Document:

EXHIBIT 10.82

                           STOCK REDEMPTION AGREEMENT

     THIS STOCK REDEMPTION AGREEMENT ("Agreement") is made as of January 8, 2004
by  and  between  MIDAMERICAN  ENERGY  HOLDINGS  COMPANY,  an  Iowa  corporation
("MidAmerican"), and DAVID L. SOKOL ("Mr. Sokol").

     Mr. Sokol owns a number of shares of common stock,  no par value per share,
of MidAmerican ("Shares"). Mr. Sokol desires to sell a portion of such Shares to
MidAmerican, and MidAmerican is willing to purchase the same, in accordance with
the terms and conditions of this Agreement.

        Therefore, MidAmerican and Mr. Sokol agree as follows:

     Section 1.  Purchase and Sale of Shares.  Mr. Sokol hereby  agrees to sell,
assign,  transfer  and deliver to  MidAmerican  200,000  Shares (the  "Purchased
Shares") at $100 per share,  for an aggregate  purchase  price of Twenty Million
Dollars ($20,000,000),  payable by wire transfer of immediately available funds.
Mr.  Sokol  shall  deliver  appropriate  stock  certificates   representing  the
Purchased  Shares  accompanied  by  irrevocable  stock  powers  against  payment
therefor.

      Section 2.  Representations and Warranties.

     (a) By Mr.  Sokol.  Mr. Sokol  represents  and warrants to  MidAmerican  as
follows,  which  representations and warranties shall survive the closing of the
transactions contemplated in Section 1 above:

          (1) Mr.  Sokol  has  full  power  and  authority  to enter  into  this
     Agreement  and  to  perform  the  transactions  contemplated  hereby.  This
     Agreement  is  binding  upon  and  is  enforceable  against  Mr.  Sokol  in
     accordance with its terms.

          (2) Mr.  Sokol owns and has good,  valid and  marketable  title to the
     Purchased  Shares,  free and  clear of any and all  transfer  restrictions,
     claims, liens, encumbrances,  rights of third parties or other restrictions
     whatsoever,   and  pursuant  to  Section  1  above  shall   transfer   such
     unrestricted title to the Purchased Shares to MidAmerican.

          (3) The execution and delivery of this  Agreement by Mr. Sokol and the
     consummation of the transactions contemplated hereby will not result in the
     breach  of,  or  constitute  a  default  under,  any  contract,  agreement,
     commitment,  pledge or other instrument or obligation to which Mr. Sokol is
     now a party or by which Mr. Sokol or any  Purchased  Shares may be bound or
     affected.

          (4) Mr. Sokol is  knowledgeable  in financial and business  matters in
     general, and those relating to MidAmerican in particular, and is capable of
     evaluating  the merits and risks of entering into this  Agreement.  Neither
     MidAmerican,  nor any of its  directors,  officers,  employees,  agents  or
     representatives, has made any statement, representation or warranty (except
     as expressly set forth  herein) that in any manner  influenced or was taken
     into account or relied upon by Mr. Sokol in deciding  whether to enter into
     this Agreement,  including,  without limitation,  any statement relating to
     MidAmerican,  its  business  or  prospects  or the  value of the  Purchased
     Shares.  Mr.  Sokol has not relied in any manner in  deciding to enter into
     this  Agreement  upon  the  silence  or  failure  of  MidAmerican,  or  its
     directors,  officers,  employees,  agents or representatives,  to state any
     matter with respect to MidAmerican, its business or prospects, or the value
     of the Purchased Shares. Mr. Sokol has decided to enter into this Agreement
     based on Mr.  Sokol's  independent  investigation  and for Mr.  Sokol's own
     business  purposes  which are entirely  independent  of any analysis of the
     short or long term  value or  prospects  of  MidAmerican  or the  Purchased
     Shares.  Mr. Sokol recognizes that MidAmerican and its directors,  officer,
     employees,   agents  or  representatives  may  have  information  regarding
     MidAmerican,  its business and prospects, or the value of the Shares, which
     is, may be, or may be  perceived  to be material  and which is not publicly
     available and which has not been disclosed to or is not known by Mr. Sokol.
     Mr. Sokol confirms that access to any such information  would not have been
     important to his decision to sell the Purchased Shares.

     (b) By  MidAmerican.  MidAmerican  represents  and warrants to Mr. Sokol as
follows,  which  representations and warranties shall survive the closing of the
transactions contemplated in Section 1 above:

          (1)  MidAmerican  has full  power  and  authority  to enter  into this
     Agreement  and  to  perform  the  transactions  contemplated  hereby.  This
     Agreement  is  binding  upon  and is  enforceable  against  MidAmerican  in
     accordance with its terms.

          (2) In deciding to enter into this Agreement, MidAmerican did not rely
     on any  representations  or warranty of Mr. Sokol not  expressly  set forth
     herein.

     Section 3. Indemnity.  Mr. Sokol, on the one hand, and MidAmerican,  on the
other hand, shall indemnify and hold the other, and its or their (as applicable)
directors,  officers,  employees, agents and representatives,  harmless from and
against any and all losses, damages and expenses (including, without limitation,
settlement costs, legal fees and other expenses) arising from or relating to any
breach by such party of any  representation or warranty in this Agreement or any
breach by such party of any covenant,  agreement or obligation contained herein.

     Section 4. Expenses.  All fees and expenses  incurred by any of the parties
to this Agreement  shall be borne by the party incurring such fees and expenses,
and all sales,  transfer or other similar taxes payable in connection  with this
Agreement  (including,   without  limitation,  any  transfer  taxes  payable  in
connection  with the sale of the  Purchased  Shares)  will be borne by the party
incurring such taxes.

     Section 5.  Implementation  of  Agreement.  MidAmerican  and Mr. Sokol each
agree to take or cause to be taken all such  actions  and execute and deliver or
cause to be executed or delivered all such documents as the other may reasonably
request in order to carry out and  implement  the terms and  provisions  of this
Agreement.

     Section  6.  Severability.  If any  part  of this  Agreement  is held to be
invalid,  void or  unenforceable,  the  remaining  terms and  provisions  of the
Agreement shall remain in full force and effect.

     Section 7. Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of Iowa, without regard to conflicts of
law principles.

     Section 8.  Successors and Assigns;  No Third Party Rights.  This Agreement
shall be binding upon and inure to the benefit of MidAmerican and Mr. Sokol, and
their respective  successors,  assigns, heirs and personal  representatives.  As
used herein,  "successors  and assigns" of a  corporation  include,  but are not
limited to, affiliates and any corporation or other business entity into or with
which such corporation shall be merged, consolidated, liquidated or reorganized.
This Agreement  shall not confer upon any person other than the parties  hereto,
and their respective successors,  assigns,  heirs and personal  representatives,
any rights or remedies.

     Section  9.  Waiver.  Any  waiver  by any  party of a breach of any term or
provision of this Agreement  shall not operate as or be construed to be a waiver
of any other breach of such term or provisions of this Agreement. The failure of
a party  to  insist  upon  strict  adherence  to any term or  provision  of this
Agreement  in one or more  instances  shall not deprive  that party of the right
thereafter  to insist upon strict  adherence  to that term or  provision  or any
other term or provision of this Agreement.

     Section 10. Counterparts;  Headings.  This Agreement may be executed in two
or more  counterparts,  each of which  when  executed  shall be  deemed to be an
original and when taken  together shall  constitute one and the same  agreement.
The headings  contained in this  Agreement are for reference  only and shall not
affect in any way the meaning or interpretation of this Agreement.

     Section 11. Entire Agreement.  This Agreement embodies the entire agreement
and understanding  between the parties with respect to its subject matter.  This
Agreement  may not be modified,  amended,  altered or  supplemented  except by a
written  agreement  signed  by  MidAmerican  and Mr.  Sokol.  The  terms of this
Agreement are contractual,  not merely recital.  This Agreement is the result of
negotiations  between the parties,  and the  principle of contract  construction
against  the  drafter  shall not apply to the  interpretation,  construction  or
enforcement of this Agreement.

     IN WITNESS WHEREOF,  the parties have executed and delivered this Agreement
as of the date first above written.

                                        MIDAMERICAN ENERGY HOLDINGS COMPANY

                                        By /s/Douglas L. Anderson
                                           Douglas L. Anderson
                                           Its Sr. V.P., General Counsel &
                                               Corporate Secretary

                                           /s/David L. Sokol
                                           David L. SokolEXHIBIT 10.83

                                                                 CONFORMED COPY

                            DATED 17TH JANUARY, 1995

                         YORKSHIRE ELECTRICITY GROUP plc

                                     - and -

                         BANKERS TRUSTEE COMPANY LIMITED

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

                                   TRUST DEED

                                  constituting

                               (pound)200,000,000
                              9 1/4 per cent. Bonds
                                    due 2020
                        (with authority to issue further
                                 bonds or notes)

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

                                 For the Issuer:

                                  Herbert Smith
                                 Exchange House
                                 Primrose Street
                                 London EC2A 2HS

                                For the Trustee:

                                  Allen & Overy
                                 One New Change
                                 London EC4M 9QQ

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
Clause

1.       Definitions.........................................................1
2.       Covenant to repay and to pay interest on Original Bonds............11
3.       Form and issue of Original Bonds and Original Coupons..............14
4.       Fees, Duties and Taxes.............................................15
5.       Covenant of Compliance.............................................15
6.       Cancellation of Securities and Records.............................15
7.       Enforcement........................................................17
8.       Proceedings, Action and Indemnification............................17
9.       Application of Moneys..............................................17
10.      Notice of Payments.................................................18
11.      Investment by Trustee..............................................18
12.      Partial Payments...................................................19
13.      Covenants by the Issuer............................................19
14.      Remuneration and Indemnification of Trustee........................24
15.      Supplement to Trustee Act 1925.....................................25
16.      Trustee's Liability................................................28
17.      Trustee Contracting with Issuer....................................29
18.      Waiver, Authorisation and Determination............................29
19.      Holder of Definitive Bearer Security assumed to be Couponholder....30
20.      Substitution.......................................................30
21.      Currency Indemnity.................................................32
22.      New Trustee........................................................32
23.      Trustee's Retirement and Removal...................................33
24.      Trustee's powers to be additional..................................33
25.      Notices............................................................34
26.      Governing Law......................................................34
27.      Counterparts.......................................................35

Schedules

First    Form of Original Global Bond.......................................36
Second   Form of Original Bearer Bond.......................................46
         Form of Original Coupon............................................49
         Form of Original Talon.............................................50
         Form of Original Registered Bond...................................52
         Conditions of the Original Bonds...................................54
Third    Register and transfer of Registered Securities.....................56
Fourth   Provisions for meetings of Holders.................................58

<PAGE>

THIS TRUST DEED is made on 17th January, 1995 BETWEEN:

(l)      YORKSHIRE ELECTRICITY GROUP plc, a company incorporated under the laws
         of England, whose registered office is at Wetherby Road, Scarcroft,
         Leeds LS14 3HS, England (the "Issuer"); and

(2)      BANKERS TRUSTEE COMPANY LIMITED, a company incorporated under the laws
         of England, whose registered office is at 1 Appold Street, Broadgate,
         London EC2A 2HE (the "Trustee", which expression shall, wherever the
         context so admits, include such company and all other persons or
         companies for the time being the trustee or trustees of these presents)
         as trustee for the Holders and Couponholders (each as defined below).

WHEREAS:

(1)      By resolutions of the board of directors of the Issuer passed on 15th
         December, 1994 and by resolutions of a duly authorised committee of the
         board of directors of the Issuer passed on 4th and 5th January, 1995
         the Issuer has resolved to issue (pound)200,000,000 9 1/4 per cent.
         Bonds due 2020 to be constituted by this Trust Deed.

(2)      The said Bonds in definitive form will be either in bearer form with
         Coupons attached or in registered form without Coupons but holders of
         definitive Bonds in bearer form will have the option to exchange such
         Bonds for definitive Bonds in registered form and vice versa, all upon
         and subject to the terms and conditions of these presents.

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

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

1.       DEFINITIONS

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

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

         "Agent Bank" means, in relation to the Securities of any relevant
         series, the bank initially appointed as agent bank in relation to such
         Securities by the Issuer pursuant to the relative

<PAGE>

                                        2

         Agent Bank Agreement or, if applicable, any Successor agent bank in
         relation to such Securities;

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

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

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

         "Capital and Reserves" has the meaning set out in Condition 4;

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

         "Cedel" means Cedel, societe anonyme;

         "Conditions" means:

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

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

<PAGE>

                                        3

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

         "Coupons" means the bearer interest coupons appertaining to the Bearer
         Securities in definitive form or, as the context may require, a
         specific number thereof and includes any replacements for Coupons
         issued pursuant to Condition 14 and, where the context so permits, the
         Talons;

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

         "Event of Default" means any of the conditions, events or acts provided
         in Condition 11 to be events upon the happening of which the Securities
         of any series would, subject only to notice by the Trustee as therein
         provided, become immediately due and repayable;

         "Excluded Subsidiary" has the meaning set out in Condition 4;

         "Extraordinary Resolution" has the meaning set out in paragraph 20 of
         the Fourth Schedule;

         "Further Securities" means bonds or notes (whether in bearer or
         registered form) of the Issuer constituted by a Trust Deed supplemental
         to this Trust Deed pursuant to Clause 2(D) or the principal amount
         thereof for the time being outstanding or as the context may require a
         specific number thereof and includes any replacements for Further
         Securities issued pursuant to Condition 14 and where applicable any
         Global Security issued in respect thereof and, where the context
         requires or admits, includes the Receipts issued in respect of any
         Further Securities;

         "Global Security" means the Original Global Bond and/or any other
         global bond or note issued in respect of the Further Securities of any
         series and includes any replacements for Global Securities issued
         pursuant to Condition 14;

         "Holders" means the several persons who are for the time being holders
         of the Securities (being, in the case of Bearer Securities, the bearers
         thereof and, in the case of Registered Securities, the several persons
         whose names are entered in the register of holders of the Registered
         Securities as the holders thereof) and the words "holder" and "holders"
         and related expressions shall (where appropriate) be construed
         accordingly;

         "indebtedness for borrowed money" has the meaning set out in Condition
         4;

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

<PAGE>

                                        4

         "Original Bearer Bonds" means those of the Original Bonds which are for
         the time being in bearer form;

         "Original Bondholders" means the several persons who are for the time
         being holders of the Original Bonds and, where the context so requires
         or admits, shall include the Original Receiptholders;

         "Original Bonds" means the bonds (whether in bearer or registered form)
         comprising the said (pound)200,000,000 9 1/4 per cent. Bonds due 2020
         of the Issuer hereby constituted or the principal amount thereof for
         the time being outstanding or, as the context may require, a specific
         number thereof and includes any replacements for Original Bonds issued
         pursuant to Condition 14, where the context so requires or admits any
         Original Receipts and (except for the purposes of Clause 3) the
         Original Global Bond;

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

         "Original Coupons" means the Coupons appertaining to the Original
         bearer Bonds;

         "Original Global Bond" means the global bond in respect of the Original
         Bearer Bonds to be issued pursuant to Clause 3(A) in the form or
         substantially in the form set out in the First Schedule;

         "Original Receiptholders" means the holders of the Original Receipts;

         "Original Receipts" means the Receipts appertaining to the Original
         Bonds;

         "Original Registered Bonds" means those of the Original Bonds which are
         for the time being in registered form;

         "Original Talons" means the Talons appertaining to the Original Bearer
         Bonds in definitive form;

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

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

         (b)      those Securities in respect of which the date for redemption
                  in accordance with the Conditions has occurred and the
                  redemption moneys (including premium (if any) and all interest
                  payable thereon) have been duly paid to the Trustee or to the
                  Principal Paying Agent in the manner provided in the Agency
                  Agreement (and where appropriate notice to that effect has
                  been given to the relative Holders in accordance with
                  Condition 15) and remain available for payment against
                  presentation of the relevant Securities and/or Coupons;

<PAGE>
                                        5

         (c)      those Securities which have been purchased and cancelled in
                  accordance with Condition 7;

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

         (e)      those mutilated or defaced Securities which have been
                  surrendered and cancelled and in respect of which replacements
                  have been issued pursuant to Condition 14;

         (f)      (for the purpose only of ascertaining the principal amount of
                  the Securities outstanding and without prejudice to the status
                  for any other purpose of the relevant Securities) those
                  Securities which are alleged to have been lost, stolen or
                  destroyed and in respect of which replacements have been
                  issued pursuant to Condition 14;

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

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

         PROVIDED THAT for each of the following purposes, namely:

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

         (ii)     the determination of how many and which Securities are for the
                  time being outstanding for the purposes of Clause 8(A),
                  Conditions 11, 12 and 16 and paragraphs 2, 5, 6 and 9 of the
                  Fourth Schedule;

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

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

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

         "Paying Agents" means, in relation to the Securities of any series, the
         several institutions (including where the context permits the Principal
         Paying Agent) at their respective specified offices initially appointed
         as paying agents in relation to such Securities by the Issuer pursuant

<PAGE>

                                        6

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

         "PES Licence" has the meaning set out in Condition 8(d)(vii)(A)(aa);

         "PES Subsidiary" has the meaning set out in Condition 4;

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

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

         "Principal Subsidiary" means at any time a Subsidiary of the Issuer
         (not being an Excluded Subsidiary or any other Subsidiary of the Issuer
         whose only indebtedness for borrowed money is Project Finance
         Indebtedness):

        (a)       whose net  profits  before  tax  attributable  to the  Issuer
                  (consolidated  in the case of a  Subsidiary  which itself  has
                  Subsidiaries and which in the normal course,  prepares con-
                  solidated  accounts) or whose gross assets (consolidated in
                  the case of a  Subsidiary  which  itself has  Subsidiaries)
                  represent  in each case (or, in the case of a Subsidiary
                  acquired after the end of the financial  period to which the
                  then latest relevant  audited  consolidated  accounts of the
                  Issuer and its  Subsidiaries  relate,  are equal to) not less
                  than 20 per cent. of the  consolidated  net profits before tax
                  attributable to the shareholders of the Issuer, or, as the
                  case may be,  consolidated gross assets, of the Issuer and its
                  Subsidiaries taken as a whole, all as calculated  respectively
                  by reference to the then latest audited accounts (consolidated
                  or, as the case may be,  unconsolidated)  of such  Subsidiary
                  and the then  latest  audited consolidated accounts of the
                  Issuer and its Subsidiaries, provided that:

                  (i)      in the case of a Subsidiary acquired after the end of
                           the financial period to which the then latest
                           relevant audited consolidated accounts relate, the
                           reference to the then latest audited consolidated
                           accounts for the purposes of the calculation above
                           shall, until consolidated accounts for the financial
                           period in which the acquisition is made have been
                           prepared and audited as aforesaid, be deemed to be a
                           reference to such first-mentioned accounts as if such
                           Subsidiary had been shown in such accounts by
                           reference to its then latest relevant audited
                           accounts, adjusted as deemed appropriate by the
                           Auditors; and

(ii)                       if, in the case of a Subsidiary which itself has
                           Subsidiaries, no consolidated accounts are prepared
                           and audited, its consolidated net profits before tax
                           attributable to the Issuer and consolidated gross
                           assets shall be determined on the basis of pro forma

<PAGE>

                                       7

                           consolidated accounts of the relevant Subsidiary and
                           its Subsidiaries prepared and audited for this
                           purpose by the Auditors or the auditors for the time
                           being of the relevant Subsidiary; or

         (b)      to which is  transferred  all or  substantially  all of the
                  business,  undertaking  and assets of a Subsidiary of the
                  Issuer which immediately prior to such transfer is a Principal
                  Subsidiary, provided that the transferor Subsidiary shall upon
                  such transfer  forthwith cease to be a Principal  Subsidiary
                  and the transferee  Subsidiary shall cease to be a Principal
                  Subsidiary  pursuant to this sub-paragraph (b) on the date on
                  which the consolidated  accounts of the Issuer and its  Sub-
                  sidiaries  for the  financial  period  current at the date of
                  such transfer have been prepared and audited as  aforesaid but
                  so that such  transferor  Subsidiary  or such  transferee Sub-
                  sidiary may be a Principal Subsidiary on or at any time after
                  the date on which such  consolidated  accounts  have been
                  prepared and audited as aforesaid by virtue of the  provisions
                  of  sub-paragraph (a) above or before, on or at any time after
                  such date by virtue of the provisions of this sub-paragraph
                  (b) or sub-paragraph (c) below; or

         (c)      to which is transferred a business,  an undertaking  or assets
                  which,  taken together with the business,  undertaking and
                  assets of the  transferee  Subsidiary,  generated (or, in the
                  case of the  transferee  Subsidiary  being acquired after the
                  end of the financial period to which the then latest relevant
                  audited  consolidated  accounts of the Issuer and its  Sub-
                  sidiaries relate, generate net profits before tax attributable
                  to the Issuer equal to) not less than 20 per cent. of the con-
                  solidated  net profits before tax  attributable to the share-
                  holders of the Issuer,  or represent (or, in the case afore-
                  said,  are equal to) not less than 20 per cent. of the con-
                  solidated gross assets, of the Issuer and its Subsidiaries
                  taken as a whole, all as calculated as referred to in
                  sub-paragraph  (a) above,  provided that the transferor  Sub-
                  sidiary (if a Principal  Subsidiary)  shall upon such transfer
                  forthwith  cease to be a Principal Subsidiary unless
                  immediately following such transfer its business,  undertaking
                  and assets generate (or, in the case aforesaid,  generate net
                  profits  before tax  attributable  to the Issuer equal to) not
                  less than 20 per cent. of the consolidated net profits before
                  tax  attributable to the shareholders of the Issuer,  or its
                  assets represent (or, in the case aforesaid,  are equal to)
                  not less than 20 per cent. of the consolidated gross assets,
                  of the Issuer and its Subsidiaries  taken as a whole,  all as
                  calculated as referred to in  sub-paragraph (a) above, and the
                  transferee Subsidiary shall cease to be a Principal Subsidiary
                  pursuant  to this  sub-paragraph  (c) on the date on which the
                  consolidated  accounts  of the Issuer  and its  Subsidiaries
                  for the  financial  period  current at the date of such
                  transfer have been prepared and audited but so that such
                  transferor  Subsidiary or such transferee  Subsidiary may be
                  a Principal  Subsidiary on or at any time after the date on
                  which such  consolidated  accounts have been prepared and
                  audited as aforesaid by virtue of the provisions of sub-
                  paragraph  (a) above or before,  on or at any time after such
                  date by virtue of the provisions of this sub-paragraph (c) or
                  sub-paragraph (b) above,

         Provided that, in calculating the consolidated net profits before tax
         attributable to the shareholders of the Issuer or consolidated gross
         assets of the Issuer and the Subsidiaries taken as a whole, amounts in
         respect of minority interests shall only be excluded if and to the

<PAGE>

                                       8

         extent that such amounts have not been already excluded in the course
         of preparation of the relevant consolidated accounts.

         For the purposes of this definition if there shall at any time not be
         any relevant audited consolidated accounts of the Issuer and its
         Subsidiaries, references thereto herein shall be deemed to refer to a
         consolidation by the Auditors of the relevant audited accounts of the
         Issuer and its Subsidiaries.

         A report by the Auditors that in their opinion a Subsidiary of the
         Issuer is or is not or was or was not at any particular time or
         throughout any specified period a Principal Subsidiary shall, in the
         absence of manifest error, be conclusive and binding on all parties;

         "Project Finance Indebtedness" has the meaning set out in Condition 4;

         "Receiptholders" means the holders of the Receipts;

         "Receipts" means the non-transferable receipts (if any) for Securities
         to be issued by Paying Agents to the Holders pursuant to Condition
         8(c);

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

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

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

         "Relevant Date" has the meaning set out in Condition 9;

         "Relevant Indebtedness" has the meaning set out in Condition 4;

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

         "Restructuring Event" has the meaning set out in Condition 8(d)(vii);

         "Security Interest" has the meaning set out in Condition 4;

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

<PAGE>
                                       9

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

         "Successor" means, in relation to the Agent Bank, the Principal Paying
         Agent, the other Paying Agents, the Reference Banks, the Registrar and
         the Transfer Agents, any successor to any one or more of them in
         relation to the Securities of the relevant series which shall become
         such pursuant to the provisions of these presents, the relative Agent
         Bank Agreement and/or the relative Agency Agreement (as the case may
         be) and/or such other or further agent bank, principal paying agent,
         paying agents, reference banks, registrar and/or transfer agents (as
         the case may be) in relation to such Securities as may (with the prior
         approval of, and on terms previously approved by, the Trustee in
         writing) from time to time be appointed as such, and/or, if applicable,
         such other or further specified offices (in the former case being
         within the same city as those for which they are substituted) as may
         from time to time be nominated, in each case by the Issuer, and (except
         in the case of the initial appointments and specified offices made
         under and specified in the Conditions, the relative Agent Bank
         Agreement and/or the relative Agency Agreement, as the case may be)
         notice of whose appointment or, as the case be) may be, nomination has
         been given to the relevant Holders pursuant to Clause 13(xiii) in
         accordance with Condition 15;

         "Talons" means the talons appertaining to, and exchangeable in
         accordance with the provisions therein contained for further Coupons
         appertaining to, the Bearer Securities of any relevant series in
         definitive form and includes any replacements for Talons issued
         pursuant to Condition 14;

         "The Stock Exchange" means, in relation to the Securities of any
         relevant series, the stock exchange or exchanges (if any) on which such
         Securities are quoted or listed on the issue thereof;

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

         "Transfer Agents" means, in relation to the Securities of any relevant
         series (being, or which are exchangeable for, Registered Securities),
         the institutions at their respective specified offices initially
         appointed as transfer agents in relation to such Securities by the
         Issuer pursuant to the relative Agency Agreement and/or, if applicable,
         any Successor transfer agents in relation to such Securities;

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

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

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

<PAGE>

                                       10

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

(B)      (i)      All references in these presents to principal and/or
                  premium and/or interest in respect of the Securities or to any
                  moneys payable by the Issuer under these presents shall be
                  deemed to include a reference to any additional amounts which
                  may be payable under Condition 9 or, if applicable, under any
                  undertaking or covenant given pursuant to Clause 13(xv) or
                  Clause 20(A)(2)(ii).

         (ii)     All references in these presents to principal or principal
                  amount shall, unless the context otherwise requires, be deemed
                  to include the Redemption Price (as defined in Condition 7).

         (iii)    All references in these presents to "pounds", "sterling",
                  "pounds sterling" or the sign "(pound)" shall be construed as
                  references to the lawful currency for the time being of the
                  United Kingdom.

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

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

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

         (vii)    All references in these presents to taking proceedings against
                  the Issuer shall be deemed to include references to proving in
                  the winding up of the Issuer.

         (viii)   Wherever in these presents the Issuer is required to give an
                  opinion or make any determination, the Issuer shall, in so
                  doing, be entitled to rely on advice from professional
                  advisers but so that, as between the Issuer, the Trustee, the
                  Holders and the Couponholders, the Issuer alone shall be
                  liable as to the validity of such opinion or determination.

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

<PAGE>

                                       11

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

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

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

(A)      THE aggregate principal amount of the Original Bonds is limited to
         (pound)200,000,000.

(B)      The  Issuer  covenants  with the  Trustee  that it will,  in accordance
         with these  presents,  on the due date for the final maturity of the
         Original  Bonds  provided for in the  Conditions,  or on such earlier
         date as the same or any part thereof may become immediately due and
         repayable  thereunder,  pay or procure to be paid unconditionally to or
         to the order of the Trustee in pounds sterling in London in immediately
         available  funds the principal  amount of the Original  Bonds repayable
         on that date and shall in the  meantime  and until  such date  (both
         before  and  after any judgment or other  order of a court of competent
         jurisdiction)  pay or procure to be paid  unconditionally  to or to the
         order of the Trustee as aforesaid  interest (which shall accrue from
         day to day) on the principal  amount of the Original  Bonds at the rate
         of 9 1/4 per cent.  per annum payable  (less tax, if  appropriate)
         annually in arrear on 17th  January,  the first such payment to be made
         on 17th January, 1996 and to amount to a full year's interest PROVIDED
         THAT:

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

        (ii)      every payment of interest in respect of the Original
                  Registered Bonds to the relevant Original Bondholders as
                  provided in the Conditions (whether by the Issuer or the
                  Registrar) shall operate in satisfaction pro tanto of the
                  relative covenant by the Issuer in this Clause;

        (iii)     in any case where  payment of  principal is not made to the
                  Trustee or the  Principal  Paying Agent on or before the due
                  date, interest shall  continue to accrue on the principal
                  amount of the Original Bonds (both before and after any
                  judgment or other order of a court of competent  jurisdiction)
                  at the rate aforesaid (or, if higher,  the rate of interest on
                  judgment debts for the time being provided by English law) up
                  to and including the date which the Trustee  determines to be
                  the date on and after which payment is to be made to the
                  Original  Bondholders in respect  thereof as stated in a
                  notice given to the Original  Bondholders  in accordance  with

<PAGE>
                                       12

                  Condition 15 (such date to be not later than 30 days after the
                  day on which the whole of such  principal  amount,  together
                  with an amount equal to the interest which has accrued and is
                  to accrue  pursuant to this proviso up to and including that
                  date, has been received by the Trustee or the Principal Paying
                  Agent);

         (iv)     in any case  where  payment  of the whole or any part of the
                  principal amount of any Original  Bond is  improperly withheld
                  or refused upon due presentation  thereof (other than in
                  circumstances  contemplated by proviso (iii) above) interest
                  shall accrue on that  principal  amount  payment of which has
                  been so withheld or refused  (both before and after any
                  judgment or other order of a court of competent  jurisdiction)
                  at the rate aforesaid  (or, if higher, the rate of interest on
                  judgment  debts for the time being  provided by English law)
                  from and  including the date of such withholding or refusal up
                  to and including the date on which,  upon further presentation
                  of the relevant  Original Bond,  payment of the full amount
                  (including interest as aforesaid) in pounds  sterling  payable
                  in respect of such Original Bond is made or (if  earlier) the
                  seventh day after  notice is given to the  relevant  Original
                  Bondholder (either individually or in accordance with
                  Condition 15) that the full amount  (including  interest as
                  aforesaid) in pounds  sterling  payable in respect of such
                  Original Bond is available for payment,  provided  that, upon
                  farther presentation thereof being duly made, such payment is
                  made.

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

         TRUSTEE'S REQUIREMENTS REGARDING PAYING AGENTS, REGISTRAR AND TRANSFER
AGENTS

(C)      At any time after an Event of Default or a Potential Event of Default
         shall have occurred or the Securities shall otherwise have become due
         and repayable or the Trustee shall have received any money which it
         proposes to pay under Clause 9 to the Holders and/or Couponholders, the
         Trustee may:

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

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

<PAGE>

                                       13

                           Coupons and all sums,  documents and records held by
                           them in respect,  of Securities and Coupons on behalf
                           of the Trustee; or

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

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

        FURTHER ISSUES

(D)     (i)       The Issuer shall be at liberty from time to time (but
                  subject always to the provisions of these presents) without
                  the consent of the Holders or Couponholders to create and
                  issue further bonds or notes (whether in bearer or registered
                  form) either (a) ranking pari passu in all respects (or in all
                  respects save for the first payment of interest thereon), and
                  so that the same shall be consolidated and form a single
                  series, with the Original Bonds and/or the Further Securities
                  of any series or (b) upon such terms as to ranking, interest,
                  conversion, redemption and otherwise as the Issuer may at the
                  time of issue thereof determine.

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

         (iii)    A memorandum of every such supplemental Trust Deed shall be
                  endorsed by the Trustee on this Trust Deed and by the Issuer
                  on its duplicate of this Trust Deed.
<PAGE>
                                       14

         (iv)     Whenever it is proposed to create and issue any Further
                  Securities the Issuer shall give to the Trustee not less than
                  l4 days' notice in writing of its intention so to do stating
                  the amount of further bonds or notes proposed to be created
                  and issued.

(E)      Any Further Securities not forming a single series with the Original
         Bonds or Further Securities of any series shall form a separate series
         and accordingly, unless for any purpose the Trustee in its absolute
         discretion shall otherwise determine, the provisions of sub-clause (C)
         of this Clause and of Clauses 4 to 21 (both inclusive) and 22(B) and
         the Third and Fourth Schedules shall apply mutatis mutandis separately
         and independently to each series of the Securities and in such Clauses
         and Schedules the expressions "Securities", Holders", "Coupons",
         "Couponholders", "Receipts", "Receiptholders" and "Talons" shall be
         construed accordingly.

3.        FORM AND ISSUE OF ORIGINAL BONDS AND ORIGINAL COUPONS

(A)       THE  Original  Bearer  Bonds  shall be  represented  initially  by the
          Original Global Bond which the Issuer shall issue to a bank depositary
          common to both Euroclear and Cedel on terms that such depositary shall
          hold the same for the account of the persons  who would  otherwise  be
          entitled to receive  the  Original  Bearer  Bonds in  definitive  form
          ("Definitive  Original  Bearer Bonds") (as notified to such depositary
          by UBS Limited on behalf of the  Managers of the issue of the Original
          Bonds) and the successors in title to such persons as appearing in the
          records of Euroclear and Cedel for the time being.

(B)       The  Original  Global  Bond  shall be  printed or typed in the form or
          substantially in the form set out in the First Schedule.  The Original
          Global Bond shall be in the aggregate  principal  amount shown therein
          and shall be signed manually by a person duly authorised by the Issuer
          on behalf of the Issuer and shall be  authenticated by or on behalf of
          the Principal  Paying Agent.  The Original Global Bond so executed and
          authenticated shall be a binding and valid obligation of the Issuer.

(C)       The Issuer shall issue the Definitive  Original Bearer Bonds (together
          with the  unmatured  Original  Coupons  attached)  in exchange for the
          Original  Global  Bond in  accordance  with  the  provisions  thereof.
          Pending exchange of the entire principal amount of the Original Global
          Bond the holder thereof shall, subject to the terms thereof, be deemed
          to be the holder of the Original Bearer Bonds and the Original Coupons
          represented thereby for all purposes.

(D)       (i)   The Definitive Original Bearer Bonds and the Original Coupons
                shall be to bearer in the respective  forms or  substantially in
                the respective forms set out in Part I of the Second Schedule
                and the Definitive Original Bearer Bonds shall be  issued in the
                denominations of (pound)1,000,  (pound)10,000 and (pound)100,000
                each  (serially   numbered)  and  shall  be  endorsed  with the
                Conditions. Title to the Definitive Original Bearer Bonds and
                the Original Coupons shall pass by delivery.

         (ii)   The Original Registered Bonds shall be issued in definitive
                registered form, shall be in the form or substantially in the
                form set out in Part II of the Second Schedule, shall be in

<PAGE>

                                       15

                the denomination and transferable in units of (pound)1 each or
                integral multiples thereof and shall be endorsed with the
                Conditions. Title to the Original Registered Bonds shall pass
                upon the registration of transfers in respect thereof in
                accordance with the provisions of these presents.

(E)      The  Definitive  Original  Bearer  Bonds  and  the  Original Registered
         Bonds  shall  be  signed  manually  or in  facsimile  by a Director of
         the Issuer on behalf of the Issuer and, in the case of the Definitive
         Original  Bearer Bonds,  shall be  authenticated by or on behalf of the
         Principal Paying Agent. The Issuer may use the facsimile signature of
         any person who at the date such signature is affixed is a Director  of
         the Issuer  notwithstanding  that at the time of issue of  any of the
         Definitive Original Bearer Bonds or the Original Registered Bonds he
         may have  ceased  for any  reason  to be the  holder  of such  office.
         The  Definitive  Original Bearer Bonds so executed  and authenticated,
         the Original Registered  Bonds so executed,  and the Original  Coupons,
         upon execution and  authentication of the relevant Definitive  Original
         Bearer  Bonds, shall be binding  and  valid obligations of the Issuer.
         The Original Coupons shall not be signed.

4.       FEES, DUTIES AND TAXES

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

5.       COVENANT OF COMPLIANCE

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

         The Trustee shall hold the benefit of this covenant upon trust for
         itself and the Holders according to its and their respective interests.

6.       CANCELLATION OF SECURITIES AND RECORDS

(A)      THE Issuer shall procure that all Securities (i) redeemed or (ii)
         purchased by or on behalf of the Issuer or any Subsidiary of the Issuer
         and surrendered for cancellation or (iii) which, being mutilated or
         defaced, have been surrendered and replaced pursuant to Condition 14 or
         (iv) exchanged as provided in these presents (together in each case
         with all unmatured Coupons attached thereto or delivered therewith) and
         all Coupons paid in accordance with the Conditions or which, being
         mutilated or defaced, have been surrendered and replaced pursuant to

<PAGE>

                                       16

         Condition 14 and all Talons exchanged in accordance with the Conditions
         for further Coupons shall forthwith be cancelled by or on behalf of the
         Issuer and a certificate stating:

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

         (b)      the serial numbers of such Bearer Securities in definitive
                  form;

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

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

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

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

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

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

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

(B)      The Issuer shall procure (i) that the Principal Paying Agent shall keep
         a full and complete  record of all  Securities  and Coupons (other than
         serial  numbers of  Coupons)  and of their  redemption,  purchase by or
         on behalf of the Issuer or any Subsidiary of the  Issuer, cancellation,
         payment or  exchange  (as the case may be) and of all  replacement
         securities  or coupons or talons issued in substitution for lost,
         stolen, mutilated, defaced or destroyed Securities or Coupons (ii) that

<PAGE>

                                       17

         the Principal  Paying  Agent  shall in respect  of the  Coupons of each
         maturity retain (in the case of Coupons  other than Talons)  until the
         expiry of 10 years from the Relevant  Date in  respect of such Coupons
         and (in the case of  Talons) indefinitely  either all paid or exchanged
         Coupons  of that  maturity or a list of the  serial  numbers of Coupons
         of that maturity still remaining  unpaid or unexchanged  and (iii) that
         such records and Coupons (if any) shall be made available to the
         Trustee at all reasonable times.

7.       ENFORCEMENT

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

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

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

8.       PROCEEDINGS, ACTION AND INDEMNIFICATION

(A)      THE Trustee shall not be bound to take any proceedings mentioned in
         Clause 7(A) or any other action in relation to these presents unless
         respectively directed or requested to do so (i) by an Extraordinary
         Resolution or (ii) in writing by the holders of at least one-quarter in
         principal amount of the Securities then outstanding and in either case
         then only if it shall be indemnified to its satisfaction against all
         Liabilities to which it may thereby render itself liable or which it
         may incur by so doing.

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

9.       APPLICATION OF MONEYS

         ALL moneys received by the Trustee under these presents shall, unless
         and to the extent attributable in the opinion of the Trustee to a
         particular series of the Securities, be apportioned pari passu and
         rateably between each series of the Securities, and all moneys received
         by the Trustee under these presents to the extent attributable in the
         opinion of the Trustee to a particular series of the Securities or

<PAGE>
                                       18

         which are apportioned to such series as aforesaid (including any moneys
         which represent principal, premium or interest in respect of Securities
         or Coupons which have become void under Condition 10) shall be held by
         the Trustee upon trust to apply them (subject to Clause 11):

         FIRST in payment or satisfaction of all amounts then due and unpaid
         under Clauses 14 and/or 15(J) to the Trustee and/or any Appointee;

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

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

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

         Without prejudice to this Clause 9, if the Trustee holds any moneys
         which represent principal, premium (if any) and interest in respect of
         the Securities which have become void or in respect of which claims
         have been prescribed under Condition 10, the Trustee will hold such
         moneys on the above trusts.

10.      NOTICE OF PAYMENTS

         THE Trustee shall give notice to the relevant Holders in accordance
         with Condition 15 of the day fixed for any payment to them under Clause
         9. Such payment may be made in accordance with Condition 6 and any
         payment so made shall be a good discharge to the Trustee.

11.      INVESTMENT BY TRUSTEE

(A)      IF the amount of the moneys at any time available for the payment of
         principal, premium (if any) and interest in respect of the Securities
         under Clause 9 shall be less than 10 per cent. of the principal amount
         of the Securities then outstanding the Trustee may at its discretion
         invest such moneys in some or one of the investments authorised below.
         The Trustee at its discretion may vary such investments and may
         accumulate such investments and the resulting income until the
         accumulations, together with any other funds for the time being under
         the control of the Trustee and available for such purpose, amount to at
         least 10 per cent. of the principal amount of the Securities then
         outstanding and then such accumulations and funds shall be applied
         under Clause 9.

(B)      Any moneys which  under the trusts of these presents ought to or may be
         invested by the Trustee may be invested in the name or under the
         control of the Trustee in any  investments  or other assets in any part
         of the world  whether or not they produce income or by placing the same
         on deposit in the name or under the  control  of the  Trustee at such
         bank or other financial institution and in such currency as the Trustee
         may think fit.  If such bank or  financial  institution  is the Trustee

<PAGE>
                                       19

         or a Subsidiary,  holding or associated  company of the Trustee it need
         only account for an amount of interest equal to the largest amount of
         interest  payable by it on such a deposit to an  independent customer.
         The Trustee may at any time vary any such investments for or into other
         investments  or convert any moneys so deposited into any other currency
         and shall not be responsible for any loss resulting from any such
         investments or deposits, whether due to depreciation in value, fluctua-
         tions in exchange rates or otherwise.

12.      PARTIAL PAYMENTS

         UPON any payment under Clause 9 (other than payment in full against
         surrender of a Security or Coupon) the Security or Coupon in respect of
         which such payment is made shall be produced to the Trustee or the
         Paying Agent by or through whom such payment is made and the Trustee
         shall or shall cause such Paying Agent to enface thereon a memorandum
         of the amount and the date of payment but the Trustee may in any
         particular case or generally in relation to Registered Securities
         dispense with such production and enfacement upon such indemnity being
         given as it shall think sufficient.

13.      COVENANTS BY THE ISSUER

         SO long as any of the Securities remains outstanding (or, in the case
         of paragraphs (viii), (ix), (xiii) to (xvi) inclusive and (xviii), so
         long as any of the Securities or Coupons remains liable to
         prescription) the Issuer covenants with the Trustee that it shall:

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

         (ii)     give or procure to be given to the Trustee such opinions,
                  certificates, information and evidence as it shall properly
                  require and in such form as it shall properly require
                  (including without limitation the procurement by the Issuer of
                  all such certificates called for by the Trustee pursuant to
                  Clause 15(C)) for the purpose of the proper discharge or
                  exercise of the duties, trusts, powers, authorities and
                  discretions vested in it under these presents or by operation
                  of law;

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

         (iv)     at all times keep and procure its Subsidiaries to keep proper
                  books of account and following the occurrence of an Event of
                  Default or a Potential Event of Default or if the Trustee has
                  grounds to believe that an Event of Default or a Potential
                  Event of Default has occurred or is likely to occur allow and
                  procure its Subsidiaries to allow the Trustee and any person
                  appointed by the Trustee to whom the Issuer or the relevant
                  Subsidiary (as the case may be) shall have no reasonable
                  objection free access to such books of account at all
                  reasonable times during normal business hours;
<PAGE>
                                       20

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

         (vi)     forthwith give notice in writing to the Trustee of the coming
                  into existence of any Security Interest which would require
                  any security to be given to any series of the Securities
                  pursuant to Condition 4 or of the occurrence of any Event of
                  Default or any Potential Event of Default or any Restructuring
                  Event;

         (vii)    give to the Trustee (a) within seven days after demand by the
                  Trustee therefor and (b) (without the  necessity  for any such
                  demand) promptly after the publication of its audited accounts
                  in respect of each  financial  period commencing with the
                  financial  period ending 3lst March, 1995 and in any event not
                  later than 180 days after the end of each such  financial
                  period a certificate  of the Issuer signed by two Directors of
                  the Issuer to the effect that as at a date not more than seven
                  days before  delivering such certificate (the "relevant date")
                  there did not exist and had  not  existed since  the relevant
                  date of the previous certificate (or in the  case of the first
                  such certificate  the date hereof) any Event of Default or any
                  Potential Event of Default or any  Restructuring  Event (or
                  if such exists or existed  specifying  the same) and that
                  during the period from and  including  the relevant date of
                  the last such  certificate  (or in the case of the first  such
                  certificate  the date  hereof) to and  including the relevant
                  date of such  certificate the Issuer has complied with all its
                  obligations contained in these presents or (if such is not the
                  case) specifying the respects in which it has not complied;

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

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

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

         (xi)     in the event of the unconditional payment to the Principal
                  Paying Agent of any sum due in respect of the Securities or
                  any of them or any of the Coupons being made after the due
                  date for payment thereof forthwith give or procure to be given
                  notice to the relevant Holders in accordance with Condition 15
                  that such payment has been made;

<PAGE>
                                       21

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

         (xiii)   give notice to the Holders in accordance with Condition 15
                  of any  appointment,  resignation  or  removal  of any Agent
                  Bank,  Reference Bank,  Paying Agent,  Registrar or Transfer
                  Agent (other than the appointment of the initial Agent Bank,
                  Reference  Banks,  Paying  Agents,  Registrar  and  Transfer
                  Agents) after having obtained the prior written  approval of
                  the  Trustee  thereto or any  change of any Paying  Agent's,
                  Registrar's or Transfer Agent's specified office and (except
                  as  provided  by the  Agent  Bank  Agreement  or the  Agency
                  Agreement or the  Conditions) at least 30 days prior to such
                  event taking effect;  PROVIDED ALWAYS THAT so long as any of
                  the  Securities  remains  outstanding  in  the  case  of the
                  termination  of the  appointment  of  the  Agent  Bank,  the
                  Registrar  or a  Transfer  Agent  or so  long  as any of the
                  Securities or Coupons  remains liable to prescription in the
                  case of the  termination of the appointment of the Principal
                  Paying Agent no such  termination  shall take effect until a
                  new  Agent  Bank,  Registrar,  Transfer  Agent or  Principal
                  Paying  Agent  (as the case may be) has  been  appointed  on
                  terms previously approved in writing by the Trustee;

         (xiv)    obtain the prior written approval of the Trustee to, and
                  promptly give to the Trustee two copies of, the form of every
                  notice given to the Holders in accordance with Condition 15
                  (such approval, unless so expressed, not to constitute
                  approval for the purposes of Section 57 of the Financial
                  Services Act 1986 of the United Kingdom of any such notice
                  which is an investment advertisement (as therein defined));

          (xv)    if payments of principal,  premium or interest in respect of
                  the  Securities  or the Coupons by the Issuer  shall  become
                  subject   generally  to  the  taxing   jurisdiction  of  any
                  territory  or  any  political  sub-division  thereof  or any
                  authority  therein or thereof having power to tax other than
                  or in addition to the United  Kingdom or any such  political
                  sub-division  thereof  or  any  such  authority  therein  or
                  thereof,  as soon as  reasonably  practicable  after  having
                  become  aware  thereof  notify the Trustee of such event and
                  (unless the Trustee otherwise agrees) enter forthwith into a
                  Trust Deed  supplemental  to this Trust Deed,  giving to the
                  Trustee  an  undertaking  or  covenant  in form  and  manner
                  satisfactory  to the Trustee in terms  corresponding  to the
                  terms of Condition 9 with the  substitution  for (or, as the
                  case may be, the addition to) the references  therein to the
                  United Kingdom or any political  sub-division thereof or any
                  authority   therein  or  thereof  having  power  to  tax  of
                  references  to that  other or  additional  territory  or any
                  political  sub-division  thereof or any authority therein or
                  thereof  having  power to tax to whose  taxing  jurisdiction
                  such payments  shall have become  subject as aforesaid  such

<PAGE>
                                       22

                  Trust Deed also (where  applicable) to modify Condition 7(c)
                  so that such Condition  shall make reference to the other or
                  additional territory, any political sub-division thereof and
                  any authority therein or thereof having power to tax;

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

         (xvii)   in order to enable the Trustee to ascertain the principal
                  amount of Securities of each series for the time being
                  outstanding for any of the purposes referred to in the proviso
                  to the definition of "outstanding" in Clause 1, deliver to the
                  Trustee forthwith upon being so requested in writing by the
                  Trustee a certificate in writing signed by two Directors of
                  the Issuer setting out the total number and aggregate
                  principal amount of Securities of each series which:

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

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

         (xviii)  procure its Subsidiaries to comply with all (if any)
                  applicable provisions of Condition 7(d);

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

         (xx)     if, in accordance with the provisions of the Conditions,
                  interest in respect of Bearer Securities denominated in U.S.
                  dollars becomes payable at the specified office of any Paying
                  Agent in the United States of America promptly give notice
                  thereof to the Holders in accordance with Condition 15;

         (xxi)    give to the Trustee at the same time as sending to it the
                  certificates referred to in paragraph (vii) above and in any
                  event not later than 180 days after the last day of each
                  financial period of the Issuer, a certificate by the Auditors
                  listing those Subsidiaries of the Issuer which as at the
                  relevant date (as defined in paragraph (vii) above) of the
                  relevant certificate given under paragraph (vii) above or, as
                  the case may be, as at such last day were Principal
                  Subsidiaries for the purposes of Condition 11; and

<PAGE>
                                       23

         (xxii)   give to the Trustee, as soon as reasonably practicable after
                  the acquisition or disposal of any company which thereby
                  becomes or ceases to be a Principal Subsidiary or after any
                  transfer is made to any Subsidiary of the Issuer which thereby
                  becomes a Principal Subsidiary, a certificate by the Auditors
                  to such effect;

         (xxiii)  upon due surrender in accordance with the Conditions, pay the
                  face value of all Coupons (including Coupons issued in
                  exchange for Talons) appertaining to all Securities purchased
                  by the Issuer, any Subsidiary of the Issuer, any holding
                  company of the Issuer or any other Subsidiary of any such
                  holding company;

         (xxiv)   give to the Trustee a certificate of the Auditors:

                  (a)      specifying the amount of the Capital and Reserves for
                           the purposes of Condition 4, such certificate to be
                           provided before the Issuer creates or has outstanding
                           a Security Interest in respect of any Relevant
                           Indebtedness and/or guarantees within Condition 4;

                  (b)      specifying that a Subsidiary of the Issuer satisfies
                           the provisions of Condition 4(B)(i) and (ii), such
                           certificate to be provided before or at the same time
                           as any written notice given to the Trustee by the
                           Issuer under Condition 4(B)(iii) that a Subsidiary of
                           the Issuer is an Excluded Subsidiary; and

                  (c)      specifying the amount of the Capital and Reserves for
                           the purposes of Condition 11(c), such certificate to
                           be provided within 10 days of any request by the
                           Trustee for its provision;

         (xxv) give to the Trustee a certificate of two Directors of the Issuer:

                  (a)      specifying the aggregate amount of any Relevant
                           Indebtedness of the Issuer or a PES subsidiary or
                           guaranteed by the Issuer or a PES Subsidiary and in
                           respect of which a Security Interest or Security
                           Interests has or have been created or is or are
                           outstanding, such certificate to be provided before
                           the Issuer or a PES Subsidiary creates or has
                           outstanding any new Security interest;

                  (b)      specifying details of any modification to the terms
                           and conditions of the PES Licence, such certificate
                           to be provided promptly upon any such modification
                           being made; and

                  (c)      specifying any higher figure determined by the
                           Director (as defined in the PES Licence) as is
                           mentioned in Condition 11, such certificate to be
                           provided within 5 days of the Director determining
                           such figure by notice in writing to the Secretary of
                           State (as defined in the PES Licence) and the Issuer;
                           and
<PAGE>
                                       24

         (xxvi)   give notice to the Trustee as soon as practicable after its
                  Directors or the Directors of any PES Subsidiary have resolved
                  to give any Security Interest in respect of any Relevant
                  Indebtedness or guarantee as described in Condition 4.

14.      REMUNERATION AND INDEMNIFICATION OF TRUSTEE

(A)      THE Issuer shall pay to the Trustee  remuneration  for its services as
         trustee as from the date of this Trust Deed,  such  remuneration to be
         at such rate as may from time to time be agreed between the Issuer and
         the  Trustee.  Such  remuneration  shall be payable in advance on 17th
         January  in each year,  the first such  payment to be made on the date
         hereof.  Upon  the  issue  of  any  Further  Securities  the  rate  of
         remuneration in force  immediately prior thereto shall be increased by
         such  amount as shall be agreed  between  the Issuer and the  Trustee,
         such increased  remuneration  to be calculated from such date as shall
         be agreed as aforesaid. The rate of remuneration in force from time to
         time may upon the final  redemption of the whole of the  Securities of
         any series be reduced by such  amount as shall be agreed  between  the
         Issuer and the Trustee,  such reduced  remuneration  to be  calculated
         from  such date as shall be agreed  as  aforesaid.  Such  remuneration
         shall  accrue from day to day and be payable (in  priority to payments
         to the Holders and  Couponholders)  up to and including the date when,
         all the Securities  having become due for  redemption,  the redemption
         moneys and interest  thereon to the date of redemption  have been paid
         to the Principal Paying Agent or the Trustee PROVIDED THAT if upon due
         presentation  of any  Security or Coupon or any cheque  payment of the
         moneys  due in respect  thereof is  improperly  withheld  or  refused,
         remuneration will commence again to accrue.

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

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

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

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

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

         such matters shall be determined by a merchant bank (acting as an
         expert and not as an arbitrator) selected by the Trustee and approved
         by the Issuer or failing such approval, nominated (on the application
         of the Trustee) by the President for the time being of The Law Society
         of England and Wales (the expenses involved in such nomination and the
         <PAGE>

                                       25

         fees of such merchant bank being payable by the Issuer) and the
         determination of any such merchant bank shall be final and binding upon
         the Trustee and the Issuer.

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

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

(G)      Unless otherwise specifically stated in any discharge of these presents
         the provisions of this Clause and Clause 15(J) shall continue in full
         force and effect notwithstanding such discharge.

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

15.      SUPPLEMENT TO TRUSTEE ACT 1925

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

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

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

         (C)      The Trustee may call for and shall be at liberty to accept as
                  sufficient evidence of any fact or matter or the expediency of
                  any transaction or thing a certificate signed by any two

<PAGE>
                                       26

                  Directors of the Issuer and the Trustee shall not be bound in
                  any such case to call for further evidence or be responsible
                  for any Liability that may be occasioned by it or any other
                  person acting on such certificate.

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

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

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

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

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

         (I)      The Trustee shall not be liable to any person by reason of
                  having accepted as valid or not having rejected any Security
                  or Coupon purporting to be such and subsequently found to be
                  forged or not authentic.
<PAGE>
                                       27

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

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

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

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

         (N)      The Trustee may certify whether or not any of the conditions,
                  events and acts set out in sub-paragraphs (b), (c), (e), (f),
                  (g) and (h) (both inclusive) of Condition 11 (each of which
                  conditions, events and acts shall, unless in any case the
                  Trustee in its absolute discretion shall otherwise determine,
                  for all the purposes of these presents be deemed to include
                  the circumstances resulting therein and the consequences
                  resulting therefrom) is in its opinion materially prejudicial
                  to the interests of the Holders and any such certificate shall
                  be conclusive and binding upon the Issuer, the Holders and the
                  Couponholders.

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

         (P)      In connection  with the exercise by it of any of its trusts,
                  powers,  authorities  and  discretions  under these presents
                  (including,  without limitation,  any modification,  waiver,
                  authorisation,  determination or substitution),  the Trustee
                  shall have regard to the interests of the Holders as a class
                  and, in particular  but without  limitation,  shall not have

<PAGE>
                                       28

                  regard to the  consequences  of such exercise for individual
                  Holders or Couponholders  resulting from their being for any
                  purpose  domiciled or resident  in, or  otherwise  connected
                  with,  or subject  to the  jurisdiction  of, any  particular
                  territory  or any  political  sub-division  thereof  and the
                  Trustee  shall not be  entitled  to  require,  nor shall any
                  Holder  or  Couponholder  be  entitled  to  claim,  from the
                  Issuer, the Trustee or any other person any  indemnification
                  or payment in  respect  of any tax  consequence  of any such
                  exercise upon individual Holders or Couponholders  except to
                  the extent  already  provided  for in Condition 9 and/or any
                  undertaking  given in  addition  thereto or in  substitution
                  therefor under these presents.

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

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

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

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

16. TRUSTEE'S LIABILITY
<PAGE>
                                       29

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

17.      TRUSTEE CONTRACTING WITH ISSUER

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

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

         (ii)     accepting or holding the trusteeship of any other trust deed
                  constituting or securing any other securities issued by or
                  relating to the Issuer or any such person or body corporate so
                  associated or any other office of profit under the Issuer or
                  any such person or body corporate so associated and shall be
                  entitled to retain and shall not be in any way liable to
                  account for any profit made or share of brokerage or
                  commission or remuneration or other benefit received thereby
                  or in connection therewith.

18.      WAIVER, AUTHORISATION AND DETERMINATION

(A)      THE  Trustee  may  without  prejudice  to its rights in respect of any
         subsequent breach, Event of Default or Potential Event of Default from
         time  to  time  and at any  time  but  only if and in so far as in its
         opinion  the   interests  of  the  Holders  shall  not  be  materially
         prejudiced thereby waive or authorise any breach or proposed breach by
         the Issuer of any of the  covenants or  provisions  contained in these
         presents or determine that any Event of Default or Potential  Event of
         Default  shall  not be  treated  as such  for the  purposes  of  these
         presents  PROVIDED  ALWAYS THAT the  Trustee  shall not  exercise  any
         powers  conferred on it by this Clause in contravention of any express
         direction  given by  Extraordinary  Resolution  or by a request  under
         Condition 11 but so that no such direction or request shall affect any
         waiver,  authorisation or determination  previously given or made. Any
         such waiver,  authorisation or  determination  may be given or made on
         such terms and subject to such  conditions (if any) as the Trustee may
         determine,  shall be binding on the Holders and the Couponholders and,
         if, but only if the Trustee shall so require, shall be notified by the
         Issuer to the  Holders  in  accordance  with  Condition  15 as soon as
         practicable thereafter.
<PAGE>
                                       30

         MODIFICATION

(B)      The Trustee may without the consent of the Holders or Couponholders at
         any time and from time to time  concur  with the  Issuer in making any
         modification  (i)  to  these  presents  (other  than  the  proviso  to
         paragraph 5 of the Fourth  Schedule or any of the matters  referred to
         in that proviso)  which in the opinion of the Trustee it may be proper
         to  make  PROVIDED  THAT  the  Trustee  is of the  opinion  that  such
         modification will not be materially  prejudicial to their interests of
         the Holders or (ii) to these presents if in the opinion of the Trustee
         such  modification  is of a formal,  minor or  technical  nature or to
         correct a manifest error.  Any such  modification  may be made on such
         terms and  subject  to such  conditions  (if any) as the  Trustee  may
         determine,  shall be binding  upon the Holders  and the  Couponholders
         and,  unless the Trustee  agrees  otherwise,  shall be notified by the
         Issuer to the  Holders  in  accordance  with  Condition  15 as soon as
         practicable thereafter.

19.      HOLDER OF DEFINITIVE BEARER SECURITY ASSUMED TO BE COUPONHOLDER

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

         NO NOTICE TO COUPONHOLDERS

(B)      Neither the Trustee nor the Issuer shall be required to give any notice
         to the Couponholders for any purpose under these presents and the
         Couponholders shall be deemed for all purposes to have notice of the
         contents of any notice given to the Holders in accordance with
         Condition 15.

         ENTITLEMENT TO TREAT HOLDER AS ABSOLUTE OWNER

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

20.      SUBSTITUTION
<PAGE>
                                       31

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

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

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

                  (ii)     where the New Company is incorporated, domiciled or
                           resident in, or subject generally to the taxing
                           jurisdiction of a territory other than or in addition
                           to the United Kingdom or any political sub-division
                           thereof or any authority therein or thereof having
                           power to tax, undertakings or covenants shall be
                           given by the New Company in terms corresponding to
                           the provisions of Condition 9 with the substitution
                           for (or, as the case may be, the addition to) the
                           references to the United Kingdom of references to
                           that other or additional territory in which the New
                           Company is incorporated, domiciled or resident or to
                           whose taxing jurisdiction it is subject and (where
                           applicable) Condition 7(c) shall be modified
                           accordingly;

                  (iii)    without prejudice to the rights of reliance of the
                           Trustee under the immediately following paragraph
                           (iv) the Trustee is satisfied that the relevant
                           transaction is not materially prejudicial to the
                           interests of the Holders; and

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

(B)       Any such Trust Deed or undertaking shall, if so expressed,  operate to
          release the Issuer or the previous substitute as aforesaid from all of
          its obligations qua principal  debtor under these presents.  Not later
          than 14 days after the execution of such documents and compliance with
          such requirements, the New Company shall give notice thereof in a form
          previously  approved  by the  Trustee  to the  Holders  in the  manner
          provided in Condition  15. Upon the  execution of such  documents  and

<PAGE>
                                       32

          compliance with such requirements,  the New Company shall be deemed to
          be named in these  presents  as the  principal  debtor in place of the
          Issuer (or in place of the  previous  substitute  under  this  Clause)
          under these  presents and these presents shall be deemed to be amended
          in such  manner  as shall be  necessary  to give  effect  to the above
          provisions and,  without  limitation,  references in these presents to
          the Issuer  shall,  where the context so requires,  be deemed to be or
          include references to the New Company.

21. CURRENCY INDEMNITY

         THE Issuer shall indemnify the Trustee, every Appointee, the Holders
and the Couponholders and keep them indemnified against:

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

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

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

22.      NEW TRUSTEE

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

<PAGE>
                                       33

         these presents shall as soon as practicable  thereafter be notified by
         the Issuer to the Principal Paying Agent, the Registrar,  the Transfer
         Agents and the Holders.

         SEPARATE AND CO-TRUSTEES

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

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

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

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

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

23.      TRUSTEE'S RETIREMENT AND REMOVAL

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

24.      TRUSTEE'S POWERS TO BE ADDITIONAL
<PAGE>
                                       34

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

25.      NOTICES

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

         to the Issuer:             Wetherby Road
                                    Scarcroft
                                    Leeds LS14 3HS
                                     England

                                    (Attention: the Group Company Secretary and
                                       Solicitor)
                                    Telex No. 55128

                                    Facsimile No. 0532 895611

         to the Trustee:            1 Appold Street
                                    Broadgate
                                    London EC2A 2HE
                                     England

                                    (Attention: the Managing Director)

                                    Telex No. 883341 BANTR-G

                                    Facsimile No. 0171-982 1149

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

26.      GOVERNING LAW

         THESE presents are governed by, and shall be construed in accordance
with, English law.
<PAGE>
                                       35

27.      COUNTERPARTS

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

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

<PAGE>
                                       36

                               THE FIRST SCHEDULE

                        - FORM OF ORIGINAL GLOBAL BOND -

                         YORKSHIRE ELECTRICITY GROUP plc

(Incorporated in England with limited liability under the Companies Act 1985
with registered number 2366995)

                              TEMPORARY GLOBAL BOND

                                  representing

                 (pound)[ ] in principal amount of an issue of

                    (pound)200,000,000 9 1/4 PER CENT. BONDS
                                    DUE 2020

This Bond is a temporary Global Bond without interest coupons in respect of
(pound)[ ] in principal amount of a duly authorised issue of Bonds of Yorkshire
Electricity Group plc (the "Issuer"), designated as specified in the tide hereof
(the "Bonds"), limited to the aggregate principal amount of Two Hundred Million
Pounds Sterling ((pound)200,000,000) and constituted by a Trust Deed dated 17th
January, 1995 (the "Trust Deed") between the Issuer and Bankers Trustee Company
Limited as trustee (the trustee for the time being thereof being herein called
the "Trustee"). References herein to the Conditions (or to any particular
numbered Condition) shall be to the Conditions (or that particular one of them)
set out in Part III of the Second Schedule to the Trust Deed.

1.       Promise to pay

         Subject as provided in this temporary Global Bond the Issuer promises
         to pay to the bearer the principal amount of this temporary Global Bond
         (being at the date hereof [ ] Pounds Sterling ((pound)[ ])) on 17th
         January, 2020 (or on such earlier date as the said principal amount may
         become repayable m accordance with the Conditions or the Trust Deed)
         and to pay interest annually in arrear on 17th January on the principal
         amount from time to time of this temporary Global Bond at the rate of 9
         1/4 per cent. per annum together with such other amounts (if any) as
         may be payable, all subject to and in accordance with the Conditions
         and the provisions of the Trust Deed.

2.       Exchange for definitive Bonds and purchases

         This temporary Global Bond is exchangeable in whole or in part upon the
         request of the bearer for definitive Bonds only on and subject to the
         terms and conditions set out below. The definitive Bonds to be issued
         on such exchange will be in bearer form ("Definitive Bearer Bonds") in

<PAGE>
                                       37

         the denominations of (pound)1,000, (pound)10,000 and (pound)100,000
         each with interest coupons ("Coupons") and one Talon for further
         interest coupons ("Talon") attached.

         On and after 27th February, 1995 this temporary Global Bond may be
         exchanged in whole or in part at the specified office of the Principal
         Paying Agent (or such other place as the Trustee may agree) for
         Definitive Bearer Bonds and the Issuer shall procure that the Principal
         Paying Agent shall issue and deliver, in full or partial exchange for
         this temporary Global Bond, Definitive Bearer Bonds (together with the
         Coupons and Talons appertaining thereto) in an aggregate principal
         amount equal to the principal amount of this temporary Global Bond
         submitted for exchange Provided that Definitive Bearer Bonds will be so
         issued and delivered only if and to the extent that there shall have
         been presented to the Issuer a certificate from Morgan Guaranty Trust
         Company of New York, Brussels office, as operator of the Euroclear
         System ("Euroclear") or from Cedel, societe anonyme ("Cedel")
         substantially in the form of the certificate attached as Exhibit A.

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

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

3.       Payments

         Until the entire principal amount of this temporary Global Bond has
         been extinguished, this temporary Global Bond shall in all respects be
         entitled to the same benefits as the Definitive Bearer Bonds and shall
         be entitled to the benefit of and be bound by the Trust Deed, except
         that the holder of this temporary Global Bond shall not (unless upon
         due presentation of this temporary Global Bond for exchange, delivery
         of the appropriate number of Definitive Bearer Bonds (together with the
         Coupons and Talons appertaining thereto) is improperly withheld or
         refused and such withholding or refusal is continuing at the relevant
         payment date) be entitled to receive any payment of interest on this
         temporary Global Bond except upon certification as hereinafter
         provided. Upon any payment of principal or interest on this temporary
         Global Bond the amount so paid shall be endorsed by or on behalf of the
         Principal Paying Agent on behalf of the Issuer on Part I of the
         Schedule hereto.
<PAGE>
                                       38

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

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

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

4.       Authentication

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

5.       Governing law

         This temporary Global Bond is governed by, and shall be construed in
         accordance with, the laws of England.

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

                                YORKSHIRE ELECTRICITY GROUP plc

                                By:__________________________
                                        Duly authorised

Issued in London, England on 17th January, 1995.

Certificate of authentication

This temporary Global Bond is duly authenticated (without recourse, warranty or
liability).
<PAGE>
                                       39

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

Duly authorised
for and on behalf of
Morgan Guaranty Trust Company
of New York, London Office,
as Principal Paying Agent

<PAGE>
                                       40

                                  THE SCHEDULE

                                     PART I

                       PAYMENTS OF PRINCIPAL AND INTEREST

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

                                             Remaining principal     Notation
                                             amount of this          made on
Date         Interest      Principal         temporary Global Bond   behalf of
made         paid          paid              following such payment  the Issuer

              (pound)         (pound)               (pound)
=========    ==========    ==============    ====================    =========
=========    ==========    ==============    ====================    =========
=========    ==========    ==============    ====================    =========
=========    ==========    ==============    ====================    =========
=========    ==========    ==============    ====================    =========
=========    ==========    ==============    ====================    =========
=========    ==========    ==============    ====================    =========
=========    ==========    ==============    ====================    =========
=========    ==========    ==============    ====================    =========
=========    ==========    ==============    ====================    =========
=========    ==========    ==============    ====================    =========
=========    ==========    ==============    ====================    =========
=========    ==========    ==============    ====================    =========
=========    ==========    ==============    ====================    =========
=========    ==========    ==============    ====================    =========

<PAGE>
                                       41

                                     PART II

                    EXCHANGES FOR DEFINITIVE BEARER BONDS AND
                           PURCHASES AND CANCELLATIONS

The following exchanges of a part of this temporary Global Bond for Definitive
Bearer Bonds and/or purchases and cancellations of a part of this temporary
Global Bond have been made:

Date      Part of principal  Part of         Aggregate principal      Notation
made      amount of this     principal       amount of this           made on
          temporary          amount of this  temporary                behalf of
          Global Bond        temporary       Global Bond              the Issuer
          exchanged for      Global Bond     following such
          Definitive Bearer  purchased and   exchange or purchase
          Bonds              cancelled       and cancellation
               (pound)         (pound)             (pound)
======   ================    ===========     ====================     =========
======   ================    ===========     ====================     =========
======   ================    ===========     ====================     =========
======   ================    ===========     ====================     =========
======   ================    ===========     ====================     =========
======   ================    ===========     ====================     =========
======   ================    ===========     ====================     =========
======   ================    ===========     ====================     =========
======   ================    ===========     ====================     =========
======   ================    ===========     ====================     =========
======   ================    ===========     ====================     =========
======   ================    ===========     ====================     =========
======   ================    ===========     ====================     =========
======   ================    ===========     ====================     =========

<PAGE>
                                       42

                                    EXHIBIT A

                         YORKSHIRE ELECTRICITY GROUP plc

                               (pound)200,000,000

                         9 1/4 per cent, Bonds due 2020

                               (the "Securities")

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

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

We further certify (i) that we are not making available herewith for exchange
(or, if relevant, exercise of any rights or collection of any interest) any
portion of the temporary global Security excepted in such certifications and
(ii) that as of the date hereof we have not received any notification from any
of our Member Organisations to the effect that the statements made by such
Member Organisations with respect to any portion of the part submitted herewith
for exchange (or, if relevant, exercise of any rights or collection of any
interest) are no longer true and cannot be relied upon as of the date hereof.
<PAGE>
                                       43

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

<PAGE>
                                       44

*Dated

                   [Morgan Guaranty Trust Company of New York,

                       Brussels office, as operator of the

                   Euroclear System] [Cedel, societe anonyme]

                             By ___________________
                              Authorised Signatory

------------------
*        To be dated no earlier than the date to which this certification
         relates, namely (a) the payment date or (b) the date set for the
         exchange of the temporary Global Bond for Definitive Bearer Bonds

<PAGE>
                                       45

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

*Dated

         By _________________________

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

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

<PAGE>
                                       46

                               THE SECOND SCHEDULE

                                     Part I

                        - FORM OF ORIGINAL BEARER BOND -

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

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

      (pound)[1,000] [10,000] [100,000] XS0055251010 [SERIES] [Serial No.]

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

                         YORKSHIRE ELECTRICITY GROUP plc

           (Incorporated in England with limited liability under the
               Companies Act 1985 with registered number 2366995)

                    (pound)200,000,000 9 1/4 PER CENT. BONDS
                                    DUE 2020

The issue of the Bonds was authorised by resolutions of the Board of Directors
of Yorkshire Electricity Group plc (the "Issuer") passed on 15th December, 1994
and by resolutions of a duly authorised Committee of the Board of Directors of
the Issuer passed on 4th and 5th January, 1995.

This Bond forms one of a series of Bonds constituted by a Trust Deed (the "Trust
Deed") dated 17th January, 1995 made between the Issuer and Bankers Trustee
Company Limited as trustee for the holders of the Bonds and issued either as
bearer bonds in the denominations of (pound)1,000, (pound)10,000 and
(pound)100,000 each with Coupons and one Talon attached or as registered bonds
in the denomination of (pound)1 each or an integral multiple thereof in an
aggregate principal amount of (pound)200,000,000.

The Issuer for value received and subject to and in accordance with the
Conditions endorsed hereon hereby promises to pay to the bearer on 17th January,
2020 (or on such earlier date as the principal sum hereunder mentioned may
become repayable in accordance with the said Conditions) the principal sum of:

(pound)[1,000] [10,000] [100,000] ([One] [Ten] [One Hundred] Thousand Pounds
Sterling)

together with interest on the said principal sum at the rate of 9 1/4 per cent.
per annum payable annually in arrear on 17th January and together with such
other amounts (if any) as may be payable, all subject to and in accordance with
the said Conditions and the provisions of the Trust Deed.
<PAGE>
                                       47

Neither this Bond nor the Coupons and Talon appertaining hereto shall be or
become valid or obligatory for any purpose unless and until this Bond has been
authenticated by or on behalf of the Principal Paying Agent.

<PAGE>
                                       48

IN WITNESS whereof this Bond has been executed on behalf of the issuer.

                                     YORKSHIRE ELECTRICITY GROUP plc

                                     By ________________________________
                                                 Director

Dated as of 17th January, 1995.

Issued in London, England.

Certificate of authentication

This Bond is duly authenticated (without recourse, warranty or liability).

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

Duly authorized
for and on behalf of
Morgan Guaranty Trust Company
of New York, London Office,
as Principal Paying Agent

<PAGE>
                                       49

                           - FORM OF ORIGINAL COUPON -

On the front:

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

                         YORKSHIRE ELECTRICITY GROUP PLC

                    (pound)200,000,000 9 1/4 PER CENT. BONDS
                                    DUE 2020

Coupon appertaining to a Bond in the denomination of (pound)[1,000] [10,000]
[100,000].

     This Coupon is separately                Coupon for
     negotiable, payable to bearer, and       (pound)[92.50] [925.00] [9,250.00]
     subject to the Conditions of the         due on
     said Bonds.                              17th January, [    ]

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

[No.] (pound)[1,000] [10,000] [100,000]   XS0055251010  [Series]   [Serial No.]

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

<PAGE>
                                       50

                           - FORM OF ORIGINAL TALON -

On the front:

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

                         YORKSHIRE ELECTRICITY GROUP PLC

                (pound)200,000,000 9 1/4 PER CENT. BONDS DUE 2020

Talon appertaining to a Bond in the denomination of
(pound)[1,000][10,000][100,000]

On and after 17th January, [2005/2015] [ten/five] further Coupons [and a further
Talon] will be issued at the specified office of any of the Paying Agents set
out on the reverse hereof (and/or any other or further Paying Agents and/or
specified offices as may from time to time be duly appointed and notified to the
Bondholders) upon production and surrender of this Talon.

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

[No.] [1,000] [10,000] [100,000]     XS0055251010    [Series]     [Serial No.]

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

<PAGE>
                                       51

On the back of the Original Coupons and the Original Talons:

                             PRINCIPAL PAYING AGENT

                   Morgan Guaranty Trust Company of New York,
                             60 Victoria Embankment
                                 London EC4Y 0JP

                               OTHER PAYING AGENTS

   Morgan Guaranty Trust Company               Banque Paribas Luxembourg S.A.
           of New York                             10A Boulevard Royal
        Avenue des Arts 35                          L-2093 Luxembourg
         B-1040 Brussels

<PAGE>
                                       52

                                     Part II

                      - FORM OF ORIGINAL REGISTERED BOND -

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

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

Certificate Number    Transfer No.    Holder Code    Registration       Amount
                                                     Date               (pound)

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

                         YORKSHIRE ELECTRICITY GROUP plc
                 (Incorporated in England with limited liability
          under the Companies Act 1985 with registered number 2366995)

                       (pound)200,000,000 9 1/4 PER CENT,
                                 BONDS DUE 2020

Interest at the rate of 9 1/4 per cent. per annum is payable on the principal
amount of this Registered Bond annually in arrear on 17th January in each year,
subject to and in accordance with the Conditions endorsed hereon and the
provisions of the Trust Deed dated 17th January, 1995 constituting the Bonds.

THIS IS TO CERTIFY that ________________________ is/are the registered holder(s)
of _________________ in principal amount of the above-mentioned Registered Bonds
and is/are entitled on 17th January, 2020 (or on such earlier date as such
principal amount may become repayable in accordance with the Conditions) to the
repayment of such principal amount together with such other amounts (if any) as
may be payable, all subject to and in accordance with the said Conditions and
the provisions of the said Trust Deed.

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

                                                 YORKSHIRE ELECTRICITY GROUP plc

                                                 By: ___________________________
                                                           Director

This Certificate must be surrendered before any transfer of the whole or part of
the Registered Bonds herein mentioned can be registered.

<PAGE>
                                       53

                     - FORM OF TRANSFER OF REGISTERED BOND -

FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s) and transfer(s) to

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

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

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

(Please print or type name and address (including postal code) of transferee)

(pound) ________________ principal amount of this Registered Bond and all rights
hereunder, hereby irrevocably constituting and appointing _____________________
as attorney to transfer such principal amount of this Bond in the register
maintained by YORKSHIRE ELECTRICITY GROUP plc with full power of substitution.

                             Signature(s) of transferor(s) ____________________

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

Date: __________________

N.B.:

1.       This form of transfer must be accompanied by such documents, evidence
         and information as may be required pursuant to the Conditions and must
         be executed under the hand of the transferor or, if the transferor is a
         corporation, either under its common seal or under the hand of two of
         its officers duly authorised in writing and, in such latter case, the
         document so authorising such officers must be delivered with this form
         of transfer.

 2.      In each case the signature(s) must be guaranteed by a commercial bank
         with a correspondent bank in New York City, Luxembourg or London or by
         an institution which is a member of The New York Stock Exchange or The
         American Stock Exchange in New York City or the Luxembourg Stock
         Exchange or The Stock Exchange in London.

3.       The signature(s) on this form of transfer must correspond with the
         name(s) at it/they appear(s) on the face of this Registered Bond in
         every particular, without alteration or enlargement or any change
         whatever.

4.       Registered Bonds are only transferable in amounts of (pound)1 or any
         integral multiples thereof.

<PAGE>
                                       54

                                    Part III

                            CONDITIONS OF THE BONDS -

                [To be photocopied from final Offering Circular]

<PAGE>
                                       55

                             PRINCIPAL PAYING AGENT

                    Morgan Guaranty Trust Company of New York
                             60 Victoria Embankment
                                 London EC4Y 0JP

                               OTHER PAYING AGENTS

   Morgan Guaranty Trust Company                  Banque Paribas Luxembourg S.A.
            of New York                                10A Boulevard Royal
         Avenue des Arts 35                             L-2093 Luxembourg
             B-1040 Brussels

                                    REGISTRAR

     For registration of transfers:                 For payments of principal:

     The Royal Bank of Scotland plc               The Royal Bank of Scotland plc
         Registrar's Department                         67 Lombard Street
              P.O. Box 39                               London EC3P 3DL
             Caxton House
             Redcliffe Way
           Bristol BS99 7XF

and/or such other or further Principal Paying Agent, other Paying Agents and
Registrar and/or specified offices as may from time to time be appointed by the
Issuer with the approval of the Trustee and notice of which has been given to
the Bondholders.

<PAGE>
                                       56

                               THE THIRD SCHEDULE

                 REGISTER AND TRANSFER OF REGISTERED SECURITIES

1.       The Issuer shall at all times ensure that the Registrar maintains in
         Bristol, London, or at such other place as the Trustee may agree, a
         register showing the amount of the Registered Securities from time to
         time outstanding and the dates of issue and all subsequent transfers
         and changes of ownership thereof and the names and addresses of the
         holders of the Registered Securities. The Trustee and the holders of
         the Registered Securities or any of them and any person authorised by
         it or any of them may at all reasonable times during office hours
         inspect the register and take copies of or extracts from it. The
         register may be closed by the Issuer for such periods at such times
         (not exceeding in total 30 days in any one year) as it may think fit.

2.       Each Registered Security shall have an identifying certificate number
         which shall be entered on the register.

3.       The Registered Securities are transferable by execution of the form of
         transfer endorsed thereon under the hand of the transferor or, where
         the transferor is a corporation, under its common seal or under the
         hand of two of its officers duly authorised in writing. In each case
         the signature(s) must be guaranteed by a commercial bank with a
         correspondent bank in New York City, Luxembourg or London or by an
         institution which is a member of The New York Stock Exchange or The
         American Stock Exchange in New York City or the Luxembourg Stock
         Exchange or The International Stock Exchange of the United Kingdom and
         the Republic of Ireland Limited.

4.       The Registered Securities to be transferred must be delivered for
         registration to the specified office of the Registrar or any Transfer
         Agent with the form of transfer endorsed thereon duly completed and
         executed and must be accompanied by such documents, evidence and
         information as may be required pursuant to the Conditions and such
         other evidence as the Issuer may reasonably require to prove the tide
         of the transferor or his right to transfer the Registered Securities
         and, if the form of transfer is executed by some other person on his
         behalf or in the case of the execution of a form of transfer on behalf
         of a corporation by its officers, the authority of that person or those
         persons to do so.

5.       The executors or administrators of a deceased holder of Registered
         Securities (not being one of several joint holders) and in the case of
         the death of one or more of several joint holders the survivor or
         survivors of such joint holders shall be the only person or persons
         recognised by the Issuer as having any title to such Registered
         Securities.

6.       Any person becoming entitled to Registered Securities in consequence of
         the death or bankruptcy of the holder of such Registered Securities may
         upon producing such evidence that he holds the position in respect of
         which he proposes to act under this paragraph or of his title as the
         Issuer shall require be registered himself as the holder of such
         Registered Securities or, subject to the Preceding paragraphs as to
         transfer, may transfer such Registered Securities. The issuer shall be
         at liberty to retain any amount payable upon the Registered Securities

<PAGE>
                                       57

         to which any person is so entitled until such person shall be
         registered as aforesaid or shall duly transfer the Registered
         Securities.

7.       Unless otherwise requested by him, the holder of Registered Securities
         of any series shall be entitled to receive only one Registered Security
         in respect of his entire holding of such series.

8.       The joint holders of Registered Securities of any series shall be
         entitled to one Registered Security only in respect of their joint
         holding of such series which shall, except where they otherwise direct,
         be delivered to the joint holder whose name appears first in the
         register of the holders of Registered Securities in respect of such
         joint holding.
9.       Where a holder of Registered Securities has transferred part only of
         his holding of any series there shall be delivered to him without
         charge a Registered Security in respect of the balance of such holding.

10.      The Issuer shall make no charge to the Holders for the registration of
         any holding of Registered Securities or any transfer thereof or for the
         issue thereof or for the delivery, thereof at the specified office of
         the Registrar or of any Transfer Agent or by post to the address
         specified by the Holder. If any Holder entitled to receive a Registered
         Security wishes to have the same delivered to him otherwise than at the
         specified office of the Registrar or of any Transfer Agent, such
         delivery shall be made, upon his written request to the Registrar or
         such Transfer Agent, at his risk and (except where sent by post to the
         address specified by the Holder) at his expense.

11.      The holder of a Registered Security may (to the fullest extent
         permitted by applicable laws) be treated at all times, by all persons
         and for all purposes as the absolute owner of such Registered Security
         notwithstanding any notice any person may have of the right, title,
         interest or claim of any other person thereto. The Issuer and the
         Trustee shall not be bound to see to the execution of any trust to
         which any Registered Security may be subject and no notice of any trust
         shall be entered on the register. The holder of a Registered Security
         will be recognised by the Issuer as entitled to his Registered Security
         free from any equity, set-off or counterclaim on the part of the Issuer
         against the original or any intermediate holder of such Registered
         Security.

<PAGE>
                                       58

                               THE FOURTH SCHEDULE

                       PROVISIONS FOR MEETINGS OF HOLDERS

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

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

                  (a)      that on the date thereof Bearer Securities (not being
                           Bearer Securities in respect of which a block voting
                           instruction has been issued and is outstanding in
                           respect of the meeting specified in such voting
                           certificate or any adjourned such meeting) were
                           deposited with such Paying Agent or (to the
                           satisfaction of such Paying Agent) were held to its
                           order or under its control and that no such Bearer
                           Securities will cease to be so deposited or held
                           until the first to occur of:

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

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

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

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

                  (a)      it is certified that Bearer Securities (not being
                           Bearer Securities in respect of which a voting
                           certificate has been issued and is outstanding in
                           respect of the meeting specified in such block voting
                           instruction and any adjourned such meeting) have been
                           deposited with such Paying Agent or (to the
                           satisfaction of such Paying Agent) were held to its
                           order or under its control and that no such Bearer
                           Securities will cease to be so deposited or held
                           until the first to occur of:

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

                           (2)      the surrender to the Paying Agent not less
                                    than 48 hours before the time for which such
                                    meeting or any adjourned such meeting is
                                    convened of the receipt issued by such
                                    Paying Agent in respect of each such
                                    deposited Bearer Security which is to be
                                    released or (as the case may require) the
                                    Bearer Security or Bearer Securities ceasing

<PAGE>
                                       59

                                    with the agreement of the Paying Agent to be
                                    held to its order or under its control and
                                    the giving of notice by the Paying Agent to
                                    the Issuer in accordance with paragraph 17
                                    hereof of the necessary amendment to the
                                    b1ock voting instruction;

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

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

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

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

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

(B)      A holder  of a Bearer  Security  may  obtain a voting  certificate  in
         respect  of such  Bearer  Security  from a Paying  Agent or  require a
         Paying  Agent to issue a block voting  instruction  in respect of such
         Bearer  Security by depositing  such Bearer  Security with such Paying
         Agent or (to the  satisfaction  of such  Paying  Agent) by such Bearer
         before being held to its order or under its control,  in each case not
         less than 48 hours the time fixed for the relevant  meeting and on the
         terms set out in  sub-paragraph  (i)(a) or (ii)(a)  above (as the case
         may be), and (in the case of a block voting  instruction)  instructing

<PAGE>
                                       60

         such  Paying  Agent to the  effect  set out in  sub-paragraph  (ii)(b)
         above.  The holder of any voting  certificate  or the proxies named in
         any block voting instruction shall for all purposes in connection with
         the relevant  meaning or adjourned  meeting of Holders be deemed to be
         the holder of the Bearer  Securities to which such voting  certificate
         or block  voting  instruction  relates and the Paying Agent with which
         such Bearer  Securities  have been deposited or the person holding the
         same to the order or under the control of such  Paying  Agent shall be
         deemed  for  such  purposes  not  to be the  holder  of  those  Bearer
         Securities.

(C)      (i)      A holder of Registered Securities may, by an instrument in
                  writing in the English language (a "form of proxy") signed by
                  the holder or, in the case of a corporation, executed under
                  its common seal or signed on its behalf by an attorney or a
                  duly authorised officer of the corporation and delivered to
                  the specified office of the Registrar not less than 48 hours
                  before the time fixed for the relevant meeting, appoint any
                  person (a "proxy") to act on his or its behalf in connection
                  with any meeting of the Holders and any adjourned such
                  meeting.

         (ii)     Any holder of Registered Securities which is a corporation may
                  by resolution of its directors or other governing body
                  authorise any person to act as its representative (a
                  "representative") in connection with any meeting of the
                  Holders and any adjourned such meeting.

         (iii)    Any proxy appointed pursuant to sub-paragraph (i) above or
                  representative appointed pursuant to sub-paragraph (ii) above
                  shall so long as such appointment remains in force be deemed,
                  for all purposes in connection with the relevant meeting or
                  adjourned meeting of the Holders, to be the holder of the
                  Registered Securities to which such appointment relates and
                  the holder of the Registered Securities shall be deemed for
                  such purposes not to be the holder.

2.       The Issuer or the Trustee may at any time and the Issuer shall upon a
         requisition in writing signed by the holders of not less than one-tenth
         in principal amount of the Securities of any series for the time being
         outstanding convene a meeting of the Holders and if the Issuer makes
         default for a period of seven days in convening such a meeting the same
         may be convened by the Trustee or the requisitionists. Every such
         meeting shall be held at such time and place as the Trustee may appoint
         or approve.

3.       At least 21 days' notice  (exclusive of the day on which the notice is
         given and the day on which the meeting is to be held)  specifying  the
         place,  day and hour of meeting shall be given to the Holders prior to
         any meeting of the Holders in the manner  provided  by  Condition  15.
         Such  notice,  which  shall be in the  English  language,  shall state
         generally  the nature of the business to be  transacted at the meeting
         thereby convened but (except for an Extraordinary Resolution) it shall
         not be necessary to specify in such notice the terms of any resolution

<PAGE>
                                       61

         to be proposed.  Such notice shall include statements,  if applicable,
         to the effect that (i) Bearer  Securities  may, not less than 48 hours
         before the time fixed for the meeting, be deposited with Paying Agents
         or (to their  satisfaction) held to their order or under their control
         for the purpose of obtaining voting certificates or appointing proxies
         and (ii) the holders of Registered  Securities may appoint  proxies by
         executing  and  delivering a form of proxy in the English  language to
         the  specified  office of the  Registrar not less than 48 hours before
         the time fixed for the  meeting or, in the case of  corporations,  may
         appoint  representatives  by  resolution  of their  directors or other
         governing  body.  A copy of the  notice  shall  be sent by post to the
         Trustee  (unless the meeting is  convened by the  Trustee)  and to the
         Issuer (unless the meeting is convened by the Issuer).

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

5.       At any such meeting one or more persons present holding  Securities or
         voting certificates or being proxies or representatives and holding or
         representing  in the  aggregate  not less than one-  twentieth  of the
         principal  amount of the  Securities  for the time  being  outstanding
         shall (except for the purpose of passing an Extraordinary  Resolution)
         form a quorum for the  transaction of business and no business  (other
         than the choosing of a Chairman)  shall be  transacted  at any meeting
         unless the  requisite  quorum be present  at the  commencement  of the
         relevant  business.  The  quorum at any such  meeting  for  passing an
         Extraordinary  Resolution  shall (subject as provided below) be one or
         more persons  present  holding  Securities or voting  certificates  or
         being proxies or  representatives  and holding or  representing in the
         aggregate a clear  majority in principal  amount of the Securities for
         the time being  outstanding  PROVIDED THAT at any meeting the business
         of which  includes any of the following  matters (each of which shall,
         subject only to Clause  18(B)(ii),  only be capable of being  effected
         after having been approved by Extraordinary Resolution) namely:

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

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

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

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

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

                                       62

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

6.       If within 15 minutes (or such longer  period not  exceeding 30 minutes
         as the  Chairman  may decide)  after the time  appointed  for any such
         meeting a quorum is not present for the  transaction of any particular
         business,  then,  subject and without  prejudice to the transaction of
         the business (if any) for which a quorum is present, the meeting shall
         if convened upon the requisition of Holders be dissolved. In any other
         case it shall stand  adjourned to the same day in the next week (or if
         such day is a public holiday the next succeeding  business day) at the
         same  time and  place  (except  in the case of a  meeting  at which an
         Extraordinary  Resolution  is to be  proposed  in which  case it shall
         stand adjourned for such period, being not less than 14 clear days nor
         more than 42 clear days,  and to such place as may be appointed by the
         Chairman  either at or  subsequent to such meeting and approved by the
         Trustee). If within 15 minutes (or such longer period not exceeding 30
         minutes as the Chairman may decide)  after the time  appointed for any
         adjourned  meeting a quorum is not present for the  transaction of any
         particular  business,  then,  subject  and  without  prejudice  to the
         transaction  of the  business  (if any) for which a quorum is present,
         the Chairman  may either  (with the approval of the Trustee)  dissolve
         such meeting or adjourn the same for such period,  being not less than
         14 clear days (but without any maximum  number of clear days),  and to
         such place as may be appointed by the Chairman either at or subsequent
         to  such  adjourned  meeting  and  approved  by the  Trustee,  and the
         provisions of this sentence shall apply to all further  adjourned such
         meetings. At any adjourned meeting one or more persons present holding
         Securities or voting  certificates or being proxies or representatives
         (whatever  the  principal   amount  of  the   Securities  so  held  or
         represented by them) shall  (subject as provided  below) form a quorum
         and  shall  (subject  as  provided  below)  have  power  to  pass  any
         Extraordinary  Resolution or other  resolution  and to decide upon all
         matters which could  properly have been dealt with at the meeting from
         which the adjournment took place had the requisite quorum been present
         PROVIDED THAT at any adjourned  meeting the quorum for the transaction
         of business  comprising any of the matters specified in the proviso to
         paragraph  5  above  shall  be one or  more  persons  present  holding
         Securities or voting  certificates or being proxies or representatives
         and holding or  representing  in the aggregate not less than one-third
         of  the  principal  amount  of  the  Securities  for  the  time  being
         outstanding.

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

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

9.       At any meeting unless a poll is (before or on the declaration of the
         result of the show of hands) demanded by the Chairman, the Issuer, the
         Trustee or any person present holding a Security or a voting

<PAGE>
                                       63

         certificate or being a proxy or representative (whatever the principal
         amount of the Securities so held or represented by him) a declaration
         by the Chairman that a resolution has been carried or carried by a
         particular majority or lost or not carried by a particular majority
         shall be conclusive evidence of the fact without proof of the number or
         proportion of the votes recorded in favour of or against such
         resolution.

10.      Subject to paragraph 12 below, if at any such meeting a poll is so
         demanded it shall betaken in such manner and subject as hereinafter
         provided either at once or after an adjournment as the Chairman directs
         and the result of such poll shall be deemed to be the resolution of the
         meeting at which the poll was demanded as at the date of the taking of
         the poll. The demand for a poll shall not prevent the continuance of
         the meeting for the transaction of any business other than the motion
         on which the poll has been demanded.

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

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

13.      The Trustee and its lawyers and  financial  advisers and any director,
         officer or employee of a corporation being a trustee of these presents
         and any  director  or officer of the  Issuer and its  lawyers  and its
         accountants and financial  advisers and any other person authorised so
         to do by the  Trustee  may  attend and speak at any  meeting.  Save as
         aforesaid,  but without  prejudice to the proviso to the definition of
         "outstanding"  in Clause 1, no person  shall be entitled to attend and
         speak nor shall any person be  entitled  to vote at any meeting of the
         Holders or join with  others in  requesting  the  convening  of such a
         meeting  or to  exercise  the  rights  conferred  on  the  Holders  by
         Conditions 11 and 12 unless he either  produces the Bearer Security or
         Bearer Securities of which he is the holder or a voting certificate or
         is a  proxy  or a  representative  or is the  holder  of a  Registered
         Security or Registered Securities. No person shall be entitled to vote
         at any meeting in respect of  Securities  held by, for the benefit of,
         or on behalf of, the Issuer, any Subsidiary of the Issuer, any holding
         company  of the  Issuer or any other  Subsidiary  of any such  holding
         company.  Nothing herein shall prevent any of the proxies named in any
         block voting instruction or form of proxy or any  representative  from
         being a director,  officer or  representative  of or others  connected
         with the Issuer.

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

         (A)      on a show of hands every person who is present in person and
                  produces a Bearer Security or voting certificate or is a
                  holder of Registered Securities or is a proxy or
                  representative shall have one vote; and

         (B)      on a poll every person who is so present shall have one vote
                  in respect of each (pound)1 or such other amount as the
                  Trustee may in its absolute discretion stipulate (or, in the
                  case of meetings of holders of Securities denominated in
                  another currency, such amount in such other currency as the

<PAGE>
                                       64

                  Trustee in its absolute discretion may stipulate) in principal
                  amount of the Securities so produced or represented by the
                  voting certificate so produced or in respect of which he is a
                  proxy or representative or in respect of which he is the
                  holder.

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

15.      The proxies named in any block voting instruction or form of proxy and
         representatives need not be Holders.

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

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

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

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

         (B)      Power to sanction any abrogation, modification, compromise or
                  arrangement in respect of the rights of the Trustee, any
                  Appointee, the Holders, the Couponholders or the Issuer
                  against any other or others of them or against any of their
                  property whether such rights shall arise under these presents
                  or otherwise.
<PAGE>
                                       65

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

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

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

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

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

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

         (I)      Power to sanction any scheme or proposal for the exchange or
                  sale of the Securities for or the conversion of the Securities
                  into or the cancellation of the Securities in consideration of
                  shares, stock, bonds, notes, debentures, debenture stock
                  and/or other obligations and/or securities of the Issuer or
                  any other company formed or to be formed, or for or into or in
                  consideration of cash, or partly for or into or in
                  consideration of such shares, stock, bonds, notes, debentures,
                  debenture stock and/or other obligations and/or securities as
                  aforesaid and partly for or into or in consideration of cash.

19.      Any resolution passed at a meeting of the Holders duly convened and
         held in accordance with these presents shall be binding upon all the
         Holders whether present or not present at such meeting and whether or
         not voting and upon all Couponholders and each of them shall be bound
         to give effect thereto accordingly and the passing of any such
         resolution shall be conclusive evidence that the circumstances justify
         the passing thereof. Notice of the result of the voting on any
         resolution duly considered by the Holders shall be published in
         accordance with Condition 15 by the Issuer within 14 days of such
         result being known PROVIDED THAT the non-publication of such notice
         shall not invalidate such result.

20.      The expression "Extraordinary  Resolution" when used in these presents
         means a resolution  passed at a meeting of the Holders  duly  convened
         and held in accordance with these presents by a majority consisting of
         not less than  three-fourths of the persons voting thereat upon a show
         of hands or if a poll is duly demanded by a majority consisting of not
         less than three-fourths of the votes cast on such poll.
<PAGE>
                                       66

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

22.      (A)      If and whenever the Issuer shall have issued and have  out-
                  standing Securities  of more than one series the  foregoing
                  provisions of this Schedule shall have effect subject to the
                  following modifications:

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

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

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

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

          (B)      If  the  Issuer  shall  have  issued  and  have  outstanding
                   Securities which are not denominated in pounds sterling,  in
                   the case of any  meeting of holders  of  Securities  of more
                   than one currency the  principal  amount of such  Securities
                   shall  (i) for the  purposes  of  paragraph  2 above  be the
                   equivalent  in  pounds  sterling  at the spot rate of a bank
                   nominated by the Trustee for the  conversion of the relevant
                   currency or currencies  into pounds  sterling on the seventh
                   dealing  day  prior to the day on which the  requisition  in
                   writing is received by the Issuer and (ii) for the  purposes
                   of paragraphs  5, 6 and 14 above  (whether in respect of the
                   meeting or any adjourned  such meeting or any poll resulting
                   therefrom)  be the  equivalent  at  such  spot  rate  on the
                   seventh  dealing  day prior to the day of such  meeting.  In
                   such  circumstances,  on any poll each person  present shall
                   have one vote for each(pound)1 (or such other pound sterling

<PAGE>
                                       67

                   amount  as  the  Trustee  may  in  its  absolute  discretion
                   stipulate) in principal amount of the Securities  (converted
                   as above) which he holds or represents.

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

<PAGE>
                                       68

THE COMMON SEAL of                  )
YORKSHIRE ELECTRICITY               )                  SEAL
GROUP plc                           )
was affixed to this deed in the     )
presence of:

                  A. W. J. COLEMAN
                  Director

                  R. DICKINSON
                  Secretary

THE COMMON SEAL of                  )
BANKERS TRUSTEE                     )                   SEAL
COMPANY LIMITED was                 )
affixed to this deed in the         )
presence of:

                  C. STRAKOSCH
                  Director

                  MARK P. JONES
                  Assistant Secretary

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