior
Creditors of the Company pursuant to the provisions of this Section 12.2,
shall, as between the Company, its creditors other than by its Senior
Creditors, and the Holders and the Trustee, be deemed to be a payment by the
Company of or on account of Senior Claims.

 

(i)                                    For
the purposes of this Article XII:

 

(1)                                  the
term “Senior Creditors of the Company” means all creditors (present and
future), including depositors of the Company, (i) whose claims are
admitted in the Winding Up of the Company and (ii) who are not the
holders of indebtedness of the Company the right to repayment of which by its
terms is, or is expressed to be, subordinated in a Winding Up of the Company to
the claims of all unsubordinated creditors of the Company; and the expression “its
Senior Creditors” shall be construed accordingly; and

 

83

 

(2)                                  the
term “Subordinated Indebtedness” means any indebtedness (present and
future) of the Company that by its terms is, or is expressed to be,
subordinated in the event of Winding Up of the Company to the claims of Senior
Creditors of the Company, other than (i) indebtedness of the
Company that does not have a fixed maturity date, (ii) indebtedness
issued under the Junior Subordinated Indenture, (iii) any
indebtedness the right to repayment of which by its terms is, or is expressed
to be, equal in right of payment to indebtedness issued under such Junior
Subordinated Indenture and (iv) any other indebtedness the right to repayment of which by its terms
is, or is expressed to be, subordinated in the event of Winding Up of the
Company to the indebtedness hereunder.

 

(j)                                     For
the purposes of Sections 12.1 and 12.2:

 

(1)                                  the
term “Holders’ Claims” shall mean claims of the Holders pursuant to the
Securities of each series and this Indenture;

 

(2)                                  the
term “Senior Claims” shall mean claims against the Company by the Senior
Creditors of the Company;

 

(3)                                  the
term “Solvent” when used in connection with the payment of any
installment of principal or interest on the Securities of a series by the
Company shall mean that (i) the Company is able to pay its debts as
they fall due and (ii) that the Company’s Assets exceed its
Liabilities;

 

(4)                                  the
term “Assets” shall mean the total consolidated gross assets of the
Company as shown by the latest published audited accounts of the Company but
adjusted for events subsequent to the date of such accounts in such manner and
to such extent as the directors, the Company’s auditors, or as the case may be,
the Company’s liquidator may determine to be appropriate; and

 

(5)                                  the
term “Liabilities” shall mean the total consolidated gross liabilities
of the Company as shown by the latest public audited accounts of the Company
but adjusted for events subsequent to the date of such accounts in such manner
and to such extent as the directors, the Company’s auditors, or as the case may
be, the Company’s liquidator may determine to be appropriate.

 

Section 12.3.                             Notice to Trustee.  The Company shall give prompt written notice
to the Trustee of any fact known to the Company that would prohibit the making
of any payment to or by the Trustee in respect of Securities of any series.  Notwithstanding the provisions of this Article or
any other provision of this Indenture, the Trustee shall not be charged with
knowledge of the existence of any facts that would prohibit the making of any
payment to or by the Trustee in respect of the Securities of any series, unless
and until the Trustee shall have received written notice thereof from the
Company or an 

 

84

 

Senior Creditor of the Company or from any trustee therefor; and, prior
to the receipt of any such written notice, the Trustee, subject to the
provisions of Section 6.1, shall be entitled in all respects to assume
that no such facts exist; provided, however, that if the Trustee shall not have
received the notice provided for in this Section 12.3 at least three
Business Days prior to the date upon which by the terms hereof any money may
become payable for any purpose (including, without limitation, the payment of
the principal of and any premium or interest on any Security), then, anything
herein contained to the contrary notwithstanding, the Trustee shall have full
power and authority to receive such money and to apply the same to the purpose
for which such money was received and shall not be affected by any notice to
the contrary that may be received by it within three Business Days prior to
such date.

 

Subject
to the provisions of Section 6.1, the Trustee shall be entitled to rely on
the delivery to it of a written notice by a Person representing himself to be
an Senior Creditor of the Company (or a trustee therefor) to establish that
such notice has been given by an Senior Creditor of the Company (or a trustee
therefor).  In the event that the Trustee
determines in good faith that further evidence is required with respect to the
right of any Person as an Senior Creditor of the Company to participate in any
payment or distribution pursuant to this Article, the Trustee may request such
person to furnish evidence to the reasonable satisfaction of the Trustee as to
the amount of Senior Claims (as defined in Section 12.2) held by such
Person, the extent to which such Person is entitled to participate in such
payment or distribution and any other facts pertinent to the rights of such
Person under this Article, and if such evidence is not furnished, the Trustee
may defer any payment to such Person pending judicial determination as to the
right of such Person to receive such payment.

 

Section 12.4.                             Trustee Not Fiduciary
for Senior Creditors of the Company. 
The Trustee shall not be deemed to owe any fiduciary duty to the Senior
Creditors of the Company and shall not be liable to any Senior Creditors of the
Company if it shall in good faith mistakenly pay over or distribute to Holders
of Securities of any series or to the Company or to any other Person cash,
property or securities to which any Senior Creditors of the Company shall be
entitled by virtue of this Article or otherwise.

 

Section 12.5.                             Rights of Trustee as
Senior Creditor of the Company; Preservation of Trustee’s Rights.  The Trustee in its individual capacity shall
be entitled to all the rights set forth in this Article with respect to
any Senior Claims (as defined in Section 12.2) that may at any time be
held by it, to the same extent as any other Senior Creditor of the Company, and
nothing in this Indenture shall deprive the Trustee of any of its rights as
such holder.

 

Nothing
in this Article shall apply to claims of, or payments to, the Trustee
under or pursuant to Section 6.8.

 

85

 

Section 12.6.                             Article Applicable
to Paying Agents.  In case at any
time any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term “Trustee” as used in this
Article shall in such case (unless the context otherwise requires) be
construed as extending to and including such Paying Agent within its meaning as
fully for all intents and purposes as if such Paying Agent were named in this Article in
addition to or in place of the Trustee; provided, however, that Section 12.6
shall not apply to the Company or any Affiliate of the Company if it or such
Affiliate acts as Paying Agent.

 

Section 12.7.                             Provisions Solely to
Define Relative Rights.  The
provisions of this Article XII are and are intended solely for the purpose
of defining the relative rights of the Holders of the Securities on the one
hand and all other creditors of the Company (other than Holders of Subordinated
Indebtedness) on the other hand.  Nothing
contained in this Article XII or elsewhere in this Indenture or in the
Securities is intended to or shall:  (a) impair,
as among the Company and its creditors (other than holders of Subordinated
Indebtedness), the obligation of the Company, which is absolute and
unconditional, to pay to the Holders of the Securities the principal of and
interest on the Securities as and when the same shall become due and payable in
accordance with their terms; (b) affect the relative rights against
the Company of the Holders of the Securities and all other creditors of the
Company other than holders of Subordinated Indebtedness; or (c) prevent
the Trustee or the Holder of any Securities from exercising all remedies
otherwise permitted by applicable law and Article V of this Indenture upon
Default under this Indenture, subject to the rights, if any, under this Article XII
of all other creditors of the Company (other than creditors that hold
Subordinated Indebtedness) to receive cash, property and securities otherwise
payable or deliverable to the Trustee or such Holder.

 

Section 12.8.                             No Set-Off.  No Holder shall be entitled to set-off
against any amounts due in respect of the Securities held by such Holder any
amount held by the Holder to the credit of the Company whether in any account,
in cash or otherwise, nor any deposits with, advances to or debts of the
Company, nor any other amount owing by the Holder to the Company on any account
whatsoever, nor shall any Holder be entitled to effect any reduction of the
amount due to such Holder in respect of a Security by merger of accounts or
lien or the exercise of any other rights the effect of which is or may be to
reduce the amount due in respect of that Security in breach of this Indenture.

 

86

 

This
Indenture may be executed in any number of counterparts, each of which shall be
an original, but such counterparts shall together constitute but one
instrument.

 

IN
WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly
executed, and their respective corporate seals to be hereunto affixed and
attested, all as of the day and year first above written.

 

	
   

  	
  WESTPAC BANKING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Manuela Adl

  
	
   

  	
   

  	
  Name:  Manuela Adl

  
	
   

  	
   

  	
  Title:  Senior Vice President and COO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Taeko Fukaishi

  
	
   

  	
   

  	
  Name: Taeko Fukaishi

  
	
   

  	
   

  	
  Title:  Assistant Vice President

  

 

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  Exhibit 10.1    
    

 
 

  SEVENTEENTH AMENDING AGREEMENT    
    

        THIS AGREEMENT is made as of September 15th, 2008, 

 B E T W E E N:  

MAGNA ENTERTAINMENT CORP.

as Borrower (the "Borrower")  

 – and – 

THE GUARANTORS SET FORTH

ON THE SIGNATURE PAGES HEREOF

as Guarantors (collectively, the "Guarantors")  

 – and –  

BANK OF MONTREAL, ACTING THROUGH ITS

CHICAGO LENDING OFFICE

as Lender (the "Lender")  

 – and – 

BANK OF MONTREAL, ACTING THROUGH ITS

CHICAGO LENDING OFFICE

as Agent (the "Agent")  

 RECITALS:  

	A.
	The
Lender has made a certain credit facility available to the Borrower in accordance with the terms and conditions set out in an amended and restated credit
agreement (the "Loan Agreement") dated as of July 22, 2005, between the Borrower, the Guarantors, the Lender, the Agent and BMO Nesbitt Burns Inc., a Division of Bank of
Montreal, as arranger, and as amended from time to time.

	B.
	The
Borrower, the Lender and the Agent have agreed to further amend the Loan Agreement by extending the Termination Date.

	C.
	The
Guarantors have agreed to confirm the guarantees and security granted by them in connection with the Loan Agreement.

	D.
	Article 7
of the Loan Agreement sets out certain affirmative and negative obligations which the Borrower has covenanted to be bound by and has agreed
to follow unless the Agent, on behalf of the Lender, waives in writing. 

 

        NOW THEREFORE in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration
(the receipt and sufficiency of which are hereby acknowledged) the parties agree as follows: 

1.     Interpretation  

        Capitalized terms not defined in this Seventeenth Amending Agreement have the meaning given to such terms in the Loan Agreement. 

2.     Loan Agreement Amendments  

The
parties hereto agree to amend the Loan Agreement by deleting the definition of "Termination Date" in section 1.1.120 and replacing it
with the following new definition of Termination Date: 

"Termination Date means October 15th, 2008, or such earlier date as the entire balance of the Loans under the Credit
Facility may become due hereunder, whether by acceleration or otherwise; or, in each case, such later date to which the Credit Facility has been extended pursuant to section 2.5. For greater
certainty, the Lender and the Borrower agree that if the maturity date under the Bridge Loan Agreement is amended such that it occurs prior to October 15th, 2008 for any reason (other than an
Event of Default thereunder), the Termination Date hereunder will be deemed to be such date that is 14 days prior to such amended maturity date under the Bridge Loan Agreement." 

3.     Conditions Precedent to Loan Agreement Amendments  

        The obligation of the Lender to agree to the amendment herein, and to make available any further advances, is subject to fulfillment of the following conditions
precedent on the date hereof: 

	(a)
	the
maturity date under the Bridge Loan Agreement shall be amended such that it occurs on or later than October 30th, 2008;

	(b)
	the
representations and warranties of the Borrower set out in section 6.1 of the Loan Agreement are true and correct on the date hereof provided if
any such representation and warranty is specifically given as of any particular date or particular period of time, then such representation and warranty shall continue to be given as at such date or
such period of time;

	(c)
	no
Default or Event of Default has occurred or is continuing or would arise immediately after giving effect to or as a result of the amendment herein;

	(d)
	no
Material Adverse Change since March 31st, 2008 shall have occurred; 

2

 

	(e)
	payment
in full of all reasonable invoiced fees, including for greater certainty, an upfront fee of US$400,000 and all reimbursable
out-of-pocket expenses payable by the Borrower on or prior to the date hereof including payment of all reasonable fees, disbursements and out-of-pocket
expenses of counsel to the Agent and the Lenders; and

	(f)
	such
other documentation or information as the Lender shall have reasonably requested. 

4.     Loan Agreement  

        Save as expressly amended by this Seventeenth Amending Agreement, all other terms and conditions of the Loan Agreement and each of the Loan Documents remain in
full force and effect, unamended, and this Seventeenth Amending Agreement constitutes a Loan Document for the purposes of the Loan Agreement. 

5.     Confirmation of Guarantee and Security  

        Each of the Guarantors acknowledges and confirms that (i) the guarantee granted by it pursuant to Article 10 of the Loan Agreement constitutes a
continuing guarantee of, among other things, all present and future obligations of the Borrower to the Lender under the Loan Agreement and shall remain in full force and effect; and (ii) each
of the other Loan Documents executed by it shall remain in full force and effect. In addition, (i) MEC Land Holdings (California) Inc. acknowledges and confirms that the Golden Gate
Mortgage constitutes continuing security for the obligations secured thereby and shall remain in full force and effect, and (ii) The Santa Anita Companies, Inc. acknowledges and confirms
that the Santa Anita Mortgage constitutes continuing security for the obligations secured thereby and shall remain in full force and effect. 

6.     Counterparts  

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

        IN WITNESS WHEREOF this Seventeenth Amending Agreement has been executed by the parties hereto as of the date first written above. 

[signature
page to follow] 

3

 

					
	 	 	MAGNA ENTERTAINMENT CORP., as Borrower
	

 	
 	

 	
 	

 
	 	 	By:	 	

Name: Blake S. Tohana

Title: Executive Vice-President and Chief Financial Officer
	

 	
 	

 	
 	

 
	 	 	By:	 	

Name: William G. Ford

Title: Secretary

  
	 	 	PACIFIC RACING ASSOCIATION, as Guarantor, but only with respect to Article 10 of the Loan Agreement and all other provisions related thereto
	

 	
 	

 	
 	

 
	 	 	By:	 	

Name: Blake S. Tohana

Title: Executive Vice-President and Chief Financial Officer
	

 	
 	

 	
 	

 
	 	 	By:	 	

Name: William G. Ford

Title: Secretary

4

 

					
	 	 	MEC LAND HOLDINGS (CALIFORNIA) INC., as Guarantor, but only with respect to Article 10 of the Loan Agreement and all other provisions related thereto
	

 	
 	

 	
 	

 
	 	 	By:	 	

Name: Blake S. Tohana

Title: Executive Vice-President and Chief Financial Officer
	

 	
 	

 	
 	

 
	 	 	By:	 	

Name: William G. Ford

Title: Secretary

5

 

					
	 	 	THE SANTA ANITA COMPANIES, INC., as Guarantor, but only with respect to Article 10 of the Loan Agreement and all other provisions related thereto
	

 	
 	

 	
 	

 
	 	 	By:	 	

Name: Blake S. Tohana

Title: Executive Vice-President and Chief Financial Officer
	

 	
 	

 	
 	

 
	 	 	By:	 	

Name: William G. Ford

Title: Secretary
	

 	
 	

 	
 	

 
	 	 	LOS ANGELES TURF CLUB, INCORPORATED, as Guarantor, but only with respect to Article 10 of the Loan Agreement and all other provisions related thereto
	

 	
 	

 	
 	

 
	 	 	By:	 	

Name: Blake S. Tohana

Title: Executive Vice-President and Chief Financial Officer
	

 	
 	

 	
 	

 
	 	 	By:	 	

Name: William G. Ford

Title: Secretary

6

 

					
	 	 	BANK OF MONTREAL, acting through its Chicago lending office, as Lender
	

 	
 	

 	
 	

 
	 	 	By:	 	

	

  	
 	

 	
 	

 
	 	 	BANK OF MONTREAL, acting through its Chicago lending office, as Agent
	

 	
 	

 	
 	

 
	 	 	By:	 	

Name:

Title:

7

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Exhibit 10.1

SEVENTEENTH AMENDING AGREEMENT

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